NEUBERGER BERMAN EQUITY TRUST, 497, 1999-01-04

NEUBERGER BERMAN EQUITY TRUST
497, 1999-01-04

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<PAGE>

<PAGE>
[COVER]
[PHOTO] NEUBERGER BERMAN

NEUBERGER BERMAN
EQUITY TRUSTS
- --------------------------------------------------------------------------------
PROSPECTUS DECEMBER 30, 1998

The Securities and Exchange Commission does not say
whether any mutual fund is a good or bad investment or
whether the information in any prospectus is accurate or
complete. It is unlawful for anyone to indicate
otherwise.
Focus Trust
Genesis Trust
Guardian Trust
International Trust
Manhattan Trust
Millennium Trust
Partners Trust
Socially Responsive Trust
<PAGE>
CONTENTS

<TABLE>
<C> <S>
NEUBERGER BERMAN EQUITY TRUSTS

PAGE 2 ...... Focus Trust

8 ...... Genesis Trust

14 ...... Guardian Trust

20 ...... International Trust

26 ...... Manhattan Trust

32 ...... Millennium Trust

36 ...... Partners Trust

42 ...... Socially Responsive Trust

YOUR INVESTMENT

48 ...... Maintaining Your Account

50 ...... Share Prices

51 ...... Distributions and Taxes

53 ...... Fund Structure
</TABLE>

The "Neuberger Berman" name and logo are service
marks of Neuberger Berman, LLC. "Neuberger Berman
Management Inc." and the individual fund names in
this prospectus are either service marks or
registered trademarks of Neuberger Berman
Management Inc. -C-1998 Neuberger Berman Management
Inc.
<PAGE>
- ------------------------------------------------------------

FUND MANAGEMENT
All of the Neuberger Berman Equity Trusts are managed by Neuberger Berman
Management Inc., in conjunction with Neuberger Berman, LLC, as sub-adviser.
Together, the firms manage more than $49 billion in total assets (as of
September 30, 1998) and continue an asset management history that began in 1939.

RISK INFORMATION
This prospectus discusses principal risks of investment in fund shares. These
and other risks are discussed in detail in the Statement of Additional
Information (see back cover).

THESE FUNDS:

- - ARE DESIGNED FOR INVESTORS WITH LONG-TERM GOALS IN MIND

- - OFFER YOU THE OPPORTUNITY TO PARTICIPATE IN FINANCIAL MARKETS THROUGH
PROFESSIONALLY MANAGED STOCK PORTFOLIOS

- - ALSO OFFER THE OPPORTUNITY TO DIVERSIFY YOUR PORTFOLIO WITH FUNDS THAT INVEST
USING A VALUE OR A GROWTH APPROACH, OR A COMBINATION OF THE TWO

- - USE A MASTER/FEEDER STRUCTURE IN THEIR PORTFOLIOS; SEE PAGE 53 FOR INFORMATION
ON HOW IT WORKS

- - CARRY CERTAIN RISKS, INCLUDING THE RISK THAT YOU COULD LOSE MONEY IF FUND
SHARES ARE WORTH LESS THAN WHAT YOU PAID

- - ARE MUTUAL FUNDS, NOT BANK DEPOSITS, AND ARE NOT GUARANTEED OR INSURED

1
<PAGE>
[PHOTO]

NEUBERGER BERMAN
FOCUS TRUST
- --------------------------------------------------------------------------------

Ticker Symbol: NBFCX ABOVE: PORTFOLIO MANAGER KENT C. SIMONS

"OUR INVESTMENT APPROACH FOR FOCUS TRUST INVOLVES LOOKING FOR COMPANIES THAT
HAVE LOW PRICE-TO-EARNINGS RATIOS, SOLID BALANCE SHEETS AND STRONG MANAGEMENT.
WE OFTEN FIND THAT THESE COMPANIES ARE CONCENTRATED IN CERTAIN SECTORS OF THE
ECONOMY, AND WE LOOK FURTHER WITHIN THESE SECTORS FOR OTHER COMPANIES THAT MEET
OUR CRITERIA."

2
<PAGE>
GOAL & STRATEGY
- ------------------------------------------------------------

INDUSTRY SECTORS
The economy is divided into sectors, each made up of related industries. By
focusing on several sectors at
a time, a fund can add a measure of diversification and still allow the
potential for performance.

This contrasts with an approach of limiting investment to one sector, which may
offer greater opportunity but also more risk. A sector may have above-average
performance during particular periods, but individual sectors also tend to move
up and down more than the broader market.

VALUE INVESTING
At any given time, there are companies whose stock prices are below the market
average, based on earnings, book value, or other financial measures. The value
investor examines these companies, searching for those that may rise in price
before other investors realize their worth.

[ICON]
THE FUND SEEKS LONG-TERM GROWTH OF CAPITAL.

To pursue this goal, the fund invests mainly in common stocks of
companies of any size that fall within the following sectors:

- - autos and housing

- - consumer goods and services

- - defense and aerospace

- - energy

- - financial services

- - health care

- - heavy industry

- - machinery and equipment

- - media and entertainment

- - retailing

- - technology

- - transportation

- - utilities

At any given time, the fund intends to place most of its assets in those sectors
on the list that the manager believes are undervalued. The fund generally
invests at least 90% of net assets in no more than six sectors. However, it does
not invest more than 50% of total assets in any one sector, or more than 25% of
total assets in any one industry.

The manager looks for undervalued companies. Factors in identifying these firms
may include above-average returns, an established market niche, and sound future
business prospects. This approach is designed to let the fund benefit from
potential increases in stock prices while limiting the risks typically
associated with investing in a small number
of sectors.

The fund has the ability to change its goal without shareholder approval,
although it does not currently intend to do so.

Focus Trust 3
<PAGE>
MAIN RISKS
- ------------------------------------------------------------

OTHER RISKS
The fund may use certain practices and securities involving additional risks.

Borrowing, securities lending, and derivatives could create leverage, meaning
that certain gains or losses could be amplified, increasing share price
movements. In using certain derivatives to gain stock market exposure for excess
cash holdings, the fund increases its risk of loss.

Although they may add diversification, foreign securities can be riskier,
because foreign markets tend to be more volatile and currency exchange rates
fluctuate.

When the fund anticipates unusual market or other conditions, it may temporarily
depart from its goal and invest substantially in high-quality short-term
investments. This could help the fund avoid losses but may mean lost
opportunities.

[ICON] Most of the fund's performance
depends on what happens in the stock market. The market's behavior is
unpredictable, particularly in the short term. Because of this, the
value of your investment will rise and fall, and you could lose money.

Because the fund typically focuses on a few sectors at a time, its performance
is likely to be disproportionately affected by the factors influencing those
sectors. These may include market, economic, political, or regulatory
developments, among others. The fund's performance may also suffer if a sector
does not perform as the portfolio manager expected.

To the extent that the fund emphasizes any particular size of stock, it takes on
the associated risks. Mid-and small-cap stocks tend to be riskier than large-cap
stocks; over time, however, large-cap stocks may perform better or less well
than mid- and small-cap stocks. At any given time, one size of stock may be out
of favor with investors. If the fund emphasizes that size, it could perform less
well than certain other funds.

4 Neuberger Berman
<PAGE>
PERFORMANCE
- ------------------------------------------------------------

PERFORMANCE MEASURES
The information on this page provides different measures of the fund's total
return. Total return includes the effect of distributions as well as changes in
share price. The figures assume that all distributions were reinvested in the
fund.

As a frame of reference, the table includes a broad-based market index. The
fund's performance figures include all of its expenses; the index does not
include costs of investment.

Because the fund had a policy of investing heavily in energy stocks prior to
November 1991, and invested mainly in large-cap stocks prior to September 1998,
its performance during those times would have been different if current policies
had been in effect.

[ICON] The bar chart below shows how
performance has varied from year to year. The table below the chart
shows what the returns would equal if you averaged out actual
performance over various lengths of time. This information is based on past
performance; it's not a prediction of future results.

YEAR-BY-YEAR % RETURNS as of 12/31 each year*

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<S> <C>
1988 16.47%
89 29.78%
90 -5.92%
91 24.66%
92 21.10%
93 19.60%
94 0.93%
95 36.03%
96 16.29%
97 24.15%
BEST QUARTER: Q2 '97, up 16.90%
WORST QUARTER: Q3 '90, down 9.07%
Year-to-date performance as of 9/30/98: down
15.87%
</TABLE>

AVERAGE ANNUAL TOTAL % RETURNS as of 12/31/97*

<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
<S> <C> <C> <C>
- -------------------------------------------------------------------

FOCUS TRUST 24.15 18.84 17.67
S&P 500 Index 33.32 20.22 18.00
</TABLE>

The S&P 500 is an unmanaged index of U.S. stocks.

* The fund began operating in August 1993. Performance results from 1988 to
August 1993 are actually those of another Neuberger Berman fund that began
operations in 1955, and invests in the same portfolio of securities. Because
the older fund had moderately lower expenses, its performance was slightly
better than Focus Trust would have had. That older fund is not offered in this
prospectus.

Focus Trust 5
<PAGE>
INVESTOR EXPENSES
- ------------------------------------------------------------

MANAGEMENT
KENT C. SIMONS is a Vice President of Neuberger Berman Management and a
principal of Neuberger Berman, LLC. He has managed the fund's assets
since 1988.

NEUBERGER BERMAN MANAGEMENT is the fund's investment manager, administrator, and
distributor. It engages Neuberger Berman, LLC as sub-adviser to provide
management and related services. For the 12 months ended 8/31/98, the
management/administration fees paid to Neuberger Berman Management were 0.88% of
average net assets.

[ICON] The fund does not charge you any fees
for buying, selling, or exchanging shares, or for maintaining your
account. Your only fund cost is your share of annual operating
expenses. The expense example can help you compare costs among funds.

FEE TABLE

SHAREHOLDER FEES None

- -------------------------------------------------------

ANNUAL OPERATING EXPENSES (% of average net assets)*

These are deducted from fund assets, so you pay them indirectly.

<TABLE>
<S> <C> <C>
Management fees 0.88
PLUS: Distribution (12b-1) fees None
Other expenses 0.09
....
EQUALS: Total annual operating expenses 0.97
</TABLE>

* NEUBERGER BERMAN MANAGEMENT REIMBURSES CERTAIN EXPENSES OF THE FUND SO THAT
ITS TOTAL ANNUAL OPERATING EXPENSES ARE NOT MORE THAN 0.10% ABOVE THOSE OF
ANOTHER NEUBERGER BERMAN FUND THAT INVESTS IN THE SAME PORTFOLIO OF
SECURITIES. THIS ARRANGEMENT DOES NOT COVER INTEREST, TAXES, BROKERAGE
COMMISSIONS, AND EXTRAORDINARY EXPENSES. UNDER THIS ARRANGEMENT, WHICH
NEUBERGER BERMAN MANAGEMENT CAN TERMINATE UPON SIXTY DAYS' NOTICE TO THE FUND,
TOTAL ANNUAL OPERATING EXPENSES OF THE FUND LAST YEAR WERE LIMITED TO 0.94% OF
THE FUND'S AVERAGE NET ASSETS. ACTUAL EXPENSES THIS YEAR MAY BE HIGHER OR
LOWER. THE TABLE INCLUDES COSTS PAID BY THE FUND AND ITS SHARE OF MASTER
PORTFOLIO COSTS. FOR MORE INFORMATION ON MASTER/FEEDER FUNDS, SEE "FUND
STRUCTURE" ON PAGE 53.

EXPENSE EXAMPLE

The example assumes that you invested $10,000 for the periods shown, that you
earned a hypothetical 5% total return each year, and that the fund's expenses
were those in the table above. Your costs would be the same whether you sold
your shares or continued to hold them at the end of each period. Actual
performance and expenses may be higher or lower.

<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
- -----------------------------------------------------------
Expenses** $99 $309 $536 $1190
</TABLE>

** UNDER THE FUND'S EXPENSE REIMBURSEMENT ARRANGEMENT DESCRIBED IN THE FOOTNOTE
ABOVE, YOUR COSTS FOR THE ONE-, THREE-, FIVE- AND TEN-YEAR PERIODS WOULD BE
$96, $300, $520, AND $1155, RESPECTIVELY.

6 Neuberger Berman
<PAGE>
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Year Ended August 31, 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------
PER-SHARE DATA ($)
Data apply to a single share throughout each year indicated. You can see what the fund earned (or lost), what
it distributed to investors, and how its share price changed.
Share price (NAV) at beginning of year 10.03 11.36 14.41 14.83 21.27
PLUS: Income from investment operations
Net investment income 0.05 0.05 0.06 0.01 0.03
Net gains/losses -- realized and unrealized 1.31 3.05 0.46 6.49 (3.66)
Subtotal: income from investment operations 1.36 3.10 0.52 6.50 (3.63)
MINUS: Distributions to shareholders
Income dividends 0.02 0.05 0.02 0.06 0.01
Capital gain distributions 0.01 -- 0.08 -- 0.49
Subtotal: distributions to shareholders 0.03 0.05 0.10 0.06 0.50
...........................................
EQUALS: Share price (NAV) at end of year 11.36 14.41 14.83 21.27 17.14
- --------------------------------------------------------------------------------------------------------------
RATIOS (% of average net assets)
The ratios show the fund's expenses and net investment income -- as they actually are as well as how they
would have been if certain expense reimbursement and offset arrangements had not been in effect.
Net expenses -- actual 0.85 0.96 0.99 0.96 0.94
Gross expenses(1) 2.50 2.50 1.27 1.06 0.97
Expenses(2) -- -- 0.99 0.96 0.94
Net investment income -- actual 0.92 0.67 0.63 0.11 0.17
- --------------------------------------------------------------------------------------------------------------
OTHER DATA
Total return shows how an investment in the fund would have performed over each year, assuming all
distributions were reinvested. The turnover rate reflects how actively the fund bought and sold securities.
Total return(3) (%) 13.58 27.44 3.62 43.93 (17.45)
Net assets at end of year (in millions of dollars) 1.6 14.5 55.6 160.9 193.2
Portfolio turnover rate (%) 52 36 39 63 64
</TABLE>

The figures above have been audited by Ernst & Young LLP, the fund's independent
auditors. Their report, along with full financial statements, appears in the
fund's most recent shareholder report (see back cover).

(1) SHOWS WHAT THIS RATIO WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE
REIMBURSEMENT.
(2) SHOWS WHAT EXPENSES WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE OFFSET
ARRANGEMENTS. THIS CALCULATION IS REQUIRED FOR ALL PERIODS ENDING AFTER
9/1/95.
(3) WOULD HAVE BEEN LOWER IF NEUBERGER BERMAN MANAGEMENT HAD NOT REIMBURSED
CERTAIN EXPENSES.

Focus Trust 7
<PAGE>
[]

NEUBERGER BERMAN
GENESIS TRUST
- --------------------------------------------------------------------------------

Ticker Symbol: NBGEX ABOVE: PORTFOLIO MANAGERS ROBERT W. D'ALELIO
AND JUDITH M. VALE

"WE SEEK OUT SMALL COMPANIES THAT ARE LITTLE-KNOWN AND OFTEN ARE IN LESS
GLAMOROUS INDUSTRIES. FUTURE GROWTH IS ONE AREA WE FOCUS ON, BUT EQUALLY
IMPORTANT TO US IS EVIDENCE OF SOLID PERFORMANCE AND A PROVEN MANAGEMENT TEAM.
AND AS VALUE INVESTORS, WE LOOK FOR STOCKS THAT ARE SELLING AT ATTRACTIVE
PRICES."

THE FUND IS CLOSED TO NEW INVESTORS, EXCEPT FOR INVESTORS THROUGH 401(k), 403(b)
AND 457 PLANS. CURRENT SHAREHOLDERS MAY MAKE ADDITIONAL INVESTMENTS IN THE FUND.

8
<PAGE>
GOAL & STRATEGY
- ------------------------------------------------------------

SMALL-CAP STOCKS
Historically, stocks of smaller companies have not always moved in tandem with
those of larger companies. Over the last 40 years, small-caps have outperformed
large-caps more than 60% of the time. However, small-caps have often fallen more
severely during market downturns.

[ICON]
THE FUND SEEKS GROWTH OF CAPITAL.

To pursue this goal, the fund invests mainly in common stocks of
small-capitalization companies, which it defines as those with a total market
value of no more than $1.5 billion at the time the fund first invests in them.
The fund may continue to hold or add to a position in a stock after it has grown
beyond $1.5 billion. The fund seeks to reduce risk by diversifying among many
companies and industries.

The managers look for undervalued companies whose current product lines and
balance sheets are strong. Factors in identifying these firms may include:

- - above-average returns

- - an established market niche

- - circumstances that would make it difficult for new competitors to enter the
market

- - the ability to finance their own growth

- - sound future business prospects

This approach is designed to let the fund benefit from potential increases in
stock prices while limiting the risks typically associated with small-cap
stocks.

At times, the managers may emphasize certain industries that they believe will
benefit from market or economic trends.

The fund has the ability to change its goal without shareholder approval,
although it does not currently intend to do so.

Genesis Trust 9
<PAGE>
MAIN RISKS
- ------------------------------------------------------------

OTHER RISKS
The fund may use certain practices and securities involving additional risks.

Borrowing, securities lending, and derivatives could create leverage, meaning
that certain gains or losses could be amplified, increasing share price
movements.

Although they may add diversification, foreign securities can be riskier,
because foreign markets tend to be more volatile and currency exchange rates
fluctuate.

Stock prices of many smaller companies are based on future expectations. The
portfolio managers tend to focus on companies whose financial strength is
largely based on existing business lines rather than projected growth. While
this can help reduce risk, the fund is still subject to many of the risks of
small-cap investing. These include the risk that the fund's holdings may:

- - fluctuate more widely in price than the market as a whole

- - underperform other types of stocks when the market or the economy is not
robust

- - fall in price or be difficult to sell during market downturns

- - be noticeably affected by the fortunes of a given sector that the managers
decided to focus on

With a value approach, there is also the risk that stocks may remain undervalued
during a given period. This may happen because value stocks as a category lose
favor with investors compared to growth stocks or because the managers failed to
anticipate which stocks or industries would benefit from changing market or
economic conditions.

10 Neuberger Berman
<PAGE>
PERFORMANCE
- ------------------------------------------------------------

As a frame of reference, the table includes a broad-based market index. The
fund's performance figures include all of its expenses; the index does not
include costs of investment.

YEAR-BY-YEAR % RETURNS as of 12/31 each year*

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<S> <C>
1988
89 17.25%
90 -16.24%
91 41.55%
92 15.62%
93 14.37%
94 -1.66%
95 27.17%
96 29.90%
97 34.86%
BEST QUARTER: Q1 '91, up 25.05%
WORST QUARTER: Q3 '90, down 21.81%
Year-to-date performance as of 9/30/98: down
17.19%
</TABLE>

AVERAGE ANNUAL TOTAL % RETURNS as of 12/31/97*

<TABLE>
<CAPTION>
Since
Inception
1 Year 5 Years 9/27/88
<S> <C> <C> <C>
- -------------------------------------------------------------------
GENESIS TRUST 34.86 20.17 16.64
Russell 2000 Index 22.36 16.40 14.46
</TABLE>

The Russell 2000 is an unmanaged index of U.S. small-cap stocks.

* The fund began operating in August 1993. Performance results from September
1988 to August 1993 are actually those of another Neuberger Berman fund that
began operations in 1988, and invests in the same portfolio of securities.
Because the older fund had moderately lower expenses, its performance was
slightly better than Genesis Trust would have had. That older fund is not
offered in this prospectus.

Genesis Trust 11
<PAGE>
INVESTOR EXPENSES
- ------------------------------------------------------------

MANAGEMENT
JUDITH M. VALE and ROBERT W. D'ALELIO are Vice Presidents of Neuberger Berman
Management and principals of Neuberger Berman, LLC. Vale and D'Alelio have been
senior members of the Small Cap Group since 1992 and 1996, respectively. Vale
has co-managed the fund's assets since 1994. D'Alelio joined the firm in 1996
and has co-managed the fund's assets since 1997. From 1998 to 1996, he was a
senior portfolio manager at another firm.

FEE TABLE

SHAREHOLDER FEES None

- -------------------------------------------------------

ANNUAL OPERATING EXPENSES (% of average net assets)*

These are deducted from fund assets, so you pay them indirectly.

<TABLE>
<S> <C> <C>
Management fees 1.11
PLUS: Distribution (12b-1) fees None
Other expenses 0.08
....
EQUALS: Total annual operating expenses 1.19
</TABLE>

* THE FIGURES IN THE TABLE ARE BASED ON LAST YEAR'S EXPENSES. ACTUAL EXPENSES
THIS YEAR MAY BE HIGHER OR LOWER. THE TABLE INCLUDES COSTS PAID BY THE FUND
AND ITS SHARE OF MASTER PORTFOLIO COSTS. FOR MORE INFORMATION ON MASTER/FEEDER
FUNDS, SEE "FUND STRUCTURE" ON PAGE 53.

EXPENSE EXAMPLE

<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
- -----------------------------------------------------------
Expenses $121 $378 $654 $1443
</TABLE>

12 Neuberger Berman
<PAGE>
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Year Ended August 31, 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------
PER-SHARE DATA ($)
Data apply to a single share throughout each year indicated. You can see what the fund earned (or lost), what
it distributed to investors, and how its share price changed.
Share price (NAV) at beginning of year 10.05 10.59 12.65 14.99 21.45
PLUS: Income from investment operations
Net investment income (loss) (0.01) (0.01) (0.02) (0.01) 0.12
Net gains/losses -- realized and unrealized 0.56 2.08 2.68 6.61 (4.14)
Subtotal: income from investment operations 0.55 2.07 2.66 6.60 (4.02)
MINUS: Distributions to shareholders
Capital gain distributions 0.01 0.01 0.32 0.14 0.15
Subtotal: distributions to shareholders 0.01 0.01 0.32 0.14 0.15
...........................................
EQUALS: Share price (NAV) at end of year 10.59 12.65 14.99 21.45 17.28
- --------------------------------------------------------------------------------------------------------------
RATIOS (% of average net assets)
The ratios show the fund's expenses and net investment income (loss) -- as they actually are as well as how
they would have been if certain expense reimbursement/waiver and offset arrangements had not been in effect.
Net expenses -- actual 1.36 1.42 1.38 1.25 1.17
Gross expenses(1) 2.50 1.78 1.65 1.35 1.19
Expenses(2) -- -- 1.38 1.26 1.17
Net investment income (loss) -- actual (0.21) (0.24) (0.27) (0.16) 0.68
- --------------------------------------------------------------------------------------------------------------
OTHER DATA
Total return shows how an investment in the fund would have performed over each year, assuming all
distributions were reinvested. The turnover rate reflects how actively the fund bought and sold securities.
Total return(3) (%) 5.47 19.51 21.44 44.31 (18.88)
Net assets at end of year (in millions of dollars) 3.1 30.6 65.2 382.7 704.5
Portfolio turnover rate (%) 63 37 21 18 18
</TABLE>

(1) SHOWS WHAT THIS RATIO WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE
REIMBURSEMENT/WAIVER.
(2) SHOWS WHAT EXPENSES WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE OFFSET
ARRANGEMENTS; THE MANAGEMENT FEE WAIVER IS INCLUDED, HOWEVER. THIS
CALCULATION IS REQUIRED FOR ALL PERIODS ENDING AFTER 9/1/95.
(3) WOULD HAVE BEEN LOWER IF NEUBERGER BERMAN MANAGEMENT HAD NOT REIMBURSED
CERTAIN EXPENSES
AND/OR WAIVED A PORTION OF THE MANAGEMENT FEE.

Genesis Trust 13
<PAGE>
[]

NEUBERGER BERMAN
GUARDIAN TRUST
- --------------------------------------------------------------------------------

Ticker Symbol: NBGTX ABOVE: PORTFOLIO MANAGERS KEVIN L. RISEN AND
ALLAN "RICK" WHITE

"WITH GUARDIAN TRUST WE LOOK FOR ESTABLISHED COMPANIES THAT ARE EITHER 'UNDER A
ROCK' OR 'UNDER A CLOUD' -- MEANING THAT THEY'RE EITHER NOT WELL FOLLOWED ON
WALL STREET OR THEY'RE TEMPORARILY OUT OF FAVOR WITH OTHER INVESTORS. IT'S VERY
MUCH A CONTINUATION OF THE CLASSIC VALUE APPROACH THE FUND HAS USED SINCE ITS
FOUNDING IN 1950."

14
<PAGE>
GOAL & STRATEGY
- ------------------------------------------------------------

LARGE-CAP STOCKS
Large companies are usually well-established. They may have a variety of
products and business lines and a sound financial base that can help them
weather bad times.

Compared to smaller companies, large companies can be less responsive to changes
and opportunities. At the same time, their returns have sometimes led those of
smaller companies, often with lower volatility.

[ICON]
THE FUND SEEKS LONG-TERM GROWTH OF CAPITAL; CURRENT INCOME IS A
SECONDARY GOAL.

To pursue these goals, the fund invests mainly in common stocks of
large-capitalization companies. Because the managers tend to find that
undervalued stocks may be more common in certain sectors of the economy at a
given time, the fund may emphasize those sectors.

The fund seeks to reduce risk by diversifying among a large number of companies
across many different industries and economic sectors, and by managing its
overall exposure to a wide variety of risk factors.

The managers look for well managed companies whose stock prices are undervalued.
Factors in identifying these firms may include:

- - solid balance sheets

- - above-average returns

- - low price-to-earnings ratios

- - consistent earnings

The fund has the ability to change its goal without shareholder approval,
although it does not currently intend to do so.

Guardian Trust 15
<PAGE>
MAIN RISKS
- ------------------------------------------------------------

OTHER RISKS
The fund may use certain practices and securities involving additional risks.

Although they may add diversification, foreign securities can be riskier,
because foreign markets tend to be more volatile and currency exchange rates
fluctuate.

When the fund anticipates unusual market or other conditions, it may
tem-porarily depart from its goal and invest substantially in high-quality
short-term investments. This could help the fund avoid losses but may mean lost
opportunities.

[ICON] Most of the fund's performance
depends on what happens in the stock market. The market's behavior is
unpredictable, particularly in the short term.
Because of this, the value of your investment will rise and fall, and you could
lose money.

At times, large-cap stocks may lag other types of stocks in performance, which
could cause the fund to perform less well than certain other funds. While they
may at times be less risky than small-cap stocks, large-cap stocks may perform
better or less well over time.

To the extent that a value approach dictates an emphasis on certain sectors of
the market at any given time, the fund's performance is likely to be
disproportionately affected by the economic, market, and other developments that
may influence those sectors. The fund's performance may also suffer if a sector
does not perform as the portfolio managers expected.

16 Neuberger Berman
<PAGE>
PERFORMANCE
- ------------------------------------------------------------

As a frame of reference, the table includes a broad-based market index. The
fund's performance figures include all of its expenses; the index does not
include costs of investment.

DISTRIBUTION HISTORY
In keeping with its goal, the fund has paid an annual income distribution every
quarter since December 1993, the year of its inception. It has also paid an
annual capital gain distribution during the same period. Of course, the fund
cannot guarantee that it will continue to make these distributions.

[ICON] The bar chart below shows how
performance has varied from year to year. The table below the chart shows what
the returns would equal if you averaged out actual performance over
various lengths of time. This information is based on past performance; it's not
a prediction of future results.

YEAR-BY-YEAR % RETURNS as of 12/31 each year*

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<S> <C>
1988 28.05%
89 21.50%
90 -4.71%
91 34.33%
92 19.01%
93 13.52%
94 1.52%
95 31.99%
96 17.74%
97 17.83%
BEST QUARTER: Q1 '91, up 17.42%
WORST QUARTER: Q3 '90, down 15.76%
Year-to-date performance as of 9/30/98: down
16.88%
</TABLE>

AVERAGE ANNUAL TOTAL % RETURNS as of 12/31/97*

<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
<S> <C> <C> <C>
- -------------------------------------------------------------------
GUARDIAN TRUST 17.83 16.11 17.46
S&P 500 Index 33.32 20.22 18.00
</TABLE>

The S&P 500 is an unmanaged index of U.S. stocks.

* The fund began operating in August 1993. Performance results from 1988 to
August 1993 are actually those of another Neuberger Berman fund that began
operations in 1950, and invests in the same portfolio of securities. Because
the older fund had moderately lower expenses, its performance was slightly
better than Guardian Trust would have had. That older fund is not offered in
this prospectus.

Guardian Trust 17
<PAGE>
INVESTOR EXPENSES
- ------------------------------------------------------------

MANAGEMENT
KEVIN L. RISEN and ALLAN R. WHITE III are Vice Presidents of Neuberger Berman
Management and principals of Neuberger Berman, LLC. Risen has co-managed the
fund's assets since 1996. He joined Neuberger Berman in 1992 as an analyst, and
has been a portfolio manager since 1995. White has been co-manager of the fund
since September 1998, when he joined the firm. From 1989 to 1998 he was a
portfolio manager at another firm.

FEE TABLE

SHAREHOLDER FEES None

- -------------------------------------------------------

ANNUAL OPERATING EXPENSES (% of average net assets)*

These are deducted from fund assets, so you pay them indirectly.

<TABLE>
<S> <C> <C>
Management fees 0.84
PLUS: Distribution (12b-1) fees None
Other expenses 0.03
....
EQUALS: Total annual operating expenses 0.87
</TABLE>

EXPENSE EXAMPLE

<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
- -----------------------------------------------------------
Expenses $89 $278 $482 $1073
</TABLE>

18 Neuberger Berman
<PAGE>
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Year Ended August 31, 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
PER-SHARE DATA ($)
Data apply to a single share throughout each year indicated. You can see what the fund earned (or lost), what it distributed
to investors, and how its share price changed.
Share price (NAV) at beginning of year 10.27 11.27 13.83 14.24 19.47
PLUS: Income from investment operations
Net investment income 0.09 0.13 0.16 0.08 0.09
Net gains/losses -- realized and unrealized 0.99 2.55 0.55 5.48 (3.93)
Subtotal: income from investment operations 1.08 2.68 0.71 5.56 (3.84)
MINUS: Distributions to shareholders
Income dividends 0.07 0.12 0.14 0.10 0.10
Capital gain distributions 0.01 -- 0.16 0.23 1.29
Subtotal: distributions to shareholders 0.08 0.12 0.30 0.33 1.39
.................................................................
EQUALS: Share price (NAV) at end of year 11.27 13.83 14.24 19.47 14.24
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (% of average net assets)
The ratios show the fund's expenses and net investment income -- as they actually are as well as how they would have been if
certain expense reimbursement and offset arrangements had not been in effect.
Net expenses -- actual 0.80 0.90 0.92 0.88 0.87
Gross expenses(1) 1.52 0.96 0.92 -- --
Expenses(2) -- -- 0.92 0.88 0.87
Net investment income -- actual 1.50 1.35 1.26 0.47 0.50
- ----------------------------------------------------------------------------------------------------------------------------
OTHER DATA
Total return shows how an investment in the fund would have performed over each year, assuming all distributions were
reinvested. The turnover rate reflects how actively the fund bought and sold securities.
Total return (%) 10.57(3) 24.01(3) 5.19(3) 39.56 (20.88)
Net assets at end of year (in millions of dollars) 75.8 683.1 1,340.1 2,269.8 1,529.5
Portfolio turnover rate (%) 24 26 37 50 60
</TABLE>

(1) SHOWS WHAT THIS RATIO WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE
REIMBURSEMENT.
(2) SHOWS WHAT EXPENSES WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE OFFSET
ARRANGEMENTS. THIS CALCULATION IS REQUIRED FOR ALL PERIODS ENDING AFTER
9/1/95.
(3) Would have been lower if Neuberger Berman Management had not reimbursed
certain expenses.

Guardian Trust 19
<PAGE>
[]

NEUBERGER BERMAN
INTERNATIONAL TRUST
- --------------------------------------------------------------------------------

PORTFOLIO MANAGER VALERIE CHANG

"IN IDENTIFYING ATTRACTIVE STOCKS FROM AMONG THE MANY THOUSANDS
CURRENTLY AVAILABLE OUTSIDE THE U.S., IT'S IMPORTANT TO HAVE A CLEAR
STRATEGY. THIS FUND USES A COMBINATION OF GROWTH AND VALUE CRITERIA,
WHILE ALSO CONSIDERING LARGER SCALE ECONOMIC FACTORS."

20
<PAGE>
GOAL & STRATEGY
- ------------------------------------------------------------

FOREIGN STOCKS
There are many promising opportunities for investment outside the U.S. These
foreign markets often respond to different factors, and therefore tend to follow
cycles that are different from each other.

For this reason, many investors put a portion of their portfolios in foreign
investments as a way of gaining further diversification. While foreign stock
markets can be risky, investors gain an opportunity to add potential long-term
growth.

[ICON]
THE FUND SEEKS LONG-TERM GROWTH OF CAPITAL BY INVESTING PRIMARILY IN
COMMON STOCKS OF FOREIGN COMPANIES.

To pursue this goal, the fund invests mainly in foreign companies of any size,
including companies in developed and emerging industrialized markets. The fund
defines a foreign company as one that is organized outside of the United States
and conducts the majority of its business abroad.

The fund seeks to reduce risk by diversifying among many industries. Although it
has the flexibility to invest a significant portion of its assets in one country
or region, it generally intends to remain well-diversified across countries and
geographical regions.

In picking stocks, the manager looks for well-managed companies that show
potential for above-average growth or whose stock prices are undervalued.
Factors in identifying these firms may include strong fundamentals, such as
attractive cash flows and balance sheets, as well as prices that are reasonable
in light of projected earnings growth. The manager also considers the outlooks
for various countries and regions around the world, examining economic, market,
social, and political conditions.

The fund has the ability to change its goal without shareholder approval,
although it does not currently intend to do so.

International Trust 21
<PAGE>
MAIN RISKS
- ------------------------------------------------------------

OTHER RISKS
The fund may use certain practices and securities involving additional risks.

Borrowing, securities lending, and derivatives could create leverage, meaning
that certain gains or losses could be amplified, increasing share price
movements. The fund may use derivatives for hedging and for speculation. Hedging
could reduce the fund's losses from currency fluctuations, but could also reduce
its gains. A derivative instrument could fail to perform as expected. Any
speculative investment could cause a loss for the fund.

[ICON] Most of the fund's performance
depends on what happens in international stock markets. The behavior of these
markets is unpredictable, particularly in the short term. Because of
this, the value of your investment will rise and fall, sometimes sharply, and
you could lose money.

Foreign stocks are riskier than comparable U.S. stocks. This is in part because
foreign markets are less developed and foreign governments, economies, laws, tax
codes and securities firms may be less stable. There is also a higher chance
that key information will be unavailable, incomplete, or inaccurate. As a
result, foreign stocks can fluctuate more widely in price than comparable U.S.
stocks, and they may also be less liquid. These risks are generally greater in
emerging markets. Over a given period of time,
foreign stocks may underperform U.S. stocks --
sometimes for years. The fund could also under-
perform if the manager invests in the wrong
countries or regions.

Changes in currency exchange rates bring an added dimension of risk. Currency
fluctuations could erase investment gains or add to investment losses.

To the extent that the fund invests in growth stocks or in value stocks, it
takes on the risks associated with both types of stocks. Growth stocks may
suffer more than value stocks during market downturns, while value stocks may
remain undervalued. Either type of stock may underperform the other during a
given period.

22 Neuberger Berman
<PAGE>
PERFORMANCE
- ------------------------------------------------------------

As a frame of reference, the table includes a broad-based market index. The
fund's performance figures include all of its expenses; the index does not
include costs of investment.

Because the fund had a policy of investing primarily in mid- and large-cap
stocks prior to September 1998, its performance during that time would have been
different if current policies had been in effect.

[ICON] The bar chart below shows how
performance has varied from year to year. The table below the chart shows what
the returns would equal if you averaged out actual performance over
various lengths of time. This information is based on past performance; it's not
a prediction of future results.

YEAR-BY-YEAR % RETURNS as of 12/31 each year*

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<S> <C>
1988
89
90
91
92
93
94
95 7.88%
96 23.69%
97 11.21%
BEST QUARTER: Q2 '97, up 9.30%
WORST QUARTER: Q4 '97, down 8.67%
Year-to-date performance as of 9/30/98: down
11.89%
</TABLE>

AVERAGE ANNUAL TOTAL % RETURNS as of 12/31/97*

<TABLE>
<CAPTION>
Since
Inception
1 Year 6/15/94
<S> <C> <C>
- --------------------------------------------------------------
INTERNATIONAL TRUST 11.21 11.54
EAFE Index 2.06 5.38
</TABLE>

The EAFE is an unmanaged index of stocks from Europe, Australasia, and the Far
East.

* The fund began operating in June 1998. Performance results from June 1994 to
June 1998 are actually those of another Neuberger Berman fund that began
operations in 1994, and invests in the same portfolio of securities. Because
the older fund had moderately lower expenses, its performance was slightly
better than International Trust would have had. That older fund is not offered
in this prospectus.

International Trust 23
<PAGE>
INVESTOR EXPENSES
- ------------------------------------------------------------

MANAGEMENT
VALERIE CHANG is an Assistant Vice President of Neuberger Berman Management. In
1996 she joined the firm and became assistant manager of the fund. She has been
the manager since 1997. She began her career in 1990 in banking, and from 1995
to 1996 was a senior securities analyst at another firm.

FEE TABLE

SHAREHOLDER FEES None

- -------------------------------------------------------
ANNUAL OPERATING EXPENSES (% of average net assets)*

These are deducted from fund assets, so you pay them indirectly.

<TABLE>
<S> <C> <C>
Management fees 1.25
PLUS: Distribution (12b-1) fees None
Other expenses** 0.67
....
EQUALS: Total annual operating expenses 1.92
</TABLE>

* NEUBERGER BERMAN MANAGEMENT REIMBURSES CERTAIN EXPENSES OF THE FUND SO THAT
THE TOTAL ANNUAL OPERATING EXPENSES OF THE FUND ARE LIMITED TO 1.70% OF
AVERAGE NET ASSETS. THIS ARRANGEMENT CAN BE TERMINATED UPON SIXTY DAYS'
NOTICE TO THE FUND. IN ADDITION, THE ARRANGEMENT DOES NOT COVER INTEREST,
TAXES, BROKERAGE COMMISSIONS, AND EXTRAORDINARY EXPENSES. THE TABLE INCLUDES
COSTS PAID BY THE FUND AND ITS SHARE OF MASTER PORTFOLIO COSTS. FOR MORE
INFORMATION ON MASTER/FEEDER FUNDS, SEE "FUND STRUCTURE" ON PAGE 53.
** OTHER EXPENSES ARE BASED ON ESTIMATED AMOUNTS FOR THE CURRENT FISCAL YEAR.

EXPENSE EXAMPLE

<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
- -----------------------------------------------------------
Expenses*** $195 $603 $1037 $2243
</TABLE>

*** UNDER THE FUND'S EXPENSE REIMBURSEMENT ARRANGEMENT DESCRIBED IN THE FOOTNOTE
ABOVE, YOUR COSTS FOR THE ONE-, THREE-, FIVE- AND TEN-YEAR PERIODS WOULD BE
$173, $536, $923 AND $2009, RESPECTIVELY.

24 Neuberger Berman
<PAGE>
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Year Ended August 31, 1998(1)
<S> <C> <C>
- ----------------------------------------------------------------------------------------
PER-SHARE DATA ($)
Data apply to a single share throughout the period indicated. You can see what the fund
earned (or lost), what it distributed to investors, and how its share price changed.
Share price (NAV) at beginning of period 17.13
PLUS: Income from investment operations
Net investment loss (0.02)
Net gains/losses -- realized and unrealized (3.24)
Subtotal: income from investment operations (3.26)
.........
EQUALS: Share price (NAV) at end of period 13.87
- ----------------------------------------------------------------------------------------
RATIOS (% of average net assets)
The ratios show the fund's expenses and net investment loss -- as they actually are as
well as how they would have been if certain expense reimbursement and offset
arrangements had not been in effect.
Net expenses -- actual 1.70(2)
Gross expenses(3) 6.02(2)
Expenses(4) 1.70(2)
Net investment loss -- actual (0.54)(2)
- ----------------------------------------------------------------------------------------
OTHER DATA
Total return shows how an investment in the fund would have performed over the period,
assuming all distributions were reinvested. The turnover rate reflects how actively the
fund bought and sold securities.
Total return (%) (19.03)(5)(6)
Net assets at end of year (in millions of dollars) 1.8
Portfolio turnover rate (%) 46
</TABLE>

(1) PERIOD FROM 6/29/98 (BEGINNING OF OPERATIONS) TO 8/31/98.

(2) ANNUALIZED.

(3) SHOWS WHAT THIS RATIO WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE
REIMBURSEMENT.

(4) SHOWS WHAT EXPENSES WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE OFFSET
ARRANGEMENTS. THIS CALCULATION IS REQUIRED FOR ALL PERIODS ENDING AFTER
9/1/95.

(5) NOT ANNUALIZED.

(6) WOULD HAVE BEEN LOWER IF NEUBERGER BERMAN MANAGEMENT HAD NOT REIMBURSED
CERTAIN EXPENSES.

International Trust 25
<PAGE>
[]

NEUBERGER BERMAN
MANHATTAN TRUST
- --------------------------------------------------------------------------------

Ticker Symbol: NBMTX ABOVE: PORTFOLIO MANAGERS JENNIFER K. SILVER
AND BROOKE A. COBB

"WITHOUT QUESTION, WE ARE GROWTH INVESTORS. WE LOOK FOR COMPANIES THAT WE THINK
WILL DELIVER POSITIVE EARNINGS SURPRISES, PARTICULARLY THOSE WITH THE POTENTIAL
TO DO SO CONSISTENTLY. IDEALLY, WE WANT TO IDENTIFY COMPANIES THAT WILL SOMEDAY
RANK AMONG THE FORTUNE 500."

26
<PAGE>
GOAL & STRATEGY
- ------------------------------------------------------------

MID-CAP STOCKS
Mid-cap stocks have historically shown risk/return characteristics that are in
between those of small- and large-cap stocks. Their prices can rise and fall
substantially, although they have the potential to offer comparatively
attractive long-term returns.

Mid-caps are less widely followed on Wall Street than large-caps, which can make
it comparatively easier to find attractive stocks that are not overpriced.

GROWTH INVESTING
For growth investors, the aim is to invest in companies that are already
successful but could be even more so. Often, these stocks are in emerging or
rapidly growing industries.

While most growth stocks are known to investors, they may not yet have reached
their full potential. The growth investor looks for reasons for continued
success.

[ICON]
THE FUND SEEKS GROWTH OF CAPITAL.

To pursue this goal, the fund invests mainly in common stocks of
mid-capitalization companies. The fund seeks to reduce risk by diversifying
among many companies and industries.

The managers look for fast-growing companies that are in new or rapidly evolving
industries. Factors in identifying these firms may include:

- - above-average growth of earnings

- - earnings that have exceeded analysts' expectations

The managers may also look for other characteristics in a company, such as
financial strength, a strong position relative to competitors and a stock price
that is reasonable in light of its growth rate.

The managers follow a disciplined selling strategy, and may drop a stock from
the portfolio when it reaches a target price, fails to perform as expected, or
appears substantially less desirable than another stock.

The fund has the ability to change its goal without shareholder approval,
although it does not currently intend to do so.

Manhattan Trust 27
<PAGE>
MAIN RISKS
- ------------------------------------------------------------

OTHER RISKS
The fund may use certain practices and securities involving additional risks.

Borrowing, securities lending, and derivatives could create leverage, meaning
that certain gains or losses could be amplified, increasing share price
movements.

Although they may add diversification, foreign securities can be riskier,
because foreign markets tend to be more volatile and currency exchange rates
fluctuate.

By focusing on mid-cap stocks, the fund is subject to their risks, including the
risk its holdings may:

- - fluctuate more widely in price than the market as a whole

- - underperform other types of stocks when the market or the economy is not
robust

- - fall in price or be difficult to sell during market downturns

Because the prices of most growth stocks are based on future expectations, these
stocks tend to be more sensitive than value stocks to bad economic news and
negative earnings surprises. While the prices of any type of stock can rise and
fall rapidly, growth stocks in particular may underperform during periods when
the market favors value stocks. The fund's performance may also suffer if
certain stocks do not perform as the portfolio managers expected. To the extent
that the managers sell stocks before they reach their market peak, the fund may
miss out on opportunities for higher performance.

Through active trading, the fund may have a high portfolio turnover rate, which
can mean higher tax-
able distributions and lower performance due to
increased brokerage costs.

28 Neuberger Berman
<PAGE>
PERFORMANCE
- ------------------------------------------------------------

As a frame of reference, the table includes a broad-based market index as well
as a more focused index of mid-cap growth stocks. The fund's performance figures
include all of its expenses; the indices do not include costs of investment.

Because the fund had a policy of investing in stocks of all capitalizations and
used a comparatively more value-oriented investment approach prior to July 1997,
its performance would have been different if current policies had been in
effect.

[ICON] The bar chart below shows how
performance has varied from year to year. The table below the chart shows what
the returns would equal if you averaged out actual performance over
various lengths of time. This information is based on past performance; it's not
a prediction of future results.

YEAR-BY-YEAR % RETURNS as of 12/31 each year*

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<S> <C>
1988 18.31%
89 29.09%
90 -8.05%
91 30.89%
92 17.77%
93 10.02%
94 -3.43%
95 30.82%
96 9.74%
97 29.33%
BEST QUARTER: Q1 '91, up 14.75%
WORST QUARTER: Q3 '90, down 15.88%
Year-to-date performance as of 9/30/98: down
8.97%
</TABLE>

AVERAGE ANNUAL TOTAL % RETURNS as of 12/31/97*

<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
<S> <C> <C> <C>
- -------------------------------------------------------------------
MANHATTAN TRUST 29.33 14.55 15.62
Russell Midcap Growth Index 22.54 15.98 16.80
S&P 500 Index 33.32 20.22 18.00
</TABLE>

The Russell Midcap Growth is an unmanaged index of U.S. mid-cap growth stocks.

The S&P 500 is an unmanaged index of U.S. stocks.

* The fund began operating in August 1993. Performance results from 1988 to
August 1993 are actually those of another fund that Neuberger Berman
Management has advised since 1979, and that invests in the same portfolio of
securities. Because the older fund had moderately lower expenses, its
performance was slightly better than Manhattan Trust would have had. That
older fund is not offered in this prospectus.

Manhattan Trust 29
<PAGE>
INVESTOR EXPENSES
- ------------------------------------------------------------

MANAGEMENT
JENNIFER K. SILVER is a Vice President of Neuberger Berman Management and a
principal of Neuberger Berman, LLC. Currently the Director of the Growth Equity
Group, she has been co-manager of the fund since joining the firm in 1997. From
1981 to 1997, she was an analyst and a portfolio manager at another firm.

BROOKE A. COBB is a Vice President of Neuberger Berman Management. He has been
co-manager of the fund since joining the firm in 1997. From 1972 to 1997, he was
a portfolio manager at several other firms.

[ICON] The fund does not charge you any fees for
buying, selling, or exchanging shares, or
for maintaining your account. Your only
fund cost is your share of annual operating expenses.
The expense example can help you compare costs
among funds.

FEE TABLE

SHAREHOLDER FEES None

- -------------------------------------------------------

ANNUAL OPERATING EXPENSES (% of average net assets)*

These are deducted from fund assets, so you pay them indirectly.

<TABLE>
<S> <C> <C>
Management fees 0.93
PLUS: Distribution (12b-1) fees None
Other expenses 0.22
....
EQUALS: Total annual operating expenses 1.15
</TABLE>

* NEUBERGER BERMAN MANAGEMENT REIMBURSES CERTAIN EXPENSES OF THE FUND SO THAT
ITS TOTAL ANNUAL OPERATING EXPENSES ARE NOT MORE THAN 0.10% ABOVE THOSE OF
ANOTHER NEUBERGER BERMAN FUND THAT INVESTS IN THE SAME PORTFOLIO OF
SECURITIES. THIS ARRANGEMENT DOES NOT COVER INTEREST, TAXES, BROKERAGE
COMMISSIONS, AND EXTRAORDINARY EXPENSES. UNDER THIS ARRANGEMENT, WHICH
NEUBERGER BERMAN MANAGEMENT CAN TERMINATE UPON SIXTY DAYS' NOTICE TO THE FUND,
TOTAL ANNUAL OPERATING EXPENSES OF THE FUND LAST YEAR WERE LIMITED TO 1.04% OF
THE FUND'S AVERAGE NET ASSETS. ACTUAL EXPENSES THIS YEAR MAY BE HIGHER OR
LOWER. THE TABLE INCLUDES COSTS PAID BY THE FUND AND ITS SHARE OF MASTER
PORTFOLIO COSTS. FOR MORE INFORMATION ON MASTER/FEEDER FUNDS, SEE "FUND
STRUCTURE" ON PAGE 53.

EXPENSE EXAMPLE

<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
- -----------------------------------------------------------
Expenses** $117 $365 $633 $1398
</TABLE>

** UNDER THE FUND'S EXPENSE REIMBURSEMENT ARRANGEMENT DESCRIBED IN THE FOOTNOTE
ABOVE, YOUR COSTS FOR THE ONE-, THREE-, FIVE- AND TEN-YEAR PERIODS WOULD BE
$106, $331, $574 AND $1271, RESPECTIVELY.

30 Neuberger Berman
<PAGE>
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Year Ended August 31, 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------
PER-SHARE DATA ($)
Data apply to a single share throughout each year indicated. You can see what the fund earned (or lost), what
it distributed to investors, and how its share price changed.
Share price (NAV) at beginning of year 10.01 10.37 12.99 12.18 15.77
PLUS: Income from investment operations
Net investment income (loss) 0.01 -- (0.04) (0.04) (0.07)
Net gains/losses -- realized and unrealized 0.36 2.67 (0.34) 4.55 (1.40)
Subtotal: income from investment operations 0.37 2.67 0.38 4.51 (1.47)
MINUS: Distributions to shareholders
Income dividends 0.01 0.01 -- -- --
Capital gain distributions -- 0.04 0.43 0.92 2.69
Subtotal: distributions to shareholders 0.01 0.05 0.43 0.92 2.69
...........................................
EQUALS: Share price (NAV) at end of year 10.37 12.99 12.18 15.77 11.61
- --------------------------------------------------------------------------------------------------------------
RATIOS (% of average net assets)
The ratios show the fund's expenses and net investment income (loss) -- as they actually are as well as how
they would have been if certain expense reimbursement and offset arrangements had not been in effect.
Net expenses -- actual 0.96 1.06 1.08 1.09 1.04
Gross expenses(1) 2.50 1.46 1.25 1.23 1.15
Expenses(2) -- -- 1.08 1.09 1.04
Net investment income (loss) -- actual 0.16 (0.03) (0.38) (0.30) (0.52)
- --------------------------------------------------------------------------------------------------------------
OTHER DATA
Total return shows how an investment in the fund would have performed over each year, assuming all
distributions were reinvested. The turnover rate reflects how actively the fund bought and sold securities.
Total return(3) (%) 3.70 25.90 (2.98) 38.84 (11.23)
Net assets at end of year (in millions of dollars) 12.1 35.6 48.2 51.1 46.1
Portfolio turnover rate (%) 50 44 53 89 90
</TABLE>

The figures above have been audited by PricewaterhouseCoopers LLP, the fund's
independent accountants. Their report, along with full financial statements,
appears in the fund's most recent shareholder report (see back cover).

(1) SHOWS WHAT THIS RATIO WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE
REIMBURSEMENT.

(2) SHOWS WHAT EXPENSES WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE OFFSET
ARRANGEMENTS. THIS CALCULATION IS REQUIRED FOR ALL PERIODS ENDING AFTER
9/1/95.

(3) WOULD HAVE BEEN LOWER IF NEUBERGER BERMAN MANAGEMENT HAD NOT REIMBURSED
CERTAIN EXPENSES.

Manhattan Trust 31
<PAGE>
[]

NEUBERGER BERMAN
MILLENNIUM TRUST
- --------------------------------------------------------------------------------

ABOVE: PORTFOLIO MANAGERS JENNIFER K. SILVER
AND MICHAEL F. MALOUF

"WE MAKE IT OUR BUSINESS TO TRACK DOWN PROMISING SMALL-CAP COMPANIES WHEREVER
THEY MAY BE. AS A RESULT, THIS FUND ENABLES INVESTORS WHO CAN ACCEPT THE RISKS
OF SMALL-CAP STOCKS TO PURSUE THE POTENTIAL FOR LONG-TERM GROWTH THAT
SMALL-CAPS MAY PROVIDE."

32
<PAGE>
GOAL & STRATEGY
- ------------------------------------------------------------

SMALL-CAP STOCKS
Historically, stocks of smaller companies have
not always moved in tandem with those of larger companies. Over the last 40
years, small-caps have outperformed large-caps more than
60% of the time. However,
small-caps have often
fallen more severely during
market downturns.

GROWTH INVESTING
For growth investors, the aim is to invest in companies that are already
successful but could be even more so. Often, these stocks are in emerging or
rapidly growing industries.

While most growth stocks are known to investors, they may not yet have reached
their full potential. The growth investor looks for reasons for continued
success.

[ICON]
THE FUND SEEKS GROWTH OF CAPITAL.

The managers take a growth approach to selecting stocks, looking for new
companies that are in the developmental stage as well as older companies that
appear poised to grow because of new products, markets or management. Factors in
identifying these firms may include financial strength, a strong position
relative to competitors and a stock price that is reasonable in light of its
growth rate.

The fund has the ability to change its goal without shareholder approval,
although it does not currently intend to do so.

Millennium Trust 33
<PAGE>
MAIN RISKS
- ------------------------------------------------------------

OTHER RISKS
The fund may use certain practices and securities involving additional risks.

Borrowing, securities lending, and derivatives could create leverage, meaning
that certain gains or losses could be amplified, increasing share price
movements.

Although they may add diversification, foreign securities can be riskier,
because foreign markets tend to be more volatile and currency exchange rates
fluctuate.

By focusing on small-cap stocks, the fund is subject to many of their risks,
including the risk its holdings may:

- - fluctuate more widely in price than the market as a whole

- - underperform other types of stocks, especially when the market or the economy
is not robust

- - fall in price or be difficult to sell during market downturns

- - be noticeably affected by the fortunes of those sectors in which small-cap
growth stocks may be concentrated

Through active trading, the fund may have a high portfolio turnover rate, which
can mean higher tax-
able distributions and lower performance due to
increased brokerage costs.

34 Neuberger Berman
<PAGE>
INVESTOR EXPENSES
- ------------------------------------------------------------

MANAGEMENT
MICHAEL F. MALOUF is a Vice President of Neuberger Berman Management. He has
been co-manager of the fund since its inception in 1998, the year he joined the
firm. From 1991 to 1998 he was a portfolio manager at another firm.

JENNIFER K. SILVER is a Vice President of Neuberger Berman Management and a
principal of Neuberger Berman, LLC. Currently the Director of the Growth Equity
Group, since 1997, she has been co-manager of the fund since 1998. From 1981 to
1997, she was an analyst and a portfolio manager at another firm.

NEUBERGER BERMAN MANAGEMENT is the fund's investment manager, administrator, and
distributor. It engages Neuberger Berman, LLC as sub-adviser to provide
management and related services.

FEE TABLE

SHAREHOLDER FEES None

- -------------------------------------------------------

ANNUAL OPERATING EXPENSES (% of average net assets)*
These are deducted from fund assets, so you pay them indirectly.

<TABLE>
<S> <C> <C>
Management fees 1.25
PLUS: Distribution (12b-1) fees None
Other expenses** 1.20
....
EQUALS: Total annual operating expenses 2.45
</TABLE>

* NEUBERGER BERMAN MANAGEMENT REIMBURSES CERTAIN EXPENSES OF THE FUND SO THAT
THE TOTAL ANNUAL OPERATING EXPENSES OF THE FUND ARE LIMITED TO 1.75% OF
AVERAGE NET ASSETS. THIS ARRANGEMENT CAN BE TERMINATED UPON SIXTY DAYS'
NOTICE TO THE FUND. IN ADDITION, THE ARRANGEMENT DOES NOT COVER INTEREST,
TAXES, BROKERAGE COMMISSIONS, AND EXTRAORDINARY EXPENSES. THE TABLE INCLUDES
COSTS PAID BY THE FUND AND ITS SHARE OF MASTER PORTFOLIO COSTS. FOR MORE
INFORMATION ON MASTER/FEEDER FUNDS, SEE "FUND STRUCTURE" ON PAGE 53.

** OTHER EXPENSES ARE BASED ON ESTIMATED AMOUNTS FOR THE CURRENT FISCAL YEAR.

EXPENSE EXAMPLE

<TABLE>
<CAPTION>
1 Year 3 Years
<S> <C> <C>
- --------------------------------------
Expenses*** $248 $764
</TABLE>

*** UNDER THE FUND'S EXPENSE REIMBURSEMENT ARRANGEMENT DESCRIBED IN THE FOOTNOTE
ABOVE, YOUR COSTS FOR THE ONE- AND THREE-YEAR PERIODS WOULD BE $178 AND
$551, RESPECTIVELY.

BECAUSE THE FUND IS NEW IT DOES NOT HAVE PERFORMANCE OR FINANCIAL HIGHLIGHTS
TO REPORT.

Millennium Trust 35
<PAGE>
[PHOTO]

NEUBERGER BERMAN
PARTNERS TRUST
- --------------------------------------------------------------------------------

Ticker Symbol: NBPTX ABOVE: PORTFOLIO MANAGERS ROBERT I.
GENDELMAN, MICHAEL M. KASSEN AND S. BASU
MULLICK

"OUR MANAGEMENT APPROACH FOCUSES ON FINDING UNDERVALUED
COMPANIES. IN PARTICULAR, WE LOOK FOR 'FALLEN ANGELS' -- GROWTH
STOCKS WHOSE PRICES HAVE HIT NEW LOWS. AT THE SAME TIME, WE
TEND TO BE DISCIPLINED IN MAKING SELL DECISIONS. WE WOULD RATHER
SELL EARLY THAN SELL TOO LATE."

36
<PAGE>
GOAL & STRATEGY
- ------------------------------------------------------------

MID- AND LARGE-
CAP STOCKS
Large companies are usually well-established. Compared to mid-cap companies,
they may be less responsive to change, but their returns have sometimes led
those of mid-cap companies, often with lower volatility.

Mid-cap stocks have historically performed more like small-caps than like large-
caps. Their prices can rise and fall substantially, although they have the
potential to offer attractive long-term returns.

[ICON]
THE FUND SEEKS GROWTH OF CAPITAL.

To pursue this goal, the fund invests mainly in common stocks of mid- to
large-capitalization companies. The fund seeks to reduce risk by diversifying
among many companies and industries.

The managers look for well-managed companies whose stock prices are undervalued.
Factors in identifying these firms may include:

- - strong fundamentals

- - consistent cash flow

- - a sound track record through all phases of the market cycle

The managers may also look for other characteristics in a company, such as a
strong position relative to competitors, a high level of stock ownership among
management, and a recent sharp decline in stock price that appears to be the
result of a short-term market overreaction to negative news.

The fund generally considers selling a stock when it reaches the managers'
target price, when it fails to perform as expected, or when other opportunities
appear more attractive.

The fund has the ability to change its goal without shareholder approval,
although it does not currently intend to do so.

Partners Trust 37
<PAGE>
MAIN RISKS
- ------------------------------------------------------------

OTHER RISKS
The fund may use certain practices and securities involving additional risks.

Borrowing, securities lending, and derivatives could create leverage, meaning
that certain gains or losses could be amplified, increasing share price
movements.

Although they may add diversification, foreign securities can be riskier,
because foreign markets tend to be more volatile and currency exchange rates
fluctuate.

To the extent that the fund emphasizes mid- or large-cap stocks, it takes on the
associated risks. Mid-cap stocks tend to be somewhat riskier than large-cap
stocks; over time, however, large-cap stocks may perform better or less well
than mid-cap stocks. At any given time, one or both groups of stocks may be out
of favor with investors. If the fund emphasizes either group of stocks, its
performance could suffer.

Through active trading, the fund may have a high portfolio turnover rate, which
can mean higher tax-
able distributions and lower performance due to
increased brokerage costs.

38 Neuberger Berman
<PAGE>
PERFORMANCE
- ------------------------------------------------------------

As a frame of reference, the table includes a broad-based market index. The
fund's performance figures include all of its expenses; the index does not
include costs of investment.

[ICON] The bar chart below shows how
performance has varied from year to year. The table below the chart shows what
the returns would equal if you averaged out actual performance over
various lengths of time. This information is based on past performance; it's not
a prediction of future results.

YEAR-BY-YEAR % RETURNS as of 12/31 each year*

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<S> <C>
1988 15.46%
89 22.78%
90 -5.11%
91 22.36%
92 17.52%
93 15.45%
94 -0.99%
95 35.15%
96 26.45%
97 29.10%
BEST QUARTER: Q2 '97, up 14.03%
WORST QUARTER: Q3 '90, down 9.61%
Year-to-date performance as of 9/30/98: down
8.71%
</TABLE>

AVERAGE ANNUAL TOTAL % RETURNS as of 12/31/97*

<TABLE>
<CAPTION>
1 Year 5 Years 10 Years
<S> <C> <C> <C>
- -------------------------------------------------------------------
PARTNERS TRUST 29.10 20.32 17.17
S&P 500 Index 33.32 20.22 18.00
</TABLE>

The S&P 500 is an unmanaged index of U.S. stocks.

* The fund began operating in August 1993. Performance results from 1988 to
August 1993 are actually those of another fund that Neuberger Berman
Management has advised since 1975, and that invests in the same portfolio of
securities. Because the older fund had moderately lower expenses, its
performance was slightly better than Partners Trust would have had. That older
fund is not offered in this prospectus.

Partners Trust 39
<PAGE>
INVESTOR EXPENSES
- ------------------------------------------------------------

MANAGEMENT
MICHAEL M. KASSEN, ROBERT I. GENDELMAN AND S. BASU MULLICK are Vice Presidents
of Neuberger Berman Management.
Kassen and Gendelman are principals of Neuberger Berman, LLC. Kassen has been
manager of the fund since 1990, and was joined by Gendelman in 1994 and Mullick
in 1998. Gendelman was a portfolio manager at another firm from 1992 to 1993, as
was Mullick from 1993 to 1998.

[ICON] The fund does not charge you any fees for
buying, selling, or exchanging shares, or for maintaining your
account. Your only fund cost is your share of annual operating
expenses. The expense example can help you compare costs among funds.

FEE TABLE

SHAREHOLDER FEES None

- -------------------------------------------------------

ANNUAL OPERATING EXPENSES (% of average net assets)*

These are deducted from fund assets, so you pay them indirectly.

<TABLE>
<S> <C> <C>
Management fees 0.85
PLUS: Distribution (12b-1) fees None
Other expenses 0.06
....
EQUALS: Total annual operating expenses 0.91
</TABLE>

* NEUBERGER BERMAN MANAGEMENT REIMBURSES CERTAIN EXPENSES OF THE FUND SO THAT
ITS TOTAL ANNUAL OPERATING EXPENSES ARE NOT MORE THAN 0.10% ABOVE THOSE OF
ANOTHER NEUBERGER BERMAN FUND THAT INVESTS IN THE SAME PORTFOLIO OF
SECURITIES. THIS ARRANGEMENT DOES NOT COVER INTEREST, TAXES, BROKERAGE
COMMISSIONS, AND EXTRAORDINARY EXPENSES. UNDER THIS ARRANGEMENT, WHICH
NEUBERGER BERMAN MANAGEMENT CAN TERMINATE UPON SIXTY DAYS' NOTICE TO THE FUND,
TOTAL ANNUAL OPERATING EXPENSES OF THE FUND LAST YEAR WERE LIMITED TO 0.90% OF
THE FUND'S AVERAGE NET ASSETS. ACTUAL EXPENSES THIS YEAR MAY BE HIGHER OR
LOWER. THE TABLE INCLUDES COSTS PAID BY THE FUND AND ITS SHARE OF MASTER
PORTFOLIO COSTS. FOR MORE INFORMATION ON MASTER/FEEDER FUNDS, SEE "FUND
STRUCTURE" ON PAGE 53.

EXPENSE EXAMPLE

<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
- -----------------------------------------------------------
Expenses** $93 $290 $504 $1120
</TABLE>

** UNDER THE FUND'S EXPENSE REIMBURSEMENT ARRANGEMENT DESCRIBED IN THE FOOTNOTE
ABOVE, YOUR COSTS FOR THE ONE-, THREE-, FIVE- AND TEN-YEAR PERIODS WOULD BE
$92, $287, $498 AND $1108, RESPECTIVELY.

40 Neuberger Berman
<PAGE>
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Year Ended August 31, 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------
PER-SHARE DATA ($)
Data apply to a single share throughout each year indicated. You can see what the fund earned (or lost), what
it distributed to investors, and how its share price changed.
Share price (NAV) at beginning of year 10.01 10.54 12.68 13.39 18.80
PLUS: Income from investment operations
Net investment income 0.03 0.05 0.08 0.07 0.11
Net gains/losses -- realized and unrealized 0.53 2.19 1.59 6.06 (1.82)
Subtotal: income from investment operations 0.56 2.24 1.67 6.13 (1.71)
MINUS: Distributions to shareholders
Income dividends 0.01 0.02 0.07 0.08 0.08
Capital gain distributions 0.02 0.08 0.89 0.64 1.77
Subtotal: distributions to shareholders 0.03 0.10 0.96 0.72 1.85
...........................................
EQUALS: Share price (NAV) at end of year 10.54 12.68 13.39 18.80 15.24
- --------------------------------------------------------------------------------------------------------------
RATIOS (% of average net assets)
The ratios show the fund's expenses and net investment income -- as they actually are as well as how they
would have been if certain expense reimbursement and offset arrangements had not been in effect.
Net expenses -- actual 0.81 0.92 0.94 0.91 0.90
Gross expenses(1) 2.50 1.24 1.06 0.94 0.91
Expenses(2) -- -- 0.94 0.91 0.90
Net investment income -- actual 0.47 0.81 0.84 0.64 0.70
- --------------------------------------------------------------------------------------------------------------
OTHER DATA
Total return shows how an investment in the fund would have performed over each year, assuming all
distributions were reinvested. The turnover rate reflects how actively the fund bought and sold securities.
Total return(3) (%) 5.61 21.52 13.76 47.11 (10.15)
Net assets at end of year (in millions of dollars) 4.7 61.3 128.5 470.6 729.7
Portfolio turnover rate (%) 75 98 96 77 109
</TABLE>

(1) SHOWS WHAT THIS RATIO WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE
REIMBURSEMENT.

(2) SHOWS WHAT EXPENSES WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE OFFSET
ARRANGEMENTS. THIS CALCULATION IS REQUIRED FOR ALL PERIODS ENDING AFTER
9/1/95.

(3) WOULD HAVE BEEN LOWER IF NEUBERGER BERMAN MANAGEMENT HAD NOT REIMBURSED
CERTAIN EXPENSES.

Partners Trust 41
<PAGE>
[]

NEUBERGER BERMAN
SOCIALLY RESPONSIVE TRUST
- --------------------------------------------------------------------------------

ABOVE: PORTFOLIO MANAGER JANET PRINDLE

"WE BELIEVE THAT SOUND PRACTICES IN AREAS LIKE EMPLOYMENT AND THE ENVIRONMENT
CAN HAVE A POSITIVE IMPACT ON A COMPANY'S BOTTOM LINE. WE LOOK FOR COMPANIES
THAT MEET VALUE INVESTING CRITERIA AND ALSO SHOW A COMMITMENT TO UPHOLD OR
IMPROVE THEIR STANDARDS OF CORPORATE CITIZENSHIP."

42
<PAGE>
GOAL & STRATEGY
- ------------------------------------------------------------

SOCIAL INVESTING
Funds that follow social policies seek something in addition to economic
success. They are designed to allow investors to put their money to work and
also support companies that follow principles of good corporate citizenship.

[ICON]
THE FUND SEEKS LONG-TERM GROWTH OF CAPITAL BY INVESTING PRIMARILY IN
SECURITIES OF COMPANIES THAT MEET THE FUND'S FINANCIAL CRITERIA AND
SOCIAL POLICY.

To pursue this goal, the fund invests mainly in common stocks of mid- to
large-capitalization companies. The fund seeks to reduce risk by investing in a
large number of companies across many different industries.

The managers initially screen companies using value investing criteria. They
look for undervalued companies with solid balance sheets, strong management,
consistent cash flows, and other value-related factors. Among companies that
meet these criteria, the managers look for those that show leadership in three
areas:

- - environmental concerns

- - diversity in the work force

- - progressive employment and workplace practices

The managers typically also look at a company's record in public health and the
nature of its products. The managers judge firms on their corporate citizenship
overall, considering their accomplishments as well as their goals. While these
judgments are inevitably subjective, the fund has a strict policy of avoiding
companies that receive more than 5% of their earnings from alcohol, tobacco,
gambling, or weapons, as well as companies that sell non-consumer products to
the military or are involved in nuclear power.

The fund has the ability to change its goal without shareholder approval,
although it does not currently intend to do so.

Socially Responsive Trust 43
<PAGE>
MAIN RISKS
- ------------------------------------------------------------

OTHER RISKS
The fund may use certain practices and securities involving additional risks.

Borrowing, securities lending, and derivatives could create leverage, meaning
that certain gains or losses could be amplified, increasing share price
movements. These investments are not subject to the fund's social policy.

Although they may add diversification, foreign securities can be riskier,
because foreign markets tend to be more volatile and currency exchange rates
fluctuate.

[ICON]
Most of the fund's performance depends on what happens in the stock
market. The market's behavior is unpredictable, particularly in the
short term. Because of this, the value of your investment will rise and fall,
and you could lose money.

The fund's social policy could cause it to underperform similar funds that do
not have a social policy. Among the reasons for this are:

- - undervalued stocks that don't meet the social criteria could outperform those
that do

- - economic or political changes could make certain companies less attractive for
investment

- - the social policy could cause the fund to sell or avoid stocks that
subsequently perform well

44 Neuberger Berman
<PAGE>
PERFORMANCE
- ------------------------------------------------------------

As a frame of reference,
the table includes a broad-based market index. The fund's performance figures
include all of its expenses; the index does not include costs of investment.

[ICON] The bar chart below shows how
performance has varied from year to year. The table below the chart shows what
the returns would equal if you averaged out actual performance over
various lengths of time. This information is based on past performance; it's not
a prediction of future results.

YEAR-BY-YEAR % RETURNS as of 12/31 each year*

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<S> <C>
1988
89
90
91
92
93
94
95 38.94%
96 18.50%
97 24.32%
BEST QUARTER: Q2 '97, up 15.63%
WORST QUARTER: Q1 '97, down 1.90%
Year-to-date performance as of 9/30/98: down
4.97%
</TABLE>

AVERAGE ANNUAL TOTAL % RETURNS as of 12/31/97*

<TABLE>
<CAPTION>
Since
Inception
1 Year 3/16/94
<S> <C> <C>
- --------------------------------------------------------------

SOCIALLY RESPONSIVE TRUST 24.32 19.63
S&P 500 Index 33.32 24.09
</TABLE>

The S&P 500 is an unmanaged index of U.S. stocks.

* The fund began operating in March 1997. Performance results from March 1994 to
March 1997 are actually those of another Neuberger Berman fund that began
operations in 1994, and invests in the same portfolio of securities. Because
the older fund had moderately lower expenses, its performance was slightly
better than Socially Responsive Trust would have had. That older fund is not
offered in this prospectus.

Socially Responsive Trust 45
<PAGE>
INVESTOR EXPENSES
- ------------------------------------------------------------

MANAGEMENT
JANET PRINDLE, a Vice President of Neuberger Berman Management and a principal
of Neuberger Berman, LLC, joined the latter firm in 1977. She has been managing
assets using social criteria since 1990 and has been manager of the fund since
1994.

ROBERT LADD and INGRID SAUKAITIS are Assistant Vice Presidents of Neuberger
Berman Management and have been Associate Managers of the fund since 1997. Ladd
has been a portfolio manager at the firm since 1992; Saukaitis was project
director for a social research group from 1995 to 1997.

NEUBERGER BERMAN MANAGEMENT is the fund's investment adviser, and in turn
engages Neuberger Berman, LLC to provide management and related services. For
the 12 months ended 8/31/98, the management/administration fees paid to
Neuberger Berman Management were 0.95% of average net assets.

FEE TABLE

SHAREHOLDER FEES None

- -------------------------------------------------------

ANNUAL OPERATING EXPENSES (% of average net assets)*

These are deducted from fund assets, so you pay them indirectly.

<TABLE>
<S> <C> <C>
Management fees 0.95
PLUS: Distribution (12b-1) fees None
Other expenses 1.10
....
EQUALS: Total annual operating expenses 2.05
</TABLE>

* NEUBERGER BERMAN MANAGEMENT REIMBURSES CERTAIN EXPENSES OF THE FUND SO THAT
ITS TOTAL ANNUAL OPERATING EXPENSES ARE NOT MORE THAN 0.10% ABOVE THOSE OF
ANOTHER NEUBERGER BERMAN FUND THAT INVESTS IN THE SAME PORTFOLIO OF
SECURITIES. THIS ARRANGEMENT DOES NOT COVER INTEREST, TAXES, BROKERAGE
COMMISSIONS, AND EXTRAORDINARY EXPENSES. UNDER THIS ARRANGEMENT, WHICH
NEUBERGER BERMAN MANAGEMENT CAN TERMINATE UPON SIXTY DAYS' NOTICE TO THE FUND,
TOTAL ANNUAL OPERATING EXPENSES OF THE FUND LAST YEAR WERE LIMITED TO 1.20% OF
THE FUND'S AVERAGE NET ASSETS. ACTUAL EXPENSES THIS YEAR MAY BE HIGHER OR
LOWER. THE TABLE INCLUDES COSTS PAID BY THE FUND AND ITS SHARE OF MASTER
PORTFOLIO COSTS. FOR MORE INFORMATION ON MASTER/FEEDER FUNDS, SEE "FUND
STRUCTURE" ON PAGE 53.

EXPENSE EXAMPLE

<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
- -----------------------------------------------------------
Expenses** $208 $643 $1103 $2379
</TABLE>

** UNDER THE FUND'S EXPENSE REIMBURSEMENT ARRANGEMENT DESCRIBED IN THE FOOTNOTE
ABOVE, YOUR COSTS FOR THE ONE-, THREE-, FIVE- AND TEN-YEAR PERIODS WOULD BE
$122, $381, $660, AND $1455, RESPECTIVELY.

46 Neuberger Berman
<PAGE>
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Year Ended August 31, 1997(1) 1998
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------
PER-SHARE DATA ($)
Data apply to a single share throughout each year indicated. You can see what the
fund earned (or lost), what it distributed to investors, and how its share price
changed.
Share price (NAV) at beginning of year 10.00 11.43
PLUS: Income from investment operations
Net investment income -- 0.03
Net gains/losses -- realized and unrealized 1.43 (0.71)
Subtotal: income from investment operations 1.43 (0.68)
MINUS: Distributions to shareholders
Income dividends -- 0.01
Capital gain distributions -- 0.10
Subtotal: distributions to shareholders -- 0.11
....................
EQUALS: Share price (NAV) at end of year 11.43 10.64
- -----------------------------------------------------------------------------------
RATIOS (% of average net assets)
The ratios show the fund's expenses and net investment income -- as they actually
are as well as how they would have been if certain expense reimbursement and offset
arrangements had not been in effect.
Net expenses -- actual 1.58(2) 1.20
Gross expenses(3) 3.33(2) 2.05
Expenses(4) 1.58(2) 1.20
Net investment income -- actual 0.06(2) 0.33
- -----------------------------------------------------------------------------------
OTHER DATA
Total return shows how an investment in the fund would have performed over each
year, assuming all distributions were reinvested. The turnover rate reflects how
actively the fund bought and sold securities.
Total return(6) (%) 14.30(5) (6.05)
Net assets at end of year (in millions of dollars) 7.7 13.4
Portfolio turnover rate (%) 51 47
</TABLE>

(1) PERIOD FROM 3/3/97 (BEGINNING OF OPERATIONS) TO 8/31/97.

(2) ANNUALIZED.

(3) SHOWS WHAT THIS RATIO WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE
REIMBURSEMENT.

(4) SHOWS WHAT EXPENSES WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE OFFSET
ARRANGEMENTS. THIS CALCULATION IS REQUIRED FOR ALL PERIODS ENDING AFTER
9/1/95.

(5) NOT ANNUALIZED.

(6) WOULD HAVE BEEN LOWER IF NEUBERGER BERMAN MANAGEMENT HAD NOT REIMBURSED
CERTAIN EXPENSES.

Socially Responsive Trust 47
<PAGE>
YOUR INVESTMENT

MAINTAINING YOUR
ACCOUNT
- ------------------------------------------------------------

YOUR INVESTMENT PROVIDER
The fund shares described in this prospectus are available through investment
providers such as banks, brokerage firms, workplace retirement programs, and
financial advisers.

The fees and policies outlined in this prospectus are set by the funds and by
Neuberger Berman Management. However, most of the information you'll need for
managing your investment will come from your investment provider. This includes
information on how to buy and sell shares, investor services, and additional
policies.

In exchange for the services it offers, your investment provider may charge
fees, which are generally in addition to those described in this prospectus.

To buy or sell shares of any of the funds described in this prospectus, contact
your investment provider. All investments must be made in U.S. dollars, and
investment checks must be drawn on a U.S. bank. The funds do not issue
certificates for shares.

Most investment providers allow you to take advantage of the Neuberger Berman
fund exchange program, which is designed for moving money from one Neuberger
Berman fund to another through an exchange of shares. However, this privilege
can be withdrawn from any investor that we believe is trying to "time the
market" or is otherwise making exchanges that we judge to be excessive. Frequent
exchanges can interfere with fund management and affect costs and performance
for other shareholders.

48 Neuberger Berman
<PAGE>
- ------------------------------------------------------------

BUYING SHARES BEFORE
A DISTRIBUTION
The money a fund earns, either as income or as capital gains, is reflected in
its share price until the fund makes a distribution. At that time, the amount of
the distribution is deducted from the share price. The amount of the
distribution is either reinvested in additional fund shares or paid to
shareholders in cash.

Because of this, if you buy shares just before a fund makes a distribution,
you'll end up getting some of your investment back as a taxable distribution.
You can avoid this situation by waiting to invest until after the distribution
has been made.

If you're investing in a tax-advantaged account, you don't need to worry;
generally, there are no tax consequences to you in this case.

Under certain circumstances, the funds reserve the right to:

- - suspend the offering of shares

- - reject any exchange or investment order

- - change, suspend, or revoke the exchange privilege

- - satisfy an order to sell fund shares with securities rather than cash, for
certain very large orders

- - suspend or postpone the redemption of shares on days when trading on the New
York Stock Exchange is restricted, or as otherwise permitted by the SEC

The proceeds from the shares you sold are generally sent out the next business
day after your order is executed, and nearly always within three business days.
There are two cases in which proceeds may be delayed beyond this time:

- - in unusual circumstances where the law allows additional time if needed

- - if a check you wrote to buy shares hasn't cleared by the time you sell those
shares

If you think you may need to sell shares soon after buying them, you can avoid
the check clearing time (which may be up to 15 days) by investing by wire or
certified check.

Your Investment 49
<PAGE>
SHARE PRICES
- ------------------------------------------------------------

SHARE PRICE CALCULATIONS
A fund's share price is the total value of its assets minus its liabilities,
divided by the total number of shares. Because the value of a fund's securities
changes every business day, the share price usually changes as well.

When valuing portfolio securities, the funds use market prices. However, in rare
cases, events that occur after certain markets have closed may render these
prices unreliable.

When the fund believes a market price does not reflect a security's true value,
the fund may substitute for the market price a fair-value estimate derived
through methods approved by its trustees. A fund may also use these methods to
value certain types of illiquid securities.

Because these funds do not have sales charges, the price you pay for each share
of a fund is the fund's net asset value per share. Similarly, because these
funds charge no fees for selling shares, they pay you the full share price when
you sell shares. Remember that your investment provider may charge fees for its
services.

The funds are open for business every day the New York Stock Exchange is open.
In general, every buy or sell order you place will go through at the next share
price to be calculated after your order has been accepted; check with your
investment provider to find out by what time your order must be received in
order to be processed the same day. Each fund calculates its share price as of
the end of regular trading on the Exchange on business days, usually 4:00 p.m.
eastern time. Depending on when your investment provider accepts orders, it's
possible that the fund's share price could change on days when you are unable to
buy or sell shares.

Also, because foreign markets may be open on days when U.S. markets are closed,
the value of foreign securities owned by a fund could change on days when you
can't buy or sell fund shares. The fund's share price, however, will not change
until the next time it is calculated.

50 Neuberger Berman
<PAGE>
DISTRIBUTIONS
AND TAXES
- ------------------------------------------------------------

TAXES AND YOU
The taxes you actually owe on distributions and transactions can vary with many
factors, such as your tax bracket, how long you held your shares, and whether
you owe alternative minimum tax.

How can you figure out your tax liability on fund distributions and
transactions? One helpful tool is the tax statement that your investment
provider sends you every January. It details the distributions you received
during the past year and shows their tax status. A separate statement covers
your transactions.

Most importantly, consult your tax professional. Everyone's tax situation is
different, and your professional should be able to help you answer any questions
you may have.

DISTRIBUTIONS -- Each fund pays out to shareholders any net income and net
capital gains. Ordinarily, the funds make any distributions once a year (in
December), except for Guardian Trust, which typically distributes income every
quarter.

Consult your investment provider about whether your income and capital gains
distributions from a fund will be reinvested in that fund or paid to you in
cash.

HOW DISTRIBUTIONS ARE TAXED -- Except for tax-advantaged retirement accounts,
all fund distributions you receive are generally taxable to you, regardless of
whether you take them in cash or reinvest them. Fund distributions to Roth IRAs,
other individual retirement accounts and qualified retirement plans generally
are tax-free. Eventual withdrawals from a Roth IRA of those amounts also may be
tax-free, while withdrawals from other retirement accounts and plans generally
are subject to tax.

Distributions are taxable in the year you receive them. In some cases,
distributions you receive in January are taxable as if they had been paid the
previous year. Your tax statement (see sidebar) will help clarify this for you.

Income distributions and short-term capital gain distributions are generally
taxed as regular income. Distributions of other capital gains are generally
taxed as long-term capital gains. The tax treatment of capital gain
distributions depends on how long the fund held the securities it sold, not when
you bought your shares of the fund or whether you reinvested your distributions.

Your Investment 51
<PAGE>
DISTRIBUTIONS
AND TAXES CONTINUED
- -------------------------------------------------------------------

EURO AND YEAR 2000
ISSUES
Like other mutual funds, the funds could be affected by problems relating to the
conversion of European currencies into the Euro beginning 1/1/99, and the
ability of computer systems to recognize the year 2000.

At Neuberger Berman, we are taking steps to ensure that our own computer systems
are compliant with Euro and Year 2000 issues and to determine that the systems
used by our major service providers are also compliant. We are also making
efforts to determine whether companies in the funds' portfolios will be affected
by either issue.

At the same time, it is impossible to know whether these problems, which could
disrupt fund operations and investments if uncorrected, have been adequately
addressed until the dates in question arrive.

HOW TRANSACTIONS ARE TAXED -- When you sell fund shares, you generally realize a
gain or loss. These transactions, which include exchanges between funds, usually
have tax implications. The exception, once again, is tax-advantaged retirement
accounts.

UNCASHED CHECKS -- When you receive a check, you may want to deposit or cash it
right away, as you will not receive interest on uncashed checks.

52 Neuberger Berman
<PAGE>
FUND STRUCTURE
- ------------------------------------------------------------

Each of the funds in this prospectus uses a "master/feeder" structure.

Rather than investing directly in securities, each fund is a "feeder fund,"
meaning that it invests in a corresponding "master portfolio." The master
portfolio in turn invests in securities, using the strategies described in this
prospectus. One potential benefit of this structure is lower costs, since the
expenses of the master portfolio can be shared with any other feeder funds. In
this prospectus we have used the word "fund" to mean a feeder fund and its
master portfolio.

For reasons relating to costs or a change in investment goal, among others, a
feeder fund could switch to another master portfolio or decide to manage its
assets itself. No fund in this prospectus is currently contemplating such a
move.

Your Investment 53
<PAGE>
[SOLID BAR]

OBTAINING INFORMATION
You can obtain a shareholder report, SAI, and other information from your
investment provider, or from:

NEUBERGER BERMAN
MANAGEMENT INC.
605 Third Avenue 2nd floor
New York, NY 10158-0180
800-877-9700
212-476-8800

Broker/Dealer and
Institutional Services:
800-366-6264

Web site:
www.nbfunds.com
Email:
[email protected]

SECURITIES AND EXCHANGE COMMISSION
Washington, DC
20549-6009
800-SEC-0330 (Public
Reference Section)

Web site:
www.sec.gov

You can request copies of documents from the SEC for the cost of a duplicating
fee, or view documents at the SEC's Public Reference Room in Washington.

NEUBERGER BERMAN EQUITY TRUSTS

- - No load

- - No sales charges

- - No 12b-1 fees

If you'd like further details on any of these funds, you can request a free copy
of the following documents:

SHAREHOLDER REPORTS -- Published twice a year, the shareholder reports offer
information about the fund's recent performance, including:

- - a discussion by the portfolio manager(s) about strategies and market
conditions

- - fund performance data and financial statements

- - complete portfolio holdings

STATEMENT OF ADDITIONAL INFORMATION -- The SAI contains more comprehensive
information on these funds, including:

- - various types of securities and practices, and their risks

- - investment limitations and additional policies

- - information about each fund's management and business structure

The SAI is incorporated by reference into this prospectus, making it legally
part of the prospectus.

Investment manager:
NEUBERGER BERMAN MANAGEMENT INC.
Sub-adviser:
NEUBERGER BERMAN, LLC

[LOGO]

NEUBERGER BERMAN MANAGEMENT INC.
605 Third Avenue 2nd Floor
New York, NY 10158-0180

[RECYCLE LOGO] NMLRR1281298 SEC file number: 811-7784

<PAGE>

<PAGE>
[COVER PHOTO] NEUBERGER BERMAN

NEUBERGER BERMAN
GENESIS TRUST-REGISTERED TRADEMARK-
- --------------------------------------------------------------------------------
PROSPECTUS DECEMBER 30, 1998

<TABLE>
<C> <S>
NEUBERGER BERMAN EQUITY TRUST

PAGE 2 ...... Genesis Trust

YOUR INVESTMENT

8 ...... Maintaining Your Account

10 ...... Share Prices

11 ...... Distributions and Taxes

13 ...... Fund Structure
</TABLE>

The "Neuberger Berman" name and logo are service
marks of Neuberger Berman, LLC. "Neuberger Berman
Management Inc." and the fund name in this
prospectus are either service marks or registered
trademarks of Neuberger Berman Management Inc.
-C-1998 Neuberger Berman Management Inc.
<PAGE>
- ------------------------------------------------------------

FUND MANAGEMENT
The fund is managed by Neuberger Berman Management Inc., in conjunction
with Neuberger Berman, LLC, as sub-adviser. Together, the firms manage more than
$49 billion in total assets (as of September 30, 1998) and continue an asset
management history that began in 1939.

RISK INFORMATION
This prospectus discusses principal risks of investment in fund shares. These
and other risks are discussed in detail in the Statement of Additional
Information (see back cover).

THIS FUND:

- - IS DESIGNED FOR INVESTORS WITH LONG-TERM GOALS IN MIND

- - OFFERS YOU THE OPPORTUNITY TO PARTICIPATE IN FINANCIAL MARKETS THROUGH A
PROFESSIONALLY MANAGED STOCK PORTFOLIO

- - ALSO OFFERS THE OPPORTUNITY TO DIVERSIFY YOUR PORTFOLIO WITH A FUND THAT
INVESTS USING A VALUE APPROACH

- - USES A MASTER/FEEDER STRUCTURE IN ITS PORTFOLIO; SEE PAGE 13 FOR INFORMATION
ON HOW IT WORKS

- - CARRIES CERTAIN RISKS, INCLUDING THE RISK THAT YOU COULD LOSE MONEY IF FUND
SHARES ARE WORTH LESS THAN WHAT YOU PAID

- - IS A MUTUAL FUND, NOT A BANK DEPOSIT, AND IS NOT GUARANTEED OR INSURED

1
<PAGE>
[]

NEUBERGER BERMAN
GENESIS TRUST
- --------------------------------------------------------------------------------

Ticker Symbol: NBGEX ABOVE: PORTFOLIO MANAGERS ROBERT W. D'ALELIO
AND JUDITH M. VALE

THE FUND IS CLOSED TO NEW INVESTORS, EXCEPT FOR INVESTORS THROUGH 401(K), 403(B)
AND 457 PLANS. CURRENT SHAREHOLDERS MAY MAKE ADDITIONAL INVESTMENTS IN THE FUND.

2
<PAGE>
GOAL & STRATEGY
- ------------------------------------------------------------

[ICON]
THE FUND SEEKS GROWTH OF CAPITAL.

The managers look for undervalued companies whose current product lines and
balance sheets are strong. Factors in identifying these firms may include:

- - above-average returns

- - an established market niche

- - circumstances that would make it difficult for new competitors to enter the
market

- - the ability to finance their own growth

- - sound future business prospects

This approach is designed to let the fund benefit from potential increases in
stock prices while limiting the risks typically associated with small-cap
stocks.

At times, the managers may emphasize certain industries that they believe will
benefit from market or economic trends.

The fund has the ability to change its goal without shareholder approval,
although it does not currently intend to do so.

Genesis Trust 3
<PAGE>
MAIN RISKS
- ------------------------------------------------------------

OTHER RISKS
The fund may use certain practices and securities involving additional risks.

Borrowing, securities lending, and derivatives could create leverage, meaning
that certain gains or losses could be amplified, increasing share price
movements.

Although they may add diversification, foreign securities can be riskier,
because foreign markets tend to be more volatile and currency exchange rates
fluctuate.

[ICON]
Most of the fund's performance depends on what happens in the stock market. The
market's behavior is unpredictable, particularly in the short term. Because of
this, the value of your investment will rise and fall, and you could lose money.

- - fluctuate more widely in price than the market as a whole

- - underperform other types of stocks when the market or the economy is not
robust

- - fall in price or be difficult to sell during market downturns

- - be noticeably affected by the fortunes of a given sector that the managers
decided to focus on

With a value approach, there is also the risk that stocks may remain
undervalued during a given period. This may happen because value stocks as a
category lose favor with investors compared to growth stocks or because the
managers failed to anticipate which stocks or industries would benefit from
changing market or economic conditions.

4 Neuberger Berman
<PAGE>
PERFORMANCE
- ------------------------------------------------------------

As a frame of reference, the table includes a broad-based market index. The
fund's performance figures include all of its expenses; the index does not
include costs of investment.

[ICON]
The bar chart below shows how performance has varied from year to year. The
table below the chart shows what the returns would equal if you averaged out
actual performance over various lengths of time. This information is based on
past performance; it's not a prediction of future results.

YEAR-BY-YEAR % RETURNS as of 12/31 each year*

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<S> <C>
1988
'89 17.25%
'90 -16.24%
'91 41.55%
'92 15.62%
'93 14.37%
'94 -1.66%
'95 27.17%
'96 29.90%
'97 34.86%
BEST QUARTER: Q1 '91, up 25.05%
WORST QUARTER: Q3 '90, down 21.81%
Year-to-date performance as of 9/30/98: down
17.19%
</TABLE>

AVERAGE ANNUAL TOTAL % RETURNS as of 12/31/97*

The Russell 2000 is an unmanaged index of U.S. small-cap stocks.

Genesis Trust 5
<PAGE>
INVESTOR EXPENSES
- ------------------------------------------------------------

MANAGEMENT
JUDITH M. VALE and ROBERT W. D'ALELIO are Vice Presidents of Neuberger Berman
Management and principals of Neuberger Berman, LLC. Vale and D'Alelio have been
senior members of the Small Cap Group since 1992 and 1996, respectively. Vale
has co-managed the fund's assets since 1994. D'Alelio joined the firm in 1996
and has co-managed the fund's assets since 1997. From 1988 to 1996, he was a
senior portfolio manager at another firm.

[ICON]
The fund does not charge you any fees for buying, selling, or exchanging shares,
or for maintaining your account. Your only fund cost is your share of annual
operating expenses. The expense example can help you compare costs among funds.

FEE TABLE

SHAREHOLDER FEES None

- -------------------------------------------------------

ANNUAL OPERATING EXPENSES (% of average net assets)*

These are deducted from fund assets, so you pay them indirectly.

<TABLE>
<S> <C> <C>
Management fees 1.11
PLUS: Distribution (12b-1) fees None
Other expenses 0.08
....
EQUALS: Total annual operating expenses 1.19
</TABLE>

EXPENSE EXAMPLE

<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
- -----------------------------------------------------------
Expenses $121 $378 $654 $1443
</TABLE>

6 Neuberger Berman
<PAGE>
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Year Ended August 31, 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
PER-SHARE DATA ($)
Data apply to a single share throughout each year indicated. You can see what the fund earned (or lost), what it
distributed to investors, and how its share price changed.
Share price (NAV) at beginning of year 10.05 10.59 12.65 14.99 21.45
PLUS: Income from investment operations
Net investment income (loss) (0.01) (0.01) (0.02) (0.01) 0.12
Net gains/losses -- realized and unrealized 0.56 2.08 2.68 6.61 (4.14)
Subtotal: income from investment operations 0.55 2.07 2.66 6.60 (4.02)
MINUS: Distributions to shareholders
Capital gain distributions 0.01 0.01 0.32 0.14 0.15
Subtotal: distributions to shareholders 0.01 0.01 0.32 0.14 0.15
....................................................
EQUALS: Share price (NAV) at end of year 10.59 12.65 14.99 21.45 17.28
- -----------------------------------------------------------------------------------------------------------------------
RATIOS (% of average net assets)
The ratios show the fund's expenses and net investment income (loss) -- as they actually are as well as how they would
have been if certain expense reimbursement/waiver and offset arrangements had not been in effect.
Net expenses -- actual 1.36 1.42 1.38 1.25 1.17
Gross expenses(1) 2.50 1.78 1.65 1.35 1.19
Expenses(2) -- -- 1.38 1.26 1.17
Net investment income (loss) -- actual (0.21) (0.24) (0.27) (0.16) 0.68
- -----------------------------------------------------------------------------------------------------------------------
OTHER DATA
Total return shows how an investment in the fund would have performed over each year, assuming all distributions were
reinvested. The turnover rate reflects how actively the fund bought and sold securities.
Total return(3) (%) 5.47 19.51 21.44 44.31 (18.88)
Net assets at end of year (in millions of dollars) 3.1 30.6 65.2 382.7 704.5
Portfolio turnover rate (%) 63 37 21 18 18
</TABLE>

(1) SHOWS WHAT THIS RATIO WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE
REIMBURSEMENT/WAIVER.

(2) SHOWS WHAT EXPENSES WOULD HAVE BEEN IF THERE HAD BEEN NO EXPENSE OFFSET
ARRANGEMENTS; THE MANAGEMENT FEE WAIVER IS INCLUDED, HOWEVER. THIS
CALCULATION IS REQUIRED FOR ALL PERIODS ENDING AFTER 9/1/95.

(3) WOULD HAVE BEEN LOWER IF NEUBERGER BERMAN MANAGEMENT HAD NOT REIMBURSED
CERTAIN EXPENSES AND/OR WAIVED A PORTION OF THE MANAGEMENT FEE.

Genesis Trust 7
<PAGE>
YOUR INVESTMENT

MAINTAINING YOUR
ACCOUNT
- ------------------------------------------------------------

YOUR INVESTMENT PROVIDER
The fund shares described in this prospectus are
available through investment providers such as banks, brokerage firms, workplace
retirement programs, and financial advisers.

The fees and policies outlined in this prospectus are set by the fund and by
Neuberger Berman Management. However, most of the information you'll need for
managing your investment will come from your investment provider. This includes
information on how to buy and sell shares, investor services, and additional
policies.

In exchange for the services it offers, your investment provider may charge
fees, which are generally in addition to those described in this prospectus.

To buy or sell shares of the fund described in this prospectus, contact your
investment provider. All investments must be made in U.S. dollars, and
investment checks must be drawn on a U.S. bank. The fund does not issue
certificates for shares.

Most investment providers allow you to take advantage of the Neuberger Berman
fund exchange program, which is designed for moving money from one Neuberger
Berman fund to another through an exchange of shares. However, this privilege
can be withdrawn from any investor that we believe is trying to "time the
market" or is otherwise making exchanges that we judge to be excessive.
Frequent exchanges can interfere with fund management and affect costs and
performance for other shareholders.

8 Neuberger Berman
<PAGE>
- ------------------------------------------------------------

BUYING SHARES BEFORE
A DISTRIBUTION
The money the fund earns, either as income or as capital gains, is reflected
in its share price until the fund makes a distribution. At that time, the amount
of the distribution is deducted from the share price. The amount of the
distribution is either reinvested in additional fund shares or paid to
shareholders in cash.

Because of this, if you buy shares just before the fund makes a distribution,
you'll end up getting some of your investment back as a taxable distribution.
You can avoid this situation by waiting to invest until after the distribution
has been made.

If you're investing in a tax-advantaged account, you don't need to worry;
generally, there are no tax consequences to you in this case.

Under certain circumstances, the fund reserves the right to:

- - suspend the offering of shares

- - reject any exchange or investment order

- - change, suspend, or revoke the exchange privilege

- - satisfy an order to sell fund shares with securities rather than cash, for
certain very large orders

- - suspend or postpone the redemption of shares on days when trading on the New
York Stock Exchange is restricted, or as otherwise permitted by the SEC

- - in unusual circumstances where the law allows additional time if needed

- - if a check you wrote to buy shares hasn't cleared by the time you sell those
shares

If you think you may need to sell shares soon after buying them, you can avoid
the check clearing time (which may be up to 15 days) by investing by wire or
certified check.

Your Investment 9
<PAGE>
SHARE PRICES
- ------------------------------------------------------------

SHARE PRICE CALCULATIONS
The fund's share price is the total value of its assets minus its liabilities,
divided by the total number of shares. Because the value of the fund's
securities changes every business
day, the share price usually changes as well.

When valuing portfolio securities, the fund uses market prices. However, in rare
cases, events that occur after certain markets have closed may render these
prices unreliable.

When the fund believes a market price does not reflect a security's true value,
the fund may substitute for the market price a fair-value estimate derived
through methods approved by its trustees. The fund may also use these methods to
value certain types of illiquid securities.

Because the fund does not have a sales charge, the price you pay for each share
of the fund is the fund's net asset value per share. Similarly, because the fund
does not charge any fee for selling shares, the fund pays you the full share
price when you sell shares. Remember that your investment provider may charge
fees for its services.

The fund is open for business every day the New York Stock Exchange is open. In
general, every buy or sell order you place will go through at the next share
price to be calculated after your order has been accepted; check with your
investment provider to find out by what time your order must be received in
order to be processed the same day. The fund calculates its share price as of
the end of regular trading on the Exchange on business days, usually 4:00 p.m.
eastern time. Depending on when your investment provider accepts orders, it's
possible that the fund's share price could change on days when you are unable to
buy or sell shares.

Also, because foreign markets may be open on days when U.S. markets are closed,
the value of foreign securities owned by the fund could change on days when you
can't buy or sell fund shares. The fund's share price, however, will not change
until the next time it is calculated.

10 Neuberger Berman
<PAGE>
DISTRIBUTIONS
AND TAXES
- ------------------------------------------------------------

Most importantly, consult your tax professional. Everyone's tax situation is
different, and your professional should be able to help you answer any questions
you may have.

DISTRIBUTIONS -- The fund pays out to shareholders any net income and net
capital gains. Ordinarily, the fund makes any distributions once a year in
December.

Consult your investment provider about whether your income and capital gains
distributions from the fund will be reinvested in the fund or paid to you in
cash.

Your Investment 11
<PAGE>
DISTRIBUTIONS
AND TAXES CONTINUED
- -------------------------------------------------------------------

EURO AND YEAR 2000
ISSUES
Like other mutual funds, the fund could be affected by problems relating to the
conversion of European currencies into the Euro beginning 1/1/99, and the
ability of computer systems to recognize the year 2000.

HOW TRANSACTIONS ARE TAXED -- When you sell fund shares, you generally realize
a gain or loss. These transactions, which include exchanges between funds,
usually have tax implications. The exception, once again, is tax-advantaged
retirement accounts.

UNCASHED CHECKS -- When you receive a check, you may want to deposit or cash it
right away, as you will not receive interest on uncashed checks.

12 Neuberger Berman
<PAGE>
FUND STRUCTURE
- ------------------------------------------------------------

The fund uses a "master/feeder" structure.

Rather than investing directly in securities, the fund is a "feeder fund,"
meaning that it invests in a corresponding "master portfolio." The master
portfolio in turn invests in securities, using the strategies described in this
prospectus. One potential benefit of this structure is lower costs, since the
expenses of the master portfolio can be shared with any other feeder funds. In
this prospectus we have used the word "fund" to mean the feeder fund and its
master portfolio.

For reasons relating to costs or a change in investment goal, among others, the
feeder fund could switch to another master portfolio or decide to manage its
assets itself. The fund is not currently contemplating such a move.

Your Investment 13
<PAGE>
[SOLID BAR]

OBTAINING INFORMATION
You can obtain a shareholder report, SAI, and other information from your
investment provider, or from:

NEUBERGER BERMAN
MANAGEMENT INC.
605 Third Avenue 2nd Floor
New York, NY 10158-0180
800-877-9700
212-476-8800

Broker/Dealer and
Institutional Services:
800-366-6264

Web site:
www.nbfunds.com
Email:
[email protected]

SECURITIES AND EXCHANGE COMMISSION
Washington, DC
20549-6009
800-SEC-0330 (Public
Reference Section)

Web site:
www.sec.gov

You can request copies of documents from the SEC for the cost of a duplicating
fee, or view documents at the SEC's Public Reference Room in Washington.

NEUBERGER BERMAN GENESIS TRUST

- - No load

- - No sales charges

- - No 12b-1 fees

If you'd like further details about this fund, you can request a free copy of
the following documents:

SHAREHOLDER REPORTS -- Published twice a year, the shareholder reports offer
information about the fund's recent performance, including:

- - a discussion by the portfolio managers about strategies and market conditions

- - fund performance data and financial statements

- - complete portfolio holdings

STATEMENT OF ADDITIONAL INFORMATION -- The SAI contains more comprehensive
information about this fund, including:

- - various types of securities and practices, and their risks

- - investment limitations and additional policies

- - information about the fund's management and business structure

The SAI is incorporated by reference into this prospectus, making it legally
part of the prospectus.

Investment manager:
NEUBERGER BERMAN MANAGEMENT INC.
Sub-adviser:
NEUBERGER BERMAN, LLC

[LOGO]

NEUBERGER BERMAN MANAGEMENT INC.
605 Third Avenue 2nd Floor
New York, NY 10158-0180

SEC file number: 811-7784

<PAGE>

<PAGE>
[PHOTO] NEUBERGER BERMAN
[PHOTO]

NEUBERGER BERMAN
GUARDIAN TRUST-SM-
- --------------------------------------------------------------------------------
PROSPECTUS DECEMBER 30, 1998

<TABLE>
<C> <S>
NEUBERGER BERMAN EQUITY TRUST

PAGE 2 ...... Guardian Trust

YOUR INVESTMENT

8 ...... Maintaining Your Account

10 ...... Share Prices

11 ...... Distributions and Taxes

13 ...... Fund Structure
</TABLE>

FUND MANAGEMENT
The fund is managed by Neuberger Berman Management Inc., in conjunction with
Neuberger Berman, LLC, as sub-adviser. Together, the firms manage more than $49
billion in total assets (as of September 30, 1998) and continue an asset
management history that began in 1939.

RISK INFORMATION
This prospectus discusses principal risks of investment in fund shares. These
and other risks are discussed in detail in the Statement of Additional
Information (see back cover).

THIS FUND:

- - IS DESIGNED FOR INVESTORS WITH LONG-TERM GOALS IN MIND

- - OFFERS YOU THE OPPORTUNITY TO PARTICIPATE IN FINANCIAL MARKETS THROUGH A
PROFESSIONALLY MANAGED STOCK PORTFOLIO

- - ALSO OFFERS THE OPPORTUNITY TO DIVERSIFY YOUR PORTFOLIO WITH A FUND THAT
INVESTS USING A VALUE APPROACH

- - USES A MASTER/FEEDER STRUCTURE IN ITS PORTFOLIO; SEE PAGE 13 FOR INFORMATION
ON HOW IT WORKS

- - CARRIES CERTAIN RISKS, INCLUDING THE RISK THAT YOU COULD LOSE MONEY IF FUND
SHARES ARE WORTH LESS THAN WHAT YOU PAID

- - IS A MUTUAL FUND, NOT A BANK DEPOSIT, AND IS NOT GUARANTEED OR INSURED

1
<PAGE>
[]
[PHOTO]

NEUBERGER BERMAN
GUARDIAN TRUST
- --------------------------------------------------------------------------------

Ticker Symbol: NBGTX ABOVE: PORTFOLIO MANAGERS KEVIN L. RISEN AND
ALLAN "RICK" WHITE

2
<PAGE>
GOAL & STRATEGY
- ------------------------------------------------------------

LARGE-CAP STOCKS
Large companies are usually well-established. They may have a variety of
products and business lines and a sound financial base that can help them
weather bad times.

[ICON]
THE FUND SEEKS LONG-TERM GROWTH OF CAPITAL; CURRENT INCOME IS A
SECONDARY GOAL.

The managers look for well-managed companies whose stock prices are undervalued.
Factors in identifying these firms may include:

- - solid balance sheets

- - above-average returns

- - low price-to-earnings ratios

- - consistent earnings

The fund has the ability to change its goal without shareholder approval,
although it does not currently intend to do so.

Guardian Trust 3
<PAGE>
MAIN RISKS
- ------------------------------------------------------------

OTHER RISKS
The fund may use certain practices and securities involving additional risks.

Although they may add diversification, foreign securities can be riskier,
because foreign markets tend to be more volatile and currency exchange rates
fluctuate.

[ICON] Most of the fund's performance depends
on what happens in the stock market. The market's behavior is
unpredictable, particularly in the short term. Because of this, the
value of your investment will rise and fall, and you could lose money.

4 Neuberger Berman
<PAGE>
PERFORMANCE
- ------------------------------------------------------------

As a frame of reference, the table includes a broad-based market index. The
fund's performance figures include all of its expenses; the index does not
include costs of investment.

[ICON]
The bar chart below shows how performance has varied from year to
year. The table below the chart shows what the returns would equal if
you averaged out actual performance over various lengths of time. This
information is based on past performance; it's not a prediction of future
results.

YEAR-BY-YEAR % RETURNS as of 12/31 each year*

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<S> <C>
1988 28.05%
'89 21.50%
'90 -4.71%
'91 34.33%
'92 19.01%
'93 13.52%
'94 1.52%
'95 31.99%
'96 17.74%
'97 17.83%
BEST QUARTER: Q1 '91, up 17.42%
WORST QUARTER: Q3 '90, down 15.76%
Year-to-date performance as of 9/30/98: down
16.88%
</TABLE>

AVERAGE ANNUAL TOTAL % RETURNS as of 12/31/97*

The S&P 500 is an unmanaged index of U.S. stocks.
* The fund began operating in August 1993. Performance results from 1988 to
August 1993 are actually those of another Neuberger Berman fund that began
operations in 1950, and invests in the same portfolio of securities. Because
the older fund had moderately lower expenses, its performance was slightly
better than Guardian Trust would have had. That older fund is not offered in
this prospectus.

Guardian Trust 5
<PAGE>
INVESTOR EXPENSES
- ------------------------------------------------------------

[ICON] The fund does not charge you any fees for
buying, selling, or exchanging shares, or for maintaining your
account. Your only fund cost is your share of annual operating
expenses. The expense example can help you compare costs among funds.

FEE TABLE

SHAREHOLDER FEES None

- -------------------------------------------------------

ANNUAL OPERATING EXPENSES (% of average net assets)*

These are deducted from fund assets, so you pay them indirectly.

<TABLE>
<S> <C> <C>
Management fees 0.84
PLUS: Distribution (12b-1) fees None
Other expenses 0.03
....
EQUALS: Total annual operating expenses 0.87
</TABLE>

EXPENSE EXAMPLE

<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
- -----------------------------------------------------------
Expenses $89 $278 $482 $1073
</TABLE>

6 Neuberger Berman
<PAGE>
FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
Year Ended August 31, 1994 1995 1996 1997 1998
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
PER-SHARE DATA ($)
Data apply to a single share throughout each year indicated. You can see what the fund earned (or lost), what it
distributed to investors, and how its share price changed.
Share price (NAV) at beginning of year 10.27 11.27 13.83 14.24 19.47
PLUS: Income from investment operations
Net investment income 0.09 0.13 0.16 0.08 0.09
Net gains/losses -- realized and unrealized 0.99 2.55 0.55 5.48 (3.93)
Subtotal: income from investment operations 1.08 2.68 0.71 5.56 (3.84)
MINUS: Distributions to shareholders
Income dividends 0.07 0.12 0.14 0.10 0.10
Capital gain distributions 0.01 -- 0.16 0.23 1.29
Subtotal: distributions to shareholders 0.08 0.12 0.30 0.33 1.39
.......................................................
EQUALS: Share price (NAV) at end of year 11.27 13.83 14.24 19.47 14.24
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RATIOS (% of average net assets)
The ratios show the fund's expenses and net investment income -- as they actually are as well as how they would have been
if certain expense reimbursement and offset arrangements had not been in effect.
Net expenses -- actual 0.80 0.90 0.92 0.88 0.87
Gross expenses(1) 1.52 0.96 0.92 -- --
Expenses(2) -- -- 0.92 0.88 0.87
Net investment income -- actual 1.50 1.35 1.26 0.47 0.50
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OTHER DATA
Total return shows how an investment in the fund would have performed over each year, assuming all distributions were
reinvested. The turnover rate reflects how actively the fund bought and sold securities.
Total return (%) 10.57(3) 24.01(3) 5.19(3) 39.56 (20.88)
Net assets at end of year (in millions of dollars) 75.8 683.1 1,340.1 2,269.8 1,529.5
Portfolio turnover rate (%) 24 26 37 50 60
</TABLE>

(1) SHOWS WHAT THIS RATIO WOULD HAVE
BEEN IF THERE HAD BEEN NO EXPENSE
REIMBURSEMENT.
(2) SHOWS WHAT EXPENSES WOULD HAVE
BEEN IF THERE HAD BEEN NO EXPENSE
OFFSET ARRANGEMENTS. THIS
CALCULATION IS REQUIRED FOR ALL
PERIODS ENDING AFTER 9/1/95.
(3) WOULD HAVE BEEN LOWER IF NEUBERGER
BERMAN MANAGEMENT HAD NOT
REIMBURSED CERTAIN EXPENSES.

Guardian Trust 7
<PAGE>
YOUR INVESTMENT