NEW
YORK, Dec. 20, 2024 /PRNewswire/ -- Neuberger
Berman, a private, independent, employee-owned investment manager,
is pleased to announce the launch of two new actively managed ETFs:
Neuberger Berman Total Return Bond ETF (NYSE: NBTR) and
Neuberger Berman Growth ETF (NYSE: NBGX).
The new Neuberger Berman Total Return Bond ETF is a
Core-plus fixed income portfolio seeking to outperform its
benchmark over market cycles, driven by multiple potential alpha
sources:
- Dynamic & Diverse Sector Allocations
Utilize a
broad opportunity set of fixed income sectors—not limited to
benchmark sectors.
- Efficient Use of 'Plus' Sectors
Avoid static
overweights to below-investment grade and emerging
markets—dynamically adjust allocations based on portfolio managers'
relative value views.
- High Conviction Security Selection
Aims to be
additive across credit market environments—best ideas approach
built upon sector specialty research teams.
- Active Duration Management
Active management of
interest rate and yield curve exposures within a moderate
band—normally ±2 years of the benchmark.
- Experienced Team-Based Approach
Portfolio management
team has an average of over 25 years of experience and collaborate
with sector-specialty investment teams to incorporate insights from
across our $200 billion fixed income
platform.
The ETF distributes any net investment income monthly and has a
net expense ratio of 37 bps. (1)
The Neuberger Berman Growth ETF utilizes a fundamentally
driven large cap equity strategy with a dynamic approach to growth
investing through a quality lens:
- Experienced Leadership and Proven Track Record
The
portfolio management team, led by Charles
Kantor, has an average of over 25 years of investing
experience and brings expertise in successfully managing client
assets.
- Strategic Investment Philosophy
The team employs a
dynamic approach to growth investing through a quality lens,
focusing on high-quality, high-moat businesses with strong cash
flow and profitable earnings. They utilize an Economic Value Added
(EVA) framework to identify companies the team believes are
generating sustainable, value-creating growth.
- Innovative and Disruptive Investments
Committed
to finding companies that can disrupt the status quo and transform
industries, the team seeks out businesses demonstrating meaningful
innovation and strong execution, aiming to outperform over
time.
The ETF has a net expense ratio of 44 bps. (2)
Neuberger Berman continually assesses where the firm's
investment expertise intersects with client demand and the
preference for an ETF vehicle which can reach a potentially wider
range of investors. A well-resourced platform supports NB's Active
ETF offering. Supported by a rigorous, research-based approach to
active management. Neuberger Berman's team of investment
professionals bring together deep market expertise, innovative data
science capabilities, and strong corporate engagement tools to
manage these investment solutions.
Neuberger Berman's actively managed ETFs include equities, fixed
income, liquid alternatives and real assets.
About Neuberger Berman
Neuberger Berman is an employee-owned, private, independent
investment manager founded in 1939 with over 2,800 employees in 26
countries. The firm manages $509
billion of equities, fixed income, private equity, real
estate and hedge fund portfolios for global institutions, advisors
and individuals. Neuberger Berman's investment philosophy is
founded on active management, fundamental research and engaged
ownership. The PRI identified the firm as part of the Leader's
Group, a designation awarded to fewer than 1% of investment firms
for excellence in environmental, social and governance practices.
Neuberger Berman has been named by Pensions & Investments as
the #1 or #2 Best Place to Work in Money Management for each of the
last ten years (firms with more than 1,000 employees). Visit
www.nb.com for more information. Data as of September 30, 2024.
An investor should consider the ETFs investment objectives,
risks and fees and expenses carefully before investing. This and
other important information can be found in the Fund's prospectus,
and if available summary prospectus, which you can obtain by
calling 877.628.2583. Please read the prospectus, and if available
the summary prospectus, carefully before making an
investment.
All ETF products are subject to risk, including possible loss of
principal. Stock prices fluctuate, sometimes rapidly and
dramatically, due to factors affecting individual companies,
particular industries or sectors, or general market conditions,
including adverse issuer, political, regulatory, market, economic
or other developments that may cause broad changes in market value,
public perceptions concerning these developments, and adverse
investor sentiment. An individual security may be more volatile,
and may perform differently, than the market as a whole.
Unlike mutual funds, ETF shares are purchased and sold in
secondary market transactions at negotiated market prices rather
than at net asset value ("NAV") and as such ETFs may trade at a
premium or discount to their NAV. As a result, shareholders of the
Fund may pay more than NAV when purchasing shares and receive less
than NAV when selling Fund shares. ETF shares may only be redeemed
at NAV by authorized participants in large creation units. There
can be no guarantee that an active trading market for shares will
develop or be maintained or that the Fund's shares will continue to
be listed. The trading of shares may incur brokerage commissions.
The Fund has a limited number of Authorized Participants. To the
extent they exit the business or are otherwise unable to proceed in
creation and redemption transactions with the Fund and no other
Authorized Participant is able to step forward to create or redeem,
shares of the Fund may be more likely to trade at a premium or
discount to NAV and possibly face trading halts or delisting.
Unexpected episodes of illiquidity, including due to market
factors, instrument or issuer-specific factors and/or unanticipated
outflows, could have a significant negative impact on the Fund's
NAV, liquidity, and brokerage costs. To the extent the Fund's
investments trade in markets that are closed when the Fund is open,
premiums or discounts to NAV may develop in share prices.
The Fund is new with no operating history to evaluate. New funds
may not attract sufficient assets to achieve investment, trading or
other efficiencies and, if the Fund does not grow in size, it will
be at greater risk than larger funds of wider bid-ask spreads for
its shares, trading at a greater premium or discount to NAV and/or
a stop to trading.
Foreign securities involve risks in addition to those associated
with comparable U.S. securities, including exposure to less
developed or less efficient trading markets; social, political or
economic instability; fluctuations in foreign currencies;
nationalization or expropriation of assets; settlement, custodial
or other operational risks; and less stringent auditing and legal
standards. These risks may be more pronounced for emerging market
securities, which involve additional risks and may be more volatile
and less liquid than foreign securities tied to more developed
economies.
(1) Gross expense ratio is 1.03%. Net
expense ratio represents the total annual operating expenses that
shareholders pay (after the effect of fee waivers and/or expense
reimbursement). The Fund's investment manager, has contractually
undertaken to waive and/or reimburse certain fees and expenses of
the Fund so that the total annual operating expenses (excluding
interest, brokerage commissions, acquired fund fees and expenses,
taxes including any expenses related to tax claims, dividend and
interest expenses relating to short sales, and extraordinary
expenses, if any) of the Fund are limited to 0.37% of average net
assets through 10/31/2028. Absent such arrangements, which cannot
be changed without Board approval, the returns may have been
lower.
(2) Gross expense ratio is 1.53%. Net
expense ratio represents the total annual operating expenses that
shareholders pay (after the effect of fee waivers). The Fund's
investment manager has contractually undertaken to waive and/or
reimburse certain fees and expenses of the Fund so that the total
annual operating expenses (excluding interest, brokerage
commissions, acquired fund fees and expenses, taxes including any
expenses relating to tax reclaims, dividend and interest expenses
relating to short sales, and extraordinary expenses, if any) of the
Fund are limited to 0.43% of average net assets until 8/31/2026 (after taking into account the Fee
Waiver discussed below) and 0.56% of average net assets from
9/1/2026 to 8/31/2028 and may not be
terminated during its term without the consent of the Board of
Trustees. The Fund has agreed that it will repay the Manager for
fees and expenses waived or reimbursed for the Fund provided that
repayment does not cause annual Operating Expenses to exceed the
expense limitation in place at the time the fees were waived and/or
the expenses were reimbursed, or the expense limitation in place at
the time the Fund repays the Manager, whichever is lower. Any such
repayment must be made within three years after the year in which
the Manager incurred the expense. The Manager has contractually
undertaken to waive its management fee by 0.13% of the Fund's
average daily net assets ("Fee Waiver"). The undertaking lasts
until 8/31/2026 and may not be
terminated during its term without the consent of the Board of
Trustees. The Fee Waiver is not subject to repayment under the
expense limitation arrangement described above and will not reduce
expenses below the expense limitation arrangement described
above.
Additional Risks for Neuberger Berman Total Return Bond
ETF
Shares in the Fund may fluctuate, sometimes significantly, based
on interest rates, market conditions, credit quality and other
factors. Generally, bond values will decline as interest rates
rise. Typically, the longer the maturity or duration of a debt
security, the greater the effect a change in interest rates could
have on the security's price. The market's behavior is
unpredictable and there can be no guarantee that the Fund will
achieve its goal.
Lower rated debt securities (also known as "junk bonds") involve
greater risks and may fluctuate more widely in price and yield, and
carry a greater risk of default, than investment grade debt
securities. They may fall in price during times when the economy is
weak or is expected to become weak. Derivatives involve risks
different from, and in some respects greater than, those associated
with more traditional investments.
CDOs, which include collateralized loan obligations (CLOs),
issue classes or "tranches" of securities that vary in risk and
yield and may experience substantial losses due to interest rate
fluctuations, actual defaults, collateral defaults, disappearance
of subordinate tranches, market anticipation of defaults, and
investor aversion to CDO securities as a class.
Derivatives can be highly complex, can create investment
leverage and may be highly volatile, and the Fund could lose more
than the amount it invests. Derivatives may be difficult to value
and may at times be highly illiquid, and the Fund may not be able
to close out or sell a derivative position at a particular time or
at an anticipated price. The Fund's investments in derivatives
create counterparty risk.
The Fund's performance could be affected if borrowers pay back
principal on certain debt securities, such as mortgage- or
asset-backed securities, before or after the market anticipates,
shortening or lengthening their duration and could magnify the
effect of rate increases on the security's price. When-issued and
forward-settling securities can have a leverage-like effect on the
Fund, which can increase fluctuations in the Fund's share price;
may cause the Fund to liquidate positions when it may not be
advantageous to do so, in order to satisfy its purchase
obligations; and are subject to the risk that the security will not
be issued or that a counterparty will fail to complete the sale or
purchase of the security, in which case the Fund may lose the
opportunity to purchase or sell the security at the agreed upon
price. Leverage amplifies changes in the Fund's net asset
value.
Floating-rate loans may be more susceptible to adverse economic
and business conditions and other developments affecting the
issuers of such loans. Although senior floating-rate loans are
generally collateralized, there is no guarantee that the value of
collateral will not decline, causing a loan to be substantially
unsecured. No active trading market may exist for many loans, loans
may be difficult to value and many are subject to restrictions on
transfer or resale, which may result in extended trade settlement
periods and may make certain investments less liquid and also
prevent the Fund from obtaining the full value of a loan when
sold.
Additional Risks for Neuberger Berman Growth ETF
The Fund is classified as non-diversified. As such, the
percentage of the Fund's assets invested in any single issuer, or a
few issuers is not limited as much as it is for a Fund classified
as diversified. Investing a higher percentage of its assets in any
one or a few issuers could increase the Fund's risk of loss and its
share price volatility, because the value of its shares would be
more susceptible to adverse events affecting those issuers.
Because the prices of most growth stocks are based on future
expectations, these stocks tend to be more sensitive than value
stocks to bad economic news and negative earnings surprises. When
these expectations are not met or decrease, the prices of these
stocks may decline, sometimes sharply, even if earnings showed an
absolute increase. Bad economic news or changing investor
perceptions may adversely affect growth stocks across several
sectors and industries simultaneously.
Most of the Fund's performance depends on what happens in the
stock market, the Portfolio Managers' evaluation of those
developments, and the success of the Portfolio Managers in
implementing the Fund's investment strategies. The market's
behavior can be difficult to predict, particularly in the short
term. There can be no guarantee that the Fund will achieve its
goal.
The actual risk exposure taken by the Fund in its investment
program will vary over time, depending on various factors including
the Portfolio Managers' evaluation of issuer, political,
regulatory, market, or economic developments. There can be no
guarantee that the Portfolio Managers will be successful in their
attempts to manage the risk exposure of the Fund or will
appropriately evaluate or weigh the multiple factors involved in
investment decisions, including issuer, market and/or
instrument-specific analysis, valuation and ESG factors.
At times, mid-and large-cap companies may be out of favor with
investors. Compared to smaller companies, large-cap companies may
be unable to respond as quickly to changes and opportunities and
may slower rate.
These and other risks are discussed in more detail in the Fund's
prospectus. Please refer to the prospectus for a complete
discussion of the Fund's principal risks.
This material is general in nature and is not directed to any
category of investors and should not be regarded as individualized,
a recommendation, investment advice or a suggestion to engage in or
refrain from any investment-related course of action. Neuberger
Berman is not providing this material in a fiduciary capacity and
has a financial interest in the sale of its products and services.
Investment decisions and the appropriateness of this material
should be made based on an investor's individual objectives and
circumstances and in consultation with his or her advisors.
The "Neuberger Berman" name and logo and "Neuberger Berman
Investment Advisers LLC" name are registered service marks of
Neuberger Berman Group LLC. The individual fund names in this piece
are either service marks or registered service marks of Neuberger
Berman Group LLC or Neuberger Berman Investment Advisers LLC, an
affiliate of Neuberger Berman BD LLC, distributor, member
FINRA.
Media Contact: Alex
Samuelson, 212 476 5392, Alexander.Samuelson@NB.com
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