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For Professional Client Use Only
Emerging Markets Debt – Hard Currency CapabilitiesOctober 2018
FIRM OVERVIEW
Employee-Owned Investment Manager
Partnering with clients to achieve their unique objectives
Long-term Outperformance2Alignment of Interests
Portfolio managers invest alongside clients
Breadth of Independent Perspectives
601 investment professionals1 connected across public and
private markets, equity, fixed income and alternatives
Experienced and Stable Teams
25+ year average industry experience for lead PMs; 96%
annualized retention rate of senior investment professionals at MD
and SVP level since becoming an independent company in 2009
Innovative Investment Solutions
A track record of client partnerships and long-term performance
90%Institutional-oriented equity
Percentage of institutional-oriented AUM outperforming
benchmark since inception ended June 30, 2018
95%Institutional-oriented fixed income
Percentage of institutional-oriented AUM outperforming
benchmark since inception ended June 30, 2018
74%
Private equity
Percentage of NB Private Equity funds raised between
2005 – 2015 (since inception performance)
outperforming benchmark Net IRR
Deep Resources
Extensive fundamental research, access to management,
innovative ESG research, and sophisticated risk management
1. As of August 31, 2018.2. Institutional-oriented equity and fixed income assets under management (“AUM”) includes the firm’s equity and fixed income institutional separate account (“ISA”), registered fund, and managed account/wrap (“MAG”) offerings and are based on the overall performance of each individual investment offering against its respective benchmark. High net worth/private asset management (“HNW”) AUM is excluded. If HNW AUM were included, the percentage of AUM outperforming the benchmark since inception period would have been 75% for equities and 84% for fixed income. Equity and Fixed Income AUM outperformance results are asset-weighted so individual offerings with the largest amount of assets under management have the largest impact on the results. Please see additional disclosures for important information regarding Private Equity methodology. All performance data for NB Private Equity funds, public and private indices data is as of December 31, 2017. Results are shown gross of fees. Individual offerings may have experienced negative performance during certain periods of time. See Additional Disclosures for additional information regarding the outperformance statistics shown (including 3-, 5- and 10-yr statistics for institutional-oriented equity and fixed income). 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.
3
Employee Ownership Fosters Team Stability and Alignment with Clients
Industry-leading experience, retention and culture
1. Employee assets include current and former employees and their family members.
of clients’ assets managed by
lead PMs who have 20+ years
of industry experience
Manager Experience
Retention Levels For Senior Investment Professionals
Managing Directors
(includes retirements)
Managing Directors
(competitor departures only)
98%
98%
99%
91%
94%
100%
99%
100%
99%
100%
2013
2014
2015
2016
2017
93%
Alignment With Clients
invested by Neuberger Berman employees
alongside clients1~$3bn100%independent,
employee-owned
Ownership Structure
deferred cash compensation directly linked to team
and firm strategies100%
Our Culture
2013 2014 2015
2016 2017
4
Investment Platform
Breadth of independent perspectives across asset classes
1. As of June 30, 2018. Firm assets under management (AUM) includes $103.3 billion in Equity assets, $132.2 billion in Fixed Income assets and $68.9 billion in Alternatives assets. Alternatives “AUM and Committed Capital” includes assets under management for non-Private Equity businesses and Committed Capital since inception for the Private Equity businesses. Committed Capital since inception reflects all contractual commitments, including those still in documentation, to fund investments, including those which have since been realized, advised by NB Alternatives Advisers LLC and its affiliates or predecessors (the oldest mandate of which was founded in 1981).2. As of August 31, 2018.
EQUITY FIXED INCOME ALTERNATIVES
AUM $304bn1
Investment
Professionals2
$103bn
228
$132bn
176
Risk Parity
Global Tactical Asset Allocation
Global Relative & Absolute Return
Income Focused
Inflation Management
Liability Aware
$77bn AUM and Committed Capital
152
Quantitative Global
U.S.
Emerging Markets
Custom Beta
Risk Premia
Options
Global Macro
Commodities
Fundamental Global Investment Grade
Global Non-Investment Grade
Emerging Markets, Regional EM, China
Multi-Sector, Opportunistic
Municipals
Specialty Strategies
– CLO Mezzanine
– Currency
– Corporate Hybrids
Private Equity:
– Primaries
– Co-Investments
– Secondaries
– Specialty Strategies– Minority stakes in
alternative firms - Dyal
Alternative Credit:
– Private Credit
– Residential Loans
– Special Situations
Hedge Funds:
– Multi-Manager
– Equity Long/Short
– Credit Long/Short
– Event Driven
QuantitativeFundamental
MULTI-ASSET CLASS SOLUTIONS AND STRATEGIC PARTNERSHIPS
Integration of Environmental, Social and Governance Factors
Global, EAFE
U.S. Value, Core, Growth
Emerging Markets
Regional EM, China
Global Thematic, Disruptive Themes
Sustainable Equity
Income Strategies
– MLP
– REITs
5
For Professional Client Use Only
Fixed Income Organization
Supported by over 150 US and Global Money Managers, Research Analysts and Associates
As of July 31, 2018Combined investment professionals of the firm and affiliated investment management entities.*As previously announced Andy will be retiring at the end of 2018 and will transition his portfolio management responsibilities to a group of senior portfolio managers across Global Investment Grade and the Multi-Sector Fixed Income Group. Given our team-based approach, each account will continue to be managed by portfolio managers that have a deep understanding of each portfolio and the client’s unique objectives.**As of May 25, 2018, it was announced that Martin Rotheram intends to depart the firm. Martin will work with the members of the investment team to ensure an orderly handover of his credit responsibilities over the next six months.
GLOBAL FIXED INCOMEBRAD TANK
EMERGING MARKETS DEBT
ROB DRIJKONINGEN
GORKY URQUIETA
Hard Currency
Bart van der Made
Local Currency
Raoul Luttik
Corporates
Jennifer Gorgoll
Nish Popat
Research
Puay Yeong Goh
Vera Kartseva
Kaan Nazli
Asian Fixed Income
Prashant Singh
GLOBAL NON-INVESTMENT
GRADE
TOM O’REILLY
High Yield
Russ Covode
Dan Doyle
Patrick Flynn
Joseph Lind
Tom O’Reilly
Senior Floating Rate Loans /
Structured Credit
Stephen Casey
Joseph Lynch
Martin Rotheram**
Pim Van Schie
Research
Chris Kocinski
Steve Ruh
European High Yield
Vivek Bommi
Martin Rotheram**
GLOBAL INVESTMENT
GRADE
DAVE BROWN
ANDREW JOHNSON*
Rates
Thanos Bardas
Anthony Woodside
Credit
Dave Brown
Julian Marks
Bob Summers
Securitized
Jason Smith
Tom Sontag
Currency
Ugo Lancioni
Research
Steve Flaherty
Dmitry Gasinsky
Core/Core Plus
Thanos Bardas
Dave Brown
Nate Kush
Tom Marthaler
MUNICIPALS
JAMES ISELIN
Cash/Short Duration
Kristian Lind
Intermediate
James Iselin
S. Blake Miller
High Income
James Iselin
S. Blake Miller
Eric Pelio
Research
James Lyman
ALTERNATIVES
Global Credit
Long / Short
Rick Dowdle
Norman Milner
Special Situations
Michael Holmberg
Brendan McDermott
Ravi Soni
Residential Loans
Terry Glomski
MULTI-SECTOR
SOLUTIONS
BRAD TANK
Global / US Opportunistic
Strategies
Thanos Bardas
Ashok Bhatia
Dave Brown
Andrew Johnson
Jon Jonsson
Tom Marthaler
Research
David Tang
Insurance Solutions
Jason Pratt
Inflation / Liability Aware
Thanos Bardas
Olumide Owolabi
Ronit Walny
China Fixed Income
Peter Ru
6
EMERGING MARKETS DEBT
For Professional Client Use Only
Emerging Markets Debt at Neuberger Berman
An experienced investment team with a proven multi site approach
Experienced Team
• Early investors in EMD:
– Hard Currency since 1994
– Local Currency (FX and rates)
since 1998
– Emerging Corporate Bonds
since 2003
– Dedicated China Onshore
Fixed Income Strategies since
2015
• Senior managers have been
working together since 2000
Full Range of EMD Capabilities
• Multi-site team ensures local
perspective incorporated
• Dedicated specialists focused on
hard currency, local currency,
corporate and China onshore
strategies
• Asset allocation capabilities
across EMD asset classes
Structured, Research-Driven
Investment Process
• Diversified set of alpha sources
on the back of bottom-up and top-
down processes
• An emphasis on fundamental
research including ESG factors
• Consistent, disciplined investment
process across strategies
Integrated Risk Management
• Seeks to ensure portfolio risks are
transparent, intentional and
consistent with our investment
strategy
• Additional risk management
oversight at firm level
_______________________As of May 2018. The portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice. Please see relevant risk disclaimers at back of document.
8
For Professional Client Use Only
Emerging Markets Debt Team
_______________________As of October 2018.Yrs’ denotes years of investment experience
Hard Currency
Bart van der Made
Hard Currency Strategy Leader
Sr. PM / 21 yrs – The Hague
Rob Drijkoningen Global Co-Head of EMD
28 yrs – The Hague
Local Currency - Global
Sukhjeet Reehal
PM / 13 yrs – The Hague
Thijs Verheijden
PM / 8 yrs – The Hague
Raoul Luttik
Local Currency Strategy Leader
Sr. PM / 23 yrs – The Hague
Prashant Singh
Asian Fixed Income Strategy Leader
Sr. PM 15 yrs – SingaporeMike Reyes
PM / 15yrs – Singapore
Corporate
Nish Popat
EM Corporate Strategy Co-Leader
Sr. PM / 25 yrs – The Hague
Jennifer Gorgoll
EM Corporate Strategy Co-Leader
Sr. PM / 20 yrs – Atlanta
Manuel Guerena
Sr. Corporate Analyst / 26 yrs – The Hague
Sean Jutahkiti
Director Asian Corporate Research
/ 17 yrs – Singapore
Gorky UrquietaGlobal Co-Head of EMD
24 yrs – Atlanta
Economists / Strategists
Kaan Nazli
Sr. Economist / 18 yrs – The Hague
Puay Yeong Goh
Sr. Economist / 14 yrs – Singapore
Vera Kartseva
PM / Strategist (TAA) / 11 yrs – The Hague
Lei Wan
Quant Analyst / 7 yrs – The Hague
Alexandru Ursu
Trader / 7 yrs – The Hague Ram Bala Chandran
PM / 11 yrs – Atlanta
Doreen Saik
Sr. Corporate Analyst / 12 yrs – Singapore
Greg Magnuson
Sr. Corporate Analyst / 18 yrs – Atlanta
Gui Xiong Teo
Corporate Analyst / 8 yrs – Singapore
Alexander Sklemin
Sr. Corporate Analyst / 13 yrs– The Hague
Portfolio Specialists
Isidro Arrieta
Sr. Corporate Analyst / 11 yrs – Atlanta
Gloria Lam
Sr. Corporate Analyst / 11 yrs – Singapore
Peter Ru
China Fixed Income Strategy Leader
Sr. PM / 23 yrs – Shanghai
Ian Chong
PM / 10 yrs – Shanghai
Local Currency – China Onshore
Wenjin Li
Trader / 4 yrs – Shanghai
Samuel Wong
Corporate Analyst / 5 yrs – Shanghai
Zhilun Xu
Corporate Analyst / 4 yrs – Shanghai
Stéphane Xavier
Trader / 3 yrs – The Hague
Leonardo Bernardini
11 yrs – The Hague
Adam Grotzinger
15 yrs – Singapore
Rebecca Lohse
13 yrs – Atlanta
9
Darius Sie
Associate PM / 3 yrs – Singapore
For Professional Client Use Only
Emerging Markets Debt - Summary of Assets Under Management
Strategy AUM ($’s In Millions)
10
As of September 30, 2018
For this purpose, Institutional includes assets of Institutional Separate Accounts and Neuberger Berman sponsored U.S. registered '40 Act open-end funds held by institutional clients including defined benefit & defined contribution plans and non-U.S. offshore funds held by institutional clients. See Additional Disclosures at the end of this piece, which are an important part of this presentation.1. Registered Fund includes Neuberger Berman sponsored U.S. registered '40 Act open-end fund and non-U.S. offshore funds (i.e. UCITS).2. Private Funds includes Neuberger Berman sponsored alternative collective investment vehicle with eligibility restrictions.3. Represents 26 mandates that the investment team manages a portion of.4. Excludes investments in the China Bond Fund by other EMD strategies to avoid double counting5. Based on the high level benchmark classification.
Blend, $6,766
Hard Currency,
$3,963
Corporates, $151
Short Duration, $3,791
Asian HC, $16
Local Currency,
$4,773
China Bond, $18
AUM BY
STRATEGY
($’s in Millions)
Hard Currency,
$8,914
Local Currency,
$7,119
Corporates, $3,445
AUM BY SUB-
ASSET CLASS5
($’s in Millions)
# of Funds / Accounts AUM % of Total
UCITS Fund1
Hard Currency 1 $1,464 8%
Local Currency 1 $2,449 13%
Corporate Debt 1 $128 1%
Short Duration (50% HC / 50% Corp) 1 $3,646 19%
Blend (50% LC / 25% HC / 25% Corp) 1 $1,742 9%
Blend IG (67% HC / 33% LC) 1 $15 0%
Asian Hard Currency 1 $16 0%
China Bond Fund 1 $11 0%
Mutual Fund1
Blend (50% LC / 25% HC / 25% Corp) 1 $207 1%
Private Fund2
Blend (50% LC / 25% HC / 25% Corp) 2 $414 2%
Short Duration (50% HC / 50% Corp) 1 $20 0%
China Bond 1 $7 0%
Separate Account
Blend (50% LC / 50% HC) 4 $2,289 12%
Blend (HC / Corp) 4 $2,099 11%
Hard Currency 4 $1,066 5%
Local Currency 5 $2,324 12%
Allocation from Fixed Income Mandates3
Hard Currency / Short Duration / Corporate * $1,581 8%
TEAM ASSETS UNDER MANAGEMENT4 30 $19,478 100%
Institutional $14,058 72%
Intermediary/HNW $5,420 28%
For Professional Client Use Only
Neuberger Berman’s EMD Strategies
11
_______________________* As of August 31, 2018. ** US Private Funds (commingled): Blend and Short Duration are funded, the others are available for funding.UCITS funds are generally not available to US Investors
Private funds are not available to all investors
LOCAL CURRENCY HARD CURRENCY CORPORATES BLEND BLEND INVESTMENT GRADE
OverviewExposure to EM opportunities
through local currency bonds
Exposure to EM opportunities without
EM currency risk
Exposure to the rapidly growing
opportunities in EM credit
Exposure to a dynamic portfolio which
takes advantage of the broad EM debt
spectrum
Exposure to a wide opportunity set of
investment grade EM debt, with a bias
towards hard currency denominated debt.
Benchmark JP Morgan GBI-EM GD Index JP Morgan EMBI GD Index JP Morgan CEMBI Diversified Index
Blend of JP Morgan GBI-EM GD
(50%), EMBI GD (25%) & CEMBI
Diversified (25%) Indices
Blend of JP Morgan EMBI GD IG (67%) &
GBI-EM GD IG 15% Cap (33%)
Risk Budget
(over a market cycle)
Targeted Tracking Error 2-5% 2-6% 2-4% 2-6% 1-3%
Target Excess Return p.a. (gross) 1-2% 1-2% 1-2% 1-3% 1%
Asset Allocation
Sovereigns No Max No MaxMax 33%
(Sovereign /or Quasi sovereign)
HC Sovereign 10-60%
Local Currency 20%-80%
HC Sovereign 40-90%
Local Currency 10%-50%
Non Sovereign Max 20%
Max 50% (Max Quasi-sovereign 35%/
Max Sub-sovereign 10%/ Max Supra-
national 10%/Max Corporates 15%)
No Max
Max Quasi-sovereign 30%
Max Sub-sovereign 15%
Max Supra-national 10%
Max Corp 60%
Max Quasi-sovereign 40%
Max Sub-sovereign 15%
Max Supra-national 10%
Max Corp 15%
Hard or Local Currency Local Hard Max 33% Local Both Both
Benchmark Average
Credit Quality(S&P)*BBB BB+ BBB- - -
Active Duration Management +/- 2 years +/- 1.5 years +/- 1.5 years +/- 3 years +/- 3 years
Available Vehicles
Separate Account P P P P P
UCITS P P P P P
Mutual Fund (US) P
US Private Funds (commingled)** P P P P
For Professional Client Use Only
Neuberger Berman’s EMD Strategies
12
Continued
_______________________* As of August 31, 2018.
** US Private Funds (commingled): Blend and Short Duration are funded, the others are available for funding.*** Based on linear average rating UCITS funds are generally not available to US Investors.Private funds are not available to all investors.
SHORT DURATION ASIAN HARD CURRENCY CHINA BOND (TOTAL RETURN) CHINA BOND (CORE)
Overview
Exposure to a short duration EM
portfolio of hard currency bonds with an
average IG rating***
Exposure to deeper and broader regional sub-
set of EM Sovereign and Corporate universe,
primarily through hard currency bonds
Exposure to China opportunities in local
currency through a total return oriented
approach with flexible duration and sector
allocation
Exposure to China opportunities in local
currency through a high quality focused,
benchmark aware approach focused on
government-related bonds
Benchmark - JP Morgan Asia Credit Index (JACI) -JP Morgan JADE Broad Asia Diversified - Broad
China Index
Risk Budgeting
(over a market cycle)
Targeted Tracking Error Limited Volatility 1.5-3.5% 4 to 5% Volatility 1-2%
Target Excess Return p.a. (gross) 300bp above 3m US T-Bills 1-1.5% 300bp above 3m Chinese Gov’t Bills 1%
Asset Allocation
Sovereigns30-70% (Sovereign /or Quasi
sovereign)Max 60% No Max No Max (incl. Policy Banks)
Non Sovereign 30-70%Max quasi-sovereign 35% / Max Corporates
100%No Max Max 30% Corporates
Hard or Local Currency Hard Max 30% Local Max 33% USD, CNH or other offshore bonds Max 10% Hard
Benchmark Average
Credit Quality(S&P)*- BBB+ - A+
Active Duration Management 2+/-0.75 years + / - 1.5 years 0.5 – 5 years + /- 50% of benchmark duration
Available Vehicles
Separate Account P P P P
UCITS P P P
Mutual Fund (US)
US Private Funds (commingled)** P
For Professional Client Use Only
It is our belief that:
• Emerging markets debt is a generally improving asset class that is less efficient than developed debt markets
• Active management is the best way for investors to access the full potential of the asset class
• Bottom-up and top down expertise deepens understanding of performance drivers and improves decision making quality
• An emphasis on fundamental research is the best way to uncover the potential of emerging markets debt
Market mispricing allows managers to produce alpha opportunities through fundamental research
Investment Philosophy
_______________________This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice. Please see relevant risk disclaimers at back of document.
13
For Professional Client Use Only
Around the Clock Coverage
QuarterlyAll seniors meet in one location
MonthlyTop-down review for all Strategies
WeeklyPortfolio reviews between CEEMEA, Asian and LatAm
Teams
COMMUNICATION
Atlanta
The Hague
Singapore
KEY BENEFITS
Access to local in-depth
knowledge and research
Multi-site team with a presence across three time zones
24 hour market coverage
Local/regional trading allows timely
execution of investment decisions
_______________________Information as of December 2017. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
Shanghai
14
For Professional Client Use Only
Gross of Fees Annualized¹ (%)
EMERGING MARKET DEBT HARD CURRENCY COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (06/01/13)
Composite -3.36 -1.22 8.35 6.58 5.66
JPM EMBI Global Diversified Index -3.04 -1.92 6.04 5.38 4.28
Relative -0.32 0.70 2.31 1.20 1.38
EMERGING MARKET DEBT LOCAL CURRENCY COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (07/01/13)
Composite -9.10 -8.42 5.67 -1.29 -1.15
JPM GBI-EM Global Diversified Index -8.15 -7.40 5.17 -1.68 -1.68
Relative -0.95 -1.02 0.50 0.39 0.53
EMERGING MARKET CORPORATE DEBT COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (07/01/13)
Composite -2.09 -0.75 6.24 5.57 5.56
JPM CEMBI Diversified Index -1.66 -1.13 5.58 5.02 5.00
Relative -0.43 0.38 0.66 0.55 0.56
EMERGING MARKET DEBT BLEND COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (10/01/13)
Composite -6.19 -4.98 6.30 2.31 2.31
EMD Income Blend index -5.21 -4.40 5.58 1.79 1.79
Relative -0.98 -0.58 0.72 0.52 0.52
SHORT DURATION EMERGING MARKET DEBT COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (11/01/13)
Composite 0.64 1.22 4.06 - 3.01
ML US Treasury 3-Month Bill 1.30 1.59 0.84 - 0.53
Relative -0.66 -0.37 3.22 - 2.48
ASIAN DEBT HARD CURRENCY COMPOSITE (USD) YTD 1 Year 3 Year 5 Year Since Inception (07/01/15)
Composite -1.99 -0.99 4.99 - 4.23
JPM Asian Credit Index (JACI) -1.41 -1.01 3.79 - 3.32
Relative -0.58 0.02 1.20 - 0.91
CHINA BOND COMPOSITE (RMB) YTD 1 Year 3 Year 5 Year Since Inception (07/01/15)
Composite 4.60 4.34 - - 2.88
China Bond Custom Index 4.40 4.14 - - 2.86
Relative 0.20 0.20 - - 0.02
Neuberger Berman EMD Composite Performance
_______________________Source: Neuberger Berman.1. Periods less than one year are not annualized. The inclusion of any individual security in this document does not constitute a recommendation to invest.Past performance is no guarantee of future results. Please refer to the attached GIPS compliant composite for complete performance information. Indexes are unmanaged and are not available for direct investment. Actual investment results will vary. As with any investment, there is the possibility of profit as well as the risk of loss. See Additional Disclosures at the end of this piece, which are an important part of this presentation.
As of September 30, 2018
15
EMERGING MARKETS DEBT HARD CURRENCY
For Professional Client Use Only
Emerging Markets Debt Hard Currency
Objectives and characteristics
OBJECTIVES
Investment Objective
Outperform the JP Morgan EMBI GD Index over a 3 year period. The objective of the strategy is to achieve long term capital growth, by investing in a diversified
selection of debt instrument denominated in OECD currencies issued by issuers from low and middle income developing countries. The strategy mainly invests
in Latin American, Central and Eastern European, the Middle East, Asian and African debt instruments.
Benchmark JP Morgan EMBI GD Index
REPRESENTATIVE CHARACTERISTICS
Investment Universe Emerging Markets Sovereign, Quasi-Sovereign and Corporate Debt, issued in Hard Currency.
Investment Style Combining a focus on fundamental search for value in country exposure with top down market direction, corporate issuer and instrument selection components
Horizon and Turnover Medium- to Long-term investment horizon, relatively low turnover around 75% annually
Off-Benchmark Holdings Typically 15% - 40% in off-benchmark instruments
Instruments Hard Currency Bonds; Bond Futures; CDS; Cash Instruments; FX Forwards for currency hedging only.
Non-Sovereign Exposure
Maximum 50%, as per following exposure categories:
• Quasi-sovereign (100% state owned or explicit sovereign guarantee): 35%
• Sub-sovereign (state, regional, municipal debt): 10%
• Supra-national (world bank regional development banks): 10%
• Corporate: 15%
Max. Country /Max. Issuer Maximum country exposure 25%; Maximum corporate issuer 4%
_______________________For illustrative purposes only. Please see relevant risk disclaimers at back of document.
17
For Professional Client Use Only
Investment Universe
Focus on a broad opportunity set of hard currency denominated EM bonds
The Investment Universe of the NB EMD Hard Currency Strategy comprises of:
+
Please note that we do manage various EMD HC mandates with restrictions on off-benchmark exposure.
Certain Off-benchmark exposures, including;
− Off-benchmark countries; typically countries with a relatively
high rating which fall somewhat in between Developed
and Emerging markets, e.g. Slovenia, Saudi Arabia
− EUR-denominated EM bonds
− EM Hard Currency Corporate bonds (max 15%)
All Constituents of the Benchmark Index
− (JPM EMBI Global Diversified;
147 issuers / 627 instruments as of 30 Sept 2017)
18
For Professional Client Use Only
EMD Hard Currency Team and Organisation
Hard Currency
Lead Portfolio Manager
BART VAN DER MADE
Corporate Recommendations
• Nish Popat
• Jennifer Gorgoll
• + Analysts
Top Down Views
TAA Team & Lead PM
• Rob Drijkoningen
• Gorky Urquieta
• Vera Kartseva
• + Bart van der Made
ROB DRIJKONINGENGlobal Co-Head of EMD
GORKY URQUIETAGlobal Co-Head of EMD
Trading / Execution Time Zones
SINGAPORE THE HAGUE ATLANTA
• Alexandru Ursu• Mike Reyes • Ram Bala Chandran
Country Positioning & Trade Ideas
LATAMEMEAASIA
• Mike Reyes
• Puay Yeong Goh
• Kaan Nazli
• Bart van der Made
• Alexandru Ursu
• Gorky Urquieta
• Ram Bala Chandran
STRATEGY OVERSIGHT
19
For Professional Client Use Only
Hard Currency Investment Process Overview
Top down and bottom up approach with multiple potential alpha sources
1Top Down
EMD Asset Class Review
2Bottom Up
Country / Issuer / FX Review
3Strategy Setting, Risk
Management and Model
Portfolio Construction
4Portfolio Customization,
Process & Performance
Evaluation
EXPECTED ALPHA CONTRIBUTION1
Country Credit 60%
Top Down Analysis 15%
Corporate Credit and Sector 15%
Instrument Selection 10%
_______________________1. Expected Alpha contribution data is estimated and for illustrative purposes only. Forecasts may not materialize and actual data could differ. Past performance is not indicative of future results. As with any investment, there is the possibility of loss of the amount invested. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
20
For Professional Client Use Only
_______________________This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
Top Down EMD Asset Class Review
Leveraged across all strategies to define risk profiles
Broad Market Environment for EMD
• G3 rates and spread outlook
• Global liquidity conditions
• Global growth outlook
• Inflation outlook
• Tail risk events
Near term demand/supply
• EMD inflows/outflows
• Market positioning
• Issuance outlook
Aggregates extensive
individual country analysis
• Outlook for growth and inflation
• Current account trend
• Reserve levels
• Debt-to-GDP dynamics
• Monetary & FX policies
Market pricing
• Value of absolute yields
• Value of relative yields
• FX REERs
TOP DOWN SCORE
PER STRATEGY1 = potential to increase risk
0 = neutral risk position
-1 = defensive risk position
1
23 4
21
For Professional Client Use Only
Hard Currency: Bottom up Analysis
1
23 4
Country Credit Analysis
Macroeconomic Factors (60%) Weighting
DOMESTIC ECONOMY
Real GDP growth, % p.a.
Nominal GDP, US$ billion
GDP per Capita, US$
CPI Inflation, % p.a.
Fiscal Balance % GDP
EXTERNAL SECTOR AND DEBT
Current Account Balance % GDP
External Debt as % GDP
Short-term Debt % Reserves
Reserves – Import Coverage
Public Debt % Public Revenues
ESG
Factors
(40%)
Social Governance:
Economic
Governance:
Legal & Political
Environment
• Rule of law
• Corruption
• Politics and election
Calendar
• Energy intensity of GDP
Country scores are forward-looking (12-18 month):
100 = strong; 0 = weak
More EmphasisLess Emphasis
• Banking system
strength
• Nonperforming loans
• Ease of doing
business
• Funding sources
• Market capitalization
• Trade openness
• Government
effectiveness
• Regulatory
quality
• Political
stability &
security
• Human
development
• Voice and
accountability
_______________________For illustrative purposes only. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
22
For Professional Client Use Only
ESG Country Rankings
Source: Neuberger Berman. As of April 23, 2018.
Year
2018 POLITICS
ESG SCORE Energy Intens i ty Government
Effectiveness
Regulatory
Qual i ty
Pol i tica l Stabi l i ty
& Securi ty
Human
Development
Voice and
Accountabi l i ty
Rule of Law Corruption Ease of Doing
Bus iness
Pol i tics &
Election
Calendar
Funding
Sources
Banking Sector Risk
Assessment
Banking Sector Asset
Qual i ty
Market
Capita l i zation
Trade
Openness
Weights 100.0% 5.0% 10.0% 10.0% 7.5% 5.0% 5.0% 10.0% 10.0% 2.5% 7.5% 10.0% 7.5% 5.0% 2.5% 2.5%
Singapore 88.5 99.9 94.2 93.6 80.6 89.3 44.3 86.6 84.0 98.9 100.0 100.0 80.0 83.4 99.0 90.9
Hong Kong 86.4 100.0 87.2 93.1 66.8 88.2 55.4 83.9 77.0 97.2 100.0 100.0 80.0 87.7 99.5 90.9
Chile 76.1 96.2 70.4 77.5 60.3 78.1 69.9 72.5 67.0 69.4 90.0 85.0 70.0 101.9 93.5 38.5
Taiwan 75.9 99.9 77.4 75.8 68.5 87.0 70.7 72.8 63.0 91.7 80.0 70.0 60.0 93.4 98.9 81.8
South Korea 71.4 55.0 71.4 72.3 53.4 85.9 62.5 72.8 54.0 97.8 100.0 70.0 70.0 82.4 93.7 59.1
United Arab Emirates 71.2 83.5 78.3 69.5 58.8 77.1 27.6 67.7 71.0 88.3 90.0 90.0 50.0 52.5 85.1 90.9
Lithuania 70.9 97.5 71.7 72.7 66.0 78.3 69.7 70.4 59.0 91.1 80.0 90.0 40.0 64.5 23.9 87.3
Czech Republic 69.7 83.4 71.2 69.7 69.8 82.5 70.9 71.9 57.0 83.3 80.0 60.0 70.0 57.4 52.0 85.4
Slovenia 69.3 91.9 72.4 62.8 69.9 84.3 69.9 71.7 61.0 79.4 75.0 90.0 40.0 22.7 90.5 78.8
Latvia 68.5 95.8 70.0 71.6 57.8 75.7 67.4 69.0 58.0 89.4 90.0 90.0 30.0 61.4 11.2 70.7
Israel 68.2 98.8 77.1 76.3 33.5 85.6 65.4 70.4 62.0 70.0 70.0 55.0 60.0 83.4 92.1 45.8
Slovak Republic 66.9 91.5 67.8 67.8 62.5 77.8 68.8 63.9 50.0 78.3 70.0 90.0 60.0 42.2 13.6 88.5
Poland 66.4 94.9 63.8 69.0 60.2 79.3 66.7 63.6 60.0 85.0 70.0 70.0 50.0 43.7 88.5 68.5
Qatar 63.8 60.4 65.0 63.9 67.3 79.4 26.1 67.3 63.0 53.9 65.0 85.0 50.0 46.4 89.5 60.2
Costa Rica 62.4 99.6 57.1 58.1 64.9 66.5 72.7 59.3 59.0 66.1 90.0 60.0 30.0 82.4 8.5 50.4
Uruguay 62.3 99.7 61.0 59.8 71.9 70.4 73.7 62.6 70.0 47.8 50.0 65.0 40.0 83.4 1.0 30.8
Bermuda 61.9 50.6 76.6 67.4 70.0 70.0 70.9 67.1 65.0 33.9 70.0 55.0 50.0 24.4 51.3 64.4
Malaysia 61.4 82.5 67.6 64.2 52.0 68.5 24.0 40.0 31.0 86.7 60.0 90.0 60.0 73.2 99.3 84.7
Hungary 61.2 95.1 59.1 62.1 64.3 76.6 57.4 60.2 45.0 73.3 80.0 60.0 40.0 40.5 44.8 90.9
Saudi Arabia 60.7 71.1 54.9 51.6 40.1 76.8 14.4 59.3 49.0 48.9 75.0 90.0 60.0 85.7 86.1 54.5
Oman 59.7 61.2 53.8 62.2 66.0 70.4 27.9 58.7 44.0 60.6 70.0 70.0 40.0 81.4 87.5 75.0
Namibia 58.5 99.0 53.4 47.3 64.9 46.8 62.3 57.9 51.0 41.1 80.0 60.0 40.3 77.4 38.1 56.9
Kuwait 58.5 80.0 46.4 48.5 47.1 73.8 36.1 50.7 39.0 46.7 70.0 85.0 60.0 75.5 91.3 60.6
Argentina 58.3 91.4 53.5 40.6 54.4 75.3 60.8 64.0 39.0 48.9 90.0 55.0 40.0 84.5 80.7 15.4
Croatia 58.2 97.0 59.7 57.1 63.5 75.3 60.4 58.7 49.0 71.7 75.0 50.0 30.0 18.6 85.9 62.3
Peru 57.8 99.8 46.6 60.2 46.8 62.0 55.6 40.1 37.0 67.8 80.0 75.0 50.0 70.0 74.2 30.9
China 56.8 46.7 57.2 44.7 39.6 61.1 17.7 45.5 41.0 56.7 100.0 100.0 40.0 76.4 90.3 28.0
Panama 56.4 100.0 53.7 57.2 58.7 68.5 60.6 50.5 37.0 56.1 40.0 60.0 50.0 78.4 32.7 70.8
Mexico 56.3 96.8 52.9 55.7 34.7 65.2 48.2 39.9 29.0 72.8 75.0 70.0 60.0 70.0 66.7 52.2
Colombia 55.9 100.0 50.5 58.0 30.8 60.0 51.9 43.7 37.0 67.2 90.0 70.0 40.0 68.3 63.0 28.1
Bahrain 54.7 23.0 56.5 62.2 32.8 74.8 21.1 59.2 36.0 63.3 70.0 90.0 30.0 51.2 84.5 88.2
Indonesia 54.5 97.6 50.3 47.6 42.4 54.8 52.9 42.9 37.0 60.0 80.0 70.0 30.0 74.5 83.3 27.4
Trinidad and Tobago 54.3 7.3 54.5 51.7 55.7 67.4 62.0 46.7 41.0 43.3 80.0 75.0 40.0 45.8 90.3 71.4
South Africa 54.2 29.0 55.4 54.2 47.4 52.3 62.9 51.5 43.0 54.4 70.0 55.0 50.0 71.3 99.5 44.2
Georgia 54.0 74.1 60.2 70.2 44.3 64.9 54.3 57.3 56.0 95.0 55.0 30.0 20.0 72.0 0.3 80.1
Bulgaria 53.7 63.8 55.8 63.2 50.5 68.8 58.7 49.2 43.0 72.2 75.0 55.0 30.0 19.6 49.8 74.2
Philippines 53.7 99.6 49.7 49.9 23.9 52.6 52.9 42.1 34.0 37.2 90.0 65.0 30.0 79.4 95.9 49.5
Thailand 52.6 75.6 56.7 53.4 31.4 60.8 28.0 50.2 37.0 85.6 30.0 70.0 40.0 70.0 96.2 79.5
Romania 52.5 98.8 46.6 61.7 55.3 70.4 60.3 56.0 48.0 75.0 55.0 35.0 30.0 30.6 45.7 47.5
Brazil 51.7 95.5 46.5 45.9 41.0 65.0 59.4 48.4 37.0 30.6 70.0 60.0 40.0 51.2 80.1 11.7
Jamaica 51.7 83.0 58.2 53.3 54.9 59.8 63.7 45.0 44.0 61.1 70.0 30.0 10.0 61.0 75.1 70.2
India 51.4 85.3 52.0 43.9 30.9 44.1 58.3 48.6 40.0 44.4 80.0 50.0 50.0 63.4 62.0 25.3
ENVIRONMENT SOCIAL GOVERNANCE
LEGAL ECONOMIC
23
For Professional Client Use Only
ESG Country Rankings (Continued)
Source: Neuberger Berman. As of April 23, 2018.
Year
2018 POLITICS
ESG SCORE Energy Intens i ty Government
Effectiveness
Regulatory
Qual i ty
Pol i tica l Stabi l i ty
& Securi ty
Human
Development
Voice and
Accountabi l i ty
Rule of Law Corruption Ease of Doing
Bus iness
Pol i tics &
Election
Calendar
Funding
Sources
Banking Sector Risk
Assessment
Banking Sector Asset
Qual i ty
Market
Capita l i zation
Trade
Openness
Weights 100.0% 5.0% 10.0% 10.0% 7.5% 5.0% 5.0% 10.0% 10.0% 2.5% 7.5% 10.0% 7.5% 5.0% 2.5% 2.5%
Jordan 50.8 91.1 52.7 51.0 39.3 64.0 34.9 56.3 48.0 42.8 70.0 30.0 20.0 59.5 83.7 66.5
El Salvador 50.7 98.4 44.4 51.9 48.8 52.3 55.6 35.9 33.0 59.4 90.0 50.0 0.0 70.9 71.2 66.3
Serbia 50.3 68.8 51.8 51.1 50.9 67.3 54.3 47.7 41.0 76.1 75.0 55.0 20.0 12.2 29.5 78.2
Morocco 49.8 99.2 48.0 45.3 44.3 46.9 37.1 47.1 40.0 61.7 70.0 50.0 30.0 39.9 83.1 45.3
Sri Lanka 49.3 100.0 45.8 48.0 51.3 65.2 47.8 49.9 38.0 38.3 70.0 30.0 20.0 74.4 47.1 41.9
Armenia 48.8 79.1 47.0 55.0 38.0 61.9 37.7 47.9 35.0 73.9 80.0 35.0 40.3 44.0 7.6 71.1
Vietnam 48.5 75.7 50.2 40.9 53.4 52.2 21.9 51.0 35.0 62.2 70.0 55.0 10.0 39.1 79.4 90.9
Paraguay 48.2 96.6 34.6 44.0 54.0 54.2 49.2 36.6 29.0 40.0 80.0 55.0 20.0 76.4 9.3 66.6
Kazakhstan 47.4 40.2 48.8 48.0 50.9 69.7 24.2 41.7 31.0 80.0 65.0 65.0 20.0 44.0 59.4 54.5
Ghana 47.2 98.0 46.0 45.3 46.8 39.9 62.8 49.9 40.0 33.3 75.0 25.0 40.3 11.7 55.0 63.5
Suriname 46.8 98.7 43.2 37.5 55.5 59.2 59.2 47.7 41.0 8.3 70.0 30.0 40.3 35.7 0.0 61.9
Turkey 46.7 99.7 51.0 53.9 10.0 65.9 24.0 40.0 35.0 66.7 35.0 55.0 40.0 65.8 54.9 42.9
Mongolia 46.6 54.8 47.8 48.5 66.4 60.9 59.0 45.5 36.0 65.6 70.0 40.0 0.0 38.0 13.4 77.6
Dominican Republic 46.3 100.0 45.0 48.7 55.8 59.3 53.7 44.2 29.0 45.0 60.0 45.0 0.0 68.3 1.9 48.2
Senegal 46.0 82.5 40.7 47.1 44.7 23.7 57.5 46.3 45.0 22.2 70.0 50.0 40.3 11.7 43.0 44.2
Bolivia 45.6 81.1 38.6 31.5 45.9 51.7 50.2 25.9 33.0 15.6 90.0 55.0 20.0 84.8 27.8 40.7
Guatemala 45.0 86.6 37.9 46.0 39.3 46.7 43.8 29.2 28.0 46.1 50.0 55.0 30.0 104.5 2.9 43.7
Azerbaijan 44.9 97.3 46.9 44.4 32.6 64.4 17.9 38.7 31.0 68.3 80.0 65.0 10.0 11.9 5.8 66.5
Belize 44.8 98.4 36.5 39.8 51.1 59.3 63.4 32.8 29.0 32.8 70.0 45.0 40.3 15.6 0.0 71.0
Tunisia 44.0 97.8 45.8 40.6 30.2 60.2 56.6 50.5 42.0 51.1 60.0 30.0 10.0 14.9 45.1 67.5
Ecuador 43.2 98.7 41.4 29.6 48.0 61.7 45.1 36.1 32.0 34.4 60.0 55.0 0.0 65.8 16.3 35.4
Russia 41.3 35.8 45.7 41.7 32.1 71.1 25.8 34.0 29.0 80.6 45.0 60.0 20.0 31.3 76.6 35.6
Lebanon 41.2 95.5 39.4 43.1 18.9 67.0 39.5 32.8 28.0 26.1 35.0 55.0 10.0 55.4 48.9 73.6
Zambia 39.7 44.0 36.8 40.3 53.7 40.8 44.0 44.0 37.0 52.8 50.0 15.0 40.3 23.9 50.0 56.6
Kenya 38.9 41.0 43.7 44.0 23.5 35.5 47.1 39.4 28.0 55.6 70.0 40.0 10.0 40.1 62.1 21.7
Tanzania 38.9 33.6 39.0 41.3 41.8 31.6 46.4 42.2 36.0 23.9 70.0 30.0 40.3 30.7 12.8 25.1
Uganda 38.9 13.3 38.6 45.7 35.5 26.1 35.8 45.1 26.0 32.2 60.0 45.0 40.3 36.1 59.1 32.3
Egypt 38.9 98.6 36.8 31.5 21.6 55.7 25.5 41.8 32.0 28.9 70.0 35.0 0.0 51.2 43.3 36.2
Gabon 38.8 54.6 34.2 34.0 48.6 54.8 30.7 38.3 32.0 7.2 60.0 30.0 40.3 38.4 8.3 59.7
Cote D'Ivoire 37.8 34.5 36.6 42.7 32.0 23.2 44.3 36.6 36.0 22.8 60.0 30.0 40.3 31.9 58.2 40.6
Belarus 37.7 54.0 39.8 31.2 52.4 71.2 22.2 34.4 44.0 78.9 45.0 30.0 0.0 18.4 6.1 81.8
Honduras 37.2 67.5 35.3 39.7 42.7 43.7 41.4 27.8 29.0 36.1 40.0 30.0 20.0 61.8 18.0 49.1
Pakistan 35.2 92.0 37.3 37.2 0.7 34.1 36.2 33.4 32.0 18.3 50.0 50.0 20.0 28.8 19.7 15.3
Angola 34.0 97.9 29.2 30.0 42.3 33.1 26.7 28.4 19.0 2.8 40.0 40.0 40.3 15.2 0.0 57.1
Ethiopia 33.7 11.1 37.2 28.0 18.6 20.3 21.1 42.1 35.0 10.6 65.0 30.0 40.3 75.5 0.0 20.8
Nigeria 33.2 74.2 28.3 31.6 12.9 30.6 44.1 28.9 27.0 19.4 65.0 55.0 0.0 15.6 45.9 17.8
Tajikistan 31.7 76.3 29.6 28.1 34.2 46.4 16.6 26.4 21.0 31.7 50.0 25.0 40.3 8.4 0.0 47.7
Ukraine 31.1 14.9 38.3 41.4 12.2 63.9 50.5 34.7 30.0 57.8 35.0 20.0 0.0 8.4 37.6 74.1
Mozambique 28.8 9.0 32.9 35.9 29.0 16.6 42.1 29.6 25.0 23.3 40.0 10.0 40.3 24.5 21.6 62.1
Iraq 28.7 95.7 24.7 27.5 4.4 50.6 29.8 16.0 18.0 6.7 30.0 30.0 40.3 12.5 11.1 64.9
Venezuela 20.3 77.2 0.0 0.0 0.0 50.0 0.0 0.0 0.0 0.0 40.0 55.0 0.0 89.9 2.8 34.4
ENVIRONMENT SOCIAL GOVERNANCE
LEGAL ECONOMIC
24
For Professional Client Use Only
Example: Brazil vs. Turkey Credit: Macroeconomic Assessment
Leverage and cyclical factors determine macroeconomic performance
1
23 4
Ad hoc update from Kaan Nazli
MACROECONOMIC SCORE ASSESSMENTS (2002-2018)
2017 SCORES IN INDIVIDUAL CATEGORY
_______________________Source: Neuberger Berman. For illustrative purposes only.As of 2018.
• The adjustment in the current account and return to growth have pushed Brazil's macroeconomic
scores back to over those of Turkey
• Brazil’s strong reserve position and relatively low external debt ratios make the country better
positioned to cope with the normalization of Fed policy
• Current account has improved in Turkey thanks to oil prices; however still lags due to strong
import compression in Brazil
• Brazil still underperforms Turkey in GDP growth, fiscal balances and public debt ratios
• Central Bank of Brazil has made headway in fighting inflation while Central Bank of Turkey faces
increased political pressure to keep rates low
0
10
20
30
40
50
60
70
200220032004 2005 2006 20072008 2009 2010 20112012 2013 2014 20152016 2017 2018
Brazil Turkey
0
50
100
Real GDPgrowth
CPI Inflation
Fiscal Balance:% GDP
Current AccountBalance: %
GDP
External Debt:% GDP
Reserves -Import Coverage
Short-term Debt:% Reserves
Public Debt: %Revenues
Brazil Turkey
25
For Professional Client Use Only
1
23 4
Example: Brazil vs. Turkey Credit: ESG Assessment
Source: Neuberger Berman, EMD Country Credit Model scores. Scores are from 0 (weak) -100 (strong) for each category. Latest ESG assessments, as of April 23,
2018. Upper chart: Selected ESG indicators. Lower chart: Total 2018 ESG score.
For Illustration Purposes Only.
• Turkey lags Brazil in ESG metrics
as political stability and security
have worsened in recent years, as
demonstrated by the July 2016
coup attempt.
• The state of emergency introduced
after the coup attempt is likely to
stay until the 2019 elections, which
combined with the new powers for
the chief executive approved at a
controversial referendum in 2017,
raises further concerns over
independence of the judiciary and
media freedom.
• Brazil’s anti-corruption agenda is a
relative credit strength to Turkey
even as the political crisis
stemming from the carwash (“lavo
jato”) scandal has been
destabilizing and continues to block
the economic agenda.
• ESG metrics give Turkey an edge
on human development, regulatory
quality and government
effectiveness, while its large
current account deficit forced an
improvement in energy intensity in
Turkey.
0 10 20 30 40 50 60 70 80 90 100
Energy Intensity
Government Effectiveness
Regulatory Quality
Political Stability & Security
Human Development
Voice and Accountability
Rule of Law
Corruption
Ease of Doing Business
Turkey Brazil
0
10
20
30
40
50
60
70
80
Chi
le
Sou
th K
orea
Pol
and
Hun
gary
Arg
entin
a
Mex
ico
Col
ombi
a
Indo
nesi
a
Sou
th A
fric
a
Phi
lippi
nes
Tha
iland
Bra
zil
Indi
a
Tur
key
Rus
sia
Leba
non
Egy
pt
Nig
eria
Ukr
aine
Ven
ezue
la
26
For Professional Client Use OnlyAdhoc Update from Kaan Nazli
EMBI
LAT
AR
BZ
BM
BO
BR
CLCO
CR DO
EC
SV
GT
HNJM
MXPA
PY
PE
SR
TT
UY
VE
EUR
AM
AZBY
BGHR
CZ
GE
HU KZ
LV LTPLRO
RUCS
SKSI
TR
UA
AFR
AO
CM
CI
EG
ETGA
GH
KE
MA
MZ
NA
NGRW
SN
ZA TZ
TN
ZM
MID BH
IQ
IL
JO
KW
LBOM
QA
SA
AE
ASIA
CNIN
ID
MY
MNPK
PH
KR
LK
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
15253545556575
Co
un
try
Sp
read
Neuberger Berman Credit Score
Hard Currency: Bottom up Analysis
1
23 4
Country Credit Analysis
_______________________Source: Neuberger Berman. As of April 12, 2017. For illustrative purposes only.
above the line indicating
bonds are cheap
below the line indicating
bonds are expensive
1,500
2,000
2,500
3,000
27
For Professional Client Use Only
Hard Currency: Bottom up Analysis
1
23 4
Instrument Analysis
Identifying the most
attractive instruments
in each country
Yield curve analysis: Identify most attractive issues on each issuer curve
Liquidity analysis: Assess liquidity using in-house Liquidity Model
Specific situations: Structured notes, recovery values in default situations, GDP Warrants
Spread development trackers - Relative value analysis using monitoring tools:
_______________________Source: JPMorgan, as of September 9, 2015. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
• Risk premium on Hungarian EUR vs USD bonds has varied
substantially over the cycle, with EUR bonds becoming less
attractive recently as ECB QE led to massive demand for EUR
denominated fixed income
HUNGARY EUR BOND VS USD BOND
• Substantial spread widening YTD between ’21 and ’19 bonds in
the recent Brazil sell-off as shorter duration paper more often held
by buy and hold investors, leading to relative value opportunities
BRAZIL: 2021 VS 2019 BOND
28
For Professional Client Use Only
Liquidity Management
1
23 4
Portfolio Liquidity Management
• Each bond is assigned an Issue Liquidity Rating - based on 10 factors
• The Ratings lead to:
– A measure of Total Portfolio Liquidity relative to Benchmark
– An overview of exposure concentration per liquidity bucket
WHAT WE CAPTURE HOW WE MEASURE WEIGHT
Characteristics • Potential trade sizes and investor familiarity with the issue
• Potential trade sizes and investor familiarity with the issuer
• Familiarity and natural demand from benchmark investors
• Issue size outstanding
• Issuer size
• Benchmark inclusion45%
Market Data
• Risk level of the security
• Cost of trading
• Breadth of active buy-side parties
• Breadth of active sell-side parties
• Trading volumes
• Spread over US Treasuries
• Bid-offer spread
• Number of reporting holders of the security
• Number of price-quoting sell-side parties
• Trading volume indication from MarketAxess
55%
100%
PENALTY FACTORS
Ownership Concentration• Concentration risk in major holder
• Neuberger Berman holding
• Percentage of the issue with largest reporting holder
• Percentage of the issue with Neuberger Berman-40%
_______________________For illustrative purposes only. This material is intended as a broad overview of the portfolio management team’s current style, philosophy and process. Subject to change. See Additional Disclosures.
29
For Professional Client Use Only
Corporates: Bottom up Analysis
In-house Corporate Analysis Process results in Investment Case for every credit in the portfolio
1
23 4
Relative Value
Analysis
Investment Case
• FCF Analysis
• Debt metrics
• Covenants
• Management quality
Analyst recommendation from 1
(positive) to 4 (negative)
• Stress Liquidity Test
• Probability of Default Model
• Exclusion Criteria
• ESG Score per issuer
• Relative Value vs. Peers
• Relative Value along issuer Curve
NB Risk
Rating
ESG
Analysis
Fundamental
Analysis
Stress
Testing
_______________________For illustrative purposes only. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
30
For Professional Client Use Only
Corporates: Investment Case
Updates from Nish Popat (ad hoc)
Stress
Liquidity Test
NB Risk Rating
Bottom-up credit
analysis and view
Outstanding Notes
& Relative Value
Environmental, Social
and Governance
Final Analyst
Recommendations
_______________________The above sample report is intended to demonstrate the portfolio management team’s research capabilities and is not intended to recommend any particular investment.
1
23 4
31
For Professional Client Use Only
1
23 4
Sovereign Investment Case Sample
Emerging Markets Debt
Hard Currency
Analyst Name
10-Jul-14
RATING OUTLOOKIssuer Ticker (Ticker) EMBIGD % Spread 544 S&P B NEGCountry (Country) EMBIGD SprDurW Spread Diff 264 MOODY'S B2 NEGNB Country Score 36.2 EMD_HC SprDurW Target Diff FITCH B NEG
Issuance ($ million) M/M Debt Repayments (Local and External) M/M (External)
Gross Issuance Forecast 1500 Jan Jan 0
2014 Cash Flow 124 Feb Feb 39
Net Issuance -1376 Mar Mar 0
Actual Issuance 0 Apr Apr 23
Remaining Gross Issuance 1500 May May 0
% of Gross Done 0 Jun Jun 0
% of Gross Remaining 100 Jul Jul 0
Aug 1500 Aug 39
Sep Sep 0
Oct Oct 23
Nov Nov 0
Dec Dec 0
Market Positioning
Signif Overwt % 1 Size Weighted Score -2.7 Size Weighted Score Dedicated Respondents -3 Survey Date:
Overwt % 11 Size Weighted Score Ch 0.1 Assets $bn Dedicated Respondents 474 19-Jun-14
Neutral % 42 No of Respondents 73 Size Weighted Score Crossover Respondents -5.1
Underwt % 36 Assets $bn 549 Assets $bn Crossover Respondents 33
Signif Underwt % 10 Size Weighted Score Leveraged Respondents 1.5
Assets $bn Leveraged Respondents 39
CCM Data & Scores
Data 2011 2012 2013 2014 2015 15.0 7.9 5.4 4.8 5.4
39 40 46 40 39
24.3 24.9 25.6 26.2 26.9
8.6 8.8 13.6 11.8 10.8
-4.2 -12.0 -10.9 -10.0 -8.4
1,594 1,622 1,782 1,539 1,434
-9.0 -11.8 -12.6 -7.6 -8.2
29.2 30.8 25.5 35.2 43.6
3.0 2.5 2.9 2.8 3.2
54.0 51.1 50.6 74.6 73.6
43.4 51.4 52.8 59.3 62.0
220.2 265.3 313.7 302.8 315.5
14.1 13.2 12.0 12.0 12.0
8.0 8.6 8.6 8.6 8.6
39.4 31.6 29.1 27.9 28.5
49.0 51.2 47.8 48.3 48.2
43.3 39.5 36.5 36.1 36.3
Key Developments
Budget Balance (% GDP)
0.5%0.020.00
(Country)
(Country)'s macro outlook is subject to significant risks. Growth has slowed visibly in 2013-4 as high interest rates and weaker (currency) are compressing domestic demand. The economy's twin
deficits and high financing needs leave it vulnerable to a deterioration in external conditions.
Real GDP Growth (%)
Nominal GDP (US$ bn)
Population (million)
CPI Inflation (year-end)
GDP per Capita (US$)
Current Account (% GDP)
External Debt (% GDP)
Reserves - Import Coverage
Short-term Debt (% Reserves)
Public Debt (% GDP)
Public Debt (% Revenues)
Non-performing loans (% Total)
Market Capitalization (% GDP)
MACROECONOMIC SCORE
ESG SCORE
COUNTRY SCORE
- Public debt is estimated to have reached 55.4% GDP at Mar-14. Debt interest payments were 27% above target in 5m14. The deterioration will continue unless more expensive domestic debt (c. 47% of total debt) is retired. The 9% 2013 budget target was overrun as will the 8.5% target for 2014. The government moved with steady tariff increases in late 2013 but reversed them in 2Q14. - The trade deficit has narrowed sharply in 5m14 to $157mn with (currency) weakness reducing imports (-17.8%) but exports were also down due to weaker gold prices/volumes and crude volumes. It is unclear whether this can be sustained: oil import demand (-11%) will recover with FX availability through Cocobod/Eurobond issuance.) Non-oil imports fell by 19.7% but with private sector credit growth at 47.2%, signs of an import demand collapse are weak. FX reserves have declined to $4.5bn or 2.5 months of import cover in Jun-14. This figure likely masks the short-term commitments of the Bank of (country) as flagged in the IMF Article 4 report, actual usable FX reserves are likely to be even lower than this. - Electricity challenges, uncertainty around gold prices and production, plateauing oil production, and high borrowing costs has led to weaker GDP growth, with risks to the downside:*The (company) Gas processing plant for electricity production (550MW) is now expected to come on stream only towards end-14 while the Bui hydropower dam that opened in 2013 has suffered delays, currently generating 90MW vs targeted 400MW. Recent investments by the (company) will raise output from the (company) thermal plant to 330 MW by 2015. * News that (company) plans to lay off thousands of worker at its (company) gold mine in (country) and cease underground production for up to 24 months have dented the gold production outlook. * Oil production is likely to stabilize around the current 100,000bpd, with the planned increase to 250,000bpd not taking place until possibly 2022, according to a recent World Bank study. The West Africa Gas Pipeline is still operating at about half capacity.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Bonds 3700.9 1462 555.61 1186.5 194.9 0 60.568 0 0 1022.5
Loans 0 0 149.92 0 0 6.8963 0 0 611.98 0
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
US$
MM
Debt maturities
-14
-12
-10
-8
-6
-4
-2
0
0
50
100
150
200
250
300
350
2011 2012 2013 2014 2015
Key Ratios
Short-term Debt (% Reserves) Public Debt (% Revenues)
Current Account/GDP (right-axis)
NB Country Score
_______________________The above sample report is intended to demonstrate the portfolio management team’s research capabilities and is not intended to recommend any particular investment.
32
For Professional Client Use Only
Hard Currency Strategy Setting and Portfolio Construction
Position for fundamental value in country exposure with additional alpha derived from views in top
down market direction, corporate credit and instrument selection
1
23 4
Top down
analysis
PM views on
HCS, HCC, LB
Relative value
analysis
Country Credit Analysis
Instrument Analysis
Top down Score
Corporate Credit Analysis
Investment Insights
Aim to position for value across alpha sources
by considering:
Portfolio
Construction
Tracking Error Analysis
Risk budgeting of country exposures
Overall portfolio interest and spread duration
Percentage exposure considerations
MODEL
PORTFOLIO
Specific Corporate exposure guidelines
Portfolio Liquidity Control
_______________________For illustrative purposes only. This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice.
33
For Professional Client Use Only
Translating Top-down and Bottom-up views to Portfolio Risk
Portfolio managers are responsible for translating the Top-down Score and Bottom-up country
views into portfolio risk-adjusted positioning
1
23 4
Broad Range
Top Down Score -1.0 to +1.0
Beta range 0.8 to 1.4
Overall spread duration (yrs, relative) -1.5 to +1.5
Corporates allocation 0 – 15%
Cash allocation 0 – 15%
Country View Standalone Risk1
High conviction > 0.3%
Medium conviction 0.15% – 0.3%
Low conviction < 0.15%
_______________________1. Standalone Risk is a measure that isolates the risk from a particular risk factor by combining the exposure and the volatility of that factor, e.g. 2% Brazil bonds o/w with volatility of 13% gives Standalone Risk of 0.26%. This measure is relatively light on assumptions – while the historical volatility of the position is used in the calculation, the historical correlation with the rest of the portfolio is not used. As a result this measure illustrates the tracking error contribution of a country position in case a risk event occurs where all correlations between countries go to one.
TOP-DOWN BOTTOM-UP
The top down score on hard currency spreads drives the overall
systematic risk of the portfolio versus benchmarkIndividual country position sizing is dependent on conviction levels
and the Standalone Risk contribution of the position.
34
For Professional Client Use Only
Hard Currency: Risk Report
Data from PAR Team (Konstantinos Lamas)
Change the Bps columns in the excel to Zero decimal place before pasting in
Kazakhstan is always missing the ‘h’ in the PAR report – needs to be manually added
1
23 4
_______________________Source: BlackRock Aladdin. Please note: different treatment of defaulted bonds in portfolio characteristic calculations causes discrepancies between the index provider and our 3rd party portfolio analytics system. Performance is not impacted by these differences, however performance attribution will show discrepancies due to the treatment of the defaulted bonds.
TOP 10 COUNTRY CONTRIBUTORS TO ACTIVE RISK
BOTTOM 10 COUNTRY CONTRIBUTORS TO ACTIVE RISK
35
As of September 30, 2018
Net Market Weight (%
MV)
Spread Duration
(OASD) Active
Stand-alone Risk (bps
per year)Risk Concentration Factor
Total Tracking Error (bps
per year)
Contribution to Active
Risk %
Argentina 2.51 0.26 99 0.85 84 40.84
Turkey 2.37 0.15 37 0.69 25 12.33
Ivory Coast 2.85 0.18 34 0.70 24 11.64
Venezuela 0.47 0.05 42 0.39 16 7.96
Croatia 1.62 0.18 28 0.55 15 7.54
Ghana 1.40 0.11 18 0.67 12 5.78
Mexico 0.33 0.25 27 0.42 12 5.65
Egypt -0.41 0.04 15 0.72 11 5.15
Costa Rica 0.38 0.08 16 0.62 10 4.72
Oman -0.21 0.07 16 0.54 9 4.33
Net Market Weight (%
MV)
Spread Duration
(OASD) Active
Stand-alone Risk (bps
per year)Risk Concentration Factor
Total Tracking Error (bps
per year)
Contribution to Active
Risk %
Lebanon -1.93 -0.08 23 -0.38 -9 -4.19
Ecuador -1.53 -0.06 16 -0.54 -8 -4.11
Pakistan -1.14 -0.05 7 -0.54 -4 -1.94
Iraq -0.68 -0.03 6 -0.64 -4 -1.80
Uruguay -2.12 -0.23 13 -0.23 -3 -1.46
Dominican Republic -1.70 -0.10 8 -0.37 -3 -1.43
Senegal -0.38 -0.04 6 -0.52 -3 -1.41
Gabon -0.40 -0.02 4 -0.67 -3 -1.30
El Salvador -0.74 -0.05 7 -0.39 -3 -1.26
Zambia -0.18 -0.01 4 -0.55 -2 -0.95
Total 205 205
For Professional Client Use Only
Portfolio Turnover
CALENDAR YEAR TURNOVER % (ONE WAY)
2013 (from 1 June) 62%
2014 62%
2015 92%
2016 78%
2017 46%
_______________________Source: Neuberger Berman, as of December 31, 2017. Based on the representative account for the NB EMD Hard Currency Strategy.
Medium-term focused fundamental investment style results in moderate portfolio turnover
36
For Professional Client Use Only
Sell Discipline - Examples
-0.06
-0.04
-0.02
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0
100
200
300
400
500
600
May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17
Spread (bps): Ecuador vs index (LHS) Ecuador Active Spread Duration Position
Example #1 - Ecuador
- Overweight going into 2016 on very attractive spreads vs. comparable
oil names, some progress on policies to adjust to lower oil prices
regime
- Oct 2016: reduced OW as part of portfolio risk reduction
- Dec 2016: reduced OW on tighter spreads, upcoming elections to
drive pickup in volatility
- Mar 2017: from OW to Neutral, as spreads fully recovered from oil
sell-off, tight election race, mounting fundamental challenges
- May 2017: from Neutral to UW; on increasing financing requirements,
political risks, oil price pressure
Example #2 - Angola
- Jul 2016: increased OW as spreads more than compensate for risks
related to oil prices and financing challenges; Even at current oil
prices, Angola’s private and public sector remain external net creditor
- Oct 2016: OW to Neutral as leverage is building, posing risks to net
creditor status
- Nov 2016: Neutral to UW: Fiscal balances and reserve positions
deteriorating, public sector increasingly leveraged. No sizeable policy
adjustment expected ahead of Aug 2017 elections
-0.03
-0.02
-0.01
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0
100
200
300
400
500
600
May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17
Spread (bps): Angola vs index (LHS) Angola Active Spread Duration Position
37
For Professional Client Use Only
Hard Currency: Portfolio1
23 4
Updated monthly via: Balckrock Aladdin Prism Report – Camille Florentin.
QUALITY BREAKDOWN (MV%)
KEY CHARACTERISTICS
_______________________Source: BlackRock Aladdin. Benchmark: JP Morgan EMBI GD Index. Please note: different treatment of defaulted bonds in portfolio characteristic calculations causes discrepancies between the index provider and our 3rd party portfolio analytics system. Performance is not impacted by these differences, however performance attribution will show discrepancies due to the treatment of the defaulted bonds.
ASSET ALLOCATION BREAKDOWN (MV%)
COUNTRY BREAKDOWN (MV%)
38
As of September 30, 2018
Portfolio Benchmark Active
Effective Duration (Yrs) 6.81 6.82 -0.01
Maturity (Yrs) 13.77 11.17 2.60
Current Yield (%) 6.12 6.12 0.01
Yield to Maturity (%) 6.82 5.71 1.11
Spread (Bps) 376 266 111
Spread Duration (Yrs) 7.12 6.78 0.34
Moody Rating Ba2 Ba1
S&P Rating BB BB
Number of Holdings 276 666 -390
Portfolio Benchmark
Sovereign 63.36 78.80
Quasi Sovereign 19.13 21.20
Sub Sovereign 0.22
Supranational 0.20
Corporates 9.53
Other (incl. Cash) 7.55
0% 20% 40% 60%
High Yield
Investment Grade
Portfolio Benchmark
01234567
Tur
key
Mex
ico
Arg
entin
a
Bra
zil
Chi
na
Aze
rbai
jan
Ivor
y C
oast
Sri
Lank
a
Cro
atia
Indo
nesi
a
Sou
th A
fric
a
Ser
bia
Ukr
aine
Kaz
akhs
tan
Rus
sia
Om
an
Gha
na
Egy
pt
Nig
eria
Mon
golia
Per
u
Col
ombi
a
Ber
mud
a
Pan
ama
Ven
ezue
la
Hun
gary
Cos
ta R
ica
Ecu
ador
Sau
di A
rabi
a
Qat
ar
Dom
. Rep
ublic
UA
E
Rom
ania
Chi
le
Ang
ola
Mal
aysi
a
Tun
isia
Sou
th K
orea
Par
agua
y
Ken
ya
Jam
aica
El S
alva
dor
Uru
guay
Leba
non
Bel
arus
Zam
bia
Indi
a
Sup
rana
tiona
l
Mon
tene
gro
Isra
el
Jord
an
Hon
dura
s
Pap
ua N
ew G
uine
a
Sen
egal
Bel
ize
Arm
enia
Gua
tem
ala
Portfolio Benchmark
For Professional Client Use Only
Country Weightings & Exposures
1
23 4
_________________________Source: Blackrock Aladdin. This supplemental report is provided for informational purposes only; please refer to your account statement(s) or other statement provided by your custodian for the official records of your account(s). Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results. See Additional Disclosures at the end of this presentation. Please note: different treatment of defaulted bonds in portfolio characteristic calculations causes discrepancies between the index provider and our 3rd party portfolio analytics system. Performance is not impacted by these differences, however performance attribution will show discrepancies due to the treatment of the defaulted bonds.
39
As of September 30, 2018
Market Value (%)
Country Portfolio Benchmark Variance
Top 10
Ivory Coast 3.67 0.82 2.85
Azerbaijan 3.74 1.17 2.56
Argentina 5.45 2.93 2.51
Serbia 3.17 0.70 2.47
Turkey 5.82 3.45 2.37
Bermuda 1.63 0.00 1.63
Croatia 3.24 1.63 1.62
Ghana 2.18 0.78 1.40
Sri Lanka 3.36 2.01 1.35
Mongolia 1.99 0.67 1.31
Bottom 10
Philippines 0.00 3.26 -3.26
Uruguay 0.38 2.50 -2.12
Poland 0.00 2.08 -2.08
Chile 0.80 2.77 -1.96
Lebanon 0.35 2.28 -1.93
Malaysia 0.75 2.59 -1.84
Dominican Republic 0.96 2.66 -1.70
Ecuador 1.13 2.66 -1.53
Panama 1.54 2.88 -1.34
Hungary 1.49 2.70 -1.21
Contribution to Duration
Country Portfolio Benchmark Variance
Top 10
Argentina 0.46 0.20 0.26
Mexico 0.71 0.46 0.25
Ivory Coast 0.23 0.05 0.18
Croatia 0.23 0.05 0.18
Turkey 0.39 0.24 0.15
Azerbaijan 0.22 0.08 0.15
Qatar 0.11 0.00 0.11
Ghana 0.16 0.05 0.11
Sri Lanka 0.20 0.10 0.10
Bermuda 0.09 0.00 0.09
Bottom 10
Philippines 0.00 0.29 -0.29
Uruguay 0.06 0.29 -0.23
Chile 0.07 0.25 -0.18
Malaysia 0.03 0.16 -0.14
Panama 0.14 0.25 -0.11
Peru 0.18 0.29 -0.11
Dominican Republic 0.10 0.20 -0.10
Poland 0.00 0.08 -0.08
Lebanon 0.02 0.11 -0.08
Ecuador 0.06 0.12 -0.06
For Professional Client Use Only
Main Country Exposure Changes – Last 3 Months
1
23 4
ACTIVE DURATION CONTRIBUTION (YRS)ACTIVE MARKET VALUE (%)
_________________________Source: Blackrock Aladdin. This supplemental report is provided for informational purposes only; please refer to your account statement(s) or other statement provided by your custodian for the official records of your account(s). Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results. See Additional Disclosures at the end of this presentation. Please note: different treatment of defaulted bonds in portfolio characteristic calculations causes discrepancies between the index provider and our 3rd party portfolio analytics system. Performance is not impacted by these differences, however performance attribution will show discrepancies due to the treatment of the defaulted bonds.
40
As of September 30, 2018
-0.07
-0.05
-0.04
-0.04
-0.03
-0.03
-0.03
-0.02
-0.02
-0.02
0.01
0.01
0.01
0.01
0.02
0.04
0.04
0.04
0.04
0.05
-0.20 -0.15 -0.10 -0.05 0.00 0.05 0.10 0.15 0.20
Indonesia
Colombia
Paraguay
Romania
Costa Rica
Mexico
Jordan
Croatia
Kenya
El Salvador
Qatar
Hong Kong
Bermuda
Ecuador
Panama
Brazil
South Africa
Saudi Arabia
Dominican Republic
Ukraine
-0.53
-0.45
-0.41
-0.37
-0.33
-0.32
-0.32
-0.29
-0.29
-0.23
0.14
0.14
0.17
0.19
0.34
0.40
0.60
0.60
0.72
1.04
-2.00 -1.50 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00
Indonesia
Jordan
Colombia
Mexico
Angola
Kenya
Paraguay
Romania
Croatia
El Salvador
Bermuda
Cote D'Ivoire
Turkey
Trinidad and Tobago
Russian Federation
Dominican Republic
Brazil
Saudi Arabia
South Africa
Ukraine
For Professional Client Use Only
Hard Currency: 2018 Attribution YTD
1
23 4
Attribution report from PAR – YTD tab
Change all Bps values in PAR report (last 3 columns) to 0 decimal place before pasting into the ppt
FACTOR CONTRIBUTION (bps)
_______________________Source: Blackrock Aladdin. Past performance is not indicative of future returns. Figures are quoted in US Dollars and are gross of fees. Benchmark: JP Morgan EMBI GD Index
TOP 10 COUNTRY ACTIVE CONTRIBUTIONS BOTTOM 10 COUNTRY ACTIVE CONTRIBUTIONS
41
As of September 30, 2018
Yield Curve 6
Spread Duration Exposure Effect -29
Country Allocation -44
Security Selection 40
Residuals (pricing, trading effect, fees) -5
Total -32
Average Weight
(% MV)
Spread
Duration
Contribution Outperformance (bps)
Country Port B/M Active
Country
Allocation
Effect
Instrument
Selection
Effect
Total
Effect
Lebanon 0.4 2.5 -0.09 14 0 14
Azerbaijan 3.7 1.2 0.15 11 2 13
Mexico 5.6 5.2 0.24 4 4 8
Qatar 0.7 0.0 0.07 8 0 8
Oman 2.4 2.6 0.07 5 2 8
Croatia 3.8 1.6 0.21 7 0 7
Zambia 0.4 0.5 0.00 4 2 7
Brazil 3.7 3.2 -0.01 1 5 6
Ecuador 0.9 2.6 -0.08 6 0 6
UAE 1.0 0.0 0.10 4 0 4
Average
Weight (% MV)
Spread
Duration
Contribution Outperformance (bps)
Country Port B/M Active
Country
Allocation
Effect
Instrument
Selection
Effect
Total
Effect
Argentina 5.8 3.2 0.27 -51 15 -36
China 3.8 4.4 -0.04 -1 -9 -10
Russia 2.4 3.6 -0.02 -1 -9 -9
Costa Rica 1.6 1.1 0.10 -5 -2 -7
Philippines 0.0 3.3 -0.28 -7 0 -7
Uruguay 0.5 2.3 -0.18 -5 0 -5
Venezuela 1.5 1.1 0.04 -30 25 -5
Peru 2.1 2.9 -0.10 -3 -1 -5
Turkey 5.4 3.6 0.11 -5 1 -4
Bahrain 0.5 0.0 0.04 -3 0 -3
WHY INVEST IN EMERGING MARKETS DEBT
For Professional Client Use Only
Four Main Sub-Asset Classes
Credit risk dominant
Benefit from carry
Benefit from improving credit risk trends of both government and
corporate issuers (decline in spreads)
HC Sovereign HC Corporate
EMD HARD CURRENCY
FX and interest rate risk dominant
Benefit from carry
Benefit from appreciating currencies
Benefit from declining local interest rates
EM FX (Currency) LC Bonds
EMD LOCAL CURRENCY
Information is on this page represents historical observations about the sub-asset classes and is not intended to represent or predict future events.
43
For Professional Client Use Only
_______________________1. Source: BIS and Bank of America Merrill Lynch, as of December 31, 2017. Information is on this page represents historical observations and is not intended to represent or predict future events.
We believe investors are underexposed to the asset class
SIZABLE
Growing asset class. Total EMD market now
nearly $25 trillion1. Acceleration of new issues
from countries and corporations
INEFFICIENT
Under-researched/reported universe creates
additional alpha potential. Capital constraints
and strong home bias create alpha
opportunities
DIVERSIFICATION
Dozens of countries, currencies, yield curves,
industry sectors, and issuers across all credit
rating buckets
FUNDAMENTALS
We believe most sovereigns are well
equipped to withstand cyclical headwinds
relying on sound balance sheets, flexible
currency regimes, better managed fiscal
accounts and expanded funding sources
YIELD
Yield advantage potential over developed
markets bonds
FX APPRECIATION
Emerging markets foreign exchange (FX)
holds potential opportunities for revaluation
Rationale for Investing in Emerging Markets Debt
44
For Professional Client Use Only
Emerging Economies – A Major Share of the World1
Understanding The Emerging Markets Landscape
Emerging Economies as % of Total World
Comparison with developed credit markets (market cap in USD trillions)
Emerging Markets Debt – A Limited Share and Underrepresented in/the Global Bond Market2
19.4%
22.4%
36.1%
53.0%
62.2%
73.0%
83.8%
80.6%
77.6%
63.9%
47.0%
37.8%
27.0%
16.2%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Debt Market Cap
Equity Market Cap (Float Adjusted)
GDP at Market Rates
GDP at PPP
Foreign Exchange Reserves
Land Mass
Population
Emerging Markets Developed Markets
45
_______________________1. Source: World Bank (Population, Land Mass, GDP at PPP , GDP at Market Rates, EME Market Cap as of 2015), IMF (FX reserves as of 2014), EMD figure: BAML, BIS, As of December 2017.2. Source: JPMorgan. As of September 30, 2018. Historical trends do not imply, forecast or guarantee future results.
2.2
1.0 0.9
5.65.8
0.60.1
0
1
2
3
4
5
6
7
EM Local Market EM Credit EM External Sovereigns U.S. Mortgage BackedSecurities
U.S. Investment GradeCredit
U.S. High Yield U.S. Agencies
For Professional Client Use Only
Stronger Real GDP Growth in Emerging Markets
_______________________Source: IMF World Economic Outlook, April 2018. Historical trends do not imply, forecast or predict future results.F=Forecast.
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018F
Differential Advanced economies Emerging market and developing economies
GDP (%)
46
For Professional Client Use Only
EM Fundamentals Still Strong
Update from Lei Wan
Improved debt sustainability and credit quality
GENERAL GOVERNMENT DEBT AS A PERCENTAGE OF GDP1
As of April 2018
_______________________1. Source: IMF World Economic Outlook (WEO); Neuberger Berman. Historical trends do not imply, forecast or guarantee future results. 2. Source: JP Morgan. F: Neuberger Berman Forecast
0
20
40
60
80
100
120
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
E
2018
F
Advanced economies Emerging market and developing economies
47
PERCENTAGE OF EMBIG MARKET CAPITALIZATION BY RATING SEGMENTS2
As of September 30, 2018
Investment
Grade: 50.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan-98 Nov-99 Sep-01 Jul-03 May-05 Mar-07 Jan-09 Nov-10 Sep-12 Jul-14 May-16 Mar-18
HY
IG
For Professional Client Use Only
EMD Tradable Debt Universe and SizeEMD Tradable Debt Universe and Size
Total market nearly 25 trillion USD
EMD Local Currency (LC) represents majority of market share
Growing corporate component in Hard Currency (HC)
Corporate names increasingly issue debt
Growth potential in EMD LC
_______________________Source: BofA Merrill Lynch Global Research, BIS, Bloomberg. As of December 31, 2017.Historical trends do not imply, forecast or guarantee future results.
DOMESTIC DEBT MAKES UP 86% OF TOTAL EMD($ billions)
5%$1,198
9%$2,349
43%$10,557
43%$10,644
Sovereign HC Corporate HC Sovereign LC Corporate LC
48
For Professional Client Use Only
Update from Lei Wan
EMD: Asset Class Growth Trends
JP Morgan EM fixed income indices have more than tripled since 2008
Average Annual
Growth: 2003-2017
• Since 2003, HC Corporate and LC Debt annual asset class growth rates, proxied by increase in market cap of JPMorgan benchmarks have outpaced
growth in HC Sovereign
• Across asset class: Debt issuance is shifting from HC to LC backed by emerging markets’ transition from debtor to creditor nation status
• Within HC: Debt issuance is shifting towards Corporate from Sovereign as credit quality of sovereign universe improves and companies profit from lower
credit risk premiums
• Within LC: Debt issuance is shifting towards longer duration on enhanced financial intermediation and better institutional infrastructure
49
27%
11%
20%
_______________________Source: JP Morgan. EMD HC Sovereign benchmark – JP Morgan EMBI Global Index; EMD HC Corporate benchmark – JP Morgan CEMBI Broad Index; EMD LC Bond benchmark – JP Morgan GBI-EM Broad Index. As of September 30, 2018. Historical trends do not imply, forecast or guarantee future results.
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018YTD
Corporates
Hard Currency
Local Currency
For Professional Client Use Only
Benchmark Funds Are Biased Towards
Diversified Indices:
Evolution of Dedicated AUM per EMD Sub-Asset Class
JP Morgan – EMD Indices ($ millions) July 2018 2017 2016 2015 2014 2013
Local Market Debt 231,906 228,344 205,735 202,490 216,706 216,827
GBI-EM Global Div 211,131 208,417 185,538 181,183 191,402 196,672
GBI-EM Div 11,917 10,467 9,767 9,167 9,292 8,455
GBI-EM Broad Div 2,218 1,420 2,290 4,000 7,672 3,760
GBI-EM 6,640 8,040 8,140 8,140 8,340 7,940
GBI-EM Global/Broad - - - - - -
External Debt USD 364,197 360,642 317,645 296,912 300,650 292,833
EMBI Global Diversified 305,022 303,127 264,576 243,941 241,733 225,626
EMBI Global 57,870 55,620 52,100 52,300 56,922 66,747
EMBI+ 1,305 1,895 969 671 1,995 460
Corporate External Debt 100,147 93,033 80,675 78,141 73,547 62,752
CEMBI Broad Diversified 67,401 61,409 54,204 52,111 49,309 40,011
CEMBI Diversified 26,078 24,024 20,470 18,902 19,221 16,535
CEMBI Broad 4,147 4,370 3,510 4,537 4,226 5,415
CEMBI 2,521 3,230 2,491 2,591 791 791
Local Currency Money Market
ELMI+ 27,217 26,182 20,371 19,041 22,397 24,847
Total AUM managed against EM indices 723,467 708,201 624,426 596,584 613,300 597,259
_______________________Source: JP Morgan Emerging Markets Research. As of July 31, 2017.The above information is based upon the indices as identified above. Please see the Disclosure Section of this book for a complete description of each index. Actual investment results will vary. It is not possible to invest directly in any index. Past performance is not necessarily indicative of future results. As with any investment, there is the possibility of profit as well as the risk of loss. * Total may not equal 100% owing to rounding.
• 91% of local debt assets benchmarked
against GBI-EM Global Diversified
• 84% of external sovereign assets
benchmarked against EMBI Global
Diversified
• 93% of external corporate assets
benchmarked against CEMBI (Broad)
Diversified
50
For Professional Client Use Only
Review of EMD Sub-Asset Classes
Lei Wan can provide update
Regional Composition (%)
_______________________ Source: JP Morgan, HSBC. As of August 31, 2018.The above information is based upon the indices as identified above. Please see the Disclosure Section of this book for a complete description of each index. Actual investment results will vary. It is not possible to invest directly in any index. Past performance is not necessarily indicative of future results. As with any investment, there is the possibility of profit as well as the risk of loss.
HC SOVEREIGN HC CORPORATE LOCAL CURRENCY
BenchmarkEmerging Market Bond Index Global Diversified
(EMBI GD)
Corporate EM Bond Index
(CEMBI Diversified)
Government Bond Index
(GBI-EM GD)
Benchmark DescriptionUSD-denominated debt of Sovereign/Quasi-
Sovereign issuers
USD-denominated debt issued by corporate
entities
Liquid, fixed-rate local currency debt of
Sovereign issuers
Currency Denomination USD USD LC
Average RatingBa1/BB+ Baa3/BBB- Baa2/BBB
(Moody’s/S&P)
Benchmark Characteristics
Countries 67 40 19
Yield (%) 6.6 5.9 6.6
Duration (years) 6.8 4.5 5.1
19.6
24.4
36.9
19.1
35.0
12.1
28.3
24.622.9
33.6 34.7
8.8
0
5
10
15
20
25
30
35
40
Asia Europe Latin America Middle East/Africa
Hard Currency Corporates Local Currency
51
For Professional Client Use Only
Differentiated Returns within the Asset Class
EMD Returns Vary Significantly
2018 YTD
Allocating across the asset class offers diversified and complete EMD exposure
52
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Local
Currency
15.2%
Hard
Currency
9.9%
Corporates
6.6%
2017
Local
Currency
18.1%
Local
Currency
-5.2%
Corporates
38.6%
Local
Currency
15.7%
Hard
Currency
7.3%
Hard
Currency
1.2%
Local
Currency
15.2%
Hard
Currency
17.4%
Corporates
-1.7%
Hard
Currency
7.4%
Corporates
10.5%
Hard
Currency
6.2%
Corporates
3.5%
Hard
Currency
-12.0%
Corporates
-15.4%
Hard
Currency
29.8%
Local
Currency
22.0%
Corporates
13.5%
Hard
Currency
12.2%
Corporates
3.2%
Local
Currency
-1.8%
Corporates
17.0%
Local
Currency
16.8%
Hard
Currency
-5.3%
Local
Currency
-9.0%
Corporates
5.7%
Local
Currency
-5.7%
Corporates
1.2%
Local
Currency
-14.9%
Hard
Currency
10.2%
Local
Currency
9.9%
Hard
Currency
10.3%
Corporates
7.9%
Corporates
-2.2%
Local
Currency
-10.7%
Hard
Currency
-4.1%
_______________________Source: JP Morgan: Hard Currency (JP Morgan EMBI GD Index); Local Currency (JP Morgan GBI-EM GD Index ); Corporates (JP Morgan CEMBI Diversified Index). Information is as of September 30, 2018 and subject to change without notice.
For Professional Client Use Only
Emerging Markets Debt – Its Role in Today’s Fixed Income Portfolio
Demonstrated attractive risk-reward dynamics and diversification benefits over time
1. Source: JP Morgan. JPM EMBI Global Diversified (EMD Hard Currency), JPM CEMBI Diversified (EMD Corporate), JPM GBI-EM Global Diversified (EMD Local Currency), 50% JPM EMBI Global Diversified 1-3yr, 50% JPM CEMBI Diversified 1-3yr (EMD Short Duration), EMD Blend (25 EMD HC/25 EMD Corp/50 EMD LC), Barclays US Agg Corporate Index (U.S. IG Corporates), Credit Suisse Leveraged Loan (Leveraged Loan CS), Barclays Global Agg Total Return Index Unhedged (Global Agg ), Unhedged Barclays US Corporate HY (U.S. HY Corp), and United States Benchmark 10 Year Datastream Government Index(U.S. Treasury). The above information is based upon the indices as identified above. Please see the Disclosure Section of this book for a complete description of each index. Actual investment results will vary. It is not possible to invest directly in any index.
2. Source: Bloomberg, JPMorgan. Past performance is not necessarily indicative of future results. As with any investment, there is the possibility of profit as well as the risk of loss.
53
EMD Blend
EMD Hard Currency
EMD CorporatesEMD Local Currency
US Corp. HY
Leveraged Loans (CS)
US Agg. Global Agg.
US Corp. IG
UST
EMD Short Duration
US Equities
Emerging Markets
0%
2%
4%
6%
8%
10%
12%
14%
2% 7% 12% 17% 22% 27%
An
nu
aliz
ed R
etu
rn
Annualized Risk
Risk/Return of Asset Classes¹ (January 1, 2003 – September 30, 2018)
Benchmark Performance EMD Hard Currency EMD Corporate EMD Local Currency EMD Blend EMD Short Duration
Annualized Return (%) 8.15 6.93 6.53 7.12 5.95
Annualized Volatility (%) 8.02 8.72 11.81 9.40 3.95
Sharpe Ratio 0.81 0.60 0.41 0.58 1.09
Correlation: U.S. Treasury 0.31 0.29 0.14 0.22 0.09
Correlation: U.S. IG Corp 0.79 0.81 0.54 0.70 0.62
Correlation: U.S. HY Corp 0.74 0.73 0.62 0.71 0.72
Correlation: U.S. Equity 0.53 0.53 0.58 0.60 0.48
Correlation: EM Equity 0.67 0.64 0.79 0.78 0.59
Summary Statistics² (January 1, 2003 – September 30, 2018)
For Professional Client Use Only
Emerging Markets Debt – Its Role in Today’s Fixed Income Portfolio
Access to attractive yields relative to developed markets bonds and a balanced duration profile
_______________________Source: JP Morgan. Benchmarks used are EMD HC (JPM EMBI Global Diversified), EMD LC (JPM GBI-EM Global Diversified), EMD Corporate (JPM CEMBI Diversified), EMD SD (50% JPM EMBI Global Diversified 1-3yr, 50% JPM CEMBI Diversified 1-3yr), US IG Credit (JPM JULI ex-EM), US High Yield (JPM Domestic HY); US Treasury (GBI US), Blend EMD (25 EMD HC/25 EMD Corp/50 EMD LC). The above information is based upon the indices as identified above. Please see the Disclosure Section of this book for a complete description of each index. Actual investment results will vary. It is not possible to invest directly in any index. Past performance is not necessarily indicative of future results. As with any investment, there is the possibility of profit as well as the risk of loss.
54
Yield and Duration (as of September 30, 2018)
US Treasury (10Y)
EMD Short Duration
US IG Credit
EMD Corporate
EMD Hard CurrencyEMD Blend
US High YieldEMD Local Currency
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00
Yie
ld (
%)
Duration (yrs)
For Professional Client Use Only
Breakdown of Historical Benchmark Returns
LOCAL BOND RETURNSHARD CURRENCY SOVEREIGN RETURNS
HARD CURRENCY CORPORATE RETURNS BLENDED EMD BENCHMARK RETURNS
_______________________
Source: JP Morgan, NB calculations. As of December 31, 2018,
-1% -2%5%
12%
-10%3%
10%
1%-9%
5%-1%
-1% -2%
7% 4%-6%
-34%
28%
1%
-9%
10%
-4%
-3%-4%
5% 4% 1%
4% 8% 7%
9%
11%
8%6% 7%
7%5% 6% 6% 6%
1%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018YTD
US 5Y Return Spread Return Carry and residual
-2% -1%5% 9%
-8%3% 6%
1% -6% 2% -1%-1%
-2%
6% 3%-5% -5%
11% 1%
-4%
6%
-2%
4% 3% 2%
6%7% 7%
6%8%
8% 6% 7%
6% 5% 6% 6% 7%
1%-4%
6%11%
-14%
11%
4%
-9%
3%
-9%-13%
-18%
1% 6%4%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018YTD
US 7Y Return LB Spread vs US 7Y return Carry and residual FX Spot Return
-3% -2%
7% 12%
-9%4% 8%
1%-8% 3% -1% -1% 0% -2%
-1%
3%-11%
-38%
31%
4%
-10%
9%
-1% -3% -4%
6%
3% 1%
11% 6%7%
11%
17%
6% 5%7%
7% 6% 6%5%
6% 1%
-50%
-30%
-10%
10%
30%
50%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018YTD
US 7Y Return Spread Return Carry and residual
-2% -2%5%
10%
-9%
3% 7%
1% -7%3% -1% -1% -2%2% 2%
-4%
-18%
15%1%
-5%5%
-1%-1% -2%
3% 2%1%3% 2%
-2%
-3%
5%
1%
-2%
3%
-1%
2%
2%
1%7% 7% 7%8%
11%
7% 6% 7%
7%5%
6%6% 6%
1%
-2%
3%5%
-7%
5%
2%
-5%
1%
-4% -6% -9%
0% 3%
2%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018YTD
UST Credit Spread LB vs UST Carry & Res FX Spot
55
For Professional Client Use Only
EMD Asset Classes React Differently to Global Drivers
ANNUALIZED TOTAL RETURN – US DOLLAR MOVESANNUALIZED TOTAL RETURN – US TREASURY SHIFTS
_________________
Data: Quarterly 2004Q1-2018Q2.
Sources: Bloomberg for US Generic Govt 10 Year Yield, US Generic Govt 5 Year Yield, U.S. Dollar Index. The U.S. Dollar Index(DXY) is an average of the exchange rates between the USD and major world currencies. JP Morgan
for EMBI Glob. Div., CEMBI Div., GBI-EM Glob. Div. HC Short Duration index is 50% EMBI Glob 1-3yr + 50% CEMBI Broad 1-3yr. US Treasury Up and Down regimes are defined by the quarters when US Generic Govt 10 Year Yield
increases or decrease. USD Up and Down regimes are defined by the quarters when the U.S. Dollar Index returns increases or decrease.
0%
5%
10%
15%
EMD HardCurrency
EMD Corporates EMD LocalCurrency
EMD ShortDuration
US Treasury Yield Up US Treasury Yield Down
-10%
-5%
0%
5%
10%
15%
20%
25%
EMD HardCurrency
EMD Corporate EMD LocalCurrency
EMD ShortDuration
USD Up USD Down
56
OUTLOOK
For Professional Client Use Only
Source: Bloomberg
58
HC spreads, EM FX showing some stabilization after selling off more than during the Taper Tantrum
Taper Tantrum: 1 May 2013 – 31 December 2013 Current Conditions: 1 Jan 2018 – 30 September 2018
Markets: ‘Taper Tantrum’ vs Current Conditions
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
250
270
290
310
330
350
370
390
May
-13
May
-13
May
-13
Jun-
13
Jun-
13
Jul-1
3
Jul-1
3
Aug
-13
Aug
-13
Sep
-13
Sep
-13
Oct
-13
Oct
-13
Oct
-13
Nov
-13
Nov
-13
Dec
-13
Dec
-13
EMBIGD Spread (LHS) EM Currencies
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
250
270
290
310
330
350
370
390
Jan-
18
Jan-
18
Feb
-18
Mar
-18
Mar
-18
Apr
-18
May
-18
May
-18
Jun-
18
Jul-1
8
Jul-1
8
Aug
-18
Sep
-18
EMBIGD Spread (LHS) EM Currencies
For Professional Client Use Only 59
EM external balance and policy mix still favorable in aggregate
Source: LHS: Bloomberg, as of 30 September 2018; EM-10: Brazil, Colombia, India, Indonesia, Korea, Mexico, Poland, Russia, South Africa, Turkey. RHS: Bloomberg, as of 30 September 2018. Real Policy Rate data series are calculated as
the policy rate for each country minus the headline inflation rate. The countries included in the EM Real Policy Rate series are all the countries in the GBI-EM GD Index as of 30 September 2018 with the exception of Argentina, Dominican
Republic and Uruguay; The countries included in the EM Real Policy Rate series are weighted based on their weights in the JPMorgan GBI-EM Global Diversified Index as of 30 September 2018.
EM-10 Aggregate Current Account ($Bn) Real Policy Rates: EM vs DM
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
Jan-
14
Apr
-14
Jul-1
4
Oct
-14
Jan-
15
Apr
-15
Jul-1
5
Oct
-15
Jan-
16
Apr
-16
Jul-1
6
Oct
-16
Jan-
17
Apr
-17
Jul-1
7
Oct
-17
Jan-
18
Apr
-18
Jul-1
8
EM Real Policy Rate (GBI-EM GD Weighted)
US Real Policy Rate
Eurozone Real Policy Rate
-250
-200
-150
-100
-50
0
50
Sep
-12
Jan-
13
May
-13
Sep
-13
Jan-
14
May
-14
Sep
-14
Jan-
15
May
-15
Sep
-15
Jan-
16
May
-16
Sep
-16
Jan-
17
May
-17
Sep
-17
Jan-
18
May
-18
Sep
-18
For Professional Client Use Only 60
Current 1m ago 6m ago 12m ago
Emerging markets PMI 50.3 50.8 51.3 51.4
China 50.0 50.6 51.1 51
India 52.2 51.7 51.6 51.2
Indonesia 50.7 51.9 51.6 50.4
South Korea 51.3 49.9 48.4 50.6
Taiwan 50.8 53 54.8 54.2
Malaysia 51.5 51.2 48.6 49.9
Poland 50.5 51.4 53.9 53.7
Czech Republic 53.4 54.9 57.2 56.6
Hungary 53.8 56.0 53.3 59.3
Russia 50.0 48.9 51.3 51.9
Turkey 42.7 46.4 48.9 53.5
South Africa 43.2 43.4 50.9 44.9
Mexico 51.7 50.7 51.6 52.8
Brazil 50.9 51.1 52.3 50.9
% EM PMIs above 50 73% 73% 80% 87%
Leading indicators pointing to softer pace of EM growth
PMIs trending lower across each EM region, though still in expansionary territory in most countries
Source: Markit, Bloomberg, as of September 30, 2018.
Manufacturing PMI – EM Regions Manufacturing PMI – EM Countries
47.0
48.0
49.0
50.0
51.0
52.0
53.0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Nov
-15
Jan-
16
Mar
-16
May
-16
Jul-1
6
Sep
-16
Nov
-16
Jan-
17
Mar
-17
May
-17
Jul-1
7
Sep
-17
Nov
-17
Jan-
18
Mar
-18
May
-18
Jul-1
8
Sep
-18
% EM PMIs above 50 Emerging markets PMI
For Professional Client Use Only 61
EM FX weakness concentrated in ‘vulnerable’ EM currencies
Sharp sell-off in FX from countries with external and fiscal deficits
Source: Bloomberg, JPMorgan as of September 30, 2018. Vulnerable FX includes countries with weak scores on a number of factors including current account, FX reserves, fiscal balance, inflation rate and foreign ownership of local
bonds markets. The following currencies are included in this group: ZAR, TRY, INR, IDR, BRL. The Other EM FX category includes the following currencies: PLN, HUF, CZK, RUB, ILS, KRW, SGD, MYR, PHP, THB, MXN, CLP,
COP.
Real Effective Exchange Rates: ‘Vulnerable’ vs. Other EM Currencies
70
80
90
100
110
120
130
Sep
-96
Mar
-97
Sep
-97
Mar
-98
Sep
-98
Mar
-99
Sep
-99
Mar
-00
Sep
-00
Mar
-01
Sep
-01
Mar
-02
Sep
-02
Mar
-03
Sep
-03
Mar
-04
Sep
-04
Mar
-05
Sep
-05
Mar
-06
Sep
-06
Mar
-07
Sep
-07
Mar
-08
Sep
-08
Mar
-09
Sep
-09
Mar
-10
Sep
-10
Mar
-11
Sep
-11
Mar
-12
Sep
-12
Mar
-13
Sep
-13
Mar
-14
Sep
-14
Mar
-15
Sep
-15
Mar
-16
Sep
-16
Mar
-17
Sep
-17
Mar
-18
Sep
-18
Vulnerable FX Other EM FX
For Professional Client Use Only
EM Corporates Outlook: leverage at lowest levels post 2014
EM deleveraging opens a path to stronger growth
1. Source: NB, Factset, based on Facstet US and EM Equity indices
2. Source: JPMorgan, as of June 10, 2018; Includes distressed exchanges; Default rates are par-weighted.
62
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Jan-
03
Dec
-03
Nov
-04
Oct
-05
Sep
-06
Aug
-07
Jul-0
8
Jun-
09
May
-10
Apr
-11
Mar
-12
Feb
-13
Jan-
14
Dec
-14
Nov
-15
Oct
-16
Sep
-17
EM Total Debt/EBITDA, LTM US Total Debt/EBITDA, LTM
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18F
EM HY US HY
EM vs US Leverage¹ EM Corporate HY vs US HY Default Rate²
For Professional Client Use Only
Public debt levels in Emerging Markets remain moderate
Corporate leverage in China has surged but recent credit tightening measures seem to bear fruit
Source: LHS: IMF World Economic Outlook (WEO), data as of April 2018. RHS: Bank of International Settlements, Neuberger Berman, data as of September 30, 2017.
General Government Debt (% Of GDP) Non Financial Corporate Debt (% GDP)
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Advanced economies Emerging market and developing economies
0
20
40
60
80
100
120
140
160
180
Mar
-06
Nov
-06
Jul-0
7
Mar
-08
Nov
-08
Jul-0
9
Mar
-10
Nov
-10
Jul-1
1
Mar
-12
Nov
-12
Jul-1
3
Mar
-14
Nov
-14
Jul-1
5
Mar
-16
Nov
-16
Jul-1
7
EM ex China (GDP-weighted) China US Europe
63
For Professional Client Use Only
Macroeconomic Forecasts
October 2018 Forecast
Real GDP Growth
(%, y/y)
CPI Inflation*
(year-end)
Budget Balance
(% GDP)
Current Account
(% GDP)
2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019
Global EM (GDP-weighted) 4.6 4.6 4.5 3.5 4.2 3.6 -3.7 -3.1 -3.1 0.8 0.7 0.3
Export Growth
(value in US$, % y/y)
External Debt
(% GDP)
Public Debt
(% GDP)
2017 2018 2019 2017 2018 2019 2017 2018 2019
Global EM (GDP-weighted) 8.5 7.2 4.2 36.0 36.2 35.5 48.7 49.3 48.3
64
Neuberger Berman forecasts as of October 2018. *CPI Inflation aggregates exclude Argentina and Venezuela. For illustrative purposes only. Expectations may not materialize.
• We expect EM GDP growth to soften into next year as trade policy uncertainty and increased geopolitical risks are weighing on export growth and on business confidence
• Current accounts and external debt fundamentals have remained relatively well behaved in part due to floating FX regimes helpingcushion the external shocks
• Despite larger budget shortfalls compared to previous years, overall public debt levels have stabilised and remain moderate at under 50% of GDP
For Professional Client Use Only
2H 2018: Risks on the Horizon
65
EM issuers with leveraged or weaker funding profiles are most exposed to those risks
Trade Policy
• China / US tariffs• Steel / aluminum tariffs and retaliatory tariffs• Global value chains at risk (e.g. car market)
Political
• EM elections and policy repercussions (e.g. Brazil)
• Populist policies in various countries (e.g. Italy, Hungary)
Monetary Policy
• FED hikes, QT by ECB & FED continuing the liquidity squeeze via stronger USD and portfolio flows out of EM
For Professional Client Use Only
Local Yields Provide Substantial Cushion
Source: Neuberger Berman, Bloomberg , JPMorgan. Historical trends do not imply, forecast or guarantee future results.
66
-2
-1
0
1
2
3
4
5
6
7
US
D
EU
R
Indo
nesi
a
Mal
aysi
a
Tha
iland
Phi
lippi
nes
Chi
na
Indi
a
Sou
th K
orea
Hun
gary
Pol
and
Rom
ania
Cze
chR
ep
Tur
key
Rus
sia
Sou
th A
fric
a
Bra
zil
Chi
le
Col
ombi
a
Mex
ico
Per
u
Real yields offer an attractive premium over developed markets
GBI EM VS. US 5Y and 5Y Bund Nominal Yields (%)
as of October 9, 2018
EM VS DM Real Yield As of October 9, 2018, Based On Current
5y Nominal Yield VS 12m Fwd CPI
6.73
3.05
-0.05
-2
-1
0
1
2
3
4
5
6
7
8
Oct
-13
Dec
-13
Feb
-14
Apr
-14
Jun-
14A
ug-1
4O
ct-1
4D
ec-1
4F
eb-1
5A
pr-1
5Ju
n-15
Jul-1
5S
ep-1
5N
ov-1
5Ja
n-16
Mar
-16
May
-16
Jul-1
6S
ep-1
6N
ov-1
6Ja
n-17
Mar
-17
May
-17
Jul-1
7S
ep-1
7N
ov-1
7Ja
n-18
Mar
-18
May
-18
Jul-1
8S
ep-1
8
EMD Local Bond Yield 5y US Treasury Yield 5y German Bund Yield
2.85
GBI-EMGD
Weighted
Real Yield
LATAMASIA CEEMEA
For Professional Client Use Only
Real Effective Exchange Rates in Emerging Markets
NB EMD REER Model points to undervaluation in the majority of EM Currencies
The NB EMD REER Model generates a 'fair value REER' for each currency based on the NB EMD Team’s end 2018 forecasts of a set of macroeconomic fundamentals for each country; the chart above shows the deviation between actual REERs and the 'fair value REERs' expressed through a z-score, based on the period 1/1/1999 – 25/05/2018. Sources: BIS, Bloomberg, Neuberger Berman; As of September 30, 2018.
Actual REER vs NB Model REER (z-score)
67
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
TRY RUB PHP CNY MXN IDR MYR ILS PLN RON ZAR CLP COP INR KRW THB TWD PEN HUF CZK SGD BRL
For Professional Client Use Only 68
Corrections in Local Currency often Followed by Meaningful Recoveries
Rank End of Drawdown Magnitude 1 Week after 1 Month after 1 Quarter after
1 27-Oct-08 -27.7% 8.2% 8.8% 11.6%
2 13-Mar-15 -18.2% 2.9% 5.2% 2.0%
3 5-Sep-18 -16.4% 1.0%
4 3-Sep-13 -15.7% 2.6% 6.4% 4.8%
5 4-Sep-15 -14.1% 0.0% 3.9% -2.2%
6 9-Mar-09 -14.0% 6.9% 13.5% 23.8%
7 4-Oct-11 -11.6% 5.8% 6.3% 2.9%
8 23-Jun-06 -10.5% 2.5% 5.6% 7.5%
9 3-Feb-14 -10.3% 1.7% 4.9% 9.9%
10 20-Jan-16 -9.8% 2.1% 6.7% 16.1%
Valuations, fundamentals, and technicals are starting to align for such a recovery in local currency
Source: JPMorgan, As of September 30, 2018. The table includes the 10 largest corrections since inception of the JPMorgan GBI-EM Global Diversified Index in 2003.
Information is on this page represents historical observations about the sub-asset classes and is not intended to represent or predict future events. Historical trends do not imply, forecast or guarantee future results.
For Professional Client Use Only 69
Broad-based EM spread widening across HY/IG, Sovereigns and Corporates
EM hard currency bonds spread pickup versus developed markets has widened
Source: JPMorgan, Barclays. Neuberger Berman. As of October 9, 2018. Indices used: JPM EMBI Global Diversified HY and IG subindices, JPM CEMBI Diversified HY and IG subindices, Barclays US High Yield Index, Barclays Global Aggregate Corporate IndexThis material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice. Information is on this page represents historical observations about the sub-asset classes and is not intended to represent or predict future events. Historical trends do not imply, forecast or guarantee future results.
Spread Over Treasuries
For Professional Client Use Only 70
EMD HC Spread Above US High Yield Spread for the First Time Since 2005
Despite 51% of the EMD HC Index being Investment Grade rated at present
Source: JPMorgan, Barclays, As of September 30. 2018. Indices used: JPM EMBI Global Diversified Index, Barclays US High Yield Index, This material is intended as a broad overview of the portfolio managers’ current style, philosophy and process, is as of the date hereof and is subject to change without notice. Information is on this page represents historical observations about the sub-asset classes and is not intended to represent or predict future events. Historical trends do not imply, forecast or guarantee future results.
EMBI GD Spread VS Us HY Spread
For Professional Client Use Only
Top-Down Outcome
Source: Neuberger Berman. Score ranges from -1 to 1. For illustrative purposes only. As of October 15, 2018.
Top-down Scores
Global
Markets
EMD
Fundamentals
Technical
Factors Value Total
Top-down Score
(Previous)
HC Sovereign Spreads -0.2 0.1 0.3 0.5 0.03 0.03
HC Corporate Spreads -0.1 0.2 0.3 0.0 -0.01 0.07
Local Bond Yields -0.2 -0.1 0.0 0.8 -0.08 -0.04
EM Currencies -0.2 0.1 -0.1 0.5 -0.13 -0.09
71
For Professional Client Use Only
Total Asset Class Return Views – 12 Month Horizon
Neuberger Berman investment views are formulated by our specialty fixed income teams. For a variety of fixed income sectors we identify a range of outcomes that either may occur or alternatively be anticipated and then priced into the market. Foreach sector we formulate an investment view based on proprietary fundamental research and quantitative analysis which are used to project expected returns and a confidence level of the return expectation. Each sector team will establish anindependent view based on internal research, and a level of confidence in the outlook. The sector view is formulated by identifying various states of the economy and market (i.e. outcomes) expected typically over a 12-month horizon. Each state oroutcome is probability weighted to determine the overall sector view. The reassessment of sector views is ongoing and formally updated at least monthly. The above modeled asset class return views are based upon certain assumptions, includingthe above assumed spread to treasury and expected yield information. If actual spread to treasury and yield data differs from the assumed data above, there is a risk that the modeled asset class return views alike will differ materially from actualasset class return data. Expected Return Forecast May Not Materialize. The expected returns contained herein are being shown to illustrate the investment decision-making process and are not intended to provide any guarantee or assuranceabout the future returns of any security, asset class or portfolio. Projections or other forward-looking statements regarding future events, targets or expectations are only current as of the date indicated. There is no assurance that such events orprojections will occur, and may be significantly different than that shown here. The information in this presentation, including statements concerning financial market trends, is based on current market conditions, which will fluctuate and may besuperseded by subsequent market events or for other reasons. Please see “Disclosures” at the end of this material.
Total return analysis combines the outcomes of the TAA scorecard into a forecast per asset class
72
October 5, 201812m Expected
Returns
Scenario 1:
Reflation & Trade
Risks
Scenario 2:
Slower Global
Growth
Scenario 3:
Balanced Global
Growth
Scenario 4:
Deflation/Recession
Probability 30% 20% 35% 15%
EMD Hard Currency Sovereign 7.1% 3.3% 8.2% 9.8% 6.8%
EMD Hard Currency Corporate 4.0% 1.0% 4.3% 7.8% 0.8%
EMD Local Currency 6.6% 3.3% 6.5% 14.6% -5.4%
EMD Blended benchmark (25/25/50) 6.1% 2.7% 6.4% 11.7% -0.8%
For Professional Client Use Only
EMD Outlook – Our Views
73
As of October 2018.Opinions expressed herein reflect the opinion of Neuberger Berman and are subject to change without notice. Expectations may not materialize. Estimates and views may not materialize. The estimates and views contained herein are being shown to illustrate NB's current expectations regarding future financial information, they are not intended to provide any guarantee or assurance about the future performance. Estimates or other forward-looking statements regarding future events, targets or expectations are only current as of the date indicated. There is no assurance that such events or forecasts will occur, and may be significantly different than that shown here. The information in this presentation, including statements concerning financial market trends, is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons.
• Sentiment around EM remains fragile, due to trade tensions and tighter global liquidity conditions pressuring weaker funding
profiles such as Argentina and Turkey (fiscal or balance of payments).
• We remain constructive on the medium term outlook for EM economies as they benefit from strong growth in developed
markets and reforms across a wide set of countries,
• With the underperformance of EMD in the FX and spreads space, we are witnessing a larger correction now than during
the Taper Tantrum in 2013 which is unwarranted, given much better EM fundamentals like current accounts, resilient global
growth and higher commodity prices supporting the terms of trade.
• The widening of spreads of EM hard currency sovereigns and corporates so far this year contrasts markedly with unchanged
spreads for US high yield credits. We remain o/w Sovereigns versus Corporates and Local Currency
• Benign local inflation dynamics have contained the upward pressure on local rates triggered by falling currencies and wider
spreads to some extent. Sharp rises in real yields in various cases have created value opportunities in markets like Brazil,
Mexico and Indonesia.
• EMFX remains the most sensitive to the risks outlined keeping visibility limited for now; we maintain a low risk bias in EM
currencies, with an underweight bias to select Asian currencies which have held up relatively well but are vulnerable to
worsening trade tensions.
SUPPLEMENTAL PERFORMANCE
Emerging Market Debt - Blend Composite (Inception 10/1/2013)
Investment Performance Results – As of September 30, 2018
Past performance is no guarantee of future results.Please see attached important disclosures which contain complete performance information and definitions.
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
Custom Blend
(%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
Custom Blend
(%)
YTD Sep-
2018-6.19 -6.69 -5.21 ≤ 5 1,947.7 -- -- -- 8.65 7.69
2017 15.08 14.27 12.13 ≤ 5 1,958.4 295.2 0.66 -- 8.04 7.37
2016 10.32 9.52 10.25 ≤ 5 1,086.2 255.2 0.43 -- 9.06 8.30
2015 -7.51 -8.24 -7.14 ≤ 5 528.0 240.4 0.22 -- -- --
2014 1.26 0.37 0.31 ≤ 5 300.8 250.0 0.12 -- -- --
3 Months
20130.48 0.25 0.09 ≤ 5 100.5 241.7 0.04 -- -- --
75
Emerging Market Debt - Blend Composite
Investment Performance Disclosure Statement
Compliance Statement• Neuberger Berman Group LLC ("NB", "Neuberger Berman" or the "Firm") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. Neuberger
Berman has been independently verified for the period January 1, 2011 to December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) thefirm's policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards.
• The GIPS® firm definition was redefined effective January 1, 2011. For prior periods there were two separate firms for GIPS® firm definition purposes and such firms were independently verified for the periods January 1, 1997 to December 31, 2010 andJanuary 1, 1996 to December 31, 2010, respectively. Verification does not ensure the accuracy of any specific composite presentation. The verification reports are available upon request.
Definition of the Firm• The firm is currently defined for GIPS® purposes as Neuberger Berman Group LLC, ("NB", "Neuberger Berman" or the "Firm"), and includes the following subsidiaries: Neuberger Berman Investment Advisers LLC, Neuberger Berman Europe Ltd., Neuberger
Berman Asia Ltd., Neuberger Berman East Asia Ltd., Neuberger Berman Singapore Pte. Ltd., Neuberger Berman Taiwan Ltd, Neuberger Berman Australia Pty. Ltd., Neuberger Berman Trust Company N.A., Neuberger Berman Trust Company of DelawareN.A. and NB Alternatives Advisers LLC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Emerging Market Debt- Blend Composite (the "Composite") includes the performance of all fee-paying Emerging Market Debt - Blend portfolios, with no minimum investment, managed by the Emerging Market Debt team. The Emerging Market Debt-
Blend strategy seeks to achieve total return consisting of income and capital appreciation, by investing in a diversified selection of debt instrument denominated in USD or local currency issued by issuers from developing countries. The strategy may invest in sovereign, quasi-sovereign, corporate, sub-sovereigns and supra-national issuers. The strategy mainly invests in Latin American, Central and Eastern European, the Middle East, Asian and African debt instruments. The Composite creation and performance inception date is October 2013. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is a blend of 50% of the JP Morgan GBI Emerging Markets Global Diversified Index, 25% of JP Morgan Emerging Markets Bond Index Global Diversified and 25% of the JP Morgan Corporate Emerging Market Bond Diversified Index .The
benchmark is calculated on a total return basis. Additional disclosures for complete benchmark descriptions are available upon request.Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars.Fees• Composite Gross of Fee returns are the return on investments reduced by any trading expenses incurred during the period. Composite Net of Fee returns are the Gross of Fee returns reduced by investment advisory fees.Fee Schedule• The annual investment advisory fee, generally payable quarterly, is as follows: 0.65% on the first $100mn; 0.55% on the next $150mn; 0.45% thereafter. Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least 6 portfolios
for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
76
Emerging Market Corporate Debt Composite (Inception 7/1/2013)
Investment Performance Results – As of September 30, 2018
Past performance is no guarantee of future results.Please see attached important disclosures which contain complete performance information and definitions.
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
JP Morgan
CEMBI
Diversified Index
(%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
JP Morgan CEMBI
Diversified Index
(%)
YTD Sep-
2018-2.09 -2.67 -1.66 ≤ 5 128.5 -- -- -- 4.54 3.96
2017 9.41 8.54 7.89 ≤ 5 145.4 295.2 0.05 -- 4.65 4.10
2016 11.73 10.85 10.43 ≤ 5 124.9 255.2 0.05 -- 5.40 4.66
2015 0.43 -0.36 1.18 ≤ 5 93.8 240.4 0.04 -- -- --
2014 6.45 5.61 5.70 ≤ 5 169.9 250.0 0.07 -- -- --
6 Months
20133.81 3.40 3.11 ≤ 5 29.2 241.7 0.01 -- -- --
77
Emerging Market Corporate Debt Composite
Investment Performance Disclosure Statement
Compliance Statement• Neuberger Berman Group LLC ("NB", "Neuberger Berman" or the "Firm") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. Neuberger
Berman has been independently verified for the period January 1, 2011 to December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) thefirm's policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards.
• The GIPS® firm definition was redefined effective January 1, 2011. For prior periods there were two separate firms for GIPS® firm definition purposes and such firms were independently verified for the periods January 1, 1997 to December 31, 2010 andJanuary 1, 1996 to December 31, 2010, respectively. Verification does not ensure the accuracy of any specific composite presentation. The verification reports are available upon request.
Definition of the Firm• The firm is currently defined for GIPS® purposes as Neuberger Berman Group LLC, ("NB", "Neuberger Berman" or the "Firm"), and includes the following subsidiaries: Neuberger Berman Investment Advisers LLC, Neuberger Berman Europe Ltd., Neuberger
Berman Asia Ltd., Neuberger Berman East Asia Ltd., Neuberger Berman Singapore Pte. Ltd., Neuberger Berman Taiwan Ltd, Neuberger Berman Australia Pty. Ltd., Neuberger Berman Trust Company N.A., Neuberger Berman Trust Company of DelawareN.A. and NB Alternatives Advisers LLC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Emerging Market Corporate Debt Composite (the "Composite") includes the performance of all fee-paying Emerging Market Corporate Debt portfolios, with no minimum investment, managed by the Emerging Market Debt team. The Emerging Market
Corporate Debt strategy seeks to achieve long-term capital growth by investing generally in corporate debt instruments denominated in USD. The strategy focuses primarily on issuers from developing countries such as Latin America, Asia, Central and Eastern Europe, Middle East and Africa. The Composite creation and performance inception date is July 2013. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is the JP Morgan CEMBI Diversified Index (the "Index"). The Index is designed to measure the total returns for USD denominated debt issued by emerging market corporations. The CEMBI family of indices expands J.P. Morgan's regional
corporate indices - JACI, LEBI, RUBI, which provide benchmarks for Asia, Latin America, and Russia, respectively. The benchmark is calculated on a total return basis.Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars.Fees• Composite Gross of Fee returns are the return on investments reduced by any trading expenses incurred during the period. Composite Net of Fee returns are the Gross of Fee returns reduced by investment advisory fees.Fee Schedule• The annual investment advisory fee, generally payable quarterly, is as follows: 0.65% on the first $100mn; 0.55% on the next $150mn; 0.45% thereafter. Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least 6 portfolios
for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
78
Emerging Market Debt - Hard Currency Composite (Inception 6/1/2013)
Investment Performance Results – As of September 30, 2018
Past performance is no guarantee of future results.Please see attached important disclosures which contain complete performance information and definitions.
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
JPM EMBI Global
Diversified Index
(%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
JPM EMBI Global
Diversified Index
(%)
YTD Sep-
2018-3.36 -3.80 -3.04 ≤ 5 1,789.6 -- -- -- 6.48 5.48
2017 14.82 14.24 10.26 ≤ 5 1,313.8 295.2 0.45 -- 6.27 5.04
2016 12.82 12.34 10.15 ≤ 5 663.4 255.2 0.26 -- 7.07 5.78
2015 -0.30 -0.66 1.18 ≤ 5 1,015.8 240.4 0.42 -- -- --
2014 8.89 8.14 7.43 ≤ 5 98.1 250.0 0.04 -- -- --
7 Months
2013-1.30 -1.70 -2.32 ≤ 5 11.4 241.7 0.00 -- -- --
79
Emerging Market Debt - Hard Currency Composite
Investment Performance Disclosure Statement
Compliance Statement• Neuberger Berman Group LLC ("NB", "Neuberger Berman" or the "Firm") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. Neuberger
Berman has been independently verified for the period January 1, 2011 to December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) thefirm's policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards.
• The GIPS® firm definition was redefined effective January 1, 2011. For prior periods there were two separate firms for GIPS® firm definition purposes and such firms were independently verified for the periods January 1, 1997 to December 31, 2010 andJanuary 1, 1996 to December 31, 2010, respectively. Verification does not ensure the accuracy of any specific composite presentation. The verification reports are available upon request.
Definition of the Firm• The firm is currently defined for GIPS® purposes as Neuberger Berman Group LLC, ("NB", "Neuberger Berman" or the "Firm"), and includes the following subsidiaries: Neuberger Berman Investment Advisers LLC, Neuberger Berman Europe Ltd., Neuberger
Berman Asia Ltd., Neuberger Berman East Asia Ltd., Neuberger Berman Singapore Pte. Ltd., Neuberger Berman Taiwan Ltd, Neuberger Berman Australia Pty. Ltd., Neuberger Berman Trust Company N.A., Neuberger Berman Trust Company of DelawareN.A. and NB Alternatives Advisers LLC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Emerging Market Debt - Hard Currency Composite (the "Composite") includes the performance of all fee-paying Emerging Market Debt - Hard Currency portfolios, with no minimum investment, managed on a fully discretionary basis by the Emerging
Market Debt team. The Emerging Market Debt - Hard Currency strategy seeks to achieve long term capital growth by investing generally in debt instruments denominated in USD. The strategy focuses primarily on issuers from developing countries such as Latin America, Asia, Central and Eastern Europe, Middle East and Africa. The Composite creation and performance inception date is June 2013. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is the JPM EMBI Global Diversified Index (the "Index"). The Index tracks the total returns for U.S. dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities, including Brady bonds, loans, and
Eurobonds. The benchmark is calculated on a total return basis.Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars.Fees• Composite Gross of Fee returns are the return on investments reduced by any trading expenses incurred during the period. Composite Net of Fee returns are the Gross of Fee returns reduced by investment advisory fees.Fee Schedule• The annual investment advisory fee, generally payable quarterly, is as follows: 0.55% on the first $100mn; 0.45% on the next $150mn; 0.35% thereafter. Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least 6 portfolios
for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
80
Emerging Market Debt - Local Currency Composite (Inception 7/1/2013)
Investment Performance Results – As of September 30, 2018
Past performance is no guarantee of future results.Please see attached important disclosures which contain complete performance information and definitions.
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
JPM GBI
Emerging
Markets Global
Diversified Index
(%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
JPM GBI Emerging
Markets Global
Diversified Index
(%)
YTD Sep-
2018-9.10 -9.51 -8.15 ≤ 5 4,066.4 -- -- -- 12.06 11.37
2017 17.10 16.36 15.21 ≤ 5 2,699.5 295.2 0.91 -- 11.31 10.87
2016 10.22 9.51 9.94 ≤ 5 1,428.0 255.2 0.56 -- 12.55 11.97
2015 -15.73 -16.37 -14.92 ≤ 5 501.4 240.4 0.21 -- -- --
2014 -4.71 -5.43 -5.72 ≤ 5 433.0 250.0 0.17 -- -- --
6 Months
2013-0.13 -0.50 -1.96 ≤ 5 124.6 241.7 0.05 -- -- --
81
Emerging Market Debt - Local Currency Composite
Investment Performance Disclosure Statement
Compliance Statement• Neuberger Berman Group LLC ("NB", "Neuberger Berman" or the "Firm") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. Neuberger
Berman has been independently verified for the period January 1, 2011 to December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) thefirm's policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards.
• The GIPS® firm definition was redefined effective January 1, 2011. For prior periods there were two separate firms for GIPS® firm definition purposes and such firms were independently verified for the periods January 1, 1997 to December 31, 2010 andJanuary 1, 1996 to December 31, 2010, respectively. Verification does not ensure the accuracy of any specific composite presentation. The verification reports are available upon request.
Definition of the Firm• The firm is currently defined for GIPS® purposes as Neuberger Berman Group LLC, ("NB", "Neuberger Berman" or the "Firm"), and includes the following subsidiaries: Neuberger Berman Investment Advisers LLC, Neuberger Berman Europe Ltd., Neuberger
Berman Asia Ltd., Neuberger Berman East Asia Ltd., Neuberger Berman Singapore Pte. Ltd., Neuberger Berman Taiwan Ltd, Neuberger Berman Australia Pty. Ltd., Neuberger Berman Trust Company N.A., Neuberger Berman Trust Company of DelawareN.A. and NB Alternatives Advisers LLC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Emerging Market Debt - Local Currency Composite (the "Composite") includes the performance of all fee-paying Emerging Market Debt - Local Currency portfolios, with no minimum investment, managed on a fully discretionary basis by the Emerging
Market Debt team. The Emerging Market Debt - Local Currency strategy seeks to achieve long term capital growth by investing generally in debt instruments denominated in local currencies. The strategy focuses primarily on issuers from developing countries such as Latin American, Central and Eastern European, the Middle East, Asian and Africa. The Composite creation and performance inception date is July 2013. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is the JPM GBI Emerging Markets Global Diversified Index (the "Index"). The Index is designed to measure the total returns for local currency bonds issued by Emerging Market governments. The benchmark is calculated on a total return
basis and is market cap weighted and unmanaged.Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars.Fees• Composite Gross of Fee returns are the return on investments reduced by any trading expenses incurred during the period. Composite Net of Fee returns are the Gross of Fee returns reduced by investment advisory fees.Fee Schedule• The annual investment advisory fee, generally payable quarterly, is as follows: 0.60% on the first $100mn; 0.50% on the next $150mn; 0.40% thereafter. Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least 6 portfolios
for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
82
Emerging Markets Debt - Blend Investment Grade Composite (Inception 8/1/2017)
Investment Performance Results – As of September 30, 2018
Past performance is no guarantee of future results.Please see attached important disclosures which contain complete performance information and definitions.
Composite Benchmark Composite
3 Year Standard
Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
EMD Blend
Investment Grade
Index (%)
No. of
Accounts
Market Value
($, m)
Total Firm Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
YTD Sep-
2018-1.56 -2.01 -1.84 ≤ 5 15.4 -- -- -- --
5 Months
20172.90 2.65 2.27 ≤ 5 14.3 295.2 0.00 -- --
83
Emerging Markets Debt - Blend Investment Grade Composite
Investment Performance Disclosure Statement
Compliance Statement• Neuberger Berman Group LLC ("NB", "Neuberger Berman" or the "Firm") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. Neuberger
Berman has been independently verified for the period January 1, 2011 to December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) thefirm's policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards.
• The GIPS® firm definition was redefined effective January 1, 2011. For prior periods there were two separate firms for GIPS® firm definition purposes and such firms were independently verified for the periods January 1, 1997 to December 31, 2010 andJanuary 1, 1996 to December 31, 2010, respectively. Verification does not ensure the accuracy of any specific composite presentation. The verification reports are available upon request.
Definition of the Firm• The firm is currently defined for GIPS® purposes as Neuberger Berman Group LLC, ("NB", "Neuberger Berman" or the "Firm"), and includes the following subsidiaries: Neuberger Berman Investment Advisers LLC, Neuberger Berman Europe Ltd., Neuberger
Berman Asia Ltd., Neuberger Berman East Asia Ltd., Neuberger Berman Singapore Pte. Ltd., Neuberger Berman Taiwan Ltd, Neuberger Berman Australia Pty. Ltd., Neuberger Berman Trust Company N.A., Neuberger Berman Trust Company of DelawareN.A. and NB Alternatives Advisers LLC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Emerging Markets Debt - Blend Investment Grade Composite (the "Composite") includes the performance of all fee-paying Emerging Markets Debt - Blend Investment Grade portfolios with no investment minimum managed on a fully discretionary basis
by the Emerging Market Debt team. The Emerging Markets Debt - Blend Investment Grade strategy is designed for investors who seek long term capital growth, by investing generally in a diversified selection of investment grade debt instruments denominated in USD and local currencies issued by sovereign, quasi-sovereign and corporate issuers from developing countries. The strategy mainly invests in Latin American, Central and Eastern European, the Middle East, Asian and African debt instruments. The Composite creation and performance inception date is July 2017. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is a blend of 66.6% of the JP Morgan Emerging Markets Bond Index Global Diversified investment Grade and 33.3% of the JP Morgan GBI Emerging Markets Global Diversified Investment Grade 15% Cap Index.The benchmark is calculated
on a total return basis. Additional disclosures for complete benchmark descriptions are available upon request.Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars.Fees• Composite Gross of Fee returns are the return on investments reduced by any trading expenses incurred during the period. Composite Net of Fee returns are the Gross of Fee returns reduced by investment advisory fees.Fee Schedule• The annual investment advisory fee, generally payable quarterly, is as follows: 0.65% on the first $100mn; 0.55% on the next $150mn; 0.45% thereafter. Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least 6 portfolios
for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
84
Asian Debt Hard Currency Composite (Inception 7/1/2015)
Investment Performance Results – As of September 30, 2018
Past performance is no guarantee of future results.Please see attached important disclosures which contain complete performance information and definitions.
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
JPM Asia Credit
Index (%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
JPM Asia Credit
Index
(%)
YTD Sep-
2018-1.99 -2.43 -1.41 ≤ 5 15.8 -- -- -- 3.34 2.79
2017 8.22 7.58 5.78 ≤ 5 16.8 295.2 0.01 -- -- --
2016 7.43 6.79 5.81 ≤ 5 16.2 255.2 0.01 -- -- --
6 Months
20150.40 0.10 0.79 ≤ 5 15.0 240.4 0.01 -- -- --
85
Asian Debt Hard Currency Composite
Investment Performance Disclosure Statement
Compliance Statement• Neuberger Berman Group LLC ("NB", "Neuberger Berman" or the "Firm") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. Neuberger
Berman has been independently verified for the period January 1, 2011 to December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) thefirm's policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards.
• The GIPS® firm definition was redefined effective January 1, 2011. For prior periods there were two separate firms for GIPS® firm definition purposes and such firms were independently verified for the periods January 1, 1997 to December 31, 2010 andJanuary 1, 1996 to December 31, 2010, respectively. Verification does not ensure the accuracy of any specific composite presentation. The verification reports are available upon request.
Definition of the Firm• The firm is currently defined for GIPS® purposes as Neuberger Berman Group LLC, ("NB", "Neuberger Berman" or the "Firm"), and includes the following subsidiaries: Neuberger Berman Investment Advisers LLC, Neuberger Berman Europe Ltd., Neuberger
Berman Asia Ltd., Neuberger Berman East Asia Ltd., Neuberger Berman Singapore Pte. Ltd., Neuberger Berman Taiwan Ltd, Neuberger Berman Australia Pty. Ltd., Neuberger Berman Trust Company N.A., Neuberger Berman Trust Company of DelawareN.A. and NB Alternatives Advisers LLC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Asian Debt Hard Currency Composite (the "Composite") includes the performance of all fee-paying Asian Debt Hard Currency portfolios, with no minimum investment, managed on a fully discretionary basis by the Emerging Market Debt team. The Asian
Debt Hard Currency strategy seeks to achieve risk adjusted total returns (income plus capital appreciation) from hard currency- denominated debt issued in Asian countries. The strategy will invest primarily in debt securities and money market instruments which are issued by governments of, government agencies, or corporate issuers which have their head office or exercise an overriding part of their economic activity in Asian countries and which are denominated in Hard Currency. For the purposes of this strategy, Hard Currency is defined as US Dollar, Euro, Sterling, Japanese Yen and Swiss Franc. The Composite creation and performance inception date is July 2015. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is the JPM Asia Credit Index (the "Index"). The Index tracks the total return performance for actively traded USD denominated debt instruments in the Asia region (excluding Japan). The JPM Asia Credit Index (JACI) tracks total return
performance of the Asia fixed-rate dollar bond market. JACI is a market cap-weighted index comprising sovereign, quasi-sovereign and corporate bonds and it is partitioned by country, sector and credit rating.Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars.Fees• Composite Gross of Fee returns are the return on investments reduced by any trading expenses incurred during the period. Composite Net of Fee returns are the Gross of Fee returns reduced by investment advisory fees.Fee Schedule• The annual investment advisory fee, generally payable quarterly, is as follows: 0.60% per annum. Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least 6 portfolios
for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
86
China Onshore Bond Composite (Inception 10/1/2015)
Investment Performance Results – As of September 30, 2018
Past performance is no guarantee of future results.Please see attached important disclosures which contain complete performance information and definitions.
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
China UCITS
Custom Index
(%)
No. of
Accounts
Market Value
(¥, m)
Total Firm
Assets
(¥, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
China UCITS
Custom Index
(%)
YTD Sep-
20184.60 4.06 4.40 ≤ 5 189.7 -- -- -- 1.94 2.16
2017 -0.36 -0.93 -0.89 ≤ 5 202.4 1,922.3 0.01 -- -- --
2016 1.58 0.92 2.15 ≤ 5 203.4 1,773.4 0.01 -- -- --
3 Months
20152.85 2.69 2.97 ≤ 5 200.7 1,561.1 0.01 -- -- --
87
China Onshore Bond Composite
Investment Performance Disclosure Statement
Compliance Statement• Neuberger Berman Group LLC ("NB", "Neuberger Berman" or the "Firm") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. Neuberger
Berman has been independently verified for the period January 1, 2011 to December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) thefirm's policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards.
• The GIPS® firm definition was redefined effective January 1, 2011. For prior periods there were two separate firms for GIPS® firm definition purposes and such firms were independently verified for the periods January 1, 1997 to December 31, 2010 andJanuary 1, 1996 to December 31, 2010, respectively. Verification does not ensure the accuracy of any specific composite presentation. The verification reports are available upon request.
Definition of the Firm• The firm is currently defined for GIPS® purposes as Neuberger Berman Group LLC, ("NB", "Neuberger Berman" or the "Firm"), and includes the following subsidiaries: Neuberger Berman Investment Advisers LLC, Neuberger Berman Europe Ltd., Neuberger
Berman Asia Ltd., Neuberger Berman East Asia Ltd., Neuberger Berman Singapore Pte. Ltd., Neuberger Berman Taiwan Ltd, Neuberger Berman Australia Pty. Ltd., Neuberger Berman Trust Company N.A., Neuberger Berman Trust Company of DelawareN.A. and NB Alternatives Advisers LLC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The China Onshore Bond Composite (the "Composite") includes the performance of all fee-paying China Onshore Bond portfolios, with no minimum investment, managed on a fully discretionary basis by the Emerging Market Debt team. The China Onshore
Bond Strategy seeks to achieve risk adjusted total returns (income plus capital appreciation) from local interest rates of the People's Republic of China ("PRC"). The strategy will invest primarily in debt securities and money market instruments which are issued within the PRC by PRC government, PRC government agencies or corporate issuers. The Composite creation and performance inception date is October 2015. A complete list of Neuberger Berman's composites is available upon request.
Primary Benchmark Description• The benchmark is the China UCITS Custom Index (the "Index"). The Index tracks the total return performance of a bond portfolio consisting of Chinese Yuan (CNY) denominated, high quality and liquid bonds in China onshore market. The benchmark is
calculated on a total return basis. • Prior to May 2016, the benchmark was the HSBC Asian Local China Index.Reporting Currency• Valuations are computed and performance is reported in Yuan Renminbi.Fees• Composite Gross of Fee returns are the return on investments reduced by any trading expenses incurred during the period. Composite Net of Fee returns are the Gross of Fee returns reduced by investment advisory fees.Fee Schedule• The annual investment advisory fee, generally payable quarterly, is as follows: 0.65% per annum. Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least 6 portfolios
for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
88
Short Duration Emerging Market Debt Composite (Inception 11/1/2013)
Investment Performance Results – As of September 30, 2018
Past performance is no guarantee of future results.Please see attached important disclosures which contain complete performance information and definitions.
Composite Benchmark Composite 3 Year Standard Deviation
Total Return
(%, Gross
of Fees)
Total Return
(%, Net
of Fees)
ICE BofAML 3-
Month Treasury
Bill Index (%)
No. of
Accounts
Market Value
($, m)
Total Firm
Assets
($, bn)
% of Firm
Assets
Internal
Dispersion
Composite
(%)
ICE BofAML 3-
Month Treasury
Bill Index
(%)
YTD Sep-
20180.64 0.27 1.30 ≤ 5 3,646.5 -- -- -- 1.95 0.18
2017 4.88 4.36 0.86 ≤ 5 3,631.6 295.2 1.23 -- 2.11 0.11
2016 6.10 5.58 0.33 ≤ 5 1,273.4 255.2 0.50 -- 2.58 0.05
2015 2.00 1.49 0.05 ≤ 5 606.8 240.4 0.25 -- -- --
2014 0.91 0.40 0.03 ≤ 5 302.2 250.0 0.12 -- -- --
2 Months
20130.38 0.30 0.02 ≤ 5 22.4 241.7 0.01 -- -- --
89
Short Duration Emerging Market Debt Composite
Investment Performance Disclosure Statement
Compliance Statement• Neuberger Berman Group LLC ("NB", "Neuberger Berman" or the "Firm") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. Neuberger
Berman has been independently verified for the period January 1, 2011 to December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) thefirm's policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards.
• The GIPS® firm definition was redefined effective January 1, 2011. For prior periods there were two separate firms for GIPS® firm definition purposes and such firms were independently verified for the periods January 1, 1997 to December 31, 2010 andJanuary 1, 1996 to December 31, 2010, respectively. Verification does not ensure the accuracy of any specific composite presentation. The verification reports are available upon request.
Definition of the Firm• The firm is currently defined for GIPS® purposes as Neuberger Berman Group LLC, ("NB", "Neuberger Berman" or the "Firm"), and includes the following subsidiaries: Neuberger Berman Investment Advisers LLC, Neuberger Berman Europe Ltd., Neuberger
Berman Asia Ltd., Neuberger Berman East Asia Ltd., Neuberger Berman Singapore Pte. Ltd., Neuberger Berman Taiwan Ltd, Neuberger Berman Australia Pty. Ltd., Neuberger Berman Trust Company N.A., Neuberger Berman Trust Company of DelawareN.A. and NB Alternatives Advisers LLC.
Policies• Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.Composite Description• The Short Duration Emerging Market Debt Composite (the "Composite") represents the performance of all fee-paying Short Duration Emerging Market Debt portfolios, with no minimum investment, managed on a fully discretionary basis by the Short Duration
Emerging Market Debt Fixed Income team. The Short Duration Emerging Market Debt Strategy seeks to achieve a positive total return by investing in short duration emerging market sovereign securities denominated in hard currencies and short duration emerging market corporate debt securities denominated in USD. The strategy focuses primarily on issuers from developing countries located in Latin America, Asia, Central and Eastern Europe, Middle East and Africa. The Short Duration Emerging Market Debt Composite ("Composite") represents the performance of all fee-paying, discretionary accounts, managed according to the Short Duration Emerging Market Debt Strategy. The Composite creation and performance inception date is November 2013. A complete list and description of the NB Composites and performance results is available upon request.
Primary Benchmark Description• The benchmark is the ICE BofAML 3-Month Treasury Bill Index (the "Index"). The Index is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly
selected issue. The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, three months from the rebalancing date. To qualify for selection, an issue must have settled on or before the month-end rebalancing date.
Reporting Currency• Valuations are computed and performance is reported in U.S. Dollars.Fees• Composite Gross of Fee returns are the return on investments reduced by any trading expenses incurred during the period. Composite Net of Fee returns are the Gross of Fee returns reduced by investment advisory fees.Fee Schedule• The annual investment advisory fee, generally payable quarterly, is as follows: 0.45% on the first $100mn; 0.35% on the next $150mn; 0.25% thereafter. Internal Dispersion• Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were in the Composite for the entire year. Internal dispersion is not calculated if the Composite does not contain at least 6 portfolios
for the entire year.Annualized Standard Deviation• The three-year annualized standard deviation measures the variability of the Composite and the benchmark returns over the preceding 36-month period. The standard deviation is not required for periods prior to 2011.
90
DISCLAIMER
Additional Disclosures
Institutional-Oriented Equity and Fixed Income AUM Benchmark Outperformance Note: Institutional-oriented equity and fixed income assets under management (“AUM”) includes the firm’s equity and fixed
income institutional separate account (“ISA”), registered fund, and managed account/wrap (“MAG”) offerings and are based on the overall performance of each individual investment offering against its
respective benchmark offerings and are based on the overall performance of each individual investment offering against its respective benchmark. High net worth/private asset management (“HNW”) AUM
is excluded. For the period ending June 30, 2018, the percentage of total institutional-oriented equity AUM outperforming the benchmark was as follows: Since Inception: 90%; 10-year: 44%; 5-year: 78%;
and 3-year: 73%; and total institutional-oriented fixed income AUM outperforming was as follows: Since Inception: 95%, 10-year: 82%; 5-year: 69%; and 3-year: 68%. If HNW AUM were included, total equity
AUM outperforming the benchmark was as follows: Since Inception: 88%; 10-year: 31%; 5-year: 55%; and 3-year: 53%; and total fixed income AUM outperforming was as follows: Since Inception: 94%; 10-
year: 82%; 5-year: 69%; and 3-year: 68%. Equity and Fixed Income AUM outperformance results are asset weighted so individual offerings with the largest amount of assets under management have the
largest impact on the results. As of 6/30/2018, six institutional-oriented equity offerings accounted for approximately 54% of the total firm institutional-oriented equity AUM reflected, and nine institutional-
oriented fixed income offerings accounted for approximately 53% of the total firm institutional-oriented fixed income AUM reflected. Performance for the individual offerings reflected are available upon
request. AUM for multi-asset class, balanced and alternative (including long-short equity or fixed income) offerings, as well as AUM for hedge fund, private equity and other private investment vehicle
offerings are not reflected in the AUM outperformance results shown. AUM outperformance is based on gross of fee returns. Gross of fee returns do not reflect the deduction of investment advisory fees and
other expenses. If such fees and expenses were reflected, AUM outperformance results would be lower. Investing entails risk, including possible loss of principal. Past performance is no guarantee of
future results.
Private Equity Outperformance Note: The performance information includes all funds, both commingled and custom, managed by NB Alternatives Advisers LLC with vintage years of 2005 – 2015, with the
exception of a closed-end, public investment company registered under the laws of Guernsey (the “Funds”). Accounts that are only monitored are excluded. Vintage years post 2015 are excluded as
benchmark information is not yet available. Please note that private debt funds are also excluded as benchmark data is not yet available for the applicable vintages.
Percentages are based on the number of funds, calculated as the total number of funds whose performance exceeds their respective benchmarks divided by the total number of all funds with vintage years
of 2005 through 2015. Performance is measured by net IRR, MOIC, and DPI and is compared to the respective index’s median net IRR, MOIC and DPI, respectively. The Cambridge Secondary Index was
used for secondary-focused funds; the Cambridge Buyout and Growth Equity for US and Developed Europe was used for co-investment-focused funds; the Cambridge Fund of Funds Index was used for
commingled funds and custom portfolios comprised of primaries, secondaries and co-investments; and the Cambridge Global Private Equity was used for strategies focused on minority stakes in asset
managers fund and healthcare credit.
The Cambridge Associates LLC indices data is as of December 31, 2017, which is the most recent data available. The Cambridge Associates Fund of Funds Index is the benchmark recommended by the
CFA Institute for benchmarking overall private equity fund of funds performance. The benchmark relies on private equity funds self-reporting data for compilation and as such is subject to the quality of the
data provided. The median net multiple of Cambridge Associates Fund of Funds Index is presented for each vintage year as of December 31, 2017, the most recent available. Cambridge Associates data
provided at no charge.
While one of the secondary funds closed in 2008, Cambridge Associates classifies that particular fund as a 2007 vintage year fund (the year of its formation) and, therefore, the Cambridge Associates
benchmarks used herein are for 2007 vintage year funds.
Private Offerings: Certain strategies referenced herein may only be available through a private offering of interests made pursuant to offering and subscription documents, which will be furnished solely to
qualified investors on a confidential basis at their request for their consideration in connection with an offering. These documents will contain information about the investment objective, terms and conditions
of an investment in such vehicle and will also contain tax information and risk disclosures that are important to an investment decision. Any decision to invest in such vehicle should be made after a careful
review of these documents, the conduct of such investigations as an investor deems necessary or appropriate and after consultation with legal, accounting, tax and other advisors in order to make an
independent determination of the suitability and consequences of an investment in such vehicle.
92
For Professional Client Use Only
Index Definitions
Emerging Markets – Corporate Debt
The Corporate Emerging Market Bond Index series (CEMBI) track USD denominated debt issued by emerging market corporations. The CEMBI family of indices expands J.P. Morgan's regional corporate
indices - JACI, LEBI, RUBI, which provide benchmarks for Asia, Latin America, and Russia, respectively
Emerging Markets – Local Debt
The local debt package consists of the Government Bond Index-Emerging Markets (GBI-EM) series, which was developed in response to an increase in investor appetite towards local currency debt. The
package contains three variations - the GBI-EM, GBI-EM Global and GBI-EM Broad - which cater to different investment objectives and inclusion criteria. The indices span over 15 countries and are also
available in diversified weighting versions.
Emerging Markets – External Debt
The family of J.P. Morgan Emerging Market Bond Index (EMBI) is the most widely used and comprehensive emerging market sovereign debt benchmarks. Historical information is available since December
1993.
Emerging Markets – Local Currency Money Markets
The J.P Morgan Local Market Index Plus (ELMI+) tracks total returns for local-currency denominated money market instruments in 24 emerging markets countries. The benchmark was introduced in June1996 and consists of foreign exchange forward contracts laddered with maturities ranging from one to three months. Country weights are based on a trade-weighted allocation, with maximum weight of 10%for countries with convertible currencies and 2% for countries with non-convertible currencies.
Emerging Markets – Investment Grade Corporates
The J.P. Morgan US Liquid Index (JULI) provides performance comparisons and valuation metrics across a carefully defined universe of investment grade corporate bonds, tracking individual issuers, sectorsand sub-sectors by their various ratings and maturities.
93
For Professional Client Use Only
Additional Disclosures
Institutional-Oriented Equity and Fixed Income AUM Benchmark Outperformance Note: Institutional-oriented equity and fixed income assets under management (“AUM”) includes the firm’s equity and fixed
income institutional separate account (“ISA”), registered fund, and managed account/wrap (“MAG”) offerings and are based on the overall performance of each individual investment offering against its
respective benchmark offerings and are based on the overall performance of each individual investment offering against its respective benchmark. High net worth/private asset management (“HNW”) AUM
is excluded. For the period ending March 31, 2018, the percentage of total institutional-oriented equity AUM outperforming the benchmark was as follows: 10-year: 87%; 5-year: 79%; and 3-year: 78% ; and
total institutional-oriented fixed income AUM outperforming was as follows: 10-year:77%; 5-year:65%; and 3-year: 68%. If HNW AUM were included, total equity AUM outperforming the benchmark was as
follows: 10-year: 63%; 5-year: 55%; and 3-year: 56%; and total fixed income AUM outperforming was as follows: 10-year: 77%; 5-year: 65%; and 3-year: 68%. Equity and Fixed Income AUM outperformance
results are asset weighted so individual offerings with the largest amount of assets under management have the largest impact on the results. As of 3/31/2018, five institutional-oriented equity offerings
accounted for approximately 50% of the total firm institutional-oriented equity AUM reflected, and nine institutional-oriented fixed income offerings accounted for approximately 52% of the total firm
institutional-oriented fixed income AUM reflected. Performance for the individual offerings reflected are available upon request. AUM for multi-asset class, balanced and alternative (including long-short equity
or fixed income) offerings, as well as AUM for hedge fund, private equity and other private investment vehicle offerings are not reflected in the AUM outperformance results shown. AUM outperformance is
based on gross of fee returns. Gross of fee returns do not reflect the deduction of investment advisory fees and other expenses. If such fees and expenses were reflected, AUM outperformance results would
be lower. Investing entails risk, including possible loss of principal. Past performance is no guarantee of future results.
Private Equity Outperformance Note: The performance information includes all funds, both commingled and custom, managed by NB Alternatives Advisers LLC with vintage years of 2005 – 2015, with the
exception of a closed-end, public investment company registered under the laws of Guernsey (the “Funds”). Accounts that are only monitored are excluded. Vintage years post 2015 are excluded as
benchmark information is not yet available. Please note that private debt funds are also excluded as benchmark data is not yet available for the applicable vintages.
Percentages are based on the number of funds, calculated as the total number of funds whose performance exceeds their respective benchmarks divided by the total number of all funds with vintage years of
2005 through 2015. Performance is measured by net IRR, MOIC, and DPI and is compared to the respective index’s median net IRR, MOIC and DPI, respectively. The Cambridge Secondary Index was
used for secondary-focused funds; the Cambridge Buyout and Growth Equity for US and Developed Europe was used for co-investment-focused funds; the Cambridge Fund of Funds Index was used for
commingled funds and custom portfolios comprised of primaries, secondaries and co-investments; and the Cambridge Global Private Equity was used for strategies focused on minority stakes in asset
managers fund and healthcare credit.
The Cambridge Associates LLC indices data is as of September 30, 2017, which is the most recent data available. The Cambridge Associates Fund of Funds Index is the benchmark recommended by the
CFA Institute for benchmarking overall private equity fund of funds performance. The benchmark relies on private equity funds self-reporting data for compilation and as such is subject to the quality of the
data provided. The median net multiple of Cambridge Associates Fund of Funds Index is presented for each vintage year as of September 30, 2017, the most recent available. Cambridge Associates data
provided at no charge.
While one of the secondary funds closed in 2008, Cambridge Associates classifies that particular fund as a 2007 vintage year fund (the year of its formation) and, therefore, the Cambridge Associates
benchmarks used herein are for 2007 vintage year funds.
Private Offerings: Certain strategies referenced herein may only be available through a private offering of interests made pursuant to offering and subscription documents, which will be furnished solely to
qualified investors on a confidential basis at their request for their consideration in connection with an offering. These documents will contain information about the investment objective, terms and conditions
of an investment in such vehicle and will also contain tax information and risk disclosures that are important to an investment decision. Any decision to invest in such vehicle should be made after a careful
review of these documents, the conduct of such investigations as an investor deems necessary or appropriate and after consultation with legal, accounting, tax and other advisors in order to make an
independent determination of the suitability and consequences of an investment in such vehicle.
94
For Professional Client Use Only
Additional Disclosures
Emerging Markets Risk. Emerging markets are those of countries with immature economic and political structures. Securities issued in emerging markets have more risk than securities issued in more developed foreign markets.Investing in emerging markets may involve heightened and significant risks and special considerations not typically associated with investing in other more established economies or securities markets. Such risks may include, butare not limited to: (i) greater social, economic and political uncertainty including war; (ii) higher dependence on exports and the corresponding importance of international trade; (iii) greater risk of inflation; (iv) increased likelihood ofgovernmental involvement in and control over the economies; (v) governmental decisions to cease support of economic reform programs or to impose centrally planned economies; (vi) the possibility of nationalization, expropriation,confiscatory tax policies and social instability; and (vii) considerations regarding the maintenance of a Client Account’s securities and cash with non-U.S. brokers and custodians. Emerging market securities will be affected by generaleconomic and market conditions, such as interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws, trade barriers, currency exchange controls and national and international political circumstances.These factors may affect the level and volatility of securities’ prices and the liquidity of the account’s investments. Volatility or illiquidity could impair an account’s profitability or result in losses. In addition, custodial and/or settlementsystems may not be fully developed in emerging market countries, thereby exposing a Client’s Account to the risk of a sub-custodian’s failure with no recourse against the custodian.
This presentation is being furnished on a confidential basis to a sophisticated investor on a “one-on-one” basis for informational and discussion purposes only and does not constitute an offer to sell or a solicitation of an offer topurchase any security. The information is intended only for the recipient to whom it has been distributed, is strictly confidential and may not be reproduced or redistributed in whole or in part nor may its contents be disclosed to anyother person (other than the recipient’s directors, officers, agents or other representatives) under any circumstances without the prior written consent of Neuberger Berman Investment Advisers LLC (“NBIA”). This information is notintended to constitute legal, tax or accounting advice or investment recommendations. The information set forth herein does not purport to be complete and is subject to change.
The value and the income produced by the proposed concept may be adversely affected by exchange rates, interest rates, or other factors so that an investor may get back less than he invested. The products mentioned in this document may not be eligible for sale in some states or countries, and they may not be suitable for all types of investors. The value and the income produced by products may fluctuate, so that an investor may get back less than he invested. Value and income may be adversely affected by exchange rates, interest rates, or other factors. Past performance is not necessarily indicative of future results.
A bond’s value may fluctuate based on interest rates, market conditions, credit quality and other factors. You may have a gain or loss if you sell your bonds prior to maturity. Of course, bonds are subject to the credit risk of theissuer. If sold prior to maturity, municipal securities are subject to gain/losses based on the level of interest rates, market conditions and the credit quality of the issuer. Income may be subject to the alternative minimum tax (AMT)and/or state and local taxes, based on the investor’s state of residence. High-yield bonds, also known as “junk bonds,” are considered speculative and carry a greater risk of default than investment-grade bonds. Their market valuetends to be more volatile than investment-grade bonds and may fluctuate based on interest rates, market conditions, credit quality, political events, currency devaluation and other factors. High yield bonds are not suitable for allinvestors and the risks of these bonds should be weighed against the potential rewards. Neither Neuberger Berman nor its employees provide tax or legal advice. You should contact a tax advisor regarding the suitability of tax-exemptinvestments in your portfolio.
Credit quality generally reflects the average credit quality of three Nationally Recognized Statistical Ratings Organizations (NRSROs), S&P, Moody’s and Fitch, as calculated internally by the investment adviser. Holdings that areunrated by any NRSRO may be assigned an equivalent rating by the investment manager. If NRSRO ratings differ for a particular holding, the average rating is generally used. No NRSRO has been involved with the calculation ofaverage credit quality and the ratings of underlying portfolio holdings should not be viewed as a rating of the portfolio itself. Portfolio holdings, underlying ratings of holdings and average credit may change materially overtime.
We do not represent that the information contained herein is accurate or complete, and it should not be relied upon as such. Certain information contained herein has been obtained from published sources and/or prepared by thirdparties. While such sources are believed to be reliable, none of NBIA or any of its affiliates or employees assume any responsibility for the accuracy or completeness of such information.
Statements contained herein are based on current expectations, estimates, projections, opinions and/or beliefs of Neuberger Berman. Such statements involve known and unknown risks, uncertainties and other factors, and unduereliance should not be placed thereon. Moreover, certain information contained herein constitutes “forward looking” statements, which often can be identified by the use of forward looking terminology such as “may,” “will,” “seek,”“should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” “target,” “plan” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Such statements are necessarily speculative in nature,as they are based on certain assumptions. It can be expected that some or all of the assumptions underlying such statements will not reflect actual conditions. Accordingly, there can be no assurance that any estimated projections,forecast or estimates will be realized or that the forward looking statements will materialize. Due to various risks and uncertainties, including those set forth herein, actual events or results or the actual performance of any securityreferenced herein may differ materially from those reflected or contemplated in such forward looking statements.
All information as of the date indicated. 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”). Firm history and timelines includes the history and business expansions of all firm subsidiaries, including predecessor entities and acquisition entities. Investment professionals referenced include portfolio managers,research analysts/associates, traders, and product specialists and team dedicated economists/strategists.
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Additional Disclosures (continued)
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. Information is obtained from sources deemed
reliable, but there is no representation or warranty as to its accuracy, completeness or reliability. All information is current as of the date of this material and is subject to change without notice. Any views or opinions expressed may
not reflect those of the firm as a whole. 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. Investments in hedge funds
and private equity are speculative and involve a higher degree of risk than more traditional investments. Investments in hedge funds and private equity are intended for sophisticated investors only. Indexes are unmanaged and are
not available for direct investment. Past performance is no guarantee of future results.
This material has been issued for use by the following entities; in the U.S. and Canada by Neuberger Berman LLC, a U.S. registered investment advisor and broker-dealer and member FINRA/SIPC; in Europe, Latin America and the
Middle East by Neuberger Berman Europe Limited, which is authorised and regulated by the UK Financial Conduct Authority and is registered in England and Wales, Lansdowne House, 57 Berkeley Square, London, W1J 6ER, and
is also regulated by the Dubai Financial Services Authority as a Representative Office; in Australia by Neuberger Berman Australia Pty Ltd (ACN 146 033 801, AFS Licence No. 391401), which is licensed and regulated by the
Australian Securities and Investments Commission to deal in, and to provide financial product advice for, certain financial products to wholesale clients; in Hong Kong by Neuberger Berman Asia Limited, which is licensed and
regulated by the Hong Kong Securities and Futures Commission; in Singapore by Neuberger Berman Singapore Pte. Limited (Company No. 200821844K),which currently carries out the regulated activity of fund management under
the Securities and Futures Act (Chapter 289) (“SFA”) and operates as an Exempt Financial Adviser under section 23(1)(d) of the Financial Advisers Act (Chapter 110) (“FAA”) of Singapore. Under the FAA, NB Singapore is exempted
from Sections 25, 27 and 36 of the FAA, where its financial advisory service is provided to an accredited or expert investor (as defined in Section 4A of the SFA); in Taiwan to specific professional investors or financial institutions for
internal use only by Neuberger Berman Taiwan Limited, which is licensed and regulated by the Financial Services Commission (“FSC”) and a separate entity and independently operated business, with FSC operating license
no.:(102) FSC SICE no.011, and address at: 10F, No. 1, Songzhi Road, Taipei, Telephone number: (02) 87268280; and in Japan and Korea by Neuberger Berman East Asia Limited, which is authorized and regulated by the
Financial Services Agency of Japan and the Financial Services Commission of Republic of Korea, respectively (please visit http://www.nb.com/japan/risk_eng.html for additional disclosure items required under the Financial
Instruments and Exchange Act of Japan). Except for the foregoing, this material is not intended for use or distribution within or aimed at the residents of any other country or jurisdiction. This document is not an advertisement and is
not intended for public use or additional distribution in the following jurisdictions: Brunei, Thailand, Malaysia and China.
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. This material may not be used for any investment decision in respect of any U.S. private sector retirement
account unless the recipient is a fiduciary that is a U.S. registered investment adviser, a U.S. registered broker-dealer, a bank regulated by the United States or any State, an insurance company licensed by more than one State to
manage the assets of employee benefit plans subject to ERISA (and together with plans subject to Section 4975 of the Internal Revenue Code, “Plans”), or, if subject to Title I of ERISA, a fiduciary with at least $50 million of client
assets under management and control, and in all cases financially sophisticated, capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies. This
means that “retail” retirement investors are expected to engage the services of an advisor in evaluating this material for any investment decision. If your understanding is different, we ask that you inform us immediately.
This material is being issued on a limited basis through various global subsidiaries and affiliates of Neuberger Berman Group LLC. Please visit http://www.nb.com/disclosure-global-communications for the specific entities and
jurisdictional limitations and restrictions.
Neuberger Berman Investment Advisers LLC is a registered investment adviser.
The “Neuberger Berman” name and logo are registered service marks of Neuberger Berman Group LLC.
© 2018 Neuberger Berman Group LLC. All rights reserved.
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This document is addressed to professional clients only.
This document is a financial promotion and is issued by Neuberger Berman Europe Limited, which is authorised and regulated by the Financial Conduct Authority and is registered in England and Wales, at Lansdowne House, 57
Berkeley Square, London, W1J 6ER and is also a Registered Investment Adviser with the Securities and Exchange Commission in the U.S. and regulated by the Dubai Financial Services Authority.
This document is presented solely for information purposes and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security.
We do not represent that this information, including any third party information, is complete and it should not be relied upon as such.
No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. Each recipient of this document should make such investigations as it deems necessary to arrive at an
independent evaluation of any investment, and should consult its own legal counsel and financial, actuarial, accounting, regulatory and tax advisers to evaluate any such investment.
It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable.
Any views or opinions expressed may not reflect those of the firm as a whole.
All information is current as of the date of this material and is subject to change without notice.
The product described in this document may only be offered for sale or sold in jurisdictions in which or to persons to which such an offer or sale is permitted. The product can only be promoted if such promotion is made in
compliance with the applicable jurisdictional rules and regulations.
Indices are unmanaged and not available for direct investment.
An investment in this product involves risks, with the potential for above average risk, and is only suitable for people who are in a position to take such risks.
Past performance is not a reliable indicator of current or future results. The value of investments may go down as well as up and investors may not get back any of the amount invested. The performance data does not take account
of the commissions and costs incurred on the issue and redemption of units.
The value of investments designated in another currency may rise and fall due to exchange rate fluctuations in respect of the relevant currencies. Adverse movements in currency exchange rates can result in a decrease in return and
a loss of capital.
Tax treatment depends on the individual circumstances of each investor and may be subject to change, investors are therefore recommended to seek independent tax advice.
Investment in this strategy should not constitute a substantial proportion of an investor’s portfolio and may not be appropriate for all investors. Diversification and asset class allocation do not guarantee profit or protect against loss.
No part of this document may be reproduced in any manner without prior written permission of Neuberger Berman Europe Limited.
The “Neuberger Berman” name and logo are registered service marks of Neuberger Berman Group LLC.
© 2018 Neuberger Berman Group LLC. All rights reserved.
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