Fund Description

The fund was incepted in September 1988 and is managed by Neuberger Berman Management. The fund seeks growth of capital. The portfolio managers seek long-term capital growth by investing in companies that are still in their early stages of development. They invest primarily in common stocks of small-sized companies, generally below $1.5 billion in market capitalization at the time of initial investment. They believe the small-cap arena offers long-term investors big opportunities - unlike large-caps, small-cap companies start from a very low base and, therefore, may have the ability to grow earnings dramatically over time. The managers look for undervalued companies whose current product lines and balance sheets are strong. They look for companies that are cheap compared with the market as a whole. Their criteria includes above average returns, established market niches, high barriers to entry, strong capital bases, sound future business prospects, and proven management. They focus on companies in industry niches that tend to be overlooked because they lack an exciting new product or innovation. The managers are not interested in experimental or cutting-edge technology stocks that often trade on high future expectations, but have no established record of earnings. Instead, they find 'unexciting' staples like utilities and oil services to be safer points of entry into the small-cap arena, which can be more volatile than mid- and large-caps. The fund distributes capital gains and dividends annually (in December).