NEUBERGER&BERMAN
EQUITY ASSETS
SUPPLEMENT TO THE PROSPECTUS DATED DECEMBER 15, 1997
I. The following disclosure regarding Neuberger&Berman GENESIS Assets is
added to the Prospectus:
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NEUBERGER&BERMAN GENESIS ASSETS IS CLOSED TO PURCHASES BY NEW INVESTORS EXCEPT
FOR PURCHASES BY ELIGIBLE INVESTORS AS DESCRIBED BELOW.
If you are already a shareholder of Neuberger&Berman GENESIS Assets, you may
continue to add to your Fund account. If you own shares of the Fund through a
401(k) plan, you may continue to add to your investment.
In addition, you may purchase shares of Neuberger&Berman GENESIS Assets:
. until April 15, 1998, if you are opening a new Individual Retirement
Account ("IRA");
. if you are a participant in a 401(k) plan that has the Fund as an
investment option; or
. if you purchase shares under an asset allocation program sponsored by a
financial adviser who has one or more clients who are Fund shareholders.
II. The section which provides a summary of the features of
Neuberger&Berman MANHATTAN Assets (Page 4) is revised to read as
follows:
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MANHATTAN ASSETS Broadly diversified, Invests in securities believed to
medium-cap growth have the maximum potential for
fund. long-term capital appreciation.
Portfolio managers seek stocks of
companies that are projected to grow
at above-average rates and that may
appear poised for a period of
accelerated earnings.
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<PAGE>
III. The first two paragraphs of the section regarding the investment program
of Neuberger&Berman MANHATTAN Portfolio (page 19) are revised to read as
follows:
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INVESTMENT PROGRAMS
Neuberger&Berman MANHATTAN Portfolio
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The investment objective of Neuberger&Berman MANHATTAN Portfolio and
Neuberger&Berman MANHATTAN Assets is to seek capital appreciation without regard
to income.
Neuberger & Berman MANHATTAN Portfolio currently intends to focus
primarily on the securities of medium-capitalization companies ("mid-cap
companies") believed by N&B Management to have the maximum potential for
long-term capital appreciation. However, the Portfolio can invest in the
securities of companies from any capitalization level. The Portfolio regards
mid-cap companies to be those companies with market capitalizations that, at the
time of investment, fall within the capitalization range of the Russell
Midcap(TM) Index as last announced by the Frank Russell Company before the date
of this Prospectus. For purposes of this Prospectus, that range was
approximately $1.1 billion to $8 billion. Companies whose market capitalizations
move out of the mid-cap range after purchase continue to be considered mid-cap
companies for purposes of the Portfolio's investment program.
IV. The following paragraph is added to the section regarding management and
administration (page 32):
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MANAGEMENT AND ADMINISTRATION
Investment Manager, Administrator, Distributor, and Sub-Adviser
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YEAR 2000. Like other financial and business organizations, the Funds and
Portfolios could be adversely affected if computer systems they rely on do not
properly process date-related information and data involving the years 2000 and
after. N&B Management and Neuberger&Berman are taking steps that they believe
are reasonable to address this problem in their own computer systems and to
obtain assurances that comparable steps are being taken by the Funds' and
Portfolios' other major service providers. N&B Management also attempts to
evaluate the potential impact of this problem on the issuers of investment
securities that the Portfolios purchase. At this time, however, there can be no
assurance that these steps will be sufficient to avoid any adverse impact on the
Funds and Portfolios.
<PAGE>
V. The following sentence is added to the end of the second paragraph of the
section relating to administration fees (page 32):
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MANAGEMENT AND ADMINISTRATION
Expenses
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(Under some arrangements, N&B Management may compensate an Institution partially
or entirely at a flat rate per client account, which could amount to more than
0.25% of the value of Fund shares held by the Institution in the case of clients
having small accounts.)
This Supplement is dated March 16, 1998, and replaces the Supplement dated
March 2, 1998.
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NEUBERGER&BERMAN
EQUITY ASSETS
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED DECEMBER 15, 1997
I. The paragraph in the section regarding the investment program of
Neuberger&Berman MANHATTAN Portfolio (page 5) is revised to read as
follows:
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Investment Insight
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Neuberger&Berman MANHATTAN Portfolio
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The co-managers focus their research efforts on mid-cap stocks in new
and/or rapidly evolving industries. The mid-cap growth sector is less widely
followed by Wall Street analysts and therefore, less efficient than the
large-cap stock market. Within this sector, the co-managers believe they are
likely to identify more of their brand of growth stock opportunities.
Considering the currently high valuations of large-cap growth stocks relative to
mid-cap growth stocks with what the co-managers think is comparable or, in many
cases, better earnings growth potential, they believe the Portfolio is
particularly well positioned in today's market.
The Portfolio now uses the Russell Midcap(TM) Growth Index as its
benchmark. Consistent with the Portfolio's capitalization parameters and growth
style, the co-managers believe this is a more appropriate benchmark than the S&P
"500." For purposes of its policy regarding investment in mid-cap companies, the
Portfolio looks at the range of the Russell Midcap(TM) Index as of its last
annual adjustment. The Frank Russell Company typically announces that range each
June 30.
Although the Portfolio has a current intention to focus primarily on
mid-cap stocks, it can invest in securities of companies from any capitalization
level. The co-managers particularly examine the universe of stocks with market
capitalizations between $500 million and $8 billion, in their search for
promising investment opportunities.
II. The paragraph in the section regarding investment in foreign currency
transactions (page 19) is revised to read as follows:
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ADDITIONAL INVESTMENT INFORMATION
FOREIGN CURRENCY TRANSACTIONS (ALL PORTFOLIOS). Each Portfolio may enter
into contracts for the purchase or sale of a specific currency at a future date
(usually less than one year from the date of the contract) at a fixed price
("forward contracts"). Each Portfolio also may engage in foreign currency
exchange transactions on a spot (i.e., cash) basis at the spot rate prevailing
in the foreign currency exchange market. The Portfolios enter into forward
contracts in an attempt to hedge against changes in the prevailing currency
exchange rates. The Portfolios do not engage in transactions in forward
contracts for speculation; they view investments in forward contracts as a means
of establishing more definitely the effective return on, or the purchase price
<PAGE>
of, securities denominated in foreign currencies. Forward contract transactions
include forward sales or purchases of foreign currencies for the purpose of
protecting the U.S. dollar value of securities held or to be acquired by a
Portfolio or protecting the U.S. dollar equivalent of dividends, interest, or
other payments on those securities.
The date of this Supplement is March 16, 1998.