Neuberger Berman Alternative and Multi-Asset Class Funds® (“Alternative Funds”) |
Neuberger Berman Income Funds® (“Income Funds”) |
Supplement to the Class A and Class C Prospectuses, and Statements of Additional Information of each series of Alternative Funds and Income Funds, each as amended and supplemented |
Effective immediately, the following changes apply to the Class A and Class C Prospectuses, and Statements of Additional Information, as applicable, for each series of the Alternative Funds and
Income Funds (each a “Fund”):
(1) Changes to Class C Shares Conversion Privilege:
(a) |
The table titled “Class C Shares” in the “Your Investment – Choosing a Share Class – Summary of Primary Differences Among Share Classes” section of each Fund’s Prospectus is hereby deleted in its entirety and replaced with the following: |
Class C Shares |
|
Initial sales charge |
None |
Contingent deferred sales charge |
1.00% if shares are sold within one year after purchase |
12b-1 fees |
1.00% annually |
Dividends |
Generally lower than Class A and Institutional Class due to higher annual expenses |
Purchase maximum |
See the discussion regarding purchase minimums and maximums in “Maintaining Your Account” |
Conversion |
Automatic conversion into Class A shares of the same Fund at the end of the month following the eighth anniversary of the purchase date of Class C shares. Class C shares held through a financial intermediary |
(b) |
(i) The first sentence of the fourth full paragraph in the “Conversion Information” section of each Fund’s (other than Neuberger Berman Absolute Return Multi-Manager Fund) Statement of Additional Information is hereby deleted and |
Class C shares that are no longer subject to a CDSC will be automatically converted into Class A shares of the same Fund at the end of the month following
the eighth anniversary of the purchase date.
(ii) The second to last sentence of the third full paragraph in the “Conversion Information” section of Neuberger Berman Absolute Return Multi-Manager Fund’s Statement of
Additional Information is hereby deleted and replaced with the following:
Class C shares that are no longer subject to a CDSC will be automatically converted into Class A shares of the same Fund at the end of the month following
the eighth anniversary of the purchase date.
(2) The following is added as the third full paragraph to the section titled “Portfolio Holdings Disclosure – Portfolio Holdings Disclosure Policy” of each Fund’s Statement of Additional
Information:
NBIA serves as investment adviser to various other funds and accounts that may have investment objectives, strategies and portfolio holdings that are substantially similar to or overlap with those of
the Funds, and in some cases, these other funds and accounts may publicly disclose portfolio holdings on a more frequent basis than is required for the Funds. As a result, it is possible that other market participants may use such information for
their own benefit, which could negatively impact the Funds’ execution of purchase and sale transactions.
(3) The second sentence in the section titled “Portfolio Holdings Disclosure – Portfolio Holdings Approved Recipients – Rating, Ranking and Research Agencies.” of each Fund’s Statement of
Additional Information is hereby deleted in its entirety and replaced with the following:
Each Fund provides its complete portfolio holdings to: Lipper, a Refinitiv company, on the sixth business day following each month-end and Bloomberg and Morningstar on the sixth
calendar day following month-end if the Fund posts its holdings monthly (but if a Fund posts its holdings quarterly, it provides its holdings on a quarterly basis on the 16th calendar day following the relevant quarter-end).
(4) Appendix A in each Fund’s Prospectus is hereby deleted in its entirety and replaced with the following:
Appendix A
Financial Intermediary-Specific Sales Charge Waivers and Discounts
The availability of certain sales charge waivers and discounts will depend on whether you purchase your shares directly from the Distributor or through a financial intermediary. Intermediaries may
have different policies and procedures regarding the availability of front-end sales load waivers or contingent deferred (back-end) sales load (“CDSC”) waivers, which are discussed below, and it is the responsibility of the intermediary to monitor
for and implement such policies and procedures. In all instances, it is the purchaser’s responsibility to notify the Distributor or the purchaser’s financial intermediary at the time of purchase of any relationship or other facts qualifying the
purchaser for sales charge waivers or discounts. For waivers and discounts not available through a particular intermediary, shareholders will have to purchase Fund shares directly from the Distributor or through
another intermediary to receive these waivers or discounts.
Ameriprise Financial:
The following information applies to Class A shares purchases if you have an account with or otherwise purchase Fund shares through Ameriprise Financial:
Shareholders purchasing Fund shares through an Ameriprise Financial brokerage account are eligible for the following front-end sales charge waivers, which may differ from those disclosed elsewhere in
[a][the] Fund’s prospectus or SAI:
■ |
Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement |
■ |
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not any other fund within the same fund family). |
■ |
Shares exchanged from Class C shares of the same fund in the month of or following the 7-year anniversary of the purchase date. To the extent that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares |
■ |
Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members. |
■ |
Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise |
■ |
Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares |
Baird:
Effective June 15, 2020, shareholders purchasing Fund shares through a Baird platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC
waivers) and discounts, which may differ from those disclosed elsewhere in this Prospectus or the SAI.
Front-End Sales Charge Waivers on Class A Shares Available at Baird
■ |
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund |
■ |
Shares purchased by employees and registered representatives of Baird or its affiliate and their family members as designated by Baird |
■ |
Shares purchased from the proceeds of redemptions from another Fund within the fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same accounts, and (3) |
■ |
A shareholder in the Fund’s Class C Shares will have their shares converted at net asset value to Class A shares of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of |
■ |
Employer-sponsored retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined |
CDSC Waivers on Class A and C Shares Available at Baird
■ |
Shares sold due to death or disability of the shareholder |
■ |
Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus |
■ |
Shares bought due to returns of excess contributions from an IRA Account |
■ |
Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 72 as described in the Fund’s Prospectus |
■ |
Shares sold to pay Baird fees but only if the transaction is initiated by Baird |
■ |
Shares acquired through a right of reinstatement |
Front-End Sales Charge Discounts Available at Baird: Breakpoints and/or Rights of Accumulations
■ |
Breakpoints as described in this Prospectus |
■ |
Rights of accumulations which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Baird. Eligible fund |
■ |
Letters of Intent (LOI) allow for breakpoint discounts based on anticipated purchases within a fund family through Baird, over a 13-month period of time. |
Edward D. Jones & Co.:
Sales Waivers and Reductions in Sales Charges
Effective on or after May 1, 2020, clients of Edward Jones (also referred to as “shareholders”) purchasing fund shares on the Edward Jones commission and fee-based platforms are
eligible only for the following sales charge discounts (also referred to as “breakpoints”) and waivers, which can differ from breakpoints and waivers described elsewhere in the mutual fund prospectus or SAI or through another broker-dealer. In all
instances, it is the shareholder’s responsibility to inform Edward Jones at the time of purchase of any relationship, holdings in the fund family or other facts qualifying the purchaser for breakpoints or waivers. Edward Jones can ask for
documentation of such circumstance.
Breakpoints
Rights of Accumulation (ROA)
■ |
The applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except any money market funds and retirement plan share classes) of the fund family held by the shareholder or in an |
the purpose of providing certain pricing considerations (“pricing groups”). This includes all share classes held on the Edward Jones |
■ |
ROA is determined by calculating the higher of cost or market value (current shares x NAV). |
Letter of Intent (LOI)
■ |
Through a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the |
Sales Charge Waivers
Sales charges are waived for the following shareholders and in the following situations:
■ |
Associates of Edward Jones and its affiliates and their family members who are in the same pricing group (as determined by Edward Jones under its policies and procedures) as the associate. This waiver will continue for the remainder of the |
■ |
Shares purchased in an Edward Jones fee-based program. |
■ |
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment. |
■ |
Shares purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: 1) the proceeds are from the sale of shares within 60 days of the purchase, and 2) the sale and purchase are made in |
■ |
Shares exchanged into class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if |
■ |
Exchanges from class C shares to class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or earlier at the discretion of Edward Jones. |
Contingent Deferred Sales Charge (CDSC) Waivers
If the shareholder purchases shares that are subject to a CDSC and those shares are redeemed before the CDSC is expired, the shareholder is responsible to pay the CDSC except in the following
conditions:
■ |
The death or disability of the shareholder |
■ |
Systematic withdrawals with up to 10% per year of the account value |
■ |
Return of excess contributions from an Individual Retirement Account (IRA) |
■ |
Shares sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder reaches qualified age based on applicable IRS regulations |
■ |
Shares sold to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones |
■ |
Shares exchanged in an Edward Jones fee-based program |
■ |
Shares acquired through NAV reinstatement |
***************************************************************************************************************************************
Other Important Information
1.1 Minimum
Purchase Amounts
■ |
$250 initial purchase minimum |
■ |
$50 subsequent purchase minimum |
1.2 Minimum
Balances
■ |
Edward Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that are not included in this policy: |
|
◻ |
A fee-based account held on an Edward Jones platform |
|
◻ |
A 529 account held on an Edward Jones platform |
|
◻ |
An account with an active systematic investment plan or letter of intent (LOI) |
1.3 Changing
Share Classes
■ |
At any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder’s holdings in a fund to Class A shares. |
J.P. Morgan Securities LLC:
Shares purchased through a self-directed brokerage account are eligible for sales charge waivers on purchases of Class A shares.
Janney Montgomery Scott LLC:
Effective May 1, 2020, if you purchase fund shares through a Janney Montgomery Scott LLC (“Janney”) brokerage account, you will be eligible for the following load waivers (front-end sales charge
waivers and contingent deferred sales charge (“CDSC”), or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in [a][the] Fund’s Prospectus or SAI.
Front-end sales charge* waivers on Class A shares available at Janney
■ |
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family). |
■ |
Shares purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney. |
■ |
Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following the redemption, (2) the redemption and |
purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e., right of reinstatement). |
■ |
Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement |
■ |
Shares acquired through a right of reinstatement. |
■ |
Class C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Janney’s policies and procedures. |
CDSC waivers on Class A and C shares available at Janney
■ |
Shares sold upon the death or disability of the shareholder. |
■ |
Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus. |
■ |
Shares purchased in connection with a return of excess contributions from an IRA account. |
■ |
Shares sold as part of a required minimum distribution for IRA and other retirement accounts due to the shareholder reaching age 70½ as described in the Fund’s Prospectus. |
■ |
Shares sold to pay Janney fees but only if the transaction is initiated by Janney. |
■ |
Shares acquired through a right of reinstatement. |
■ |
Shares exchanged into the same share class of a different fund. |
Front-end sales charge* discounts available at Janney: breakpoints, rights of accumulation, and/or letters of intent
■ |
Breakpoints as described in the Fund’s Prospectus. |
■ |
Rights of accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Janney. |
■ |
Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Janney may be included in the calculation of letters of intent |
*Also referred to as an “initial sales charge.”
Merrill Lynch:
Shareholders purchasing Fund shares through a Merrill Lynch platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI.
Front-end Sales Load Waivers on Class A Shares available at Merrill Lynch
■ |
Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a |
■ |
Shares purchased by a 529 Plan (does not include 529 Plan units or 529-specific share classes or equivalents) |
■ |
Shares purchased through a Merrill Lynch affiliated investment advisory program |
■ |
Shares exchanged due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers |
■ |
Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform |
■ |
Shares of funds purchased through the Merrill Edge Self-Directed platform (if applicable) |
■ |
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family) |
■ |
Shares exchanged from Class C (i.e. level-load) shares of the same fund pursuant to Merrill Lynch’s policies relating to sales load discounts and waivers |
■ |
Employees and registered representatives of Merrill Lynch or its affiliates and their family members |
■ |
Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus |
■ |
Eligible shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed |
CDSC Waivers on A, B and C Shares available at Merrill Lynch
■ |
Death or disability of the shareholder |
■ |
Shares sold as part of a systematic withdrawal plan as described in the Fund’s prospectus |
■ |
Return of excess contributions from an IRA Account |
■ |
Shares sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code |
■ |
Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch |
■ |
Shares acquired through a right of reinstatement |
■ |
Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to a fee based account or platform (applicable to A and C shares only) |
■ |
Shares received through an exchange due to the holdings moving from a Merrill Lynch affiliated investment advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill Lynch’s policies relating to sales load |
Front-end load Discounts Available at Merrill Lynch:
Breakpoints, Rights of Accumulation & Letters of Intent
■ |
Breakpoints as described in this prospectus. |
■ |
Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the Fund’s prospectus will be automatically calculated based on the aggregated holding of fund family assets held by accounts (including 529 |
■ |
Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable) |
Morgan Stanley Wealth Management:
Effective July 1, 2018 shareholders purchasing Fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following front-end sales charge
waivers with respect to Class A shares, which may differ from and may be more limited than those disclosed elsewhere in this Fund’s Prospectus or SAI.
Front-end Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management
■ |
Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement |
■ |
Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules |
■ |
Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund |
■ |
Shares purchased through a Morgan Stanley self-directed brokerage account |
■ |
Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program |
■ |
Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed |
Oppenheimer & Co. Inc.:
Effective June 30, 2020, shareholders purchasing Fund shares through an Oppenheimer & Co. Inc. (“OPCO”) platform or account are eligible only for the following load waivers (front-end sales charge
waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s Prospectus or SAI.
Front-end Sales Load Waivers on Class A Shares available at OPCO
■ |
Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and |
■ |
Shares purchased by or through a 529 Plan |
■ |
Shares purchased through a OPCO affiliated investment advisory program |
■ |
Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family) |
■ |
Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares |
■ |
A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with |
■ |
Employees and registered representatives of OPCO or its affiliates and their family members |
■ |
Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this Prospectus |
CDSC Waivers on A, B and C Shares available at OPCO
■ |
Death or disability of the shareholder |
■ |
Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus |
■ |
Return of excess contributions from an IRA Account |
■ |
Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the prospectus |
■ |
Shares sold to pay OPCO fees but only if the transaction is initiated by OPCO |
■ |
Shares acquired through a right of reinstatement |
Front-end load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent
■ |
Breakpoints as described in this Prospectus. |
■ |
Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at OPCO. Eligible fund |
Raymond James & Associates, Inc., Raymond James Financial Services, Inc. & each entity’s affiliates (“Raymond James”):
Effective March 1, 2019, shareholders purchasing fund shares through a Raymond James platform or account, or through an introducing broker-dealer or independent registered investment adviser for which
Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may
differ from those disclosed elsewhere in this Fund’s Prospectus or SAI.
Front-end sales load waivers on Class A shares available at Raymond James
■ |
Shares purchased in an investment advisory program. |
■ |
Shares purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions. |
■ |
Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James. |
■ |
Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares |
■ |
A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with |
CDSC Waivers on Classes A, B and C shares available at Raymond James
■ |
Death or disability of the shareholder. |
■ |
Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus. |
■ |
Return of excess contributions from an IRA Account. |
■ |
Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the Fund’s prospectus. |
■ |
Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70½ as described in the Fund’s Prospectus. |
■ |
Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James. |
■ |
Shares acquired through a right of reinstatement. |
Front-end load discounts available at Raymond James: breakpoints, rights of accumulation, and/or letters of intent
■ |
Breakpoints as described in this Prospectus. |
■ |
Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible |
■ |
Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Raymond James may be included in the calculation of letters of |
UBS Financial Services, Inc.
Non-profits in brokerage accounts are eligible for sales charge waivers on purchases of Class A shares.
The date of this supplement is December 15, 2020.
Please retain this supplement for future reference.
Neuberger Berman Investment Advisers LLC |
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1290 Avenue of the Americas |
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New York, NY 10104 |
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Shareholder Services |
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800.877.9700 |
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800.366.6264 |
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