Neuberger Berman Mid Cap Intrinsic Value

Objective And Strategy

Objective
Growth of capital.

Strategy
A policy of investing at least 80% of its assets in equity securities of mid-capitalization companies (defined by reference to the Russell Midcap Value Index); the use of a bottom-up, fundamental research driven approach to identify stocks of companies trading below the portfolio manager's estimate of their intrinsic value; and the exploitation of perceived market inefficiencies among complex companies, cyclical companies and companies in a period of interrupted growth.

Principle Risks

* This portfolio invests (or may invest) in securities of companies with micro-, small-, or mid-capitalization. Any investment in micro-, small-, or mid-capitalization companies involves greater risk than that customarily associated with investments in larger, more established companies because of the greater business risks of smaller size, limited markets and financial resources, narrower product lines, and frequent lack of management depth. As such, micro- or small-cap companies may be more subject to erratic and abrupt market movements than securities of larger, more established companies.

* This portfolio can leverage or use leveraged instruments or derivatives. Portfolios that use leverage, that is, borrow money, are subject to the risk that the cost of borrowing money to leverage will exceed the returns for the securities purchased or that the securities purchased may actually go down in value. Thus the portfolio's net asset value can decrease more quickly than if the portfolio had not borrowed. Portfolios that use leveraged instruments or derivatives such as futures, options and swap agreements, may expose the portfolio to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The more a portfolio invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments.