Neuberger Berman Genesis Fund Advisor Class (NBGAX)

Overview

The fund represents an investment vehicle primarily focused on small-capitalization companies, aligning its investment strategy with the dynamics of the Russell 2000® Index. By investing in companies that fall within the small-cap category at the time of purchase, the fund aims to tap into the potential for growth inherent in smaller companies. Its strategy allows for flexibility; the fund may continue to invest in a company even if the company's market capitalization grows beyond the initial range, reflecting a long-term commitment to its picks regardless of their evolution in size. An important aspect of the fund's approach is its emphasis on risk reduction, achieved through a diversified portfolio that spans numerous companies and industries, mitigating the impact of market volatility and sector-specific downturns.

Products and Services

The fund offers a focused yet diversified investment product, catering to investors interested in small-capitalization companies. The following is a breakdown of the specific investment approach and strategy:

• Investment in Small-Capitalization Companies: The fund specifically targets companies that are classified as small-cap, which are defined based on their total market capitalization being within the range of companies included in the Russell 2000® Index at the time of the fund's initial investment. This focus aims to exploit the growth potential and dynamism typically associated with smaller companies.
• Flexibility in Market Capitalization Growth: While the fund starts with investments in small-cap companies, it doesn't strictly liquidate its holdings if a company grows beyond this cap. This flexibility allows the fund to benefit from the continued growth of its investments, even as they evolve into larger enterprises, thereby potentially enhancing the long-term returns for its investors.
• Diversified Investment Approach: To mitigate investment risks, the fund employs a diversified investment strategy. It spreads its investments across a broad range of companies and sectors, which helps to protect the portfolio against significant losses in any single investment or market sector. This diversification is a cornerstone of the fund's risk management approach, designed to provide more stable returns.