1 Refinitiv, Neuberger Berman. Data as of February 5, 2024. Short-duration IG corporate bond index is the ICE BofA 1-3 Year U.S. Corporate Index. U.S. municipal bond index is the ICE BofA U.S. Municipal Securities Index. Tax equivalent yield is for an investor in the highest federal U.S. tax bracket. Current yield of the U.S. two-year Treasury is the coupon rate divided by the current bid price.
2 Neuberger Berman. This is for illustrative and discussion purposes only and does not constitute an offer or solicitation with respect to the purchase or sale of any security. Any investment decision with respect to an investment in a private fund should be made based on the information to be contained in the private placement memorandum and the limited partnership agreement of the applicable fund. Past performance is not indicative of future results. “Bonds” represent the Bloomberg U.S. Aggregate Index, ”Stocks” represent the S&P 500, “Private Equity” represents the Burgiss Private Capital index, “Hedge Funds” represent the HFRX Global Hedge Fund Index and “Commodities” represent the Bloomberg Commodity Index. This hypothetical portfolio is not a suggestion, projection or guarantee that the returns will be realized or achieved or that an investment strategy will be successful. Neuberger Berman’s ability to achieve the hypothetical portfolio returns is subject to a range of factors over which Neuberger Berman may have no or limited control. The hypothetical portfolio cannot account for the impact that economic, market, regulatory and other factors may have on the implementation of an actual investment program and the future returns of a strategy.
Index Definitions
The ICE BofA 1-3 Year Corporate Index measures the market capitalization-weighted performance of public debt of investment-grade corporate issuers, with maturities of between one and three years, issued and denominated in U.S. dollars.
The ICE BofA U.S. Municipal Securities Index tracks the performance of U.S. dollar-denominated investment grade tax exempt debt publicly issued by U.S. states and territories, and their political subdivisions, in the U.S. domestic market. Qualifying securities must have at least one year remaining term to final maturity, at least 18 months to final maturity at the time of issuance, a fixed coupon schedule and an investment grade rating (based on an average of Moody’s, S&P and Fitch).
The S&P 500 Index consists of 500 U.S. stocks chosen for market size, liquidity and industry group representation. It is a market value-weighted index (stock price times number of shares outstanding), with each stock’s weight in the Index proportionate to its market value.
The Bloomberg U.S. Intermediate Government Bond Index measures the fixed-rate government-related U.S. bond markets with a maturity greater than one year and less than 10 years.
The Bloomberg U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.
The Burgess Private Capital Indexes include 132 indexes which cover the spectrum of private capital asset classes including private equity and private capital, private debt and private real assets both globally and by region.
The HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies; including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage. The strategies are asset weighted based on the distribution of assets in the hedge fund industry. Hedge Fund Research, Inc. (HFR) utilizes a UCITSIII compliant methodology to construct the HFRX Hedge Fund Indices. The methodology is based on defined and predetermined rules and objective criteria to select and rebalance components to maximize representation of the Hedge Fund Universe. HFRX Indices utilize state-of-the-art quantitative techniques and analysis; multi-level screening, cluster analysis, Monte-Carlo simulations and optimization techniques ensure that each Index is a pure representation of its corresponding investment focus.
The Bloomberg Commodity Index is composed of commodities traded on U.S. exchanges, with the exception of aluminum, nickel and zinc, which trade on the London Metal Exchange (LME). The index is calculated on a total return basis and reflects the return on fully collateralized position in the underlying commodity futures.
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Statements contained herein are based on current expectations, estimates, projections, opinions and/or beliefs of NBIA. This presentation contains “forward-looking” or statements which often can be identified by the use of forward-looking terminology such as “may,” “will,” “seek,” “should,”
“expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” “target,” “plan” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Such information may include, among other things, projections, forecasts or estimates of cash flows, yields or return,
scenario analyses and proposed or expected portfolio composition. Such forward-looking information is based upon certain assumptions about future events or conditions and is intended only to illustrate hypothetical results under those assumptions (not all of which are specified herein). Such
statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Such statements are necessarily speculative in nature, as they are based on certain assumptions. It can be expected that some or all of the assumptions underlying
such statements will not reflect actual conditions. Accordingly, there can be no assurance that any estimated projections, forecast or estimates will be realized or that the forward-looking statements will materialize. Due to various risks and uncertainties, including those set forth herein, actual events
or results or the actual performance of any security referenced herein may differ materially from those reflected or contemplated in such forward-looking statements.
Investing entails risks, including possible loss of principal. Investments in hedge funds and private equity are speculative and involve a higher degree of risk than more traditional investments. Investments in hedge funds and private equity are intended for sophisticated investors only. Indexes are unmanaged and are not available for direct investment. Past performance is no guarantee of future results.
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