The Neuberger Berman US Large Cap Growth fund has retained its Standard & Poor’s (S&P) AA rating after making significant changes to the structure of its investment team.
In its latest report on the $340.3m (£217.2m) fund, S&P says the portfolio’s performance has been “disappointing” since the beginning of 2009 as its growth has been weak relative to its Russell 1000 Growth Index benchmark.
To address this issue, the investment team was changed earlier in the year to put decision-making responsibility on two managers rather than the previous four. This is intended to speed up decisions and prevent compromise from leading to smaller position sizes.
Daniel Rosenblatt and John Barker are now the fund’s two decision-makers, although former decision-makers Daniel Fletcher and Lawrence Fisher remain with the team.
“Although we have yet to see the benefits of the changed approach, we take comfort from the successful longer-term track record of the managers and retain the S&P AA rating for now,” the rating agency’s report says.
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