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:
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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.
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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.
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II. The following disclosure regarding Neuberger&Berman FOCUS Portfolio is
added to page 22 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.
III. 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
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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.
IV. The paragraphs regarding the portfolio management of Neuberger&Berman
FOCUS Portfolio and Neuberger&Berman GUARDIAN 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 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 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.
The date of this Supplement is September 11, 1998.
