Neuberger Berman Wealth Management is opening up greater investment opportunities in China. China's equity market is the second largest in the world at nearly $6 trillion and represents only 20% of the MSCI EM index, despite accounting for 37% of global GDP. The MSCI is expected to include China A-shares, allowing over $100 billion to flow into the Chinese market. Additionally, Chinese equities currently trade at 10 times forward earnings, representing a compelling valuation opportunity. Neuberger Berman's local presence in Hong Kong and Shanghai allows them unique insights into the Chinese market.

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2. Greater China is the world’s second-
largest equity market, with a total
market capitalization of nearly (USD)
$6 trillion, larger than that of all other
emerging markets combined. More-
over, China A-share equities represent
the most liquid equity market in the
world, surpassing both the NYSE and
NASDAQ in annual trading value.
China’s sizable and fast-growing
economy has historically been attrac-
tive to many investors, but under-
weighted in their portfolios. This has
been partially due to limits on foreign
investors by Chinese authorities, and
resulting allocation limits within stan-
dard indices. However, government
reforms, coupled with tangible steps by
a major index provider, may now open
the door to a historic increase in Chi-
nese equity exposure. These changes,
combined with low valuations and a
budding recovery in corporate earn-
ings, set the stage, we believe, for
increased opportunity in the Greater
China marketplace.
Over the past several decades, the
MSCI (Morgan Stanley Capital Interna-
tional) indices have added new coun-
tries/markets as they have opened up to
global investors. At present, China rep-
resents only approximately 20 percent
of the MSCI EM (Emerging Markets)
index. However, on a GDP-weighted
basis, China’s representation would
be roughly 37 percent. Because the
MSCI EM index is primarily based on
market capitalization and historical
free float, it is not representative of
China’s relative GDP weighting. This
gap underscores the mismatch we see
between China’s current weighting and
its economic importance.
Our belief is that China A-shares
will soon join the MSCI EM index list.
MSCI estimates that (USD) $7 trillion
worth of assets is benchmarked to var-
ious MSCI indices globally, of which
$1 trillion is tied to the MSCI EM
index. A 10 percent weighting to China
A-shares translates into $100 billion
gradually flowing into the A-shares
market from both foreign passive and
active investors.
From a valuation standpoint, Chi-
nese equities are at levels that are
among their lowest in 10 years—which
we believe represents a compelling
opportunity for bargain hunters. As of
late September 2014, the CSI 300 index,
representing domestic China A-share-
listed Chinese equities, is trading at 9.9
time forward earnings versus the his-
torical average of 16.6 times.
While the pace of economic growth
has been slowing gradually since 2010,
it’s largely the result of the Chinese
government’s plan to transform the
economy from investment- and export-
led to domestic consumption-driven.
Given this change, we actually view the
slowdown favorably because it pro-
vides some breathing room for the
transformation to occur. In the next
three to five years, China is expected
to be the only major global economy
to sustain real GDP growth of over 7
percent, making it a principal driver of
world economic growth.
Neuberger Berman’s Greater China
investment team is located in Hong
Kong and Shanghai, with a majority of
the research analysts based out of
Shanghai. Our local presence allows us
to understand the local trends, lan-
guage, laws, customs and culture. Pol-
icy changes are an integral part of how
the China market behaves, and our
ability to stay abreast of these issues
gives us an edge. Our research analysts
also spend a lot of time on the road,
meeting in person with management
teams, competitors and suppliers and
providing us with invaluable insights
that would be difficult to obtain were
we based elsewhere.
Chicago, IL Leading Wealth Advisor
How is investing in China opening
up greater opportunities?
Neuberger Berman Wealth Management
Brian E. Hahn, Managing Director; Frank Yao, Senior Portfolio
Manager and Managing Director, Greater China Investment Team
By Brian E. Hahn and Frank Yao
This material is presented solely for informational purposes and nothing herein constitutes investment, legal, accounting or tax advice. No recommendation or
advice is being given as to whether any investment or strategy is suitable for a particular investor. Investing entails risks, including possible loss of principal.
Past performance is no guarantee of future results. Firm data, including employee and assets under management figures, reflect collective data for the various
affiliated investment advisors that are subsidiaries of Neuberger Berman Group LLC. Neuberger Berman LLC is a registered investment advisor and broker/
dealer, and member, FINRA/SIPC. Alternatives and fixed-income products and services are generally available through affiliates of Neuberger Berman LLC.
Financial planning analysis, tax-planning and trust and estate administration services are offered by Neuberger Berman Trust Company N.A., an affiliate of
Neuberger Berman LLC. The “Neuberger Berman” name and logo are registered service marks of Neuberger Berman Group LLC. ©2014 Neuberger Berman
Group LLC. All rights reserved.

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w o r t h . c o m d e c e m b e r 2 0 1 4 - j a n u a r y 2 0 1 5
NeubergerBermanWealthManagementlivegrowmake
Minimum Net Worth Requirement
$5 million
Financial Services Experience
Hahn, 24 years;Yao, 20+ years
Primary Custodian for Managed
Account Assets J.P. Morgan
Website www.nb.com
Primary Method of Compensation
Asset-based fees
Available Professional Services
Investment advisory, wealth planning, trust and fiduciary services
Email bhahn@nb.com
frank.yao@nb.com
illustrationbykevinsprouls
How to reach the Hahn Team
We can be reached at 312.325.2223 and
look forward to hearing from you.
Neuberger Berman Wealth Management 190 South LaSalle Street, 24th Floor, Chicago, IL 60603 312.325.2223
Frank Yao
About Neuberger Berman Wealth Management, the Hahn Team
Wealth management is part of Neuberger Berman’s DNA. The firm was founded to manage assets on
behalf of individuals, families and their charitable organizations. Now, 75 years later, as a global investment
management organization overseeing more than $250 billion across equities, fixed income and alternatives,
Neuberger Berman’s wealth management business still remains a central focus. For nearly 20 years, the Hahn
Team has been a leading advisory group within Neuberger Berman’s wealth management business, creating
customized investment solutions for individuals and their families. Currently overseeing approximately $1.4
billion in private client assets, the team leverages the expertise of Frank Yao and other investment professionals
in designing and implementing customized investment solutions for sophisticated clients. Frank Yao is Vice
Chairman of Asia and Senior Portfolio Manager for Neuberger Berman’s Greater China Investment Team.
Based in Shanghai and Hong Kong, Frank and his 13-person investment team manage more than $2 billion in
assets across multiple Greater China-focused strategies, including both hedge fund and mutual fund vehicles.
“In the next three to five years, China
is expected to be the only major
global economy to sustain real GDP
growth of over 7 percent.”
—Brian E. Hahn
Brian E. Hahn

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Brian E. Hahn
Managing Director
Frank Yao
Senior Portfolio Manager and Managing Director, Greater China Investment Team
Neuberger Berman Wealth Management
190 S LaSalle Street, 24th Floor
Chicago, IL 60603
Tel. 312.325.2223
bhahn@nb.com
frank.yao@nb.com
www.nb.com