NEUBERGER & BERMAN EQUITY ASSETS
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 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.
The date of this supplement is December 13, 1996.
