NB Defined Contribution Investment Solutions
Overview
As an increasing number of Americans relies on defined contribution (“DC”) plans as their primary retirement saving tool, market volatility and evolving regulation have raised new questions as to how plan sponsors can evolve their DC plans in order to provide participants with investment options and solutions to help meet their retirement goals.
Managing client assets is our sole focus
Designing strategies for simplified yet diversified plan menus
Providing vehicles for portfolios that fit plan structures
Delivering relationship support
Our Approach1
For decades, Neuberger Berman has provided innovative investment solutions to many forward-thinking institutions and individuals. Plan sponsors and participants have entrusted our managers with nearly $126 billion of retirement savings.
Platform at a Glance2
100%
independent, employee-owned3
More than 753 investment professionals worldwide
Offices in 39 cities across 30 countries
99%
of client assets managed by lead PMs who have 20+ years of industry experience
$6 bn
invested by Neuberger Berman employees alongside clients4
A+
awarded score in the U.N.-Backed Principles for Responsible Investment (PRI)5
Solving for DC Plan Challenges
Outcomes matter when saving for retirement. Participants face growing challenges, including growing savings, mitigating downside risk, hedging against inflation and replacing income in retirement. In our view, plan sponsors can take into account a number of investment design considerations to help address these issues including:
Diversifying their investment menu
Considering participant demographics
Including both active and passive choices
Participant challenges
Case Study 1: Active Investing in Small Caps May Provide Participants with a Measure of Downside Risk Mitigation in Volatile Environments
Participant challenges
We believe indexing small caps could expose participants to increased risk.
- Mitigating losses in down markets is an important component of participants reaching successful retirement outcomes.
- Building a diversified portfolio is important to help participants grow their savings.
NB Alternative: Neuberger Berman Genesis Fund
NB Alternative: Neuberger Berman Genesis Fund
- A long-term track record
- Co-portfolio managers have led the fund for 24 years and leverage seven dedicated analysts
- A consistent investment process that focuses on high-quality investing
Participant challenges
Case Study 2: An Actively Managed, Multi-Sector Portfolio May Offer Diversification Potential
Participant challenges
Many plan lineups have historically been built with only a core fixed income option, leaving participants with inefficient exposure in our view.
- Many plans offer limited fixed income options: core bond, money market and stable value.
- Aggregate fixed income benchmarks are currently heavily weighted to Treasuries.
- As such, participants may now have more concentrated exposure to certain risks than they did in the past.
NB Alternative: Neuberger Berman Strategic Income Fund
NB Alternative: Neuberger Berman Strategic Income Fund
- Expands the opportunity set beyond traditional fixed income sectors
- Flexibility to adjust sector allocation and duration positioning
- Diverse mix of asset classes have the potential to help mitigate effects of rising interest rates
Collective Investment Trust Capabilities
Interest in collective investment trusts (“CITs”) has been steadily growing within defined contribution plans as modern CITs have increased transparency, reporting, investment choices and flexibility, in contrast to earlier versions of CITs, which were mainly utilized by defined benefit plans. CITs have become a popular alternative to mutual funds within qualified retirement plans. Over the past decade, CIT use has grown by about 25% within DC plans, while the usage of mutual funds has decreased—a trend that we expect to continue.
Percent of DC Plans that Offer CITs within the Fund Lineup6
CIT Overview
Collective Investment Trusts: What You Need to KnowThere are many reasons why CITs are growing in popularity, including ease of adoption, competitive fees and improved transparency. In this guide, we provide a short discussion covering the history of CITs, how they differ from other investment vehicles and what steps fiduciaries can take to add them to a DC plan.
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CIT Offerings
Neuberger Berman Offers a Suite of CITs Across Multiple Asset ClassesCollective Investment Trusts ("CITs") are designed to help meet the diverse needs of plan sponsors trying to navigate today’s challenging market environment. Our daily valued vehicles provide solutions for many types of qualified plans including defined contribution, defined benefit and certain governmental plans.
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The Retirement Tier
Keeping participants in the plan after retirement is of growing importance to many plan sponsors. Adding solutions for nearing and current retirees may help plan sponsors retain this valuable participant group. The term Retirement Tier is used to describe a platform of investment products, tools and services designed specifically for plan participants nearing retirement who are interested in remaining invested in their employer-sponsored DC plan. The product solutions and educational resources within the tier are tailored to take into account the specific goals and needs of participants who are transitioning to the spending phase.
The Retirement Tier: A Guide for Plan Fiduciaries
To help plan sponsors evaluate how to address the needs of participants nearing retirement, this guide provides an overview of the current landscape of DC plans in relation to retirement concerns, explains the potential benefits for both retirees and plan sponsors in keeping assets in the plan, and outlines approaches for incorporating a Retirement Tier into retirement plans.
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Retirement Tier Solutions
As DC plans continue to become the primary retirement savings tool, plan sponsors may want to consider incorporating retiree-friendly investment options into a separate portion of their DC plan menu. Identifying the right solutions to help participants through retirement may help align the plan with participant goals and retain a valuable asset group.
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Partnering for Practice Excellence
At Neuberger Berman, our commitment to our clients goes beyond investing. Our goal is to partner with advisors to help them maximize their potential and grow their business. Building a better advisory practice is an evolving mission. It demands time, discipline and a desire to continually reach your clients with meaningful, relevant information. The Neuberger Berman Advisor Institute (NBAI) works hand-in-hand with many of the nation’s leading advisory groups. We encourage you to learn more about how we can help you expand in new markets, deepen your client relationships and elevate your practice.
Life Event Series
A review of more than 30 potentially life-changing events—pivotal times driving change
and creating money in motion—for your clients.
and creating money in motion—for your clients.
Things that happen to you
Changes in your personal or work life and family status can affect your income and how you invest.
Things that happen to your parents
Parenting and financial support rarely end when adult children leave the home.
Things that happen to your children
Be prepared to manage the planned and unexpected events that may impact your elderly loved ones.
Things that happen to your home
Whether you’re buying or selling, it’s important to consider your financial position to help reach (or maintain) your financial goals.
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Michelle Rappa, Client Advisor-Retirement, Managing Director
Michelle Rappa, Managing Director and Client Advisor, joined the firm in 2014. Michelle is focused on formulating and executing the firm’s overall defined contribution (DC) strategy and promoting its institutional DC investment capabilities. Prior to joining Neuberger Berman, Michelle was the director of DC product and strategy at Russell Investments where she was responsible for the strategic product and marketing direction of the firm’s institutional DC business. Before that, she was the director of marketing at Seligman Advisors, Inc., where she was responsible for positioning the firm’s asset management and retirement plan products. Early in her career she was involved in building retirement plan products and marketing strategies at OppenheimerFunds and Oppenheimer Capital. Michelle is a FINRA licensed Registered Representative (Series 7), a Registered Principal (Series 24) and a member of the New York Bar. She is a member of DCIIA Board of Directors, a founding board member and Corporate Secretary of DCALTA, and member of the Board of Directors, Treasurer of the Boys & Girls Club of Northern Westchester. Michelle earned a BS from the State University of New York at Albany and a JD from Fordham University School of Law.
Christopher Walker, National Sales Manager, Senior Vice President
Christopher Walker, Senior Vice President, joined the firm in 2011. Chris is a National Sales Manager — Retirement, and is responsible for Business Development for Defined Contribution Investment Only, covering Arkansas, Colorado, Kansas, Louisiana, Nebraska, New Mexico, Oklahoma, and Texas. Prior to joining the firm, Chris worked for more than six years at Fidelity in the Workplace Investing Group selling fully bundled retirement services to the Emerging and Mid-Market. Prior to that, Chris held numerous positions at DWS Investments within their Retirement Services Division. The most recent was as the south central retirement sales person distributing through consultants and advisors. Chris earned a BS in Psychology, and a minor in History from Texas Christian University. Chris holds a Certified Investment Management Analyst DesignationSMCIMA®) from the Investment Management Consultants AssociationSM (IMCA®).
For general questions about NB Defined Contribution Investment Solutions, contact your Neuberger Berman representative.
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