Press Release

Neuberger Berman expands ESG Platform; Japan Equity Engagement Strategy Grows Offerings

July 09, 2020

Media Contact:

Fiona Kehily, +44 (20) 3214 9087, Fiona.Kehily@nb.com

London, 9 July 2020 - Neuberger Berman, a private, independent, employee-owned investment manager, is expanding its ESG platform adding a new UCITS running the firm’s Japanese Equity Engagement strategy. The new UCITS fund seeks attractive returns through active engagement and constructive dialogue with Japanese small and mid-cap companies. Neuberger Berman has a diversified set of ESG-integrated funds available to international investors, including the Neuberger Berman Emerging Market Debt Sustainable Investment Grade Blend Fund, the Neuberger Berman Emerging Markets Sustainable Equity Fund, and the recently launched Neuberger Berman Global High Yield Sustainable Action Fund.

The Neuberger Berman Japan Equity Engagement Fund will have a bias towards companies with the ‘willingness to change’ and seeks to achieve a better risk-adjusted return relative to its benchmark over the long term. Investing in Japanese-listed firms with a market capitalisation generally lower than JPY 1 Trillion, the portfolio will be highly concentrated and will draw upon the expertise of Neuberger Berman’s ESG investing and global equity research teams. The fund’s high-conviction security selection will be defined by a rigorous three-staged screening and scoring process focusing on quality, governance, environmental, social, and valuation factors.

Tokyo-based Keita Kubota, Head of Japanese Equities at Neuberger Berman, will manage the fund. Mr. Kubota, who joined the firm in November 2019, leads a four-member team of experienced portfolio managers with a deep understanding of local businesses. The fund’s core investment team will also be assisted by the newly appointed Director of Japan Investment Stewardship, Kei Okamura, who joined Neuberger Berman in March of this year.

Mr. Kubota says: “Corporate governance has never been more firmly on the Japanese government’s agenda, and we are seeing a new level of open-mindedness amongst companies to change and improve. We believe now is the time to find undervalued Japanese equities through using a fundamental research approach with active and constructive engagement. Our team’s local knowledge, coupled with Neuberger’s global equity research expertise, will be key to generating long-term returns for clients.”

Jonathan Bailey, Head of ESG Investing at Neuberger Berman, says: “Following the launch of the NB Global High Yield Sustainable Fund earlier this year, the launch of the Japan Equity Engagement Fund further underlines our commitment to offering clients innovative sustainable investing strategies across asset classes. We believe too few investors are engaging Japanese small and mid-cap companies on material environmental, social and governance topics, which creates a significant opportunity for us to create value and impact for our clients. We are excited that Kei Okamura has joined the firm not only to be central to the investment process of this fund, but also to partner with colleagues on the ESG Investing team around the world. At a time of great economic and social uncertainty, the need for long-term active investors who can exercise judgement around ESG issues has never been greater.”

Notes to editors:

Neuberger Berman’s ESG Policy

As an active manager, Neuberger Berman has a long-standing belief that material environmental, social and governance factors are an important driver of long-term investment returns from both an opportunity and a risk mitigation perspective. We also understand that for many of our clients the impact of their portfolio is an important consideration in conjunction with investment performance.

About Neuberger Berman

Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 24 countries, Neuberger Berman’s diverse team has 2,300 professionals. For six consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). The firm was awarded an A+ in every category in the latest 2019 PRI report for our approach to ESG integration across asset classes. The firm manages $330 billion in client assets as of March 31, 2020. For more information, please visit our website at www.nb.com.