The Directors of the Company whose names appear in the Management and Administration section of the Prospectus accept responsibility for the information contained in this document. To the best of the knowledge and belief of the Directors (who have taken all reasonable care to ensure that such is the case) the information contained in this document is in accordance with the facts and does not omit anything likely to affect the importance of such information. The Directors accept responsibility accordingly. NEUBERGER BERMAN INVESTMENT FUNDS PLC (An investment company with variable capital constituted as an umbrella fund with segregated liability between sub-funds under the laws of Ireland and authorised by the Central Bank of Ireland pursuant to the European Communities (Undertaking for Collective Investment in Transferable Securities) Regulations 2011, as amended) GLOBAL EQUITY SUPPLEMENT 6 FEBRUARY 2015 This document forms part of, and should be read in the context of and together with, the prospectus dated 6 February 2015 (the Prospectus ) in relation to Neuberger Berman Investment Funds plc (the Company ) and contains information relating to the following sub-funds, each of which is a separate portfolio of the Company: NEUBERGER BERMAN EMERGING MARKETS EQUITY FUND NEUBERGER BERMAN GLOBAL EQUITY INCOME FUND NEUBERGER BERMAN GLOBAL EQUITY FUND NEUBERGER BERMAN SYSTEMATIC GLOBAL EQUITY FUND (the Portfolios )
CONTENTS Definitions... 3 Investment Risks... 3 Distribution Policy... 4 Portfolios... 5 Neuberger Berman Emerging Markets Equity Fund... 5 Neuberger Berman Global Equity Income Fund... 8 Neuberger Berman Global Equity Fund... 11 Neuberger Berman Systematic Global Equity Fund... 14
Definitions In this Supplement the following words and phrases shall have the meanings indicated below: Business Day Dealing Day Dealing Deadline Net Asset Value Calculation Time Portfolios Sub-Investment Manager with respect to each Portfolio, a day (except Saturday or Sunday) on which the relevant financial markets in the Hague, London and New York are open for business; each Business Day or such other day or days as the Directors may determine and notify to the Administrator and to Shareholders in advance, provided there shall be at least two (2) Dealing Days per month in each Portfolio; 3.00 pm (Irish time) in respect of each Portfolio. In exceptional circumstances a Director may authorise the acceptance of a subscription or redemption application, up to 4.30 p.m. (Irish time) on the relevant Dealing Day; 10.00 pm (Irish time) on the relevant Dealing Day or such other time as the Directors may determine in respect of a Portfolio; the Neuberger Berman Emerging Markets Equity Fund, the Neuberger Berman Global Equity Income Fund, the Neuberger Berman Global Equity Fund and the Neuberger Berman Systematic Global Equity Fund; and Neuberger Berman LLC or such other company as may be appointed by the Investment Manager from time to time in respect any particular Portfolio, with the prior approval of the Company and the Central Bank. Investment Risks Investment in the Portfolios carries certain risks, which are described below and, in greater detail, in the Investment Risks section of the Prospectus. These risks are not purported to be exhaustive and potential investors should review this Supplement and the Prospectus in their entirety and consult with their professional advisers, before making an application for Shares. There can be no assurance that the Portfolios will achieve their respective objectives. While there are some risks described below that may be common to a number or all of the Portfolios, there may also be specific risk considerations which apply only to particular Portfolios EXCHANGE TRADED FUNDS ( ETFs ) ETFs are investment companies whose shares are bought and sold on a securities exchange. ETFs invest in a portfolio of securities designed to track a particular market segment or index. ETFs, like mutual funds, have expenses associated with their operation, including advisory fees. When a Portfolio invests in an ETF, in addition to directly bearing expenses associated with its own operations, it will bear a pro rata portion of the ETF s expenses. Such ETF s expenses may make owning shares of the ETF more costly than owning the underlying securities directly. The risks of owning shares of an ETF generally reflect the risks of owning the underlying securities the ETF is designed to track, although lack of liquidity in an ETF could result in its value being more volatile than the underlying portfolio of securities. EMERGING MARKET ECONOMIES All securities investing and trading activities risk the loss of capital. While the Investment Manager attempts to moderate these risks, there can be no assurance that the Company s investment and trading activities will be successful or that investors will not suffer significant losses. Investing in emerging markets may involve heightened risks (some of which could be significant) and special considerations not typically associated with investing in other more established economies or securities markets. Such risks may include, but are not limited to: (a) greater social, economic and political uncertainty including war; (b) higher dependence on exports and the corresponding importance of international trade; (c) greater risk of inflation; (d) increased likelihood of governmental involvement in and control over the economies; (e) governmental decisions to cease support of economic reform programs or to impose centrally planned economies; and (f) certain considerations regarding the maintenance of Company's securities and cash with non-u.s. brokers and securities depositories. Investors should refer to the Investment Risks section of the Prospectus for further information in relation to the risks associated with investing in emerging markets. 3
Investors should refer to the Investment Risks section of the Prospectus for further information in relation to the risks associated with investing in the Portfolios. Frequency of Distributions Distribution Policy DISTRIBUTING CLASSES When available, the Directors intend that dividends in respect of each of the Distributing Classes of the Neuberger Berman Global Equity Income Fund will be paid on a quarterly basis. Distributing Classes of the other Portfolios shall be declared on an annual basis and paid on or before 30 June in each year in relation to the Net Income of the Distributing Classes for the calendar year ended the previous 31 December. 4
Portfolios Neuberger Berman Emerging Markets Equity Fund An investment in the Portfolio should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors. Investment Objective Achieve long-term capital growth. Investment Approach The Portfolio will invest primarily in equity and equity-linked securities which are listed or traded on Recognised Markets globally and issued by companies that: (1) trade principally on a recognised stock exchange in Emerging Market Countries; (2) are organised under the laws of and have a principal office in Emerging Market Countries; or (3) derive 50% or more of their total revenues from, and/or have 50% or more of their total assets in, goods produced, sales made, profits generated or services performed in Emerging Market Countries. The Portfolio may invest more than 20% of its assets in other collective investment schemes. The Sub-Investment Manager uses a fundamental bottom-up, research-driven securities selection approach focusing on high return businesses while factoring in economic, legislative and business developments to identify countries and economic sectors (such as energy, financials, health care, telecommunications and utilities) that it believes may be particularly attractive. The Sub-Investment Manager seeks to invest in companies that it believes have sustainable free cash flow growth and are trading at attractive valuations. The Sub-Investment Manager believes that in-depth, strategic and financial research is the key to identifying undervalued companies and seeks to identify companies with the following characteristics: Stock prices undervalued relative to long-term cash flow growth potential; Industry leadership; Potential for significant improvement in the company s business; Strong financial characteristics; Strong corporate governance practices; and Management track record. The Portfolio seeks to reduce risk by diversifying among many industries within the countries and economic sectors it identifies. Although it has the flexibility to invest a significant portion of its assets in one country or region, it generally intends to remain diversified across countries and geographical regions. The Sub-Investment Manager follows a disciplined selling strategy and may sell a stock when it reaches a target price, when the company s business fails to perform as expected, or when other opportunities appear more attractive. Benchmark Base Currency The Portfolio may invest in companies of any market capitalisation and may include a broader geographical exposure than the country constituents of the index disclosed below under Benchmark. The MSCI EM Index (USD Total Return Gross of fees), which is a market capitalisation weighted index composed of 21 countries (Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey). Investors should note that the Portfolio does not intend to track this index, which is included here for performance comparison purposes only. US Dollars (USD) 5
Instruments / Asset Classes The Portfolio may invest in: Equity and Equity-linked Securities. These securities may include, without limitation, common stock, preferred stock, convertible bonds, convertible preferred stock and American, European and Global Depository Receipts, which are securities issued by a financial institution which evidence ownership interests in a security or a pool of securities deposited with the financial institution. ETFs. ETFs are investment companies whose shares are bought and sold on a securities exchange. ETFs invest in a portfolio of securities designed to track a particular market segment or index, in this case emerging equity markets. The ETFs will be located in a Member State of the European Economic Area or in the United States and will be authorised under the UCITS Directive or will be non-ucits which are eligible for investment by the Portfolio in accordance with the requirements of the Central Bank. The ETFs will represent investments that are similar to the Fund s other investments. The ETFs will operate on the principle of risk spreading and will not be leveraged. Equity Real Estate Investment Trusts ("REITs"). REITs are companies or trusts that pool investor money and invest mainly in income producing real estate, although it should be noted that the Portfolio will not acquire any real estate directly. REITs may invest in a diverse range of real estate properties or may specialise in a particular type of property. The REITS which the Portfolio will invest in may be based globally but will give exposure to underlying properties located in Emerging Market Countries. They will invest the majority of their assets directly in real property and derive their income from rents and capital gains from appreciation realised through property sales. Participatory Notes which are freely transferable securities issued by banks or broker-dealers that are designed to replicate the performance of certain issuers and markets by giving exposure to the performance of specific stocks that the Portfolio may not be able to invest in directly because of local holding restrictions affecting such stocks in the jurisdiction of their issue. Any debt instruments invested in may be issued by corporate or government issuers, may be rated or unrated (although not more than 30% of NAV will be invested in debt instruments which are rated below investment grade) and may have fixed or floating interest rates. Investment Restrictions Risk Typical Investor Profile The Portfolio may, subject to the conditions and limits imposed by the Central Bank as set out in this Supplement, use FDI, including, without limitation, convertible bonds and convertible preferred stock which may be used for investment purposes or to hedge or to achieve exposure to a particular security. Convertible bonds enable the holder to convert their investment in the bonds into the issuer s common stock at a pre-agreed price and convertible preferred stock enable the holder to convert their investment in the preferred stock into the issuer s common stock at a pre-agreed rate. The Portfolio will be leveraged as a result of its investments in FDI but such leverage will not exceed 100% of the Portfolio s Net Asset Value at any time. Investments in any one ETF may not exceed 20% of the NAV of the Portfolio. Investments in non-ucits ETFs may not exceed, in aggregate, 30% of the NAV of the Portfolio. The Portfolio may invest up to 10% of its net assets in securities that are issued or guaranteed by a single sovereign issuer that are below investment grade. The Portfolio will seek to reduce risk by diversifying among securities from a broad range of countries, sectors and industries. The Sub-Investment Manager may be delayed in or prevented from investing in certain Emerging Market Countries by local restrictions on foreign investment. or registration requirements for foreign investors, such as the Portfolio The Sub-Investment Manager will use forward foreign currency exchange contracts in order to hedge currency risk. Investors should refer to the Investment Restrictions and Investment Risks sections for information in relation to the risks associated with the use of derivative instruments and the Company s risk management policy with respect to FDI contained in the RMP Statement. The Portfolio may be suitable for investors seeking an exposure to emerging market equities through an investment approach that is diversified across industries, countries and regions. 6
Initial Subscriptions Subscriptions for Shares in all Classes at the Initial Offer Price will be considered during the Initial Offer Period, upon receipt by the Administrator of completed share applications and subscription monies as specified in the Subscriptions section of the Prospectus. Such Shares will be issued on the last day of the Initial Offer Period. The Initial Offer Period shall run from 9.00 am on the Business Day following the date of this Supplement to 5.00 pm on 5 August 2015 or such earlier or later time as the Directors may determine at their discretion and notify to the Central Bank and to subscribers. The Initial Offer Price for each of the share classes shall be as follows: USD Classes: USD 10 AUD Classes: AUD 10 BRL Classes: BRL 20 CAD Classes: CAD 10 CHF Classes: CHF 10 CLP Classes: CLP 5,000 CNY Classes: CNY 100 DKK Classes: DKK 50 EUR Classes: EUR 10 GBP Classes: GBP 10 HKD Classes: HKD 10 ILS Classes: ILS 30 JPY Classes: JPY 1,000 NZD Classes: NZD 10 SEK Classes: SEK 100 SGD Classes: SGD 20 ZAR Classes: ZAR 100 Thereafter, Shares will be issued at their Net Asset Value per Share, subject to the provision for Duties and Charges in respect of the issue of the Shares and rounding as provided for in the Articles on each Dealing Day. Application has been made for Shares in each of the Classes to be admitted to the Official List and to trading on the Main Securities Market of the Irish Stock Exchange and such Shares are expected to be admitted to listing on or about 5 August 2015. Fees and Expenses Category Initial Charge Management fee Shareholder Administration Fee Distribution Fee A 5.00% 2.00% 0.20% 0.00% B, C1, C2, E 0.00% 2.00% 0.20% 1.00% C 0.00% 1.30% 0.20% 1.00% D, I, I2, I3, I4 0.00% 1.00% 0.20% 0.00% I5 0.00% 1.00% 0.20% 0.00% M 5.00% 2.00% 0.20% 1.00% P 5.00% 0.95% 0.20% 0.00% T 5.00% 2.00% 0.20% 0.00% U 3.00% 1.50% 0.20% 0.00% Z 0.00% 0.00% 0.20% 0.00% Distribution Policy Accumulating Classes, Distributing Classes, (Monthly) Distributing Classes and (Weekly) Distributing Classes are available in each currency in all Categories. 7
Neuberger Berman Global Equity Income Fund An investment in the Portfolio should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors. Investment Objective Achieve an attractive level of total return from income-oriented securities listed or traded on global equity markets. Investment Approach The Portfolio will seek to achieve this objective by investing primarily in global liquid securities, including, without limitation, equity and equity-linked securities with an attractive current dividend yield relative to that of the MSCI ACWI (All Country World Index) and which are listed or traded on Recognised Markets located in the countries comprising the MSCI ACWI (All Country World Index) (which may include Emerging Market Countries) and described in the Instruments/Asset Classes section. The Sub-Investment Manager will screen for equity securities with an attractive current dividend yield prior to employing a bottom-up, relative value approach within a framework of global themes identified through its proprietary research and rigorous on-site meetings with managements, globally. In identifying potential investments, the Sub-Investment Manager will consider a number of factors including: A bottom-up approach to security selection, focused on discounted free cash flow and net asset value; Sound corporate governance; Sustainable competitive advantage; Pricing power; Attractive industry dynamics; and High return on assets. The Sub-Investment Manager believes that value creation can be generated by identifying catalysts, such as potential supply/demand imbalances, regulatory changes, competitive shifts, reaccelerating earnings and corporate/management restructuring. The Sub-Investment Manager s disciplined approach seeks to avoid consensus thinking and remain focused on long-term outperformance. Benchmark The MSCI ACWI (All Country World Index) (USD Total Return Gross of fees) is a free float-adjusted market capitalisation weighted index that is designed to measure the equity market performance of developed and emerging markets. As of 3 May 2013, the index consisted of 45 country indices comprising 24 developed and 21 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, 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, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. Investors should note that the Portfolio does not intend to track this index, which is included here for performance comparison purposes only. Base Currency US Dollars (USD) Instruments / Asset Classes The Portfolio will primarily invest in equity and equity-linked securities including, without limitation, common stock, preferred stock, convertible debentures, convertible preferred stock and American, European and Global Depository Receipts, which are securities issued by a financial institution which evidence ownership interests in a security or a pool of securities deposited with the financial institution. 8
In addition, options on equity securities may be used to attempt to generate additional income by selling calls and/or puts on equity securities, subject to the conditions and limits imposed by the Central Bank as set out in this Supplement. As the Portfolio may purchase FDI generally using only a fraction of the assets that would be needed to purchase the relevant securities directly, the remainder of the assets allocated to the Investment Manager may be invested in the other types of securities listed above. The Investment Manager may therefore seek to achieve greater returns by taking exposure to the performance of such securities through purchasing FDI which give exposure to them rather than purchasing the securities themselves and investing the remaining assets in other such securities to add excess return. Investment Restrictions Risk Typical Investor Profile Initial Subscriptions A maximum of 20% of the Portfolio s Net Asset Value may be held in cash or cash equivalents. A maximum of 30% of the Portfolio s Net Asset Value may be invested in equity securities issued by issuers which are domiciled in or which are listed or traded in Emerging Market Countries. The Portfolio s exposure to Emerging Market Countries is calculated excluding exposure to American, European and Global Depository Receipts where refer to securities issued by issuers which are domiciled in or which are listed or traded in Emerging Market Countries. The Portfolio will not invest in securities that are issued or guaranteed by a single sovereign issuer that are below investment grade. The Portfolio may be leveraged as a result of its use of FDI. The Investment Manager will use forward foreign currency exchange contracts in order to hedge the currency exposure of the Hedged Classes. Investors should refer to the Investment Restrictions and Investment Risks sections for information in relation to the risks associated with investing in equities, Emerging Market Countries and the use of FDI and the Company s risk management policy with respect to FDI contained in the RMP Statement. The Portfolio may be suitable for investors seeking long-only investment exposure to global equities through an investment approach that is unconstrained by individual market capitalisation weightings of companies and who are prepared to accept the risks associated with the use of FDI. Subscriptions for Shares in all Classes at the Initial Offer Price will be considered during the Initial Offer Period, upon receipt by the Administrator of completed share applications and subscription monies as specified in the Subscriptions section of the Prospectus. Such Shares will be issued on the last day of the Initial Offer Period. The Initial Offer Period shall run from 9.00 am on the Business Day following the date of this Supplement to 5.00 pm on 5 August 2015 or such earlier or later time as the Directors may determine at their discretion and notify to the Central Bank and to subscribers. The Initial Offer Price for each of the share classes shall be as follows: USD Classes: USD 10 AUD Classes: AUD 10 BRL Classes: BRL 20 CAD Classes: CAD 10 CHF Classes: CHF 10 CLP Classes: CLP 5,000 CNY Classes: CNY 100 DKK Classes: DKK 50 EUR Classes: EUR 10 GBP Classes: GBP 10 HKD Classes: HKD 10 ILS Classes: ILS 30 JPY Classes: JPY 1,000 NZD Classes: NZD 10 SEK Classes: SEK 100 9
SGD Classes: SGD 20 ZAR Classes: ZAR 100 Thereafter, Shares will be issued at their Net Asset Value per Share, subject to the provision for Duties and Charges in respect of the issue of the Shares and rounding as provided for in the Articles on each Dealing Day. Application has been made for Shares in each of the Classes to be admitted to the Official List and to trading on the Main Securities Market of the Irish Stock Exchange and such Shares are expected to be admitted to listing on or about 5 August 2015. Fees and Expenses Category Initial Charge Management fee Shareholder Administration Fee Distribution Fee A 5.00% 1.70% 0.20% 0.00% B, C1, C2, E 0.00% 1.80% 0.20% 1.00% C 0.00% 1.10% 0.20% 1.00% D, I, I2, I3, I4 0.00% 0.85% 0.20% 0.00% I5 0.00% 0.85% 0.20% 0.00% M 5.00% 1.70% 0.20% 1.00% P 5.00% 0.80% 0.20% 0.00% T 5.00% 1.80% 0.20% 0.00% U 3.00% 1.25% 0.20% 0.00% Z 0.00% 0.00% 0.20% 0.00% Distribution Policy Accumulating Classes, Distributing Classes, (Monthly) Distributing Classes and (Weekly) Distributing Classes are available in each currency in all Categories. 10
Neuberger Berman Global Equity Fund An investment in the Portfolio should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors. Investors should note that the Portfolio may achieve its investment objective by investing in financial derivative instruments as described below Investment Objective Seek to achieve long term capital growth. Investment Approach The Portfolio will seek to achieve its objective by investing primarily in equity securities that are listed or traded on Recognised Markets globally (which may include Emerging Market Countries) and issued by companies across all market capitalisations and industrial sectors. The Portfolio may invest in excess of 20% of its Net Asset Value in equity securities that are issued by companies domiciled in Emerging Market Countries. The Portfolio seeks to reduce risk by diversifying among many industries within the countries and economic sectors it identifies. Although it has the flexibility to invest a significant portion of its assets in one country or region, it generally intends to remain diversified across countries and geographical regions. The Sub-Investment Manager will screen for equity securities with a high return on equity or invested capital prior to employing a bottom-up, approach identifying individual companies through its proprietary research and rigorous on-site meetings with managements, globally. In identifying potential investments, the Sub-Investment Manager will consider a number of factors including: A bottom-up approach to security selection, focused on discounted free cash flow Sustainable competitive advantage; Attractive industry dynamics; and Reasonable valuations Exposure will be through direct investments and/or through investment in collective investment schemes and/or FDI and/or cash as described below. Benchmark Base Currency The MSCI ACWI (All Country World Index) (USD Total Return Gross of fees) is a free float-adjusted market capitalisation weighted index that is designed to measure the equity market performance of developed and emerging markets. As of 14 July 2014, the index consisted of 46 country indices comprising 23 developed and 23 emerging market country indices. Investors should note that the Portfolio does not intend to track this index, which is included here for performance comparison purposes only. US Dollars (USD) Instruments / Asset Classes The Portfolio will primarily invest in equity securities issued by issuers in any industrial sector globally and which securities may include common and preferred stocks, rights and warrants to purchase common stock, depository receipts, initial public offerings, secondary market offerings real estate investment trusts ( REITs ), which are listed or traded on Recognised Markets globally. A secondary market offering is a registered offering of a large block of a security that has been previously issued to the public. The Portfolio may also invest on an ancillary basis in cash and cash equivalents including certificates of deposits, treasury deposits. In addition, the Portfolio may invest in collective investment schemes which are themselves exposed to investments that are similar to the Portfolio s investments in equity securities, as described above, provided that the Portfolio may not invest in other 11
collective investment schemes which themselves invest more than 10% in other collective investment schemes. Such collective investment schemes may or may not be managed by the Investment Manager and/or Sub-Investment Manager or its affiliates and will comply with the requirements of the UCITS Regulations in respect of such investments. The collective investment schemes in which the Portfolio may invest will be eligible collective investment schemes in accordance with the Central Bank s rules, which may be domiciled in member states of the EEA or the United States of America and will qualify as UCITS or non-ucits schemes and will be regulated as such by their home state regulator. Collective investment schemes in which the Portfolio invests may be leveraged but such collective investment schemes will not generally be leveraged: (i) in excess of 100% of their net asset value; or (ii) so that their 1 day absolute value-at-risk exceeds 4.47% of their net asset value over a 250 day horizon with a 99% confidence level; or (iii) so that their 1 month relative value-at-risk exceeds twice the value-at-risk of a comparable benchmark portfolio over a 250 day horizon with a 99% confidence level, depending on how such collective investment schemes measure their global exposure. FDI will be used for hedging, efficient portfolio management and/or investment purposes and subject to the conditions and limits imposed by the Central Bank as set out in this Supplement: Futures contracts on equity securities, interest rates and currencies may be used to hedge or to gain an increase in the value of securities of the types described above; Options on equity securities may be used to achieve a profit as well as to hedge existing long positions; Equity swaps may be used to achieve a profit as well as to hedge existing long positions; and Forward contracts may be used to achieve a profit as well as to hedge existing long currency exposures. The Portfolio can invest up to 100% of its net assets in futures contracts to gain exposure to an increase in the value of a security, currency or deposit in order to make temporary adjustments arising from subscription and redemption transactions, provide liquidity and/or to hedge currency risk. As the Portfolio may purchase FDI generally using only a fraction of the assets that would be needed to purchase the relevant securities directly, the remainder of the assets allocated to the Sub-Investment Manager may be invested in the other types of securities listed above. The Sub-Investment Manager may therefore seek to achieve greater returns by taking exposure to the performance of such securities through purchasing FDI which give exposure to them rather than purchasing the securities themselves and investing the remaining assets in other such securities to add excess return. Investment Restrictions Risk Typical Investor Profile The Portfolio may be leveraged as a result of its investments in FDI but such leverage will not exceed the Portfolio s Net Asset Value at any time. The Portfolio may expose up to 10% of its Net Asset Value in aggregate to the performance of other collective investment schemes which will comply with both the Investment Restrictions section of the Prospectus and the UCITS Regulations. The Investment Manager may use future foreign currency exchange contracts in order to hedge some currency risk. Investors should refer to the Investment Restrictions and Investment Risks sections for information in relation to the risks associated with the use of derivative instruments and the Company s risk management policy with respect to FDI contained in the RMP Statement. The Portfolio may be suitable for an investor seeking long term capital appreciation over a mid-to-long term horizon, typically three years or longer. The investor should be prepared to accept periods of market volatility and the risks of the stock market in pursuit of long term goals, given the ability of the Portfolio to invest in securities of issued by Emerging Market Countries. 12
Initial Subscriptions Subscriptions for Shares in all Classes at the Initial Offer Price will be considered during the Initial Offer Period, upon receipt by the Administrator of completed share applications and subscription monies as specified in the Subscriptions section of the Prospectus. Such Shares will be issued on the last day of the Initial Offer Period. The Initial Offer Period shall run from 9.00 am on the Business Day following the date of this Supplement to 5.00 pm on 5 August 2015 or such earlier or later time as the Directors may determine at their discretion and notify to the Central Bank and to subscribers. The Initial Offer Price for each of the share classes shall be as follows: USD Classes: USD 10 AUD Classes: AUD 10 BRL Classes: BRL 20 CAD Classes: CAD 10 CHF Classes: CHF 10 CLP Classes: CLP 5,000 CNY Classes: CNY 100 DKK Classes: DKK 50 EUR Classes: EUR 10 GBP Classes: GBP 10 HKD Classes: HKD 10 ILS Classes: ILS 30 JPY Classes: JPY 1,000 NZD Classes: NZD 10 SEK Classes: SEK 100 SGD Classes: SGD 20 ZAR Classes: ZAR 100 Thereafter, Shares will be issued at their Net Asset Value per Share, subject to the provision for Duties and Charges in respect of the issue of the Shares and rounding as provided for in the Articles on each Dealing Day. Application has been made for Shares in each of the Classes to be admitted to the Official List and to trading on the Main Securities Market of the Irish Stock Exchange and such Shares are expected to be admitted to listing on or about 5 August 2015. Fees and Expenses Category Initial Charge Management fee Shareholder Administration Fee Distribution Fee A 5.00% 1.50% 0.20% 0.00% B, C1, C2, E 0.00% 1.80% 0.20% 1.00% C 0.00% 1.00% 0.20% 1.00% D, I, I2, I3, I4 0.00% 0.75% 0.20% 0.00% I5 0.00% 0.75% 0.20% 0.00% M 5.00% 1.50% 0.20% 0.80% P 5.00% 0.71% 0.20% 0.00% T 5.00% 1.80% 0.20% 0.00% U 3.00% 1.10% 0.20% 0.00% Z 0.00% 0.00% 0.20% 0.00% Distribution Policy Accumulating Classes, Distributing Classes and (Monthly) Distributing Classes are available in each currency in all Categories. 13
Neuberger Berman Systematic Global Equity Fund An investment in the Portfolio should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors. Investors should note that the Portfolio may achieve its investment objective by investing in financial derivative instruments as described below. Investment Objective Seek to achieve long term capital growth. Investment Approach The Portfolio will seek to achieve its objective by investing primarily in equity securities issued by companies that are listed or traded on Recognised Markets globally (which may include Emerging Market Countries). The Portfolio seeks to reduce risk by diversifying among many industries within the countries and economic sectors it identifies. Although it has the flexibility to invest a significant portion of its assets in any one country or region, it generally intends to remain diversified across countries and geographical regions. The Portfolio may invest in excess of 20% of its Net Asset Value in equity securities issued by companies domiciled in Emerging Market Countries. The investment process has five phases: generate investment themes, identify the current market regime, forecast expected return and risk for individual stocks, develop independent country allocation views and portfolio construction. The Sub-Investment Manager performs research to identify investment themes (i.e. characteristics of stocks that it believes are systematically linked to the generation of better than average returns. As a result of this research, the Sub-Investment Manager has identified themes that will drive the stock selection. Investment themes which will be used in assessing the characteristics of security issuers and drive individual stock selection include but are not limited to the valuation, earnings quality, price dynamics and sentiment of each issue. The Sub-Investment Manager forecasts how these themes are likely to fare under the current market environment. Based on this analysis, the Sub-Investment Manager assigns all potential investments and their expected return and the stocks with the highest expected returns are the primary candidates for investment by the Portfolio. Country selection and the target allocations of the Portfolio s assets to individual countries are driven by a separate assessment of each country s equity market characteristics, including but not limited to, its valuation level relative to other countries, recent earnings revisions levels, currency strength and the relative price momentum. The Sub-Investment Manager may select from securities issued by companies domiciled in countries which are represented in the MSCI ACWI (All Country World Index) (USD Total Return Gross of fees). The Portfolio is constructed by reference to the target country allocations and the best stocks within each region, based on the Sub-Investment Manager s assessment of expected returns, incorporating each stock s return and risk estimates, subject to various constraints such as tracking error, transaction costs, sector exposure and liquidity considerations. The Portfolio is reassessed monthly to incorporate new information as it arises and more frequently if the market conditions require. The Portfolio s investments are monitored daily and individual stocks can be sold at the discretion of the Sub- Investment Manager, due to significant changes in business, environment or company events. New purchases are derived from the monthly reassessment of the investment universe, using the investment processes described above. Exposure will be obtained through direct investments and/or through investment in 14
collective investment schemes and/or FDI as described below. Benchmark Base Currency The MSCI ACWI (All Country World Index) (USD Total Return Gross of fees) is a free float-adjusted market capitalisation weighted index that is designed to measure the equity market performance of developed and emerging markets. As of 14 July 2014, the index consisted of 46 country indices comprising 23 developed and 23 emerging market country indices. Investors should note that the Portfolio does not intend to track this index, which is included here for performance comparison purposes only. US Dollars (USD) Instruments / Asset Classes The Portfolio will primarily invest in equity securities issued by issuers in any industrial sector globally and which securities may include common and preferred stocks, rights and warrants to purchase common stock, depositary receipts, real estate investment trusts ( REITs ) and UCITS eligible partnership interests, which are listed or traded on Recognised Markets globally. Partnership interests are effectively equivalent to shares but are issued by an issuer established as a limited partnership instead of as a company. In addition, the Portfolio may invest in collective investment schemes which are themselves exposed to investments that are similar to the Portfolio s investments in equity securities, as described above, provided that the Portfolio may not invest in other collective investment schemes which themselves invest more than 10% in other collective investment schemes. Such collective investment schemes may or may not be managed by the Investment Manager and/or Sub-Investment Manager or its affiliates and will comply with the requirements of the UCITS Regulations in respect of such investments. The collective investment schemes in which the Portfolio may invest will be eligible collective investment schemes in accordance with the Central Bank s rules, which may be domiciled in member states of the EEA or the United States of America and will qualify as UCITS or non-ucits schemes and will be regulated as such by their home state regulator. Collective investment schemes in which the Portfolio invests may be leveraged but such collective investment schemes will not generally be leveraged: (i) in excess of 100% of their net asset value; or (ii) so that their 1 day absolute value-at-risk exceeds 4.47% of their net asset value over a 250 day horizon with a 99% confidence level; or (iii) so that their 1 month relative value-at-risk exceeds twice the value-at-risk of a comparable benchmark portfolio over a 250 day horizon with a 99% confidence level, depending on how such collective investment schemes measure their global exposure. Forward contracts may be used to achieve a profit as well as to hedge existing long currency exposures, subject to the conditions and limits imposed by the Central Bank as set out in this Supplement. As the Portfolio may purchase FDI generally using only a fraction of the assets that would be needed to purchase the relevant securities directly, the remainder of the assets allocated to the Sub-Investment Manager may be invested in the other types of securities listed above. The Sub-Investment Manager may therefore seek to achieve greater returns by taking exposure to the performance of such securities through purchasing FDI which give exposure to them rather than purchasing the securities themselves and investing the remaining assets in other such securities to add excess return. Investment Restrictions The Portfolio may be leveraged as a result of its investments in FDI but such leverage will not exceed the Portfolio s Net Asset Value at any time. The Portfolio may expose up to 10% of its Net Asset Value in aggregate to the performance of other collective investment schemes which will comply with both the Investment Restrictions section of the Prospectus and the UCITS Regulations. 15
Risk Typical Investor Profile Initial Subscriptions The Investment Manager may use forward foreign currency exchange contracts in order to hedge currency risk. Investors should refer to the Investment Restrictions and Investment Risks sections for information in relation to the risks associated with the use of derivative instruments and the Company s risk management policy with respect to FDI contained in the RMP Statement. The Portfolio may be suitable for an investor seeking long term capital appreciation over a mid-to-long term horizon, typically three years or longer. The investor should be prepared to accept periods of market volatility and the risks of the stock market in pursuit of long term goals, given the ability of the Portfolio to invest in securities of issued by Emerging Market Countries. Subscriptions for Shares in all Classes at the Initial Offer Price will be considered during the Initial Offer Period, upon receipt by the Administrator of completed share applications and subscription monies as specified in the Subscriptions section of the Prospectus. Such Shares will be issued on the last day of the Initial Offer Period. The Initial Offer Period shall run from 9.00 am on the Business Day following the date of this Supplement to 5.00 pm on 5 August 2015 or such earlier or later time as the Directors may determine at their discretion and notify to the Central Bank and to subscribers. The Initial Offer Price for each of the share classes shall be as follows: USD Classes: USD 10 AUD Classes: AUD 10 BRL Classes: BRL 20 CAD Classes: CAD 10 CHF Classes: CHF 10 CLP Classes: CLP 5,000 CNY Classes: CNY 100 DKK Classes: DKK 50 EUR Classes: EUR 10 GBP Classes: GBP 10 HKD Classes: HKD 10 ILS Classes: ILS 30 JPY Classes: JPY 1,000 NZD Classes: NZD 10 SEK Classes: SEK 100 SGD Classes: SGD 20 ZAR Classes: ZAR 100 Thereafter, Shares will be issued at their Net Asset Value per Share, subject to the provision for Duties and Charges in respect of the issue of the Shares and rounding as provided for in the Articles on each Dealing Day. Application has been made for Shares in each of the Classes to be admitted to the Official List and to trading on the Main Securities Market of the Irish Stock Exchange and such Shares are expected to be admitted to listing on or about 5 August 2015. Fees and Expenses Category Initial Charge Management fee Shareholder Administration Fee Distribution Fee A 5.00% 1.30% 0.20% 0.00% B, C1, C2, E 0.00% 1.80% 0.20% 1.00% C 0.00% 0.85% 0.20% 1.00% D, I, I2, I3, I4 0.00% 0.65% 0.20% 0.00% I5 0.00% 0.65% 0.20% 0.00% 16
Category Initial Charge Management fee Shareholder Administration Fee Distribution Fee M 5.00% 1.30% 0.20% 0.80% P 5.00% 0.62% 0.20% 0.00% T 5.00% 1.80% 0.20% 0.00% U 3.00% 0.95% 0.20% 0.00% Z 0.00% 0.00% 0.20% 0.00% Distribution Policy Accumulating Classes, Distributing Classes and (Monthly) Distributing Classes are available in each currency in all Categories. 17