<PAGE>
SEMI-ANNUAL REPORT
- - -------------------------------------------------------------
February 28, 1995
Neuberger&Berman
Equity Trust -SM-
Neuberger&Berman
FOCUS TRUST
Neuberger&Berman
GENESIS TRUST
Neuberber&Berman
GUARDIAN TRUST
Neuberger&Berman
MANHATTAN TRUST
Neuberger&Berman
PARTNERS TRUST
[Large graphic of ampersand as the background of the cover page.]
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
THE TRUSTS
CHAIRMAN'S LETTER 4
PERFORMANCE
HIGHLIGHTS 5
PORTFOLIO MANAGERS'
COMMENTARY 6
Focus Trust 6
Genesis Trust 8
Guardian Trust 10
Manhattan Trust 12
Partners Trust 14
FINANCIAL STATEMENTS 16
FINANCIAL HIGHLIGHTS
PER SHARE DATA
Focus Trust 26
Genesis Trust 27
Guardian Trust 28
Manhattan Trust 29
Partners Trust 30
THE PORTFOLIOS
SCHEDULE OF
INVESTMENTS 32
TOP TEN HOLDINGS
Focus Portfolio 32
Genesis Portfolio 34
Guardian Portfolio 36
Manhattan Portfolio 40
Partners Portfolio 42
FINANCIAL STATEMENTS 46
FINANCIAL HIGHLIGHTS 56
DIRECTORY 59
OFFICERS AND
TRUSTEES 60
</TABLE>
3
<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>
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. A more in depth discussion of each
portfolio manager's perception is to be found in this Report. We will continue
to make every effort to merit your confidence. After all, we are shareholders
too.
Sincerely,
Stanley Egener
Chairman of the Board
Neuberger&Berman Equity Trust
4
<PAGE>
PERFORMANCE HIGHLIGHTS
<TABLE>
<CAPTION>
FOR PERIODS
ENDED 3/31/95
---------------------------------
NEUBERGER&BERMAN SIX MONTH PERIOD AVERAGE ANNUAL TOTAL RETURNS(1)
EQUITY TRUST ENDED 2/28/95 1 YR 5 YR 10 YR
<S> <C> <C> <C> <C>
- - --------------------------------------------------------------------------------
FOCUS TRUST(2) +1.61% +14.40% +14.37% +13.39%
GUARDIAN TRUST +0.47% +13.55% +14.78% +14.38%
MANHATTAN TRUST +0.51% +9.63% +11.84% +13.93%
PARTNERS TRUST -0.62% +12.31% +12.03% +13.55%
S&P "500"(3) +3.98% +15.54% +11.38% +14.38%
GENESIS TRUST +0.99% +5.75% +10.53% +10.68%(4)
RUSSELL 2000(3) +0.61% +5.52% +11.70% N/A
</TABLE>
Each Fund commenced operations in August 1993.
The Funds have identical investment objectives and policies, and invests in the
same Portfolio as other funds ("Sister Funds") which are also managed by
Neuberger&Berman Management Inc. The performance information for the Funds prior
to their commencement of operations is for the Sister Funds and their
predecessors. Neuberger&Berman Management Inc. voluntarily bears certain
expenses of each Fund so that its expense ratio per annum will not exceed the
expense ratio per annum of its corresponding Sister Fund by more than 0.10% of
the Fund's average daily net assets, until December 31, 1995. Returns would have
been lower had Neuberger&Berman Management Inc. not absorbed these expenses.
1) Average annual total return for periods ended March 31, 1995. Includes
reinvestment of all dividends and capital gain distributions. 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.
2) This Fund's name before January 1, 1995 was Neuberger&Berman Selected Sectors
Trust. Before November 1, 1991, the investment policies of the predecessor of
the Sister Fund required that a substantial percentage of its assets be
invested in the energy field; accordingly, performance results prior to that
time do not necessarily reflect the level of performance that may be expected
under the Fund's current policies.
3) The S&P "500" Index is an unmanaged index generally considered to be
representative of stock market activity. The Russell 2000 Index is an
unmanaged index consisting of the 2,000 smallest securities in the Russell
3000 Index, representing approximately 7% of the Russell 3000 total market
capitalization. The smallest company's market capitalization is roughly $13
million. The risks involved in seeking capital appreciation from investments
principally in companies with small market capitalization are set forth in
the prospectus. These data are derived by Neuberger&Berman Management Inc.
and include reinvestment of all dividends and capital gain distributions.
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.
4) From inception of Sister Fund (9/27/88).
5
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman
- - ----------------------------------------------------------------------
Focus Trust
KENT SIMONS & LAWRENCE MARX -- CO-PORTFOLIO MANAGERS
Over the past few years, Neuberger&Berman Focus Trust has had its name changed
almost as often as several of Hollywood's leading ladies. These frequent name
changes might lead you, the shareholder, to think that there may be a lack of
conviction in the way the Portfolio is managed. This is definitely not the case;
such weighty matters as what to call the Trust are left to its business
managers, while stock selection is left to its investment managers. And your
investment managers are extremely focused, a fact which has apparently even
caught the attention of those charged with naming your Trust.
Since we also manage the Portfolio of Neuberger&Berman Guardian Trust, it
might be instructive to point out the similarities and differences between the
two. Both Portfolios employ the same stock selection process; namely, we are
valuation driven in that we consider only those stocks which sell at a low
multiple to their per-share earnings. Thus, we would agree with those who refer
to us as value managers. As such we have created for Focus Trust (and for
Guardian Trust) a portfolio of stocks which typically sell at a 25% - 30%
discount to the overall stock market as measured on a price to earnings ratio
basis.
Many value managers can point to a similar statistical profile, but we believe
what differentiates us from other value managers is how we get there. We feel
your interests are best served if we can take an industry which is out of favor
and buy the best companies in it, rather than selecting an industry which is in
favor and buying its "lesser lights." The result of this approach is that while
your Portfolio has a valuation much lower than the overall stock market, it has
an earnings growth rate and a return on equity which is superior to the overall
stock market. We highlight this distinction because we feel it is significant.
Obviously, this approach requires some patience, since you cannot buy great
stocks at low valuations when everyone is bullish. But in the past, our patience
has been rewarded and we're optimistic that it will continue to be in the
future.
6
<PAGE>
- - ----------------------------------------------------------------------
Focus Trust (Cont'd)
Having explained (we hope) how we differ from other value managers, let us try
to show you how we differ from the other Portfolio we manage, the one for
Neuberger&Berman Guardian Trust. To maximize potential return, Focus' Portfolio
normally makes at least 90% of its investments in not more than six sectors of
the economy. Moreover, within those sectors, we take larger positions in
individual stocks than we do in Guardian's Portfolio. This results in fewer
stocks (about 60 in Focus Trust's Portfolio versus 120 in Guardian's Portfolio)
and a greater concentration of assets. For example, the ten largest positions in
Focus Trust's Portfolio account for 26% of its assets, whereas in Guardian
Trust's Portfolio they are only 18%. As you can see, Focus Trust's Portfolio is
significantly more concentrated than the Portfolio of its larger counterpart,
Guardian Trust. Thus, while Focus Trust's Portfolio is managed by the same two
people using the same techniques as Guardian Trust's Portfolio, it is distinctly
different.
7
<PAGE>
PORTFOLIO MANAGER'S COMMENTARY
Neuberger&Berman
- - ----------------------------------------------------------------------
Genesis Trust
JUDITH VALE -- PORTFOLIO MANAGER
Q
WHAT HAS YOUR INVESTMENT STRATEGY BEEN DURING THIS PERIOD?
A Our strategy continued to be a "bottom-up" stock-picking approach--that is,
stocks were selected one by one, based on their individual business
characteristics and valuation. There were no particular sector "bets." Due
to the volatile nature of the small-cap market-place during the last months
of 1994, we were particularly defensive, constantly pruning holdings to lock
in profits, and seeking to upgrade the overall quality of the Portfolio.
Q WHAT ARE SOME EXAMPLES OF STOCKS THAT HAD A SIGNIFICANT IMPACT ON THE
TRUST'S PERFORMANCE?
A BMC Industries, a leading manufacturer of key components for television sets
and computer monitors, performed well due to strong earnings momentum.
Similarly, DH Technology, a manufacturer of specialty printers enjoying
strong demand, appreciated along with earnings gains. Mid-South Insurance
increased in market value as the company became the subject of a takeover
offer in early March. Welbilt, a manufacturer of cooking equipment for
restaurants, was an excellent holding in the period. It was acquired by
another company for a price far in excess of our purchase price.
Charter Medical, a leader in the psychiatric services industry, was a
disappointing holding. Earnings fell short due to a reduction in in-patient
occupancy days at its facilities. Fingerhut, the second largest catalog
marketer in the U.S., had disappointing earnings due to lower-than-expected
fourth quarter sales, coupled with a variety of pressures that increased its
costs.
8
<PAGE>
- - ----------------------------------------------------------------------
Genesis Trust (Cont'd)
Kellwood, a private label and branded apparel manufacturer, had an earnings
shortfall due to poor operating performances in several of its businesses. We
believe that these problems, as well as charges taken to consolidate and
realign three small underperforming businesses, mask an underlying strength
in over 80% of their core businesses.
Q WHAT ARE SOME EXAMPLES OF STOCKS YOU PURCHASED DURING THIS PERIOD?
A Dallas Semiconductor has a diverse product portfolio comprised of
high-margin, proprietary semi-conductor devices that are sold to a broad
customer base. We view the company as a low-risk investment vehicle through
which the Portfolio can participate in what we believe is a strong
semi-conductor environment. We also initiated a position in Alumax, an
integrated aluminum producer, because of the company's operating leverage
and our anticipation of an improving market for aluminum.
Q WHAT ARE SOME EXAMPLES OF STOCKS YOU SOLD DURING THIS PERIOD?
A The majority of stocks we sold during this period were eliminated because
their companies had disappointing financial fundamentals. However, we sold
and realized significant profits in Welbilt, discussed above, due to its
acquisition, and Physicians Health Services, a dominant Connecticut HMO, due
to takeover speculation.
9
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman
- - ----------------------------------------------------------------------
Guardian Trust
KENT SIMONS & LAWRENCE MARX -- CO-PORTFOLIO MANAGERS
The stock market's ascent to new highs has not caused a corresponding rise in
the spirits of many investors; in fact, the mood of many money managers
currently tends toward the gloomy side. While the market, as measured by the 30
stock Dow Jones Industrial Average and the broader S&P "500," has made all-time
highs recently, the range of stocks moving the averages has been surprisingly
narrow. As a result, most professional money managers have had difficulty
keeping up with the averages over the last fifteen months or so, resulting more
in a sense of frustration than celebration on Wall Street.
This frustration, at times accompanied by panic, has led to large amounts of
money being managed with an increasingly short-term outlook. This, in turn, has
created an environment in which any earnings disappointments are dealt with
severely, and the rotation out of individual stocks or entire industries that
are not "performing" has been unusually rapid. Neuberger&Berman Guardian Trust's
Portfolio is not managed this way, and while your managers may feel a bit
lonesome not being part of the "crowd," we believe that your interests are much
better served by our independent approach.
Coincident with this obsession with short-term results is a trend, it seems to
us, toward managing money on a macro-economic or top down approach. Since we
invest in individual stocks, selected on their particular merits, we have never
found the macro approach useful. For example, with the Federal Reserve having
raised interest rates seven times in the past year, most people expect the
economy to slow down. We, in fact, would not disagree with this assessment,
since it is basically common sense (which makes us wonder why so many Wall
Street strategists who hold this view congratulate themselves on a blinding
insight).
10
<PAGE>
- - ----------------------------------------------------------------------
Guardian Trust (Cont'd)
Where we part company with the consensus is in the investment implications of
this anticipated slowdown. Most people apparently prefer stocks which are
allegedly "defensive," i.e., the drug, food, beverage and other non-durable
stocks. Our problem with this approach is that while these may in fact be
defensive companies, their share prices have been bid-up to the point where we
believe they are no longer defensive stocks.
Conversely, many companies that we consider excellent, whose fortunes may be
affected by the economy, have reached valuation levels which we find attractive.
Thus, even though "the market" is selling at all-time highs, we find no shortage
of companies over a fairly broad range of industries that meet our investment
criteria. Perhaps even more importantly, the quality of the holdings in the
Portfolio is, in our opinion, higher than it has ever been.
11
<PAGE>
PORTFOLIO MANAGER'S COMMENTARY
Neuberger&Berman
- - ----------------------------------------------------------------------
Manhattan Trust
MARK R. GOLDSTEIN -- PORTFOLIO MANAGER
Q
WHAT HAS YOUR INVESTMENT STRATEGY BEEN DURING THIS PERIOD?
A Our investment strategy continues to be growth at a reasonable price. During
the period, we took advantage of the markets' volatility to add to positions
in the technology and financial services industries. The short-term
valuation of our Portfolio's securities is dependent upon the current level
of interest rates, although the major long-term value determinant remains
earnings growth. Consequently, our Portfolio's performance mirrored that of
the bond market, which reflected concerns about too strong an economy during
the latter part of 1994 and rebounded in 1995, as evidence mounted of a
slowdown in economic activity.
Q WHAT ARE SOME EXAMPLES OF STOCKS THAT HAD A SIGNIFICANT IMPACT ON THE
TRUST'S PERFORMANCE?
A Micron Technology had a positive effect on the Trust's performance due to
strength in demand for computer memory, aided by increased production and a
stabilization of product prices. SAP-AG also performed well because of its
dominant position in the client/ server computer networking market. This
leadership position has been instrumental in improving SAP-AG's
profitability.
During this period, the Trust's performance was somewhat depressed by our
holdings of Schuler Homes and Argosy Gaming. Schuler Homes, the
Honolulu-based builder of single-family homes, was adversely affected by the
continued softness in the Hawaiian economy, including housing demand. This
had a negative impact on the company's near-term earnings. Due to delays in
regulatory approvals for some new gaming facilities, Argosy Gaming stock
declined, which also dampened the Trust's performance.
12
<PAGE>
- - ----------------------------------------------------------------------
Manhattan Trust (Cont'd)
Q WHAT ARE SOME EXAMPLES OF STOCKS THAT YOU HAVE BOUGHT AND SOLD DURING THIS
PERIOD?
A We bought Mannesmann-AG ADR during the period. Mannesmann-AG is a German
industrial company with a majority interest in one of the dominant cellular
telephone franchises in Germany.
We sold First Interstate Bancorp after it reached our price objective, and
Blockbuster Entertainment, which was acquired by Viacom during this period.
13
<PAGE>
PORTFOLIO MANAGER'S COMMENTARY
Neuberger&Berman
- - ----------------------------------------------------------------------
Partners Trust
MICHAEL M. KASSEN -- PORTFOLIO MANAGER
Q
WHAT HAS YOUR INVESTMENT STRATEGY BEEN DURING THIS PERIOD?
A As always, we try to find good businesses where the stock price does not
reflect the true underlying value of the company. Numerous factors go into
making this judgment -- return on capital, positive cash flow, astute
management focused on building shareholder value, and an industry leadership
position. Our goal is to strive to find securities that we believe have the
potential to deliver a total return (dividend income plus capital
appreciation) of 30% - 50% over a two-year period in a normal stock market,
where long-term returns approximate 10% annually.
Q WHAT ARE SOME EXAMPLES OF STOCKS THAT HAD A SIGNIFICANT IMPACT ON THE
TRUST'S PERFORMANCE?
A Intel benefited from a powerful market for semiconductors and rapid
acceptance of their new Pentium microprocessor, notwithstanding the
much-publicized "bug" in the product. We have pared back our holdings given
the recent strength in the stock, but it remains a significant position.
Mirage Resorts was a poorly performing stock in the first half of 1994
(following a sensational performance in 1993), as gaming stocks came "under a
cloud" due to delays in the opening of casinos in new locations. As Mirage
continued to produce excellent results, we took advantage of the temporary
weakness in its stock to add to our holdings. Continued earnings strength, as
well as an announcement of a major new casino hotel, the Beau Rivage, sparked
a renewed interest in Mirage.
Biogen's share price increased dramatically after the company announced very
positive test results for its lead compound, Beta Interferon, for multiple
sclerosis. We took advantage of the increased price to reduce our holdings.
The stock then weakened due to disappointing clinical progress for the
company's other (but less
14
<PAGE>
- - ----------------------------------------------------------------------
Partners Trust (Cont'd)
important) research and development project, as well as some uncertainty
regarding the patent position for Beta Interferon. We subsequently
repurchased some additional stock based on this weakness.
MCI Communications lost market share to AT&T in the important residential
long-distance market, which put pressure on earnings and created fears of
pricing instability. We increased our holdings on the weakness, believing
that investors do not fully recognize the continued share gains achieved by
MCI in the business market and many signs of a relatively stable pricing
environment.
Q WHAT ARE SOME EXAMPLES OF STOCKS THAT YOU HAVE BOUGHT AND SOLD DURING THIS
PERIOD?
A We bought CITICORP, because we believe the stock is valued at a
price-earnings multiple comparable to the average bank. We also consider the
company to have superior growth prospects given its position internationally
and rapidly improving capital ratio. We expect a major share repurchase
program later in 1995, which should focus attention on the unique position
of the company.
Though it is an excellent business and not an expensive stock, we sold United
Asset Management due to lackluster asset growth in its core businesses. We
purchased Abbott Labs in early 1993, in a period when all health care stocks
were under intense pressure as a result of the President's health care
proposal. This is an example of a terrific growth company that ordinarily
would not satisfy our value criteria becoming exceptionally interesting from
a price standpoint. We sold the stock as, in our judgment, it had risen from
being undervalued to fairly valued.
15
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
Neuberger&Berman
- - ----------------------------------------------------------------------
Equity Trust
<TABLE>
<CAPTION>
GENESIS
(000'S OMITTED EXCEPT PER SHARE AMOUNTS) FOCUS TRUST TRUST
<S> <C> <C>
- - ----------------------------------------------------------------------------------------
ASSETS
Investment in corresponding Portfolio, at value (Note A) $ 3,064 $ 24,221
Deferred organization costs (Note A) 34 34
Receivable for Trust shares sold 3 2
Receivable from administrator -- net (Note B) 122 --
------------------------
3,223 24,257
------------------------
LIABILITIES
Payable for Fund expenses (Note B) 72 --
Payable for Trust shares redeemed -- --
Payable to administrator -- net (Note B) -- 2
Accrued organization costs (Note A) 49 --
Accrued expenses 39 38
------------------------
160 40
------------------------
NET ASSETS at value $ 3,063 $ 24,217
------------------------
NET ASSETS consist of:
Par value $ -- $ 2
Paid-in capital in excess of par value 2,912 23,407
Accumulated undistributed net investment income (loss) 2 (24)
Accumulated net realized gains (losses) on investment 14 (32)
Net unrealized appreciation in value of investment 135 864
------------------------
NET ASSETS at value $ 3,063 $ 24,217
------------------------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 267 2,266
------------------------
NET ASSET VALUE, offering and redemption price per share $11.49 $10.69
------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
February 28, 1995 (Unaudited)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GUARDIAN MANHATTAN PARTNERS
TRUST TRUST TRUST
<S> <C> <C>
- - ---------------------------------------
$ 156,964 $ 19,724 $ 16,898
33 34 34
1,342 60 42
-- 4 4
- - ---------------------------------------
158,339 19,822 16,978
- - ---------------------------------------
-- -- --
13 -- --
29 -- --
-- -- --
67 39 40
- - ---------------------------------------
109 39 40
- - ---------------------------------------
$ 158,230 $ 19,783 $ 16,938
- - ---------------------------------------
$ 14 $ 2 $ 2
151,861 19,244 16,515
242 (14) 29
(139) 166 99
6,252 385 293
- - ---------------------------------------
$ 158,230 $ 19,783 $ 16,938
- - ---------------------------------------
14,070 1,908 1,634
- - ---------------------------------------
$11.25 $10.37 $10.37
- - ---------------------------------------
</TABLE>
17
<PAGE>
STATEMENTS OF OPERATIONS
Neuberger&Berman
- - ----------------------------------------------------------------------
Equity Trust
<TABLE>
<CAPTION>
(000'S OMITTED) FOCUS TRUST GENESIS TRUST
<S> <C> <C>
- - -----------------------------------------------------------------------------------------
INVESTMENT INCOME
Investment income from corresponding Portfolio (Note A) $ 20 $ 99
--------------------------
Expenses:
Administration fee (Note B) 5 33
Amortization of deferred organization and initial
offering expenses (Note A) 5 5
Auditing fees 2 3
Custodian fees 5 5
Legal fees 2 2
Registration and filing fees 12 13
Shareholder reports 12 11
Shareholder servicing agent fees 8 8
Trustees' fees and expenses -- 1
Miscellaneous 1 1
Expenses from corresponding Portfolio (Note A) 7 82
--------------------------
Total expenses 59 164
Deduct -- expenses reimbursed by administrator (Note B) (48) (43)
--------------------------
Total net expenses 11 121
--------------------------
Investment income (loss) -- net 9 (22)
--------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS FROM
CORRESPONDING PORTFOLIO (NOTE A)
Net realized gain (loss) on investments 16 (26)
Net realized gain on option contracts written -- --
Change in net unrealized appreciation of investments 64 772
--------------------------
Net gain on investments from corresponding Portfolio
(Note A) 80 746
--------------------------
Net increase in net assets resulting from operations $ 89 $ 724
--------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
For the Six Months Ended February 28, 1995 (Unaudited)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GUARDIAN PARTNERS
TRUST MANHATTAN TRUST TRUST
<S> <C> <C>
- - ---------------------------------------------
$ 1,119 $ 74 $ 112
- - ---------------------------------------------
201 31 28
5 5 5
3 4 2
4 5 5
6 3 3
35 13 12
48 14 17
8 8 8
2 1 --
1 1 1
249 47 37
- - ---------------------------------------------
562 132 118
(146) (53) (59)
- - ---------------------------------------------
416 79 59
- - ---------------------------------------------
703 (5) 53
- - ---------------------------------------------
(56) 282 190
14 -- --
2,813 105 95
- - ---------------------------------------------
2,771 387 285
- - ---------------------------------------------
$ 3,474 $ 382 $ 338
- - ---------------------------------------------
</TABLE>
19
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Neuberger&Berman
- - ----------------------------------------------------------------------
Equity Trust
<TABLE>
<CAPTION>
FOCUS TRUST GENESIS TRUST
Six Months Six Months
Ended Ended
February 28, Year Ended February 28, Year Ended
1995 August 31, 1995 August 31,
(000'S OMITTED) (UNAUDITED) 1994 (UNAUDITED) 1994
- - -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Investment income (loss) -- net $ 9 $ 4 $ (22) $ (2)
Net realized gain (loss) on
investments sold and option
contracts written from
corresponding Portfolio (Note A) 16 (3) (26) (13)
Change in net unrealized
appreciation of investments from
corresponding Portfolio (Note A) 64 71 772 92
-------------------------------------------------------------
Net increase in net assets resulting
from operations 89 72 724 77
-------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income -- net (11) -- -- --
Net realized gain on investments -- -- (11) --
-------------------------------------------------------------
Total distributions to shareholders (11) -- (11) --
-------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 1,934 2,011 20,915 3,172
Proceeds from reinvestment of
dividends and distributions 11 1 11 --
Payments for shares redeemed (547) (517) (509) (187)
-------------------------------------------------------------
Net increase from Trust share
transactions 1,398 1,495 20,417 2,985
-------------------------------------------------------------
NET INCREASE IN NET ASSETS 1,476 1,567 21,130 3,062
NET ASSETS:
Beginning of period 1,587 20 3,087 25
-------------------------------------------------------------
End of period $ 3,063 $ 1,587 $ 24,217 $ 3,087
-------------------------------------------------------------
Accumulated undistributed net
investment income (loss) at end of
period $ 2 $ 4 $ (24) $ (2)
-------------------------------------------------------------
NUMBER OF TRUST SHARES:
Sold 176 186 2,023 306
Issued on reinvestment of dividends
and distributions 1 -- 1 --
Redeemed (50) (48) (49) (18)
-------------------------------------------------------------
Net increase in shares outstanding 127 138 1,975 288
-------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GUARDIAN TRUST MANHATTAN TRUST PARTNERS TRUST
Six Months Six Months Six Months
Ended Ended Ended
February 28, Year Ended February 28, Year Ended February 28, Year Ended
1995 August 31, 1995 August 31, 1995 August 31,
(UNAUDITED) 1994 (UNAUDITED) 1994 (UNAUDITED) 1994
- - ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 703 $ 243 $ (5) $ 9 $ 53 $ 9
(42) (140) 282 (47) 190 33
2,813 3,437 105 280 95 198
- - ---------------------------------------------------------------------------------------------
3,474 3,540 382 242 338 240
- - ---------------------------------------------------------------------------------------------
(611) (93) (17) (1) (32) (1)
-- (4) (69) -- (129) (1)
- - ---------------------------------------------------------------------------------------------
(611) (97) (86) (1) (161) (2)
- - ---------------------------------------------------------------------------------------------
106,142 79,636 8,494 12,650 13,665 5,570
611 97 86 1 153 2
(27,151) (7,741) (1,171) (846) (1,770) (1,135)
- - ---------------------------------------------------------------------------------------------
79,602 71,992 7,409 11,805 12,048 4,437
- - ---------------------------------------------------------------------------------------------
82,465 75,435 7,705 12,046 12,225 4,675
75,765 330 12,078 32 4,713 38
- - ---------------------------------------------------------------------------------------------
$ 158,230 $ 75,765 $ 19,783 $ 12,078 $ 16,938 $ 4,713
- - ---------------------------------------------------------------------------------------------
$ 242 $ 150 $ (14) $ 8 $ 29 $ 8
- - ---------------------------------------------------------------------------------------------
9,818 7,399 851 1,247 1,346 558
57 9 9 -- 16 --
(2,528) (717) (117) (85) (175) (115)
- - ---------------------------------------------------------------------------------------------
7,347 6,691 743 1,162 1,187 443
- - ---------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
Equity Trust
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger&Berman Focus Trust ("Focus" formerly Neuberger& Berman
Selected Sectors Trust), Neuberger&Berman Genesis Trust ("Genesis"),
Neuberger&Berman Guardian Trust ("Guardian"), Neuberger&Berman Manhattan
Trust ("Manhattan"), and Neuberger&Berman Partners Trust ("Partners")
(collectively, the "Funds") are 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 and its shares are registered under the Securities Act of 1933, as
amended. The trustees of the Trust changed the name of Neuberger&Berman
Selected Sectors Trust to Neuberger& Berman Focus Trust, effective January 1,
1995. 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.
Each Fund seeks to achieve its investment objective by investing all of
its net investable assets in its corresponding Portfolio of Equity Managers
Trust (the "Portfolio") having the same investment objective and policies as
the Fund. The value of each Fund's investment in its corresponding Portfolio
reflects that Fund's proportionate interest in the net assets of that
Portfolio (0.46%, 18.38%, 5.55%, 3.92%, and 1.28%, for Focus, Genesis,
Guardian, Manhattan, and Partners, respectively, at February 28, 1995). The
performance of each Fund is directly affected by the performance of its
corresponding Portfolio. The financial statements of each Portfolio,
including the schedule of investments, are included elsewhere in this report
and should be read in conjunction with each Fund's financial statements.
2) PORTFOLIO VALUATION: Investments in each Portfolio of Equity Managers Trust
are valued by Equity Managers Trust as indicated in the notes following the
Portfolios' 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 each Fund of the
Trust 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 any amounts available for Federal
income tax purposes as capital loss
22
<PAGE>
carryforwards) sufficient to relieve it from all, or substantially all,
Federal income taxes. Accordingly, each Fund paid no Federal income taxes and
no provision for Federal income taxes was required.
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Each Fund earns income, net of
Portfolio expenses, daily on its investment in its corresponding Portfolio.
Dividends and net realized capital gains, if any, are normally distributed in
December. Guardian generally distributes substantially all of its net
investment income at the end of each calendar quarter. Income dividends and
capital gain distributions to shareholders are recorded on the ex-dividend
date. To the extent that each Fund's net realized capital gains, if any, can
be offset by capital loss carryforwards ($17 and $92,912 expiring in 2001 and
2002, respectively, for Guardian, determined as of August 31, 1994), it is
the policy of each Fund not to distribute such gains.
Each 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 each Fund in connection with its
organization are being amortized by each Fund on a straight-line basis over a
five-year period. At February 28, 1995, the unamortized balance of such
expenses amounted to $34,128, $34,021, $33,382, $34,129, and $34,129, for
Focus, Genesis, Guardian, Manhattan, and Partners, respectively. The accrued
organization costs for Focus are payable to Neuberger&Berman Management
Incorporated ("Management"), the administrator to Focus.
6) EXPENSE ALLOCATION: The Funds bear 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 each 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:
Each Fund retains Management as its administrator under an Administration
Agreement ("Agreement") dated as of August 3, 1993. Pursuant to this Agreement
each Fund pays Management an administration fee at the annual rate of 0.40% of
that Fund's average daily net assets. The Agreement provides that if with
respect to any fiscal year of each Fund, its total operating expenses plus its
pro rata portion of its
23
<PAGE>
corresponding Portfolio's operating expenses (including the fees payable to
Management but excluding interest, taxes, brokerage commissions, and
extraordinary expenses) ("Operating Expenses") exceed the most restrictive of
the expense limitations imposed by securities laws of the states in which such
Fund's shares are qualified for sale, the administration fees for that fiscal
year will be reduced by the amount of such excess, provided that Management has
no obligation to reimburse the Fund for any such expenses that exceed the
administration fee. The most restrictive expense limitation to which each Fund
is currently subject is 2 1/2% of the first $30 million of average daily net
assets, 2% of the next $70 million of average daily net assets and 1 1/2% of any
additional average daily net assets. No reduction in the administration fee as a
result of the state expense limitation was required for the six months ended
February 28, 1995.
In addition, Management has voluntarily undertaken until December 31, 1995,
to reimburse each Fund for its Operating Expenses which, in the aggregate,
exceed by more than 0.10% the expense ratio per annum of a certain other mutual
fund ("Sister Fund") which also invests in the same Portfolio. Prior to January
1, 1995, Management voluntarily reimbursed each Fund for its Operating Expenses
which exceeded the expense ratio of that Sister Fund. For the six months ended
February 28, 1995, expenses (net of reimbursement) incurred by each Fund
amounted to 0.91%, 1.44%, 0.83%, 1.01%, and 0.85%, of average daily net assets
on an annualized basis for Focus, Genesis, Guardian, Manhattan, and Partners,
respectively.
Since the inception of Focus, Management has voluntarily undertaken to pay
certain expenses of Focus as an advance. Those expenses will be repaid by Focus
to Management in the future, and are included under the caption Payable for Fund
expenses in the Statements of Assets and Liabilities.
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 each 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.
Each 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 each Fund.
24
<PAGE>
NOTE C -- INVESTMENT TRANSACTIONS:
During the six months ended February 28, 1995, additions and reductions in
each Fund's investment in its corresponding Portfolio were as follows:
<TABLE>
<CAPTION>
ADDITIONS REDUCTIONS
<S> <C> <C>
- - -----------------------------------------------------------------------------------
FOCUS $1,811,658 $ 358,858
GENESIS 20,874,965 422,828
GUARDIAN 93,796,341 16,005,934
MANHATTAN 7,785,890 478,941
PARTNERS 13,159,122 1,307,591
</TABLE>
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of each Fund without audit by independent accountants/auditors. Annual
reports contain audited financial statements.
25
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- - --------------------------------------------------------------------------------
Focus Trust(1)
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 its
corresponding Portfolio's income and expenses. It should be read in
conjunction with its corresponding Portfolio's Financial Statements and notes
thereto.
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS ENDED AUGUST 30, 1993(2)
FEBRUARY 28, 1995 YEAR ENDED TO
(UNAUDITED) AUGUST 31, 1994 AUGUST 31, 1993
<S> <C> <C> <C>
- - ------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $ 11.36 $ 10.03 $ 10.00
-----------------------------------------------------------
Income From Investment Operations
Net Investment Income .03 .05 --
Net Gains or Losses on
Securities
(both realized and unrealized) .15 1.31 .03
-----------------------------------------------------------
Total From Investment
Operations .18 1.36 .03
-----------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (.05) (.02) --
Distributions (from capital
gains) -- (.01) --
-----------------------------------------------------------
Total Distributions (.05) (.03) --
-----------------------------------------------------------
Net Asset Value, End of Period $ 11.49 $ 11.36 $ 10.03
-----------------------------------------------------------
Total Return+ +1.61%(3) +13.58% +.30%(3)
-----------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $ 3.1 $ 1.6 --
-----------------------------------------------------------
Ratio of Expenses to Average
Net Assets(4) .91%(5) .85% .92%(5)
-----------------------------------------------------------
Ratio of Net Income to Average
Net Assets(4) .81%(5) .92% .05%(5)
-----------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
26
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- - --------------------------------------------------------------------------------
Genesis 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 its
corresponding Portfolio's income and expenses. It should be read in
conjunction with its corresponding Portfolio's Financial Statements and notes
thereto.
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD FROM
FEBRUARY 28, 1995 YEAR ENDED AUGUST 26, 1993(2)
(UNAUDITED) AUGUST 31, 1994 TO AUGUST 31, 1993
<S> <C> <C> <C>
- - ------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $ 10.59 $ 10.05 $ 10.00
-----------------------------------------------------------
Income From Investment Operations
Net Investment Income (Loss) -- (.01) --
Net Gains or Losses on
Securities
(both realized and unrealized) .11 .56 .05
-----------------------------------------------------------
Total From Investment
Operations .11 .55 .05
-----------------------------------------------------------
Less Distributions
Distributions (from capital
gains) (.01) (.01) --
-----------------------------------------------------------
Net Asset Value, End of Period $ 10.69 $ 10.59 $ 10.05
-----------------------------------------------------------
Total Return+ +.99%(3) +5.47% +.50%(3)
-----------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $ 24.2 $ 3.1 --
-----------------------------------------------------------
Ratio of Expenses to Average
Net Assets(4) 1.44%(5) 1.36% 1.51%(5)
-----------------------------------------------------------
Ratio of Net Income (Loss) to
Average Net Assets(4) (.26%)(5) (.21%) (.44%)(5)
-----------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
27
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- - --------------------------------------------------------------------------------
Guardian 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 its
corresponding Portfolio's income and expenses. It should be read in
conjunction with its corresponding Portfolio's Financial Statements and notes
thereto.
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD FROM
FEBRUARY 28, 1995 YEAR ENDED AUGUST 3, 1993(2)
(UNAUDITED) AUGUST 31, 1994 TO AUGUST 31, 1993
<S> <C> <C> <C>
- - ------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $ 11.27 $ 10.27 $ 10.00
-----------------------------------------------------------
Income From Investment Operations
Net Investment Income .06 .09 --
Net Gains or Losses on
Securities
(both realized and unrealized) (.01) .99 .27
-----------------------------------------------------------
Total From Investment
Operations .05 1.08 .27
-----------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (.07) (.07) --
Distributions (from capital
gains) -- (.01) --
-----------------------------------------------------------
Total Distributions (.07) (.08) --
-----------------------------------------------------------
Net Asset Value, End of Period $ 11.25 $ 11.27 $ 10.27
-----------------------------------------------------------
Total Return+ +.47%(3) +10.57% +2.70%(3)
-----------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $ 158.2 $ 75.8 --
-----------------------------------------------------------
Ratio of Expenses to Average
Net Assets(4) .83%(5) .80% .81%(5)
-----------------------------------------------------------
Ratio of Net Income to Average
Net Assets(4) 1.40%(5) 1.50% 1.00%(5)
-----------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
28
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- - --------------------------------------------------------------------------------
Manhattan 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 its
corresponding Portfolio's income and expenses. It should be read in
conjunction with its corresponding Portfolio's Financial Statements and notes
thereto.
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD FROM
FEBRUARY 28, 1995 YEAR ENDED AUGUST 30, 1993(2)
(UNAUDITED) AUGUST 31, 1994 TO AUGUST 31, 1993
<S> <C> <C> <C>
- - ------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $ 10.37 $ 10.01 $ 10.00
-----------------------------------------------------------
Income From Investment Operations
Net Investment Income -- .01 --
Net Gains or Losses on
Securities
(both realized and unrealized) .05 .36 .01
-----------------------------------------------------------
Total From Investment
Operations .05 .37 .01
-----------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (.01) (.01) --
Distributions (from capital
gains) (.04) -- --
-----------------------------------------------------------
Total Distributions (.05) (.01) --
-----------------------------------------------------------
Net Asset Value, End of Period $ 10.37 $ 10.37 $ 10.01
-----------------------------------------------------------
Total Return+ +.51%(3) +3.70% +.10%(3)
-----------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $ 19.8 $ 12.1 --
-----------------------------------------------------------
Ratio of Expenses to Average
Net Assets(4) 1.01%(5) .96% 1.04%(5)
-----------------------------------------------------------
Ratio of Net Income (Loss) to
Average Net Assets(4) (.06%)(5) .16% 5.48%(5)
-----------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
29
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- - --------------------------------------------------------------------------------
Partners 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 its
corresponding Portfolio's income and expenses. It should be read in
conjunction with its corresponding Portfolio's Financial Statements and notes
thereto.
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD FROM
FEBRUARY 28, 1995 YEAR ENDED AUGUST 30, 1993(2)
(UNAUDITED) AUGUST 31, 1994 TO AUGUST 31, 1993
<S> <C> <C> <C>
- - ------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $ 10.54 $ 10.01 $ 10.00
-----------------------------------------------------------
Income From Investment Operations
Net Investment Income .02 .03 --
Net Gains or Losses on
Securities
(both realized and unrealized) (.09) .53 .01
-----------------------------------------------------------
Total From Investment
Operations (.07) .56 .01
-----------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (.02) (.01) --
Distributions (from capital
gains) (.08) (.02) --
-----------------------------------------------------------
Total Distributions (.10) (.03) --
-----------------------------------------------------------
Net Asset Value, End of Period $ 10.37 $ 10.54 $ 10.01
-----------------------------------------------------------
Total Return+ -.62%(3) +5.61% +.10%(3)
-----------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $ 16.9 $ 4.7 --
-----------------------------------------------------------
Ratio of Expenses to Average
Net Assets(4) .85%(5) .81% .84%(5)
-----------------------------------------------------------
Ratio of Net Income to Average
Net Assets(4) .77%(5) .47% 2.65%(5)
-----------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
30
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
Equity Trust
1) Prior to January 1, 1995, its name was Neuberger&Berman Selected Sectors
Trust.
2) The date investment operations commenced.
3) Not 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 of expenses and net income (loss) to average
daily net assets would have been as follows: 2.50% and (.78%), respectively,
for the six months ended February 28, 1995, 2.50% and (.73%), respectively,
for the year ended August 31, 1994, and 2.50% and (1.53%), respectively, for
the period ended August 31, 1993 for Focus; 1.96% and (.78%), respectively,
for the six months ended February 28, 1995, 2.50% and (1.35%), respectively,
for the year ended August 31, 1994, and 2.50% and (1.43%), respectively, for
the period ended August 31, 1993 for Genesis; 1.12% and 1.11%, respectively,
for the six months ended February 28, 1995, 1.52% and .78%, respectively, for
the year ended August 31, 1994, and 2.50% and (.69%), respectively, for the
period ended August 31, 1993 for Guardian; 1.69% and (.74%), respectively,
for the six months ended February 28, 1995, 2.50% and (1.38%), respectively,
for the year ended August 31, 1994, and 2.50% and 4.02%, respectively, for
the period ended August 31, 1993 for Manhattan; and 1.71% and (.09%),
respectively, for the six months ended February 28, 1995, 2.50% and (1.22%),
respectively, for the year ended August 31, 1994, and 2.50% and .99%,
respectively, for the period ended August 31, 1993 for Partners.
5) Annualized.
+ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of each 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 be lower if
Management had not reimbursed certain expenses.
31
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- - ----------------------------------------------------------------------
Focus Portfolio
<TABLE>
<CAPTION>
TOP TEN HOLDINGS
- - -----------------------------------------------------
HOLDING PERCENTAGE
<S> <C> <C>
1. CITICORP 3.2 %
2. Federal National Mortgage Association 2.8 %
3. Federal Home Loan Mortgage 2.7 %
4. American International Group 2.7 %
5. Chrysler Corp. 2.7 %
6. Travelers Inc. 2.4 %
7. Capital Cities/ABC 2.4 %
8. Micron Technology 2.3 %
9. Texas Instruments 2.3 %
10. AT&T 2.2 %
</TABLE>
<TABLE>
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ -------------
<C> <S> <C>
COMMON STOCKS (96.8%)
AUTOMOTIVE (6.9%)
415,000 Chrysler Corp. $ 18,052
495,000 Ford Motor 12,932
320,000 General Motors 13,640
50,000 Goodyear Tire & Rubber 1,844
-------------
46,468
-------------
FINANCIAL SERVICES (35.8%)
231,700 Allmerica Property & Casualty 4,518
175,000 American International Group 18,156
300,000 Bank of Boston 9,037
90,000 Capital One Financial 1,643
80,000 Chubb Corp. 6,290
480,000 CITICORP 21,600
600,000 Countrywide Credit Industries 9,750
295,000 Dean Witter, Discover 11,911
315,000 Federal Home Loan Mortgage 18,270
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ -------------
<C> <S> <C>
248,000 Federal National Mortgage Association $ 19,127
170,000 First Fidelity Bancorporation 8,585
230,700 First USA 8,507
80,000 General Re 10,420
220,000 Horace Mann Educators 5,280
295,000 MBNA Corp. 7,781
190,000 Merrill Lynch 7,790
259,000 National Re 7,867
117,000 NationsBank Corp. 5,835
340,000 Penncorp Financial Group 5,440
340,000 Signet Banking 12,368
526,400 Sphere Drake Holdings 7,304
150,000 Spieker Properties 3,000
410,000 Travelers Inc. 15,939
90,000 Wells Fargo 14,456
-------------
240,874
-------------
HEALTH CARE (5.0%)
285,700 FHP International 7,678
436,600 Foundation Health 13,043
150,000 Johnson & Johnson 8,513
140,000 Wellpoint Health Networks 4,603
-------------
33,837
-------------
HEAVY INDUSTRY (13.6%)
352,000 American Power Conversion 6,314
150,000 American Standard 3,075
200,000 Boise Cascade 6,425
225,000 Caraustar Industries 4,275
180,000 Cleveland-Cliffs 7,065
48,200 Consolidated Papers 2,332
524,546 LTV Corp. 8,065
150,000 Mead Corp. 8,213
137,100 National Steel 2,262
300,000 Riverwood International 4,987
</TABLE>
32
<PAGE>
February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
Focus Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ -------------
<C> <S> <C>
430,000 Rollins Truck Leasing $ 5,912
129,000 Temple-Inland 6,305
176,500 Tenneco Inc. 8,031
170,000 TNT Freightways 4,675
145,000 Weyerhaeuser Corp. 5,909
140,000 Willamette Industries 7,525
-------------
91,370
-------------
MEDIA & ENTERTAINMENT (17.4%)
89,000 A.H. Belo 5,017
325,000 Bell Cablemedia ADR 6,663
180,000 Capital Cities/ABC 15,930
865,000 Comcast Corp. Class A Special 13,624
110,000 Comcast UK Cable Partners Limited 1,753
71,000 Grupo Televisa, S.A. de C.V. GDS 1,172
325,000 Harcourt General 12,066
300,000 International CableTel 9,600
450,000 Jones Intercable Inc. Class A 7,284
175,000 King World Productions 6,234
200,000 Multimedia Inc. 7,600
350,000 Time Warner 13,519
500,000 United International Holdings 7,875
276,600 Vodafone Group ADR 8,436
-------------
116,773
-------------
MISCELLANEOUS (0.7%)
100,000 Boeing Co. 4,612
-------------
RETAIL (0.2%)
80,000 Limited, Inc. 1,400
-------------
TECHNOLOGY (15.0%)
175,000 Applied Materials 8,072
173,200 Arrow Electronics 7,188
173,000 Avnet, Inc. 6,704
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ -------------
<C> <S> <C>
225,000 Compaq Computer $ 7,762
127,500 Exabyte Corp. 2,407
135,000 Intel Corp. 10,766
250,000 Micron Technology 15,500
415,000 National Semiconductor 7,003
400,000 Pricellular Corp. 2,950
75,000 Read-Rite Corp. 1,200
175,000 Rockwell International 6,737
150,000 Sequent Computer Systems 2,569
260,500 Stratus Computer 6,871
195,000 Texas Instruments 15,356
-------------
101,085
-------------
UTILITIES (2.2%)
290,000 AT&T 15,007
-------------
TOTAL COMMON STOCKS (COST $491,731) 651,426
-------------
<CAPTION>
Principal
Amount
- - ------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (2.3%)
$15,700,000 U.S. Treasury Bills, 5.69% & 5.78%, due
4/20/95 (COST $15,574) 15,577
-------------
SHORT - TERM CORPORATE NOTES (1.5%)
$10,400,000 General Electric Capital Corp., 5.75%,
due 3/1/95 (COST $10,400) 10,400(2)
-------------
TOTAL INVESTMENTS (100.6%) (COST
$517,705) 677,403(3)
Liabilities, less cash, receivables and
other assets [(0.6%)] (4,217)
-------------
TOTAL NET ASSETS (100.0%) $ 673,186
-------------
</TABLE>
33
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- - ----------------------------------------------------------------------
Genesis Portfolio
<TABLE>
<CAPTION>
TOP TEN HOLDINGS
- - ----------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. DH Technology 3.2 %
2. BMC Industries 3.1 %
3. Coho Energy 3.1 %
4. Offshore Logistics 2.6 %
5. Texas Industries 2.6 %
6. Alumax Inc. 2.5 %
7. Reynolds & Reynolds 2.4 %
8. Pioneer Standard Electronics 2.1 %
9. Houghton Mifflin 2.0 %
10. W.H. Brady 1.8 %
</TABLE>
<TABLE>
<CAPTION>
Market
Number Value(1)
of (000's
Shares omitted)
- - -------- -------------
<C> <S> <C>
COMMON STOCKS (99.4%)
AUTOMOTIVE (4.5%)
68,100 Donaldson Co. $ 1,711
67,800 Monaco Coach 1,034
175,000 TBC Corp. 1,772
65,000 Thor Industries 1,365
-------------
5,882
-------------
BANKING & FINANCE (3.9%)
63,000 Charter One Financial 1,299
60,000 First Commerce 1,590
45,250 Mark Twain Bancshares 1,312
42,777 ONBANCorp, Inc. 968
-------------
5,169
-------------
BUILDING, CONSTRUCTION &
FURNISHINGS (4.7%)
59,500 Florida Rock Industries 1,726
40,000 Oakwood Homes 1,010
110,000 Texas Industries 3,437
-------------
6,173
-------------
CHEMICALS (2.3%)
97,500 Lawter International 1,255
75,000 Lilly Industries 1,088
38,000 Quaker Chemical 665
-------------
3,008
-------------
<CAPTION>
Market
Number Value(1)
of (000's
Shares omitted)
- - -------- -------------
<C> <S> <C>
CONSUMER PRODUCTS & SERVICES (5.2%)
92,000 Alltrista Corp. $ 2,047
253,600 Prime Hospitality 2,409
75,000 Rival Co. 1,327
40,500 Stewart Enterprises 1,083
-------------
6,866
-------------
DIVERSIFIED (3.6%)
16,000 Marcus Corp. 432
53,500 Pentair, Inc. 2,297
107,000 Raven Industries 2,006
-------------
4,735
-------------
ELECTRONICS (5.9%)
247,200 BMC Industries 4,110
21,000 Dallas Semiconductor 344
155,000 Pioneer Standard Electronics 2,713
23,000 Standard Microsystems 610
-------------
7,777
-------------
ENERGY (9.9%)
202,000 Aquila Gas Pipeline 1,515
50,000 Coda Energy 294
800,000 Coho Energy 4,050
134,200 Cross Timbers Oil 1,879
267,000 Offshore Logistics 3,438
100,000 Pride Petroleum Services 550
30,000 Smith International 401
30,000 Weatherford International 259
56,000 Zeigler Coal Holding 602
-------------
12,988
-------------
HEALTH PRODUCTS & SERVICES (1.1%)
80,000 Charter Medical 1,470
-------------
INDUSTRIAL & COMMERCIAL PRODUCTS &
SERVICES (22.1%)
110,000 Alamo Group 1,952
135,000 AMTROL, Inc. 2,194
100,000 Andros Inc. 1,725
49,100 W.H. Brady 2,430
42,100 Dionex Corp. 1,673
70,500 Holophane Corp. 1,234
50,000 Kaydon Corp. 1,375
</TABLE>
34
<PAGE>
February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
Genesis Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Number Value(1)
of (000's
Shares omitted)
- - -------- -------------
<C> <S> <C>
137,400 Material Sciences $ 2,181
85,400 McWhorter Technologies 1,281
85,200 NN Ball & Roller 1,917
114,000 Reynolds & Reynolds 3,149
38,000 Roper Industries 950
72,900 U.S. Can 1,613
19,100 Wallace Computer Services 594
67,600 Watts Industries 1,606
55,000 Wolverine Tube 1,451
100,500 Woodhead Industries 1,859
-------------
29,184
-------------
INSURANCE (8.4%)
80,000 American Heritage Life 1,560
160,000 Gryphon Holdings 2,220
120,100 Guaranty National 2,072
68,000 Harleysville Group 1,700
190,800 Mid-South Insurance 2,123
40,000 Orion Capital 1,420
-------------
11,095
-------------
METALS (6.9%)
75,000 AK Steel Holding 1,950
115,000 Alumax Inc. 3,292
32,000 Cleveland-Cliffs 1,256
135,500 Kentucky Electric Steel 1,253
115,000 Steel of West Virginia 1,294
-------------
9,045
-------------
OFFICE EQUIPMENT (3.2%)
174,400 DH Technology 4,229
-------------
PAPER & FOREST PRODUCTS (0.8%)
51,500 Caraustar Industries 978
-------------
PUBLISHING & BROADCASTING (6.1%)
90,000 Central Newspapers 2,419
60,000 Houghton Mifflin 2,580
70,000 McClatchy Newspapers 1,654
41,250 Pulitzer Publishing 1,392
-------------
8,045
-------------
RETAILING (3.2%)
135,000 Carr-Gottstein Foods 861
36,000 Fred Meyer 1,147
59,500 Schultz Sav-O Stores 1,346
<CAPTION>
Market
Number Value(1)
of (000's
Shares omitted)
- - -------- -------------
<C> <S> <C>
28,800 Tiffany & Co. $ 907
-------------
4,261
-------------
TEXTILES & APPAREL (1.9%)
72,950 Kellwood Co. 1,286
36,000 St. John Knits 1,210
-------------
2,496
-------------
TRANSPORTATION, SHIPPING &
FREIGHT (5.7%)
90,250 Air Express International 1,895
120,000 Harmon Industries 2,145
67,500 Harper Group 1,131
240,000 Maritrans Inc. 1,290
60,000 Old Dominion Freight Line 1,065
-------------
7,526
-------------
TOTAL COMMON STOCKS (COST $115,950) 130,927
-------------
<CAPTION>
Principal
Amount
- - --------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (0.3%)
$400,000 U.S. Treasury Bills, 5.21%, due 3/2/95
(COST $400) 400(2)
-------------
SHORT - TERM CORPORATE NOTES (0.4%)
$600,000 General Electric Capital Corp., 5.75%,
due 3/1/95 (COST $600) 600(2)
-------------
TOTAL INVESTMENTS (100.1%) (COST
$116,950) 131,927(3)
Liabilities, less cash, receivables and
other assets [(0.1%)] (169)
-------------
TOTAL NET ASSETS (100.0%) $ 131,758
-------------
</TABLE>
35
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- - ----------------------------------------------------------------------
Guardian Portfolio
<TABLE>
<CAPTION>
TOP TEN HOLDINGS
- - ----------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. CITICORP 2.3 %
2. Texas Instruments 2.1 %
3. AT&T 2.0 %
4. Federal National Mortgage Association 2.0 %
5. Chrysler Corp. 1.8 %
6. Micron Technology 1.8 %
7. Wells Fargo 1.7 %
8. Capital Cities/ABC 1.6 %
9. Foundation Health 1.5 %
10. Tenneco Inc. 1.4 %
</TABLE>
<TABLE>
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ -----------
<C> <S> <C>
COMMON STOCKS (94.5%)
AEROSPACE (0.7%)
400,000 Boeing Co. $ 18,450
-----------
AUTOMOTIVE (4.0%)
1,200,000 Chrysler Corp. 52,200
900,000 Ford Motor 23,512
860,000 General Motors 36,658
-----------
112,370
-----------
BANKING (9.5%)
952,600 Bank of Boston 28,697
1,435,000 CITICORP 64,575
494,000 First Fidelity Bancorporation 24,947
252,000 First Tennessee National 10,458
1,100,500 MBNA Corp. 29,026
620,000 NationsBank Corp. 30,922
880,000 Signet Banking 32,010
307,000 Wells Fargo 49,312
-----------
269,947
-----------
CONSUMER GOODS & SERVICES (4.1%)
213,300 Anheuser Busch 12,025
210,000 Colgate-Palmolive 13,545
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ -----------
<C> <S> <C>
1,082,200 Fruit of the Loom $ 25,296
590,000 Kellwood Co. 10,399
437,500 Mattel Inc. 9,789
318,000 Nike, Inc. 22,856
2,200,000 Owens-Illinois 23,100
-----------
117,010
-----------
DRUGS (3.8%)
420,000 Abbott Laboratories 14,910
445,000 Johnson & Johnson 25,254
325,000 Pfizer, Inc. 26,894
270,000 Schering-Plough 21,161
475,000 Zeneca Group ADR 19,653
-----------
107,872
-----------
FINANCIAL SERVICES (11.8%)
208,080 Alleghany Corp. 32,825
2,000,000 Countrywide Credit Industries 32,500
849,600 Dean Witter, Discover 34,303
670,000 Federal Home Loan Mortgage 38,860
723,000 Federal National Mortgage Association 55,761
836,000 First USA 30,827
764,800 MGIC Investment 29,158
835,000 Merrill Lynch 34,235
350,000 Reuters Holdings ADR 14,831
510,000 Security Capital Industrial Trust 8,542
1,040,000 Spieker Properties 20,800
-----------
332,642
-----------
FOREST PRODUCTS & PAPER (5.0%)
390,000 Caraustar Industries 7,410
425,000 Louisiana Pacific 12,006
450,000 Mead Corp. 24,637
676,300 Rayonier Inc. 20,289
425,000 Riverwood International 7,066
450,000 Temple-Inland 21,994
</TABLE>
36
<PAGE>
February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
Guardian Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ -----------
<C> <S> <C>
420,000 Weyerhaeuser Corp. $ 17,115
561,500 Willamette Industries 30,181
-----------
140,698
-----------
HEALTH CARE (1.9%)
1,395,000 Foundation Health 41,676
400,000 Wellpoint Health Networks 13,150
-----------
54,826
-----------
HEAVY INDUSTRY (3.9%)
40,000 Asea AB ADR 3,000
11,830 Asea Brown Boveri (Ordinary Shares) 10,333
1,029,000 Coltec Industries 17,622
700,000 Rockwell International 26,950
872,600 Tenneco Inc. 39,703
370,000 Varity Corp. 13,505
-----------
111,113
-----------
INDUSTRIAL GOODS & SERVICES (1.4%)
1,010,200 American Standard 20,709
515,000 Goodyear Tire & Rubber 18,991
-----------
39,700
-----------
INSURANCE (5.8%)
340,000 American International Group 35,275
345,000 Chubb Corp. 27,126
235,000 General Re 30,609
763,000 National Re 23,176
263,500 Transatlantic Holdings 15,151
860,000 Travelers Inc. 33,432
-----------
164,769
-----------
MEDIA & ENTERTAINMENT (10.1%)
435,000 A.H. Belo 24,523
500,000 Capital Cities/ABC 44,250
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ -----------
<C> <S> <C>
35,000 Comcast Corp. Class A $ 560
2,190,000 Comcast Corp. Class A Special 34,492
401,700 R.R. Donnelley 13,758
400,000 Gannett Co. 22,000
430,000 Gaylord Entertainment 11,288
236,000 Grupo Televisa, S.A. de C.V. GDS 3,894
820,000 Harcourt General 30,443
488,400 Jones Intercable Inc. Class A 7,906
194,800 Omnicom Group 10,349
221,900 Tele-Communications, Inc. Class A 5,048
727,600 Times Mirror 13,461
775,000 Time Warner 29,934
515,000 United International Holdings 8,111
810,100 Vodafone Group ADR 24,708
-----------
284,725
-----------
OIL & GAS (5.9%)
253,820 British Petroleum ADS 19,417
350,000 Kerr-McGee 17,631
295,400 MAPCO Inc. 16,136
620,500 Norsk Hydro ADS 23,424
900,000 Parker & Parsley Petroleum 16,425
750,000 Seagull Energy 12,656
650,000 Vastar Resources 16,819
458,500 Western Atlas 18,913
990,000 YPF Sociedad Anonima ADS 18,810
565,500 Zeigler Coal Holding 6,079
-----------
166,310
-----------
</TABLE>
37
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- - ----------------------------------------------------------------------
Guardian Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ -----------
<C> <S> <C>
RETAIL (2.5%)
1,505,000 Fingerhut Cos. $ 24,644
105,000 Gap Inc. 3,413
1,450,000 Limited, Inc. 25,375
500,000 May Department Stores 18,250
-----------
71,682
-----------
STEEL (1.2%)
360,000 AK Steel Holding 9,360
762,000 USX-U.S. Steel 25,337
-----------
34,697
-----------
TECHNOLOGY (13.9%)
700,000 Applied Materials 32,287
700,000 Arrow Electronics 29,050
460,000 Avnet, Inc. 17,825
475,000 Bay Networks 14,903
626,000 Compaq Computer 21,597
193,500 Hewlett-Packard 22,253
600,000 Honeywell Inc. 21,825
475,000 Intel Corp. 37,881
800,000 Micron Technology 49,600
175,000 Microsoft Corp. 11,025
1,311,500 National Semiconductor 22,132
180,000 Perkin-Elmer 5,152
1,000,000 Sequent Computer Systems 17,125
788,500 Stratus Computer 20,797
739,000 Texas Instruments 58,196
100,000 Xerox Corp. 11,088
-----------
392,736
-----------
TELEPHONE UTILITIES (2.5%)
1,110,000 AT&T 57,443
615,000 MCI Communications 12,377
-----------
69,820
-----------
TRANSPORTATION (3.8%)
1,000,000 Canadian Pacific 14,000
800,000 Chicago & North Western 20,000
500,000 Conrail Inc. 27,625
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ -----------
<C> <S> <C>
328,000 Delta Air Lines $ 19,024
500,000 Union Pacific 26,125
-----------
106,774
-----------
MISCELLANEOUS (2.7%)
625,000 Cyprus Amax Minerals 16,875
835,000 Fleetwood Enterprises 18,266
360,000 Minnesota Mining & Manufacturing 19,710
790,000 WMX Technologies 20,836
-----------
75,687
-----------
TOTAL COMMON STOCKS (COST $2,179,128) 2,671,828
-----------
PREFERRED STOCKS (0.7%)
250,000 FHP International, 5% 6,219
250,000 Philippine Long Distance Cv., 7%, GDS 13,750
-----------
TOTAL PREFERRED STOCKS (COST $18,149) 19,969
-----------
<CAPTION>
Principal
Amount
- - ------------
<C> <S> <C>
CONVERTIBLE BONDS (0.7%)
$8,750,000 AMR Corp., Cv. Deb., 6.125%, due 11/1/24 7,897
7,560,000 IntelCom Group, Cv. Sub. Notes, 8.00%,
due 9/17/98 6,908(4)
5,649,000 Time Warner, Sub. Cv. Deb., 8.75%, due
1/10/15 5,670
-----------
TOTAL CONVERTIBLE BONDS (COST $20,593) 20,475
-----------
</TABLE>
38
<PAGE>
February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
Guardian Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Value(1)
Principal (000's
Amount omitted)
- - ------------ -----------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (4.3%)
$106,450,000 U.S. Treasury Bills, 5.175% - 6.285%,
due 3/2/95 - 7/27/95 $ 104,438
15,000,000 U.S. Treasury Notes, 8.00%, due 5/15/01 15,628
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS (COST
$119,233) 120,066
-----------
<CAPTION>
Market
Value(1)
(000's
omitted)
-----------
<C> <S> <C>
TOTAL INVESTMENTS (100.2%) (COST
$2,337,103) $2,832,338(3)
Liabilities, less cash, receivables and
other assets [(0.2%)] (5,492)
-----------
TOTAL NET ASSETS (100.0%) $2,826,846
-----------
</TABLE>
39
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- - ----------------------------------------------------------------------
Manhattan Portfolio
<TABLE>
<CAPTION>
TOP TEN HOLDINGS
- - ----------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. Promus Cos. 3.5 %
2. Wells Fargo 3.0 %
3. CITICORP 2.4 %
4. Texas Instruments 2.3 %
5. GTECH Holdings 2.2 %
6. CUC International 2.0 %
7. Industrie Natuzzi S.p.A. ADR 2.0 %
8. IHOP Corp. 2.0 %
9. Intel Corp. 2.0 %
10. General Nutrition 1.9 %
</TABLE>
<TABLE>
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ----------- ---------
<C> <S> <C>
COMMON STOCKS (100.1%)
BUSINESS SERVICES (1.9%)
82,500 Staples Inc. $ 2,001
250,000 Viking Office Products 7,500
---------
9,501
---------
CHEMICALS (1.0%)
114,000 Hercules Inc. 5,002
---------
COMMUNICATIONS (9.9%)
190,000 CIDCO Inc. 5,890
520,000 Comcast Corp. Class A Special 8,190
20,000 Mannesmann AG ADR 5,810
440,000 MCI Communications 8,855
400,000 Tele-Communications, Inc. Class A 9,100
155,000 Time Warner 5,987
195,000 Vodafone Group ADR 5,947
---------
49,779
---------
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ----------- ---------
<C> <S> <C>
CONSUMER GOODS & SERVICES (14.3%)
450,000 Authentic Fitness $ 6,694
288,000 CUC International 10,152
230,000 Fruit of the Loom 5,376
287,900 Industrie Natuzzi S.p.A. ADR 10,112
167,000 Jones Apparel Group 3,925
239,200 Luxottica Group S.p.A. ADR 9,299
255,000 Nine West 7,172
155,000 Philip Morris 9,416
465,000 Supercuts Inc. 4,418
220,000 Timberland Co. 5,362
---------
71,926
---------
DRUGS & HEALTH CARE (7.0%)
220,000 Caremark International 3,850
290,000 Coventry Corp. 7,830
270,000 Foundation Health 8,066
40,000 Humana Inc. 950
60,000 Pfizer, Inc. 4,965
110,000 United Healthcare 4,730
115,000 U.S. Healthcare 4,945
---------
35,336
---------
ENTERTAINMENT (12.0%)
358,000 Argosy Gaming 3,356
353,000 Circus Circus Enterprises 9,266
550,000 GTECH Holdings 10,931
235,000 Mirage Resorts 5,611
365,000 Players International 8,760
490,000 Promus Cos. 17,518
360,000 Showboat, Inc. 5,175
---------
60,617
---------
FINANCIAL SERVICES (17.1%)
140,000 Bankers Trust New York 8,838
341,250 Bear Stearns 6,398
210,000 Capital One Financial 3,833
265,000 CITICORP 11,925
165,000 Finova Group 5,527
225,000 First USA 8,297
</TABLE>
40
<PAGE>
February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
Manhattan Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ----------- ---------
<C> <S> <C>
345,000 MBNA Corp. $ 9,099
130,000 Morgan Stanley Group 8,759
220,000 Signet Banking 8,003
95,000 Wells Fargo 15,259
---------
85,938
---------
HOME BUILDERS (0.7%)
368,000 Schuler Homes 3,818
---------
INSURANCE (10.0%)
190,000 ACE Ltd. 4,703
75,000 American International Group 7,781
155,000 Delphi Financial Group 2,945
130,000 EXEL Ltd. 5,541
65,000 General Re 8,466
345,000 Life Partners Group 7,417
275,000 Sphere Drake Holdings 3,816
168,100 Transatlantic Holdings 9,666
---------
50,335
---------
RESTAURANTS (7.1%)
270,000 Au Bon Pain 4,117
327,000 Cheesecake Factory 5,723
425,000 HomeTown Buffet 4,675
373,000 IHOP Corp. 10,071
365,000 Sonic Corp. 8,760
404,000 Spaghetti Warehouse 2,323
---------
35,669
---------
RETAILING (7.8%)
355,000 Circuit City Stores 7,677
405,000 General Nutrition 9,720
87,000 Hennes & Mauritz-Foreign 5,129
305,000 Price/Costco 4,155
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ----------- ---------
<C> <S> <C>
175,000 Sports & Recreation $ 3,566
295,000 Tops Appliance City 1,438
130,000 Toys "R" Us 3,624
200,500 Waban Inc. 3,960
---------
39,269
---------
TECHNOLOGY (11.3%)
150,000 Compaq Computer 5,175
127,000 H & R Block 4,778
125,000 Intel Corp. 9,969
150,000 Micron Technology 9,300
160,000 Motorola, Inc. 9,200
7,600 SAP AG 6,904
149,500 Texas Instruments 11,773
---------
57,099
---------
TOTAL COMMON STOCKS (COST $455,942) 504,289
---------
<CAPTION>
Principal
Amount
- - -----------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (3.4%)
$17,125,000 U.S. Treasury Bills, 5.67% & 5.775%, due
5/18/95 & 6/15/95 (COST $16,906) 16,907
---------
TOTAL INVESTMENTS (103.5%) (COST
$472,848) 521,196(3)
Liabilities, less receivables and other
assets [(3.5%)] (17,462)
---------
TOTAL NET ASSETS (100.0%) $503,734
---------
</TABLE>
41
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- - ----------------------------------------------------------------------
Partners Portfolio
<TABLE>
<CAPTION>
TOP TEN HOLDINGS
- - ----------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. Progressive Corp. 2.9 %
2. Time Warner 2.6 %
3. EXEL Ltd. 2.6 %
4. Comcast Corp. Class A Special 2.4 %
5. Texas Instruments 2.4 %
6. Revco D.S. 2.4 %
7. Mirage Resorts 2.4 %
8. Georgia-Pacific 2.3 %
9. Mannesmann AG ADR 2.2 %
10. MCI Communications 2.1 %
</TABLE>
<TABLE>
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ ------------
<C> <S> <C>
COMMON STOCKS (94.9%)
AUTOMOBILE MANUFACTURING (1.8%)
550,000 Chrysler Corp. $ 23,925
------------
BANKING & FINANCIAL SERVICES (7.4%)
325,000 BankAmerica Corp. 15,641
200,000 Capital One Financial 3,650
80,000 CITICORP 3,600
1,020,000 Countrywide Credit Industries 16,575
345,500 First USA 12,740
315,000 Green Tree Financial 12,049
485,000 MBNA Corp. 12,792
480,600 Salomon Inc. 17,302
100,000 Signet Banking 3,637
------------
97,986
------------
BUILDING, CONSTRUCTION AND
REFURNISHING (3.8%)
662,000 Lennar Corp. 11,254
900,000 Shaw Industries 14,062
1,025,000 USG Corp. 24,600
------------
49,916
------------
CHEMICALS (0.7%)
275,000 Potash Corp. of Saskatchewan 9,831
------------
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ ------------
<C> <S> <C>
COMMUNICATIONS (3.9%)
1,400,000 MCI Communications $ 28,175
400,000 Southern New England
Telecommunications 13,250
340,000 Vodafone Group ADR 10,370
------------
51,795
------------
DIVERSIFIED (4.1%)
125,000 Honeywell Inc. 4,547
99,700 Mannesmann AG ADR 28,963
258,100 Monsanto Co. 20,454
------------
53,964
------------
DRUGS (0.8%)
275,000 McKesson Corp. 10,141
------------
ELECTRONICS (1.3%)
380,000 Loral Corp. 15,532
50,000 Raychem Corp. 2,019
------------
17,551
------------
ENTERTAINMENT (8.4%)
650,000 King World Productions 23,156
1,300,000 Mirage Resorts 31,038
598,500 Royal Caribbean Cruises 15,262
900,000 Time Warner 34,762
694,000 Videotron Group 6,287
------------
110,505
------------
FOOD & DRUG STORES (2.4%)
1,693,000 Revco D.S. 31,109
------------
FOOD & TOBACCO (2.2%)
510,000 American Brands 19,061
1,841,400 RJR Nabisco Holdings 10,358
------------
29,419
------------
HEALTH CARE (5.4%)
966,700 Alza Corp. 21,992
550,000 Biogen, Inc. 22,688
310,100 Charter Medical 5,698
</TABLE>
42
<PAGE>
February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
Partners Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ ------------
<C> <S> <C>
565,000 Healthtrust, Inc. $ 20,481
------------
70,859
------------
INDUSTRIAL GOODS & SERVICES (7.1%)
612,500 AK Steel Holding 15,925
620,000 Goodyear Tire & Rubber 22,862
300,000 Hercules Inc. 13,163
1,724,500 LTV Corp. 26,514
1,400,000 Owens-Illinois 14,700
------------
93,164
------------
INSURANCE (10.9%)
850,000 Equitable Cos. 19,019
807,000 EXEL Ltd. 34,398
590,600 Horace Mann Educators 14,174
624,875 Orion Capital 22,183
980,000 Progressive Corp. 38,098
273,000 Transatlantic Holdings 15,698
------------
143,570
------------
MEDIA (2.6%)
444,700 American Media 3,224
2,000,000 Comcast Corp. Class A Special 31,500
------------
34,724
------------
OIL & GAS (7.3%)
275,000 Amerada Hess 13,475
425,000 Apache Corp. 10,625
413,200 Cabot Corp. 14,049
480,000 Noble Affiliates 12,240
351,600 Pogo Producing 6,505
420,000 Tejas Gas 18,060
700,000 Triton Energy 21,787
------------
96,741
------------
PAPER & FOREST PRODUCTS (4.1%)
50,000 Boise Cascade 1,606
400,000 Georgia-Pacific 29,950
650,000 Louisiana Pacific 18,362
210,000 Stone Container 4,909
------------
54,827
------------
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ ------------
<C> <S> <C>
PUBLISHING & BROADCASTING (0.5%)
113,900 Gannett Co. $ 6,265
------------
RAILROADS (2.2%)
225,000 Burlington Northern 12,600
650,000 Chicago & North Western 16,250
------------
28,850
------------
REAL ESTATE (1.6%)
1,881,200 Host Marriott 20,693
------------
RETAILING & APPAREL (9.3%)
640,000 Dillard Department Stores 17,600
1,015,000 Fruit of the Loom 23,726
524,200 Nine West 14,743
1,960,000 Price/Costco 26,705
350,000 Sears, Roebuck 17,237
45,000 TJX Cos. 608
800,000 Toys "R" Us 22,300
------------
122,919
------------
TECHNOLOGY (6.4%)
300,000 Intel Corp. 23,925
836,600 Komag, Inc. 21,124
550,000 Quantum Corp. 8,113
400,000 Texas Instruments 31,500
------------
84,662
------------
TRANSPORTATION (0.7%)
375,000 Airborne Freight 8,953
317,420 Consorcio G Grupo Dina S.A., Ser. L, ADR 754
------------
9,707
------------
TOTAL COMMON STOCKS (COST $1,171,854) 1,253,123
------------
PREFERRED STOCKS (1.3%)
3,000,000 RJR Nabisco, Ser. C, Dep. Shares (COST
$20,142) 17,625
------------
</TABLE>
43
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
Partners Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Value(1)
Number of (000's
Shares omitted)
- - ------------ ------------
<C> <S> <C>
WARRANTS (0.0%)
180,000 American Media (Warrants expire 5/1/97) $ 62
------------
<CAPTION>
Number of
Units
- - ------------
<C> <S> <C>
UNITS (0.0%)
34,000 Therapeutic Discovery (Each Unit
consists of 1 share of Therapeutic
Discovery and 1 Alza Corp. Warrant)
(COST $206) 183
------------
<CAPTION>
Principal
Amount
- - ------------
<C> <S> <C>
CORPORATE BONDS (0.4%)
$4,500,000 Apache Corp., Cv. Sub. Deb., 6.00%, due
1/15/02 4,680(4)
1,984,000 Consorcio G Grupo Dina, Cv. Sub. Deb.,
8.00%, due 8/8/04 585
------------
TOTAL CORPORATE BONDS (COST $6,330) 5,265
------------
<CAPTION>
Market
Value(1)
Principal (000's
Amount omitted)
- - ------------ ------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (3.5%)
$46,250,000 U.S. Treasury Bills, 5.73% - 6.05%, due
3/9/95 - 6/15/95 (COST $45,587) $ 45,601
------------
SHORT - TERM CORPORATE NOTES (0.1%)
$ 900,000 General Electric Capital Corp., 5.75%,
due 3/1/95 (COST $900) 900(2)
------------
TOTAL INVESTMENTS (100.2%) (COST
$1,245,019) 1,322,759(3)
Liabilities, less cash, receivables and
other assets [(0.2%)] (2,624)
------------
TOTAL NET ASSETS (100.0%) $ 1,320,135
------------
</TABLE>
44
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
Equity Managers Trust
1) Investment securities of each 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 Focus
Portfolio for Federal income tax purposes was $518,099,000. Gross unrealized
appreciation of investments was $170,000,000 and gross unrealized
depreciation of investments was $10,696,000, resulting in net unrealized
appreciation of $159,304,000, based on cost for Federal income tax purposes.
At February 28, 1995, the cost of investments for Neuberger&Berman Genesis
Portfolio for Federal income tax purposes was $116,955,000. Gross unrealized
appreciation of investments was $18,857,000 and gross unrealized depreciation
of investments was $3,885,000, resulting in net unrealized appreciation of
$14,972,000, based on cost for Federal income tax purposes.
At February 28, 1995, the cost of investments for Neuberger&Berman Guardian
Portfolio for Federal income tax purposes was $2,337,103,000. Gross
unrealized appreciation of investments was $548,066,000 and gross unrealized
depreciation of investments was $52,831,000, resulting in net unrealized
appreciation of $495,235,000, based on cost for Federal income tax purposes.
At February 28, 1995, the cost of investments for Neuberger&Berman Manhattan
Portfolio for Federal income tax purposes was $472,848,000. Gross unrealized
appreciation of investments was $89,566,000 and gross unrealized depreciation
of investments was $41,218,000, resulting in net unrealized appreciation of
$48,348,000, based on cost for Federal income tax purposes.
At February 28, 1995, the cost of investments for Neuberger&Berman Partners
Portfolio for Federal income tax purposes was $1,246,483,000. Gross
unrealized appreciation of investments was $120,689,000 and gross unrealized
depreciation of investments was $44,413,000, resulting in net unrealized
appreciation of $76,276,000, based on cost for Federal income tax purposes.
4) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At February 28,
1995, these securities amounted to $6,908,000 or 0.2% of net assets for
Neuberger&Berman Guardian Portfolio and $4,680,000 or 0.4% of net assets for
Neuberger&Berman Partners Portfolio.
SEE NOTES TO FINANCIAL STATEMENTS
45
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
- - ----------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
FOCUS GENESIS
(000'S OMITTED) PORTFOLIO PORTFOLIO
<S> <C> <C>
- - --------------------------------------------------------------------------
ASSETS
Investments in securities, at market value
(Note A) (Note 1) -- see Schedule of
Investments $ 677,403 $ 131,927
Cash 63 53
Deferred organization costs (Note A) 30 7
Dividends and interest receivable 991 67
Prepaid expenses and other assets 25 18
Receivable for securities sold 13,287 380
------------------------
691,799 132,452
------------------------
LIABILITIES
Payable for collateral on securities
loaned (Note A) -- --
Payable for securities purchased 18,289 578
Payable to investment manager (Note B) 264 84
Accrued expenses 60 32
------------------------
18,613 694
------------------------
NET ASSETS APPLICABLE TO INVESTORS'
BENEFICIAL INTERESTS $ 673,186 $ 131,758
------------------------
NET ASSETS consist of:
Paid-in capital $ 513,488 $ 116,781
Net unrealized appreciation in value of
investments 159,698 14,977
------------------------
NET ASSETS $ 673,186 $ 131,758
------------------------
Note 1: Cost of investments $ 517,705 $ 116,950
------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
February 28, 1995 (Unaudited)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GUARDIAN MANHATTAN PARTNERS
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C>
- - ----------------------------------------------
$ 2,832,338 $ 521,196 $ 1,322,759
17 -- 39
88 33 61
5,907 170 1,722
105 21 59
15,028 2,120 57,366
- - ----------------------------------------------
2,853,483 523,540 1,382,006
- - ----------------------------------------------
-- 16,902 11,680
25,541 2,597 49,604
970 207 499
126 100 88
- - ----------------------------------------------
26,637 19,806 61,871
- - ----------------------------------------------
$ 2,826,846 $ 503,734 $ 1,320,135
- - ----------------------------------------------
$ 2,331,611 $ 455,386 $ 1,242,395
495,235 48,348 77,740
- - ----------------------------------------------
$ 2,826,846 $ 503,734 $ 1,320,135
- - ----------------------------------------------
$ 2,337,103 $ 472,848 $ 1,245,019
- - ----------------------------------------------
</TABLE>
47
<PAGE>
STATEMENTS OF OPERATIONS
- - ----------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
FOCUS GENESIS
(000'S OMITTED) PORTFOLIO PORTFOLIO
<S> <C> <C>
- - -------------------------------------------------------------------------------------
INVESTMENT INCOME
Income:
Dividend income $ 4,875 $ 730
Interest income 204 48
--------------------------
Total income 5,079 778
--------------------------
Expenses:
Investment management fee (Note B) 1,628 557
Accounting fees 5 5
Amortization of deferred organization and initial
offering expenses (Note A) 4 1
Auditing fees 21 12
Custodian fees 80 41
Insurance expense 14 3
Legal fees 8 7
Trustees' fees and expenses 10 4
Miscellaneous -- 10
--------------------------
Total expenses 1,770 640
--------------------------
Investment income -- net 3,309 138
--------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments sold 16,655 2,266
Net realized gain on option contracts written (Note
A) 230 --
Change in net unrealized appreciation of investments (8,370) (1,161)
--------------------------
Net gain (loss) on investments 8,515 1,105
--------------------------
Net increase (decrease) in net assets resulting
from operations $ 11,824 $ 1,243
--------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
For the Six Months Ended February 28, 1995 (Unaudited)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GUARDIAN MANHATTAN PARTNERS
PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C>
- - ---------------------------------------
$ 23,337 $ 2,252 $ 8,483
4,048 54 1,444
- - ---------------------------------------
27,385 2,306 9,927
- - ---------------------------------------
5,828 1,307 3,187
5 5 5
13 5 9
24 24 21
230 75 134
54 11 30
13 8 8
35 9 19
1 -- --
- - ---------------------------------------
6,203 1,444 3,413
- - ---------------------------------------
21,182 862 6,514
- - ---------------------------------------
18,889 24,619 57,680
365 -- --
(13,009) (22,538) (71,176)
- - ---------------------------------------
6,245 2,081 (13,496)
- - ---------------------------------------
$ 27,427 $ 2,943 $ (6,982)
- - ---------------------------------------
</TABLE>
49
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- - ----------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
FOCUS PORTFOLIO GENESIS PORTFOLIO
Six Months Six Months
Ended Ended
February 28, Year Ended February 28, Year Ended
1995 August 31, 1995 August 31,
(000'S OMITTED) (UNAUDITED) 1994 (UNAUDITED) 1994
- - -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Investment income -- net $ 3,309 $ 6,947 $ 138 $ 229
Net realized gain on investments
sold and option contracts written 16,885 38,653 2,266 5,489
Change in net unrealized
appreciation of investments (8,370) 14,924 (1,161) 856
-------------------------------------------------------------
Net increase (decrease) in net
assets resulting from operations 11,824 60,524 1,243 6,574
-------------------------------------------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 44,171 74,559 28,667 38,613
Reductions (27,820) (64,027) (36,721) (25,172)
-------------------------------------------------------------
Net increase (decrease) in net
assets resulting from transactions
in investors' beneficial interests 16,351 10,532 (8,054) 13,441
-------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS 28,175 71,056 (6,811) 20,015
NET ASSETS:
Beginning of period 645,011 573,955 138,569 118,554
-------------------------------------------------------------
End of period $ 673,186 $ 645,011 $ 131,758 $ 138,569
-------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
50
<PAGE>
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GUARDIAN PORTFOLIO MANHATTAN PORTFOLIO PARTNERS PORTFOLIO
Six Months Six Months Six Months
Ended Ended Ended
February 28, Year Ended February 28, Year Ended February 28, Year Ended
1995 August 31, 1995 August 31, 1995 August 31,
(UNAUDITED) 1994 (UNAUDITED) 1994 (UNAUDITED) 1994
- - ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 21,182 $ 34,374 $ 862 $ 2,739 $ 6,514 $ 9,370
19,254 26,444 24,619 25,341 57,680 87,647
(13,009) 136,195 (22,538) (9,119) (71,176) (24,098)
- - ---------------------------------------------------------------------------------------------
27,427 197,013 2,943 18,961 (6,982) 72,919
- - ---------------------------------------------------------------------------------------------
361,016 643,507 26,555 64,429 31,171 145,614
(41,933) (137,817) (47,499) (98,489) (44,338) (60,347)
- - ---------------------------------------------------------------------------------------------
319,083 505,690 (20,944) (34,060) (13,167) 85,267
- - ---------------------------------------------------------------------------------------------
346,510 702,703 (18,001) (15,099) (20,149) 158,186
2,480,336 1,777,633 521,735 536,834 1,340,284 1,182,098
- - ---------------------------------------------------------------------------------------------
$2,826,846 $2,480,336 $ 503,734 $ 521,735 $1,320,135 $1,340,284
- - ---------------------------------------------------------------------------------------------
</TABLE>
51
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 28, 1995 (Unaudited)
- - ----------------------------------------------------------------------
Equity Managers Trust
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger&Berman Focus Portfolio ("Focus" formerly Neuberger&Berman
Selected Sectors Portfolio), Neuberger&Berman Genesis Portfolio ("Genesis"),
Neuberger&Berman Guardian Portfolio ("Guardian"), Neuberger&Berman Manhattan
Portfolio ("Manhattan"), and Neuberger& Berman Partners Portfolio
("Partners") (collectively, the "Portfolios") are 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. The
trustees of Managers Trust changed the name of Neuberger& Berman Selected
Sectors Portfolio to Neuberger&Berman Focus Portfolio, effective January 1,
1995. Other regulated investment companies sponsored by Neuberger&Berman
Management Incorporated ("Management"), whose financial statements are not
presented herein, also invest in these and another portfolio of Managers
Trust.
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 Portfolios' 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 each Portfolio in connection with
its organization are being amortized by each Portfolio on a straight-line
basis over a five-year period. At February 28, 1995, the unamortized balance
of such expenses amounted to $29,884, $6,586, $87,680, $33,370, and $60,782,
for Focus, Genesis, Guardian, Manhattan, and Partners, respectively.
52
<PAGE>
6) EXPENSE ALLOCATION: The Portfolios bear 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.
7) CALL OPTIONS: Premiums received by each Portfolio upon writing a covered call
option are recorded in the liability section of each Portfolio's Statement of
Assets and Liabilities and are subsequently adjusted to the current market
value. When an option expires, is exercised or is closed, the Portfolio
realizes a gain or loss and the liability is eliminated. A Portfolio
continues to bear the risk of a decline in the price of the security during
the period, although any potential loss during the period would be reduced by
the amount of the option premium received. All securities covering
outstanding options are held in escrow by the custodian bank.
Summary of Option Transactions for the Six Months Ended February 28, 1995:
<TABLE>
<CAPTION>
VALUE
WHEN
FOCUS NUMBER WRITTEN
<S> <C> <C>
- - ----------------------------------------------------------------------------------------
CONTRACTS OUTSTANDING 8/31/94 1,300 $ 229,822
CONTRACTS WRITTEN 0 0
CONTRACTS EXPIRED (1,300) (229,822)
CONTRACTS EXERCISED 0 0
CONTRACTS CLOSED 0 0
----------------------
CONTRACTS OUTSTANDING 2/28/95 0 $ 0
----------------------
<CAPTION>
VALUE
WHEN
GUARDIAN NUMBER WRITTEN
<S> <C> <C>
- - ----------------------------------------------------------------------------------------
CONTRACTS OUTSTANDING 8/31/94 0 $ 0
CONTRACTS WRITTEN 3,250 413,673
CONTRACTS EXPIRED (1,500) (145,495)
CONTRACTS EXERCISED 0 0
CONTRACTS CLOSED (1,750) (268,178)
----------------------
CONTRACTS OUTSTANDING 2/28/95 0 $ 0
----------------------
</TABLE>
8) SECURITY LENDING: Portfolio securities loans involve certain risks in the
event a borrower should fail financially, including delays or inability to
recover the lent securities or foreclose against the collateral. The
investment manager, under the supervision of Managers Trust's Board of
Trustees, monitors the creditworthiness of the parties to whom the Portfolios
make security loans. The Portfolios will not lend securities on which covered
call options have been written, or lend securities on terms which would
prevent each of their investors from qualifying as a regulated investment
company. Portfolio securities loans to Neuberger&Berman, L.P. ("Neuberger"),
the Portfolios' principal broker, are made in accordance with an
53
<PAGE>
exemptive order issued by the Securities and Exchange Commission under the
1940 Act. The Portfolios receive cash as collateral against the lent
securities, which must be maintained at not less than 100% of the market
value of the lent securities during the period of the loan. The Portfolios
receive income earned on the lent securities and a portion of the income
earned on the cash collateral. During the six months ended February 28, 1995,
Focus, Guardian, Manhattan, and Partners lent securities to Neuberger. At
February 28, 1995, cash collateral received by Manhattan and Partners was
equal to or in excess of 100% of the market value of the loaned securities.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
Each Portfolio retains Management as its investment manager under a
Management Agreement ("Agreement") dated as of August 2, 1993. For such
investment management services, each Portfolio (except Genesis) pays Management
a fee at the annual rate of 0.55% of the first $250 million of that 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. Genesis pays
Management a fee for investment management services at the annual rate of 0.85%
of the first $250 million of that Portfolio's average daily net assets, 0.80% of
the next $250 million, 0.75% of the next $250 million, 0.70% of the next $250
million, and 0.65% of average daily net assets in excess of $1 billion.
Management has voluntarily agreed to waive a portion of the management fee borne
directly by Genesis to reduce the fee by 0.10% per annum of average daily net
assets, effective May 1, 1995.
All of the capital stock of Management is owned by individuals who are also
general partners of Neuberger, a member firm of The New York Stock Exchange and
the sub-adviser to each 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 and option contracts written) as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
<S> <C> <C>
- - --------------------------------------------------------------
FOCUS $140,872,584 $129,864,407
GENESIS 26,095,714 31,707,827
GUARDIAN 677,618,367 307,721,965
MANHATTAN 89,803,543 108,478,869
PARTNERS 574,374,684 569,085,520
</TABLE>
54
<PAGE>
During the six months ended February 28, 1995, there were brokerage
commissions on securities paid to Neuberger and other brokers as follows:
<TABLE>
<CAPTION>
OTHER
NEUBERGER BROKERS TOTAL
<S> <C> <C> <C>
- - ----------------------------------------------------------------------------------------
FOCUS $ 294,391 $ 129,654 $ 424,045
GENESIS 84,300 41,898 126,198
GUARDIAN 1,127,610 364,297 1,491,907
MANHATTAN 193,703 42,350 236,053
PARTNERS 1,527,438 573,106 2,100,544
</TABLE>
In addition, Neuberger's share of the total interest income earned for the
six months ended February 28, 1995, from the collateralization of securities
loaned to or through Neuberger was $17,731, $90,036, $45,612, and $8,517, for
Focus, Guardian, Manhattan, and Partners, respectively.
NOTE D -- LINE OF CREDIT:
At February 28, 1995, Genesis had an unsecured $10,000,000 bank line of
credit with Morgan Guaranty Trust Company of New York ("Morgan") to be used only
as a temporary measure for extraordinary or emergency purposes. Borrowings under
this agreement bear interest at a rate based on the Morgan Bid Rate Program. For
this line of credit, Genesis has been assessed a facility fee of .2% of the
available line of credit. No compensating balances are required. There were no
loans outstanding pursuant to this line of credit at February 28, 1995, nor has
Genesis utilized the line of credit at anytime to date.
NOTE E -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of each Portfolio without audit by independent accountants/auditors.
Annual reports contain audited financial statements.
55
<PAGE>
FINANCIAL HIGHLIGHTS
- - --------------------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
FOCUS GENESIS
PORTFOLIO PORTFOLIO
Six Months Period from Six Months Period from
Ended August 2, Ended Year August 2,
February 28, Year Ended 1993 to February 28, Ended 1993 to
1995 August 31, August 31, 1995 August 31, August 31,
(UNAUDITED) 1994 1993 (UNAUDITED) 1994 1993
- - ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses .58%(1) .58% .58%(1) .98%(1) .98% 1.07%(1)
--------------------------------------------------------------------------------
Investment income -- net 1.08%(1) 1.16% 1.46%(1) .21%(1) .18% .37%(1)
--------------------------------------------------------------------------------
Portfolio Turnover Rate 21% 52% 4% 20% 63% 3%
--------------------------------------------------------------------------------
Net Assets, End of Period (in
millions) $ 673.2 $ 645.0 $ 574.0 $ 131.8 $ 138.6 $ 118.6
--------------------------------------------------------------------------------
</TABLE>
1) Annualized.
56
<PAGE>
FINANCIAL HIGHLIGHTS
- - --------------------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
GUARDIAN MANHATTAN
PORTFOLIO PORTFOLIO
Six Months Period from Six Months Period from
Ended August 2, Ended Year August 2,
February Year Ended 1993 to February 28, Ended 1993 to
28, 1995 August 31, August 31, 1995 August 31, August 31,
(UNAUDITED) 1994 1993 (UNAUDITED) 1994 1993
- - --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses .49%(1) .50% .51%(1) .59%(1) .59% .59%(1)
------------------------------------------------------------------------------
Investment income -- net 1.69%(1) 1.66% 2.45%(1) .35%(1) .53% .55%(1)
------------------------------------------------------------------------------
Portfolio Turnover Rate 12% 24% 3% 18% 50% 3%
------------------------------------------------------------------------------
Net Assets, End of Period (in
millions) $ 2,826.8 $ 2,480.3 $ 1,777.6 $ 503.7 $ 521.7 $ 536.8
------------------------------------------------------------------------------
</TABLE>
1) Annualized.
57
<PAGE>
FINANCIAL HIGHLIGHTS
- - --------------------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
PARTNERS
PORTFOLIO
Six Months Period from
Ended August 2,
February Year Ended 1993 to
28, 1995 August 31, August 31,
(UNAUDITED) 1994 1993
<S> <C> <C> <C>
- - ---------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:
Expenses .53%(1) .54% .54%(1)
-------------------------------------
Investment income -- net 1.02%(1) .75% 1.19%(1)
-------------------------------------
Portfolio Turnover Rate 46% 75% 8%
-------------------------------------
Net Assets, End of Period (in millions) $ 1,320.1 $ 1,340.3 $ 1,182.1
-------------------------------------
</TABLE>
1) Annualized.
58
<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:
Neuberger&Berman Funds
Institutional Services
605 Third Avenue 2nd Floor
New York, NY 10158
LEGAL COUNSEL
Kirkpatrick & Lockhart
1800 M Street, NW
Washington, DC 20036-5891
Neuberger&Berman Management Inc., Neuberger&Berman Focus Trust, Neuberger&Berman
Genesis Trust, Neuberger&Berman Guardian Trust, Neuberger&Berman Manhattan
Trust, and Neuberger&Berman Partners Trust are service marks of Neuberger&Berman
Management Inc.
- - -C- 1995 Neuberger&Berman Management Inc.
59
<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
60
<PAGE>
Neuberger&Berman Management Inc.
605 Third Avenue 2nd Floor
New York, NY 10158-0006
Shareholder Services
800.877.9700
212.476.8848 Fax
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 Funds.
Shares are sold only through the currently effective prospectus, which
must precede or accompany this report.
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