NEUBERGER & BERMAN GUARDIAN TRUST
                Supplement dated October 29, 1997 to Statement of
                  Additional Information dated December 6, 1996

                             INVESTMENT INFORMATION

      Neuberger  &  Berman  Guardian  Portfolio  previously  was  subject  to  a
non-fundamental  policy on investments in any one issuer. This policy prohibited
the  Portfolio  from  purchasing  "the  securities of any one issuer (other than
securities issued or guaranteed by the U.S. Government or any of its agencies or
instrumentalities) if, as a result, more than 5% of the Portfolio's total assets
would be invested in the  securities of that  issuer." On October 23, 1997,  the
Board  of  Trustees  of  Equity   Managers   Trust  voted  to   eliminate   that
non-fundamental policy.

      As diversified investment companies,  the Portfolio and Neuberger & Berman
Guardian Trust remain  subject to a fundamental  policy on investment in any one
issuer,  which  provides that "the Portfolio may not, with respect to 75% of the
value of its total  assets,  purchase the  securities  of any issuer (other than
securities issued or guaranteed by the U.S. Government or any of its agencies or
instrumentalities)  if,  as a  result,  (i)  more  than 5% of the  value  of the
Portfolio's  total assets would be invested in the  securities of that issuer or
(ii) the Portfolio would hold more than 10% of the outstanding voting securities
of that issuer."

      The Board of  Trustees  of  Neuberger  & Berman  Equity  Trust has adopted
identical changes to the  non-fundamental  policy of Neuberger & Berman Guardian
Trust.