<PAGE>
SEMI-ANNUAL REPORT
- - -------------------------------------------------------------
February 28, 1995
Neuberger&Berman
Equity Trust -SM-
Neuberger&Berman
NYCDC SOCIALLY RESPONSIVE TRUST
[Large graphic of ampersand as the background of the cover page.]
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
THE TRUST
CHAIRMAN'S LETTER 3
QUESTIONS AND
ANSWERS 4
FINANCIAL STATEMENTS 6
FINANCIAL HIGHLIGHTS 12
THE PORTFOLIO
SCHEDULE OF
INVESTMENTS 14
FINANCIAL STATEMENTS 17
FINANCIAL HIGHLIGHTS 22
DIRECTORY 23
OFFICERS AND
TRUSTEES 24
</TABLE>
2
<PAGE>
CHAIRMAN'S LETTER APRIL 19, 1995
Dear Shareholder:
The stock market has given investors quite a ride during the six-month period
covered by this Semi-Annual Report. The Dow Jones Industrial Average started the
period at 3913, then slid to a low of 3675 in November, and quickly rebounded to
close on February 28, 1995 at 4011. In fact, the market continues to set new
highs.
The popular stock market indices do not really reflect the turmoil and
substantial variation in the performance of individual stocks that underlie the
indices. Stocks of different industries rise and fall rapidly depending upon
Wall Street's perception of current events. Meanwhile, we continue to adhere to
our long standing investment strategy of building our portfolios with high
quality, solid companies whose stocks we believe are good values when their
prices become depressed.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
STOCKS DOW JONES INDUSTRIAL AVERAGE
<S> <C>
9/1/94 3,901.44
9/2/94 3,885.58
9/6/94 3,898.70
9/7/94 3,866.25
9/8/94 3,908.46
9/9/94 3,874.81
9/12/94 3,860.34
9/13/94 3,879.86
9/14/94 3,895.33
9/15/94 3,953.88
9/16/94 3,933.35
9/19/94 3,936.72
9/20/94 3,869.09
9/21/94 3,851.60
9/22/94 3,837.13
9/23/94 3,831.75
9/26/94 3,849.24
9/27/94 3,863.04
9/28/94 3,878.18
9/29/94 3,854.63
9/30/94 3,843.19
10/3/94 3,846.89
10/4/94 3,801.13
10/5/94 3,787.34
10/6/94 3,775.56
10/7/94 3,797.43
10/10/94 3,821.32
10/11/94 3,876.83
10/12/94 3,875.15
10/13/94 3,889.95
10/14/94 3,910.47
10/17/94 3,923.93
10/18/94 3,917.54
10/19/94 3,936.04
10/20/94 3,911.15
10/21/94 3,891.30
10/24/94 3,855.30
10/25/94 3,850.59
10/26/94 3,848.23
10/27/94 3,875.15
10/28/94 3,930.66
10/31/94 3,908.12
11/1/94 3,863.37
11/2/94 3,837.13
11/3/94 3,845.88
11/4/94 3,807.52
11/7/94 3,808.87
11/8/94 3,830.74
11/9/94 3,831.75
11/10/94 3,821.99
11/11/94 3,801.47
11/14/94 3,829.73
11/15/94 3,826.36
11/16/94 3,845.20
11/17/94 3,828.05
11/18/94 3,815.26
11/21/94 3,769.51
11/22/94 3,677.99
11/23/94 3,674.63
11/25/94 3,708.27
11/28/94 3,739.56
11/29/94 3,738.55
11/30/94 3,739.23
12/1/94 3,700.87
12/2/94 3,745.62
12/5/94 3,741.92
12/6/94 3,745.95
12/7/94 3,735.52
12/8/94 3,685.73
12/9/94 3,691.11
12/12/94 3,718.37
12/13/94 3,715.34
12/14/94 3,746.29
12/15/94 3,765.47
12/16/94 3,807.19
12/19/94 3,790.70
12/20/94 3,767.15
12/21/94 3,801.80
12/22/94 3,814.92
12/23/94 3,833.43
12/27/94 3,861.69
12/28/94 3,839.49
12/29/94 3,833.43
12/30/94 3,834.44
1/3/95 3,838.48
1/4/95 3,857.65
1/5/95 3,850.92
1/6/95 3,867.41
1/9/95 3,861.35
1/10/95 3,866.74
1/11/95 3,862.03
1/12/95 3,859.00
1/13/95 3,906.46
1/16/95 3,932.34
1/17/95 3,930.66
1/18/95 3,928.98
1/19/95 3,882.21
1/20/95 3,869.43
1/23/95 3,867.41
1/24/95 3,862.70
1/25/95 3,871.45
1/26/95 3,870.44
1/27/95 3,857.99
1/30/95 3,832.08
1/31/95 3,843.86
2/1/95 3,847.56
2/2/95 3,870.77
2/3/95 3,926.64
2/6/95 3,937.73
2/7/95 3,937.39
2/8/95 3,935.37
2/9/95 3,932.68
2/10/95 3,939.07
2/13/95 3,954.21
2/14/95 3,958.25
2/15/95 3,986.17
2/16/95 3,987.52
2/17/95 3,953.54
2/21/95 3,963.97
2/22/95 3,973.05
2/23/95 4,003.33
2/24/95 4,011.74
2/27/95 3,988.57
2/28/95 4,011.05
3/1/95 3,994.80
3/2/95 3,979.93
3/3/95 3,989.61
3/6/95 3,997.56
3/7/95 3,962.63
3/8/95 3,979.23
3/9/95 3,983.39
3/10/95 4,035.61
3/13/95 4,025.23
3/14/95 4,048.75
3/15/95 4,038.37
3/16/95 4,069.15
3/17/95 4,073.65
3/20/95 4,083.68
3/21/95 4,072.61
3/22/95 4,082.99
3/23/95 4,087.83
3/24/95 4,138.67
3/27/95 4,157.34
</TABLE>
It is important for us to maintain a long-term investment perspective. We
believe it is important for you as well. We will continue to make every effort
to merit your confidence. After all, we are shareholders too.
Sincerely,
[SIGNATURE]
Stanley Egener
Chairman of the Board
Neuberger&Berman Equity Trusts
3
<PAGE>
PORTFOLIO MANAGER'S COMMENTARY
Neuberger&Berman
- - ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
JANET PRINDLE -- PORTFOLIO MANAGER
Q
WHAT HAS YOUR INVESTMENT STRATEGY BEEN DURING THIS PERIOD?
A We continue to follow our traditional value-oriented investment strategy,
building the Portfolio by investing in companies that have solid
fundamentals and sell at attractive prices. Frequently, such companies are
out of favor with the market at the time we buy them.
When we find a company that meets our financial criteria, we apply a variety
of social screens to assure that the company meets our environmental,
workplace and other corporate citizenship criteria.
Q
WHAT ARE SOME EXAMPLES OF STOCKS THAT HAD A SIGNIFICANT IMPACT
ON THE TRUST'S PERFORMANCE?
A Hewlett-Packard is an excellent example of the kind of company we look for.
It has a record of introducing quality products based on innovative research
and development. Hewlett-Packard has also been a leader in supporting
science education at all age levels and in waste reduction and recycling. We
purchased Hewlett-Packard's stock at relatively low prices when we started
the Portfolio. Since then its financial performance has exceeded our
expectations, posting strong earnings and solid growth in new orders.
Another of our favorites is Johnson & Johnson. We bought it when we felt
health care was out of favor and we believed its stock price was artificially
depressed. The stock has since outperformed both the health care sector and
the stock market in general. Johnson & Johnson illustrates the synergy
between good corporate citizenship and good business that is the hallmark of
the companies in the Portfolio. It is among the best companies for women and
minorities to work for, and it leads a number of industry groups seeking to
foster sound environmental practices.
4
<PAGE>
- - ----------------------------------------------------------------------
NYCDC Socially Responsive Trust (Cont'd)
During the six-month period that ended February 28, the rise in interest
rates had an adverse effect on our large holdings in financial services
companies. However, as rates began to stabilize in early 1995, the market
began to reflect the fundamental sturdiness of these stocks and performance
began to improve. Stocks of retail stores proved disappointing, although we
did not invest heavily in them. The performance of Toys "R" Us did not meet
our expectations. However, we continue to hold this company in the belief
that the steps it has taken to increase market share, which were costly to
the stock price in recent months, will strengthen the stock in the long run.
The company is growing at an estimated 30% a year internationally.
Q
WHAT IS AN EXAMPLE OF A STOCK YOU HAVE PURCHASED DURING THIS
PERIOD?
A One of our new stocks is Applied Materials, a manufacturer of semiconductor
equipment. The stock was purchased when the market concluded that the
industry was near the end of one of its periodic cycles of boom and bust.
However, we believe that computer chips are likely to penetrate new markets
and that the company will develop more on-line capacity to meet these new
needs. This trend seems very positive for Applied Materials, and its stock
has already risen modestly above our purchase price.
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman
- - ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
<TABLE>
<CAPTION>
February 28,
1995
(000'S OMITTED EXCEPT PER SHARE AMOUNT) (UNAUDITED)
<S> <C>
- - --------------------------------------------------------------------------------------
ASSETS
Investment in Portfolio, at value (Note A) $ 71,457
Deferred organization costs (Note A) 39
Receivable for Trust shares sold 36
Receivable from administrator -- net (Note B) 26
-------------
71,558
-------------
LIABILITIES
Payable for Trust shares redeemed 63
Accrued expenses 49
-------------
112
-------------
NET ASSETS at value $ 71,446
-------------
NET ASSETS consist of:
Par value $ 7
Paid-in capital in excess of par value 69,891
Accumulated undistributed net investment income 125
Accumulated net realized losses on investment (2,034)
Net unrealized appreciation in value of investment 3,457
-------------
NET ASSETS at value $ 71,446
-------------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 6,877
-------------
NET ASSET VALUE, offering and redemption price per share $10.39
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman
- - ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
<TABLE>
<CAPTION>
For the
Six Months
Ended
February 28,
1995
(000'S OMITTED) (UNAUDITED)
<S> <C>
- - -------------------------------------------------------------------------------------
INVESTMENT INCOME
Investment income from Portfolio (Note A) $ 641
------
Expenses:
Shareholder reports 34
Administration fee (Note B) 17
Registration and filing fees 14
Legal fees 12
Custodian fees 5
Amortization of deferred organization and initial offering
expenses (Note A) 5
Auditing fees 4
Shareholder servicing agent fees 4
Trustees' fees and expenses 3
Miscellaneous 1
Expenses from Portfolio (Note A) 236
------
Total expenses 335
Deduct -- expenses reimbursed by administrator (Note B) (134)
------
Total net expenses 201
------
Investment income -- net 440
------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS FROM PORTFOLIO
(NOTE A)
Net realized loss on investments (1,262)
Change in net unrealized appreciation of investments 1,405
------
Net gain on investments from Portfolio (Note A) 143
------
Net increase in net assets resulting from operations $ 583
------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman
- - ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
<TABLE>
<CAPTION>
For the
For the Period from
Six Months March 14, 1994
Ended (Commencement
February 28, of Operations) to
1995 August 31,
(000'S OMITTED) (UNAUDITED) 1994
<S> <C> <C>
- - ---------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Investment income -- net $ 440 $ 426
Net realized loss on investments sold from
Portfolio (Note A) (1,262) (772)
Change in net unrealized appreciation of
investments from Portfolio (Note A) 1,405 2,052
-----------------------------------
Net increase in net assets resulting from
operations 583 1,706
-----------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income -- net (741) --
-----------------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 9,913 72,371
Proceeds from reinvestment of dividends 741 --
Payments for shares redeemed (7,636) (5,491)
-----------------------------------
Net increase from Trust share transactions 3,018 66,880
-----------------------------------
NET INCREASE IN NET ASSETS 2,860 68,586
NET ASSETS:
Beginning of period 68,586 --
-----------------------------------
End of period $71,446 $68,586
-----------------------------------
Accumulated undistributed net investment
income at end of period $ 125 $ 426
-----------------------------------
NUMBER OF TRUST SHARES:
Sold 984 7,119
Issued on reinvestment of dividends 75 --
Redeemed (756) (545)
-----------------------------------
Net increase in shares outstanding 303 6,574
-----------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
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 (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 (93.76% at February 28, 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
9
<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.
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 February 28, 1995, the unamortized balance of such expenses
amounted to $38,606.
6) EXPENSE ALLOCATION: The Fund bears all costs of operations. Expenses incurred
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.
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
10
<PAGE>
subject to termination by Management upon at least sixty (60) days' prior
written notice to the Fund. For the six months ended February 28, 1995, such
excess expenses amounted to $133,547.
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 six months ended February 28, 1995, additions and reductions in
the Fund's investment in the Portfolio amounted to $7,393,195 and $5,068,795,
respectively.
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 accountants. Annual reports
contain audited financial statements.
11
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- - --------------------------------------------------------------------------------
NYCDC Socially Responsive Trust
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>
FOR THE FOR THE
SIX MONTHS ENDED PERIOD FROM
FEBRUARY 28, 1995 MARCH 14, 1994(1) TO
(UNAUDITED) AUGUST 31, 1994
- - --------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $10.43 $10.20
----------------------------------------
Income From Investment Operations
Net Investment Income .06 .06
Net Gains or Losses on Securities
(both realized and unrealized) .01 .17
----------------------------------------
Total From Investment Operations .07 .23
----------------------------------------
Less Distributions
Dividends (from net investment income) (.11) --
----------------------------------------
Net Asset Value, End of Period $10.39 $10.43
----------------------------------------
Total Return+ +.71%(2) +2.26%(2)
----------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 71.4 $ 68.6
----------------------------------------
Ratio of Expenses to Average Net Assets .60%(3) .60%(3)
----------------------------------------
Ratio of Net Income to Average Net Assets 1.31%(3) 1.42%(3)
----------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
12
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
1) The date investment operations commenced.
2) Not annualized.
3) Annualized. 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 of expenses and net income to
average daily net assets would have been 1.00% and .91%, respectively, for
the six months ended February 28, 1995, and .84% and 1.18%, respectively, for
the period ended August 31, 1994.
+ 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 period
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.
13
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- - ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
TOP TEN HOLDINGS
- - -----------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. Scott Paper 3.4 %
2. Tyco International 2.7 %
3. Cabot Corp. 2.7 %
4. Chubb Corp. 2.7 %
5. CITICORP 2.7 %
6. Procter & Gamble 2.6 %
7. Johnson & Johnson 2.5 %
8. MBNA Corp. 2.4 %
9. Mead Corp. 2.3 %
10. Bob Evans Farms 2.2 %
</TABLE>
<TABLE>
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ --------
<C> <S> <C>
COMMON STOCKS (96.3%)
ADVERTISING (2.1%)
30,000 Omnicom Group $ 1,594
--------
AGRICULTURE (0.7%)
58,500 Mycogen Corp. 541
--------
BANKING (4.0%)
45,000 CITICORP 2,025
50,000 Southtrust Corp. 1,031
--------
3,056
--------
BUSINESS SERVICES (2.8%)
42,000 Banta Corp. 1,355
20,000 H & R Block 752
--------
2,107
--------
CHEMICALS (6.6%)
61,000 Cabot Corp. 2,074
47,000 Minerals Technologies 1,381
54,000 Morton International 1,579
--------
5,034
--------
CONSUMER GOODS & SERVICES (7.9%)
30,000 Libbey Inc. 547
18,000 Marcus Corp. 486
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ --------
<C> <S> <C>
30,000 Procter & Gamble $ 1,995
32,600 Scott Paper 2,584
24,100 Sola International 410
--------
6,022
--------
DIVERSIFIED (3.8%)
40,000 Mark IV Industries 800
39,800 Tyco International 2,074
--------
2,874
--------
ELECTRONICS (3.9%)
34,000 Arrow Electronics 1,411
40,000 Dionex Corp. 1,590
--------
3,001
--------
ENERGY (4.6%)
55,000 Noble Affiliates 1,402
67,200 Snyder Oil 941
59,000 Tidewater Inc. 1,158
--------
3,501
--------
FINANCIAL SERVICES (8.5%)
32,600 Chelsea GCA Realty 868
20,000 Federal National Mortgage Association 1,543
70,000 MBNA Corp. 1,846
40,000 Travelers Inc. 1,555
40,000 Triad Guaranty 630
--------
6,442
--------
FURNISHINGS (2.1%)
40,000 Leggett & Platt 1,635
--------
HEALTH CARE (3.5%)
33,000 Johnson & Johnson 1,873
30,200 Sun Healthcare Group 774
--------
2,647
--------
INDUSTRIAL & COMMERCIAL
PRODUCTS (1.7%)
70,500 Duriron Co. 1,322
--------
INSURANCE (7.1%)
43,000 Allmerica Property & Casualty 839
</TABLE>
14
<PAGE>
February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
Socially Responsive Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ --------
<C> <S> <C>
26,000 Chubb Corp. $ 2,044
50,000 Equitable Cos. 1,119
41,000 ReliaStar Financial 1,399
--------
5,401
--------
PACKAGING & CONTAINERS (4.0%)
25,000 Caraustar Industries 475
60,000 Rock-Tenn 1,095
60,000 Sonoco Products 1,455
--------
3,025
--------
PAPER & FOREST PRODUCTS (2.3%)
32,000 Mead Corp. 1,752
--------
PUBLISHING & BROADCASTING (1.0%)
17,000 Reader's Digest Class A 782
--------
RECYCLING (0.8%)
43,000 IMCO Recycling 640
--------
RESTAURANTS (2.2%)
80,000 Bob Evans Farms 1,700
--------
RETAIL STORES (7.1%)
38,000 May Department Stores 1,387
100,000 Price/Costco 1,362
50,000 Rite Aid 1,237
52,000 Toys "R" Us 1,450
--------
5,436
--------
TECHNOLOGY (8.3%)
35,000 Applied Materials 1,615
12,000 Hewlett-Packard 1,380
68,000 Novell, Inc. 1,382
32,000 Stratus Computer 844
42,000 Symbol Technologies 1,097
--------
6,318
--------
TELECOMMUNICATIONS (7.5%)
40,000 Airtouch Communications 1,090
29,000 AT&T 1,501
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ --------
<C> <S> <C>
77,000 MCI Communications $ 1,549
69,000 Tele-Communications, Inc. Class A 1,570
--------
5,710
--------
TEXTILES & APPAREL (1.3%)
60,000 Warnaco Group 960
--------
TRANSPORTATION (1.3%)
14,700 Airborne Freight 351
12,000 Conrail Inc. 663
--------
1,014
--------
UTILITIES (1.2%)
36,000 Brooklyn Union Gas 882
--------
TOTAL COMMON STOCKS (COST $69,726) 73,396
--------
<CAPTION>
Principal
Amount
- - ------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (4.6%)
$3,550,000 U.S. Treasury Bills, 5.20% - 5.65%, due
3/9/95 - 4/27/95 (COST $3,532) 3,532(2)
--------
TOTAL INVESTMENTS (100.9%)(COST $73,258) 76,928(3)
Liabilities, less cash, receivables and
other assets [(0.9%)] (714)
--------
TOTAL NET ASSETS (100.0%) $76,214
--------
</TABLE>
15
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
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) At cost, which approximates market value.
3) At February 28, 1995, the cost of investments for Neuberger&Berman Socially
Responsive Portfolio for Federal income tax purposes was $73,258,000. Gross
unrealized appreciation of investments was $6,126,000 and gross unrealized
depreciation of investments was $2,456,000, resulting in net unrealized
appreciation of $3,670,000, based on cost for Federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman
- - ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
February 28,
1995
(000'S OMITTED) (UNAUDITED)
<S> <C>
- - -------------------------------------------------------------------------------------
ASSETS
Investments in securities, at market value (Note A)
(Note 1) -- see Schedule of Investments $ 76,928
Cash 6
Dividends and interest receivable 99
Deferred organization costs (Note A) 27
Prepaid expenses 2
-------------
77,062
-------------
LIABILITIES
Payable for securities purchased 793
Payable to investment manager (Note B) 31
Accrued expenses 24
-------------
848
-------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS $ 76,214
-------------
NET ASSETS consist of:
Paid-in capital $ 72,544
Net unrealized appreciation in value of investments 3,670
-------------
NET ASSETS $ 76,214
-------------
Note 1: Cost of investments $ 73,258
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman
- - ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
February 28,
1995
(000'S OMITTED) (UNAUDITED)
<S> <C>
- - ---------------------------------------------------------------------------------------
INVESTMENT INCOME
Income:
Dividend income $ 587
Interest income 90
------
Total income 677
------
Expenses:
Investment management fee (Note B) 194
Custodian fees 19
Auditing fees 14
Legal fees 8
Accounting fees 5
Amortization of deferred organization and initial offering
expenses (Note A) 3
Trustees' fees and expenses 3
Insurance expense 2
------
Total expenses 248
------
Investment income -- net 429
------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments sold (1,309)
Change in net unrealized appreciation of investments 1,537
------
Net gain on investments 228
------
Net increase in net assets resulting from operations $ 657
------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman
- - ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
For the
Period from
For the March 14, 1994
Six Months (Commencement
Ended of Operations)
February 28, to
1995 August 31,
(000'S OMITTED) (UNAUDITED) 1994
<S> <C> <C>
- - -------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Investment income -- net $ 429 $ 405
Net realized loss on investments sold (1,309) (779)
Change in net unrealized appreciation of
investments 1,537 2,133
------------------------------
Net increase in net assets resulting from
operations 657 1,759
------------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Additions 10,113 73,340
Reductions (5,242) (4,413)
------------------------------
Net increase in net assets resulting from
transactions in investors' beneficial interests 4,871 68,927
------------------------------
NET INCREASE IN NET ASSETS 5,528 70,686
NET ASSETS:
Beginning of period 70,686 --
------------------------------
End of period $76,214 $70,686
------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
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. 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 portfolio belong only to that portfolio, and the
liabilities of each portfolio are borne solely by that portfolio 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, 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 February 28, 1995, the unamortized balance
of such expenses amounted to $27,276.
6) EXPENSE ALLOCATION: The Portfolio bears all costs of operations. Expenses
incurred 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.
20
<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. 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 six months ended February 28, 1995, there were purchase and sale
transactions (excluding short-term securities) of $21,618,414 and $16,589,487,
respectively.
Brokerage commissions on securities transactions amounted to $54,105, of
which Neuberger received $46,698, and other brokers received $7,407.
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 accountants. Annual
reports contain audited financial statements.
21
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- - --------------------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
For the
For the Period from
Six Months March 14, 1994
Ended (Commencement of
February 28, Operations)
1995 to August 31,
(UNAUDITED) 1994
<S> <C> <C>
- - --------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS (ANNUALIZED):
Expenses .70% .69%
-------------------------------
Investment income -- net 1.21% 1.33%
-------------------------------
Portfolio Turnover Rate(1) 24% 14%
-------------------------------
Net Assets, End of Period (in millions) $76.2 $70.7
-------------------------------
</TABLE>
1) NOT ANNUALIZED.
22
<PAGE>
DIRECTORY
INVESTMENT MANAGER, ADMINISTRATOR
AND DISTRIBUTOR
Neuberger&Berman Management Incorporated
605 Third Avenue 2nd Floor
New York, NY 10158-0006
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
1800 M Street, NW
Washington, DC 20036-5891
Neuberger&Berman Management Inc., Neuberger&Berman NYCDC Socially Responsive
Trust, are service marks of Neuberger&Berman Management Inc.
- - -C- 1995 Neuberger&Berman Management Inc.
23
<PAGE>
OFFICERS AND TRUSTEES
Stanley Egener
CHAIRMAN OF THE BOARD AND TRUSTEE
Lawrence Zicklin
PRESIDENT AND TRUSTEE
Saul G. Cohen
TRUSTEE
Faith Colish
TRUSTEE
Donald M. Cox
TRUSTEE
Alan R. Gruber
TRUSTEE
Howard A. Mileaf
TRUSTEE
Edward I. O'Brien
TRUSTEE
Steven L. Osterweis
TRUSTEE
John T. Patterson, Jr.
TRUSTEE
John P. Rosenthal
TRUSTEE
Cornelius T. Ryan
TRUSTEE
Gustave H. Shubert
TRUSTEE
Albert M. Stone
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
24
<PAGE>
Neuberger&Berman Management Inc.
605 Third Avenue 2nd Floor
New York, NY 10158-0006
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 Funds. 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.
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