Stewardship

Background

Eli Lilly is the largest pharmaceutical company in the U.S., engaged in the development and sale of pharmaceutical products on a global basis. Key treatment areas range from oncology to immunology, but its market-leading position is in incretins (GLP), which treat type 2 diabetes and obesity, and have generated industry-leading growth over the past five years. Given the prevalence and health burdens of obesity, the addressable market is large, but carries patient access issues tied to pricing, insurance coverage and government budgets. Due to its financial materiality, this topic has been broached by many investors, as well as policymakers, patients and the health insurance industry.

Background

Kinden Corporation is one of Japan’s leading contractors in integrated electrical systems and facilities engineering. As the domestic buildout of data centers accelerates, we see the company as well positioned to capture higher-value work that can support margin improvement.

Background

Restaurant Brands International is the owner of Burger King, Tim Horton’s, Popeye’s and Firehouse Subs, which comprise over 30,000 restaurant locations across more than 100 countries. It has been part of our non-investment grade portfolios for more than a decade.

Background

Taylor Morrison is a major land developer and homebuilding company, with a footprint largely focused on the U.S. Sunbelt. Like others in its sector, energy efficiency is a financially material matter for the company.

Background

Texas Instruments makes semiconductors that are used across myriad industries and products on a global basis. Over the more than 20 years it has been in Neuberger portfolios, the company has always been a proactive and responsive partner on sustainability issues. Starting in April 2023, we engaged with the company on news reports that its components had been found in Russian weapons, thus evading U.S. sanctions for use in an area of conflict, and relatedly, on the importance of “know your customer” due diligence and reporting.

Background

Toro Company designs and manufactures equipment used for professional turf maintenance, landscaping, snow/ice removal and underground construction. Neuberger has held a stake in the company for roughly two decades, based on its leading market position across product categories, reputation for innovation, and extensive distribution and customer care network.

Background

UGI is a natural gas and propane delivery company. It operates several businesses, including a natural gas local distribution utility and a natural gas midstream gathering and processing concern. The company also runs the largest U.S. propane delivery and distribution network, and one of the largest propane distribution businesses in Europe. Although we have long followed the company, we became investors in 2024 as the company sought to focus on the high-quality utilities/midstream segment and deemphasize or even sell its less desirable propane distribution unit, bringing in a highly regarded CEO with whom we have had a working relationship for three decades to facilitate the transition.