Neuberger Berman's Wai Lee Wins Award From Readers of The Journal of Portfolio Management
February 27, 2013
Alexander Samuelson, Neuberger Berman, 212.476.5392, Alexander.Samuelson@nb.com
NEW YORK, February 27, 2013 – Neuberger Berman Group LLC, one of the world's leading employee-controlled money managers, is pleased to announce that an article written by Wai Lee, chief investment officer and director of research for the firm's Quantitative Investment Group, has been named "Outstanding Article" by readers of The Journal of Portfolio Management, one of the asset management industry's most influential publications devoted to investment research.
Mr. Lee's article, "Risk On, Risk Off," was one of three voted "Outstanding Article" by readers of the publication as part of the 14th Annual Bernstein Fabozzi/Jacobs Levy Awards for its contribution to the theory and practice of portfolio management. Last year, another of Mr. Lee's articles, "Risk-Based Asset Allocation: A New Answer to An Old Question?" won a "Best Article" of the year and went on to receive The Peter L. Bernstein Award for compelling research in any of Institutional Investor's publications over that year.
"My team and our firm are honored to receive this recognition from The Journal of Portfolio Management, one of the premier publications for institutional investment management," said Mr. Lee of Neuberger Berman. "It is exciting to see that our research has struck a chord among our peers."
Wai Lee serves as co-manager of the Neuberger Berman Risk Balanced Commodity Strategy Fund (tickers: NRBAX, NRBCX, NRBIX) an actively managed, diversified commodity investment fund seeking to generate attractive risk-adjusted returns with low correlation to traditional asset classes. The research of Mr. Lee's team on risk-based investing and asset allocation underlies portfolio construction for the Fund. He is also a senior member of the team managing the Neuberger Berman Global Allocation Fund (tickers: NGLAX, NGLCX, NGLIX) which blends fundamental and quantitative investment analysis to determine asset allocation and security selection.
Details on the award and subscriber access to Mr. Lee's award-winning article can be found online at The Journal of Portfolio Management (http://www.iijournals.com/page/14AnnualBFJLAwards).
About Neuberger Berman
Neuberger Berman is a private, independent, employee-controlled investment manager. It partners with institutions, advisors and individuals throughout the world to customize solutions that address their needs for income, growth and capital preservation. With more than 1,700 professionals focused exclusively on asset management, it offers an investment culture of independent thinking. Founded in 1939, the company provides solutions across equities, fixed income, hedge funds and private equity, and had $205 billion in assets under management as of December 31, 2012. For more information, please visit our website at www.nb.com.
The Journal of Portfolio Management named the 14th Annual Bernstein Fabozzi/Jacobs Levy Awards from a group of approximately 43 articles published by The Journal of Portfolio Management from Winter 2012 through Fall 2012. The "Best Article" and three "Outstanding Article" awards were determined based on subscriber voting. The awards are academic in nature and are not reflective of the investment management capabilities of the authors or their respective firms.
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For the Risk Balanced Commodity Strategy Fund and its Subsidiary will have significant investment exposure to the commodities markets and/or a particular sector of the commodities markets, which may subject the Fund and the Subsidiary to greater volatility than investments in traditional securities. The commodities markets may fluctuate widely based on a variety of factors, including changes in overall market movements, domestic and foreign political and economic events and policies, war, acts of terrorism, changes in domestic or foreign interest rates and/or investor expectations concerning interest rates, domestic and foreign inflation rates and investment and trading activities in commodities. Prices of various commodities may also be affected by factors such as drought, floods, weather, livestock disease, embargoes, tariffs and other regulatory developments. The prices of commodities can also fluctuate widely due to supply and demand disruptions in major producing or consuming regions. To the extent the Fund focuses its investments in a particular commodity in the commodities market, the Fund will be more susceptible to risks associated with the particular commodity. No active trading market may exist for certain commodities investments. Because the Fund's and the Subsidiary's performance is linked to the performance of potentially volatile commodities, investors should be willing to assume the risks of significant fluctuations in the value of the Fund's shares.
To qualify as a regulated investment company ("RIC"), funds must derive at least 90% of their gross income for each taxable year from sources treated as "qualifying income" under the Internal Revenue Code of 1986, as amended. Although qualifying income does not include income derived directly from commodities, including certain commodity-linked derivative instruments, the Internal Revenue Service ("Service") has issued a large number of private letter rulings (which the Risk Balanced Commodity Strategy Fund may not cite as precedent) in recent years that income a RIC derives from a wholly owned foreign subsidiary (such as the Subsidiary) that earns income derived from commodities is qualifying income. The Service suspended the issuance of those rulings in July 2011. The Risk Balanced Commodity Strategy Fund nevertheless has received an opinion of counsel, which is not binding on the Service or the courts, that income the Risk Balanced Commodity Strategy Fund derives from the Subsidiary should constitute qualifying income.
The tax treatment of income from commodity-related investments and the Risk Balanced Commodity Strategy Fund's income from the Subsidiary may be adversely affected by future legislation, Treasury Regulations, and/or guidance issued by the Service that could affect the character, timing, and/or amount of the Risk Balanced Commodity Strategy Fund's taxable income or capital gains and distributions it makes. If the Service were to change its ruling position, such that the Risk Balanced Commodity Strategy Fund's income from the Subsidiary was not qualifying income, the Fund could be unable to qualify as a RIC for one or more years. If the Risk Balanced Commodity Strategy Fund failed to so qualify for any taxable year but was eligible to and did cure the failure, it would incur potentially significant additional federal income tax expense. If, on the other hand, the Risk Balanced Commodity Strategy Fund failed to so qualify for any taxable year, and was ineligible to or otherwise did not cure the failure, it would be subject to federal income tax on its taxable income at corporate rates, with the consequence that its income available for distribution to shareholders would be reduced and all such distributions from earnings and profits would be taxable to them as dividend income. In that event, the Fund's Board of Trustees may authorize a significant change in investment strategy or the Risk Balanced Commodity Strategy Fund's liquidation.
Governments, agencies, or other regulatory bodies may adopt or change laws or regulations that could adversely affect the issuer, the market value of the security, or the Funds' performance. Under recent Commodity Futures Trading Commission ("CFTC") rule amendments, the Funds will need to comply with certain disclosure and operational regulations governing commodity pools, which may increase the Fund's regulatory compliance costs. To the extent additional regulations are adopted, the Funds may be compelled to consider significant changes, which could include substantially altering its principal investment strategies or, if deemed necessary, liquidating the Funds.
By investing in the Subsidiary, the Risk Balanced Commodity Strategy Fund is indirectly exposed to the risks associated with the Subsidiary's investments. The commodity-linked derivative instruments and other investments held by the Subsidiary are similar to those that are permitted to be held by the Risk Balanced Commodity Strategy Fund, and thus, are subject to the same risks whether or not they are held by the Risk Balanced Commodity Strategy Fund or the Subsidiary. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the "1940 Act"), and, unless otherwise noted in this prospectus, is not subject to all the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands, under which the Fund and the Subsidiary, respectively, are organized, could result in the inability of the Risk Balanced Commodity Strategy Fund and/or the Subsidiary to operate as described in this prospectus and the Statement of Additional Information and could adversely affect the Fund and its shareholders.
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