Launch of Neuberger Berman Systematic Global Equity Trust

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Neuberger Berman has launched its Systematic Global Equity Trust in Australia, providing investors with exposure to a diversified portfolio of companies across both developed and emerging markets globally. Equity Trustees Limited is the responsible entity of the Trust, and Future Generation Global Investment Company Limited is the first investor.

The Trust is managed in line with Neuberger Berman’s existing Systematic Global Equity (“SGE”) strategy already available to investors in other regions of the world, and is managed by Neuberger Berman’s Quantitative Investment Group.   

Mr Lucas Rooney, joint managing director of Neuberger Berman Australia, says the launch is in response to investor interest in the uncommon characteristics of the investment strategy. The SGE composite strategy has outperformed more than 90% of its global equity peers, across its 5+ year track record, based on the eVestment Global All Cap Core Equity category[if !supportFootnotes][1][endif]. It has delivered 3.55% per annum over the MSCI World Index since inception, outperforming in every 12 month period and with alpha diversified by sector, region and during both “up” and “down” markets[if !supportFootnotes][2][endif]. The Trust will be benchmarked to the MSCI ACWI Index and will avoid tobacco related companies.

“The investment philosophy behind the systematic global equity strategy is that investor behaviour is flawed, with behavioural biases generally resulting in over/under reactions in their investment decision making,” Mr Rooney said.

“The strategy aims to identify undervalued, quality companies with improving business prospects in the belief that a company with the optimal balance of these three characteristics should perform well. 

Mr Rooney noted that the existing SGE strategy’s consistent performance is a reflection of an investment process that is less subject to investor bias; is comprehensive in its ability to screen a stock universe spanning a significant number of markets globally; and is repeatable.

“In summary, we believe that the systematic approach offers a consistent, unbiased view of the global equity stock universe,” Mr Rooney said. 

Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages equities, fixed income, private equity and hedge fund portfolios for institutions and advisors worldwide. With offices in 18 countries, Neuberger Berman’s team is more than 2,155 professionals and the company was named by Pensions & Investments as a 2013 and 2014 Best Place to Work in Money Management. Tenured, stable and long-term in focus, the firm fosters an investment culture of fundamental research and independent thinking. It manages $251 billion in client assets as of 30 June 2015.

For more information, please visit our website at www.nb.com.Neuberger Berman manages approximately A$3 billion in equities, fixed income and alternative assets for Australian clients as of 31 July 2015. Its Australian subsidiary, Neuberger Berman Australia Pty Limited, is holder of Australian Financial Services Licence No. 391401.

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For further information please contact:

Lucas Rooney
Phone: 03 9649 0912

Paul O’Halloran
Phone: 03 9649 0906

This material is provided for informational purposes only. Nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. All information is current as of the date of this material and is subject to change without notice. Certain products and services may not be available in all jurisdictions or to all client types. Gross of fees returns do not reflect the deduction of investment advisory fees and other expenses. If such fees and expenses were reflected, returns shown would be lower.  Indexes are unmanaged and are not available for direct investment. Investing entails risks, including possible loss of principal. Unless otherwise indicated, returns shown reflect reinvestment of dividends and distributions. Past performance is no guarantee of future results.

The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of November 27, 2013, the MSCI World Index consists of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.

The MSCI ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. As of May 30, 2014, the MSCI ACWI consists of 46 country indices comprising 23 developed and 23 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indices included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and the UAE.

eVestment Global All Cap Core Equity – Global Equity products that invest primarily in small, mid, and large capitalization stocks with fundamental characteristics between growth and value or products that invest in a relatively even mix of growth and valuestocks/sectors. The expected benchmarks for this universe would include the MSCI World index and the MSCI ACWI index. Managers in this category will typically indicate a “Primary Capitalization Emphasis” equal to Large Cap and a “Primary Style Emphasis” equal to Core.

All information is as of June 30, 2015 unless otherwise indicated and is subject to change without notice.  Firm data, including employee and assets under management figures, reflects collective data for the various affiliated investment advisers that are subsidiaries of Neuberger Berman Group LLC.  Firm history dates back to the 1939 founding of Neuberger & Berman (the predecessor to Neuberger Berman LLC). 

This document, and the information contained in it, has been prepared by Neuberger Berman Australia Pty Ltd (ACN 146 033 801), holder of Australian Financial Services Licence No. 391401 (“NB Australia”).  

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

© 2015 Neuberger Berman Group LLC. All rights reserved.

eVestment Global All Cap Core Equity universe rankings as of 30 June 2015.

The inception date for Neuberger Berman’s Systematic Global Equity composite strategy is April 1, 2010. Results quoted are as of June 30, 2015 and gross of fees. Past performance is not an indication of future results.