Fund Description

The fund was incepted in October 1998 and is managed by Neuberger Berman Management. The fund invests primarily in the common stock of small domestic companies with less than $1.5 billion in market capitalization at the time of investment. The fund looks for new companies as well as older companies likely to grow because of new products, markets or management. Small-cap stocks can offer explosive growth potential, but they also tend to be more risky than other securities due to their volatility and sensitivity to market trends, company news and industry developments. To manage risk, the managers follow three rules: pay reasonable prices, stay disciplined, and diversify across a wide array of sectors and industries. The first rule helps eliminate overvalued stocks. The second rule means taking quick and decisive action when a stock pick disappoints. The third rule limits risk - no single stock represents more than 5% of the portfolio's total assets, measured at the time of investment. The fund distributes capital gains and dividends annually (in December).