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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 ManagementBrian 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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Richard P. Slaughter Associates Inc. 13809 Research Blvd., Suite 905, Austin, TX 78750 512.918.0000

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

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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

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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 TeamWealth 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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Neuberger Berman Wealth Management is featured in Worth® 2015 Leading Wealth Advisors™, a special section in every edition of Worth® magazine. All persons and firms appearing in this section have completed questionnaires, have been vetted by an advisory group following submission by Worth®, and thereafter paid the standard fees to Worth® to be featured in this section. The information contained herein is for informational purposes, and although the list of advisors presented in this section is drawn from sources believed to be reliable and independently reviewed, the accuracy or completeness of this information is not guaranteed. No person or firm listed in this section should be construed as an endorsement by Worth®, and Worth® will not be responsible for the performance, acts or omissions of any such advisor. It should not be assumed that the past performance of any advisors featured in this special section will equal or be an indicator of future performance. Worth®, a Sandow Media publication, is a financial publisher and does not recommend or endorse investment, legal or tax advisors, investment strategies or particular investments. Those seeking specific investment advice should consider a qualified and licensed investment professional. Worth® is a registered trademark of Sandow Media LLC. See “About Us” for additional program details at http://www.worth.com/index.php/about-worth.

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 60603Tel. 312.325.2223

bhahn@nb.com frank.yao@nb.com

www.nb.com