<PAGE>
<PAGE>
ANNUAL REPORT
- --------------------------------------------------------------------------------
August 31, 1996
Neuberger&Berman
EQUITY TRUST -Registered Trademark-
Neuberger&Berman
NYCDC SOCIALLY RESPONSIVE TRUST
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
THE FUND
CHAIRMAN'S LETTER 4
PORTFOLIO MANAGER'S
COMMENTARY 6
GROWTH OF A DOLLAR
CHART 9
COMPARISON OF A
$10,000 INVESTMENT
FINANCIAL STATEMENTS 10
FINANCIAL HIGHLIGHTS 16
PER SHARE DATA
REPORT OF
INDEPENDENT
ACCOUNTANTS 18
THE PORTFOLIO
SCHEDULE OF
INVESTMENTS 19
TOP TEN EQUITY
HOLDINGS
FINANCIAL STATEMENTS 22
FINANCIAL HIGHLIGHTS 27
REPORT OF
INDEPENDENT
ACCOUNTANTS 28
DIRECTORY 29
OFFICERS AND
TRUSTEES 30
</TABLE>
3
<PAGE>
CHAIRMAN'S LETTER August 31, 1996
Dear Fellow Shareholder,
When we reported to you last year, the stock market was enjoying broad
gains -- across big companies and small, from one industry to another.
Late in 1995, however, the general bullishness started to wane. Cautious
investors feared a slowing economy and took flight to safety -- favoring
blue-chip stocks selling at high multiples.
Early in 1996, the fears of recession were eclipsed by fears of an overheating
economy. In February, the government reported much higher-than-expected growth
in employment. This created uncertainty in the markets, renewing speculation of
future interest rate hikes. In this volatile context, Wall Street sentiment
shifted toward fast-growing smaller companies.
Not for long, though. In July, when a number of high-tech companies reported
lower-than-expected quarterly earnings, the market got battered badly. Scores of
issues hit lows for the year, and the terrific gains earned just months earlier
were erased.
Fortunately, calm was restored in August. Economic reports indicated that
earlier anxieties about inflation were unwarranted, and as we are writing to you
today, the market appears to be reaching new highs once again.
In the following letters, our portfolio managers will explain why they have
outperformed or underperformed the market indices. In broad strokes, here is the
key explanation:
/ / In the last quarter of 1995, Wall Street favored high-multiple blue
chips -- stocks that few of our primarily value-oriented equity fund
managers hold. This underweighting adversely affected some of our funds'
performance.
Despite these temporary setbacks, we remain committed to our primarily
value-oriented investment approach. It's a strategy that has produced consistent
long-term results for almost half a century (though, of course, past performance
is no guarantee of future results).
In fact, it's heartening to us that even with the current volatility, investor
interest in our funds has continued to grow. On August 31,
4
<PAGE>
1995, our equity and income shareholders had entrusted us with $10.7 billion.
Only a year later, that amount has grown to $13.2 billion -- a 23.4% jump and
one of the biggest increases in our history.
We remain confident in the long-term performance of our mutual funds and thank
you for your continued support.
Sincerely,
/s/ Stanley Egener
Stanley Egener
Chairman of the Board
Neuberger&Berman Equity Trust
5
<PAGE>
PORTFOLIO MANAGER'S COMMENTARY
Neuberger&Berman
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
OBJECTIVE AND STRATEGY
Seeks long-term capital appreciation by investing primarily in stocks of
companies that meet both financial and social criteria. In particular, the
Trust follows a "value" investment approach, favoring well-managed
companies with low price-to-earnings multiples, and searches for companies
that demonstrate leadership in any of three areas: concern for the
environment, workplace diversity, and enlightened workplace practices.
Dear Fellow Shareholder,
In its second full year of operations, your Trust continued to perform well.
Its return of 21.27%, for the fiscal year ended, August 31, 1996, was a
particularly strong result in the context of the changing conditions met
throughout the year, and was ahead of the S&P "500" Stock Index at 18.70% (see
page 9 for a comparison of a $10,000 investment and average annual total returns
as of August 31, 1996).*
Throughout the 12 months ended August 31, 1996, the Trust continued to select
its stocks one at a time, on their individual merits and market fundamentals. As
a reminder, our work is done on a financial basis first, and if the company is
deemed attractive financially, we then put it through our social screens.
Although we have no bias toward any stock sector, we will discuss stocks by
sector here.
NATURAL GAS
Our Portfolio's performance was helped by the stocks of companies producing
natural gas -- a fuel that has comparatively low impact environmentally. Among
these, Louisiana Land & Exploration, an independent crude oil and gas production
company added to the Portfolio during the year at an apparently bargain price (4
times cash flow), was a stand-out.
6
<PAGE>
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust (Cont'd)
ENSERCH Corp., a large Dallas-based natural gas company, was purchased for its
capital gain potential. Here we were rewarded quickly when Texas Utilities
offered to buy the regulated part of the business and it was decided to spin off
the exploration company. After the merger, we will just keep the exploration
company in the portfolio.
TECHNOLOGY
This area was volatile during the period. We had excellent performance from
Intel Corp., but Digital Equipment declined due to fears of disappointing
earning results.
TELECOMMUNICATIONS, MEDIA AND CABLE
We have fairly large exposure in the converging telecommunications, cable and
media industries. Regulatory and competitive uncertainties have hindered stock
performance, but we still expect dynamic growth from this group. One new holding
this period is Viacom (listed as a consumer goods and services company), which
participates in the desirable programming area of the industry. On the social
side Viacom has an impressive array of family related benefits, giving full
support to their employees as they balance their work-life obligations.
CHEMICALS, INDUSTRIAL AND COMMERCIAL PRODUCTS
In the chemical area where we also have many commitments, the Trust benefited
from several corporate restructurings, such as Raychem. Raychem's margins
continue to improve, leading us to believe that we may still see earning
progress in the next couple of years. Raychem has supported its workers with an
in-house training center to help them find new jobs both within and outside the
company.
7
<PAGE>
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust (Cont'd)
We appreciate your continued confidence in Neuberger&Berman NYCDC Socially
Responsive Trust, and we look forward to keeping you informed about your fund.
Sincerely,
/s/ Janet Prindle
Janet Prindle
Portfolio Manager
The composition, industries and holdings of the Trust are subject to change.
NYCDC Socially Responsive Trust's portfolio is invested in a wide array of
stocks and no single holding makes up more than a small fraction of the
portfolio's total assets.
*The S&P "500" Index is an unmanaged index generally considered to be
representative of stock market activity. Please note that indices do not take
into account any fees and expenses of investing in the individual securities
that they track, and that individuals cannot invest directly in any index. Data
about the performance of this index are prepared or obtained by Neuberger&Berman
Management Inc. and include reinvestment of all dividends and capital gain
distributions. The Portfolio invests in many securities not included in the
above-described index.
8
<PAGE>
COMPARISON OF A $10,000 INVESTMENT
Neuberger&Berman August 31, 1996
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
<S> <C> <C>
NYCDC Socially Responsive Trust S&P "500"
1 Year +21.27% +18.70%
Life of Fund +16.99% +17.47%
NYCDC Socially Responsive Trust S&P "500"
3/14/1994 $10,000.00 $10,000.00
8/31/1994 $10,225.49 $10,344.62
1995 $12,162.93 $12,560.79
1996 $14,750.13 $14,909.15
</TABLE>
The inception date of Neuberger&Berman NYCDC Socially Responsive Trust is
3/14/94.
Neuberger&Berman Management Inc. has voluntarily undertaken to reimburse
NYCDC Socially Responsive Trust for its operating expenses and its pro rata
share of its Portfolio's operating expenses which, in the aggregate, exceed
0.60% per annum of NYCDC Socially Responsive Trust's average daily net assets.
This arrangement can be terminated upon 60 days' notice. Absent such
arrangement, the average annual total returns of the Trust would have been less.
*"Total Return" includes reinvestment of all income dividends and capital gain
distributions. Results represent past performance and do not indicate future
results. The value of an investment in the Trust and the return on the
investment both will fluctuate, and redemption proceeds may be higher or lower
than an investor's original cost.
The S&P "500" Index is an unmanaged index generally considered to be
representative of stock market activity. Please note that indices do not take
into account any fees and expenses of investing in the individual securities
that they track, and that individuals cannot invest directly in any index. Data
about the performance of this index are prepared or obtained by Neuberger&
Berman Management Inc. and include reinvestment of all dividends and capital
gain distributions. The Portfolio invests in many securities not included in the
above-described index.
9
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
<TABLE>
<CAPTION>
August 31,
(000'S OMITTED EXCEPT PER SHARE AMOUNT) 1996
-------------
<S> <C>
ASSETS
Investment in Portfolio, at value (Note A) $ 125,629
Receivable for Trust shares sold 32
Deferred organization costs (Note A) 24
Receivable from administrator -- net (Note
B) 7
-------------
125,692
-------------
LIABILITIES
Accrued expenses 42
Payable for Trust shares redeemed 14
-------------
56
-------------
NET ASSETS at value $ 125,636
-------------
NET ASSETS consist of:
Par value $ 9
Paid-in capital in excess of par value 94,558
Accumulated undistributed net investment
income 887
Accumulated net realized gains on investment 8,918
Net unrealized appreciation in value of
investment 21,264
-------------
NET ASSETS at value $ 125,636
-------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 8,712
-------------
NET ASSET VALUE, offering and redemption price per
share $14.42
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
<TABLE>
<CAPTION>
For the
Year
Ended
August 31,
(000'S OMITTED) 1996
-----------
<S> <C>
INVESTMENT INCOME
Investment income from Portfolio (Note A) $ 1,834
-----------
Expenses:
Administration fee (Note B) 55
Shareholder reports 47
Shareholder servicing agent fees 17
Legal fees 12
Custodian fees 10
Amortization of deferred organization and
initial offering expenses (Note A) 10
Auditing fees 6
Trustees' fees and expenses 6
Registration and filing fees 4
Miscellaneous 2
Expenses from Portfolio (Notes A & B) 716
-----------
Total expenses 885
Deduct -- expenses reimbursed by
administrator (Note B) (224 )
-----------
Total net expenses 661
-----------
Net investment income 1,173
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM
PORTFOLIO (NOTE A)
Net realized gain on investment securities 10,311
Change in net unrealized appreciation of
investment securities 8,073
-----------
Net gain on investments from Portfolio
(Note A) 18,384
-----------
Net increase in net assets resulting from
operations $ 19,557
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
<TABLE>
<CAPTION>
For the
Year Ended
August 31,
(000'S OMITTED) 1996 1995
--------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 1,173 $ 923
Net realized gain on investments
from Portfolio (Note A) 10,311 1,705
Change in net unrealized
appreciation of investments from
Portfolio (Note A) 8,073 11,139
--------------------------
Net increase in net assets resulting
from operations 19,557 13,767
--------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (895) (740)
Net realized gain on investments (2,312) --
--------------------------
Total distributions to shareholders (3,207) (740)
--------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 32,430 21,336
Proceeds from reinvestment of
dividends and distributions 3,206 740
Payments for shares redeemed (14,893) (15,146)
--------------------------
Net increase from Trust share
transactions 20,743 6,930
--------------------------
NET INCREASE IN NET ASSETS 37,093 19,957
NET ASSETS:
Beginning of year 88,543 68,586
--------------------------
End of year $ 125,636 $ 88,543
--------------------------
Accumulated undistributed net
investment income at end of year $ 887 $ 609
--------------------------
NUMBER OF TRUST SHARES:
Sold 2,332 1,994
Issued on reinvestment of dividends
and distributions 238 75
Redeemed (1,077) (1,424)
--------------------------
Net increase in shares outstanding 1,493 645
--------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman August 31, 1996
- ----------------------------------------------------------------------
Equity Trust
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger&Berman NYCDC Socially Responsive Trust (the "Fund")
is a separate operating series of Neuberger&Berman Equity Trust (the
"Trust"), a Delaware business trust organized pursuant to a Trust Instrument
dated May 6, 1993. The Trust is registered as a diversified, open-end
management investment company under the Investment Company Act of 1940, as
amended, and its shares are registered under the Securities Act of 1933, as
amended. The trustees of the Trust may establish additional series or classes
of shares without the approval of shareholders.
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
The Fund seeks to achieve its investment objective by investing all of its
net investable assets in the Neuberger&Berman Socially Responsive Portfolio
of Equity Managers Trust (the "Portfolio") having the same investment
objective and policies as the Fund. The value of the Fund's investment in the
Portfolio reflects the Fund's proportionate interest in the net assets of the
Portfolio (79.27% at August 31, 1996). The Fund was created as an investment
vehicle for participants in the Deferred Compensation Plan of the City of New
York and Related Agencies and Instrumentalities. The performance of the Fund
is directly affected by the performance of the Portfolio. The financial
statements of the Portfolio, including the Schedule of Investments, are
included elsewhere in this report and should be read in conjunction with the
Fund's financial statements.
2) PORTFOLIO VALUATION: The Fund records its investment in the Portfolio at
value. Investment securities held by the Portfolio of Equity Managers Trust
are valued by Equity Managers Trust as indicated in the notes following the
Portfolio's Schedule of Investments.
3) FEDERAL INCOME TAXES: Each series of the Trust is treated as a separate
entity for Federal income tax purposes. It is the policy of the Fund to
continue to qualify as a regulated investment company by complying with the
provisions available to certain investment companies, as defined in
applicable sections of the Internal Revenue Code, and to make distributions
of investment company taxable income and net capital gains (after reduction
for any amounts available for Federal income tax purposes as capital loss
carryforwards) sufficient to relieve it from all, or substantially all,
Federal income taxes. Accordingly, the Fund paid no Federal income taxes and
no provision for Federal income taxes was required.
13
<PAGE>
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net
of Portfolio expenses, daily on its investment in the Portfolio. Dividends
and distributions from net realized capital gains, if any, are normally
distributed in December. Income dividends and capital gain distributions to
shareholders are recorded on the ex-dividend date. To the extent the Fund's
net realized capital gains, if any, can be offset by capital loss
carryforwards, it is the policy of the Fund not to distribute such gains.
The Fund distinguishes between dividends on a tax basis and a financial
reporting basis and only distributions in excess of tax basis earnings and
profits are reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains.
5) ORGANIZATION EXPENSES: Expenses incurred by the Fund in connection with its
organization are being amortized on a straight-line basis over a five-year
period. At August 31, 1996, the unamortized balance of such expenses amounted
to $24,201.
6) EXPENSE ALLOCATION: The Fund bears all costs of its operations. Expenses
incurred by the Trust with respect to any two or more funds are allocated in
proportion to the net assets of such funds, except where a more appropriate
allocation of expenses to each fund can otherwise be made fairly. Expenses
directly attributable to a fund are charged to that fund.
7) OTHER: All net investment income and realized and unrealized capital gains
and losses of the Portfolio are allocated pro rata among its respective funds
and any other investors in the Portfolio.
NOTE B -- ADMINISTRATION FEES, DISTRIBUTION ARRANGEMENTS, AND OTHER TRANSACTIONS
WITH AFFILIATES:
The Fund retains Neuberger&Berman Management Incorporated ("Management") as
its administrator under an Administration Agreement ("Agreement") dated as of
March 11, 1994. Pursuant to this Agreement the Fund pays Management an
administration fee at the annual rate of 0.05% of the Fund's average daily net
assets and indirectly pays for investment management services through its
investment in the Portfolio (see Note B of Notes to Financial Statements of the
Portfolio).
14
<PAGE>
Management has voluntarily undertaken to reimburse the Fund for its operating
expenses and its pro rata share of the Portfolio's operating expenses (excluding
interest, taxes, brokerage commissions, and extraordinary expenses) which
exceed, in the aggregate, 0.60% per annum of the Fund's average daily net
assets. This undertaking is subject to termination by Management upon at least
60 days' prior written notice to the Fund. For the year ended August 31, 1996,
such excess expenses amounted to $224,030.
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 sub-adviser to the Portfolio. Several individuals
who are officers and/or trustees of the Trust are also partners of Neuberger
and/or officers and/or directors of Management.
The Fund also has a distribution agreement with Management, which receives no
compensation therefor and no commissions for sales or redemptions of shares of
beneficial interest of the Fund.
The Portfolio has an expense offset arrangement in connection with its
custodian contract. The impact of this arrangement, reflected in the Statement
of Operations, under the caption Expenses from Portfolio, is less than .01% of
the Fund's average daily net assets.
NOTE C -- INVESTMENT TRANSACTIONS:
During the year ended August 31, 1996, additions and reductions in the Fund's
investment in the Portfolio amounted to $22,952,978 and $5,384,563,
respectively.
15
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- --------------------------------------------------------------------------------
NYCDC Socially Responsive Trust
The following table includes selected data for a share outstanding throughout
each year and other performance information derived from the Financial
Statements. The per share amounts and ratios which are shown reflect income and
expenses, including the Fund's proportionate share of the Portfolio's income and
expenses. It should be read in conjunction with the Portfolio's Financial
Statements and notes thereto.
<TABLE>
<CAPTION>
For the
Period from
March 14,
1994(1)
For the Year Ended to August
August 31, 31,
1996 1995 1994
---------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Year $ 12.27 $ 10.43 $ 10.20
---------------------------------
Income From Investment Operations
Net Investment Income .14 .13 .06
Net Gains or Losses on Securities (both
realized and unrealized) 2.44 1.82 .17
---------------------------------
Total From Investment Operations 2.58 1.95 .23
---------------------------------
Less Distributions
Dividends (from net investment income) (.12) (.11) --
Distributions (from capital gains) (.31) -- --
---------------------------------
Total Distributions (.43) (.11) --
---------------------------------
Net Asset Value, End of Year $ 14.42 $ 12.27 $ 10.43
---------------------------------
Total Return+ +21.27% +18.95% +2.26%(2)
---------------------------------
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $ 125.6 $ 88.5 $ 68.6
---------------------------------
Ratio of Expenses to Average Net Assets(4) .60% .60% .60%(3)
---------------------------------
Ratio of Net Invesment Income to Average Net
Assets(4) 1.06% 1.26% 1.42%(3)
---------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
16
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman August 31, 1996
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
1)The date investment operations commenced.
2)Not annualized.
3)Annualized.
4)After reimbursement of expenses by the administrator as described in Note B of
Notes to Financial Statements. Had the administrator not undertaken such
action the annualized ratios to average daily net assets would have been:
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED PERIOD FROM MARCH 14,
AUGUST 31, 1994 TO AUGUST 31,
1996 1995 1994
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Expenses .80% .85% .84%
- -------------------------------------------------------------------------------------------
Net Investment Income .86% 1.01% 1.18%
- -------------------------------------------------------------------------------------------
</TABLE>
+ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each year and
assumes dividends and capital gain distributions, if any, were reinvested.
Results represent past performance and do not guarantee future results.
Investment returns and principal may fluctuate and shares when redeemed may be
worth more or less than original cost. Total return would have been lower if
Management had not reimbursed certain expenses.
17
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of Neuberger&Berman Equity Trust and
Shareholders of Neuberger&Berman NYCDC Socially Responsive Trust
We have audited the accompanying statement of assets and liabilities of
Neuberger&Berman NYCDC Socially Responsive Trust, as of August 31, 1996, and the
related statement of operations for the year then ended, the statement of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Neuberger&Berman NYCDC Socially Responsive Trust as of August 31, 1996, the
results of its operations for the year then ended, and the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the periods indicated therein, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
October 4, 1996
18
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman August 31, 1996
- --------------------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
TOP TEN EQUITY HOLDINGS
---------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. Louisiana Land & Exploration 2.9%
2. Illinois Central 2.5%
3. Dun & Bradstreet 2.2%
4. ENSERCH Corp. 2.2%
5. National City 2.1%
6. Hewlett-Packard 2.1%
7. Intel Corp. 2.1%
8. Brooklyn Union Gas 2.1%
9. Warner-Lambert 2.1%
10. Cabot Corp. 2.0%
</TABLE>
<TABLE>
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
COMMON STOCKS (94.6%)
AGRICULTURE (0.8%)
83,500 Mycogen Corp. $ 1,331 (2)
-------------
BANKING (8.7%)
32,000 CITICORP 2,664
67,007 CoreStates Financial 2,772
150,000 Dime Bancorp 1,969 (2)
60,000 Mercantile Bancorporation 2,933
90,000 National City 3,386
-------------
13,724
-------------
BUSINESS SERVICES (5.1%)
82,500 Banta Corp. 1,934
60,000 Dun & Bradstreet 3,457
110,000 John H. Harland 2,764
-------------
8,155
-------------
CHEMICALS (9.7%)
40,000 Air Products & Chemicals 2,190
115,000 Cabot Corp. 3,163
100,000 Dexter Corp. 2,912
55,000 Minerals Technologies 2,097
65,000 Morton International 2,413
50,000 Perkin-Elmer 2,594
-------------
15,369
-------------
COMMUNICATIONS (3.4%)
170,000 Comcast Corp. Class A Special $ 2,741
166,700 Matav-Cable Systems Media ADR 2,584 (2)
-------------
5,325
-------------
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
CONSUMER GOODS & SERVICES (4.8%)
30,000 Kimberly-Clark 2,351
29,400 Procter & Gamble 2,613
85,000 Viacom Inc. Class B 2,678 (2)
-------------
7,642
-------------
DIVERSIFIED (2.6%)
77,000 CasTech Aluminum Group 1,559 (2)
60,000 Tyco International 2,535
-------------
4,094
-------------
ENERGY (1.9%)
75,000 Noble Affiliates 3,009
-------------
FINANCIAL SERVICES (3.1%)
75,000 Federal National Mortgage
Association 2,325
60,000 Travelers Group 2,603
-------------
4,928
-------------
FOOD & BEVERAGE (1.7%)
122,000 Whitman Corp. 2,730
-------------
FURNISHINGS (1.8%)
100,000 Leggett & Platt 2,850
-------------
HEALTH CARE (3.6%)
50,000 Johnson & Johnson 2,463
55,000 Warner-Lambert 3,272
-------------
5,735
-------------
INDUSTRIAL & COMMERCIAL PRODUCTS (3.1%)
156,600 Polymer Group 2,192 (2)
40,000 Raychem Corp. 2,745
-------------
4,937
-------------
INSURANCE (4.9%)
79,800 Allmerica Property & Casualty $ 2,254
101,600 Equitable Cos. 2,502
70,000 ReliaStar Financial 3,089
-------------
7,845
-------------
OIL & GAS (6.2%)
170,000 ENSERCH Corp. 3,421
200,000 Enserch Exploration 1,825 (2)
80,000 Louisiana Land & Exploration 4,550
-------------
9,796
-------------
PACKAGING & CONTAINERS (1.2%)
63,000 Sonoco Products 1,866
-------------
PAPER & FOREST PRODUCTS (1.8%)
50,000 Mead Corp. 2,863
-------------
RAILROADS (2.5%)
129,600 Illinois Central 3,920
-------------
</TABLE>
19
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman August 31, 1996
- --------------------------------------------------------------------------------
Socially Responsive Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
RECYCLING (1.5%)
150,000 IMCO Recycling 2,381
-------------
RETAIL STORES (5.6%)
60,000 May Department Stores 2,730
62,000 Nordstrom, Inc. 2,418
95,000 Price/Costco 1,888 (2)
60,000 Rite Aid 1,913
-------------
8,949
-------------
TECHNOLOGY (5.7%)
60,000 Digital Equipment 2,318 (2)
76,000 Hewlett-Packard 3,325
41,500 Intel Corp. 3,312
-------------
8,955
-------------
TELECOMMUNICATIONS (11.6%)
86,000 Airtouch Communications 2,365 (2)
60,000 AT&T Corp. 3,150
35,000 Cabletron Systems $ 2,135 (2)
167,500 Jones Intercable Inc. Class A 2,136 (2)
230,000 Metromedia International Group 2,587 (2)
52,000 Southern New England
Telecommunications 1,983
50,000 Telephone & Data Systems 2,131
90,000 WorldCom Inc. 1,890 (2)
-------------
18,377
-------------
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
TRANSPORTATION (1.2%)
103,700 Stolt-Nielsen ADR 1,828
-------------
UTILITIES (2.1%)
121,300 Brooklyn Union Gas 3,290
-------------
TOTAL COMMON STOCKS (COST
$126,656) 149,899
-------------
<CAPTION>
Principal
Amount
- ---------
<C> <S> <C>
U.S. TREASURY SECURITIES (5.3%)
$8,520,000 U.S. Treasury Bills, 4.85% -
5.05%, due 9/5/96 - 10/24/96
(COST $8,497) 8,497(3)
-------------
TOTAL INVESTMENTS (99.9%)
(COST $135,153) 158,396(4)
Cash, receivables and other
assets, less liabilities
(0.1%) 89
-------------
TOTAL NET ASSETS (100.0%) $ 158,485
-------------
</TABLE>
20
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Neuberger&Berman August 31, 1996
- ----------------------------------------------------------------------
Socially Responsive Portfolio
1)Investment securities of the Portfolio are valued at the latest sales price;
securities for which no sales were reported, unless otherwise noted, are
valued at the mean between the closing bid and asked prices. The Portfolio
values all other securities by a method that the trustees of Equity Managers
Trust believe accurately reflects fair value. Short-term debt securities with
less than 60 days until maturity at the time of purchase may be valued at cost
which, when combined with interest earned, approximates market value.
2)Non-income producing security.
3)At cost, which approximates market value.
4)The cost of investments for Federal income tax purposes was $135,180,000. At
August 31, 1996, gross unrealized appreciation of investments was $26,389,000
and gross unrealized depreciation of investments was $3,173,000, resulting in
net unrealized appreciation of $23,216,000, based on cost for Federal income
tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman
- ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
August 31,
(000'S OMITTED) 1996
-------------
<S> <C>
ASSETS
Investments in securities, at market value *
(Note A) -- see Schedule of Investments $ 158,396
Cash 8
Dividends receivable 168
Deferred organization costs (Note A) 17
Prepaid expenses 3
-------------
158,592
-------------
LIABILITIES
Payable to investment manager (Note B) 73
Accrued expenses 34
-------------
107
-------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 158,485
-------------
NET ASSETS consist of:
Paid-in capital $ 135,242
Net unrealized appreciation in value of
investment securities 23,243
-------------
NET ASSETS $ 158,485
-------------
*Cost of investments $ 135,153
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman
- ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
For the
Year
Ended
August 31,
(000'S OMITTED) 1996
-----------
<S> <C>
INVESTMENT INCOME
Income:
Dividend income $ 1,814
Interest income 325
-----------
Total income 2,139
-----------
Expenses:
Investment management fee (Note B) 704
Custodian fees (Note B) 69
Auditing fees 19
Legal fees 14
Accounting fees 10
Amortization of deferred organization and
initial offering expenses (Note A) 7
Trustees' fees and expenses 7
Insurance expense 2
-----------
Total expenses 832
-----------
Net investment income 1,307
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment securities
sold 11,385
Change in net unrealized appreciation of
investment securities 9,035
-----------
Net gain on investments 20,420
-----------
Net increase in net assets resulting from
operations $ 21,727
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman
- ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
For the
Year Ended
August 31,
(000'S OMITTED) 1996 1995
--------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 1,307 $ 925
Net realized gain on investments
sold 11,385 1,842
Change in net unrealized
appreciation of investments 9,035 12,075
--------------------------
Net increase in net assets resulting
from operations 21,727 14,842
--------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 45,974 21,008
Reductions (5,963) (9,789)
--------------------------
Net increase in net assets resulting
from transactions in investors'
beneficial interests 40,011 11,219
--------------------------
NET INCREASE IN NET ASSETS 61,738 26,061
NET ASSETS:
Beginning of year 96,747 70,686
--------------------------
End of year $ 158,485 $ 96,747
--------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS
August 31, 1996
- ----------------------------------------------------------------------
Equity Managers Trust
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger&Berman Socially Responsive Portfolio (the "Portfolio") is
a separate operating series of Equity Managers Trust ("Managers Trust"), a
New York common law trust organized as of December 1, 1992. Managers Trust is
registered as a diversified, open-end management investment company under the
Investment Company Act of 1940, as amended. Other regulated investment
companies sponsored by Neuberger&Berman Management Incorporated
("Management"), whose financial statements are not presented herein, also
invest in the Portfolio and other portfolios of Managers Trust.
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
2) PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the Portfolio's Schedule of Investments.
3) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date. Interest income, including original issue discount, where
applicable, and 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 each of its
investors will be able to qualify as a regulated investment company. Each
portfolio will be treated as a partnership for U.S. Federal income tax
purposes and is therefore not subject to U.S. Federal income tax.
5) ORGANIZATION EXPENSES: Expenses incurred by the Portfolio in connection
with its organization are being amortized by the Portfolio on a straight-line
basis over a five-year period. At August 31, 1996, the unamortized balance of
such expenses amounted to $17,095.
6) EXPENSE ALLOCATION: The Portfolio bears all costs of its operations. Expenses
incurred by Managers Trust with respect to any two or more portfolios are
allocated in proportion to the net assets of such portfolios, except where a
more appropriate allocation of expenses to each portfolio can otherwise be
made fairly. Expenses directly attributable to a portfolio are charged to
that portfolio.
25
<PAGE>
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Portfolio retains Management as its investment manager under a Management
Agreement dated as of March 11, 1994. For such investment management services,
the Portfolio pays Management a fee at the annual rate of 0.55% of the first
$250 million of the Portfolio's average daily net assets, 0.525% of the next
$250 million, 0.50% of the next $250 million, 0.475% of the next $250 million,
0.45% of the next $500 million, and 0.425% of average daily net assets in excess
of $1.5 billion.
All of the capital stock of Management is owned by individuals who are also
general partners of Neuberger&Berman, L.P. ("Neuberger"), a member firm of The
New York Stock Exchange and sub-adviser to the Portfolio. Neuberger is retained
by Management to furnish it with investment recommendations and research
information without cost to the Portfolio. Several individuals who are officers
and/or trustees of Managers Trust are also partners of Neuberger and/or officers
and/or directors of Management.
The Portfolio has an expense offset arrangement in connection with its
custodian contract. The impact of this arrangement, reflected in the Statement
of Operations, is less than .01% of the Portfolio's average daily net assets.
NOTE C -- SECURITIES TRANSACTIONS:
During the year ended August 31, 1996, there were purchase and sale
transactions (excluding short-term securities) of $101,143,798 and $65,018,616,
respectively.
During the year ended August 31, 1996, brokerage commissions on securities
transactions amounted to $208,834, of which Neuberger received $124,879, and
other brokers received $83,955.
26
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- --------------------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
For the
Period from
March 14, 1994
(Commencement
For the of Operations)
Year Ended August to
31, August 31,
1996 1995 1994
--------------------------------------
<S> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses .65% .68% .69%(1)
--------------------------------------
Net Investment Income 1.02% 1.18% 1.33%(1)
--------------------------------------
Portfolio Turnover Rate 53% 58% 14%
--------------------------------------
Average Commission Rate Paid $ 0.0587 -- --
--------------------------------------
Net Assets, End of Year (in millions) $ 158.5 $ 96.7 $ 70.7
--------------------------------------
</TABLE>
1) Annualized.
27
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of Equity Managers Trust and
Owners of Beneficial Interest of
Neuberger&Berman Socially Responsive Portfolio
We have audited the accompanying statement of assets and liabilities of
Neuberger&Berman Socially Responsive Portfolio (the "Portfolio"), including the
schedule of investments, as of August 31, 1996, and the related statement of
operations for the year then ended, and the statement of changes in net assets
for each of the two years in the period then ended, and the financial highlights
for each of the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Portfolio's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 1996, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Neuberger&Berman Socially Responsive Portfolio as of August 31, 1996, the
results of its operations for the year then ended, and the changes in its net
assets for each of the two years in the period then ended and the financial
highlights for each of the periods indicated therein, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
October 4, 1996
28
<PAGE>
DIRECTORY
INVESTMENT MANAGER, ADMINISTRATOR
AND DISTRIBUTOR
Neuberger&Berman Management Incorporated
605 Third Avenue 2nd Floor
New York, NY 10158-0180
800-877-9700
Institutional Services 800-366-6264
SUB-ADVISER
Neuberger&Berman, L.P.
605 Third Avenue
New York, NY 10158-3698
CUSTODIAN AND SHAREHOLDER
SERVICING AGENT
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
ADDRESS CORRESPONDENCE TO:
Deferred Compensation Plan of the
City of New York and Related Agencies
and Instrumentalities
40 Rector Street 3rd Floor
New York, NY 10006
212-306-7760
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, NW
2nd Floor
Washington, DC 20036-1800
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
Neuberger&Berman NYCDC Socially Responsive Trust is a service mark of
Neuberger&Berman Management Inc.
- -C- 1996 Neuberger&Berman Management Inc.
29
<PAGE>
OFFICERS AND TRUSTEES
Stanley Egener
CHAIRMAN OF THE BOARD AND TRUSTEE
Lawrence Zicklin
PRESIDENT AND TRUSTEE
Faith Colish
TRUSTEE
Donald M. Cox
TRUSTEE
Alan R. Gruber
TRUSTEE
Howard A. Mileaf
TRUSTEE
Edward I. O'Brien
TRUSTEE
John T. Patterson, Jr.
TRUSTEE
John P. Rosenthal
TRUSTEE
Cornelius T. Ryan
TRUSTEE
Gustave H. Shubert
TRUSTEE
Daniel J. Sullivan
VICE PRESIDENT
Michael J. Weiner
VICE PRESIDENT
Richard Russell
TREASURER
Claudia A. Brandon
SECRETARY
Barbara DiGiorgio
ASSISTANT TREASURER
Celeste Wischerth
ASSISTANT TREASURER
Stacy Cooper-Shugrue
ASSISTANT SECRETARY
C. Carl Randolph
ASSISTANT SECRETARY
30
<PAGE>
Neuberger&Berman Management Inc. -R-
605 THIRD AVENUE 2ND FLOOR
NEW YORK, NY 10158-0180
SHAREHOLDER SERVICES
800.877.9700
INSTITUTIONAL SERVICES
800.366.6264
Statistics and projections in this report are derived from sources deemed to be
reliable but cannot be regarded as a representation of future results of the
Fund. This report is prepared for the general information of shareholders and is
not an offer of shares of the Fund. Shares are sold only through the currently
effective prospectus, which must precede or accompany this report.
PRINTED ON RECYCLED PAPER
(recycle logo)WITH SOY BASED INKS NBNYCAR30896
<PAGE>
