All information is as of December 31, 2021, unless otherwise indicated.
Firm assets under management (AUM), as of December 31, 2021, include $146.7 billion in Equity assets, $190.6 billion in Fixed Income assets and $123.2 billion in Alternatives assets.
Firm data, including employee and assets under management figures, reflect collective data for the various affiliated investment advisers that are subsidiaries of Neuberger Berman Group LLC (the “firm”). Firm history and timelines includes the history and business expansions of all firm subsidiaries, including predecessor entities and acquisition entities. Investment professionals referenced include portfolio managers, research analysts/associates, traders, and product specialists and team dedicated economists/strategists.
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The information in this material may contain projections, market outlooks or other forward-looking statements regarding future events, including economic, asset class and market outlooks or expectations, and is only current as of the date indicated. There is no assurance that such events, outlook and expectations will be achieved, and actual results may be significantly different than that shown here. The duration and characteristics of past market/economic cycles and market behavior, including any bull/bear markets, is no indication of the duration and characteristics of any current or future be market/economic cycles or behavior. Information on historical observations about asset or sub-asset classes is not intended to represent or predict future events. Historical trends do not imply, forecast or guarantee future results. Information is based on current views and market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons.
Discussions of any specific sectors and companies are for informational purposes only. The firm, its employees and advisory accounts may hold positions of any companies discussed. Specific securities identified and described do not represent all of the securities purchased, sold or recommended for advisory clients. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. Any discussion of environmental, social and governance (ESG) factor and ratings are for informational purposes only and should not be relied upon as a basis for making an investment decision. ESG factors are one of many factors that may be considered when making investment decisions.
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, 2022, the percentage of total institutional-oriented equity AUM outperforming the benchmark was as follows: Since Inception: 82%; 10-year: 82%; 5-year: 79%; and 3-year: 72%; and total institutional-oriented fixed income AUM outperforming was as follows: Since Inception: 96%, 10-year: 83%; 5-year: 82%; and 3-year: 70%. If HNW AUM were included, total equity AUM outperforming the benchmark was as follows: Since Inception: 82%; 10-year: 58%; 5-year: 60%; and 3-year: 58%; and total fixed income AUM outperforming was as follows: Since Inception: 95%; 10-year: 83%; 5-year: 81%; and 3-year: 69%. 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 06/30/2022, 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 50% 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 strategies, 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 2010 – 2019, 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. Please note that funds without a comparable benchmark are excluded (this includes certain commingled funds with unique investment objectives, certain 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 2010 through 2019. 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 Burgiss Secondary Index was used for secondary-focused funds; the Burgiss Buyout Index was used for US and Developed Europe co-investment-focused funds; The Burgiss European Buyout Index was used for direct Italian Investment Strategies; the Burgiss Fund of Funds Index was used for commingled funds and custom portfolios comprised of primaries, secondaries and co-investments.
The Burgiss indices data is as of December 31, 2021, which is the most recent data available. The benchmark relies on Limited Partners reporting data for compilation and as such is subject to the quality of the data provided. The median net multiple of the Burgiss Fund of Funds Index is presented for each vintage year as of September 30, 2021, the most recent available.
The public PME benchmark used is the MSCI World Index, as of September 30, 2021.
ESG Thematic, Sustainable or Impact Strategy: ESG Thematic strategies have been identified as meeting the Febelfin Quality Standard for Financial Products. For more information please visit https://www.towardssustainability.be/en/quality-standard. Sustainable strategies seek to improve financial return through ESG considerations and focus on sustainability leaders, while Impact strategies seek financial returns and positive social and environmental outcomes.
ESG Integrated Strategy: These strategies consider the valuation implications of ESG risks and opportunities alongside traditional factors in the investment process.
Febelfin Sustainability Designation: Febelfin is a quality standard for socially responsible financial products that seeks to provide a practical interpretation of what it could mean for a financial product to be called socially responsible or sustainable. In doing so, it determines a floor (minimum norm) for all such products and an aspirational and prominent label. For more information on Febelfin, refer to this link: https://www.febelfin.be/sites/default/files/2019-02/quality_standard_-_sustainable_financial_products.pdf.
Principles for Responsible Investment (PRI) Scores: PRI has delayed publication of 2021 scores. These scores referenced remain the most recently issued. PRI grades are based on information reported directly by PRI signatories, of which investment managers totaled 1,924 for 2020, 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. 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.
The year 2020 represented the first year that asset managers became eligible for PRI Leader designation, which formerly included asset owners only. The new designation was awarded to only 20 of the 2100+ investment manager PRI signatories. The Leaders’ Group showcases signatories at the cutting edge of responsible investment, and highlights trends in what they are doing. PRI uses signatories’ reporting responses and assessment data to identify those that are doing excellent work in responsible investment – across their organizations and with a focus on a given theme each year. The 2020 theme was climate reporting. Information about PRI Leader is sourced entirely from PRI and Neuberger Berman makes no representations, warranties or opinions based on that information.
Philanthropic & Family Governance Advisory Services and related materials are provided as a courtesy and are for informational and discussion purposes only. Neuberger Berman is not acting in a fiduciary capacity or recommending any specific governance structures or philanthropic or charitable activities. Recipients of Philanthropic & Family Governance Advisory Services should consult their own tax or legal advisors before implementing any governance structure or philanthropic or charitable activities.
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