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This Silver-Rated Large-Value Fund Doesn't Look Like Peers

Neuberger Berman Equity Income strays from the index to offer an above-average income stream and a conservative risk profile.


Robby Greengold: Neuberger Berman Equity Income earns a Morningstar Analyst Rating of Silver. At the helm are comanagers Rich Levine and Sandy Pomeroy, industry veterans who have been running this fund for the past 11 years. During that time, they've done exactly what they set out to accomplish: To deliver a solid total return with limited volatility relative to the broader equity market.

Few fund portfolios look as this one does. It's officially benchmarked against the S&P 500 but strays far from it. This is a diversified fund comprised of the managers' best ideas across four sleeves: convertible bonds, utilities stocks, REITs, and other dividend-paying stocks. The fund best fits with the Morningstar large-value category, but it invests across styles and market caps. Since the fund's 2006 inception through October 2017, the fund's total returns outpaced 88% of its large-value peers while exhibiting much less volatility and offering excellent downside protection.

All told, this fund is worthwhile for investors looking for an above-average income stream, respectable absolute returns, and a conservative risk profile.

Robby Greengold does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.