<PAGE>
<PAGE>
- ----------------------------------------------------------------------
ANNUAL REPORT
August 31, 1995
Neuberger&Berman
EQUITY TRUST -SM-
Neuberger&Berman
NYCDC SOCIALLY RESPONSIVE TRUST
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
THE FUND
CHAIRMAN'S LETTER 4
PORTFOLIO MANAGER'S
COMMENTARY 6
GROWTH OF A DOLLAR
CHART 8
COMPARISON OF A
$10,000 INVESTMENT
FINANCIAL STATEMENTS 9
FINANCIAL HIGHLIGHTS 15
PER SHARE DATA
REPORT OF
INDEPENDENT
ACCOUNTANTS 17
THE PORTFOLIO
SCHEDULE OF
INVESTMENTS 18
TOP TEN HOLDINGS
FINANCIAL STATEMENTS 21
FINANCIAL HIGHLIGHTS 26
REPORT OF
INDEPENDENT
ACCOUNTANTS 27
DIRECTORY 28
OFFICERS AND
TRUSTEES 29
</TABLE>
3
<PAGE>
CHAIRMAN'S LETTER October 11, 1995
Dear Fellow Shareholder:
Over the last six months, the strong performance of both the stock and bond
markets more than compensated for the lackluster results of 1994, when stocks
struggled to stay even and bonds had their worst year since 1926.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P "500" INDEX* MSCI EAFE (INTERNATIONAL)* MERRILL LYNCH INDEX*
<S> <C> <C> <C>
Sep-94 -2.44% -3.15% -2.045%
Oct-94 -0.24% 0.08% -2.486%
Nov-94 -3.88% -4.74% -2.717%
Dec-94 -2.45% -4.14% -1.772%
Jan-95 0.07% -7.82% 0.447%
Feb-95 3.98% -8.08% 2.274%
Mar-95 7.04% -2.35% 3.942%
Apr-95 10.19% 1.32% 5.637%
May-95 14.60% 0.12% 11.020%
Jun-95 17.26% -1.65% 11.978%
Jul-95 21.15% 4.48% 11.196%
Aug-95 21.45% 0.50% 12.606%
</TABLE>
SOURCE: BLOOMBERG FINANCIAL SERVICES
It now appears that the U.S. economy has reached the long-discussed "soft
landing." The term "soft landing" is often used to describe an economy slowing
sufficiently to keep inflation in check, but not stalling into a recession.
While the market continues to reach new highs, some investors are tempted to
try their hands at "market timing." It seldom works and shareholders are best
served by simply focusing on their long-term objectives. We feel that through
careful security selection, opportunities still exist for growth to occur.
Internationally, we see good opportunities in markets such as Southeast Asia,
and in certain Latin American countries.
Long term, we believe the market holds opportunity for shareholders that have
the discipline to demand value as well as strong growth. The performance of our
Portfolios has been aided by several sectors
4
<PAGE>
including the Technology and Finance areas. We are now looking for value in the
stocks of laggard groups such as Retail, Energy and Insurance.
Please read the interviews with our portfolio managers and their discussion of
their investment strategies over the past fiscal year ended August 31st. 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 Trust
*The S&P "500" Index is an unmanaged index generally considered to be
representative of U.S. stock market activity.
The MSCI EAFE Index is an unmanaged index generally considered to be
representative of international stock market activity.
The Merrill Lynch 7-10 year Treasury Index is an unmanaged total return market
value index consisting of all coupon-bearing U.S. Treasury publicly placed debt
securities with maturities between 7 to 10 years.
Please note that indices do not take into account any fees or expenses of
investing 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. Past performance does not guarantee
future results.
5
<PAGE>
PORTFOLIO MANAGER'S COMMENTARY
Neuberger&Berman
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
JANET PRINDLE -- PORTFOLIO MANAGER
Q
WHAT FACTORS INFLUENCED YOUR PORTFOLIO'S PERFORMANCE OVER
THE PAST FISCAL YEAR?
A During this period, we continued to follow our bottom-up
strategy, building the portfolio one stock at a time, with
no particular bias in any one sector. We took advantage of
the strength to sell stocks that had appreciated to meet our
expectations, reinvesting the proceeds into issues we felt
still represented good value. From a financial perspective,
our focus remained on companies with strong balance sheets
and good cash flow characteristics.
Q
WHAT ARE SOME EXAMPLES OF STOCKS THAT HAVE POSITIVELY
AFFECTED YOUR PORTFOLIO'S PERFORMANCE?
A We were particularly happy to note that some of our best
performing stocks were industrial companies with outstanding
environmental records. One of these is Cabot, a specialty
chemical company involved primarily in carbon black, a
"dirty" business almost by definition. New management took
over five years ago and implemented a leading edge process
re-engineering program which has improved both environmental
performance and plant efficiency. The payoff has been
evident in the past six months. Sales are up and costs are
down, and with major capital expenditures behind it, cash
flow has increased and given an added boost to earnings.
Cabot is one of the first companies we point to when asked
about our belief that good corporate citizenship is good
business.
Another good example is IMCO, one of the major independent recyclers of
aluminum in the U.S. With excellent processes, IMCO has been providing better
yields than the do-it-yourself alternative. Earnings growth has been in
excess of 30% and good cash flow and a solid balance sheet have enabled the
company to finance growth internally. IMCO is actively pursuing a "closed
loop" production system in which virtually all materials would be either
consumed or
6
<PAGE>
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust (Cont'd)
reclaimed. In the meantime, it has constructed state-of-the-art landfills.
These have turned into a real plus as its customers have become extremely
sensitive to the final disposal of their waste streams.
Q
WHAT ARE SOME FACTORS THAT HAVE NEGATIVELY AFFECTED YOUR
PORTFOLIO'S PERFORMANCE?
A Our performance was adversely affected because we did not
have an overweighted position in technology. These stocks
tend to have higher P/E's than the Portfolio's value system
is comfortable with, in most market conditions. Over the
past fiscal year, those issues we did hold performed quite
well and we have already sold some. Our retail positions
lagged a bit during the period, but we remain happy with the
stocks we own and believe that their near-term and long- term
prospects are good. Their recent performance seems to sup-
port our view.
Q
WHAT ARE SOME EXAMPLES OF STOCKS THAT YOU HAVE BOUGHT DURING
THIS PERIOD?
A During the period, we purchased shares of Dun & Bradstreet,
a leading supplier of business information. The company has
a new CEO with an entrepreneurial background and an
attractive strategy for re-energizing its world class brand
franchises. Wall Street has not yet focused on these
changes, which means that the price is still at a level we
find attractive. We also like the company because it
consistently rates high on diversity with women and
minorities heading a number of major divisions.
We also added to our position in Air Touch, the leading global wireless
communication company, with interests in cellular telephone, paging and
personal communication services. The company serves over four million
customers in the U.S. and 11 foreign countries. We believe that these markets
will continue to grow, and Air Touch's technical abilities and financial
strengths will lead to further appreciation in the stock's price.
7
<PAGE>
COMPARISON OF A $10,000 INVESTMENT
Neuberger&Berman August 31, 1995
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
NYCDC Socially Responsive Trust S&P "500"
<S> <C> <C>
1 Year +18.95% +21.42%
Life of Fund +14.25% +16.75%
</TABLE>
<TABLE>
<CAPTION>
NYCDC Socially Responsive Trust S&P "500"
<S> <C> <C>
03/11/94 $10,000 $10,000
08/31/94 $10,225 $10,345
08/31/95 $12,163 $12,561
</TABLE>
The performance information for Neuberger&Berman NYCDC Socially Responsive
Trust is as of August 31, 1995. Neuberger&Berman NYCDC Socially Responsive Trust
started operating on March 14, 1994.
Neuberger&Berman Management Inc. voluntarily bears certain operating expenses
of NYCDC Socially Responsive Trust in excess of 0.60% of average daily net
assets. This arrangement can be terminated upon 60 days' notice. Absent such
reimbursement, the average annual total returns of NYCDC Socially Responsive
Trust for the one-year ended 8/31/95 and for the period from 3/14/94 to 8/31/95
would have been +18.68% and +13.97%, respectively.
*"Total Return" is calculated including reinvestment of all income dividends and
capital gain distributions. Results represent past performance and do not
indicate future results. The value of an investment in the Fund and the return
on the investment both will fluctuate, and redemption proceeds may be higher or
lower than an investor's original cost.
The S&P "500" Index is an unmanaged index generally considered to be
representative of stock market activity. Please note that indices do not take
into account any fees and expenses of investing in the individual securities
that they track, and that individuals cannot invest directly in any index. These
data are derived by Neuberger&Berman Management Inc. and include reinvestment of
all dividends and capital gain distributions.
8
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
<TABLE>
<CAPTION>
August 31,
(000'S OMITTED EXCEPT PER SHARE AMOUNT) 1995
--------------
<S> <C>
ASSETS
Investment in Portfolio, at value (Note A) $88,559
Deferred organization costs (Note A) 34
Receivable for Trust shares sold 8
-------
88,601
-------
LIABILITIES
Payable to administrator - net (Note B) 23
Payable for Trust shares redeemed 18
Accrued expenses 17
-------
58
-------
NET ASSETS at value $88,543
-------
NET ASSETS consist of:
Par value $ 7
Paid-in capital in excess of par value 73,804
Accumulated undistributed net investment
income 609
Accumulated net realized gains on investment 932
Net unrealized appreciation in value of
investment 13,191
-------
NET ASSETS at value $88,543
-------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 7,219
-------
NET ASSET VALUE, offering and redemption price per
share $12.27
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
<TABLE>
<CAPTION>
For the
Year
Ended
August 31,
(000'S OMITTED) 1995
------------
<S> <C>
INVESTMENT INCOME
Investment income from Portfolio (Note A) $ 1,365
------------
Expenses:
Administration fee (Note B) 37
Shareholder reports 28
Registration and filing fees 13
Legal fees 10
Custodian fees 10
Amortization of deferred organization and
initial offering expenses (Note A) 10
Shareholder servicing agent fees 9
Trustees' fees and expenses 7
Auditing fees 4
Miscellaneous 1
Expenses from Portfolio (Note A) 499
------------
Total expenses 628
Deduct -- expenses reimbursed by
administrator (Note B) (186)
------------
Total net expenses 442
------------
Net investment income 923
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM
PORTFOLIO (NOTE A)
Net realized gain on investments 1,705
Change in net unrealized appreciation of
investments 11,139
------------
Net gain on investments from Portfolio
(Note A) 12,844
------------
Net increase in net assets resulting from
operations $ 13,767
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
<TABLE>
<CAPTION>
For the
Period
from March
14, 1994
For the (Commencement
Year of
Ended Operations)
August 31, to August 31,
(000'S OMITTED) 1995 1994
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 923 $ 426
Net realized gain (loss) on
investments sold from Portfolio
(Note A) 1,705 (772)
Change in net unrealized
appreciation of investments from
Portfolio (Note A) 11,139 2,052
-----------------------------
Net increase in net assets resulting
from operations 13,767 1,706
-----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (740) --
-----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 21,336 72,371
Proceeds from reinvestment of
dividends 740 --
Payments for shares redeemed (15,146) (5,491)
-----------------------------
Net increase from Trust share
transactions 6,930 66,880
-----------------------------
NET INCREASE IN NET ASSETS 19,957 68,586
NET ASSETS:
Beginning of year 68,586 --
-----------------------------
End of year $ 88,543 $ 68,586
-----------------------------
Accumulated undistributed net
investment income at end of year $ 609 $ 426
-----------------------------
NUMBER OF TRUST SHARES:
Sold 1,994 7,119
Issued on reinvestment of dividends 75 --
Redeemed (1,424) (545)
-----------------------------
Net increase in shares outstanding 645 6,574
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman August 31, 1995
- ----------------------------------------------------------------------
Equity Trust
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger&Berman NYCDC Socially Responsive Trust (the "Fund") is a
separate series of Neuberger&Berman Equity Trust (the "Trust"), a Delaware
business trust organized pursuant to a Trust Instrument dated May 6, 1993.
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 March 14, 1994
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 and state law. The trustees of
the Trust may establish additional series or classes of shares without the
approval 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 Socially Responsive 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 (91.54% at August 31, 1995). The Fund was created as an investment
vehicle for participants in the Deferred Compensation Plan of the City of New
York and Related Agencies and Instrumentalities. 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: Investments in the Portfolio of Equity Managers Trust
are valued by Equity Managers Trust as indicated in the notes following the
Portfolio's schedule of investments.
3) FEDERAL INCOME TAXES: Each series of the Trust is treated as a separate
entity for Federal income tax purposes. It is the policy of the Fund to
continue 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 taxable income (after reduction for
12
<PAGE>
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 required.
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net of
Portfolio expenses, daily on its investment in the Portfolio. Dividends and
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 that 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) 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 August 31, 1995, the unamortized balance of such expenses amounted
to $33,787.
6) EXPENSE ALLOCATION: The Fund bears all costs of 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 another 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 its respective funds
and any other investors in the Portfolio.
NOTE B -- ADMINISTRATION AND DISTRIBUTION FEES AND OTHER TRANSACTIONS
WITH AFFILIATES:
The Fund retains Neuberger&Berman Management Incorporated ("Management") as
its administrator under an Administration Agreement ("Agreement") dated as of
March 11, 1994. Pursuant to this Agreement the Fund pays Management an
administration fee at the annual rate of 0.05% of the Fund's average daily net
assets and 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 voluntarily undertaken to reimburse the Fund for its operating
expenses and its pro rata share of the Portfolio's operating expenses (excluding
interest, taxes, brokerage commissions, and extraordinary expenses) which
exceed, in the aggregate, 0.60% per annum of the Fund's average daily net
assets. This undertaking is
13
<PAGE>
subject to termination by Management upon at least sixty (60) days' prior
written notice to the Fund. For the year ended August 31, 1995, such excess
expenses amounted to $186,559.
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
individuals who are officers and/or trustees of the Trust are also partners of
Neuberger and/or officers and/or directors of Management.
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 year ended August 31, 1995, additions and reductions in the Fund's
investment in the Portfolio amounted to $15,678,008 and $9,411,348,
respectively.
14
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- --------------------------------------------------------------------------------
NYCDC Socially Responsive Trust
The following table includes selected data for a share outstanding throughout
each year 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>
FOR THE
FOR THE PERIOD FROM
YEAR ENDED MARCH 14, 1994(1)
AUGUST 31, TO
1995 AUGUST 31, 1994
--------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Year $ 10.43 $ 10.20
--------------------------------
Income From Investment Operations
Net Investment Income .13 .06
Net Gains or Losses on Securities
(both realized and unrealized) 1.82 .17
--------------------------------
Total From Investment Operations 1.95 .23
--------------------------------
Less Distributions
Dividends (from net investment
income) (.11) --
--------------------------------
Net Asset Value, End of Year $ 12.27 $ 10.43
--------------------------------
Total Return+ +18.95% +2.26%(2)
--------------------------------
Ratios/Supplemental Data
Net Assets, End of Year (in
millions) $ 88.5 $ 68.6
--------------------------------
Ratio of Expenses to Average Net
Assets(4) .60% .60%(3)
--------------------------------
Ratio of Net Income to Average Net
Assets(4) 1.26% 1.42%(3)
--------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
15
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman August 31, 1995
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
1) The date investment operations commenced.
2) Not annualized.
3) Annualized.
4) After reimbursement of expenses by the administrator as described in Note B
of Notes to Financial Statements. Had the administrator not undertaken such
action the annualized ratios to average net assets would have been:
<TABLE>
<CAPTION>
FOR THE
YEAR ENDED PERIOD FROM MARCH 14,
AUGUST 31, 1994 TO AUGUST 31,
1995 1994
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Expenses .85% .84%
- ----------------------------------------------------------------------------------------
Net Investment Income 1.01% 1.18%
- ----------------------------------------------------------------------------------------
</TABLE>
+ 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 year and
assumes dividends and capital gain 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.
16
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of Neuberger&Berman Equity Trust and
Shareholders of Neuberger&Berman NYCDC Socially Responsive Trust
We have audited the accompanying statement of assets and liabilities of
Neuberger&Berman NYCDC Socially Responsive Trust, as of August 31, 1995, and the
related statement of operations for the year then ended, and the statement of
changes in net assets and the financial highlights for the year then ended and
the period from March 14, 1994 (Commencement of Operations) to August 31, 1994.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Neuberger&Berman NYCDC Socially Responsive Trust as of August 31, 1995, the
results of its operations for the year then ended and the changes in its net
assets and the financial highlights for the year then ended and the period from
March 14, 1994 (Commencement of Operations) to August 31, 1994, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
October 6, 1995
17
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- --------------------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
TOP TEN EQUITY HOLDINGS
HOLDING PERCENTAGE
<C> <S> <C>
1. Scott Paper 3.1%
2. CITICORP 3.1%
3. Tyco International 2.4%
4. Dun & Bradstreet 2.4%
5. Johnson & Johnson 2.4%
6. Raychem Corp. 2.3%
7. Procter & Gamble 2.2%
8. Morton International 2.1%
9. Price/Costco 2.1%
10. Cabot Corp. 2.0%
</TABLE>
<TABLE>
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
COMMON STOCKS (96.5%)
ADVERTISING (2.0%)
30,000 Omnicom Group $ 1,882
-------------
AGRICULTURE (0.6%)
58,500 Mycogen Corp. 600 (2)
-------------
BANKING (5.7%)
45,000 CITICORP 2,987
60,000 Hawkeye
Bancorporation 1,504
24,700 Meridian Bancorp 991
-------------
5,482
-------------
BUSINESS SERVICES (4.1%)
42,000 Banta Corp. 1,648
40,000 Dun & Bradstreet 2,315
-------------
3,963
-------------
CHEMICALS (9.6%)
30,000 Air Products &
Chemicals 1,609
41,000 Cabot Corp. 1,973
47,000 Minerals
Technologies 1,704
</TABLE>
<TABLE>
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
64,000 Morton
International $ 2,080
57,100 Perkin-Elmer 1,948
-------------
9,314
-------------
CONSUMER GOODS & SERVICES
(5.9%)
18,000 Marcus Corp. 567
30,500 Procter & Gamble 2,116
65,200 Scott Paper 3,024
-------------
5,707
-------------
DIVERSIFIED (2.4%)
39,800 Tyco International 2,353
-------------
ELECTRONICS (1.9%)
34,000 Arrow Electronics 1,844 (2)
-------------
ENERGY (3.4%)
65,000 Noble Affiliates 1,796
59,000 Tidewater Inc. 1,460
-------------
3,256
-------------
FINANCIAL SERVICES (4.9%)
20,000 Federal National
Mortgage
Association 1,907
20,000 First USA 920
40,000 Travelers Group 1,920
-------------
4,747
-------------
FOOD & BEVERAGE (2.0%)
97,000 Whitman Corp. 1,952
-------------
FURNISHINGS (2.0%)
40,000 Leggett & Platt 1,935
-------------
HEALTH CARE (5.7%)
30,000 Columbia/HCA
Healthcare 1,410
33,000 Johnson & Johnson 2,277
20,000 Warner-Lambert 1,807
-------------
5,494
-------------
INDUSTRIAL & COMMERCIAL
PRODUCTS (4.2%)
165,000 Intermet Corp. 1,836 (2)
51,100 Raychem Corp. 2,242
-------------
4,078
-------------
</TABLE>
18
<PAGE>
August 31, 1995
- --------------------------------------------------------------------------------
Socially Responsive Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
INSURANCE (7.2%)
63,000 Allmerica Property
& Casualty $ 1,520
17,000 Chubb Corp. 1,551
76,600 Equitable Cos. 1,973
51,000 ReliaStar
Financial 1,938
-------------
6,982
-------------
OIL & GAS (0.8%)
33,600 Enron Oil & Gas 781
-------------
PACKAGING & CONTAINERS (3.0%)
70,000 Rock-Tenn 1,234
63,000 Sonoco Products 1,693
-------------
2,927
-------------
PAPER & FOREST PRODUCTS
(2.0%)
32,000 Mead Corp. 1,964
-------------
RECYCLING (1.2%)
58,000 IMCO Recycling 1,175
-------------
RESTAURANTS (1.5%)
80,000 Bob Evans Farms 1,430
-------------
RETAIL STORES (7.4%)
43,000 May Department
Stores 1,822
120,000 Price/Costco 2,025 (2)
70,000 Rite Aid 1,960
52,000 Toys "R" Us 1,352 (2)
-------------
7,159
-------------
TECHNOLOGY (5.3%)
40,000 Compaq Computer 1,910 (2)
24,000 Hewlett-Packard 1,920
21,000 Intel Corp. 1,289
-------------
5,119
-------------
TELECOMMUNICATIONS (12.7%)
50,000 Airtouch
Communications 1,625 (2)
32,500 AT&T Corp. 1,836
50,000 Globalstar
Telecommunication 775 (2)
</TABLE>
<TABLE>
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
40,000 Jones Intercable
Inc. Class A $ 565(2)
77,000 MCI Communications 1,853
48,000 Southern New
England
Telecommunications 1,614
115,000 Tele-Communications
International 1,797(2)
69,000 Tele-Communications,
Inc. Class A 1,277(2)
17,250 Tele-Communications,
Inc. Class A
Liberty Media
Group 458(2)
15,000 WorldCom Inc. 505(2)
-------------
12,305
-------------
UTILITIES (1.0%)
36,000 Brooklyn Union Gas 905
-------------
TOTAL COMMON
STOCKS (COST
$79,146) 93,354
-------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
- ---------
<C> <S> <C>
U.S. TREASURY SECURITIES
(4.4%)
$4,270,000 U.S. Treasury
Bills, 5.18% -
5.42%, due 9/7/95
- 10/26/95 (COST
$4,249) 4,249 (3)
-------------
TOTAL INVESTMENTS
(100.9%) (COST
$83,395) 97,603 (4)
Liabilities, less
cash, receivables
and other assets
[(0.9%)] (856 )
-------------
TOTAL NET ASSETS
(100.0%) $ 96,747
-------------
</TABLE>
19
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
August 31, 1995
- ----------------------------------------------------------------------
Equity Managers Trust
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.
2) Non-income producing security.
3) At cost, which approximates market value.
4) The cost of investments for Federal income tax purposes was $83,395,000. At
August 31, 1995, gross unrealized appreciation of investments was $15,062,000
and gross unrealized depreciation of investments was $854,000, resulting in
net unrealized appreciation of $14,208,000, based on cost for Federal income
tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman
- ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
August 31,
(000'S OMITTED) 1995
-------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 97,603
Cash 56
Dividends receivable 135
Deferred organization costs (Note A) 24
-------------
97,818
-------------
LIABILITIES
Payable for securities purchased 998
Payable to investment manager (Note B) 44
Accrued expenses 29
-------------
1,071
-------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL
INTERESTS $ 96,747
-------------
NET ASSETS consist of:
Paid-in capital $ 82,539
Net unrealized appreciation in value of
investments 14,208
-------------
NET ASSETS $ 96,747
-------------
*Cost of investments $ 83,395
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman
- ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
For the
Year
Ended
August 31,
(000'S OMITTED) 1995
-----------
<S> <C>
INVESTMENT INCOME
Income:
Dividend income $ 1,189
Interest income 269
-----------
Total income 1,458
-----------
Expenses:
Investment management fee (Note B) 431
Custodian fees 42
Auditing fees 20
Legal fees 13
Accounting fees 10
Trustees' fees and expenses 7
Amortization of deferred organization and
initial offering expenses (Note A) 7
Insurance expense 3
-----------
Total expenses 533
-----------
Net investment income 925
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments sold 1,842
Change in net unrealized appreciation of
investments 12,075
-----------
Net gain on investments 13,917
-----------
Net increase in net assets resulting from
operations $ 14,842
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman
- ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
For the
Period from
March 14,
1994
(Commencement
For the of
Year Operations)
Ended to
August 31, August 31,
(000'S OMITTED) 1995 1994
--------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 925 $ 405
Net realized gain (loss) on
investments sold 1,842 (779 )
Change in net unrealized
appreciation of investments 12,075 2,133
--------------------------
Net increase in net assets resulting
from operations 14,842 1,759
--------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 21,008 73,340
Reductions (9,789 ) (4,413 )
--------------------------
Net increase in net assets resulting
from transactions in investors'
beneficial interests 11,219 68,927
--------------------------
NET INCREASE IN NET ASSETS 26,061 70,686
NET ASSETS:
Beginning of year 70,686 --
--------------------------
End of year $ 96,747 $ 70,686
--------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS
August 31, 1995
- ----------------------------------------------------------------------
Equity Managers Trust
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger&Berman Socially Responsive Portfolio (the "Portfolio") is
a separate 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. Other regulated investment
companies sponsored by Neuberger&Berman Management Incorporated
("Management"), whose financial statements are not presented herein, also
invest in the Portfolio and other portfolios of Managers Trust. The Portfolio
commenced operations on March 14, 1994.
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: Investments 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 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 transactions are recorded on the basis of identified cost.
4) FEDERAL INCOME TAXES: Managers Trust intends to comply with the requirements
of the Internal Revenue Code of 1986, as amended. 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 Federal income tax purposes and is
therefore not subject to Federal income tax.
5) 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 August 31, 1995, the unamortized balance of
such expenses amounted to $23,870.
6) 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
another more appropriate allocation of expenses to each portfolio can
otherwise be made fairly. Expenses directly attributable to a portfolio are
charged to that portfolio.
24
<PAGE>
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Portfolio retains Management as its investment manager under a Management
Agreement ("Agreement") dated as of March 11, 1994. For such investment
management services, the Portfolio pays Management a fee at the annual rate of
0.55% of the first $250 million of the Portfolio's average daily net assets,
0.525% of the next $250 million, 0.50% of the next $250 million, 0.475% of the
next $250 million, 0.45% of the next $500 million, and 0.425% of average daily
net assets in excess of $1.5 billion.
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. Neuberger is
retained by Management to furnish it with investment recommendations and
research information without cost to the Portfolio. Several individuals who are
officers and/or trustees of Managers Trust are also partners of Neuberger and/or
officers and/or directors of Management.
NOTE C -- SECURITIES TRANSACTIONS:
During the year ended August 31, 1995, there were purchase and sale
transactions (excluding short-term securities) of $54,730,386 and $43,432,765,
respectively.
Brokerage commissions on securities transactions amounted to $138,378, of
which Neuberger received $95,964, and other brokers received $42,414.
25
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- --------------------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
For the
Period from
March 14, 1994
For the (Commencement
Year Ended of Operations) to
August 31, August 31,
1995 1994
----------------------------------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses .68% .69%(1)
----------------------------------
Net Investment Income 1.18% 1.33%(1)
----------------------------------
Portfolio Turnover Rate 58% 14%
----------------------------------
Net Assets, End of Year (in millions) $96.7 $70.7
----------------------------------
</TABLE>
1) Annualized.
26
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of Equity Managers Trust and
Owners of Beneficial Interest of
Neuberger&Berman Socially Responsive Portfolio:
We have audited the accompanying statement of assets and liabilities of
Neuberger&Berman Socially Responsive Portfolio, including the schedule of
investments, as of August 31, 1995, and the related statement of operations for
the year then ended, and the statement of changes in net assets and the
financial highlights for the year then ended and the period from March 14, 1994
(Commencement of Operations) to August 31, 1994. These financial statements and
financial highlights are the responsibility of the Portfolio's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 1995, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Neuberger&Berman Socially Responsive Portfolio as of August 31, 1995, and the
results of its operations for the year then ended and the changes in its net
assets and the financial highlights for the year then ended and the period from
March 14, 1994 (Commencement of Operations) to August 31, 1994, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
October 6, 1995
27
<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:
Deferred Compensation Plan of the
City of New York and Related Agencies
and Instrumentalities
40 Rector Street, 3rd Floor
New York, NY 10006
212-306-7760
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
1800 M Street, NW
Washington, DC 20036-5891
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
28
<PAGE>
OFFICERS AND TRUSTEES
Stanley Egener
CHAIRMAN OF THE BOARD
AND TRUSTEE
Lawrence Zicklin
PRESIDENT AND TRUSTEE
Faith Colish
TRUSTEE
Donald M. Cox
TRUSTEE
Alan R. Gruber
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
Stacy Cooper-Shugrue
ASSISTANT SECRETARY
C. Carl Randolph
ASSISTANT SECRETARY
29
<PAGE>
Neuberger&Berman Management Inc.
605 THIRD AVENUE 2ND FLOOR
NEW YORK, NY 10158-0180
SHAREHOLDER SERVICES
800.877.9700
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 infor-
mation 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.
PRINTED ON RECYCLED PAPER
(recycle logo) NBNYCAR30895
WITH SOY BASED INKS
<PAGE>
