On April 1, 2022, Neuberger Berman Equity Income switched its prospectus benchmark to the Russell 1000 Value Index from the S&P 500. This better reflects the strategy's value orientation; indeed, the Russell 1000 Value is the index for the large-value Morningstar Category, the strategy's long-standing home. The Russell 1000 Value also more closely approximates the strategy's sector exposures. For example, its 8% net technology stake in February 2022 was well below the S&P 500's 26% but not far from the Russell 1000 Value's 9%. The Russell index's expected dividend yield was higher than the S&P's--2.2% vs. 1.5%--but this strategy bested both at nearly 3.0%. Yet, investors shouldn't expect significant portfolio changes here, given that the managers don't tie their portfolio closely to their official benchmark. Thus, the strategy's Morningstar Analyst Ratings remain in place.
Morningstar’s Fund Analysis NBHIX
Will NBHIX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable NBHIX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the NBHIX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of NBHIX’s parent organization’s priorities and whether they’re in line with investors’ interests.