NEUBERGER BERMAN
EQUITY FUNDS
EQUITY TRUST
EQUITY ASSETS
EQUITY SERIES
(INCLUDING THE CENTURY, FOCUS, GENESIS, GUARDIAN, INTERNATIONAL,
MANHATTAN, MILLENNIUM, PARTNERS, REGENCY, SOCIALLY RESPONSIVE AND
TECHNOLOGY SERIES) (EACH A "FUND")
SUPPLEMENT TO THE PROSPECTUS DATED DECEMBER 1, 1999
NEUBERGER BERMAN
INCOME FUNDS
INCOME TRUST
(INCLUDING CASH RESERVES, GOVERNMENT MONEY FUND, HIGH YIELD BOND FUND,
MUNICIPAL MONEY FUND AND MUNICIPAL SECURITIES TRUST AND THE INSTITUTIONAL
CASH AND LIMITED MATURITY BOND SERIES) (EACH A "FUND")
SUPPLEMENT TO THE PROSPECTUS DATED MARCH 1, 2000
Each fund's board of trustees has determined that it would be beneficial for the
funds to operate in the more common "multi-class" structure rather than the
current "master/feeder" structure. This reorganization to the multi-class
structure will be submitted to shareholders of Neuberger Berman Equity Trust,
Neuberger Berman Equity Assets, Neuberger Berman Equity Series and Neuberger
Berman Income Trust for approval at a meeting on October 31, 2000.
The goal of the reorganization is to make the funds more efficient to operate
and the structure easier to understand. This reorganization would have little
effect on your investment in a fund, nor would it increase the fees you
currently pay to invest in the fund. Immediately after the reorganization, you
would own the same number of shares, having the same dollar value as you did
immediately before the reorganization. These shares will represent an interest
in the same portfolio of investment securities. The same individuals at NB
Management would continue to provide investment advisory and shareholder
services, and your rights as a shareholder would remain essentially unchanged.
Currently, each fund is a "feeder fund", meaning that, instead of holding
investment securities directly, it invests in a corresponding "master
portfolio," which in turn invests in securities. This is one way of gaining
greater efficiency by combining shareholder investments from a number of sources
into a single investment pool. If the reorganization is approved, each feeder
fund would become a class of Equity Funds or Income Funds. For example, if you
currently hold shares of Neuberger Berman Guardian Trust, after the
Reorganization you will hold Trust Class shares of Neuberger Berman Guardian
Fund. Likewise, if you are a shareholder of Neuberger Berman Limited Maturity
Bond Trust, then after the reorganization, you would hold Trust class shares of
Neuberger Berman Limited Maturity Bond Fund. The multi-class structure is
another way of gaining efficiency by combining investments from different
sources; it is now the more common way of doing it in the investment company
industry and, because of changes in regulatory requirements, it is now the
simpler way of doing it.
<PAGE>
The following additional proposals will be considered at the October 31 meeting
of shareholders:
1. Shareholders of ALL NEUBERGER BERMAN FUNDS will be voting to elect a Board of
Trustees.
2. Shareholders of ALL NEUBERGER BERMAN FUNDS will consider whether to approve a
change in the fundamental policy on diversification of investments, so as to
permit the funds to invest to a greater extent in shares of another
investment company.
3. Shareholders of NEUBERGER BERMAN GENESIS, GUARDIAN, AND PARTNERS TRUSTS will
vote on a distribution and shareholders services plan under which the fund
would be authorized to pay up to one-tenth of 1% of its net assets each year
to support those services. If a fund approves this plan, that fund's fees (or
the fees of the new class, assuming the reorganization is also approved)
would increase by that amount.
4. Shareholders of NEUBERGER BERMAN CASH RESERVES will be voting to change the
investment policies to permit the fund to concentrate its investments in the
financial services sector.
5. Shareholders of NEUBERGER BERMAN GOVERNMENT MONEY FUND will be voting to
change the fund's investment policies: (a) to permit investment in any
securities guaranteed as to principal or interest by the U.S. Government, its
agencies or instrumentalities, rather than just those backed by the full
faith and credit of the U.S. Treasury, as is now the case; (b) to permit the
use of repurchase agreements; (c) to permit the use of borrowing; and (d) to
permit the fund to lend portfolio securities.
Only shareholders as of August 15, 2000 are entitled to vote at the October 31
meeting. If you did not own shares of any Neuberger Berman fund on that date,
you will not receive proxy materials. However, sometime after the meeting, you
will receive a new prospectus reflecting the changes that have been approved. As
always, we urge you to read it carefully. Among other things, it will describe
any risks associated with newly approved changes to the investment program of
your fund.
THE DATE OF THIS SUPPLEMENT IS AUGUST 16, 2000.
NEUBERGER BERMAN
Neuberger Berman Management
605 Third Avenue 2nd Floor
New York, NY 10158-0180
