For Professional Client Use OnlyRichard S. NackensonManaging Director and Senior Portfolio ManagerNeuberger BermanUS Multi...
For Professional Client Use OnlyTable of ContentsI. FIRM OVERVIEWII. FUND & TEAM OVERVIEWIII. INVESTMENT PROCESSIV. FUND P...
FIRM OVERVIEW
Neuberger BermanFounded in 1939, we are a leading private, employee-controlled asset management firm,with approximately $2...
Emerging MarketsHard CurrencyLocal CurrencyCorporatesNon-Investment GradeFull Market High YieldShort Duration High YieldBa...
Neuberger Berman Industry AverageOur People: Experienced and Long-TenuredPortfolio team members have invested together at ...
Attractive PerformanceEQUITY AND FIXED INCOME1 ALTERNATIVES188% 95%79%63%70%53%Equity & Fixed Income Equity Fixed Income% ...
FUND & TEAM OVERVIEW
For Professional Client Use OnlyOur Style of Multi-Cap EquityA DISTINCT APPROACH• Comprehensive cash flow analysis is key ...
For Professional Client Use OnlyInvestment Philosophy and ApproachCompanies that require tailored,specific valuation metho...
For Professional Client Use OnlyCore Investment TeamRichard S. Nackenson is a Managing Director of Neuberger Berman and Se...
For Professional Client Use Only6 Analysts 7 Analysts 5 Analysts 5 Analysts 8 Analysts 11 Analysts 2 AnalystsCONSUMER ENER...
INVESTMENT PROCESS
For Professional Client Use Only# of SecuritiesInvestment Process OverviewComprehensive, disciplined process focused on fr...
For Professional Client Use OnlyResources for Idea Generation• Core proprietary research conducted bydedicated investment ...
For Professional Client Use OnlyIn-depth ResearchCOMPREHENSIVE FREE CASH FLOW ANALYSISHow do we arrive at a numerical valu...
For Professional Client Use OnlyAccumulate Cash/Reduce DebtReinvestinCore BusinessInvest inHigh ReturnExpansionProjectsBuy...
For Professional Client Use OnlyPortfolio Construction and Ongoing Risk ManagementConstruct multi-cap core portfolio• Dive...
For Professional Client Use OnlyDisciplined Buy / Sell ProcessBUY• New ideas generated by our research process• Portfolio ...
FUND PERFORMANCE & PORTFOLIO CHARACTERISTICS
For Professional Client Use OnlyFund Performance & Fund Facts_______________________Source: FactSet, Standard & Poor’s.The...
For Professional Client Use OnlyFund Sector Weightings_______________________Source: FactSet, Standard & Poor’s.Sector wei...
For Professional Client Use Only2.513.59.41.46.423.654.510.230.334.214.10.00102030405060$0 - 2B $2 - 5B $5 - 10B $10 - 20B...
For Professional Client Use OnlyFund Top Holdings Compared to Benchmark (Quarterly)_______________________Source: FactSet,...
LONG-TERM PERFORMANCE
For Professional Client Use OnlyPrivate Asset Management – The Nackenson GroupInvestment Performance – As of March 31, 201...
For Professional Client Use OnlyRepresentative Portfolio Investment PerformanceMulti-Cap Opportunities Representative Port...
HISTORICAL CATEGORY & CAPITALISATION WEIGHTINGS
For Professional Client Use Only0%10%20%30%40%50%60%70%80%90%100%Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 D...
For Professional Client Use Only0%10%20%30%40%50%60%70%80%90%100%Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 D...
BIOGRAPHIES
For Professional Client Use OnlyRichard S. Nackenson is a Managing Director of Neuberger Berman and Senior Portfolio Manag...
STOCK EXAMPLES
For Professional Client Use Only1.11.30.91.31.1 1.10.90.5$0.0$0.5$1.0$1.52009 2010 2011 2012BillionsAvailable Free Cash Fl...
For Professional Client Use Only$1,503$982$982 $4,695$1,228$0$1,000$2,000$3,000$4,000$5,000Share Buyback Special Dividend$...
For Professional Client Use OnlyInvestment Example: Great Wolf Resorts (WOLF)Business• Indoor waterpark resort owner and o...
For Professional Client Use OnlyInvestment Example: Great Wolf Resorts (WOLF) (Continued)Deal timeline____________________...
For Professional Client Use OnlyInvestment Example: Hanesbrands Inc. (HBI)Business• Global consumer goods company with a p...
For Professional Client Use OnlyInvestment Example: CSX Corporation (CSX)Business• Class I U.S. Railroad company; operates...
For Professional Client Use OnlyInvestment Example: Boeing (BA)Business• Boeing offers products and services in both the a...
For Professional Client Use Only-20%-10%0%10%20%30%1Q092Q093Q094Q091Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q12BBBY Re...
For Professional Client Use Only13.0x11.4x1.5%9.2x6.0x2.4%02468101214P/E (Fwd) EV/EBITDA (TTM) Dividend Yield (% )3Q 2012 ...
DISCLAIMER
For Professional Client Use OnlyInvestment Performance Disclosure StatementThe Nackenson Group – Inception 12/31/89Benchma...
For Professional Client Use OnlyAdditional DisclosuresDefinitionsS&P 500 Index consists of 500 stocks chosen for market si...
For Professional Client Use OnlyDisclaimerThis document, and the information contained in it, has been made available by N...
For Professional Client Use OnlyDisclaimerThe views expressed are opinions of Neuberger Berman and are subject to change b...
Upcoming SlideShare
Loading in...5
×

Nb us multi cap opportunities fund presentation - may 2013 - citywire sg

1,774

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,774
On Slideshare
0
From Embeds
0
Number of Embeds
15
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Nb us multi cap opportunities fund presentation - may 2013 - citywire sg

  1. 1. For Professional Client Use OnlyRichard S. NackensonManaging Director and Senior Portfolio ManagerNeuberger BermanUS Multi Cap Opportunities Fund
  2. 2. For Professional Client Use OnlyTable of ContentsI. FIRM OVERVIEWII. FUND & TEAM OVERVIEWIII. INVESTMENT PROCESSIV. FUND PERFORMANCE & PORTFOLIO CHARACTERISTICSV. LONG-TERM PERFORMANCEVI. HISTORICAL CATEGORY & CAPITALISATION WEIGHTINGSVII. BIOGRAPHIESVIII. STOCK EXAMPLESIX. DISCLAIMER
  3. 3. FIRM OVERVIEW
  4. 4. Neuberger BermanFounded in 1939, we are a leading private, employee-controlled asset management firm,with approximately $216 billion in assets under management_______________________Sources: Neuberger Berman, FactSet, eVestment, Morningstar, and Lipper, a Thomson Reuters company. All information is as of March 31, 2013, except as otherwise noted. Firm data reflects the collective data for the variousaffiliated investment advisers that are subsidiaries of Neuberger Berman Group LLC.1. AUM outperformance data is asset-weighted and based on the gross of fee performance of the firm’s traditional equity and fixed income strategies against their respective benchmarks and peer categories. Individual strategiesmay have experienced negative performance during certain periods of time. See Additional Disclosures for additional information regarding AUM /fund outperformance and peer statistics (including 3-and 5-yr statistics) and ratings.Mutual funds are not available outside the U.S. Indexes are unmanaged and are not available for direct investment. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results.Industry portfolio manager averages were compiled by Neuberger Berman based on portfolio manager industry experience data as reported to eVestment and includes separate accounts, mutual funds, and other commingledfunds. See Additional Disclosures for additional information on the definition of “investment professionals" and certain exclusions.2. As of March 14, 2013. Ownership includes employees and their permitted transferees3. As of December 31, 2012EXPERIENCED ANDALIGNED WITH CLIENTSFOCUSED ONPERFORMANCEINDEPENDENTAND STABLE72%employee owned295%of client’s assets managed bylead PMs who have 20+ yearsof industry experience1,832employees worldwide418investment professionals70%of the firm’s equity AUMoutperformed their peer groupmedian for the most recent 10year period165%of our U.S. registered mutualfunds are rated 4 and 5 starsOverall by Morningstar vs.32.5% of 4 and 5 Overallstars awarded188%of the firm’s equity & fixedincome AUM outperformedtheir benchmarks for themost recent 10 year period168%of our U.S. registered mutualfund share classes outperformedtheir respective Lipper categoryaverage for the most recent 10year period1up to 50%portfolio manager deferredcompensation invested inown strategies, remainder inthe firm and our strategiesup to 25%annual compensationcontingent/deferred37%longer portfolio managerindustry experience versusindustry average327average years of portfoliomanager industry experienceFIRM OVERVIEW1
  5. 5. Emerging MarketsHard CurrencyLocal CurrencyCorporatesNon-Investment GradeFull Market High YieldShort Duration High YieldBank LoansDistressed DebtInvestment GradeCore/Core PlusOpportunisticCreditPassive/Enhanced IndexTIPSOur Investment Platform_______________________All information as of March 31, 2013, except as otherwise noted. Firm data reflects collective data for the various affiliated investment advisers that are subsidiaries of Neuberger Berman Group LLC.1. Includes $104 billion in Equity assets, $97 billion Fixed Income assets and $15 billion in Alternatives assets under management.2. Committed Capital is a contractual agreement between an investor and a fund that obligates the investor to contribute that money to the fund as requested. The investor will generally make contributions over a period of time,typically over a number of years.3. April 1, 2012 – March 31, 2013. Based on percentage of new institutional mandates.STRATEGIC SOLUTIONSDynamic Real ReturnDynamic Beta NavigatorStrategic PartnershipsEQUITYAUM: $104 billionFIXED INCOMEAUM: $97 billionU.S.Value (Small, Mid, Large)Growth (Small, Mid, Large)Core (Large, All Cap)Flexible (All Cap, All Styles)EAFEAll CapLarge CapACWI ex-USGlobalCoreGrowthThematicRisk BalancedSpecialtySocially ResponsiveREITEquity IncomeMLPsEmerging MarketsGlobal Emerging MarketsGreater ChinaALTERNATIVESAUM / Committed Capital: $19 billion2Private EquityFund of FundsCo-InvestmentSecondariesDirect InvestmentsPrivate DebtHedge FundsFund of FundsAbsolute Return Multi-ManagerLong/Short Equity (U.S., Greater China)Global Tactical Asset AllocationGlobalAggregateOpportunisticTax-ExemptSpecialtyLiability DrivenAsset Backed Securities (ABS)MortgagesCurrencyResidential Mortgage LoanRisk Balanced Commodity StrategyCash & Short DurationApproximately $216 billion assets under management1CLIENTS SERVEDAUM by Client Organization56% Pension Funds, Sovereign WealthFunds and Other Institutions24% Financial Institutions, RIAs and Advisors20% Individuals, Families and theirCharitable OrganizationsAUM by Client Domicile77% U.S.23% InternationalNew Institutional Mandates—Sales Channel Domicile364% Americas16% Europe/Middle East20% Asia-PacificFIRM OVERVIEW2
  6. 6. Neuberger Berman Industry AverageOur People: Experienced and Long-TenuredPortfolio team members have invested together at the firm over market cycles______________________All information as of December 31 2012, except as otherwise noted. Firm data reflects collective data for the various affiliated investment advisers that are subsidiaries of Neuberger Berman Group LLC (the “firm”). See AdditionalDisclosures at the end of this piece, which are an important part of this presentation, for the definition of “investment professionals" and certain exclusions. Industry averages were compiled by Neuberger Berman based on portfoliomanager industry experience data as reported to eVestment and includes separate accounts, mutual funds, and other commingled funds.AVERAGE MANAGER INDUSTRY EXPERIENCE(Years)Average of 12 yearsworking together atNeuberger Berman37% higher thanindustry average26192009 2010 2011 2012Managing Directors 97% 94% 99% 96%Senior Vice Presidents 95% 91% 95% 97%RETENTION LEVELS FOR SENIOR INVESTMENT PROFESSIONALSFIRM OVERVIEW3
  7. 7. Attractive PerformanceEQUITY AND FIXED INCOME1 ALTERNATIVES188% 95%79%63%70%53%Equity & Fixed Income Equity Fixed Income% AUM Exceeding Benchmark % AUM Exceeding Peer Group Median10-Years – Period ended March 31, 2013LONG-TERM OUTPERFORMANCE_______________________Sources: Neuberger Berman and FactSet. All information is as of March 31, 2013, except as otherwise noted. Firm data reflects the collective data for the various affiliated investment advisers that are subsidiaries of NeubergerBerman Group LLC.1. AUM outperformance data is asset-weighted and based on the performance of the gross of fee firm’s traditional equity and fixed income strategies against their respective benchmarks and peer categories. Individual strategiesmay have experienced negative performance during certain periods of time. See Additional Disclosures for additional information regarding AUM outperformance and peer statistics (including 3-and 5-yr statistics) and alternativesperformance statistics. Indexes are unmanaged and are not available for direct investment. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results.PRIVATE EQUITYAnnualized Net IRR: Since Inception, period ended September 30, 2012PE FoF 16.0%PE Index 11.2%NB SOF II 21.9%Secondary Index 12.6%NB Co-Invest Partners Fund I 8.7%Buyout Index 4.7%FUND OF HEDGE FUNDSAnnualized Net Returns: January 1, 2002 – March 31, 2013NB Diversified Arbitrage 4.6%HFRI FOF: Conservative Index 3.1%Distressed Credit Fund Ltd 7.9%HFRI Distressed 8.8%Emerging Managers Sub-Set 6.4%HFRI FOF: Diversified Index 3.7%FIRM OVERVIEW4
  8. 8. FUND & TEAM OVERVIEW
  9. 9. For Professional Client Use OnlyOur Style of Multi-Cap EquityA DISTINCT APPROACH• Comprehensive cash flow analysis is key to unlocking a company’s potential value:− Quantitative− Qualitative− Use of cash− Capital structure• Seeks investments across three categories: special situations, opportunistic, and classicDISCIPLINED BOTTOM-UP INVESTMENT PROCESS• Deep fundamental research• Rigorous valuation criteria and dynamic price limits• Quality management with demonstrated record of building shareholder valueMULTI-FACETED RISK MANAGEMENT• Security and portfolio level risk management• Rigorous buy/sell process seeks to maximise upside potential, minimise downside risk• Well-defined portfolio construction parameters• Independent analysis from firm’s portfolio risk teamEXPERIENCED INVESTORS• Senior Portfolio Manager Richard Nackenson has managed the strategy for over 10 years and has more than 20years of industry experience• Supported by a dedicated investment teamInvests across themarket-cap spectrumusing an opportunisticapproach focused on in-depth cash flow andcapital structureanalysis_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’sviews may differ from those of other Portfolio Managers as well as the views of Neuberger Berman LLC.FUND & TEAM OVERVIEW 5
  10. 10. For Professional Client Use OnlyInvestment Philosophy and ApproachCompanies that require tailored,specific valuation methodologiesand investment research• Unrecognised recovery prospects• Restructuring• Post bankruptcy• Spin-offs• New management teams• “Cold” issues and IPOs• Net asset valueCompanies with provenmanagement teams and consistentlong-term performance• Consistent free cash flow• High return on invested capital• Financial stability• Shareholder-oriented management• Diversified sources of operatingincomeCompanies that have becomeinexpensive for a tangiblereason that we believe istemporary, not permanent• High free cash flow yield• Superior free cash flow growth• Improving return on invested capital• Balance sheet optimisation• Misunderstood by the market• “Underfollowed” companiesCLASSICSPECIALSITUATIONSOPPORTUNISTICUS Multi CapOpportunitiesFund_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well asthe views of Neuberger Berman LLC.We believe that a disciplined and focused approach driven by fundamental research can uncoverinvestment opportunities across market capitalisation and style spectrumsFUND & TEAM OVERVIEW 6
  11. 11. For Professional Client Use OnlyCore Investment TeamRichard S. Nackenson is a Managing Director of Neuberger Berman and Senior Portfolio Manager for theNeuberger Berman US Multi Cap Opportunities Fund. He joined the firm in 1999. Previously, Richard was aSecurities Analyst with Appaloosa Management focusing on global investing across capital structures andindustry sectors. He was a Senior Research Analyst with Pzena Investment Management and also an Associatewith James D. Wolfensohn Incorporated. He began his career with McKinsey & Company. Richard earned botha BS, summa cum laude, and an MBA from the Wharton School at the University of Pennsylvania. He has over20 years of industry experience.Compelling valuations and strong cash flow generation at the company level areproviding an attractive backdrop for equity investing. We believe we are in a stockpicker’s market where stock selection becomes the key driver of portfolio returns.—Richard S. Nackenson,US Multi Cap Opportunities FundDedicated investment team headed by Richard S. NackensonRichard S. NackensonManaging DirectorSenior Portfolio Manager• Broad experience acrossinvestment disciplines,including deep value anddistressed credit• McKinsey backgroundprovides unique perspectiveon corporate strategies andbusiness models• 22 years of industryexperienceThomas O. DeutschVice PresidentSecurities Analyst• Analyst with responsibilitiesacross classic, opportunistic,and special situations• 8 years of industry experienceFUND & TEAM OVERVIEW_______________________Staffing is subject to change without notice. As of March 31, 2013.Steven M. Majocha, CFASenior Vice PresidentSecurities Analyst• Senior analyst withresponsibilities across classic,opportunistic, and specialsituations• 12 years of industryexperienceJason A. MenzinSenior Vice PresidentSecurities Analyst• Senior analyst withresponsibilities across classic,opportunistic, and specialsituations• Experience includes highyield analysis• 13 years of industryexperience7
  12. 12. For Professional Client Use Only6 Analysts 7 Analysts 5 Analysts 5 Analysts 8 Analysts 11 Analysts 2 AnalystsCONSUMER ENERGY &UTILITIESFINANCIALSERVICESHEALTH CARE INDUSTRIALS &MATERIALSTECHNOLOGY,MEDIA & TELECOMMACROSTRATEGIESExtended Team Supported by The Global Equity Research Department_______________________Note: Staffing is subject to change without notice. As of March 31, 2013. The above are members of Neuberger Berman LLC’s Global Equity Research Department.Bolded names represent Analysts, unbolded names represent Associates.43 research analysts and associates in total – 1 analyst maintains sector coverage in two different industries.Cohesive team of 8 professionals supported by centralised buy-side sector analystsFUND & TEAM OVERVIEWCENTRALISED GLOBAL EQUITY RESEARCH DEPARTMENT – 44 PROFESSIONALSRichard S. NackensonManaging DirectorSenior Portfolio ManagerThomas O. DeutschVice PresidentSecurities AnalystHead Trader Portfolio Analyst Research Analyst TraderCORE INVESTMENT TEAMEXTENDED INVESTMENT TEAMSteven M. Majocha, CFASenior Vice PresidentSecurities AnalystJason A. MenzinSenior Vice PresidentSecurities Analyst8
  13. 13. INVESTMENT PROCESS
  14. 14. For Professional Client Use Only# of SecuritiesInvestment Process OverviewComprehensive, disciplined process focused on free cash flow analysisIDEAGENERATION• Dedicated team• Centralised firmresearch resources• Proprietary screens• Field research networkIN-DEPTHRESEARCH• Determine performancedrivers:− Incorporatecompany specificanalysis and fieldresearch• Detailed financial andvaluation models• Storehouse ofknowledgeCOMPREHENSIVEFREE CASH FLOWANALYSIS• Quantitative• Qualitative• Uses of free cash flowINITIALINVESTMENTUNIVERSE• Publicly traded USequities and relatedsecurities andAmerican DepositoryReceipts (ADRs)across marketcapitalisations andsectors• Filter on quantitativeand qualitative metricsPORTFOLIOCONSTRUCTION ANDONGOING RISKANALYSIS• Well-defined portfolioconstruction guidelines• Multi-faceted riskmanagementFOCUSEDPORTFOLIO30 – 40SecuritiesDISCIPLINEDBUY/SELL PROCESS_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well asthe views of Neuberger Berman LLC.RISK MANAGEMENT2,000+ 500 150 75INVESTMENT PROCESS30 - 409
  15. 15. For Professional Client Use OnlyResources for Idea Generation• Core proprietary research conducted bydedicated investment team• Focus on free cash flow analysis and return oninvested capital• Proprietary financial models and field researchnetworkNACKENSON GROUP RESOURCESFIRM RESEARCH RESOURCESIdeaGeneration_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’sviews may differ from those of other Portfolio Managers as well as the views of Neuberger Berman LLC.Investment ideasgenerated by portfolioteam with access tocentralised firmresources• Meetings with company management teams• Central global research department of 40+senior sector analysts and associates• Third party and specialised researchINVESTMENT PROCESS 10
  16. 16. For Professional Client Use OnlyIn-depth ResearchCOMPREHENSIVE FREE CASH FLOW ANALYSISHow do we arrive at a numerical valuefor a company’s free cash flow?Utilise proprietary valuation models• Income statement• Cash flow statement• Balance sheet• Quality of earnings• Determine appropriate valuationmethodologyAnalyse key metrics• Free cash flow• Return on invested capital (ROIC)• Earnings growth• Revenue growth• Tangible book value• Net asset valueUSE OFFREE CASH FLOWQUALITATIVE ANALYSISOF FREE CASH FLOWQUANTITATIVE ANALYSISOF FREE CASH FLOWAnalyse the quantitative and qualitative factors that influence core operating capabilities andvaluationHow do we evaluate the quality of acompany’s free cash flow?Conduct field research• Industry associations• Customers and competitors• Operating line managers• Supply chain analysis• Empirical data sourcesEvaluate management experience• Articulation of corporate strategy• Implementation and execution• Track record of resultsAssess industry structure anddynamics• Sustainable competitive advantage• Change and evolutionHow does a company allocate itsfree cash flow?213_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well asthe views of Neuberger Berman LLC.INVESTMENT PROCESS 11
  17. 17. For Professional Client Use OnlyAccumulate Cash/Reduce DebtReinvestinCore BusinessInvest inHigh ReturnExpansionProjectsBuy BackStockIssueDividendsPursue SelectiveAcquisitionsUse of Free Cash FlowHow a company uses its free cash flow is a key factor in our decision making processBUSINESS MODEL CAPITAL STRUCTURE_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well asthe views of Neuberger Berman LLC.INVESTMENT PROCESS 12
  18. 18. For Professional Client Use OnlyPortfolio Construction and Ongoing Risk ManagementConstruct multi-cap core portfolio• Diversified across three investment categories(Special Situations, Opportunistic, Classic)Select best ideas• Consider risk/reward profile of each holding as well asimplications within the portfolioHoldings and sector weightings• 30 - 40 holdings• Invests across the market capitalisation spectrum• Maximum initial position of 5%• Maximum sector weighting ±15% versus benchmark• Cash weighting of 0-5%Ongoing monitoring• Automatic review if a position declines 10% relative to thebenchmark• Tracking error target: <7%• Barra metrics used to measure and manage risk• Review if management shifts strategy unexpectedly• Review if research indicates deteriorating fundmentalsMULTI-FACETED RISK MANAGEMENTPORTFOLIO CONSTRUCTION GUIDELINES_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well asthe views of Neuberger Berman LLC.MULTI-CAPCORE PORTFOLIOResearch-basedInvestment ProcessDisciplinedPortfolioConstructionOngoingInvestigativeMonitoringDynamic PriceLimitsUS MULTI CAPOPPORTUNITIESFUNDResearch-basedInvestment ProcessDisciplinedPortfolioConstructionOngoingInvestigativeMonitoringDynamic PriceLimitsOur disciplined approach integrates proactive portfolio construction with comprehensive riskmanagementINVESTMENT PROCESS 13
  19. 19. For Professional Client Use OnlyDisciplined Buy / Sell ProcessBUY• New ideas generated by our research process• Portfolio construction• Entry point based on priceOur approach to buying and selling portfolio holdings seeks to maximise upside potential whileminimising downside riskBUY ADDSELL REDUCEREDUCE• Position becomes large due to appreciation• Approaching price target• Raise capital to introduce new ideasSELL• Price target achieved• Superior opportunities available• Research indicates deteriorating fundamentals• Limit downsideADD• Fundamentals and risk/reward improve• Price target revised• Larger position warranted_______________________This material is intended as a broad overview of the Portfolio Manager’s style, philosophy and process and is subject to change without notice. Portfolio Manager’s views may differ from those of other Portfolio Managers as well asthe views of Neuberger Berman LLC.INVESTMENT PROCESS 14
  20. 20. FUND PERFORMANCE & PORTFOLIO CHARACTERISTICS
  21. 21. For Professional Client Use OnlyFund Performance & Fund Facts_______________________Source: FactSet, Standard & Poor’s.The inclusion of any individual security in this document does not constitute a recommendation to invest.1. Representative of the USD Class I Accumulating share class.2. Benchmark = S&P 500 Index.PERFORMANCE (USD)FUND PERFORMANCE & PORTFOLIO CHARACTERISTICSAs of March 31, 2013Fund1 Benchmark21 Month 4.70% 3.75%3 Months 17.12% 10.61%YTD 17.12% 10.61%Since Inception* (TR) 29.30% 20.11%Fund Family: A sub-fund of the Neuberger Berman Investment Fund plc Portfolio Manager: Richard NackensonBenchmark: S&P 500 Index Morningstar Category: US Flex Cap EquityInception Date: June 28, 2012* Base Currency: USDValuation: Daily Trading Deadline: 3.00 pm Dublin TimeFund Structure/Domicile: UCITS / Dublin Regulator: Central Bank of IrelandFUND FACTSBoeing Co. 4.10%Berkshire Hathaway Inc. Cl B 3.83%Hanesbrands Inc. 3.60%CSX Corp. 3.58%Bed Bath & Beyond Inc. 3.55%Cenovus Energy Inc. 3.48%Omnicom Group Inc. 3.47%JPMorgan Chase & Co. 3.45%Range Resources Corp. 3.43%Procter & Gamble Co. 3.40%TOP 10 HOLDINGS15
  22. 22. For Professional Client Use OnlyFund Sector Weightings_______________________Source: FactSet, Standard & Poor’s.Sector weightings are as of the date noted and are subject to change without notice. Weightings shown are equity only and excluding cash.CURRENT SECTOR WEIGHTINGSAs of March 31, 201320.512.014.15.9 6.00.03.311.0 10.912.510.118.03.511.119.77.53.4 3.015.911.60510152025ConsumerDiscretionaryConsumer Staples Energy Financials Health Care Industrials InformationTechnologyMaterials Telecommunications Utilities% of Total Market ValueNB US Multi Cap Opportunities Fund S&P 500 IndexFUND PERFORMANCE & PORTFOLIO CHARACTERISTICS 16
  23. 23. For Professional Client Use Only2.513.59.41.46.423.654.510.230.334.214.10.00102030405060$0 - 2B $2 - 5B $5 - 10B $10 - 20B $20 - 50B > $50B% of Total Market ValueNB US Multi Cap Opportunities Fund S&P 500 IndexFund Market Cap Allocation_______________________Source: FactSet, Standard & Poor’s.Market cap weightings are as of the date noted and are subject to change without notice. Weightings shown are equity only and excluding cash.FUND ALLOCATION VS. S&P 500 INDEXAs of March 31, 2013FUND PERFORMANCE & PORTFOLIO CHARACTERISTICS 17
  24. 24. For Professional Client Use OnlyFund Top Holdings Compared to Benchmark (Quarterly)_______________________Source: FactSet, Standard & Poor’s.The inclusion of any individual security in this document does not constitute a recommendation to invest.1. Holdings are subject to change, without notice.2. Benchmark = S&P 500 Index.FUND TOP 10 HOLDINGS % BENCHMARK TOP 10 HOLDINGS %Benchmark2 Fund1 DifferenceApple Inc. 2.97% 2.48% -0.49%Exxon Mobil Corp. 2.89% 0.00% -2.89%General Electric Co. 1.72% 0.00% -1.72%Chevron Corp. 1.65% 0.00% -1.65%Johnson & Johnson 1.63% 0.00% -1.63%International Business Machines Corp. 1.60% 0.00% -1.60%Microsoft Corp. 1.54% 0.00% -1.54%Google Inc. Cl A 1.52% 0.00% -1.52%Procter & Gamble Co. 1.51% 3.40% 1.89%Pfizer Inc. 1.48% 3.32% 1.84%As of March 31, 2013FUND PERFORMANCE & PORTFOLIO CHARACTERISTICSFund1 Benchmark2 DifferenceBoeing Co. 4.10% 0.42% 3.68%Berkshire Hathaway Inc. Cl B 3.83% 1.36% 2.47%Hanesbrands Inc. 3.60% 0.00% 3.60%CSX Corp. 3.58% 0.18% 3.40%Bed Bath & Beyond Inc. 3.55% 0.10% 3.45%Cenovus Energy Inc. 3.48% 0.00% 3.48%Omnicom Group Inc. 3.47% 0.11% 3.36%JPMorgan Chase & Co. 3.45% 1.30% 2.15%Range Resources Corp. 3.43% 0.09% 3.34%Procter & Gamble Co. 3.40% 1.51% 1.89%18
  25. 25. LONG-TERM PERFORMANCE
  26. 26. For Professional Client Use OnlyPrivate Asset Management – The Nackenson GroupInvestment Performance – As of March 31, 2013___________________________Please see attached disclosures, which are a required part of this presentation. Past performance is no guarantee of future resultsAnnualized Rates of Return (%)(for periods ended March 31, 2013)SinceInception1Q13 YTD 1 Year 3 Years 5 Years 10 Years 12/31/89Total Portfolio Return (Gross of Fees) 16.66 16.66 23.27 13.35 5.64 9.04 9.67Total Portfolio Return (Net of Fees) 16.42 16.42 22.06 12.15 4.50 7.94 8.77Equity Only Return (Gross of Fees) 17.02 17.02 24.08 13.54 3.69 10.45 11.19S&P 500 Index 10.61 10.61 13.96 12.67 5.81 8.53 8.93Annual Rates of Return (%)(for periods ended December 31)2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002Total Portfolio Return (Gross of Fees) 18.42 -0.86 13.06 21.18 -34.79 16.28 15.93 9.92 11.52 15.82 -12.11Total Portfolio Return (Net of Fees) 17.19 -2.01 11.85 19.89 -35.55 14.96 14.69 8.94 10.68 14.94 -12.75Equity Only Return (Gross of Fees) 19.35 -1.64 14.05 30.00 -46.69 19.32 19.90 12.85 16.43 27.81 -20.99S&P 500 Index 16.00 2.11 15.06 26.46 -37.00 5.49 15.79 4.91 10.88 28.68 -22.102001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991Total Portfolio Return (Gross of Fees) -3.76 0.69 12.86 20.38 33.94 21.94 32.03 2.39 9.50 7.07 24.50Total Portfolio Return (Net of Fees) -4.52 -0.01 12.16 19.34 33.13 20.89 31.15 1.63 8.74 6.32 23.66Equity Only Return (Gross of Fees) -4.73 -2.03 17.54 22.13 38.49 26.79 46.16 3.92 11.60 7.05 45.38S&P 500 Index -11.88 -9.11 21.04 28.58 33.36 22.96 37.58 1.32 10.08 7.62 30.471990Total Portfolio Return (Gross of Fees) -1.98Total Portfolio Return (Net of Fees) -2.18Equity Only Return (Gross of Fees) -7.92S&P 500 Index -3.11LONG-TERM PERFORMANCE 19
  27. 27. For Professional Client Use OnlyRepresentative Portfolio Investment PerformanceMulti-Cap Opportunities Representative Portfolio (Gross of fees) – As of March 31, 20131___________________________Source: Neuberger Berman Management LLC.®Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worthmore or less than their original cost.1. Performance data quoted displays a representative portfolio, inception date October 31, 2003. This performance is included to show the track record of the strategy and is included for illustrative purposes only, and will notnecessarily represent the intended portfolio. The information presented is supplemental to a GIPS-compliant presentation. A complete list and description of all firm composites is available upon request.2. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market value weighted index (stock price times number of shares outstanding), with each stock’s weight inthe Index proportionate to its market value. The "500" is one of the most widely used benchmarks of U.S. equity performance. As of September 16, 2005, S&P switched to a float-adjusted format, which weights only thoseshares that are available to investors, not all of a company’s outstanding shares. The value of the index now reflects the value available in the public markets. Please note that indices do not take into account any fees andexpenses of investing in the individual securities that they track, and that individuals cannot invest directly in any index. Data about the performance of these indices are prepared or obtained by Neuberger BermanManagement LLC. and include reinvestment of all dividends and capital gain distributions. The Fund may invest in many securities not included in the above-described indices.LONG-TERM PERFORMANCECalendar Year Returns 2013 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 20031Multi-Cap Opportunities RepresentativePortfolio (Gross of fees)1 17.26 22.38 -1.60 15.93 27.10 -42.49 24.21 20.96 17.25 20.61 7.67S&P 500 Index210.61 16.00 2.11 15.06 26.46 -37.00 5.49 15.79 4.91 10.88 6.1717.2625.0915.065.4911.2910.6113.9612.685.81 6.52051015202530YTD 2013 1-year 3-year 5-year Since Inception (10/31/2003)Annualised Return %Multi-Cap Opportunities Representative Portfolio S&P 500 Index20
  28. 28. HISTORICAL CATEGORY & CAPITALISATION WEIGHTINGS
  29. 29. For Professional Client Use Only0%10%20%30%40%50%60%70%80%90%100%Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12Historical Investment Category Weightings_______________________Source: FactSet and Neuberger Berman.Data quoted represents a composite portfolio of separately managed accounts and funds (US mutual fund inception date December 21, 2009 / US Multi Cap Opportunities Fund (UCITS) inception date June 28, 2012), and isincluded for illustrative purposes only and will not necessarily accurately represent the intended portfolio.Investment category allocations change actively as a function of the market environmentHISTORICAL CATEGORY & CAPITALISATION WEIGHTINGSOpportunisticSpecial SituationsMax 42% (3Q 2007)Min 14% (4Q 2009)OpportunisticMax 50% (4Q 2010)Min 16% (1Q 2008)ClassicMax 58% (2Q 2004)Min 27% (2Q 2006)Special SituationsClassicThe chart shows what % of each category has been in the Multi-Cap Opportunities Strategy, on a quarterly basis,since it has been managed by Richard Nackenson.21
  30. 30. For Professional Client Use Only0%10%20%30%40%50%60%70%80%90%100%Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12Historical Market Capitalisation WeightingsMarket capitalisation weightings change actively as a function of the market environment_______________________Source: FactSet and Neuberger Berman.Data quoted represents a composite portfolio of separately managed accounts and funds (US mutual fund inception date December 21, 2009 / US Multi Cap Opportunities Fund (UCITS) inception date June 28, 2012), and isincluded for illustrative purposes only and will not necessarily accurately represent the intended portfolio.HISTORICAL CATEGORY & CAPITALISATION WEIGHTINGS$0-2 BillionMax 19% (4Q 2008)Min 3% (3Q 2010)$2-10 BillionMax 51% (2Q 2006)Min 14% (4Q 2008)>$50 BillionMax 38% (4Q 2009)Min 14% (1Q 2012)$10-$50 BillionMax 46% (4Q 2012)Min 16% (4Q 2007)$0-$2 Billion$2-$10 Billion$10 - $50 Billion> $50 Billion22
  31. 31. BIOGRAPHIES
  32. 32. For Professional Client Use OnlyRichard S. Nackenson is a Managing Director of Neuberger Berman and Senior Portfolio Manager for the Neuberger Berman USMulti Cap Opportunities Fund. He joined the firm in 1999. Previously, Richard was a Securities Analyst with Appaloosa Managementfocusing on global investing across capital structures and industry sectors. He was a Senior Research Analyst with PzenaInvestment Management and also an Associate with James D. Wolfensohn Incorporated. He began his career with McKinsey &Company. Richard earned both a BS, summa cum laude, and an MBA from the Wharton School at the University of Pennsylvania.He has 22 years of industry experience.Steven M. Majocha, CFA is a Senior Vice President of Neuberger Berman and Senior Securities Analyst for the Neuberger BermanUS Multi Cap Opportunities Fund. He joined the firm in 2007. Previously, he was an equity securities associate for CitigroupInvestment Research. Steven holds an MBA from the University of Virginia and a BS from Drexel University, where he graduatedmagna cum laude. He has 12 years of industry experience.Jason A. Menzin is a Senior Vice President of Neuberger Berman and Senior Securities Analyst for the Neuberger Berman US MultiCap Opportunities Fund. He joined the firm in 2002. Previously, he worked for Lipper & Company, where he was a high yield bondanalyst. Jason holds a BA, summa cum laude, from Columbia University. He has 13 years of industry experience.Thomas O. Deutsch is a Vice President of Neuberger Berman and Securities Analyst for the Neuberger Berman US Multi CapOpportunities Fund. He joined the firm in 2005. Tom holds a BA in Economics and Biology, magna cum laude, from Colby College.He has 8 years of industry experience.BiographiesBIOGRAPHIESPortfolio Management Team_______________________Staffing is subject to change without notice. As of March 31, 2013.23
  33. 33. STOCK EXAMPLES
  34. 34. For Professional Client Use Only1.11.30.91.31.1 1.10.90.5$0.0$0.5$1.0$1.52009 2010 2011 2012BillionsAvailable Free Cash Flow Shareholder Return (Buyback & Dividend)CONSISTENT IMPROVEMENT IN PROFITABILITYSTEADY FREE CASH FLOW RETURN TOSHAREHOLDERSInvestment Example: Activision Blizzard (ATVI)Business• Video game publisher with the best franchises in the industry:Call of Duty, World of Warcraft, SkylandersInvestment Rationale• Consistent and recurring cash flow from Call of Duty and itssubscription based World of Warcraft franchise• Improving margins as business shifts to digital sales• Transition to next-generation game console should supportindustry growth• Management is exploring ways to reduce Vivendi’s stake(Vivendi currently owns 60% of ATVI)Capital Allocation• Strong commitment to shareholder return: ATVI has historicallyreturned approximately 100% of available FCF in the form ofshare repurchases and dividends• $4.00 of net cash per share• Potential for highly accretive share repurchaseValuation• Price-to-Earnings (ex cash): 10.0x FY2014E• EV/EBITDA: 7.0x FY2014E• FCF Yield (ex cash): 9.6% FY2014ESpecial Situation investment (Market Cap = $16.2bn)_______________________Source: FactSet; Company Reports. All information as of March 31, 2013. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.25.8%28.5%30.3%34.0%20%25%30%35%2009 2010 2011 2012Operating Margin (Non-GAAP)Conserving cash forpotential one-timetransactionSTOCK EXAMPLES 24
  35. 35. For Professional Client Use Only$1,503$982$982 $4,695$1,228$0$1,000$2,000$3,000$4,000$5,000Share Buyback Special Dividend$2.00/shareSpecial Dividend$2.50/share*Special Dividend$2.00/share*CumulativeReturnMillionsPOSITIVE ADMISSIONS TRENDS DRIVING STEADYREVENUE GROWTHCAPITAL RETURN TO SHAREHOLDERS EXCEEDS 30% OFMARKET CAP IN 15 MONTHSInvestment Example: HCA Holdings (HCA)Business• HCA is the largest for-profit hospital system in the United States,operating over 160 hospitals and 100 surgery centersInvestment Rationale• Admissions trends among best in industry• Beneficiary of expanded coverage under health care reform:Potential for 30+ Million uninsured to be covered starting in 2014• Consistent operating income and free cash flow profile• Proven management team with a strong commitment toshareholder returnCapital Allocation• Repurchased 16% of common stock from BAC @ $18.61; addedapproximately $0.50 per share to 2012 EPS• Issued three special dividends in 2012, totaling $6.50 per share(22.3% effective yield)• Company has a full pipeline of acquisition candidatesValuation• Price-to-Earnings: 10.8x FY2014E• EV/EBITDA: 6.9x FY2014E• FCF Yield: 10.8% FY2014ESpecial Situation investment (Market Cap = $18.0bn)_______________________Source: FactSet; Company Reports. All information as of March 31, 2013. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.* Estimated dividend payout in the fourth quarter of 2012, based on 1Q 2012 dividend payout amount.0%2%4%6%8%10%3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12Adjusted Admissions Revenue Growth3Q 2011 1Q 2012 4Q 2012 4Q 2012STOCK EXAMPLES 25
  36. 36. For Professional Client Use OnlyInvestment Example: Great Wolf Resorts (WOLF)Business• Indoor waterpark resort owner and operator delivering a fully-integrated, branded vacation experienceInvestment Rationale• Over-levered / under-followed stock created a specialsituation opportunity• Net debt/EBITDA >6.5x, FCF >25%• Property visits and due diligence reinforced our view thatEBITDA could grow, and debt level was manageable• Lack of new supply in lodging industry supported our thesis ofRevPar growth• Majority of debt was tied directly to properties with little recourseback to the parentCapital Allocation• Cash flow used for debt reduction; covenants significantly limitedmanagement’s ability to spend FCFValuation• EV/EBITDA: 7.0x vs. 9.0x for theme park operators and 10.0–12.0x for lodging companiesSpecial Situation investment (Market Cap = $0.2bn)_______________________Source: FactSet; Company Reports. All information as of March 31, 2013. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.LIFECYCLE OF INVESTMENT$2.00$3.00$4.00$5.00$6.00$7.00$8.00$9.00Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12PriceWOLFDelistedInitiatedWOLFPositionSTOCK EXAMPLES 26
  37. 37. For Professional Client Use OnlyInvestment Example: Great Wolf Resorts (WOLF) (Continued)Deal timeline_______________________Source: FactSet; Company Reports. All information as of March 31, 2013. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.$3.50$4.00$4.50$5.00$5.50$6.00$6.50$7.00$7.50$8.00$8.50March1,2012March6,2012March11,2012March16,2012March21,2012March26,2012March31,2012April5,2012April10,2012April15,2012April20,2012April25,2012April30,2012PriceMarch 13, 2012WOLF / Apolloissue joint pressreleaseannouncing$5.00/shtransactionMarch 14, 2012R.Nackenson quoted in WSJarticle, “Great Wolf InvestorsHowl for Higher Bid.”March 22, 2012R.Nackenson quotedin Bloomberg article,“Leon Black’s BidGets No Respect asGreat Wolf Surges:Real M&A.”April 04, 2012KSL submits$6.25/sh rivalbidApril 06, 2012WOLF / Apolloissue joint pressrelease announcing$6.75/sh revisedofferApril 08, 2012KSL submits$7.00/sh bidApril 18, 2012WOLF / Apollo issuejoint press releaseannouncingagreement on$7.00/sh offerApril 19, 2012KSL submits$7.25/sh bidApril 20, 2012WOLF / Apollo issuejoint press releaseannouncingagreement on$7.85/sh offer KSLnotifies company theywill not bid furtherMay 04, 2012Deal Complete;stock delistedSTOCK EXAMPLES 27
  38. 38. For Professional Client Use OnlyInvestment Example: Hanesbrands Inc. (HBI)Business• Global consumer goods company with a portfolio of leading apparelbrands• Limited fashion risk mitigates key retail risk factor• Large global apparel essentials company with a dual hemispheremanufacturing capability; provides cost advantageInvestment Rationale• Under-recognised earnings and free cash flow potential due to asharp rise in cotton cost− 2012 FCF above $500 Million vs $78 Million in 2011• Normalisation of costs, coupled with improved pricing enablesimproved operating profitability longer-term• HBI expects to repay $800 Million of debt in 2012 and 2013, furtherreducing net leverage to 1.5x (was 4.3x in 2010)Capital Allocation• Commitment to debt pay-down− Continued transfer of enterprise value from debt to equity− Interest cost reduction accretive to earnings and cash flow• Initiated dividend of $0.80 per share; 1.8% yieldValuation• Price-to-Earnings: 11.6x FY2014E• FCF yield: 8.6% FY2014EOpportunistic investment (Market Cap = $4.5bn)_______________________Source: FactSet; Company Reports. All information as of March 31, 2013. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.STEADY IMPROVEMENT IN CAPITAL STRUCTUREDECLINE IN COTTON PRICE SUPPORTIVE TO EARNINGSAND FREE CASH FLOW$0.50$1.00$1.50$2.00$2.50Mar-10Jun-10Sep-10Dec-10Mar-11Jun-11Sep-11Dec-11Mar-12Jun-12Sep-12Dec-12Mar-13Price ($/lbs)4.3x3.7x2.6x1.5x0.0x1.0x2.0x3.0x4.0x5.0x2010 2011 2012 2013ELeverage (Net Debt / EBITDA)STOCK EXAMPLES 28
  39. 39. For Professional Client Use OnlyInvestment Example: CSX Corporation (CSX)Business• Class I U.S. Railroad company; operates in a duopolistic marketwith NSC, providing pricing power• Heavy regulation / capital-intensity, creates high barriers to entryInvestment Rationale• Opportunity as share price was negatively affected by areduction in coal volumes due to building inventories at utilitycustomers• Coal decline driven by factors we feel will normalise: recordwarm winter weather, record-low gas prices and regulatoryuncertainty• Steady growth continues outside of utility coal• Strong secular support as rails have proven to be more costeffective and environmentally friendly than trucking• Management targets an operating margin of 35% vs. 30% todayCapital Allocation• Committed to returning a majority of its FCF to shareholders− Management completed its $1 billion share repurchaseprogram in 2012− 17% increase in annual dividend announced in May, 2012Valuation• Price-to-Earnings: 11.9x FY2014E• EV/EBITDA: 6.8x FY2014EOpportunistic investment (Market Cap = $25.1bn)_______________________Source: FactSet; Company Reports. All information as of March 31, 2013. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.CSX UTILITY COAL VOLUMES (TONS)STEADY IMPROVEMENT IN OPERATING RATIO; EXPECTEDTO EXPAND TO 65% BY 201528.119.9 19.330.2 31.120.216.925.428.526.8051015202530353Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12Millions75.6%71.1%65.0%77.7%87.8%40%50%60%70%80%90%100%2004 2006 2008 2010 2015ESTOCK EXAMPLES 29
  40. 40. For Professional Client Use OnlyInvestment Example: Boeing (BA)Business• Boeing offers products and services in both the aerospace (60%of sales) and the defense (40% of sales) industries− Duopoly aerospace industry provides stable pricing dynamics− Defense business focused on higher-value verticals, andgenerates ~1/3 of revenues internationallyInvestment Rationale• Long-cycle business provides visible earnings stream: totalcontracted backlog valued at $372 billion• Significant earnings and cash flow growth as aircraft productionrates increase, and R&D expenses decline• Non-cash pension accounting understates operating earningsand cash flowCapital Allocation• Strong balance sheet• Increased divided 10%; 2.3% dividend yield• Announced 2013 share repurchase plan of $1.5 - $2.0 billionValuation• Price-to-Earnings: 12.2x FY2014E• EV/EBITDA: 6.7x FY2014E• FCF Yield: 10.0% FY2014EClassic investment (Market Cap = $64.9bn)_______________________Source: FactSet; Company Reports. All information as of March 31, 2013. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.CONTRACTED BACKLOG$250$275$300$325$350$375$4001Q092Q093Q094Q091Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q12BillionsSTEP-UP IN FREE CASH FLOW AS PRODUCTION RATESINCREASE AND DEVELOPMENT COSTS DECLINE$2.75$8.64$2.00$4.00$6.00$8.00$10.002011 2014E47% CAGRSTOCK EXAMPLES 30
  41. 41. For Professional Client Use Only-20%-10%0%10%20%30%1Q092Q093Q094Q091Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q12BBBY Retail Sales, Home FurnishingsInvestment Example: Bed Bath & Beyond (BBBY)Business• Best in class merchandiser with strong store concepts: Bed Bath& Beyond, buybuy Baby, Christmas Tree Shops, Harmon Stores,and World MarketInvestment Rationale• Industry leading same-store sales trends and profitability• Unit growth opportunities available across all concepts• Underappreciated accretion to earnings from recent acquisitions• Beneficiary of a recovery in the US housing market• Consistent and growing free cash flow generationCapital Allocation• Strong Balance Sheet: approximately $4.00 net cash per share• Repurchased over $1 Billion in 2012; reduced share count by 5%• Select acquisitions (World Market) should contribute to earningsgrowth next yearValuation• Price-to-Earnings (ex cash): 10.9x FY2014E• EV/EBITDA: 6.7x FY2014E• FCF Yield (ex cash): 7.9% FY2014EClassic investment (Market Cap = $14.6bn)_______________________Source: FactSet; Company Reports; Bernstein; US Census Bureau. All information as of March 31, 2013. For illustrative purposes only. The inclusion of any individual security in this document does not constitute arecommendation to invest.SALES GROWTH HAS EXCEEDED INDUSTRY TRENDSRESULTING IN STEADY MARKET SHARE GAINS10.3%10.6%11.6%12.0%12.4% 12.4%10%11%12%13%2007 2008 2009 2010 2011 2012BBBY Market Share of US Home FurnishingsSTOCK EXAMPLES 31
  42. 42. For Professional Client Use Only13.0x11.4x1.5%9.2x6.0x2.4%02468101214P/E (Fwd) EV/EBITDA (TTM) Dividend Yield (% )3Q 2012 1Q 2013$350$400$450$500$550$600$650$700$7503/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 1/13 2/13 3/13Price/Share$48$50$52$54$56$58$60$62$64FY 2014 EPSPrice FY 2014 EPSInvestment Example: Apple Inc. (AAPL)Business• Leading consumer products company with strong track record ofinnovation• Highest customer retention rates across key product lines• Secular growth industry with large addressable marketInvestment Rationale• Underperformance over last 6 months, near 52 week low− AAPL returned (36.3%) since 9/19/12 vs. +8.7% for S&P 500• Sentiment on the stock has turned decidedly negative− 2013 EPS estimates 1 year ago: 45 increased, 0 reduced− 2013 EPS estimates today: 2 increased, 48 reduced• Earnings expectations have been revised 20% lower• At current valuation, we believe the stock price is not reflecting futureproduct innovation and capital structure potentialCapital Allocation• Dividend increased by 15% to $12.20 per share annually• $60 Billion share buyback authorisation• $153 per share of net cash on the balance sheet• Management plans to return $100 Billion to shareholders by 2015Valuation• Price-to-Earnings: 9.2x FY2013E• FCF yield: 10.3% FY2013EClassic investment (Market Cap = $415.6bn)_______________________Source: FactSet; Company Reports. All information as of March 31, 2013. For illustrative purposes only. The inclusion of any individual security in this document does not constitute a recommendation to invest.INITIATED POSTION AFTER REDUCTION IN EPS ESTIMATESVALUATION NOW VERSUS PEAKInitiatedstarterpositionSTOCK EXAMPLES 32
  43. 43. DISCLAIMER
  44. 44. For Professional Client Use OnlyInvestment Performance Disclosure StatementThe Nackenson Group – Inception 12/31/89Benchmark Description• The benchmark is the S&P 500 Index, which is designed to measure the domestic equity marketperformance. The benchmark is calculated on a total return basis and is market cap weighted andunmanaged. Additional disclosures for complete benchmark descriptions are available upon request.Reporting Currency• Valuations are computed and performance is reported in U.S. dollarsFees• Effective January 1, 2006 accounts in the composite were moved to an all – inclusive fee schedule whichincludes investment advisory fees, trading expenses, custody fees, and other administrative fees.Composite Total Return (Gross of Fees) is presented before fees and after the deduction of tradingexpenses. Composite Total Return (Net of Fees) is presented after the deduction of fees and tradingexpenses. Composite Equity Only Return (Gross of Fees) excludes the performance of any cash or fixedincome instruments that may also be held in the portfolio. Composite Equity Only Return (Gross of Fees)does not reflect the deduction of fees and beginning January 1, 2006 does not reflect the deduction oftrading expenses. Composite Equity Only Return is presented as supplemental information and is not arequired part of this presentation.Fee Schedule• The annual investment advisory fee, payable quarterly, for each portfolio with a market value of less than$10mn is: 1.5% of the first $2.5mn of market value; 1.4% of the next $2.5mn of market value; 1.3% of thenext $2.5mn of market value; 1.2% of the next $2.49mn. For each portfolio with a market value, equal to, orgreater than $10mn, the annual fee payable quarterly is: 1.25% of the first $10mn of market value and 0.9%of the remaining value of market value.Internal Dispersion• Internal dispersion is calculated using the asset weighted standard deviation of annual gross returns ofthose portfolios that were in the composite for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the composite and the benchmarkreturns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.Compliance Statement• Neuberger Berman Group LLC (“NB”) claims compliance with the Global Investment Performance Standards(GIPS®) and has prepared and presented this report in compliance with the GIPS standards. NB has beenindependently verified for the periods January 1, 1997 through December 31, 2011. The verification report isavailable upon request. Verification assesses whether (1) the firm has complied with all the compositeconstruction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies andprocedures are designed to calculate and present performance in compliance with the GIPS standards.Verification does not ensure the accuracy of any specific composite presentation.Definition of the Firm• The firm is defined as Neuberger Berman Group LLC (“NB”, “Neuberger Berman” or the “Company”). NB iscomprised of Neuberger Berman LLC, Neuberger Berman Management LLC, Neuberger Berman FixedIncome LLC, NB Alternative Fund Management LLC, Neuberger Berman Europe Ltd., Neuberger Berman AsiaLtd, Neuberger Berman National Trust Company N.A., Neuberger Berman Trust Company of Delaware N.A.,NB Alternatives Advisers LLC and NB Alternative Investment Management LLC. The firm definition above iseffective December 31, 2011. Prior to that day, there were two firm definitions, Neuberger Berman LLC(“NBLLC”) and Neuberger Berman Fixed Income (“NBFI”). The firm was redefined to adopt the broadest, mostmeaningful definition of the firm and to align the firm definition to how it now holds itself out to the public.Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are availableupon request.Composite Description• The Nackenson Group (“Composite”), formerly known as The Ganek Nackenson Group, performance scheduleis provided as supplemental information to the firm composite. From January 1990 to present, thisperformance schedule includes tax-exempt, fee-paying, discretionary portfolios with a market value equal to orgreater than $5mn, managed by Howard Ganek. Starting in January 2000, Richard Nackenson joined the teamas portfolio manager, and these portfolios have been co-managed by him and Howard Ganek. Starting inJanuary 2001 the performance schedule also includes all fee-paying, discretionary portfolios with a marketvalue equal to or greater than $250,000 that are managed exclusively by Richard Nackenson. A complete listand description of Neuberger Bermans composites and performance results is available upon request.Benchmark CompositeCompositeTotal Return(Gross of Fees)CompositeTotal Return(Net of Fees)Composite EquityOnly Return(Gross of Fees)S&P 500IndexNo. ofAccountsMarketValueTotal FirmAssetsInternalDispersionComposite 3Year StandardDeviationBenchmark 3Year StandardDeviation% % % % (millions) (billions) % %YTD Mar-13 16.66 16.42 17.02 10.61 238 1,705.37 N/A N/A 14.59 14.802012 18.42 17.19 19.35 16.00 218 1,470.67 205.0 3.1 14.34 15.092011 -0.86 -2.01 -1.64 2.11 337 533.80 193.1 1.0 15.03 18.712010 13.06 11.85 14.05 15.06 598 625.97 102.3 2.12009 21.18 19.89 30.00 26.46 619 641.94 91.4 4.92008 -34.79 -35.55 -46.69 -37.00 799 813.20 79.2 11.62007 16.28 14.96 19.32 5.49 687 1,096.30 148.5 3.62006 15.93 14.69 19.90 15.79 369 542.80 127.0 2.62005 9.92 8.94 12.85 4.91 190 307.97 105.9 2.12004 11.52 10.68 16.43 10.88 131 235.64 82.9 2.62003 15.82 14.94 27.81 28.68 84 183.93 70.5 5.2CompositeDISCLAIMER 33
  45. 45. For Professional Client Use OnlyAdditional DisclosuresDefinitionsS&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value weighted index (stock price times number of sharesoutstanding), with each stocks weight in the Index proportionate to its market value. The "500" is one of the most widely used benchmarks of U.S. equity performance.Risk ConsiderationsPast performance is not indicative of future results. For details of the investment risks, see the current prospectus.Please note that any dividends which the Fund may receive are subject to a 30% withholding tax in the US. The benchmark does not take into account the effects of tax and the deduction istherefore not reflected in the benchmark return illustrated herein.The investment objective and performance benchmark is a target only and not a guarantee of the Fund performance. The index is unmanaged and cannot be invested in directly. Indexreturns assume reinvestment of dividends and capital gains and unlike fund returns do not reflect fees or expenses. Adverse movements in currency exchange rates can result in adecrease in return and a loss of capital. Investments of each portfolio may be fully hedged into its base currency potentially reducing currency risks but may expose the portfolio to otherrisks such as a default of a counterparty.Small cap companies carry greater risk and are less liquid that larger companies. High Yield Bonds carry a higher level of default risk and can be less liquid than government bonds andinvestment grade corporate bonds.Monthly and weekly Distributing Classes will distribute out of income and may also pay out of capital which will be eroded; investors in these classes should be aware that the payment outof capital may have different tax implications to distributions of income and should seek tax advice. For C shares a 1% contingent deferred sales change will be payable in respect of allshares redeemed less than 365 days of their issue.DISCLAIMER 34
  46. 46. For Professional Client Use OnlyDisclaimerThis document, and the information contained in it, has been made available by Neuberger Berman Singapore Pte. Limited (“NB Singapore”), which currently operates under anexemption from licensing requirements under the Financial Advisers Act (Chapter 110) of Singapore for marketing of collective investment schemes to institutional investors, and as such,any offer made to persons in Singapore will be made to institutional investors (as defined in Section 4A of the Securities and Futures Act (Chapter 289) of Singapore and the regulationsthereunder) only.This document is being provided by NB Singapore on a confidential basis to an “institutional investor” and/or other such qualified person, generically referred to as a “Qualified Person”,on a "one-on-one" basis for informational and discussion purposes only. This document is intended only for the Qualified Person to which it has been provided for internal use. It is beingprovided on a confidential basis and may not be reproduced or redistributed, in whole or in part, nor may its contents be disclosed to any other person (other than such Qualified Person’sagents or advisers) under any circumstances without the prior written consent of NB Singapore.No recommendation or advice is being given as to whether any investment or strategy referred to in this document is suitable for the Qualified Person. It should not be assumed that anyinvestments in securities, companies, sectors or markets identified and described were or will be profitable. Investing entails risks, including possible loss of principal. Past Performance isno guarantee of future results.This document, and the information contained herein, is not, and does not constitute, a public or retail offer to buy or sell, or a public or retail solicitation of an offer to buy or sell, any fund,units or shares of any fund, security or other instrument (“Securities”), or to participate in any investment strategy. Neither this document nor anything contained herein shall form thebasis of any contract or commitment whatsoever. This document is not an offering document or prospectus as defined in the Securities and Futures Act (Chapter 289) of Singapore(“SFA”). Accordingly, statutory liability under the SFA in relation to the contents of prospectuses would not apply. Any offer of securities can only be made by a current offeringmemorandum in respect of Neuberger Berman Investment Funds Plc (the “Fund”), which is available solely upon request, on a private basis and only to selected investors. The Fund isauthorized by the Central Bank of Ireland (the “Central Bank”) as an Undertaking for Collective Investment in Transferable Securities under the European Communities (“UCITS”)Regulations 2003 (S.I. 211 of 2003) of Ireland, as amended.In the case of any inconsistency between the descriptions or terms in this document and the offering memorandum of the relevant Fund, the offering memorandum shall prevail. Thisdocument is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction wheresuch distribution, publication, availability or use would be contrary to law or regulation or which would subject NB Singapore or its affiliates (collectively, "Neuberger Berman") or the Fundto any registration or licensing requirement within such jurisdiction. This document is not intended for public use or distribution. While all the information prepared in this document isbelieved to be accurate, Neuberger Berman makes no representation or warranty, whether express or implied, and accepts no responsibility for the completeness, reliability or accuracyof the information. Past Performance is not indicative of future performance.DISCLAIMER 35
  47. 47. For Professional Client Use OnlyDisclaimerThe views expressed are opinions of Neuberger Berman and are subject to change based on market and other conditions. These views are not intended to be a forecast of future events,a guarantee of future results or investment advice. Nothing in this document constitutes accounting, legal, regulatory, tax or other advice.The Qualified Person to which this document is provided should not rely on the information contained in this document in making any future investment decision. NB Singapore, itsofficers, employees and affiliates, do not represent that such information is accurate or complete, and it should not be relied upon as such. The information and opinions expressed in thisdocument are subject to change without notice. Certain information contained in this document (including any forward-looking statements and economic and market information) has beenobtained from published sources and/or prepared by third parties and in certain cases has not been updated through the date of this document. While such sources are believed to bereliable, NB Singapore, its officers, employees and affiliates do not assume any responsibility for the accuracy or completeness of such information. Any views or opinions expressed maynot reflect those of NB Singapore, or its officers, employees and affiliates as a whole. In addition, nothing in this document constitutes legal, accounting or tax advice.None of NB Singapore, its officers, employees or affiliates, make any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonablenessor completeness of any of the information contained in this document (including, but not limited to, information obtained from unrelated third parties), and expressly disclaim any and allresponsibility or liability as to the information contained in, or omissions from, this document, including, without limitation, any implied representation or warranty with respect to suchinformation.© 2013 Neuberger Berman Singapore Pte. Limited (Company No. 200821844K). All rights reserved.DISCLAIMERContinued36
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×