<PAGE>
LOGO
Neuberger Berman
Equity Series-Registered
Trademark-
GENESIS INSTITUTIONAL SEMI-ANNUAL REPORT
FEBRUARY 29, 2000
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
THE FUND
CHAIRMAN'S LETTER A-2
PORTFOLIO COMMENTARY A-3
FINANCIAL STATEMENTS B-1
FINANCIAL HIGHLIGHTS B-7
PER SHARE DATA
THE PORTFOLIO
SCHEDULE OF INVESTMENTS C-1
TOP TEN EQUITY HOLDINGS
FINANCIAL STATEMENTS C-6
FINANCIAL HIGHLIGHTS C-13
DIRECTORY D-1
OFFICERS AND TRUSTEES D-2
</TABLE>
The "Neuberger Berman" name and logo are service marks of Neuberger Berman, LLC.
"Neuberger Berman Management Inc." and the fund name in this report are either
service marks or registered trademarks of Neuberger Berman Management Inc.
- -C-2000.
A-1
<PAGE>
CHAIRMAN'S LETTER April 20, 2000
Dear Fellow Shareholder,
This is my first opportunity to address shareholders as Chairman of Neuberger
Berman Equity Funds. Let me begin by thanking you for your loyalty and
appreciation of our firm's investment skills. The Neuberger Berman Funds are
committed to excellence. We understand that in the highly competitive mutual
fund industry, only those companies that serve shareholders well will prosper.
As you review the performance of all our domestic equity funds during this
reporting period, one thing stands out. The growth stock funds (Century,
Millennium and Manhattan) have performed appreciably better than our value funds
(Focus, Genesis, Guardian, Partners, Regency, and Socially Responsive). The
reason is simple. Growth stocks have materially outperformed value stocks across
the market capitalization spectrum during this reporting period. This does not
mean they will continue to do so indefinitely. The relative performance of
growth and value stocks has been cyclical. Throughout stock market history, they
have taken turns in the lead. It is important to realize that over the long
term, the performance of growth stocks and value stocks is almost identical.
That said, you can be sure that we strive to achieve the best possible
performance in our value funds as well as our growth funds, sticking to our
investment disciplines. We believe prudent long-term investors should maintain
portfolios with a sensible balance of funds in both categories.
In reading the fund reports, you will also note that our growth and value fund
managers have very different perspectives on today's market. This is to be
expected from portfolio managers who are passionate advocates of their
respective investment disciplines. Beauty is in the eye of the beholder,
especially in the stock market.
In closing, I look forward to serving you as Chairman of Neuberger Berman
Equity Funds. I welcome comments from shareholders on issues concerning the
funds. So, if you have something on your mind, please feel free to write me.
Sincerely,
[PETER SUNDMAN SIG]
Peter Sundman
Chairman of the Board
Neuberger Berman Equity Assets
A-2
<PAGE>
PORTFOLIO COMMENTARY
Neuberger Berman
- ----------------------------------------------------------------------
Genesis Institutional
For the six-month period concluding February 29, 2000, Genesis Institutional
gained 7.00% compared to the Russell 2000's 35.82% return over the same time
period.*
We are pleased the Portfolio posted respectable gains during a period that was
particularly challenging for small-cap value investors. Performance comparisons
to the Russell 2000 do not take into account the enormous discrepancy between
small-cap growth stock and small-cap value stock performance during this
reporting period. While the Genesis portfolio underperformed its official
Russell 2000 benchmark, it more than doubled the 2.82% return for the Russell
2000 Value Index.
During the last six months, technology was just about the only game in town in
the small-cap stock market. As could be expected, our technology investments did
quite well, more than doubling in value in first half fiscal 2000. However, as a
result of our value parameters, the portfolio was significantly under-weighted
in the technology sector. We like technology and recognize the enormous growth
potential of high quality tech companies. However, unless and until the group
corrects and we can find more reasonably priced technology stock opportunities,
we will likely remain under-weighted versus the Russell 2000. We have been
taking some profits in tech holdings that have moved out of legitimate value
range and using the proceeds to build positions in more reasonably priced
technology stocks. But, true tech stock bargains are becoming more scarce as
stocks in the most promising sub-sectors of the industry continue to soar.
Our energy investments, primarily small oil services companies, also
contributed to returns during this reporting period. As the price of oil
climbed, investors began anticipating increased drilling activity and bid up oil
services companies. We are now seeing signs of a pickup in drilling and believe
that better earnings going forward will continue to buoy our oil services
investments.
A-3
<PAGE>
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Genesis Institutional (Cont'd)
Our biggest performance disappointments fall into two categories: defense and
aerospace, and banking. In the case of defense and aerospace holdings, Alliant
Techsystems and Cordant Technologies, stock price declines were not due to poor
operating results, but rather fallout from the earnings problems experienced by
high profile industry leaders Raytheon, Lockheed Martin, and Boeing. We think
Alliant and Cordant can continue to grow earnings at a decent clip, and that
once the cloud over the industry passes, earn a much better appraisal from
investors.
Small bank stock holdings such as Peoples Heritage Financial and Webster
Financial Corp. were knocked down by a headwind formed by rising interest rates
and the flattening yield curve. We think current stock prices already discount
what is perceived to be a hostile economic environment for banks. In addition,
at currently depressed prices, the odds have increased that these stocks will
attract suitors when consolidation in the banking industry resumes after its Y2K
hiatus.
It has been a rather strange small-cap stock market. In view of what's been
going on in the technology and biotechnology groups, you could argue that the
best way to make money was to buy stocks that had very high price/earnings
ratios or no earnings at all. Obviously, value investors don't subscribe to this
logic. We try to find good little companies trading at valuation discounts.
We are finding a lot of such opportunities in beaten down "old economy"
companies that will be prime beneficiaries of "new economy" technologies. If
this sounds farfetched, we would remind you that during past periods of great
technological innovation -- the railroads, the electric light, the assembly
line, the telephone -- many users of new technologies were rewarded as much or
more than the creators of the new technologies. We expect history to repeat
itself in today's "new economy."
Let us give you an example. Be advised, this should not be viewed as a
recommendation, but rather an example of our investment discipline. AAR Corp. is
a distributor of new and used aerospace parts. It serves all
A-4
<PAGE>
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Genesis Institutional (Cont'd)
the major airlines and should be able to continue to grow its basic business
nicely as airlines outsource more of their replacement parts operations. AAR is
not a technology resistant dinosaur. It already has sophisticated computer
systems that help it procure parts on demand, trace the history of used parts
(required by the FAA), manage inventories, and efficiently fulfill orders.
AAR also has an exciting new business. It is a 50% joint venture partner with
the major airlines in an aerospace parts procurement and distribution
cooperative called SITA. SITA is going on-line. Costs should go down for
everyone involved and profits should rise.
While some of the original equipment manufacturers have teamed up to form
on-line buying groups, none have the used parts expertise or sophisticated
computer tracking ability of AAR. This should not be underestimated, as the size
of the aerospace used parts market dwarfs that of the new parts market.
You can buy this "old economy" company poised to exploit "new economy"
technologies for just 11.5 times projected calendar 2000 earnings. At some time
in the future, AAR's share of SITA could be spun off to shareholders. In view of
the valuations currently being given to business-to-business (B2B) e-commerce
networks, this seems likely to be a very big bonus.
In closing, growth is still in and value is still out. What will change this?
Perhaps the combination of investors realizing that severely depressed "old
economy" stocks can survive and prosper in the "new economy", and recognition
that valuations for many high flying "new economy" stocks defy economic gravity.
We will continue to seek out quality small-cap companies trading at reasonable
valuations relative to
A-5
<PAGE>
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Genesis Institutional (Cont'd)
above average growth prospects. Call us tortoises to the small-cap growth stock
hares. We hope our shareholders will accompany us in the race for long-term
investment profits.
Sincerely,
/s/ Judith Vale Robert D'Alelio
Judith Vale and Robert D'Alelio
PORTFOLIO CO-MANAGERS
*For index definitions, refer to page A-7, titled "Glossary of Indices." The
Portfolio invests in many securities not included in the indices listed.
The composition, industries and holdings of the Portfolio are subject to
change. Genesis Portfolio is invested in a wide array of stocks and no single
holding makes up more than a small fraction of the Portfolio's total assets.
The risks involved in seeking capital appreciation from investments primarily
in companies with small market capitalizations are set forth in the prospectus.
Past performance is no guarantee of future results.
A-6
<PAGE>
GLOSSARY OF INDICES
<TABLE>
<S> <C>
S&P 500 INDEX: An unmanaged index generally considered
to be representative of stock market
activity.
RUSSELL 1000-REGISTERED TRADEMARK- Measures the performance of the 1,000
INDEX: largest companies in the Russell
3000-Registered Trademark- Index (which
measures the performance of the 3,000
largest U.S. companies based on total
market capitalization). The Russell
1000 Index represents approximately 92%
of the total market capitalization of
the Russell 3000 Index.
RUSSELL 1000-REGISTERED TRADEMARK- Measures the performance of those
VALUE INDEX: Russell 1000 companies with lower
price-to-book ratios and lower
forecasted growth values.
RUSSELL 2000-REGISTERED TRADEMARK- An unmanaged index consisting of
INDEX: securities of the 2,000 issuers having
the smallest capitalization in the
Russell 3000-Registered Trademark-
Index, representing approximately 8% of
the Russell 3000 total market
capitalization. The smallest company's
market capitalization is roughly $178
million.
RUSSELL 2000-REGISTERED TRADEMARK- Measures the performance of those
GROWTH INDEX: Russell 2000-Registered Trademark-
Index companies with higher
price-to-book ratios and higher
forecasted growth values.
RUSSELL 2000-REGISTERED TRADEMARK- Measures the performance of those
VALUE INDEX: Russell 2000-Registered Trademark-
Index companies with lower
price-to-book ratios and lower
forecasted growth values.
RUSSELL 1000-REGISTERED TRADEMARK- Measures the performance of the Russell
GROWTH INDEX: 1000-Registered Trademark- companies
with higher price-to-book ratios and
higher forecasted growth values.
EAFE-REGISTERED TRADEMARK- INDEX: Also known as the Morgan Stanley
Capital International Europe,
Australasia, Far East Index. An
unmanaged index of over 1,000 foreign
stock prices. The index is translated
into U.S. dollars and includes
reinvestment of all dividends and
capital gain distributions.
THE RUSSELL MIDCAP-TRADEMARK- An unmanaged index that measures the
GROWTH INDEX: performance of those Russell Midcap
Index companies with higher
price-to-book ratios and higher
forecasted growth values.
RUSSELL MIDCAP VALUE INDEX: An unmanaged index that measures the
performance of those Russell Midcap-
Trademark- Index companies with lower
price-to-book ratios and lower
forecasted growth values.
</TABLE>
Please note that indices do not take into account any fees and expenses of the
individual securities that they track and that individuals cannot invest
directly in any index. Data about the performance of these indices are prepared
or obtained by Neuberger Berman Management Inc. and include reinvestment of all
dividends and capital gain distributions. The Portfolio may invest in many
securities not included in the above-described indices.
A-7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger Berman
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Genesis Institutional
<TABLE>
<CAPTION>
February 29,
2000
(000'S OMITTED EXCEPT PER SHARE AMOUNT) (UNAUDITED)
<S> <C>
-------------
ASSETS
Investment in Portfolio, at value (Note A) $ 206,304
-------------
LIABILITIES
Payable for Trust shares redeemed 2,804
Accrued expenses 35
Payable to administrator -- net (Note B) 15
-------------
2,854
-------------
NET ASSETS at value $ 203,450
-------------
NET ASSETS consist of:
Par value $ 9
Paid-in capital in excess of par value 199,211
Accumulated undistributed net investment
income 155
Accumulated net realized gains on investment 5,030
Net unrealized depreciation in value of
investment (955)
-------------
NET ASSETS at value $ 203,450
-------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 9,443
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NET ASSET VALUE, offering and redemption price per
share $21.54
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</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-1
<PAGE>
STATEMENT OF OPERATIONS
Neuberger Berman
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Genesis Institutional
<TABLE>
<CAPTION>
For the
Six Months
Ended
February 29,
2000
(000'S OMITTED) (UNAUDITED)
<S> <C>
------------
INVESTMENT INCOME
Investment income from Portfolio (Note A) $ 1,287
------------
Expenses:
Administration fee (Note B) 159
Registration and filing fees 80
Shareholder reports 10
Legal fees 6
Custodian fees 5
Auditing fees 2
Trustees' fees and expenses 1
Miscellaneous 4
Expenses from Portfolio (Notes A & B) 804
------------
Total expenses 1,071
Expenses reimbursed by administrator and
reduced by custodian fee expense offset
arrangement (Note B) (169)
------------
Total net expenses 902
------------
Net investment income 385
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM
PORTFOLIO (NOTE A)
Net realized gain on investment securities 5,985
Change in net unrealized depreciation of
investment securities 7,752
------------
Net gain on investments from Portfolio
(Note A) 13,737
------------
Net increase in net assets resulting from
operations $ 14,122
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</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger Berman
- ----------------------------------------------------------------------
Genesis Institutional
<TABLE>
<CAPTION>
Period from
Six Months July 1, 1999
Ended (Commencement
February 29, of Operations) to
2000 August 31,
(000'S OMITTED) (UNAUDITED) 1999
<S> <C> <C>
-------------------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 385 $ 190
Net realized gain on investments
from Portfolio (Note A) 5,985 454
Change in net unrealized
depreciation of investments from
Portfolio (Note A) 7,752 (8,707)
-------------------------------
Net increase (decrease) in net
assets resulting from operations 14,122 (8,063)
-------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (420) --
Net realized gain on investments (1,154) --
-------------------------------
Total distributions to shareholders (1,574) --
-------------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 10,567 241,112
Proceeds from reinvestment of
dividends and distributions 1,574 --
Payments for shares redeemed (45,463) (8,825)
-------------------------------
Net increase (decrease) from Trust
share transactions (33,322) 232,287
-------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (20,774) 224,224
NET ASSETS:
Beginning of period 224,224 --
-------------------------------
End of period $ 203,450 $ 224,224
-------------------------------
Accumulated undistributed net
investment income at end of period $ 155 $ 190
-------------------------------
NUMBER OF TRUST SHARES:
Sold 536 11,479
Issued on reinvestment of dividends
and distributions 78 --
Redeemed (2,229) (421)
-------------------------------
Net increase (decrease) in shares
outstanding (1,615) 11,058
-------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger Berman February 29, 2000 (Unaudited)
- ----------------------------------------------------------------------
Equity Series
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger Berman Genesis Institutional (the "Fund") is a separate
operating series of Neuberger Berman Equity Series (the "Trust"), a Delaware
business trust organized pursuant to a Trust Instrument dated September 22,
1998. The Trust is registered as a diversified, 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"). The Fund had no operations until July 1, 1999,
other than matters relating to its organization and registration as a
diversified, open-end management investment company under the 1940 Act, and
registration of its shares under the 1933 Act. The trustees of the Trust 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.
The Fund seeks to achieve its investment objective by investing all of its
net investable assets in the Neuberger Berman Genesis Portfolio of Equity
Managers Trust (the "Portfolio") having the same investment objective and
policies as the Fund. The value of the Fund's investment in the Portfolio
reflects the Fund's proportionate interest in the net assets of the Portfolio
(13.42% at February 29, 2000). The performance of the Fund is directly
affected by the performance of the Portfolio. The financial statements of the
Portfolio, including the Schedule of Investments, are included elsewhere in
this report and should be read in conjunction with the Fund's financial
statements.
2) PORTFOLIO VALUATION: The Fund records its investment in the Portfolio at
value. Investment securities held by the Portfolio are valued as indicated in
the notes following the Portfolio's Schedule of Investments.
3) TAXES: The Fund is treated as a separate entity for U.S. Federal income tax
purposes. It is the policy of the Fund to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies, as defined in applicable sections of the Internal Revenue Code,
and to make distributions of investment company taxable income and net
capital gains (after reduction for any amounts available for U.S. Federal
income tax purposes as capital loss carryforwards) sufficient to relieve it
from all, or substantially all, U.S. Federal income taxes. Accordingly, the
Fund paid no U.S. Federal income taxes and no provision for U.S. Federal
income taxes was required.
B-4
<PAGE>
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net of
Portfolio expenses, daily on its investment in the Portfolio. Income
dividends and distributions from net realized capital gains, if any, are
normally distributed in December. Income dividends and capital gain
distributions to shareholders are recorded on the ex-dividend date. 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.
The Fund distinguishes between dividends on a tax basis and a financial
reporting basis and only distributions in excess of tax basis earnings and
profits are reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains.
5) EXPENSE ALLOCATION: The Fund bears all costs of its operations. Expenses
incurred by the Trust with respect to any two or more funds are allocated in
proportion to the net assets of such funds, except where a more appropriate
allocation of expenses to each fund can otherwise be made fairly. Expenses
directly attributable to a fund are charged to that fund.
6) OTHER: All net investment income and realized and unrealized capital gains
and losses of the Portfolio are allocated pro rata among its respective Funds
and any other investors in the Portfolio.
NOTE B -- ADMINISTRATION FEES, DISTRIBUTION ARRANGEMENTS, AND OTHER TRANSACTIONS
WITH AFFILIATES:
The Fund retains Neuberger Berman Management Inc. ("Management") as its
administrator under an Administration Agreement ("Agreement"). Pursuant to this
Agreement the Fund pays Management an administration fee at the annual rate of
0.15% of the Fund's average daily net assets. The Fund indirectly pays for
investment management services through its investment in the Portfolio (see Note
B of Notes to Financial Statements of the Portfolio).
Management has contractually undertaken to reimburse the Fund through
December 31, 2002, for its operating expenses plus its pro rata portion of the
Portfolio's operating expenses (including the fees payable to Management, but
excluding interest, taxes, brokerage commissions, and extraordinary expenses)
which exceed, in the aggregate, 0.85% per annum of the Fund's average daily net
assets. For the six months ended February 29, 2000, such excess expenses
amounted to $168,784.
Management and Neuberger Berman, LLC ("Neuberger"), a member firm of The New
York Stock Exchange and sub-adviser to the Portfolio, are wholly owned
subsidiaries of Neuberger Berman Inc., a publicly held company. Several
individuals who are officers and/or trustees of the Trust are also employees of
Neuberger and/or Management.
B-5
<PAGE>
The Fund also has a distribution agreement with Management. Management
receives no compensation therefor and no commissions for sales or redemptions of
shares of beneficial interest of the Fund.
The Portfolio has an expense offset arrangement in connection with its
custodian contract. The impact of this arrangement, reflected in the Statement
of Operations under the caption Expenses from Portfolio, was a reduction of $20.
NOTE C -- INVESTMENT TRANSACTIONS:
During the six months ended February 29, 2000, additions and reductions in
the Fund's investment in the Portfolio amounted to $8,788,000 and $40,711,000,
respectively.
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Fund without audit by independent auditors. Annual reports
contain audited financial statements.
B-6
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger Berman
- --------------------------------------------------------------------------------
Genesis Institutional(1)
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements. It should be read in conjunction with its corresponding Portfolio's
Financial Statements and notes thereto.
<TABLE>
<CAPTION>
Six Months
Ended Period from
February 29, July 1, 1999(2)
2000 to August 31,
(UNAUDITED) 1999
<S> <C> <C>
-------------------------------
Net Asset Value, Beginning of Period $20.28 $21.01
-------------------------------
Income From Investment Operations
Net Investment Income .04 .02
Net Gains or Losses on Securities
(both realized and unrealized) 1.37 (.75)
-------------------------------
Total From Investment Operations 1.41 (.73)
-------------------------------
Less Distributions
Dividends (from net investment
income) (.04) --
Distributions (from net capital
gains) (.11) --
-------------------------------
Total Distributions (.15) --
-------------------------------
Net Asset Value, End of Period $21.54 $20.28
-------------------------------
Total Return(3)(4) +7.00% -3.47%
-------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $203.5 $224.2
-------------------------------
Ratio of Gross Expenses to Average
Net Assets(5)(6) .85% .85%
-------------------------------
Ratio of Net Expenses to Average Net
Assets(6)(7) .85% .85%
-------------------------------
Ratio of Net Investment Income to
Average Net Assets(6) .36% .48%
-------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-7
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger Berman February 29, 2000 (Unaudited)
- ----------------------------------------------------------------------
Genesis Institutional
1) The per share amounts and ratios which are shown reflect income and expenses,
including the Fund's proportionate share of the Portfolio's income and
expenses.
2) The date investment operations commenced.
3) Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each fiscal
period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee future
results. 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 certain expenses.
4) Not annualized.
5) The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset arrangements.
6) Annualized.
7) After reimbursement of expenses by Management as described in Note B of Notes
to Financial Statements. Had Management not undertaken such action the
annualized ratios of net expenses to average daily net assets would have
been:
<TABLE>
<CAPTION>
Six Months Period from
Ended July 1, 1999 to
February 29, August 31,
2000 1999
- --------------------------------------------------------------------------------
<S> <C> <C>
Net Expenses 1.01% 1.15%
</TABLE>
B-8
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger Berman February 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
Genesis Portfolio
<TABLE>
<CAPTION>
TOP TEN EQUITY HOLDINGS
----------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. Dallas Semiconductor 3.1%
2. Zebra Technologies 2.7%
3. AptarGroup Inc. 2.6%
4. National-Oilwell 2.2%
5. AAR Corp. 2.1%
6. Fair, Isaac & Co. 2.0%
7. Newport News Shipbuilding 2.0%
8. Methode Electronics Class A 1.9%
9. Alliant Techsystems 1.9%
10. Black Box 1.9%
</TABLE>
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- --------------------- ---------------
<C> <S> <C>
COMMON STOCKS (94.6%)
AEROSPACE (4.1%)
1,364,950 AAR Corp. $ 32,418(2)
787,200 Aviall Inc. 6,445
504,400 Cordant Technologies 16,330
248,750 Ducommun Inc. 2,317
329,700 Moog, Inc. Class A 5,893
----------
63,403
----------
AUTOMOTIVE (0.9%)
628,500 Donaldson Co. 14,298
----------
BANKING & FINANCIAL (5.6%)
135,200 Bank United 3,541
498,100 Community First Bankshares 6,973
667,600 Cullen/Frost Bankers 14,353
331,400 Highland Bancorp 5,468(2)
169,950 Hudson United Bancorp 3,431
303,000 OceanFirst Financial 4,829
1,118,300 Peoples Heritage Financial
Group 11,882
</TABLE>
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- --------------------- ---------------
<C> <S> <C>
769,675 Sterling Bancshares $ 7,312
300,350 Texas Regional Bancshares 7,340
1,017,300 Webster Financial 21,491
----------
86,620
----------
BUILDING, CONSTRUCTION & FURNISHING (1.1%)
254,800 Lincoln Electric Holdings 4,968
273,600 Simpson Manufacturing 11,594
----------
16,562
----------
BUSINESS SERVICES (0.3%)
789,400 SOS Staffing Services 3,947(2)
----------
CONSUMER CYCLICALS (0.3%)
176,300 Valassis Communications 4,881
----------
CONSUMER PRODUCTS & SERVICES (4.8%)
811,000 Alberto-Culver Class A 16,017
381,638 Block Drug 12,546
1,066,000 Church & Dwight 18,189
390,300 Matthews International 9,440
1,036,800 Ruddick Corp. 13,932
462,000 The First Years 3,754
----------
73,878
----------
DEFENSE (4.9%)
545,200 Alliant Techsystems 29,509(2)
1,102,100 Newport News Shipbuilding 31,203
723,700 Primex Technologies 15,198(2)
----------
75,910
----------
DIAGNOSTIC EQUIPMENT (0.4%)
463,500 ADAC Laboratories 5,765
----------
</TABLE>
C-1
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger Berman
- --------------------------------------------------------------------------------
Genesis Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- --------------------- ---------------
<C> <S> <C>
ELECTRONICS (4.6%)
467,600 Benchmark Electronics $ 14,788
1,187,400 Dallas Semiconductor 47,941
180,000 SCI Systems 7,245
----------
69,974
----------
ENERGY (1.9%)
677,300 Cabot Oil & Gas 10,710
150,000 Cross Timbers Oil 1,293
808,290 Swift Energy 9,548
894,500 Unit Corp. 7,771
----------
29,322
----------
FINANCIAL TECHNOLOGY (2.8%)
640,100 Fair, Isaac & Co. 31,245
293,100 Investment Technology Group 11,358
----------
42,603
----------
HEALTH CARE (9.5%)
413,000 Acuson Corp. 5,524
132,500 Datascope Corp. 5,284
669,300 DENTSPLY International 17,151
1,126,500 Haemonetics Corp. 26,825
925,600 Mentor Corp. 25,685
421,950 Patterson Dental 15,203
473,700 STAAR Surgical 5,684
835,000 Trigon Healthcare 26,668
458,600 Universal Health Services
Class B 17,828
----------
145,852
----------
INDUSTRIAL & COMMERCIAL PRODUCTS (6.7%)
557,800 Brady Corp. 15,130
325,300 Dionex Corp. 10,267
543,900 Hussmann International 7,853
643,500 IDEX Corp. 15,927
1,065,200 Kaydon Corp. 24,500
268,900 Roper Industries 7,327
</TABLE>
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- --------------------- ---------------
<C> <S> <C>
1,826,400 Wallace Computer Services $ 19,063
203,750 Woodhead Industries 3,311
----------
103,378
----------
INSURANCE (4.6%)
753,200 Annuity and Life Re 17,041
96,500 Brown & Brown 3,185
657,800 FBL Financial Group 10,607
1,446,700 Mutual Risk Management 19,892
891,500 Scottish Annuity & Life
Holdings 7,076(2)
848,700 W. R. Berkley 13,632
----------
71,433
----------
LODGING (0.3%)
499,500 Prime Hospitality 4,246
----------
MACHINERY & EQUIPMENT (0.8%)
643,620 Gardner Denver Machinery 12,229
----------
OFFICE EQUIPMENT (1.8%)
1,019,500 United Stationers 27,399
----------
OIL SERVICES (11.1%)
318,700 Cal Dive International 11,473
681,600 Friede Goldman Halter 3,578
983,800 Global Industries 10,084
992,100 IRI International 4,837
556,500 Nabors Industries 19,964
1,369,412 National-Oilwell 33,208
798,400 Oceaneering International 15,170
781,600 Offshore Logistics 7,767
767,300 Pride International 11,366
460,400 Smith International 28,861
631,000 Tuboscope Inc. 10,530
451,200 UTI Energy 14,467
----------
171,305
----------
PACKING & CONTAINERS (2.6%)
1,646,600 AptarGroup Inc. 39,415
----------
</TABLE>
C-2
<PAGE>
February 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
Genesis Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- --------------------- ---------------
<C> <S> <C>
PUBLISHING & BROADCASTING (1.3%)
302,300 Houghton Mifflin $ 12,035
272,900 Meredith Corp. 7,812
----------
19,847
----------
RESTAURANTS (1.1%)
785,050 Brinker International 17,075
----------
RETAILING (3.8%)
679,624 99 Cents Only Stores 17,033
353,300 Ann Taylor Stores 6,735
660,000 Claire's Stores 11,509
125,000 Payless ShoeSource 4,937
451,800 ShopKo Stores 7,511
282,800 Whole Foods Market 10,738
----------
58,463
----------
TECHNOLOGY (15.9%)
798,700 Analysts International 10,583
391,800 Black Box 29,312
488,600 CACI International 13,895
892,700 CIBER, Inc. 20,755
474,200 Davox Corp. 18,138
295,100 Jack Henry & Associates 20,620
173,500 Keane, Inc. 4,164
106,200 Kronos Inc. 6,744
350,000 Mastech Corp. 11,594
141,000 META Group 4,371
513,900 Methode Electronics Class A 29,870
71,000 SBS Technologies 3,865
410,100 Transaction Systems Architects 18,506
185,300 Wind River Systems 10,759
623,300 Zebra Technologies 41,488
----------
244,664
----------
</TABLE>
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- --------------------- ---------------
<C> <S> <C>
TRANSPORTATION (0.5%)
228,400 Circle International Group $ 5,581
213,600 Maritrans Inc. 1,402
----------
6,983
----------
UTILITIES, ELECTRIC & GAS (2.9%)
93,600 Atmos Energy 1,603
125,700 CH Energy Group 3,590
648,600 Montana Power 25,539
78,000 National Fuel Gas 3,193
252,900 NUI Corp. 6,006
140,100 Otter Tail Power 5,184
----------
45,115
----------
TOTAL COMMON STOCKS (COST
$1,269,841) 1,454,567
----------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
- ---------------------
- --------------------- ---------------
<C> <S> <C>
REPURCHASE AGREEMENTS (2.2%)
$34,309,000 State Street Bank and Trust
Co. Repurchase Agreement,
5.71%, due 3/1/00, dated
2/29/00, Maturity Value
$34,314,442, Collateralized
by $35,165,000 Fannie Mae,
Notes, 6.40%, due 9/27/01
(Collateral Value
$35,342,935)
(COST $34,309) 34,309(3)
----------
</TABLE>
C-3
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger Berman February 29, 2000 (Unaudited)
- --------------------------------------------------------------------------------
Genesis Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Principal Value(1)
Amount (000's omitted)
- --------------------- ---------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (6.0%)
$20,000,000 Merrill Lynch & Co., Inc.,
5.73%, due 3/3/00 $ 19,994
25,000,000 Wal-Mart Stores Inc., 5.75%,
due 3/7/00 24,976
47,518,102 N&B Securities Lending Quality
Fund, LLC 47,518
----------
TOTAL SHORT-TERM INVESTMENTS
(COST $92,488) 92,488(3)
----------
TOTAL INVESTMENTS (102.8%)
(COST $1,396,638) 1,581,364(4)
Liabilities, less cash,
receivables and other assets
[(2.8%)] (43,559)
----------
TOTAL NET ASSETS (100.0%) $1,537,805
----------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
C-4
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Neuberger Berman February 29, 2000 (Unaudited)
- ----------------------------------------------------------------------
Genesis Portfolio
1) Investment securities of the Portfolio are valued at the latest sales price;
securities for which no sales were reported, unless otherwise noted, are
valued at the mean between the closing bid and asked prices. The Portfolio
values all other securities by a method the trustees of Equity Managers Trust
believe accurately reflects fair value. Foreign security prices are furnished
by independent quotation services expressed in local currency values. Foreign
security prices are translated from the local currency into U.S. dollars
using current exchange rates. Short-term debt securities with less than 60
days until maturity may be valued at cost which, when combined with interest
earned, approximates market value.
2) Affiliated issuer (see Note E of Notes to Financial Statements).
3) At cost, which approximates market value.
4) The cost of investments for U.S. Federal income tax purposes was
$1,396,697,000. At February 29, 2000, gross unrealized appreciation of
investments was $329,645,000 and gross unrealized depreciation of investments
was $144,978,000, resulting in net unrealized appreciation of $184,667,000,
based on cost for U.S. Federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
C-5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger Berman
- ----------------------------------------------------------------------
Genesis Portfolio
<TABLE>
<CAPTION>
February 29,
2000
(000'S OMITTED) (UNAUDITED)
<S> <C>
-------------
ASSETS
Investments in securities, at market value*
(Notes A & E) -- see Schedule of
Investments:
Unaffiliated issuers $ 1,487,748
Non-controlled affiliated issuers 93,616
-------------
1,581,364
Cash 1
Receivable for securities sold 22,492
Dividends and interest receivable 1,610
Prepaid expenses and other assets 46
-------------
1,605,513
-------------
LIABILITIES
Payable for collateral on securities loaned
(Note A) 47,518
Payable for securities purchased 18,981
Payable to investment manager (Note B) 878
Accrued expenses and other payables 331
-------------
67,708
-------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 1,537,805
-------------
NET ASSETS consist of:
Paid-in capital $ 1,353,079
Net unrealized appreciation in value of
investment securities 184,726
-------------
NET ASSETS $ 1,537,805
-------------
*Cost of investments:
Unaffiliated issuers $ 1,295,175
Non-controlled affiliated issuers 101,463
-------------
Total cost of investments $ 1,396,638
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
C-6
<PAGE>
STATEMENT OF OPERATIONS
Neuberger Berman
- ----------------------------------------------------------------------
Genesis Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
February 29,
2000
(000'S OMITTED) (UNAUDITED)
<S> <C>
------------
INVESTMENT INCOME
Income:
Dividend income -- unaffiliated issuers $ 6,991
Dividend income -- non-controlled affiliated
issuers 524
Interest income 2,139
------------
Total income 9,654
------------
Expenses:
Investment management fee (Note B) 5,806
Custodian fees (Note B) 163
Auditing fees 20
Trustees' fees and expenses 12
Insurance expense 11
Legal fees 6
Accounting fees 5
Miscellaneous 17
------------
Total expenses 6,040
------------
Net investment income 3,614
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment securities
sold in unaffiliated issuers 61,250
Net realized loss on investment securities
sold in non-controlled affiliated issuers (5,188)
Change in net unrealized appreciation of
investment securities 43,805
------------
Net gain on investments 99,867
------------
Net increase in net assets resulting from
operations $ 103,481
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
C-7
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger Berman
- ----------------------------------------------------------------------
Genesis Portfolio
<TABLE>
<CAPTION>
Six Months
Ended Year
February 29, Ended
2000 August 31,
(000'S OMITTED) (UNAUDITED) 1999
<S> <C> <C>
--------------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 3,614 $ 18,739
Net realized gain (loss) on
investments 56,062 (110,390)
Change in net unrealized
appreciation (depreciation) of
investments 43,805 413,682
--------------------------
Net increase in net assets resulting
from operations 103,481 322,031
--------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 50,683 528,302
Reductions (367,463) (911,584)
--------------------------
Net decrease in net assets resulting
from transactions in investors'
beneficial interests (316,780) (383,282)
--------------------------
NET DECREASE IN NET ASSETS (213,299) (61,251)
NET ASSETS:
Beginning of period 1,751,104 1,812,355
--------------------------
End of period $ 1,537,805 $ 1,751,104
--------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
C-8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger Berman February 29, 2000 (Unaudited)
- ----------------------------------------------------------------------
Equity Managers Trust
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger Berman Genesis Portfolio (the "Portfolio") is a separate
operating series of Equity Managers Trust ("Managers Trust"), a New York
common law trust organized as of December 1, 1992. Managers Trust is
registered as a diversified, open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act"). Other regulated
investment companies sponsored by Neuberger Berman Management Inc.
("Management"), whose financial statements are not presented herein, also
invest in the Portfolio and other portfolios of Managers Trust.
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
2) PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the Portfolio's Schedule of Investments.
3) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the Portfolio
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 original issue discount,
where applicable, and accretion of discount on short-term investments, is
recorded on the accrual basis. Realized gains and losses from securities
transactions are recorded on the basis of identified cost.
4) TAXES: Managers Trust intends to comply with the requirements of the Internal
Revenue Code. Each portfolio of Managers Trust also intends to conduct its
operations so that each of its investors will be able to qualify as a
regulated investment company. Each portfolio will be treated as a partnership
for U.S. Federal income tax purposes and is therefore not subject to U.S.
Federal income tax.
5) EXPENSE ALLOCATION: The Portfolio bears all costs of its operations. Expenses
incurred by Managers Trust with respect to any two or more portfolios are
allocated in proportion to the net assets of such portfolios, except where a
more appropriate allocation of expenses to each portfolio can otherwise be
made fairly. Expenses directly attributable to a portfolio are charged to
that portfolio.
6) SECURITY LENDING: Securities loans involve certain risks in the event a
borrower should fail financially, including delays or inability to recover
the lent securities or foreclose against the collateral. The investment
manager, under the general supervision of Managers Trust's Board of Trustees,
monitors the creditworthiness of the parties to whom the Portfolio makes
security loans. The Portfolio will not lend
C-9
<PAGE>
securities on which covered call options have been written, or lend
securities on terms which would prevent each of its investors from qualifying
as a regulated investment company. The Portfolio entered into a Securities
Lending Agreement with Morgan Stanley & Co. Incorporated ("Morgan"). The
Portfolio receives cash collateral equal to at least 100% of the current
market value of the loaned securities. The Portfolio invests the cash
collateral in the N&B Securities Lending Quality Fund, LLC ("investment
vehicle"), which is managed by State Street Bank and Trust Company ("State
Street") pursuant to guidelines approved by Managers Trust's investment
manager. Income earned on the investment vehicle is paid to Morgan monthly.
The Portfolio receives a fee, payable monthly, negotiated by the Portfolio
and Morgan, based on the number and duration of the lending transactions. At
February 29, 2000, the value of the securities loaned and the value of the
collateral were $46,586,000 and $47,518,000, respectively.
7) REPURCHASE AGREEMENTS: The Portfolio may enter into repurchase agreements
with institutions that the Portfolio's investment manager has determined are
creditworthy. Each repurchase agreement is recorded at cost. The Portfolio
requires that the securities purchased in a repurchase transaction be
transferred to the custodian in a manner sufficient to enable the Portfolio
to obtain those securities in the event of a default under the repurchase
agreement. The Portfolio monitors, on a daily basis, the value of the
securities transferred to ensure that their value, including accrued
interest, is greater than amounts owed to the Portfolio under each such
repurchase agreement.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Portfolio retains Management as its investment manager under a Management
Agreement. For such investment management services, the Portfolio pays
Management a fee at the annual rate of 0.85% of the first $250 million of the
Portfolio's average daily net assets, 0.80% of the next $250 million, 0.75% of
the next $250 million, 0.70% of the next $250 million, and 0.65% of average
daily net assets in excess of $1 billion.
Management and Neuberger Berman, LLC ("Neuberger"), a member firm of The New
York Stock Exchange and sub-adviser to the Portfolio, are wholly owned
subsidiaries of Neuberger Berman Inc., a publicly held company. Neuberger is
retained by Management to furnish it with investment recommendations and
research information without added cost to the Portfolio. Several individuals
who are officers and/or trustees of Managers Trust are also employees of
Neuberger and/or Management.
The Portfolio has an expense offset arrangement in connection with its
custodian contract. The impact of this arrangement, reflected in the Statement
of Operations under the caption Custodian fees, was a reduction of $149.
C-10
<PAGE>
NOTE C -- SECURITIES TRANSACTIONS:
During the six months ended February 29, 2000, there were purchase and sale
transactions (excluding short-term securities) of $211,484,000 and $546,464,000,
respectively.
During the six months ended February 29, 2000, brokerage commissions on
securities transactions amounted to $961,000, of which Neuberger received
$410,000, and other brokers received $551,000.
NOTE D -- LINE OF CREDIT:
At February 29, 2000, the Portfolio was a holder of a single committed,
unsecured $100,000,000 line of credit with State Street, to be used only for
temporary or emergency purposes. Interest is charged on borrowings under this
agreement at the overnight Federal Funds Rate plus 0.75% per annum. A facility
fee of 0.09% (0.07% prior to October 1, 1999) per annum of the available line of
credit is charged, of which the Portfolio has agreed to pay its pro rata share,
based on the ratio of its individual net assets to the net assets of all the
participants at the time the fee is due and payable. The fee is paid quarterly
in arrears. No compensating balance is required. Other investment companies
managed by Management also participate in this line of credit on the same terms.
Because several investment companies participate, there is no assurance that the
Portfolio will have access to the entire $100,000,000 at any particular time.
The Portfolio had no loans outstanding pursuant to this line of credit at
February 29, 2000, nor had the Portfolio utilized this line of credit at any
time prior to that date.
NOTE E -- INVESTMENTS IN NON-CONTROLLED AFFILIATES*:
<TABLE>
<CAPTION>
BALANCE OF GROSS GROSS BALANCE OF
SHARES HELD PURCHASES SALES SHARES HELD VALUE
AUGUST 31, AND AND FEBRUARY 29, FEBRUARY 29,
NAME OF ISSUER: 1999 ADDITIONS REDUCTIONS 2000 2000
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AAR Corp. 1,771,350 0 406,400 1,364,950 $32,418,000
Alliant Techsystems 663,200 0 118,000 545,200 29,509,000
Aviall Inc.** 1,219,500 0 432,300 787,200 6,445,000
Davox Corp.** 1,075,600 0 601,400 474,200 18,138,000
DONCASTERS PLC ADR** 478,300 0 478,300 0 0
Highland Bancorp 331,400 0 0 331,400 5,468,000
Primex Technologies 800,400 0 76,700 723,700 15,198,000
SOS Staffing Services 814,400 0 25,000 789,400 3,947,000
Scottish Annuity & Life Holdings 857,900 33,600 0 891,500 7,076,000
</TABLE>
*AFFILIATED ISSUERS, AS DEFINED IN THE 1940 ACT, INCLUDE ISSUERS IN WHICH THE
PORTFOLIO HELD 5% OR MORE OF THE OUTSTANDING VOTING SECURITIES.
**AT FEBRUARY 29, 2000, THE ISSUERS OF THESE SECURITIES WERE NO LONGER
AFFILIATED WITH THE PORTFOLIO.
C-11
<PAGE>
NOTE F -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Portfolio without audit by independent auditors. Annual reports
contain audited financial statements.
C-12
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger Berman
- --------------------------------------------------------------------------------
Genesis Portfolio
<TABLE>
<CAPTION>
Six Months
Ended
February 29,
2000 Year Ended August 31,
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(1) .76%(2) .75% .72% .77% .85% --
----------------------------------------------------------------------------------
Net Expenses .76%(2) .75% .72%(3) .77%(3) .85%(3) .94%(3)
----------------------------------------------------------------------------------
Net Investment Income .45%(2) 1.02% 1.13% .32% .27% .25%
----------------------------------------------------------------------------------
Portfolio Turnover Rate 14% 33% 18% 18% 21% 37%
----------------------------------------------------------------------------------
Net Assets, End of Period (in millions) $1,537.8 $1,751.1 $1,812.4 $1,083.7 $259.9 $142.2
----------------------------------------------------------------------------------
</TABLE>
1) For fiscal periods ending after September 1, 1995, the Portfolio is required
to calculate an expense ratio without taking into consideration any expense
reductions related to expense offset arrangements.
2) Annualized.
3) Had the investment manager not waived a portion of the management fee, the
annualized ratios of net expenses to average daily net assets would have
been:
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31,
1998 1997 1996 1995
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------
Net Expenses .74% .87% .95% .97%
</TABLE>
C-13
<PAGE>
DIRECTORY
INVESTMENT MANAGER, ADMINISTRATOR
AND DISTRIBUTOR
Neuberger Berman Management Inc.
605 Third Avenue 2nd Floor
New York, NY 10158-0180
800.877.9700 or 212.476.8800
Institutional Services 800.366.6264
SUB-ADVISER
Neuberger Berman, LLC
605 Third Avenue
New York, NY 10158-3698
CUSTODIAN AND SHAREHOLDER
SERVICING AGENT
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
ADDRESS CORRESPONDENCE TO:
Neuberger Berman Funds
Institutional Services
605 Third Avenue 2nd Floor
New York, NY 10158-0180
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, NW
2nd Floor
Washington, DC 20036-1800
- -C- 2000 Neuberger Berman Management Inc.
D-1
<PAGE>
OFFICERS AND TRUSTEES
Peter E. Sundman
CHAIRMAN OF THE BOARD AND TRUSTEE
Michael M. Kassen
PRESIDENT AND TRUSTEE
Faith Colish
TRUSTEE
Howard A. Mileaf
TRUSTEE
Edward I. O'Brien
TRUSTEE
John T. Patterson, Jr.
TRUSTEE
John P. Rosenthal
TRUSTEE
Cornelius T. Ryan
TRUSTEE
Gustave H. Shubert
TRUSTEE
Daniel J. Sullivan
VICE PRESIDENT
Michael J. Weiner
VICE PRESIDENT
Richard Russell
TREASURER
Claudia A. Brandon
SECRETARY
Barbara DiGiorgio
ASSISTANT TREASURER
Celeste Wischerth
ASSISTANT TREASURER
Stacy Cooper-Shugrue
ASSISTANT SECRETARY
C. Carl Randolph
ASSISTANT SECRETARY
D-2
<PAGE>
Statistics and projections in this report are de-
rived from sources deemed to be reliable but
cannot be regarded as a representation of fu-
ture results of the Fund. This report
is prepared for the general information of
shareholders and is not an offer of shares
of the Fund. Shares are sold only through the
currently effective prospectus, which must pre-
cede or accompany this report.
[LOGO]
NEUBERGER BERMAN MANAGEMENT INC.
605 Third Avenue 2nd Floor
New York, NY 10158-0180
SHAREHOLDER SERVICES
800.877.9700
INSTITUTIONAL SERVICES
800.366.6264
www.nbfunds.com
RECYCLE LOGO A0584 04/00
