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For Professional Client Use Only
Emerging Market Debt – Hard CurrencyRankia Funds Experience Valencia - October 2019
Firm Overview
3For Professional Client Use Only
Neuberger Berman Overview
1. As of June 30, 2019. Firm assets under management (AUM) includes $101.5 billion in Equity assets, $150.6 billion in Fixed Income assets and $81.0 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. Average retention level for senior investment professionals (including retirements) 2013 – 2018.
3. Among organizations with over 1,000 employees by Pensions & Investments.
4. Awarded by UN-supported Principles for Responsible Investment. PRI grades are based on information reported directly by PRI signatories, of which investment managers totaled 1,119 for 2019, 1,120 for 2018 and 935 for 2017.
All signatories are eligible to participate and must complete a questionnaire to be included. The underlying information submitted by signatories is not audited by the PRI or any other party acting on its behalf. Signatories report
on their responsible investment activities by responding to asset-specific modules in the Reporting Framework. Each module houses a variety of indicators that address specific topics of responsible investment. Signatories’
answers are then assessed and results are compiled into an Assessment Report. The Assessment Report includes indicator scores, summarizing the individual scores achieved and comparing them to the median; section
scores, grouping similar indicator scores together into categories (e.g. policy, assurance, governance) and comparing them to the median; module scores, aggregating all the indicator scores within a module to assign one of six
performance bands (from E to A+). Awards and ratings referenced do not reflect the experiences of any Neuberger Berman client and readers should not view such information as representative of any particular client’s
experience or assume that they will have a similar investment experience as any previous or existing client. Awards and ratings are not indicative of the past or future performance of any Neuberger Berman product or service.
The scores are based on the previous year’s reporting activity. Moreover, the underlying information has not been audited by the PRI or any other party acting on its behalf. While every effort has been made to produce a fair
representation of performance, no representations or warranties are made as to the accuracy of the information presented, and no responsibility or liability can be accepted for damage caused by use of or reliance on the
information contained within this report. Information about PRI grades is sourced entirely from PRI and Neuberger Berman makes no representations, warranties or opinions based on that information.
$101bn $151bn $90bn AUM and Committed Capital
Awarded Last 5 Consecutive Years
By Pension & Investments(3)
ESG Integration Across Investment Platform
A+: 2018 & 2019 Assessment Report ESG
Strategy and Governance(4)
2012: Signatory of PRI A+: 2018 & 2019 Assessment Report
Fixed Income4)
NEUBERGER BERMAN: $333 bn(1)
EQUITY FIXED INCOME ALTERNATIVES
HISTORY
80Years
Investing
OWNERSHIP
100%Independent,
Employee-Owned
DEPTH
~2,000Employees Across
32 Cities Globally
STABILITY
96%Retention
Rate(2)
CULTURE
4For Professional Client Use Only
Fixed Income Organization
Our global platform is comprised of over 170 investment professionals and responsible for $151bn in AUM1
1AUM as of June 30, 2019.
As of September 10, 2019.
Combined investment professionals of the firm and affiliated investment management entities.
*Tom O’Reilly will be retiring at the end of 2019 and will transition his portfolio management responsibilities to a group of senior portfolio managers across Global Non-Investment Grade. 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.
Global / US Opportunistic
Strategies
Thanos Bardas
Ashok Bhatia
Dave Brown
Adam Grotzinger
Jon Jonsson
Inflation / Liability Aware
Thanos Bardas
Olumide Owolabi
Insurance Solutions
Jason Pratt
Currency
Ugo Lancioni
Research
David Tang
MULTI-SECTOR
SOLUTIONS
EMERGING
MARKETS DEBT
GLOBAL FIXED INCOME
BRAD TANK, CIO
ASHOK BHATIA, DEPUTY CIO
GLOBAL INVESTMENT
GRADE
GLOBAL NON-INVESTMENT
GRADE
MUNICIPALS ALTERNATIVES
BRAD TANK THANOS BARDAS
DAVE BROWN
JOE LYNCH
TOM O’REILLY*
ROB DRIJKONINGEN
GORKY URQUIETA
JAMES ISELIN
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
High Yield
Russ Covode
Dan Doyle
Chris Kocinski
Joseph Lind
Tom O’Reilly
Senior Floating Rate Loans /
Structured Credit
Stephen Casey
Joe Lynch
Pim van Schie
Research
Steve Ruh
Rachel Young
European High Yield / Loans
Vivek Bommi
Simon Matthews
Rates
Thanos Bardas
Anthony Woodside
Credit
Dave Brown
Julian Marks
Bob Summers
Securitized
Jason Smith
Tom Sontag
Research
Steve Flaherty
Core/Core Plus
Thanos Bardas
Dave Brown
Adam Grotzinger
Nate Kush
Cash/Short Duration
Kristian Lind
Intermediate
James Iselin
S. Blake Miller
High Income
James Iselin
S. Blake Miller
Eric Pelio
Research
James Lyman
Global Credit
Long / Short
Norman Milner
Special Situations
Michael Holmberg
John Humphrey
Brendan McDermott
Ravi Soni
Residential Loans
Dmitry Gasinsky
China Fixed Income
Peter Ru
European
Patrick Barbe
Vito Cavaliere
Yanick Loirat
Antonio Serpico
European Private Loans
Pieter D’Hoore
Philip Ortner
Peer Rosenberg
Emerging Markets Debt
6For Professional Client Use Only
Emerging Markets Debt at Neuberger Berman
An experienced investment team with a proven multi site approach
The portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
Structured,
Research-Driven
Investment Process
• Diversified set of alpha sources
on the back of bottom-up and
top-down processes
• An emphasis on fundamental
research including ESG factors
• Consistent, disciplined
investment process across
strategies
Experienced
Team
• Multi-site team ensures local
perspective incorporated
• Dedicated specialists focused on
hard currency, local currency,
corporate and China onshore
strategies
• Asset allocation capabilities
across EMD asset classes
Full Range of
EMD Capabilities
Integrated Risk
Management
• Seeks to ensure portfolio risks
are transparent, intentional and
consistent with our investment
strategy
• Additional risk management
oversight at firm level
• Early investors in EMD:
Hard Currency since 1994
Local Currency (FX and rates)
since 1998
Emerging Corporate Bonds
since 2003
Dedicated China Onshore
Fixed Income Strategies since
2015
• Senior managers have been
working together since 2000
7For Professional Client Use Only
Emerging Markets Debt Team
As of August 30, 2019.
Yrs’ denotes years of investment experience.
Staffing is subject to change without notice.
HARD CURRENCY
Bart van der Made
Hard Currency Strategy Leader
Sr. PM / 22 yrs – The Hague
Rob Drijkoningen Global Co-Head of EMD
29 yrs – The Hague
LOCAL CURRENCY - GLOBAL
Sukhjeet Reehal
PM / 14 yrs – The Hague
Thijs Verheijden
PM / 9 yrs – The Hague
Raoul Luttik
Local Currency Strategy Leader
Sr. PM / 24 yrs – The Hague
Prashant Singh
Asian Fixed Income Strategy Leader
Sr. PM / 16 yrs – Singapore
Mike Reyes
PM / 16yrs – Singapore
Gorky UrquietaGlobal Co-Head of EMD
25 yrs – Atlanta
ECONOMISTS / STRATEGISTS
Kaan Nazli
Sr. Economist / PM / 19 yrs – The Hague
Puay Yeong Goh
Sr. Economist / 15 yrs – Singapore
Vera Kartseva
PM / Strategist (TAA) / 12 yrs – The Hague
Lei Wan
Quant Analyst / 8 yrs – The Hague
Alexandru Ursu
Trader / 8 yrs – The Hague
Ram Bala Chandran
PM / 12 yrs – Atlanta
PORTFOLIO SPECIALISTS
Peter Ru
China Fixed Income Strategy Leader
Sr. PM / 24 yrs – Shanghai
Ian Chong
PM / 11 yrs – Shanghai
LOCAL CURRENCY – CHINA ONSHORE
Wenjin Li
Trader / 5 yrs – Shanghai
Samuel Wong
Corporate Analyst / 6 yrs – Shanghai
Zhilun Xu
Corporate Analyst / 5 yrs – Shanghai
Stéphane Xavier
Trader / 4 yrs – The Hague
Leonardo Bernardini
12 yrs – The Hague
Rebecca Lohse
14 yrs – Atlanta
Darius Sie
Associate PM / 3 yrs – Singapore
Pieter Niesten
Associate PM / 4 yrs – The Hague
CORPORATE
Nish Popat
EM Corporate Strategy Co-Leader
Sr. PM / 26 yrs – The Hague
Jennifer Gorgoll
EM Corporate Strategy Co-Leader
Sr. PM / 21 yrs – Atlanta
Manuel Guerena
Sr. Corporate Analyst / 27 yrs – The Hague
Sean Jutahkiti
Director Asian Corporate Research
/ 18 yrs – Singapore
Doreen Saik
Sr. Corporate Analyst / 13 yrs – Singapore
Greg Magnuson
Sr. Corporate Analyst / 19 yrs – Atlanta
Gui Xiong Teo
Corporate Analyst / 9 yrs – Singapore
Alexander Sklemin
Sr. Corporate Analyst / 14 yrs – The Hague
Gloria Lam
Sr. Corporate Analyst / 12 yrs – Singapore
Ophelia Ng
Corporate Analyst / 5 yrs – Shanghai
8For Professional Client Use Only
Quarterly
All seniors meet in one location
Monthly
Top-down review for all Strategies
Weekly
Portfolio reviews between CEEMEA,
Asian and LatAm Teams
COMMUNICATION
Atlanta
The Hague
Singapore
KEY BENEFITS
Access to local in-depth
knowledge and research
24 hour market coverage
Local/regional trading allows
timely execution of investment
decisions
Shanghai
Around the Clock Coverage
Multi-site team with a presence across three time zones
Information as of the date on the cover of the presentation.
This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
9For Professional Client Use Only
For this purpose, Institutional includes assets of Institutional Separate Accounts and Neuberger Berman sponsored U.S. registered '40 Act open-end funds held by institutional clients including defined benefit & defined contribution
plans and non-U.S. offshore funds held by institutional clients. See Additional Disclosures at the end of this piece, which are an important part of this presentation.
1. Registered Fund includes Neuberger Berman sponsored U.S. registered '40 Act open-end fund and non-U.S. offshore funds (i.e. UCITS).
2. Private Funds includes Neuberger Berman sponsored alternative collective investment vehicle with eligibility restrictions.
3. Includes 1 Qualifying Investment Fund (QIF).
4. Represents 20 mandates that the investment team manages a portion of.
5. Excludes investments in the China Bond Fund by other EMD strategies to avoid double counting
6. Based on the high level benchmark classification.
Emerging Markets Debt – Summary of Assets Under Management
As of August 31, 2019
Strategy AUM ($’s In Millions)
Hard Currency, $11,746
Local Currency,
$7,669
Corporates, $4,644
AUM BY SUB-
ASSET CLASS6
($’s in Millions)
# of Funds / Accounts AUM % of Total
UCITS Fund1
Hard Currency 1 $2,272 9%
Local Currency 1 $3,009 13%
Corporate Debt 1 $158 1%
Short Duration (50% HC / 50% Corp) 1 $5,789 24%
Blend (50% LC / 25% HC / 25% Corp) 1 $1,581 7%
Blend IG (67% HC / 33% LC) 1 $19 0%
Asian Hard Currency 1 $19 0%
China Bond Fund 1 $114 0%
Mutual Fund1
Blend (50% LC / 25% HC / 25% Corp) 1 $185 1%
Private Fund2
Blend (50% LC / 25% HC / 25% Corp) 2 $604 3%
Short Duration (50% HC / 50% Corp) 1 $23 0%
China Bond 2 $31 0%
Separate Account
Blend (50% LC / 25% HC / 25% Corp) 1 $217 1%
Blend (50% LC / 50% HC) 4 $1,964 8%
Blend (HC / Corp)³ 5 $2,319 10%
Hard Currency 10 $2,445 10%
Local Currency 5 $2,253 9%
Allocation from Fixed Income Mandates4
Hard Currency / Short Duration / Corporate * $1,060 4%
TEAM ASSETS UNDER MANAGEMENT5 39 $24,059 100%
Institutional $15,905 66%
Intermediary/HNW $8,154 34%
Blend, $6,888
Hard Currency,
$5,748 Corporates, $175
Short Duration, $5,836
Asian HC, $19
Local Currency,
$5,249
China Bond, $145
AUM BY
STRATEGY
($’s in Millions)
10For Professional Client Use Only
Neuberger Berman’s Emerging Market Debt (EMD) Strategies
* As of June 30, 2019.
** US Private Funds (commingled): Blend and Short Duration are funded, the others are available for funding.
The Target Excess Return' is not a formal objective and is indicative only. There is no guarantee that the target will be achieved.
UCITS funds are generally not available to US Investors. Private funds are not available to all investors.
LOCAL CURRENCY HARD CURRENCY CORPORATES BLEND BLEND INVESTMENT GRADE
OverviewExposure to EM opportunities
through local currency bonds
Exposure to EM opportunities
without EM currency risk
Exposure to the rapidly growing
opportunities in EM credit
Exposure to a dynamic portfolio
which takes advantage of the
broad EM debt spectrum
Exposure to a wide opportunity set of
investment grade EM debt, with a bias
towards hard currency denominated
debt.
BenchmarkJPM GBI Emerging Markets
Global Diversified Index
JPM EMBI Global Diversified
Index
JP Morgan CEMBI Diversified
Index
Custom Blend Index: JP Morgan
GBI Emerging Markets Global
Diversified Index (50%), JP
Morgan Emerging Markets Bond
Index Global Diversified (25%),
and JP Morgan Corporate
Emerging Market Bond
Diversified Index (25%).
EMD Blend Investment Grade Index: JP
Morgan Emerging Markets Bond Index
Global Diversified investment Grade
(67%) and JP Morgan GBI Emerging
Markets Global Diversified Investment
Grade 15% Cap Index (33%)
Risk Budget
(over a market cycle)
Targeted Tracking Error 2-5% 2-6% 2-4% 2-6% 1-3%
Target Excess Return p.a. (gross) 1-2% 1-2% 1-2% 1-3% 1%
Asset Allocation
Sovereigns No Max No MaxMax 33%
(Sovereign /or Quasi sovereign)
HC Sovereign 10-60%
Local Currency 20%-80%
HC Sovereign 40-90%
Local Currency 10%-50%
Non Sovereign Max 20%
Max 50% (Max Quasi-sovereign
35%/ Max Sub-sovereign 10%/
Max Supra-national 10%/ Max
Corporates 15%)
No Max
Max Quasi-sovereign 30%
Max Sub-sovereign 15%
Max Supra-national 10%
Max Corp 60%
Max Quasi-sovereign 40%
Max Sub-sovereign 15%
Max Supra-national 10%
Max Corp 15%
Hard or Local Currency Local Hard Max 33% Local Both Both
Benchmark Average
Credit Quality (S&P)*BBB+ BB+ BBB- - -
Active Duration Management +/- 2 years +/- 1.5 years +/- 1.5 years +/- 3 years +/- 3 years
Available Vehicles
Separate Account P P P P P
UCITS P P P P P
Mutual Fund (US) P
US Private Funds (commingled)** P P P P
11For Professional Client Use Only
Neuberger Berman’s Emerging Market Debt (EMD) Strategies
Continued
* As of June 30, 2019.
** US Private Funds (commingled): Blend and Short Duration are funded, the others are available for funding.
*** Based on linear average rating.
The Target Excess Return' is not a formal objective and is indicative only. There is no guarantee that the target will be achieved.
UCITS funds are generally not available to US Investors. Private funds are not available to all investors.
SHORT DURATION ASIAN HARD CURRENCY CHINA BOND (TOTAL RETURN) CHINA BOND (CORE)
Overview
Exposure to a short duration EM
portfolio of hard currency bonds with
an average IG rating***
Exposure to deeper and broader regional
sub-set of EM Sovereign and Corporate
universe, primarily through hard currency
bonds
Exposure to China opportunities in local
currency through a total return oriented
approach with flexible duration and sector
allocation
Exposure to China opportunities in local
currency through a high quality focused,
benchmark aware approach focused on
government-related bonds
Benchmark - JPM Asia Credit Index (JACI) -JP Morgan JADE Broad Asia Diversified -
Broad China Index
Risk Budgeting
(over a market cycle)
Targeted Tracking Error Limited Volatility 1.5-3.5% 4 to 5% Volatility 1-2%
Target Excess Return p.a. (gross) 300bp above 3m US T-Bills 1-1.5% 300bp above 3m Chinese Gov’t Bills 1%
Asset Allocation
Sovereigns30-70% (Sovereign /or Quasi
sovereign)Max 60% No Max No Max (incl. Policy Banks)
Non Sovereign 30-70%Max quasi-sovereign 35% / Max Corporates
100%No Max Max 30% Corporates
Hard or Local Currency Hard Max 30% LocalMax 33% USD, CNH or other offshore
bondsMax 10% Hard
Benchmark Average
Credit Quality(S&P)*- BBB+ - A+
Active Duration Management 2+/-0.75 years + / - 1.5 years 0.5 – 5 years + /- 50% of benchmark duration
Available Vehicles
Separate Account P P P P
UCITS P P P
Mutual Fund (US)
US Private Funds (commingled)** P
12For Professional Client Use Only
Neuberger Berman EMD Composite Performance
As of September 30, 2019
Source: Neuberger Berman.
1. Periods less than one year are not annualized.
The inclusion of any individual security in this document does not constitute a recommendation to invest.
Past performance is no guarantee of future results. Please refer to the attached GIPS compliant composite for complete performance information. Indexes are unmanaged and are not available for direct investment. Actual
investment results will vary. As with any investment, there is the possibility of profit as well as the risk of loss. See Additional Disclosures at the end of this piece, which are an important part of this presentation.
Gross of Fees Annualized¹ (%)
EMERGING MARKET DEBT - HARD CURRENCY COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (06/01/13)
Composite 12.73 10.45 5.68 6.53 6.41
JPM EMBI Global Diversified Index 12.99 11.57 4.61 5.74 5.40
Relative -0.26 -1.12 1.07 0.79 1.01
EMERGING MARKET DEBT - LOCAL CURRENCY COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (07/01/13)
Composite 8.73 10.36 3.25 0.69 0.60
JPM GBI Emerging Markets Global Diversified Index 7.86 10.13 3.06 0.55 0.12
Relative 0.87 0.23 0.19 0.14 0.48
EMERGING MARKET CORPORATE DEBT COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (07/01/13)
Composite 10.91 10.35 5.37 5.43 6.31
JP Morgan CEMBI Diversified Index 11.22 11.16 5.15 5.42 5.96
Relative -0.31 -0.81 0.22 0.01 0.35
EMERGING MARKET DEBT - BLEND COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (10/01/13)
Composite 9.20 9.21 3.82 3.05 3.43
Custom Blend Index 10.01 10.81 4.04 3.12 3.24
Relative -0.81 -1.60 -0.22 -0.07 0.19
EMERGING MARKET DEBT - BLEND INVESTMENT GRADE COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (08/01/17)
Composite 13.39 12.34 - - 6.15
EMD Blend Investment Grade Index 12.97 12.38 - - 5.73
Relative 0.42 -0.04 - - 0.42
SHORT DURATION EMERGING MARKET DEBT COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (11/01/13)
Composite 6.03 6.82 4.09 3.72 3.65
ICE BofAML 3-Month Treasury Bill Index 1.81 2.39 1.54 0.98 0.84
Relative 4.22 4.43 2.55 2.74 2.81
13For Professional Client Use Only
Neuberger Berman EMD Composite Performance
As of September 30, 2019
Source: Neuberger Berman.
1. Periods less than one year are not annualized.
The inclusion of any individual security in this document does not constitute a recommendation to invest.
Past performance is no guarantee of future results. Please refer to the attached GIPS compliant composite for complete performance information. Indexes are unmanaged and are not available for direct investment. Actual
investment results will vary. As with any investment, there is the possibility of profit as well as the risk of loss. See Additional Disclosures at the end of this piece, which are an important part of this presentation.
Gross of Fees Annualized¹ (%)
ASIAN DEBT HARD CURRENCY COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (07/01/15)
Composite 12.16 12.53 5.18 - 6.12
JPM Asian Credit Index (JACI) 10.08 10.80 3.87 - 5.04
Relative 2.08 1.73 1.31 - 1.08
CHINA BOND TOTAL RETURN COMPOSITE (RMB) YTD 1 Year 3 Year 5 Year Since Inception (07/01/18)
Composite 6.06 8.17 - - 8.18
China Bond New Composite TR Index 3.29 6.02 - - 6.00
Relative 2.77 2.15 - - 2.18
Why Invest In Emerging Markets Debt
15For Professional Client Use Only
Credit risk dominant
Benefit from carry
Benefit from improving credit risk trends of both government and
corporate issuers (decline in spreads)
HC Sovereign HC Corporate
EMD HARD CURRENCY
FX and interest rate risk dominant
Benefit from carry
Benefit from appreciating currencies
Benefit from declining local interest rates
EM FX (Currency) LC Bonds
EMD LOCAL CURRENCY
Four Main Sub-Asset Classes
For illustrative purposes only. Information is on this page represents historical observations about the sub-asset classes and is not intended to represent or predict future events.
16For Professional Client Use Only
Rationale for Investing in Emerging Markets Debt
We believe investors are underexposed to the asset class
SIZABLE
Growing asset class. Total EMD market now
over $26 trillion1. Acceleration of new issues
from countries and corporations
INEFFICIENT
Under-researched/reported universe creates
additional alpha potential. Capital constraints
and strong home bias create alpha
opportunities
DIVERSIFICATION
Dozens of countries, currencies, yield curves,
industry sectors, and issuers across all credit
rating buckets
FUNDAMENTALS
We believe most sovereigns are well
equipped to withstand cyclical headwinds
relying on sound balance sheets, flexible
currency regimes, better managed fiscal
accounts and expanded funding sources
YIELD
Yield advantage potential over developed
markets bonds
FX APPRECIATION
Emerging markets foreign exchange (FX)
holds potential opportunities for revaluation
1. Source: BofA Merrill Lynch Global Research, BIS, Bloomberg. As of December 31, 2018.
17For Professional Client Use Only
Stronger Real GDP Growth in Emerging Markets
Source: IMF World Economic Outlook, July 2019. Historical trends do not imply, forecast or predict future results.
F=Forecast.
GD
P (
%)
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
E
2019
F
2020
F
Differential Advanced economies Emerging market and developing economies
18For Professional Client Use Only
EM Fundamentals Still Strong
Improved debt sustainability and credit quality
1. Source: IMF World Economic Outlook (WEO); Neuberger Berman. Historical trends do not imply, forecast or guarantee future results.
2. Source: JP Morgan.
F: Neuberger Berman’s Forecast
General Government Debt as Percentage of GDP1 ― As of April 2019
Investment
Grade:
53.8%
Percentage of EMBIG Market Capitalization By Rating Segments2 ― As of August 31, 2019
0
20
40
60
80
100
120
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019F
Advanced economies Emerging market and developing economies
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Aug-98 Mar-00 Oct-01 May-03 Dec-04 Jul-06 Feb-08 Sep-09 Apr-11 Nov-12 Jun-14 Jan-16 Aug-17 Mar-19
IG
HY
19For Professional Client Use Only
EMD Tradable Debt Universe and Size
Source: BofA Merrill Lynch Global Research, BIS, Bloomberg. As of December 31, 2018.
Historical trends do not imply, forecast or guarantee future results.
Total market over 26 trillion USD
EMD Local Currency (LC) represents majority of market share
Growing corporate component in Hard Currency (HC)
Corporate names increasingly issue debt
Growth potential in EMD LC
$1,274 5% $2,667
10%
$10,953 42%
$11,412 43%
Sovereign HC Corporate HC Sovereign LC Corporate LC
Domestic Debt Makes Up 85% of Total EMD ($ Billions)
20For Professional Client Use Only
Emerging Markets Debt Historical Return & Risk – EUR Investor Perspective
1. Source: Bloomberg, JP Morgan. JPM EMBI Global Diversified EUR-Hedged (EMD Hard Currency), JPM CEMBI Diversified EUR-Hedged (EMD Corporate), JPM GBI-EM Global Diversified EUR Unhedged (EMD Local Currency),Bloomberg Barclays Euro Agg Corporate Index (Euro IG Corporates), MSCI Europe TR (MSCI Europe), MSCI Emerging Markets TR (MSCI Emerging Markets). The above information is based upon the indices as identifiedabove. Please see the Disclosure Section of this book for a complete description of each index. Actual investment results will vary. It is not possible to invest directly in any index.
2. Source: Bloomberg, JPMorgan.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.
EMD Hard Currency
(EUR-Hedged)
EMD Corporate
(EUR-Hedged)
EMD Local Currency
(EUR Unhedged)
Euro IG Corporates
(EUR Unhedged)
MSCI Europe
(EUR Unhedged)
MSCI Emerging
Markets
(EUR Unhedged)
Annualized Return (%) 7.29 6.10 6.16 4.27 6.72 10.04
Annualized Volatility (%) 8.17 8.87 9.02 3.46 13.72 17.63
Sharpe Ratio 0.68 0.50 0.49 0.74 0.36 0.47
Summary Statistics² (January 1, 2003 –September 30, 2019)
Risk/Return of Asset Classes¹ (January 1, 2003 – September 30, 2019)
EMD Hard Currency
EMD Corporate
EMD Local Currency
Euro IG Corporates
MSCI Europe
MSCI Emerging Markets
0%
2%
4%
6%
8%
10%
12%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Ann
ualiz
ed R
etur
n
Annualized Risk
21For Professional Client Use Only
Emerging Markets Debt Historical Return & Risk – EUR Investor Perspective
EMD has offered strong diversification benefits for EUR-based investors
1. Source: Bloomberg, JP Morgan. JPM EMBI Global Diversified EUR-Hedged (EMD Hard Currency), JPM CEMBI Diversified EUR-Hedged (EMD Corporate), JPM GBI-EM Global Diversified EUR Unhedged (EMD Local Currency),Bloomberg Barclays Euro Agg Corporate Index (Euro IG Corporates), MSCI Europe TR (MSCI Europe), MSCI Emerging Markets TR (MSCI Emerging Markets). The above information is based upon the indices as identifiedabove. Please see the Disclosure Section of this book for a complete description of each index. Actual investment results will vary. It is not possible to invest directly in any index.
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.
Correlation Analysis¹ (January 1, 2003 – September 30, 2019)
EMD Hard Currency
(EUR-Hedged)
EMD Corporate
(EUR-Hedged)
EMD Local Currency
(EUR Unhedged)
Euro IG Corporates
(EUR Unhedged)
MSCI Europe
(EUR Unhedged)
MSCI Emerging
Markets
(EUR Unhedged)
EMD Hard Currency
(EUR-Hedged)1.00
EMD Corporate
(EUR-Hedged)0.93 1.00
EMD Local Currency
(EUR Unhedged)0.49 0.41 1.00
Euro IG Corporates
(EUR Unhedged)0.63 0.66 0.41 1.00
MSCI Europe
(EUR Unhedged)0.45 0.44 0.44 0.40 1.00
MSCI Emerging
Markets
(EUR Unhedged)
0.54 0.51 0.62 0.39 0.76 1.00
22For Professional Client Use Only
Emerging Markets Debt – Current Yield and Duration Profile
As of 30 September 2019
Source: JP Morgan. Benchmarks used are EMD HC (JPM EMBI Global Diversified), EMD LC (JPM GBI-EM Global Diversified), EMD Corporate (JPM CEMBI Diversified), EMD SD (50% JPM EMBI Global Diversified 1-3yr, 50%JPM CEMBI Diversified 1-3yr), US IG Credit (JPM JULI ex-EM), US High Yield (JPM Domestic HY); US Treasury (GBI US), Blend EMD (25 EMD HC/25 EMD Corp/50 EMD LC). The above information is based upon the indices asidentified above. Please see the Disclosure Section of this book for a complete description of each index. Actual investment results will vary. It is not possible to invest directly in any index. Past performance is not necessarilyindicative of future results. As with any investment, there is the possibility of profit as well as the risk of loss. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of thedate hereof and is subject to change without notice. Information is on this page represents historical observations about the sub-asset classes and is not intended to represent or predict future events.
Yield and Duration (as of September 30, 2019)
EMD Corporate
EMD Hard Currency
EMD Blend
EMD Local Currency
US High Yield
US IG Credit
US Treasury (10Y)
1.0%
3.0%
5.0%
7.0%
1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0
Yie
ld (
%)
Duration (yrs)
23For Professional Client Use Only
EMD Asset Classes React Differently to Global Drivers
Data: Quarterly 2003Q1-2019Q3.
Sources: Bloomberg for US Generic Govt 10 Year Yield and U.S. Dollar Index (DXY). The U.S. Dollar Index (DXY) is an average of the exchange rates between the USD and major world currencies. JP Morgan for EMBI Glob. Div.,
CEMBI Div., GBI-EM Glob. Div. HC Short Duration index is 50% EMBI Glob 1-3yr + 50% CEMBI Broad 1-3yr. US Treasury Up and Down regimes are defined by the quarters when US Generic Govt 10 Year Yield increases or
decrease. USD Up and Down regimes are defined by the quarters when the U.S. Dollar Index returns increases or decrease.
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
Annualized Total Return – US Dollar MovesAnnualized Total Return – US Treasury Shifts
5.4%
3.6%
4.6%5.3%
4.7%
8.7%
12.8%
9.7%
6.2%
10.0%
0%
3%
6%
9%
12%
15%
EMD LocalCurrency
EMD HardCurrency
EMDCorporate
EMD ShortDuration
EMD Blend
US Treasury Yield Up US Treasury Yield Down
-5.7%
2.4% 2.1% 2.4%
-1.7%
19.6%
14.2%12.3%
9.0%
16.4%
-10%
-5%
0%
5%
10%
15%
20%
25%
EMD LocalCurrency
EMD HardCurrency
EMDCorporate
EMD ShortDuration
EMD Blend
USD Up USD Down
24For Professional Client Use Only
Strategic Investors Continue to Allocate to the Asset Class
Flows allocated across both hard and local currency
Source: JP Morgan. As of September 25, 2019. For illustrative purposes only. Historical trends do not imply, forecast or guarantee future results.
Monthly Bond Flows By Currency Exposure Annual Bond Flows By Fund Type
-40
-20
0
20
40
60
80
100
120
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
YT
D
US/European Mutual Funds Strategic Mandates
-20
-15
-10
-5
0
5
10
15
20
2014 2015 2016 2017 2018 2019
Hard Local
Emerging Markets Debt Hard Currency
26For Professional Client Use Only
OBJECTIVES
Investment Objective
Outperform the JPM EMBI Global Diversified Index over a 3 year period. The objective of the strategy is to achieve long term capital
growth, by investing in a diversified selection of debt instrument denominated in OECD currencies issued by issuers from low and
middle income developing countries. The strategy mainly invests in Latin American, Central and Eastern European, the Middle East,
Asian and African debt instruments.
Benchmark JPM EMBI Global Diversified Index
REPRESENTATIVE CHARACTERISTICS
Investment Universe Emerging Markets Sovereign, Quasi-Sovereign and Corporate Debt, issued in Hard Currency.
Investment Style Combining a focus on fundamental search for value in country exposure with top down market direction, corporate issuer and
instrument selection components
Instruments Hard Currency Bonds; Bond Futures; CDS; Cash Instruments; FX Forwards for currency hedging only.
Non-Sovereign Exposure Maximum 50%, as per following exposure categories:
• Quasi-sovereign (100% state owned or explicit sovereign guarantee): 35%
• Sub-sovereign (state, regional, municipal debt): 10%
• Supra-national (world bank regional development banks): 10%
• Corporate: 15%
Max. Country /Max. Issuer Maximum country exposure 25%; Maximum corporate issuer 4%
Emerging Markets Debt Hard Currency
Objectives and characteristics
This material is intended as a broad overview of the portfolio managers' style, philosophy and investment process and is subject to change. See Disclosures at the end of this presentation, which are an important part of this
presentation.
27For Professional Client Use Only
Investment Universe
Focus on a broad opportunity set of hard currency denominated EM bonds
The Investment Universe of the NB EMD Hard Currency Strategy comprises of:
+
Please note that we do manage various EMD HC mandates with restrictions on off-benchmark exposure.
Certain Off-benchmark exposures, including;
• Off-benchmark countries; typically countries with a relatively
high rating which fall somewhat in between Developed
and Emerging markets, e.g. Slovenia, South Korea
• EUR-denominated EM bonds
• EM Hard Currency Corporate bonds (max 15%)
All Constituents of the Benchmark Index
• (JPM EMBI Global Diversified;
154 issuers / 679 instruments as of 31 Dec 2018)
28For Professional Client Use Only
Hard Currency Investment Process Overview
Top down and bottom up approach with multiple potential alpha sources
1. Expected Alpha contribution data is estimated and for illustrative purposes only. Forecasts may not materialize and actual data could differ. Past performance is not indicative of future results. As with any investment, there is
the possibility of loss of the amount invested. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
1
Top Down
EMD Asset Class Review
2
Bottom Up
Country / Issuer / FX Review
3
Strategy Setting, Risk
Management and Model
Portfolio Construction
4
Portfolio Customization,
Process & Performance
Evaluation
EXPECTED ALPHA CONTRIBUTION1
Country Credit 60%
Top Down Analysis 15%
Corporate Credit and
Sector15%
Instrument Selection 10%
29For Professional Client Use Only
Top Down EMD Asset Class Review
Leveraged across all strategies to define risk profiles
This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
Broad Market Environment for EMD
• G3 rates and spread outlook
• Global liquidity conditions
• Global growth outlook
• Inflation outlook
• Tail risk events
Near term demand/supply
• EMD inflows/outflows
• Market positioning
• Issuance outlook
Aggregates extensive
individual country analysis
• Outlook for growth and inflation
• Current account trend
• Reserve levels
• Debt-to-GDP dynamics
• Monetary & FX policies
Market pricing
• Value of absolute yields
• Value of relative yields
• FX REERs
TOP DOWN SCORE
PER STRATEGY1 = potential to increase risk
0 = neutral risk position
-1 = defensive risk position
1
23 4
30For Professional Client Use Only
Hard Currency: Bottom up Analysis
Country Credit Analysis
For illustrative purposes only. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
Macroeconomic Factors (60%) Weighting
DOMESTIC ECONOMY
Real GDP growth, % p.a.
Nominal GDP, US$ billion
GDP per Capita, US$
CPI Inflation, % p.a.
Fiscal Balance % GDP
EXTERNAL SECTOR AND DEBT
Current Account Balance % GDP
External Debt as % GDP
Short-term Debt % Reserves
Reserves – Import Coverage
Public Debt % Public Revenues
ESG
Factors
(40%)
Social Governance:
Economic
Governance:
Legal & Political
Environment
• Rule of law
• Corruption
• Politics and election
Calendar
• Energy intensity of GDP
• Global Adaptation Ranking
• Carbon emissions per GDP
• Carbon emissions per capita
• Coal use in electricity generation
• Contribution to UN SDGs
Country scores are forward-looking (12-18 month):
100 = strong; 0 = weak
More EmphasisLess Emphasis
• Banking system
strength
• Nonperforming loans
• Ease of doing
business
• Funding sources
• Market capitalization
• Trade openness
• Government
effectiveness
• Regulatory
quality
• Political stability
& security
• Human
development
• Voice and
accountability
31For Professional Client Use Only
Adhoc Update from Kaan Nazli
EMBI
LAT
AR
BZ
BM
BO
BR
CLCO
CR DO
EC
SV
GT
HNJM
MXPA
PY
PE
SR
TT
UY
VE
EUR
AM
AZBY
BGHR
CZ
GE
HU KZ
LV LTPLRO
RUCS
SKSI
TR
UA
AFR
AO
CM
CI
EG
ETGA
GH
KE
MA
MZ
NA
NGRW
SN
ZA TZ
TN
ZM
MID BH
IQ
IL
JO
KW
LBOM
QA
SA
AE
ASIA
CNIN
ID
MY
MNPK
PH
KR
LK
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
15253545556575
Co
un
try
Sp
read
Neuberger Berman Credit Score
Hard Currency: Bottom up Analysis
Country Credit Analysis
Source: Neuberger Berman. As of April 12, 2017. For illustrative purposes only.
1
23 4
above the line indicating
bonds are cheap
below the line indicating
bonds are expensive
1,500
2,000
2,500
3,000
32For Professional Client Use Only
Liquidity Management
For illustrative purposes only. This material is intended as a broad overview of the portfolio management team’s current style, philosophy and process. Subject to change. See Additional Disclosures.
1
23 4
Portfolio Liquidity Management
• Each bond is assigned an Issue Liquidity Rating - based on 10 factors
• The Ratings lead to:
– A measure of Total Portfolio Liquidity relative to Benchmark
– An overview of exposure concentration per liquidity bucket
WHAT WE CAPTURE HOW WE MEASURE WEIGHT
Characteristics • Potential trade sizes and investor familiarity with the issue
• Potential trade sizes and investor familiarity with the issuer
• Familiarity and natural demand from benchmark investors
• Issue size outstanding
• Issuer size
• Benchmark inclusion45%
Market Data
• Risk level of the security
• Cost of trading
• Breadth of active buy-side parties
• Breadth of active sell-side parties
• Trading volumes
• Spread over US Treasuries
• Bid-offer spread
• Number of reporting holders of the security
• Number of price-quoting sell-side parties
• Trading volume indication from MarketAxess
55%
100%
PENALTY FACTORS
Ownership Concentration• Concentration risk in major holder
• Neuberger Berman holding
• Percentage of the issue with largest reporting holder
• Percentage of the issue with Neuberger Berman-40%
33For Professional Client Use Only
Sovereign Investment Case Sample
The above sample report is intended to demonstrate the portfolio management team’s research capabilities and is not intended to recommend any particular investment.
Emerging Markets Debt
Hard Currency
Analyst Name
10-Jul-14
RATING OUTLOOKIssuer Ticker (Ticker) EMBIGD % Spread 544 S&P B NEGCountry (Country) EMBIGD SprDurW Spread Diff 264 MOODY'S B2 NEGNB Country Score 36.2 EMD_HC SprDurW Target Diff FITCH B NEG
Issuance ($ million) M/M Debt Repayments (Local and External) M/M (External)
Gross Issuance Forecast 1500 Jan Jan 0
2014 Cash Flow 124 Feb Feb 39
Net Issuance -1376 Mar Mar 0
Actual Issuance 0 Apr Apr 23
Remaining Gross Issuance 1500 May May 0
% of Gross Done 0 Jun Jun 0
% of Gross Remaining 100 Jul Jul 0
Aug 1500 Aug 39
Sep Sep 0
Oct Oct 23
Nov Nov 0
Dec Dec 0
Market Positioning
Signif Overwt % 1 Size Weighted Score -2.7 Size Weighted Score Dedicated Respondents -3 Survey Date:
Overwt % 11 Size Weighted Score Ch 0.1 Assets $bn Dedicated Respondents 474 19-Jun-14
Neutral % 42 No of Respondents 73 Size Weighted Score Crossover Respondents -5.1
Underwt % 36 Assets $bn 549 Assets $bn Crossover Respondents 33
Signif Underwt % 10 Size Weighted Score Leveraged Respondents 1.5
Assets $bn Leveraged Respondents 39
CCM Data & Scores
Data 2011 2012 2013 2014 2015 15.0 7.9 5.4 4.8 5.4
39 40 46 40 39
24.3 24.9 25.6 26.2 26.9
8.6 8.8 13.6 11.8 10.8
-4.2 -12.0 -10.9 -10.0 -8.4
1,594 1,622 1,782 1,539 1,434
-9.0 -11.8 -12.6 -7.6 -8.2
29.2 30.8 25.5 35.2 43.6
3.0 2.5 2.9 2.8 3.2
54.0 51.1 50.6 74.6 73.6
43.4 51.4 52.8 59.3 62.0
220.2 265.3 313.7 302.8 315.5
14.1 13.2 12.0 12.0 12.0
8.0 8.6 8.6 8.6 8.6
39.4 31.6 29.1 27.9 28.5
49.0 51.2 47.8 48.3 48.2
43.3 39.5 36.5 36.1 36.3
Key Developments
Budget Balance (% GDP)
0.5%0.020.00
(Country)
(Country)'s macro outlook is subject to significant risks. Growth has slowed visibly in 2013-4 as high interest rates and weaker (currency) are compressing domestic demand. The economy's twin
deficits and high financing needs leave it vulnerable to a deterioration in external conditions.
Real GDP Growth (%)
Nominal GDP (US$ bn)
Population (million)
CPI Inflation (year-end)
GDP per Capita (US$)
Current Account (% GDP)
External Debt (% GDP)
Reserves - Import Coverage
Short-term Debt (% Reserves)
Public Debt (% GDP)
Public Debt (% Revenues)
Non-performing loans (% Total)
Market Capitalization (% GDP)
MACROECONOMIC SCORE
ESG SCORE
COUNTRY SCORE
- Public debt is estimated to have reached 55.4% GDP at Mar-14. Debt interest payments were 27% above target in 5m14. The deterioration will continue unless more expensive domestic debt (c. 47% of total debt) is retired. The 9% 2013 budget target was overrun as will the 8.5% target for 2014. The government moved with steady tariff increases in late 2013 but reversed them in 2Q14. - The trade deficit has narrowed sharply in 5m14 to $157mn with (currency) weakness reducing imports (-17.8%) but exports were also down due to weaker gold prices/volumes and crude volumes. It is unclear whether this can be sustained: oil import demand (-11%) will recover with FX availability through Cocobod/Eurobond issuance.) Non-oil imports fell by 19.7% but with private sector credit growth at 47.2%, signs of an import demand collapse are weak. FX reserves have declined to $4.5bn or 2.5 months of import cover in Jun-14. This figure likely masks the short-term commitments of the Bank of (country) as flagged in the IMF Article 4 report, actual usable FX reserves are likely to be even lower than this. - Electricity challenges, uncertainty around gold prices and production, plateauing oil production, and high borrowing costs has led to weaker GDP growth, with risks to the downside:*The (company) Gas processing plant for electricity production (550MW) is now expected to come on stream only towards end-14 while the Bui hydropower dam that opened in 2013 has suffered delays, currently generating 90MW vs targeted 400MW. Recent investments by the (company) will raise output from the (company) thermal plant to 330 MW by 2015. * News that (company) plans to lay off thousands of worker at its (company) gold mine in (country) and cease underground production for up to 24 months have dented the gold production outlook. * Oil production is likely to stabilize around the current 100,000bpd, with the planned increase to 250,000bpd not taking place until possibly 2022, according to a recent World Bank study. The West Africa Gas Pipeline is still operating at about half capacity.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Bonds 3700.9 1462 555.61 1186.5 194.9 0 60.568 0 0 1022.5
Loans 0 0 149.92 0 0 6.8963 0 0 611.98 0
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
US$
MM
Debt maturities
-14
-12
-10
-8
-6
-4
-2
0
0
50
100
150
200
250
300
350
2011 2012 2013 2014 2015
Key Ratios
Short-term Debt (% Reserves) Public Debt (% Revenues)
Current Account/GDP (right-axis)
NB Country Score
1
23 4
34For Professional Client Use Only
Hard Currency Strategy Setting and Portfolio Construction
Position for fundamental value in country exposure with additional alpha derived from views in top down market direction,
corporate credit and instrument selection
For illustrative purposes only. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
1
23 4
Country Credit Analysis
Instrument Analysis
Top down Score
Corporate Credit Analysis
Investment Insights
Aim to position for value across alpha sources
by considering:
Portfolio
Construction
Tracking Error Analysis
Risk budgeting of country exposures
Overall portfolio interest and spread duration
Percentage exposure considerations
MODEL
PORTFOLIO
Specific Corporate exposure guidelines
Portfolio Liquidity Control
35For Professional Client Use Only
Translating Top-down and Bottom-up views to Portfolio Risk
Portfolio managers are responsible for translating the Top-down Score and Bottom-up country views into portfolio risk-
adjusted positioning
1. Standalone Risk is a measure that isolates the risk from a particular risk factor by combining the exposure and the volatility of that factor, e.g. 2% Brazil bonds o/w with volatility of 13% gives Standalone Risk of 0.26%. This
measure is relatively light on assumptions – while the historical volatility of the position is used in the calculation, the historical correlation with the rest of the portfolio is not used. As a result this measure illustrates the tracking error
contribution of a country position in case a risk event occurs where all correlations between countries go to one.
1
23 4
Broad Range
Top Down Score -1.0 to +1.0
Beta range 0.8 to 1.4
Overall spread duration (yrs, relative) -1.5 to +1.5
Corporates allocation 0 – 15%
Cash allocation 0 – 15%
Country View Standalone Risk1
High conviction > 0.3%
Medium conviction 0.15% – 0.3%
Low conviction < 0.15%
TOP-DOWN BOTTOM-UP
The top down score on hard currency spreads drives the overall systematic
risk of the portfolio versus benchmark
Individual country position sizing is dependent on conviction levels and the
Standalone Risk contribution of the position.
36For Professional Client Use Only
Emerging Market Debt Hard Currency – Portfolio
1
23 4
As of September 30, 2019
Source: BlackRock Aladdin. Benchmark: JPMorgan EMBI Global Diversified Index. Past performance is no guarantee of future results. Representative portfolio information (characteristics, holdings, weightings, etc.) is subject tochange without notice. Client accounts are individually managed and may vary significantly from composite performance and representative portfolio information.
Portfolio Benchmark Active
Effective Duration (Yrs) 7.50 7.59 -0.09
Maturity (Yrs) 13.46 11.84 1.62
Current Yield (%) 5.78 5.54 0.24
Yield to Maturity (%) 5.51 4.83 0.68
Spread (Bps) 364 301 62
Spread Duration (Yrs) 7.30 7.45 -0.16
Moody Rating Ba2 Ba1
S&P Rating BB BB+
Number of Holdings 311 759 -448
Portfolio Benchmark
Sovereign 62.57 79.67
Quasi Sovereign 23.05 20.33
Sub Sovereign 0.06
Supranational 0.51
Corporates 8.49
Other (incl. Cash) 5.32
Asset Allocation Breakdown (MV%)Key Characteristics
Quality Breakdown (MV%)
Country Breakdown (MV%)
0% 10% 20% 30% 40% 50% 60%
High Yield
Investment Grade
Portfolio Benchmark
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Mex
ico
Ukr
aine
Rus
sia
Tur
key
Aze
rbai
jan
Indo
nesi
a
Ivor
y C
oast
Chi
na
Sri
Lank
a
Sou
th A
fric
a
Arg
entin
a
Bra
zil
Kaz
akhs
tan
Egy
pt
Cro
atia
Nig
eria
Qat
ar
UA
E
Col
ombi
a
Ser
bia
Ecu
ador
Mon
golia
Sau
di A
rabi
a
Gha
na
Pan
ama
Dom
inic
an R
ep
Ang
ola
Per
u
Ber
mud
a
Cos
ta R
ica
Mal
aysi
a
Chi
le
Om
an
Uzb
ekis
tan
Bah
rain
Tun
isia
Par
agua
y
El S
alva
dor
Ken
ya
Uru
guay
Ven
ezue
la
Sup
rana
tiona
l
S K
orea
Rom
ania
Pap
ua N
ew G
uine
a
Hun
gary
Arm
enia
Hon
g K
ong
Sen
egal
Sin
gapo
re
Indi
a
Alb
ania
Mon
tene
gro
Hon
dura
s
Bel
ize
Gua
tem
ala
Portfolio Benchmark
37For Professional Client Use Only
Emerging Market Debt Hard Currency – Country Weightings & Exposures
1
23 4
As of September 30, 2019
Source: Blackrock Aladdin. Benchmark: JPMorgan EMBI Global Diversified Index. This supplemental report is provided for informational purposes only; please refer to your account statement(s) or other statement provided by yourcustodian for the official records of your account(s). Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results. See Additional Disclosures at the end of this presentation. Pleasenote: different treatment of defaulted bonds in portfolio characteristic calculations causes discrepancies between the index provider and our 3rd party portfolio analytics system. Performance is not impacted by these differences,however performance attribution will show discrepancies due to the treatment of the defaulted bonds. Representative portfolio information (characteristics, holdings, weightings, etc.) is subject to change without notice. Clientaccounts are individually managed and may vary significantly from composite performance and representative portfolio information.
Market Value (%)
Country Portfolio Benchmark Active
Top 10
Azerbaijan 3.99 1.00 2.98
Ivory Coast 3.49 0.68 2.81
Ukraine 4.99 2.36 2.63
Argentina 3.14 1.33 1.82
Serbia 2.03 0.27 1.77
Russia 4.88 3.28 1.60
Turkey 4.75 3.28 1.47
Mongolia 1.96 0.55 1.41
Croatia 2.29 0.90 1.39
Bermuda 1.38 0.00 1.38
Bottom 10
Philippines 0.00 3.07 -3.07
Uruguay 0.43 2.40 -1.97
Saudi Arabia 1.87 3.71 -1.84
Poland 0.00 1.75 -1.75
Bahrain 0.68 2.41 -1.73
Lebanon 0.00 1.55 -1.55
Hungary 0.27 1.76 -1.49
Chile 1.09 2.57 -1.48
Oman 0.97 2.37 -1.40
Peru 1.40 2.63 -1.22
Contribution to Duration
Country Portfolio Benchmark Active
Top 10
Mexico 0.72 0.42 0.30
Ivory Coast 0.20 0.04 0.16
Azerbaijan 0.21 0.06 0.15
Ukraine 0.26 0.12 0.15
Croatia 0.17 0.03 0.14
Argentina 0.19 0.07 0.12
Indonesia 0.49 0.38 0.11
Sri Lanka 0.20 0.11 0.09
Costa Rica 0.16 0.07 0.09
Serbia 0.09 0.01 0.09
Bottom 10
Philippines 0.00 0.28 -0.28
Uruguay 0.06 0.29 -0.23
Chile 0.10 0.29 -0.19
Saudi Arabia 0.19 0.37 -0.18
Peru 0.12 0.28 -0.16
Panama 0.17 0.29 -0.12
Bahrain 0.04 0.15 -0.11
Malaysia 0.03 0.14 -0.11
Qatar 0.26 0.36 -0.10
Jamaica 0.00 0.09 -0.09
Market Update and Outlook
39For Professional Client Use Only
Markets: Strong Rebound in EM Hard Currency YTD Following the 2018 Drawdown
Driven mostly by the drop in US Treasury yields but also by tighter EM spreads
Source: Bloomberg as of October 1, 2019. EMD HC Index = JPMorgan EMBI Global Diversified Index. For illustrative and discussion purposes only. Nothing herein constitutes investment, legal, accounting or tax advice, or a
recommendation to buy, sell or hold a security. This material is not intended as a formal research report and should not be relied upon as a basis for making an investment decision. Investing entails risks, including possible loss of
principal. Past performance is no guarantee of future results. Historical trends do not imply, forecast or guarantee future results. Nothing herein constitutes a prediction or projection of future events or future market behavior. Due to
a variety of factors, actual events or market behavior may differ significantly from any views expressed.
EMD HC Index – Calendar Year Total Returns in USD Move in EMBI GD Spreads and UST 10y yields during 2018/19
12.9
-4.3
10.310.2
1.2
7.4
-5.3
17.4
7.3
12.2
29.8
-12.0
6.2
9.910.211.6
22.2
13.7
9.7
12.7
19.6
-8.1
-15
-10
-5
0
5
10
15
20
25
30
35
2019
YT
D
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
3.2
250
270
290
310
330
350
370
390
410
430
450
Dec
-17
Jan-
18
Feb
-18
Mar
-18
Apr
-18
May
-18
Jun-
18
Jul-1
8
Aug
-18
Sep
-18
Oct
-18
Nov
-18
Dec
-18
Jan-
19F
eb-1
9
Mar
-19
Apr
-19
May
-19
Jun-
19
Jul-1
9
Aug
-19
Sep
-19
EMBI GD Spreads (LHS) UST 10y Yield
40For Professional Client Use Only
Macroeconomic Forecasts
Neuberger Berman forecasts as of July 2019. *CPI Inflation aggregates exclude Argentina and Venezuela. For illustrative purposes only. Expectations may not materialize.
July 2019 ForecastReal GDP Growth
(%, y/y)
CPI Inflation*
(year-end)
Budget Balance
(% GDP)
Current Account
(% GDP)
2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020
Global EM (GDP-weighted) 4.5 4.2 4.3 3.8 3.8 3.4 -3.6 -4.4 -3.5 0.8 0.3 -0.3
Export Growth
(value in US$, % y/y)
External Debt
(% GDP)
Public Debt
(% GDP)
2018 2019 2020 2018 2019 2020 2018 2019 2020
Global EM (GDP-weighted) 8.8 2.5 2.5 35.4 34.9 33.8 58.0 57.1 56.1
• We expect EM GDP growth to slow down slightly this year while EM inflation is set to decline further
• Current accounts are declining as a whole due to weaker oil prices and as China produces a slight deficit as of 2019
• Overall public and external debt levels have stabilized and remain moderate
41For Professional Client Use Only
Asian, LatAm PMIs above 50 handle, while CEEMEA PMIs are dragged down by South Africa, Czech Republic and Russia
Source: Markit, Bloomberg, as of September 30, 2019. For illustrative and discussion purposes only. Nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. This
material is not intended as a formal research report and should not be relied upon as a basis for making an investment decision. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future
results. Historical trends do not imply, forecast or guarantee future results. Nothing herein constitutes a prediction or projection of future events or future market behavior. Due to a variety of factors, actual events or market behavior
may differ significantly from any views expressed.
Manufacturing PMI Manufacturing PMI – EM Regions
44
46
48
50
52
54
56
58
Oct
-16
Dec
-16
Feb
-17
Apr
-17
Jun-
17
Aug
-17
Oct
-17
Dec
-17
Feb
-18
Apr
-18
Jun-
18
Aug
-18
Oct
-18
Dec
-18
Feb
-19
Apr
-19
Jun-
19
Aug
-19
Emerging Markets PMI Developed Markets PMI
46
47
48
49
50
51
52
53
54
55
Oct
-16
Dec
-16
Feb
-17
Apr
-17
Jun-
17
Aug
-17
Oct
-17
Dec
-17
Feb
-18
Apr
-18
Jun-
18
Aug
-18
Oct
-18
Dec
-18
Feb
-19
Apr
-19
Jun-
19
Aug
-19
Asia CEEMEA Latam
EM Manufacturing is Slow to Recover as DM Deteriorates Sharply
42For Professional Client Use Only
EM External Balance and Policy Mix Still Favorable in Aggregate
Source: LHS: Bloomberg, as of July 31, 2019. EM-10: Brazil, Colombia, India, Indonesia, Korea, Mexico, Poland, Russia, South Africa, Turkey; RHS: Bloomberg, as of September 30, 2019. Real Policy Rate data series are
calculated as the policy rate for each country minus the headline inflation rate. The countries included in the EM Real Policy Rate series are all the countries in the GBI-EM GD Index as of January 31, 2019 with the exception of
Argentina, Dominican Republic and Uruguay; The countries included in the EM Real Policy Rate series are weighted based on their weights in the JPMorgan GBI-EM Global Diversified Index as of January 31, 2019 . For illustrative
and discussion purposes only. Nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. This material is not intended as a formal research report and should not be
relied upon as a basis for making an investment decision. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results. Historical trends do not imply, forecast or guarantee future
results. Nothing herein constitutes a prediction or projection of future events or future market behavior. Due to a variety of factors, actual events or market behavior may differ significantly from any views expressed.
EM-10 Aggregate Current Account ($Bn) Real Policy Rates: EM vs DM
-250
-200
-150
-100
-50
0
50
Apr
-13
Oct
-13
Apr
-14
Oct
-14
Apr
-15
Oct
-15
Apr
-16
Oct
-16
Apr
-17
Oct
-17
Apr
-18
Oct
-18
Apr
-19
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
Jan-
15
Apr
-15
Jul-1
5
Oct
-15
Jan-
16
Apr
-16
Jul-1
6
Oct
-16
Jan-
17
Apr
-17
Jul-1
7
Oct
-17
Jan-
18
Apr
-18
Jul-1
8
Oct
-18
Jan-
19
Apr
-19
Jul-1
9
EM Real Policy Rate (GBI-EM GD Weighted)
US Real Policy Rate
Eurozone Real Policy Rate
43For Professional Client Use Only
EM Corporates Outlook: Leverage at Lowest Levels Post 2014
Defaults in EM HY corporates continue to surprise to the downside YTD
1. Source: Factset, as of April 30, 2019.
2. Source: BoAML, as of July 31, 2019.
For illustrative and discussion purposes only. Nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. This material is not intended as a formal research report and
should not be relied upon as a basis for making an investment decision. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results. Historical trends do not imply, forecast or
guarantee future results. Nothing herein constitutes a prediction or projection of future events or future market behavior. Due to a variety of factors, actual events or market behavior may differ significantly from any views expressed
EM vs US Leverage¹ EM Corporate HY vs US HY Default Rate²
1.5
2.0
2.5
3.0
3.5
Jan-
09
Aug
-09
Mar
-10
Oct
-10
May
-11
Dec
-11
Jul-1
2
Feb
-13
Sep
-13
Apr
-14
Nov
-14
Jun-
15
Jan-
16
Aug
-16
Mar
-17
Oct
-17
May
-18
Dec
-18
US Total Debt/EBITDA, LTM EM Total Debt/EBITDA, LTM
0
2
4
6
8
10
12
14
16
Jan-
08
Aug
-08
Mar
-09
Oct
-09
May
-10
Dec
-10
Jul-1
1
Feb
-12
Sep
-12
Apr
-13
Nov
-13
Jun-
14
Jan-
15
Aug
-15
Mar
-16
Oct
-16
May
-17
Dec
-17
Jul-1
8
Feb
-19
US HY default rate (%) EM Corprate HY default rate (%)
44For Professional Client Use Only
We expect Chinese authorities to ease fiscal and monetary policy to offset tariffs impact. We believe China will aim to keep
GDP growth above 6% in 2019 and around 6% in 2020.
Trade Tensions: Impact of US tariffs on China’s Growth
0 100 200 300 400 500 600
Phase 3C (Tariffs from 15 Dec, 2019)
Phase 3B (Tariffs from 15 Oct, 2019)
Phase 3A (Tariffs from 1 Sept, 2019)
Phase 2B (Tariffs from May 10, 2019)
Phase 2A (Tariffs from Sept 24, 2018)
Phase 1 (Tariffs from July 10, 2018) 25%
25% 10%
25%
25% 15%
30% 15%
30% 15% 15%
0.1
p.p.
0.3
p.p.
0.6-0.8
p.p.
1.0-1.5
p.p.
1.2-1.6
p.p.
1.6-2.1
p.p.
Note: Grey bars denote increase in tariffed products and blue bars denote tariffed products from previous phases. Percentages denote the tariff incurred.
Sources: Bloomberg; Neuberger Berman. As of October 1, 2019.
Nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. This material is not intended as a formal research report and should not be relied upon as a basis for
making an investment decision. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results. Historical trends do not imply, forecast or guarantee future results. Nothing herein
constitutes a prediction or projection of future events or future market behavior. Due to a variety of factors, actual events or market behavior may differ significantly from any views expressed.
Tariffs Cumulative Impact on China GDP Growth Can Be as Large as 1.6 – 2.1 p.p. over a 12 Months Period.
(Bubbles denote cumulative drag on China’s GDP growth over 12 months)
$Bn
45For Professional Client Use Only
Trade Tensions: Supply Side Diversification
Note: Oct/18 – Feb/19 vs average of same period over previous 3 years.
Sources: Bloomberg; SCB, Neuberger Berman. As of May 11, 2019.
Nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. This material is not intended as a formal research report and should not be relied upon as a basis for
making an investment decision. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results. Historical trends do not imply, forecast or guarantee future results. Nothing herein
constitutes a prediction or projection of future events or future market behavior. Due to a variety of factors, actual events or market behavior may differ significantly from any views expressed.
Mexico, South Korea and Taiwan seem to have been among the main beneficiaries of US/China trade issues
Top 5 winners that appear to have benefited from US demand diverted from China
(Change in % share of US imports in categories with tariffs)
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
Mexico South Korea Taiwan Philippines Vietnam China
%
46For Professional Client Use Only
Argentina Recovery Scenarios
1. As of date below.
Source: Neuberger Berman. As of September 4, 2019.
Nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. This material is not intended as a formal research report and should not be relied upon as a basis for
making an investment decision. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results. Historical trends do not imply, forecast or guarantee future results. Nothing herein
constitutes a prediction or projection of future events or future market behavior. Due to a variety of factors, actual events or market behavior may differ significantly from any views expressed.
Sovereign bond prices in a range of 35 – 45ct1 are close to the worst case recovery scenario and oversold in our view
Argentina Recovery Scenarios
Expectations for external sovereign bonds IF a sovereign bond restructuring or reprofiling would take place
“Worst Case”: Outcome similar to2001 restructuring, when theindebtedness and economic situationin Argentina was much worse vs. thecurrent situation.
“Better Case”: More likely scenario vsworst case in our view, which looks atindebtedness and probable real FXtrajectory, and which haircut onexternal bonds would be required tobring Debt / GDP to a sustainablelevel.
“Maturity Extension Only”: In line withthe goal policymakers mentioned,referring to ‘voluntary reprofiling ofbonds’. No haircut on principal, but weestimate a 15% NPV loss as a resultof the reprofiling.
40%
70%
85%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Scenario 1: "Worst Case" Scenario 2: "Better Case" Scenario 3: "Maturity Extension Only"
47For Professional Client Use Only
EM Hard Currency Spreads in Fair Value Territory After YTD Tightening
Pickup versus developed market bonds remains attractive across IG and HY
Source: JPMorgan, Barclays; As of October 1, 2019.
Indices used: JPM EMBI Global Diversified HY and IG subindices, JPM CEMBI Diversified HY and IG subindices, Barclays US High Yield Index, Barclays Global Aggregate Corporate Index. This material is intended as a broad
overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice. Information is on this page represents historical observations about the sub-asset classes
and is not intended to represent or predict future events. Historical trends do not imply, forecast or guarantee future results.
Spread Over Treasuries
571
487
386
250
350
450
550
650
750
850
950
Oct
-14
Feb
-15
Jun-
15
Oct
-15
Feb
-16
Jun-
16
Oct
-16
Feb
-17
Jun-
17
Oct
-17
Feb
-18
Jun-
18
Oct
-18
Feb
-19
Jun-
19
Oct
-19
EM Corporates HY EM Sovereign HY US HY Credit
180
166
118
50
100
150
200
250
300
350
Oct
-14
Feb
-15
Jun-
15
Oct
-15
Feb
-16
Jun-
16
Oct
-16
Feb
-17
Jun-
17
Oct
-17
Feb
-18
Jun-
18
Oct
-18
Feb
-19
Jun-
19
Oct
-19
EM Corporates IG EM Sovereign IG DM IG Credit
48For Professional Client Use Only
EM HY Spread Pickup vs. EM IG Near Historical Highs
Even excluding Argentina and Venezuela
Source: JPMorgan, Neuberger Berman calculations; As of October 2, 2019.
Indices used: JPMorgan EMBI Global Diversified High Yield (excluding Argentina and Venezuela) and JPMorgan EMBI Global Diversified Investment Grade subindices.
This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice. Information is on this page represents historical
observations about the sub-asset classes and is not intended to represent or predict future events. Historical trends do not imply, forecast or guarantee future results.
Spread Difference (bps): EMBI GD HY (ex Argentina & Venezuela) VS EMBI GD IG
316
0
50
100
150
200
250
300
350
400
Jan-
04
Jul-0
4
Jan-
05
Jul-0
5
Jan-
06
Jul-0
6
Jan-
07
Jul-0
7
Jan-
08
Jul-0
8
Jan-
09
Jul-0
9
Jan-
10
Jul-1
0
Jan-
11
Jul-1
1
Jan-
12
Jul-1
2
Jan-
13
Jul-1
3
Jan-
14
Jul-1
4
Jan-
15
Jul-1
5
Jan-
16
Jul-1
6
Jan-
17
Jul-1
7
Jan-
18
Jul-1
8
Jan-
19
Jul-1
9
Spread Difference Average +1 std. dev. -1 std. dev.
49For Professional Client Use Only
EMD Outlook – Our Views
As of October 2019.
Opinions expressed herein reflect the opinion of Neuberger Berman and are subject to change without notice. Expectations may not materialize. Estimates and views may not materialize. The estimates and views contained
herein are being shown to illustrate NB's current expectations regarding future financial information, they are not intended to provide any guarantee or assurance about the future performance. Estimates or other forward-looking
statements regarding future events, targets or expectations are only current as of the date indicated. There is no assurance that such events or forecasts will occur, and may be significantly different than that shown here. The
information in this presentation, including statements concerning financial market trends, is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons.
• We continue to see downside risks to global growth with Asian and European (mainly German) manufacturing contraction spilling
over to the US and signs of weaker US consumer sentiment. The uncertainty triggered by the failure of the US and China to reach a
trade agreement will continue to weigh on business sentiment as a final trade deal is unlikely to be made soon.
• Easier financial conditions in developed markets, supported by the dovish stance of DM central banks, as well as potential further
fiscal and monetary boosts in China, will likely cushion these downside risks to some extent.
• We expect EM growth to decelerate compared to 2018. Other cyclical indicators such as fiscal and current account balances remain
well behaved while inflation is on a downward trajectory. Export growth, however, is likely to continue to disappoint both as a
consequence of weak industrial activity, as well as the rising protectionism impacting global trade.
• Spreads in EM hard currency sovereigns look attractive relative to developed market credits in our view, especially in the High
Yield space. Local bond yields tightened in sync with DM yields, but still offer an reasonably attractive real yield premium and benefit
from the ongoing monetary stimulus by EM Central Banks.
• Given the prevailing downside risks to growth and no sign of a resolution of the US/China trade deadlock in the short term, we
maintain a small underweight in local markets vs. cash in our blended strategies. We continue to have a balanced position in hard
currency, with the long bias in sovereign debt funded with an underweight in corporate credit.
50For Professional Client Use Only
Risk Considerations
Type Description
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.Market Risk
The risk that bond issuers may fail to meet their interest repayments, or repay debt, resulting in temporary or permanent losses to the portfolio.Credit Risk
The risk that the portfolio may be unable to sell an investment readily at its fair market value. In extreme market conditions this can affect the
strategy’s ability to meet redemption requests upon demand.Liquidity Risk
The risk of interest rate movements affecting the value of fixed-rate bondsInterest Rate Risk
The strategy may use certain types of financial derivative instruments (including certain complex instruments). This may increase the portfolio’s
leverage significantly which may cause large variations in the value of investments. Investors should note that the strategy may achieve its investment
objective by investing principally in Financial Derivative Instruments (FDI). There are certain investment risks that apply in relation to the use of FDI.
Derivatives Risk
The risk that a counterparty will not fulfil its payment obligation for a trade, contract or other transaction, on the due date.Counterparty 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.Operational Risk
Investments in a currency other than the base currency of the portfolio are exposed to currency risk. Fluctuations in exchange rates may affect the
return on investment. If the currency of the portfolio is different from your local currency, then you should be aware that due to exchange rate
fluctuations the performance may increase or decrease if converted into your local currency
Currency Risk
Emerging markets are likely to bear higher risk due to a possible lack of adequate financial, legal, social, political and economic structures, protection
and stability as well as uncertain tax positions which may lead to lower liquidity. The value of a portfolio may experience medium to high volatility due
to lower liquidity and the availability of reliable information, as well as due to the strategy's investment policies or portfolio management techniques.
Emerging Market Risk
Appendix & Disclaimer
300504
52For Professional Client Use Only
Emerging Market Debt Hard Currency – 2019 Attribution YTD
As of September 30, 2019
Source: Blackrock Aladdin. Past performance is not indicative of future returns.
Figures are quoted in US Dollars and are gross of fees. Benchmark: JPMorgan EMBI Global Diversified Index.
Please note: different treatment of defaulted bonds in portfolio characteristic calculations causes discrepancies between the index provider and our 3rd party portfolio analytics system. Performance is not impacted by these
differences, however performance attribution will show discrepancies due to the treatment of the defaulted bonds. Representative portfolio information (characteristics, holdings, weightings, etc.) is subject to change without notice.
Client accounts are individually managed and may vary significantly from composite performance and representative portfolio information.
Yield Curve -17
Spread Duration Exposure Effect 17
Country Allocation -142
Security Selection 123
Residuals (pricing, trading effect, fees) -7
Total -25
Average
Weight
(% MV)
Spread
Duration
Contribution
Outperformance (bps)
Country Port B/M Active
Country
Allocation
Effect
Instrument
Selection
Effect
Total
Effect
Lebanon 0.2 1.9 -0.08 39 -1 38
Ukraine 3.7 2.4 0.08 22 13 34
Ivory Coast 3.6 0.8 0.18 20 -1 19
Brazil 3.5 3.1 0.01 -1 16 15
Croatia 3.0 1.2 0.18 11 3 15
China 3.1 4.2 -0.07 1 12 14
Russia 3.8 3.3 0.03 3 9 12
Chile 1.0 2.7 -0.17 2 5 7
Ghana 2.0 1.0 0.08 8 -1 6
Nigeria 2.5 2.0 0.04 3 2 5
Average
Weight
(% MV)
Spread
Duration
Contribution
Outperformance (bps)
Country Port B/M Active
Country
Allocation
Effect
Instrument
Selection
Effect
Total
Effect
Argentina 4.7 2.3 0.20 -196 56 -140
Ecuador 1.7 2.5 -0.02 -10 -2 -12
Venezuela 1.2 0.7 0.00 -30 20 -10
Oman 1.3 2.4 -0.01 -1 -8 -9
Saudi Arabia 1.4 1.8 -0.04 -6 -1 -7
Mexico 4.9 4.7 0.19 4 -10 -6
Iraq 0.0 0.6 -0.02 -4 0 -4
Sri Lanka 3.4 2.2 0.09 6 -10 -4
Pakistan 0.0 0.9 -0.04 -4 0 -4
Kenya 0.3 0.9 -0.03 -2 -1 -4
Factor Contribution (bps)
Top 10 Country Active Contributions Bottom 10 Country Active Contributions
53For Professional Client Use Only
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
Custom Blend
(%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
Custom Blend
(%)
YTD Jun-
201910.07 9.61 9.50 ≤ 5 2,081.6 -- -- -- 7.89 6.67
2018 -6.18 -6.85 -4.52 ≤ 5 1,944.0 304.1 0.64 -- 8.42 7.42
2017 15.08 14.27 12.13 ≤ 5 1,958.4 295.2 0.66 -- 8.04 7.37
2016 10.32 9.52 10.25 ≤ 5 1,086.2 255.2 0.43 -- 9.06 8.30
2015 -7.51 -8.24 -7.14 ≤ 5 528.0 240.4 0.22 -- -- --
2014 1.26 0.37 0.31 ≤ 5 300.8 250.0 0.12 -- -- --
3 Months
20130.48 0.25 0.09 ≤ 5 100.5 241.7 0.04 -- -- --
Emerging Market Debt - Blend Composite (Inception 10/1/2013)
Investment Performance Results – As of June 30, 2019
Past performance is no guarantee of future results.
Please see attached important disclosures which contain complete performance information and definitions.
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 has been independently verified for the period January 1, 2011 to December 31, 2018. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on afirm-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. Theverification reports are available upon request.
• 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.
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 BermanTrust Company of Delaware N.A., NB Alternatives Advisers LLC and Neuberger Berman Breton Hill ULC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Emerging Market Debt- Blend Composite (the "Composite") includes the performance of all fee-paying Emerging Market Debt - Blend portfolios, with no minimum investment, managed by the Emerging Market Debt team. The Emerging
Market Debt- Blend strategy seeks to achieve total return consisting of income and capital appreciation, by investing in a diversified selection of debt instrument denominated in USD or local currency issued by issuers from developing countries.The strategy may invest in sovereign, quasi-sovereign, corporate, sub-sovereigns and supra-national issuers. The strategy mainly invests in Latin American, Central and Eastern European, the Middle East, Asian and African debt instruments.The Composite creation and performance inception date is October 2013. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is a blend of 50% of the JP Morgan GBI Emerging Markets Global Diversified Index, 25% of JP Morgan Emerging Markets Bond Index Global Diversified and 25% of the JP Morgan Corporate Emerging Market Bond Diversified
Index .The benchmark is calculated on a total return basis. Additional disclosures for complete benchmark descriptions are available upon request.Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars. Performance includes reinvestment of dividends and other earnings.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: 0.65% on the first $100mn; 0.55% on the next $150mn; 0.45% thereafter.Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least
6 portfolios for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
54For Professional Client Use Only
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
JP Morgan
CEMBI
Diversified Index
(%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
JP Morgan CEMBI
Diversified Index
(%)
YTD Jun-
20199.69 9.17 9.14 ≤ 5 160.0 -- -- -- 4.08 3.40
2018 -2.58 -3.36 -1.72 ≤ 5 118.6 304.1 0.04 -- 4.28 3.63
2017 9.41 8.54 7.89 ≤ 5 145.4 295.2 0.05 -- 4.65 4.10
2016 11.73 10.85 10.43 ≤ 5 124.9 255.2 0.05 -- 5.40 4.66
2015 0.43 -0.36 1.18 ≤ 5 93.8 240.4 0.04 -- -- --
2014 6.45 5.61 5.70 ≤ 5 169.9 250.0 0.07 -- -- --
6 Months
20133.81 3.40 3.11 ≤ 5 29.2 241.7 0.01 -- -- --
Emerging Market Corporate Debt Composite (Inception 7/1/2013)
Investment Performance Results – As of June 30, 2019
Past performance is no guarantee of future results.
Please see attached important disclosures which contain complete performance information and definitions.
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 has been independently verified for the period January 1, 2011 to December 31, 2018. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on afirm-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. Theverification reports are available upon request.
• 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.
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 BermanTrust Company of Delaware N.A., NB Alternatives Advisers LLC and Neuberger Berman Breton Hill ULC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Emerging Market Corporate Debt Composite (the "Composite") includes the performance of all fee-paying Emerging Market Corporate Debt portfolios, with no minimum investment, managed by the Emerging Market Debt team. The
Emerging Market Corporate Debt strategy seeks to achieve long-term capital growth by investing generally in corporate debt instruments denominated in USD. The strategy focuses primarily on issuers from developing countries such as LatinAmerica, Asia, Central and Eastern Europe, Middle East and Africa. The Composite creation and performance inception date is July 2013. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is the JP Morgan CEMBI Diversified Index (the "Index"). The Index is designed to measure the total returns for USD denominated debt issued by emerging market corporations. The CEMBI family of indices expands J.P.
Morgan's regional corporate indices - JACI, LEBI, RUBI, which provide benchmarks for Asia, Latin America, and Russia, respectively. The benchmark is calculated on a total return basis.Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars. Performance includes reinvestment of dividends and other earnings.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: 0.65% on the first $100mn; 0.55% on the next $150mn; 0.45% thereafter.Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least
6 portfolios for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
55For Professional Client Use Only
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
JPM EMBI Global
Diversified Index
(%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
JPM EMBI Global
Diversified Index
(%)
YTD Jun-
201912.02 11.58 11.31 ≤ 5 2,181.9 -- -- -- 6.51 5.60
2018 -5.31 -5.89 -4.26 ≤ 5 1,799.2 304.1 0.59 -- 6.46 5.46
2017 14.82 14.24 10.26 ≤ 5 1,313.8 295.2 0.45 -- 6.27 5.04
2016 12.82 12.34 10.15 ≤ 5 663.4 255.2 0.26 -- 7.07 5.78
2015 -0.30 -0.66 1.18 ≤ 5 1,015.8 240.4 0.42 -- -- --
2014 8.89 8.14 7.43 ≤ 5 98.1 250.0 0.04 -- -- --
7 Months
2013-1.30 -1.70 -2.32 ≤ 5 11.4 241.7 0.00 -- -- --
Emerging Market Debt - Hard Currency Composite (Inception 6/1/2013)
Investment Performance Results – As of June 30, 2019
Past performance is no guarantee of future results.
Please see attached important disclosures which contain complete performance information and definitions.
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 has been independently verified for the period January 1, 2011 to December 31, 2018. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on afirm-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. Theverification reports are available upon request.
• 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.
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 BermanTrust Company of Delaware N.A., NB Alternatives Advisers LLC and Neuberger Berman Breton Hill ULC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Emerging Market Debt - Hard Currency Composite (the "Composite") includes the performance of all fee-paying Emerging Market Debt - Hard Currency portfolios, with no minimum investment, managed on a fully discretionary basis by the
Emerging Market Debt team. The Emerging Market Debt - Hard Currency strategy seeks to achieve long term capital growth by investing generally in debt instruments denominated in USD. The strategy focuses primarily on issuers fromdeveloping countries such as Latin America, Asia, Central and Eastern Europe, Middle East and Africa. The Composite creation and performance inception date is June 2013. A complete list of Neuberger Berman's composites is available uponrequest.
Primary Benchmark Description• The benchmark is the JPM EMBI Global Diversified Index (the "Index"). The Index tracks the total returns for U.S. dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities, including Brady bonds,
loans, and Eurobonds. The benchmark is calculated on a total return basis.Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars. Performance includes reinvestment of dividends and other earnings.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: 0.55% on the first $100mn; 0.45% on the next $150mn; 0.35% thereafter.Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least
6 portfolios for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
56For Professional Client Use Only
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
JPM GBI
Emerging
Markets Global
Diversified Index
(%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
JPM GBI Emerging
Markets Global
Diversified Index
(%)
YTD Jun-
20199.80 9.41 8.72 ≤ 5 4,865.1 -- -- -- 10.64 9.70
2018 -7.75 -8.30 -6.21 ≤ 5 4,142.7 304.1 1.36 -- 11.85 11.09
2017 17.10 16.36 15.21 ≤ 5 2,699.5 295.2 0.91 -- 11.31 10.87
2016 10.22 9.51 9.94 ≤ 5 1,428.0 255.2 0.56 -- 12.55 11.97
2015 -15.73 -16.37 -14.92 ≤ 5 501.4 240.4 0.21 -- -- --
2014 -4.71 -5.43 -5.72 ≤ 5 433.0 250.0 0.17 -- -- --
6 Months
2013-0.13 -0.50 -1.96 ≤ 5 124.6 241.7 0.05 -- -- --
Emerging Market Debt - Local Currency Composite (Inception 7/1/2013)
Investment Performance Results – As of June 30, 2019
Past performance is no guarantee of future results.
Please see attached important disclosures which contain complete performance information and definitions.
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 has been independently verified for the period January 1, 2011 to December 31, 2018. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on afirm-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. Theverification reports are available upon request.
• 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.
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 BermanTrust Company of Delaware N.A., NB Alternatives Advisers LLC and Neuberger Berman Breton Hill ULC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Emerging Market Debt - Local Currency Composite (the "Composite") includes the performance of all fee-paying Emerging Market Debt - Local Currency portfolios, with no minimum investment, managed on a fully discretionary basis by the
Emerging Market Debt team. The Emerging Market Debt - Local Currency strategy seeks to achieve long term capital growth by investing generally in debt instruments denominated in local currencies. The strategy focuses primarily on issuersfrom developing countries such as Latin American, Central and Eastern European, the Middle East, Asian and Africa. The Composite creation and performance inception date is July 2013. A complete list of Neuberger Berman's composites isavailable upon request.
Primary Benchmark Description• The benchmark is the JPM GBI Emerging Markets Global Diversified Index (the "Index"). The Index is designed to measure the total returns for local currency bonds issued by Emerging Market governments. The benchmark is calculated on a
total return basis and is market cap weighted and unmanaged.Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars. Performance includes reinvestment of dividends and other earnings.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: 0.60% on the first $100mn; 0.50% on the next $150mn; 0.40% thereafter.Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least
6 portfolios for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
57For Professional Client Use Only
Composite Benchmark Composite
3 Year Standard
Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
EMD Blend
Investment Grade
Index (%)
No. of
Accounts
Market Value
($, m)
Total Firm Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
YTD Jun-
201910.78 10.34 10.19 ≤ 5 18.5 -- -- -- --
2018 -2.47 -3.06 -2.35 ≤ 5 17.1 304.1 0.01 -- --
5 Months
20172.90 2.65 2.27 ≤ 5 14.3 295.2 0.00 -- --
Emerging Markets Debt - Blend Investment Grade Composite (Inception 8/1/2017)
Investment Performance Results – As of June 30, 2019
Past performance is no guarantee of future results.
Please see attached important disclosures which contain complete performance information and definitions.
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 has been independently verified for the period January 1, 2011 to December 31, 2018. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on afirm-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. Theverification reports are available upon request.
• 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 December31, 2010 and January 1, 1996 to December 31, 2010, respectively.
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., NeubergerBerman Trust Company of Delaware N.A., NB Alternatives Advisers LLC and Neuberger Berman Breton Hill ULC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Emerging Markets Debt - Blend Investment Grade Composite (the "Composite") includes the performance of all fee-paying Emerging Markets Debt - Blend Investment Grade portfolios with no investment minimum managed on a fully
discretionary basis by the Emerging Market Debt team. The Emerging Markets Debt - Blend Investment Grade strategy is designed for investors who seek long term capital growth, by investing generally in a diversified selection of investmentgrade debt instruments denominated in USD and local currencies issued by sovereign, quasi-sovereign and corporate issuers from developing countries. The strategy mainly invests in Latin American, Central and Eastern European, theMiddle East, Asian and African debt instruments. The Composite creation and performance inception date is July 2017. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is a blend of 66.6% of the JP Morgan Emerging Markets Bond Index Global Diversified investment Grade and 33.3% of the JP Morgan GBI Emerging Markets Global Diversified Investment Grade 15% Cap Index.The
benchmark is calculated on a total return basis. Additional disclosures for complete benchmark descriptions are available upon request.Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars. Performance includes reinvestment of dividends and other earnings.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: 0.65% on the first $100mn; 0.55% on the next $150mn; 0.45% thereafter.Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at
least 6 portfolios for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
58For Professional Client Use Only
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
ICE BofAML 3-
Month Treasury
Bill Index (%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
ICE BofAML 3-
Month Treasury
Bill Index
(%)
YTD Jun-
20195.43 5.11 1.24 ≤ 5 5,516.1 -- -- -- 1.81 0.23
2018 1.39 0.89 1.87 ≤ 5 3,694.1 304.1 1.21 -- 1.75 0.20
2017 4.88 4.36 0.86 ≤ 5 3,631.6 295.2 1.23 -- 2.11 0.11
2016 6.10 5.58 0.33 ≤ 5 1,273.4 255.2 0.50 -- 2.58 0.05
2015 2.00 1.49 0.05 ≤ 5 606.8 240.4 0.25 -- -- --
2014 0.91 0.40 0.03 ≤ 5 302.2 250.0 0.12 -- -- --
2 Months
20130.38 0.30 0.02 ≤ 5 22.4 241.7 0.01 -- -- --
Short Duration Emerging Market Debt Composite (Inception 11/1/2013)
Investment Performance Results – As of June 30, 2019
Past performance is no guarantee of future results.
Please see attached important disclosures which contain complete performance information and definitions.
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 has been independently verified for the period January 1, 2011 to December 31, 2018. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on afirm-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. Theverification reports are available upon request.
• 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 December31, 2010 and January 1, 1996 to December 31, 2010, respectively.
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., NeubergerBerman Trust Company of Delaware N.A., NB Alternatives Advisers LLC and Neuberger Berman Breton Hill ULC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Short Duration Emerging Market Debt Composite (the "Composite") represents the performance of all fee-paying Short Duration Emerging Market Debt portfolios, with no minimum investment, managed on a fully discretionary basis by
the Short Duration Emerging Market Debt Fixed Income team. The Short Duration Emerging Market Debt Strategy seeks to achieve a positive total return by investing in short duration emerging market sovereign securities denominated inhard currencies and short duration emerging market corporate debt securities denominated in USD. The strategy focuses primarily on issuers from developing countries located in Latin America, Asia, Central and Eastern Europe, Middle Eastand Africa. The Short Duration Emerging Market Debt Composite ("Composite") represents the performance of all fee-paying, discretionary accounts, managed according to the Short Duration Emerging Market Debt Strategy. The Compositecreation and performance inception date is November 2013. A complete list and description of the NB Composites and performance results is available upon request.
Primary Benchmark Description• The benchmark is the ICE BofAML 3-Month Treasury Bill Index (the "Index"). The Index is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into
a newly selected issue. The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, three months from the rebalancing date. To qualify for selection, an issue must have settledon or before the month-end rebalancing date.
Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars. Performance includes reinvestment of dividends and other earnings.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: 0.45% on the first $100mn; 0.35% on the next $150mn; 0.25% thereafter.Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at
least 6 portfolios for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
59For Professional Client Use Only
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
JPM Asia Credit
Index (%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
JPM Asia Credit
Index
(%)
YTD Jun-
20199.51 9.07 8.04 ≤ 5 17.6 -- -- -- 3.58 2.98
2018 -1.67 -2.26 -0.77 ≤ 5 15.9 304.1 0.01 -- 3.35 2.83
2017 8.22 7.58 5.78 ≤ 5 16.8 295.2 0.01 -- -- --
2016 7.43 6.79 5.81 ≤ 5 16.2 255.2 0.01 -- -- --
6 Months
20150.40 0.10 0.79 ≤ 5 15.0 240.4 0.01 -- -- --
Asian Debt Hard Currency Composite (Inception 7/1/2015)
Investment Performance Results – As of June 30, 2019
Past performance is no guarantee of future results.
Please see attached important disclosures which contain complete performance information and definitions.
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 has been independently verified for the period January 1, 2011 to December 31, 2018. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on afirm-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. Theverification reports are available upon request.
• 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 December31, 2010 and January 1, 1996 to December 31, 2010, respectively.
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., NeubergerBerman Trust Company of Delaware N.A., NB Alternatives Advisers LLC and Neuberger Berman Breton Hill ULC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Asian Debt Hard Currency Composite (the "Composite") includes the performance of all fee-paying Asian Debt Hard Currency portfolios, with no minimum investment, managed on a fully discretionary basis by the Emerging Market Debt
team. The Asian Debt Hard Currency strategy seeks to achieve risk adjusted total returns (income plus capital appreciation) from hard currency- denominated debt issued in Asian countries. The strategy will invest primarily in debt securitiesand money market instruments which are issued by governments of, government agencies, or corporate issuers which have their head office or exercise an overriding part of their economic activity in Asian countries and which aredenominated in Hard Currency. For the purposes of this strategy, Hard Currency is defined as US Dollar, Euro, Sterling, Japanese Yen and Swiss Franc. The Composite creation and performance inception date is July 2015. A complete listof Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is the JPM Asia Credit Index (the "Index"). The Index tracks the total return performance for actively traded USD denominated debt instruments in the Asia region (excluding Japan). The JPM Asia Credit Index (JACI) tracks
total return performance of the Asia fixed-rate dollar bond market. JACI is a market cap-weighted index comprising sovereign, quasi-sovereign and corporate bonds and it is partitioned by country, sector and credit rating. The benchmark iscalculated on a total return basis. Additional disclosures for complete benchmark descriptions are available upon request.
Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars. Performance includes reinvestment of dividends and other earnings.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: 0.60% per annum.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.
60For Professional Client Use Only
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
China UCITS
Custom Index
(%)
No. of
Accounts
Market Value
(¥, m)
Total Firm
Assets
(¥, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
China UCITS
Custom Index
(%)
YTD Jun-
20191.96 1.58 1.51 ≤ 5 198.5 -- -- -- 1.95 2.07
2018 7.37 6.61 7.24 ≤ 5 194.7 2,087.8 0.01 -- 1.81 2.05
2017 -0.36 -0.93 -0.89 ≤ 5 202.4 1,922.3 0.01 -- -- --
2016 1.58 0.92 2.15 ≤ 5 203.4 1,773.4 0.01 -- -- --
3 Months
20152.85 2.69 2.97 ≤ 5 200.7 1,561.1 0.01 -- -- --
China Bond Core Composite (Inception 10/1/2015)
Investment Performance Results – As of June 30, 2019
Past performance is no guarantee of future results.
Please see attached important disclosures which contain complete performance information and definitions.
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 has been independently verified for the period January 1, 2011 to December 31, 2018. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on afirm-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. Theverification reports are available upon request.
• 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 December31, 2010 and January 1, 1996 to December 31, 2010, respectively.
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., NeubergerBerman Trust Company of Delaware N.A., NB Alternatives Advisers LLC and Neuberger Berman Breton Hill ULC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The China Bond Core Composite (the "Composite") includes the performance of all fee-paying China Bond Core portfolios, with no minimum investment, managed on a fully discretionary basis by the Emerging Market Debt team. The China
Bond Core Strategy seeks to achieve risk adjusted total returns (income plus capital appreciation) from local interest rates of the People's Republic of China ("PRC"). The strategy will invest primarily in debt securities and money marketinstruments which are issued within the PRC by PRC government, PRC government agencies or corporate issuers. The Composite creation and performance inception date is October 2015. A complete list of Neuberger Berman'scomposites is available upon request. Effective January 2019 the composite has been renamed from China Onshore Bond Composite to the China Bond Core Composite.
Primary Benchmark Description• The benchmark is the China UCITS Custom Index (the "Index"). The Index tracks the total return performance of a bond portfolio consisting of Chinese Yuan (CNY) denominated, high quality and liquid bonds in China onshore market. The
benchmark is calculated on a total return basis.• Prior to May 2016, the benchmark was the HSBC Asian Local China Index.Reporting Currency• Valuations are computed and performance is reported in Yuan Renminbi. Performance includes reinvestment of dividends and other earnings.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: 0.65% per annum.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.
61For Professional Client Use Only
Composite Benchmark Composite
3 Year Standard
Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
China Bond New
Composite TR
Index (%)
No. of
Accounts
Market Value
(¥, m)
Total Firm Assets
(¥, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
YTD Jun-
20194.34 4.11 1.86 ≤ 5 174.4 -- -- -- --
6 Months
20184.02 3.69 4.13 ≤ 5 80.4 2,087.8 0.00 -- --
China Bond Total Return Composite (Inception 7/1/2018)
Investment Performance Results – As of June 30, 2019
Past performance is no guarantee of future results.
Please see attached important disclosures which contain complete performance information and definitions.
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 has been independently verified for the period January 1, 2011 to December 31, 2018. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on afirm-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. Theverification reports are available upon request.
• 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 December31, 2010 and January 1, 1996 to December 31, 2010, respectively.
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., NeubergerBerman Trust Company of Delaware N.A., NB Alternatives Advisers LLC and Neuberger Berman Breton Hill ULC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The China Bond Total Return Composite (the "Composite") includes the performance of all fee-paying China Bond Total Return portfolios, with no minimum investment, managed on a fully discretionary basis by the Emerging Market Debt
team. The China Bond Total Return Strategy seeks to achieve attractive risk adjusted total returns (income plus capital appreciation) by primarily investing in fixed income instruments issued within the People's Republic of China ("PRC")through a total return oriented approach with flexible duration and sector allocation. The strategy will invest primarily in debt securities and money market instruments denominated in local currency which are issued within the PRC by thePRC government, PRC Municipalities and Provinces, Policy Banks, other PRC government agencies or corporate issuers. In addition, up to 33% of market value may be invested in hard currency (eg USD) debt issued by Chinese entities.The Composite creation and performance inception date is July 2018. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is the China Bond New Composite TR Index (the "Index"). The Index tracks the total return performance of a bond portfolio consisting of Chinese Yuan (CNY) denominated, high quality and liquid bonds in China onshore
market. The benchmark is calculated on a total return basis and rebalanced monthly.Reporting Currency• Valuations are computed and performance is reported in Yuan Renminbi. Performance includes reinvestment of dividends and other earnings.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: 0.65% per annum.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.
62For Professional Client Use Only
Index Definitions
Emerging Markets – Corporate Debt
The Corporate Emerging Market Bond Index series (CEMBI) track USD denominated debt issued by emerging market corporations. The CEMBI family of indices expands J.P. Morgan's
regional corporate indices - JACI, LEBI, RUBI, which provide benchmarks for Asia, Latin America, and Russia, respectively
Emerging Markets – Local Debt
The local debt package consists of the Government Bond Index-Emerging Markets (GBI-EM) series, which was developed in response to an increase in investor appetite towards local
currency debt. The package contains three variations - the GBI-EM, GBI-EM Global and GBI-EM Broad - which cater to different investment objectives and inclusion criteria. The indices
span over 15 countries and are also available in diversified weighting versions.
Emerging Markets – External Debt
The family of J.P. Morgan Emerging Market Bond Index (EMBI) is the most widely used and comprehensive emerging market sovereign debt benchmarks. Historical information is
available since December 1993.
Emerging Markets – Local Currency Money Markets
The J.P Morgan Local Market Index Plus (ELMI+) tracks total returns for local-currency denominated money market instruments in 24 emerging markets countries. The benchmark was
introduced in June 1996 and consists of foreign exchange forward contracts laddered with maturities ranging from one to three months. Country weights are based on a trade-weighted
allocation, with maximum weight of 10% for countries with convertible currencies and 2% for countries with non-convertible currencies.
Emerging Markets – Investment Grade Corporates
The J.P. Morgan US Liquid Index (JULI) provides performance comparisons and valuation metrics across a carefully defined universe of investment grade corporate bonds, tracking
individual issuers, sectors and sub-sectors by their various ratings and maturities.
63For Professional Client Use Only
Additional 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, 2019, the percentage of total
institutional-oriented equity AUM outperforming the benchmark was as follows: Since Inception: 88%; 10-year: 73%; 5-year: 75%; and 3-year: 83%; and total institutional-oriented fixed income AUM outperforming was as follows:
Since Inception: 94%, 10-year: 52%; 5-year: 77%; and 3-year: 67%. If HNW AUM were included, total equity AUM outperforming the benchmark was as follows: Since Inception: 86%; 10-year: 47%; 5-year: 52%; and 3-year: 58%;
and total fixed income AUM outperforming was as follows: Since Inception: 94%; 10-year: 53%; 5-year: 76%; and 3-year: 66%. 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 6/30/2019, six equity teams/strategies accounted for approximately 52% of the total firm equity (ISA, MAG and mutual fund combined)
assets reflected, and nine strategies accounted for approximately 52% of the total firm fixed income (ISA, MAG and mutual fund combined) assets 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 2007 – 2016, 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 2016 are excluded as benchmark information is not yet available. Please note that
funds without a comparable benchmark are excluded (this includes certain commingled funds with unique investment objectives, specialty strategies, and private debt funds).
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 2007 through
2016. 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 European PE Index was used for direct Italian Investment Strategies; the Cambridge Fund of Funds
Index was used for commingled funds and custom portfolios comprised of primaries, secondaries and co-investments.
The Cambridge Associates LLC indices data is as of December 31, 2018, 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, 2018, 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.
64For 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 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 accurate or 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 product 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 product can only be promoted if such promotion is made in
compliance with the applicable jurisdictional rules and regulations.
Indices are unmanaged and not available for direct investment.
An investment in this product involves risks, with the potential for above average risk, and is only suitable for people who are in a position to take such risks.
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 this strategy 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.
© 2019 Neuberger Berman Group LLC. All rights reserved.
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