NEUBERGER & BERMAN EQUITY TRUST
Neuberger & Berman Guardian Trust
Supplement dated April 1, 1997 to
Statement of Additional Information dated December 6, 1996
INVESTMENT INFORMATION
The section regarding the investment program and managers of the Portfolio
(pages 5-6) is revised to read as follows:
THE PORTFOLIO
The Portfolio subscribes to the same stock-picking philosophy
followed since 1950, when Roy R. Neuberger founded the predecessor of Neuberger
& Berman GUARDIAN Fund, which, like the Fund, invests all of its net investable
assets in the Portfolio.
It's no great trick for a mutual fund to make money when the
market is rising. The tide that lifts stock values will carry most funds along.
The true test of management is its ability to make money even when the market is
flat or declining. By that measure, the Fund, Neuberger & Berman GUARDIAN Fund
and its predecessor have served shareholders well and have paid a dividend every
quarter and a capital gain distribution EVERY YEAR since 1950. Of course, this
past record does not necessarily predict the Fund's future practices.
The portfolio co-managers place a high premium on being
knowledgeable about the companies whose stocks they buy. That knowledge is
important, because sometimes it takes courage to buy stocks that the rest of the
market has forsaken. The Portfolio is usually early in and early out. The
managers would rather buy an undervalued stock because they expect it to become
fairly valued than buy one fairly valued and hope it becomes overvalued. The
managers like a stock "under a rock" or with a cloud over it; they believe an
investor is not going to get great companies at great valuations when the market
perception is great.
Investors who switch around a lot are not going to benefit from
the Portfolio's approach. They're following the market -- the Portfolio is
looking at fundamentals.
