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Supplement to the Prospectus dated February 13, 1996
The table on page 4 is amended to read as follows:
MANHATTAN ASSETS
INVESTMENT STYLE: Broadly diversified, small-, medium- and large-cap
growth fund.
The second and third paragraphs under the heading "Neuberger& Berman MANHATTAN
Portfolio" on pages 10-11 are amended to read as follows:
Neuberger&Berman MANHATTAN Portfolio generally invests in securities of
small-, medium-, and large-capitalization companies believed to have the
maximum potential for long-term capital appreciation. It does not seek to
invest in securities that pay dividends or interest, and any such income
is incidental.
The Portfolio uses a "growth at a reasonable price" investment approach.
When N&B Management believes that particular securities have greater
potential for long-term capital appreciation, the Portfolio may purchase
such securities at prices with relatively higher multiples to measures of
economic value (such as earnings or cash flow) than other Portfolios. The
Portfolio focuses on companies with strong balance sheets and reasonable
valuations relative to their growth rates. It also diversifies its
investments among many companies and industries.
The Portfolio's growth investment program involves greater risks and share
price volatility than programs that invest in more undervalued securities.
The Portfolio may invest in
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common stocks of companies with small market capitalizations ("small-cap
companies"). Small-cap company stocks have higher risk and volatility than
securities of companies with larger market capitalizations because most
small-cap company stocks are not as broadly traded and their prices thus
may fluctuate more widely and abruptly. Small-cap company securities are
also less researched and often overlooked and undervalued in the market.
Moreover, the Portfolio does not follow a policy of active trading for
short-term profits. Accordingly, the Portfolio may be more appropriate for
investors with a longer-range perspective.
MANAGEMENT AND ADMINISTRATION--Investment Manager, Administrator, Distributor,
and Sub-Adviser
Neuberger&Berman FOCUS Portfolio and Neuberger&Berman GUARDIAN
Portfolio--Effective December 31, 1996, Lawrence Marx III will no longer have
responsibility for management of these Portfolios. Kent C. Simons and Kevin
Risen will continue to be responsible for day-to-day management.
The date of this Supplement is December 17, 1996.
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