Neuberger Berman Genesis Fund Trust Class (NBGEX)

Overview

This investment fund primarily focuses on acquiring common stocks of small-capitalization companies, which it identifies based on the total market capitalization criteria set by the Russell 2000® Index at the time of initial purchase. The definition of small-capitalization companies is fluid, as it aligns with the varying market capitalization range of companies listed in the Russell 2000® Index. Despite the initial market cap limitations, the fund retains the flexibility to hold or further invest in companies even after their market capitalization exceeds the benchmarks of the Russell 2000® Index. This approach allows for potential growth opportunities beyond the small-cap market while aiming to mitigate investment risk through extensive diversification across numerous companies and various industries.

Products and Services

• Investment in Small-Capitalization Stocks

This service involves the direct purchase of common stocks from companies that meet the small-capitalization criteria, which is reflective of the Russell 2000® Index. The primary focus is on those businesses that, at the time of the fund's initial acquisition, have a total market capitalization within the range of companies listed in the Russell 2000® Index. This strategy aims at tapping into the growth potential of small-cap markets.

• Flexible Investment Strategy Beyond Initial Purchase

Uniquely, the fund's investment strategy does not restrict it to selling off assets once a company's market capitalization grows beyond the small-cap range defined by the Russell 2000® Index. Instead, it allows for continued investment or the holding of stocks in companies that have graduated to a larger market capitalization. This policy supports the potential for higher investment returns by not limiting growth prospects to the initial investment criterion.

• Diversification Strategy

To mitigate risk, the fund adopts a comprehensive diversification strategy. It spreads its investments across a wide range of companies and industries, reducing the impact of potential losses from individual stocks. This diversified investment approach is central to the fund's risk management strategy, aiming to protect investors from significant downturns in specific sectors or industries.