NEUBERGER&BERMAN
EQUITY FUNDS
SUPPLEMENT TO THE PROSPECTUS DATED DECEMBER 15, 1997, AS AMENDED MAY 4,
1998
I. THE SECTION "INVESTMENT PROGRAMS - NEUBERGER&BERMAN GUARDIAN PORTFOLIO" ON
PAGE 23 OF THE PROSPECTUS IS REVISED BY ADDING THE FOLLOWING PARAGRAPH:
For purposes of managing cash flow, the Portfolio at times may invest in
financial instruments, the return on which is intended to approximate the
performance of a recognized securities index, such as the S&P "500" Index. These
may include options and futures on securities indices, options on such futures,
and instruments structured as investment companies.
II. THE SECTION "DESCRIPTION OF INVESTMENTS - OTHER INVESTMENT COMPANIES" ON
PAGE 57 OF THE PROSPECTUS IS REVISED TO READ AS FOLLOWS:
DESCRIPTION OF INVESTMENTS
OTHER INVESTMENT COMPANIES.
Neuberger&Berman INTERNATIONAL Portfolio may invest in the shares of other
investment companies. Such investment may be the most practical or only manner
in which the Portfolio can participate in certain foreign markets because of the
expenses involved or because other vehicles for investing in those countries may
not be available at the time the Portfolio is ready to make an investment.
Neuberger&Berman GUARDIAN Portfolio at times may invest in instruments
structured as investment companies to gain exposure to the performance of a
recognized securities index, such as the S&P "500" Index.
As a shareholder in an investment company, a Portfolio would bear its pro
rata share of that investment company's expenses. Investment in other funds may
involve the payment of substantial premiums above the value of such issuer's
portfolio securities. Neuberger&Berman INTERNATIONAL and Neuberger&Berman
GUARDIAN Portfolios do not intend to invest in such funds unless, in the
judgment of N&B Management, the potential benefits of such investment justify
the payment of any applicable premium or sales charge.
Each Portfolio's investment in such securities is limited to (i) 3% of the
total voting stock of any one investment company, (ii) 5% of the Portfolio's
total assets with respect to any one investment company and (iii) 10% of the
Portfolio's total assets in the aggregate.
<PAGE>
III. THE PARAGRAPH REGARDING THE PORTFOLIO MANAGEMENT OF NEUBERGER&BERMAN
PARTNERS PORTFOLIO IN THE SECTION "MANAGEMENT AND ADMINISTRATION - INVESTMENT
MANAGER, ADMINISTRATOR, DISTRIBUTOR, AND SUB-ADVISER" (PAGES 48-49) IS
REVISED TO READ AS FOLLOWS:
MANAGEMENT AND ADMINISTRATION
INVESTMENT MANAGER, ADMINISTRATOR, DISTRIBUTOR AND SUB-ADVISER
Neuberger&Berman PARTNERS Portfolio -- Michael M. Kassen, Robert I.
Gendelman, and S. Basu Mullick are co-managers of the Portfolio. Mr. Kassen,
Mr. Gendelman, and Mr. Mullick are Vice Presidents of N&B Management. Mr.
Kassen and Mr. Gendelman are principals of Neuberger&Berman. Mr. Kassen, Mr.
Gendelman and Mr. Mullick have had responsibility for Neuberger&Berman
PARTNERS Portfolio since June 1990, October 1994, and October 1998,
respectively. Mr. Kassen has been an employee of N&B Management since 1990.
Mr. Gendelman was a portfolio manager for another mutual fund manager from
1992 to 1993. Mr. Mullick was a portfolio manager for a prominent investment
adviser from 1993 to 1998.
The date of this Supplement is October 1, 1998.
<PAGE>
NEUBERGER&BERMAN
EQUITY FUNDS
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED DECEMBER 15, 1997
I. THE FINAL PARAGRAPH IN THE SECTION "INVESTMENT INFORMATION - INVESTMENT
POLICIES AND LIMITATIONS" (PAGE 6) IS REVISED TO READ AS FOLLOWS:
Each Portfolio (except Neuberger&Berman GUARDIAN, Neuberger&Berman
SOCIALLY RESPONSIVE and Neuberger&Berman INTERNATIONAL Portfolios) as an
operating policy, does not intend to invest in futures contracts and options
thereon during the coming year. In addition, although the Portfolios do not have
policies limiting their investment in warrants, no Portfolio currently intends
to invest in warrants unless acquired in units or attached to securities.
II. THE SECTION "FUTURES CONTRACTS AND OPTIONS THEREON" UNDER THE HEADING
"FUTURES, OPTIONS ON FUTURES, OPTIONS ON SECURITIES AND INDICES, FORWARD
CONTRACTS, AND OPTIONS ON FOREIGN CURRENCIES (COLLECTIVELY, `FINANCIAL
INSTRUMENTS')" (PAGE 26) IS REVISED BY ADDING THE FOLLOWING:
Neuberger&Berman GUARDIAN Portfolio may purchase and sell stock index
futures contracts, and may purchase and sell options thereon. For purposes of
managing cash flow, the managers may use such futures and options to increase
the Portfolio's exposure to the performance of a recognized securities index,
such as the S&P "500" Index.
III. THE SECTION "PUT AND CALL OPTIONS ON SECURITIES INDICES" UNDER THE HEADING
"FUTURES, OPTIONS ON FUTURES, OPTIONS ON SECURITIES AND INDICES, FORWARD
CONTRACTS, AND OPTIONS ON FOREIGN CURRENCIES (COLLECTIVELY, "FINANCIAL
INSTRUMENTS") (PAGE 34) IS REVISED BY ADDING THE FOLLOWING:
For purposes of managing cash flow, Neuberger & Berman GUARDIAN Portfolio
may purchase put and call options on securities indices to increase the
Portfolio's exposure to the performance of a recognize securities index, such as
the S&P "500" Index. All securities index options purchased by Neuberger &
Berman GUARDIAN Portfolio will be listed and traded on an exchange.
The date of this Supplement is October 1, 1998.
<PAGE>
DC-259274.02
DC-259274.02
NEUBERGER&BERMAN
EQUITY FUNDS
SUPPLEMENT TO THE PROSPECTUS DATED DECEMBER 15, 1997, AS AMENDED MAY 4,
1998
I. THE SECTION WHICH PROVIDES A SUMMARY OF THE FEATURES OF NEUBERGER&BERMAN
FOCUS FUND AND NEUBERGER&BERMAN INTERNATIONAL FUND (PAGE 4) IS REVISED TO READ
AS FOLLOWS:
- --------------------------------------------------------------------------------
FOCUS FUND Value fund, more Invests principally in
concentrated portfolio common stocks selected
than Guardian. May from 13 multi-industry
invest without regard to sectors of the economy.
market capitalization. To maximize potential
return, the Portfolio
normally makes at least
90% of its investments in
not more than six sectors
of the economy believed by
the portfolio manager to
be undervalued.
- --------------------------------------------------------------------------------
INTERNATIONAL FUND Broadly diversified Seeks long-term capital
international equity appreciation by
fund. investing primarily in
foreign stocks of any
capitalization, both in
developed economies and in
emerging markets.
Portfolio manager seeks
undervalued companies in
countries with strong
potential for growth.
- --------------------------------------------------------------------------------
II. THE FOLLOWING DISCLOSURE REGARDING NEUBERGER&BERMAN FOCUS PORTFOLIO IS ADDED
TO PAGE 21 OF THE PROSPECTUS:
INVESTMENT PROGRAMS - NEUBERGER&BERMAN FOCUS PORTFOLIO
The Portfolio may invest in stocks of companies of any market
capitalization. For more information, see "Special Considerations of Small- and
Mid-Cap Company Stocks" on page 27.
<PAGE>
III. THE FOLLOWING DISCLOSURE REGARDING NEUBERGER&BERMAN GUARDIAN PORTFOLIO IS
ADDED TO PAGE 23 OF THE PROSPECTUS:
INVESTMENT PROGRAMS - NEUBERGER&BERMAN GUARDIAN PORTFOLIO
For purposes of managing cash flow, the Portfolio at times may
invest in financial instruments, the return on which is intended to approximate
the performance of a recognized securities index, such as the S&P "500" Index.
These may include options and futures on securities indices, options on such
futures, and instruments structured as investment companies.
IV. THE SECOND PARAGRAPH IN THE SECTION ON THE INVESTMENT PROGRAM OF
NEUBERGER&BERMAN INTERNATIONAL PORTFOLIO (PAGE 23) IS REVISED TO READ AS
FOLLOWS:
INVESTMENT PROGRAMS - NEUBERGER&BERMAN INTERNATIONAL PORTFOLIO
Neuberger&Berman INTERNATIONAL Portfolio invests primarily in equity
securities of companies traded on foreign exchanges. The Portfolio may invest in
companies of any market capitalization. The strategy of N&B Management is to
select attractive investment opportunities outside the United States, allocating
the Portfolio's assets among investments in economically mature countries and
emerging industrialized countries. The criteria for security selection focus on
companies with leadership in specific industries that appear to exhibit positive
fundamentals and seem undervalued relative to their earnings potential or the
worth of their assets. At least 65% of the Portfolio's total assets normally are
invested in equity securities of foreign issuers. The Portfolio may invest more
heavily in certain countries than in others. From time to time, the Portfolio
may invest a significant portion of its assets in Japan.
V. THE PARAGRAPHS REGARDING THE PORTFOLIO MANAGEMENT OF NEUBERGER&BERMAN FOCUS
PORTFOLIO, NEUBERGER&BERMAN GUARDIAN PORTFOLIO AND NEUBERGER&BERMAN PARTNERS
PORTFOLIO IN THE SECTION "MANAGEMENT AND ADMINISTRATION - INVESTMENT MANAGER,
ADMINISTRATOR, DISTRIBUTOR, AND SUB-ADVISER" (PAGES 47-48) ARE
REVISED TO READ AS FOLLOWS:
MANAGEMENT AND ADMINISTRATION
INVESTMENT MANAGER, ADMINISTRATOR, DISTRIBUTOR AND SUB-ADVISER
Neuberger&Berman FOCUS Portfolio -- Kent C. Simons is manager of the
Portfolio. Mr. Simons is a Vice President of N&B Management and a principal
of Neuberger&Berman. Mr. Simons has had responsibility for Neuberger&Berman
FOCUS Portfolio since 1988.
Neuberger&Berman GUARDIAN Portfolio -- Kevin L. Risen and Rick White
are co-managers of the Portfolio. Mr. Risen is a Vice President of N&B
Management and a principal of Neuberger&Berman. Mr. Risen has had
responsibility for Neuberger&Berman GUARDIAN Portfolio since 1996, and during
<PAGE>
the prior year, he was a portfolio manager for Neuberger&Berman. He was a
research analyst at Neuberger&Berman from 1992 to 1995. Mr. White is a Vice
President of N&B Management. He has had responsibility for Neuberger&Berman
GUARDIAN Portfolio since September 1998. From 1989 to September 1998, he was
a portfolio manager for a mutual fund managed by a prominent investment
adviser.
Neuberger&Berman PARTNERS Portfolio -- Michael M. Kassen, Robert I.
Gendelman, and S. Basu Mullick are co-managers of the Portfolio. Mr. Kassen,
Mr. Gendelman, and Mr. Mullick are Vice Presidents of N&B Management. Mr.
Kassen and Mr. Gendelman are principals of Neuberger&Berman. Mr. Kassen, Mr.
Gendelman and Mr. Mullick have had responsibility for Neuberger&Berman
PARTNERS Portfolio since June 1990, October 1994, and October 1998,
respectively. Mr. Kassen has been an employee of N&B Management since 1990.
Mr. Gendelman was a portfolio manager for another mutual fund manager from
1992 to 1993. Mr. Mullick was a portfolio manager for a prominent investment
adviser from 1993 to 1998.
VI. THE SECTION "DESCRIPTION OF INVESTMENTS - OTHER INVESTMENT COMPANIES" ON
PAGE 57 OF THE PROSPECTUS IS REVISED TO READ AS FOLLOWS:
DESCRIPTION OF INVESTMENTS
OTHER INVESTMENT COMPANIES.
Neuberger&Berman INTERNATIONAL Portfolio may invest in the shares of other
investment companies. Such investment may be the most practical or only manner
in which the Portfolio can participate in certain foreign markets because of the
expenses involved or because other vehicles for investing in those countries may
not be available at the time the Portfolio is ready to make an investment.
Neuberger&Berman GUARDIAN Portfolio at times may invest in instruments
structured as investment companies to gain exposure to the performance of a
recognized securities index, such as the S&P "500" Index.
As a shareholder in an investment company, a Portfolio would bear its pro
rata share of that investment company's expenses. Investment in other funds may
involve the payment of substantial premiums above the value of such issuer's
portfolio securities. Neuberger&Berman INTERNATIONAL and Neuberger&Berman
GUARDIAN Portfolios do not intend to invest in such funds unless, in the
judgment of N&B Management, the potential benefits of such investment justify
the payment of any applicable premium or sales charge.
Each Portfolio's investment in such securities is limited to (i) 3% of the
total voting stock of any one investment company, (ii) 5% of the Portfolio's
total assets with respect to any one investment company and (iii) 10% of the
Portfolio's total assets in the aggregate.
The date of this Supplement is October 1, 1998.
<PAGE>
NEUBERGER&BERMAN
EQUITY FUNDS
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED DECEMBER 15, 1997
I. THE FINAL PARAGRAPH IN THE SECTION "INVESTMENT INFORMATION - INVESTMENT
POLICIES AND LIMITATIONS" (PAGE 6) IS REVISED TO READ AS FOLLOWS:
Each Portfolio (except Neuberger&Berman GUARDIAN, Neuberger&Berman
SOCIALLY RESPONSIVE and Neuberger&Berman INTERNATIONAL Portfolios) as an
operating policy, does not intend to invest in futures contracts and options
thereon during the coming year. In addition, although the Portfolios do not have
policies limiting their investment in warrants, no Portfolio currently intends
to invest in warrants unless acquired in units or attached to securities.
II. THE SECTION "FUTURES CONTRACTS AND OPTIONS THEREON" UNDER THE HEADING
"FUTURES, OPTIONS ON FUTURES, OPTIONS ON SECURITIES AND INDICES, FORWARD
CONTRACTS, AND OPTIONS ON FOREIGN CURRENCIES (COLLECTIVELY, `FINANCIAL
INSTRUMENTS')" (PAGE 26) IS REVISED BY ADDING THE FOLLOWING:
Neuberger&Berman GUARDIAN Portfolio may purchase and sell stock index
futures contracts, and may purchase and sell options thereon. For purposes of
managing cash flow, the managers may use such futures and options to increase
the Portfolio's exposure to the performance of a recognized securities index,
such as the S&P "500" Index.
III. THE SECTION "PUT AND CALL OPTIONS ON SECURITIES INDICES" UNDER THE HEADING
"FUTURES, OPTIONS ON FUTURES, OPTIONS ON SECURITIES AND INDICES, FORWARD
CONTRACTS, AND OPTIONS ON FOREIGN CURRENCIES (COLLECTIVELY, "FINANCIAL
INSTRUMENTS") (PAGE 34) IS REVISED BY ADDING THE FOLLOWING:
For purposes of managing cash flow, Neuberger & Berman GUARDIAN Portfolio
may purchase put and call options on securities indices to increase the
Portfolio's exposure to the performance of a recognize securities index, such as
the S&P "500" Index. All securities index options purchased by Neuberger &
Berman GUARDIAN Portfolio will be listed and traded on an exchange.
The date of this Supplement is October 1, 1998.
