Neuberger Berman Introduces Absolute Return Multi-Manager Fund

Neuberger Berman Group LLC, one of the world’s leading employee-owned money managers, announced today the launch of Neuberger Berman Absolute Return Multi-Manager Fund (tickers: NABAX, NABCX, and NABIX) (the “Fund”). The Fund seeks capital appreciation with an emphasis on absolute returns by allocating its assets to multiple hedge fund advisers that employ distinct alternative investment strategies. The Fund is the first such fund from an asset manager with the size and operational infrastructure of Neuberger Berman.

The Fund is managed by members of the Neuberger Berman Fund of Hedge Funds (FoHF) team and is the first time this team’s expertise is offered in a mutual fund. Unlike traditional hedge funds, the Fund provides daily liquidity, lower investment minimums ($1,000 for Class A and C shares), will deliver 1099s to shareholders, offers full transparency of portfolio holdings and does not have a performance based management fee. Additionally, the Fund employs the risk management and monitoring, mix of managers and strategies, and operational due diligence previously available only to institutional and high-net-worth investors through traditional hedge funds. The Fund combines an experienced Hedge Fund of Funds team with a firm that has been providing mutual fund solutions for over 60 years.

The Fund is managed by a seasoned team with a 10-year track record of serving the needs of institutional and high net worth investors. The team includes Eric Weinstein, chief investment officer and managing director; Jeff Majit, managing director; Fred Ingham, managing director; David Kupperman, Ph.D., managing director; and Ian Haas, senior vice president.

David Kupperman said, “We are strong believers that alternative mutual fund solutions—‘liquid alternatives’—are applicable to investors who have historically not been able to access hedge fund strategies as well as institutions that seek liquid and cost-effective solutions. We see a future where defined contribution plans embrace alternative investments in providing 401(k) plan participants a full investment solution.”

The Fund’s sub-advisers are: The Boston Company for long/short and mid-cap equities; Cramer Rosenthal McGlynn for global long/short equities; GAMCO Asset Management for merger arbitrage; Levin Capital Strategies for event driven investments; Sound Point Capital for distressed and event driven credit; Turner Investments for long/short healthcare equity; and Visium Asset Management for event driven investments. The Fund has also hired MacKay Shields as a sub-adviser for long/short credit arbitrage and intends to begin allocating assets to this manager when the Fund has approximately $125 million in assets. The Fund expects to add additional highly skilled hedge fund managers in the future.

“We are very excited to launch a fund that will offer the liquidity and accessibility of a mutual fund and the underlying investments of hedge fund strategies, all with the goal of providing attractive returns for investors,” said Eric Weinstein, chief investment officer and managing director of NB Alternative Investment Management LLC. “The fund is a well-constructed portfolio of high quality managers. We believe alternative investments can play an important role alongside long-only equities and fixed income and we are delighted to offer these strategies in a mutual fund structure.”

The Neuberger Berman FoHF team that advises the Neuberger Berman Absolute Return Multi-Manager Fund currently provides discretionary and advisory services for institutional and hedge fund client’s assets in excess of $3B.

About Neuberger Berman

Neuberger Berman is a private, independent, employee-controlled investment manager. It partners with institutions, advisors and individuals throughout the world to customize solutions that address their needs for income, growth and capital preservation. With more than 1,700 professionals focused exclusively on asset management, it offers an investment culture of independent thinking. Founded in 1939, the company provides solutions across equities, fixed income, hedge funds and private equity, and had $199 billion in assets under management as of March 31, 2012. For more information, please visit our website at www.nb.com.

An investor should consider the Fund’s investment objective, risks and fees and expenses carefully before investing. This and other important information can be found in the Fund’s prospectus and/or summary prospectus, which you can obtain by calling 877.628.2583. Please read the prospectus and/or summary prospectus, carefully before making an investment.

The Fund’s performance will largely depend on the success of Neuberger Berman’s methodology in allocating the Fund’s assets to subadvisers, and its selection and oversight of the subadvisers. The subadvisers’ investment styles may not always be complementary, which could adversely affect the performance of the Fund. Some subadvisers have little experience managing registered investment companies which, unlike the hedge funds these managers have been managing, are subject to daily inflows and outflows of investor cash and are subject to certain legal and tax-related restrictions on their investments and operations.

The Fund’s returns may deviate from overall market returns to a greater degree than other mutual funds that do not employ an absolute return focus. Thus, the Fund might not benefit as much as funds following other strategies during periods of strong market performance. Also, the employment of hedging strategies, if any, in an attempt to mitigate risk may cause the Fund’s returns to be lower than if hedging had not been employed.

Event-Driven Strategies that invest in companies in anticipation of an event carries the risk that the event may not happen or may take considerable time to unfold, it may happen in modified or conditional form, or the market may react differently than expected to the event, in which case the Fund may experience losses. Additionally, event-driven strategies may fail if adequate information about the event is not obtained or such information is not properly analyzed. The actions of other market participants may also disrupt the events on which event driven strategies depend. Arbitrage Strategies involve the risk that underlying relationships between securities in which investment positions are taken may change in an adverse manner or in a manner not anticipated, in which case the Fund may realize losses. The Fund’s use of event-driven and arbitrage strategies will cause it to invest in actual or anticipated special situations – i.e., acquisitions, spin-offs, reorganizations and liquidations, tender offers and bankruptcies. These transactions may not be completed as anticipated or may take an excessive amount of time to be completed. They may also be completed on different terms than the subadviser anticipates, resulting in a loss to the Fund. Some special situations are sufficiently uncertain that the Fund may lose its entire investment in the situation.

Stock markets are volatile and may decline significantly in response to adverse issuer, political, regulatory, market or economic developments. To the extent that the fund sells stocks before they reach their market peak, it may miss out on opportunities for higher performance. Small- and mid-capitalization stocks trade less frequently and in lower volume than larger company stocks and thus may be more volatile and more vulnerable to financial and other risks.

Investing in foreign securities may involve greater risks than investing in securities of U.S. issuers, such as currency fluctuations, potential social, political or economic instability, restrictions on foreign investors, less stringent regulation and less market liquidity. Securities issued in emerging market countries may be more volatile and less liquid than securities issued in foreign countries with more developed economies or markets as such governments may be less stable and more likely to impose capital controls as well as impose additional taxes and liquidity restrictions. Exchange rate exposure and currency fluctuations could erase or augment investment results. Funds may hedge currency risks when available though the hedging instruments may not always perform as expected. Derivatives contracts on non-U.S. currencies are subject to exchange rate movements. The risks involved in seeking capital appreciation from investments primarily in companies based outside the United States are set forth in the prospectus. Shares in a fund may fluctuate based on interest rates, market condition, credit quality and other factors. In a rising interest rate environment, the value of a fund’s fixed income investments is likely to fall. Derivatives may involve risks different from, or greater than, those associated with more traditional investments.

Investments in the over-the-counter (“OTC”) market introduces counterparty risk due to the possibility that the dealer providing the derivative may fail to timely satisfy its obligations. Investments in the futures markets also introduce the risk that its futures commission merchant (“FCM”) may default on its obligations including the FCM’s obligation to return margin posted in connection with a fund’s futures contracts. Short sales, selling a security a fund does not own in anticipation that the security’s price will decline, theoretically presents unlimited risk on an individual stock basis, since a fund may be required to buy the security sold short at a time when the security has appreciated in value. Leverage may amplify changes in a fund’s net asset value. ETFs are subject to tracking error and may be unable to sell poorly performing stocks that are included in their index. ETFs may trade in the secondary market at prices below the value of their underlying portfolios and may not be liquid. The use of options involves investment strategies and risks different from those associated with ordinary securities transactions. A “covered call” involves selling a call option while simultaneously holding an equivalent position in the underlying security. A put option involves buying the right to sell a security at a specific price within a given time period.

The “Neuberger Berman” name and logo are registered service marks of Neuberger Berman Group LLC. “Neuberger Berman Management LLC” and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.

© 2012 Neuberger Berman Management LLC, distributor. Member FINRA. All rights reserved.