<PAGE>
<PAGE>
SEMI-ANNUAL REPORT
- -----------------------------------------------------------
February 29, 1996
NEUBERGER&BERMAN
EQUITY TRUST -Registered Trademark-
Neuberger&Berman
NYCDC SOCIALLY RESPONSIVE TRUST
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
THE FUND
CHAIRMAN'S LETTER 3
PORTFOLIO MANAGER'S
COMMENTARY 5
FINANCIAL STATEMENTS 7
FINANCIAL HIGHLIGHTS 13
PER SHARE DATA
THE PORTFOLIO
SCHEDULE OF
INVESTMENTS 15
TOP TEN EQUITY
HOLDINGS
FINANCIAL STATEMENTS 18
FINANCIAL HIGHLIGHTS 23
DIRECTORY 24
OFFICERS AND
TRUSTEES 25
</TABLE>
2
<PAGE>
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>
S&P "500" RUSSELL 2000
<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.
3
<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.
4
<PAGE>
PORTFOLIO MANAGER'S COMMENTARY
Neuberger&Berman
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
JANET PRINDLE -- PORTFOLIO MANAGER
<TABLE>
<S> <C>
Q. WHAT HAS YOUR STRATEGY BEEN FOR THE LAST 6 MONTHS?
A. Over this period, we were faithful to our financial and
social criteria, and our shareholders were amply rewarded.
Our financial strategy consisted of building the Portfolio
one stock at a time. We look for the stocks of companies
whose values are not yet recognized in the market, and will
hold them until we feel they are no longer undervalued or
something has changed in the fundamentals or the outlook.
Q. WHAT ARE SOME EXAMPLES OF STOCKS THAT HAVE POSITIVELY
AFFECTED THE PORTFOLIO'S PERFORMANCE?
A. When we analyzed the stocks that fared well over this
period, we noticed that many of them had been in our
Portfolio for some time. One case in point is Johnson &
Johnson, the health care conglomerate. It has continued to
appreciate, and we remain confident in management's ability
to deliver solid returns to shareholders. We will continue
to hold J&J as long as we are still positive about its
prospects. In addition to its excellent financial fundamen-
tals, J&J boasts an admirable social record. It is a good
example of a company that has increased productivity and
sales per employee, without resorting to massive layoffs.
Our Portfolio also benefited from the strong performance of
Perkin-Elmer, an important producer of electronic analytical
instruments for process industries and life sciences.
Perkin-Elmer had been delivering lackluster financial
results for years. When we purchased the stock in early
1995, we believed that the company was capable of delivering
better results and that the board and management had finally
focused on the need to do so. Last fall, new management was
installed. Very soon, the potential of welcome change became
clearer to other investors, thereby driving up
Perkin-Elmer's stock price. This is just one example of how
we invest in companies whose values are not recognized and
then wait patiently for Wall Street to notice.
</TABLE>
5
<PAGE>
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust (Cont'd)
<TABLE>
<S> <C>
From a social perspective, Perkin-Elmer has undertaken
several programs in environmental management and community
assistance. In addition to installing an extensive recycling
program, the company finds alternative uses for its
packaging, conserves energy with its popular car pooling
program, and promotes science education by donating
instruments to schools and universities.
Q. WHAT ARE SOME FACTORS THAT NEGATIVELY AFFECTED YOUR
PORTFOLIO?
A. Our exposure to technology stocks such as Arrow Electronics
depressed the Portfolio's performance, as did our exposure
to cyclical issues such as the major paper recyclers.
Nonetheless, we are still optimistic about the prospects of
these issues because we believe their stock prices still do
not reflect their true value.
Q. WHAT ARE SOME EXAMPLES OF STOCKS THAT YOU BOUGHT DURING THIS
PERIOD?
A. We recently bought Dexter, a specialty chemical company that
we believe is a financial turnaround situation. It is
selling its under-performing businesses and has initiated a
share buyback. On the environmental side, a large fine a few
years ago was taken as a wake-up call, and the company hired
a respected executive who has revamped its environmental
practices.
Over the period, we also purchased Stolt-Nielson, one of the
world's leading providers of transportation services for
bulk liquid chemicals. We believe the stock is very
reasonably priced, particularly in light of favorable
industry dynamics. This market segment has been
characterized by higher growth of demand versus supply and
the company has responded by increasing the number of
vessels it owns. On the social front, we were attracted to
Stolt-Nielson's strict adherence to environmental standards.
It has constantly exceeded legal requirements -- instead of
using just double-BOTTOMED tankers (as most shippers do),
for example, Stolt-Nielson employs double-SIDED tankers that
are far less vulnerable to spills.
</TABLE>
6
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
<TABLE>
<CAPTION>
February 29,
1996
(000'S OMITTED EXCEPT PER SHARE AMOUNT) (UNAUDITED)
-------------
<S> <C>
ASSETS
Investment in Portfolio, at value (Note A) $ 112,481
Deferred organization costs (Note A) 29
Receivable from administrator -- net (Note
B) 17
Other assets 1
-------------
112,528
-------------
LIABILITIES
Payable for Trust shares redeemed 133
Accrued expenses 45
-------------
178
-------------
NET ASSETS at value $ 112,350
-------------
NET ASSETS consist of:
Par value $ 8
Paid-in capital in excess of par value 84,313
Accumulated undistributed net investment
income 203
Accumulated net realized gains on investment 3,758
Net unrealized appreciation in value of
investment 24,068
-------------
NET ASSETS at value $ 112,350
-------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 8,000
-------------
NET ASSET VALUE, offering and redemption price per
share $14.04
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
<TABLE>
<CAPTION>
For the
Six Months
Ended
February 29,
1996
(000'S OMITTED) (UNAUDITED)
------------
<S> <C>
INVESTMENT INCOME
Investment income from Portfolio (Note A) $ 786
------------
Expenses:
Administration fee (Note B) 25
Shareholder reports 25
Legal fees 11
Shareholder servicing agent fees 8
Custodian fees 5
Amortization of deferred organization and
initial offering expenses (Note A) 5
Trustees' fees and expenses 3
Registration and filing fees 3
Auditing fees 1
Miscellaneous 1
Expenses from Portfolio (Note A) 329
------------
Total expenses 416
Deduct -- expenses reimbursed by
administrator (Note B) (119)
------------
Total net expenses 297
------------
Net investment income 489
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM
PORTFOLIO (NOTE A)
Net realized gain on investments 5,137
Change in net unrealized appreciation of
investments 10,877
------------
Net gain on investments from Portfolio
(Note A) 16,014
------------
Net increase in net assets resulting from
operations $ 16,503
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
<TABLE>
<CAPTION>
For the
Six Months For the
Ended Year
February 29, Ended
1996 August 31,
(000'S OMITTED) (UNAUDITED) 1995
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 489 $ 923
Net realized gain on investments
sold from Portfolio (Note A) 5,137 1,705
Change in net unrealized
appreciation of investments from
Portfolio (Note A) 10,877 11,139
-----------------------------
Net increase in net assets resulting
from operations 16,503 13,767
-----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (895) (740)
Net realized gain on investments (2,311) --
-----------------------------
Total distributions to shareholders (3,206) (740)
-----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 14,512 21,336
Proceeds from reinvestment of
dividends and distributions 3,206 740
Payments for shares redeemed (7,208) (15,146)
-----------------------------
Net increase from Trust share
transactions 10,510 6,930
-----------------------------
NET INCREASE IN NET ASSETS 23,807 19,957
NET ASSETS:
Beginning of period 88,543 68,586
-----------------------------
End of period $ 112,350 $ 88,543
-----------------------------
Accumulated undistributed net
investment income
at end of period $ 203 $ 609
-----------------------------
NUMBER OF TRUST SHARES:
Sold 1,084 1,994
Issued on reinvestment of dividends
and distributions 238 75
Redeemed (541) (1,424)
-----------------------------
Net increase in shares outstanding 781 645
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- ----------------------------------------------------------------------
Equity Trust
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger&Berman NYCDC Socially Responsive Trust (the "Fund")
is a separate operating series of Neuberger&Berman Equity Trust (the
"Trust"), a Delaware business trust organized pursuant to a Trust Instrument
dated May 6, 1993. The Trust is registered as a diversified, open-end
management investment company under the Investment Company Act of 1940, as
amended, and its shares are registered under the Securities Act of 1933, as
amended. The trustees of the Trust may establish additional series or classes
of shares without the approval of shareholders.
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
The Fund seeks to achieve its investment objective by investing all of its
net investable assets in the Neuberger&Berman Socially Responsive Portfolio
of Equity Managers Trust (the "Portfolio") having the same investment
objective and policies as the Fund. The value of the Fund's investment in the
Portfolio reflects the Fund's proportionate interest in the net assets of the
Portfolio (87.51% at February 29, 1996). The Fund was created as an
investment vehicle for participants in the Deferred Compensation Plan of the
City of New York and Related Agencies and Instrumentalities. The performance
of the Fund is directly affected by the performance of the Portfolio. The
financial statements of the Portfolio, including the schedule of investments,
are included elsewhere in this report and should be read in conjunction with
the Fund's financial statements.
2) PORTFOLIO VALUATION: The Fund records its investment in its corresponding
Portfolio at value. Investment securities of the Portfolio of Equity Managers
Trust are valued by Equity Managers Trust as indicated in the notes following
the Portfolio's schedule of investments.
3) FEDERAL INCOME TAXES: Each series of the Trust is treated as a separate
entity for Federal income tax purposes. It is the policy of the Fund to
continue to qualify as a regulated investment company by complying with the
provisions available to certain investment companies, as defined in
applicable sections of the Internal Revenue Code, and to make distributions
of taxable income (after reduction for any amounts available for Federal
income tax purposes as capital loss carryforwards) sufficient to relieve it
from all, or substantially all, Federal income taxes. Accordingly, the Fund
paid no Federal income taxes and no provision for Federal income taxes was
required.
10
<PAGE>
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net
of Portfolio expenses, daily on its investment in the Portfolio. Dividends
and distributions from net realized capital gains, if any, are normally
distributed in December. Income dividends and capital gain distributions to
shareholders are recorded on the ex-dividend date. To the extent that the
Fund's net realized capital gains, if any, can be offset by capital loss
carryforwards, it is the policy of the Fund not to distribute such gains.
The Fund distinguishes between dividends on a tax basis and a financial
reporting basis and only distributions in excess of tax basis earnings and
profits are reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains.
5) ORGANIZATION EXPENSES: Expenses incurred by the Fund in connection with its
organization are being amortized on a straight-line basis over a five-year
period. At February 29, 1996, the unamortized balance of such expenses
amounted to $29,020.
6) EXPENSE ALLOCATION: The Fund bears all costs of operations. Expenses incurred
by the Trust with respect to any two or more funds are allocated in
proportion to the net assets of such funds, except where a more appropriate
allocation of expenses to each fund can otherwise be made fairly. Expenses
directly attributable to a fund are charged to that fund.
7) OTHER: All net investment income and realized and unrealized capital gains
and losses of the Portfolio are allocated pro rata among its respective funds
and any other investors in the Portfolio.
NOTE B -- ADMINISTRATION FEES, DISTRIBUTION ARRANGEMENTS AND OTHER TRANSACTIONS
WITH AFFILIATES:
The Fund retains Neuberger&Berman Management Incorporated ("Management") as
its administrator under an Administration Agreement ("Agreement") dated as of
March 11, 1994. Pursuant to this Agreement the Fund pays Management an
administration fee at the annual rate of 0.05% of the Fund's average daily net
assets and indirectly pays for investment management services through its
investment in the Portfolio. (See Note B of Notes to Financial Statements of the
Portfolio.)
Management has voluntarily undertaken to reimburse the Fund for its operating
expenses and its pro rata share of the Portfolio's operating expenses (excluding
interest,
11
<PAGE>
taxes, brokerage commissions, and extraordinary expenses) which exceed, in the
aggregate, 0.60% per annum of the Fund's average daily net assets. This
undertaking is subject to termination by Management upon at least sixty (60)
days' prior written notice to the Fund. For the six months ended February 29,
1996, such excess expenses amounted to $119,071.
All of the capital stock of Management is owned by individuals who are also
general partners of Neuberger&Berman, L.P. ("Neuberger"), a member firm of The
New York Stock Exchange and the sub-adviser to the Portfolio. Several
individuals who are officers and/or trustees of the Trust are also partners of
Neuberger and/or officers and/or directors of Management.
The Fund also has a distribution agreement with Management, which receives no
compensation therefor and no commissions for sales or redemptions of shares of
beneficial interest of the Fund.
NOTE C -- INVESTMENT TRANSACTIONS:
During the six months ended February 29, 1996, additions and reductions in
the Fund's investment in the Portfolio amounted to $10,079,063 and $2,629,207,
respectively.
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Fund without audit by independent accountants. Annual reports
contain audited financial statements.
12
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- --------------------------------------------------------------------------------
NYCDC Socially Responsive Trust
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements. The per share amounts and ratios which are shown reflect income and
expenses, including the Fund's proportionate share of the Portfolio's income and
expenses. It should be read in conjunction with the Portfolio's Financial
Statements and notes thereto.
<TABLE>
<CAPTION>
For the
For the Period from
Six Months Ended For the March 14, 1994(1)
February 29, Year Ended to
1996 August 31, August 31,
(UNAUDITED) 1995 1994
------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 12.27 $ 10.43 $ 10.20
------------------------------------------------------------
Income From Investment Operations
Net Investment Income .06 .13 .06
Net Gains or Losses on Securities (both
realized and unrealized) 2.14 1.82 .17
------------------------------------------------------------
Total From Investment Operations 2.20 1.95 .23
------------------------------------------------------------
Less Distributions
Dividends (from net investment income) (.12) (.11) --
Distributions (from capital gains) (.31) -- --
------------------------------------------------------------
Total Distributions (.43) (.11) --
------------------------------------------------------------
Net Asset Value, End of Period $ 14.04 $ 12.27 $ 10.43
------------------------------------------------------------
Total Return+ +18.07%(2) +18.95% +2.26%(2)
------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 112.4 $ 88.5 $ 68.6
------------------------------------------------------------
Ratio of Expenses to Average Net
Assets(4) .60%(3) .60% .60%(3)
------------------------------------------------------------
Ratio of Net Investment Income to Average
Net Assets(4) .98%(3) 1.26% 1.42%(3)
------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
13
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman February 29, 1996 (Unaudited)
- ----------------------------------------------------------------------
NYCDC Socially Responsive Trust
1)The date investment operations commenced.
2)Not annualized.
3)Annualized.
4)After reimbursement of expenses by the administrator as described in Note B of
Notes to Financial Statements. Had the administrator not undertaken such
action the annualized ratios to average daily net assets would have been:
<TABLE>
<CAPTION>
FOR THE FOR THE
FOR THE YEAR ENDED PERIOD FROM MARCH 14,
SIX MONTHS ENDED AUGUST 31, 1994 TO AUGUST 31,
FEBRUARY 29, 1996 1995 1994
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Expenses .84% .85% .84%
- -------------------------------------------------------------------------------------------
Net Investment Income .74% 1.01% 1.18%
- -------------------------------------------------------------------------------------------
</TABLE>
+ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each period
and assumes dividends and capital gain distributions, if any, were reinvested.
Results represent past performance and do not guarantee future results.
Investment returns and principal may fluctuate and shares when redeemed may be
worth more or less than original cost. Total return would have been lower if
Management had not reimbursed certain expenses.
14
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
TOP TEN EQUITY HOLDINGS
---------------------------------------------------
HOLDING PERCENTAGE
<C> <S> <C>
1. CITICORP 2.7%
2. Louisiana Land & Exploration 2.6%
3. ReliaStar Financial 2.5%
4. General Signal 2.3%
5. Travelers Group 2.1%
6. Brooklyn Union Gas 2.1%
7. Illinois Central 2.0%
8. Equitable Cos. 2.0%
9. Dun & Bradstreet 2.0%
10. Whitman Corp. 1.9%
</TABLE>
<TABLE>
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
COMMON STOCKS (98.2%)
ADVERTISING (1.6%)
50,000 Omnicom Group $ 2,044
-------------
AGRICULTURE (1.3%)
83,500 Mycogen Corp. 1,628
-------------
BANKING (5.7%)
45,000 CITICORP 3,510
45,100 Mercantile Bancorporation 2,029
34,700 Meridian Bancorp 1,787
-------------
7,326
-------------
BUSINESS SERVICES (3.1%)
35,000 Banta Corp. 1,470
40,000 Dun & Bradstreet 2,530
-------------
4,000
-------------
CHEMICALS (11.7%)
30,000 Air Products & Chemicals 1,597
41,000 Cabot Corp. 2,480
90,000 Dexter Corp. 2,115
55,000 Minerals Technologies 1,987
65,000 Morton International 2,462
50,000 Perkin-Elmer 2,300
89,900 Wellman, Inc. 2,034
-------------
14,975
-------------
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
CONSUMER GOODS & SERVICES (2.6%)
57,000 Marcus Corp. $ 1,475
23,000 Procter & Gamble 1,886
-------------
3,361
-------------
CONSUMER PRODUCTS & SERVICES (1.8%)
30,000 Kimberly-Clark 2,291
-------------
DIVERSIFIED (2.5%)
77,000 CasTech Aluminum Group 1,078
60,000 Tyco International 2,168
-------------
3,246
-------------
ELECTRONICS (1.7%)
45,000 Arrow Electronics 2,216
-------------
ENERGY (3.0%)
65,000 Noble Affiliates 1,991
55,000 Tidewater Inc. 1,877
-------------
3,868
-------------
FINANCIAL SERVICES (3.3%)
48,000 Federal National Mortgage
Association 1,518
40,000 Travelers Group 2,675
-------------
4,193
-------------
FOOD & BEVERAGE (1.9%)
107,000 Whitman Corp. 2,488
-------------
FURNISHINGS (1.6%)
90,000 Leggett & Platt 2,104
-------------
HEALTH CARE (5.5%)
40,000 Columbia/HCA Healthcare 2,190
25,000 Johnson & Johnson 2,337
25,000 Warner-Lambert 2,472
-------------
6,999
-------------
INDUSTRIAL & COMMERCIAL
PRODUCTS (4.0%)
80,000 General Signal 2,910
35,000 Raychem Corp. 2,271
-------------
5,181
-------------
</TABLE>
15
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Socially Responsive Portfolio (Cont'd)
<TABLE>
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
INSURANCE (7.3%)
76,800 Allmerica Property & Casualty $ 1,977
17,000 Chubb Corp. 1,651
101,600 Equitable Cos. 2,565
67,000 ReliaStar Financial 3,216
-------------
9,409
-------------
OIL & GAS (3.8%)
100,000 ENSERCH Corp. 1,513
80,000 Louisiana Land & Exploration 3,340
-------------
4,853
-------------
PACKAGING & CONTAINERS (2.3%)
70,000 Rock-Tenn 1,173
63,000 Sonoco Products 1,725
-------------
2,898
-------------
PAPER & FOREST PRODUCTS (1.2%)
32,000 Mead Corp. 1,600
-------------
PUBLISHING & BROADCASTING (1.7%)
78,900 Cadmus Communications 2,170
-------------
RAILROADS (2.0%)
70,000 Illinois Central 2,608
-------------
RECYCLING (1.2%)
67,700 IMCO Recycling 1,472
-------------
RETAIL STORES (4.5%)
43,000 May Department Stores 2,005
130,000 Price/Costco 2,242
50,000 Rite Aid 1,575
-------------
5,822
-------------
TECHNOLOGY (6.7%)
40,000 Compaq Computer 2,025
30,000 Digital Equipment 2,160
20,000 Hewlett-Packard 2,015
41,500 Intel Corp. 2,441
-------------
8,641
-------------
TELECOMMUNICATIONS (12.6%)
66,000 Airtouch Communications 2,046
32,500 AT&T Corp. 2,068
<CAPTION>
Market
Value(1)
Number (000's
of Shares omitted)
- --------- -------------
<C> <S> <C>
167,500 Jones Intercable Inc. Class A $ 2,303
48,000 Southern New England
Telecommunications 1,962
90,000 Tele-Communications
International 1,935
100,000 Tele-Communications, Inc.
Class A 2,100
60,000 Tele-Communications, Inc.
Class A Liberty Media Group 1,657
55,000 WorldCom Inc. 2,166
-------------
16,237
-------------
TRANSPORTATION (1.5%)
103,700 Stolt-Nielsen ADR 1,867
-------------
UTILITIES (2.1%)
101,300 Brooklyn Union Gas 2,646
-------------
TOTAL COMMON STOCKS (COST
$99,795) 126,143
-------------
<CAPTION>
Principal
Amount
- ---------
<C> <S> <C>
U.S. TREASURY SECURITIES (5.4%)
$6,980,000 U.S. Treasury Bills, 4.50% -
5.02%, due 3/7/96 - 4/18/96
(COST $6,955) 6,955(2)
-------------
TOTAL INVESTMENTS (103.6%)
(COST $106,750) 133,098(3)
Liabilities, less cash,
receivables and other assets
[(3.6%)] (4,568)
-------------
TOTAL NET ASSETS (100.0%) $ 128,530
-------------
</TABLE>
16
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Neuberger&Berman February 29, 1996 (Unaudited)
- ----------------------------------------------------------------------
Socially Responsive Portfolio
1)Investment securities of the Portfolio are valued at the latest sales price;
securities for which no sales were reported, unless otherwise noted, are
valued at the mean between the closing bid and asked prices. The Portfolio
values all other securities by a method that the trustees of Equity Managers
Trust believe accurately reflects fair value.
2)At cost, which approximates market value.
3)The cost of investments for Federal income tax purposes was $106,750,000. At
February 29, 1996, gross unrealized appreciation of investments was
$26,589,000 and gross unrealized depreciation of investments was $241,000,
resulting in net unrealized appreciation of $26,348,000, based on cost for
Federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman
- ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
February 29,
1996
(000'S OMITTED) (UNAUDITED)
-------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) --
see Schedule of Investments $ 133,098
Cash 8
Dividends receivable 152
Deferred organization costs (Note A) 21
Prepaid expenses 1
-------------
133,280
-------------
LIABILITIES
Payable for securities purchased 4,670
Payable to investment manager (Note B) 55
Accrued expenses 25
-------------
4,750
-------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL
INTERESTS $ 128,530
-------------
NET ASSETS consist of:
Paid-in capital $ 102,182
Net unrealized appreciation in value of
investments 26,348
-------------
NET ASSETS $ 128,530
-------------
*Cost of investments $ 106,750
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman
- ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
February
29,
1996
(000'S OMITTED) (UNAUDITED)
-----------
<S> <C>
INVESTMENT INCOME
Income:
Dividend income $ 747
Interest income 129
-----------
Total income 876
-----------
Expenses:
Investment management fee (Note B) 304
Custodian fees 33
Legal fees 9
Auditing fees 8
Accounting fees 5
Amortization of deferred organization and
initial offering expenses (Note A) 3
Trustees' fees and expenses 3
Insurance expense 1
-----------
Total expenses 366
-----------
Net investment income 510
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments sold 5,651
Change in net unrealized appreciation of
investments 12,140
-----------
Net gain on investments 17,791
-----------
Net increase in net assets resulting from
operations $ 18,301
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman
- ----------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
For the
Six Months For the
Ended Year
February 29, Ended
1996 August 31,
(000'S OMITTED) (UNAUDITED) 1995
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 510 $ 925
Net realized gain on investments
sold 5,651 1,842
Change in net unrealized
appreciation of investments 12,140 12,075
-----------------------------
Net increase in net assets resulting
from operations 18,301 14,842
-----------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 16,465 21,008
Reductions (2,983) (9,789)
-----------------------------
Net increase in net assets resulting
from transactions in investors'
beneficial interests 13,482 11,219
-----------------------------
NET INCREASE IN NET ASSETS 31,783 26,061
NET ASSETS:
Beginning of period 96,747 70,686
-----------------------------
End of period $ 128,530 $ 96,747
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 29, 1996 (Unaudited)
- ----------------------------------------------------------------------
Equity Managers Trust
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Neuberger&Berman Socially Responsive Portfolio (the "Portfolio") is
a separate operating series of Equity Managers Trust ("Managers Trust"), a
New York common law trust organized as of December 1, 1992. Managers Trust is
registered as a diversified, open-end management investment company under the
Investment Company Act of 1940, as amended. Other regulated investment
companies sponsored by Neuberger&Berman Management Incorporated
("Management"), whose financial statements are not presented herein, also
invest in the Portfolio and other portfolios of Managers Trust.
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
2) PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the Portfolio's schedule of investments.
3) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date and interest income, including accretion of discount on
short-term investments (adjusted for original issue discount, where
applicable), is recorded on the accrual basis. Realized gains and losses from
securities transactions are recorded on the basis of identified cost.
4) FEDERAL INCOME TAXES: Managers Trust intends to comply with the
requirements of the Internal Revenue Code of 1986, as amended. Each portfolio of
Managers Trust also intends to conduct its operations so that each of its
investors will be able to qualify as a regulated investment company. Each
portfolio will be treated as a partnership for Federal income tax purposes
and is therefore not subject to Federal income tax.
5) ORGANIZATION EXPENSES: Expenses incurred by the Portfolio in connection
with its organization are being amortized by the Portfolio on a straight-line
basis over a five-year period. At February 29, 1996, the unamortized balance
of such expenses amounted to $20,501.
6) EXPENSE ALLOCATION: The Portfolio bears all costs of operations. Expenses
incurred by Managers Trust with respect to any two or more portfolios are
allocated in proportion to the net assets of such portfolios, except where 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.
21
<PAGE>
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Portfolio retains Management as its investment manager under a Management
Agreement ("Agreement") dated as of March 11, 1994. For such investment
management services, the Portfolio pays Management a fee at the annual rate of
0.55% of the first $250 million of the Portfolio's average daily net assets,
0.525% of the next $250 million, 0.50% of the next $250 million, 0.475% of the
next $250 million, 0.45% of the next $500 million, and 0.425% of average daily
net assets in excess of $1.5 billion.
All of the capital stock of Management is owned by individuals who are also
general partners of Neuberger&Berman, L.P. ("Neuberger"), a member firm of The
New York Stock Exchange and the sub-adviser to the Portfolio. Neuberger is
retained by Management to furnish it with investment recommendations and
research information without cost to the Portfolio. Several individuals who are
officers and/or trustees of Managers Trust are also partners of Neuberger and/or
officers and/or directors of Management.
The Portfolio has an expense offset arrangement included in its custodian
contract. The impact of this arrangement on the 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) of $42,770,966 and $27,772,693,
respectively.
Brokerage commissions on securities transactions amounted to $84,685, of
which Neuberger received $44,724, and other brokers received $39,961.
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Portfolio without audit by independent accountants. Annual
reports contain audited financial statements.
22
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman
- --------------------------------------------------------------------------------
Socially Responsive Portfolio
<TABLE>
<CAPTION>
For the
Period from
For the March 14, 1994
Six Months (Commencement
Ended For the of Operations)
February 29, Year Ended to
1996 August 31, August 31,
(UNAUDITED) 1995 1994
------------------------------------------------------
<S> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses .66%(1) .68% .69%(1)
------------------------------------------------------
Net Investment Income .92%(1) 1.18% 1.33%(1)
------------------------------------------------------
Portfolio Turnover Rate 26% 58% 14%
------------------------------------------------------
Average Commission Rate Paid $0.0592 -- --
------------------------------------------------------
Net Assets, End of Period (in millions) $128.5 $96.7 $70.7
------------------------------------------------------
</TABLE>
1) Annualized.
23
<PAGE>
DIRECTORY
INVESTMENT MANAGER, ADMINISTRATOR
AND DISTRIBUTOR
Neuberger&Berman Management Incorporated
605 Third Avenue 2nd Floor
New York, NY 10158-0180
800-877-9700
Institutional Services 800-366-6264
SUB-ADVISER
Neuberger&Berman, L.P.
605 Third Avenue
New York, NY 10158-3698
CUSTODIAN AND SHAREHOLDER
SERVICING AGENT
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
ADDRESS CORRESPONDENCE TO:
Deferred Compensation Plan of the
City of New York and Related Agencies
and Instrumentalities
40 Rector Street, 3rd Floor
New York, NY 10006
212-306-7760
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
1800 Massachusetts Avenue, NW
2nd Floor
Washington, DC 20036-1800
Neuberger&Berman Management Inc., Neuberger&Berman NYCDC Socially Responsive
Trust, are service marks of Neuberger&Berman Management Inc.
- -C- 1996 Neuberger&Berman Management Inc.
24
<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
25
<PAGE>
NEUBERGER&BERMAN MANAGEMENT INC.
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 Fund. This report is prepared for the general
information of shareholders and is not an offer of shares of the Fund.
Shares are sold only through the currently effective prospectus, which
must precede or accompany this report.
(recycle PRINTED ON RECYCLED PAPER
logo) WITH SOY BASED INKS NBESAR050296
<PAGE>
