-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PieGG8og917MU5yXZ8ZNzsOjarDk/HpzD1ABoyb9cY2Y8DdOOqWBJoQDRzvKucQm JmLHi+VehvXcSJ/oKi5P7A== 0000898432-99-000621.txt : 19990520 0000898432-99-000621.hdr.sgml : 19990520 ACCESSION NUMBER: 0000898432-99-000621 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19990519 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEUBERGER BERMAN EQUITY TRUST CENTRAL INDEX KEY: 0000906926 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 497 SEC ACT: SEC FILE NUMBER: 033-64368 FILM NUMBER: 99630334 BUSINESS ADDRESS: STREET 1: 605 THIRD AVE STREET 2: 2ND FLOOR CITY: NEW YORK STATE: NY ZIP: 10158-0006 BUSINESS PHONE: 2124768800 FORMER COMPANY: FORMER CONFORMED NAME: NEUBERGER & BERMAN EQUITY TRUST DATE OF NAME CHANGE: 19930615 497 1 NEUBERGER BERMAN GENESIS TRUST SUPPLEMENT TO THE PROSPECTUS DATED DECEMBER 30, 1998 I. As of June 1, 1999, the fund is open to new investors. II. THE FOLLOWING DISCLOSURE IS ADDED TO THE SIDEBAR ENTITLED "OTHER RISKS" IN THE PROSPECTUS: In using certain derivatives to gain stock market exposure for excess cash holdings, the fund increases its risk of loss. This Supplement is dated May 26, 1999. NEUBERGER BERMAN NYCDC SOCIALLY RESPONSIVE TRUST SUPPLEMENT TO THE PROSPECTUS DATED DECEMBER 30, 1998 I. THE LAST SENTENCE OF THE THIRD PARAGRAPH UNDER THE HEADING "GOAL & STRATEGY" ON PAGE 3 OF THE PROSPECTUS IS REVISED TO READ AS FOLLOWS: While these judgments are inevitably subjective, the fund has a strict policy of avoiding companies that receive more than 5% of their total revenue from alcohol, tobacco, gambling, or weapons, or that are involved in nuclear power. The fund also does not invest in any company that derives its total revenue primarily from non-consumer sales to the military. II. THE FOLLOWING DISCLOSURE IS ADDED TO THE SIDEBAR ENTITLED "OTHER RISKS" ON PAGE 4 OF THE PROSPECTUS: In using certain derivatives to gain stock market exposure for excess cash holdings, the fund increases its risk of loss. This Supplement is dated May 26, 1999. NEUBERGER BERMAN NYCDC SOCIALLY RESPONSIVE TRUST SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED DECEMBER 30, 1998 I. THE FOLLOWING DISCLOSURE IS ADDED TO THE SECTION ENTITLED "FUTURES CONTRACTS AND OPTIONS THEREON": The Portfolio may purchase and sell stock index futures contracts, and may purchase and sell options thereon. For purposes of managing cash flow, managers may use such futures and options to increase each Portfolio's exposure to the performance of a recognized securities index, such as the S&P "500" Index. II. THE FOLLOWING DISCLOSURE IS ADDED TO THE STATEMENT OF ADDITIONAL INFORMATION UNDER THE HEADING "FUTURES, OPTIONS ON FUTURES, OPTIONS ON SECURITIES, FORWARD CONTRACTS, AND OPTIONS ON FOREIGN CURRENCIES (COLLECTIVELY, `FINANCIAL INSTRUMENTS')": PUT AND CALL OPTIONS ON SECURITIES INDICES. For purposes of managing cash flow, the Portfolio may purchase put and call options on securities indices to increase the Portfolio's exposure to the performance of a recognized securities index, such as the S&P 500 Index. Unlike a securities option, which gives the holder the right to purchase or sell a specified security at a specified price, an option on a securities index gives the holder the right to receive a cash "exercise settlement amount" equal to (1) the difference between the exercise price of the option and the value of the underlying securities index on the exercise date (2) multiplied by a fixed "index multiplier." A securities index fluctuates with changes in the market values of the securities included in the index. Options on stock indices are currently traded on the Chicago Board Options Exchange, the New York Stock Exchange ("NYSE"), the American Stock Exchange, and other U.S. and foreign exchanges. Securities index options have characteristics and risks similar to those of securities options, as discussed herein. POLICIES AND LIMITATIONS. For purposes of managing cash flow, the Portfolio may purchase put and call options on securities indices to increase the Portfolio's exposure to the performance of a recognized securities index, such as the S&P 500 Index. All securities index options purchased by the Portfolio will be listed and traded on an exchange. III. The following section is added to the Statement of Additional Information: OTHER INVESTMENT COMPANIES. The Portfolio at times may invest in instruments structured as investment companies to gain exposure to the performance of a recognized securities index, such as the S&P "500" Index. As a shareholder in an investment company, the Portfolio would bear its pro rata share of that investment company's expenses. Investment in other funds may involve the payment of substantial premiums above the value of such issuer's portfolio securities. The Portfolio does not intend to invest in such funds unless, in the judgment of NB Management, the potential benefits of such investment justify the payment of any applicable premium or sales charge. POLICIES AND LIMITATIONS. The Portfolio's investment in such securities is limited to (i) 3% of the total voting stock of any one investment company, (ii) 5% of the Portfolio's total assets with respect to any one investment company and (iii) 10% of the Portfolio's total assets in the aggregate. This Supplement is dated May 26, 1999. NEUBERGER BERMAN EQUITY TRUSTS SUPPLEMENT TO THE PROSPECTUS DATED DECEMBER 30, 1998 I. NEUBERGER BERMAN INTERNATIONAL TRUST: THE FOLLOWING PARAGRAPH IS ADDED TO THE "MANAGEMENT" SIDEBAR ON PAGE 24: Benjamin E. Segal is an Assistant Vice President of Neuberger Berman Management Inc. and has been an Associate Manager of the fund since January 1999. He was an assistant portfolio manager at another firm from 1997 to 1998. Prior to 1997, he held positions in international finance and consulting. II. NEUBERGER BERMAN GENESIS TRUST: AS OF JUNE 1, 1999, THE FUND IS OPEN TO NEW INVESTORS. III. NEUBERGER BERMAN SOCIALLY RESPONSIVE TRUST: THE LAST SENTENCE OF THE THIRD PARAGRAPH UNDER THE HEADING "GOAL & STRATEGY" ON PAGE 43 OF THE PROSPECTUS IS REVISED TO READ AS FOLLOWS: While these judgments are inevitably subjective, the fund has a strict policy of avoiding companies that receive more than 5% of their total revenue from alcohol, tobacco, gambling, or weapons, or that are involved in nuclear power. The fund also does not invest in any company that derives its total revenue primarily from non-consumer sales to the military. IV. NEUBERGER BERMAN GENESIS, MANHATTAN, MILLENNIUM, PARTNERS AND SOCIALLY RESPONSIVE TRUSTS: THE FOLLOWING DISCLOSURE IS ADDED TO THE SIDEBARS ENTITLED "OTHER RISKS" ON PAGES 10, 28, 34, 38 AND 44 OF THE PROSPECTUS: In using certain derivatives to gain stock market exposure for excess cash holdings, the fund increases its risk of loss. This Supplement is dated May 26, 1999, and replaces the Supplement dated February 3, 1999. NEUBERGER BERMAN EQUITY TRUSTS SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED DECEMBER 30, 1998 I. THE FINAL PARAGRAPH IN THE SECTION "INVESTMENT INFORMATION - INVESTMENT POLICIES AND LIMITATIONS" IS REVISED TO READ AS FOLLOWS: Although the Portfolios do not have policies limiting their investment in warrants, no Portfolio currently intends to invest in warrants unless acquired in units or attached to securities. II. THE FOLLOWING ADDITIONAL CHANGES APPLY TO THE STATEMENT OF ADDITIONAL INFORMATION: Effective April 28, 1999, each Portfolio may purchase and sell stock index futures contracts, and purchase and sell put and call options thereon, for purposes of managing cash flow. The managers may use such futures and options to increase each Portfolio's exposure to the performance of a recognized securities index, such as the S&P 500 Index. Therefore, the disclosure regarding such futures and options in the sections "Futures Contracts and Options Thereon," "Put and Call Options on Securities Indices," "General Information about Securities Options" and "Regulatory Limitations on Using Financial Instruments" under the heading "Futures, Options on Futures, Options on Securities and Indices, Forward Contracts, and Options on Foreign Currencies (collectively, `Financial Instruments')" applies to all of the Portfolios. As in the past, Neuberger Berman INTERNATIONAL, MILLENNIUM and SOCIALLY RESPONSIVE Portfolios also have broader authority with respect to the use of derivatives, although MILLENNIUM and SOCIALLY RESPONSIVE Portfolios have no current intention of using such authority. In addition, each Portfolio now may invest, at times, in instruments structured as investment companies to gain exposure to the performance of a recognized securities, index, such as the S&P 500 Index, or another appropriate index. Therefore, the disclosure regarding such investments in the section "Other Investment Companies" applies to all the Portfolios. III. The following discussion is added to the Statement of Additional Information: AS THE FOLLOWING CHART SHOWS, MARKETS HAVE TENDED TO MOVE IN CYCLES AND EXTREMES, WHETHER IT'S BETWEEN ASSET CLASSES, CAPITALIZATION RANGES OR EQUITY STYLES. RECENT EVIDENCE SUGGESTS THAT VALUE STOCKS, PARTICULARLY IN THE MID- AND SMALL-CAP SECTORS, ARE ATTRACTIVELY PRICED. WHILE IT'S IMPOSSIBLE TO PREDICT WHEN MARKET CYCLES WILL CHANGE, IN NEUBERGER BERMAN'S OPINION, THESE SECURITIES NOW PRESENT GOOD BUYING OPPORTUNITIES. HISTORICAL PERFORMANCE CYCLES CHART A: Russell Mid-Cap Value Index vs. S&P 500 Index 1986-1998 x-axis: Year y-axis: Performance Spread Russell Midcap S&P 500 Difference -------------- ------- ---------- Value ----- 1986 17.87 18.21 -0.34 1987 -2.19 5.17 -7.36 1988 24.61 16.50 8.11 1989 22.70 31.43 -8.73 1990 -16.08 -3.19 -12.89 1991 37.92 30.55 7.37 1992 21.68 7.68 14.00 1993 15.62 10.00 5.62 1994 -2.12 1.33 -3.45 1995 34.93 37.50 -2.57 1996 20.26 23.25 -2.99 1997 34.41 33.38 1.03 1998 5.08 28.76 -23.68 Cumulative Returns S&P 500 RussMCV ------- ------- 3 years ending 1988 45.64 43.66 2 years ending 1990 27.60 2.97 3 years ending 1993 54.56 94.03 5 years ending 1998 193.92 124.32 Source: Frank Russell, Investment Technologies, Callan Assoc., Neuberger Berman, LLC Dec. 31, 1985 is the inception date of the Russell Mid-Cap Value Index. Footnotes: *The Russell Midcap(TRADEMARK) Value Index measures the performance of those Russell Midcap(TM) Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000(R) Index, which represents approximately 35% of the total market capitalization of the Russell 1000 Index (which, in turn, consists of the 1,000 largest U.S. companies, based on market capitalization). The S&P 500 Index is an unmanaged index generally considered representative of stock market activity. Please note that indices do not take into account any fees and expenses of investing in the individual securities that they track and that individuals cannot invest directly in any index. Data about the performance of these indices are prepared or obtained by Neuberger Berman Management Inc. and include reinvestment of all dividends and capital gain distributions. Performance data quoted represents past performance, which is no guarantee of future results. HISTORICAL PERFORMANCE CYCLES CHART B: Russell 2000 Index vs. S&P 500 Index 1979-1998 x-axis: Year y-axis: Performance Spread DC-308688.02 Russell 2000 S&P 500 Difference ------------ ------- ---------- 1979 43.09 18.44 24.65 1980 38.58 32.42 6.16 1981 2.03 -4.91 6.94 1982 24.95 21.58 3.36 1983 29.13 22.43 6.71 1984 -7.30 6.10 -13.41 1985 31.05 31.57 -0.52 1986 5.68 18.21 -12.53 1987 -8.77 5.17 -13.94 1988 24.89 16.50 8.39 1989 16.24 31.43 -15.19 1990 -19.51 -3.19 -16.31 1991 46.05 30.55 15.50 1992 18.41 7.68 10.73 1993 18.91 10.00 8.91 1994 -1.82 1.33 -3.15 1995 28.44 37.50 -9.06 1996 16.49 23.25 -6.75 1997 22.36 33.38 -11.01 1998 -2.55 28.76 -31.30 Cumulative Returns S&P 500 R2000 ------- ----- 5 years ending 122.58 226.44 1983 7 years ending 160.15 36.88 1990 3 years ending 54.56 105.63 1993 5 years ending 193.92 75.23 1998 Source: Frank Russell, Investment Technologies, Callan Assoc., Neuberger Berman, LLC Dec. 31, 1978 is the inception date of the Russell 2000 Index. Footnotes: *The Russell 2000(R) Index is an unmanaged index consisting of the securities of the 2,000 issuers having the smallest capitalization in the Russell 3000(R) Index, representing approximately 11% of the Russell 3000 total market capitalization. The smallest company's market capitalization is roughly $222 million. The Russell 3000(R) Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization. The S&P 500 Index is an unmanaged index generally considered representative of stock market activity. Please note that indices do not take into account any fees and expenses of investing in the individual securities that they track and that individuals cannot invest directly in any index. Data about the performance of these indices are prepared or obtained by Neuberger Berman Management Inc. and include reinvestment of all dividends and capital gain distributions. Performance data quoted represents past performance, which is no guarantee of future results. This Supplement is dated May 26, 1999. -----END PRIVACY-ENHANCED MESSAGE-----