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Neuberger Berman Investment Advisers Review

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Neuberger Berman Investment Advisers

Neuberger Berman Investment Advisers is a fee-based financial advisor firm with $248.42 billion in assets under management (AUM). It employs 628 financial advisors who work with individual investors and many different types of institutional investors. Neuberger Berman is an international firm headquartered in New York City, and its services center around asset and investment management.

Neuberger Berman Investment Advisers Background

Neuberger Berman Investment Advisers can trace its roots back to 1939, when it was called Neuberger & Berman. The firm has gone through a few name changes over the years. Its last name change was in in 2016, when the firm changed its name from Neuberger Berman Fixed Income, LLC to its current name. The firm is primarily owned by the holding company Neuberger Berman Group.

While it’s unclear exactly how many advisors hold certifications at Neuberger Berman, the firm does offer certified financial planners (CFP) to all of its wealth analysis service clients.

What Types of Clients Does Neuberger Berman Investment Advisers Accept?

Neuberger Berman Investment Advisers is a massive firm, and it serves a wide range of clients. The firm works with individuals, high-net-worth individuals, banks, investment companies, businesses, pension plans, profit-sharing plans, charitable organizations, foundations, endowment funds, government entities, investment advisors, insurance companies, trusts and federal agencies.

Neuberger Berman Investment Advisers Minimum Account Size

Your required minimum investment at Neuberger Berman Investment Advisers will depend on the type of service or portfolio model you select. The firm’s account minimums are as follows:

  • Private asset management: $1 million
  • Guided Portfolio Solutions (GPS) Program: $100,000 initial investment, then $5,000 for subsequent investments
  • Wrap accounts
    • Fixed income: $250,000
    • Equity: $100,000
  • Sub-advised accounts: Varies depending on the intermediary advisor
  • Consulting and non-discretionary services: None
  • Institutional accounts
    • Equity
      • Equity income; mid cap, small cap and all cap intrinsic value; real estate investment trust (REIT) and global REIT mandates; socially responsible investing; China equity; large cap and all cap core: $10 million
      • Small cap mandate: $100 million
    • Fixed income
      • Municipal - intermediate/long duration and cash/short duration; diversified currency and diversified currency high alpha mandates: $25 million
      • U.S., global, European and short duration high yield; senior floating rate loans; global opportunistic fixed income and credit; crossover credit; global bond absolute return; emerging market debt - Asian bond, hard currency, local currency, corporate and short duration mandates: $100 million
      • Emerging market debt - blend mandate: $150 million
    • Alternatives and multi-asset class
      • S&P 500 (OTM), global (OTM) and emerging markets (ATM) PutWrite; Russell 2000 and S&P 500 strangle; S&P 500 Iron Condor mandates: $10 million
      • S&P 500 (ATM), U.S. (ATM) and global (ATM) PutWrite mandates: $25 million
      • Commodities, multi-asset class growth and multi-asset class income mandates: $50 million
      • Risk premia 5% and 10% volatility; Dynamic Beta Navigator; multi-asset class global absolute and relative return; multi-style premia and velocity mandates: $100 million

Services Offered By Neuberger Berman Investment Advisers

Neuberger Berman Investment Advisers’ client base includes a wide mix of individuals and institutions, and its service offerings reflect that. Below you’ll find the firm’s full list of offerings:

  • Private asset management (separately managed accounts)
  • Wealth analysis
    • General financial planning education
      • Investments
      • Taxes
      • Estates
      • Trusts
      • Insurance
    • Investment goal determination
  • Sub-advisory services
    • Available for open-end investment companies, non-U.S. registered funds, separate accounts and private funds
  • Proprietary registered investment companies
    • Securities recommendations, including which to buy/sell and how many to buy
    • Broker/dealer recommendations
  • Consulting services
    • One-time, periodic or ongoing investment policy, security, strategy and manager investment recommendation
    • Written analysis for specific investments
    • Proprietary equity, fixed income and alternative strategies
  • Wrap fee programs
    • Investment management and strategies
    • Custodial services
    • Trade execution

Neuberger Berman Investment Advisers Investment Philosophy

Neuberger Berman Investment Advisers typically uses one of four investment strategies for client accounts. These four strategies typically use the following investments:

  • Fixed income strategies: exchange-traded funds (ETFs), REITs, option contracts, short sales, over-the-counter securities, municipal/U.S. government securities, CDs, corporate debt securities, convertible bonds, preferred securities and warrants
  • Equity strategies: common stocks, preferred stocks, ETFs, REITs, options, participatory notes, depositary receipts, mutual funds and convertible securities
  • Alternative strategies: combination of equity and fixed income investments
  • Multi-asset mandates: equity and fixed income investments with quantitative-based strategic asset allocation models

Although these investments are associated with the specific strategies above, Neuberger Berman also makes an effort to align investment choices with clients’ preferences and needs. So depending on your risk tolerance, time horizon, ultimate financial goals, liquidity needs and any other extenuating circumstances, your portfolio could be comprised of a different mix of investments than what’s listed above.

Fees Under Neuberger Berman Investment Advisers

Neuberger Berman Investment Advisers divides its fees in two ways: by service and by investment type used within this service. In other words, if you’re an institutional client, your fees will be based on the investment strategy used to meet your needs, like core bond, all cap core or global equity. In most cases, fees are charged to client accounts on quarterly schedule.

Neuberger Berman has an extensive fee schedule. For the purpose of this review, we have chosen to list only the most common fees in the tables below:

GPS - Total Portfolio Solutions Fees
Portfolio’s Market Value Annual Fee
Less $500K 1.40%
$500K - $1MM 1.30%
$1MM - $5MM 1.20%
$5MM - $10MM 1.10%
Over $10MM 1.00%

 

Private Asset Management - Cash, Cash Equivalents & Managed Assets
Portfolio’s Market Value Annual Fee
First $5MM 0.40%
Next $15MM 0.30%
Next $30MM 0.275%
Next $100MM 0.25%
Next $250MM 0.15%
Over $400MM 0.12%

 

Institutional Global Equity Account Fees
Portfolio’s Market Value Annual Fee
First $25MM 0.75%
Next $25MM 0.55%
Next $150MM 0.45%
Over $200MM 0.40%

For some of its account services, Neuberger Berman does charge performance-based fees. This applies to separate accounts, private funds, sub-advisory accounts and closed-end fund clients.

Check out the table below to see how Neuberger Berman’s fees for its Total Portfolio Solutions compare. Note that these fees are only estimates and actual costs may vary.

*Fee estimates only consider the maximum base fees for the services each firm provides. You may also pay manager fees and other fees, which can vary in amount. **All figures are based on median fee levels according to Bob Veres' 2017 Planning Profession Fee Survey. The above estimates solely take into account AUM-only fees. Total costs will likely be higher due to additional expenses.
Estimated Fee Comparison*
Your Assets Neuberger Berman Investment Advisers GPS - Total Portfolio Solutions National Median Advisory Fees**
$500K $7,000 $5,000
$1MM $13,500 $8,500 - $10,000
$5MM $61,500 $25,000 - $32,500
$10MM $116,500 $50,000

What to Watch Out For

Neuberger Berman Investment Advisers is a fee-based firm, which means that the firm and its advisors earn money from sources other than client fees. If an advisor introduces a client to the firm and the client stays on for investment management services, the advisor will receive a sales commission. Additionally, advisors may earn additional compensation from the sale of specific securities.

However, Berman is a registered investment advisor with the U.S. Securities and Exchange Commission (SEC), and is therefore bound by fiduciary duty. This means the firm must act in clients’ best interests at all times.

Disclosures

Neuberger Berman Investment Advisers lists just one disclosure on its Form ADV, and this disclosure is attributed to one of the firm's affiliates, Neuberger Berman BD, LLC. This disclosure states that the advisory affiliate “has been involved in a violation of a self-regulatory organization or commodities exchange's rules.”

Opening an Account With Neuberger Berman Investment Advisers

To become a client of Neuberger Berman Investment Advisers, you should get in touch with the branch located closest to you. You can find the phone numbers for the firm’s locations on the contact page on its website.

Where Is Neuberger Berman Investment Advisers Located?

Neuberger Berman operates around the world, including in North America, South America, Asia, Europe and Australia. The firm’s U.S. headquarters is in New York, where the office is located in Midtown Manhattan on 6th Avenue between W. 51st and W. 52nd Streets. The firm also has branches in Boston; Chicago; Dallas; Los Angeles; San Francisco; Tampa, Florida; West Palm Beach, Florida; and Wilmington, Delaware.

Tips for Finding the Right Financial Advisor

  • SmartAsset’s financial advisor matching tool makes the typically strenuous search for a financial advisor much easier. Simply answer the personal finance questions posed to you, and the tool will pair you up with as many as three advisors in your area who are equipped to handle your specific needs.
  • Research, research, research. No other task is more important when looking for a person to manage your entire financial life for you. Check out each firm’s Form ADV to learn everything you can prior to investing your money.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about cost of living in retirement there.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology SmartAsset calculated the average cost of living for retirees in the largest U.S. cities. Using that calculation, we determined how many years $1 million would last in retirement in each major city.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors throughout the country. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%, reflecting the typical return on a conservative investment portfolio. Finally, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would last in each of the cities in our study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research