Neuberger Berman Real Estate Fund
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Manager Commentary | November 2020
Neuberger Berman Real Estate Fund
TICKER: Institutional Class: NBRIX, Class A: NREAX, Class C: NRECX, Class R6: NRREX, Class R3: NRERX, Trust Class: NBRFX
PORTFOLIO MANAGERS: Steve Shigekawa and Brian Jones, CFA
Performance Highlights
The Neuberger Berman Real Estate Fund generated a positive absolute return in November, but underperformed its
benchmark, the FTSE Nareit All Equity REITs Index.1
Market Context Conversely, an underweight to the Industrial sector was the only
The Real Estate Investment Trust (REIT) market performed well, meaningful contributor to performance.
but underperformed the overall stock market for the month.
The FTSE Nareit All Equity REIT Index returned 9.22% in In terms of stock selection, holdings in the Office, Apartment
November, while the S&P 500 Index rose 10.95%. and Diversified sectors were the largest contributors to
performance. In contrast, holdings in the Health Care and
Lodging/Resorts sectors were the only meaningful detractors
Portfolio Positioning
from returns.
During November, the Fund underperformed the benchmark.
Sector allocation detracted from relative results, whereas stock
selection contributed to performance.
Looking at sector allocation, underweights to Lodging/Resorts
and Office were the largest detractors from performance. The
portfolio’s small cash position was also a headwind for returns.
SECTOR OVERWEIGHTS
We believe demand should remain strong through the COVID-19 crisis as work from home (WFH) and e-learning requirements drive
Data Centers growing data storage needs, mobile and IT applications, as well as increased enterprise cloud adoption. Shelter from home mandates
have highlighted the need for a robust national technology infrastructure. Our current largest position is Equinix (EQIX).
We believe demand should remain strong through the COVID-19 crisis, as work from home and e-learning requirements drive growing
data storage needs, mobile and IT applications, as well as increased enterprise cloud adoption. Shelter at home mandates have
Infrastructure highlighted the need for a robust national technology infrastructure. Longer term, we believe the tower industry has the potential to
continue to benefit from increased mobile data usage and carrier network upgrades. We expect increased U.S. wireless carrier capital
expenditure for new spectrum deployments and new technology (5G). Our current largest position is American Tower (AMT).
We have an overweight position in the Manufactured Homes (MH) sector. We believe stable demand in the age-restricted segment
Manufactured Homes and limited new supply should lead to consistent cash flow growth. We own both MH companies, Equity Lifestyle Properties (ELS)
and Sun Communities (SUI).
The retail environment is changing rapidly due to the growth of Amazon and as e-commerce continues to take market share from
physical retail locations. The COVID-19 crisis closed the majority of regional malls during the March-May timeframe, but news that
multiple COVID-19 vaccines will be available in 2021 has improved the outlook for physical retail shopping locations Given that
Regional Malls regional malls have delivered the worst returns among all REIT sectors thus far in 2020 there is the potential for the sector to recover
if the outlook for ending the COVID-19 pandemic improves. Most malls are now open throughout the U.S. and we will monitor
retailer sales trends and retailer bankruptcies as we consider an appropriate exposure to the mall sector. We have an overweight
exposure to the largest, best capitalized mall REIT. Our only position is A-mall REIT Simon Property Group (SPG).
1
FTSE Nareit All Equity REITs Index: A capitalization-weighted index based upon the last closing price of the month for all tax-qualified REITs listed on the
NYSE, AMEX and NASDAQ. Only common shares issued by the REIT are included in the index.REAL ESTATE FUND NOVEMBER 2020 2
We believe self storage fundamentals benefited from the resumption of rent increases for existing tenant, increasing new tenant
rates, and favorable move in/out trends. COVID-19 led to increased tenant length of stay and increased housing activity has also
been a modest positive for storage demand. We continue to believe REIT owned storage portfolios have the potential to produce
Self Storage
better earnings trends than most REIT sectors given their scale, sophisticated revenue management systems and geographically
diverse portfolios. Our current largest position in the sector is Public Storage (PSA), which has the best balance sheet in the sector
and is trading at a discounted valuation relative to its closest self storage REIT peers.
Single family homes (SFH) companies acquire, renovate and then rent homes. While the current COVID-19 crisis and expected higher
unemployment may pressure near-term cashflow growth, lower turnover and the pandemic triggered preference for suburban single-
Single Family Homes family housing highlights the sector’s defensive attributes. Rent collection remains near pre-pandemic levels, likely benefiting from
work from home mandates and the support of government payments. We own both SFR companies, American Homes 4 Rent (AMH)
and Invitation Homes (INVH).
COVID-19 initially slowed single family home construction due to non-essential construction bans in many localities. More recently,
single family home sales and construction trends have accelerated and there is the potential for demand to improve if consumer
Timber preferences shift to a desire for more living space. We believe the long-term positive fundamentals for timberlands and lumber remain
in place and we maintain a modest overweight position. Our current largest position is Weyerhaeuser Co. (WY). The recent spike in
lumber prices will lead to significant cash flow for WY.
SECTOR UNDERWEIGHTS
The current COVID-19 crisis and higher unemployment continues to pressure near-term cashflow growth, especially in densely
populated New York City and San Francisco. However, rent collection remains above 95%, likely benefiting from work from home
Apartments
mandates. Potential new rounds of fiscal stimulus should help alleviate further cashflows decline. Our current largest position is
Equity Residential (EQR).
Our only position is Brookfield Asset Management (BAM), a global asset manager with over $500 billion in assets under management.
Diversified The company owns, manages, and operates assets with a focus on property, infrastructure, and renewable power. We believe the
company should benefit from demand for alternative investments, including real estate, by institutional investors around the world.
Free standing REITs have historically been viewed as a defensive property type given its well diversified tenant base and long lease
term. The COVID-19 crisis has presented unique challenges for tenants in the sector. Many tenants, including restaurants, fitness
clubs and movie theaters, are experiencing meaningful challenges to their business model due to social distancing mandates. The
Free Standing closure of these businesses will likely result in a period of rent deferrals and likely some lost rent and tenant bankruptcies. However,
news that multiple COVID-19 vaccines will be available in 2021 has improved the outlook for many tenants of the free standing
REITs. The strong balance sheets of most free standing REITs should help sustain the REITs until the vaccines are widely available.
Our current largest position is National Retail Properties (NNN).
Health Care REITs have historically been viewed as a defensive property type that performs well during periods of economic
uncertainty. However, the COVID-19 crisis has presented a number of unique challenges to tenants in the sector that has resulted in
a more disruptive near-term impact. Senior housing and skilled nursing facilities have proven to be vulnerable to COVID-19 given the
Health Care older and often frail populations these facilities serve. Facility level quarantines and higher expenses to keep residents and staff safe
pressured cash flows within these two sub-sectors. However, given the strong demographic trends (aging baby boomers) within the
health care REIT sector, this area may be poised to recover once a vaccine is widely available. We maintain an underweight exposure
to Health Care. Our current largest position is Welltower (WELL).
Industrial Warehouses Strong growth in e-commerce and omni-channel retailer strategies continue to drive greater demand for distribution warehouse
space. The impact of consumers increasing their reliance on e-commerce could be a long-term positive. We have recently increased
our weighting to the sector, but remain at a modest underweight due to elevated valuation levels relative to other REIT sectors. Our
current largest position in the sector is Prologis (PLD).
Lodging/Resorts Lodging REITs have reopened most of their hotels. However, limited travel and bans on large gatherings continue to severely limit
hotel occupancy levels. In anticipation of post-COVID recovery, we have initiated a position in Host Hotels & Resorts.
Office While companies have begun a phased reopening of their offices, it is unclear when workforces will be completely back in their
offices. In anticipation of a post-COVID recovery, we have added to our weighting in office, but remain modestly underweight.
Surprisingly efficient work-from-home protocols could mean less office demand longer term. Our current largest position is in blue-
chip office landlord, Boston Properties.
Shopping Centers Most shopping center tenants have reopened following COVID-19 closures and we will monitor retailer sales trends and retailer
bankruptcies as we consider an appropriate exposure to the shopping center sector. We believe the open-air setup of most shoppingREAL ESTATE FUND NOVEMBER 2020 3
centers and a tenant base focused on providing essential goods and services positions the shopping center sector to experience
limited disruption throughout the COVID-19 crisis. We recently increased our exposure to the sector, but are still modestly
underweight. Our current largest position is Kimco Centers (KIM).
Specialty We are not currently invested in the Specialty sector.
Outlook
The results of a contentious U.S. election are now largely known in what we believe are the highest quality companies, trading at
and should likely ease market uncertainty. We also expect a sizable discounts, in anticipation of an end to the pandemic and
fourth round of fiscal stimulus, with perhaps only the size in fuller recovery next year. These companies are generally well
question depending on which party has control of the U.S. prepared to navigate uncertainty, while also looking for
Senate. Like the earlier rounds of stimulus, we expect the opportunities to make acquisitions of distressed assets. Also,
market to react favorably over the short term. Low interest rates these challenged sectors could benefit from the necessary
should also help stabilize the market and support a market consolidation of weaker companies with outsized general and
recovery. Longer term, policy details relating to deficit spending, administrative expenses. The most distressed companies in these
tax policy, healthcare, and global trade could weigh on market sectors will likely warrant highly dilutive recapitalizations,
sentiment. leaving us more cautious on these names.
The COVID-19 pandemic and the lasting effects of a U.S. and • While we are harvesting some of the attractive performance
global recession remain the primary risks to the market. Recent within sectors that have performed well through the pandemic,
positive news from pharmaceutical companies related to those sectors with secular demand trends (technology
COVID-19 vaccines, in our view, marked a major turning point infrastructure, housing) and historically defensive sectors, such
in the fight against the global pandemic and sparked a strong as self storage, still warrant exposure in the portfolio. We
market rally. Additionally, reports of emergency use believe advancements in technology, such as 5G cellular and
authorization for vaccines and antibody treatments of cloud computing, may lead to significant investments in
diagnosed COVID-19 patients likely added to market optimism. network and IT infrastructure. We believe data centers and
Although it will take time for these measures to be broadly infrastructure REITs are best positioned to benefit from these
accepted, distributed, and administered across the population, secular tailwinds. We also favor the residential sectors due to
we believe increased visibility to a post-COVID-19 environment attractive demographic/demand trends. Our view is that the
may lead to a sustainable market recovery. Recent sharp millennial generation beginning to form families, combined with
increases in the number of infections across the U.S. remind us the COVID-driven preference for more personal space and social
that elevated uncertainty and market volatility could persist. We distancing, should benefit the single-family rental sector.
understand that this process may take many months, possibly
into late 2021. In the meantime, measures including additional • Given discounted valuations, we have increased our exposure
monetary and fiscal stimulus should help buoy the economy to retail, but remain modestly underweight. The ongoing
until potential self-sustaining economic growth opportunities recession could accelerate retailer bankruptcies and store
return. closures in an already challenging leasing environment. The
growth of Amazon and e-commerce has accelerated due to the
Our current outlook for the REIT market is: pandemic and continues to alter retail supply chains.
• The COVID-19 pandemic has changed normal routines and
disrupted communities and businesses. We have begun shifting • We continue to focus on select companies with visible
the portfolio to a less defensive, more opportunistic stance, but earnings growth opportunities and strong balance sheets that
are mindful that a full recovery likely remains many months we believe can better withstand increased market volatility.
away. Over the coming weeks and months, we may move to a
more aggressive position depending on the course of the recent
COVID-19 infection wave, progress on deployment of
therapeutics and vaccines, clarity on President-elect Biden’s
policy platform, and continued monetary stimulus. Overall, we
are positioned more neutral across sectors in anticipation of a
potential market recovery.
• While we remain cautious on the fundamental outlook for
challenged sectors, like regional malls, lodging, and office, we
are looking for opportunities to make incremental investmentsREAL ESTATE FUND NOVEMBER 2020 4
NEUBERGER BERMAN REAL ESTATE FUND RETURNS (%)
(ANNUALIZED AS OF 09/30/20)
November 3rd Quarter YTD Since
2020 2020 2020 1 Year 3 Year 5 Year 10 Year Inception
At NAV
Institutional Class 7.41 1.42 -3.38 -7.45 6.52 7.97 9.07 10.47
Class A 7.36 1.25 -3.69 -7.78 6.13 7.57 8.68 10.22
Class C 7.34 1.11 -4.31 -8.46 5.36 6.77 7.87 9.76
Class R6 7.41 1.37 -3.24 -7.36 6.61 8.05 9.09 10.45
Class R3 7.45 1.25 -3.84 -7.99 5.87 7.31 8.40 10.06
Trust Class 7.41 1.29 -3.55 -7.68 6.32 7.75 8.86 10.32
With Sales Charge
Class A 1.17 -4.60 -9.23 -13.09 4.06 6.31 8.04 9.87
Class C 6.34 0.11 -5.26 -9.34 5.36 6.77 7.87 9.76
FTSE Nareit All Equity REITs Index 9.22 1.19 -7.39 -12.15 3.54 6.61 9.20 9.14
Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an
investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Results are shown
on a “total return” basis and include reinvestment of all dividends and capital gains distributions. Current Performance may be higher or
lower than the performance given. For current performance data, including current to the most recent month end, please visit
www.nb.com/performance.
The inception date of the Neuberger Berman Real Estate Fund Institutional Class, Trust Class, and Class R6 are 6/4/08, 5/1/02 and 3/15/13 respectively. The
inception date of Class A, Class C and Class R3 is 6/21/10. Performance prior to those inception dates is that of the Trust Class, which has lower expenses and
typically higher returns than all other share classes. Average Annual Total Returns with sales charge reflect deduction of current maximum initial sales charge of
5.75% for Class A shares and applicable contingent deferred sales charges (“CDSC”) for Class C shares. The maximum CDSC for Class C shares is 1%, which is
reduced to 0% after 1 year.
For Class A, Class C, Institutional Class, Class R3, and Class R6, total (net)
EXPENSE RATIOS (%) expense represents, and for Trust Class gross expense represents, the total
Total (net) annual operating expenses that shareholders pay (after the effect of fee
Gross Expense Expense waivers and/or expense reimbursement). The Fund’s investment manager has
Class A 1.43 1.22 contractually undertaken to waive and/or reimburse certain fees and expenses
of the Fund so that the total annual operating expenses are capped (excluding
Class C 2.19 1.97
interest, taxes, brokerage commissions, acquired fund fees and expenses,
Institutional Class 1.06 0.86 dividend and interest expenses relating to short sales, and extraordinary
Trust Class 1.43 N/A expenses, if any; consequently, total (net) expenses may exceed the
Class R3 1.69 1.47 contractual cap) through 8/31/23 for Class A at 1.21%, Class C at 1.96%,
Class R3 at 1.46%, Class R6 at 0.75% Institutional Class at 0.85% and Trust
Class R6 0.96 0.76
Class at 1.50% (each as a % of average net assets). Absent such
arrangements, which cannot be changed without Board approval, the returns
may have been lower. Information as of the most recent prospectuses dated
12/13/19, as amended and supplemented.REAL ESTATE FUND NOVEMBER 2020 5 An investor should consider the Fund’s investment objectives, risks and fees and expenses carefully before investing. This and other important information can be found in the Fund’s prospectus or summary prospectus, which you can obtain by calling 877.628.2583. Please read the prospectus or summary prospectus carefully before making an investment. Past performance is not indicative of future results. This material is not intended to address every situation, nor is it intended as a substitute for the legal, tax, accounting or financial counsel of your professional advisors with respect to your individual circumstances. This material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied on as such. Opinions expressed are as of the date herein and are subject to change without notice. This material is not intended to be a formal research report and should not be construed as an offer to sell or the solicitation of an offer to buy any security. 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. Accordingly, “retail” retirement investors are not the intended recipient of this material as they 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. Holding and sectors are as of the date indicated and are subject to change without notice. Credit risk is the risk that issuers, guarantors, or insurers may fail, or become less able, to pay interest and/or principal when due. Changes in the actual or perceived creditworthiness of an issuer, or a downgrade or default affecting any of the Fund’s securities could affect the Fund’s performance. Generally, the longer the maturity and the lower the credit quality of a security, the more sensitive it is to credit risk. There is no guarantee that the companies in which the Fund invests will declare dividends in the future or that dividends, if declared, will remain at current levels or increase over time. Securities that pay dividends may be sensitive to changes in interest rates, and as interest rates rise or fall, the prices of such securities may fall. The Fund may engage in active and frequent trading and may have a high portfolio turnover rate, which may increase the Fund’s transaction costs, may adversely affect the Fund’s performance and may generate a greater amount of capital gain distributions to shareholders than if the Fund had a low portfolio turnover rate. In general, the value of investments with interest rate risk, such as debt securities, will move in the direction opposite to movements in interest rates. If interest rates rise, the value of such securities may decline. Typically, the longer the maturity or duration of a debt security, the greater the effect a change in interest rates could have on the security’s price. Thus, the sensitivity of the Fund’s debt securities to interest rate risk will increase with any increase in the duration of those securities. An individual security may be more volatile, and may perform differently, than the market as a whole. Lower-rated debt securities (commonly known as “junk bonds”) and unrated debt securities determined to be of comparable quality involve greater risks than investment grade debt securities. Such securities may fluctuate more widely in price and yield and may fall in price during times when the economy is weak or is expected to become weak. The creditworthiness of issuers of these securities may be more complex to analyze than that of issuers of investment grade debt securities, and the overreliance on credit ratings may present additional risks. To the extent the Fund invests in securities of small-, mid-, or large-cap companies, it takes on the associated risks. At times, any one of these market capitalizations may be out of favor with investors. Markets may be volatile and values of individual securities and other investments, including those of a particular type, may decline significantly in response to adverse issuer, political, regulatory, market, economic or other developments that may cause broad changes in market value, public perceptions concerning these developments, and adverse investor sentiment or publicity. Geopolitical and other risks, including environmental and public health risks may add to instability in world economies and markets generally. Changes in value may be temporary or may last for extended periods. If the Fund sells a portfolio position before it reaches its market peak, it may miss out on opportunities for better performance. The Fund is classified as non-diversified. As such, the percentage of the Fund’s assets invested in any single issuer or a few issuers is not limited as much as it is for a Fund classified as diversified. Investing a higher percentage of its assets in any one or a few issuers could increase the Fund’s risk of loss and its share price volatility, because the value of its shares would be more susceptible to adverse events affecting those issuers.
REAL ESTATE FUND NOVEMBER 2020 6 Preferred securities, which are a form of hybrid security (i.e., a security with both debt and equity characteristics), may pay fixed or adjustable rates of return. Preferred securities are subject to issuer-specific and market risks applicable generally to equity securities, however, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred securities are generally payable at the discretion of the issuer’s board of directors and after the company makes required payments to holders of its bonds and other debt securities. For this reason, the value of preferred securities will usually react more strongly than bonds and other debt securities to actual or perceived changes in the company’s financial condition or prospects. Preferred securities may be less liquid than common stocks. Some countries, including the U.S., are adopting more protectionist trade policies and moving away from the tighter financial industry regulations that followed the 2008 financial crisis. The U.S. is also said to be considering significant new investments in infrastructure and national defense which, coupled with lower federal tax rates, could lead to sharply increased government borrowing and higher interest rates. The exact shape of these policies is still being worked out through the political process, but the equity and debt markets may react strongly to expectations, which could increase volatility, especially if the market’s expectations for changes in government policies are not borne out. Higher interest rates may further strengthen the already strong U.S. dollar, which may also harm U.S. companies that rely significantly on exports. Certain illnesses spread rapidly and have the potential to significantly and adversely affect the global economy. Outbreaks such as the severe acute respiratory syndrome, avian influenza, H1N1/09, and, most recently, a novel coronavirus, COVID-19, or other similarly infectious diseases may have material adverse impacts on a Fund. Epidemics and/or pandemics, such as the coronavirus, have and may further result in, among other things, closing borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this virus, and other epidemics and/or pandemics that may arise in the future, has negatively affected and may continue to affect the economies of many nations, individual companies and the global securities and commodities markets, including liquidity, in ways that cannot necessarily be foreseen at the present time. The impact of infectious diseases in developing or emerging market countries may be greater due to less established health care systems. Health crises caused by the recent coronavirus outbreak may exacerbate other preexisting political, social and economic risks in certain countries. The impact of the outbreak may be short term or may last for an extended period of time. The Fund may experience periods of heavy redemptions that could cause the Fund to sell assets at inopportune times or at a loss or depressed value. Redemption risk is greater to the extent that one or more investors or intermediaries control a large percentage of investments in the Fund. REITs and Other Real Estate Companies Risk. REIT and other real estate company securities are subject to risks similar to those of direct investments in real estate and the real estate industry in general, including, among other risks: general and local economic conditions; changes in interest rates; declines in property values; defaults by mortgagors or other borrowers and tenants; increases in property taxes and other operating expenses; overbuilding in their sector of the real estate market; fluctuations in rental income; lack of availability of mortgage funds or financing; extended vacancies of properties, especially during economic downturns; changes in tax and regulatory requirements; losses due to environmental liabilities; or casualty or condemnation losses. REITs also are dependent upon the skills of their managers and are subject to heavy cash flow dependency or self-liquidation. Regardless of where a REIT is organized or traded, its performance may be affected significantly by events in the region where its properties are located. Domestic REITs could be adversely affected by failure to qualify for tax-free “pass- through” of distributed net investment income and net realized gains under the Internal Revenue Code of 1986, as amended, (“Code”) or to maintain their exemption from registration under the Investment Company Act of 1940, as amended. Effective for taxable years beginning after December 31, 2017 and before January 1, 2026, the Code generally allows individuals and certain other non-corporate entities a deduction for 20% of qualified REIT dividends. Recently issued proposed regulations (which have immediate effect) include a provision for a regulated investment company to pass the character of its qualified REIT dividends through to its shareholders. The value of REIT common shares may decline when interest rates rise. REIT and other real estate company securities tend to be small- to mid-cap securities and are subject to the risks of investing in small- to mid-cap securities. Although the Fund will not invest in real estate directly, because it concentrates its assets in the real estate industry your investment in the Fund will be closely linked to the performance of the real estate markets and the value of the Fund’s shares may change at different rates compared to the value of shares of a fund with investments in a mix of different sectors or industries. The Fund may at times emphasize particular sub-sectors of the real estate business — for example, apartments, regional malls, offices, infrastructure, industrial, and health care. As such, the Fund’s performance would be especially sensitive to developments that significantly affect those businesses. Individual sectors may be more volatile, and may perform differently, than the broader market. The industries that constitute a sector or sub-sector may all react in the same way to economic, political or regulatory events. Risk of Increase in Expenses. A decline in the Fund’s average net assets during the current fiscal year due to market volatility or other factors could cause the Fund’s expenses for the current fiscal year to be higher than the expense information presented. The Fund and its service providers, and your ability to transact with the Fund, may be negatively impacted due to operational matters arising from, among other problems, human errors, systems and technology disruptions or failures, or cybersecurity incidents. Most issuers in which the Fund invests are heavily dependent on computers for data storage and operations, and require ready access to the internet to conduct their business. Thus, cybersecurity incidents could also affect issuers of securities in which the Fund invests, leading to significant loss of value.
REAL ESTATE FUND NOVEMBER 2020 7 Risk is an essential part of investing. No risk management program can eliminate the Fund’s exposure to adverse events; at best, it may only reduce the possibility that the Fund will be affected by such events, and especially those risks that are not intrinsic to the Fund’s investment program. The Fund could experience losses if judgments about risk prove to be incorrect. The Fund may not be able to sell an investment at the price at which the Fund has valued the investment. Such differences could be significant, particularly for illiquid securities and securities that trade in relatively thin markets and/or markets that experience extreme volatility. If market or other conditions make it difficult to value some investments, SEC rules and applicable accounting protocols may require the Fund to value these investments using more subjective methods, known as fair value methodologies. Global health pandemics (i.e., COVID-19) have negatively affected and are expected to continue to affect the economies of many nations, individual companies and global markets, including liquidity and increased market volatility, in ways that cannot be known with certainty at the present time. This may have both anticipated and unanticipated material adverse impacts on a Fund. The FTSE Nareit All Equity REITs Index is a free float-adjusted market capitalization-weighted index that tracks the performance of all equity real estate investment trusts (REITs) that are listed on the New York Stock Exchange, the NYSE Arca or the NASDAQ National Market List. Equity REITs include all tax-qualified REITs with more than 50 percent of total assets in qualifying real estate assets other than mortgages secured by real property. Please note that the index does not take into account any fees and expenses of investing in the individual securities that it tracks, and that individuals cannot invest directly in any index. Data about the performance of this index are prepared or obtained by the Manager and include reinvestment of all dividends and capital gain distributions. The Fund may invest in many securities not included in the above-described index. Performance quoted represents past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. As of 11/30/20, the weightings of the top ten holdings indicated as a percentage of Fund assets were: American Tower Corp., 8.9%; Crown Castle International Corp., 7.5%; Equinix, Inc., 6.3%; Prologis, Inc., 6.2%; Public Storage 4.4%; SBA Communications Corp., 3.7%; Equity Residential 3.7%; Digital Realty Trust, Inc. 3.6%; Welltower, Inc. 3.5%; Essex Property Trust, Inc. 3.3%. The “Neuberger Berman” name and logo and “Neuberger Berman Investment Advisers LLC” name are registered service marks of Neuberger Berman Group LLC. The individual fund names in this piece are either service marks or registered service marks of Neuberger Berman Investment Advisers LLC, an affiliate of Neuberger Berman BD LLC, distributor, member FINRA. 563426 © 2020 Neuberger Berman BD LLC. All rights reserved.
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