Neuberger Berman Expands UCITS Range with US Large Cap Value Fund Launch

This is a marketing communication. Please refer to the prospectus of the fund and to the KIID before making any final investment decisions. Investors should note that by making an investment they will own shares in the fund, and not the underlying assets.

London, February 8 2022 — Neuberger Berman, a private, independent, employee-owned investment manager, has launched its long-running US Large Cap Value strategy in Europe as a UCITS fund.

The Neuberger Berman US Large Cap Value Fund is run by highly experienced New York-based portfolio managers Eli Salzmann and David Levine who are supported by 38 senior research analysts.

With US value stocks remaining at historically cheap levels compared with growth counterparts, the team utilises a fundamental, bottom-up, research-driven approach to identify undervalued US businesses with a catalyst for price appreciation. While seeking to avoid ‘value traps’, the portfolio managers search for attractively valued stocks in sectors that have been deprived of capital, and in turn deprived of capacity.

Eli Salzmann comments: “As some of last year’s unknowns become knowns, it is likely that the changing market environment will spur volatility thus creating opportunities within the value investing space. We believe that equities remain the most attractive asset class over the long term given their potential to generate capital appreciation.”

“The fund benefitted from being positioned in more cyclical areas of the market, but despite volatility we remained disciplined value investors. We continue to monitor valuations and opportunities in the equities space given the recent changes to the Fed’s inflation outlook and the impact that will have on the different stocks and sectors in our portfolio.”

David Levine adds: “We believe inflationary expansion will continue; however, it will be volatile, the extent of which will ultimately depend on how aggressive the Fed will be in tackling rising inflation. While longer-duration growth stocks have been recovering since Treasury yields hit their peak in March 2021, as yields start to edge up again, we believe value is likely to reassert itself and should outperform growth on a medium-term outlook.”

Jose Cosio, head of global intermediary (ex US) at Neuberger Berman, says: “After being largely ignored over the last number of years, value sectors have begun to turn the corner on the recent acceleration in economic growth – setting the scene for what we believe will be a multi-year recovery for this style of investment. For example, year-to-date returns for the most expensive stocks in the Russell 1000 index have sharply underperformed the least expensive deciles for stocks. Despite this recent outperformance, there is still plenty of ground to make up, with ample opportunity to invest in the space.”

“We are pleased UCITS investors now have the ability to access this proven and disciplined strategy, which is run by two highly experienced value managers, especially as many clients are not currently showing value characteristics in their portfolios.”

Investing in the fund is subject to risk, including currency, derivatives, liquidity, market, operational and counterparty risk. There can be no assurance or guarantee that the fund’s objectives will be achieved or that investors will receive any return on their investments in the fund.

About Neuberger Berman

Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 25 countries, Neuberger Berman’s diverse team has over 2,300 professionals. For seven consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). In 2020, the PRI named Neuberger Berman a Leader, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. The PRI also awarded Neuberger Berman an A+ in every eligible category for our approach to ESG integration across asset classes. The firm manages $460 billion in client assets as of December 31, 2021. For more information, please visit our website at www.nb.com.

Media Contact:

Fiona Kehily
Neuberger Berman
+44 (20) 3214 9087
Fiona.Kehily@nb.com