Neuberger Berman Strategic Income Fund Surpasses $1 Billion In Assets

NEW YORK, Oct. 23, 2012 /PRNewswire/ -- Neuberger Berman Group LLC, one of the world's leading employee-controlled money managers, said its Neuberger Berman Strategic Income Fund (tickers: NSTAX, NSTCX, NSTLX), recently exceeded $1 billion in assets having more than doubled in size in just over a year.

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Neuberger Berman Strategic Income Fund's Institutional Class is the only one in the multisector bond category to generate top-decile rolling five-year returns over 49 consecutive months through September 2012, according to fund tracker Morningstar Inc. and was the only fund in its category to deliver a positive return in 2008, according to Morningstar.

Based on its performance (which is ahead of its benchmark and its category for the one-, three-, and five-year periods), the Institutional Class of the Fund is ranked by Morningstar in the 5^th percentile for the five-year period through September 30, 2012 out of 165 funds in the multisector bond category. Morningstar also ranks the Institutional Class in the 38^th percentile for the one-year period among 272 funds; and in the 40^th percentile over three years among 203 funds. Shares of the Fund's Class A, which launched in December 2007, are ranked in the 46^th and 50^th percentiles by Morningstar over one and three years respectively through September 30, 2012.  (For additional ranking information for all share classes, please visit https://www.nb.com/MutualFundPerformance.aspx).

The Fund is managed by Chicago-based portfolio managers and managing directors Brad Tank, Andrew Johnson, Thanos Bardas, and David Brown. Mr. Tank also serves as Neuberger Berman's chief investment officer for fixed income, while Mr. Johnson is head of investment grade fixed income. Messrs. Tank, Johnson, Bardas, and Brown also serve as managers of separate accounts for institutional clients. In total, Neuberger Berman managed approximately $94 billion in fixed income assets for institutional and individual investors, as of September 30, 2012.

Neuberger Berman Strategic Income portfolio managers consider investments across the entire fixed income spectrum and make shifts in the Fund's risk profile to take advantage of various market conditions.

"In this long-term low-interest-rate environment, bond managers have to be creative and flexible in how we manage our portfolios to achieve yield and manage risk," said Mr. Tank. "The Strategic Income Fund has done that successfully and we're proud of the traction it has achieved in the marketplace."

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 $202 billion in assets under management as of September 30, 2012. For more information, please visit our website at www.nb.com.

An investor should consider Neuberger Berman Strategic Income 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, which can be obtained by calling 877.628.2583. Please read it carefully before making an investment. The prospectus contains a more complete discussion of the risk of investing in the Fund.

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. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month-end, please visit www.nb.com/performance. Average Annual Total Returns with sales charge reflect deduction of current maximum initial sales charge of 4.25% 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.

^ The inception dates for the Strategic Income Fund Institutional Class and Trust Class are 7/11/03 and 4/2/07, respectively. The inception date for the Class A and Class C shares is

12/20/07. The date used to calculate benchmark performance is of the Institutional Class.

The minimum initial investment for the Institutional Class is $1 million.

(1) Total return includes reinvestment of dividends and capital gain distributions. Performance prior to 4/2/07 is of the Institutional Class. The inception date of the Institutional Class is July 11, 2003, and the Trust Class is April 2, 2007. Because the Fund had a different goal and strategy, which included managing assets by an asset allocation committee, prior to February 28, 2008, its performance during that time might have been different if current policies had been in effect. Past performance is no guarantee of future results.

(2) Barclays U.S. Aggregate 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. Please note that indices do not take into account any fees and expenses of investing in the individual securities that they track, and that individuals cannot invest directly in any index. Data about the performance of this index are prepared or obtained by Neuberger Berman Management LLC and include reinvestment of all dividends and capital gain distributions. The Fund may invest in many securities not included in the above-described index.

(3) Information as of the most recent prospectus dated February 28, 2012.

(4) Neuberger Berman Management contractually caps certain class expenses of the Fund through 10/31/2021 for Class A, Class C and Institutional Class and 10/31/2014 for Trust Class.

Most of the Fund's performance depends on what happens in the bond market. The market's behavior is unpredictable, particularly in the short term. There can be no guarantee that the Fund will achieve its goal. The Fund's yield and share price will fluctuate in response to changes in interest rates. The value of the Fund's investments may decline when interest rates rise. A downgrade or default affecting any of the Fund's securities could affect the Fund's performance. Although the Fund may hold securities that carry U.S. government guarantees, these guarantees do not extend to shares of the Fund itself and do not guarantee the market price of the securities. Lower-rated debt securities may fluctuate more widely in price and yield than investment-grade debt securities and may fall in price during times when the economy is weak or is expected to become weak. Loans generally are subject to restrictions on transfer, and the Fund may be unable to sell loans at a time when it may otherwise be desirable to do so or may be able to sell them only at prices that are less than their fair market value. When interest rates are low, issuers will often repay the obligation underlying a "callable security" early, in which case the Fund may have to reinvest the proceeds in an investment offering a lower yield. A downgrade or default affecting any of the Fund's securities could affect the Fund's performance. Foreign securities involve risks in addition to those associated with comparable U.S. securities. Additional risks include exposure to less-developed or less-efficient trading markets; social, political or economic instability; fluctuations in foreign currencies; nationalization or expropriation of assets; settlement, custodial or other operational risks; and less stringent auditing and legal standards. Shares in the Fund may fluctuate based on interest rates, market condition, credit quality and other factors. In a rising interest rate environment, the value of an income fund is likely to fall.

The Morningstar percentile ranking is based on the fund's total-return percentile rank relative to all funds that have the same category for the same time period. The highest (or most favorable) percentile rank is 1%, and the lowest (or least favorable) percentile rank is 100%. Morningstar total return includes both income and capital gains or losses and is not adjusted for sales charges. The top performing funds in a category will always receive a rank of 1.Ratings are ©2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Mutual funds within the Morningstar Multi-Sector Bond category seek income by diversifying their assets across several fixed-income sectors, including U.S. government obligations, foreign bonds and high-yield domestic debt securities. The portfolio composition of Neuberger Berman Strategic Income Fund may differ from other funds in the category as a whole and so the performance of the Fund may differ from the overall category's performance. The fees charged by the different classes of Fund shares may be lower or higher than those of other mutual funds within the category.

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. All rights reserved.

Neuberger Berman Management LLC, distributor.

Media Contact:
Alex Samuelson, 212.476.5392

SOURCE Neuberger Berman Group LLC

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