United States Not Your Location?

To access available investments and market insights, please select your audience (required).

Skip to content
Select Your Region
    Select Your Country
    Select Your Audience
      Change Country

      2016 Annual Report

      The 2016 Annual Report reviews the ideas and events that shaped our business in 2016 and that are likely to impact it in the years to come. With the perspectives of a broad cross-section of Neuberger Berman professionals, we hope to convey a thorough understanding of our firm, our people, our culture and, most important, our commitment to clients.

      For a full view of Neuberger Berman, we invite you to download your copy of the annual report.

      A Message From Our CEO

      George H. Walker
      Chairman and Chief Executive Officer

      2016 was a year of great change—in geopolitics, in economic policy and expectations, and in financial markets.

      We witnessed a strain of nationalistic populism migrate from the fringes of political discourse to the mainstream and in the process inspire the emergence of a new investment paradigm. Risk assets of all stripes and geographies finished an up-and-down year overwhelmingly up, some quite impressively. Bond markets also generated gains for many investors, though I believe we have seen the beginning of the end of their 30-year bull run.

      As a firm, Neuberger Berman entered 2017 buoyed by strong investment performance consistent with our singular focus on delivering compelling long-term results on behalf of our clients. In the U.S., Barron’s recognized us as a top-10 fund family for 2016 amongst a long list of competitors we admire. During the year clients entrusted us with an additional $1.4 billion of their irreplaceable assets, which—together with solid investment performance—raised firm assets under management to a record-high $255 billion.

      Our operating philosophy remains fundamental to our success:

      Investing for clients and with clients. Neuberger Berman is a private, independent, employee-owned investment manager, a structure we believe best aligns us—both as an organization and as individuals—with the long-term interests of our clients. With no external parent or public shareholders to serve, we are empowered to run our business with a lasting, client-centric perspective. With no proprietary trading or market-making operations, we are able to concentrate our efforts solely on our core activity of investment management. And with our employees and their families having significant personal capital invested alongside that of our clients—plus 100% of employee deferred cash compensation directly linked to team and firm strategies—we are truly in this together.

      Diversity of viewpoints, unity of intent. Our portfolio managers are critical, independent thinkers who benefit from being part of a global, diverse investment organization composed of more than 500 investors with different perspectives on markets, economies and strategies—equity and credit, public and private, long and short, large and small. That breadth of perspective helps bolster conviction and often results in portfolios with high active share and the potential for meaningful alpha generation.

      Yesterday, today and tomorrow. Neuberger Berman by design attracts individuals who share a passion for investing and who thrive in an environment of rigorous analysis, challenging dialogue, and professional and personal respect. In a testament to the strength of the culture we have built—honed by more than 75 years of markets and countless “once-in-a-lifetime” events—these professionals have tended to stay with the firm, stability that over time drives results and consistency of process. 2016 was another extraordinary year in this regard, with no portfolio managers departing for a competitor yet again.

      Alignment between clients and employees is fundamental.  In that spirit we are proud to note that Neuberger Berman recently was named the #1 firm (amongst those with 1,000 or more employees) in the Pensions & Investments 2016 “Best Places to Work in Money Management” survey after ranking in the top five in each of the prior three years.  Attracting and retaining the best employees is fundamental to our ability to deliver compelling long-term investment results for clients, and we continue to invest in our team and our culture.

      To continue, download the full Annual Report.

      This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Please refer to Neuberger Berman’s 2016 Annual Report for fuller discussions and related disclosures. Neuberger Berman products and services may not be available in all jurisdictions or to all client types. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results.

      Barron’s “Best Fund Families of 2016” measures one year results of 61 fund families. Neuberger Berman was not ranked in the 5- or 10-year category by Barron’s because it previously did not have broad enough categories for this survey. To qualify for the Lipper/Barron's Fund Survey, a group must have at least (i) three funds in Lipper's general U.S. equity category; (ii) one in world equity, which combines global and international funds; (iii) one mixed-equity fund, which holds stocks and bonds; (iv) two taxable-bond funds; and (v) one-tax-exempt offering. Barron's notes that their goal is to measure manager skill, independent of expenses beyond annual management fees.  As a result, each fund's returns are calculated before deduction of any sales charge or 12b-1 fee.  Each fund's return is measured against those of all funds in its Lipper category (e.g., small-cap value). That leads to a percentile ranking, with 100 being the highest and 1 the lowest, which is then weighted by asset size, relative to the fund family's other assets in its general classification. If a family's biggest funds do well, that boosts its overall ranking. Poor performance in a big fund has a big effect on the ranking. Finally, the score is multiplied by the weighting of its general classification, as determined by the entire Lipper universe of funds. Finally, the score is multiplied by the weighting of its general classification, as determined by the entire Lipper universe of funds. The category weightings for the one-year results in 2016 were general equity, 39.6%; mixed asset, 17.4%; world equity, 17.2%; taxable bond, 22.3%; tax-exempt bond, 3.5%.

      Awards, ratings or rankings referenced do not reflect the experiences of any Neuberger Berman client and should not be viewed as representative of any particular client’s experience.  It should not be assumed that any investor will have a similar investment experience as any previous or existing client.  Awards, ratings or rankings are not indicative of the past or future performance of any Neuberger Berman product or service. 

      All information is as of December 31, 2016, unless otherwise indicated and is subject to change without notice.  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”).

      This material is being issued on a limited basis through various global subsidiaries and affiliates of Neuberger Berman Group LLC. Please visit www.nb.com/disclosure-global-communications for the specific entities and jurisdictional limitations and restrictions.

      The “Neuberger Berman” name and logo are registered service marks of Neuberger Berman Group LLC. 

      © 2017 Neuberger Berman Group LLC. All rights reserved.