<PAGE>
<PAGE>
SEMI-ANNUAL REPORT
------------------
February 29, 1996
Neuberger & Berman Management Inc.(Registered Trademark) Neuberger & Berman
INTERNATIONAL FUND
(Registered Trademark)
605 THIRD AVENUE 2ND FLOOR
NEW YORK, NY 10158-0180
SHAREHOLDER SERVICES
800.877.9700 [LOGO]
212.476.8848 FAX
INSTITUTIONAL SERVICES
800.366.6264
Statistics and projections in this report are derived from sources deemed to be
reliable but cannot be regarded as a representation of future 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 precede or accompany this report.
[LOGO] PRINTED ON RECYCLED PAPER
WITH SOY BASED INKS NBESAR040296
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
THE FUND THE PORTFOLIO
<S> <C>
CHAIRMAN'S LETTER 4 SCHEDULE OF INVESTMENTS 22
PORTFOLIO MANAGER'S TOP TEN EQUITY HOLDINGS
COMMENTARY 7 FINANCIAL STATEMENTS 28
FINANCIAL STATEMENTS 12 FINANCIAL HIGHLIGHTS 35
FINANCIAL HIGHLIGHTS 19 DIRECTORY 36
PER SHARE DATA OFFICERS AND TRUSTEES 37
</TABLE>
3
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CHAIRMAN'S LETTER April 12, 1996
Dear Shareholder,
Over the six-month period ended February 29, 1996, the MSCI EAFE(R) Index rose
7.04%. In contrast, the S&P "500" Index experienced an overall rise of 15.32%,
while the Dow Jones Industrial Average was up over 20%.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
Total Returns in Percentage
<CAPTION>
S&P "500" Index MSCI EAFE Int'l Index
<S> <C> <C>
March - 95 2.95% 7.42%
April - 95 2.94% 3.62%
May - 95 4.00% -1.33%
June - 95 2.32% -1.89%
July - 95 3.32% 6.08%
August - 95 0.25% -3.95%
September - 95 4.22% 1.82%
October - 95 -0.36% -2.82%
November - 95 4.39% 2.65%
December - 95 1.93% 3.89%
January - 96 3.40% 0.29%
February - 96 0.93% 0.20%
</TABLE>
Despite the difference in performance between the domestic and international
markets, we remained optimistic about selected foreign markets. For example,
Asia, out of favor for nearly two years, attracted new attention as investors
acknowledged the bargains available in the Far East. Developing nations in the
Pacific Basin, such as Thailand, Singapore, Indonesia, Korea, and Malaysia,
grew nearly four times faster than the United States and established European
economies. Taxes remained low, and the middle class continued to gain power.
Unfortunately, rapid economic growth did not translate into a boom in the re-
gion's stock markets. This was due mainly to Japan's poor overall market per-
formance, which had some ripple effects upon its neighboring countries. The
fact that Asian stocks outside Japan were unduly depressed allowed us to pur-
chase high-quality companies that, in our judgement, were available at under-
valued share prices. Japan's stock market did, however, take a turn for the
4
<PAGE>
better in the fourth quarter of 1995, when the depreciated yen managed to sup-
port the sagging Nikkei Index. Japan is still a major force in the world econo-
my; however, problems remain, including a high number of non-performing loans
within the banking sector, relative political instability, and high stock pric-
es.
Unsettled Latin American markets experienced lackluster performance during the
six-month period ended February 29, 1996, just as they had since the start of
1995. Economic and political reforms were taking root, but it continued to be
an unsteady process. A general movement toward privatization continued, which
we believe will ultimately provide an added lift to Latin American markets.
Even though the financial markets of Mexico, Argentina, and Chile were heading
down in the first quarter of 1996, we felt a number of strong companies took
undue beatings in their share prices, thereby creating a bounty of value oppor-
tunities.
Compared to the turbulence in other foreign markets, Europe was a picture of
relative stability. Most European governments have been working toward common
fiscal ground in an effort to unify trade relations through the Maastricht
Treaty. European countries tried to meet critical treaty deadlines by cutting
interest rates and lowering inflation with public job reductions and government
program cuts, moves that proved especially favorable for key stock markets such
as France and Germany.
We will continue to follow the rapid changes in world markets closely, and make
what we believe are prudent decisions based on stock values and the overall
events affecting the many markets in which we invest. Please read the following
interview to find out what factors affected your portfolio manager's strategy
over the six-month period. If you have any questions, please call us at
800-877-9700. As always, we remain committed to serving your investment needs.
Sincerely,
/s/ Stanley Egener
Stanley Egener
Chairman of the Board
Neuberger&Berman Equity Funds
5
<PAGE>
* The S&P "500" Index is an unmanaged index generally considered to be repre-
sentative of U.S. stock market activity.
The MSCI EAFE(R) Index, also known as the Morgan Stanley Capital International
Europe, Australia, Far East Index, is an unmanaged index of over 1,000 foreign
stock prices that is generally considered to be representative of interna-
tional stock market activity. The prices of securities included in the index
are translated into U.S. dollars. The index assumes reinvestment of all divi-
dends and capital gain distributions. The risks involved in seeking capital
appreciation from investments principally in companies based outside the
United States are set forth in the Prospectus.
Please note that indices do not take into account any fees or expenses of in-
vesting in the individual securities that they track, and that individuals
cannot invest directly in any index. Data about these indices are prepared or
obtained by Neuberger&Berman Management Inc., and include reinvestment of all
dividends and capital gain distributions. The Portfolio invests in many secu-
rities that are not included in the above-described indices. Past performance
does not guarantee future results.
6
<PAGE>
PORTFOLIO MANAGER'S COMMENTARY
Neuberger&Berman
- --------------------------------------------------------------------------------
International Fund
FELIX ROVELLI -- Portfolio Manager
Q.HOW DID THE FUND PERFORM OVER THE SIX-MONTH PERIOD?
A.From August 31, 1995 to February 29, 1996, the International Fund in-
creased in value by 3.94% -- compared to an increase of 7.04% for our
benchmark, the unmanaged EAFE(R) Index. (An explanation follows.)
Q.WHAT WAS YOUR INVESTMENT STRATEGY OVER THIS PERIOD?
A.Our performance during the period was heavily influenced by two major de-
cisions regarding our Portfolio allocation to Japan and emerging markets.
We initially increased our weighting in Japan to 17% at the beginning of
September 1995 when the Nikkei Index was below the 18,000 level, at a
time when we saw some value in the Japanese electronics sector. We subse-
quently took profits in November, and by the end of February of this year
had only 13% of the Portfolio allocated to Japan, inclusive of futures
contracts. When you consider that approximately 43% of the MSCI EAFE(R)
Index is in Japanese equities, our position represented a significant
underweighting. While we agreed with the assessment of an improving Japa-
nese economy, we just could not find companies that offered attractive
valuation levels.
While our underweighted position in Japan negatively affected our perfor-
mance during that country's market rally since November of 1995 -- which
came on the back of upward revisions in earnings due mostly to the yen's
depreciation -- we remained underweighted there and looked to profit from
other Asian markets which had higher growth rates and lower multiples
such as Hong Kong, Singapore, and Malaysia. The Portfolio kept over 20%
of its assets in the Pacific Basin (excluding Japan).
Our allocation in Europe was relatively stable, and comprised slightly
over 50% of the Portfolio's total assets by the end of
7
<PAGE>
- --------------------------------------------------------------------------------
International Fund (Cont'd)
February. Within the region, we preferred Continental Europe, while we
were relatively underweighted in the United Kingdom. This was due to un-
certainty about upcoming elections and the fact that we felt the British
market had reached fair valuation. We were particularly attracted to Ire-
land, Denmark, and Sweden instead, since they offered what we considered
the best values in Europe. Our large European position helped the perfor-
mance of the Portfolio since many of the issues we owned outperformed
their respective markets.
Our allocation in Latin America remained stable (between 6% and 7% of as-
sets) as well, although many of the economies in the region did not. Much
of our exposure was in export, telecommunications and beverage-related
stocks because there was generally less volatility in these dollar-linked
companies.
Q.WHAT WERE SOME EXAMPLES OF THE TOP-PERFORMING COUNTRIES AND STOCKS OVER
THE PERIOD?
A.Our selections in Germany, Hong Kong, and France all performed quite well
over the period. Germany and France both experienced favorable interest
rate environments, while Hong Kong reported better-than-expected economic
activity.
Axime, a computer software and service provider in France, was a new buy
for the Portfolio that performed extremely well. The company has a domi-
nant position among service providers to French financial institutions.
Axime had excellent sales growth over the six-month period, and we be-
lieve that in the future it could continue to benefit from the growing
trend of companies outsourcing their computer needs. Other related issues
which we feel will ultimately benefit from this trend are the Portfolio's
positions in Frontec and Celsius, both from Sweden.
Germany's SGL Carbon was another strong performer. SGL Carbon is a global
leader in the production of graphite electrodes used by the steel indus-
try, as well as specialty graphites.
8
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PORTFOLIO MANAGER'S COMMENTARY
Neuberger&Berman
- --------------------------------------------------------------------------------
International Fund (Cont'd)
This recent spin-off from Hoechst currently enjoys a dominant market po-
sition and a strong management team.
We took profits in a number of our holdings over the period. Two stocks
that we sold at a handsome profit were Astra, the largest Scandinavian
pharmaceuticals company, and Dixons Group, an electronic consumer goods
retailer in the U.K.
Q.WHAT WERE SOME EXAMPLES OF UNDERPERFORMING COUNTRIES AND STOCKS DURING
THE PERIOD?
A.Korean, Brazilian, and Finnish stocks in the Portfolio generally
underperformed over the period. Korean stocks were negatively affected by
political turmoil, while the Brazilian economy could not pull completely
out of the overall fallout in Latin America. In Finland, the value of
holdings in Nokia, a large multinational cellular communications company,
tumbled after it reported disappointing earnings.
Another poorly performing investment we made over the six-month period
was McBride, the U.K.'s leading manufacturer of private label household
cleaning goods. While sales grew in line with optimistic expectations,
the company had trouble passing on higher raw material costs, and it ex-
perienced operational problems. Nevertheless, we have not sold the stock
because we believe the fundamentals are still strong in 1996.
Q.WHAT ARE SOME PURCHASES YOU HAVE MADE OVER THE PERIOD?
A.We purchased Adidas, the German athletic clothing and footwear company.
New management has, in our judgment, turned the company around, aban-
doning manufacturing in Germany and focusing on brand value. It has a
good strategy in place, and is concentrating on new marketing campaigns
through the enhanced use of celebrity endorsements. In addition, Adidas'
valuation was lower than its industry peers.
9
<PAGE>
- --------------------------------------------------------------------------------
International Fund (Cont'd)
Panamerican Beverages, the largest bottler of Coca-Cola soft drinks out-
side the United States, was also purchased over the period. As the Mexi-
can market declined sharply during the first half of 1995, this dominant
market leader began selling at apparent value prices. While Panamerican
might have sold off following the Mexican peso crisis, it has strong op-
erations throughout Latin America.
Another new name is Lindt & Spruengli, a premium Swiss chocolate manufac-
turer. The company enjoys one of the strongest brand names in the indus-
try. A new management team has come in, signaling a fresh direction which
includes aggressive marketing, acquisitions that we believe are well
targeted, and new products. We expect this revised management policy to
increase growth in the future.
10
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(This Page Intentionally Left Blank)
11
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STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
International Fund
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investment in Portfolio, at value (Note A) $40,288,601
Receivable for Trust shares sold 159,421
Deferred organization costs (Note A) 65,943
Receivable from administrator--net (Note B) 27,043
Prepaid expenses 1,339
------------
40,542,347
------------
LIABILITIES
Accrued expenses 97,334
Payable for Trust shares redeemed 8,558
------------
105,892
------------
NET ASSETS at value $40,436,455
------------
NET ASSETS consist of:
Par value $ 3,648
Paid-in capital in excess of par value 37,579,913
Accumulated undistributed net investment loss (208,894)
Accumulated net realized losses on investment (309,311)
Net unrealized appreciation in value of investment 3,371,099
------------
NET ASSETS at value $40,436,455
------------
SHARES OUTSTANDING
($.001 par value; unlimited
shares authorized) 3,647,861
------------
NET ASSET VALUE, offering and redemption price per share $11.08
------------
</TABLE>
See Notes to Financial Statements
12
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman For the Six Months Ended February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
International Fund
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Investment income from Portfolio (Note A) $ 228,984
---------
Expenses:
Administration fee (Note B) 61,786
Legal fees 48,150
Shareholder reports 47,416
Shareholder servicing agent fees 19,232
Registration and filing fees 19,011
Amortization of deferred organization and initial offering
expenses (Note A) 9,992
Custodian fees 4,972
Auditing fees 3,878
Trustees' fees and expenses 2,730
Miscellaneous 1,093
Expenses from Portfolio (Note A) 236,637
---------
Total expenses 454,897
Deduct--expenses reimbursed by administrator (Note B) (179,134)
---------
Total net expenses 275,763
---------
Net investment loss (46,779)
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCY TRANSACTIONS, AND FINANCIAL FUTURES
CONTRACTS
FROM PORTFOLIO (NOTE A)
Net realized gain on investments 652,931
Net realized loss on foreign currency transactions (135,916)
Net realized gain on financial futures contracts 291,135
Change in net unrealized appreciation of investments 851,470
Change in net unrealized appreciation (depreciation) of
financial futures contracts (160,170)
---------
Net gain on investments, foreign currency transactions,
and financial futures contracts from Portfolio (Note A) 1,499,450
---------
Net increase in net assets resulting from operations $1,452,671
---------
</TABLE>
See Notes to Financial Statements
13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman
- --------------------------------------------------------------------------------
International Fund
<TABLE>
<CAPTION>
Six Months
Ended
February 29, Year Ended
1996 August 31,
(UNAUDITED) 1995
- -------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (46,779) $ 138,090
Net realized gain (loss) on investments sold,
foreign currency transactions, and financial
futures contracts
from Portfolio (Note A) 808,150 (1,229,784)
Change in net unrealized appreciation of
investments, financial futures contracts, and
translation of assets and liabilities in
foreign
currencies from Portfolio (Note A) 691,300 2,467,787
----------------------------
Net increase in net assets resulting from
operations 1,452,671 1,376,093
----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (125,059) (53,265)
----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 18,956,743 27,432,563
Proceeds from reinvestment of dividends 106,570 48,345
Payments for shares redeemed (6,390,106) (8,547,388)
----------------------------
Net increase from Trust share transactions 12,673,207 18,933,520
----------------------------
NET INCREASE IN NET ASSETS 14,000,819 20,256,348
NET ASSETS:
Beginning of period 26,435,636 6,179,288
----------------------------
End of period $40,436,455 $26,435,636
----------------------------
Accumulated undistributed net investment income
(loss) at end of period $ (208,894) $ 98,860
----------------------------
NUMBER OF TRUST SHARES:
Sold 1,762,768 2,705,301
Issued on reinvestment of dividends 10,015 4,883
Redeemed (595,889) (829,932)
----------------------------
Net increase in shares outstanding 1,176,894 1,880,252
----------------------------
</TABLE>
See Notes to Financial Statements
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Equity Funds
NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger&Berman International Fund (the "Fund") is a separate se-
ries of Neuberger&Berman Equity Funds (the "Trust"), a Delaware business
trust organized pursuant to a Trust Instrument dated December 23, 1992. The
Trust is registered as a diversified, open-end management investment company
under the Investment Company Act of 1940, as amended and its shares are reg-
istered under the Securities Act of 1933, as amended. The trustees of the
Trust may establish additional series or classes of shares without the ap-
proval of shareholders.
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.
The Fund seeks to achieve its investment objective by investing all of its
net investable assets in the Neuberger&Berman International Portfolio (the
"Portfolio") of Global Managers Trust ("Managers Trust"), having the same
investment objective and policies as the Fund. The value of the Fund's in-
vestment in the Portfolio reflects the Fund's proportionate interest in the
net assets of the Portfolio (100% at February 29, 1996). The performance of
the Fund is directly affected by the performance of the Portfolio. The fi-
nancial 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 in the Portfolio of Managers Trust are valued
by Managers Trust as indicated in the notes following the Portfolio's sched-
ule of investments.
3) FEDERAL INCOME TAXES: Each series of the Trust is treated as a separate en-
tity for Federal income tax purposes. It is the policy of the Fund to con-
tinue to qualify as a regulated investment company by complying with the
provisions available to certain investment companies, as defined in applica-
ble sections of the Internal Revenue Code, and to make distributions of tax-
able income (after reduction for any amounts available for Federal income
tax purposes as capital loss carryforwards) sufficient to relieve it from
all, or substantially all, Federal income taxes. Accordingly, the Fund paid
no Federal income taxes and no provision for Federal income taxes was re-
quired.
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net of
Portfolio expenses, daily on its investment in the Portfolio. Dividends and
distributions from net realized capital gains, if any, are normally distrib-
uted in
15
<PAGE>
December. Income dividends and capital gain distributions to shareholders
are recorded on the ex-dividend date. To the extent that the Fund's net re-
alized 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 re-
porting 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 fi-
nancial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as dis-
tributions in excess of net investment income or accumulated net realized
gains.
5) ORGANIZATION EXPENSES: Expenses incurred by the Fund in connection with its
organization are being amortized on a straight-line basis over a five-year
period. At February 29, 1996, the unamortized balance of such expenses
amounted to $65,943.
6) EXPENSE ALLOCATION: The Fund bears all costs of operations. Expenses in-
curred 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.
7) OTHER: All net investment income and realized and unrealized capital gains
and losses of the Portfolio are allocated pro rata among the Fund and any
other investors in the Portfolio.
NOTE B--ADMINISTRATION FEES, DISTRIBUTION ARRANGEMENTS AND OTHER TRANSACTIONS
WITH AFFILIATES:
The Fund retains Neuberger&Berman Management Incorporated ("Management") as
its administrator under an Administration Agreement ("Agreement") dated as of
November 1, 1995. Pursuant to this Agreement the Fund pays Management an ad-
ministration fee at the annual rate of 0.26% (0.67% prior to November 1, 1995
and 0.63% prior to May 1, 1995) of the Fund's average daily net assets and in-
directly pays for investment management services through its investment in the
Portfolio. (See Note B of Notes to Financial Statements of the Portfolio.) The
Agreement provides that, if with respect to any fiscal year of the Fund, its
total operating expenses plus its pro rata portion of the Portfolio's operat-
ing expenses (including the fees payable to Management but excluding interest,
taxes, brokerage commissions, and extraordinary expenses) ("Operating Ex-
penses") exceed the most restrictive of the expense limitations imposed by se-
curities laws of the states in which the Fund's shares are qualified for sale,
the administration fees for that fiscal year will be reduced by the amount of
such excess, provided that Management has no obligation to reimburse the Fund
for any such expenses that exceed the admin-
16
<PAGE>
istration fee. The most restrictive expense limitation to which the Fund is
currently subject is 2 1/2% of the first $30 million of average daily net as-
sets, 2% of the next $70 million of average daily net assets, and 1 1/2% of any
additional average daily net assets. No reduction in the administration fee as
a result of the state expense limitation was required for the six months ended
February 29, 1996.
In addition, Management has voluntarily undertaken to reimburse the Fund for
its Operating Expenses which exceed, in the aggregate, 1.70% per annum of the
Fund's average daily net assets during the period from June 15, 1994 to Decem-
ber 31, 1996 ("Fund Expense Limitation"). The Fund has in turn agreed to repay
Management through December 31, 1998, for the excess Operating Expenses Manage-
ment previously reimbursed to the Fund, so long as the Fund's annual Operating
Expenses during that period do not exceed the Fund Expense Limitation. For the
six months ended February 29, 1996, Management reimbursed the Fund $179,134,
pursuant to this undertaking.
All of the capital stock of Management is owned by individuals who are also
general partners of Neuberger&Berman, L.P. ("Neuberger"), a member firm of The
New York Stock Exchange and the sub-adviser to the Portfolio. Several individu-
als who are officers and/or trustees of the Trust are also partners of Neu-
berger and/or officers and/or directors of Management.
Under a service agreement, which was in effect through April 30, 1995, the Fund
had retained Management to provide certain shareholder, shareholder-related and
other services not furnished by the shareholder servicing agent. Pursuant to
the service agreement, the Fund paid Management a monthly fee at the annual
rate of 0.04% of the average daily net assets of the Fund as compensation for
such services. As of May 1, 1995, the service agreement and the administration
agreement then in effect were combined into a single agreement.
The Fund also has a distribution agreement with Management, which receives no
compensation therefor and no commissions for sales or redemptions of shares of
beneficial interest of the Fund.
NOTE C--INVESTMENT TRANSACTIONS:
During the six months ended February 29, 1996, additions and reductions in the
Fund's investment in the Portfolio amounted to $15,044,421 and $2,653,672, re-
spectively.
At February 29, 1996, the Portfolio's cost of investments for U.S. Federal in-
come tax purposes was $36,794,071. Gross unrealized appreciation of investments
was $4,615,633 and gross unrealized depreciation of investments was $1,273,236,
resulting in net unrealized appreciation of $3,342,397, based on cost for U.S.
Federal income tax purposes.
17
<PAGE>
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 con-
tain audited financial statements.
18
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- -------------------------------------------------------------------------------
International Fund
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements. 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. It should be read in conjunction with the Portfolio's Financial
Statements and notes thereto.
<TABLE>
<CAPTION>
Six Months Ended Period from
February 29, Year Ended June 15, 1994(/1/) to
1996 August 31, August 31,
(UNAUDITED) 1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period $10.70 $10.46 $10.00
--------------------------------------------------
Income From Investment
Operations
Net Investment Income
(Loss) (.06) .06 .01
Net Gains or Losses on
Securities (both
realized and
unrealized) .48 .21 .45
--------------------------------------------------
Total From Investment
Operations .42 .27 .46
--------------------------------------------------
Less Distributions
Dividends (from net
investment income) (.04) (.03) --
--------------------------------------------------
Net Asset Value, End of
Period $11.08 $10.70 $10.46
--------------------------------------------------
Total Return+ +3.94%(/2/) +2.60% +4.60%(/2/)
--------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of
Period (in millions) $ 40.4 $ 26.4 $ 6.2
--------------------------------------------------
Ratio of Expenses to
Average Net Assets(/3/) 1.70%(/4/) 1.70% 1.70%(/4/)
--------------------------------------------------
Ratio of Net Investment
Income (Loss) to
Average Net Assets(/3/) (.29%)(/4/) .73% .57%(/4/)
</TABLE>
--------------------------------------------------
See Notes to Financial Highlights
19
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
International Fund
1) The date investment operations commenced. BNP-N&B Global Asset Management
L.P. ("BNP-N&B Global"), a partnership jointly owned by Banque Nationale de
Paris and Neuberger, served as investment adviser to the Portfolio from its
inception until October 31, 1995.
2) Not annualized.
3) After reimbursement of expenses by the administrator as described in Note B
of Notes to Financial Statements. Had the administrator and the then invest-
ment adviser not undertaken such action the annualized ratios of expenses
and net investment income (loss) to average daily net assets would have been
2.46% and (1.05%), respectively, for the six months ended February 29, 1996,
2.31% and .12%, respectively, for the year ended August 31, 1995 and 2.50%
and (.23%), respectively, for the period ended August 31, 1994.
4) Annualized.
+ 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 peri-
od, and assumes dividends and capital gain distributions, if any, were rein-
vested. Results represent past performance and do not guarantee future re-
sults. Investment returns and principal may fluctuate and shares when re-
deemed may be worth more or less than original cost. Total return would be
lower if Management and/or BNP-N&B Global had not reimbursed certain ex-
penses.
20
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(This Page Intentionally Left Blank)
21
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- --------------------------------------------------------------------------------
International Portfolio
TOP TEN EQUITY HOLDINGS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HOLDING COUNTRY INDUSTRY PERCENTAGE
<S> <C> <C> <C>
1.Compania Peruana de
Telefonos "B" Peru Telecommunications 1.6%
2.SGL Carbon Germany Industrial Goods & Services 1.5%
3.Tarkett AG Germany Consumer Goods & Services 1.4%
4.L.M. Ericsson Telephone
ADR Sweden Telecommunications 1.2%
5.Group Axime France Technology 1.2%
6.Frontec "B" Sweden Technology 1.2%
7.Altana AG Germany Pharmaceutical 1.2%
8.Telefonica de Espana
ADR Spain Telecommunications 1.0%
9.Kinnevik Sweden Diversified 1.0%
10.Steady Safe - Foreign Indonesia Transportation 1.0%
</TABLE>
<TABLE>
<CAPTION>
Number Market
of Shares Value(/1/)
--------- -----------
<C> <S> <C>
COMMON STOCKS (88.1%)
ARGENTINA (0.6%)
2,000 Central Costanera ADR $ 62,760(/2/)
7,000 Telefonica de Argentina ADR 182,875
-----------
245,635
-----------
AUSTRALIA (1.0%)
10,274 Broken Hill
Proprietary 148,836
5,000 News Corp. ADR 113,125
2,900 Westpac Banking ADR 67,062
13,000 Westpac Banking 61,417
-----------
390,440
-----------
AUSTRIA (0.6%)
1,700 Austria Mikro Systeme International 248,343
-----------
BELGIUM (0.6%)
2,000 Barco Industries 262,078
-----------
BRAZIL (0.8%)
7,400 Rhodia-Ster S.A. GDR 69,375(/2/)
5,000 Telecomunicacoes Brasileiras ADR 262,500
-----------
331,875
-----------
CHILE (0.7%)
19,000 Banco Osorno Y La Union ADR 273,125
-----------
</TABLE>
<TABLE>
<CAPTION>
Number Market
of Shares Value(/1/)
--------- -----------
<C> <S> <C>
DENMARK (1.2%)
17,000 Scandinavian Mobility International $ 314,161(/2/)
6,000 Tele Danmark ADR 177,000
-----------
491,161
-----------
FINLAND (1.3%)
10,300 Aamulehti Yhtymae OY-II 235,672(/2/)
2,200 Nokia "A" 76,233
5,000 TT Tieto "B" 205,157
-----------
517,062
-----------
FRANCE (5.7%)
1,500 B.I.S. SA 139,889
1,850 Cardif SA 252,922
990 Chargeurs 255,372
976 Cie Generale des Eaux 97,799
800 Compagnie de Saint Gobain 103,181
2,600 Credit Local de France 206,516
4,400 Group Axime 477,568(/2/)
8,000 Lagardere Groupe 214,298
900 PSA Peugeot Citroen 134,651
5,300 SGS Thomson
Microelectronics -
New York 195,437
5,500 SGS Thomson
Microelectronics 204,080
-----------
2,281,713
-----------
</TABLE>
22
<PAGE>
February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
International Portfolio (Cont'd)
<TABLE>
<CAPTION>
Number Market
of Shares Value(/1/)
--------- -----------
<C> <S> <C>
GERMANY (5.8%)
3,800 Adidas AG $ 243,219(/2/)
700 Altana AG 466,270
800 Hoechst AG 251,503
527 Mannesmann AG 188,368
7,000 SGL Carbon 623,249
25,000 Tarkett AG 547,544(/2/)
-----------
2,320,153
-----------
HONG KONG (5.5%)
124,000 ASM Pacific Technology 123,504
27,000 Cheung Kong Holdings 187,721
1,070,000 Climax International 161,935
150,000 First Pacific 214,399
175,000 Giordano International 186,751
100,000 HKR International 111,889
22,000 HSBC Holdings PLC 352,870
34,000 Hutchison Whampoa 215,499
374,000 Manhattan Card 193,509
29,500 Swire Pacific "A" 257,570
100,000 Varitronix International 192,733
-----------
2,198,380
-----------
INDIA (0.4%)
6,000 Bajaj Auto GDR 162,000(/2/)
-----------
INDONESIA (2.8%)
20,000 Hanjaya Mandala Sampoerna -
Foreign 218,217
6,000 Indosat ADR 224,250
82,500 Matahari Putra Prima -
Foreign 178,070
315,000 Steady Safe - Foreign 394,345
4,000 Telekomunikasi Indonesia ADR 125,500
-----------
1,140,382
-----------
IRELAND (2.4%)
13,500 Bank of Ireland PLC 93,089
30,000 CRH PLC 252,835
15,136 Greencore Group PLC 135,681
25,000 Irish Life PLC 96,537
64,000 Powerscreen International PLC 394,238
-----------
972,380
-----------
ISRAEL (1.0%)
20,000 NICE-Systems ADR 290,000
3,000 Teva Pharmaceutical ADR 129,750
-----------
419,750
-----------
</TABLE>
<TABLE>
<CAPTION>
Number Market
of Shares Value(/1/)
--------- -----------
<C> <S> <C>
ITALY (0.9%)
8,000 Brembo SpA $ 112,691
12,000 Bulgari SpA 127,220
58,000 Telecom Italia Mobile 106,267
-----------
346,178
-----------
JAPAN (9.5%)
5,600 Acom Co. 213,140
12,000 Arcland Sakamoto 134,735
1,000 Autobacs Seven 80,403
4,000 Bandai Co. 157,191
18,000 Banyu Pharmaceutical 222,656
10,000 Calsonic Corp. 74,028
5,000 Fanuc 216,947
2,000 Ito Yokado 111,899
9,000 JACCS Co. 82,297
4,000 Kyocera Corp. 274,038
6,000 Matsushita Electric Industrial 95,913
5,000 Mitsubishi Trust & Banking 77,073
18,000 NEC Corp. 214,092
10,000 Nikon Corp. 137,019
40 Nissen Co. 723
9,000 Sankyo Co. 207,241
2,000 Sega Enterprises 91,156
10,000 77 Bank 88,682
7,000 Shin-Etsu Chemical 143,870
3,000 Shinkawa 102,764
2,000 SMC Corp. 136,638
3,400 Sony Corp. 199,286
10,000 Tachi-S 73,267
10,000 Taisho Pharmaceutical 199,819
13,000 Takeda Chemical Industries 209,049
4,000 Tokyo Electron 160,617
4,000 Tokyo Ohka Kogyo 115,705
-----------
3,820,248
-----------
KOREA (1.9%)
4,520 Daelim Industrial 80,286
2,400 Inchon Iron & Steel 79,126
10 Korea 1990 Trust IDR 50,000
2,200 Korea Electric Power 80,123
3,069 L.G. Electronics 80,397
1,299 Samsung Electronics 214,135
1,328 Shinsegae Department Store 89,942
144 Shinsegae - New 7,894
2,687 Yukong Ltd. 83,438
-----------
765,341
-----------
</TABLE>
23
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- --------------------------------------------------------------------------------
International Portfolio (Cont'd)
<TABLE>
<CAPTION>
Number Market
of Shares Value(/1/)
--------- -----------
<C> <S> <C>
MALAYSIA (3.3%)
24,000 Ekran $ 65,455
16,000 Genting 143,154
81,000 Land & General Holdings 181,180
21,000 Malayan Banking 192,010
34,000 Malaysian Assurance Alliance 196,131
48,000 New Straits Times Press 226,033
34,000 Sime Darby 91,394
12,000 Telekom Malaysia 103,128
30,000 YTL Corp. 141,271(/2/)
-----------
1,339,756
-----------
MEXICO (2.1%)
15,000 ALFA, SA "A" 177,986
40,000 Cementos de Mexico "B" 149,469
9,000 Coca-Cola FEMSA ADR 199,125
50,000 Fomento Economico Mexicano "B" 125,475
5,000 Panamerican Beverages "A" 202,500
-----------
854,555
-----------
NETHERLANDS (4.6%)
4,500 Aegon N.V. ADR 195,187
6,400 ASM Lithography Holding 310,400
12,520 Elsevier N.V. 177,195
2,537 Getronics N.V. 144,857
6,000 Hunter Douglas 349,875
8,750 Philips Electronics 364,074
8,210 Royal PTT Nederland 329,637
-----------
1,871,225
-----------
NEW ZEALAND (0.3%)
2,000 Telecom of New Zealand ADR 142,250
-----------
NORWAY (2.3%)
4,000 Hafslund Nycomed ADR 105,000
7,800 Nera AS 296,036
10,000 Petroleum Geo-Services ADR 217,500
21,800 Schibsted Group 313,248
-----------
931,784
-----------
</TABLE>
<TABLE>
<CAPTION>
Number Market
of Shares Value(/1/)
--------- -----------
<C> <S> <C>
PERU (2.1%)
27,247 Banco Wiese ADR $ 204,352
297,000 Compania Peruana de Telefonos "B" 629,179
-----------
833,531
-----------
PHILIPPINES (2.4%)
230,000 Bankard, Inc. 114,318
16,500 Benpres Holdings GDR 119,625(/2/)
220,000 DMCI Holdings 136,685
114,000 Fil-Estate Land 104,607
446,000 International Container Terminal Services 281,361
550,000 JG Summit Holdings "A" 199,771
-----------
956,367
-----------
SINGAPORE (2.7%)
300,000 Datacraft Asia 318,000
21,000 Keppel Corp. 212,677
14,000 Singapore Press Holdings 282,578
27,000 United Overseas Bank - Foreign 288,739
-----------
1,101,994
-----------
SPAIN (2.0%)
847 Acerinox SA 81,925
17,000 Amper SA 220,476
1,300 Empresa Nacional de Electricidad ADR 73,288
8,500 Telefonica de Espana ADR 417,563
-----------
793,252
-----------
SWEDEN (6.9%)
800 Asea ADR 80,400
10,400 Caran "B" 178,662
7,000 Celsius Industries "B" 192,302
3,000 Elekta Instrument "B" 100,187
12,800 Frontec "B" 468,219
12,200 Kinnevik 408,329
5,500 International Business Systems "B" 97,743
22,600 L.M. Ericsson Telephone ADR 494,375
8,400 Skandia Forsakrings 196,552
24,000 Skandinaviska Enskilda Banken "A" 175,227
</TABLE>
24
<PAGE>
February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
International Portfolio (Cont'd)
<TABLE>
<CAPTION>
Number Market
of Shares Value(/1/)
--------- -----------
<C> <S> <C>
5,000 SKF ADR $ 110,000
6,000 WM-Data "B" 262,129
-----------
2,764,125
-----------
SWITZERLAND (3.4%)
475 Ares-Serono Group "B" 374,802
100 Ascom Holding 107,599
369 Holderbank Financiere Glaris "B" 264,693
125 Lindt & Spruengli 200,183
240 Sandoz AG 225,407
550 Schweizerischer Bankverein "B" 202,310
-----------
1,374,994
-----------
TAIWAN (0.4%)
2,530 Asia Cement GDS 41,947
4,000 China Steel GDR 61,640
6,000 R O C Taiwan Fund 57,750
-----------
161,337
-----------
THAILAND (1.8%)
5,000 Advanced Info Service - Foreign 93,217
6,200 Bangkok Bank -Foreign 80,666
13,500 K.R. Precision -Foreign 99,603
2,800 Siam Cement -
Foreign 145,720
22,000 Thai Farmers Bank -Foreign 233,875
4,000 United Communications - Foreign 56,803
-----------
709,884
-----------
UNITED KINGDOM (11.1%)
26,600 British Airport Authority PLC 199,317
3,000 British Petroleum ADR 301,125
</TABLE>
<TABLE>
<CAPTION>
Number Market
of Shares Value(/1/)
--------- -----------
<C> <S> <C>
50,625 Carlton Communications
PLC $ 324,454
17,900 Dorling Kindersley Holdings PLC 142,218
19,800 Ethical Holdings ADR 200,475
11,000 Filtronic Comtek PLC 71,637
10,500 GKN PLC 135,152
50,000 Inchcape PLC 195,372
40,000 JBA Holdings PLC 240,270
152,000 McBride PLC 307,447
10,000 Tele-Communications International 215,000
11,000 TeleWest Communications ADR 226,875
8,660 Thorn EMI PLC 215,903
109,237 TLG PLC 237,690(/2/)
81,186 Tomkins PLC 327,182
21,830 Unitech PLC 182,307
40,900 United Utilities PLC 364,127
12,000 Videotron Holdings ADR 202,500
75,000 WPP Group PLC 207,439
3,000 Zeneca Group ADR 172,500
-----------
4,468,990
-----------
TOTAL COMMON STOCKS (COST $32,330,862) 35,490,288
-----------
PREFERRED STOCKS (3.5%)
300 Bayerische Motoren Werke, Germany 118,351
3,600 Fielmann AG, Germany 206,911
2,100 Fresenius AG, Germany 309,958
11,000 Nokia Corp. ADR, Finland 383,625
2,500 SAP AG, Germany 392,804
-----------
TOTAL PREFERRED STOCKS (COST $1,175,863) 1,411,649
-----------
</TABLE>
25
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
International Portfolio (Cont'd)
<TABLE>
<CAPTION>
Principal Market
Amount Value(/1/)
--------- -----------
<C> <S> <C>
CONVERTIBLE BONDS (0.7%)
$ 291,000 United Micro Electronics, Cv. Unsub. Notes,
1.25%, due 6/8/04 (COST $356,910) $ 304,095(/2/)
-----------
U.S. TREASURY SECURITIES (7.3%)
$2,950,000 U.S. Treasury Bills, 4.65% - 4.97%, due
3/14/96 - 5/9/96 (COST $2,930,436) 2,930,436
-----------
TOTAL INVESTMENTS (99.6%) (COST $36,794,071) 40,136,468
Cash, receivables and other assets,
less liabilities (0.4%) 152,135
-----------
TOTAL NET ASSETS (100.0%) $40,288,603
-----------
</TABLE>
26
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
International 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 last available bid price. The Portfolio values all other secu-
rities by a method that the trustees of Global Managers Trust believe accu-
rately reflects fair value. Foreign security prices are furnished by inde-
pendent quotation services expressed in local currency values. Foreign secu-
rities are translated from the local currency into U.S. dollars using cur-
rent exchange rates.
2) Security exempt from registration under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers under Rule 144A. At February 29, 1996,
these securities amounted to $2,914,980 or 7.2% of net assets.
See Notes to Financial Statements
27
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
International Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments in securities, at market value* (Note A) -
see Schedule of Investments $40,136,468
Cash 46,857
Receivable for securities sold 1,330,219
Net receivable for foreign currency exchange contracts sold
(Note C) 56,937
Dividends and interest receivable 45,401
Deferred organization costs (Note A) 38,284
Receivable for variation margin (Note A) 3,850
Prepaid expenses 402
------------
41,658,418
------------
LIABILITIES
Payable for securities purchased 1,270,075
Accrued expenses 73,087
Payable to investment manager (Note B) 26,653
------------
1,369,815
------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS $40,288,603
------------
NET ASSETS consist of:
Paid-in capital $36,917,504
Net unrealized appreciation in value of investments,
foreign currency contracts, financial futures contracts, and
translation of assets and liabilities in foreign currencies 3,371,099
------------
NET ASSETS $40,288,603
------------
* Cost of investments $36,794,071
------------
</TABLE>
See Notes to Financial Statements
28
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman For the Six Months Ended February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
International Portfolio
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Income:
Dividend income $ 173,818
Interest income 72,506
Foreign taxes withheld (Note A) (17,340)
----------
Total income 228,984
----------
Expenses:
Investment advisory/management fees (Note B) 119,855
Custodian fees 52,594
Legal fees 46,445
Trustees' fees and expenses 21,945
Administration fee (Note B) 16,666
Auditing fees 14,934
Amortization of deferred organization and initial offering
expenses (Note A) 5,802
Accounting fees 4,972
Miscellaneous 1,867
----------
Total expenses 285,080
Deduct--expenses reimbursed by investment adviser (Note B) (48,443)
----------
Total net expenses 236,637
----------
Net investment loss (7,653)
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCY TRANSACTIONS, AND FINANCIAL FUTURES
CONTRACTS
Net realized gain on investments sold 652,931
Net realized loss on foreign currency transactions (Note A) (135,916)
Net realized gain on financial futures contracts (Note A) 291,135
Change in net unrealized appreciation of investments and
translation of assets and liabilities in foreign currencies 851,470
Change in net unrealized appreciation (depreciation) of
financial futures contracts (Note A) (160,170)
----------
Net gain on investments, foreign currency transactions,
and financial futures contracts 1,499,450
----------
Net increase in net assets resulting from operations $1,491,797
</TABLE>
------------
See Notes to Financial Statements
29
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman
- --------------------------------------------------------------------------------
International Portfolio
<TABLE>
<CAPTION>
Six Months
Ended
February 29, Year Ended
1996 August 31,
(UNAUDITED) 1995
- ------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (7,653) $ 328,410
Net realized gain (loss) on investments sold,
foreign currency transactions, and financial
futures contracts 808,150 (1,229,784)
Change in net unrealized appreciation of
investments, financial futures contracts, and
translation of assets and liabilities in
foreign currencies 691,300 2,467,787
------------------------
Net increase in net assets resulting from
operations 1,491,797 1,566,413
------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 15,044,421 21,184,541
Reductions (2,653,672) (2,396,831)
------------------------
Net increase in net assets resulting from
transactions in investors' beneficial
interests 12,390,749 18,787,710
------------------------
NET INCREASE IN NET ASSETS 13,882,546 20,354,123
NET ASSETS:
Beginning of period 26,406,057 6,051,934
------------------------
End of period $40,288,603 $26,406,057
------------------------
</TABLE>
See Notes to Financial Statements
30
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Global Managers Trust
NOTE A--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger&Berman International Portfolio (the "Portfolio," for-
merly International Portfolio) is a separate series of Global Managers
Trust ("Managers Trust"), a New York common law trust organized as of March
18, 1994, with its principal office in the Cayman Islands. Managers Trust
is registered as a diversified, open-end management investment company un-
der the Investment Company Act of 1940, as amended. The trustees of Manag-
ers Trust changed the name of International Portfolio to Neuberger&Berman
International Portfolio effective November 1, 1995. Managers Trust cur-
rently has only one portfolio. The assets of the Portfolio belong only to
the Portfolio, and the liabilities of the Portfolio are borne solely by the
Portfolio 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-divi-
dend date or, for certain foreign dividends, as soon as the Portfolio be-
comes aware of the dividends, and interest income, including accretion of
discount on short-term investments (adjusted for original issue discount,
where applicable), is recorded on the accrual basis. Realized gains and
losses from securities and foreign currency transactions are recorded on
the basis of identified cost.
4) FOREIGN CURRENCY TRANSLATION: The accounting records of the Portfolio are
maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars at the current rate of exchange of such currency against the
U.S. dollar to determine the value of investments, other assets and liabil-
ities. Purchase and sale prices of securities, and income and expenses are
translated into U.S. dollars at the prevailing rate of exchange on the re-
spective dates of such transactions.
5) FORWARD FOREIGN CURRENCY CONTRACTS: The Portfolio may enter into forward
foreign currency contracts ("contracts") in connection with planned pur-
chases or sales of securities, to hedge the U.S. dollar value of portfolio
securities denominated in a foreign currency, or to increase or decrease
its exposure to a currency other than U.S. dollars. The gain or loss aris-
ing from the difference between the original contract and the closing of
such contract is included in net realized gain (loss) on foreign currency
transactions. Fluctuations in the value of forward exchange currency con-
tracts are recorded for financial report-
31
<PAGE>
ing purposes as unrealized gains or losses by the Portfolio. The Portfolio
has no specific limitation on the percentage of assets which may be commit-
ted to these types of contracts. The Portfolio could be exposed to risks if
a counterparty to the contracts were unable to meet the terms of its con-
tracts or if the value of the foreign currency changes unfavorably. The
U.S. dollar value of foreign currency underlying all contractual commit-
ments held by the Portfolio is determined using forward currency exchange
rates supplied by an independent pricing service.
6) TAXES: There is, at present, no direct taxation in the Cayman Islands, and
therefore interest, dividends and capital gains derived by Managers Trust
are not subject to taxes in that jurisdiction.
7) FOREIGN TAXES: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
8) ORGANIZATION EXPENSES: Expenses incurred by the Portfolio in connection
with its organization are being amortized by the Portfolio on a straight-
line basis over a five-year period. At February 29, 1996, the unamortized
balance of such expenses amounted to $38,284.
9) EXPENSE ALLOCATION: The Portfolio bears all costs of 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.
10) FINANCIAL FUTURES CONTRACTS: The Portfolio may buy and sell financial
futures contracts for hedging and non-hedging purposes. At the time the
Portfolio enters into a financial futures contract, it is required to de-
posit with its custodian a specified amount of cash or U.S. government se-
curities, known as "initial margin," ranging upward from 1.1% of the value
of the financial futures contract being traded. Each day, the futures con-
tract is valued at the official settlement price of the board of trade or
U.S. commodity exchange on which such futures contract is traded. Subse-
quent 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 Portfolio as unrealized gains or losses.
Although some financial futures contracts by their terms call for actual
delivery or acceptance of financial instruments, in most cases the con-
tracts are closed out prior to delivery by offsetting purchases or sales of
matching financial futures contracts. When the contracts are closed, the
Portfolio recognizes a gain or loss. Risks of entering into futures con-
tracts include the possibility that there
32
<PAGE>
may be an illiquid market and/or that a change in the value of the contract
may not correlate with changes in the value of the underlying securities.
At February 29, 1996, open positions in financial futures contracts for the
Portfolio were as follows:
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION OPEN CONTRACTS POSITION DEPRECIATION
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
March 1996 14 Nikkei Futures Long $(27,975)
</TABLE>
At February 29, 1996, the Portfolio had deposited $80,000 U.S. Treasury
Bills due 4/11/96 in a segregated account to cover margin requirements
on open financial futures contracts.
NOTE B--ADMINISTRATION AND ADVISORY/MANAGEMENT FEES AND OTHER TRANSACTIONS
WITH AFFILIATES:
The Portfolio retains Neuberger&Berman Management Incorporated ("Manage-
ment"), as its investment manager under a Management Agreement ("Agree-
ment"), dated as of November 1, 1995. For such investment management servic-
es, the Portfolio pays Management a fee at the annual rate of 0.85% of the
first $250 million of average daily net assets; 0.825% of the next $250 mil-
lion; 0.80% of the next $250 million; 0.775% of the next $250 million; 0.75%
of the next $500 million; and 0.725% of average daily net assets in excess
of $1.5 billion.
Prior to November 1, 1995, the Portfolio had retained BNP-N&B Global Asset
Management L.P. ("BNP-N&B Global"), a partnership jointly owned by Banque
Nationale de Paris ("BNP") and Neuberger&Berman, L.P. ("Neuberger"), as its
investment adviser. For such investment advisory services, the Portfolio
paid BNP-N&B Global a fee at the annual rate of 0.50% of the first $250 mil-
lion of the Portfolio's average daily net assets; 0.475% of the next $250
million; 0.45% of the next $250 million; and 0.425% of average daily net as-
sets in excess of $750 million. For the period from September 1, 1995, to
October 31, 1995, the Portfolio paid $24,032 for such services. Addition-
ally, under a separate Administration Agreement ("Portfolio Administration
Agreement"), which was in effect through October 31, 1995 the Portfolio had
retained Management to provide certain administrative services. Pursuant to
the Portfolio Administration Agreement, the Portfolio paid Management a fee
at the annual rate of 0.10% of the first $250 million of the Portfolio's av-
erage daily net assets; 0.08% of the next $250 million; 0.06% of the next
$250 million; and 0.04% of average daily net assets in excess of $750 mil-
lion. The minimum administration fee was $100,000 per annum. For the period
from September 1, 1995, to October 31, 1995, the Portfolio paid $16,666 for
such services.
Prior to November 1, 1995, BNP-N&B Global had voluntarily undertaken to re-
imburse the Portfolio for its operating expenses (excluding interest, taxes,
brokerage commissions, and extraordinary expenses) ("Operating Expenses")
that exceeded 0.70% per annum of the Portfolio's average daily net assets.
For the period
33
<PAGE>
from September 1, 1995, to October 31, 1995, BNP-N&B Global reimbursed the
Portfolio $48,443. Under the Agreement, the above expense limitation was
terminated.
All of the capital stock of Management is owned by individuals who are also
general partners of Neuberger, a member firm of The New York Stock Exchange and
the sub-adviser to the Portfolio. Neuberger is retained by Management to fur-
nish it with investment recommendations and research without added cost to the
Portfolio. One individual who is an officer and trustee of Managers Trust is
also a partner of Neuberger and an officer and director of Management.
The Portfolio has an expense offset arrangement included in its custodian con-
tract. The impact of this arrangement on the Portfolio's custodian expense, re-
flected in the Statement of Operations, is less than .01% of the Portfolio's
average daily net assets.
NOTE C--SECURITIES TRANSACTIONS:
During the six months ended February 29, 1996, there were purchase and sale
transactions (excluding short-term securities, forward foreign currency con-
tracts, and financial futures contracts) of $18,942,185 and $8,263,922, respec-
tively. Brokerage commissions on securities transactions amounted to $96,216,
of which Neuberger, BNP and other brokers received $3,271, $0 and $92,945, re-
spectively.
At February 29, 1996, the Portfolio had entered into various contracts to de-
liver currencies at specified future dates. Open contracts were as follows:
IN NET UNREALIZED
CONTRACTS EXCHANGE SETTLEMENT APPRECIATION
SALES TO DELIVER FOR DATE VALUE (DEPRECIATION)
- ---------------------------------------------------------------------------
GERMAN MARK 1,426,300 $1,000,000 3/29/96 $ 971,632 $ 28,368
SWEDISH KRONA 3,294,000 500,000 3/29/96 487,229 12,771
SWISS FRANC 1,163,900 1,000,000 4/18/96 989,877 10,123
GERMAN MARK 1,451,500 1,000,000 4/18/96 975,502 24,498
FRENCH FRANC 4,919,700 973,850 5/13/96 977,785 (3,935)
BRITISH POUND 663,526 1,000,000 5/23/96 1,014,888 (14,888)
---------------------
$5,473,850 $5,416,913 $ 56,937
---------------------
NOTE D--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.
34
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- -------------------------------------------------------------------------------
International Portfolio
<TABLE>
<CAPTION>
Period from
Six Months June 15, 1994
Ended (Commencement of
February 29, Year Ended Operations) to
1996 August 31, August 31,
(UNAUDITED) 1995 1994
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses(/1/) 1.47%(/2/) .70% .70%(/2/)
------------------------------------------------
Net investment income
(loss)(/1/) (.05%)(/2/) 1.74% 1.63%(/2/)
------------------------------------------------
Portfolio Turnover Rate 27% 41% 5%
------------------------------------------------
Average Commission Rate Paid $0.0130 -- --
------------------------------------------------
Net Assets, End of Period (in
millions) $ 40.3 $26.4 $6.1
-------------------------------------------------
</TABLE>
1) After reimbursement of expenses by the investment adviser as described in
Note B of Notes to Financial Statements. Had the investment adviser not
undertaken such action the annualized ratios of expenses and net investment
income (loss) to average daily net assets would have been 1.77% and (.35%),
respectively, for the six months ended February 29, 1996, 2.24% and .20%,
respectively, for the year ended August 31, 1995, and 2.50% and (.17%),
respectively, for the period ended August 31, 1994.
2) Annualized.
35
<PAGE>
DIRECTORY
INVESTMENT MANAGER, ADMINISTRATOR AND DISTRIBUTOR
Neuberger&Berman Management Incorporated
605 Third Avenue 2nd Floor
New York, NY 10158-0180
800-877-9700
Institutional Services
800-366-6264
SUB-ADVISER
Neuberger&Berman, L.P.
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
Boston Service Center
P.O. Box 8403
Boston, MA 02266-8403
800-225-1596
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, NW
2nd Floor
Washington, DC 20036-1800
Neuberger&Berman Management Inc. and Neuberger&Berman International Fund are
service marks of
Neuberger&Berman Management Inc.
(C) 1996 Neuberger&Berman Management Inc.
36
<PAGE>
OFFICERS AND TRUSTEES
NEUBERGER&BERMAN GLOBAL MANAGERS
EQUITY FUNDS TRUST
Stanley Egener Stanley Egener
Chairman of the Board and Trustee Chairman of the Board and Trustee
Lawrence Zicklin Lawrence Zicklin
President and Trustee President
Faith Colish Howard A. Mileaf
Trustee Trustee
Donald M. Cox John T. Patterson, Jr.
Trustee Trustee
Alan R. Gruber John P. Rosenthal
Trustee Trustee
Howard A. Mileaf Daniel J. Sullivan
Trustee Vice President
Edward I. O'Brien Michael J. Weiner
Trustee Vice President
John T. Patterson, Jr. Richard Russell
Trustee Treasurer
John P. Rosenthal Claudia A. Brandon
Trustee Secretary
Cornelius T. Ryan Jacqueline Henning
Trustee Assistant Treasurer
Gustave H. Shubert Stacy Cooper-Shugrue
Trustee Assistant Secretary
Daniel J. Sullivan Lenore Joan McCabe
Vice President Assistant Secretary
Michael J. Weiner C. Carl Randolph
Vice President Assistant Secretary
Richard Russell
Treasurer
Claudia A. Brandon
Secretary
Stacy Cooper-Shugrue
Assistant Secretary
C. Carl Randolph
Assistant Secretary
37
<PAGE>
