Neuberger Berman Absolute Return Multi-Manager Fund Institutional Class generated a 4.97% total return for the six months ended April 30, 2013 and outperformed its primary benchmark, the HFRX Absolute Return Index, which posted a 2.00% return. (Performance for all share classes is provided in the table following this letter.)

Risk assets generated strong results during the reporting period. In our opinion, investor sentiment was buoyed by a resolution to the U.S. fiscal cliff and concerns regarding the impact of the sequestration appeared short lived. Demand for risk assets was also fueled by continued aggressive monetary policy accommodation by the Federal Reserve and the central banks of other developed countries. There were several spikes in market volatility during the period, most notably leading up to the fiscal cliff and sequestration. However, market volatility overall was relatively benign and U.S. equity indices reached all-time highs. All told, the S&P 500 Index returned 14.42% and the Barclays U.S. Aggregate Bond Index rose 0.90% during the past fiscal six months.

Seven of the portfolio's eight subadvisers generated positive absolute returns for the period. Long/short equity was the most material positive contributor, with two of the Fund's three subadvisers in the space posting positive performance. With correlations among stocks declining, it was a positive environment for stock picking. In particular, long positions in the Health Care sector were beneficial to performance. These and other long positions largely offset the negative impact of short positions amid the market's sharp ascent.

Credit long/short strategies were the next most material positive contributor for the period, as both subadvisers in the space generated gains. The spread between bank loans and high yield bonds remained near historical tights, making bank loans attractive as they appear to offer a greater degree of protection against a potential rise in interest rates and have seniority in the capital structure. Against this backdrop, our subadvisers increased their allocation to bank loans relative to high yield bonds.

Event driven equity strategies also performed well during the period, with all three of the portfolio's subadvisers within this category generating positive performance. Merger and acquisition ("M&A") activity increased during the period, driven by several large deal announcements in February, some of which were the largest in terms of dollar amounts since 2008. Outside of M&A, trades involving companies undergoing other forms of corporate activity, such as real estate investment trust (REIT) or master limited partnership (MLP) conversions, spin-offs, or asset sales, were also additive to the Fund's performance.

During the reporting period, the subadvisers' use of futures, options and equity swaps did not contribute materially to the Fund's results.

Market dynamics and broad themes driving security prices can have positive or negative effects on the Fund's returns. Whereas the market was primarily driven by macro fears and decisions by policymakers in the U.S. and Europe over much of 2012, we have started to see a shift toward fundamentals and valuations during the reporting period. Given that our subadvisers are focused primarily on long-term fundamentals, we anticipate their performance could benefit from this change.

With the market's strong performance in the first part of 2013, our long/short subadvisers have maintained their conservative profile, with low gross and net exposures as they remain focused on hedging against the possibility of a market correction in the near term.

Our credit strategy subadvisers continue to favor bank loans over high yield bonds given continued tight spreads. In addition, our subadvisers are beginning to see what they consider are attractive opportunities in middle market high yield companies that lack easy access to the public financing markets. As we remain positive in the credit space given the opportunity set we see, we anticipate that we will maintain a large allocation to credit strategies and plan to opportunistically add to the allocation.

TICKER SYMBOLS

Institutional Class				NABIX
Class A				NABAX
Class C				NABCX

PORTFOLIO BY TYPE OF SECURITY

(as a % of Total Net Assets)

	Long			Short
Common Stocks		57.5	%		(16.8	)%
Bank Loan Obligations		10.8			—
Corporate Debt Securities		2.9			(0.1	)
Purchased Options		0.2			—
Exchange Traded Funds		0.6			(4.6	)
Investment Companies		3.4			—
Rights		0.0			—
U.S. Treasury Securities		0.1			(0.2	)
Warrants		0.2			—
Short-Term Investments		32.9			—
Cash, receivables and other assets, less liabilities		13.1			—
Total		121.7	%		(21.7	)%

PERFORMANCE HIGHLIGHTS

	Inception Date	Six Month Period Ended 04/30/2013			Cumulative Total Return Ended 04/30/2013 Life of Fund
At NAV
Institutional Class	05/15/2012		4.97	%		4.97	%
Class A	05/15/2012		4.68	%		4.58	%
Class C	05/15/2012		4.40	%		3.88	%
With Sales Charge
Class A			–1.34	%		–1.43	%
Class C			3.40	%		2.88	%
Index
HFRX Absolute Return Index^1,2			2.00	%		1.66	%
S&P 500 Index^1,2			14.42	%		21.94	%
Barclays U.S. Aggregate Bond Index^1,2			0.90	%		3.21	%

The performance data quoted represent past performance and do not indicate future results. Current performance may be lower or higher than the performance data quoted. For more current performance data, please visit www.nb.com/performance.

The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Fund distributions or on the redemption of Fund shares.

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.

Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.

Neuberger Berman Alternative Funds
	ACTUAL									HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)⁽²⁾
	Beginning Account Value 11/01/2012		Ending Account Value 4/30/2013		Expenses Paid During the Period⁽¹⁾ 11/01/2012 - 4/30/2013		Expense Ratio			Beginning Account Value 11/01/2012		Ending Account Value 4/30/2013		Expenses Paid During the Period⁽¹⁾ 11/01/2012 - 4/30/2013		Expense Ratio
Neuberger Berman Absolute Return Multi-Manager Fund
Institutional Class	$	1,000.00	$	1,049.70	$	12.50		2.46	%	$	1,000.00	$	1,012.60	$	12.28		2.46	%
Class A	$	1,000.00	$	1,046.80	$	13.91		2.74	%	$	1,000.00	$	1,011.21	$	13.66		2.74	%
Class C	$	1,000.00	$	1,044.00	$	17.84		3.52	%	$	1,000.00	$	1,007.34	$	17.52		3.52	%

(1) For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).

(2) Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 365.

TOP TEN EQUITY HOLDINGS LONG POSITIONS (as a % of Net Assets)

		Country	Industry
1	HJ Heinz Co.	United States	Food Products	2.3	%
2	Virgin Media, Inc.	United States	Media	2.2	%
3	Life Technologies Corp.	United States	Life Sciences Tools & Services	1.7	%
4	Plains Exploration & Production Co.	United States	Oil, Gas & Consumable Fuels	1.3	%
5	NYSE Euronext	United States	Diversified Financial Services	1.1	%
6	Pfizer, Inc.	United States	Pharmaceuticals	1.0	%
7	BMC Software, Inc.	United States	Software	0.9	%
8	Dover Corp.	United States	Machinery	0.8	%
9	Tyco International Ltd.	Switzerland	Commercial Services & Supplies	0.7	%
10	Roche Holding AG ADR	Liechtenstein	Pharmaceuticals	0.7	%

TOP TEN EQUITY HOLDINGS SHORT POSITIONS (as a % of Net Assets)

		Country	Industry
1	Liberty Global, Inc. Class A	United States	Media	(0.8	)%
2	IntercontinentalExchange, Inc.	United States	Diversified Financial Services	(0.8	)%
3	Freeport-McMoRan Copper & Gold, Inc.	United States	Metals & Mining	(0.5	)%
4	Comcast Corp. Class A	United States	Media	(0.4	)%
5	The Sherwin-Williams Co.	United States	Chemicals	(0.4	)%
6	DENTSPLY International, Inc.	United States	Health Care Equipment & Supplies	(0.3	)%
7	Lennar Corp. Class A	United States	Household Durables	(0.3	)%
8	LinnCo LLC	United States	Oil, Gas & Consumable Fuels	(0.3	)%
9	WhiteWave Foods Co. Class A	United States	Food Products	(0.3	)%
10	Liberty Global, Inc. Series C	United States	Media	(0.3	)%

	Number of Shares		Value†
Aegerion Pharmaceuticals, Inc.		1,000	$	42,040	*
Alkermes PLC		940		28,773	*
Alnylam Pharmaceuticals, Inc.		960		22,992	*
Biogen Idec, Inc.		720		157,630	*
BioMarin Pharmaceutical, Inc.		4,550		298,480	*
Cepheid, Inc.		3,190		121,635	*
Cubist Pharmaceuticals, Inc.		4,600		211,232	*^Ø
Elan Corp. PLC ADR		7,110		83,187	*
Gilead Sciences, Inc.		3,840		194,458	*
InterMune, Inc.		4,770		44,504	*
Neurocrine Biosciences, Inc.		14,090		162,599	*
NPS Pharmaceuticals, Inc.		14,180		190,437	*
Onyx Pharmaceuticals, Inc.		450		42,660	*
QLT, Inc.		6,520		52,356	*
Sarepta Therapeutics, Inc.		1,130		32,815	*
Synageva BioPharma Corp.		1,460		75,467	*^Ø

	Number of Shares		Value†
Sterling Bancorp.		5,000	$	56,400
				190,985
Commercial Services & Supplies (0.9%)
Copart, Inc.		3,200		112,800	*
Tyco International Ltd.		14,125		453,695
				566,495
Communications Equipment (1.0%)
Cisco Systems, Inc.		12,000		251,040	^Ø
F5 Networks, Inc.		670		51,208	*
Loral Space & Communications, Inc.		1,500		92,280
RADWARE Ltd.		3,720		55,763	*
Telular Corp.		12,000		153,240
				603,531
Computers & Peripherals (1.1%)
Dell, Inc.		25,077		336,032	^Ø
EMC Corp.		5,480		122,916	*
Intermec, Inc.		26,500		260,760	*^Ø
				719,708
Construction & Engineering (0.3%)
EMCOR Group, Inc.		1,160		43,384
Foster Wheeler AG		2,940		62,034	*
Jacobs Engineering Group, Inc.		1,820		91,874	*
				197,292
Consumer Finance (0.0%)
Netspend Holdings, Inc.		200		3,192	*
Distributors (0.1%)
LKQ Corp.		3,230		77,778	*
Diversified Consumer Services (0.5%)
H&R Block, Inc.		3,046		84,496
Regis Corp.		13,500		253,125	^Ø
				337,621
Diversified Financial Services (1.1%)
NYSE Euronext		17,248		669,395	^Ø
Diversified Telecommunication Services (0.2%)
Fairpoint Communications, Inc.		5,645		45,950	*
Intelsat SA		1,560		31,434	*
Ziggo NV		500		17,921
				95,305
Electrical Equipment (0.9%)
AMETEK, Inc.		2,040		83,048
Capstone Turbine Corp.		108,235		95,258	*
Eaton Corp. PLC		4,400		270,204

	Number of Shares		Value†
Roper Industries, Inc.		960	$	114,864
				563,374
Electronic Equipment, Instruments & Components (0.2%)
OSI Systems, Inc.		1,680		96,264	*^Ø
Power-One, Inc.		1,500		9,480	*
Softchoice Corp.		1,000		19,862
				125,606
Energy Equipment & Services (1.1%)
Cameron International Corp.		1,040		64,012	*
Dresser-Rand Group, Inc.		1,120		62,283	*
Exterran Holdings, Inc.		2,440		64,465	*
Heckmann Corp.		6,512		24,029	*^Ø
Lufkin Industries, Inc.		3,500		309,015
Noble Corp.		2,556		95,850
Transocean Ltd.		1,870		96,249	*
				715,903
Food & Staples Retailing (0.5%)
Harris Teeter Supermarkets, Inc.		1,610		67,282
United Natural Foods, Inc.		1,330		66,420	*
Walgreen Co.		2,120		104,961
Whole Foods Market, Inc.		890		78,605
				317,268
Food Products (3.8%)
Boulder Brands, Inc.		5,720		51,537	*
Copeinca ASA		10,000		104,916
DE Master Blenders 1753 NV		12,300		195,030	*
Dean Foods Co.		15,264		292,153	*^Ø
GrainCorp Ltd. Class A		1,000		13,290
HJ Heinz Co.		20,187		1,461,943	^Ø
Rieber & Son AS		7,000		81,332	*
Smithfield Foods, Inc.		5,927		151,731	*
				2,351,932
Health Care Equipment & Supplies (2.6%)
Analogic Corp.		3,590		285,333	^Ø
ArthroCare Corp.		2,070		71,725	*
Baxter International, Inc.		3,720		259,916	^Ø
Conceptus, Inc.		4,000		124,040	*
CONMED Corp.		3,360		105,269
Covidien PLC		3,600		229,824	^±
Cynosure, Inc. Class A		3,680		95,165	*
Hologic, Inc.		4,424		90,117	*

	Number of Shares		Value†
Insulet Corp.		3,150	$	79,506	*
Palomar Medical Technologies, Inc.		1,000		13,550	*
Teleflex, Inc.		1,490		116,414
The Cooper Cos., Inc.		680		75,072	^Ø
Wright Medical Group, Inc.		2,516		58,975	*^±
				1,604,906
Health Care Providers & Services (4.1%)
Accretive Health, Inc.		4,861		51,235	*^Ø
Air Methods Corp.		5,880		215,149
AmerisourceBergen Corp.		1,440		77,933
Assisted Living Concepts, Inc. Class A		4,000		47,680
Cardinal Health, Inc.		5,430		240,114
Catamaran Corp.		3,090		178,386	*^Ø
Community Health Systems, Inc.		4,790		218,280	^Ø
Coventry Health Care, Inc.		6,118		303,147	^Ø
Emeritus Corp.		1,030		26,471	*
HCA Holdings, Inc.		4,080		162,751	^Ø
Health Net, Inc.		2,330		68,502	*
McKesson Corp.		1,990		210,582
Patterson Cos., Inc.		5,330		202,273
Quest Diagnostics, Inc.		2,990		168,427
Team Health Holdings, Inc.		5,770		215,106	*
Universal Health Services, Inc. Class B		2,220		147,830
WellCare Health Plans, Inc.		1,120		65,307	*^Ø
				2,599,173
Hotels, Restaurants & Leisure (0.8%)
7 Days Group Holdings Ltd. ADR		200		2,718	*
Ameristar Casinos, Inc.		5,477		144,538	^Ø
International Game Technology		1,686		28,578
Orient-Express Hotels Ltd. Class A		3,000		30,300	*
SeaWorld Entertainment, Inc.		3,200		107,520	*
SHFL Entertainment, Inc.		4,160		65,728	*
WMS Industries, Inc.		4,201		106,621	*
				486,003

	Number of Shares		Value†
Household Durables (0.5%)
American Greetings Corp. Class A		300	$	5,532
Blyth, Inc.		3,538		58,306
Ethan Allen Interiors, Inc.		2,350		68,808
Lennar Corp. Class B		4,816		157,050	^Ø
				289,696
Insurance (1.6%)
American International Group, Inc.		3,693		152,964	*^±
Fidelity National Financial, Inc. Class A		3,020		81,087
Hartford Financial Services Group, Inc.		15,420		433,148
National Financial Partners Corp.		12,684		321,412	*
				988,611
Internet Software & Services (0.8%)
Akamai Technologies, Inc.		2,310		101,432	*^Ø
Brightcove, Inc.		3,720		22,394	*
Millennial Media, Inc.		3,060		21,206	*
Monster Worldwide, Inc.		15,325		67,124	*
Rackspace Hosting, Inc.		1,570		75,674	*
Yahoo!, Inc.		9,741		240,895	*
				528,725
IT Services (0.9%)
Automatic Data Processing, Inc.		2,275		153,198
MAXIMUS, Inc.		2,810		223,929
Teradata Corp.		3,100		158,317	*
				535,444
Life Sciences Tools & Services (1.7%)
Life Technologies Corp.		14,414		1,062,168	*^±Ø
Machinery (2.4%)
Dover Corp.		7,550		520,799	^Ø
Gardner Denver, Inc.		5,051		379,280
Ingersoll-Rand PLC		1,816		97,701
Pentair Ltd.		5,589		303,762	^Ø
Stanley Black & Decker, Inc.		1,735		129,795	^Ø
Wabash National Corp.		5,954		56,146	*
Xerium Technologies, Inc.		2,358		22,378	*
				1,509,861

	Number of Shares		Value†
Media (5.4%)
Arbitron, Inc.		3,664	$	171,072	^Ø
CBS Corp. Class B		3,900		178,542
Clear Channel Outdoor Holdings, Inc. Class A		2,170		15,689	*
Comcast Corp. Class A		7,147		280,806	^Ø
DreamWorks Animation SKG, Inc. Class A		5,130		98,906	*^Ø
Gray Television, Inc.		18,073		114,764	*
Journal Communications, Inc. Class A		2,000		13,620	*
Lamar Advertising Co. Class A		5,000		234,100	*^±
Liberty Global, Inc. Series C		1,307		88,419	*
Liberty Media Corp. Class A		1,288		147,965	*^Ø
Lions Gate Entertainment Corp.		3,410		84,602	*
Nexstar Broadcasting Group, Inc. Class A		1,499		36,501
Tribune Co.		6,512		369,556	*^Ø
Tribune Co. Class 1C Litigation		300,000		1,650	*
Viacom, Inc. Class B		2,850		182,371
Virgin Media, Inc.		27,872		1,359,596	^Ø
				3,378,159
Metals & Mining (0.8%)
AuRico Gold, Inc.		7,000		36,190
Aurizon Mines Ltd.		10,000		42,880	*
First Quantum Minerals Ltd.		2,000		34,920
Gold Fields Ltd. ADR		29,763		222,032
Hoganas AB Class B		1,000		47,755
Sibanye Gold Ltd. ADR		4,414		16,994	*
SunCoke Energy, Inc.		7,748		117,227	*^Ø
				517,998
Multi-Utilities (0.2%)
CH Energy Group, Inc.		2,000		129,940	^Ø
Oil, Gas & Consumable Fuels (4.1%)
Berry Petroleum Co. Class A		4,255		203,857	^Ø
Cameco Corp.		15,420		300,844	^Ø

	Number of Shares		Value†
Copano Energy LLC		1,000	$	40,190
EQT Corp.		970		72,866
Hess Corp.		2,205		159,157	^Ø
Kelt Exploration Ltd.		1,000		7,296	*
McMoRan Exploration Co.		21,066		348,642	*^Ø
Occidental Petroleum Corp.		3,706		330,797
Peabody Energy Corp.		3,584		71,895
Plains Exploration & Production Co.		17,683		799,272	*^Ø
QEP Resources, Inc.		5,267		151,216
Tesoro Corp.		1,772		94,625
Uranium One, Inc.		1,000		2,779	*
				2,583,436
Paper & Forest Products (0.6%)
Buckeye Technologies, Inc.		10,615		399,018
Personal Products (0.3%)
The Estee Lauder Cos., Inc. Class A		2,800		194,180	^Ø
Pharmaceuticals (5.0%)
AbbVie, Inc.		8,480		390,504
Actavis, Inc.		800		84,584	*
Aspen Pharmacare Holdings Ltd.		2,260		49,086	*
AstraZeneca PLC ADR		3,710		192,623
Auxilium Pharmaceuticals, Inc.		1,880		28,069	*^Ø
Bristol-Myers Squibb Co.		3,210		127,501
Cadence Pharmaceuticals, Inc.		1,240		8,779	*
Dr. Reddy's Laboratories Ltd. ADR		810		30,683
Impax Laboratories, Inc.		5,460		95,550	*
Jazz Pharmaceuticals PLC		1,160		67,686	*
Ono Pharmaceutical Co. Ltd.		2,830		186,373
Pfizer, Inc.		21,280		618,610	^Ø
Roche Holding AG ADR		7,110		443,806
Sanofi ADR		3,160		168,586
SHIRE PLC ADR		1,420		132,969
Takeda Pharmaceutical Co. Ltd.		2,770		152,018
Taro Pharmaceutical Industries Ltd.		500		30,305	*
ViroPharma, Inc.		8,940		243,615	*^Ø

	Number of Shares		Value†
Warner Chilcott PLC Class A		3,750	$	53,925
XenoPort, Inc.		2,480		15,401	*
				3,120,673
Professional Services (0.5%)
The Corporate Executive Board Co.		1,660		93,558
The Dun & Bradstreet Corp.		1,925		170,266
TrueBlue, Inc.		3,140		65,061	*
				328,885
Real Estate Investment Trusts (1.8%)
BRE Properties, Inc.		5,681		286,777
Newcastle Investment Corp.		8,900		100,837
Ryman Hospitality Properties		3,331		148,097	^Ø
Spirit Realty Capital, Inc.		8,491		182,811
The Geo Group, Inc.		10,609		397,307	^Ø
				1,115,829
Semiconductors & Semiconductor Equipment (0.5%)
Analog Devices, Inc.		1,000		43,990
Applied Materials, Inc.		3,330		48,318
Entegris, Inc.		4,570		43,324	*
Lam Research Corp.		1,070		49,455	*
Photronics, Inc.		10,400		82,056	*
Silicon Image, Inc.		13,870		68,379	*
				335,522
Software (2.4%)
AVG Technologies NV		4,430		72,298	*
BMC Software, Inc.		12,386		563,315	*^±Ø
Citrix Systems, Inc.		1,050		65,278	*
Compuware Corp.		6,618		79,416	*
Electronic Arts, Inc.		3,950		69,560	*
Jive Software, Inc.		4,270		58,029	*^Ø
Nuance Communications, Inc.		6,100		116,144	*^±
PTC, Inc.		5,390		129,414	*
Symantec Corp.		7,400		179,820	*^Ø
Synopsys, Inc.		1,940		69,006	*
TiVo, Inc.		9,082		106,441	*
				1,508,721
Specialty Retail (0.6%)
Best Buy Co., Inc.		130		3,379
Francesca's Holdings Corp.		2,420		69,115	*
GNC Holdings, Inc. Class A		1,860		84,314	^Ø

	Number of Shares		Value†
Hot Topic, Inc.		2,000	$	27,900
Office Depot, Inc.		8,116		31,328	*
The Children's Place Retail Stores, Inc.		3,175		155,321	*
				371,357
Textiles, Apparel & Luxury Goods (0.0%)
Fifth & Pacific Cos., Inc.		713		14,702	*
Thrifts & Mortgage Finance (0.3%)
Federal National Mortgage Association, Preference Shares Series S		2,590		11,862	*^µ
Hudson City Bancorp., Inc.		6,500		54,015	^Ø
Ocwen Financial Corp.		1,235		45,177	*
TFS Financial Corp.		7,806		84,851	*
				195,905
Transportation Infrastructure (0.1%)
Macquarie Infrastructure Co., LLC		1,308		76,230
Wireless Telecommunication Services (1.0%)
MetroPCS Communications, Inc.		10,000		118,400	*
Sprint Nextel Corp.		20,417		143,940	*^±
Vodafone Group PLC ADR		12,603		385,526
				647,866
Total Common Stocks (Cost $34,396,360)				36,086,637
Exchange Traded Funds (0.6%)
PowerShares DB U.S. Dollar Index Bullish Fund (Cost $386,153)		17,250		382,950	*
Investment Companies (3.4%)
Mutual Funds (3.4%)
MainStay Unconstrained Bond Fund (Cost $2,080,276)		222,225		2,102,249

	Number of Rights		Value†
Rights (0.0%)
Health Care Equipment & Supplies (0.0%)
Wright Medical Group, Inc. (Cost $—)		8,529	$	22,175	*^±
	Number of Warrants
Warrants (0.2%)
Building Products (0.0%)
Owens Corning		3,193		7,644	*
Machinery (0.0%)
Xerium Technologies, Inc.		1,902		1,521	*
Media (0.2%)
Tribune Co.		1,877		106,426	*
Total Warrants (Cost $91,900)				115,591
	Principal Amount
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (0.1%)
U.S. Treasury Bonds, 2.75%, due 8/15/42 (Cost $32,136)	$	32,000		31,075
Corporate Debt Securities (2.9%)
Aerospace & Defense (0.0%)
Erickson Air-Crane, Inc., 8.25%, due 5/1/20		27,000		27,810	^Ñ
Beverages (0.1%)
Constellation Brands, Inc., 3.75%, due 5/1/21		12,000		12,180
Constellation Brands, Inc., 4.25%, due 5/1/23		21,000		21,394
				33,574
Chemicals (0.3%)
Montell Finance Co. BV, 8.10%, due 3/15/27		127,000		174,942	^ñ
Commercial Services & Supplies (0.0%)
NES Rentals Holdings, Inc., 7.88%, due 5/1/18		27,000		27,810	^Ñ

	Principal Amount		Value†
Communications Equipment (0.6%)
Nortel Networks Ltd., 5.34%, due 7/15/11	$	200,000	$	206,500	^≠
Sorenson Communications, Inc., 10.50%, due 2/1/15		165,000		153,450	^Ñ
				359,950
Diversified Financial Services (0.4%)
Lehman Brothers Holdings, Inc., 6.88%, due 5/2/18		1,000,000		241,250	^≠
Independent Power Producers & Energy Traders (0.0%)
AES Corp., 4.88%, due 5/15/23		27,000		27,540
Insurance (0.2%)
Ambac Assurance Corp., 5.10%, due 6/7/20		145,000		126,875	^Ñ≠
Leisure Equipment & Products (0.1%)
Eastman Kodak Co., 9.75%, due 3/1/18		59,000		52,141	^Ñ≠
Media (0.2%)
COX Communications, Inc., 2.95%, due 6/30/23		55,000		54,878	^Ñ
COX Communications, Inc., 4.50%, due 6/30/43		55,000		54,976	^Ñ
DISH DBS Corp., 5.88%, due 7/15/22		40,000		40,800
				150,654
Multiline Retail (0.1%)
Dollar General Corp., 3.25%, due 4/15/23		28,000		28,081
Paper & Forest Products (0.3%)
Resolute Forest Products, 5.88%, due 5/15/23		165,000		162,938	^Ñ
Wireless Telecommunication Services (0.6%)
Intelsat Luxembourg SA, 11.25%, due 2/4/17		219,000		233,235
Intelsat Luxembourg SA, 7.75%, due 6/1/21		80,000		84,400	^ñ

	Principal Amount		Value†
Leisure Equipment & Products (0.1%)
Eastman Kodak Co., Term Loan, due 9/30/13	$	59,000	$	59,914
Media (1.1%)
Charter Communications Operating LLC, Term Loan F, due 1/31/21		88,000		87,890	^{¢^^}
Gatehouse Media Operating Inc., Term Loan B, 2.20%, due 8/24/14		359,827		131,448	^{¢^^}
Gatehouse Media Operating Inc., Term Loan C, due 8/24/14		61,879		22,605	^{¢^^}
Gatehouse Media Operating Inc., Term Loan L, 2.20%, due 8/24/14		114,560		41,850	^{¢^^}
McGraw Hill Global Education Holdings LLC, Term Loan B, 9.00%, due 3/15/19		250,000		249,895
UPC Broadband Holding BV, Term Loan AH, due 6/30/21		165,000		164,753	^{¢^^}
				698,441
Oil, Gas & Consumable Fuels (0.8%)
NFR Energy LLC, 2nd Lien Term Loan, 8.75%, due 12/31/18		500,000		513,125	^Ña
Paper & Forest Products (0.1%)
Osmose Holdings, Inc., Term Loan, due 11/26/18		83,000		83,779	^{¢^^}
Software (0.5%)
RedPrairie Corp., 1st Lien Term Loan, 6.75%, due 12/14/18		299,250		305,609
Specialty Retail (0.6%)
Pilot Travel Centers LLC, Term Loan B2, due 8/6/19		350,000		346,209	^{¢^^}

	Number of Shares			Value†
Short-Term Investment (32.9%)
Dreyfus Treasury Prime Cash Management (Cost $20,661,021)		20,661,021		$	20,661,021	^Ø
Total Long Positions (108.6%) (Cost $66,133,741)					68,102,077	^##
Cash, receivables and other assets, less liabilities (13.1%)					8,227,788	^±Ø
Short Positions (see summary below) ((21.7)%)					(13,622,612	)
Total Net Assets (100.0%)				$	62,707,253
Short Positions ((21.7)%)
Common Stocks Sold Short (16.8%)^ØØ£
Aerospace & Defense (0.2%)
Northrop Grumman Corp.		(680	)		(51,503	)
Raytheon Co.		(770	)		(47,263	)
					(98,766	)
Air Freight & Logistics (0.1%)
Expeditors International of Washington, Inc.		(1,790	)		(64,315	)
Biotechnology (0.6%)
Alnylam Pharmaceuticals, Inc.		(1,580	)		(37,841	)*
Amgen, Inc.		(470	)		(48,979	)
Arena Pharmaceuticals, Inc.		(8,180	)		(67,403	)*
Isis Pharmaceuticals, Inc.		(3,990	)		(89,336	)*
Medivation, Inc.		(1,260	)		(66,414	)*
ThromboGenics NV		(1,725	)		(84,259	)*
					(394,232	)
Building Products (0.2%)
AO Smith Corp.		(1,750	)		(132,002	)
Capital Markets (0.4%)
Greenhill & Co., Inc.		(2,575	)		(118,939	)
Stifel Financial Corp.		(2,020	)		(65,085	)*
The Bank of New York Mellon Corp.		(2,450	)		(69,139	)
					(253,163	)

	Number of Shares			Value†
Chemicals (1.0%)
Air Products & Chemicals, Inc.		(1,425	)	$	(123,918	)
Albemarle Corp.		(1,850	)		(113,312	)
Cabot Corp.		(1,900	)		(71,364	)
Koppers Holdings, Inc.		(1,650	)		(72,451	)
Kraton Performance Polymers, Inc.		(1,850	)		(42,014	)*
The Sherwin- Williams Co.		(1,200	)		(219,732	)
					(642,791	)
Commercial Banks (0.2%)
East West Bancorp, Inc.		(4,375	)		(106,444	)
Commercial Services & Supplies (0.3%)
Healthcare Services Group, Inc.		(3,720	)		(82,919	)
Rollins, Inc.		(3,540	)		(86,093	)
Team, Inc.		(1,200	)		(46,512	)*
					(215,524	)
Diversified Consumer Services (0.1%)
H&R Block, Inc.		(3,046	)		(84,496	)
Diversified Financial Services (0.8%)
IntercontinentalExchange, Inc.		(2,925	)		(476,570	)*
Diversified Telecommunication Services (0.3%)
Verizon Communications, Inc.		(3,067	)		(165,342	)
Electrical Equipment (0.3%)
Emerson Electric Co.		(1,625	)		(90,204	)
Rockwell Automation, Inc.		(875	)		(74,182	)
Sensata Technologies Holding NV		(1,325	)		(44,321	)*
					(208,707	)
Electronic Equipment, Instruments & Components (0.3%)
Dolby Laboratories, Inc. Class A		(2,075	)		(68,164	)
FARO Technologies, Inc.		(1,240	)		(48,099	)*
Rogers Corp.		(2,100	)		(89,544	)*
					(205,807	)
Energy Equipment & Services (0.2%)
Newpark Resources, Inc.		(9,840	)		(103,320	)*

	Number of Shares			Value†
Food & Staples Retailing (0.3%)
The Fresh Market, Inc.		(1,020	)	$	(41,749	)*
Wal-Mart Stores, Inc.		(1,750	)		(136,010	)
					(177,759	)
Food Products (0.6%)
Annie's, Inc.		(1,320	)		(49,883	)*
Campbell Soup Co.		(1,150	)		(53,372	)
Hormel Foods Corp.		(1,820	)		(75,111	)
WhiteWave Foods Co. Class A		(10,907	)		(184,437	)*
					(362,803	)
Health Care Equipment & Supplies (1.4%)
Alere, Inc.		(1,690	)		(43,399	)*
Boston Scientific Corp.		(11,840	)		(88,682	)*
CR Bard, Inc.		(1,120	)		(111,283	)
DENTSPLY International, Inc.		(4,945	)		(209,421	)
IDEXX Laboratories, Inc.		(1,790	)		(157,449	)*
Medtronic, Inc.		(1,550	)		(72,354	)
Neogen Corp.		(1,380	)		(70,145	)*
St. Jude Medical, Inc.		(2,120	)		(87,386	)
Stryker Corp.		(1,110	)		(72,794	)
					(912,913	)
Health Care Providers & Services (0.9%)
Aetna, Inc.		(1,368	)		(78,578	)
Chemed Corp.		(520	)		(42,442	)
Fresenius Medical Care AG & Co. ADR		(2,410	)		(82,567	)
Henry Schein, Inc.		(340	)		(30,736	)*
Kindred Healthcare, Inc.		(3,240	)		(33,988	)*
LifePoint Hospitals, Inc.		(1,610	)		(77,280	)*
Owens & Minor, Inc.		(2,160	)		(70,351	)
Select Medical Holdings Corp.		(4,420	)		(36,465	)
UnitedHealth Group, Inc.		(1,470	)		(88,097	)
					(540,504	)
Health Care Technology (0.2%)
Greenway Medical Technologies		(2,940	)		(39,602	)*
HMS Holdings Corp.		(1,890	)		(47,647	)*

	Number of Shares			Value†
Vocera Communications, Inc.		(2,150	)	$	(42,570	)*
					(129,819	)
Household Durables (0.3%)
Lennar Corp. Class A		(4,816	)		(198,515	)
Household Products (0.3%)
Church & Dwight Co., Inc.		(2,525	)		(161,322	)
Industrial Conglomerates (0.1%)
3M Co.		(425	)		(44,502	)
Insurance (0.5%)
ACE Ltd.		(83	)		(7,399	)
Assurant, Inc.		(2,545	)		(120,989	)
Lincoln National Corp.		(233	)		(7,924	)
MetLife, Inc.		(320	)		(12,477	)
Principal Financial Group, Inc.		(4,323	)		(156,060	)
Prudential Financial, Inc.		(122	)		(7,371	)
The Allstate Corp.		(153	)		(7,537	)
The Chubb Corp.		(84	)		(7,398	)
The Travelers Cos., Inc.		(87	)		(7,431	)
XL Group PLC		(244	)		(7,598	)
					(342,184	)
Internet & Catalog Retail (0.1%)
Nutrisystem, Inc.		(8,250	)		(66,825	)
Internet Software & Services (0.1%)
OpenTable, Inc.		(720	)		(39,881	)*
IT Services (0.2%)
Booz Allen Hamilton Holding Corp.		(3,460	)		(52,557	)
CACI International, Inc. Class A		(840	)		(49,132	)*
ManTech International Corp. Class A		(1,790	)		(47,775	)
					(149,464	)
Machinery (0.8%)
Atlas Copco AB Class A		(2,100	)		(55,278	)
CNH Global NV		(2,625	)		(107,966	)
Donaldson Co., Inc.		(1,740	)		(63,301	)
Illinois Tool Works, Inc.		(1,300	)		(83,928	)
Ingersoll- Rand PLC		(1,200	)		(64,560	)
Tennant Co.		(1,440	)		(68,861	)
Xylem, Inc.		(1,600	)		(44,400	)
					(488,294	)

	Number of Shares			Value†
Media (1.7%)
Comcast Corp. Class A		(6,813	)	$	(281,377	)
Liberty Global, Inc. Class A		(6,801	)		(492,189	)*
Liberty Global, Inc. Series C		(2,631	)		(177,987	)*
Sirius XM Radio, Inc.		(33,261	)		(108,098	)
					(1,059,651	)
Metals & Mining (0.8%)
Freeport- McMoRan Copper & Gold, Inc.		(9,607	)		(292,341	)
Globe Specialty Metals, Inc.		(6,625	)		(86,522	)
Materion Corp.		(2,300	)		(60,927	)
Schnitzer Steel Industries, Inc. Class A		(1,500	)		(36,795	)
					(476,585	)
Office Electronics (0.1%)
Zebra Technologies Corp. Class A		(1,525	)		(71,141	)*
Oil, Gas & Consumable Fuels (0.6%)
HollyFrontier Corp.		(341	)		(16,862	)
LinnCo LLC		(4,568	)		(195,191	)
Marathon Petroleum Corp.		(216	)		(16,926	)
McMoRan Exploration Co.		(6,703	)		(110,935	)*
Phillips 66		(289	)		(17,615	)
Valero Energy Corp.		(460	)		(17,061	)*
Western Refining, Inc.		(564	)		(17,433	)
					(392,023	)
Pharmaceuticals (1.3%)
Eisai Co. Ltd.		(3,370	)		(153,661	)
Eli Lilly & Co.		(1,680	)		(93,038	)
Forest Laboratories, Inc.		(2,600	)		(97,266	)*
Hospira, Inc.		(1,120	)		(37,095	)*
Johnson & Johnson		(1,470	)		(125,288	)
Novartis AG ADR		(1,660	)		(122,442	)
Pacira Pharmaceuticals, Inc.		(3,275	)		(94,549	)*
Perrigo Co.		(810	)		(96,722	)
					(820,061	)
Professional Services (0.1%)
IHS, Inc. Class A		(700	)		(68,201	)*

	Number of Shares			Value†
Real Estate Investment Trusts (0.2%)
AvalonBay Communities, Inc.		(204	)	$	(27,140	)
Equity Residential		(464	)		(26,940	)
Essex Property Trust, Inc.		(350	)		(54,967	)
					(109,047	)
Software (0.4%)
CA, Inc.		(2,340	)		(63,110	)
FactSet Research Systems, Inc.		(930	)		(87,485	)
MicroStrategy, Inc. Class A		(520	)		(46,899	)*
Netscout Systems, Inc.		(2,790	)		(63,640	)*
					(261,134	)
Specialty Retail (0.3%)
DSW, Inc. Class A		(990	)		(65,459	)
Five Below, Inc.		(1,800	)		(64,782	)*
Sally Beauty Holdings, Inc.		(2,300	)		(69,138	)*
					(199,379	)
Textiles, Apparel & Luxury Goods (0.4%)
Columbia Sportswear Co.		(1,260	)		(73,836	)
Fossil, Inc.		(500	)		(49,060	)*
Hugo Boss AG		(810	)		(94,256	)
Movado Group, Inc.		(1,300	)		(39,312	)
					(256,464	)
Trading Companies & Distributors (0.1%)
Kaman Corp.		(1,240	)		(41,900	)
Total Common Stocks Sold Short (Proceeds $(10,043,976))					(10,521,850	)
Exchange Traded Funds Sold Short (4.6%)^ØØ£
CurrencyShares Euro Trust		(2,210	)		(288,471	)*
Energy Select Sector SPDR Fund		(3,348	)		(262,048	)
Financial Select Sector SPDR Fund		(397	)		(7,424	)
Health Care Select Sector SPDR Fund		(10,900	)		(515,897	)
iShares Dow Jones U.S. Real Estate Index Fund		(1,495	)		(109,823	)
iShares Nasdaq Biotechnology Index Fund		(1,910	)		(329,017	)
Market Vectors Biotech ETF		(3,260	)		(227,581	)
Market Vectors Oil Service ETF		(8,895	)		(380,439	)

† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Absolute Return Multi-Manager Fund (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.

ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

• Level 1 – quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)

• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.

The value of the Fund's investments (long and short positions) in equity securities, exchange traded funds, purchased option contracts, written option contracts, rights and warrants, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted on a principal exchange or market for that security (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by a Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.

The value of the Fund's investments in debt securities (long and short positions) is determined by Management primarily by obtaining valuations from independent pricing services based on readily available bid quotations, or if quotations are not available, by methods which include various considerations based on security type (generally Level 2 inputs). In addition to the consideration of yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions, the following is a description of other Level 2 inputs and related valuation techniques used by an independent pricing service to value certain types of debt securities of the Fund:

U.S. Treasury Securities. Inputs used to value U.S. Treasury securities generally include quotes from several inter-dealer brokers and Other Market Information.

Corporate Debt Securities. Inputs used to value corporate debt securities generally include relative credit information, observed market movements, sector news, spread to the U.S. Treasury market, and other market information which may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data, such as market research publications, when available.

Bank Loans. The value of bank loan securities is determined by Management primarily by obtaining valuations from independent pricing services based on broker quotes (generally Level 2 or Level 3 inputs depending on the number of quotes available).

The value of financial futures contracts is determined by obtaining valuations from independent pricing services at the settlement price at the market close (Level 1 inputs).

The value of equity swaps is determined by obtaining valuations from an independent pricing service using the underlying security and stated LIBOR ("London Interbank Offered Rate") rate or Federal Funds floating rate (Level 2 inputs).

Management has developed a process to periodically review information provided by independent pricing services for all types of securities.

Investments in investment companies are valued using the respective fund's daily calculated net asset value per share (Level 2 inputs).

If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Alternative Funds' Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding.

The value of the Fund's investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time. The Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities or on days when foreign markets are closed and U.S. markets are open. In each of these events, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade.

Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.

The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of April 30, 2013:

Asset Valuation Inputs
	Level 1		Level 2		Level 3		Total
Investments:
Common Stocks
Food Products	$	2,270,600	$	81,332	$	—	$	2,351,932
Media		3,376,509		1,650		—		3,378,159
Other Common Stocks		30,356,546		—		—		30,356,546

Total Common Stocks	$	36,003,655	$	82,982	$	—	$	36,086,637
Exchange Traded Funds		382,950		—		—		382,950
Investment Companies		—		2,102,249		—		2,102,249
Rights^		22,175		—		—		22,175
Warrants^		9,165		106,426		—		115,591
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government		—		31,075		—		31,075
Corporate Debt Securities^		—		1,816,400		—		1,816,400
Bank Loan Obligations
Aerospace & Defense		—		—		250,937		250,937
Commercial Services & Supplies		—		252,970		37,648		290,618
Communications Equipment		—		231,714		—		231,714
Diversified Consumer Services		—		166,031		—		166,031
Diversified Financial Services		—		247,762		615,000		862,762
Diversified Telecommunication Services		—		327,819		—		327,819
Energy Equipment & Services		—		77,927		—		77,927
Food & Staples Retailing		—		267,668		—		267,668
Food Products		—		251,562		—		251,562
Health Care Providers & Services		—		501,665		187,360		689,025
Health Care Technology		—		—		511,250		511,250
IT Services		—		559,490		—		559,490
Leisure Equipment & Products		—		59,914		—		59,914
Media		—		698,441		—		698,441
Oil, Gas & Consumable Fuels		—		—		513,125		513,125
Paper & Forest Products		—		83,779		—		83,779
Software		—		305,609		—		305,609
Specialty Retail		—		346,209		—		346,209
Transportation Infrastructure		—		—		133,947		133,947
Wireless Telecommunication Services		—		154,133		—		154,133
Total Bank Loan Obligations		—		4,532,693		2,249,267		6,781,960
Purchased Options		101,719		300		—		102,019
Short-Term Investment		—		20,661,021		—		20,661,021
Total Investments		36,519,664		29,333,146		2,249,267		68,102,077

Liability Valuation Inputs
	Level 1		Level 2		Level 3		Total
Investments:
Total Common Stocks Sold Short	$	(10,521,850)	$	—	$	—	$	(10,521,850)
Exchange Traded Funds Sold Short		(2,929,105)		—		—		(2,929,105)
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government Sold Short		—		(124,840)		—		(124,840)
Corporate Debt Securities Sold Short^		—		(46,817)		—		(46,817)
Total Investments		(13,450,955)		(171,657)		—		(13,622,612)

^ The Schedule of Investments provides information on the industry categorization for the portfolio.

§ The following is a reconciliation between the beginning and ending balances of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Beginning balance as of 11/01/12		Accrued discounts/ (premiums)		Realized gain/loss and change in unrealized appreciation/ (depreciation)		Purchases		Sales			Transfers in to Level 3		Transfers out of Level 3			Balance as of 04/30/13		Net change in unrealized appreciation/ (depreciation) from investments still held as of 04/30/13
Investments in Securities:
Bank Loan Obligations
Aerospace & Defense	$	—	$	—	$	3,437	$	247,500	$	—		$	—	$	—		$	250,937	$	3,437
Commercial Services & Supplies		—		—		1,018		36,630		—			—		—			37,648		1,018
Diversified Financial Services		—		415		23,585		591,000		—			—		—			615,000		23,585
Health Care Providers & Services		—		635		8,424		—		(61,699	)		240,000		—			187,360		4,728
Health Care Technology		—		580		14,630		—		—			496,040		—			511,250		14,630
Insurance		600,000		7		2,243		—		(602,250	)		—		—			—		—
Machinery		101,000		—		—		—		—			—		(101,000	)		—		—
Oil, Gas & Consumable Fuels		—		129		17,996		495,000		—			—		—			513,125		17,996
Transportation Infrastructure		—		—		5,567		128,380		—			—		—			133,947		5,567
Total	$	701,000	$	1,766	$	76,900	$	1,498,510	$	(663,949	)	$	736,040	$	(101,000	)	$	2,249,267	$	70,961

The Fund had no transfers between Levels 1 and 2 during the six months ended April 30, 2013. As of April 30, 2013, two securities in the fund transferred from Level 2 to Level 3 as a result of a decrease in the number of observable quotations that were readily available to the independent pricing service.

The following is a summary, categorized by Level, of inputs used to value the Fund's derivatives as of April 30, 2013

	Level 1			Level 2			Level 3		Total
Futures	$	(15,207	)	$	—		$	—	$	(15,207	)
Options written		(47,477	)		(190	)		—		(47,667	)
Equity swaps		—			(8,834	)		—		(8,834	)
Total	$	(62,684	)	$	(9,024	)	$	—	$	(71,708	)

## At April 30, 2013, selected fund information on a U.S. federal income tax basis was as follows:

				Cost				Gross Unrealized Appreciation				Gross Unrealized Depreciation				Net Unrealized Appreciation (Depreciation)
Absolute Return Multi-Manager				$	66,133,741			$	2,470,095			$	501,759			$	1,968,336

* Security did not produce income during the last twelve months.

± At April 30, 2013, the Fund had outstanding call and put options written as follows:

Name of Issuer	Contracts		Exercise Price		Expiration Date	Market Value of Options
American International Group, Inc., Call		20	$	40	August 2013	$	(6,400	)
American International Group, Inc., Put		20		40	August 2013		(3,440	)
BMC Software, Inc., Call		17		52.5	May 2013		—
Covidien PLC, Put		36		50	January 2014		(3,060	)
iShares Russell 2000 Index Fund, Put		66		75	August 2013		(2,442	)
Lamar Advertising Co., Call		19		49	May 2013		(1,615	)
Lamar Advertising Co., Call		31		48	May 2013		(3,875	)
Life Technologies Corp., Put		38		55	May 2013		(190	)
Nuance Communications, Inc., Call		61		25	October 2013		(2,745	)
SPDR S&P 500 ETF Trust, Put		10		150	May 2013		(160	)
Sprint Nextel Corp., Call		164		8	August 2013		(1,640	)
Wright Medical Group, Inc., Call		85		7	June 2013		(22,100	)
Total						$	(47,667	)

£ At April 30, 2013, the Fund had pledged securities in the amount of $1,794,380 to cover collateral requirements for borrowing in connection with securities sold short and option contracts written.

ñ Securities were purchased under Rule 144A of the Securities Act of 1933 or are private placements and, unless registered under the Act or exempted from registration, may only be sold to qualified institutional investors. These securities have been deemed by the investment manager to be liquid. At April 30, 2013, these securities amounted to approximately $344,542 or 0.55% of net assets for the Fund.

Ø All or a portion of this security or cash is segregated in connection with obligations for securities sold short and/or delayed delivery purchase commitments and/or call and put options written and/or futures and/or equity swaps.

ØØ At April 30, 2013, the Fund had deposited $13,250,184 in one or more accounts to satisfy collateral requirements for borrowing in connection with securities sold short.

Neuberger Berman Alternative Funds
	ABSOLUTE RETURN MULTI-MANAGER FUND
	April 30, 2013
Assets
Investments in securities, at value* (Note A)—see Schedule of Investments:
Unaffiliated issuers	$	68,102,077
Foreign currency*		296,695
Deposits with broker for short sales (Note A-10)		13,250,184
Deposit with broker for futures contracts (Note A-12)		28,000
Dividends and interest receivable		44,936
Foreign tax reclaims		1,184
Receivable for securities sold		2,569,715
Receivable for Fund shares sold		141,326
Receivable from administrator—net (Note B)		62,337
Prepaid expenses and other assets		48,373
Total Assets		84,544,827
Liabilities
Investments sold short, at value (Note A) (proceeds $12,973,618)		13,622,612
Written Options, at value (Note A) (proceeds $55,387)		47,667
Due to Custodian		169,448
Dividends and interest payable for short sales		11,648
Payable to investment manager—net (Note B)		83,787
Payable for securities purchased		7,698,771
Payable for variation margin (Note A-12)		7,490
Payable for Fund shares redeemed		44,676
Equity swaps, at value (Note A-12)		8,834
Accrued expenses and other payables		142,641
Total Liabilities		21,837,574
Net Assets	$	62,707,253
Net Assets consist of:
Paid-in capital	$	60,837,812
Undistributed net investment income (loss)		(271,906)
Accumulated net realized gains (losses) on investments		837,656
Net unrealized appreciation (depreciation) in value of investments		1,303,691
Net Assets	$	62,707,253

Neuberger Berman Alternative Funds (cont'd)
	ABSOLUTE RETURN MULTI-MANAGER FUND
	April 30, 2013
Net Assets
Institutional Class	$	51,077,257
Class A		10,611,134
Class C		1,018,862
Shares Outstanding ($.001 par value; unlimited shares authorized)
Institutional Class		4,891,840
Class A		1,017,929
Class C		98,437
Net Asset Value, offering and redemption price per share
Institutional Class	$	10.44
Net Asset Value and redemption price per share
Class A	$	10.42
Offering Price per share
Class A‡	$	11.06
Net Asset Value and offering price per share
Class C^	$	10.35
*Cost of Investments:
Unaffiliated issuers	$	66,133,741
Total cost of foreign currency	$	295,966

‡ On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the Fund's prospectus, offering price is reduced.

^ Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

Neuberger Berman Alternative Funds
	ABSOLUTE RETURN MULTI-MANAGER FUND
	For the Six Months Ended April 30, 2013
Investment Income:
Income (Note A):
Dividend income—unaffiliated issuers	$	339,265
Interest income—unaffiliated issuers		154,226
Foreign taxes withheld		(3,201)
Total income	$	490,290
Expenses:
Investment management fees (Note B)		422,548
Administration fees (Note B)		13,541
Administration fees (Note B):
Institutional Class		17,311
Class A		5,995
Class C		674
Distribution fees (Note B):
Class A		7,494
Class C		3,368
Shareholder servicing agent fees:
Institutional Class		2,534
Class A		303
Class C		66
Audit fees		24,832
Custodian fees (Note A)		92,527
Legal fees		132,344
Registration and filing fees		39,541
Shareholder reports		7,439
Trustees' fees and expenses		20,186
Short sales expense (Note A-10)		98,122
Miscellaneous		7,452
Total expenses		896,277
Expenses reimbursed by Management (Note B)		(322,488)
Expenses reduced by custodian fee expense offset arrangement (Note A)		(6,242)
Total net expenses		567,547
Net investment income (loss)	$	(77,257)
Realized and Unrealized Gain (Loss) on Investments (Note A):
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		1,729,108
Sales of investment securities of unaffiliated issuers sold short		(675,546)
Foreign currency		(4,067)
Financial futures contracts		(55,708)
Options written		49,202
Equity swaps		8,549
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		1,877,686
Unaffiliated investment securities sold short		(694,213)
Foreign currency		(880)
Financial futures contracts		(18,002)
Options written		(1,495)
Equity swaps		(8,709)
Net gain (loss) on investments		2,205,925
Net increase (decrease) in net assets resulting from operations	$	2,128,668

Neuberger Berman Alternative Funds
	ABSOLUTE RETURN MULTI-MANAGER FUND
	Six Months Ended April 30, 2013 (Unaudited)			Period from May 15, 2012 (Commencement of Operations) to October 31, 2012
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	(77,257)		$	(193,650)
Net realized gain (loss) on investments		1,051,538			(22,204)
Change in net unrealized appreciation (depreciation) of investments		1,154,387			149,304
Net increase (decrease) in net assets resulting from operations		2,128,668			(66,550)
Distributions to Shareholders From (Note A):
Net investment income:
Institutional Class		(58,599)			—
Net realized gain on investments:
Institutional Class		(119,803)			—
Class A		(12,381)			—
Class C		(2,073)			—
Total distributions to shareholders		(192,856	)		—
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Institutional Class		20,752,818			33,591,736
Class A		9,042,759			1,760,497
Class C		788,366			230,214
Proceeds from reinvestment of dividends and distributions:
Institutional Class		172,922			—
Class A		9,064			—
Class C		1,988			—
Payments for shares redeemed:
Institutional Class		(4,729,569)			(305,020)
Class A		(449,706)			(804)
Class C		(27,274	)		—
Net increase (decrease) from Fund share transactions		25,561,368			35,276,623
Net Increase (Decrease) in Net Assets		27,497,180			35,210,073
Net Assets:
Beginning of period		35,210,073			—
End of period	$	62,707,253		$	35,210,073
Undistributed net investment income (loss) at end of period		(271,906)			(136,050)

Note A—Summary of Significant Accounting Policies:

1 General: Neuberger Berman Alternative Funds (the "Trust") is a Delaware statutory trust organized pursuant to an Amended and Restated Trust Instrument dated October 14, 2010. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended (the "1933 Act"). Absolute Return Multi-Manager Fund (the "Fund") had no operations until May 15, 2012, other than matters relating to its organization and registration of shares under the 1933 Act. The Fund is a separate operating series of the Trust and is non-diversified. The Fund offers Institutional Class shares, Class A shares and Class C shares. The Board may establish additional series or classes of shares without the approval of shareholders.

The assets of the Fund belong only to the Fund, and the liabilities of the Fund are borne solely by the Fund and no other.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.

2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Fund's Schedule of Investments.

3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time, to determine the value of investments, other assets and liabilities. Purchase and sale prices of securities, and income and expenses, are translated into U.S. dollars at the prevailing rate of exchange on the respective dates of such transactions. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statement of Operations.

4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Dividend income is recorded on the ex-dividend date or, for certain foreign dividends, as soon as the Fund becomes aware of the dividends. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including accretion of discount (adjusted for original issue discount, where applicable) and amortization of premium, where applicable, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations.

5 Income tax information: The Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of the Fund to continue to qualify for treatment as a regulated investment company by complying with the requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent the Fund distributes substantially all of its net investment income and net realized capital gains to shareholders, no federal income or excise tax provision is required.

The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. As of April 30, 2013, the Fund did not have any unrecognized tax positions.

various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund.

As determined on October 31, 2012, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences may be attributed to one or more of the following: netting of net ordinary losses with short-term capital gains, non-deductible stock issuance costs, the tax treatment of foreign currency gains and losses, payments in lieu of dividends on short sales and gains from passive foreign investment companies. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund.

As of October 31, 2012, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:

Undistributed Ordinary Income				Undistributed Long-Term Gain				Unrealized Appreciation (Depreciation)				Loss Carryforwards and Deferrals				Total
$	131,611			$	2,402			$	(47,468	)		$	—			$	86,545

The difference between book basis and tax basis distributable earnings is attributable primarily to wash sale loss deferrals, amortization of organizational costs, unsettled wash sale loss deferrals, straddle loss deferrals, mark-to-market adjustments on passive foreign investment companies, constructive sales gains and delayed settlement compensation on bank loans.

To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carryforwards, if any, it is the policy of the Fund not to distribute such gains.

6 Foreign taxes: Foreign taxes withheld represent amounts withheld, if any, by foreign tax authorities, net of refunds recoverable.

7 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in December) and are recorded on the ex-date.

8 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., a Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the investment companies in the complex or series thereof can otherwise be made fairly. The Fund's expenses (other than those specific to each class) are allocated proportionally each day among the classes based upon the relative net assets of each class.

9 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.

10 Securities sold short: The Fund may engage in short sales, which are sales of securities which have been borrowed from a third party on the expectation that the market price will decline. If the price of the securities decreases, the Fund will make a profit by purchasing the securities in the open market at a price lower than the one at which it sold the securities. If the price of the securities increases, the Fund may have to cover its short positions at a price higher than the short sale price, resulting in a loss. Gains are limited to the price at which the Fund sold the security short, while losses are potentially unlimited in size. The Fund pledges securities and/or other assets, to the lender as collateral. Proceeds received from short sales may be maintained by the lender as collateral. Proceeds maintained by the lender are included in the "Deposit with brokers for short sales" on the Statement of Assets and Liabilities. The Fund is required to segregate an amount of cash, cash equivalents or other appropriate liquid marketable securities with the custodian in at least an amount equal to the current market value of the securities sold short (less any additional collateral held by the lender). The Fund is contractually responsible to the lender for any dividends payable and interest accrued on securities while those securities are in a short position. These dividends and interest are recorded as an expense of the Fund. As of April 30, 2013, the Fund had pledged cash in the amount of $13,250,184 to JP Morgan Chase Bank, N.A. ("JPM"), as collateral for short sales. At April 30, 2013, the Fund had pledged securities in the amount of $1,794,380 to cover collateral requirements for borrowing in connection with securities sold short.

11 Investment company securities and exchange-traded funds: The Fund may invest in shares of other registered investment companies, including exchange-traded funds ("ETFs"), within the limitations prescribed by the 1940 Act. Some ETFs seek to track the performance of a particular market index. These indices include both broad-based market indices and more narrowly-based indices, including those relating to particular sectors, markets, regions or industries. However, some ETFs have actively-managed investment objectives. ETF shares are traded like traditional equity securities on a national securities exchange or NASDAQ. The Fund will indirectly bear its proportionate share of any management fees and other expenses paid by such other investment companies, which will decrease returns.

12 Derivative instruments: During the six months ended April 30, 2013, the Fund's use of derivatives, as described below, was limited to equity swaps, financial futures contracts, written option transactions and purchased option transactions. The Fund has adopted the provisions of ASC 815 "Derivatives and Hedging" ("ASC 815"). The disclosure requirements of ASC 815 distinguish between derivatives that qualify for hedge accounting and those that do not. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of Operations, they do not qualify for hedge accounting. Accordingly, even though the Fund's investments in derivatives may represent economic hedges, they are considered non-hedge transactions for purposes of this disclosure.

Equity swaps: The Fund used equity swaps to provide investment exposure to certain foreign investments. Equity swaps are two-party contracts that generally obligate one party to pay the positive return and the other party to pay the negative return on a specified reference security, basket of securities, security index or index component during the period of the swap. Equity swap contracts are marked to market daily based on the value of the underlying reference entity and the change, if any, is recorded as an unrealized gain or loss. Equity swaps normally do not involve the delivery of securities or other underlying assets. If the other party to an equity swap defaults, a Fund's risk of loss consists of the net amount of payments that such Fund is contractually entitled to receive, if any. Equity swaps are derivatives and their value can be very volatile. To the extent that the Adviser or Sub-Adviser, as applicable, do not accurately analyze and predict future market trends, the values of assets or economic factors, a Fund may suffer a loss, which may exceed the related amounts shown in the Statement of Assets and Liabilities. Periodic payments received or paid by the Fund is recorded as realized gains or losses.

At April 30, 2013, the outstanding equity swaps* for the Fund were as follows:

Counterparty				Description				Value
JPMorgan Chase Bank, N.A.				The Fund receives or pays the total return on a portfolio of long and short positions and pays or receives a specified LIBOR or Federal Funds floating rate, which is denominated in various foreign currencies based on the local currencies of the positions within the portfolio.				$	(8,834)

* The following table represents the individual positions and related values within the equity swaps as of April 30, 2013.

Reference Entity	Shares		Notional^(a)Value		Net Unrealized Appreciation (Depreciation)
Long Positions
Hong Kong
Guoco Group Limited		15,059		185,805	$	(6,013	)
Netherlands
DE Master Blenders 1753 NV		22,812		364,405		(2,696	)
Total Long Positions of Portfolio Swap						(8,709	)
Net Cash and Other Receivables^(b)						(125	)
Swap, at Value					$	(8,834)

(a) Notional value represents the market value (including any fees or commissions) of the long positions when they are established.

(b) Cash and other receivables includes the gains (or losses) realized within the swap when the swap resets. Gains (or losses) will be realized on the swap, and reflected on the Statement of Operations, when cash is settled with the counterparty.

Financial futures contracts: During the six months ended April 30, 2013, the Fund entered into financial futures contracts in an effort to enhance returns and to manage or adjust the risk profile and the investment exposure of the Fund to certain asset classes, countries and regions. The Fund also utilized financial futures contracts to provide investment exposure to certain indices other than the benchmarks.

At the time the Fund enters into a financial futures contract, it is required to deposit with the futures commission merchant a specified amount of cash or liquid securities, known as "initial margin," which is a percentage of the value of the financial futures contract being traded that is set by the exchange upon which the futures contract is traded. Each day, the futures contract is valued at the official settlement price of the board of trade or U.S. commodity exchange on which such futures contract is traded. Subsequent payments, known as "variation margin," to and from the broker are made on a daily basis as the market price of the financial futures contract fluctuates. Daily variation margin adjustments, arising from this "mark to market," are recorded by the Fund as unrealized gains or losses.

Although some financial futures contracts by their terms call for actual delivery or acquisition of the underlying securities or currency, in most cases the contracts are closed out prior to delivery by offsetting purchases or sales of matching financial futures contracts. When the contracts are closed, the Fund recognizes a gain or loss. Risks of entering into futures contracts include the possibility there may be an illiquid market, possibly at a time of rapidly declining prices, and/or a change in the value of the contract may not correlate with changes in the value of the underlying securities. Futures executed on regulated futures exchanges have minimal counterparty risk to a fund because the exchange's clearinghouse assumes the position of the counterparty in each transaction. Thus, the Fund is exposed to risk only in connection with the clearinghouse and not in connection with the original counterparty to the transaction.

For U.S. federal income tax purposes, the futures transactions undertaken by the Fund may cause the Fund to recognize gains or losses from marking contracts to market even though its positions have not been sold or terminated, may affect the character of the gains or losses recognized as long-term or short-term, and may affect the timing of some capital gains and losses realized by the Fund. Also, the Fund's losses on transactions involving futures contracts may be deferred rather than being taken into account currently in calculating the Fund's taxable income.

At April 30, 2013, open positions in financial futures contracts were:

Expiration

Open Contracts

Position

Unrealized
Appreciation
(Depreciation)

June 2013

7 S&P Mid 400 EMini Index

Short

(15,207)

During the six months ended April 30, 2013, the average notional value of financial futures contracts was $479,382 for short positions.

The notional value of futures contracts at April 30, 2013 was $(810,390) for short positions.

At April 30, 2013, the Fund had deposited $20,510 in a segregated account to cover margin requirements on open futures contracts.

Options: Premiums received by the Fund upon writing a covered call option or a put option are recorded in the liability section of the Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the liability is eliminated.

When writing a covered call option, the Fund, in return for the premium, gives up the opportunity for profit from a price increase in the underlying security above the exercise price, but conversely retains the risk of loss should the price of the security decline. When writing a put option, the Fund, in return for the premium, takes the risk that it must purchase the underlying security at a price that may be higher than the current market price of the security. If a put option that the Fund has written expires unexercised, the Fund will realize a gain in the amount of the premium. All securities covering outstanding options are held in escrow by the custodian bank.

Written option transactions were used in an attempt to generate incremental returns for the Fund for the six months ended April 30, 2013. Written option transactions for the Fund for the six months ended April 30, 2013 were:

	Number of Contracts			Premiums
Outstanding at October 31, 2012		254		$	31,242
Options written		1,366			145,714
Options terminated in closing purchase transactions		(604	)		(74,440	)
Options exercised		(62	)		(18,247	)
Options expired		(387	)		(28,882	)
Outstanding at April 30, 2013		567		$	55,387

Premiums paid by the Fund upon purchasing a covered call option are recorded in the asset section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the asset is eliminated.

For purchased call options, the Fund's loss is limited to the amount of the option premium paid.

Purchased option transactions were used in an attempt to manage or adjust the risk profile and the investment exposure of the Fund to certain securities for the Fund and enhance returns for the six months ended April 30, 2013. Purchased option transactions for the Fund for the six months ended April 30, 2013 were:

	Number of Contracts			Premiums
Outstanding at October 31, 2012		794		$	116,525
Options purchased		3,017			385,672
Options terminated in closing sale transactions		(773	)		(139,885	)
Options exercised		(225	)		(45,219	)
Options expired		(1,767	)		(170,942	)
Outstanding at April 30, 2013		1,046		$	146,151

For the six months ended April 30, 2013, the Fund had an average market value of $100,779 and $38,184 in purchased options and written options, respectively.

At April 30, 2013, the Fund had the following derivatives (which did not qualify as hedging instruments under ASC 815), grouped by primary risk exposure:

Asset Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Equity Risk		Total
Purchased options	Investments in securities, at value	$	102,019	$	102,019
Total Value—Assets		$	102,019	$	102,019
Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Equity Risk		Total
Equity swaps	Equity swaps, at value	$	(8,834)	$	(8,834	)
Futures contracts	Receivable/Payable for variation margin⁽¹⁾		(15,207)		(15,207)
Option contracts written	Written options, at value		(47,667)		(47,667)
Total Value—Liabilities		$	(71,708)	$	(71,708)

(1) "Futures contracts" reflects the cumulative appreciation (depreciation) of futures contracts as of April 30, 2013, which is reflected in the Statement of Assets and Liabilities under the caption "Net unrealized appreciation (depreciation) in value of investments." The outstanding variation margin as of April 30, 2013, if any, is reflected in the Statement of Assets and Liabilities under the caption "Receivable/Payable for variation margin."

The impact of the use of these derivative instruments on the Statement of Operations during the six months ended April 30, 2013, was as follows:

Realized Gain (Loss)
Derivative Type	Statement of Operations Location	Equity Risk		Total
Equity swaps	Net realized gain (loss) on: equity swaps	$	8,549	$	8,549
Futures contracts	Net realized gain (loss) on: financial futures contracts		(55,708)		(55,708)
Option contracts written	Net realized gain (loss) on: options written		49,202		49,202
Option contracts purchased	Net realized gain (loss) on: sales of investment securities of unaffiliated issuers		(175,212)		(175,212)
Total Realized Gain (Loss)		$	(173,169)	$	(173,169)
Change in Appreciation (Depreciation)
Derivative Type	Statement of Operations Location	Equity Risk		Total
Equity swaps	Change in net unrealized appreciation (depreciation) in value of: equity swaps	$	(8,709)	$	(8,709)
Futures contracts	Change in net unrealized appreciation (depreciation) in value of: financial futures contracts		(18,002)		(18,002)
Option contracts written	Change in net unrealized appreciation (depreciation) in value of: options written		(1,495)		(1,495)
Option contracts purchased	Change in net unrealized appreciation (depreciation) in value of: unaffiliated investment securities		(40,754)		(40,754)
Total Change in Appreciation (Depreciation)		$	(68,960)	$	(68,960)

13 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.

14 Expense offset arrangement: The Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended April 30, 2013, the impact of this arrangement was a reduction of expenses of $6,242.

15 Other: All net investment income and realized and unrealized capital gains and losses of the Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.

Note B—Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:

The Fund retains Management as its investment manager under a Management Agreement. For such investment management services, the Fund pays Management a fee at the annual rate of 1.700% of the first $250 million of the Fund's average daily net assets, 1.675% of the next $250 million, 1.650% of the next $250 million, 1.625% of the next $250 million, 1.600% of the next $500 million, 1.575% of the next $2.5 billion, and 1.550% of average daily net assets in excess of $4 billion. Prior to February 28, 2013, the Fund paid Management a fee at the annual rate of 2.000% of the first $250 million of the Fund's average daily net assets, 1.975% of the next $250 million, 1.950% of the next $250 million, 1.925% of the next $250 million, 1.900% of the next $500 million, 1.875% of the next $2.5 billion, and 1.850% of average daily net assets in excess of $4 billion. Accordingly, for the six months ended April 30, 2013, the fee pursuant to the Management Agreement was equivalent to an annual effective rate of 1.870% of the Fund's average daily net assets.

The Fund retains Management as its administrator under an Administration Agreement. The Fund pays Management an administration fee at the annual rate of 0.06% of its average daily net assets under this agreement. In addition, the Fund's Institutional Class pays Management an administration fee at the annual rate of 0.09% of its average daily net assets under this agreement and the Fund's Class A and Class C pays Management an administration fee at the annual rate of 0.20% of its average daily net assets under this agreement. Additionally, Management retains JPM as its sub-administrator under a Sub-Administration Agreement. Management pays JPM a fee for all services received under the agreement.

Management has contractually agreed to waive current payment of fees and/or reimburse certain expenses of the Institutional Class, Class A and Class C of the Fund so that the total annual operating expenses of those classes do not exceed the expense limitations as detailed in the following table. These undertakings apply to the Fund's direct expenses and exclude interest, taxes, brokerage commissions, acquired fund fees and expenses, extraordinary expenses, and dividend and interest expense on short sales, if any; consequently, net expenses may exceed the contractual expense limitations. The Fund has agreed that each of its respective classes will repay Management for fees and expenses waived or reimbursed for that class provided that repayment does not cause that class' annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were forgone or reimbursed. Any such repayment must be made within three years after the year in which Management incurred the expense.

During the six months ended April 30, 2013, there was no reimbursement to Management under this agreement.

At April 30, 2013, contingent liabilities to Management under the contractual expense limitation were as follows:

					Expenses Reimbursed in Fiscal Period Ending, October 31,
					2012		2013
	Contractual Expense				Subject to Repayment until October 31,
	Limitation(1)(2)			Expiration	2015		2016
Institutional Class		1.97	%	10/31/16	$	816,372	$	248,570
Class A		2.33	%	10/31/16		24,960		36,893
Class C		3.08	%	10/31/16		4,503		4,228

(1) Expense limitation per annum of the respective class' average daily net assets.

(2) Prior to February 28, 2013, the contractual expense limitations were 2.45%, 2.81% and 3.56% for the Institutional Class, Class A and Class C shares, respectively. In addition, from January 2, 2013 to February 28, 2013, Management had voluntarily undertaken to waive current payment of fees and/or reimburse certain expenses of

Institutional Class, Class A and Class C shares so that their Operating Expenses were limited to 1.97%, 2.33% and 3.08%, respectively, per annum of their average daily net assets. For the six months ended April 30, 2013, voluntary reimbursements for Institutional Class, Class A and Class C amounted to $27,734, $4,524 and $539, respectively. These amounts are not subject to recovery by Management.

NB Alternative Investment Management LLC ("NBAIM"), as the sub-adviser to the Fund, is retained by Management to provide day-to-day investment management services and receives a monthly fee paid by Management. As investment manager, Management is responsible for overseeing the investment activities of NBAIM. Several individuals who are officers and/or Trustees of the Trust are also employees of NBAIM and/or Management.

Management and NBAIM are indirect subsidiaries of Neuberger Berman Group LLC (("NBG") and together with its consolidated subsidiaries ("NB Group")). NBSH Acquisition, LLC ("NBSH" and together with NBG, the "NB Parties"), which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees, senior professionals, and certain of their permitted transferees, owns, as of March 14, 2013, approximately 72% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 28% of such common units. Pursuant to agreements among the NB Parties and the LBHI Parties, as well as the issuance of NBSH common equity to employees with respect to their previously made equity elections relating to 2013 compensation, it is expected that NBSH will own 81% of NBG's common units as of January 1, 2014. NBG has the opportunity to continue to redeem the remaining NBG Class A common units from the LBHI Parties through a process that is expected to end in 2016 (and if necessary, 2017).

Management and NBAIM engage The Boston Company Asset Management, LLC, Cramer Rosenthal McGlynn, LLC, GAMCO Asset Management, Inc., Levin Capital Strategies, L.P., MacKay Shields LLC, Sound Point Capital Management, L.P., Turner Investments, L.P., and Visium Asset Management, L.P. as subadvisers to provide investment management services. Management compensates the subadvisers out of the investment advisory fees it receives from the Fund. Exposure to MacKay Shields LLC ("MacKay Shields") is comprised of the Fund's investment in a mutual fund that is subadvised by Mackay Shields, which is unaffiliated with the Fund or Neuberger Berman. The Fund's portfolio managers currently intend to begin allocating assets to be managed directly by Mackay Shields when the Fund's assets are approximately $125 million. At that time, the portfolio managers expect to redeem the Fund's investment in the unaffiliated mutual fund subadvised by Mackay Shields.

The Fund also has a distribution agreement with Management with respect to each class of shares. Management acts as agent in arranging for the sale of class shares without sales commission or other compensation, except as described below for Class A and Class C shares, and bears advertising and promotion expenses.

However, Management receives fees from Class A and Class C under their distribution plans (each a "Plan", collectively, the "Plans") pursuant to Rule 12b-1 under the 1940 Act. The Plans provide that, as compensation for administrative and other services provided to these classes, Management's activities and expenses related to the sale and distribution of these classes, and ongoing services provided to investors in these classes, Management receives from each of these respective classes a fee at the annual rate of 0.25% of Class A's and 1.00% of Class C's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for these classes and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by each class during any year may be more or less than the cost of distribution and other services provided to that class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plans comply with those rules.

Class A shares of the Fund are generally sold with an initial sales charge of up to 5.75% and no contingent deferred sales charge ("CDSC"), except that a CDSC of 1.00% applies to certain redemptions made within 18 months following purchases of $1 million or more without an initial sales charge. Class C shares of the Fund are sold with no initial sales charge and a 1.00% CDSC if shares are sold within one year after purchase.

For the six months ended April 30, 2013, Management, acting as underwriter and broker-dealer, received net initial sales charges from the purchase of Class A shares and CDSCs from the redemption of Class A and Class C shares as follows:

	Underwriter				Broker-Dealer
	Net Initial Sales Charges		CDSC		Net Initial Sales Charges		CDSC
Class A	$	5,230	$	—	$	—	$	—
Class C		—		90		—		—

Note C—Securities Transactions:

During the six months ended April 30, 2013, there were purchase and sale transactions of long-term securities (excluding equity swaps, financial futures contracts and option contracts) as follows:

Purchases				Securities Sold Short				Sales				Covers on Securities Sold Short
$	79,147,016			$	23,873,915			$	58,037,991			$	18,849,968

During the six months ended April 30, 2013, no brokerage commissions on securities transactions were paid to affiliated brokers.

Note D—Fund Share Transactions:

Share activity for the six months ended April 30, 2013 and for the period ended October 31, 2012 was as follows:

	For the Six Months Ended April 30, 2013									For the Period Ended October 31, 2012
	Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions		Shares Redeemed			Total		Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions		Shares Redeemed			Total
Institutional Class		2,016,057		17,121		(463,428	)		1,569,750		3,352,383		—		(30,293	)		3,322,090	⁽¹⁾
Class A		885,352		898		(43,734	)		842,516		175,493		—		(80	)		175,413	⁽¹⁾
Class C		77,990		198		(2,688	)		75,500		22,937		—		—			22,937	⁽¹⁾

(1) Period from May 15, 2012 (Commencement of Operations) to October 31, 2012.

Note E—Recent Accounting Pronouncement:

In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements.

Note F—Unaudited Financial Information:

The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.

The following table includes selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. Per share amounts that round to less than $0.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Net Asset amounts with a zero balance may reflect actual amounts rounding to less than $0.1 million.

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)		Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital		Total Distributions			Net Asset Value, End of Period
Absolute Return Multi-Manager Fund
Institutional Class
04/30/2013 (Unaudited)	$	10.00	$	(0.01	)	$	0.51	$	0.50		$	(0.02	)	$	(0.04	)	$	—	$	(0.06	)	$	10.44
Period from 5/15/2012^{^} to 10/31/2012	$	10.00	$	(0.08	)	$	0.08	$	—		$	—		$	—		$	—	$	—		$	10.00
Class A
04/30/2013 (Unaudited)	$	9.99	$	(0.04	)	$	0.51	$	0.47		$	—		$	(0.04	)	$	—	$	(0.04	)	$	10.42
Period from 5/15/2012^{^} to 10/31/2012	$	10.00	$	(0.09	)	$	0.08	$	(0.01	)	$	—		$	—		$	—	$	—		$	9.99
Class C
04/30/2013 (Unaudited)	$	9.95	$	(0.08	)	$	0.52	$	0.44		$	—		$	(0.04	)	$	—	$	(0.04	)	$	10.35
Period from 5/15/2012^{^} to 10/31/2012	$	10.00	$	(0.13	)	$	0.08	$	(0.05	)	$	—		$	—		$	—	$	—		$	9.95

	Total Return^††			Net Assets, End of Period (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Gross Expenses to Average Net Assets (excluding expenses on securities sold short)			Ratio of Net Expenses to Average Net Assets			Ratio of Net Expenses to Average Net Assets (excluding expenses on securities sold short)			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate (including securities sold short)**			Portfolio Turnover Rate (excluding securities sold short)**
Absolute Return Multi-Manager Fund
Institutional Class
04/30/2013 (Unaudited)		4.97	%**	$	51.1		3.92	%*		3.57	%*		2.46	%*^‡‡		2.11	%*^‡‡		(0.24	%)*		196	%		181	%
Period from 5/15/2012^{^} to 10/31/2012		0.00	%**	$	33.2		7.86	%^‡*		7.50	%^‡*		2.81	%^‡*		2.45	%^‡*		(1.81	%)^‡*		270	%		213	%
Class A
04/30/2013 (Unaudited)		4.68	%**	$	10.6		4.14	%*		3.81	%*		2.74	%*^‡‡		2.40	%*^‡‡		(0.84	%)*		196	%		181	%
Period from 5/15/2012^{^} to 10/31/2012		(0.10	%)**	$	1.8		8.67	%^‡*		8.26	%^‡*		3.22	%^‡*		2.81	%^‡*		(2.02	%)^‡*		270	%		213	%
Class C
04/30/2013 (Unaudited)		4.40	%**	$	1.0		4.96	%*		4.62	%*		3.52	%*^‡‡		3.18	%*^‡‡		(1.52	%)*		196	%		181	%
Period from 5/15/2012^{^} to 10/31/2012		(0.50	%)**	$	0.2		13.12	%^‡*		12.74	%^‡*		3.94	%^‡*		3.56	%^‡*		(2.86	%)^‡*		270	%		213	%

@ Calculated based on the average number of shares outstanding during the fiscal period.

†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during the fiscal period and assumes income dividends and other distributions, if any, were reinvested but does not reflect the effect of sales charges. Results represent past performance and do not indicate future results. Current returns may be lower or higher than the performance data quoted. Investment returns and principal may fluctuate and shares when redeemed may be worth more or less than original cost. Total return would have been lower if Management had not reimbursed and/or waived certain expenses.

# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.

‡ Organization expense, which is a non-recurring expense, is included in these ratios on a non-annualized basis.

^ The date investment operations commenced.

** Not annualized.

* Annualized.

‡‡ After reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, the annualized ratios of net expenses to average daily net assets would have been:

	Including Expenses on Securities Sold Short			Excluding Expenses on Securities Sold Short
	Six Months Ended April 30, 2013
Absolute Return Multi-Manager Fund Institutional Class		2.49	%		2.14	%
Absolute Return Multi-Manager Fund Class A		2.76	%		2.43	%
Absolute Return Multi-Manager Fund Class C		3.55	%		3.21	%

Board Consideration of the Management and Sub-Advisory Agreements

At meetings held on February 27, 2013, March 21, 2013, and April 23-24, 2013, the Board of Trustees of Neuberger Berman Alternative Funds ("Board"), including the Trustees who are not "interested persons" of Neuberger Berman Management LLC ("Management") (including its affiliates) or Neuberger Berman Alternative Funds ("Independent Fund Trustees"), considered and approved the separate sub-advisory agreements among Management, NB Alternative Investment Management LLC ("NBAIM") and each of the following subadvisers (each a "Subadviser"): Good Hill Partners LP and Lazard Asset Management LLC (each, a "Sub-Advisory Agreement"), each of which would be responsible for managing a portion of the assets of Neuberger Berman Absolute Return Multi-Manager Fund ("Fund").

In evaluating the Sub-Advisory Agreements, the Board, including the Independent Fund Trustees, reviewed materials furnished by each Subadviser. In addition, the Board, including the Independent Fund Trustees, met with senior representatives of each Subadviser regarding their personnel and operations. The Independent Fund Trustees were advised by counsel that is experienced in Investment Company Act of 1940 matters and that is independent of Management and NBAIM.

The Board noted that Management and NBAIM, together with the Fund, had received an order from the Securities and Exchange Commission ("SEC") that permits Management to add or replace subadvisers to the Fund without a shareholder vote, provided the Independent Fund Trustees approve the new subadviser and certain other steps are taken. In this context, the Board considered Management's and NBAIM's responsibilities for designing an overall investment program for the Fund and then identifying the Subadvisers who will carry out the different portions of that program based on NBAIM's due diligence of those Subadvisers. The Board further noted that Management and NBAIM pursuant to their agreements with the Fund and related subadviser oversight policies and procedures approved by the Board are responsible for overseeing the Subadvisers.

The Board evaluated the terms of the Sub-Advisory Agreements, the overall fairness of the Agreements to the Fund and whether the Agreements were in the best interests of the Fund and its shareholders. The Board considered the following factors, among others, in connection with its approval of the Agreements: (1) the nature, extent, and quality of the services to be provided by each Subadviser; and (2) the expected costs of the services to be provided. In their deliberations, the Board members did not identify any particular information that was all-important or controlling, and each Trustee may have attributed different weights to the various factors.

The Board received and considered information regarding the nature, extent and quality of services to be provided to the Fund by each Subadviser under the Sub-Advisory Agreements. The Board considered the experience and staffing of the portfolio management and investment research personnel of each Subadviser who would perform services for the Fund, as well as the resources available to each. With respect to each Subadviser, the Board reviewed the performance for accounts managed by the Subadviser that were substantially similar in strategy to the strategy the Subadviser will use for the Fund, noting that the accounts may not be subject to the same 1940 Act restrictions as the Fund. The Board considered the policies and practices regarding brokerage and allocation of portfolio transactions of each of the Subadvisers and noted that Management and NBAIM would monitor the quality of the execution services provided by each Subadviser.

The Board also reviewed whether the Subadvisers would use brokers to execute Fund transactions that provide research and other services to the Subadviser, and the types of benefits potentially derived from such services by the Subadviser, the Fund and other clients of the Subadviser. The Board also considered the compliance programs and compliance history of each Subadviser, including the Fund's Chief Compliance Officer's and NBAIM's assessment of the compliance programs of the Subadvisers. The Board also considered whether there were any pending lawsuits, enforcement proceedings or regulatory investigations involving a Subadviser, and reviewed information regarding their financial condition, history of operations and any conflicts of interests in managing the Fund.

With respect to the overall fairness of the Sub-Advisory Agreements, the Board had previously considered the Fund's fee structure as compared to a peer group of comparable funds and any fall-out benefits likely to accrue to Management or its affiliates. In addition, the Board at its February 27 meeting considered and approved a reduction in the Fund's

Dear Shareholder,

I am pleased to present this semi-annual shareholder report for the Neuberger Berman Alternative and Multi-Asset Class Funds: Neuberger Berman Global Allocation Fund and Neuberger Berman Long Short Fund. This report also includes the new Neuberger Berman Dynamic Real Return Fund, which was launched on December 19, 2012. The Fund seeks to provide long-term attractive risk-adjusted real returns in stable to rising inflationary environments, with a secondary objective to preserve investor capital. To pursue its goal, the Fund currently diversifies its assets primarily among the following general asset classes: inflation-linked debt securities, debt securities rated below investment grade, master limited partnerships, real estate investment trusts, commodities and equity securities. All three Funds utilize hedge fund-like strategies, which we believe can add valuable diversification and supplement traditional equity and fixed income investments.

Turning our attention to the global financial markets, they were impacted by a number of issues during the reporting period, including moderating global growth, aggressive monetary policy accommodation by a number of central banks, uncertainties related to the U.S. fiscal cliff and the European sovereign debt crisis. This led to several occasions during the period when investors flocked to the safety of U.S. Treasury securities. However, these flights to quality were generally temporary in nature and investors who took on greater risk were generally rewarded over the six months ended April 30, 2013.

U.S. equities rallied sharply during the period and several indices reached new record highs. International developed market equities also performed well, while emerging market equities posted less robust returns. With global growth weakening, inflation remained tame and commodity prices largely declined. Looking at the fixed income market, non-Treasuries generally produced modest gains. One notable exception was high yield corporate bonds, as they outperformed given solid investor demand. Elsewhere, the currency markets were volatile at times given actions by the Bank of Japan to spur its economy and a reemergence of issues in Europe.

Looking ahead, there continues to be a number of uncertainties that could impact investor sentiment in the coming months. In addition to macroeconomic and geopolitical issues, the longer-term impact of monetary policy accommodation remains in question. As a result, the markets could experience periods of increased volatility. However, as we experienced during the reporting period, flights to quality may be trumped by investors' search for higher returns amid the low interest rate environment. In our view, this could lead to generally solid demand for equities and non-Treasury securities.

Thank you for your continued support and trust. We look forward to continue serving your investment needs in the years to come.

Sincerely,

ROBERT CONTI
PRESIDENT AND CEO
NEUBERGER BERMAN MUTUAL FUNDS

Neuberger Berman Dynamic Real Return Fund, which was launched on December 19, 2012, seeks to provide long-term attractive risk-adjusted real returns in stable to rising inflationary environments. Capital preservation is a secondary objective. To pursue its goal, the Fund currently allocates its assets primarily among the following general asset classes: inflation-linked debt securities, debt securities rated below investment grade, master limited partnerships ("MLPs"), real estate investment trusts ("REITs"), commodities and equity securities.

Neuberger Berman Dynamic Real Return Fund Institutional Class generated a 4.20% total return from its inception on December 19, 2012 through April 30, 2013. During this same time period, its benchmark, the Barclays 1-10 Year U.S. TIPS Index, provided a 0.46% return while CPI was 1.28%.¹ (Performance for all share classes is provided in the table immediately following this letter.)

The global financial markets generated mixed results during the reporting period (since the Fund's launch), as a host of macro factors and continued central bank intervention impacted investor sentiment and asset valuations. In the U.S., fiscal cliff-related tax hikes were not as onerous as previously feared and sequestration was introduced with relatively minimal fanfare. Overseas, inconclusive elections in Italy and a banking crisis in Cyprus reminded investors that issues in Europe can quickly move to the front burner. Against this backdrop, the markets were volatile at times, as investor risk appetite was replaced with risk aversion and vice versa. The currency markets fluctuated during the period given the ongoing issues in Europe. In Japan, Prime Minister Abe's nomination of Haruhiko Kuroda as Governor of the Bank of Japan reinforced investors' expectations of large scale expansion of monetary policy and further weakness in the yen.

Among the sectors in which the Fund invests, its allocation to MLPs produced the largest absolute returns. After generating weak results at the end of 2012 amid unfounded concerns that the favorable tax treatment of MLPs could be curtailed as part of the fiscal cliff tax hikes, MLPs produced a double-digit return during the remainder of the fiscal period. The Fund's REITs were also a strong performer. REITs in general rallied as fundamentals further improved and demand was solid as investors looked to generate incremental yield. Other contributors to absolute performance were equities within emerging markets, as well as in the Materials and Energy sectors, along with high yield corporate bonds and global Treasury Inflation-Protected Securities ("TIPS"). On the downside, the Fund's commodities were the largest detractors from results. They performed poorly given continued signs of moderating global growth and weak supply/demand technicals.

In aggregate, the Fund's dynamic overlay was a modest negative for performance. Inflation signals, such as equity and commodity prices, yield curve and investor sentiment, were mixed during the reporting period. Against this backdrop, on several occasions during the period the Fund had a short position in Treasury futures.

While the threat of sharply higher inflation is not imminent, we feel the foundation is in place for rising prices in the future. Following anemic growth in the U.S. at the end of 2012, we believe there are some signs of improvement, most notably in the housing market. The manufacturing sector has been in an expansionary mode and, despite the recent payroll tax hike, consumer spending has been resilient. Overseas, China's economy looks to us like it will avoid a hard landing. We continue to believe that positive growth trends in the U.S. and China will more than offset weakness in Europe. However, we do acknowledge that potential changes in the U.S. tax code could still negatively affect some industries of significance to the Fund.

Despite a number of positive economic indicators in the U.S., the Federal Reserve appears likely to maintain its highly accommodative monetary policy for the foreseeable future given ongoing slack in the labor market. Elsewhere, Japan's central bank has vowed to increase its monetary base by as much as $730 billion per year until its 2% inflation goal is met. In Europe, there is the anticipation that the European Central Bank will need to take additional actions should the region's economy continue to falter.

PERFORMANCE HIGHLIGHTS

	Inception Date	Cumulative Total Return Ended 04/30/2013 Life of Fund
At NAV
Institutional Class	12/19/2012		4.20	%
Class A	12/19/2012		4.10	%
Class C	12/19/2012		3.80	%
With Sales Charge
Class A			-1.89	%
Class C			2.80	%
Index
Barclays1-10 Year U.S. TIPS Index^1,2			0.46	%

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

Neuberger Berman Global Allocation Fund Institutional Class generated a 10.52% total return for the six months ended April 30, 2013 and outperformed its custom benchmark, a 50/50 combination of the MSCI World Index and the J.P. Morgan Global Government Bond Index, which provided a 5.71% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)

The global financial markets generated mixed results during the reporting period, as a host of macro factors and continued central bank intervention impacted investor sentiment. In the U.S., fiscal cliff related tax hikes and sequestration were core issues, while overseas, inconclusive elections in Italy and the banking crisis in Cyprus quickly moved to the front burner. Despite these headwinds, several U.S. stock market indices reached all-time record highs during the period. International developed market equities also rose sharply, whereas emerging market equities produced more moderate gains. Within the developed fixed income market, government bonds on average produced modest gains. Elsewhere, the currency markets fluctuated given the situation in Europe and the Bank of Japan's aggressive actions to stimulate growth and end its deflationary cycle.

From an asset allocation perspective, the Fund benefited from generally maintaining an overweight to equities relative to the benchmark. Our fixed income exposure was also beneficial to results, whereas our currency exposure detracted from performance. The Fund's macro positioning in fixed income securities was implemented primarily through derivatives, such as total return swaps, futures contracts on government bonds and broad-based fixed income indices. The Fund's positioning in equity securities and its currency exposure were obtained through a combination of exchange traded funds (ETFs) and derivatives such as futures, forwards and swaps.

In equities, the Fund generally had an overweight position relative to its benchmark, with the exception of February 2013, when the Fund shifted to an underweight position during that month. The Fund was generally overweighted in most regions during the period, but maintained an underweighting in the Australian equity market. Overall, our equity positions contributed positively to performance during the period. Our positioning in the Japanese equity market was the largest contributor to overall Fund performance, while most other regions, including Hong Kong and emerging markets, detracted value.

In fixed income markets, our overall positioning added value. The Fund moved to an underweight position relative to its benchmark in February and maintained that position in March, but to a lesser extent. In April, the Fund moved back to an overweight position in the fixed income markets. For the period, our positioning in UK gilts was the most beneficial, followed by our Australian and U.S. government bond exposures. These gains were partially offset by our Canadian and Japanese bond exposures.

In terms of the Fund's currency exposure, we generally had a bias against the U.S. dollar. The Fund was overweighted relative to its benchmark in the yen, Australian dollar and Swiss franc for most of the period, and was generally underweighted in the British pound, while being more tactical in our euro and Canadian dollar positioning. The largest detractor from performance was our allocation to the euro, which declined sharply. Weakness in the yen was also detrimental to the Fund's performance, as was our positioning in the Canadian dollar. These losses were somewhat offset by our allocation to the UK pound.

Elsewhere, our security selection strategy was a significant driver of positive performance during the period. Geographically, most of the contributions to returns within the strategy came from successful long/short positioning in Europe.

Much of the Fund's investment exposure is accomplished through the use of derivatives, including total return swaps, futures and forwards, which may not require the Fund to deposit the full notional amount of its investments with counterparties. The Fund's resulting cash balances are invested in money market mutual funds.

PERFORMANCE HIGHLIGHTS³

		Six Month			Average Annual Total Return Ended 04/30/2013
	Inception Date	Period Ended 04/30/2013			1 Year			Life of Fund
At NAV
Institutional Class	12/29/2010		10.52	%		12.38	%		9.92	%
Class A	12/29/2010		10.30	%		12.05	%		9.53	%
Class C	12/29/2010		9.93	%		11.14	%		8.72	%
With Sales Charge
Class A			3.91	%		5.56	%		6.80	%
Class C			8.93	%		10.14	%		8.72	%
Index
50% MSCI World Index and 50% J.P. Morgan Global Government Bond Index^1,2			5.71	%		7.92	%		6.74	%
MSCI World Index^1,2			15.02	%		17.40	%		9.52	%

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

Neuberger Berman Long Short Fund Institutional Class generated a 7.56% total return for the six months ended April 30, 2013, but underperformed its primary benchmark, the S&P 500 Index, which provided a 14.42% return for the period. (Performance for all share classes is provided in the table immediately following this letter.) The Fund's underperformance was due largely to its hedged nature, with its net exposure running at approximately 50%–60% net long during most of the period. However, the Fund outperformed the HFRX Equity Hedge Index which returned 6.72% for the period. (The index tracks the performance of strategies that maintain positions both long and short in primarily equity and equity derivative securities.)

Investors faced a number of uncertainties entering the reporting period, including the potential impact of the fiscal cliff and the raising of the debt ceiling. As the period progressed, investor sentiment was challenged at times due to the sequestration, a reemergence of issues in Europe and some mixed economic data. Despite these challenges and periodic flights to quality, the S&P 500 Index rose sharply and reached an all-time high during the period. Supporting the market were overall solid demand and continued Federal Reserve monetary policy accommodation. Within the fixed income market, lower-rated securities produced the strongest returns as investors looked to generate incremental yield in the low interest rate environment.

We continued to have a positive outlook on risk assets such as equities and high yield bonds, which was reflected in the long side of the portfolio. Within our equity holdings, which represented the bulk of our long exposure, the largest contribution came from our holdings in the Consumer Discretionary sector. In particular, we emphasized those companies that we believe have sustainable business models, disciplined capital allocation strategies and significant growth opportunities. We had an underweight in the Information Technology (IT) sector. Our IT holdings tend to be "non-traditional" technology companies that we think have unique growth opportunities in the offshore business process outsourcing and payment processing industries.

We categorize our investments on the long side into three groups: Capital Growth, Total Return and Opportunistic. Capital Growth investments demonstrate what we believe are attractive industry fundamentals, strong competitive positions, growing revenues and attractive re-investment opportunities. Total Return investments demonstrate what we believe are sustainable and/or growing streams of income that are underpinned by asset value and which can result in growing cash returns to shareholders. The Total Return category includes our fixed income holdings, which consisted mainly of high yield securities during the reporting period. Opportunistic investments are those where we find identifiable catalysts. This may include companies with management changes, company reorganizations, merger and acquisition activity and other market dislocations that have the potential to unlock intrinsic value.¹

In favorable macro environments, the exposure to Capital Growth and Opportunistic fundamental longs historically tended to increase relative to the Total Return category. During the reporting period, the Capital Growth category represented the largest exposure in our long portfolio and was the largest contributor to the Fund's performance.

The short exposure within the portfolio is broken into "Fundamental" shorts and "Market" shorts. During the reporting period, our Market shorts consisted primarily of exchange traded funds and short futures positions on the S&P 500 Index. Given low market volatility during much of the period, we reduced our weighting to Fundamental shorts versus Market shorts. However, given the market's sharp rally during the reporting period, our Market shorts—used in an effort to hedge the portfolio and manage overall exposure levels—detracted the most from the Fund's performance. The majority of our derivatives exposure fell under our aforementioned Market short categorization.

Looking ahead, we feel that risk assets, namely equities and high yield bonds, offer the best risk-adjusted return potential. We believe U.S. economic data continues to point to an expansion as the recovery in the housing market appears to be offsetting the headwinds from the fiscal cliff and sequestration. A number of forward looking indicators appear to reflect that financial conditions remain very accommodative, despite ongoing worries related to the European sovereign debt crisis.

PERFORMANCE HIGHLIGHTS

		Six Month			Average Annual Total Return Ended 04/30/2013
	Inception Date	Period Ended 04/30/2013			1 Year			Life of Fund
At NAV
Institutional Class	12/29/2011		7.56	%		12.11	%		14.07	%
Class A	12/29/2011		7.34	%		11.78	%		13.66	%
Class C	12/29/2011		6.92	%		10.86	%		12.80	%
With Sales Charge
Class A			1.21	%		5.34	%		8.75	%
Class C			5.92	%		9.86	%		12.80	%
Index
S&P 500 Index^1,2			14.42	%		16.89	%		22.76	%
HFRX Equity Hedge Index^1,2			6.72	%		6.72	%		8.17	%

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

MSCI World Index:				A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of the following 24 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States.
50% MSCI World Index and 50% J.P. Morgan Global Government Bond Index:				A blended index combining the performance of two separate indexes, the MSCI World Index and the J.P. Morgan Global Government Bond Index. The blended index tracks the performance of the two indexes at a 50%/50% weight, and is rebalanced monthly. The J.P. Morgan Global Government Bond Index (GBI) provides a comprehensive measure for the performance of market-weighted local currency denominated fixed rate government debt of large developed government bond markets. This index covers 13 countries: Australia, Belgium, Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, the United Kingdom, and the United States. The index measures returns in USD terms with no currency hedging and is rebalanced monthly. All government debt issues with at least 13 months remaining to maturity and meeting liquidity requirements are included in the index.
S&P 500 Index:				Widely regarded as the standard for measuring the performance of large-cap stocks traded on U.S. markets and includes a representative sample of leading companies in leading industries.
Barclays 1-10 Year U.S. TIPS Index:				An unmanaged index market comprised of U.S. Treasury Inflation Protected securities having a maturity of at least 1 year and less than 10 years.
HFRX Equity Hedge Index:				The HFRX Equity Hedge Index is designed to reflect the performance of strategies that maintain positions both long and short in primarily equity and equity derivative securities. A wide variety of investment processes can be employed to arrive at an investment decision, including both quantitative and fundamental techniques; strategies can be broadly diversified or narrowly focused on specific sectors and can range broadly in terms of levels of net exposure, leverage employed, holding period, concentrations of market capitalizations and valuation ranges of typical portfolios. Equity Hedge managers would typically maintain at least 50%, and may in some cases be substantially entirely invested in equities, both long and short. Fund weights are determined by the optimization process. Constituent funds are selected from an eligible pool of the more than 6,800 funds that report performance to the Hedge Fund Research (HFR) database on a voluntary basis, and rebalanced quarterly. Funds included in the index must meet all of the following criteria: report monthly returns net of all fees; be denominated in USD; be active and accepting new investments; have a minimum 24 months track record; and the Fund's manager must have at least $50 million in assets under management. The index is available daily, with finalized month-end performance available two to three business days after the last business day of the month.

Neuberger Berman Alternative Funds
	ACTUAL										HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)⁽³⁾
	Beginning Account Value 11/1/12		Ending Account Value 4/30/13		Expenses Paid During the Period⁽¹⁾ 11/1/12 - 4/30/13			Expense Ratio			Beginning Account Value 11/1/12		Ending Account Value 4/30/13		Expenses Paid During the Period⁽¹⁾ 11/1/12 - 4/30/13		Expense Ratio
Dynamic Real Return Fund
Institutional Class	$	1,000.00	$	1,042.00	$	2.49	⁽²⁾		0.67	%	$	1,000.00	$	1,021.47	$	3.36		0.67	%
Class A	$	1,000.00	$	1,041.00	$	3.83	⁽²⁾		1.03	%	$	1,000.00	$	1,019.69	$	5.16		1.03	%
Class C	$	1,000.00	$	1,038.00	$	6.61	⁽²⁾		1.78	%	$	1,000.00	$	1,015.97	$	8.90		1.78	%
Global Allocation Fund
Institutional Class	$	1,000.00	$	1,105.20	$	8.30			1.59	%	$	1,000.00	$	1,016.91	$	7.95		1.59	%
Class A	$	1,000.00	$	1,103.00	$	10.22			1.96	%	$	1,000.00	$	1,015.08	$	9.79		1.96	%
Class C	$	1,000.00	$	1,099.30	$	14.05			2.70	%	$	1,000.00	$	1,011.41	$	13.47		2.70	%
Long Short Fund
Institutional Class	$	1,000.00	$	1,075.60	$	9.31			1.81	%	$	1,000.00	$	1,015.82	$	9.05		1.81	%
Class A	$	1,000.00	$	1,073.40	$	11.16			2.17	%	$	1,000.00	$	1,014.03	$	10.84		2.17	%
Class C	$	1,000.00	$	1,069.20	$	14.93			2.91	%	$	1,000.00	$	1,010.36	$	14.51		2.91	%

(2) For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 133/365 (to reflect the period shown of December 19, 2012 to April 30, 2013).

(3) Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 365.

	Number of Shares		Value†
Common Stocks (36.8%)
Chemicals (6.3%)
Air Products & Chemicals, Inc.		590	$	51,306
Airgas, Inc.		193		18,653
CF Industries Holdings, Inc.		182		33,945
Dow Chemical Co.		3,317		112,479
E. I. du Pont de Nemours & Co.		2,582		140,745
Eastman Chemical Co.		423		28,193
Ecolab, Inc.		735		62,196
FMC Corp.		387		23,491
International Flavors & Fragrances, Inc.		227		17,522
LyondellBasell Industries NV Class A		1,025		62,218
Monsanto Co.		1,500		160,230
Mosaic Co.		770		47,424
PPG Industries, Inc.		398		58,562
Praxair, Inc.		837		95,669
Sherwin-Williams Co.		238		43,580
Sigma-Aldrich Corp.		340		26,755
				982,968
Construction Materials (0.1%)
Vulcan Materials Co.		370		18,456
Containers & Packaging (0.4%)
Ball Corp.		429		18,928
Bemis Co., Inc.		286		11,254
MeadWestvaco Corp.		484		16,688
Owens-Illinois, Inc.		458		12,036	*
Sealed Air Corp.		549		12,144
				71,050

	Number of Shares		Value†
Energy Equipment & Services (1.5%)
Baker Hughes, Inc.		412	$	18,701
Cameron International Corp.		230		14,156	*
Diamond Offshore Drilling, Inc.		65		4,491
Ensco PLC Class A		222		12,805
FMC Technologies, Inc.		219		11,892	*
Halliburton Co.		865		36,996
Helmerich & Payne, Inc.		97		5,686
Nabors Industries Ltd.		278		4,112
National Oilwell Varco, Inc.		408		26,610
Noble Corp.		236		8,850
Rowan Cos. PLC Class A		115		3,741	*
Schlumberger Ltd.		1,245		92,665
				240,705
Gas Utilities (0.9%)
ONEOK, Inc.		1,100		56,496
Suburban Propane Partners LP		1,700		84,575
				141,071
Hotels, Restaurants & Leisure (0.6%)
Cedar Fair LP		2,200		92,400
Household Durables (0.3%)
American Homes 4 Rent Class A		800		14,280	ñ*
TRI Pointe Homes, Inc.		1,405		26,695	*
				40,975
Metals & Mining (1.4%)
Alcoa, Inc.		2,989		25,406

	Number of Shares		Value†
Allegheny Technologies, Inc.		295	$	7,959
Cliffs Natural Resources, Inc.		440		9,389
Freeport- McMoRan Copper & Gold, Inc.		2,823		85,904
Newmont Mining Corp.		1,490		48,276
Nucor Corp.		890		38,822
United States Steel Corp.		417		7,423
				223,179
Multi-Utilities (0.2%)
CenterPoint Energy, Inc.		1,250		30,850
Oil, Gas & Consumable Fuels (15.0%)
Alliance Holdings GP LP		1,600		99,456
Anadarko Petroleum Corp.		458		38,820
Apache Corp.		371		27,409
Boardwalk Pipeline Partners LP		2,100		63,483
Cabot Oil & Gas Corp.		188		12,793
Chesapeake Energy Corp.		483		9,438
Chevron Corp.		1,790		218,398
ConocoPhillips		1,120		67,704
CONSOL Energy, Inc.		203		6,829
DCP Midstream Partners LP		950		46,664
Denbury Resources, Inc.		358		6,405	*
Devon Energy Corp.		348		19,161
Energy Transfer Equity LP		2,000		117,360
Enterprise Products Partners		1,850		112,203

	Number of Shares		Value†
EOG Resources, Inc.		252	$	30,532
EQT Corp.		139		10,442
Exxon Mobil Corp.		4,233		376,695
Hess Corp.		268		19,344
Inergy LP		5,250		115,447
Inergy Midstream LP		1,800		45,702
Kinder Morgan, Inc.		581		22,717
Marathon Oil Corp.		662		21,628
Marathon Petroleum Corp.		306		23,978
Murphy Oil Corp.		166		10,307
Newfield Exploration Co.		129		2,811	*
Noble Energy, Inc.		166		18,806
NuStar GP Holdings LLC		1,850		56,333
Occidental Petroleum Corp.		747		66,677
Peabody Energy Corp.		255		5,115
Phillips 66		591		36,021
Pioneer Natural Resources Co.		119		14,545
PVR Partners LP		4,800		120,000
QEP Resources, Inc.		164		4,708
Range Resources Corp.		150		11,028
Regency Energy Partners LP		4,600		120,060
Southcross Energy Partners LP		1,600		34,608
Southwestern Energy Co.		323		12,087	*
Spectra Energy Corp.		1,707		53,822
Spectra Energy Partners LP		1,200		45,528
Teekay LNG Partners LP		750		31,268
Teekay Offshore Partners LP		1,500		45,570
Tesoro Corp.		130		6,942
Valero Energy Corp.		521		21,007
Western Gas Partners LP		600		36,276
Williams Cos., Inc.		2,317		88,347
WPX Energy, Inc.		181		2,829	*
				2,357,303
Paper & Forest Products (0.4%)
International Paper Co.		1,204		56,564

	Number of Shares		Value†
Real Estate Investment Trusts (9.5%)
American Campus Communities, Inc.		495	$	22,097
American Tower Corp.		1,145		96,169
AvalonBay Communities, Inc.		530		70,511
Boston Properties, Inc.		600		65,658
Camden Property Trust		635		45,936
Corporate Office Properties Trust		855		24,786
Digital Realty Trust, Inc.		595		41,959
Douglas Emmett, Inc.		995		26,039
DuPont Fabros Technology, Inc.		710		17,849
EastGroup Properties, Inc.		530		33,427
Equity Residential		1,175		68,220
Essex Property Trust, Inc.		135		21,202
Federal Realty Investment Trust		310		36,273
General Growth Properties, Inc.		2,015		45,781
Glimcher Realty Trust		1,325		16,615
HCP, Inc.		1,325		70,622	^ØØ
Health Care REIT, Inc.		570		42,733
Healthcare Realty Trust, Inc.		580		17,412
Host Hotels & Resorts, Inc.		2,035		37,179
Kilroy Realty Corp.		445		25,183
Macerich Co.		325		22,766
Prologis, Inc.		2,425		101,729
PS Business Parks, Inc.		150		11,970
Public Storage		545		89,925
Rayonier, Inc.		700		41,594
Simon Property Group, Inc.		765		136,224
SL Green Realty Corp.		415		37,640
Sovran Self Storage, Inc.		305		20,923
Tanger Factory Outlet Centers		465		17,261
Taubman Centers, Inc.		280		23,943
Urstadt Biddle Properties, Inc. Class A		860		19,152

	Number of Shares		Value†
Ventas, Inc.		755	$	60,121
Vornado Realty Trust		460		40,278
Weyerhaeuser Co.		1,425		43,477
				1,492,654
Real Estate Management & Development (0.2%)
Brookfield Asset Management, Inc. Class A		510		19,681
Brookfield Property Partners LP		29		640	*
Forest City Enterprises, Inc. Class A		840		15,683	*
				36,004
Total Common Stocks (Cost $5,436,265)				5,784,179
	Principal Amount
Government Securities (14.0%)
Sovereign (14.0%)
Australia Government Bond, Senior Unsecured Notes, 1.25%, due 2/21/22	AUD	44,952		50,744	^a
Australia Government Bond, Senior Unsecured Notes, 2.50%, due 9/20/30	AUD	215,000		300,062	^a
Canadian Government Bond, Bonds, 1.50%, due 12/1/44	CAD	68,966		89,821	^a
Canadian Government Bond, Bonds, 4.25%, due 12/1/21	CAD	73,819		103,270	^a
Deutsche Bundesrepublik Inflation Linked Bond, Bonds, 0.10%, due 4/15/23	EUR	61,219		85,709	^a
Deutsche Bundesrepublik Inflation Linked Bond, Bonds, 1.75%, due 4/15/20	EUR	37,783		58,993	^a

TOP TEN EQUITY HOLDINGS LONG POSITIONS (as a % of Net Assets)

1	Republic Airways Holdings, Inc.	United States	Airlines	1.4	%
2	Hellenic Telecommunications Organization SA	Greece	Diversified Telecommunication Services	1.2	%
3	Quad/Graphics, Inc.	United States	Commercial Services & Supplies	1.2	%
4	easyJet PLC	United Kingdom	Airlines	1.1	%
5	Lincoln National Corp.	United States	Insurance	0.9	%
6	Horace Mann Educators Corp.	United States	Insurance	0.9	%
7	Harbinger Group, Inc.	United States	Household Products	0.8	%
8	Pace PLC	United Kingdom	Communications Equipment	0.8	%
9	Western Refining, Inc.	United States	Oil, Gas & Consumable Fuels	0.8	%
10	Public Power Corp. SA	Greece	Electric Utilities	0.7	%

TOP TEN EQUITY HOLDINGS SHORT POSITIONS (as a % of Net Assets)

1	Boston Properties, Inc.	United States	Real Estate Investment Trusts	(1.1	)%
2	Broadcom Corp.	United States	Semiconductors & Semiconductor Equipment	(1.0	)%
3	Aggreko PLC	United Kingdom	Commercial Services & Supplies	(1.0	)%
4	CONSOL Energy, Inc.	United States	Oil, Gas & Consumable Fuels	(1.0	)%
5	Digital Realty Trust, Inc.	United States	Real Estate Investment Trusts	(1.0	)%
6	Peabody Energy Corp.	United States	Oil, Gas & Consumable Fuels	(0.9	)%
7	Chart Industries, Inc.	United States	Machinery	(0.9	)%
8	UDR, Inc.	United States	Real Estate Investment Trusts	(0.8	)%
9	Cypress Semiconductor Corp.	United States	Semiconductors & Semiconductor Equipment	(0.8	)%
10	Tullow Oil PLC	United Kingdom	Oil, Gas & Consumable Fuels	(0.8	)%

	Number of Shares		Value†
United States (12.2%)
American Equity Investment Life Holding Co.		3,878	$	59,101	^È
AMN Healthcare Services, Inc.		7,279		99,941	*^È
Bridgepoint Education, Inc.		1,560		16,817	*^È
CNO Financial Group, Inc.		10,136		114,740
CVR Energy, Inc.		593		29,217
Delek US Holdings, Inc.		2,963		106,935
Delta Air Lines, Inc.		3,306		56,665	*
Ferro Corp.		17,327		121,982	*^È
Genworth Financial, Inc. Class A		12,906		129,447	*^È
Greenbrier Cos., Inc.		2,953		66,620	*
Harbinger Group, Inc.		28,031		253,400	*^È
Headwaters, Inc.		15,925		172,945	*
Horace Mann Educators Corp.		11,732		264,557
Lincoln National Corp.		8,201		278,916	^È
National Interstate Corp.		559		16,239
Parker Drilling Co.		11,404		46,984	*^È
Piper Jaffray Cos.		6,166		208,164	*^È
Quad/Graphics, Inc.		17,501		365,771	^È
Questcor Pharmaceuticals, Inc.		1,573		48,354	^È
Republic Airways Holdings, Inc.		37,590		420,632	*
Sanmina Corp.		10,504		132,560	*^È
SkyWest, Inc.		13,864		198,394	^È
Tutor Perini Corp.		12,190		200,404	*^È
Walker & Dunlop, Inc.		5,750		102,407	*
Western Refining, Inc.		7,609		235,194	^È
				3,746,386
Total Common Stocks (Cost $6,839,548)				7,470,666

	Number of Shares			Value†
Short-Term Investments (63.2%)
State Street Institutional Government Money Market Fund Institutional Class (Cost $19,403,331)		19,403,331		$	19,403,331	^ØØ
Total Long Positions (87.5%) (Cost $26,242,879)					26,873,997	^##
Cash, receivables and other assets, less liabilities (36.0%)					11,047,968^±
Short Positions (see summary below) ((23.5)%)					(7,207,701)
Total Net Assets (100.0%)				$	30,714,264
Short Positions ((23.5)%)
Common Stocks Sold Short (23.5%)^‡
Australia (0.5%)
Echo Entertainment Group Ltd.		(3,274	)		(12,287	)
Transurban Group		(14,540	)		(102,802	)
Whitehaven Coal Ltd.		(10,394	)		(21,012	)
					(136,101	)
Austria (0.1%)
Telekom Austria AG		(6,052	)		(41,493	)
Canada (1.0%)
MEG Energy Corp.		(6,021	)		(172,242	)*
Bonavista Energy Corp.		(3,241	)		(51,312	)
Detour Gold Corp.		(1,903	)		(22,894	)*
Turquoise Hill Resources Ltd.		(6,581	)		(46,379	)*
Ultra Petroleum Corp.		(736	)		(15,750	)*
					(308,577	)
China (0.2%)
ASM Pacific Technology Ltd.		(6,400	)		(65,937	)
Finland (1.3%)
Nokian Renkaat Oyj		(4,455	)		(193,142	)
Rautaruukki Oyj		(32,861	)		(211,362	)
					(404,504	)

	Number of Shares			Value†
France (1.1%)
Beneteau SA		(3,631	)	$	(38,016	)*
Societe Immobiliere de Location pour l'Industrie et le Commerce		(833	)		(98,084	)
Technip SA		(1,966	)		(211,014	)
					(347,114	)
Germany (0.3%)
ThyssenKrupp AG		(4,346	)		(78,612	)*
Ireland (0.6%)
Elan Corp. PLC		(15,625	)		(180,155	)*
Japan (1.2%)
Advantest Corp.		(8,000	)		(119,649	)
Dainippon Screen Manufacturing Co. Ltd.		(21,000	)		(108,140	)*
Tokyo Electron Ltd.		(2,800	)		(143,324	)
					(371,113	)
Netherlands (0.4%)
Fugro NV		(1,864	)		(107,827	)
Switzerland (0.3%)
Kuehne + Nagel International AG		(718	)		(82,163	)
United Kingdom (3.2%)
Aggreko PLC		(11,103	)		(307,339	)
Dialog Semiconductor PLC		(2,315	)		(27,499	)*
Imagination Technologies Group PLC		(27,987	)		(184,937	)*
Salamander Energy PLC		(79,843	)		(226,592	)*
Tullow Oil PLC		(15,777	)		(245,317	)
					(991,684	)
United States (13.3%)
Allied Nevada Gold Corp.		(5,972	)		(63,900	)*
Altera Corp.		(6,434	)		(205,952	)
AvalonBay Communities, Inc.		(1,777	)		(236,412	)
Boston Properties, Inc.		(3,049	)		(333,652	)
Broadcom Corp.		(8,833	)		(317,988	)
Chart Industries, Inc.		(3,089	)		(261,978	)*
Clean Harbors, Inc.		(684	)		(38,968	)*
CONSOL Energy, Inc.		(8,795	)		(295,864	)

	Number of Shares			Value†
Cypress Semiconductor Corp.		(24,319	)	$	(245,379	)*
Digital Realty Trust, Inc.		(4,149	)		(292,588	)
Dollar Tree, Inc.		(1,886	)		(89,698	)*
Equity Residential		(1,433	)		(83,200	)
Groupon, Inc.		(19,405	)		(118,371	)*
Halcon Resources Corp.		(23,007	)		(150,466	)*
Halozyme Therapeutics, Inc.		(13,953	)		(84,276	)*
Idenix Pharmaceuticals, Inc.		(11,112	)		(41,114	)*
InterMune, Inc.		(13,868	)		(129,388	)*
InvenSense, Inc.		(2,852	)		(26,581	)*
Magnum Hunter Resources Corp.		(51,848	)		(141,027	)*
MAKO Surgical Corp.		(6,703	)		(70,985	)*
McMoRan Exploration Co.		(2,419	)		(40,034	)*
Monster Beverage Corp.		(784	)		(44,218	)*
Netflix, Inc.		(489	)		(105,658	)*
Peabody Energy Corp.		(14,057	)		(281,983	)
Tempur-Pedic International, Inc.		(1,272	)		(61,692	)*
UDR, Inc.		(10,598	)		(260,499	)
Walter Energy, Inc.		(1,009	)		(18,081	)
Zynga, Inc. Class A		(16,448	)		(52,469	)*
					(4,092,421	)
Total Short Positions (Proceeds $(7,356,294))					(7,207,701)

LONG POSITIONS BY INDUSTRY GLOBAL ALLOCATION FUND (UNAUDITED)

Industry	Investments at Value^†		Percentage of Net Assets
Insurance	$	1,437,439		4.7	%
Airlines		1,005,896		3.3	%
Oil, Gas & Consumable Fuels		665,575		2.2	%
Commercial Banks		398,559		1.3	%
Diversified Telecommunication Services		382,547		1.2	%
Commercial Services & Supplies		365,771		1.2	%
Capital Markets		304,234		1.0	%
Household Products		253,400		0.8	%
Communications Equipment		237,960		0.8	%
Electric Utilities		222,526		0.7	%
Road & Rail		214,599		0.7	%
Construction & Engineering		200,404		0.7	%
Metals & Mining		190,245		0.6	%
Transportation Infrastructure		173,222		0.6	%
Construction Materials		172,945		0.5	%
Diversified Financial Services		159,883		0.5	%
Electronic Equipment, Instruments & Components		132,560		0.4	%
Thrifts & Mortgage Finance		122,754		0.4	%
Chemicals		121,982		0.4	%
Health Care Providers & Services		99,941		0.3	%
Pharmaceuticals		99,469		0.3	%
Paper & Forest Products		98,887		0.3	%
Real Estate Management & Development		87,079		0.3	%
Specialty Retail		84,821		0.3	%
Machinery		66,620		0.2	%
Household Durables		64,602		0.2	%
Energy Equipment & Services		46,984		0.1	%
Textiles, Apparel & Luxury Goods		23,938		0.1	%
Media		19,007		0.1	%
Diversified Consumer Services		16,817		0.1	%
Short-Term Investments and Other Assets—Net		30,451,299		99.2	%
Short Positions (see summary below)		(7,207,701)		(23.5	)%
	$	30,714,264		100.0	%

SHORT POSITIONS BY INDUSTRY GLOBAL ALLOCATION FUND (UNAUDITED)

Industry	Investments at Value^†			Percentage of Net Assets
Oil, Gas & Consumable Fuels	$	(1,641,599	)		(5.4	)%
Semiconductors & Semiconductor Equipment		(1,418,805	)		(4.6	)%
Real Estate Investment Trusts		(1,304,435	)		(4.3	)%
Metals & Mining		(441,228	)		(1.5	)%
Biotechnology		(434,933	)		(1.4	)%
Commercial Services & Supplies		(346,307	)		(1.1	)%
Energy Equipment & Services		(318,841	)		(1.0	)%
Machinery		(261,978	)		(0.9	)%
Internet & Catalog Retail		(224,029	)		(0.7	)%
Auto Components		(193,142	)		(0.6	)%
Transportation Infrastructure		(102,802	)		(0.3	)%
Multiline Retail		(89,698	)		(0.3	)%
Marine		(82,163	)		(0.3	)%
Health Care Equipment & Supplies		(70,985	)		(0.2	)%
Household Durables		(61,692	)		(0.2	)%
Software		(52,469	)		(0.2	)%
Beverages		(44,218	)		(0.2	)%
Diversified Telecommunication Services		(41,493	)		(0.1	)%
Leisure Equipment & Products		(38,016	)		(0.1	)%
Electronic Equipment, Instruments & Components		(26,581	)		(0.1	)%
Hotels, Restaurants & Leisure		(12,287	)		(0.0	)%
Total Common Stocks Sold Short	$	(7,207,701)			(23.5	)%

	Number of Shares		Value†
DaVita HealthCare Partners, Inc.		79,200	$	9,397,080	*
				11,977,272
Hotels, Restaurants & Leisure (3.3%)
Arcos Dorados Holdings, Inc. Class A		273,700		3,727,794
Dunkin' Brands Group, Inc.		246,400		9,562,784
McDonald's Corp.		42,000		4,289,880
Wyndham Worldwide Corp.		43,700		2,625,496
				20,205,954
Household Durables (1.3%)
Lennar Corp. Class A		111,600		4,600,152
Newell Rubbermaid, Inc.		140,000		3,687,600
				8,287,752
Household Products (0.8%)
Procter & Gamble Co.		68,200		5,235,714
Independent Power Producers & Energy Traders (0.2%)
Brookfield Renewable Energy Partners LP		35,700		1,117,410
Industrial Conglomerates (0.9%)
3M Co.		26,300		2,753,873
General Electric Co.		136,600		3,044,814
				5,798,687
Internet & Catalog Retail (1.0%)
Vipshop Holdings Ltd. ADS		208,648		6,424,272	*
Internet Software & Services (3.1%)
eBay, Inc.		173,300		9,079,187	*
Facebook, Inc. Class A		89,100		2,473,416	*
Google, Inc. Class A		7,700		6,349,189	*
Vantiv, Inc. Class A		48,000		1,081,440	*
				18,983,232
IT Services (2.9%)
Genpact Ltd.		485,700		9,034,020	*

	Number of Shares		Value†
Visa, Inc. Class A		54,000	$	9,096,840
				18,130,860
Machinery (0.8%)
Ingersoll- Rand PLC		57,500		3,093,500
Trinity Industries, Inc.		42,600		1,798,146
				4,891,646
Media (0.2%)
Regal Entertainment Group Class A		72,000		1,291,680
Metals & Mining (0.8%)
Steel Dynamics, Inc.		255,500		3,842,720
Walter Energy, Inc.		75,200		1,347,584
				5,190,304
Multi-Utilities (1.0%)
NiSource, Inc.		95,200		2,925,496
Wisconsin Energy Corp.		74,300		3,339,042
				6,264,538
Multiline Retail (1.2%)
J.C. Penney Co., Inc.		79,400		1,303,748	*
Target Corp.		87,000		6,138,720
				7,442,468
Oil, Gas & Consumable Fuels (6.2%)
Alpha Natural Resources, Inc.		628,000		4,659,760	*
Cabot Oil & Gas Corp.		45,500		3,096,275
Enbridge, Inc.		166,708		7,935,301
Forest Oil Corp.		464,500		1,946,255	*
Inergy LP		13,600		299,064
Kinder Morgan, Inc.		17,000		664,700
MarkWest Energy Partners LP		43,000		2,717,600
Peabody Energy Corp.		243,000		4,874,580
Pioneer Natural Resources Co.		28,900		3,532,447
PVR Partners LP		23,900		597,500

	Number of Shares		Value†
Regency Energy Partners LP		53,300	$	1,391,130
Teekay Corp.		194,861		6,937,051
				38,651,663
Paper & Forest Products (0.5%)
International Paper Co.		68,000		3,194,640
Personal Products (0.9%)
Estee Lauder Cos., Inc. Class A		77,700		5,388,495
Pharmaceuticals (1.5%)
Bristol-Myers Squibb Co.		136,600		5,425,752
Pfizer, Inc.		136,500		3,968,055
				9,393,807
Professional Services (1.6%)
Nielsen Holdings NV		160,265		5,548,375
Verisk Analytics, Inc. Class A		71,542		4,384,809	*
				9,933,184
Real Estate Investment Trusts (2.0%)
General Growth Properties, Inc.		190,000		4,316,800
Weyerhaeuser Co.		269,800		8,231,598
				12,548,398
Real Estate Management & Development (1.3%)
Brookfield Asset Management, Inc. Class A		157,000		6,058,630
Brookfield Property Partners Ltd.		34,011		750,963	*
Forest City Enterprises, Inc. Class A		52,000		970,840	*
				7,780,433
Road & Rail (0.8%)
Canadian Pacific Railway Ltd.		39,500		4,922,490
Semiconductors & Semiconductor Equipment (1.0%)
Altera Corp.		187,500		6,001,875
Software (0.7%)
Activision Blizzard, Inc.		118,000		1,764,100

	Number of Shares		Value†
Oracle Corp.		68,400	$	2,242,152
				4,006,252
Specialty Retail (5.2%)
Asbury Automative Group, Inc.		118,900		4,766,701	*
Home Depot, Inc.		80,600		5,912,010
Monro Muffler Brake, Inc.		63,700		2,634,632
PetSmart, Inc.		165,200		11,273,248
Sally Beauty Holdings, Inc.		105,000		3,156,300	*
Tractor Supply Co.		41,300		4,426,121
				32,169,012
Textiles, Apparel & Luxury Goods (1.2%)
Michael Kors Holdings Ltd.		69,100		3,934,554	*
Wolverine World Wide, Inc.		78,200		3,735,614
				7,670,168
Tobacco (2.1%)
Lorillard, Inc.		97,500		4,181,775
Philip Morris International, Inc.		92,000		8,794,280
				12,976,055
Water Utilities (1.0%)
American Water Works Co., Inc.		147,100		6,160,548
Wireless Telecommunication Services (1.2%)
SBA Communications Corp. Class A		54,000		4,265,460	*
Sprint Nextel Corp.		455,000		3,207,750	*
				7,473,210
Total Common Stocks (Cost $361,473,932)				387,665,573
Preferred Stocks (0.5%)
Automobiles (0.1%)
General Motors Co., Ser. B, 4.75%		16,200		752,976

	Principal Amount			Value†
Sprint Nextel Corp., Senior Unsecured Notes, 8.38%, due 8/15/17	$	325,000		$	378,625
					8,874,963
Transportation (0.2%)
Swift Services Holdings, Inc., Secured Notes, 10.00%, due 11/15/18		1,335,000			1,528,575
Total Corporate Debt Securities (Cost $84,918,391)					87,583,207
	Number of Shares
Short-Term Investments (21.7%)
State Street Institutional Government Money Market Fund Institutional Class (Cost $134,657,822)		134,657,822			134,657,822	^ØØ
Total Long Positions (98.9%) (Cost $583,773,166)					612,896,812	^##
Cash, receivables and other assets, less liabilities (14.7%)					91,132,419^±
Short Positions (see summary below) ((13.6)%)					(84,522,280)
Total Net Assets (100.0%)				$	619,506,951
Short Positions ((13.6)%)
Common Stocks Sold Short (6.3%)^‡
Airlines (0.1%)
US Airways Group, Inc.		(50,000	)		(845,000	)*
Capital Markets (0.5%)
Federated Investors, Inc., Class B		(32,000	)		(734,720	)
Janus Capital Group, Inc.		(100,700	)		(898,244	)
Legg Mason, Inc.		(46,400	)		(1,478,304	)
					(3,111,268	)
Commercial Banks (0.3%)
SVB Financial Group		(28,200	)		(2,005,302	)*

	Number of Shares			Value†
Communications Equipment (0.2%)
F5 Networks, Inc.		(19,600	)	$	(1,498,028	)*
Computers & Peripherals (0.6%)
Lexmark International Group Class A		(48,900	)		(1,482,159	)
Seagate Technology PLC		(58,500	)		(2,146,950	)
					(3,629,109	)
Diversified Financial Services (0.3%)
Bank of America Corp.		(146,000	)		(1,797,260	)
Electronic Equipment, Instruments & Components (0.2%)
Corning, Inc.		(102,125	)		(1,480,812	)
Energy Equipment & Services (0.4%)
Halliburton Co.		(60,500	)		(2,587,585	)
Food Products (0.2%)
Dean Foods Co.		(46,000	)		(880,440	)*
Health Care Equipment & Supplies (0.7%)
Cochlear Ltd.		(10,000	)		(684,015	)
Intuitive Surgical, Inc.		(3,300	)		(1,624,557	)*
Zimmer Holdings, Inc.		(24,500	)		(1,873,025	)
					(4,181,597	)
Hotels, Restaurants & Leisure (0.4%)
Brinker International, Inc.		(14,300	)		(556,270	)
Chipotle Mexican Grill, Inc.		(1,800	)		(653,742	)*
Darden Restaurants, Inc.		(18,000	)		(929,340	)
					(2,139,352	)
Multiline Retail (0.3%)
Family Dollar Stores, Inc.		(31,175	)		(1,913,210	)
Professional Services (0.3%)
Dun & Bradstreet Corp.		(22,850	)		(2,021,083	)
Semiconductors & Semiconductor Equipment (1.1%)
Lam Research Corp.		(78,500	)		(3,628,270	)*

	Number of Shares			Value†
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		(105,000	)	$	(2,003,400	)
Xilinx, Inc.		(28,600	)		(1,084,226	)
					(6,715,896	)
Specialty Retail (0.3%)
Sonic Automotive, Inc. Class A		(72,300	)		(1,589,877	)
Textiles, Apparel & Luxury Goods (0.4%)
Fossil, Inc.		(27,000	)		(2,649,240	)*
Total Common Stocks Sold Short (Proceeds $(36,933,620))					(39,045,059)
Exchange Traded Funds Sold Short (7.3%)
Consumer Discretionary Select Sector SPDR Fund		(28,000	)		(1,529,080	)
Financial Select Sector SPDR Fund		(27,000	)		(504,900	)
Guggenheim S&P 500 Equal Weight ETF		(10,000	)		(606,500	)
iShares Core S&P Small-Cap ETF		(87,000	)		(7,562,040	)
iShares Dow Jones U.S. Real Estate Index Fund		(6,200	)		(455,452	)
iShares MSCI Brazil Index Fund		(17,550	)		(967,882	)
iShares Russell 2000 Index Fund		(78,500	)		(7,389,990	)
iShares Russell Midcap Index Fund		(150,200	)		(19,371,294	)
Market Vectors Semiconductor		(56,400	)		(2,089,620	)
SPDR S&P Retail ETF		(65,000	)		(4,775,550	)
Technology Select Sector SPDR Fund		(7,300	)		(224,913	)
Total Exchange Traded Funds Sold Short (Proceeds $(43,274,428))					(45,477,221	)
Total Short Positions (Proceeds $(80,208,048))					(84,522,280	)

† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by each of Neuberger Berman Dynamic Real Return Fund ("Dynamic Real Return"), Neuberger Berman Global Allocation Fund ("Global Allocation") and Neuberger Berman Long Short Fund ("Long Short") (each individually a "Fund," and collectively, the "Funds") are carried at the value that Neuberger Berman Management LLC ("Management") believes a fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Funds' investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.

• Level 1 – quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)

• Level 3 – significant unobservable inputs (including a Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.

The value of the Funds' investments (long and short positions) in equity securities, exchange traded funds, purchased option contracts and written option contracts, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted on a principal exchange or market for that security (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by a Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.

The value of the Funds' investments in debt securities is determined by Management primarily by obtaining valuations from independent pricing services based on readily available bid quotations, or if quotations are not available, by methods which include various considerations based on security type (generally Level 2 inputs). In addition to the consideration of yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions, the following is a description of other Level 2 inputs and related valuation techniques used by an independent pricing service to value certain types of debt securities of the Funds:

U.S. Treasury Securities. Inputs used to value U.S. Treasury securities generally include quotes from several inter-dealer brokers and Other Market Information.

Sovereign Debt. Inputs used to value sovereign debt generally include dealer quotes, bond market activity, discounted cash flow models, and other relevant information such as credit spreads, benchmark curves and Other Market Information.

The value of financial futures contracts is determined by obtaining valuations from independent pricing services at the settlement price at the market close (Level 1 inputs).

The value of forward foreign currency contracts is determined by obtaining valuations from an independent pricing service based on actual traded currency rates on an independent pricing service's network, along with other traded and quoted currency rates provided to the pricing service by leading market participants (Level 2 inputs).

The value of total return swaps is determined by obtaining valuations from an independent pricing service using the underlying index and stated LIBOR ("London Interbank Offered Rate") rate (Level 2 inputs).

Management has developed a process to periodically review information provided by independent pricing services for all types of securities.

Investments in investment companies are valued using the fund's daily calculated net asset value per share (Level 2 inputs).

If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount a Fund might reasonably expect to receive on a current sale in an orderly transaction, the applicable Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Alternative Funds' Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures, or ADRs and whether the issuer of the security being fair valued has other securities outstanding.

The value of the Funds' investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time. The Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that a Fund could expect to receive for those securities or on days when foreign markets are closed and U.S. markets are open. In each of these events, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices a fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade.

Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.

The following is a summary, categorized by Level, of inputs used to value the Funds' investments as of April 30, 2013:

Asset Valuation Inputs
	Level 1		Level 2		Level 3^§§		Total
Dynamic Real Return
Investments:
Common Stocks
Household Durables	$	26,695	$	—	$	14,280	$	40,975
Other Common Stocks^		5,743,204		—		—		5,743,204
Total Common Stocks		5,769,899		—		14,280		5,784,179
Government Securities^		—		2,194,149		—		2,194,149
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government		—		1,745,258		—		1,745,258
Mutual Funds		—		5,673,508		—		5,673,508
Short-Term Investments		—		256,727		—		256,727
Total Investments		5,769,899		9,869,642		14,280		15,653,821
Global Allocation
Investments:
Common Stocks^
United Kingdom		867,713		—		222,119		1,089,832
Other Common Stocks		6,380,834		—		—		6,380,834
Total Common Stocks		7,248,547		—		222,119		7,470,666
Short-Term Investments		—		19,403,331		—		19,403,331
Total Long Positions		7,248,547		19,403,331		222,119		26,873,997
Long Short
Investments:
Common Stocks^		387,665,573		—		—		387,665,573
Preferred Stocks^		2,990,210		—		—		2,990,210
Corporate Debt Securities^		—		87,583,207		—		87,583,207
Short-Term Investments		—		134,657,822		—		134,657,822
Total Long Positions		390,655,783		222,241,029		—		612,896,812

^ The Schedule of Investments provides information on the industry and/or country categorization for the portfolio.

§§ The following is a reconciliation between the beginning and ending balances of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Beginning balance, as of 11/1/12		Accrued discounts/ (premiums)		Realized gain/loss		Change in unrealized appreciation/ (depreciation)			Purchases		Sales		Transfers in to Level 3		Transfers out of Level 3		Balance, as of 4/30/13		Net change in unrealized appreciation/ (depreciation) from investments still held as of 4/30/13
Investments in Securities:
Dynamic Real Return
Common Stocks
Household Durables	$	—	$	—	$	—	$	1,480		$	12,800	$	—	$	—	$	—	$	14,280	$	1,480
Total	$	—	$	—	$	—	$	1,480		$	12,800	$	—	$	—	$	—	$	14,280	$	1,480
Global Allocation
Common Stocks
United Kingdom	$	—	$	—	$	—	$	(20,463	)	$	157,308	$	—	$	85,274	$	—	$	222,119	$	(20,463	)
Total	$	—	$	—	$	—	$	(20,463	)	$	157,308	$	—	$	85,274	$	—	$	222,119	$	(20,463	)

The following is a summary, categorized by Level, of inputs used to value the Funds' derivatives as of April 30, 2013:

	Level 1		Level 2		Level 3		Total
Dynamic Real Return
Futures contracts (unrealized appreciation)	$	8,096	$	—	$	—	$	8,096
Total	$	8,096	$	—	$	—	$	8,096
Global Allocation
Forward contracts (unrealized appreciation)	$	—	$	29,918	$	—	$	29,918
Futures contracts (unrealized appreciation)		1,510,523		—		—		1,510,523
Total return swaps (unrealized appreciation)		—		301,434		—		301,434
Total	$	1,510,523	$	331,352	$	—	$	1,841,875

The following is a summary, categorized by Level, of inputs used to value the Funds' investments as of April 30, 2013:

Liability Valuation Inputs
	Level 1		Level 2		Level 3		Total
Global Allocation
Common Stocks Sold Short^	$	(7,207,701)	$	—	$	—	$	(7,207,701)
Total	$	(7,207,701)	$	—	$	—	$	(7,207,701)
Long Short
Common Stocks Sold Short^	$	(39,045,059)	$	—	$	—	$	(39,045,059)
Exchange Traded Funds Sold Short		(45,477,221)		—		—		(45,477,221)
Total	$	(84,522,280)	$	—	$	—	$	(84,522,280)

^ The Schedule of Investments provides information on the industry and/or country categorization for the portfolio.

	Level 1			Level 2			Level 3		Total
Dynamic Real Return
Futures contracts (unrealized depreciation)	$	(3,229	)	$	—		$	—	$	(3,229	)
Total	$	(3,229	)	$	—		$	—	$	(3,229	)
Global Allocation
Forward contracts (unrealized depreciation)	$	—		$	(61,253	)	$	—	$	(61,253	)
Futures contracts (unrealized depreciation)		(382,348	)		—			—		(382,348	)
Total	$	(382,348	)	$	(61,253	)	$	—	$	(443,601	)
Long Short
Futures contracts (unrealized depreciation)	$	(1,859,704	)	$	—		$	—	$	(1,859,704	)
Total	$	(1,859,704	)	$	—		$	—	$	(1,859,704	)

The Funds had no transfers between Levels 1 and 2 during the six months ended April 30, 2013. As of April 30, 2013, one security in Global Allocation transferred from Level 1 to Level 3 as a result of a decrease in the number of observable quotations that were readily available to the independent pricing service.

## At April 30, 2013, selected fund information on a U.S. federal income tax basis was as follows:

	Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
Dynamic Real Return	$	15,248,531	$	519,000	$	113,710	$	405,290
Global Allocation		26,248,540		793,926		168,469		625,457
Long Short		584,445,979		34,349,391		5,898,558		28,450,833

* Security did not produce income during the last twelve months.

ñ Securities were purchased under Rule 144A of the Securities Act of 1933, as amended (the "1933 Act"), or are private placements and, unless registered under the 1933 Act or exempted from registration, may only be sold to qualified institutional investors. These securities have been deemed by the investment manager to be liquid. At April 30, 2013, these securities amounted to $14,280 or 0.1% of net assets for Dynamic Real Return.

È All or a portion of this security is on loan.

ØØ All or a portion of this security is segregated in connection with obligations for common stocks sold short and/or forward foreign currency contracts and/or total return swap contracts and/or financial futures contracts.

§ Affiliated issuer.

‡ At April 30, 2013, Global Allocation had deposited $7,464,935 in a segregated account to cover collateral requirements for borrowing in connection with securities sold short. This collateral is made up of the proceeds from the securities sold short and collateral received from security lending activities. At April 30, 2013, Long Short had deposited $88,453,506 in a segregated account to cover collateral requirements for borrowing in connection with securities sold short.

Neuberger Berman Alternative Funds

	DYNAMIC REAL RETURN FUND			GLOBAL ALLOCATION FUND			LONG SHORT FUND
	April 30, 2013			April 30, 2013			April 30, 2013
Assets
Investments in securities, at value*† (Notes A & F)— see Schedule of Investments:
Unaffiliated issuers	$	9,980,313		$	26,873,997		$	612,896,812
Affiliated issuers		5,673,508			—			—
		15,653,821			26,873,997			612,896,812
Cash		—			—			11,378
Foreign currency		22,978			176,931			743,843
Deposits with brokers for short sales (Note A-11)		—			7,247,455			88,453,506
Deposits with brokers for futures contracts (Note A-14)		3,888			1,974,430			3,220,777
Dividends and interest receivable		28,514			7,645			1,720,493
Receivable for securities sold		—			—			2,578,640
Receivable for Fund shares sold		40,056			1,439,277			19,193,818
Receivable from Management—net (Note B)		29,732			26,289			—
Total return swaps, at value (Note A-14)		—			301,434			—
Cash collateral for securities loaned (Note A-12)		—			217,491			—
Receivable for variation margin (Note A-14)		31			11,366			141,467
Receivable for open forward foreign currency contracts (Note A-14)		—			29,918			—
Prepaid expenses and other assets		4,919			33,092			58,917
Total Assets		15,783,939			38,339,325			729,019,651
Liabilities
Investments sold short, at value (Note A) (proceeds $7,356,294 and $80,208,048, respectively)		—			7,207,701			84,522,280
Dividends payable for short sales		—			6,449			14,518
Payable for collateral on securities loaned (Note A-12)		—			217,491			—
Payable to investment manager (Note B)		4,922			14,573			526,429
Payable for securities purchased		11,534			—			20,106,176
Payable for Fund shares redeemed		—			—			3,998,386
Payable to administrator—net (Note B)		—			—			193,981
Payable to trustees		1,609			1,509			1,509
Payable for open forward foreign currency contracts (Note A-14)		—			61,253			—
Accrued expenses and other payables		51,387			116,085			149,421
Total Liabilities		69,452			7,625,061			109,512,700
Net Assets	$	15,714,487		$	30,714,264		$	619,506,951
Net Assets consist of:
Paid-in capital	$	15,268,967		$	28,934,699		$	594,880,204
Undistributed net investment income (loss)		63,519			—			95,842
Distributions in excess of net investment income		—			(21,141	)		—
Accumulated net realized gains (losses) on investments		(28,284	)		(376,952	)		1,579,177
Net unrealized appreciation (depreciation) in value of investments		410,285			2,177,658			22,951,728
Net Assets	$	15,714,487		$	30,714,264		$	619,506,951
Net Assets
Institutional Class	$	15,500,447		$	15,952,312		$	375,415,740
Class A		106,661			10,068,348			200,738,426
Class C		107,379			4,693,604			43,352,785

Neuberger Berman Alternative Funds (cont'd)

	DYNAMIC REAL RETURN FUND		GLOBAL ALLOCATION FUND		LONG SHORT FUND
	April 30, 2013		April 30, 2013		April 30, 2013
Shares Outstanding ($.001 par value; unlimited shares authorized)
Institutional Class		1,486,858		1,422,058		31,734,570
Class A		10,246		900,730		17,037,834
Class C		10,343		423,248		3,710,505
Net Asset Value, offering and redemption price per share
Institutional Class	$	10.42	$	11.22	$	11.83
Net Asset Value and redemption price per share
Class A	$	10.41	$	11.18	$	11.78
Offering Price per share
Class A‡	$	11.05	$	11.86	$	12.50
Net Asset Value and offering price per share
Class C^	$	10.38	$	11.09	$	11.68
†Securities on loan, at value:
Unaffiliated issuers	$	—	$	211,131	$	—
*Cost of Investments
Unaffiliated issuers	$	9,552,764	$	26,242,879	$	583,773,166
Affiliated issuers		5,695,767		—		—
Total cost of investments	$	15,248,531	$	26,242,879	$	583,773,166
Total cost of foreign currency	$	22,882	$	177,093	$	736,258

‡ On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the Fund's prospectus, offering price is reduced.

^ Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

Neuberger Berman Alternative Funds

	DYNAMIC REAL RETURN FUND			GLOBAL ALLOCATION FUND			LONG SHORT FUND
	Period from December 19, 2012 (Commencement of Operations) to April 30, 2013			For the Six Months Ended April 30, 2013			For the Six Months Ended April 30, 2013
Investment Income:
Income (Note A):
Dividend income—unaffiliated issuers	$	28,001		$	99,629		$	1,704,907
Dividend income—affiliated issuers (Note F)		44,267			—			—
Interest income—unaffiliated issuers		13,153			1,322			1,736,807
Income from securities loaned—net (Note A-12)		—			1,322			—
Foreign taxes withheld		(29	)		(2,012	)		(17,187	)
Total income	$	85,392		$	100,261		$	3,424,527
Expenses:
Investment management fees (Note B)		20,622			83,460			1,808,579
Administration fees (Note B)		1,904			6,304			91,058
Administration fees (Note B):
Institutional Class		2,788			5,182			85,928
Class A		75			6,240			95,849
Class C		76			3,256			16,728
Distribution fees (Note B):
Class A		94			7,800			119,812
Class C		379			16,282			83,639
Shareholder servicing agent fees:
Institutional Class		1,816			581			8,730
Class A		1,561			655			12,312
Class C		1,556			299			1,140
Organization expense (Note A-8)		212,980			—			—
Audit fees		17,621			34,349			15,912
Custodian fees		18,673			60,726			57,779
Insurance expense		—			1,107			842
Legal fees		34,616			88,453			46,574
Registration and filing fees		3,751			37,138			83,648
Reimbursement of expenses previously assumed by Management (Note B)		—			—			60,230
Shareholder reports		8,391			538			24,343
Trustees' fees and expenses		12,991			23,628			23,628
Short sales expense (Note A-11)		—			77,268			368,967
Miscellaneous		1,046			5,060			6,038
Total expenses		340,940			458,326			3,011,736
Expenses reimbursed by Management (Note B)		(311,560	)		(261,833	)		—
Investment management fees waived (Note A-16)		(7,507	)		—			—
Expenses reduced by custodian fee expense offset arrangement (Note A-17)		—			(16	)		(48	)
Total net expenses		21,873			196,477			3,011,688
Net investment income (loss)	$	63,519		$	(96,216	)	$	412,839

Neuberger Berman Alternative Funds (cont'd)

	DYNAMIC REAL RETURN FUND			GLOBAL ALLOCATION FUND			LONG SHORT FUND
	Period from December 19, 2012 (Commencement of Operations) to April 30, 2013			For the Six Months Ended April 30, 2013			For the Six Months Ended April 30, 2013
Realized and Unrealized Gain (Loss) on Investments (Note A):
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		13,705			336,730			4,945,782
Sales of investment securities of unaffiliated issuers sold short		—			(245,330	)		(916,593	)
Forward foreign currency contracts		—			28,737			—
Foreign currency		(5,444	)		(1,195	)		(6,339	)
Financial futures contracts		(36,545	)		(915,532	)		(2,240,384	)
Total return swap contracts		—			1,128,589			—
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		405,290			592,389			27,356,146
Unaffiliated investment securities sold short		—			(34,563	)		(4,331,821	)
Forward foreign currency contracts		—			(27,618	)		—
Foreign currency		128			348			2,004
Financial futures contracts		4,867			1,115,465			(2,038,901	)
Total return swap contracts		—			386,466			—
Net gain (loss) on investments		382,001			2,364,486			22,769,894
Net increase (decrease) in net assets resulting from operations	$	445,520		$	2,268,270		$	23,182,733

Neuberger Berman Alternative Funds

	DYNAMIC REAL RETURN FUND			GLOBAL ALLOCATION FUND						LONG SHORT FUND
	Period from December 29, 2012 (Commencement of Operations) to April 30, 2013			Six Months Ended April 30, 2013 (Unaudited)			Year Ended October 31, 2012 (Unaudited)			Six Months Ended April 30, 2013			Period from December 29, 2011 (Commencement of Operations) to October 31, 2012 (Unaudited)
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	63,519		$	(96,216	)	$	(189,871	)	$	412,839		$	105,627
Net realized gain (loss) on investments		(28,284	)		331,999			530,075			1,782,466			659,165
Change in net unrealized appreciation (depreciation) of investments		410,285			2,032,487			(189,034	)		20,987,428			1,964,300
Net increase (decrease) in net assets resulting from operations		445,520			2,268,270			151,170			23,182,733			2,729,092
Distributions to Shareholders From (Note A):
Net investment income:
Institutional Class		—			(158,784	)		(126,485	)		(314,298	)		—
Class A		—			(62,020	)		(3,706	)		(105,289	)		—
Class C		—			(11,158	)		(1,337	)		(3,759	)		—
Net realized gain on investments:
Institutional Class		—			—			(426,028	)		(580,685	)		—
Class A		—			—			(13,551	)		(246,351	)		—
Class C		—			—			(5,721	)		(35,045	)		—
Total distributions to shareholders		—			(231,962	)		(576,828	)		(1,285,427	)		—
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Institutional Class		15,067,982			7,080,742			15,325,607			291,663,264			92,669,640
Class A		102,500			6,781,458			9,666,922			176,218,196			26,973,514
Class C		103,500			2,254,916			2,100,306			39,266,031			3,294,397
Proceeds from reinvestment of dividends and distributions:
Institutional Class		—			157,181			552,345			853,873			—
Class A		—			51,292			17,256			293,006			—
Class C		—			10,981			7,058			17,797			—
Payments for shares redeemed:
Institutional Class		(5,015	)		(1,282,083	)		(12,348,482	)		(23,365,157	)		(2,540,314	)
Class A		—			(808,234	)		(6,391,944	)		(9,850,106	)		(161,483	)
Class C		—			(55,372	)		(9,541	)		(452,105	)		—
Net increase (decrease) from Fund share transactions		15,268,967			14,190,881			8,919,527			474,644,799			120,235,754
Net Increase (Decrease) in Net Assets		15,714,487			16,227,189			8,493,869			496,542,105			122,964,846
Net Assets:
Beginning of period		—			14,487,075			5,993,206			122,964,846			—
End of period	$	15,714,487		$	30,714,264		$	14,487,075		$	619,506,951		$	122,964,846
Undistributed net investment income (loss) at end of period	$	63,519		$	—		$	307,037		$	95,842		$	106,349
Distributions in excess of net investment income at end of period	$	—		$	(21,141	)	$	—		$	—		$	—

Note A—Summary of Significant Accounting Policies:

1 General: Neuberger Berman Alternative Funds (the "Trust") is a Delaware statutory trust organized pursuant to an Amended and Restated Trust Instrument dated October 14, 2010. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended (the "1933 Act"). Each Fund is a separate operating series of the Trust and is non-diversified. Long Short had no operations until December 29, 2011, other than matters relating to its organization and registration of shares under the 1933 Act. Dynamic Real Return had no operations until December 19, 2012, other than matters relating to its organization and registration of shares under the 1933 Act. Each Fund offers Institutional Class shares, Class A shares and Class C shares. The Board may establish additional series or classes of shares without the approval of shareholders.

The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.

2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Funds' Schedule of Investments.

3 Foreign currency translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time, to determine the value of investments, other assets and liabilities. Purchase and sale prices of securities, and income and expenses, are translated into U.S. dollars at the prevailing rate of exchange on the respective dates of such transactions. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statements of Operations.

4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Dividend income is recorded on the ex-dividend date or, for certain foreign dividends, as soon as the Fund becomes aware of the dividends. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including accretion of discount on securities for Long Short, accretion of original issue discount, where applicable, and accretion of discount on short-term investments, if any, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statements of Operations.

5 Income tax information: Each Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of Global Allocation and Long Short to continue to, and the intention of Dynamic Real Return to, qualify for treatment as a regulated investment company by complying with the requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent a Fund distributes substantially all of its net investment income and net realized capital gains to shareholders, no federal income or excise tax provision is required.

The Funds have adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Funds recognize interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statements of Operations. As of April 30, 2013, the Funds did not have any unrecognized tax positions.

As determined on October 31, 2012, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences may be attributed to one or more of the following: accounting for passive foreign investment companies gains and losses, §988 reclass on closed futures, foreign currency gains and losses, non-deductible Rule 12b-1 fees, the characterization of distributions from real estate investment trusts ("REITs"), short sale dividend expense reclass and income recognized on total return swaps. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of each Fund. For the year ended October 31, 2012, the Funds recorded the following permanent reclassifications:

	Paid-in Capital			Undistributed Net Investment Income (Loss)		Accumulated Net Realized Gains (Losses) on Investments
Global Allocation	$	(1	)	$	758,346	$	(758,345	)
Long Short		(349	)		722		(373	)

For tax purposes, distributions of short-term gains are taxable to shareholders as ordinary income.

The tax character of distributions paid during the years ended October 31, 2012 and October 31, 2011 was as follows:

	Distributions Paid From:
	Ordinary Income						Tax-Exempt Income						Long-Term Capital Gain						Return of Capital						Total
	2012			2011			2012			2011			2012			2011			2012			2011			2012			2011
Global Allocation	$	561,328		$	—	⁽¹⁾	$	—		$	—	⁽¹⁾	$	15,500		$	—	⁽¹⁾	$	—		$	—	⁽¹⁾	$	576,828		$	—	⁽¹⁾
Long Short		—	⁽²⁾		—			—	⁽²⁾		—			—	⁽²⁾		—			—	⁽²⁾		—			—	⁽²⁾		—

(1) Period from December 29, 2010 (Commencement of Operations) to October 31, 2011.

(2) Period from December 29, 2011 (Commencement of Operations) to October 31, 2012.

As of October 31, 2012, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:

	Undistributed Ordinary Income		Undistributed Long-Term Gain		Unrealized Appreciation (Depreciation)		Loss Carryforwards and Deferrals			Other Temporary Differences			Total
Global Allocation	$	231,894	$	—	$	69,076	$	(634,843	)	$	77,130		$	(256,743	)
Long Short		1,014,039		—		1,761,252		—			(45,850	)		2,729,441

The difference between book basis and tax basis distributable earnings are primarily due to: timing differences of wash sales, organization expenses, passive foreign investment companies, forward contracts mark to market, mark to market on certain futures contract transactions, mark to market on certain swap contract transactions, short sales settlement date loss deferral, current year straddle losses deferred and accrued swap income not recognized on total return swaps.

To the extent each Fund's net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of each Fund not to distribute such gains. The Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") became effective for Global Allocation on November 1, 2011, Long Short on December 29, 2011 and Dynamic Real Return on December 19, 2012 (Commencement of Operations). The Act modernizes several of the federal income and excise tax provisions related to RICs. Among the changes made are changes to the capital loss

carryforward rules allowing for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term ("Post-Enactment"). Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character. As determined at October 31, 2012, Global Allocation had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:

	Post-Enactment (No Expiration Date)
	Long-Term		Short-Term
Global Allocation	$	—	$	634,843

6 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.

7 Distributions to shareholders: Each Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in December) and are recorded on the ex-date.

8 Organization expenses: Costs incurred by Dynamic Real Return in connection with its organization, which amounted to $212,980, have been expensed as incurred.

9 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Fund are charged to that Fund. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., a Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the investment companies in the complex or series thereof can otherwise be made fairly. Each Fund's expenses (other than those specific to each class) are allocated proportionally each day among the classes based upon the relative net assets of each class.

10 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.

11 Securities sold short: Each Fund may engage in short sales, which are sales of securities which have been borrowed from a third party on the expectation that the market price will decline. If the price of the securities decreases, a Fund will make a profit by purchasing the securities in the open market at a price lower than the one at which it sold the securities. If the price of the securities increases, a Fund may have to cover its short positions at a price higher than the short sale price, resulting in a loss. Gains are limited to the price at which a Fund sold the security short, while losses are potentially unlimited in size. The Funds pledge securities and/or other assets, which may include cash collateral from securities lending activities, to the lender as collateral. Proceeds received from short sales may be maintained by the lender as collateral or may be released to the Funds and used to purchase additional securities or for any other purpose. Proceeds maintained by the lender are included in the "Deposit with brokers for short sales" on the Statements of Assets and Liabilities. The Funds are required to segregate an amount of cash, cash equivalents or other appropriate liquid marketable securities with the custodian in at least an amount equal to the current market value of the securities sold short (less any additional collateral held by the lender) and,

for Global Allocation, the amount of any securities lending cash collateral used to finance short sales until the Fund replaces a borrowed security. The Funds are contractually responsible to the lender for any dividends payable on securities while those securities are in a short position. These dividends are recorded as an expense of the Funds. As of April 30, 2013, Global Allocation had pledged cash in the amount of $7,247,455 to State Street Bank and Trust Company ("State Street"), as collateral for short sales, in addition to cash collateral received from securities lending activities for the Fund. In addition, State Street has a perfected security interest in these Global Allocation assets. At April 30, 2013, Long Short had pledged cash in the amount of $88,453,506 to State Street to cover collateral requirements for borrowing in connection with securities sold short.

12 Security lending: Each of Global Allocation and Long Short, using State Street as its lending agent, may loan securities to qualified brokers and dealers in exchange for negotiated lender's fees. These fees disclosed within the Statements of Operations under the caption, "Income from securities loaned-net" are net of expenses retained by State Street as compensation for its services as lending agent. For the six months ended April 30, 2013, Global Allocation received net income under the securities lending arrangement of $1,322. The Funds receive cash collateral at the beginning of each transaction equal to at least 102% of the prior day's market value of the loaned securities (105% in the case of international securities). Some or all of the cash collateral may be used to finance short sales. As of April 30, 2013, approximately 100% of the cash collateral received by Global Allocation was used to finance short sales.

As of April 30, 2013, Global Allocation had outstanding loans of securities to certain approved brokers for which it received collateral as follows:

				Value of Loaned Securities				Value of Collateral
Global Allocation				$	211,131			$	217,491

13 Investment company securities and exchange-traded funds: The Funds invests in shares of other registered investment companies, including exchange-traded funds ("ETFs"), within the limitations prescribed by the 1940 Act. Some ETFs seek to track the performance of a particular market index. These indices include both broad-based market indices and more narrowly-based indices, including those relating to particular sectors, markets, regions or industries. However, some ETFs have an actively-managed investment objective. ETF shares are traded like traditional equity securities on a national securities exchange or NASDAQ. A Fund will indirectly bear its proportionate share of any management fees and other expenses paid by such other investment companies, which will increase expenses and decrease returns.

14 Derivative instruments: During the six months ended April 30, 2013, the Funds' use of derivatives, as described below for each Fund, was limited to total return swaps, financial futures contracts, forward foreign currency contracts, and purchased option transactions. The Funds have adopted the provisions of ASC 815 "Derivatives and Hedging" ("ASC 815"). The disclosure requirements of ASC 815 distinguish between derivatives that qualify for hedge accounting and those that do not. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they do not qualify for hedge accounting. Accordingly, even though a Fund's investments in derivatives may represent economic hedges, they are considered non-hedge transactions for purposes of this disclosure.

Total return swap contracts: During the six months ended April 30, 2013, Global Allocation used total return swaps to provide investment exposure to the benchmark indices. Total return swaps involve commitments to pay fixed or floating rate interest in exchange for a market-linked return based on a notional amount. To the extent the total return of the reference security or index underlying the total return swap exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment or make a payment to the counterparty, respectively. Certain risks may arise when entering into swap transactions, including counterparty default, liquidity or unfavorable changes in the value of the underlying reference security or index. The value of the swap is adjusted daily and the change in value, if any, is recorded as unrealized appreciation or depreciation in the Statements of Assets and Liabilities. Payments received or made at the end of each measurement period are recorded as realized gain or loss in the Statements of Operations.

At April 30, 2013, the outstanding total return swap contracts for Global Allocation were as follows:

				Rate Type
Swap Counterparty	Notional Amount⁽¹⁾		Termination Date	Variable-rate Payments Made/ (Received) by the Fund			Reference Entity	Accrued Net Interest Receivable (Payable)			Unrealized Appreciation (Depreciation)		Total Fair Value
J.P. Morgan	$	7,840,514	January 7, 2014		.790	%⁽²⁾	J.P. Morgan Global Government Bond Total Return Index Unhedged	$	(3,787	)	$	79,424	$	75,637
J.P. Morgan		12,460,716	January 15, 2014		.008	%⁽³⁾	MSCI Daily Total Return Net World Index		(48	)		225,845		225,797
Totals								$	(3,835	)	$	305,269	$	301,434

(1) The notional amount at period end is indicative of the volume throughout the period.

(2) 1 month LIBOR plus .59% at April 5, 2013.

(3) 1 month LIBOR minus .19% at April 11, 2013.

Financial futures contracts: During the period ended April 30, 2013, Dynamic Real Return entered into financial futures contracts for economic hedging purposes, including as a maturity or duration management device. During the six months ended April 30, 2013, Global Allocation entered into financial futures contracts in an effort to enhance returns and to manage or adjust the risk profile and the investment exposure of the Fund to certain asset classes, countries and regions, including adjusting the investment exposures provided by the Fund's total return swaps, described above, to the benchmark indices. In addition, Global Allocation utilized financial futures contracts to provide investment exposure to certain indices and markets other than the benchmark indices. During the six months ended April 30, 2013, Long Short entered into financial futures contracts on the broader market index and U.S. Treasuries in an effort either to enhance returns or to manage or adjust the risk profile and the investment exposure of the Fund.

At the time a Fund enters into a financial futures contract, it is required to deposit with the futures commission merchant a specified amount of cash or liquid securities, known as "initial margin," which is a percentage of the value of the financial futures contract being traded that is set by the exchange upon which the futures contract is traded. Each day, the futures contract is valued at the official settlement price of the board of trade or U.S. commodity exchange on which such futures contract is traded. Subsequent payments, known as "variation margin," to and from the broker are made on a daily basis as the market price of the financial futures contract fluctuates. Daily variation margin adjustments, arising from this "mark to market," are recorded by a Fund as unrealized gains or losses.

Although some financial futures contracts by their terms call for actual delivery or acquisition of the underlying securities or currency, in most cases the contracts are closed out prior to delivery by offsetting purchases or sales of matching financial futures contracts. When the contracts are closed, a Fund recognizes a gain or loss. Risks of entering into futures contracts include the possibility there may be an illiquid market, possibly at a time of rapidly declining prices, and/or a change in the value of the contract may not correlate with changes in the value of the underlying securities. Futures executed on regulated futures exchanges have minimal counterparty risk to a fund because the exchange's clearinghouse assumes the position of the counterparty in each transaction. Thus, a Fund is exposed to risk only in connection with the clearinghouse and not in connection with the original counterparty to the transaction.

For U.S. federal income tax purposes, the futures transactions undertaken by a Fund may cause that Fund to recognize gains or losses from marking contracts to market even though its positions have not been sold or

terminated, may affect the character of the gains or losses recognized as long-term or short-term, and may affect the timing of some capital gains and losses realized by the Fund. Also, a Fund's losses on transactions involving futures contracts may be deferred rather than being taken into account currently in calculating such Fund's taxable income.

At April 30, 2013, open positions in financial futures contracts were:

Fund

Expiration

Open Contracts

Position

Unrealized
Appreciation
(Depreciation)

Dynamic Real Return

June 2013

1 Euro Currency

Short

(3,229

)

Dynamic Real Return

June 2013

2 GBP Currency

Long

6,122

Dynamic Real Return

June 2013

1 Canadian Currency

Long

1,726

Dynamic Real Return

September 2014

1 Canada Bankers Accept, 3 month

Long

248

Total

4,867

Global Allocation

May 2013

8 Hang Seng Index Future

Short

(9,568

)

Global Allocation

June 2013

48 Canadian Currency

Short

(42,637

)

Global Allocation

June 2013

29 Euro Currency

Short

(102,197

)

Global Allocation

June 2013

14 Euro STOXX 50 Index

Short

(4,407

)

Global Allocation

June 2013

22 German Euro Bund

Short

(29,007

)

Global Allocation

June 2013

59 Mini Japanese Government Bond, 10 Year

Short

49,581

Global Allocation

June 2013

21 MSCI Emerging Market Muni

Short

(20,737

)

Global Allocation

June 2013

49 Australian Dollar

Long

40,807

Global Allocation

June 2013

64 Australian Treasury Bond, 10 Year

Long

203,841

Global Allocation

June 2013

7 Government of Canada Bond, 10 Year

Long

10,434

Global Allocation

June 2013

4 Canadian Currency

Long

5,210

Global Allocation

June 2013

24 CHF Currency

Long

59,241

Global Allocation

June 2013

10 Euro Currency

Long

13,673

Global Allocation

June 2013

22 Euro STOXX 50 Index

Long

9,623

Global Allocation

June 2013

55 FTSE 100 Index

Long

690

Global Allocation

June 2013

17 GBP Currency

Long

43,166

Global Allocation

June 2013

5 German Euro Bund

Long

19,733

Global Allocation

June 2013

48 Japanese Yen

Long

(122,707

)

Global Allocation

June 2013

8 Mini Japanese Government Bond, 10 Year

Long

(1,769

)

Global Allocation

June 2013

12 S&P TSX 60 Index

Long

(49,319

)

Global Allocation

June 2013

45 S&P 500 E-Mini Index

Long

69,789

Global Allocation

June 2013

9 SPI 200 Index

Long

38,723

Global Allocation

June 2013

28 Topix Index

Long

490,473

Global Allocation

June 2013

53 UK Long Gilt Bond

Long

325,742

Global Allocation

June 2013

80 US Treasury Note, 10 Year

Long

129,797

Total

1,128,175

Long Short

June 2013

831 S&P 500 E-Mini Index

Short

(1,531,385

)

Long Short

June 2013

205 US Treasury Note, 10 Year

Short

(328,319

)

Total

(1,859,704

)

During the period ended April 30, 2013, the average notional value of financial futures contracts was:

	Long positions		Short positions
Dynamic Real Return	$	272,814	$	(380,485	)
Global Allocation	$	30,755,294	$	(20,210,523	)
Long Short	$	—	$	(45,374,942	)

At April 30, 2013, the notional value of financial futures contracts was:

	Long positions		Short positions
Dynamic Real Return	$	538,165	$	(164,575	)
Global Allocation	$	65,834,227	$	(25,279,468	)
Long Short	$	—	$	(93,494,582	)

At April 30, 2013, the Funds had deposited the following in segregated accounts to cover margin requirements on open futures contracts:

Dynamic Real Return	$	3,888
Global Allocation	$	1,974,430
Long Short	$	3,220,777

Forward foreign currency contracts: During the six months ended April 30, 2013, Global Allocation entered into forward foreign currency contracts ("forward contract") to manage or adjust the risk profile and investment exposure of the Fund, including altering investment exposures to certain currencies provided by the Fund's total return swaps, described above.

A forward contract is an agreement between two parties to buy or sell a specific currency for another at a set price on a future date, which is individually negotiated and privately traded by currency traders and their customers in the interbank market. The market value of a forward contract fluctuates with changes in forward currency exchange rates. Forward contracts are marked to market daily, and the change in value is recorded by the Fund as an unrealized gain or loss. At the consummation of a forward contract to purchase or sell currency, a Fund may either exchange the currencies specified at the maturity of a forward contract or enter into a closing transaction involving the purchase or sale of an offsetting forward contract. Closing transactions with respect to forward contracts are usually performed with the counterparty to the original forward contract. The gain or loss arising from the difference between the US dollar cost of the original contract and the value of the foreign currency in US dollars upon closing a contract is included in "Net realized gain (loss) from forward foreign currency contracts" in the Statements of Operations. These contracts may involve market risk in excess of the unrealized gain or loss reflected in a Fund's Statement of Assets and Liabilities. In addition, a Fund could be exposed to risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably to the US dollar.

At April 30, 2013, open forward contracts for Global Allocation were as follows:

Buy	Counterparty	Contracts to Receive		In Exchange For		Settlement Date	Value		Net Unrealized Appreciation (Depreciation)
Brazilian Real	Goldman Sachs		531,890	$	262,532	5/16/13	$	265,447	$	2,915
Chilean Peso	Goldman Sachs		332,014,815		697,950	5/16/13		703,674		5,724
New Taiwan Dollar	JP Morgan Chase		21,554,925		722,229	5/16/13		730,498		8,269
South African Rand	JP Morgan Chase		3,875,154		418,076	5/16/13		431,086		13,010
Total									$	29,918
Sell	Counterparty	Contracts to Deliver		In Exchange For		Settlement Date	Value		Net Unrealized Appreciation (Depreciation)
Czech Koruna	Barclays		10,219,834	$	505,320	5/16/13	$	521,802	$	(16,482	)
Hungarian Forint	Morgan Stanley		147,301,609		622,445	5/16/13		647,209		(24,764	)
Idonesian Rupiah	JP Morgan Chase		1,427,595,400		145,673	5/16/13		146,587		(914	)
South Korean Won	Barclays		413,885,955		368,718	5/16/13		375,637		(6,919	)
Mexican Peso	Barclays		1,712,156		138,203	5/16/13		140,856		(2,653	)
Polish Zloty	Goldman Sachs		821,224		250,526	5/16/13		259,701		(9,175	)
Singapore Dollar	Morgan Stanley		86,196		69,635	5/16/13		69,981		(346	)
Total									$	(61,253	)

For the six months ended April 30, 2013, Global Allocation's investment in forward contracts had an average value of $3,216,031.

Options: Premiums received by a Fund upon writing a covered call option or a put option are recorded in the liability section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the liability is eliminated.

When writing a covered call option, a Fund, in return for the premium, gives up the opportunity for profit from a price increase in the underlying security above the exercise price, but conversely retains the risk of loss should the price of the security decline. When writing a put option, a Fund, in return for the premium, takes the risk that it must purchase the underlying security at a price that may be higher than the current market price of the security. If a covered call or a put option that a Fund has written expires unexercised, the Fund will realize a gain in the amount of the premium. All securities covering outstanding written options are held in escrow by the custodian bank.

There were no written option transactions for Long Short for the six months ended April 30, 2013.

Premiums paid by a Fund upon purchasing a call or put option are recorded in the asset section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the asset is eliminated.

For purchased call options, a Fund's loss is limited to the amount of the option premium paid.

Purchased option transactions were used either for hedging purposes or in an attempt to generate incremental returns for Long Short for the six months ended April 30, 2013. Purchased option transactions for Long Short for the six months ended April 30, 2013 were:

Long Short

	Number			Value When Purchased
Contracts outstanding 10/31/2012		100		$	21,650
Contracts purchased		2,605			205,425
Contracts expired		(1,730	)		(165,102	)
Contracts exercised		(250	)		(15,606	)
Contracts closed		(725	)		(46,367	)
Contracts outstanding 4/30/2013		—		$	—

For the six months ended April 30, 2013, Long Short had an average market value of $18,107 in purchased options.

At April 30, 2013, the Funds had the following derivatives (which did not qualify as hedging instruments under ASC 815), grouped by primary risk exposure:

	Asset Derivatives
Derivative Type	Statements of Assets and Liabilities Location	Interest Rate Risk		Currency Risk		Equity Risk		Total
Dynamic Real Return
Futures contracts	Receivable/Payable for variation margin⁽²⁾	$	248	$	7,848	$	—	$	8,096
Total Value—Assets		$	248	$	7,848	$	—	$	8,096

Derivative Type	Statements of Assets and Liabilities Location	Interest Rate Risk			Currency Risk			Equity Risk			Total
Global Allocation
Swap contracts	Total return swaps, at value⁽¹⁾	$	—		$	—		$	301,434		$	301,434
Futures contracts	Receivable/Payable for variation margin⁽²⁾		1,348,426			162,097			—			1,510,523
Forward contracts	Receivable for open forward foreign currency contracts		—			29,918			—			29,918
Total Value—Assets		$	1,348,426		$	192,015		$	301,434		$	1,841,875
	Liability Derivatives
Derivative Type	Statements of Assets and Liabilities Location	Interest Rate Risk			Currency Risk			Equity Risk			Total
Dynamic Real Return
Futures contracts	Receivable/Payable for variation margin⁽²⁾	$			$	(3,229	)	$	—		$	(3,229	)
Total Value—Liabilities		$	—		$	(3,229	)	$	—		$	(3,229	)
Global Allocation
Futures contracts	Receivable/Payable for variation margin⁽²⁾	$	(30,776	)	$	(351,572	)	$	—		$	(382,348	)
Forward contracts	Payable for open		—			(61,253	)		—			(61,253	)
	forward foreign currency contracts
Total Value—Liabilities		$	(30,776	)	$	(412,825	)	$	—		$	(443,601	)
Long Short
Futures contracts	Receivable/Payable for variation margin⁽²⁾	$	(328,319	)	$	—		$	(1,531,385	)	$	(1,859,704	)
Total Value—Liabilities		$	(328,319	)	$	—		$	(1,531,385	)	$	(1,859,704	)

(1) "Swap contracts" reflects the appreciation (depreciation) of the total return swap contracts plus accrued interest as of April 30, 2013, which is reflected in the Statements of Assets and Liabilities under the caption "Total return swaps, at value."

(2) "Futures contracts" reflects the cumulative appreciation (depreciation) of futures contracts as of April 30, 2013, which is reflected in the Statements of Assets and Liabilities under the caption "Net unrealized appreciation (depreciation) in value of investments." The outstanding variation margin as of April 30, 2013, if any, is reflected in the Statements of Assets and Liabilities under the caption "Receivable/Payable for variation margin."

The impact of the use of these derivative instruments on the Statements of Operations during the six months ended April 30, 2013, was as follows:

Realized Gain (Loss)
Derivative Type	Statements of Operations Location	Interest Rate Risk		Currency Risk		Equity Risk		Total
Dynamic Real Return
Futures contracts	Net realized gain (loss) on: financial futures contracts	$	(28,115)	$	(8,430)	$	—	$	(36,545)
Total Realized Gain (Loss)		$	(28,115)	$	(8,430)	$	—	$	(36,545)
Global Allocation
Swap contracts	Net realized gain (loss) on: total return swap contracts	$	—	$	—	$	1,128,589	$	1,128,589
Futures contracts	Net realized gain (loss) on: financial futures contracts		(868,066)		(47,466)		—		(915,532)
Forward contracts	Net realized gain (loss) on: forward foreign currency contracts		—		28,737		—		28,737
Total Realized Gain (Loss)		$	(868,066)	$	(18,729)	$	1,128,589	$	241,794
Long Short
Futures contracts	Net realized gain (loss) on: financial futures contracts	$	(116,919)	$	—	$	(2,123,465)	$	(2,240,384)
Option contracts purchased	Net realized gain (loss) on: sales of investment securities of unaffiliated issuers		—		—		(118,433)		(118,433)
Total Realized Gain (Loss)		$	(116,919)	$	—	$	(2,241,898)	$	(2,358,817)
Change in Appreciation (Depreciation)
Derivative Type	Statements of Operations Location	Interest Rate Risk		Currency Risk		Equity Risk		Total
Dynamic Real Return
Futures contracts	Change in net unrealized appreciation (depreciation) in value of: financial futures contracts	$	248	$	4,619	$	—	$	4,867
Total Change in Appreciation (Depreciation)		$	248	$	4,619	$	—	$	4,867

Derivative Type	Statements of Operations Location	Interest Rate Risk			Currency Risk			Equity Risk			Total
Global Allocation
Swap contracts	Change in net unrealized appreciation (depreciation) in value of: total return swap contracts	$	—		$	—		$	386,466		$	386,466
Futures contracts	Change in net unrealized appreciation (depreciation) in value of: financial futures contracts		1,256,744			(141,279	)		—			1,115,465
Forward contracts	Change in net unrealized appreciation (depreciation) in value of: forward foreign currency contracts		—			(27,618	)		—			(27,618	)
Total Change in Appreciation (Depreciation)		$	1,256,744		$	(168,897	)	$	386,466		$	1,474,313
Long Short
Futures contracts	Change in net unrealized appreciation (depreciation) in value of: financial futures contracts	$	(328,319	)	$	—		$	(1,710,582	)	$	(2,038,901	)
Option contracts purchased	Change in net unrealized appreciation (depreciation) in value of: unaffiliated investment securities		—			—			(2,900	)		(2,900	)
Total Change in Appreciation (Depreciation)		$	(328,319	)	$	—		$	(1,713,482	)	$	(2,041,801	)

15 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust

16 Transactions with other funds managed by Neuberger Berman Management LLC: Neuberger Berman Alternative Funds and Management have obtained an exemptive order from the Securities and Exchange Commission ("SEC") that permits the Fund to invest in both affiliated and unaffiliated investment companies, including exchange-traded funds, in excess of the limits in Section 12(d)(1)(A) of the 1940 Act, subject to the terms and conditions of such order. Through April 30, 2013, Dynamic Real Return invested in the Neuberger Berman Emerging Markets Equity Fund ("Emerging Markets Equity"), Neuberger Berman High Income Bond Fund ("High Income"), Neuberger Berman Floating Rate Income Fund ("Floating Rate Income"), and Neuberger Berman Risk Balanced Commodity Strategy Fund ("Risk Balanced Commodity Strategy") (collectively the "Underlying Funds").

For the Fund's investments in the Underlying Funds, Management waived a portion of its management fee equal to the management fee it received from the Underlying Funds on those assets (the "Arrangement"). For the fiscal period ended April 30, 2013, management fees waived under this Arrangement are reflected in the Statements of Operations under the caption "Investment management fees waived." For the fiscal period ended April 30, 2013,

income earned under this Arrangement on Dynamic Real Return's investments is reflected in the Statements of Operations under the caption "Dividend income—affiliated issuers." For the fiscal period ended April 30, 2013, management fees waived and income earned under this Arrangement on Dynamic Real Return's investments in the Underlying Funds were as follows:

Management fee waived				$	7,507
Income earned					44,267

17 Expense offset arrangement: Prior to January 1, 2013, each Fund had an expense offset arrangement in connection with its custodian contract. For the six months ended April 30, 2013, the impact of this arrangement was a reduction of expenses of $0, $16 and $48 for Dynamic Real Return, Global Allocation and Long Short, respectively.

18 Other: All net investment income and realized and unrealized capital gains and losses of each Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.

Note B—Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:

Each Fund retains Management as its investment manager under a Management Agreement. For such investment management services, Dynamic Real Return pays Management a fee at the annual rate of 0.650% of the first $250 million of the Fund's average daily net assets, 0.625% of the next $250 million, 0.600% of the next $250 million, 0.575% of the next $250 million, 0.550% of the next $500 million, 0.525% of the next $2.5 billion, and 0.500% of the average daily net assets in excess of $4 billion. As of February 28, 2013, Global Allocation pays Management a fee at the annual rate of 0.650% of the first $1 billion of the Fund's average daily net assets, 0.625% of the next $1 billion and 0.600% of average daily net assets in excess of $2 billion. Prior to February 28, 2013 Global Allocation paid Management a fee at the annual rate of 0.900% of the first $1 billion of the Fund's average daily net assets, 0.875% of the next $1 billion and 0.850% of average daily net assets in excess of $2 billion. Long Short pays Management a fee at the annual rate of 1.200% of the first $250 million of the Fund's average daily net assets, 1.175% of the next $250 million, 1.150% of the next $250 million, 1.125% of the next $250 million, 1.100% of the next $500 million, 1.075% of the next $2.5 billion, and 1.050% of average daily net assets in excess of $4 billion. Accordingly, for the period ended April 30, 2013, the fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.65% (0.41% after management fee waiver (See Note A-16)), 0.79% and 1.19% of Dynamic Real Return's, Global Allocation's and Long Short's average daily net assets, respectively.

Each Fund retains Management as its administrator under an Administration Agreement. Each Fund pays Management an administration fee at the annual rate of 0.06% of its average daily net assets under this agreement. In addition, each Fund's Institutional Class pays Management an administration fee at the annual rate of 0.09% of its average daily net assets under this agreement and each Fund's Class A and Class C pays Management an administration fee at the annual rate of 0.20% of its average daily net assets under this agreement. Additionally, Management retains State Street as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under the agreement.

Management has contractually agreed to waive current payment of fees and/or reimburse certain expenses of the Institutional Class, Class A and Class C of each Fund so that the total annual operating expenses of those classes do not exceed the expense limitations as detailed in the following table. These undertakings apply to a Fund's direct expenses and exclude interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, and, as of June 22, 2011 for Global Allocation and as of the commencement of operations for Dynamic Real Return and Long Short, exclude dividend expenses relating to short sales, as well as interest expenses relating to short sales for Dynamic Real Return, if any; consequently, net expenses may exceed the contractual expense limitations. Each Fund has agreed that each of its respective classes will repay Management for fees and expenses waived or reimbursed for that class provided that repayment does not cause that class' annual operating expenses to

exceed its contractual expense limitation in place at the time the fees and expenses were waived or reimbursed. Any such repayment must be made within three years after the year in which Management incurred the expense.

During the six months ended April 30, 2013, the Institutional Class of Long Short, Class A of Long Short and Class C of Long Short reimbursed Management $42,286, $14,132 and $3,812, respectively, under its contractual expense limitation.

At April 30, 2013, contingent liabilities to Management under the contractual expense limitation were as follows:

					Expenses Reimbursed In Fiscal Period Ending, October 31,
					2011			2012			2013
					Subject to Repayment until October 31,
Class	Contractual Expense Limitation⁽¹⁾			Expiration	2014			2015			2016
Dynamic Real Return Institutional Class		0.90	%	10/31/15	$	—		$	—		$	299,884	⁽⁴⁾
Dynamic Real Return Class A		1.26	%	10/31/15		—			—			5,808	⁽⁴⁾
Dynamic Real Return Class C		2.01	%	10/31/15		—			—			5,868	⁽⁴⁾
Global Allocation Institutional Class		0.90	%⁽⁵⁾	10/31/16		894,111	⁽²⁾		342,304			144,608
Global Allocation Class A		1.26	%⁽⁵⁾	10/31/16		11,162	⁽²⁾		125,936			76,685
Global Allocation Class C		2.01	%⁽⁵⁾	10/31/16		6,919	⁽²⁾		19,134			40,540
Long Short Institutional Class		1.70	%	10/31/16		—			226,826	⁽³⁾		—
Long Short Class A		2.06	%	10/31/16		—			29,385	⁽³⁾		—
Long Short Class C		2.81	%	10/31/16		—			7,239	⁽³⁾		—

(1) Expense limitation per annum of the respective class' average daily net assets.

(2) Period from December 29, 2010 (Commencement of Operations) to October 31, 2011.

(3) Period from December 29, 2011 (Commencement of Operations) to October 31, 2012.

(4) Period from December 19, 2012 (Commencement of Operations) to April 30, 2013.

(5) Prior to February 28, 2013, the contractual expense limitation was 1.20% for Institutional Class, 1.56% for Class A and 2.31% for Class C.

Neuberger Berman Fixed Income LLC ("NBFI"), as the sub-adviser to Dynamic Real Return and Global Allocation, is retained by Management to provide day-to-day investment management services and receives a monthly fee paid by Management. As investment manager, Management is responsible for overseeing the investment activities of NBFI. Neuberger Berman LLC ("Neuberger"), as the sub-adviser to Long Short, is retained by Management to furnish it with investment recommendations and research information without added cost to the Fund. Several individuals who are officers and/or Trustees of the Trust are also employees of NBFI, Neuberger and/or Management.

Management, NBFI, and Neuberger are indirect subsidiaries of Neuberger Berman Group LLC (("NBG") and together with its consolidated subsidiaries ("NB Group")). NBSH Acquisition, LLC ("NBSH" and together with NBG, the "NB Parties"), which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees, senior professionals, and certain of their permitted transferees, owns, as of March 14, 2013, approximately 72% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 28% of such common units. Pursuant to agreements among the NB Parties and the LBHI Parties, as well as the issuance of NBSH common equity to employees with respect to their previously made equity elections relating to 2013 compensation, it is expected that NBSH will own 81% of NBG's common units as of January 1, 2014. NBG has the opportunity to continue to

redeem the remaining NBG Class A common units from the LBHI Parties through a process that is expected to end in 2016 (and if necessary, 2017).

Each Fund also has a distribution agreement with Management with respect to each class of shares. Management acts as agent in arranging for the sale of class shares without sales commission or other compensation, except as described below for Class A and Class C shares, and bears advertising and promotion expenses.

However, Management receives fees from Class A and Class C under their distribution plans (each a "Plan", collectively the "Plans") pursuant to Rule 12b-1 under the 1940 Act. The Plans provide that, as compensation for administrative and other services provided to these classes, Management's activities and expenses related to the sale and distribution of these classes of shares, and ongoing services provided to investors in these classes, Management receives from each of these classes a fee at the annual rate of 0.25% of Class A's and 1.00% of Class C's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for these classes and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by each class during any year may be more or less than the cost of distribution and other services provided to that class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plans comply with those rules.

Class A shares of each Fund are generally sold with an initial sales charge of up to 5.75% and no contingent deferred sales charge ("CDSC"), except that a CDSC of 1.00% will apply to certain redemptions made within 18 months following purchases of $1 million or more without an initial sales charge. Class C shares of each Fund are sold with no initial sales charge and a 1.00% CDSC if shares are sold within one year after purchase.

	Underwriter				Broker-Dealer
	Net Initial Sales Charge		CDSC		Net Initial Sales Charge		CDSC
Dynamic Real Return Class A	$	—	$	—	$	—	$	—
Dynamic Real Return Class C		—		—		—		—
Global Allocation Class A		9,044		—		—		—
Global Allocation Class C		—		352		—		—
Long Short Class A		53,978		—		—		—
Long Short Class C		—		2,777		—		—

Note C—Securities Transactions:

During the six months ended April 30, 2013, there were purchase and sale transactions of long-term securities (excluding total return swaps, financial futures contracts, forward foreign currency contracts and option contracts) as follows:

	Purchases		Securities Sold Short		Sales		Covers on Securities Sold Short
Dynamic Real Return	$	16,146,359	$	—	$	1,300,332	$	—
Global Allocation		8,311,188		7,751,314		5,611,089		4,389,109
Long Short		433,497,274		107,185,946		83,212,578		38,767,600

During the six months ended April 30, 2013, no brokerage commissions on securities transactions were paid to affiliated brokers.

Note D—Fund Share Transactions:

Share activity for the six months ended April 30, 2013 and for the year ended October 31, 2012 was as follows:

	For the Six Months Ended April 30, 2013									For the Year Ended October 31, 2012
	Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions		Shares Redeemed			Total		Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions		Shares Redeemed			Total
Dynamic Real Return
Institutional Class⁽²⁾		1,487,348		—		(490	)		1,486,858		—		—		—			—
Class A⁽²⁾		10,246		—		—			10,246		—		—		—			—
Class C⁽²⁾		10,343		—		—			10,343		—		—		—			—
Global Allocation
Institutional Class		661,621		14,913		(119,079	)		557,455		1,526,708		58,760		(1,285,156	)		300,312
Class A		638,209		4,880		(75,951	)		567,138		962,595		1,841		(643,796	)		320,640
Class C		213,849		1,050		(5,254	)		209,645		209,308		756		(939	)		209,125
Long Short
Institutional Class		25,346,136		76,375		(2,033,858	)		23,388,653		8,577,855		—		(231,938	)		8,345,917	⁽¹⁾
Class A		15,416,993		26,279		(849,223	)		14,594,049		2,458,443		—		(14,658	)		2,443,785	⁽¹⁾
Class C		3,443,099		1,606		(39,535	)		3,405,170		305,335		—		—			305,335	⁽¹⁾

(1) Period from December 29, 2011 (Commencement of Operations) to October 31, 2012.

(2) Period from December 19, 2012 (Commencement of Operations) to April 30, 2013.

Note E—Line of Credit:

At April 30, 2013, each Fund (except Dynamic Real Return) was a participant in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.10% per annum of the available line of credit is charged, of which each participating Fund has agreed to pay its pro rata share, based on the ratio of its individual net assets to the net assets of all participants at the time the fee is due and payable. The fee is paid quarterly in arrears. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $200,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at April 30, 2013. During the six months ended April 30, 2013, none of the Funds utilized this line of credit.

Note F—Investments in Affiliates⁽¹⁾:

	Balance of Shares Held December 19⁽²⁾, 2012		Gross Purchases and Additions		Gross Sales and Reductions		Balance of Shares Held April 30, 2013		Value April 30, 2013		Income from Investments in Affiliated Issuers		Net Realized Gain (Loss) from Investments in Affiliated Issuers
Dynamic Real Return
Neuberger Berman Emerging Markets Equity Fund Institutional Class		—		70,685		—		70,685	$	1,195,934	$	—	$	—
Neuberger Berman Floating Rate Income Fund Institutional Class		—		140,358		—		140,358		1,454,081		15,414		—
Neuberger Berman High Income Bond Fund Institutional Class		—		147,928		—		147,928		1,443,406		28,853		—
Neuberger Berman Risk Balanced Commodity Strategy Fund Institutional Class		—		171,487		—		171,487		1,580,087		—		—
Total									$	5,673,508	$	44,267	$	—

(1) Affiliated issuers, as defined in the 1940 Act. Neuberger Berman Alternative Funds and Management have obtained an exemptive order from the SEC that permits the Fund to invest in both affiliated and unaffiliated investment companies, including exchange-traded funds, in excess of the limits in Section 12(d)(1)(A) of the 1940 Act, as amended, subject to the terms and conditions of such order.

(2) Commencement of Operations.

Note G—Recent Accounting Pronouncement:

Note H—Unaudited Financial Information:

The financial information included in this interim report is taken from the records of each Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.

The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. Per share amounts that round to less than $.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Net Asset amounts with a zero balance may reflect actual amounts rounding to less than $0.1 million.

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)		Total From Investment Operations		Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Total Distributions			Net Asset Value, End of Period		Total Return^††
Dynamic Real Return Fund
Institutional Class
Period from 12/19/2012^ to 4/30/2013 (Unaudited)	$	10.00	$	0.08		$	0.34	$	0.42	$	—		$	—		$	—		$	10.42		4.20	%**
Class A
Period from 12/19/2012^ to 4/30/2013 (Unaudited)	$	10.00	$	0.06		$	0.35	$	0.41	$	—		$	—		$	—		$	10.41		4.10	%**
Class C
Period from 12/19/2012^ to 4/30/2013 (Unaudited)	$	10.00	$	0.04		$	0.34	$	0.38	$	—		$	—		$	—		$	10.38		3.80	%**
Global Allocation Fund
Institutional Class
4/30/2013 (Unaudited)	$	10.30	$	(0.03	)	$	1.10	$	1.07	$	(0.15	)	$	—		$	(0.15	)	$	11.22		10.52	%**
10/31/2012	$	10.30	$	(0.12	)	$	1.02	$	0.90	$	(0.21	)	$	(0.69	)	$	(0.90	)	$	10.30		9.60	%
Period from 12/29/2010^ to 10/31/2011	$	10.00	$	(0.08	)	$	0.38	$	0.30	$	—		$	—		$	—		$	10.30		3.00	%**
Class A
4/30/2013 (Unaudited)	$	10.25	$	(0.05	)	$	1.10	$	1.05	$	(0.12	)	$	—		$	(0.12	)	$	11.18		10.30	%**
10/31/2012	$	10.27	$	(0.15	)	$	1.01	$	0.86	$	(0.19	)	$	(0.69	)	$	(0.88	)	$	10.25		9.24	%
Period from 12/29/2010^ to 10/31/2011	$	10.00	$	(0.14	)	$	0.41	$	0.27	$	—		$	—		$	—		$	10.27		2.70	%**
Class C
4/30/2013 (Unaudited)	$	10.13	$	(0.09	)	$	1.09	$	1.00	$	(0.04	)	$	—		$	(0.04	)	$	11.09		9.93	%**
10/31/2012	$	10.21	$	(0.23	)	$	1.00	$	0.77	$	(0.16	)	$	(0.69	)	$	(0.85	)	$	10.13		8.34	%
Period from 12/29/2010^ to 10/31/2011	$	10.00	$	(0.18	)	$	0.39	$	0.21	$	—		$	—		$	—		$	10.21		2.10	%**

	Net Assets, End of Period (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Gross Expenses to Average Net Assets (excluding expenses on securities sold short)			Ratio of Net Expenses to Average Net Assets			Ratio of Net Expenses to Average Net Assets (excluding expenses on securities sold short)			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate (including securities sold short)			Portfolio Turnover Rate (excluding securities sold short)
Dynamic Real Return Fund
Institutional Class
Period from 12/19/2012^ to 4/30/2013 (Unaudited)	$	15.5		6.34	%‡*		6.34	%‡Ø*		.67	%‡*		.67	%‡Ø*		2.02	%‡*		14	%**		14	%Ø**
Class A
Period from 12/19/2012^ to 4/30/2013 (Unaudited)	$	0.1		11.66	%‡*		11.66	%‡Ø*		1.03	%‡*		1.03	%‡Ø*		1.70	%‡*		14	%**		14	%Ø**
Class C
Period from 12/19/2012^ to 4/30/2013 (Unaudited)	$	0.1		12.35	%‡*		12.35	%‡Ø*		1.78	%‡*		1.78	%‡Ø*		.95	%‡*		14	%**		14	%Ø**
Global Allocation Fund
Institutional Class
4/30/2013 (Unaudited)	$	16.0		4.10	%*		3.60	%*		1.59	%*		1.09	%*		(.60	%)*		119	%**		103	%**
10/31/2012	$	8.9		5.01	%		4.55	%		1.68	%		1.22	%		(1.19	%)		446	%		423	%
Period from 12/29/2010^ to 10/31/2011	$	5.8		18.45	%‡*		18.31	%‡*^^		1.36	%‡*		1.21	%‡*^^		(.95	%)‡*		268	%**		216	%**
Class A
4/30/2013 (Unaudited)	$	10.1		4.42	%*		3.90	%*		1.96	%*		1.44	%*		(1.04	%)*		119	%**		103	%**
10/31/2012	$	3.4		5.41	%		4.93	%		2.07	%		1.59	%		(1.48	%)		446	%		423	%
Period from 12/29/2010^ to 10/31/2011	$	0.1		22.01	%‡*		21.63	%‡*^^		1.96	%‡*		1.58	%‡*^^		(1.64	%)‡*		268	%**		216	%**
Class C
4/30/2013 (Unaudited)	$	4.7		5.19	%*		4.68	%*		2.70	%*		2.19	%*		(1.78	%)*		119	%**		103	%**
10/31/2012	$	2.2		6.47	%		6.03	%		2.78	%		2.34	%		(2.26	%)		446	%		423	%
Period from 12/29/2010^ to 10/31/2011	$	0.0		25.07	%‡*		24.87	%‡*^^		2.52	%‡*		2.33	%‡*^^		(2.12	%)‡*		268	%**		216	%**

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)		Total From Investment Operations		Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Total Distributions			Net Asset Value, End of Period		Total Return^††
Long Short Fund
Institutional Class
4/30/2013 (Unaudited)	$	11.09	$	0.03		$	0.80	$	0.83	$	(0.03	)	$	(0.06	)	$	(0.09	)	$	11.83		7.56	%**
Period from 12/29/2011^ to 10/31/2012	$	10.00	$	0.04		$	1.05	$	1.09	$	—		$	—		$	—		$	11.09		10.90	%**
Class A
4/30/2013 (Unaudited)	$	11.06	$	0.00		$	0.81	$	0.81	$	(0.03	)	$	(0.06	)	$	(0.09	)	$	11.78		7.34	%**
Period from 12/29/2011^ to 10/31/2012	$	10.00	$	0.00		$	1.06	$	1.06	$	—		$	—		$	—		$	11.06		10.60	%**
Class C
4/30/2013 (Unaudited)	$	10.99	$	(0.04	)	$	0.80	$	0.76	$	(0.01	)	$	(0.06	)	$	(0.07	)	$	11.68		6.92	%**
Period from 12/29/2011^ to 10/31/2012	$	10.00	$	(0.06	)	$	1.05	$	0.99	$	—		$	—		$	—		$	10.99		9.90	%**

	Net Assets, End of Period (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Gross Expenses to Average Net Assets (excluding expenses on securities sold short)			Ratio of Net Expenses to Average Net Assets			Ratio of Net Expenses to Average Net Assets (excluding expenses on securities sold short)			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate (including securities sold short)			Portfolio Turnover Rate (excluding securities sold short)
Long Short Fund
Institutional Class
4/30/2013 (Unaudited)	$	375.4		1.81	%*		1.70	%*		1.81	%§*		1.70	%§*		.46	%*		67	%**		33	%**
Period from 12/29/2011^ to 10/31/2012	$	92.6		2.78	%‡*		2.65	%‡*		1.83	%‡*		1.70	%‡*		.40	%‡*		93	%**		56	%**
Class A
4/30/2013 (Unaudited)	$	200.7		2.17	%*		2.06	%*		2.17	%§*		2.06	%§*		.06	%*		67	%**		33	%**
Period from 12/29/2011^ to 10/31/2012	$	27.0		3.21	%‡*		3.11	%‡*		2.17	%‡*		2.06	%‡*		.05	%‡*		93	%**		56	%**
Class C
4/30/2013 (Unaudited)	$	43.4		2.91	%*		2.81	%*		2.91	%§*		2.81	%§*		(.70	%)*		67	%**		33	%**
Period from 12/29/2011^ to 10/31/2012	$	3.4		4.34	%‡*		4.20	%‡*		2.95	%‡*		2.81	%‡*		(.69	%)‡*		93	%**		56	%**

†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of each Fund during each fiscal period and assumes income dividends and other distributions, if any, were reinvested, but does not reflect the effect of sales charges. Results represent past performance and do not indicate future results. Current returns may be lower or higher than the performance data quoted. Investment returns and principal may fluctuate and shares when redeemed may be worth more or less than original cost. For each Fund, total return would have been lower if Management had not reimbursed and/or waived certain expenses. Total return would have been higher if Management had not recouped previously reimbursed and/or waived expense.

^ The date investment operations commenced.

‡ Organization expense, which is a non-recurring expense, is included in these ratios on a non-annualized basis.

@ Calculated based on the average number of shares outstanding during each fiscal period.

§ After repayment of expenses previously reimbursed and/or fees previously waived by Management, as applicable. Had the Fund not made such repayments, the annualized ratios of net expenses to average daily net assets would have been:

	Including Expenses on Securities Sold Short			Excluding Expenses on Securities Sold Short
	Six Months Ended April 30, 2013
Long Short Fund Institutional Class		1.77	%		1.66	%
Long Short Fund Class A		2.14	%		2.03	%
Long Short Fund Class C		2.86	%		2.76	%

* Annualized.

** Not annualized.

^^ As of June 22, 2011, Global Allocation's Institutional Class, Class A and Class C contractual expense limitations exclude dividend expenses relating to short sales, if any; consequently, net expenses may exceed the contractual expense limitations (See Note B of Notes to Financial Statements).

# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.

Ø Dynamic Real Return did not engage in short sales.

Board Consideration of the Management and Sub-Advisory Agreements

At a meeting held on June 24, 2012, the Board of Trustees of Neuberger Berman Alternative Funds ("Board"), including the Trustees who are not "interested persons" of Neuberger Berman Management LLC ("Management") (including its affiliates) or Neuberger Berman Alternative Funds ("Independent Fund Trustees"), approved the Management and Sub-Advisory Agreements ("Agreements") for Neuberger Berman Dynamic Real Return Fund (the "Fund").

In evaluating the Agreements, the Board, including the Independent Fund Trustees, reviewed materials furnished by Management and met with senior representatives of Management regarding personnel, operations and financial conditions of Management and Neuberger Berman Fixed Income LLC ("NBFI"), the Sub-Adviser, as they relate to the Fund. The Independent Fund Trustees were advised by counsel that is experienced in Investment Company Act of 1940 matters and that is independent of Management.

The Board evaluated the terms of the Agreements, the overall fairness of the Agreements to the Fund and whether the Agreements were in the best interests of the Fund and its shareholders. The Board considered the following factors, among others, in connection with its approval of the Agreements: (1) the nature, extent, and quality of the services to be provided by Management and NBFI; (2) the expected costs of the services to be provided; (3) the extent to which economies of scale might be realized as the Fund grows; and (4) whether fee levels reflect any such potential economies of scale for the benefit of investors in the Fund. In their deliberations, the Board members did not identify any particular information that was all-important or controlling, and each Trustee may have attributed different weights to the various factors.

With respect to the nature, extent and quality of the services provided, the Board considered the experience of the portfolio management personnel of Management and NBFI who would perform services for the Fund. The Board also considered the hypothetical performance over a several year period of a model portfolio using similar investment objectives, policies and strategies to the Fund. The Board noted that Management also would provide certain administrative services, including fund accounting and compliance oversight. The Board also considered Management's and NBFI's policies and practices regarding brokerage and allocation of portfolio transactions for the Fund. In addition, the Board noted the positive compliance history of Management and NBFI, as each firm has been free of significant compliance problems. The Board also considered the manner in which Management addressed various non-routine matters that have arisen from time to time, some of them a result of developments in the broader fund industry or the regulations governing it.

With respect to the overall fairness of the Agreements, the Board considered the fee structure for the Fund under the Agreements as compared to a peer group of comparable funds and any fall-out benefits likely to accrue to Management or NBFI or their affiliates from their relationship with the Fund. They considered that the Fund was intended to invest primarily in affiliated underlying funds pursuant to exemptive relief obtained from the Securities and Exchange Commission.

The Board reviewed a comparison of the Fund's management fee and overall expense ratio for each class of the Fund to a peer group of broadly comparable funds and classes, including how the Fund's effective management fee at different asset levels and the Fund's net expenses for each class compared to the mean and median of the peer group. The Board considered, for any assets that the Fund invests in an affiliated underlying fund, Management's undertaking to waive a portion of the Fund's advisory fee equal to the advisory fee it receives from such affiliated underlying fund. In addition, the Board considered the contractual limits on the Fund's expenses undertaken by Management for the Fund. The Board considered that the Fund's fee structure provides for a reduction of payments resulting from the use of breakpoints. The Board also considered whether it would be appropriate to evaluate any anticipated economies of scale in relation to the services Management provides to the Fund, noting that it may be too soon to anticipate the economies at the start-up phase of a fund. The Board was advised that most funds in the comparison group either had no breakpoints or had breakpoints that were only instituted once the comparable fund had assets in excess of $1 billion. Although advisory and administrative fees for some classes of the Fund were in the bottom quartile of the comparison group, the expense ratio was close to the median of that group, indicating that in return for its fee, Management would provide more of the required administrative services than do some other manager/administrators in the comparison group.

Neuberger Berman Risk Balanced Commodity Strategy Fund¹ Institutional Class generated a -6.40% total return for the six months ended April 30, 2013 and underperformed its benchmark, the Dow Jones-UBS Commodity Index, which posted a -6.34% return for the period. (Performance for all share classes is provided in the table immediately following this letter.)

Overall, the commodity markets generated weak results during the reporting period. A confluence of factors contributed to generally declining commodity prices, including decelerating growth in China as well as fiscal cliff and sequestration-related concerns in the U.S. Investor sentiment was also negatively impacted by ongoing uncertainty in Europe, worsened by the inconclusive election results in Italy and a banking crisis in Cyprus. Within the commodity markets, precious metals posted the weakest results, driven by sharply falling silver and gold prices. Agricultural commodities also performed poorly. Energy and softs (e.g., cotton and sugar) produced relatively better results given rallies in natural gas and cotton.

The Fund's core strategy uses a systematic investment process to balance risk among each of the underlying individual commodities which aggregate into six major commodity sectors: energy, industrial metals, precious metals, agriculture, livestock and softs. The Fund's tactical strategy seeks to gain exposure to commodities and commodity-linked derivative instruments (collectively "commodities") primarily by investing in a wholly owned subsidiary of the Fund formed in the Cayman Islands. Discussion of the Fund's investments in commodities in this report mainly refers to the investments made by that subsidiary. Over the six month reporting period, the core strategy largely drove the Fund's underperformance, while its tactical strategy modestly added value. The largest detractors within the core strategy were precious metals, which fell sharply due to concerns over global demand. The next largest detractor was agriculture, which was dragged down by declining wheat prices given falling grain exports and an oversupply of soy and soybeans. The Fund's allocations to livestock, industrial metals, energy and softs were also detrimental to performance, albeit to lesser extents.

Our active strategy seeks to enhance the Fund's performance by tilting each commodity's exposure relative to its core strategy weight. These tilts are based on short- to medium-term factors, including macroeconomics, supply/demand, the pricing relationships among commodities and the shape of the futures curve. The active strategy added value during each month of the reporting period except for April. The Fund generally maintained overweights versus the benchmark in energy, precious metals and industrial metals, while it was underweighted in agriculture, livestock and softs. Within the active strategy, positioning in nickel, wheat and feeder cattle provided the largest contribution to returns, while our positions in zinc, aluminum and platinum were the largest detractors.

Looking ahead, we believe that the fundamental drivers of commodity prices remain intact. In our view, recent weakness has been driven by business cycle movements and short-term supply increases, rather than structural shifts in the asset class. Over time, we anticipate commodities will be supported by rapid growth in emerging markets. The so-called BRICs (Brazil, Russia, India and China), with perhaps a few additional countries, are projected to experience long-term significant population and per-capita income growth, resulting in larger-than-ever middle classes. We believe these factors are likely to continue to trigger increased consumption of commodities, from food to oil to materials necessary for infrastructure development. At the same time, we anticipate long-term supply issues will persist in the face of a scarcity of resources. Against this backdrop, we feel that commodities remain an important, diversifying component of a long-term investor's portfolio.

Sincerely,

WAI LEE, HAKAN KAYA AND THOMAS SONTAG
PORTFOLIO CO-MANAGERS

Information about the principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.

The portfolio composition, industries and holdings of the Fund are subject to change.

The opinions expressed are those of the Fund's portfolio managers. The opinions are as of the date of this report and are subject to change without notice.

¹ Much of the Fund's investment exposure is accomplished through the use of derivatives which may not require the Fund to deposit the full notional amount of the investment with its counterparties, such as a futures commission merchant. The Fund's resulting cash balances are invested in money market mutual funds.

PERFORMANCE HIGHLIGHTS²

	Inception Date	Six Month Period Ended 04/30/2013			Cumulative Total Return Ended 04/30/2013 Life of Fund
At NAV
Institutional Class	08/27/2012		-6.40	%		-7.90	%
Class A	08/27/2012		-6.61	%		-8.10	%
Class C	08/27/2012		-7.02	%		-8.60	%
With Sales Charge
Class A			-11.97	%		-13.38	%
Class C			-7.95	%		-9.51	%
Index
Dow Jones-UBS Commodity Index^1,3			-6.34	%		-8.01	%

The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.

Neuberger Berman Alternative Funds
	ACTUAL									HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)⁽²⁾
	Beginning Account Value 11/1/12		Ending Account Value 4/30/13		Expenses Paid During the Period⁽¹⁾ 11/1/12 - 4/30/13		Expense Ratio			Beginning Account Value 11/1/12		Ending Account Value 4/30/13		Expenses Paid During the Period⁽¹⁾ 11/1/12 - 4/30/13		Expense Ratio
Neuberger Risk Balanced Commodity Strategy Fund
Institutional Class	$	1,000.00	$	936.00	$	5.28		1.10	%	$	1,000.00	$	1,019.34	$	5.51		1.10	%
Class A	$	1,000.00	$	933.90	$	7.00		1.46	%	$	1,000.00	$	1,017.55	$	7.30		1.46	%
Class C	$	1,000.00	$	929.80	$	10.57		2.21	%	$	1,000.00	$	1,013.84	$	11.03		2.21	%

⁽¹⁾ For each class, expenses are equal to the annualized expense ratio for the class, including expenses of the Fund's subsidiary (See Note A-1 of Notes to Consolidated Financial Statements) multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).

⁽²⁾ Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 365.

PRINCIPAL AMOUNT			VALUE^†
U.S. Government Agency Securities (3.5%)
$	250,000	Federal Farm Credit Banks, Bonds, 0.23%, due 3/13/15 (Cost $250,123)	$	249,939	^µ
Mortgage-Backed Securities (3.5%)
Fannie Mae (3.5%)
	250,000	Federal National Mortgage Association, Notes, 0.18%, due 6/20/14 (Cost $250,073)		250,067	^µ
Corporate Debt Securities (24.8%)
Banks (5.3%)
	150,000	JPMorgan Chase & Co., Unsecured Notes, 0.73%, due 4/23/15		150,090	^µ
	50,000	JPMorgan Chase & Co., Senior Unsecured Notes, 4.75%, due 5/1/13		50,000
	50,000	Royal Bank of Canada, Senior Unsecured Medium-Term Notes, Ser. 1, 0.58%, due 4/17/14		50,149	^µ
	50,000	US Bancorp, Medium-Term Notes, 2.00%, due 6/14/13		50,099
	75,000	Wells Fargo & Co., Senior Unsecured Notes, 1.20%, due 6/26/15		75,933	^µ
				376,271
Beverages (1.4%)
	100,000	PepsiCo, Inc., Senior Unsecured Notes, 0.37%, due 5/10/13		100,006	^µ
Computers (2.6%)
	55,000	Apple, Inc., Senior Unsecured Notes, 0.32%, due 5/3/16		55,000	^µ
	125,000	International Business Machines Corp., Senior Unsecured Notes, 2.10%, due 5/6/13		125,019
				180,019
Cosmetics - Personal Care (2.1%)
	150,000	Procter & Gamble Co., Senior Unsecured Notes, 0.22%, due 2/6/14		149,934	^µ
Diversified Financial Services (5.1%)
	84,000	American Express Credit Corp., Senior Unsecured Notes, 1.13%, due 6/24/14		84,590	^µ
	50,000	Caterpillar Financial Services Corp., Senior Unsecured Medium-Term Notes, 0.44%, due 8/27/14		50,097	^µ
	100,000	General Electric Capital Corp., Senior Unsecured Medium-Term Notes, Ser. A, 0.54%, due 9/15/14		100,096	^µ
	100,000	John Deere Capital Corp., Senior Unsecured Notes, 0.43%, due 4/25/14		100,166	^µ
	30,000	Toyota Motor Credit Corp., Senior Unsecured Medium-Term Notes, 0.73%, due 10/11/13		30,065	^µ
				365,014
Insurance (0.7%)
	50,000	Berkshire Hathaway Finance Corp., Guaranteed Notes, 0.61%, due 1/10/14		50,117	^µ
Media (0.9%)
	65,000	Walt Disney Co., Senior Unsecured Medium-Term Notes, 0.28%, due 2/11/15		65,000	^µ
Oil & Gas (0.7%)
	50,000	BP Capital Markets PLC, Guaranteed Notes, 0.88%, due 3/11/14		50,241	^µ

PRINCIPAL AMOUNT			VALUE^†
Pipelines (0.8%)
$	57,000	TransCanada PipeLines Ltd., Senior Unsecured Notes, 4.00%, due 6/15/13	$	57,220
Retail (3.1%)
	68,000	Home Depot, Inc., Senior Unsecured Notes, 5.25%, due 12/16/13		70,085
	50,000	Target Corp., Senior Unsecured Notes, 0.45%, due 7/18/14		50,110	^µ
	97,000	Wal-Mart Stores, Inc., Senior Unsecured Notes, 4.55%, due 5/1/13		97,000
				217,195
Telecommunications (2.1%)
	100,000	Cisco Systems, Inc., Senior Unsecured Notes, 0.53%, due 3/14/14		100,205	^µ
	50,000	Verizon Communications, Inc., Senior Unsecured Notes, 0.89%, due 3/28/14		50,210	^µ
				150,415
		Total Corporate Debt Securities (Cost $1,761,174)		1,761,432
Short-Term Investments (64.5%)
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government^(a) (49.1%)
	550,000	U.S. Treasury Bills, Disc. Notes, 0.02%, due 5/16/13		549,991
	300,000	U.S. Treasury Bills, Disc. Notes, 0.02%, due 5/23/13		299,995
	400,000	U.S. Treasury Bills, Disc. Notes, 0.03%, due 6/6/13		399,992
	600,000	U.S. Treasury Bills, Disc. Notes, 0.05%, due 6/27/13		599,978
	500,000	U.S. Treasury Bills, Disc. Notes, 0.04%, due 7/5/13		499,973
	600,000	U.S. Treasury Bills, Disc. Notes, 0.06%, due 8/8/13		599,914
	400,000	U.S. Treasury Bills, Disc. Notes, 0.08%, due 8/22/13		399,931
	150,000	U.S. Treasury Bills, Disc. Notes, 0.08%, due 10/17/13		149,945
				3,499,719
NUMBER OF SHARES
Money Market Fund (15.4%)
	1,095,534	State Street Institutional Government Money Market Fund Institutional Class		1,095,534	^ØØ††
		Total Short-Term Investments (Cost $4,594,910)		4,595,253
		Total Investments (96.3%) (Cost $6,856,280)		6,856,691	^##
		Cash, receivables and other assets, less liabilities (3.7%)		265,948	^±
		Total Net Assets (100.0%)	$	7,122,639

† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Risk Balanced Commodity Strategy Fund (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.

• Level 1 – quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)

• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.

The value of the Fund's investments in debt securities is determined by Management primarily by obtaining valuations from independent pricing services based on readily available bid quotations, or if quotations are not available, by methods which include various considerations based on security type (generally Level 2 inputs). In addition to the consideration of yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions, the following is a description of other Level 2 inputs and related valuation techniques used by an independent pricing service to value certain types of debt securities of the Fund:

Mortgage-Backed Securities. Inputs used to value mortgage-backed securities generally include models that consider a number of factors, which may include the following: prepayment speeds, cash flows, spread adjustments and Other Market Information.

U.S. Treasury Securities. Inputs used to value U.S. Treasury securities generally include quotes from several inter-dealer brokers and Other Market Information.

U.S. Government Agency Securities. Inputs used to value U.S. Government Agency securities generally include obtaining benchmark quotes and Other Market Information.

The value of commodity futures contracts is determined by obtaining valuations from independent pricing services at the settlement price at the market close (Level 1 inputs).

Management has developed a process to periodically review information provided by independent pricing services for all types of securities.

Investments in money market funds are valued using the fund's daily calculated net asset value per share (Level 2 inputs).

Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.

The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of April 30, 2013:

Asset Valuation Inputs
	Level 1		Level 2		Level 3		Total
Investments:
U.S. Government Agency Securities	$	—	$	249,939	$	—	$	249,939
Mortgage-Backed Securities^		—		250,067		—		250,067
Corporate Debt Securities^		—		1,761,432		—		1,761,432
Short-Term Investments^		—		4,595,253		—		4,595,253
Total Investments	$	—	$	6,856,691	$	—	$	6,856,691

^ The Consolidated Schedule of Investments provides information on the industry categorization for the portfolio.

The following is a summary, categorized by Level, of inputs used to value the Fund's derivatives as of April 30, 2013:

	Level 1			Level 2		Level 3		Total
Futures Contracts (unrealized appreciation)	$	182,236		$	—	$	—	$	182,236
Liability Valuation Inputs
	Level 1			Level 2		Level 3		Total
Futures Contracts (unrealized depreciation)	$	(399,093	)	$	—	$	—	$	(399,093	)

## At April 30, 2013, the cost of investments for U.S. federal income tax purposes was $6,856,280. Gross unrealized appreciation of investments was $788 and gross unrealized depreciation of investments was $377, resulting in net unrealized appreciation of $411 based on cost for U.S. federal income tax purposes.

ØØ All or a portion of this security is segregated in connection with obligations for commodity futures contracts.

†† A portion of this security is held by Neuberger Berman Cayman Commodity Fund I Ltd., (the "Subsidiary") a wholly-owned subsidiary of the Fund. See Note A-1 of the Notes to Consolidated Financial Statements.

(a) Interest rate represents discount rate at time of purchase, not a coupon rate.

µ Floating rate securities are securities whose yields vary with a designated index or market rate. These securities are shown at their current rates as of April 30, 2013, and their final maturity dates.

± See Note A-11 in the Notes to Consolidated Financial Statements for the Fund's or Subsidiary's open positions in derivatives at April 30, 2013.

Neuberger Berman Alternative Funds
	RISK BALANCED COMMODITY STRATEGY FUND
	April 30, 2013
Assets
Investments in securities, at value** (Note A)—see Schedule of Investments:
Unaffiliated issuers	$	6,856,691
Deposits with brokers for futures contracts (Note A-11)		356,966
Dividends and interest receivable		8,100
Receivable for Fund shares sold		3,333
Receivable for variation margin (Note A-11)		8,019
Receivable from Management—net (Note B)		51,759
Prepaid expenses and other assets		32,503
Total Assets		7,317,371
Liabilities
Payable for securities purchased		105,524
Payable for Fund shares redeemed		5,769
Payable to investment manager (Note B)		3,967
Accrued expenses and other payables		79,472
Total Liabilities		194,732
Net Assets	$	7,122,639
Net Assets consist of:
Paid-in capital	$	7,606,852
Undistributed net investment income (loss)		(30,819)
Accumulated net realized gains (losses) on investments		(236,948)
Net unrealized appreciation (depreciation) in value of investments		(216,446)
Net Assets	$	7,122,639
Net Assets
Institutional Class	$	6,852,782
Class A		178,442
Class C		91,415
Shares Outstanding ($.001 par value; unlimited shares authorized)
Institutional Class		744,120
Class A		19,418
Class C		10,000
Net Asset Value, offering and redemption price per share
Institutional Class	$	9.21
Net Asset Value and redemption price per share
Class A	$	9.19
Offering Price per share
Class A‡	$	9.75
Net Asset Value and offering price per share
Class C^	$	9.14
**Cost of Investments	$	6,856,280

‡ On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the Fund's prospectus, offering price is reduced.

^ Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

* See Notes A-1 and A-2 of the Notes to Consolidated Financial Statements.

Neuberger Berman Alternative Funds
	RISK BALANCED COMMODITY STRATEGY FUND
	For the Six Months Ended April 30, 2013
Investment Income:
Income (Note A):
Interest income—unaffiliated issuers	$	4,260
Expenses:
Investment management fees (Note B)		21,284
Administration fees (Note B)		1,824
Administration fees (Note B):
Institutional Class		2,620
Class A		163
Class C		96
Distribution fees (Note B):
Class A		204
Class C		481
Shareholder servicing agent fees:
Institutional Class		322
Class A		108
Class C		61
Subsidiary administration fees (Note B)		24,920
Audit fees		55,633
Custodian fees		20,163
Legal fees		59,638
Registration and filing fees		35,633
Shareholder reports		27,934
Trustees' fees and expenses		23,585
Miscellaneous		4,634
Total expenses		279,303
Expenses reimbursed by Management (Note B)		(244,997)
Expenses reduced by custodian fee expense offset arrangement (Note A-13)		(2)
Total net expenses		34,304
Net investment income (loss)	$	(30,044)
Realized and Unrealized Gain (Loss) on Investments (Note A):
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		110
Commodity futures contracts		(237,058)
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		326
Commodity futures contracts		(181,281)
Net gain (loss) on investments		(417,903)
Net increase (decrease) in net assets resulting from operations	$	(447,947)

* See Notes A-1 and A-2 of the Notes to Consolidated Financial Statements.

Neuberger Berman Alternative Funds

	RISK BALANCED COMMODITY STRATEGY FUND
	Six Months Ended April 30, 2013 (Unaudited)			Period from August 27, 2012 (Commencement of Operations) to October 31, 2012
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	(30,044	)	$	(9,258	)
Net realized gain (loss) on investments		(236,948	)		(52,003	)
Change in net unrealized appreciation (depreciation) of investments		(180,955	)		(35,491	)
Net increase (decrease) in net assets resulting from operations		(447,947	)		(96,752	)
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Institutional Class		3,757,651			5,069,219
Class A		70,501			129,263
Class C		—			100,000
Payments for shares redeemed:
Institutional Class		(1,453,371	)		—
Class A		(5,925	)		—
Net increase (decrease) from Fund share transactions		2,368,856			5,298,482
Net Increase (Decrease) in Net Assets		1,920,909			5,201,730
Net Assets:
Beginning of period		5,201,730			—
End of period	$	7,122,639		$	5,201,730
Undistributed net investment income (loss) at end of period	$	(30,819	)	$	(775	)

* See Notes A-1 and A-2 of the Notes to Consolidated Financial Statements.

Note A—Summary of Significant Accounting Policies:

1 General: Neuberger Berman Alternative Funds (the "Trust") is a Delaware statutory trust organized pursuant to an Amended and Restated Trust Instrument dated October 14, 2010. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the 1933 Act. The Fund is a separate operating series of the Trust and is non-diversified. The Fund had no operations until August 27, 2012, other than matters relating to its organization and registration of shares under the 1933 Act. The Fund offers Institutional Class shares, Class A shares and Class C shares. The Board may establish additional series or classes of shares without the approval of shareholders.

The assets of the Fund belong only to the Fund, and the liabilities of the Fund are borne solely by the Fund and no other.

The Fund invests in commodity-related instruments through the Subsidiary, which is organized under the laws of the Cayman Islands. Subscription agreements were entered into between the Fund and the Subsidiary with the intent that the Fund will remain the sole shareholder of the Subsidiary. The Subsidiary is governed by its own Board of Directors.

As of April 30, 2013, the value of the Fund's investment in the Subsidiary was as follows:

Investment in Subsidiary				Percentage of Net Assets
$	1,246,551				17.5	%

2 Consolidation: The accompanying financial statements of the Fund present the consolidated accounts of the Fund and the Subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.

3 Portfolio valuation: Investment securities are valued as indicated in the notes following the Schedule of Investments.

4 Foreign currency translation: The accounting records of the Fund and Subsidiary are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time, to determine the value of investments, other assets and liabilities. Purchase and sale prices of securities, and income and expenses, are translated into U.S. dollars at the prevailing rate of exchange on the respective dates of such transactions. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Consolidated Statement of Operations.

5 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Dividend income is recorded on the ex-dividend date or, for certain foreign dividends, as soon as the Fund becomes aware of the dividends. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including accretion of discount (adjusted for original issue discount, where applicable) and amortization of premium, where applicable, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Consolidated Statement of Operations.

6 Income tax information: It is the policy of the Fund to continue to qualify for treatment as a regulated investment company by complying with the requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent the Fund distributes substantially all of its net investment income and net realized capital gains to shareholders, no federal income or excise tax provision is required.

The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Consolidated Statement of Operations. As of April 30, 2013, the Fund did not have any unrecognized tax positions.

The Subsidiary is a controlled foreign corporation under the U.S. Internal Revenue Code. As a U.S. shareholder of a controlled foreign corporation, the Fund will include in its gross income its share of the Subsidiary's current earnings and profits (including net realized gains). Any deficit generated by the Subsidiary will be disregarded for purposes of computing the Fund's gross income in the current period and also disregarded for all future periods.

Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund. The Fund may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends-paid deduction for income tax purposes.

As determined on October 31, 2012, permanent differences resulting primarily from different book and tax accounting were reclassified at period end. Such differences may be attributed to one or more of the following: non-deductible Rule 12b-1 fees, and Subsidiary income, gain (loss) and expense adjustments. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund. For the period ended October 31, 2012, the Fund recorded the following permanent reclassifications:

Paid-in Capital				Undistributed Net Investment Income (Loss)				Accumulated Net Realized Gains (Losses) on Investments
$	(60,486	)		$	8,483			$	52,003

For tax purposes, distributions of short-term gains are taxable to shareholders as ordinary income.

As of October 31, 2012, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:

Undistributed Ordinary Income				Unrealized Appreciation (Depreciation)				Loss Carryforwards and Deferrals				Other Temporary Differences				Total
$	—			$	85			$	—			$	(36,351	)		$	(36,266	)

The difference between book basis and tax basis distributable earnings is primarily due to organizational expenses.

To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of the Fund not to distribute such gains.

8 Foreign taxes: Foreign taxes withheld, if any, represent amounts withheld by foreign tax authorities, net of refunds recoverable.

9 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., the Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the investment companies in the complex or series thereof can otherwise be made fairly. The Fund's expenses (other than those specific to each class) are allocated proportionally each day among the classes based upon the relative net assets of each class.

11 Derivative instruments: During the six months ended April 30, 2013, the Fund's use of derivatives was limited to commodity futures contracts. The Fund has adopted the provisions of ASC 815 "Derivatives and Hedging" ("ASC 815"). The disclosure requirements of ASC 815 distinguish between derivatives that qualify for hedge accounting and those that do not. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Consolidated Statement of Operations, they do not qualify for hedge accounting. Accordingly, even though the Fund's investments in derivatives may represent economic hedges, they are considered non-hedge transactions for purposes of this disclosure.

Commodity futures contracts: During the six months ended April 30, 2013, the Fund entered into commodity futures contracts (through investments in the Subsidiary) to provide investment exposure to individual commodities, as well as to manage and/or adjust the risk profile of the Fund.

At the time the Fund or Subsidiary enters into a commodity futures contract, it is required to deposit with the futures commission merchant a specified amount of cash or liquid securities, known as "initial margin," which is a percentage of the value of the commodity futures contract being traded that is set by the exchange upon which the futures contract is traded. Each day, the futures contract is valued at the official settlement price of the board of trade or U.S. commodity exchange on which such futures contract is traded. Subsequent payments, known as "variation margin," to and from the broker are made on a daily basis as the market price of the commodity futures contract fluctuates. Daily variation margin adjustments, arising from this "mark to market," are recorded by the Fund or Subsidiary as unrealized gains or losses.

Although some commodity futures contracts by their terms call for actual delivery or acquisition of the underlying securities or currency, in most cases the contracts are closed out prior to delivery by offsetting purchases or sales of matching commodity futures contracts. When the contracts are closed, the Fund or Subsidiary recognizes a gain or loss. Risks of entering into futures contracts include the possibility there may be an illiquid market, possibly at a time of rapidly declining prices, and/or a change in the value of the contract may not correlate with changes in the value of the underlying securities. Futures executed on regulated futures exchanges have minimal counterparty risk to a fund because the exchange's clearinghouse assumes the position of the counterpary in each transaction. Thus, the Fund is exposed to risk only in connection with the clearinghouse and not in connection with the original counterpary to the transaction.

For U.S. federal income tax purposes, the futures transactions undertaken by the Fund or Subsidiary may cause the Fund or Subsidiary to recognize gains or losses from marking contracts to market even though its positions have

not been sold or terminated, may affect the character of the gains or losses recognized as long-term or short-term, and may affect the timing of some capital gains and losses realized by the Fund or Subsidiary. Also, the Fund's or Subsidiary's losses on transactions involving futures contracts may be deferred rather than being taken into account currently in calculating the Fund's or Subsidiary's taxable income.

At April 30, 2013, open positions in commodity futures contracts⁽¹⁾ were:

Expiration

Open Contracts

Position

Unrealized
Appreciation
(Depreciation)

May 2013

7 Aluminum High Grade

Long

(42,828

)

May 2013

6 Lead

Long

(54,989

)

May 2013

2 Nickel

Long

(24,702

)

May 2013

5 Zinc

Long

(30,844

)

June 2013

6 Aluminum High Grade

Long

(23,016

)

June 2013

5 Lead

Long

(30,314

)

June 2013

2 Nickel

Long

(15,099

)

June 2013

5 Zinc

Long

(26,883

)

July 2013

6 Aluminum High Grade

Long

(5,860

)

July 2013

5 Lead

Long

(10,102

)

July 2013

2 Nickel

Long

(16,599

)

July 2013

2 Platinum

Long

(7,911

)

July 2013

5 Zinc

Long

(4,071

)

August 2013

6 Aluminum High Grade

Long

(2,222

)

August 2013

4 Cattle Feeder

Long

(1,852

)

August 2013

6 Gas Oil

Long

(3,615

)

August 2013

3 Gasoline RBOB

Long

(879

)

August 2013

4 Gold 100 Oz.

Long

(51,425

)

August 2013

3 Heating Oil

Long

(2,366

)

August 2013

4 Lead

Long

(1,656

)

August 2013

5 Lean Hogs

Long

(148

)

August2013

5 Light Sweet Crude Oil

Long

(1,776

)

August 2013

5 Live Cattle

Long

(3,239

)

August 2013

5 Natural Gas

Long

(356

)

August 2013

3 Nickel

Long

265

August 2013

5 Zinc

Long

(4,570

)

September 2013

5 Brent Crude Oil

Long

(5,363

)

September 2013

5 Cocoa

Long

1,963

September 2013

2 Coffee

Long

556

September 2013

4 Copper High Grade

Long

937

October 2013

5 Sugar 11

Long

(73

)

November 2013

6 Soybean

Long

(14,046

)

December 2013

11 Corn

Long

(6,039

)

December 2013

4 Cotton No. 2

Long

2,211

December 2013

2 Silver

Long

(536

)

December 2013

3 Soybean Meal

Long

(2,160

)

December 2013

3 Soybean Oil

Long

(3,371

)

Expiration

Open Contracts

Position

Unrealized
Appreciation
(Depreciation)

December 2013

5 Wheat

Long

1,870

December 2013

4 Wheat

Long

1,534

May 2013

7 Aluminum High Grade

Short

33,751

May 2013

6 Lead

Short

47,953

May 2013

2 Nickel

Short

15,135

May 2013

5 Zinc

Short

27,805

June 2013

6 Aluminum High Grade

Short

9,003

June 2013

5 Lead

Short

11,148

June 2013

2 Nickel

Short

16,557

June 2013

5 Zinc

Short

3,867

July 2013

6 Aluminum High Grade

Short

1,790

July 2013

5 Lead

Short

1,711

July 2013

2 Nickel

Short

(183

)

July 2013

5 Zinc

Short

4,180

(216,857

)

(1) Commodity futures are held by the Subsidiary. See Note A-1 of the Notes to Financial Statements.

During the six months ended April 30, 2013, the average notional value of commodity futures contracts was $9,062,088 for long positions and $(2,766,098) for short positions.

The notional value of commodity futures contracts at April 30, 2013 was $10,088,264 for long positions and $(2,935,729) for short positions.

At April 30, 2013, the Fund had deposited $356,966 in a segregated account to cover margin requirements on open futures contracts.

At April 30, 2013, the Fund had the following derivatives (which did not qualify as hedging instruments under ASC 815), grouped by primary risk exposure:

Asset Derivatives

	Commodity Risk		Consolidated Statement of Assets and Liabilities Location
Futures Contracts	$	182,236	Receivable/Payable for
Total Value	$	182,236	variation margin⁽¹⁾

Liability Derivatives

	Commodity Risk			Consolidated Statement of Assets and Liabilities Location
Futures Contracts	$	(399,093	)	Receivable/Payable for
Total Value	$	(399,093	)	variation margin⁽¹⁾

(1) "Futures Contracts" reflects the cumulative appreciation (depreciation) of futures contracts as of April 30, 2013, which is reflected in the Consolidated Statement of Assets and Liabilities under the caption "Net unrealized appreciation (depreciation) in value of investments." The outstanding variation margin as of April 30, 2013, if any, is reflected in the Consolidated Statement of Assets and Liabilities under the caption "Receivable/Payable for variation margin."

The impact of the use of these derivative instruments on the Consolidated Statement of Operations during the six months ended April 30, 2013, was as follows:

Realized Gain (Loss)

	Commodity Risk			Consolidated Statement of Operations Location
Futures Contracts	$	(237,058	)	Net realized gain (loss) on: commodity
Total Realized Gain (Loss)	$	(237,058	)	futures contracts

Change in Appreciation (Depreciation)

	Commodity Risk
Futures Contracts	$	(181,281	)	Change in net unrealized appreciation (depreciation) in value of:
Total Change in Appreciation (Depreciation)	$	(181,281	)	commodity futures contracts

12 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.

13 Expense offset arrangement: Prior to January 1, 2013, the Fund had an expense offset arrangement in connection with its custodian contract. For the six months ended April 30, 2013, the impact of this arrangement was a reduction of expenses of $2.

14 Other: All net investment income and realized and unrealized capital gains and losses of the Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.

Note B—Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:

Management also serves as investment adviser to the Subsidiary. For such investment management services, the Subsidiary pays Management a fee at the annual rate of 0.70% of the first $250 million of the Subsidiary's average daily net assets, 0.675% of the next $250 million, 0.65% of the next $250 million, 0.625% of the next $250 million, 0.60% of the next $500 million, 0.575% of the next $2.5 billion and 0.55% of average daily net assets in excess of $4 billion. Accordingly, for the six months ended April 30, 2013, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.70% of the Subsidiary's average daily net assets.

Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under this agreement. The Subsidiary also retains Management as its administrator, and State Street as its sub-administrator.

Management has contractually agreed to waive current payment of fees and/or reimburse certain expenses of the Institutional Class, Class A and Class C of the Fund so that the total annual operating expenses of those classes do not exceed the expense limitations as detailed in the following table. These undertakings apply to the Fund's direct expenses and exclude interest, taxes, brokerage commissions, acquired fund fees and expenses, extraordinary expenses, and dividend and interest expenses relating to short sales, if any; consequently, net expenses may exceed the contractual expense limitations. The Fund has agreed that each of its respective classes will repay Management for fees and expenses waived or reimbursed for that class provided that repayment does not cause that class' annual operating expenses to exceed its contractual expense limitation at the time the fees and expenses were waived or reimbursed. Any such repayment must be made within three years after the year in which Management incurred the expense. The expenses of the Subsidiary are included in the total expenses used to calculate the reimbursement, which the Fund has agreed to share with the Subsidiary. For the six months ended April 30, 2013, these Subsidiary expenses amounted to $50,375.

During the six months ended April 30, 2013, there was no reimbursement to Management under this agreement.

At April 30, 2013, contingent liabilities to Management under the contractual expense limitation were as follows:

					Expenses Reimbursed In Fiscal Period Ending, October 31,
					2012			2013
					Subject to Repayment until October 31,
	Contractual Expense Limitation⁽¹⁾			Expiration	2015			2016
Institutional Class		1.10	%	10/31/16	$	518,969	⁽²⁾	$	234,377
Class A		1.46	%	10/31/16		13,769	⁽²⁾		6,689
Class C		2.21	%	10/31/16		12,521	⁽²⁾		3,931

(1) Expense limitation per annum of the respective class' average daily net assets.

(2) Period from August 27, 2012 (Commencement of Operations) to October 31, 2012.

Neuberger Berman Fixed Income LLC ("NBFI"), as the sub-adviser to the Fund and the Subsidiary, is retained by Management to provide day-to-day investment management services and receives a monthly fee paid by Management. As investment manager, Management is responsible for overseeing the investment activities of NBFI. Several individuals who are officers and/or Trustees of the Trust are also employees of NBFI, Neuberger Berman LLC ("Neuberger") and/or Management.

Management and NBFI are indirect subsidiaries of Neuberger Berman Group LLC (("NBG") and together with its consolidated subsidiaries ("NB Group")). NBSH Acquisition, LLC ("NBSH" and together with NBG, the "NB Parties"), which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees, senior professionals, and certain of their permitted transferees, owns, as of March 14, 2013, approximately 72% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 28% of such common units. Pursuant to agreements among the NB Parties and the LBHI Parties, as well as the issuance of NBSH common equity to employees with respect to their previously made equity elections relating to 2013 compensation, it is expected that NBSH will own 81% of NBG's common units as of January 1, 2014. NBG has the opportunity to continue to redeem the remaining NBG Class A common units from the LBHI Parties through a process that is expected to end in 2016 (and if necessary, 2017).

Class A shares are generally sold with an initial sales charge of up to 5.75% and no contingent deferred sales charge ("CDSC"), except that a CDSC of 1.00% applies to certain redemptions made within 18 months following purchases of $1 million or more without an initial sales charge. Class C shares are sold with no initial sales charge and a 1.00% CDSC if shares are sold within one year after purchase.

	Underwriter				Broker-Dealer
	Net Initial Sales Charges		CDSC		Net Initial Sales Charges		CDSC
Class A	$	248	$	—	$	—	$	—
Class C		—		—		—		—

Note C—Securities Transactions:

During the six months ended April 30, 2013, there were purchase and sale transactions (excluding commodity futures contracts and short-term investments) of $1,583,074 and $50,341, respectively.

Note D—Fund Share Transactions:

Share activity for the six months ended April 30, 2013 and for the period ended October 31, 2012 was as follows:

	For the Six Months Ended April 30, 2013							For the Period Ended October 31, 2012⁽¹⁾
	Shares Sold		Shares Redeemed			Total		Shares Sold		Total
Institutional Class		383,768		(145,157	)		238,611		505,509		505,509
Class A		7,161		(644	)		6,517		12,901		12,901
Class C		—		—			—		10,000		10,000

(1) Period from August 27, 2012 (Commencement of Operations) to October 31, 2012.

At April 30, 2013, the Neuberger Berman Dynamic Real Return Fund, which is also managed by Management, held 22% of the outstanding shares of the Fund.

The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. Per share amounts that round to less than $0.01 or $(0.01) per share are presented as $0.00 or $(0.00) respectively. Net Asset amounts with a zero balance may reflect actual amounts rounding to less than $0.1 million.

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income		Distributions from Net Realized Capital Gains		Total Distributions
Risk Balanced Commodity Strategy Fund
Institutional Class
4/30/2013 (Unaudited)	$	9.84	$	(0.05	)	$	(0.58	)	$	(0.63	)	$	—	$	—	$	—
Period from 8/27/2012^ to 10/31/2012	$	10.00	$	(0.02	)	$	(0.14	)	$	(0.16	)	$	—	$	—	$	—
Class A
4/30/2013 (Unaudited)	$	9.84	$	(0.06	)	$	(0.59	)	$	(0.65	)	$	—	$	—	$	—
Period from 8/27/2012^ to 10/31/2012	$	10.00	$	(0.03	)	$	(0.13	)	$	(0.16	)	$	—	$	—	$	—
Class C
4/30/2013 (Unaudited)	$	9.83	$	(0.10	)	$	(0.59	)	$	(0.69	)	$	—	$	—	$	—
Period from 8/27/2012^ to 10/31/2012	$	10.00	$	(0.04	)	$	(0.13	)	$	(0.17	)	$	—	$	—	$	—

	Net Asset Value, End of Period		Total Return^††			Net Assets, End of Period (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
Risk Balanced Commodity Strategy Fund
Institutional Class
4/30/2013 (Unaudited)	$	9.21		(6.40	)%**	$	6.9		9.15	%*		1.10	%*		(.96	)%*		7	%**
Period from 8/27/2012^ to 10/31/2012	$	9.84		(1.60	)%**	$	5.0		25.60	%*^‡		1.10	%*^‡		(.99	)%*^‡		0	%**
Class A
4/30/2013 (Unaudited)	$	9.19		(6.61	)%**	$	0.2		9.67	%*		1.46	%*		(1.32	)%*		7	%**
Period from 8/27/2012^ to 10/31/2012	$	9.84		(1.60	)%**	$	0.1		33.04	%*^‡		1.46	%*^‡		(1.36	)%*^‡		0	%**
Class C
4/30/2013 (Unaudited)	$	9.14		(7.02	)%**	$	0.1		10.38	%*		2.21	%*		(2.07	)%*		7	%**
Period from 8/27/2012^ to 10/31/2012	$	9.83		(1.70	)%**	$	0.1		35.12	%*^‡		2.21	%*^‡		(2.11	)%*^‡		0	%**

PRESIDENT'S LETTER					1
PORTFOLIO COMMENTARY					2
FUND EXPENSE INFORMATION					7
SCHEDULE OF INVESTMENTS/TOP TEN EQUITY HOLDINGS					9
FINANCIAL STATEMENTS					24
FINANCIAL HIGHLIGHTS/PER SHARE DATA					39
Directory					42
Proxy Voting Policies and Procedures					43
Quarterly Portfolio Schedule					43
Board Consideration of the Management and Sub-Advisory Agreements					44

HFRX Absolute Return Index:				Designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies; including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage. As a component of the optimization process, the index selects constituents which characteristically exhibit lower volatilities and lower correlations to standard directional benchmarks of equity market and hedge fund industry performance. Fund weights are determined by the optimization process. Constituent funds are selected from an eligible pool of the more than 6,800 funds that report performance to the Hedge Fund Research (HFR) database on a voluntary basis, and rebalanced quarterly. Funds included in the index must meet all of the following criteria: report monthly returns net of all fees; be denominated in USD; be active and accepting new investments; have a minimum 24 months track record; and the Fund's manager must have at least $50 million in assets under management. The index is available daily, with finalized month-end performance available two to three business days after the last business day of the month.
Barclays U.S. Aggregate Bond Index:				An unmanaged index that represents the U.S. domestic investment grade bond market. It is comprised of the Barclays Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment-grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $250 million. Asset backed securities must have at least $500 million deal size and $25 million tranche size. For commercial mortgage-backed securities, the original transaction must have a minimum deal size of $500 million, and a minimum tranche size of $25 million; the current outstanding transaction size must be at least $300 million to remain in the index.
S&P 500 Index:				Widely regarded as the standard for measuring the performance of large-cap stocks traded on U.S. markets and includes a representative sample of leading companies in leading industries.

Actual Expenses and Performance:				The first section of the table provides information about actual account values and actual expenses in dollars, based on the Fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period.
Hypothetical Example for Comparison Purposes:				The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this Fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

	Number of Shares		Value†
Long Positions (108.6%)
Common Stocks (57.5%)
Aerospace & Defense (0.4%)
DigitalGlobe, Inc.		7,050	$	205,790	*^Ø
Triumph Group, Inc.		410		32,759
				238,549
Auto Components (0.2%)
Visteon Corp.		2,000		117,580	*
Automobiles (0.3%)
Fiat SpA		1,458		8,721	*
Harley-Davidson, Inc.		3,400		185,810	^Ø
				194,531
Beverages (0.6%)
Constellation Brands, Inc. Class A		5,178		255,534	*^Ø
Grupo Modelo SAB de CV Series C		10,000		90,988
				346,522
Biotechnology (3.1%)
3SBio, Inc. ADR		500		8,255	*
ACADIA Pharmaceuticals, Inc.		8,260		106,471	*

	Number of Shares		Value†
ThromboGenics NV		1,060	$	51,776	*
				1,927,767
Capital Markets (0.4%)
American Capital Ltd.		388		5,871	*
Evercore Partners, Inc. Class A		6,400		241,600	^Ø
				247,471
Chemicals (1.5%)
Flotek Industries, Inc.		4,540		72,822	*
FMC Corp.		3,825		232,177
Huntsman Corp.		4,900		92,414
LyondellBasell Industries NV Class A		256		15,539
Rockwood Holdings, Inc.		385		24,983
The Mosaic Co.		4,841		298,157
The Sherwin- Williams Co.		1,200		219,732	^Ø
				955,824
Commercial Banks (0.3%)
CIT Group, Inc.		511		21,722	*
Investors Bancorp, Inc.		11		218
PrivateBancorp, Inc.		2,400		46,032
Prosperity Bancshares, Inc.		1,450		66,613

	Principal Amount		Value†
Intelsat Luxembourg SA, 8.13%, due 6/1/23	$	80,000	$	85,200	^ñ
				402,835
Total Corporate Debt Securities (Cost $1,691,099)				1,816,400
Bank Loan Obligations^µ (10.8%)
Aerospace & Defense (0.4%)
Consolidated Precision Products Corp., due 12/20/19		250,000		250,937	^{¢^^Ña}
Commercial Services & Supplies (0.5%)
Sourcehov LLC, 2nd Lien Term Loan, due 4/30/19		37,000		37,648	^{¢^^Ña}
Truven Health Analytics, Inc., Term Loan, due 5/25/19		250,000		252,970
				290,618
Communications Equipment (0.4%)
Securus Technologies Holdings, Inc., 2nd Lien Term Loan, due 4/2/21		59,000		58,926	^{¢^^}
Securus Technologies Holdings, Inc., First Lien Term Loan, due 3/28/20		65,000		65,122	^{¢^^}
Sorenson Communications, Inc., Term Loan, due 10/31/14		106,000		107,666	^{¢^^}
				231,714
Diversified Consumer Services (0.3%)
TriNet HR Corp., Term Loan, due 10/24/18		165,000		166,031	^{¢^^}
Diversified Financial Services (1.4%)
Tomkins Air Distribution Technologies, 2nd Lien Term Loan, 9.25%, due 10/31/20		600,000		615,000	^Ña

	Principal Amount		Value†
Walter Investment Management Corp., Term Loan, 5.75%, due 11/28/17	$	243,750	$	247,762
				862,762
Diversified Telecommunication Services (0.5%)
Fairpoint Communications Inc., Term Loan B, 7.50%, due 2/14/19		333,000		327,819	^{¢^^}
Energy Equipment & Services (0.1%)
Texas Competitive Holdings LLC, Extended Term Loan, due 10/10/17		106,000		77,927	^{¢^^}
Food & Staples Retailing (0.4%)
Sprouts Farmers Market LLC, Term Loan, due 4/23/20		267,000		267,668	^{¢^^}
Food Products (0.4%)
Dole Food Co. Inc., Term Loan G, due 4/24/19		250,000		251,562	^{¢^^}
Health Care Providers & Services (1.1%)
Genesis HealthCare LLC, Term Loan, 10.00%, due 10/2/17		188,301		187,360	^Ña
HCA, Inc., Term Loan B5, due 3/31/17		500,000		501,665
				689,025
Health Care Technology (0.8%)
The TriZetto Group Inc., 2nd Lien Term Loan, 8.50%, due 3/27/19		500,000		511,250	^Ña
IT Services (0.9%)
EVERTEC Group LLC, Term Loan, due 4/17/20		54,000		53,865	^{¢^^}
Virtu Financial LLC, Term Loan, due 7/15/16		500,000		505,625
				559,490

	Principal Amount		Value†
Transportation Infrastructure (0.2%)
Livingston International, Inc., 2nd Lien Term Loan, due 4/18/20	$	131,000	$	133,947	^{¢^^Ña}
Wireless Telecommunication Services (0.2%)
LightSquared, Inc., Term Loan B, due 10/1/14		160,000		154,133	^{¢^^}
Total Bank Loan Obligations (Cost $6,648,645)				6,781,960
	Number of Contracts
Purchased Options (0.2%)
Call Options (0.1%)
Baxter International, Inc., Call, May 2013 @ 72.5		4		460
McMoRan Exploration Co., Call, June 2013 @ 16		121		8,470
McMoRan Exploration Co., Call, May 2013 @ 15		88		13,904
Newcastle Investment Corp., Call, May 2013 @ 12.5		78		390
Quest Diagnostics, Inc., Call, May 2013 @ 60		8		80
Sprint Nextel Corp., Call, Aug 2013 @ 7		164		6,232	^±
Sprint Nextel Corp., Call, Jan 2014 @ 7		61		2,684	^±
Verizon Communications, Inc., Call, July 2013 @ 55		31		3,317
				35,537

	Number of Contracts		Value†
Put Options (0.1%)
Actavis, Inc., Put, Aug 2013 @ 105		8	$	4,960
American International Group, Inc., Put, May 2013 @ 30		20		60	^±
BMC Software, Inc., Put, May 2013 @ 40		38		950	^±
BMC Software, Inc., Put, May 2013 @ 41		21		525	^±
Constellation Brands, Inc., Put, May 2013 @ 40		10		50
Covidien PLC, Put, Jan 2014 @ 60		36		11,916	^±
iShares Russell 2000 Index Fund, Put, Aug 2013 @ 88		66		12,540	^±
Lamar Advertising Co., Put, May 2013 @ 40		50		1,400	^±
Life Technologies Corp., Put, May 2013 @ 60		38		190	^±
Nuance Communications, Inc., Put, Oct 2013 @ 21		61		18,971	^±
SPDR S&P 500 ETF Trust, Put, May 2013 @ 156		10		620	^±
The Mosaic Co., Put, Jan 2014 @ 55		44		14,300
Wright Medical Group, Inc., Put, June 2013 @ 7		89		—	^±
				66,482
Total Purchased Options (Cost $146,151)				102,019

	Number of Shares			Value†
SPDR S&P 500 ETF Trust		(3,448	)	$	(550,577	)
SPDR S&P Oil & Gas Exploration & Production ETF		(1,648	)		(94,546	)
Vanguard REIT ETF		(2,169	)		(163,282	)
Total Exchange Traded Funds Sold Short (Proceeds $(2,757,630))					(2,929,105	)
	Principal Amount
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government Sold Short (0.2%)^ØØ£
U.S. Treasury Bonds, 2.75%, due 11/15/42	$	(47,000	)		(45,590	)
U.S. Treasury Notes, 2.00%, due 2/15/23		(77,000	)		(79,250	)
Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government Sold Short (Proceeds $(124,557))					(124,840	)
Corporate Debt Securities Sold Short (0.1%)^ØØ£
Metals & Mining (0.1%)
Cliffs Natural Resources, Inc., 6.25%, due 10/1/40 (Proceeds $(47,455))		(48,000	)		(46,817	)
Total Short Positions (Proceeds $(12,973,618))					(13,622,612	)

THE FUNDS
President's Letter					1
PORTFOLIO COMMENTARY
Dynamic Real Return Fund					2
Global Allocation Fund					5
Long Short Fund					8
FUND EXPENSE INFORMATION					13
SCHEDULE OF INVESTMENTS/TOP TEN EQUITY HOLDINGS
Dynamic Real Return Fund					15
Global Allocation Fund					18
Positions by Industry					21
Long Short Fund					22
FINANCIAL STATEMENTS					33
FINANCIAL HIGHLIGHTS (ALL CLASSES)/ PER SHARE DATA
Dynamic Real Return Fund					55
Global Allocation Fund					55
Long Short Fund					57
Directory					60
Proxy Voting Policies and Procedures					61
Quarterly Portfolio Schedule					61
Board Consideration of the Management and Sub-Advisory Agreements					62

Bank Loans	9.3	%
Commodities	10.1
Emerging Markets	7.6
Global Treasury Inflation Protected Securities	25.2
High Yield Securities	9.2
Master Limited Partnerships	9.3
Real Estate Investment Trusts	10.0
S&P Energy	9.0
S&P Materials	8.7
Short-Term Investments	1.6
Total	100.0	%

Actual Expenses and Performance:				The first section of the table provides information about actual account values and actual expenses in dollars, based on the Fund's actual performance during the period when the Fund was operational. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period.
Hypothetical Example for Comparison Purposes:				The second section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

1	Neuberger Berman Risk Balanced Commodity Strategy Fund Institutional Class	10.1	%
2	Neuberger Berman Floating Rate Income Fund Institutional Class	9.3	%
3	Neuberger Berman High Income Bond Fund Institutional Class	9.2	%
4	Neuberger Berman Emerging Markets Equity Fund Institutional Class	7.6	%
5	Exxon Mobil Corp.	2.4	%
6	Chevron Corp.	1.4	%
7	Monsanto Co.	1.0	%
8	E.I. du Pont de Nemours & Co.	0.9	%
9	Simon Property Group, Inc.	0.9	%
10	Regency Energy Partners LP	0.8	%

	Principal Amount		Value†
France Government Bond OAT, Bonds, 1.10%, due 7/25/22	EUR	32,068	$	46,990	^a
France Government Bond OAT, Bonds, 1.80%, due 7/25/40	EUR	73,355		125,813	^a
Italy Buoni Poliennali Del Tesoro, Bonds, 2.55%, due 9/15/41	EUR	37,472		44,528	^a
Italy Buoni Poliennali Del Tesoro, Senior Unsecured Notes, 2.35%, due 9/15/35	EUR	117,798		141,556	^a
Italy Buoni Poliennali Del Tesoro, Senior Unsecured Notes, 2.60%, due 9/15/23	EUR	326,253		429,392	^a
Japanese Government Cpi Linked Bond, Senior Unsecured Notes, 1.40%, due 6/10/18	JPY	2,260,900		26,648	^a
Sweden Government Bond, Bonds, 0.25%, due 6/1/22	SEK	965,000		153,273	^a
Sweden Government Bond, Bonds, 0.50%, due 6/1/17	SEK	210,000		34,594	^a
United Kingdom Gilt Inflation Linked Bonds, 0.13%, due 3/22/24	GBP	137,851		244,542	^a
United Kingdom Gilt Inflation Linked Bonds, 0.13%, due 3/22/29	GBP	83,410		145,659	^a

	Number of Shares		Value†
Mutual Funds (36.1%)
Neuberger Berman Emerging Markets Equity Fund Institutional Class		70,685	$	1,195,934	^§
Neuberger Berman Floating Rate Income Fund Institutional Class		140,358		1,454,081	^§
Neuberger Berman High Income Bond Fund Institutional Class		147,928		1,443,406	^§
Neuberger Berman Risk Balanced Commodity Strategy Fund Institutional Class		171,487		1,580,087	*^§
Total Mutual Funds (Cost $5,695,767)				5,673,508
Short-Term Investments (1.6%)
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $256,727)		256,727		256,727
Total Investments (99.6%) (Cost $15,248,531)				15,653,821	^##
Cash, receivables and other assets, less liabilities (0.4%)				60,666^±
Total Net Assets (100.0%)			$	15,714,487

	Number of Shares		Value†
Long Positions (87.5%)
Common Stocks (24.3%)
Australia (0.3%)
Arrium Ltd.		92,712	$	81,697
Seven West Media Ltd.		9,167		19,007
				100,704
Belgium (1.1%)
Ageas		1,775		65,032
KBC Ancora		8,425		159,883	*
KBC Groep NV		3,156		123,858
				348,773
Bermuda (1.6%)
Argo Group International Holdings Ltd.		4,740		196,473	^È
Assured Guaranty Ltd.		5,857		120,830	^È
K Wah International Holdings Ltd.		159,000		87,079
Maiden Holdings Ltd.		8,154		84,231
				488,613

	Number of Shares		Value†
Canada (0.9%)
Alacer Gold Corp.		18,071	$	54,171
Nevsun Resources Ltd.		14,531		54,377
Norbord, Inc.		2,965		98,887	*
Petrominerales Ltd.		13,066		72,110
				279,545
France (0.2%)
Boiron SA		902		51,115
Greece (2.2%)
Hellenic Telecommunications Organization SA		44,012		382,547	*
JUMBO SA		9,008		84,821	*
Public Power Corp. SA		22,958		222,526	*
				689,894
Italy (0.7%)
ASTM SpA		14,534		173,222	*
Safilo Group SpA		1,460		23,938	*
Societa Cattolica di Assicurazioni SCRL		1,484		29,140	*
				226,300

1	Brookfield Infrastructure Partners LP	2.0	%
2	PetSmart, Inc.	1.8	%
3	Dunkin' Brands Group, Inc.	1.5	%
4	DaVita HealthCare Partners, Inc.	1.5	%
5	Visa, Inc. Class A	1.5	%
6	eBay, Inc.	1.5	%
7	Genpact Ltd.	1.5	%
8	Philip Morris International, Inc.	1.4	%
9	Weyerhaeuser Co.	1.3	%
10	Enbridge, Inc.	1.3	%

1	iShares Russell Midcap Index Fund	(3.1	)%
2	iShares Core S&P Small-Cap ETF	(1.2	)%
3	iShares Russell 2000 Index Fund	(1.2	)%
4	SPDR S&P Retail ETF	(0.8	)%
5	Lam Research Corp.	(0.6	)%
6	Fossil, Inc.	(0.4	)%
7	Halliburton Co.	(0.4	)%
8	Seagate Technology PLC	(0.4	)%
9	Market Vectors Semiconductor	(0.3	)%
10	Dun & Bradstreet Corp.	(0.3	)%

	Number of Shares		Value†
Long Positions (98.9%)
Common Stocks (62.6%)
Aerospace & Defense (1.3%)
Boeing Co.		32,000	$	2,925,120
Precision Castparts Corp.		28,000		5,356,120
				8,281,240
Air Freight & Logistics (0.6%)
United Parcel Service, Inc. Class B		40,000		3,433,600
Airlines (1.3%)
Delta Air Lines, Inc.		462,700		7,930,678	*
Biotechnology (0.5%)
Vertex Pharmaceuticals, Inc.		40,400		3,103,528	*
Capital Markets (0.4%)
BlackRock, Inc.		8,500		2,265,250
Chemicals (1.4%)
Ashland, Inc.		67,800		5,777,238
Taminco Corp.		186,200		2,806,034	*
				8,583,272
Commercial Banks (1.3%)
Fifth Third Bancorp		170,800		2,908,724

	Number of Shares		Value†
U.S. Bancorp		103,000	$	3,427,840
Wells Fargo & Co.		38,600		1,466,028
				7,802,592
Communications Equipment (1.1%)
Cisco Systems, Inc.		231,500		4,842,980
Juniper Networks, Inc.		99,600		1,648,380	*
				6,491,360
Computers & Peripherals (1.3%)
Apple, Inc.		13,800		6,109,950
SanDisk Corp.		36,900		1,935,036	*
				8,044,986
Consumer Finance (0.2%)
SLM Corp.		62,000		1,280,300
Diversified Consumer Services (0.6%)
K12, Inc.		133,100		3,390,057	*
Diversified Financial Services (1.9%)
Citigroup, Inc.		90,800		4,236,728
CME Group, Inc.		75,300		4,582,758
JPMorgan Chase & Co.		64,000		3,136,640
				11,956,126

	Number of Shares		Value†
Electric Utilities (2.4%)
Brookfield Infrastructure Partners LP		319,499	$	12,348,636
Northeast Utilities		52,000		2,357,160
				14,705,796
Electronic Equipment, Instruments & Components (0.3%)
Amphenol Corp. Class A		16,000		1,208,320
FEI Co.		11,820		755,061
				1,963,381
Food & Staples Retailing (0.7%)
Walgreen Co.		84,000		4,158,840
Food Products (0.1%)
WhiteWave Foods Co. Class A		46,800		791,388	*
Health Care Equipment & Supplies (0.6%)
Sirona Dental Systems, Inc.		54,000		3,971,160	*
Health Care Providers & Services (1.9%)
Accretive Health, Inc.		244,800		2,580,192	*

	Number of Shares		Value†
Banks (0.4%)
GMAC Capital Trust I, Ser. 2, 8.13%		79,000	$	2,163,810
Diversified Financial Services (0.0%)
Citigroup Capital XIII, 7.88%		2,600		73,424
Total Preferred Stocks (Cost $2,723,021)				2,990,210
	Principal Amount
Corporate Debt Securities (14.1%)
Auto Manufacturers (0.9%)
Chrysler Group LLC/CG Co-Issuer, Inc., Secured Notes, 8.25%, due 6/15/21	$	4,810,000		5,519,475
Auto Parts & Equipment (1.7%)
American Axle & Manufacturing, Inc., Guaranteed Notes, 6.63%, due 10/15/22		5,080,000		5,429,250
The Goodyear Tire & Rubber Co., Guaranteed Notes, 7.00%, due 5/15/22		3,475,000		3,757,344
The Goodyear Tire & Rubber Co., Guaranteed Notes, 6.50%, due 3/1/21		1,600,000		1,674,000
				10,860,594
Building Materials (0.0%)
Masco Corp., Senior Unsecured Notes, 5.95%, due 3/15/22		100,000		113,178

	Principal Amount		Value†
Coal (1.2%)
Alpha Natural Resources, Inc., Guaranteed Notes, 9.75%, due 4/15/18	$	755,000	$	819,175
Arch Coal, Inc., Guaranteed Notes, 7.00%, due 6/15/19		6,276,000		5,820,990
Arch Coal, Inc., Guaranteed Notes, 7.25%, due 10/1/20		650,000		598,000
				7,238,165
Computers (0.5%)
Apple, Inc., Senior Unsecured Notes, 3.85%, due 5/4/43		3,000,000		2,982,540
Diversified Financial Services (0.9%)
E*TRADE Financial Corp., Senior Unsecured Notes, 6.38%, due 11/15/19		1,490,000		1,601,750
E*TRADE Financial Corp., Senior Unsecured Notes, 6.75%, due 6/1/16		705,000		763,162
SLM Corp., Senior Unsecured Medium Term Notes, 6.00%, due, 1/25/17		100,000		108,250
SLM Corp., Senior Unsecured Notes, 5.50%, due 1/25/23		3,050,000		3,052,675
				5,525,837

	Principal Amount		Value†
Electric (1.0%)
DPL, Inc., Senior Unsecured Notes, 7.25%, due 10/15/21	$	5,630,000	$	5,995,950
Entertainment (0.1%)
Regal Entertainment Group, Guaranteed Notes, 9.13%, due 8/15/18		300,000		336,000
Food (0.1%)
Smithfield Foods, Inc., Senior Unsecured Notes, 6.63%, due 8/15/22		260,000		288,600
SUPERVALU, Inc., Senior Unsecured Notes, 8.00%, due 5/1/16		500,000		547,500
				836,100
Healthcare-Services (0.5%)
CHS/Community Health Systems, Inc., Guaranteed Notes, 7.13%, due 7/15/20		2,216,000		2,476,380
DaVita, Inc., Guaranteed Notes, 5.75%, due 8/15/22		700,000		745,500
HCA Holdings, Inc., Senior Unsecured Notes, 7.75%, due 5/15/21		100,000		113,375
				3,335,255
Iron—Steel (0.7%)
AK Steel Corp., Guaranteed Notes, 7.63%, due 5/15/20		3,465,000		3,005,887
United States Steel Corp., Senior Unsecured Notes, 7.38%, due 4/1/20		845,000		891,475

	Principal Amount		Value†
Plains Exploration & Production Co., Guaranteed Notes, 6.88%, due 2/15/23	$	200,000	$	227,750
SandRidge Energy, Inc., Guaranteed Notes, 7.50%, due 3/15/21		3,395,000		3,522,313
SandRidge Energy, Inc., Guaranteed Notes, 8.75%, due 1/15/20		125,000		134,375
				12,397,313
Retail (0.8%)
JC Penney Corp., Inc., Senior Unsecured Notes, 5.75%, due 2/15/18		735,000		662,419
JC Penney Corp., Inc., Senior Unsecured Notes, 5.65%, due 6/1/20		4,930,000		4,233,637
				4,896,056
Semiconductors (0.6%)
Advanced Micro Devices, Inc., Senior Unsecured Notes, 8.13%, due 12/15/17		3,695,000		3,861,275
Telecommunications (1.4%)
Frontier Communications Corp., Senior Unsecured Notes, 7.63%, due 4/15/24		1,700,000		1,772,250
MetroPCS Wireless, Inc., Guaranteed Notes, 6.63%, due 11/15/20		4,560,000		4,936,200
Sprint Nextel Corp., Senior Unsecured Notes, 6.00%, due 11/15/22		1,715,000		1,787,888

	Neuberger Berman Management LLC 605 Third Avenue 2nd Floor New York, NY 10158-0180 800.877.9700 Institutional Services: 800.366.6264 Web site: www.nb.com N0217 06/13

(as a % of Total Investments)
Corporate Debt Securities	25.7	%
Mortgage-Backed Securities	3.7
U.S. Government Agency Securities	3.6
Short-Term Investments	67.0
Total	100.0	%

(as a % of Total Notional Value)
Commodity Futures:
Agriculture	16.0	%
Energy	33.7
Industrial Metals	17.7
Livestock	9.0
Precious Metals	16.8
Softs	6.8
Total	100.0	%

(a)(1)	A copy of the Code of Ethics is incorporated by reference to Neuberger Berman Equity Funds’ Form N-CSR, Investment Company Act file number 811-00582 (filed May 6, 2013).
(a)(2)	The certifications required by Rule 30a-2(a) of the Act and Section 302 of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley Act”) are filed herewith.
(a)(3)	Not applicable to the Registrant.
(b)	The certifications required by Rule 30a-2(b) of the Act and Section 906 of the Sarbanes-Oxley Act are filed herewith.