<PAGE>
<PAGE>
SEMI-ANNUAL REPORT
- -----------------------------------------------------------
February 29, 1996
NEUBERGER&BERMAN
EQUITY TRUST -Registered Trademark-
Neuberger&Berman
FOCUS TRUST
Neuberger&Berman
GENESIS TRUST
Neuberger&Berman
GUARDIAN TRUST
Neuberger&Berman
MANHATTAN TRUST
Neuberger&Berman
PARTNERS TRUST
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
THE FUNDS
<S> <C>
CHAIRMAN'S LETTER 4
PERFORMANCE
HIGHLIGHTS 6
PORTFOLIO MANAGERS'
COMMENTARY
Focus Trust 10
Genesis Trust 12
Guardian Trust 14
Manhattan Trust 16
Partners Trust 19
FINANCIAL STATEMENTS 22
FINANCIAL HIGHLIGHTS
PER SHARE DATA
Focus Trust 32
Genesis Trust 33
Guardian Trust 34
Manhattan Trust 35
Partners Trust 36
THE PORTFOLIOS
SCHEDULE OF
INVESTMENTS
TOP TEN EQUITY
HOLDINGS
Focus Portfolio 39
Genesis Portfolio 41
Guardian Portfolio 43
Manhattan Portfolio 46
Partners Portfolio 49
FINANCIAL STATEMENTS 54
FINANCIAL HIGHLIGHTS 65
DIRECTORY 68
OFFICERS AND
TRUSTEES 69
</TABLE>
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CHAIRMAN'S LETTER April 12, 1996
Dear Shareholder,
Over the six months ended February 29, 1996, the Dow Jones Industrial Average
surged from 4611 on August 31, 1995, to 5486 on February 29, 1996, an overall
rise topping 20%. Other leading indicators, including the S&P "500" Index, also
followed suit. Performance in overseas markets paled in comparison to the
strength of the U.S. stock market.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
(TOTAL RETURNS IN PERCENTAGE)
S&P "500" INDEX* RUSSELL 2000 INDEX*
<S> <C> <C>
Mar-95 2.95% 1.72%
Apr-95 2.94% 2.22%
May-95 4.00% 1.72%
Jun-95 2.32% 5.19%
Jul-95 3.32% 5.76%
Aug-95 0.25% 2.07%
Sep-95 4.22% 1.79%
Oct-95 -0.36% -4.47%
Nov-95 4.39% 4.20%
Dec-95 1.93% 2.64%
Jan-96 3.40% -0.11%
Feb-96 0.93% 3.12%
</TABLE>
SOURCE: BLOOMBERG FINANCIAL SERVICES
Despite events such as the government office shutdowns and related budget
impasse, the aging equity bull market in the U.S. continued to take its cues
from non-political events. Stock fund investors, primarily baby boomers saving
for retirement, poured record amounts into mutual funds, including a
single-month milestone of $28.9 billion set in January. Continued low interest
rates kept stocks attractive to investors -- the Federal Reserve Board even
elected to lower interest rates another quarter point in January, amidst a
powerful rally.
By the end of the six-month period, however, the market environment became
more turbulent. This was primarily caused by a growing degree of individual
sector volatility -- especially among technology-related stocks.
4
<PAGE>
A number of bearish indicators surfaced towards the end of the six-month
period even though the stock market continued on an upward track overall. These
included: rising consumer debt, shrinking stock dividends and waning capital
goods orders. During most of the first quarter of this year, each new piece of
economic data contributed to volatile intra-day trading and more erratic stock
performance results than we witnessed in 1995. However, we will continue
building our portfolios as we always have -- with what we believe are
high-quality, solid companies whose stocks are good long-term investments.
Please read the following interviews to find out what factors affected your
portfolio manager's strategy over this report period. If you have any questions,
please call us at 800-877-9700. As always, we remain committed to serving your
investment needs.
Sincerely,
/s/ Stanley Egener
Stanley Egener
Chairman of the Board
Neuberger&Berman Equity Trust
*The S&P "500" Index is an unmanaged index generally considered to be
representative of U.S. stock market activity.
The Russell "2000" Index is an unmanaged index of U.S. stocks which have market
capitalizations ranging from $13 million to $275 million, and is a popular
measure of the stock price performance of small-cap companies.
Please note that indices do not take into account any fees or expenses of
investing in the individual securities that they track, and that individuals
cannot invest directly in any index. Data about these indices are prepared or
obtained by Neuberger&Berman Management Inc. and include reinvestment of all
dividends and capital gain distributions. Each Portfolio invests in many
securities not included in any of the above-described indices. Past performance
does not guarantee future results.
5
<PAGE>
PERFORMANCE HIGHLIGHTS
<TABLE>
<CAPTION>
FOR PERIODS
ENDED 3/31/96
---------------------------------
SIX MONTH
NEUBERGER&BERMAN PERIOD AVERAGE ANNUAL TOTAL RETURNS(1)
EQUITY TRUST ENDED 2/29/96 1 YR 5 YR 10 YR
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
FOCUS TRUST(2) +4.32% +28.20% +17.88% +14.68%
GUARDIAN TRUST +4.68% +24.65% +16.48% +13.99%
MANHATTAN TRUST +3.47% +25.46% +14.61% +12.33%
PARTNERS TRUST +11.81% +33.69% +16.44% +13.04%
S&P "500"(3) +15.32% +32.00% +14.62% +13.92%
GENESIS TRUST +8.96% +32.42% +15.08% +13.35%(4)
RUSSELL 2000(3) +7.12% +29.09% +16.01% N/A
</TABLE>
Each Fund commenced operations in August 1993.
The Funds have identical investment objectives and policies, and invest 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, 1996. Neuberger&Berman
Management Inc. has voluntarily agreed to waive a portion of the management fee
borne directly by Neuberger& Berman Genesis Portfolio and indirectly by
Neuberger&Berman Genesis Trust to reduce that fee by 0.10% of the Portfolio's
average daily net assets. Returns would have been lower had Neuberger&Berman
Management Inc. not reimbursed these expenses and waived these fees. The total
returns for periods prior to the Funds' commencement of operations would have
been lower had they reflected the higher fees of the Funds as compared to those
of the Sister Funds and their predecessors.
1)Average annual total returns for periods ended March 31, 1996. 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 prior to January 1, 1995 was Neuberger&Berman Selected
Sectors Trust. Prior to 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.
6
<PAGE>
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 issuers having the smallest
capitalization 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).
7
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8
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9
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PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman
- ----------------------------------------------------------------------
Focus Trust
KENT SIMONS AND LAWRENCE MARX III -- PORTFOLIO CO-MANAGERS
<TABLE>
<S> <C>
Q. WHAT WAS YOUR INVESTMENT STRATEGY DURING THIS PERIOD?
A. During this six-month period, as in the past, we continued
our search for companies that were undervalued for reasons
we felt were temporary. We invested with those companies
that we identified as industry leaders. We say "companies"
as opposed to "stocks" because we consider the quality of
the company management as important as the financial
soundness represented on the balance sheets. As a result, we
met with the managements of many of the companies in our
Portfolio over the period, and will continue to do so in the
future.
Q. WHAT INDUSTRY SECTORS AND STOCKS HAD A SIGNIFICANT IMPACT ON
THE TRUST'S PERFORMANCE?
A. Our financial and health care sectors did well because
investors feared a slowing economy would cause the corporate
earnings in other sectors to decline. Investors purchased
consumer non-durable stocks (such as food, health care, and
drug concerns) whose futures were less influenced by the
economy. Among those, our positions in U.S. Healthcare and
Humana did well. Moreover, the slowing economy led to lower
interest rates, which caused financial stocks to outperform
many other stocks. Federal National Mortgage Association
(FNMA), Travelers, and Penncorp Financial are examples of
financial issues which recorded strong share price
appreciation over this period.
Conversely, holdings in sectors such as electronics and
paper/forest products underperformed as investors became
concerned that the slowing economy might lead to earnings
disappointments. We felt that any such disappointments were
more than discounted in those companies' stock prices at the
end of the period. Nonetheless, our stock positions in these
sectors, such as National Semiconductor and Stone Container,
also declined in value.
</TABLE>
10
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Focus Trust (Cont'd)
<TABLE>
<S> <C>
Q. WHAT IS AN EXAMPLE OF A STOCK YOU PURCHASED DURING THIS
PERIOD?
A. We bought PartnerRe for our financial sector weighting
because its price-to-earnings (P/E) ratio of 6 to 1 seemed
to us unusually low. This opinion was apparently shared by
the company, which announced a stock buyback of 10% of its
outstanding shares shortly after we added it to our
portfolio.
Q. WHAT ARE EXAMPLES OF STOCKS YOU SOLD DURING THIS PERIOD?
A. We sold Tenneco -- a diversified company with interests in
natural gas pipeline operations, auto parts, construction
and farm equipment, packaging products and
shipbuilding -- because we felt its earnings would come in
below generally-held expectations (which they did).
Tenneco's operations were affected by an increasingly
less-profitable energy business and weak paper prices.
We also sold our position in Intel, the top computer
processor manufacturer, after a long run-up in share price
through the first three quarters of 1995.
We initially bought First Fidelity Bancorp as a cheaper way
to buy First Union Corp. At the time of our purchase, North
Carolina-based First Union Corp. was in the process of
acquiring New Jersey-based First Fidelity. On January 2,
1996, their merger created the sixth largest bank in the
U.S. In the process, we got First Union Corp. stock in
exchange for our less-expensive First Fidelity shares. We
sold our position later that month, profitably.
</TABLE>
11
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PORTFOLIO MANAGER'S COMMENTARY
Neuberger&Berman
- ----------------------------------------------------------------------
Genesis Trust
JUDITH VALE -- PORTFOLIO MANAGER
<TABLE>
<S> <C>
Q. WHAT WAS YOUR INVESTMENT STRATEGY DURING THIS PERIOD?
A. The investment 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. We focused on buying what we believed were good
businesses, with favorable growth outlooks and above-average
financial returns, but whose stocks were selling at low
valuations.
Through the six-month period we witnessed significant
volatility and rapid sector rotation in the small-cap
universe. The Trust's strong performance was driven by
individual stock selection rather than overall sector
allocation.
Q. WHAT ARE SOME EXAMPLES OF STOCKS THAT HAD A SIGNIFICANT
IMPACT ON THE TRUST'S PERFORMANCE?
A. Generally, stocks that produced good earnings gains also led
in performance contributions. Among the strong performers
were NN Ball & Roller, a niche manufacturer of precision
balls used in ball bearings, which benefited from increased
earnings and expanding market share. Reynolds & Reynolds, a
rapidly growing information systems company which sells
computer systems and forms to automotive dealers and health
care suppliers, was another top performer over the period.
Oakwood Homes, a highly successful provider of manufactured
housing, appreciated dramatically as investors realized its
increased earnings potential.
Two investments that lost value were the stocks of Harmon
Industries, which manufactures rail equipment for freight
railroads, and Material Sciences, which develops and
produces coated materials such as laminates and disc brake
noise dampers. Both companies showed declines due to
weaker-than-anticipated earnings.
</TABLE>
12
<PAGE>
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Genesis Trust (Cont'd)
<TABLE>
<S> <C>
Q. WHAT ARE SOME EXAMPLES OF STOCKS YOU PURCHASED DURING THIS
PERIOD?
A. We instituted a new position in Lincoln Electric Class A, a
worldwide leader in arc welding products and integral
horsepower industrial electric motors. We were able to
purchase the shares at a very modest valuation because
cyclical stocks, that is, companies generally considered to
be negatively affected by a weakening economy, were out of
favor at the end of 1995. We also established positions in
Webster Financial, an inexpensive Connecticut thrift, and
Bush Boake Allen, a growing manufacturer of flavors and
fragrances.
Q. WHAT ARE SOME EXAMPLES OF STOCKS YOU SOLD DURING THIS
PERIOD?
A. Over the period, stocks such as Mid-South Insurance and
Megatest were profitably sold. Mid-South Insurance, a North
Carolina-based company that markets, underwrites and
services health, accident and life insurance policies, was
the object of a takeover. Megatest, a company that designs,
manufactures, markets, and services automatic test equipment
for the integrated circuit industry, was also sold during
the fall, when it agreed to be acquired by Teradyne. We also
eliminated our position in Kellwood Co., a global
manufacturer and marketer of apparel and recreational
camping products, due to ongoing disappointments in its core
business.
</TABLE>
13
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PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman
- ----------------------------------------------------------------------
Guardian Trust
KENT SIMONS AND LAWRENCE MARX III -- PORTFOLIO CO-MANAGERS
<TABLE>
<S> <C>
Q. WHAT WAS YOUR INVESTMENT STRATEGY DURING THIS PERIOD?
A. Our investment strategy remained unchanged. We continued to
seek above-average companies whose stocks were selling at
below-average valuations. Since this was most likely to
occur in industries that had fallen out of favor with the
majority of investors, it was our job to make sure that the
factors which had caused the undervaluation were either
misperceptions or, at least, temporary. To do this we
utilized those analysts, both at N&B and elsewhere, that we
felt had the highest knowledge of the companies we were
interested in, as well as the information gained in our own
meetings with company managements.
Q. WHAT INDUSTRY SECTORS AND STOCKS HAD A SIGNIFICANT IMPACT ON
THE TRUST'S PERFORMANCE?
A. Finance stocks benefited from a significant decline in
interest rates. Lower rates increased activity in the
mortgage markets, which benefited Federal National Mortgage
Association and Federal Home Loan Mortgage Corporation,
while Travelers Corp., with its wholly-owned subsidiary
Smith Barney, benefited from a rising stock market.
Our positions in health care, primarily HMO stocks, enjoyed
good appreciation as cost pressures in the first half of the
year subsided. Their improving earnings outlook was in
contrast to the overall market, where earnings prospects
diminished as the year progressed.
Paper and technology stocks, in contrast, were hurt by
investors' perceptions of a slowing economy's effect on
their earnings prospects. In this atmosphere Micron
Technology, Integrated Device and Applied Materials
suffered, while Champion International and Stone Container
in the paper industry also declined in value.
</TABLE>
14
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Guardian Trust (Cont'd)
<TABLE>
<S> <C>
Q. WHAT ARE EXAMPLES OF STOCKS YOU BOUGHT DURING THIS PERIOD?
A. We increased our position in First USA (one of the largest
credit card companies in the U.S.) because we felt the
weakness in the stock, brought on by fears of rising credit
delinquencies, was unjustified and ignored the company's
potential for long-term growth. First USA focuses
exclusively on credit cards, which has been one of the
fastest growing and most profitable segments of the
financial services industry. Similarly, we purchased more
Countrywide Credit because we believed that the company's
stock price did not reflect its dominant position in its
industry.
We also bought Tele-Communications Inc., a leading cable
company, as we believed it was well positioned to take
advantage of expanding worldwide communications, especially
now that potentially troubling regulatory issues have been
resolved.
Q. WHAT ARE EXAMPLES OF STOCKS YOU SOLD OVER THIS PERIOD?
A. We sold Times Mirror, a major information company. After
recovering from a 50% drop in the spring, the stock was
close to its 52 week high when we sold it. While we believe
Times Mirror under its new management will be a much
improved company, the stock, in our opinion, is no longer
undervalued.
We also sold Goodyear Tire & Rubber simply because we felt
we could obtain better earnings prospects at a similar price
earnings ratio from other companies.
</TABLE>
15
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PORTFOLIO MANAGER'S COMMENTARY
Neuberger&Berman
- ----------------------------------------------------------------------
Manhattan Trust
MARK R. GOLDSTEIN -- PORTFOLIO MANAGER
<TABLE>
<S> <C>
Q. WHAT WAS YOUR INVESTMENT STRATEGY DURING THE PERIOD?
A. As always, we searched for growth at a reasonable price, but
only paid that price if a company had strong growth,
above-average return on equity, excess cash flow generation,
a strong balance sheet (modest debt), and what we felt was
exceptional entrepreneurial management. We also had
managements of at least 10 companies come into our offices
each week to discuss their business strategies. We looked at
their operations, plans for the future, integrity, and
commitment to products and services that gave them a special
competitive advantage or a product that made their stocks
attractive.
Sector rotation continued to add to the market's volatility
over the past six months. Very slight variations from
earnings expectations could cause a specific sector to be
out of favor for several months. We tried to take advantage
of these apparently temporary disappointments in otherwise
rapidly-growing companies to initiate or add to existing
positions.
Going forward, we believe there may be a slowdown in
corporate earnings over the next year to a 5-10% growth
rate. Our major portfolio concentrations are in the
financial, health care, technology, communications and
entertainment sectors. We think the best growth versus
valuation equations are available in these industries.
Q. WHAT ARE SOME EXAMPLES OF SECTORS AND STOCKS THAT HAD A
SIGNIFICANT IMPACT ON THE TRUST'S PERFORMANCE?
A. Our investments in the HMO industry began to deliver
superior returns over the past six months, as worries
regarding rising medical costs proved overdone. Early in
1995, the HMO industry suffered 20-35% declines in value due
to these concerns. Humana, PacifiCare and United HealthCare
were our major investments in
</TABLE>
16
<PAGE>
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Manhattan Trust (Cont'd)
<TABLE>
<S> <C>
the HMO industry. Going forward, we think these companies
have growth potential for several years due to strong
subscriber increases, excellent cost control and industry
consolidation.
The financial sector was also an important contributor to
Portfolio returns, as the market began to recognize many
rapidly-growing companies with relatively low valuations.
Some of our best performers included Finova, a company in
the commercial finance business that we believe is well
managed and entrepreneurial, ACE Ltd., a Bermuda-based
liability insurance company, and CITICORP, a capital-rich
worldwide financial powerhouse.
The two major areas of underperformance over the past six
months were technology and cellular telephones. Initially,
technology suffered from a pullback from its very strong
returns during the first nine months of 1995, then, from
worries regarding a slowdown in personal computer demand and
falling memory (such as RAM chips found in PCs) prices. Our
investments in Micron Technology and Texas Instruments
suffered the worst declines. We believe that Micron is one
of the world's most efficient producers of computer memory,
with future growth potential. Texas Instruments has added
several proprietary product lines, such as digital
micromirror technology, which we expect will favorably
affect its valuation over time.
Cellular valuations have suffered recently due to a decline
in phone prices in the U.S. market and a slowdown in the
growth of demand from very high levels. Our major cellular
investments are Airtouch Communications and Vodafone, which
are operators of cellular systems and in our view, should
benefit from lower phone prices. Both companies had cash
flow growth of more than 25%, as well as foreign assets that
we believe are substantially undervalued.
</TABLE>
17
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Manhattan Trust (Cont'd)
<TABLE>
<S> <C>
Q. WHAT ARE SOME EXAMPLES OF STOCKS THAT YOU BOUGHT AND SOLD
DURING THIS PERIOD?
A. We initiated new positions in KLA Instruments, a
manufacturer of semiconductor equipment that has improved
factory output. Another new position is CKE Restaurants, the
operators of Carl Jr.'s, a West Coast-based fast food chain,
which has been experiencing a strong rebound in
profitability.
We eliminated positions in Circuit City, H & R Block, and
Jones Apparel since their stock prices appreciated to our
target levels. We sold Sensormatic because its growth
outlook had deteriorated.
</TABLE>
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PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman
- ----------------------------------------------------------------------
Partners Trust
MICHAEL M. KASSEN AND ROBERT GENDELMAN -- PORTFOLIO CO-MANAGERS
<TABLE>
<S> <C>
Q. WHAT WAS YOUR INVESTMENT STRATEGY DURING THIS PERIOD?
A. Our investment strategy remained consistent during this
period as we attempted to identify strong companies whose
stock prices had come under selling pressure. We believe
that through exhaustive research we can identify these
undervalued stocks and be rewarded over time. We approach
new purchases as if we were buying a piece of the business,
not just a piece of paper. So as always, we focused our
attention on underlying business values. We did not employ
any market timing or sector rotation techniques, measures we
feel are counter-productive to our quest for long-term
growth.
Q. WHAT ARE SOME EXAMPLES OF STOCKS THAT HAD A SIGNIFICANT
IMPACT ON THE TRUST'S PERFORMANCE?
A. Financial stocks fared well during this period due to a
strengthening bond market. Moreover, in the banking sector,
many companies were vastly overcapitalized and aggressively
repurchased their own stock. Our CITICORP holding was a
primary beneficiary of this trend, as was Bank of New York.
Health care stock performance was mixed as various proposals
out of Washington were publicized. In general, the need for
Medicare and Medicaid reform became the focus of investors'
attentions. Those companies that were able to demonstrate an
understanding of the pricing environment and cut overall
medical spending did well. Columbia/HCA Healthcare, the
nation's largest provider of health care services, profited
nicely from this focus and consolidation; it also benefited
from merger-related synergies. Other health care holdings in
the Portfolio, such as Humana and Ornda Healthcorp, showed
similar strength during the six-month period.
One sector that performed quite poorly during this period
was technology. Not only had many stocks appreciated
handsomely over the preceding period, but pricing pressures
became evident.
</TABLE>
19
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Partners Trust (Cont'd)
<TABLE>
<S> <C>
Specifically, memory pricing began to decline for the first
time in years. This set off a chain reaction of negative
news and downgrades. Our holdings in Texas Instruments and
Advanced Micro Devices were affected. We sold the latter due
to specific company disappointments but took advantage of
lower prices to add to our Texas Instruments holdings.
Q. WHAT ARE SOME EXAMPLES OF STOCKS THAT YOU HAVE BOUGHT AND
SOLD DURING THIS PERIOD?
A. American Express was added during this period. The company
enjoys many characteristics that we look for in an
investment. In our judgment, it has excellent management and
significant market share, and is constantly attempting to
increase returns to shareholders (including a sizable share
repurchase over the period). American Express came under
some pressure as investors and analysts focused on potential
credit exposure in a weakening economy. We became confident
that steps were being taken to manage this exposure and, in
addition, leverage its very strong market position into new
product areas.
Viacom Inc. was also added to the Portfolio as investors'
concerns over closely-tied Blockbusters' results depressed
the stock price. We believe that many of the conditions that
caused the underperformance were "one time" in nature and
will improve as the year goes on. Moreover, other segments
of the company continued to do well and increased in value.
BankAmerica Corp. (the second largest U.S. bank holding
company) and Ralston-Purina Group (the world's largest
producer of dry dog and cat food, as well as dry cell
battery products such as Eveready and Energizer) were sold
from the Portfolio as their stocks reached their respective
target prices.
</TABLE>
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21
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STATEMENTS OF ASSETS AND LIABILITIES
Neuberger&Berman
- ----------------------------------------------------------------------
Equity Trust
<TABLE>
<CAPTION>
FOCUS GENESIS
(000'S OMITTED EXCEPT PER SHARE AMOUNTS) TRUST TRUST
-----------------------------
<S> <C> <C>
ASSETS
Investment in corresponding Portfolio, at value
(Note A) $ 37,100 $ 36,317
Deferred organization costs (Note A) 24 24
Prepaid expenses 3 --
Receivable for Trust shares sold 84 2
Receivable from administrator -- net (Note B) 7 --
-----------------------------
37,218 36,343
-----------------------------
LIABILITIES
Payable for Trust shares redeemed 11 15
Payable to administrator -- net (Note B) -- --
Accrued expenses 42 38
-----------------------------
53 53
-----------------------------
NET ASSETS at value $ 37,165 $ 36,290
-----------------------------
NET ASSETS consist of:
Par value $ 2 $ 3
Paid-in capital in excess of par value 34,626 28,647
Accumulated undistributed net investment income
(loss) 50 (62)
Accumulated net realized gains (losses) on
investment (64) 193
Net unrealized appreciation in value of
investment 2,551 7,509
-----------------------------
NET ASSETS at value $ 37,165 $ 36,290
-----------------------------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 2,489 2,699
-----------------------------
NET ASSET VALUE, offering and redemption price per
share $14.93 $13.45
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
22
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February 29, 1996 (Unaudited)
- ----------------------------------------------------------------------
Equity Trust
<TABLE>
<CAPTION>
GUARDIAN MANHATTAN PARTNERS
TRUST TRUST TRUST
---------------------------------------------
<S> <C> <C> <C>
ASSETS
Investment in corresponding Portfolio, at value
(Note A) $ 1,071,145 $ 47,261 $ 81,609
Deferred organization costs (Note A) 24 24 24
Prepaid expenses 80 2 1
Receivable for Trust shares sold 2,268 56 218
Receivable from administrator -- net (Note B) -- 1 --
---------------------------------------------
1,073,517 47,344 81,852
---------------------------------------------
LIABILITIES
Payable for Trust shares redeemed 263 -- 2
Payable to administrator -- net (Note B) 296 -- 23
Accrued expenses 154 46 39
---------------------------------------------
713 46 64
---------------------------------------------
NET ASSETS at value $ 1,072,804 $ 47,298 $ 81,788
---------------------------------------------
NET ASSETS consist of:
Par value $ 75 $ 4 $ 6
Paid-in capital in excess of par value 946,282 40,354 68,027
Accumulated undistributed net investment income
(loss) 2,337 (65) 161
Accumulated net realized gains (losses) on
investment 6,771 1,381 1,603
Net unrealized appreciation in value of
investment 117,339 5,624 11,991
---------------------------------------------
NET ASSETS at value $ 1,072,804 $ 47,298 $ 81,788
---------------------------------------------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 75,332 3,641 6,216
---------------------------------------------
NET ASSET VALUE, offering and redemption price per
share $14.24 $12.99 $13.16
---------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
STATEMENTS OF OPERATIONS
Neuberger&Berman
- ----------------------------------------------------------------------
Equity Trust
<TABLE>
<CAPTION>
FOCUS GENESIS
(000'S OMITTED) TRUST TRUST
---------------------------
<S> <C> <C>
INVESTMENT INCOME
Investment income from corresponding Portfolio
(Note A) $ 177 $ 169
---------------------------
Expenses:
Administration fee (Note B) 48 65
Amortization of deferred organization and initial
offering expenses (Note A) 5 5
Auditing fees 2 2
Custodian fees 5 5
Legal fees 6 6
Registration and filing fees 17 18
Shareholder reports 22 21
Shareholder servicing agent fees 9 9
Trustees' fees and expenses -- 1
Miscellaneous 1 1
Expenses from corresponding Portfolio (Note A) 65 140
---------------------------
Total expenses 180 273
Deduct -- expenses reimbursed by administrator
(Note B) (61) (42)
---------------------------
Total net expenses 119 231
---------------------------
Net investment income (loss) 58 (62)
---------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
OPTION CONTRACTS WRITTEN FROM CORRESPONDING PORTFOLIO
(NOTE A)
Net realized gain (loss) on investments (36) 492
Net realized loss on option contracts written (10) --
Change in net unrealized appreciation of
investments 938 2,481
---------------------------
Net gain on investments and option contracts
written from corresponding Portfolio (Note A) 892 2,973
---------------------------
Net increase in net assets resulting from
operations $ 950 $ 2,911
---------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
For the Six Months Ended February 29, 1996 (Unaudited)
- ----------------------------------------------------------------------
Equity Trust
<TABLE>
<CAPTION>
GUARDIAN MANHATTAN PARTNERS
TRUST TRUST TRUST
------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Investment income from corresponding Portfolio
(Note A) $ 9,178 $ 151 $ 608
------------------------------------------------
Expenses:
Administration fee (Note B) 1,736 80 136
Amortization of deferred organization and initial
offering expenses (Note A) 5 5 5
Auditing fees 2 5 2
Custodian fees 5 5 5
Legal fees 14 6 6
Registration and filing fees 263 22 28
Shareholder reports 113 22 23
Shareholder servicing agent fees 12 9 9
Trustees' fees and expenses 7 -- 1
Miscellaneous 3 1 1
Expenses from corresponding Portfolio (Note A) 2,021 115 175
------------------------------------------------
Total expenses 4,181 270 391
Deduct -- expenses reimbursed by administrator
(Note B) (232) (54) (67)
------------------------------------------------
Total net expenses 3,949 216 324
------------------------------------------------
Net investment income (loss) 5,229 (65) 284
------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
OPTION CONTRACTS WRITTEN FROM CORRESPONDING PORTFOLIO
(NOTE A)
Net realized gain (loss) on investments 11,600 1,916 3,220
Net realized loss on option contracts written (459) -- --
Change in net unrealized appreciation of
investments 25,007 (349) 4,477
------------------------------------------------
Net gain on investments and option contracts
written from corresponding Portfolio (Note A) 36,148 1,567 7,697
------------------------------------------------
Net increase in net assets resulting from
operations $ 41,377 $ 1,502 $ 7,981
------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Neuberger&Berman
- ----------------------------------------------------------------------
Equity Trust
<TABLE>
<CAPTION>
FOCUS TRUST GENESIS TRUST
Six Months Six Months
Ended Year Ended Year
February 29, Ended February 29, Ended
1996 August 31, 1996 August 31,
(000'S OMITTED) (UNAUDITED) 1995 (UNAUDITED) 1995
-------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 58 $ 32 $ (62) $ (52)
Net realized gain (loss) on
investments sold and option
contracts written from
corresponding Portfolio (Note A) (46) 111 492 482
Change in net unrealized
appreciation of investments from
corresponding Portfolio (Note A) 938 1,542 2,481 4,936
-------------------------------------------------------------
Net increase in net assets resulting
from operations 950 1,685 2,911 5,366
-------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (33) (11) -- --
Net realized gain on investments (133) -- (822) (11)
-------------------------------------------------------------
Total distributions to shareholders (166) (11) (822) (11)
-------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 31,046 13,612 3,508 23,213
Proceeds from reinvestment of
dividends and distributions 161 11 822 11
Payments for shares redeemed (9,297) (2,413) (766) (1,029)
-------------------------------------------------------------
Net increase from Trust share
transactions 21,910 11,210 3,564 22,195
-------------------------------------------------------------
NET INCREASE IN NET ASSETS 22,694 12,884 5,653 27,550
NET ASSETS:
Beginning of period 14,471 1,587 30,637 3,087
-------------------------------------------------------------
End of period $ 37,165 $ 14,471 $ 36,290 $ 30,637
-------------------------------------------------------------
Accumulated undistributed net
investment income (loss) at end of
period $ 50 $ 25 $ (62) $ --
-------------------------------------------------------------
NUMBER OF TRUST SHARES:
Sold 2,116 1,054 273 2,223
Issued on reinvestment of dividends
and distributions 11 1 64 1
Redeemed (642) (191) (59) (94)
-------------------------------------------------------------
Net increase in shares outstanding 1,485 864 278 2,130
-------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
- ----------------------------------------------------------------------
Equity Trust
<TABLE>
<CAPTION>
GUARDIAN TRUST MANHATTAN TRUST PARTNERS TRUST
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
February 29, Ended February 29, Ended February 29, Ended
1996 August 31, 1996 August 31, 1996 August 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 5,229 $ 3,810 $ (65) $ (6) $ 284 $ 265
Net realized gain (loss) on
investments sold and option
contracts written from
corresponding Portfolio (Note A) 11,141 5,025 1,916 977 3,220 3,113
Change in net unrealized
appreciation of investments from
corresponding Portfolio (Note A) 25,007 88,893 (349) 5,693 4,477 7,316
------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 41,377 97,728 1,502 6,664 7,981 10,694
------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (4,284) (2,568) -- (17) (364) (32)
Net realized gain on investments (10,557) -- (1,370) (69) (4,629) (130)
------------------------------------------------------------------------------------------
Total distributions to shareholders (14,841) (2,568) (1,370) (86) (4,993) (162)
------------------------------------------------------------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 454,588 628,123 13,886 24,099 19,466 52,448
Proceeds from reinvestment of
dividends and distributions 14,818 2,565 1,370 86 4,892 153
Payments for shares redeemed (106,204) (118,547) (3,671) (7,260) (6,892) (6,512)
------------------------------------------------------------------------------------------
Net increase from Trust share
transactions 363,202 512,141 11,585 16,925 17,466 46,089
------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS 389,738 607,301 11,717 23,503 20,454 56,621
NET ASSETS:
Beginning of period 683,066 75,765 35,581 12,078 61,334 4,713
------------------------------------------------------------------------------------------
End of period $1,072,804 $ 683,066 $ 47,298 $ 35,581 $ 81,788 $ 61,334
------------------------------------------------------------------------------------------
Accumulated undistributed net
investment income (loss) at end of
period $ 2,337 $ 1,392 $ (65) $ -- $ 161 $ 241
------------------------------------------------------------------------------------------
NUMBER OF TRUST SHARES:
Sold 32,457 52,405 1,078 2,196 1,517 4,960
Issued on reinvestment of dividends
and distributions 1,070 213 111 9 394 15
Redeemed (7,596) (9,940) (286) (632) (533) (584)
------------------------------------------------------------------------------------------
Net increase in shares outstanding 25,931 42,678 903 1,573 1,378 4,391
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman February 29, 1996 (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 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 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 (3.24%, 22.14%, 18.18%, 7.14%, and 4.35%, for Focus, Genesis,
Guardian, Manhattan, and Partners, respectively, at February 29, 1996). 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: Each Fund records its investment in its corresponding
Portfolio at value. Investment securities of each Portfolio of Equity
Managers Trust are valued by Equity Managers Trust as indicated in the notes
following the Portfolios' schedule of investments.
28
<PAGE>
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 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 distributions from 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, 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 29, 1996, the unamortized balance of
such expenses amounted to $24,363, $24,255, $23,617, $24,362, and $24,364,
for Focus, Genesis, Guardian, Manhattan, and Partners, respectively.
6) EXPENSE ALLOCATION: The Funds bear all costs of operations. Expenses incurred
by the Trust with respect to any two or more Funds are allocated in
proportion to the net assets of such Funds, except where 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 each Portfolio are allocated pro rata among its respective
Funds and any other investors in the Portfolio.
29
<PAGE>
NOTE B -- ADMINISTRATION FEES, DISTRIBUTION ARRANGEMENTS AND OTHER TRANSACTIONS
WITH AFFILIATES:
Each Fund retains Neuberger&Berman Management Incorporated ("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 .40% of that Fund's average daily net
assets and indirectly pays for investment management services through its
investment in its corresponding Portfolio. (See Note B of Notes to Financial
Statements of the Portfolios.) 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 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 29, 1996.
In addition, Management has voluntarily undertaken until December 31, 1996,
to reimburse each Fund for its Operating Expenses which, in the aggregate,
exceed by more than .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 29, 1996, expenses (net of reimbursement) incurred by each Fund
amounted to .99%, 1.43%, .92%, 1.08%, and .95%, of average daily net assets on
an annualized basis for Focus, Genesis, Guardian, Manhattan, and Partners,
respectively.
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.
30
<PAGE>
NOTE C -- INVESTMENT TRANSACTIONS:
During the six months ended February 29, 1996, additions and reductions in
each Fund's investment in its corresponding Portfolio were as follows:
<TABLE>
<CAPTION>
ADDITIONS REDUCTIONS
- -------------------------------------------------------------
<S> <C> <C>
FOCUS $ 28,013,986 $ 6,343,344
GENESIS 3,192,614 502,730
GUARDIAN 360,234,336 13,303,198
MANHATTAN 12,057,486 1,897,846
PARTNERS 15,216,083 2,981,602
</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.
31
<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,
February 29, 1993(2)
1996 Year Ended August 31, to August 31,
(UNAUDITED) 1995 1994 1993
---------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $14.41 $ 11.36 $ 10.03 $10.00
---------------------------------------------------------
Income From Investment Operations
Net Investment Income .02 .05 .05 --
Net Gains or Losses on Securities
(both realized and unrealized) .60 3.05 1.31 .03
---------------------------------------------------------
Total From Investment Operations .62 3.10 1.36 .03
---------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (.02) (.05) (.02) --
Distributions (from capital gains) (.08) -- (.01) --
---------------------------------------------------------
Total Distributions (.10) (.05) (.03) --
---------------------------------------------------------
Net Asset Value, End of Period $14.93 $ 14.41 $ 11.36 $10.03
---------------------------------------------------------
Total Return+ +4.32%(3) +27.44% +13.58% +0.30%(3)
---------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $ 37.2 $ 14.5 $ 1.6 --
---------------------------------------------------------
Ratio of Expenses to Average Net
Assets(4) .99%(5) .96% .85% .92%(5)
---------------------------------------------------------
Ratio of Net Investment Income to
Average Net Assets(4) .49%(5) .67% .92% .05%(5)
---------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
32
<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>
Period from
Six Months Ended August 26,
February 29, 1993(2)
1996 Year Ended August 31, to August 31,
(UNAUDITED) 1995 1994 1993
---------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.65 $ 10.59 $ 10.05 $10.00
---------------------------------------------------------
Income From Investment Operations
Net Investment Loss (.02) (.01) (.01) --
Net Gains or Losses on Securities
(both realized and unrealized) 1.14 2.08 .56 .05
---------------------------------------------------------
Total From Investment Operations 1.12 2.07 .55 .05
---------------------------------------------------------
Less Distributions
Distributions (from capital gains) (.32) (.01) (.01) --
---------------------------------------------------------
Net Asset Value, End of Period $13.45 $ 12.65 $ 10.59 $10.05
---------------------------------------------------------
Total Return+ +8.96%(3) +19.51% +5.47% +0.50%(3)
---------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $ 36.3 $ 30.6 $ 3.1 --
---------------------------------------------------------
Ratio of Expenses to Average Net
Assets(4) 1.43%(5) 1.42% 1.36% 1.51%(5)
---------------------------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets(4) (.38%)(5) (.24%) (.21%) (.44%)(5)
---------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
33
<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>
Period from
Six Months Ended August 3,
February 29, 1993(2)
1996 Year Ended August 31, to August 31,
(UNAUDITED) 1995 1994 1993
---------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 13.83 $ 11.27 $ 10.27 $10.00
---------------------------------------------------------
Income From Investment Operations
Net Investment Income .07 .13 .09 --
Net Gains or Losses on Securities
(both realized and unrealized) .57 2.55 .99 .27
---------------------------------------------------------
Total From Investment Operations .64 2.68 1.08 .27
---------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (.07) (.12) (.07) --
Distributions (from capital gains) (.16) -- (.01) --
---------------------------------------------------------
Total Distributions (.23) (.12) (.08) --
---------------------------------------------------------
Net Asset Value, End of Period $ 14.24 $ 13.83 $ 11.27 $10.27
---------------------------------------------------------
Total Return+ +4.68%(3) +24.01% +10.57% +2.70%(3)
---------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $1,072.8 $ 683.1 $ 75.8 --
---------------------------------------------------------
Ratio of Expenses to Average Net
Assets(4) .92%(5) .90% .80% .81%(5)
---------------------------------------------------------
Ratio of Net Investment Income to
Average Net Assets(4) 1.20%(5) 1.35% 1.50% 1.00%(5)
---------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
34
<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>
Period from
Six Months Ended August 30,
February 29, 1993(2)
1996 Year Ended August 31, to August 31,
(UNAUDITED) 1995 1994 1993
---------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.99 $ 10.37 $ 10.01 $10.00
---------------------------------------------------------
Income From Investment Operations
Net Investment Income (Loss) (.01) -- .01 --
Net Gains or Losses on Securities
(both realized and unrealized) .44 2.67 .36 .01
---------------------------------------------------------
Total From Investment Operations .43 2.67 .37 .01
---------------------------------------------------------
Less Distributions
Dividends (from net investment
income) -- (.01) (.01) --
Distributions (from capital gains) (.43) (.04) -- --
---------------------------------------------------------
Total Distributions (.43) (.05) (.01) --
---------------------------------------------------------
Net Asset Value, End of Period $12.99 $ 12.99 $ 10.37 $10.01
---------------------------------------------------------
Total Return+ +3.47%(3) +25.90% +3.70% +0.10%(3)
---------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $ 47.3 $ 35.6 $ 12.1 --
---------------------------------------------------------
Ratio of Expenses to Average Net
Assets(4) 1.08%(5) 1.06% .96% 1.04%(5)
---------------------------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets(4) (.32%)(5) (.03%) .16% 5.48%(5)
---------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
35
<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>
Period from
Six Months Ended August 30,
February 29, 1993(2)
1996 Year Ended August 31, to August 31,
(UNAUDITED) 1995 1994 1993
---------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $12.68 $ 10.54 $ 10.01 $10.00
---------------------------------------------------------
Income From Investment Operations
Net Investment Income .05 .05 .03 --
Net Gains or Losses on Securities
(both realized and unrealized) 1.39 2.19 .53 .01
---------------------------------------------------------
Total From Investment Operations 1.44 2.24 .56 .01
---------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (.07) (.02) (.01) --
Distributions (from capital gains) (.89) (.08) (.02) --
---------------------------------------------------------
Total Distributions (.96) (.10) (.03) --
---------------------------------------------------------
Net Asset Value, End of Period $13.16 $ 12.68 $ 10.54 $10.01
---------------------------------------------------------
Total Return+ +11.81%(3) +21.52% +5.61% +0.10%(3)
---------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $ 81.8 $ 61.3 $ 4.7 --
---------------------------------------------------------
Ratio of Expenses to Average Net
Assets(4) .95%(5) .92% .81% .84%(5)
---------------------------------------------------------
Ratio of Net Investment Income to
Average Net Assets(4) .83%(5) .81% .47% 2.65%(5)
---------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
36
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman February 29, 1996 (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 Management as described in Note B of
Notes to Financial Statements. Had Management not undertaken such action the
annualized ratios to average daily net assets would have been:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED PERIOD FROM
FEBRUARY 29, AUGUST 31, AUGUST 30, 1993
FOCUS 1996 1995 1994 TO AUGUST 31, 1993
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expenses 1.50% 2.50% 2.50% 2.50%
----------------------------------------------------------------
Net Investment Loss (.02%) (.87%) (.73%) (1.53%)
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED PERIOD FROM
FEBRUARY 29, AUGUST 31, AUGUST 3, 1993
GUARDIAN 1996 1995 1994 TO AUGUST 31, 1993
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expenses .96% .96% 1.52% 2.50%
----------------------------------------------------------------
Net Investment Income
(Loss) 1.16% 1.29% .78% (.69%)
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED PERIOD FROM
FEBRUARY 29, AUGUST 31, AUGUST 30, 1993
MANHATTAN 1996 1995 1994 TO AUGUST 31, 1993
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expenses 1.35% 1.46% 2.50% 2.50%
----------------------------------------------------------------
Net Investment Income
(Loss) (.59%) (.43%) (1.38%) 4.02%
----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED PERIOD FROM
FEBRUARY 29, AUGUST 31, AUGUST 30, 1993
PARTNERS 1996 1995 1994 TO AUGUST 31, 1993
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expenses 1.14% 1.24% 2.50% 2.50%
----------------------------------------------------------------
Net Investment Income
(Loss) .64% .49% (1.22%) .99%
----------------------------------------------------------------
</TABLE>
After reimbursement of expenses by Management as described in Note B of Notes
to Financial Statements and the waiver of a portion of the management fee as
37
<PAGE>
described in Note B of Notes to Financial Statements of Neuberger&Berman Genesis
Portfolio. Had Management not undertaken such action the annualized ratios to
average daily net assets would have been:
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED PERIOD FROM
FEBRUARY 29, AUGUST 31, AUGUST 26, 1993
GENESIS 1996 1995 1994 TO AUGUST 31, 1993
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expenses 1.78% 1.78% 2.50% 2.50%
----------------------------------------------------------------
Net Investment Loss (.73%) (.60%) (1.35%) (1.43%)
----------------------------------------------------------------
</TABLE>
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. For Genesis Trust, total
return would have been lower if Management had not waived a portion of the
management fee.
38
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Focus Portfolio
<TABLE>
<CAPTION>
TOP TEN EQUITY HOLDINGS
---------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. CITICORP 3.4%
2. Chrysler Corp. 2.9%
3. General Motors 2.9%
4. Federal National Mortgage Association 2.7%
5. Neiman-Marcus Group 2.7%
6. Compaq Computer 2.7%
7. Travelers Group 2.4%
8. Foundation Health 2.3%
9. Federal Home Loan Mortgage 2.3%
10. Wells Fargo 2.1%
</TABLE>
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ----------- ---------------------
<C> <S> <C>
COMMON STOCKS (93.7%)
AUTOMOTIVE (5.8%)
600,000 Chrysler Corp. $ 33,825
645,000 General Motors 33,056
-----------
66,881
-----------
FINANCIAL SERVICES (31.3%)
231,700 Allmerica Property & Casualty 5,966
225,000 American International Group 21,741
300,000 Bank of Boston 14,588
690,000 Capital One Financial 18,457
495,000 CITICORP 38,610
1,000,000 Countrywide Credit Industries 21,000
275,000 Dean Witter, Discover 14,781
315,000 Federal Home Loan Mortgage 25,987
992,000 Federal National Mortgage Association 31,372
270,000 First Union Corp. 16,335
390,000 First USA 19,549
220,000 Horace Mann Educators 7,233
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ----------- ---------------------
<C> <S> <C>
157,500 MBNA Corp. $ 4,449
250,000 Merrill Lynch 14,406
259,000 National Re 8,094
495,000 PartnerRe Ltd. 15,036
450,000 Penncorp Financial Group 14,737
340,000 Signet Banking 8,840
526,400 Sphere Drake Holdings 5,790
410,000 Travelers Group 27,419
96,700 Wells Fargo 23,849
-----------
358,239
-----------
HEALTH CARE (9.1%)
705,000 FHP International 23,089
680,000 Foundation Health 26,520
670,000 Humana Inc. 16,415
320,000 U.S. Healthcare 15,600
200,000 United Healthcare 13,050(2)
272,800 Wellpoint Health Networks 9,241
-----------
103,915
-----------
HEAVY INDUSTRY (10.6%)
150,000 Aluminum Co. of America 8,513
233,600 American Standard 6,599
300,000 Canadian National Railway 5,175
225,000 Caraustar Industries 4,950
300,000 Champion International 12,000
205,000 Cleveland-Cliffs 9,122
550,000 LTV Corp. 7,012
150,000 Mead Corp. 7,500
99,500 Riverwood International 1,978
1,011,900 Rollins Truck Leasing 11,131
675,000 Stone Container 9,281
154,500 Temple-Inland 6,219
170,000 TNT Freightways 3,527
65,000 UCAR International 2,308
150,000 Union Camp 6,994
278,800 Varity Corp. 10,525
175,000 Willamette Industries 9,187
-----------
122,021
-----------
</TABLE>
39
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Focus Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ----------- ---------------------
<C> <S> <C>
MEDIA & ENTERTAINMENT (11.4%)
178,000 A.H. Belo $ 6,230
520,000 Bell Cablemedia ADR 7,930
25,000 Comcast Corp. Class A 481
915,000 Comcast Corp. Class A Special 17,957
490,000 Comcast UK Cable Partners Limited 6,125
325,000 Harcourt General 14,097
400,000 International CableTel 10,000
450,000 Jones Intercable Inc. Class A 6,188
310,000 Scandinavian Broadcasting System 6,510
500,000 U.S. West Media Group 10,437
500,000 United International Holdings 8,438
250,000 Viacom Inc. Class B 9,812
276,600 Vodafone Group ADR 9,785
256,000 Walt Disney 16,768
-----------
130,758
-----------
RETAIL (2.7%)
1,577,800 Neiman-Marcus Group 31,359
-----------
TECHNOLOGY (20.9%)
275,000 Airtouch Communications 8,525
200,000 Applied Materials 7,150
330,000 Arrow Electronics 16,253
250,000 Avnet, Inc. 12,469
600,000 Compaq Computer 30,375
260,000 Digital Equipment 18,720
33,200 Eaton Corp. 1,921
110,000 IBM 13,489
200,000 MEMC Electronic Materials 6,800
230,000 Micron Technology 7,360
649,000 National Semiconductor 10,141
350,000 Nokia Corp. ADR 12,206
200,000 Palmer Wireless 4,150
250,000 Philips Electronics 10,344
625,000 PriCellular Corp. 8,984
175,000 Rockwell International 9,975
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ----------- ---------------------
<C> <S> <C>
255,000 Seagate Technology $ 16,639
410,000 Sequent Computer Systems 4,817
250,000 Tele-Communications International 5,375
500,000 Tele-Communications, Inc. Class A 10,500
350,000 Texas Instruments 17,456
500,000 VLSI Technology 6,000
-----------
239,649
-----------
UTILITIES (1.9%)
340,000 AT&T Corp. 21,632
-----------
TOTAL COMMON STOCKS (COST $741,531) 1,074,454
-----------
<CAPTION>
Principal
Amount
- -----------
<C> <S> <C>
CONVERTIBLE BONDS (0.1%)
$ 1,000,000 Scandinavian Broadcasting System SA, Cv.
Sub. Deb., 7.25%, due 8/1/05 (COST
$1,000) 1,021
-----------
U.S. TREASURY SECURITIES (4.0%)
$46,430,000 U.S. Treasury Bills, 4.68% - 5.31%, due
3/7/96 - 8/15/96 (COST $45,756) 45,756
-----------
SHORT-TERM CORPORATE NOTES (1.5%)
$16,700,000 General Electric Capital Corp., 5.20%,
due 3/1/96 (COST $16,700) 16,700(3)
-----------
TOTAL INVESTMENTS (99.3%) (COST
$804,987) 1,137,931(4)
Cash, receivables and other assets, less
liabilities (0.7%) 8,170
-----------
TOTAL NET ASSETS (100.0%) $1,146,101
-----------
</TABLE>
40
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Genesis Portfolio
<TABLE>
<CAPTION>
TOP TEN EQUITY HOLDINGS
---------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. BMC Industries 5.0%
2. Texas Industries 4.1%
3. DH Technology 3.5%
4. Alumax Inc. 3.2%
5. Wolverine Tube 3.2%
6. Reynolds & Reynolds 2.5%
7. NN Ball & Roller 2.5%
8. W.H. Brady 2.2%
9. Dallas Semiconductor 2.2%
10. Coho Energy 2.1%
</TABLE>
<TABLE>
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
COMMON STOCKS (96.9%)
AGRICULTURE (1.2%)
43,233 Delta & Pine Land $ 2,032
-------------
AUTOMOTIVE (1.5%)
47,700 Donaldson Co. 1,294
67,800 Monaco Coach 619
86,200 TBC Corp. 614
-------------
2,527
-------------
BANKING & FINANCE (5.5%)
63,000 Charter One Financial 2,158
60,000 First Commerce 1,957
45,250 Mark Twain Bancshares 1,742
42,777 ONBANCorp, Inc. 1,444
57,900 Webster Financial 1,730
-------------
9,031
-------------
BUILDING, CONSTRUCTION & FURNISHINGS (5.5%)
50,000 Oakwood Homes 2,231
110,000 Texas Industries 6,793
-------------
9,024
-------------
CHEMICALS (3.1%)
20,000 Bush Boake Allen 580
85,000 Lawter International 914
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
182,000 Lilly Industries $ 2,298
85,400 McWhorter Technologies 1,366
-------------
5,158
-------------
COMMUNICATIONS (1.2%)
111,300 Black Box 1,920
-------------
CONSUMER PRODUCTS & SERVICES (3.6%)
92,000 Alltrista Corp. 2,001
12,300 Coachmen Industries 337
253,600 Prime Hospitality 2,884
24,000 Richfood Holdings 660
-------------
5,882
-------------
DIAGNOSTIC EQUIPMENT (0.7%)
75,700 ADAC Laboratories 1,164
-------------
DIVERSIFIED (2.7%)
24,000 Marcus Corp. 621
107,000 Pentair, Inc. 2,836
55,200 Raven Industries 966
-------------
4,423
-------------
ELECTRONICS (13.6%)
358,400 BMC Industries 8,243
133,600 Continental Circuits 2,071
180,300 Dallas Semiconductor 3,651
58,000 Lincoln Electric Class A 1,435
44,000 Oak Industries 1,051
225,000 Pioneer Standard Electronics 3,150
74,000 SCI Systems 2,743
-------------
22,344
-------------
ENERGY (7.2%)
133,000 Aquila Gas Pipeline 1,496
628,000 Coho Energy 3,375
81,200 Cross Timbers Oil 1,350
247,000 Offshore Logistics 3,088
79,900 Smith International 1,628
56,000 Zeigler Coal Holding 784
-------------
11,721
-------------
ENTERTAINMENT (2.5%)
115,500 Bally Entertainment 1,790
126,375 Casino Data Systems 2,243
-------------
4,033
-------------
</TABLE>
41
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Genesis Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
INDUSTRIAL & COMMERCIAL PRODUCTS & SERVICES (21.5%)
105,000 Alamo Group $ 1,680
100,000 AMTROL, Inc. 1,700
78,200 Dionex Corp. 2,933
135,350 Holophane Corp. 2,470
47,000 Kaydon Corp. 1,551
70,900 Libbey Inc. 1,595
127,400 Material Sciences 1,831
191,700 NN Ball & Roller 4,074
109,000 Reynolds & Reynolds 4,128
28,000 Roper Industries 1,264
72,900 U.S. Can 1,221
147,300 W.H. Brady 3,664
133,500 Wolverine Tube 5,190
145,750 Woodhead Industries 2,004
-------------
35,305
-------------
INSURANCE (3.0%)
63,300 American Heritage Life 1,345
90,000 Gryphon Holdings 1,688
40,000 Orion Capital 1,890
-------------
4,923
-------------
MACHINERY & EQUIPMENT (1.8%)
59,000 Allied Products 1,416
72,450 Graco Inc. 1,449
-------------
2,865
-------------
METALS (6.6%)
145,000 Alumax Inc. 5,238
16,900 Cleveland-Cliffs 752
92,800 Commonwealth Aluminum 1,554
128,500 Kentucky Electric Steel 916
105,000 Steel of West Virginia 1,037
54,700 Varlen Corp. 1,299
-------------
10,796
-------------
OFFICE EQUIPMENT (3.5%)
261,600 DH Technology 5,755
-------------
OIL & GAS (2.6%)
78,500 Cairn Energy USA 853
84,800 Nabors Industries 1,092
182,100 Oceaneering International 2,208
20,000 Tejas Power 170
-------------
4,323
-------------
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
PUBLISHING & BROADCASTING (4.7%)
86,000 Central Newspapers $ 3,150
40,000 Houghton Mifflin 1,770
65,000 McClatchy Newspapers 1,495
26,250 Pulitzer Publishing 1,325
-------------
7,740
-------------
RETAILING (1.2%)
8,551 Carr-Gottstein Foods 38
119,000 Schultz Sav-O Stores 1,964
-------------
2,002
-------------
TEXTILES & APPAREL (1.2%)
33,000 St. John Knits 1,918
-------------
TRANSPORTATION, SHIPPING &
FREIGHT (2.5%)
52,250 Air Express International 1,280
120,000 Harmon Industries 1,635
213,600 Maritrans Inc. 1,148
-------------
4,063
-------------
TOTAL COMMON STOCKS (COST
$114,568) 158,949
-------------
<CAPTION>
Principal
Amount
- ---------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES (3.8%)
$6,200,000 Exxon Credit Corp., 5.10%, due
3/1/96 (COST $6,200) 6,200(3)
-------------
TOTAL INVESTMENTS (100.7%)
(COST $120,768) 165,149(4)
Liabilities, less cash,
receivables and other assets
[(0.7%)] (1,116)
-------------
TOTAL NET ASSETS (100.0%) $ 164,033
-------------
</TABLE>
42
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Guardian Portfolio
<TABLE>
<CAPTION>
TOP TEN EQUITY HOLDINGS
---------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. CITICORP 2.4%
2. General Motors 2.0%
3. Compaq Computer 1.9%
4. Federal National Mortgage Association 1.9%
5. Chrysler Corp. 1.9%
6. AT&T Corp. 1.7%
7. Foundation Health 1.6%
8. Texas Instruments 1.4%
9. Digital Equipment 1.4%
10. Wells Fargo 1.4%
</TABLE>
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ------------ ---------------------
<C> <S> <C>
COMMON STOCKS (82.6%)
AUTOMOTIVE (4.4%)
1,950,000 Chrysler Corp. $ 109,931
1,076,000 Ford Motor 33,625
2,270,000 General Motors 116,337
-----------
259,893
-----------
BANKING (6.4%)
1,265,000 Bank of Boston 61,511
1,800,000 CITICORP 140,400
504,000 First Tennessee National 15,876
877,500 First Union Corp. 53,089
900,000 Signet Banking 23,400
325,000 Wells Fargo 80,153
-----------
374,429
-----------
CHEMICALS (0.6%)
865,500 IMC Global 35,702
-----------
CONSUMER GOODS & SERVICES (1.4%)
590,000 Kellwood Co. 8,924
437,500 Mattel Inc. 14,547
230,000 Nike, Inc. 14,921(2)
2,636,900 Owens-Illinois 42,850
-----------
81,242
-----------
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ------------ ---------------------
<C> <S> <C>
DRUGS (0.9%)
109,500 Johnson & Johnson $ 10,238(2)
205,000 Pfizer, Inc. 13,504(2)
500,000 Zeneca Group ADR 28,750
-----------
52,492
-----------
FINANCIAL SERVICES (10.7%)
212,241 Alleghany Corp. 41,811
2,250,000 Capital One Financial 60,187
3,450,000 Countrywide Credit
Industries 72,450
419,200 CWM Mortgage Holdings 6,602
849,600 Dean Witter, Discover 45,666
700,000 Federal Home Loan
Mortgage 57,750
3,520,000 Federal National Mortgage
Association 111,320
1,375,000 First USA 68,922
270,000 Household International 18,158
1,117,650 MBNA Corp. 31,574
835,000 Merrill Lynch 48,117
492,300 MGIC Investment 28,676
510,000 Security Capital
Industrial Trust 9,116
1,040,000 Spieker Properties 26,910
-----------
627,259
-----------
FOREST PRODUCTS & PAPER (4.7%)
390,000 Caraustar Industries 8,580
1,400,000 Champion International 56,000
600,000 Mead Corp. 30,000
676,300 Rayonier Inc. 23,163
315,000 Riverwood International 6,261
2,200,000 Stone Container 30,250
765,000 Temple-Inland 30,791
900,000 Union Camp 41,962
897,000 Willamette Industries 47,093
-----------
274,100
-----------
HEALTH CARE (4.0%)
2,410,000 Foundation Health 93,990
4,500 Transport Holdings 199
1,380,000 U.S. Healthcare 67,275
</TABLE>
43
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- --------------------------------------------------------------------------------
Guardian Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ------------ ---------------------
<C> <S> <C>
600,000 United Healthcare $ 39,150
1,022,000 Wellpoint Health Networks 34,620
-----------
235,234
-----------
HEAVY INDUSTRY (3.8%)
40,000 Asea AB ADR 4,020
11,830 Asea Brown Boveri
(Ordinary Shares) 14,170
4,122,200 Coltec Industries 56,680(5)
700,000 Rockwell International 39,900
900,000 Tenneco Inc. 50,287
1,471,000 Varity Corp. 55,530
-----------
220,587
-----------
INDUSTRIAL GOODS & SERVICES (1.6%)
1,600,000 American Standard 45,200
888,400 Eaton Corp. 51,416
-----------
96,616
-----------
INSURANCE (5.5%)
520,000 American International
Group 50,245
292,500 Chubb Corp. 28,409
1,412,900 FHP International 46,272
207,000 General Re 29,782
2,675,000 Humana Inc. 65,537
763,000 National Re 23,844
263,500 Transatlantic Holdings 18,511
955,000 Travelers Group 63,866
-----------
326,466
-----------
MEDIA & ENTERTAINMENT (6.9%)
870,000 A.H. Belo 30,450
300,000 Comcast Corp. Class A 5,775
3,075,000 Comcast Corp. Class A
Special 60,347
1,450,000 Harcourt General 62,894
730,900 Jones Intercable Inc.
Class A 10,050
389,600 Omnicom Group 15,925
401,700 R.R. Donnelley 14,461
1,350,000 Time Warner 57,712
1,352,000 United International
Holdings 22,815
800,000 Viacom Inc. Class B 31,400
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ------------ ---------------------
<C> <S> <C>
1,530,000 Vodafone Group ADR $ 54,124
640,000 Walt Disney 41,920
-----------
407,873
-----------
MISCELLANEOUS (0.4%)
1,000,000 Cyprus Amax Minerals 25,875
-----------
OIL & GAS (5.5%)
263,158 British Petroleum ADS 26,414
219,200 Coastal Corp. 8,056
491,000 Kerr-McGee 29,276
900,000 Murphy Oil 37,575
880,500 Norsk Hydro ADS 37,531
1,100,000 Parker & Parsley
Petroleum 23,650
832,900 Seagull Energy 15,721
621,900 Union Pacific Resources
Group 16,014
1,500,000 Unocal Corp. 45,000
1,550,000 Vastar Resources 49,019
498,600 Western Atlas 26,239
707,200 Zeigler Coal Holding 9,901
-----------
324,396
-----------
RETAIL (2.2%)
140,000 Barnes & Noble 4,042
1,840,200 Fingerhut Cos. 25,533
515,000 Gap Inc. 27,617
510,000 May Department Stores 23,779
1,055,300 Toys "R" Us 25,195
1,150,000 Wal-Mart Stores 24,438
-----------
130,604
-----------
STEEL (0.3%)
553,100 AK Steel Holding 19,981
-----------
TECHNOLOGY (14.6%)
1,400,000 Applied Materials 50,050
1,450,000 Arrow Electronics 71,412
1,250,000 Avnet, Inc. 62,344
2,250,000 Compaq Computer 113,906
595,000 Dell Computer 20,453
1,150,000 Digital Equipment 82,800
500,000 IBM 61,312
875,000 Integrated Device
Technology 10,500
575,000 Intel Corp. 33,817
1,130,000 Komag, Inc. 35,454
</TABLE>
44
<PAGE>
February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Guardian Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ------------ ---------------------
<C> <S> <C>
1,100,000 Micron Technology $ 35,200
2,700,000 National Semiconductor 42,188
349,000 Perkin-Elmer 16,054
1,350,000 Philips Electronics 55,856
970,000 Seagate Technology 63,293
1,675,000 Sequent Computer Systems 19,681(5)
1,700,000 Texas Instruments 84,788
-----------
859,108
-----------
TELECOMMUNICATIONS (4.0%)
1,900,000 Airtouch Communications 58,900
1,050,000 Cellular Communications
Class A 54,075
802,900 Frontier Corp. 24,087
520,492 IntelCom Group 8,393
1,275,000 Nokia Corp. ADR 44,466
2,200,000 Tele-Communications, Inc.
Class A 46,200
-----------
236,121
-----------
TELEPHONE UTILITIES (1.7%)
1,590,000 AT&T Corp. 101,164
-----------
TRANSPORTATION (3.0%)
800,000 Canadian Pacific 15,800
575,300 Consolidated Freightways 14,095
980,000 CSX Corp. 43,977
400,000 Delta Air Lines 31,200(2)
1,257,000 TNT Freightways 26,083
650,000 Union Pacific 42,900
-----------
174,055
-----------
TOTAL COMMON STOCKS (COST
$3,652,334) 4,863,197
-----------
PREFERRED STOCKS (0.4%)
250,000 FHP International, 5% 7,344
250,000 Philippine Long Distance
Cv., 7%, GDS 14,125
-----------
TOTAL PREFERRED STOCKS
(COST $18,149) 21,469
-----------
<CAPTION>
Market
Principal Value(1)
Amount (000's omitted)
- ------------ ---------------------
<C> <S> <C>
CONVERTIBLE BONDS (0.4%)
$ 8,750,000 AMR Corp., Cv. Deb.,
6.125%, due 11/1/24 $ 9,975
15,000,000 International CableTel
Inc., Cv. Sub. Notes,
7.25%, due 4/15/05 16,538
-----------
TOTAL CONVERTIBLE BONDS
(COST $22,085) 26,513
-----------
U.S. TREASURY SECURITIES (16.2%)
$949,710,000 U.S. Treasury Bills,
4.68% - 5.375%, due
3/7/96 - 8/15/96 936,809
15,000,000 U.S. Treasury Notes,
8.00%, due 5/15/01 16,474
-----------
TOTAL U.S. TREASURY
SECURITIES (COST
$951,516) 953,283
-----------
SHORT-TERM CORPORATE NOTES (1.1%)
$ 65,260,000 Chevron Oil Finance Co.,
5.053% & 5.199%, due
3/1/96 & 3/6/96 65,260
750,000 General Electric Capital
Corp., 5.20%, due 3/1/96 750
-----------
TOTAL SHORT-TERM
CORPORATE NOTES (COST
$66,010) 66,010(3)
-----------
TOTAL INVESTMENTS
(100.7%) (COST
$4,710,094) 5,930,472(4)
Liabilities, less cash,
receivables and other
assets [(0.7%)] (39,683)
-----------
TOTAL NET ASSETS (100.0%) $5,890,789
-----------
</TABLE>
45
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- --------------------------------------------------------------------------------
Manhattan Portfolio
<TABLE>
<CAPTION>
TOP TEN EQUITY HOLDINGS
---------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. CITICORP 3.3%
2. Harrah's Entertainment 2.8%
3. GTECH Holdings 2.6%
4. Texas Instruments 2.5%
5. Wells Fargo 2.4%
6. United Healthcare 2.4%
7. First USA 2.2%
8. Intel Corp. 2.2%
9. SAP AG 2.2%
10. General Nutrition 2.1%
</TABLE>
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ---------- ---------------------
<C> <S> <C>
COMMON STOCKS (99.2%)
CHEMICALS (1.0%)
110,000 Hercules Inc. $ 6,600
--------
COMMUNICATIONS (12.2%)
420,000 Airtouch Communications 13,020
6,140,000 Australis Media 4,224
450,000 Comcast Corp. Class A Special 8,831
150,000 Comcast UK Cable Partners Limited 1,875
341,000 International CableTel 8,525
25,000 Mannesmann AG ADR 8,939
345,000 Tele-Communications, Inc. Class A 7,245
87,500 Tele-Communications, Inc. Class A
Liberty Media Group 2,417
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ---------- ---------------------
<C> <S> <C>
120,000 Time Warner $ 5,130
65,000 Vanguard Cellular Systems 1,430
170,000 Viacom Inc. Class B 6,673
345,000 Vodafone Group ADR 12,204
--------
80,513
--------
CONSUMER GOODS & SERVICES (8.3%)
342,300 Authentic Fitness 9,541
280,000 CUC International 9,065
255,000 Franklin Quest 5,100
140,000 Industrie Natuzzi ADR 7,000
120,000 Luxottica S.p.A. ADR 8,430
268,000 Nine West 10,519
50,000 Nu-Kote Holding 825
465,000 Supercuts Inc. 2,383
95,000 Timberland Co. 1,924
--------
54,787
--------
DRUGS & HEALTH CARE (10.9%)
495,000 Coventry Corp. 8,786
440,000 Humana Inc. 10,780
95,000 i-STAT Corp. 3,610
90,000 PacifiCare Health Systems Class B 8,460
165,000 R.P. Scherer 7,260
185,000 Teva Pharmaceutical ADR 8,001
200,000 U.S. Healthcare 9,750
240,000 United Healthcare 15,660
--------
72,307
--------
ENTERTAINMENT (11.6%)
358,000 Argosy Gaming 3,222
225,000 Circus Circus Enterprises 7,172
</TABLE>
46
<PAGE>
February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Manhattan Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ---------- ---------------------
<C> <S> <C>
530,000 GTECH Holdings $ 17,225
685,000 Harrah's Entertainment 18,581
720,000 Players International 7,020
390,000 Promus Hotel 10,140
570,000 Showboat, Inc. 13,680
--------
77,040
--------
FINANCIAL SERVICES (16.0%)
305,000 Bear Stearns 7,396
480,000 Capital One Financial 12,840
280,000 CITICORP 21,840
205,000 Finova Group 10,942
295,000 First USA 14,787
375,000 MBNA Corp. 10,594
250,000 Morgan Stanley Group 11,719
65,000 Wells Fargo 16,030
--------
106,148
--------
HOME BUILDERS (0.5%)
390,000 Schuler Homes 3,022
--------
INSURANCE (6.6%)
100,000 ACE Ltd. 4,675
40,000 American International Group 3,865
80,000 EXEL Ltd. 5,580
25,000 Highlands Insurance 510
475,000 Life Partners Group 7,303
380,000 Penncorp Financial Group 12,445
275,000 Sphere Drake Holdings 3,025
85,000 Transatlantic Holdings 5,971
--------
43,374
--------
PAPER (1.5%)
690,000 Abitibi-Price 9,660
--------
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ---------- ---------------------
<C> <S> <C>
REAL ESTATE (0.1%)
25,000 JDN Realty $ 556
--------
RESTAURANTS (7.7%)
320,000 Au Bon Pain 2,405
455,000 Cheesecake Factory 11,318
416,000 CKE Restaurants 6,760
506,800 HomeTown Buffet 5,892
440,000 IHOP Corp. 11,935
525,000 Sonic Corp. 10,697
404,000 Spaghetti Warehouse 1,969(5)
--------
50,976
--------
SPECIALTY RETAIL (8.6%)
625,000 General Nutrition 14,141
460,000 Lechters Inc. 2,300
335,000 Office Depot 6,993
175,000 Revco D.S. 4,856
265,000 Rite Aid 8,348
330,000 Sports & Recreation 2,351
325,000 Staples Inc. 8,410
295,000 Tops Appliance City 811
150,000 Viking Office Products 8,531
--------
56,741
--------
TECHNOLOGY (13.4%)
120,000 Applied Materials 4,290
245,000 Intel Corp. 14,409
335,000 KLA Instruments 8,040
425,000 Micron Technology 13,600
220,000 Motorola, Inc. 11,935
170,000 Nokia Corp. ADR 5,929
92,200 SAP AG 14,330
330,000 Texas Instruments 16,459
--------
88,992
--------
</TABLE>
47
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Manhattan Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ---------- ---------------------
<C> <S> <C>
TRANSPORTATION (0.8%)
250,000 RailTex Inc. $ 5,625
--------
TOTAL COMMON STOCKS (COST $521,438) 656,341
--------
<CAPTION>
Principal
Amount
- ----------
<C> <S> <C>
CONVERTIBLE BONDS (0.1%)
$1,300,000 Australis Media, Cv. Deb. (COST $984) 875
--------
U.S. TREASURY SECURITIES (0.8%)
$5,675,000 U.S. Treasury Bills, 4.90% - 5.24%, due
4/18/96 - 6/20/96 (COST $5,598) 5,599
--------
<CAPTION>
Market
Principal Value(1)
Amount (000's omitted)
- ---------- ---------------------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES (0.5%)
$3,100,000 Exxon Credit Corp., 5.10%, due 3/1/96
(COST $3,100) $ 3,100(3)
--------
TOTAL INVESTMENTS (100.6%) (COST
$531,120) 665,915(4)
Liabilities, less cash, receivables and
other assets [(0.6%)] (4,148)
--------
TOTAL NET ASSETS (100.0%) $661,767
--------
</TABLE>
48
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Partners Portfolio
<TABLE>
<CAPTION>
TOP TEN EQUITY HOLDINGS
---------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. EXEL Ltd. 2.6%
2. CITICORP 2.5%
3. Time Warner 2.4%
4. W.R. Grace 2.2%
5. Comcast Corp. Class A Special 2.1%
6. American Express 2.0%
7. Price/Costco 2.0%
8. Progressive Corp. 2.0%
9. duPont 1.9%
10. Revco D.S. 1.9%
</TABLE>
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ----------- ---------------------
<C> <S> <C>
COMMON STOCKS (95.4%)
AEROSPACE (2.0%)
360,300 Litton Industries $ 18,195
256,100 Lockheed Martin 19,528
-----------
37,723
-----------
AUTOMOBILE MANUFACTURING (1.3%)
420,000 Chrysler Corp. 23,677
-----------
BANKING & FINANCIAL SERVICES (11.9%)
828,900 American Express 38,129
350,000 Bank of New York 18,156
732,300 Capital One Financial 19,589
591,200 CITICORP 46,114
1,162,900 Countrywide Credit Industries 24,421
177,700 First Interstate Bancorp 29,032
344,800 First USA 17,283
199,600 Franklin Resources 11,502
398,300 State Street Boston 18,023
-----------
222,249
-----------
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ----------- ---------------------
<C> <S> <C>
BUILDING, CONSTRUCTION & REFURNISHING (2.1%)
293,500 Lennar Corp. $ 7,044
1,200,000 USG Corp. 31,800
-----------
38,844
-----------
CHEMICALS (4.1%)
467,000 duPont 35,725
600,000 W.R. Grace 41,400
-----------
77,125
-----------
COMMUNICATIONS (0.9%)
500,000 Vodafone Group ADR 17,687
-----------
DIVERSIFIED (4.7%)
800,000 Harley-Davidson 28,700
90,000 Mannesmann AG ADR 32,180
200,000 Monsanto Co. 26,925
-----------
87,805
-----------
ELECTRONICS (3.1%)
625,900 Loral Corp. 29,496
286,900 Raychem Corp. 18,613
181,000 Varian Associates 9,412
-----------
57,521
-----------
ENTERTAINMENT (5.9%)
420,000 Circus Circus Enterprises 13,387
700,000 Mirage Resorts 32,463
783,200 Royal Caribbean Cruises 18,307
1,066,600 Time Warner 45,597
-----------
109,754
-----------
FOOD & DRUG STORES (1.9%)
1,271,400 Revco D.S. 35,281
-----------
FOOD & TOBACCO (4.7%)
392,100 American Brands 17,792
970,000 IBP, Inc. 24,250
</TABLE>
49
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman
- --------------------------------------------------------------------------------
Partners Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ----------- ---------------------
<C> <S> <C>
849,280 RJR Nabisco Holdings $ 28,557
823,200 Tyson Foods 18,522
-----------
89,121
-----------
HEALTH CARE (4.2%)
150,000 Alza Corp. 4,987
641,900 Columbia/HCA Healthcare 35,144
975,000 Humana Inc. 23,888
597,000 Value Health 15,447
-----------
79,466
-----------
INDUSTRIAL GOODS & SERVICES (8.8%)
600,000 AK Steel Holding 21,675
666,100 Crown Cork & Seal 31,390
311,900 Eaton Corp. 18,051
600,000 Goodyear Tire & Rubber 28,500
1,387,500 LTV Corp. 17,691
1,455,000 Owens-Illinois 23,644
292,900 Westinghouse Electric 5,419
440,000 XTRA Corp. 19,195
-----------
165,565
-----------
INSURANCE (8.3%)
123,800 CIGNA Corp. 14,670
1,000,000 Equitable Cos. 25,250
700,000 EXEL Ltd. 48,825
641,775 Orion Capital 30,324
800,000 Progressive Corp. 36,800
-----------
155,869
-----------
MEDIA (5.8%)
534,700 American Media 2,139
7,874,550 Australis Media 5,418
2,000,000 Comcast Corp. Class A Special 39,250
430,000 Infinity Broadcasting 17,737
130,000 Knight-Ridder 9,003
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ----------- ---------------------
<C> <S> <C>
524,500 United International Holdings $ 8,851
656,600 Viacom Inc. Class B 25,772
-----------
108,170
-----------
MINING (0.4%)
175,000 Freeport-McMoRan 7,459
-----------
OIL & GAS (4.0%)
700,900 Apache Corp. 18,223
536,300 Noble Affiliates 16,424
487,000 Tejas Gas 23,254
600,000 Unocal Corp. 18,000
-----------
75,901
-----------
PAPER & FOREST PRODUCTS (1.9%)
300,000 Consolidated Papers 15,338
901,000 Fort Howard 20,723
-----------
36,061
-----------
PHARMACEUTICAL (1.5%)
280,000 Warner-Lambert 27,685
-----------
PUBLISHING & BROADCASTING (1.1%)
300,000 Gannett Co. 20,400
-----------
REAL ESTATE (6.2%)
500,000 Beacon Properties 13,125
350,700 CBL & Associates Properties 7,233
460,000 Crescent Real Estate Equities 15,123
40,000 Del Webb 720
492,300 Hospitality Properties Trust 13,661
1,307,700 Host Marriott 17,000
111,460 Host Marriott Services 738
316,700 Irvine Apartment Communities 6,374
377,000 Macerich Co. 7,304
360,000 Simon Property Group 8,415
</TABLE>
50
<PAGE>
February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Partners Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Number Value(1)
of Shares (000's omitted)
- ----------- ---------------------
<C> <S> <C>
300,000 Starwood Lodging Trust $ 10,313
423,100 Vornado Realty Trust 15,919
-----------
115,925
-----------
RETAILING (1.6%)
628,200 Harcourt General 27,248
200,000 Woolworth Corp. 2,400
-----------
29,648
-----------
RETAILING & APPAREL (3.1%)
2,200,000 Price/Costco 37,950
906,300 Stop & Shop 20,845
-----------
58,795
-----------
TECHNOLOGY (5.9%)
300,000 Applied Materials 10,725
200,000 Autodesk, Inc. 7,075
505,000 Cypress Semiconductor 6,439
600,000 Texas Instruments 29,925
1,000,000 Western Digital 20,875
270,800 Xerox Corp. 35,272
-----------
110,311
-----------
TOTAL COMMON STOCKS (COST $1,444,805) 1,788,042
-----------
PREFERRED STOCKS (1.1%)
3,000,000 RJR Nabisco, Ser. C, Dep. Shares (COST
$20,141) 20,625
-----------
WARRANTS (0.0%)
180,000 American Media, Expire May 1, 1997
(COST $0) 2
-----------
<CAPTION>
Market
Number Value(1)
of Units (000's omitted)
- ----------- ---------------------
<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) $ 310
-----------
<CAPTION>
Principal
Amount
- -----------
<C> <S> <C>
CONVERTIBLE BONDS (0.7%)
$13,301,205 Australis Media, Cv. Deb. 8,948
4,500,000 Apache Corp., Cv. Sub. Deb., 6.00%, due
1/15/02 4,883(6)
-----------
TOTAL CONVERTIBLE BONDS (COST $14,711) 13,831
-----------
U.S. TREASURY SECURITIES (3.8%)
$71,580,000 U.S. Treasury Bills, 4.74% - 5.33%, due
4/18/96 - 8/15/96 (COST $70,375) 70,362
-----------
SHORT-TERM CORPORATE NOTES (0.1%)
$ 2,700,000 Exxon Credit Corp., 5.10%, due 3/1/96
(COST $2,700) 2,700(3)
-----------
TOTAL INVESTMENTS (101.1%) (COST
$1,552,938) 1,895,872(4)
Liabilities, less cash, receivables and
other assets [(1.1%)] (21,263)
-----------
TOTAL NET ASSETS (100.0%) $1,874,609
-----------
</TABLE>
51
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
February 29, 1996 (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. The Portfolios
value all other securities by a method that the trustees of Equity Managers
Trust believe accurately reflects fair value.
2)The following securities were held in escrow at February 29, 1996 to cover
outstanding call options written:
<TABLE>
<CAPTION>
SECURITIES AND MARKET VALUE PREMIUM ON MARKET VALUE
NEUBERGER&BERMAN SHARES OPTIONS OF SECURITIES OPTIONS OF OPTIONS
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FOCUS PORTFOLIO 50,000 United Healthcare $ 3,262,500 $ 73,498 $ 75,000
March 1996 @ 65
- ---------------------------------------------------------------------------------------------
GUARDIAN PORTFOLIO 200,000 Delta Air Lines $15,600,000 $743,975 $ 625,000
July 1996 @ 85
109,500 Johnson & Johnson $10,238,250 $465,808 $1,053,938
April 1996 @ 85
200,000 Nike, Inc. $12,975,000 $818,973 $1,400,000
April 1996 @ 60
205,000 Pfizer, Inc. $13,504,375 $506,333 $1,230,000
March 1996 @ 60
</TABLE>
3)At cost, which approximates market value.
4)At February 29, 1996, selected Portfolio information on a Federal income tax
basis was as follows:
<TABLE>
<CAPTION>
GROSS GROSS
UNREALIZED UNREALIZED NET UNREALIZED
NEUBERGER&BERMAN COST APPRECIATION DEPRECIATION APPRECIATION
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FOCUS $ 805,381,000 $ 361,718,000 $ 29,168,000 $ 332,550,000
- -------------------------------------------------------------------------------------------------------
GENESIS 120,831,000 47,339,000 3,021,000 44,318,000
- -------------------------------------------------------------------------------------------------------
GUARDIAN 4,710,418,000 1,323,622,000 103,568,000 1,220,054,000
- -------------------------------------------------------------------------------------------------------
MANHATTAN 531,120,000 176,654,000 41,859,000 134,795,000
- -------------------------------------------------------------------------------------------------------
PARTNERS 1,555,024,000 356,846,000 15,998,000 340,848,000
- -------------------------------------------------------------------------------------------------------
</TABLE>
5)Affiliated Issuer (see Note E of Notes to Financial Statements).
6)Security exempt from registration under the Securities Act of 1933. This
security may be resold in transactions exempt from registration, normally to
qualified institutional buyers under Rule 144A. At February 29, 1996, this
security amounted to $4,882,500 or .3% of net assets for Neuberger&Berman
Partners Portfolio.
SEE NOTES TO FINANCIAL STATEMENTS
52
<PAGE>
This page has been left blank intentionally.
53
<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*
(Notes A & E) -- see Schedule of Investments:
Unaffiliated issuers $ 1,137,931 $ 165,149
Non-controlled affiliated issuers -- --
----------------------------
1,137,931 165,149
Cash 245 10
Deferred organization costs (Note A) 21 5
Dividends and interest receivable 1,328 70
Prepaid expenses and other assets 23 16
Receivable for option contracts written 74 --
Receivable for securities sold 10,140 228
----------------------------
1,149,762 165,478
----------------------------
LIABILITIES
Option contracts written, at market value (Note
A) 75 --
Payable for collateral on securities loaned (Note
A) 676 --
Payable for securities purchased 2,349 1,319
Payable to investment manager (Note B) 457 93
Accrued expenses 104 33
----------------------------
3,661 1,445
----------------------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL
INTERESTS $ 1,146,101 $ 164,033
----------------------------
NET ASSETS consist of:
Paid-in capital $ 813,159 $ 119,652
Net unrealized appreciation in value of
investments and option contracts written 332,942 44,381
----------------------------
NET ASSETS $ 1,146,101 $ 164,033
----------------------------
*Cost of investments:
Unaffiliated issuers $ 804,987 $ 120,768
Non-controlled affiliated issuers -- --
----------------------------
Total cost of investments $ 804,987 $ 120,768
----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
54
<PAGE>
February 29, 1996 (Unaudited)
- ----------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
GUARDIAN MANHATTAN PARTNERS
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at market value*
(Notes A & E) -- see Schedule of Investments:
Unaffiliated issuers $ 5,854,111 $ 663,946 $ 1,895,872
Non-controlled affiliated issuers 76,361 1,969 --
-------------------------------------------
5,930,472 665,915 1,895,872
Cash 93 93 57
Deferred organization costs (Note A) 62 24 43
Dividends and interest receivable 7,284 214 2,285
Prepaid expenses and other assets 107 17 51
Receivable for option contracts written -- -- --
Receivable for securities sold 66,434 5,473 4,861
-------------------------------------------
6,004,452 671,736 1,903,169
-------------------------------------------
LIABILITIES
Option contracts written, at market value (Note A) 4,309 -- --
Payable for collateral on securities loaned (Note
A) 36,048 2,918 --
Payable for securities purchased 70,863 6,700 27,765
Payable to investment manager (Note B) 2,045 279 707
Accrued expenses 398 72 88
-------------------------------------------
113,663 9,969 28,560
-------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL
INTERESTS $ 5,890,789 $ 661,767 $ 1,874,609
-------------------------------------------
NET ASSETS consist of:
Paid-in capital $ 4,672,185 $ 526,972 $ 1,531,675
Net unrealized appreciation in value of investments
and option contracts written 1,218,604 134,795 342,934
-------------------------------------------
NET ASSETS $ 5,890,789 $ 661,767 $ 1,874,609
-------------------------------------------
*Cost of investments:
Unaffiliated issuers $ 4,625,106 $ 525,603 $ 1,552,938
Non-controlled affiliated issuers 84,988 5,517 --
-------------------------------------------
Total cost of investments $ 4,710,094 $ 531,120 $ 1,552,938
-------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
55
<PAGE>
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
FOCUS GENESIS
(000'S OMITTED) PORTFOLIO PORTFOLIO
---------------------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividend income -- unaffiliated issuers $ 6,495 $ 721
Interest income 1,009 45
Foreign taxes withheld (Note A) (15) --
---------------------------
Total income 7,489 766
---------------------------
Expenses:
Investment management fee (Note B) 2,652 624
Accounting fees 5 5
Amortization of deferred organization and initial
offering expenses (Note A) 4 1
Auditing fees 20 11
Custodian fees 108 41
Insurance expense 12 2
Legal fees 11 9
Trustees' fees and expenses 12 3
Miscellaneous -- 10
---------------------------
Total expenses 2,824 706
Fee waived by the investment manager (Note B) -- (73)
---------------------------
Total net expenses 2,824 633
---------------------------
Net investment income 4,665 133
---------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
OPTION CONTRACTS WRITTEN
Net realized gain on investments sold in
unaffiliated issuers 17,826 2,362
Net realized loss on option contracts written (Note
A) (372) --
Change in net unrealized appreciation of
investments and option contracts written 25,124 10,795
---------------------------
Net gain on investments and option contracts
written 42,578 13,157
---------------------------
Net increase in net assets resulting from
operations $ 47,243 $ 13,290
---------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
56
<PAGE>
For the Six Months Ended February 29, 1996 (Unaudited)
- ----------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
GUARDIAN MANHATTAN PARTNERS
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividend income -- unaffiliated issuers $ 32,710 $ 2,281 $ 13,809
Interest income 22,185 208 1,257
Foreign taxes withheld (Note A) (319) (33) (33)
------------------------------------------------
Total income 54,576 2,456 15,033
------------------------------------------------
Expenses:
Investment management fee (Note B) 11,500 1,710 4,105
Accounting fees 5 5 5
Amortization of deferred organization and initial
offering expenses (Note A) 13 4 9
Auditing fees 24 22 21
Custodian fees 395 90 158
Insurance expense 56 9 21
Legal fees 9 9 9
Trustees' fees and expenses 40 7 14
Miscellaneous -- -- --
------------------------------------------------
Total expenses 12,042 1,856 4,342
Fee waived by the investment manager (Note B) -- -- --
------------------------------------------------
Total net expenses 12,042 1,856 4,342
------------------------------------------------
Net investment income 42,534 600 10,691
------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
OPTION CONTRACTS WRITTEN
Net realized gain on investments sold in
unaffiliated issuers 137,253 44,990 102,166
Net realized loss on option contracts written (Note
A) (3,767) -- --
Change in net unrealized appreciation of
investments and option contracts written 82,392 (22,008) 84,761
------------------------------------------------
Net gain on investments and option contracts
written 215,878 22,982 186,927
------------------------------------------------
Net increase in net assets resulting from
operations $ 258,412 $ 23,582 $ 197,618
------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
57
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
FOCUS PORTFOLIO GENESIS PORTFOLIO
Six Months Six Months
Ended Year Ended Year
February 29, Ended February 29, Ended
1996 August 31, 1996 August 31,
(000'S OMITTED) (UNAUDITED) 1995 (UNAUDITED) 1995
-------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 4,665 $ 7,496 $ 133 $ 335
Net realized gain on investments
sold and option contracts written 17,454 50,732 2,362 6,666
Change in net unrealized
appreciation of investments and
option contracts written 25,124 139,750 10,795 17,448
-------------------------------------------------------------
Net increase in net assets resulting
from operations 47,243 197,978 13,290 24,449
-------------------------------------------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 164,967 157,842 21,533 34,636
Reductions (35,282) (31,658) (12,950) (55,494)
-------------------------------------------------------------
Net increase (decrease) in net
assets resulting from transactions
in investors' beneficial interests 129,685 126,184 8,583 (20,858)
-------------------------------------------------------------
NET INCREASE IN NET ASSETS 176,928 324,162 21,873 3,591
NET ASSETS:
Beginning of period 969,173 645,011 142,160 138,569
-------------------------------------------------------------
End of period $ 1,146,101 $ 969,173 $ 164,033 $ 142,160
-------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
58
<PAGE>
- ----------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
GUARDIAN PORTFOLIO MANHATTAN PORTFOLIO PARTNERS PORTFOLIO
Six Months Six Months Six Months
Ended Ended Ended
February Year February Year February Year
29, Ended 29, Ended 29, Ended
1996 August 31, 1996 August 31, 1996 August 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 42,534 $ 53,790 $ 600 $ 2,206 $ 10,691 $ 15,524
Net realized gain on investments
sold and option contracts written 133,486 124,394 44,990 44,742 102,166 165,254
Change in net unrealized
appreciation of investments and
option contracts written 82,392 627,968 (22,008) 85,917 84,761 109,257
---------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 258,412 806,152 23,582 132,865 197,618 290,035
---------------------------------------------------------------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 1,065,364 1,413,464 40,173 75,821 110,700 100,895
Reductions (46,183) (86,756) (47,394) (85,015) (57,235) (107,688)
---------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from transactions
in investors' beneficial interests 1,019,181 1,326,708 (7,221) (9,194) 53,465 (6,793)
---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS 1,277,593 2,132,860 16,361 123,671 251,083 283,242
NET ASSETS:
Beginning of period 4,613,196 2,480,336 645,406 521,735 1,623,526 1,340,284
---------------------------------------------------------------------------------
End of period $5,890,789 $ 4,613,196 $ 661,767 $ 645,406 $1,874,609 $ 1,623,526
---------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
59
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 29, 1996 (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
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 (the "1940 Act"). 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 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 Portfolios' schedule of investments.
3) FOREIGN CURRENCY TRANSLATION: The accounting records of the Portfolios are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars at the current rate of exchange of such currency against the U.S.
dollar to determine the value of investments, other assets and liabilities.
Purchase and sale prices of securities, and income and expenses are
translated into U.S. dollars at the prevailing rate of exchange on the
respective dates of such transactions.
4) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date and interest income, including accretion of discount on
short-term investments (adjusted for original issue discount, where
applicable), is recorded on the accrual basis. Realized gains and losses from
securities transactions are recorded on the basis of identified cost.
5) 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
60
<PAGE>
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.
6) FOREIGN TAXES: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
7) 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 29, 1996, the
unamortized balance of such expenses amounted to $21,130, $4,656, $61,987,
$23,589, and $42,969, for Focus, Genesis, Guardian, Manhattan, and Partners,
respectively.
8) EXPENSE ALLOCATION: The Portfolios bear all costs of operations. Expenses
incurred by Managers Trust with respect to any two or more Portfolios are
allocated in proportion to the net assets of such Portfolios, except where 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.
9) 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. In general, written call options
may serve as a partial hedge against decreases in value in the underlying
securities to the extent of the 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 29, 1996:
<TABLE>
<CAPTION>
VALUE
WHEN
FOCUS NUMBER WRITTEN
- --------------------------------------------------------------
<S> <C> <C>
CONTRACTS OUTSTANDING 8/31/95 850 $ 737,316
CONTRACTS WRITTEN 3,800 1,705,364
CONTRACTS EXPIRED (1,800) (208,343)
CONTRACTS EXERCISED (500) (154,745)
CONTRACTS CLOSED (1,850) (2,006,094)
-------------------------
CONTRACTS OUTSTANDING 2/29/96 500 $ 73,498
-------------------------
</TABLE>
61
<PAGE>
<TABLE>
<CAPTION>
VALUE
GUARDIAN NUMBER WHEN WRITTEN
- ------------------------------------------------------------------
<S> <C> <C>
CONTRACTS OUTSTANDING 8/31/95 8,650 $ 7,625,995
CONTRACTS WRITTEN 16,150 9,878,556
CONTRACTS EXPIRED 0 0
CONTRACTS EXERCISED (4,005) (1,393,627)
CONTRACTS CLOSED (13,650) (13,575,835)
-----------------------------
CONTRACTS OUTSTANDING 2/29/96 7,145 $ 2,535,089
-----------------------------
</TABLE>
10)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 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 29, 1996, Focus, Guardian,
Manhattan, and Partners lent securities to Neuberger. At February 29, 1996,
cash collateral received by Focus, Guardian, and Manhattan 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
62
<PAGE>
fee borne directly by Genesis and indirectly by Neuberger&Berman Genesis Trust
to reduce the annual fee by 0.10% per annum of average daily net assets of
Genesis, 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. Neuberger is retained by Management to
furnish it with investment recommendations and research information without cost
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.
Each Portfolio has an expense offset arrangement included in its custodian
contract. The impact of this arrangement on each Portfolio's custodian expense,
reflected in the Statement of Operations, is less than .01% of the Portfolio's
average daily net assets.
NOTE C -- SECURITIES TRANSACTIONS:
During the six months ended February 29, 1996, there were purchase and sale
transactions (excluding short-term securities and option contracts written) as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
- ---------------------------------------------------------------------
<S> <C> <C>
FOCUS $ 228,810,346 $ 135,496,240
GENESIS 22,937,196 19,144,438
GUARDIAN 1,346,566,189 609,297,720
MANHATTAN 149,189,792 160,224,355
PARTNERS 706,255,512 656,698,687
</TABLE>
During the six months ended February 29, 1996, there were brokerage
commissions on securities paid to Neuberger and other brokers as follows:
<TABLE>
<CAPTION>
NEUBERGER OTHER BROKERS TOTAL
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
FOCUS $ 271,188 $ 138,046 $ 409,234
GENESIS 28,086 49,559 77,645
GUARDIAN 1,375,158 1,042,052 2,417,210
MANHATTAN 219,162 143,373 362,535
PARTNERS 1,266,090 832,921 2,099,011
</TABLE>
In addition, Neuberger's share of the total interest income earned for the
six months ended February 29, 1996, from the collateralization of securities
loaned to or through Neuberger was $237,518, $1,128,624, $92,149, and $65,477,
for Focus, Guardian, Manhattan, and Partners, respectively.
NOTE D -- LINE OF CREDIT:
At February 29, 1996, 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
63
<PAGE>
agreement bear interest at a rate based on the Morgan Bid Rate Program. For this
line of credit, Genesis has been assessed an annual 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 29, 1996, nor has
Genesis utilized the line of credit at anytime to date.
NOTE E -- INVESTMENTS IN NON-CONTROLLED AFFILIATES*:
<TABLE>
<CAPTION>
GUARDIAN
BALANCE OF GROSS BALANCE OF
SHARES HELD PURCHASES GROSS SALES SHARES HELD VALUE
AUGUST 31, AND AND FEBRUARY 29, FEBRUARY 29,
NAME OF ISSUER: 1995 ADDITIONS REDUCTIONS 1996 1996
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Coltec Industries 2,765,000 1,357,200 0 4,122,200 $56,680,000
Sequent Computer Systems 1,100,000 575,000 0 1,675,000 19,681,000
</TABLE>
<TABLE>
<CAPTION>
MANHATTAN
BALANCE OF GROSS BALANCE OF
SHARES HELD PURCHASES GROSS SALES SHARES HELD VALUE
AUGUST 31, AND AND FEBRUARY 29, FEBRUARY 29,
NAME OF ISSUER: 1995 ADDITIONS REDUCTIONS 1996 1996
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Spaghetti Warehouse 404,000 0 0 404,000 $ 1,969,000
</TABLE>
*Affiliated issuers, as defined in the 1940 Act, include issuers in which the
Portfolio held 5% or more of the outstanding voting securities.
NOTE F -- 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.
64
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
FOCUS GENESIS
PORTFOLIO PORTFOLIO
Six Months Six Months
Ended Period from Ended Period from
February August 2, February August 2,
29, Year Ended 1993 to 29, Year Ended August 1993 to
1996 August 31, August 31, 1996 31, August 31,
(UNAUDITED) 1995 1994 1993 (UNAUDITED) 1995 1994 1993
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET
ASSETS:
Expenses .54%(1) .57% .58% .58%(1) .86%(1,2) .94%(2) .98% 1.07%(1)
------------------------------------------------------------------------------------------
Net Investment Income .89%(1) 1.05% 1.16% 1.46%(1) .18%(1,2) .25%(2) .18% .37%(1)
------------------------------------------------------------------------------------------
Portfolio Turnover Rate 13% 36% 52% 4% 13% 37% 63% 3%
------------------------------------------------------------------------------------------
Average Commission Rate
Paid $0.0571 -- -- -- $0.0576 -- -- --
------------------------------------------------------------------------------------------
Net Assets, End of Period
(in millions) $1,146.1 $969.2 $645.0 $574.0 $164.0 $142.2 $138.6 $118.6
------------------------------------------------------------------------------------------
</TABLE>
1) Annualized.
2) Had Management not waived a portion of the management fee, the annualized
ratios to average daily net assets would have been:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
FEBRUARY 29, YEAR ENDED
GENESIS 1996 AUGUST 31, 1995
- -------------------------------------------------------
<S> <C> <C>
Expenses .96% .97%
Net Investment
Income .08% .22%
</TABLE>
65
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
GUARDIAN MANHATTAN
PORTFOLIO PORTFOLIO
Six Months
Six Months Period from Ended Period from
Ended August 2, February August 2,
February 29, 1993 to 29, Year Ended August 1993 to
1996 Year Ended August 31, August 31, 1996 31, August 31,
(UNAUDITED) 1995 1994 1993 (UNAUDITED) 1995 1994 1993
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET
ASSETS:
Expenses .46%(1) .48% .50% .51%(1) .57%(1) .59% .59% .59%(1)
-----------------------------------------------------------------------------------------------------
Net Investment
Income 1.64%(1) 1.72% 1.66% 2.45%(1) .19%(1) .42% .53% .55%(1)
-----------------------------------------------------------------------------------------------------
Portfolio Turnover Rate 14% 26% 24% 3% 23% 44% 50% 3%
-----------------------------------------------------------------------------------------------------
Average Commission Rate
Paid $0.0573 -- -- -- $0.0561 -- -- --
-----------------------------------------------------------------------------------------------------
Net Assets, End of
Period (in millions) $5,890.8 $4,613.2 $2,480.3 $1,777.6 $661.8 $645.4 $521.7 $536.8
-----------------------------------------------------------------------------------------------------
</TABLE>
1) Annualized.
66
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Equity Managers Trust
<TABLE>
<CAPTION>
PARTNERS
PORTFOLIO
Six Months Period from
Ended August 2,
February 29, 1993 to
1996 Year Ended August 31, August 31,
(UNAUDITED) 1995 1994 1993
---------------------------------------------------
<S> <C> <C> <C> <C>
RATIOS TO AVERAGE NET
ASSETS:
Expenses .51%(1) .53% .54% .54%(1)
---------------------------------------------------
Net Investment Income 1.26%(1) 1.13% .75% 1.19%(1)
---------------------------------------------------
Portfolio Turnover Rate 39% 98% 75% 8%
---------------------------------------------------
Average Commission Rate
Paid $0.0584 -- -- --
---------------------------------------------------
Net Assets, End of Period
(in millions) $1,874.6 $1,623.5 $1,340.3 $1,182.1
---------------------------------------------------
</TABLE>
1) Annualized.
67
<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:
Neuberger&Berman Funds
Institutional Services
605 Third Avenue 2nd Floor
New York, NY 10158-0180
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, NW
2nd Floor
Washington, DC 20036-1800
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- 1996 Neuberger&Berman Management Inc.
68
<PAGE>
OFFICERS AND TRUSTEES
Stanley Egener
CHAIRMAN OF THE BOARD AND TRUSTEE
Lawrence Zicklin
PRESIDENT AND TRUSTEE
Faith Colish
TRUSTEE
Donald M. Cox
TRUSTEE
Alan R. Gruber
TRUSTEE
Howard A. Mileaf
TRUSTEE
Edward I. O'Brien
TRUSTEE
John T. Patterson, Jr.
TRUSTEE
John P. Rosenthal
TRUSTEE
Cornelius T. Ryan
TRUSTEE
Gustave H. Shubert
TRUSTEE
Daniel J. Sullivan
VICE PRESIDENT
Michael J. Weiner
VICE PRESIDENT
Richard Russell
TREASURER
Claudia A. Brandon
SECRETARY
Stacy Cooper-Shugrue
ASSISTANT SECRETARY
C. Carl Randolph
ASSISTANT SECRETARY
69
<PAGE>
NEUBERGER&BERMAN MANAGEMENT INC. -Registered Trademark-
605 THIRD AVENUE 2ND FLOOR
NEW YORK, NY 10158-0180
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.
(recycle PRINTED ON RECYCLED PAPER
logo) WITH SOY BASED INKS NBESAR030296
<PAGE>
