Core Insights - The chairman and CEO of Neuberger Berman, George H. Walker, emphasizes the firm's ongoing high allocation to China, indicating that significant foreign investment in China will take time to materialize [1][9] - Walker notes the importance of diversification and maintaining investments in a complex macroeconomic environment, suggesting that global economic growth may be below expectations [1][11] Company Overview - Neuberger Berman, founded in 1939, manages assets totaling $558 billion, approximately 3.97 trillion RMB, and operates in 26 countries and 39 cities [2] - The firm has a strong presence in both public and private markets, with $358 billion in public market assets and $150 billion in private market assets as of the end of 2024 [2] Investment Strategy - Walker highlights the growing trend of active management firms entering the ETF space, with Neuberger Berman's active ETF business growing to approximately $2.5 billion [5] - The firm focuses on providing unique value in areas where it can compete effectively, particularly in active ETFs, which are expected to grow significantly [4][6] Market Trends - The demand for transparency and tax efficiency is driving the growth of active ETFs, with U.S. investors increasingly favoring these products over traditional mutual funds [5][6] - Active ETFs are currently experiencing growth rates that exceed those of passive ETFs, indicating their potential in the market [6] Risk Management - Walker stresses the importance of proactive decision-making to navigate potential crises, drawing from experiences during the 2008 financial crisis [3] - The firm aims to align its compensation structure with client interests, ensuring that deferred compensation is tied to client performance rather than company stock prices [7] Global Perspective - Neuberger Berman has maintained an overweight position in Chinese assets, reflecting a positive outlook despite the need for time before significant foreign investment increases [9] - The firm acknowledges the challenges posed by high valuations in U.S. tech stocks, suggesting that the focus should be on investment strategies rather than outright investment decisions [10]

Core Viewpoint - The chairman and CEO of Neuberger Berman, George H. Walker, emphasizes the firm's ongoing high allocation to China, suggesting that significant increases in foreign investment in China will take time [2][16]. Group 1: Company Overview - Neuberger Berman, founded in 1939, manages assets totaling $558 billion, approximately 3.97 trillion RMB, and operates in 26 countries and 39 cities [3]. - The firm has a strong presence in both public and private markets, with $358 billion in public market assets and $150 billion in private market assets as of the end of 2024 [3]. - Neuberger Berman leads in the Qualified Domestic Limited Partner (QDLP) business in mainland China [3]. Group 2: Investment Strategy and Market Outlook - Walker believes that the global economic growth may fall below expectations, and investors should focus on maintaining diversified portfolios [2]. - The rise of global ETFs is noted, with active management firms increasingly entering this space, which is expected to continue [8]. - The firm has seen its active ETF business grow from a small base to approximately $2.5 billion, driven by new client inflows [9]. Group 3: Active vs. Passive Management - Active ETFs are experiencing growth at a rate that surpasses passive ETFs, indicating significant potential for active management products [11]. - The firm acknowledges that while the popularity of passive investment may increase if the market remains concentrated in a few stocks, active management will thrive in a diversified market [11]. Group 4: Client Concerns and Risk Management - Chinese clients are particularly focused on risk control capabilities and the volatility of their portfolios [15]. - Walker highlights the importance of maintaining discipline in investment strategies, especially during market downturns, to avoid the pitfalls of market timing [19].

Group 1: Company Overview - Neuberger Berman, founded in 1939, has assets under management totaling $558 billion, approximately 3.97 trillion RMB, operating in 26 countries and 39 cities globally [2] - The company has a strong presence in both public and private markets, with $358 billion in public market assets and $150 billion in private market assets as of the end of 2024 [2] - Neuberger Berman leads in the Qualified Domestic Limited Partner (QDLP) business in mainland China [2] Group 2: Investment Strategy and Market Outlook - The company has consistently overweighted its investment in China compared to benchmarks, although significant increases in foreign investment in China will take time [1][12] - The global economic growth is expected to be below expectations, and the macro environment remains complex, emphasizing the importance of diversified investment strategies [1] - The valuation of U.S. tech stocks is considered expensive, and the focus should be on "how to invest" rather than "whether to invest" [1][13] Group 3: ETF and Active Management - The rise of ETFs is driven by various factors, including tax efficiency, with active ETFs growing at a rate that outpaces passive ETFs [6][8] - Neuberger Berman's active ETF business has grown to approximately $2.5 billion, with a positive trend in fund inflows primarily from new clients [6] - The popularity of Separately Managed Accounts (SMA) is increasing, as they can enhance tax efficiency and may compete with active ETFs in the future [7][8] Group 4: Risk Management and Client Focus - The company emphasizes the importance of risk management and maintaining a disciplined investment approach, especially during market downturns [14] - Neuberger Berman aligns its compensation structure with client interests, ensuring that deferred compensation is tied to client performance rather than company stock prices [9] - The firm aims to help clients navigate market challenges and maintain long-term investment strategies, avoiding the pitfalls of market timing [14]

Core Insights - The chairman and CEO of Neuberger Berman, George H. Walker, emphasizes that the firm has been overweighting China in its investment strategy compared to benchmarks, indicating a long-term commitment to the Chinese market [1][10] - Walker notes that while the valuation of U.S. tech stocks is becoming expensive, the critical question for investors is not whether to invest, but how to invest effectively [1][11] - The global asset management industry is witnessing a significant rise in actively managed ETFs, with Neuberger Berman's active ETF business growing to approximately $2.5 billion [4][6] Company Overview - Neuberger Berman, founded in 1939, manages assets totaling $558 billion, equivalent to approximately 3.97 trillion RMB, and operates in 26 countries and 39 cities [2] - The firm has a strong presence in both public and private markets, with $358 billion in public market assets and $150 billion in private market assets [2] Investment Strategy - The firm has been focusing on diversifying investments and maintaining a robust risk management framework, especially in light of past financial crises [3] - Walker highlights the importance of transparency and tax efficiency in investment products, noting that actively managed ETFs are gaining traction due to these factors [5][6] Market Trends - The growth of actively managed ETFs is outpacing that of passive ETFs, indicating a shift in investor preferences towards more actively managed strategies [6] - The firm anticipates that the global AUM (Assets Under Management) for active ETFs will grow from $1.4 trillion in June 2025 to $4.2 trillion by 2030 [6] Client Focus - Neuberger Berman aims to align its compensation structure with client interests, ensuring that deferred compensation is tied to client performance rather than the firm's stock price [7] - The firm recognizes the increasing interest from Chinese insurance companies in global asset allocation strategies, particularly in a low-interest-rate environment [8] Geopolitical Considerations - Walker suggests that foreign investors will require time to increase their allocation to Chinese assets, despite recent positive developments in U.S.-China trade relations [10]