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

                             INVESTMENT INFORMATION

        Neuberger & Berman Focus Portfolio, Neuberger & Berman Genesis Portfolio
and  Neuberger  &  Berman  Guardian  Portfolio  previously  were  subject  to  a
non-fundamental  policy on investments in any one issuer. This policy prohibited
each of these  Portfolios  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  Portfolios  and  their
corresponding  Funds remain  subject to a fundamental  policies on investment in
any one issuer,  which  provides that "no Portfolio  may, 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 the corresponding Funds.