Neuberger Berman Sustainable Equity Fund NCSR Certified annual shareholder report (management investment company)

As filed with the Securities and Exchange Commission on November 5, 2009

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-00582

NEUBERGER BERMAN EQUITY FUNDS
(Exact Name of the Registrant as Specified in Charter)

605 Third Avenue, 2nd Floor
New York, New York 10158-0180
(Address of Principal Executive Offices – Zip Code)

Registrant's telephone number, including area code: (212) 476-8800

Robert Conti
Chief Executive Officer and President
Neuberger Berman Equity Funds
605 Third Avenue, 2nd Floor
New York, New York 10158-0180

Arthur Delibert, Esq.
K&L Gates LLP

1601 K Street, N.W.
Washington, D.C. 20006-1600

(Names and Addresses of agents for service)

Date of fiscal year end: August 31, 2009

Date of reporting period: August 31, 2009

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Shareholders.

Neuberger Berman
Equity Funds

Investor Class Shares
Trust Class Shares
Advisor Class Shares
Institutional Class Shares

Class A Shares
Class C Shares
Class R3 Shares

Climate Change Fund

Emerging Markets Equity Fund

Equity Income Fund

Focus Fund

Genesis Fund

Guardian Fund

International Fund

International Institutional Fund

International Large Cap Fund

Large Cap Disciplined Growth Fund

Mid Cap Growth Fund

Partners Fund

Real Estate Fund

Regency Fund

Select Equities Fund

Small and Mid Cap Growth Fund

Small Cap Growth Fund

Socially Responsive Fund

Annual Report

August 31, 2009

Contents

THE FUNDS

President's Letter					1

PORTFOLIO COMMENTARY

Climate Change Fund					2

Emerging Markets Equity Fund					6

Equity Income Fund					10

Focus Fund					14

Genesis Fund					17

Guardian Fund					20

International Fund					24

International Institutional Fund					27

International Large Cap Fund					30

Large Cap Disciplined Growth Fund					34

Mid Cap Growth Fund					38

Partners Fund					42

Real Estate Fund					45

Regency Fund					48

Select Equities Fund					51

Small and Mid Cap Growth Fund					55

Small Cap Growth Fund					58

Socially Responsive Fund					62

FUND EXPENSE INFORMATION					70

SCHEDULE OF INVESTMENTS/TOP TEN EQUITY HOLDINGS

Climate Change Fund					73

Emerging Markets Equity Fund					75

Equity Income Fund					78

Focus Fund					80

Genesis Fund					81

Guardian Fund					83

International Fund					84

International Institutional Fund					87

International Large Cap Fund					90

Large Cap Disciplined Growth Fund					93

Mid Cap Growth Fund					95

Partners Fund					97

Real Estate Fund					99

Regency Fund					100

Select Equities Fund					102

Small and Mid Cap Growth Fund					103

Small Cap Growth Fund					105

Socially Responsive Fund					107

FINANCIAL STATEMENTS					117

FINANCIAL HIGHLIGHTS (ALL CLASSES) PER SHARE DATA

Climate Change Fund					173

Emerging Markets Equity Fund					173

Equity Income Fund					173

Focus Fund					175

Genesis Fund					175

Guardian Fund					177

International Fund					179

International Institutional Fund					181

International Large Cap Fund					181

Large Cap Disciplined Growth Fund					183

Mid Cap Growth Fund					183

Partners Fund					185

Real Estate Fund					187

Regency Fund					187

Select Equities Fund					189

Small and Mid Cap Growth Fund					189

Small Cap Growth Fund					189

Socially Responsive Fund					191

Reports of Independent Registered Public Accounting Firms					199

Directory					202

Trustees and Officers					203

Proxy Voting Policies and Procedures					213

Quarterly Portfolio Schedule					213

Notice to Shareholders					214

Report of Votes of Shareholders					215

"Neuberger Berman" and the Neuberger Berman logo are service marks of Neuberger Berman LLC. "Neuberger Berman Management LLC" and the individual fund names in this shareholder report are either service marks or registered service marks of Neuberger Berman Management LLC, formerly Neuberger Berman Management Inc. ^_©2009 Neuberger Berman Management LLC. All rights reserved.

President's Letter

Dear Fellow Shareholder,

The fiscal year ended August 31, 2009 was one of remarkable extremes, involving a series of unprecedented events affecting the financial markets and global economy as well as drastic shifts in the performance patterns of the capital markets. During the period, the S&P 500 Index closed down by roughly 18%, which included both the worst six-month market decline and the strongest six-month rally for the index since the early 1930s.

The equity market was under pressure even before the start of the reporting period, as the damaged housing market, rising unemployment, constrained consumer spending and difficult credit conditions helped undermine the economy and investor confidence. With September 2008's financial crisis, however, the situation became markedly worse. Credit markets virtually froze, stocks dropped precipitously across the globe, and investors became increasingly concerned not just about recession, but the possibility of a 1930s-style depression.

In the midst of these problems, governments worldwide took unprecedented measures to shore up liquidity and stimulate their economies, providing massive bailouts to individual financial institutions and seeking ways to support balance sheets and reduce the impact of toxic debt on the credit markets. Despite these efforts, economic news continued to be dismal for months. However, by March, signs of marginal improvement in housing and the banking sector, as well as moderating declines in other areas triggered new optimism that worst-case economic scenarios could be avoided, and led to a sharp rebound in stocks that continued, with some breaks, through the end of the reporting period.

Looking forward, we believe there continue to be risks. Although the economy appears to be improving, its long-term strength is in question: domestic consumers face many challenges including high unemployment and a relatively conservative credit environment, and corporations may become less eager to spend once depleted inventory levels are restored. Still, governments worldwide remain very serious about economic stimulus, and prospects for consumers in the emerging markets are currently considerably brighter than for their U.S. counterparts, potentially providing some support for well positioned globally oriented companies.

Even with recent gains, the past fiscal year has been enormously painful for investors. For portfolio managers who focus on fundamentals, this period has carried some unique challenges, as a largely indiscriminate equity sell-off has been followed by a period in which many low-quality stocks, which had declined precipitously, enjoyed some of the market's best returns on the upside. Still, for practitioners of long-term investing, one benefit of the steep correction was to depress the stock prices of many good companies—allowing such investors viable entry points in what they believe could be exceptional opportunities.

As always, the portfolio managers at Neuberger Berman are approaching this environment thoughtfully and with great precision. Although they do not profess to be market prognosticators, they remain highly attentive to current macroeconomic trends, as well as the development of new regulation in this era of heightened government activism. Most importantly, they remain true to their investment disciplines, looking at individual company fundamentals as well as key measures of quality, value and risk to create portfolios that they believe will serve their shareholders well over the long term. This expertise and focus on individual stock selection, I believe, will be highly valuable in the current market and economic environment.

Thank you for your continued confidence in Neuberger Berman. We look forward to serving your investment needs in the year to come.

Sincerely,

Robert Conti
President and CEO
Neuberger Berman Mutual Funds

Climate Change Fund Commentary

For the fiscal year ended August 31, 2009, Neuberger Berman Climate Change Fund trailed its benchmark, the MSCI World Index, as both the Fund and the index declined as a result of an unprecedented equity market environment. While the Fund was outdistanced by the more comparable HSBC Global Climate Change Index during the period, the Fund outperformed many "pure play" alternative and clean energy investment vehicles. Although extreme market volatility created a challenging environment at times during the 12-month reporting period, we are greatly encouraged by the Fund's strong performance in calendar year 2009 and are more energized than ever about the Fund's investment approach, especially given the many positive climate-change related government, industry and company-specific policies and initiatives that are developing on an ongoing basis.

Government policy momentum has been extraordinary this calendar year, with the Obama Administration and Congress introducing numerous climate-related initiatives. The American Reinvestment and Recovery Act, passed in February, provides for more than $100 billion in spending on low-carbon growth initiatives. Recently, federal agencies have begun deploying these funds in myriad ways—for example, through clean energy cash grants and loan guarantees, advanced battery/electric vehicle grants, renewable energy manufacturing tax credits, smart grid grants and cleaner transportation programs (such as "cash-for-clunkers" and natural gas vehicle incentives). On a global basis, governments are targeting "green" stimulus initiatives in the hope, not only to improve energy security and environmental benefits, but also to drive job creation; we estimate that hundreds of billions of dollars have been directed worldwide to address these issues so far. We believe that an upcoming global climate change summit in Copenhagen could stimulate even more interest in climate change issues—and by extension support opportunities in climate change-related investing.

The Climate Change Fund invests within three broad market segments—Cleaner Energy, Energy Efficiency and Climate Adaptation—carving out investment sub-themes within these areas. During the fiscal year, a number of factors supported Fund results, including relatively defensive holdings (e.g., natural gas utilities, water metering companies) with strong management teams and stocks within our alternative energy and energy storage sub-themes (within our Cleaner Energy and Energy Efficiency categories). We believe the energy storage/battery industry is poised to enter a significant expansion phase driven by higher energy costs, technological breakthroughs and domestic and international policy support; for example, the global lithium ion battery market for automotive applications alone is expected to grow exponentially over the coming decade. In alternative energy, the geothermal industry appears promising to us. Not only is it a clean, dependable and cost-effective energy solution, but it appears to have strong regulatory support (in the form of renewable electricity standards) and a seemingly abundant, although largely untapped, source of supply.

Several factors impeded Fund performance during the fiscal year, including lingering questions about commodity prices and economy-wide concerns over the availability of capital. For instance, even with continued progress toward grid parity, our solar sub-theme underperformed as the fragile credit market and softening demand gave rise to oversupply, pricing pressures, and short-term profitability concerns. The wind industry also succumbed to the weak credit market as marginal wind farms struggled to access project finance and some utilities pared back capital expenditures, which triggered concerns about turbine overcapacity. Importantly, these sectors have rebounded strongly in calendar year 2009 and we continue to believe that the long-term investment appeal of both wind and solar remains intact, with the two industries likely, in our view, to be among the top beneficiaries of government stimulus in 2010.

Although economic and credit-related fears appear to be tapering off, we believe that the Fund's diversification—by segment, geography, market capitalization and sector—remains a key advantage. The Fund continues to be overweighted in U.S. securities—largely due to policy catalysts and signs of economic stabilization—but our international exposure has continued to rise in recent months. At the close of the fiscal year, our allocation among the three investment components was as follows: 40% Cleaner Energy, 34% Energy Efficiency and 22% Climate Adaptation. Our holdings currently span market capitalizations and represent eight of 10 industrial sectors, with our largest overweights in smart grid, water service, natural gas and wind power. Cash levels are currently low as we continue to find what we consider exceptional opportunities with attractive long-term reward/risk profiles.

In closing, we believe that climate change-related companies could benefit from the economic recovery, especially given the potential impact of climate-related stimulus next year and ongoing political support for policy initiatives. In our view, the Fund is well positioned to capitalize on these potential short-term developments and the ongoing, long-term evolution of the world to a new "carbon constrained" reality.

Sincerely,

Ronald B. Silvestri
Portfolio Manager

Climate change-related companies may be particularly susceptible to such factors as environmental protection regulatory actions, changes in government standards and subsidy levels, changes in taxation, and other domestic and international, political, regulatory and economic developments. Such companies may also be significantly affected by the level or pace of technological change in industries focusing on energy, pollution and environmental control. Because society's focus on climate change issues is relatively new, there could be significant changes of emphasis and direction, and rapid technological change, rendering even new approaches and products obsolete. The risks associated with these investments are set forth in the prospectus and statement of additional information.

Investing in foreign securities involves greater risks than investing in securities of U.S. issuers, including currency fluctuations, changes in local economic and political conditions, and the need to operate in less regulated financial markets.

To the extent that the Fund emphasizes small-, mid- or large-cap stocks, it takes on the associated risks. At times, large-cap stocks may lag other types of stocks in performance, which could cause a fund holding those stocks to perform worse than certain other funds. Small- or mid-cap stocks may fluctuate more widely in price than the market as a whole; underperform other types of stocks or be difficult to sell when the economy is not robust or during market downturns; be more affected than other types of stocks by the underperformance of a sector emphasized by the Fund. In addition, smaller companies in which the Fund may invest are often more volatile and less liquid than the stocks of larger companies; and these companies: may have a shorter history of operations than larger companies; may not have as great an ability to raise additional capital; and may have a less diversified product line, making them more susceptible to market pressure.

The composition, industries and holdings of the Fund are subject to change. Climate Change Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Climate Change Fund

TICKER SYMBOLS

Institutional Class				NBCLX
Class A				NBCAX
Class C				NBCCX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	4.1	%
Consumer Staples	0.5
Energy	9.1
Financials	2.2
Industrials	37.7
Information Technology	10.2
Materials	6.8
Utilities	28.5
Other	0.9
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,10

	Inception Date	1 Year			Life of Fund
At NAV
Institutional Class	05/01/2008		(26.55	%)		(27.05	%)
Class A	05/01/2008		(26.77	%)		(27.22	%)
Class C	05/01/2008		(27.22	%)		(27.73	%)
With Sales Charge
Class A			(30.95	%)		(30.37	%)
Class C			(27.92	%)		(27.73	%)
Index
MSCI World Index^2,19			(16.64	%)		(19.29	%)

Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all dividends and capital gain distributions.

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2012 for Institutional Class, Class A and Class C shares. The net expense ratios were 1.03%, 1.28% and 2.03% for Institutional Class, Class A and C shares, respectively. As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 25.07%, 16.86% and 28.63% for Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers or expense reimbursements).

Total Returns shown with a sales charge reflect the deduction of the current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charge (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1% which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.

Climate Change Fund

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Institutional Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart on previous page). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Emerging Markets Equity Fund Commentary

We are pleased to report that, for the period from its October 8, 2008 inception through fiscal year-end on August 31, 2009, Neuberger Berman Emerging Markets Equity Fund posted a strong positive return and outperformed its benchmark, the MSCI Emerging Markets (MSCI EM) Index.

The emerging markets, as measured by the MSCI EM Index, bottomed in October. They were extremely volatile from that point until early March, when the U.S. and developed international markets began to see improvement on the back of government stimulus plans and early indications of economic improvement. From March through the end of this reporting period, the index was up substantially, with numerous underlying countries posting high double-digit or low triple-digit returns.

During the October-August reporting period, all sectors of the index were positive, with Materials stocks performing best, up over 70%. The weakest index sector was Telecommunications, but even that closed up by 26%. China, Brazil and India contributed strongly to the index on a country basis, while Eastern European nations were relatively weak.

Beginning as it did in the midst of a tremendous worldwide equity market correction, the portfolio was well positioned from the start to employ some of the key tenets of its strategy—seeking opportunities from mispricings, and identifying quality companies selling at a discount to their underlying values.

Within the portfolio, stock selection in the Information Technology sector was excellent, and made a significant contribution to our outperformance. Wasion, a Chinese power meter firm, was a top performer for the period. Having completed an extensive build-out in generating capacity, China is now focusing spending on its electricity grid, benefiting companies like Wasion. ZTE, a Chinese telecom equipment manufacturer, was another positive contributor, on news that the company is gaining market share overseas and is likely to be a major beneficiary of increased mobile capital expenditures in China.

Stock selection in Energy also contributed to results. The Brazilian oil and gas firm Petrobras saw shares rise as prospects in Brazil's offshore oil segment improved. Addax Petroleum, a Canadian energy company with assets in West Africa and Kurdistan, was another strong performer. Addax was purchased by Chinese energy company Sinopec at a premium.

An overweight in Consumer Staples, along with solid stock selection, was also additive. Hengan International, a Chinese disposable paper hygiene products company, performed very well, although Central European Distribution, the largest producer and distributor of vodka in Poland and Russia, was among our weakest holdings, declining on concerns about Eastern European exposure and euro- and dollar-denominated debt.

Materials holdings were the largest detriment on a relative basis. Being underweight in the benchmark's top-performing sector, along with several individual disappointments, hurt relative results. Uralkali, a CIS-based potash producer, declined steeply. Potash prices had risen significantly in the first half of 2008, and fertilizer stocks throughout the world rallied. However, in what appeared to be punishment for charging market prices, the Russian government levied a large fine on the firm, damaging its prospects. Evraz was another disappointment. The Russian steel maker had become highly leveraged after several acquisitions, so when credit conditions became largely frozen early in the reporting period, the stock fell to near-bankruptcy levels. We purchased the stock well into its correction, but the severity of the economic downturn took a further toll on the share price. We recovered part of our losses before selling, but Evraz was still one of our poorest performers. Cash holdings within the portfolio, while not significant, were another slight negative in a sharply rallying market.

Looking ahead, we remain fairly cautious on the global economy. However, we expect better growth from the emerging markets than from developed nations. While there are rather large disparities among developing countries, the economic fundamentals of many emerging markets appear, in our opinion, to be strong, and, in many cases, more attractive than their developed counterparts. We think countries like China, India and Indonesia, with low public and private debt-to-GDP levels, banking systems with lower loan-to-deposit ratios, and strong potential from domestic

demand growth driven by large populations, offer attractive opportunities. Conversely, the indebted, export-driven economies of Taiwan, Korea and Eastern Europe are, in our opinion, less appealing.

In terms of individual stocks, the portfolio remains overweight in smaller domestic-market driven names, which we believe will continue to show secular growth despite global economic weakness. Sector overweights include Consumer Staples, Health Care, Information Technology and Industrials, and underweights include Energy and Financials.

In the face of a market that has rallied sharply since the Fund's inception, we continue to seek companies with strong fundamentals and attractive valuations across markets, using bottom-up stock selection to identify the opportunities we believe are best positioned for the longer term.

Sincerely,

Conrad Saldanha
Portfolio Manager

The risks involved in seeking capital appreciation from investments primarily in companies based outside the United States are set forth in the prospectus and statement of additional information.

Investing in the stocks of even the largest companies involves all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.

The composition, industries and holdings of the Fund are subject to change. In an attempt to reduce overall volatility, Emerging Markets Equity Fund diversifies the portfolio holdings over a wide array of countries and individual stocks.

Emerging Markets Equity Fund

TICKER SYMBOLS

Institutional Class				NEMIX
Class A				NEMAX
Class C				NEMCX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	5.6	%
Consumer Staples	7.4
Energy	12.6
Financials	19.7
Health Care	3.7
Industrials	13.5
Information Technology	16.0
Materials	11.6
Telecommunication Services	8.9
Utilities	1.0
Total	100.0	%

CUMULATIVE TOTAL RETURN^1,3,10

	Inception Date	Cumulative Total Return Ended 8/31/09 Life of Fund
At NAV
Institutional Class	10/08/2008		44.66	%
Class A	10/08/2008		44.38	%
Class C	10/08/2008		43.42	%
With Sales Charge
Class A			36.08	%
Class C			42.42	%
Index
MSCI Emerging Markets Index^2,19			30.66	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2012 for Institutional Class, Class A and Class C shares. The net expense ratios were 1.25%, 1.50% and 2.25% for Institutional Class, Class A and Class C shares, respectively. As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 2.09%, 2.45% and 3.20% for Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers or expense reimbursements).

Total Returns shown with a sales charge reflect the deduction of current maximum initial sales charge of 5.75% for Class A shares and the applicable contingent deferred sales charges (CDSC) for Class C shares. The maximum CDSC for Class C shares is 1%, which is reduced to 0% after 1 year. The performance of the Fund's share classes will differ primarily due to different sales charge structures and class expenses. Please see the prospectus for more information about sales charge structures, if any, and class expenses for your share class.

Emerging Markets Equity Fund

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Institutional Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Cumulative Total Return chart on previous page). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Equity Income Fund Commentary

We are pleased to report that for the fiscal year ended August 31, 2009, Neuberger Berman Equity Income Fund outperformed its benchmark, the S&P 500 Index. In light of the investment environment, however, returns for both the Fund and the index were negative.

The past 12 months encompassed some of the most difficult economic and market conditions in memory. The S&P 500 closed down over 18% for the fiscal year, but that figure belies the quarter-by-quarter turbulence beneath it. Beginning with the Lehman bankruptcy and economic crisis that ensued, we saw enormous upheaval in financial markets. By March 2009, the market had bottomed. A bank bailout proposal and other mildly positive news supported equities in a rally that continued through August. For the full fiscal year, however, every sector of the S&P 500 closed down.

Equity Income Fund has defensive features that seek to provide value in difficult environments. The sectors we emphasize—Real Estate Investment Trusts (REITs), Utilities, Convertible Bonds and higher yielding stocks—contribute to a portfolio designed for high income and capital appreciation potential, with less volatility than the market. This strategy, along with an opportunistic cash position and successful option writing strategies, led to our outperformance for the fiscal year.

Heading into this period, we had taken profits in Energy holdings, resulting in a significant cash position. With concerns about the slowdown already underway and the potential for damage to come, we kept approximately 20% of assets in cash and cash equivalents, which helped limit the impact of ongoing upheaval. We also purchased floating rate notes, which are cash equivalents whose income advantage helped us meet yield goals.

At an average of 14%, the portfolio's Utilities holdings were at a significant overweight versus the index. This sector has defensive characteristics and attractive, often growing dividends. Although Utilities underperformed the broader index, our stock selection enhanced relative performance.

In REITs, approximately 15% of assets, we sought companies with ample cash, attractive dividends and the potential to grow their businesses and withstand economic setbacks. We generally avoided traditional commercial and industrial REITs, finding what we consider compelling opportunities elsewhere. Digital Realty, a digital storage REIT, was a top performer. The aptly named Health Care REIT, as well as GZI, a Chinese REIT, and American Campus Communities, an off-campus housing firm, were beneficial to results. Timber REIT holdings also helped relative returns. Among traditional REITs, Weingarten Realty Investors and Equity Residential disappointed.

In Convertible Bonds, the portfolio's weighting was as high as 30% recently, up from around 18% last year. From September through November, the sector came under pressure as hedge funds began deleveraging quickly, dumping securities inventory at what we consider an exceptional discount to par. In December, we sifted through the carnage and built exposure as price declines drove yields to 10-15%. Even after the market improved, we believe the yield-to-maturity and yield-to-puts of our portfolio holdings remain impressive relative to the five-year U.S. Treasury. By August, we sold certain convertible bonds after dramatic appreciation and redeployed proceeds into other bonds with, in our opinion, attractive yields, strong balance sheets and good cash flows. The portfolio's allocation was approximately 22% by the period's close.

The Fund also benefited from option writing throughout the year. We sold call options as stocks in the portfolio approached our target sell prices, allowing us the potential to enhance the income from stocks as they neared our exit prices. When possible, we also sold puts on companies we wished to own at a particular price. This also served to increase income.

The most negative impact on the portfolio this period came from an overweight in Energy, where many holdings underperformed as oil prices declined from approximately $140 per barrel to $40 within seven months. We also owned energy-related Canadian Income Trusts. Holdings such as Hugoton Royalty Trust, Canadian Oil Sands Trust and Cathedral Energy suffered doubly as the Canadian dollar weakened toward year-end.

The Fund was significantly underweighted in Consumer Discretionary and Staples stocks versus the S&P 500, on concerns about high unemployment, declining home prices, limited access to credit, and a slowdown in U.S. consumer spending. Although REITs fall under the category of Financials, the portfolio was underweighted in traditional bank stocks versus the index. This hurt relative performance during the rally, but benefited the portfolio for the full year. For a brief time, the Fund owned JPMorgan Chase and Bank of America but sold these positions when we became uncertain about earnings as government intervention continued.

Going forward, our approach is optimistic but relatively cautious. We believe the Fund is well positioned to take advantage of improvements in the broader market, while limiting exposure to volatility and providing a competitive yield. The portfolio's cash position is down. In Energy, we expect benefits as oil prices rise on diminished production and increasing demand. The portfolio is overweighted in Materials, with holdings including Freeport-McMoRan Copper & Gold and Royal Gold serving as a hedge against a potentially weaker U.S. dollar. We expect to continue to find opportunity in Convertibles and select non-traditional REITs. Finally, the Fund remains underweighted in companies dependent on the U.S. consumer, instead looking to overweight those we believe have great assets, sustainable business models and an ability to continuously grow in a capital-constrained world.

Sincerely,

Richard S. Levine, Tony Gleason and Sandy Pomeroy
Portfolio Co-Managers

The risks involved in seeking capital appreciation from investments in a wide array of stocks are set forth in the prospectus and statement of additional information.

Investing in the stocks of even the largest companies involves all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.

The composition, industries and holdings of the Fund are subject to change. Equity Income Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Equity Income Fund

TICKER SYMBOLS

Institutional Class				NBHIX
Class A				NBHAX
Class C				NBHCX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	2.0	%
Consumer Staples	6.8
Energy	14.5
Financials	22.5
Health Care	1.7
Industrials	2.1
Information Technology	1.8
Materials	3.7
Telecommunication Services	1.7
Utilities	14.1
Other	29.1
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3

	Inception Date	1 Year			Life of Fund
At NAV
Institutional Class	06/09/2008		(15.54	%)		(0.94	%)
Class A¹⁷	06/09/2008		(16.01	%)		(1.13	%)
Class C¹⁷	06/09/2008		(16.60	%)		(1.44	%)
With Sales Charge
Class A¹⁷			(20.81	%)		(3.18	%)
Class C¹⁷			(17.42	%)		(1.44	%)
Index
S&P 500 Index^2,19			(18.25	%)		(7.76	%)

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

During the period from November 2, 2006 through June 9, 2008, the Fund's Trust Class had only one investor, which could have impacted Fund performance. The inception date for the Fund's Institutional Class, Class A and Class C shares was June 9, 2008. Performance shown for the Institutional Class, Class A and Class C shares prior to that date is that of the Trust Class, which had an inception date of November 2, 2006 and converted into Institutional Class shares and ceased operations on June 9, 2008.

Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2012 for Institutional Class, Class A and Class C shares. The net expense ratios were 0.85%, 1.23% and 1.98% for Institutional Class, Class A and Class C shares, respectively. As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 3.41%, 5.73% and 7.00% for Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers or expense reimbursements).

Equity Income Fund

COMPARISON OF A $10,000 INVESTMENT (WITH SALES CHARGE)

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Class A shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart on previous page). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Focus Fund Commentary

The fiscal year ended August 31, 2009 was a period of unprecedented market volatility as fallout from the credit crisis triggered a substantial decline, which was followed by a rally as governments responded worldwide. Although Neuberger Berman Focus Fund was able to regain a substantial amount of lost ground and roughly match the performance of its S&P 500 benchmark in the second half of the fiscal year, it recorded a loss and trailed the index for the full period.

Health Care investments had the most negative effect on performance relative to the benchmark. Two disappointing holdings in this sector were joint replacement manufacturer Zimmer Holdings and biotechnology company Genzyme. In the case of Zimmer, management's failure to quickly and effectively address issues regarding payments to doctors resulted in a loss of business momentum in a highly competitive market. We eliminated the position, but not before sustaining a substantial loss. Genzyme shares fell when one of its major plants failed an FDA inspection and then encountered manufacturing issues at the plant, causing an extended shut-down. We expect the plant to be fully functional by late November, which we consider a big first step in Genzyme's potential road to recovery.

Financials sector investments also underperformed, with Bank of America and Citigroup detracting from results. Citigroup had been a long-standing portfolio holding. We held onto the position throughout much of the credit crisis with the belief that the company would be able to weather the turmoil and ultimately emerge as a stronger entity. However, as the economy grew increasingly dire in the fourth quarter of calendar year 2008 and the stock market experienced a precipitous decline, in our view it became a real possibility that Citigroup might not survive. So, we gradually sold the position and took steep losses, albeit at much higher price levels than where Citigroup bottomed a few months later. We purchased Bank of America after the stock dropped 30% off its recent high because we felt that the risk/reward looked compelling. Yet when the federal government stepped in a few months later to inject capital into the company, we believed the risk to common shareholders became too severe. We therefore exited the position, again at a sharp loss, but several weeks before the stock reached its bottom. The Fund maintains exposure to the higher quality, better capitalized Financials that have and, we believe, should continue to benefit as the market stabilizes.

Consumer Discretionary sector investments posted a solid gain versus a loss for the corresponding S&P 500 sector component. Helped by particularly strong sales in its Olive Garden division, casual dining company Darden Restaurants enjoyed a gain for the period (although we then sold the position at an overall loss). Off-price retailer TJX was one of the few retailers to record sales growth over the last 12 months. The company's ability to access better brands (a result of the weak sales for full-price retailers) helped boost sales.

Although our Energy sector investments recorded a substantial loss, they outperformed the benchmark sector component by a sizable margin. Our focus on exploration and production companies with the lowest finding and development costs, which make them less leveraged to energy prices, helped limit the damage in this, the S&P 500's second worst performing sector. Range Resources, was the Fund's best Energy sector performer.

Reluctantly putting on our economic forecasting hat, we remain cautiously optimistic. We think the doomsday "Great Depression II" scenario is now highly unlikely. However, we question whether the V-shaped recovery equities investors appear to be anticipating will materialize. The economy has come a long way in the last six months, but this may be more a function of the replenishment of severely depleted inventories and government programs temporarily stimulating consumer spending than an indication of more normalized demand-driven growth.

Over the last six months, we believe investor confidence in a strong economic recovery and appetite for risk have increased significantly as evidenced by the superior performance of economically sensitive sectors such as Financials, Industrials, Materials and Energy and big moves in what we consider lower quality, more speculative issues. If economic growth fails to meet what may be optimistic expectations, we believe that today's market leaders are probably vulnerable. We think that focusing on undervalued companies that can sustain respectable cash flow and earnings growth even in a less vibrant economy could be a relatively satisfactory approach in the year ahead.

Sincerely,

David Levine
Portfolio Manager

Because the Fund is concentrated in a small number of stocks, it will be substantially overweighted or underweighted in certain economic sectors at any given time. Therefore its performance is likely to be disproportionately affected by the factors influencing those sectors and may suffer if certain economic sectors it emphasizes do not perform as expected. The risks associated with these investments are set forth in the prospectus and statement of additional information.

Small- and mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile. Large-cap stocks are subject to all the risks of stock market investing, including the risk that they may lose value.

The composition, industries and holdings of the Fund are subject to change.

Focus Fund

TICKER SYMBOLS

Investor Class				NBSSX
Trust Class				NBFCX
Advisor Class				NBFAX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	8.7	%
Consumer Staples	12.6
Energy	14.4
Financials	12.7
Health Care	16.6
Industrials	11.1
Information Technology	20.5
Utilities	3.4
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,9

	Inception Date	1 Year			5 Years			10 Years			Life of Fund
Investor Class	10/19/1955		(21.06	%)		0.27	%		2.02	%		10.21	%
Trust Class	08/30/1993		(21.21	%)		0.06	%		1.82	%		10.22	%
Advisor Class	09/03/1996		(21.45	%)		(0.17	%)		1.58	%		10.17	%
S&P 500 Index^2,19			(18.25	%)		0.49	%		(0.79	%)		9.61	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 0.90%, 1.12% and 1.35% for Investor Class, Trust Class and Advisor Class shares, respectively.

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Investor Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart above). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Genesis Fund Commentary

U.S. stocks mounted a sustained rally following the early March market bottom. However, this advance failed to compensate for the sharp sell-off during the first half of the fiscal year ended August 31, 2009. For the full 12-month period, all 10 Russell 2000^® Index sectors declined, with four finishing down 20% or more. Neuberger Berman Genesis Fund recorded strongly positive returns in the second half of the period but finished in negative territory, lagging its Russell 2000 benchmark.

The disappointing relative returns of Health Care and Consumer Discretionary sector investments were largely responsible for the Fund's underperformance versus the benchmark. We made some mistakes, most notably ArthroCare and K-V Pharmaceutical Company, both of which suffered company-specific problems and were eliminated from the portfolio. Contract research companies Pharmaceutical Product Development and ICON PLC also performed poorly as large pharmaceuticals responded to potential changes in the health care system by reducing research and development spending. We believe this is a temporary phenomenon and that once "big pharma" increases R&D spending, these two well-positioned companies will rebound. Radio rating services company Arbitron and casket and headstone manufacturer Matthews International were the poorest performing Consumer Discretionary investments. Arbitron's struggles are tied to the pressures facing its primary customers—radio operators which have been experiencing a severe advertising slump. We have meaningfully reduced our position in Arbitron. As for Matthews, this is a classic "Steady Eddie" company with strong competitive positions in stable end markets. Due largely to the severe recession and a decline in the nation's death rate for 2009, Matthews is on track to have modestly down earnings for the year—a disappointing performance for investors who had become accustomed to consistently increasing earnings during the past several years. As a result, the stock was not able to keep pace with the overall Consumer Discretionary segment during the fiscal year.

Although the portfolio was overweighted in Energy—the Russell 2000's worst performing sector—and our holdings declined sharply, they outpaced sector counterparts and made a positive contribution to relative performance. Our bias toward exploration and production companies such as Southwestern Energy and Concho Resources, which have solid balance sheets and have been steadily increasing production and reserves on an economic basis, was the primary reason our holdings outperformed the corresponding benchmark component by a wide margin. Financials holdings also outperformed. The portfolio was significantly underweighted in Financials and our avoidance of the most credit-sensitive financial businesses helped us escape much of the damage in this hard-hit sector.

Over the last six months we have witnessed a sea change in investor sentiment. Investors have gone from asking, "How bad will it get?" to "How good is it going to be?" We believe that investor confidence in a strong global economic recovery is reflected in their renewed appetite for risk. To wit, from the Russell 2000 bottom on March 9, 2009 through August 31, 2009, lower quality, more speculative stocks—as measured by return on equity, price/projected earnings, market capitalization range and stock price (stocks trading under $5 per share)—have outperformed by a wide margin. Historically, Genesis has lagged its benchmark during such periods due to our focus on owning high quality businesses.

Moreover, we are not so confident that the current economic rebound is sustainable. We believe that recent improvement in the U.S. economy is primarily the result of rebuilding inventories that were decimated when the "economic sky was falling." In addition, government programs may have temporarily reinvigorated consumer spending. Once inventories are brought in line with still relatively weak domestic demand and government incentives for consumer spending are reduced or eliminated, we believe the economy may lose momentum.

Our long-held approach of seeking a diversified portfolio of high quality, financially strong companies selling at average to below-average prices remains intact. We have overlaid this approach with several macroeconomic themes. Consequently, we continue to underweight sectors such as Consumer Discretionary and Financials (specifically, credit-sensitive businesses such as banking, consumer credit companies and real estate investment trusts) that are highly dependent on the still overleveraged American consumer. Also, we continue to overweight sectors such as Energy, select Materials and agriculture-related Industrials, which we believe should continue to benefit from increasing emerging market demand. We also remain committed to less economically sensitive businesses, such as "Steady Eddies" and Health Care. We believe

these strategies could lead to superior relative performance if our reservations regarding the durability of a vibrant economic recovery prove justified. If economic growth exceeds our expectations, we believe the portfolio's overweights in Energy, Materials and select Industrials should help Genesis participate in any extended stock-market advance.

Sincerely,

Judith M. Vale and Robert D'Alelio
Portfolio Co-Managers

The risks involved in seeking capital appreciation from investments primarily in companies with small market capitalization are set forth in the prospectus and statement of additional information.

The composition, industries and holdings of the Fund are subject to change. Genesis Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Genesis Fund

TICKER SYMBOLS

Investor Class				NBGNX
Trust Class				NBGEX
Advisor Class				NBGAX
Institutional Class				NBGIX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	4.9	%
Consumer Staples	8.1
Energy	14.6
Financials	10.3
Health Care	18.7
Industrials	25.0
Information Technology	10.5
Materials	6.7
Utilities	1.2
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3

	Inception Date	1 Year			5 Years			10 Years			Life of Fund
Investor Class	09/27/1988		(25.72	%)		5.52	%		10.48	%		11.84	%
Trust Class	08/26/1993		(25.73	%)		5.48	%		10.44	%		11.84	%
Advisor Class	04/02/1997		(25.95	%)		5.20	%		10.15	%		11.65	%
Institutional Class⁷	07/01/1999		(25.55	%)		5.74	%		10.74	%		11.97	%
Russell 2000^® Index^2,19			(21.29	%)		2.21	%		4.30	%		8.29	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 1.04%, 1.11%, 1.37% and 0.86% for Investor Class, Trust Class, Advisor Class and Institutional Class shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2019 for Institutional Class shares.

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Investor Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart above). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Guardian Fund Commentary

For the fiscal year ended August 31, 2009, Neuberger Berman Guardian Fund underperformed its benchmark, the S&P 500 Index. Within an overwhelmingly down market, performance for both the Fund and the index was negative.

In September 2008, the macroeconomic environment appeared dire, and markets sold off indiscriminately. Credit was constrained, business and consumer spending collapsed, and capacity utilization plummeted as businesses aggressively liquidated inventory. By early calendar year 2009, evidence suggested to us that this unprecedented global inventory destocking was ending, shifting toward a replenishment cycle.

Subsequent to the March equity market low, we have seen a significant rebound in global industrial production as businesses position to restock inventory. Over this period, the global economy has also benefited from various stimulus packages, reopened credit markets, low interest rates, and generally healthy corporate balance sheets. Together these factors added to optimism, and the markets rallied strongly. While the economy is clearly enjoying a vigorous near-term bounce, we believe consumers need to deleverage, and that the government's serious fiscal problems must also be addressed to remove long-term headwinds for economic growth. We are also concerned about pockets of excess industrial capacity in light of lower demand, and are cautious about growth rates and fundamentals when the inventory boost ends.

As long-term investors, we made few changes to the types of companies we own, except for selective repositioning for the "post-Lehman bankruptcy" environment. Turnover remains relatively low, and our adjustments have been thoughtful, careful and aligned with our longer-term strategy. We continue focusing on businesses whose growth, we believe, is less dependent on a vibrant global economy. In our opinion, most holdings either have recession-resistant businesses, or some strategic advantage that should allow them to gain market share to offset cyclical pressure presented by a weak economy.

We used last year's volatility to add to and introduce such names at attractive valuations. For example, while the newspaper business is weak, we own Washington Post Company for its high-growth Kaplan education business—Kaplan is enjoying extraordinary growth as American workers return to school to add credentials and improve their employment prospects.

Intuit, a top performer, is another example. Intuit provides individual and business productivity software and services including TurboTax, Quicken and QuickBooks. Through marketing initiatives, Intuit has grown its business and acquired new small- and medium-sized business customers during a period of economic weakness. For instance, the company has introduced a free version of the QuickBooks general ledger accounting system. This version demonstrates the software's value proposition—low cost and compelling benefits—and from there, Intuit can offer a full suite of paid services, such as payroll and payment systems, and web hosting.

We are currently limiting exposure to credit-sensitive Financials, as credit losses are rising, and the business models and earnings potential of the post-2008 world are still unclear. Within the Consumer Discretionary sector, we are avoiding retailers, expecting that consumer spending will be more measured. Finally, we are avoiding deep cyclicals; these include many Materials-related businesses and Industrial sector companies that depend on high capacity utilization rates for growth. All of these areas have enjoyed strong rallies off of the March lows.

Within a wildly divergent market—down following the Lehman bankruptcy then sharply higher—individual stock performance over this reporting period had more to do with the timing of specific purchases and sales. For instance, our top performer was IntercontinentalExchange, whose volume growth, we believe, should continue with increased regulation of securities markets. We added Praxair, a resilient, well-run business, during the valuation opportunity in 2008. Yahoo is in a turnaround, with a solid balance sheet, no debt, a low price-to-cash flow ratio and strong positioning for an ad-spending recovery, and Markel is one of the largest participants in the fragmented specialty insurance sector. We bought it at a meaningful discount, and believe it is positioned to grow. All of these holdings were new to the portfolio and were initially purchased prior to the rally from the March lows.

Among poor performers, we continue to own cable and component distributor Anixter. While disappointing for the August reporting period, it has been a strong performer in calendar year 2009. We eliminated Weingarten Realty Investors

and American Express last fall on concerns about credit markets. We sold Liberty Global but held Comcast, a resilient business that has enjoyed improved share price performance recently. We also sold Petroleo Brasiliero and added to our position in BG Group. While Petroleo Brasiliero needed additional leverage to finance growth, BG Group has an immaculate balance sheet, and has been an opportunistic buyer of energy properties.

True to our successful long-term strategy, we continue to manage the portfolio with a three- to five-year view, looking for businesses with advantaged growth. After performing better than the index during much of calendar year 2009, we lost ground in August as investors favored the "cyclical bounce" stocks we consider risky. We are encouraged by the prospects for our companies and think the portfolio is well positioned for growth within the more challenging environment we foresee. As always, we look forward to continuing to serve your investment needs.

Sincerely,

Arthur Moretti
Portfolio Manager

The risks involved in seeking capital appreciation from investments primarily in mid- to large-cap stocks are set forth in the prospectus and statement of additional information.

Mid-capitalization stocks are more vulnerable to financial risks and other risks than larger stocks. They are generally less liquid than larger stocks, so their market prices tend to be more volatile. Large-cap stocks are subject to all the risks of stock market investing, including the risk that they may lose value.

The composition, industries and holdings of the Fund are subject to change. Guardian Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Guardian Fund

TICKER SYMBOLS

Investor Class				NGUAX
Trust Class				NBGTX
Advisor Class				NBGUX
Institutional Class				NGDLX
Class A				NGDAX
Class C				NGDCX
Class R3				NGDRX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	16.6	%
Energy	12.9
Financials	14.1
Health Care	7.8
Industrials	18.8
Information Technology	23.9
Materials	3.2
Utilities	2.7
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,8,15

	Inception Date	1 Year			5 Years			10 Years			Life of Fund
At NAV
Investor Class	06/01/1950		(22.65	%)		1.74	%		1.28	%		10.81	%
Trust Class	08/03/1993		(22.74	%)		1.59	%		1.15	%		10.78	%
Advisor Class	09/03/1996		(23.05	%)		1.13	%		0.74	%		10.67	%
Institutional Class²²	05/27/2009		(22.58	%)		1.76	%		1.29	%		10.81	%
Class A²¹	05/27/2009		(22.61	%)		1.75	%		1.29	%		10.81	%
Class C²¹	05/27/2009		(22.83	%)		1.70	%		1.26	%		10.80	%
Class R3²¹	05/27/2009		(22.68	%)		1.74	%		1.28	%		10.80	%
With Sales Charge
Class A²¹			(27.06	%)		0.56	%		0.69	%		10.70	%
Class C²¹			(23.50	%)		1.70	%		1.26	%		10.80	%
Index
S&P 500 Index^2,19			(18.25	%)		0.49	%		(0.79	%)		10.75	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2019 for Advisor Class shares, through August 31, 2012 for Institutional Class shares and through August 31, 2013 for Class A, Class C and Class R3 shares. The net expense ratios were 1.51%, 0.76%, 1.11%, 1.86% and 1.36% for Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively. As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 0.90%, 1.07%, 3.44%, 0.78%, 1.21%, 1.96% and 1.41% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers or expense reimbursements).

Guardian Fund

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Investor Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart on previous page). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

International Fund Commentary

For the fiscal year ended August 31, 2009, Neuberger Berman International Fund underperformed its benchmark, the MSCI EAFE^® Index. While both the Fund and the index posted double-digit positive returns in calendar year 2009, returns for the full period were negative.

This was a tremendously difficult time for world's economies and equity markets, with steep declines in the EAFE Index from the beginning of the reporting period through early March 2009. Although markets rallied subsequently, the extremely bearish environment that endured through much of the period overwhelmed more recent improvements. For the full fiscal year, all sectors within the EAFE were down, with Consumer Staples performing best on a relative basis, and Materials declining most. Every country in the index declined except Spain, which was up less than 1%.

Because this report covers two distinctly different market environments—one in which defensive positioning was beneficial, and one in which cyclical companies outperformed—overall themes are not readily apparent. Taking the period as a whole, the market sectors that fared best included Consumer Staples, Telecommunications, Health Care and Consumer Discretionary. Materials, Information Technology, Financials, Utilities, Industrials and Energy were relatively weak. Throughout the period, our holdings reflected our commitment to our QuaRP (quality at a reasonable price) philosophy.

During the fiscal year, the Fund benefited on a relative basis from a lack of exposure to the weak Utilities sector, which, although usually defensive, underperformed. Given that we are QuaRP investors, Utilities companies rarely meet our requirements, tending to be lower growth, highly capital intensive, and highly regulated businesses. Stock selection within Telecommunications was also additive, and stock selection was beneficial within Materials as well. Initiated at a favorable time, our position in French chemical company Arkema was among the portfolio's top performers. However, Wacker Chemie, a German chemical company, lagged and was eliminated from the portfolio. While its solar business remains strong, Wacker's more cyclical chemical business has recently hampered company results. Finally, in a decidedly negative market, the Fund's somewhat higher-than-average level of cash and cash equivalents was another benefit.

In terms of detractors, the performance of some of the portfolio's Industrial holdings was disappointing. Vallourec, a French maker of seamless steel tubing and connectors used in deepwater drilling for natural gas, was our poorest performer. The stock was hurt by a soft U.S. gas market, and was sold. Health Care was another area of weakness. Within Energy, Addax Petroleum, a Canadian company with assets in West Africa and Kurdistan, was the Fund's top contributor. The company was taken over by Chinese energy company Sinopec during the period and was sold. Cameco, a Canadian uranium company, was also among our strongest performers. As governments worldwide look for ways to increase energy production with a lower carbon footprint, Cameco has benefited. However, Fund holdings underperformed the benchmark sector component, with disappointments including Paladin, a smaller-cap, lower-production Australian uranium company which has been eliminated from the portfolio. Canadian Natural Resources, a higher cost oil producer that was disproportionately impacted as commodity prices declined, also underperformed. We sold the stock early in the period. In Information Technology, an overweight and stock selection worked against us. While Canadian data specialist MacDonald Dettwiler was one of our best holdings, British electronics firm Laird PLC was one of the weakest and was sold. Our slight underweight and stock selection in Consumer Discretionary stocks were a headwind in this environment.

Within the troubled Financials sector, portfolio holdings had mixed results. On the positive side, Deutsche Boerse, operator of the Frankfurt stock exchange and an electronic and derivatives exchange, saw earnings exceed expectations, and performed very well. We believe the company should benefit further as new regulations move over-the-counter financial instruments to exchanges. Norwegian commercial bank DnB NOR returned to favor, as investors appeared to have considered its risks and opportunities more rationally. However, Swiss Re, an insurer of primary insurance companies, was sold from the portfolio after experiencing losses greater than we had anticipated. Piraeus, a Greek bank, declined on economic concerns and was eliminated from the portfolio. And French insurance company, Euler Hermes, was another significant disappointment that was sold. Overall, Fund holdings underperformed the benchmark in the sector.

Looking ahead, we continue to be fairly cautious on the global economy, expecting a protracted and muted recovery. While remaining somewhat defensive, we are adding cyclical names on a stock-by-stock basis where we find valuations compelling after lowered assumptions for revenue growth and margin expansion. In these markets, we continue to remain focused on our QuaRP discipline, seeking high quality, financially strong companies with good organic growth opportunities—an approach that we believe can deliver superior returns over the long run.

Sincerely,

Benjamin Segal
Portfolio Manager

The Fund is currently closed to new investors.

The risks involved in seeking capital appreciation from investments primarily in companies based outside the United States are set forth in the prospectus and statement of additional information.

The composition, industries and holdings of the Fund are subject to change. In an attempt to reduce overall volatility, International Fund diversifies the portfolio holdings over a wide array of countries and individual stocks.

International Fund

TICKER SYMBOLS

Investor Class				NBISX
Trust Class				NBITX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	8.9	%
Consumer Staples	14.0
Energy	9.4
Financials	18.3
Health Care	10.6
Industrials	13.9
Information Technology	7.7
Materials	9.3
Telecommunication Services	7.9
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,8,16

	Inception Date	1 Year			5 Years			10 Years			Life of Fund
Investor Class	06/15/1994		(20.42	%)		4.98	%		4.70	%		6.75	%
Trust Class⁵	06/29/1998		(20.48	%)		4.88	%		4.95	%		6.98	%
MSCI EAFE^® Index^2,19			(14.47	%)		6.32	%		2.68	%		4.85	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 1.28% and 1.38% for Investor Class and Trust Class shares, respectively.Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2012 for Investor Class shares and August 31, 2019 for Trust Class shares.

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Investor Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart above). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

International Institutional Fund Commentary

For the fiscal year ended August 31, 2009, Neuberger Berman International Institutional Fund underperformed its benchmark, the MSCI EAFE^® Index. While both the Fund and the index posted double-digit positive returns in calendar year 2009, returns for the full period were negative.

Sincerely,

Benjamin Segal
Portfolio Manager

The Fund is currently closed to new investors.

The risks involved in seeking capital appreciation from investments primarily in companies based outside the United States are set forth in the prospectus and statement of additional information.

The composition, industries and holdings of the Fund are subject to change. In an attempt to reduce overall volatility, International Institutional Fund diversifies the portfolio holdings over a wide array of countries and individual stocks.

International Institutional Fund

TICKER SYMBOLS

Institutional Class

NBIIX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	9.0	%
Consumer Staples	14.1
Energy	9.4
Financials	18.1
Health Care	10.6
Industrials	13.9
Information Technology	7.7
Materials	9.4
Telecommunication Services	7.8
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,8

	Inception Date		1 Year			Life of Fund
Institutional Class		06/17/2005		(19.92	%)		0.07	%
MSCI EAFE^® Index^2,19				(14.47	%)		3.60	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

As stated in the Fund's most recent prospectus, the total annual fund operating expense ratio for fiscal year 2008 was 1.13% for Institutional Class shares (prior to any fee waivers or expense reimbursements). The net expense ratio was 0.87%. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2019 for Institutional Class shares.

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Institutional Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart above). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

International Large Cap Fund Commentary

For the fiscal year ended August 31, 2009, Neuberger Berman International Large Cap Fund underperformed its benchmark, the MSCI EAFE^® Index. While both the portfolio and the index posted double-digit positive returns in calendar 2009, returns for the full reporting period were negative.

This was a tremendously difficult time for the world's economies and equity markets, with steep declines in the EAFE Index from the beginning of the reporting period through early March 2009. Although markets rallied subsequently, the extremely bearish first half overwhelmed more recent improvements. For the full fiscal year, all sectors within the EAFE were down, with Consumer Staples performing best on a relative basis, and Materials declining most. Every country in the index declined except Spain, which was up less than 1%.

Because this report covers two distinctly different market phases—one in which defensive positioning was beneficial, and one in which cyclical companies outperformed—overall themes are not readily apparent. Taking the period as a whole, the sectors that fared best included Consumer Staples, Telecommunications, Health Care and Consumer Discretionary stocks. Materials, Information Technology, Financials, Utilities, Industrials and Energy were weaker. Throughout the period, our holdings reflected our commitment to our QuaRP (quality at a reasonable price) philosophy.

During the fiscal year, the Fund benefited on a relative basis from Consumer Staples, with both an overweight and strong stock selection, including a gain by Hengan International, a Chinese disposable paper hygiene company which was sold during the period. Another positive was our lack of exposure to the Utilities sector, which, while typically defensive, underperformed during the period. Given that we are QuaRP investors, Utilities companies rarely meet our requirements, tending to be lower growth, highly capital intensive, and highly regulated businesses. Stock selection within Telecommunications was additive as well. Finally, in a decidedly negative market, a somewhat higher-than-average level of cash was another benefit.

The performance of some of the Fund's Industrials holdings was disappointing. Vallourec, a French maker of seamless steel tubing and connectors used in deepwater drilling for natural gas, was our poorest performer. The stock was hurt by a weak U.S. gas market, and was sold. Health Care was another negative, where although Novo Nordisk was a benefit, stock performance in the sector was weaker than expected. In Energy, though our holdings underperformed overall, stock selection was beneficial. Canadian firm Addax Petroleum was our top performer, benefiting from a takeover by Chinese energy company Sinopec during the period. Canadian Natural Resources, a higher cost oil producer that was disproportionately impacted as commodity prices declined, underperformed. We sold the stock early in the period. Australian firms Paladin, a uranium producer, and Woodside Petroleum also disappointed and were sold.

Within the troubled Financials sector, Fund holdings had mixed performance. On the positive side, Deutsche Boerse, operator of the Frankfurt stock exchange and an electronic and derivatives exchange, saw earnings exceed expectations, and performed very well. We believe the company should benefit further as new regulations move over-the-counter financial instruments to exchanges. Bank of China remained strong and UBS performed well (both were sold), and Norwegian commercial bank DnB NOR returned to favor. However, Swiss Re, an insurer of primary insurance companies, was sold after experiencing losses greater than we had anticipated. Piraeus, a Greek bank, declined on economic concerns and was eliminated from the portfolio. And French insurance company Euler Hermes was another significant disappointment that was sold. Overall, our holdings underperformed the benchmark sector component.

In Information Technology, an overweight and stock performance worked against the Fund, as did the performance of some Materials holdings. Three of the best portfolio performers are in the Materials sector—Sociedad Quimica y Minera de Chile, a leader in specialty plant nutrition, iodine and lithium, BHP Billiton, a Australian metals and mining firm, and Linde, a German industrial gas manufacturer. However, Wacker Chemie, a German chemical company we sold as its chemical business suffered, and Vale (also sold), a Brazilian metals and mining firm, both posted large declines.

compelling after lowered assumptions for revenue growth and margin expansion. In these markets, we continue to remain focused on our QuaRP discipline, seeking high quality, financially strong companies with good organic growth opportunities—an approach that we believe can deliver superior returns over the long run.

Sincerely,

Benjamin Segal
Portfolio Manager

The risks involved in seeking capital appreciation from investments primarily in companies based outside the United States and from investments in large-cap stocks are set forth in the prospectus and statement of additional information.

Investing in the stocks of even the largest companies involves all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.

The composition, industries and holdings of the Fund are subject to change. In an attempt to reduce overall volatility, International Large Cap Fund diversifies the portfolio holdings over a wide array of countries and individual stocks.

International Large Cap Fund

TICKER SYMBOLS

Trust Class				NILTX
Institutional Class				NILIX
Class A				NBNAX
Class C				NBNCX
Class R3				NBNRX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	10.3	%
Consumer Staples	11.3
Energy	9.2
Financials	21.5
Health Care	11.3
Industrials	10.7
Information Technology	6.8
Materials	10.1
Telecommunication Services	8.8
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,8

	Inception Date	1 Year			Life of Fund
At NAV
Trust Class	08/01/2006		(18.84	%)		(4.47	%)
Institutional Class⁷	10/06/2006		(18.57	%)		(4.16	%)
Class A¹⁸	12/20/2007		(18.83	%)		(4.47	%)
Class C¹⁸	12/20/2007		(19.34	%)		(4.84	%)
Class R3¹⁸	05/27/2009		(18.92	%)		(4.50	%)
With Sales Charge
Class A¹⁸			(23.52	%)		(6.28	%)
Class C¹⁸			(20.12	%)		(4.84	%)
Index
MSCI EAFE^® Index^2,19			(14.47	%)		(3.30	%)

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2012 for Trust Class, Institutional Class, Class A and Class C shares and through August 31, 2013 for Class R3 shares. The net expense ratios were 1.30%, 0.95%, 1.37%, 2.07% and 1.53% for Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively. As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 1.39%, 1.00%, 1.72%, 4.12% and 2.00% for Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers or expense reimbursements).

International Large Cap Fund

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Trust Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart on previous page). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Large Cap Disciplined Growth Fund Commentary

For the fiscal year ended August 31, 2009, Neuberger Berman Large Cap Disciplined Growth Fund underperformed its benchmark, the Russell 1000^® Growth Index. During an extremely difficult year for equity investors, returns for both the Fund and the index were negative.

Fifteen days into this reporting period, Lehman Brothers declared bankruptcy. While the economy was already in a downturn cycle, this triggered a tailspin as credit evaporated. The fourth quarter of calendar year 2008 saw a tremendous drop in retail activity, and signs of improvement would not be apparent until late in the first quarter of calendar year 2009, as the first of various economic stimulus programs began to have an influence.

By March, we saw two catalysts for improvement. First, Citigroup announced strong earnings and the apparent likelihood that they could earn their way through their capital issues had widespread implications. At the same time, analysts began to understand the impact that a stimulus package by the Chinese government—a very targeted package focused on infrastructure spending—could have on various economic sectors.

Since March, the market has rallied in fits and starts, with early leadership coming from lower quality names—those with weaker balance sheets, smaller market caps, low liquidity and share price, and higher economic sensitivity. From April through August, the rally became more broadly based.

During this fiscal year, stock selection within areas including Industrials, Health Care, Information Technology and Financials hurt the portfolio versus the index, since our high quality bias kept us out of the stocks that performed best. For example, within Financials, the Fund owned quality holdings such as JP Morgan Chase and Goldman Sachs, and both stocks performed well. They did not, however, see the bounce that weaker players we avoided—like Citigroup and AIG—enjoyed. Being underweighted in Information Technology as it rebounded also limited relative performance.

Decisions that benefited the portfolio on a relative basis included excellent stock selection within Consumer Discretionary stocks. However, our underweight in the sector offset some of the benefit. Very strong stock selection in Materials, Telecommunications and Utilities also helped.

One of the top holdings in the portfolio for the year was Apple. Strong results from the iPhone within a difficult environment surprised the marketplace when expectations were relatively low. We felt more positive and, in fact, Apple has sold 30 million units to date. Apple has also begun to profit from iPhone applications, continues to release newer generations of other high-demand devices, and has expanded globally, most notably in China and Israel.

With demand for copper increasing tremendously as a result of the Chinese stimulus package, Freeport-McMoRan Copper & Gold was another strong performer. The firm benefited from Chinese infrastructure projects like railroads, bridges, airports, and power generation and transmission. Located in Asia, Freeport's biggest mine is well positioned to serve China.

Amazon was another huge contributor. Amazon revamped its distribution network prior to the economic downturn, which reduced delivery costs, and in turn improved price competitiveness on both goods and shipping. Amazon also gained significant share from eBay, which was having operating difficulties, especially in sales of new items.

Disappointments included Lockheed Martin, which we sold after the close of the fiscal year. Lockheed was a defensive holding in calendar year 2008, but in calendar year 2009, a change in administration caused budget and defense spending questions to loom, and later in the year, the market rotated into more volatile, economically sensitive stocks.

Research in Motion (RIMM) was another disappointment. We bought RIMM in calendar year 2008 believing the firm would gain new consumer share alongside its business and enterprise domination. With the collapse of U.S. consumer demand, it became obvious that this thesis was not going to play out, and we eliminated the stock from the portfolio.

We also sold Schlumberger, another negative performer for the portfolio. New oil production often comes from costly, technologically complicated procedures, such as underwater, shale or horizontal drilling. This is Schlumberger's specialty.

However, as the price of crude declined dramatically, such projects were the first to be shuttered, and Schlumberger traded down in sympathy.

Within the past six months, we shifted from a very defensive posture to a much more economically sensitive stance, decreasing Health Care, Consumer Staples, Utilities and Telecom in favor of Materials, Industrials, Financials and Technology. We think the work required to close the huge gap between low inventories and increasing demand will continue to benefit these types of firms, as well as to potentially re-start a "virtuous" cycle—in which demand drives manufacturing and employment increases, which promotes confidence and spending, and eventually, economic improvement. We are focused on companies that have cut expenses and beaten earnings estimates. If revenues increase for lean companies like these, we believe it should impact the bottom line quickly. Within this outlook, while we are conservatively positioned for recovery, we have room to become more aggressive if our thesis becomes evident even faster.

Sincerely,

Daniel D. Rosenblatt, John J. Barker, Daniel J. Fletcher and Lawrence K. Fisher
Portfolio Co-Managers

The risks involved in seeking capital appreciation from investments primarily in companies with large capitalizations are set forth in the prospectus and statement of additional information.

Investing in the stocks of even the largest companies involves all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.

The composition, industries and holdings of the Fund are subject to change. Large Cap Disciplined Growth Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Large Cap Disciplined Growth Fund

TICKER SYMBOLS

Investor Class				NBCIX
Institutional Class				NLDLX
Class A				NLDAX
Class C				NLDCX
Class R3				NLDRX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	9.1	%
Consumer Staples	11.5
Energy	8.0
Financials	5.4
Health Care	12.1
Industrials	10.1
Information Technology	35.3
Materials	7.3
Telecommunication Services	1.2
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,14

	Inception Date	1 Year			5 Years			Life of Fund
At NAV
Investor Class	12/06/1999		(18.27	%)		1.76	%		(5.03	%)
Institutional Class²⁰	04/06/2009		(18.13	%)		1.80	%		(5.02	%)
Class A²⁰	04/06/2009		(18.27	%)		1.76	%		(5.03	%)
Class C²⁰	04/06/2009		(18.54	%)		1.70	%		(5.06	%)
Class R3²⁰	05/27/2009		(18.25	%)		1.77	%		(5.03	%)
With Sales Charge
Class A²⁰			(22.97	%)		0.56	%		(5.61	%)
Class C²⁰			(19.35	%)		1.70	%		(5.06	%)
Index
Russell 1000^® Growth Index^2,19			(16.76	%)		1.21	%		(4.68	%)

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2019 for Investor Class and through August 31, 2013 for Institutional Class, Class A and Class C and Class R3 shares. The net expense ratios were 1.52%, 0.76%, 1.12%, 1.87% and 1.37% for Investor Class, Institutional Class, Class A and Class C and Class R3 shares, respectively. As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 2.55%, 2.80%, 1.90%, 2.75% and 1.78% for Investor Class, Institutional Class, Class A and Class C and Class R3 shares, respectively (prior to any fee waivers or expense reimbursements).

Large Cap Disciplined Growth Fund

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Investor Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart on previous page). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Mid Cap Growth Fund Commentary

For the fiscal year ended August 31, 2009—a turbulent period for equities—both Neuberger Berman Mid Cap Growth Fund and its benchmark, the Russell Midcap^® Growth Index, posted negative returns. Fund performance trailed that of the index.

All sectors of the index finished the fiscal year in double-digit negative territory. Within the benchmark, Telecommunications was the weakest sector, off by nearly 40%. Energy was next, down roughly 37%. Consumer Discretionary stocks performed best, declining approximately 10%. The large Information Technology (IT) sector was whipsawed over the year, initially showing extreme weakness, but turning in middling results overall due to strong performance in recent months.

Early in the fiscal year, more defensive, lower growth stocks outperformed on a relative basis while the markets were declining dramatically. After the March low, nearly the opposite was true—with lower quality (e.g., little or no earnings, low return on equity), smallest and least expensive stocks in the lead. This shift is not surprising to us—in markets following a period of sustained weakness, such as in 2003, lower quality stocks have often led early on. The Fund trailed the benchmark during the market recovery, given that such stocks do not meet our fundamental requirements. We believe the "junk rally" may be waning now, however, and that the Fund can benefit when the market pauses to weigh price appreciation against the underlying fundamental value of securities.

Within the Fund, Energy holdings outperformed in the difficult Energy sector due to excellent security selection. An overweight position (versus the benchmark) in oil and gas firm Concho Resources was a benefit, as were Range Resources and Noble. The Fund remains overweighted in the weak Telecommunications sector, where we enjoyed good stock selection. Millicom International, an emerging markets prepaid cellular company, and SBA Communications, a tower company, were beneficial. NII Holdings was sold on earnings disappointments, as its Latin American business declined. In Materials, Freeport-McMoRan Copper & Gold, the large copper supplier, was among our best performers. The company benefited from rising prices and increasing demand, especially in China.

Areas that were most detrimental to relative Fund performance this fiscal year were IT and Health Care. In IT, Fund holdings did not keep pace with rebounding lower quality stocks. Silicon Laboratories and Marvell Technology Group were among our top performers but our higher quality semiconductor and equipment holdings underperformed. Software holdings also lagged, with Trimble Navigation and Activision Blizzard disappointing. VistaPrint, a lower cost business stationery provider, was a bright spot, particularly in the latter half of the period.

In Health Care, the Fund's services and equipment holdings disappointed. Services companies, which we have reduced as a proportion of the portfolio, were held back by "political" risk—the unknowns surrounding health care reform—and equipment firms underperformed on lower hospital spending. We sold disappointments including Intuitive Surgical, Psychiatric Solutions, Perrigo and Myriad Genetics. Our biotech holdings were stronger, as this area proved to be more resilient in the face of political risk.

Consumer Discretionary holdings were slightly negative on a relative basis. In retrospect, we held our education theme too long after last year's strong performance. We have since consolidated the overall position and are less defensive in the sector, reflected in our building a longer-term position in retail, including positive contributors Ross Stores and Nordstrom. Gaming companies WMS and Penn National were also very strong.

The Fund underperformed in Financials. We think the sector remains somewhat risky, so the Fund remains slightly underweighted relative to the index. We continue to favor asset management firms, and capital-sensitive names. In Industrials, our prison outsourcing theme is on hold, as states are unable to outsource prison services in light of worsening deficits. Corrections Corp. of America declined, and was sold. We continue to emphasize higher quality, good earnings visibility Industrials, such as Precision Castparts, Stericycle and Jacobs Engineering.

Looking ahead, while not expecting a rapid recovery, we are becoming more constructive on the market and find mid-cap valuations very attractive. As the market begins to price in 2010 results, we expect to add to areas including Health Care (pending reform details), Consumer Discretionary and IT. Across sectors, the companies that meet our fundamental criteria generally have strong balance sheets, good cash flow characteristics and low leverage, which should benefit them on a competitive basis as we move through this economic downturn and what we consider a transitional market.

As experienced at inflection points in the past, we believe the recent strong performance of lower-quality stocks is not sustainable. Instead, we continue to believe that, longer term, fundamental stock selection is the key to performance, and that, over time, the market will reward companies that possess the strong fundamentals and quality growth characteristics that we seek.

Sincerely,

Kenneth J. Turek
Portfolio Manager

The risks involved in seeking capital appreciation from investments primarily in companies with mid-market capitalization are set forth in the prospectus and statement of additional information.

Mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.

The composition, industries and holdings of the Fund are subject to change. Mid Cap Growth Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Mid Cap Growth Fund

TICKER SYMBOLS

Investor Class				NMANX
Trust Class				NBMTX
Advisor Class				NBMBX
Institutional Class				NBMLX
Class A				NMGAX
Class C				NMGCX
Class R3				NMGRX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	20.9	%
Consumer Staples	5.2
Energy	7.5
Financials	8.1
Health Care	12.0
Industrials	15.4
Information Technology	23.0
Materials	3.8
Telecommunication Services	4.1
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,8,11

	Inception Date	1 Year			5 Years			10 Years			Life of Fund
At NAV
Investor Class	03/01/1979⁴		(22.04	%)		4.86	%		0.37	%		11.14	%
Trust Class	08/30/1993		(22.21	%)		4.58	%		0.22	%		11.05	%
Advisor Class	09/03/1996		(22.36	%)		4.35	%		(0.17	%)		10.88	%
Institutional Class ⁷	04/19/2007		(21.63	%)		5.06	%		0.46	%		11.17	%
Class A²¹	05/27/2009		(22.07	%)		4.85	%		0.37	%		11.14	%
Class C²¹	05/27/2009		(22.19	%)		4.82	%		0.35	%		11.13	%
Class R3²¹	05/27/2009		(22.12	%)		4.84	%		0.36	%		11.14	%
With Sales Charge
Class A²¹			(26.55	%)		3.62	%		(0.23	%)		10.92	%
Class C²¹			(22.97	%)		4.82	%		0.35	%		11.13	%
Index
Russell Midcap^® Growth Index^2,19			(20.21	%)		3.35	%		1.52	%		N/A
Russell Midcap^® Index^2,19			(19.92	%)		3.40	%		5.09	%		12.90	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2019 for Advisor Class shares, through August 31, 2012 for Institutional Class shares and through August 31, 2013 for Class A, Class C and Class R3 shares. The net expense ratios were 1.52%, 0.77%, 1.12%, 1.87% and 1.37% for Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively. As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 1.03%, 1.27%, 2.40%, 0.80%, 1.27%, 2.02% and 1.52% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers or expense reimbursements).

Mid Cap Growth Fund

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Investor Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart on previous page). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Partners Fund Commentary

Despite the strong performance of stocks following the early March market lows, all 10 sectors in the Russell 1000^® Value Index and the S&P 500 Index posted declines in the fiscal year ended August 31, 2009. Neuberger Berman Partners Fund regained lost ground and materially outperformed these benchmarks in the second half of the period. However, due to the severity of its first-half market decline, the Fund posted a negative return and trailed the Russell 1000 Value Index and S&P 500 Index for the full fiscal year.

The Fund's cyclical bias, which penalized performance relative to the Russell benchmark as the market plunged during the first half of the reporting period, benefited relative performance in the second half as stocks in many economically sensitive sectors led the market rebound.

Investments in the Health Care sector had the most negative impact on relative performance this fiscal year. The portfolio was underweighted in Health Care, the Russell benchmark's second best performing sector, but due in part to the disappointing performance of HMOs such as Aetna (affected by concern regarding health care reform), our holdings lagged the Russell benchmark sector component. Utilities sector investors penalized relative returns, primarily due to the disappointing performance of merchant power producers such as NRG, which suffered from depressed demand and power prices, as well as a leveraged balance sheet. An underweight in Consumer Staples, the Russell's best performing sector, and a sizable decline in beverage distributor Constellation Brands (which was sold) were a drag on relative returns.

Although recording a negative return, Financials sector investments had the most favorable impact on relative performance. The portfolio was underweighted in Financials, the Russell's second worst performing sector, and the strong second half gains recorded by JP Morgan Chase, Wells Fargo, and State Street helped our holdings outperform by a substantial margin. Collectively, Information Technology sector holdings posted a modest decline compared to a double-digit percentage loss for the benchmark sector component. Gains in banking back-office software company Fidelity National Information Services and mortgage processing and settlement services provider Lender Processing Services buoyed returns. The strong performance of motorcycle manufacturer Harley-Davidson helped the Fund's Consumer Discretionary holdings post favorable relative returns.

We (along with most everyone in the money management business) did not anticipate that issues in the U.S. residential mortgage market would result in a near collapse of the U.S. and global financial system, systemic risk aversion, and subsequently, a sharp and swift exodus from equities. However, what we consider the largely indiscriminate sell-off in stocks made valuations of many excellent companies even more compelling. We took the opportunity to upgrade the quality of the portfolio by adding to positions in what we view as "best of breed" companies and reducing or eliminating positions in companies that we did not think were as financially strong or as well positioned in their businesses. We believed that once investors began looking past the recession, the highest quality companies in their respective businesses would excel. We took particular advantage of evolving opportunities in the beaten down Financials sector, where we believed investors had failed to adequately acknowledge improving outlooks. As evidenced by the Fund's outperformance versus the benchmark in the second half of the fiscal year, these strategies appear to be working.

Looking ahead, the economic outlook remains cloudy, with some economists forecasting a slow U-shaped recovery and others expecting a more rapid V-shaped rebound. Regardless of which of these scenarios unfolds, our focus remains on identifying companies that are selling at a significant discount to normalized earnings power. We believe that when the economy does fully regain its footing, these stocks are likely to excel.

In closing, in recent years, investor patience and courage have been tested by one of the most severe bear markets in history. We believe the worst is over and are pleased with the Partners Fund's strong absolute and relative performance in the second half of fiscal 2009. We believe that the Partners Fund is well positioned to reward our shareholders over the next several years.

Sincerely,

S. Basu Mullick
Portfolio Manager

The risks involved in seeking capital appreciation from investments primarily in mid- to large-cap stocks are set forth in the prospectus and statement of additional information.

The composition, industries and holdings of the Fund are subject to change. Partners Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Partners Fund

TICKER SYMBOLS

Investor Class				NPRTX
Trust Class				NBPTX
Advisor Class				NBPBX
Institutional Class				NBPIX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	9.7	%
Consumer Staples	7.1
Energy	16.4
Financials	23.8
Health Care	8.3
Industrials	14.5
Information Technology	9.8
Materials	7.3
Telecommunication Services	1.4
Utilities	1.7
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,8

	Inception Date	1 Year			5 Years			10 Years			Life of Fund
Investor Class	01/20/1975⁴		(23.27	%)		3.23	%		2.07	%		12.91	%
Trust Class	08/30/1993		(23.38	%)		3.04	%		1.91	%		12.85	%
Advisor Class	08/16/1996		(23.47	%)		2.88	%		1.68	%		12.73	%
Institutional Class⁷	06/07/2006		(23.10	%)		3.34	%		2.13	%		12.93	%
Russell 1000^® Value Index^2,19			(20.27	%)		0.45	%		1.84	%		N/A
S&P 500 Index^2,19			(18.25	%)		0.49	%		(0.79	%)		11.45	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 0.81%, 1.00%, 1.15% and 0.66% for Investor Class, Trust Class, Advisor Class and Institutional Class shares, respectively.

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Investor Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart above). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Real Estate Fund Commentary

The real estate investment trust (REIT) market was extremely volatile during the 12 months ended August 31, 2009, falling sharply in the first half of the period and then rallying during the second half. Neuberger Berman Real Estate Fund suffered a steep decline but significantly outperformed its benchmark, the FTSE NAREIT Equity REITs Index.

Looking back, the REIT index fell 60% in the first six months of the fiscal year. The severe credit crunch, a weakening global economy, turmoil in the financial markets and extreme risk aversion conspired to drag down the equity market, and REITs were hit particularly hard. REITs typically use leverage to fund their operation and the largely frozen credit and capital markets led to fears of markedly higher bankruptcies in the sector.

The same factors that caused REITs to perform poorly during the first half of the reporting period were instrumental in their subsequent rally. During the second half, massive government intervention improved credit conditions and helped to restore order to the financial markets. There were also signs that the economy was bottoming and that investor risk aversion was abating. In addition, various REITs proved successful in accessing the capital markets, as they raised more than $16 billion in equity capital during the first eight months of calendar year 2009 alone. In addition, with improving credit markets, REITs were able to better access the unsecured bond market. This lifted the dark cloud that had hung over the REIT market, helping the benchmark index gain 68% during the final six months of the reporting period.

Over the course of the fiscal year, we made various adjustments to the portfolio that contributed to outperformance. At the start of the period, the Fund was defensively positioned, given signs that the economy might experience a more severe recession than had previously been expected. In particular, we emphasized REIT sectors such as Heath Care, Self Storage and Specialty REITs (including data storage center and timber REITs), that historically have held up relatively well during economic contractions. We also favored those less defensive REITs with relatively strong balance sheets. This positioning was rewarded during the first half of the fiscal year.

Toward the end of calendar year 2008, we began to opportunistically adjust the portfolio to be somewhat less defensive. This shift was driven by less dire economic news and in anticipation of improving conditions in the REIT market. As time passed, we reduced some of our defensive sector overweights, turning our attention to the roughly 50 REITs that had successfully issued equity capital. Using our extensive research capabilities, we selectively purchased REITs that had been severely punished by investors during the first half of the fiscal year and whose balance sheets had improved through the infusion of new capital. We also identified several REITs that previously had relatively solid balance sheets, believing that, with new capital in their coffers, they now had the potential to acquire assets from weaker, overleveraged counterparts. Overall, these adjustments were rewarded during the second half of the fiscal year.

On the downside, in addition to the negative impact of the overall decline of the REIT market, several of our strategies detracted from Fund performance during the fiscal year. For example, reducing our overweight in the defensive Health Care sector at the end of calendar year 2008 proved to be premature, as REIT prices fell sharply in January and February of 2009. In addition, the Fund's modest cash position was a drag on performance when the REIT market rallied during the second half of the period.

Looking ahead, we remain positive on the long-term prospects for REITs. We believe their ability to, once again, access capital has removed a major roadblock for the sector. In addition, while challenges remain, it appears to us that the overall economy may have bottomed. A return to positive economic growth would be favorable for commercial real estate occupancy and rental rates.

In conclusion, we would like to address the outlook for REIT dividends. During the credit crisis, REIT dividends were often affected by the sale of stock. We believe this cycle has largely ended and we expect to see a return to more stable income levels for REITs going forward, with a shift back to all-cash dividends. Additionally, we believe there is the potential for rising dividend levels down the road should we see further improvements on the economic front.

Sincerely,

Steve S. Shigekawa and Brian Jones
Portfolio Co-Managers

The risks involved in seeking capital appreciation and income from investments primarily in companies with small- and mid-market capitalization are set forth in the prospectus and statement of additional information.

The portfolio's concentration in real estate investments makes it subject to greater potential risks and volatility than a more diversified portfolio, and the value of its shares may decline due to events affecting the real estate industry.

The composition, industries and holdings of the Fund are subject to change. Real Estate Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Real Estate Fund

TICKER SYMBOLS

Trust Class				NBRFX
Institutional Class				NBRIX

SECTOR ALLOCATION

(% of Equity Market Value)
Office	15.8	%
Apartments	14.0
Health Care	12.5
Regional Malls	10.3
Shopping Centers	10.2
Specialty	10.0
Self Storage	7.2
Industrial	6.0
Lodging/Resorts	5.4
Diversified	3.9
Mixed	2.8
Mortgage Home Financing	1.9
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,8

	Inception Date	1 Year			5 Years			Life of Fund
Trust Class	05/01/2002		(23.69	%)		3.27	%		8.74	%
Institutional Class⁷	06/04/2008		(23.46	%)		3.35	%		8.80	%
FTSE NAREIT Equity REITs Index^2,19			(32.83	%)		0.14	%		5.68	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

As stated in the Fund's most recent prospectus, the total annual fund operating expense ratio for fiscal year 2008 were 1.86% and 1.79% for Trust Class and Institutional Class shares, respectively (prior to any fee waivers or expense reimbursements). The net expense ratios were 1.51% and 0.88% for Trust Class and Institutional Class shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2019 for Trust Class and Institutional Class shares.

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Trust Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart above). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Regency Fund Commentary

The stock market's strong performance coming off early-March lows was not enough to compensate for its steep decline in the first half of the fiscal year ended August 31, 2009. For the full 12-month period, all 10 sectors in the Russell Midcap^® Value Index were in negative territory, with four of 10 dropping by 20% or more. Although Neuberger Berman Regency Fund posted strongly positive returns and materially outperformed its benchmark in the second half, it had a negative return and trailed its benchmark for the fiscal year overall.

Our bias toward leading companies in more economically sensitive sectors, which penalized relative performance in the first half, enhanced relative returns in the second half of the reporting period as data, indicating that the global economy was stabilizing, prompted investors to move into the shares of quality cyclical companies.

During the reporting period, Industrial sector investments had the most negative effect on performance relative to the Russell benchmark. The portfolio was overweighted in Industrials, the index's second worst performing sector, and the disappointing performance of holdings such as Eagle Bulk Shipping (which was sold) and heavy equipment manufacturer Terex weighed on returns. Health Care investments lagged the benchmark sector component by a wide margin, primarily due to the poor performance of HMOs such as Aetna, CIGNA, and Conventry, which declined in response to uncertainty caused by potential changes in the health care system. Due in part to a big decline in merchant power producer Dynegy, which suffered from excess leverage and reduced industrial demand for power (and was sold), our Utilities holdings also underperformed.

Our investments in the hard-hit Financials sector held up relatively well, posting a negative return but materially outperforming the benchmark sector component. Gains in real estate investment trusts Macerich Company and Annaly Capital Management, and regional bank First Horizon National contributed substantially to performance. Although posting a significant decline, Energy sector holdings, primarily oil-oriented exploration and production companies, held up relatively well compared to the poorly performing benchmark sector overall. Helped by a big gain in Cablevision Systems, Consumer Discretionary sector investments also enhanced relative returns.

Last year's largely indiscriminate stock market plunge allowed us to further improve the quality of the portfolio by adding to positions in what we believed were the financially strongest and best positioned companies in their respective businesses and by reducing or eliminating positions in companies whose long-term prospects we believed were not quite as bright. We believed that the severely beaten down but still "best of breed" companies would excel once the market began anticipating an economic recovery. In addition, we began increasing our allocation to Financials, most notably well-capitalized regional banks, where we saw incredible bargains based on longer-term earnings power. As evidenced by the Fund's favorable relative performance in the second half of 2009, these strategies appear to be paying off.

Looking ahead, the economic outlook remains somewhat murky, with some forecasters expecting a more gradual U-shaped recovery and others anticipating a rapid V-shaped rebound. We can't be sure which of these economic scenarios will unfold. We do note that the economy appears to have improved considerably in the second quarter of calendar year 2009 and we believe we could see better-than-generally-expected GDP growth in the third quarter. Regardless of how long it takes the economy to fully regain its footing, however, our focus remains on identifying companies that are selling at a significant discount to normalized earnings power. We believe that, when the economy is solidly back on a growth path, these stocks will excel.

In closing, in recent years, investors have suffered through one of the most severe bear markets in history. Their patience and fortitude have been sorely tested. We believe the worst is over and are beginning to see some light at the end of the tunnel. We are pleased with the Regency Fund's strong absolute and relative performance in the second half of the fiscal year and believe we are well positioned to serve our shareholders in the years to come.

Sincerely,

S. Basu Mullick
Portfolio Manager

The risks involved in seeking capital appreciation from investments primarily in mid-cap stocks are set forth in the prospectus and statement of additional information.

The composition, industries and holdings of the Fund are subject to change. Regency Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Regency Fund

TICKER SYMBOLS

Investor Class				NBRVX
Trust Class				NBREX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	13.9	%
Consumer Staples	7.6
Energy	11.9
Financials	25.3
Health Care	8.7
Industrials	11.8
Information Technology	6.9
Materials	5.5
Utilities	8.4
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,8

	Inception Date	1 Year			5 Years			10 Years			Life of Fund
Investor Class	06/01/1999		(21.04	%)		1.55	%		6.79	%		6.43	%
Trust Class⁵	06/10/1999		(20.96	%)		1.45	%		6.73	%		6.38	%
Russell Midcap^® Value Index^2,19			(20.00	%)		3.00	%		6.29	%		5.62	%
Russell Midcap^® Index^2,19			(19.92	%)		3.40	%		5.09	%		4.76	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 1.13% and 1.38% for Investor Class and Trust Class shares, respectively (prior to any fee waivers or expense reimbursements). The net expense ratio was 1.26% for Trust Class shares. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2019 for Trust Class shares.

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Investor Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart above). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Select Equities Fund Commentary

For the fiscal year ended August 31, 2009, Neuberger Berman Select Equities Fund materially outperformed its benchmark, the S&P 500 Index. During a period of extreme distress and volatility for the equity markets, absolute returns for both the Fund and the index were negative.

As the fiscal year began, we had significant concerns about the condition of the economy and prospects for the markets. As a result, our portfolio was positioned in what we thought was a conservative fashion, with an historically high cash balance and overweightings in traditionally defensive areas such as Utilities. During the 12-month period, our worst fears were borne out—the economy suffered dramatically due to such factors as soft consumer spending, the weak housing market and rising unemployment. The credit crisis locked consumers and businesses out of financing options, and then, following the bankruptcy of Lehman Brothers on September 15, 2008, significant financial turmoil began in earnest. Given this extraordinary confluence of events, our main goal during the period was to preserve capital.

Positioning that started out as conservative and evolved to become extremely conservative was a significant benefit, with the most notable contributor to the Fund's relative outperformance this period being a large cash and cash equivalent position from September 2008 through February 2009. As noted above, the portfolio had been holding cash going into this period (about 20%), and as the dramatic downturn in the financial markets began to unfold, we raised and held very large amounts of cash. By October 2008, in fact, our cash position averaged roughly 60%, the highest it has ever been.

Stock selection and positioning helped as well. While every sector within the S&P 500 was down for the reporting period, some fared worse than others. The portfolio benefited on a relative basis from having underweighted (relative to the benchmark) some of the sectors that were weakest—especially in the fall—such as Financials and Industrials. In areas such as these, the portfolio's commitments (if any) declined far less than those of the market. In addition to cash, Health Care investments, such as Alcon, were beneficial on an absolute basis. Although the portfolio was underweighted versus the index in Health Care, with strong stock selection, our holdings closed the period up 15%, well ahead of the Health Care segment of the index, which was down 11%.

Timing of purchases and sales was another strength for the Select Equities Fund during this fiscal year—a period that contained both an extreme downturn and a subsequent rally from early March through August. From roughly September to the end of April, when the market was weakest, we created a "shopping list" of the companies we hoped to buy when we thought valuations and timing were right. By March, as we saw valuations come down to levels that were attractive to us from a risk perspective, and then signs from leading economic indicators that business was stabilizing and possibly improving, we became more positive on equities. During the spring, we were ready to reallocate to equities and were already focused on our targets.

Thus, we began building positions in a number of what we consider world-class companies, many of which exhibited the same characteristics as the few companies we kept throughout the fall—companies that we believed had the ability to grow organically regardless of the economic environment, with fortress-like balance sheets, that did not need access to the capital markets to grow their businesses. Our research led us to a number of the larger capitalized companies that have done very well for the portfolio this period, including Hewlett-Packard, BHP Billiton and Goldman Sachs.

The companies that had the most detrimental effect on performance over the period include some that we sold into the weak 2008 market as we were raising cash. We eliminated those holdings that we thought were least likely to weather the financial and economic crisis—either from a financing needs or business perspective. During the period, companies including Crown Castle and Brookfield Asset Management were sold from the portfolio at a loss to raise cash.

Looking ahead, we believe the financial crisis ended this past spring, but that the economy, while clearly improving, has a long way to go before full recovery. In our opinion, the economic recovery will unfold more slowly and less sharply than many prognosticators expect. With consumer spending likely to be weak for some time, and with banks now more

stringent in their consumer and business lending policies, we see far more moderate growth going forward. We are positioning the portfolio accordingly. We believe that if we are too conservative in our outlook, and the markets and economy are stronger than we anticipate, then the companies we are investing in will exceed our expectations.

We thank you for your support during what has been a most challenging period in the financial markets and world. We are excited about the year ahead.

Sincerely,

Gerald Kaminsky, Michael Kaminsky and Richard Werman
Portfolio Co-Managers

The risks involved in seeking capital appreciation from investments primarily in companies of large capitalization are set forth in the prospectus and statement of additional information.

Investing in the stocks of even the largest companies involves all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.

The composition, industries and holdings of the Fund are subject to change. Select Equities Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Select Equities Fund

TICKER SYMBOLS

Institutional Class				NBEIX
Class A				NBEAX
Class C				NBECX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Staples	10.3	%
Energy	15.3
Financials	17.5
Health Care	9.2
Industrials	11.5
Information Technology	15.8
Materials	9.0
Telecommunication Services	5.4
Utilities	6.0
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3

	Inception Date	1 Year			Life of Fund
At NAV
Institutional Class	12/20/2007		(12.03	%)		(11.69	%)
Class A	12/20/2007		(11.95	%)		(11.76	%)
Class C	12/20/2007		(12.58	%)		(12.47	%)
With Sales Charge
Class A			(17.01	%)		(14.78	%)
Class C			(13.45	%)		(12.47	%)
Index
S&P 500 Index^2,19			(18.25	%)		(16.72	%)

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 13.98%, 4.06% and 7.28% for Institutional Class, Class A and Class C shares, respectively (prior to any fee waivers or expense reimbursements). The net expense ratios were 0.85%, 1.33% and 2.07% for Institutional Class, Class A and Class C shares, respectively. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2012 for Class A, Class C and Institutional Class shares.

Select Equities Fund

COMPARISON OF A $10,000 INVESTMENT (WITH SALES CHARGE)

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Class A shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart on previous page). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Small and Mid Cap Growth Fund Commentary

For the fiscal year ended August 31, 2009—a turbulent period for equities—Neuberger Berman Small and Mid Cap Growth Fund and its benchmark, the Russell 2500^TM Growth Index, posted negative returns. Fund performance was behind that of the index.

Nearly every sector of the index finished this period in double-digit negative territory. Within the benchmark, Energy was the weakest sector, off by roughly 50%. Industrials were down more than 30%. Consumer Staples turned in the least negative results, declining approximately 10%. The largest index sectors—Information Technology and Health Care stocks—were whipsawed over the course of the fiscal year, initially performing very poorly but turning in middling results overall due to strong performance in the latter six months of the period.

Early in the fiscal year, more defensive and lower growth stocks outperformed on a relative basis while the markets were declining dramatically. After the March low, nearly the opposite was true—with lower quality (e.g., little or no earnings, low return on equity), smallest and least expensive stocks in the lead. This shift is not surprising—historically, in a transitional market following a period of sustained weakness, such as in 2003, lower quality stocks often have led early on. The Fund trailed the benchmark slightly through August, given that the low quality stocks leading the rally did not meet our quality growth and fundamental requirements. We believe the "junk rally" is waning now, however, and that the Fund can benefit when the market pauses to weigh price appreciation against the underlying fundamental value of securities.

Within the Fund, holdings in the difficult Energy sector markedly outperformed benchmark counterparts due to excellent security selection. An overweight position (versus the index) in Concho Resources, a high quality oil and gas company with good earnings visibility, was a benefit, as was Southwestern Energy.

Industrials holdings were also positive for the Fund versus the benchmark. Stocks that contributed to relative outperformance included shipping and logistics firms Old Dominion Freight and C.H. Robinson Worldwide, and Allegiant Travel, a low cost air-travel firm that has been gaining share in smaller travel markets.

The Fund slightly underperformed the index in Consumer Discretionary stocks, although stock selection within the sector was strong. After benefiting from our defensive secondary education theme in calendar year 2008, and to a lesser extent so far in calendar year 2009, we reduced the theme somewhat in favor of less defensive gaming and leisure firms. Ameristar Casinos, restaurant operator Brinker International and luxury hotel chain Orient Express were among our top performers for the period. Specialty retailer Bed Bath and Beyond was another strong performer within the sector.

The areas that were most detrimental to the Fund for the fiscal year were Information Technology (IT) and Health Care. In the key IT sector, Fund holdings did not keep pace with rebounding lower quality stocks. While the Fund outperformed the benchmark in the semiconductor and equipment area, with companies including Silicon Laboratories, Varian, Marvell and NetLogic among the top performers, the Fund strongly underperformed in Software. Trimble Navigation, a high quality software company, is a good example. Activision was among our weakest performers, and Advent also underperformed.

In Health Care, the Fund was underweighted relative to the benchmark and underperformed, as our services and equipment companies disappointed. Services companies were held back by "political" risk—the unknowns surrounding health care reform—and equipment firms lagged as hospitals reduced capital expenditures. Performance within Health Care was hampered by companies such as Intuitive Surgical and Illumina, both of which were sold.

Within Consumer Staples, we sold the Fund's weakest performer for the period, Central European Distribution. The liquor company's stock suffered due to changes in exchange rates and exposure to weakened emerging markets such as Russia and Poland.

We are approaching the coming year with positioning that is for the most part sector-neutral. The Fund is slightly overweighted in the Energy, Consumer Discretionary and Telecommunications sectors, and significantly underweighted in Health Care, but roughly market-weighted in Financials, Industrials, Technology, Materials and Consumer Staples.

As always, the companies that meet our fundamental criteria generally have strong balance sheets, good cash flow characteristics and low leverage, which should benefit them on a competitive basis as we move through this economic downturn and what we believe is a transitional market. Despite the strong performance of lower quality stocks, we continue to believe that, longer term, fundamental stock selection is the key to long-term performance, and that, over time, the market will reward companies that possess the strong fundamentals and quality growth characteristics that we seek.

Sincerely,

David H. Burshtan, Kenneth J. Turek and Kristina Kalebcih
Portfolio Co-Managers

The risks involved in seeking capital appreciation from investments primarily in companies with small- to mid-cap capitalization are set forth in the prospectus and statement of additional information.

The composition, industries and holdings of the Fund are subject to change. Small and Mid Cap Growth Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Small and Mid Cap Growth Fund

TICKER SYMBOL

Trust Class

NBATX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	19.5	%
Consumer Staples	5.2
Energy	7.0
Financials	9.1
Health Care	11.0
Industrials	17.5
Information Technology	26.6
Materials	1.8
Telecommunication Services	2.3
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,10,13

	Inception Date		1 Year			Life of Fund
Trust Class		09/05/2006		(23.21	%)		(4.37	%)
Russell 2500^TM Growth Index^2,19				(21.08	%)		(4.05	%)

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

As stated in the Fund's most recent prospectus, the total annual fund operating expense ratio for fiscal year 2008 was 2.96% for Trust Class shares (prior to any fee waivers or expense reimbursements). The net expense ratio was 1.13%. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2012 for Trust Class shares.

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Trust Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart above). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Small Cap Growth Fund Commentary

For the fiscal year ended August 31, 2009—a turbulent period for equities—both Neuberger Berman Small Cap Growth Fund and its benchmark, the Russell 2000^® Growth Index, posted negative returns. Fund performance was behind that of the index.

Nearly every sector of the Russell 2000 Growth Index finished this period in double-digit negative territory. Within the benchmark, Energy was the weakest sector, off by more than 50%. Industrials were down roughly 36%. At negative 1.7%, the tiny Consumer Staples sector turned in the strongest results.

Early in the fiscal year, more defensive and lower growth stocks outperformed on a relative basis while the markets were declining dramatically. After the March low and into the current rally, nearly the opposite was true—with the lower quality (e.g., little or no earnings, low return on equity), smallest, and least expensive stocks in the lead. In our view, this shift is not surprising—in a transitional market following a period of sustained weakness, such as in 2003, lower quality stocks have, in the past, often led early on. Such stocks do not meet our quality growth and fundamental requirements, accounting for the Fund's modest underperformance. However, we believe the "junk rally" may be waning now, and that our portfolio can benefit each time the market pauses to weigh price appreciation against underlying fundamental value.

The largest index sectors—Information Technology (IT), Health Care and Consumer Discretionary—were whipsawed during the fiscal year, initially performing very poorly, but turning in middling results overall due to strong performance in the second half. Within the Fund, holdings in the difficult Energy sector outperformed index counterparts thanks to excellent security selection. An overweight position (versus the benchmark) in Concho Resources, a high quality oil and gas firm with good earnings visibility, was a significant benefit.

Industrials holdings were also positive for the Fund versus the benchmark. Stocks that contributed to relative outperformance include Allegiant Travel, the Fund's top performer this period. Allegiant is a cost-effective secondary markets travel company that is gaining share from traditional carriers. Textron was another positive. Textron provides cost-efficient aircraft, industrial and financial solutions to the military and industry.

Our Consumer Discretionary holdings were also slightly positive on a relative basis. Our defensive secondary education theme performed very well on a relative basis through the end of calendar year 2008, although this trend has reversed so far in calendar year 2009. For the full fiscal year, the theme was a benefit, with the majority of our holdings contributing to returns.

The areas that were most detrimental to the Fund over the year were IT and Health Care. In IT, our holdings did not keep pace with rebounding lower quality stocks. While Silicon Laboratories and Varian Semiconductor Equipment were among our top performers, we tend not to invest heavily in semiconductor and equipment stocks, which led this market. Software, which we emphasized, underperformed the sector. Trimble Navigation, a high quality software company, is a good example. VistaPrint, a niche technology holding that sells lower cost business stationery, was a standout performer, particularly in the latter half of the fiscal year.

In Health Care, our services and equipment holdings underperformed. Services companies were hurt by "political risk"—the unknowns surrounding health care reform—and equipment firms underperformed as hospitals reduced spending. Disappointments included Kensey Nash, Wright Medical and Masimo, all of which were sold. Less susceptible to political risk, our biotech holdings performed relatively well this period. We added select exposure where we believe product pipelines are fairly predictable.

Last fall, the Fund was overweighted in Consumer Staples, a defensive move. As of fiscal year-end, the sector is at less than half the benchmark's weighting. We sold our weakest performer, Central European Distribution, this year. The liquor stock suffered on currency exposure and exposure to weakened Eastern European markets. On a positive note, we also sold Whole Foods, our second best performer.

We are approaching the coming year with roughly sector-neutral positioning. The Fund is overweighted in Consumer Discretionary, and is now less defensive in the sector, as we have reduced secondary education in favor of leisure and gaming companies such as Orient Express, Royal Caribbean Cruises and WMS Industries. We have eliminated our Telecommunications exposure.

As always, the companies that meet our fundamental criteria generally have strong balance sheets, good cash flow characteristics and low leverage, which should benefit them on a competitive basis as we move through this economic downturn and what we consider a transitional market. Despite the runs in performance that we have seen in lower quality stocks, we continue to believe that, longer term, fundamental stock selection is the key to long-term performance, and that the market will reward companies that possess the strong fundamentals and quality growth characteristics we seek over time.

Sincerely,

David H. Burshtan
Portfolio Manager

The risks involved in seeking capital appreciation from investments primarily in companies with small-market capitalization are set forth in the prospectus and statement of additional information.

Small-capitalization stocks are more vulnerable to financial risks and other risks than larger stocks. They are generally less liquid than larger stocks, so their market prices tend to be more volatile.

The composition, industries and holdings of the Fund are subject to change. Small Cap Growth Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Small Cap Growth Fund

TICKER SYMBOLS

Investor Class				NBMIX
Trust Class				NBMOX
Advisor Class				NBMVX
Institutional Class				NBSMX
Class A				NSNAX
Class C				NSNCX
Class R3				NSNRX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	18.5	%
Consumer Staples	1.5
Energy	3.1
Financials	5.8
Health Care	25.7
Industrials	15.1
Information Technology	27.7
Materials	2.6
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,8,12

	Inception Date	1 Year			5 Years			10 Years			Life of Fund
At NAV
Investor Class	10/20/1998		(26.62	%)		4.19	%		(0.68	%)		5.66	%
Trust Class⁵	11/03/1998		(26.64	%)		4.12	%		(0.77	%)		5.58	%
Advisor Class⁶	05/03/2002		(26.81	%)		3.94	%		(0.80	%)		5.54	%
Institutional Class⁷	04/01/2008		(26.30	%)		4.32	%		(0.62	%)		5.71	%
Class A²¹	05/27/2009		(26.61	%)		4.19	%		(0.68	%)		5.66	%
Class C²¹	05/27/2009		(26.73	%)		4.16	%		(0.70	%)		5.64	%
Class R3²¹	05/27/2009		(26.66	%)		4.18	%		(0.69	%)		5.65	%
With Sales Charge
Class A²¹			(30.83	%)		2.97	%		(1.27	%)		5.08	%
Class C²¹			(27.47	%)		4.16	%		(0.70	%)		5.64	%
Index
Russell 2000^® Growth Index^2,19			(22.02	%)		2.71	%		0.65	%		3.37	%
Russell 2000^® Index^2,19			(21.29	%)		2.21	%		4.30	%		5.92	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2019 for Investor Class, Trust Class and Advisor Class shares, through August 31, 2012 for Institutional Class shares and through August 31, 2013 for Class A, Class C and Class R3 shares. The net expense ratios were 1.32%, 1.42%, 1.62%, 0.91%, 1.26%, 2.01% and 1.51% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively. As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 1.45%, 1.67%, 1.99%, 1.11%, 1.60%, 2.35% and 1.85% for Investor Class, Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers or expense reimbursements).

Small Cap Growth Fund

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Investor Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart on previous page). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Socially Responsive Fund Commentary

For the fiscal year ended August 31, 2009, Neuberger Berman Socially Responsive Fund underperformed its benchmark, the S&P 500 Index. In an overwhelmingly down market, performance for both the Fund and the index was negative.

Following the March 2009 equity market low, we have seen a significant rebound in global industrial production as businesses position to restock inventory. Over the same period, the global economy has also benefited from various stimulus packages, reopened credit markets, low interest rates, and generally healthy corporate balance sheets. Together theses factors added to optimism, and the markets rallied strongly. While the economy is clearly enjoying a vigorous near-term bounce, we believe the indebtedness of consumers and imbalances in government finances represent a long-term headwind for economic growth. We are also concerned about pockets of excess industrial capacity in light of lower demand, and are cautious about growth rates and fundamentals when the inventory boost ends.

As long-term investors, we made few changes to the types of companies we own, except for selective repositioning for the "post-Lehman bankruptcy" environment. Turnover remains relatively low, and our adjustments have been thoughtful, careful, and aligned with our longer-term strategy. We continue to focus on companies with strong, sustainable business models that are managed responsibly for the benefit of all stakeholders. The prospective growth in such businesses, we believe, is less dependent on a vibrant global economy. We believe most holdings have recession-resistant businesses and/or strategic advantages that should allow them to gain share to offset cyclical pressure presented by a weak economy.

We used last year's volatility to add to and introduce such names at attractive valuations. For example, while the newspaper business is weak, we own Washington Post for its high growth Kaplan education business—Kaplan is a beneficiary as American workers pursue higher education for a more secure future within a difficult labor market. The company has been recognized for its commitment to workplace diversity and recycling initiatives.

A top performer, Intuit is another example. One of Fortune's 100 Best Companies to Work For, Intuit sells software including TurboTax, Quicken and QuickBooks. Intuit has grown its business and acquired new small- and medium-sized business customers in a period of economic weakness, through a free version of the QuickBooks general ledger accounting system. This version demonstrates the software's value proposition—low cost and compelling benefits—and from there, Intuit can offer a full suite of paid services, such as payroll and payment systems, and web hosting.

We are currently avoiding credit-sensitive Financials, as we believe credit losses are rising, and the business models and earnings potential of the post-2008 world are still unclear. Within the Consumer Discretionary sector, we are avoiding retailers and consumer non-durables names, expecting that consumer spending will be more measured. Finally, we are avoiding deep cyclicals—these include many Materials-related businesses and Industrial sector companies that depend on high capacity utilization rates for growth. All of these areas have enjoyed strong rallies off of the March lows.

Within a wildly divergent market—down following the Lehman failure then sharply higher—individual stock performance was as much about the timing of purchases and sales as a commentary on its value. Our top performer was IntercontinentalExchange, whose volume growth we believe should continue with increased regulation of securities markets. We added Praxair, a resilient, well-run business, during the valuation opportunity in calendar year 2008. Many of Praxair's products are aimed at improving efficiency and reducing potential pollutants. Long-term holding Novo Nordisk, a leader in treatment of the growing global diabetes epidemic, and on social and environmental issues, also performed well. Yahoo is in a turnaround, with a solid balance sheet, no debt, a low price-to-cash flow ratio, and strong positioning for an ad spending recovery. Markel is one of the largest participants in a fragmented specialty insurance sector. We bought it at a meaningful discount, and believe it is positioned to grow.

Among the poor performers, we continue to own cable and component distributor Anixter. While disappointing for the reporting period, it has been a top performer in calendar year 2009. We eliminated Weingarten Realty Investors and American Express last fall on concerns about credit markets. We sold Liberty Global but held Comcast, a resilient business that has enjoyed improved share price performance recently.

True to our successful long-term strategy, we continue to manage the portfolio with a three- to five-year view, looking for socially responsive businesses with advantaged growth. After performing better than the index during much of calendar year 2009 so far, we lost ground in August as investors favored the "cyclical bounce" stocks we consider risky. We are encouraged by the prospects for our companies and think the portfolio is well positioned for growth within the more challenging environment we foresee. As always, we look forward to continuing to serve your investment needs.

Sincerely,

Arthur Moretti and Ingrid S. Dyott
Portfolio Co-Managers

The risks involved in seeking capital appreciation from investments in mid- to large-cap stocks that meet the Fund's financial criteria and social policy are set forth in the prospectus and statement of additional information.

The Fund's social policy could cause it to underperform similar funds that do not have a social policy. The composition, industries and holdings of the Fund are subject to change. Socially Responsive Fund is invested in a wide array of stocks and no single holding makes up a significant portion of the Fund's total assets.

Socially Responsive Fund

TICKER SYMBOLS

Investor Class				NBSRX
Trust Class				NBSTX
Institutional Class				NBSLX
Class A				NRAAX
Class C				NRACX
Class R3				NRARX

SECTOR ALLOCATION

(% of Equity Market Value)
Consumer Discretionary	16.4	%
Energy	12.9
Financials	14.1
Health Care	12.0
Industrials	13.8
Information Technology	23.7
Materials	4.4
Utilities	2.7
Total	100.0	%

AVERAGE ANNUAL TOTAL RETURN^1,3,8

	Inception Date	1 Year			5 Years			10 Years			Life of Fund
At NAV
Investor Class	03/16/1994		(21.83	%)		1.86	%		1.93	%		7.21	%
Trust Class	03/03/1997		(22.01	%)		1.67	%		1.71	%		7.04	%
Institutional Class⁷	11/28/2007		(21.71	%)		1.91	%		1.96	%		7.23	%
Class A²¹	05/27/2009		(21.87	%)		1.85	%		1.93	%		7.20	%
Class C²¹	05/27/2009		(22.00	%)		1.82	%		1.91	%		7.19	%
Class R3²¹	05/27/2009		(21.93	%)		1.84	%		1.92	%		7.20	%
With Sales Charge
Class A²¹			(26.37	%)		0.65	%		1.33	%		6.79	%
Class C²¹			(22.76	%)		1.82	%		1.91	%		7.19	%
Index
S&P 500 Index^2,19			(18.25	%)		0.49	%		(0.79	%)		7.17	%

Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, visit www.nb.com/performance.

Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Fund through August 31, 2012 for Institutional Class shares and through August 31, 2013 for Class A, Class C and Class R3 shares. The net expense ratios were 0.75%, 1.11%, 1.86% and 1.36% for Institutional Class, Class A, Class C and Class R3 shares. As stated in the Fund's most recent prospectus, the total annual fund operating expense ratios for fiscal year 2008 were 0.90%, 1.09%, 0.77%, 1.21%, 1.96% and 1.41% for Investor Class, Trust Class, Institutional Class, Class A, Class C and Class R3 shares, respectively (prior to any fee waivers or expense reimbursements).

Socially Responsive Fund

COMPARISON OF A $10,000 INVESTMENT

This chart shows the value of a hypothetical $10,000 investment in the Fund over the past 10 fiscal years, or since the Fund's inception if it has not operated for 10 years. The graph is based on the Investor Class shares only; performance of other classes will vary due to differences in fee structures and any applicable sales charges (see Average Annual Total Return chart on previous page). The result is compared with benchmarks, which may include a broad-based market index and/or a narrower index. Please note that market indexes have not been reduced to reflect any of the fees and costs of investing. All results include the reinvestment of dividends and capital gain distributions. Neither the Fund's returns nor the market indexes shown in the graph and table reflect the effect of taxes an investor would pay on Fund distributions or on the redemption of Fund shares. Results represent past performance and do not indicate future results.

Endnotes

1 "Total Return" includes reinvestment of all income dividends and capital gain distributions. Results represent past performance and do not indicate future results. The value of an investment in the Fund and the return on the investment both will fluctuate, and redemption proceeds may be higher or lower than an investor's original cost.

2 Please see "Glossary of Indices" starting on page 68 for a description of indices. Please note that indices do not take into account any fees and expenses or tax consequences 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 LLC ("Management") and include reinvestment of all dividends and capital gain distributions. The Fund may invest in securities not included in the described indices or may not invest in all securities included in the described indices.

3 Expense Caps or Waivers: Absent these arrangements, which are subject to change, the total returns for these periods may have been less due to Management reimbursing and/or waiving certain operating expenses. Please see the notes to the financial statements for specific information regarding which funds and which classes currently have a portion of their operating expenses reimbursed and/or waived by Management.

4 This date reflects when Management first became investment advisor to the Fund.

5 Performance shown for the Trust Class prior to June 1998 for International Fund, November 1998 for Small Cap Growth Fund, and June 1999 for Regency Fund is that of the Investor Class, which has lower expenses and typically higher returns than the Trust Class.

6 Performance shown for the Advisor Class prior to May 2002 for Small Cap Growth Fund is that of the Investor Class, which has lower expenses and typically higher returns than the Advisor Class.

7 Performance shown prior to July 1999 for the Institutional Class of Genesis Fund, prior to June 2006 for the Institutional Class of Partners Fund, prior to April 2007 for the Institutional Class of Mid Cap Growth Fund, prior to November 2007 for the Institutional Class of Socially Responsive Fund and prior to April 2008 for the Institutional Class of Small Cap Growth Fund is that of the Investor Class. Performance shown prior to October 2006 for the Institutional Class of International Large Cap Fund and prior to June 2008 for the Institutional Class of Real Estate Fund is that of the Trust Class. The Investor Class and Trust Class have higher expenses and typically lower returns than the Institutional Class.

8 The investments for the Fund are managed by the same portfolio manager(s) who manage one or more other mutual funds that have similar names, investment objectives, and investment styles as the Fund. You should be aware that the Fund is likely to differ from the other mutual funds in size, cash flow pattern and tax matters. Accordingly, the holdings and performance can be expected to vary from those of the other mutual funds.

9 The Fund had a policy of investing mainly in large-cap stocks prior to September 1998 and investing 90% of its assets in no more than six economic sectors prior to December 17, 2007. As of April 2, 2001, the Fund changed its investment policy to become "non-diversified" under the Investment Company Act of 1940. Performance prior to these changes might have been different if current policies had been in effect. As a result of becoming "nondiversified", the Fund can invest a greater percentage of assets in any single security. This practice could increase the risk of investing in the Fund because it may own fewer securities. While the Fund's value-oriented approach is intended to limit risks, the Fund, with its concentration in a limited number of securities, may be more affected by any single economic, political or regulatory development than a more diversified mutual fund.

10 The Fund was relatively small during the period shown. The same techniques used to produce returns in a small fund may not work to produce similar returns in a larger fund.

11 Prior to December 17, 2007 Mid Cap Growth Fund was known as the Manhattan Fund.

12 Prior to December 17, 2007 Small Cap Growth Fund was known as the Millennium Fund.

13 Prior to December 17, 2007 Small and Mid Cap Growth Fund was known as All Cap Growth Fund and invested a significant portion of its assets in large cap securities. Performance after that date reflects the current small- and mid-cap strategy.

Endnotes (cont'd)

14 As of December 17, 2007, the Fund changed its investment policy to become "non-diversified" under the Investment Company Act of 1940. Performance prior to this change might have been different if current policies had been in effect. As a result of becoming "non-diversified," the Fund can invest a greater percentage of assets in any single security. This practice could increase the risk of investing in the Fund because it may own fewer securities. Although the Fund has a policy that allows it to operate as a non-diversified investment company, on December 5, 2008, the Board adopted a policy, which cannot be changed without a shareholder vote, that the Fund will invest its portfolio so as to meet the standards of a diversified investment company.

15 Because the Fund had a policy of investing mainly in large-cap stocks prior to December 2002, its performance during that time might have been different if current policies had been in effect.

16 Because the Fund had a policy of investing primarily in mid- and large-cap stocks prior to September 1998, its performance during that time might have been different if current policies had been in effect.

17 Performance from the beginning of the measurement period to June 9, 2008 for Class A and Class C of Neuberger Berman Equity Income Fund is that of the Trust Class. The performance information of the Trust Class has been adjusted to reflect the appropriate sales charge applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Trust Class had lower expenses and typically higher returns than Class A or Class C.

18 Performance shown prior to December 20, 2007 for Class A and Class C, and prior to May 27, 2009 for Class R3, of Neuberger Berman International Large Cap Fund is that of the Trust Class. The performance information of the Trust Class has been adjusted to reflect the appropriate sales charge applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Trust Class has lower expenses and typically higher returns than Class A, Class C or Class R3.

19 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.

20 Prior to April 9, 2009, Neuberger Berman Large Cap Disciplined Growth Fund was known as Neuberger Berman Century Fund. From April 6, 2009 through April 8, 2009, Large Cap Disciplined Growth Fund Class A, Class C and Institutional Class were known as Century Fund Class A, Class C and Institutional Class. The inception dates for Large Cap Disciplined Growth Fund Class A, Class C and Institutional Class are April 6, 2009 and May 27, 2009 for Class R3. Performance shown prior to May 27, 2009 for Class R3, and prior to April 6, 2009 for Institutional Class, Class A and Class C of Neuberger Berman Large Cap Disciplined Growth Fund is that of Neuberger Berman Century Fund Investor Class. The performance information of the Investor Class has been adjusted to reflect the appropriate sales charge applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Investor Class has lower expenses and typically higher returns than Class A, Class C or Class R3. The Institutional Class has lower expenses and typically higher returns than Investor Class.

21 Performance shown prior to May 27, 2009 for Class A, Class C and Class R3 of Neuberger Berman Guardian Fund, Neuberger Berman Mid Cap Growth Fund, Neuberger Berman Small Cap Growth Fund and Neuberger Berman Socially Responsive Fund is that of the Investor Class. The performance information of the Investor Class has been adjusted to reflect the appropriate sales charge applicable to Class A and Class C shares, but has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). The Investor Class has lower expenses and typically higher returns than Class A, Class C or Class R3

22 Performance shown prior to May 27, 2009 for Institutional Class of Neuberger Berman Guardian Fund is that of the Investor Class. The performance information of Institutional Class has not been adjusted to take into account differences in class specific operating expenses (such as Rule 12b-1 fees). Institutional Class has lower expenses and typically higher returns than Investor Class.

For more complete information on any of the Neuberger Berman Equity Funds, call Neuberger Berman Management LLC at (800) 877-9700, or visit our website at www.nb.com.

Glossary of Indices

S&P 500 Index:				The S&P 500 Index is widely regarded as the standard for measuring the performance of large-cap stocks traded on U.S. markets and includes a representative sample of leading companies in leading industries.

Russell 1000^®Index:				Measures the performance of the 1,000 largest companies in the Russell 3000^® Index (which measures the performance of the 3,000 largest U.S. companies based on total market capitalization). The Russell 1000 Index represents approximately 92% of the U.S. market.

Russell 1000^®Value Index:				Measures the performance of those Russell 1000^® Index companies with lower price-to-book ratios and lower forecasted growth rates.

Russell 1000^®Growth Index:				Measures the performance of those Russell 1000^® Index companies with higher price-to-book ratios and higher forecasted growth rates.

Russell 2000^®Index:				An unmanaged index consisting of securities of the 2,000 issuers having the smallest capitalization in the Russell 3000^® Index, representing approximately 8% of the Russell 3000 Index total market capitalization. As of the latest reconstitution, the smallest company's market capitalization was approximately $78 million.

Russell 2000^®Growth Index:				Measures the performance of those Russell 2000^® Index companies with higher price-to-book ratios and higher forecasted growth rates.

Russell 2500^TMGrowth Index:				Measures the performance of those Russell 2500^TM Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2500 Index measures the performance of the 2,500 smallest companies in the Russell 3000^®, which represents approximately 18% of the total market capitalization of the Russell 3000 Index. As of the latest reconstitution, the weighted average market capitalization was approximately $1.7 billion; the median market capitalization was approximately $425 million. The largest company in the index had an approximate market capitalization of $3.9 billion.

Russell Midcap^®Index:				Measures the performance of the 800 smallest companies in the Russell 1000^® Index.

Russell Midcap^®Growth Index:				An unmanaged index that measures the performance of those Russell Midcap^® Index companies (the 800 smallest companies in the Russell 1000^® Index) with higher price-to-book ratios and higher forecasted growth rates.

Russell Midcap^®Value Index:				An unmanaged index that measures the performance of those Russell Midcap^® Index companies (the 800 smallest companies in the Russell 1000^® Index) with lower price-to-book ratios and lower forecasted growth rates.

FTSE NAREIT Equity REITs Index:				The FTSE NAREIT Equity REITs Index tracks the performance of all Equity REITs currently listed on the New York Stock Exchange, the NASDAQ National Market System and the American Stock Exchange. REITs are classified as Equity if 75% or more or their gross invested Book assets are invested directly or indirectly in equity of commercial properties.

MSCI EAFE^®Index:				Also known as the Morgan Stanley Capital International Europe, Australasia, Far East Index. An unmanaged index of over 1,000 foreign stock prices. The index is translated into U.S. dollars.

MSCI Emerging Markets Index:				A free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. As of June 2009 the MSCI Emerging Markets Index consisted of the following 22 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines,Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

Glossary of Indices (cont'd)

MSCI World Index:				A free float-adjusted market capitalization index that is designed to measure global developed market equity performance. As of June 2006 the MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States.

HSBC Global Climate Change Index:				The index is rule-based and uses a modified market capitalization approach that takes into account free float and revenues associated with climate change-related businesses. Recognizing that there is also a growing number of integrated players exposed to this theme, individual companies are weighted in the index according to their exposure to climate change. Exposure is defined as the percentage of overall revenues that are attributable to reducing emissions, reacting to the effects of climate change or adapting to climate change. The revenue data are based on HSBC's analysis of publicly available information and data from an external consultant specializing in renewable energy, low carbon technology and the carbon markets. Once a company has been ascribed an exposure factor and it forms part of the selection universe, HSBC monitors and modifies its climate change-related revenues, if necessary, on an annual basis.

Please note that indices do not take into account any fees and expenses or any tax consequences 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 LLC and include reinvestment of all dividends and capital gain distributions. The Funds may invest in securities not included in the above-described indices.

Information About Your Fund's Expenses

These tables are designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended August 31, 2009 and held for the entire period. The tables illustrate the fund's costs in two ways:

Actual Expenses and Performance:				The first section of the table provides information about actual account values and actual expenses in dollars, based on the fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period.

Hypothetical Example for Comparison Purposes:				The second section of the table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in these funds versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees. Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Information as of 8/31/09 (Unaudited)

Neuberger Berman Equity Funds
	ACTUAL									HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)⁽⁴⁾
	Beginning Account Value 3/1/09		Ending Account Value 8/31/09		Expenses Paid During the Period⁽¹⁾ 3/1/09 - 8/31/09		Expense Ratio			Beginning Account Value 3/1/09		Ending Account Value 8/31/09		Expenses Paid During the Period⁽¹⁾ 3/1/09 - 8/31/09		Expense Ratio
Climate Change Fund
Institutional Class	$	1,000.00	$	1,361.50	$	5.83		.98	%	$	1,000.00	$	1,020.27	$	4.99		.98	%
Class A	$	1,000.00	$	1,360.10	$	7.32		1.23	%	$	1,000.00	$	1,019.00	$	6.26		1.23	%
Class C	$	1,000.00	$	1,355.90	$	11.76		1.98	%	$	1,000.00	$	1,015.22	$	10.06		1.98	%
Emerging Markets Equity Fund
Institutional Class	$	1,000.00	$	1,703.00	$	8.72		1.28	%	$	1,000.00	$	1,018.75	$	6.51		1.28	%
Class A	$	1,000.00	$	1,701.50	$	10.42		1.53	%	$	1,000.00	$	1,017.49	$	7.78		1.53	%
Class C	$	1,000.00	$	1,696.20	$	15.49		2.28	%	$	1,000.00	$	1,013.71	$	11.57		2.28	%
Equity Income Fund
Institutional Class	$	1,000.00	$	1,298.00	$	4.63		.80	%	$	1,000.00	$	1,021.17	$	4.08		.80	%
Class A	$	1,000.00	$	1,296.70	$	6.72		1.16	%	$	1,000.00	$	1,019.36	$	5.90		1.16	%
Class C	$	1,000.00	$	1,292.30	$	11.04		1.91	%	$	1,000.00	$	1,015.58	$	9.70		1.91	%
Focus Fund
Investor Class	$	1,000.00	$	1,413.10	$	6.14		1.01	%	$	1,000.00	$	1,020.11	$	5.14		1.01	%
Trust Class	$	1,000.00	$	1,411.60	$	7.60		1.25	%	$	1,000.00	$	1,018.90	$	6.36		1.25	%
Advisor Class	$	1,000.00	$	1,409.40	$	9.11		1.50	%	$	1,000.00	$	1,017.64	$	7.63		1.50	%
Genesis Fund
Investor Class	$	1,000.00	$	1,324.80	$	6.33		1.08	%	$	1,000.00	$	1,019.76	$	5.50		1.08	%
Trust Class	$	1,000.00	$	1,324.30	$	6.56		1.12	%	$	1,000.00	$	1,019.56	$	5.70		1.12	%
Advisor Class	$	1,000.00	$	1,322.30	$	8.08		1.38	%	$	1,000.00	$	1,018.25	$	7.02		1.38	%
Institutional Class	$	1,000.00	$	1,326.00	$	4.98		.85	%	$	1,000.00	$	1,020.92	$	4.33		.85	%
Guardian Fund
Investor Class	$	1,000.00	$	1,338.50	$	5.78		.98	%	$	1,000.00	$	1,020.27	$	4.99		.98	%
Trust Class	$	1,000.00	$	1,337.90	$	6.78		1.15	%	$	1,000.00	$	1,019.41	$	5.85		1.15	%
Advisor Class	$	1,000.00	$	1,335.60	$	8.83		1.50	%	$	1,000.00	$	1,017.64	$	7.63		1.50	%
Institutional Class⁽³⁾	$	1,000.00	$	1,074.10	$	2.07		.75	%	$	1,000.00	$	1,011.29	$	2.00		.75	%
Class A⁽³⁾	$	1,000.00	$	1,073.60	$	3.06		1.11	%	$	1,000.00	$	1,010.34	$	2.97		1.11	%
Class C⁽³⁾	$	1,000.00	$	1,070.60	$	5.12		1.86	%	$	1,000.00	$	1,008.34	$	4.96		1.86	%
Class R3⁽³⁾	$	1,000.00	$	1,072.70	$	3.75		1.36	%	$	1,000.00	$	1,009.67	$	3.63		1.36	%
International Fund
Investor Class	$	1,000.00	$	1,432.50	$	8.58		1.40	%	$	1,000.00	$	1,018.15	$	7.12		1.40	%
Trust Class	$	1,000.00	$	1,431.40	$	9.25		1.51	%	$	1,000.00	$	1,017.59	$	7.68		1.51	%
International Institutional Fund
Institutional Class	$	1,000.00	$	1,450.90	$	4.94		.80	%	$	1,000.00	$	1,021.17	$	4.08		.80	%
International Large Cap Fund
Trust Class	$	1,000.00	$	1,426.30	$	7.71		1.26	%	$	1,000.00	$	1,018.85	$	6.41		1.26	%
Institutional Class	$	1,000.00	$	1,426.30	$	5.57		.91	%	$	1,000.00	$	1,020.62	$	4.63		.91	%
Class A	$	1,000.00	$	1,426.00	$	7.77		1.27	%	$	1,000.00	$	1,018.80	$	6.46		1.27	%
Class C	$	1,000.00	$	1,420.60	$	12.26		2.01	%	$	1,000.00	$	1,015.07	$	10.21		2.01	%
Class R3⁽³⁾	$	1,000.00	$	1,112.70	$	4.27		1.52	%	$	1,000.00	$	1,009.25	$	4.06		1.52	%
Large Cap Disciplined Growth Fund
Investor Class	$	1,000.00	$	1,296.10	$	6.89		1.19	%	$	1,000.00	$	1,019.21	$	6.06		1.19	%
Institutional Class⁽²⁾	$	1,000.00	$	1,145.80	$	3.26		.75	%	$	1,000.00	$	1,017.23	$	3.07		.75	%
Class A⁽²⁾	$	1,000.00	$	1,143.90	$	4.82		1.11	%	$	1,000.00	$	1,015.77	$	4.54		1.11	%
Class C⁽²⁾	$	1,000.00	$	1,140.20	$	8.07		1.86	%	$	1,000.00	$	1,012.73	$	7.59		1.86	%
Class R3⁽³⁾	$	1,000.00	$	1,102.40	$	3.80		1.36	%	$	1,000.00	$	1,009.67	$	3.63		1.36	%

Expense Information as of 8/31/09 cont'd (Unaudited)

	ACTUAL									HYPOTHETICAL (5% ANNUAL RETURN BEFORE EXPENSES)⁽⁴⁾
	Beginning Account Value 3/1/09		Ending Account Value 8/31/09		Expenses Paid During the Period⁽¹⁾ 3/1/09 - 8/31/09		Expense Ratio			Beginning Account Value 3/1/09		Ending Account Value 8/31/09		Expenses Paid During the Period⁽¹⁾ 3/1/09 - 8/31/09		Expense Ratio
Mid Cap Growth Fund
Investor Class	$	1,000.00	$	1,296.70	$	6.60		1.14	%	$	1,000.00	$	1,019.46	$	5.80		1.14	%
Trust Class	$	1,000.00	$	1,295.50	$	7.06		1.22	%	$	1,000.00	$	1,019.06	$	6.21		1.22	%
Advisor Class	$	1,000.00	$	1,293.70	$	8.67		1.50	%	$	1,000.00	$	1,017.64	$	7.63		1.50	%
Institutional Class	$	1,000.00	$	1,299.80	$	4.35		.75	%	$	1,000.00	$	1,021.42	$	3.82		.75	%
Class A⁽³⁾	$	1,000.00	$	1,093.80	$	3.09		1.11	%	$	1,000.00	$	1,010.34	$	2.97		1.11	%
Class C⁽³⁾	$	1,000.00	$	1,092.10	$	5.17		1.86	%	$	1,000.00	$	1,008.34	$	4.96		1.86	%
Class R3⁽³⁾	$	1,000.00	$	1,093.00	$	3.78		1.36	%	$	1,000.00	$	1,009.67	$	3.63		1.36	%
Partners Fund
Investor Class	$	1,000.00	$	1,647.90	$	5.87		.88	%	$	1,000.00	$	1,020.77	$	4.48		.88	%
Trust Class	$	1,000.00	$	1,645.60	$	6.94		1.04	%	$	1,000.00	$	1,019.96	$	5.30		1.04	%
Advisor Class	$	1,000.00	$	1,646.10	$	7.94		1.19	%	$	1,000.00	$	1,019.21	$	6.06		1.19	%
Institutional Class	$	1,000.00	$	1,649.50	$	4.67		.70	%	$	1,000.00	$	1,021.68	$	3.57		.70	%
Real Estate Fund
Trust Class	$	1,000.00	$	1,704.70	$	6.75		.99	%	$	1,000.00	$	1,020.21	$	5.04		.99	%
Institutional Class	$	1,000.00	$	1,706.50	$	5.80		.85	%	$	1,000.00	$	1,020.92	$	4.33		.85	%
Regency Fund
Investor Class	$	1,000.00	$	1,623.20	$	8.73		1.32	%	$	1,000.00	$	1,018.55	$	6.72		1.32	%
Trust Class	$	1,000.00	$	1,623.50	$	8.33		1.26	%	$	1,000.00	$	1,018.85	$	6.41		1.26	%
Select Equities Fund
Institutional Class	$	1,000.00	$	1,215.70	$	4.19		.75	%	$	1,000.00	$	1,021.42	$	3.82		.75	%
Class A	$	1,000.00	$	1,212.30	$	6.69		1.20	%	$	1,000.00	$	1,019.16	$	6.11		1.20	%
Class C	$	1,000.00	$	1,206.70	$	10.85		1.95	%	$	1,000.00	$	1,015.38	$	9.91		1.95	%
Small and Mid Cap Growth Fund
Trust Class	$	1,000.00	$	1,287.10	$	6.40		1.11	%	$	1,000.00	$	1,019.61	$	5.65		1.11	%
Small Cap Growth Fund
Investor Class	$	1,000.00	$	1,350.10	$	7.70		1.30	%	$	1,000.00	$	1,018.65	$	6.61		1.30	%
Trust Class	$	1,000.00	$	1,349.90	$	8.29		1.40	%	$	1,000.00	$	1,018.15	$	7.12		1.40	%
Advisor Class	$	1,000.00	$	1,347.80	$	9.47		1.60	%	$	1,000.00	$	1,017.14	$	8.13		1.60	%
Institutional Class	$	1,000.00	$	1,352.80	$	5.34		.90	%	$	1,000.00	$	1,020.67	$	4.58		.90	%
Class A⁽³⁾	$	1,000.00	$	1,111.70	$	3.54		1.26	%	$	1,000.00	$	1,009.94	$	3.37		1.26	%
Class C⁽³⁾	$	1,000.00	$	1,109.80	$	5.63		2.01	%	$	1,000.00	$	1,007.95	$	5.36		2.01	%
Class R3⁽³⁾	$	1,000.00	$	1,111.00	$	4.26		1.52	%	$	1,000.00	$	1,009.25	$	4.06		1.52	%
Socially Responsive Fund
Investor Class	$	1,000.00	$	1,347.20	$	5.50		.93	%	$	1,000.00	$	1,020.52	$	4.74		.93	%
Trust Class	$	1,000.00	$	1,345.90	$	6.62		1.12	%	$	1,000.00	$	1,019.56	$	5.70		1.12	%
Institutional Class	$	1,000.00	$	1,348.00	$	4.44		.75	%	$	1,000.00	$	1,021.42	$	3.82		.75	%
Class A⁽³⁾	$	1,000.00	$	1,073.30	$	3.06		1.11	%	$	1,000.00	$	1,010.34	$	2.97		1.11	%
Class C⁽³⁾	$	1,000.00	$	1,071.70	$	5.12		1.86	%	$	1,000.00	$	1,008.34	$	4.96		1.86	%
Class R3⁽³⁾	$	1,000.00	$	1,072.50	$	3.75		1.36	%	$	1,000.00	$	1,009.67	$	3.63		1.36	%

(1) For each class of the fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown), unless otherwise indicated.

(2) For each class of the fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 148/365 (to reflect the period shown of April 6, 2009 to August 31, 2009).

(3) For each class of the fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 97/365 (to reflect the period shown of May 27, 2009 to August 31, 2009).

(4) Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent period divided by 365.

Schedule of Investments Climate Change Fund

TOP TEN EQUITY HOLDINGS

		Country	Industry
1	Itron, Inc.	United States	Electronic Equipment & Instruments	3.1	%
2	ITC Holdings	United States	Electric Utilities	2.6	%
3	FPL Group	United States	Electric Utilities	2.4	%
4	The Williams Companies	United States	Oil & Gas Storage & Transportation	2.4	%
5	MYR Group	United States	Construction & Engineering	2.2	%
6	Northeast Utilities	United States	Electric Utilities	2.1	%
7	Gamesa Corporacion Tecnologica	Spain	Heavy Electrical Equipment	2.0	%
8	First Solar	United States	Electrical Components & Equipment	2.0	%
9	Covanta Holding	United States	Environmental & Facilities Services	1.8	%
10	Shaw Group	United States	Construction & Engineering	1.7	%

	Number of Shares		Value† (000's)
Common Stocks (99.0%)
Application Software (0.5%)
SAP AG		300	$	15
Auto Parts & Equipment (4.0%)
BorgWarner, Inc.		415		12
Fuel Systems Solutions*		1,100		37
Johnson Controls		900		22
Westport Innovations*		5,000		50
				121
Coal & Consumable Fuels (0.5%)
Cameco Corp.		600		16
Commodity Chemicals (1.1%)
Calgon Carbon*		2,300		33
Communications Equipment (1.7%)
Tandberg ASA		2,400		50
Computer Hardware (0.8%)
IBM		200		24
Construction & Engineering (6.8%)
Foster Wheeler*		600		17
Jacobs Engineering Group*		300		13
Layne Christensen*		700		18
MYR Group*		3,200		66
Quanta Services*		1,800		40
Shaw Group*		1,800		53
				207
Construction & Farm Machinery (0.6%)
Deere & Co.		400		17
Diversified Support Services (1.5%)
EnerNOC, Inc.*		1,700		46
Electric Utilities (10.4%)
Entergy Corp.		515		40
Exelon Corp.		575		29
FirstEnergy Corp.		706		32
FPL Group		1,295		73
ITC Holdings		1,670		78
Northeast Utilities		2,700		64
				316

	Number of Shares		Value† (000's)
Electrical Components & Equipment (12.1%)
American Superconductor*		500	$	16
Cooper Industries Class A		404		13
Emerson Electric		400		15
Ener1, Inc.*		4,700		30
EnerSys*		2,000		40
First Solar*		500		61
FuelCell Energy*		3,600		13
General Cable*		400		14
Q Cells*		1,135		17
Roper Industries		605		29
Sunpower Corp Class A*		1,200		30
Suntech Power Holdings*		2,400		34
Trina Solar*		600		16
Yingli Green Energy*		3,600		39
				367
Electronic Equipment & Instruments (3.9%)
Itron, Inc.*		1,718		94
Wasion Group Holdings		25,000		23
				117
Electronic Manufacturing Services (1.1%)
Echelon Corp.*		1,000		11
Maxwell Technologies*		1,600		22
				33
Environmental & Facilities Services (4.8%)
China Everbright International		90,000		33
Covanta Holding*		3,075		55
EnergySolutions Inc.		1,600		14
Tetra Tech*		1,500		45
				147

	Number of Shares		Value† (000's)
Fertilizers & Agricultural Chemicals (1.5%)
Monsanto Co.		189	$	16
Syngenta AG ADR		600		28
				44
Forest Products (0.5%)
Weyerhaeuser Co.		400		15
Gas Utilities (3.7%)
EQT Corp.		700		28
New Jersey Resources		400		15
ONEOK, Inc.		1,100		37
Questar Corp.		413		14
South Jersey Industries		500		17
				111
Heavy Electrical Equipment (4.4%)
ABB Ltd.		838		16
Alstom S.A.		400		28
Gamesa Corporacion Tecnologica		2,800		61
Vestas Wind Systems*		400		29
				134
Hypermarkets & Super Centers (0.5%)
Wal-Mart Stores		300		15
Independent Power Producers & Energy Traders (7.5%)
AES Corp.*		1,100		15
Calpine Corp.*		2,988		35
Constellation Energy Group		800		25
EDP Renovaveis*		3,400		34
Iberdrola Renovables		9,700		44
Magma Energy*		16,000		28
Ormat Technologies		1,300		47
				228
Industrial Conglomerates (1.1%)
McDermott International*		650		16
Siemens AG		200		17
				33

See Notes to Schedule of Investments

	Number of Shares		Value† (000's)
Industrial Gases (0.5%)
Praxair, Inc.		200	$	15
Industrial Machinery (5.5%)
Badger Meter		800		29
Danaher Corp.		300		18
Energy Recovery*		5,000		26
ESCO Technologies*		800		30
Kaydon Corp.		395		13
SPX Corp.		600		33
Valmont Industries		200		17
				166
IT Consulting & Other Services (0.6%)
Telvent GIT		700		19
Multi-Utilities (4.5%)
Gdf Suez		700		30
National Grid ADR		370		18
PG&E Corp.		400		16
Suez Environnement SA ADR		1,900		19
Veolia Environnement ADR		1,500		52
				135
Oil & Gas Exploration & Production (4.0%)
Denbury Resources*		1,400		21
EOG Resources		200		15
Range Resources		850		41
Southwestern Energy*		700		26
XTO Energy		500		19
				122
Oil & Gas Refining & Marketing (1.1%)
Clean Energy Fuels*		2,600		33
Oil & Gas Storage & Transportation (3.4%)
Enbridge Inc.		400		15
Spectra Energy		800		15
The Williams Companies		4,400		72
				102
Railroads (0.5%)
Norfolk Southern		300		14
Semiconductor Equipment (0.4%)
MEMC Electronic Materials*		800		13
Semiconductors (0.6%)
Cree, Inc.*		500		19
Specialized Finance (1.7%)
Climate Exchange*		2,200		33
IntercontinentalExchange Inc.*		200		19
				52

	Number of Shares		Value† (000's)
Specialized REITS (0.5%)
Plum Creek Timber Company		500	$	15
Specialty Chemicals (2.1%)
Nalco Holding		1,000		18
Rockwood Holdings*		2,331		47
				65
Steel (1.0%)
Allegheny Technologies		1,000		30
Systems Software (0.6%)
VMware Inc.*		500		18
Water Utilities (3.0%)
American Water Works		1,800		36
Aqua America		1,700		29
Companhia de Saneamento Basico do Estado de Sao Paulo		700		25
				90
Total Common Stocks (Cost $2,588)				2,997
Short-Term Investments (2.0%)
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $62)		62,467		62
Total Investments^##(101.0%) (Cost $2,650)				3,059
Liabilities, less cash, receivables and other assets [(1.0%)]				(30	)
Total Net Assets (100.0%)			$	3,029

See Notes to Schedule of Investments

Schedule of Investments Emerging Markets Equity Fund

TOP TEN EQUITY HOLDINGS

		Country	Industry
1	Petroleo Brasileiro ADR	Brazil	Oil, Gas & Consumable Fuels	3.5	%
2	China Mobile	China	Wireless Telecommunication Services	2.4	%
3	Samsung Electronics	Korea	Equipment	2.0	%
4	Vale SA ADR	Brazil	Metals & Mining	2.0	%
5	America Movil ADR	Mexico	Wireless Telecommunication Services	1.8	%
			Semiconductors & Semiconductor
6	Taiwan Semiconductor Manufacturing ADR	Taiwan, Province Of China	Equipment	1.8	%
7	Bank of China, H Shares	China	Commercial Banks	1.7	%
8	MTN Group	South Africa	Wireless Telecommunication Services	1.6	%
9	Industrial & Commercial Bank of China, H Shares	China	Commercial Banks	1.6	%
10	Elbit Systems	Israel	Aerospace & Defense	1.6	%

	Number of Shares		Value† (000's)
Common Stocks (79.6%)
Brazil (3.9%)
Cia Brasileira de Meios de Pagamento		4,830	$	42
Diagnosticos da America*		2,675		60
Multiplan Empreendimentos Imobiliarios		5,500		75
PDG Realty Empreendimentos E Participacoes		4,305		63
				240
Chile (1.1%)
Sociedad Quimica y Minera de Chile ADR, B Shares		1,870		65
China (16.5%)
Bank of China, H Shares		214,400		104
China Mobile		14,750		143
China Oilfield Services, H Shares		68,000		59
China South Locomotive & Rolling Stock, H Shares		78,600		47
China Vanke, B Shares		39,800		46
Chongqing Machinery & Electric, H Shares*		244,600		45
CNOOC Ltd.		35,000		46
GOME Electrical Appliances Holdings*		123,654		33
Industrial & Commercial Bank of China, H Shares		142,400		97
Inspur International		272,900		41
Maanshan Iron & Steel, H Shares*		108,900		67
NetEase.com, Inc. ADR*		700		29

	Number of Shares		Value† (000's)
Travelsky Technology, H Shares		61,200	$	40
Want Want China Holdings		72,300		38
Wasion Group Holdings		68,200		62
Zhaojin Mining Industry, H Shares		21,000		30
Zijin Mining Group, H Shares		48,400		41
ZTE Corp., H Shares		8,600		40
				1,008
Czech Republic (0.5%)
Telefonica O2 Czech Republic		1,090		30
Egypt (0.5%)
Eastern Tobacco		1,350		33
India (2.6%)
State Bank of India GDR		960		71
Sterlite Industries (India) ADR*		6,400		86
				157
Indonesia (2.0%)
PT Astra Agro Lestari Tbk		16,500		35
PT United Tractors Tbk		65,235		87
				122
Israel (5.3%)
Elbit Systems		1,460		95
Israel Chemicals		5,320		59
Makhteshim-Agan Industries		6,390		29
Mizrahi Tefahot Bank*		7,060		54
Teva Pharmaceutical Industries ADR		1,650		85
				322

	Number of Shares		Value† (000's)
Korea (10.7%)
Dongbu Insurance		1,490	$	45
Doosan Heavy Industries & Construction		1,285		65
HNK Machine Tool*		1,065		40
Hyundai Mobis		715		76
KB Financial Group*		1,485		61
LG Electronics		330		38
NHN Corp.*		285		39
Samsung Electronics		200		124
Samsung SDI		365		43
Taewoong Co.		830		54
Woongjin Thinkbig		4,170		67
				652
Malaysia (1.1%)
Top Glove		34,400		68
Mexico (3.7%)
America Movil ADR		2,450		111
Empresas ICA SAB de C.V.*		31,400		66
Fomento Economico Mexicano ADR, B Shares		1,340		49
				226
Nigeria (1.0%)
Guaranty Trust Bank		166,595		15
Guaranty Trust Bank GDR		9,280		46
				61
Philippines (2.1%)
Energy Development		651,200		60
International Container Terminal Services		158,000		70
				130
Poland (1.0%)
PBG SA*		755		59

See Notes to Schedule of Investments

	Number of Shares		Value† (000's)
Russia (4.0%)
Gazprom ADR		4,265	$	91
Magnit GDR		4,310		49
Mobile TeleSystems ADR		980		43
Rosneft Oil GDR*		9,035		58
				241
South Africa (6.2%)
ABSA Group		2,895		47
AngloGold Ashanti		980		37
BHP Billiton		3,010		77
Discovery Holdings		9,810		35
MTN Group		5,960		98
Raubex Group		12,425		41
Tiger Brands		2,230		45
				380
Sweden (1.0%)
Oriflame Cosmetics SDR		1,245		60
Taiwan, Province Of China (10.0%)
Chroma Ate		33,358		45
Chunghwa Telecom ADR		2,300		39
Hung Poo Real Estate Development		58,100		67
Powertech Technology		26,764		73
Simplo Technology		9,620		44
Taiwan Semiconductor Manufacturing ADR		60,238		108
TXC Corp.		42,945		52
Wistron Corp.		28,599		56
WPG Holdings		58,360		75
Yuanta Financial Holding		87,015		54
				613
Thailand (3.0%)
Banpu Public		4,500		53
Kasikornbank PCL		31,300		68
Thanachart Capital PCL		138,700		60
				181
Turkey (2.5%)
BIM Birlesik Magazalar		1,570		59
Turkcell Iletisim Hizmetleri ADR		2,700		43
Turkiye Garanti Bankasi*		14,410		53
				155
United Kingdom (0.9%)
Tullow Oil		3,060		54
Total Common Stocks (Cost $3,724)				4,857

	Number of Shares		Value† (000's)
Preferred Stocks (9.2%)
Brazil (9.2%)
Banco Do Estado do Rio Grande do Sul		16,900	$	93
Companhia de Bebidas das Americas ADR		710		53
Petroleo Brasileiro ADR		6,340		211
Refinaria de Petroleo Ipiranga*^{^^}		173		0
Ultrapar Participacoes ADR		2,070		76
Vale SA ADR		7,125		123
Total Preferred Stocks (Cost $409)				556
Participatory Notes (5.2%)
India (5.2%)
Bharat Heavy Electricals (issuer JP Morgan Int'l Derivatives), Expiration Date 4/29/2013*^µµ		1,005		48
Cairn India (issuer JP Morgan Int'l Derivatives), Expiration Date 1/15/2013*^µµ		14,495		78
Grasim Industry (issuer JP Morgan Int'l Derivatives), Expiration Date 3/10/2014*^µµ		905		50
Hero Honda Motors (issuer JP Morgan Int'l Derivatives), Expiration Date 11/13/2014*^µµ		1,340		41
Punjab National Bank (issuer JP Morgan Chase Int'l Derivatives), Expiration Date 10/17/2013*^µµ		3,156		44
Unitech Ltd. (issuer JP Morgan Int'l Derivatives), Expiration Date 9/9/2018*^µµ		28,525		58
Total Participatory Notes (Cost $234)				319
	Principal Amount
Convertible Bonds (0.1%)
Brazil (0.1%)
PDG Realty Empreendimentos E Participacoes, Floating Rate Guaranteed Notes, 1.00% due 10/15/09^{µ^^} (Cost $5)	$	10,000		8

	Number of Shares		Value† (000's)
Short-Term Investments (2.6%)
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $161)		161,305	$	161
Total Investments^##(96.7%) (Cost $4,533)				5,901
Cash, receivables and other assets, less liabilities (3.3%)				204
Total Net Assets (100.0%)			$	6,105

See Notes to Schedule of Investments

SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY EMERGING MARKETS EQUITY FUND

Industry	Investments at Value^† (000's omitted)		Percentage of Net Assets
Commercial Banks	$	709		11.6	%
Oil, Gas & Consumable Fuels		535		8.8	%
Metals & Mining		461		7.6	%
Wireless Telecommunication Services		438		7.2	%
Diversified Financial Services		373		6.1	%
Electronic Equipment, Instruments & Components		318		5.2	%
Semiconductors & Semiconductor Equipment		305		5.0	%
Construction & Engineering		231		3.8	%
Machinery		228		3.7	%
Real Estate Management & Development		188		3.1	%
Chemicals		153		2.5	%
Food Products		118		1.9	%
Household Durables		109		1.8	%
Food & Staples Retailing		108		1.8	%
Beverages		102		1.7	%
Computers & Peripherals		100		1.6	%
Aerospace & Defense		95		1.6	%
Pharmaceuticals		85		1.4	%
IT Services		82		1.3	%
Insurance		80		1.3	%
Auto Components		76		1.2	%
Transportation Infrastructure		70		1.1	%
Diversified Telecommunication Services		69		1.1	%
Internet Software & Services		68		1.1	%
Health Care Equipment & Supplies		68		1.1	%
Media		67		1.1	%
Personal Products		60		1.0	%
Health Care Providers & Services		60		1.0	%
Independent Power Producers & Energy Traders		60		1.0	%
Consumer Finance		60		1.0	%
Energy Equipment & Services		59		1.0	%
Integrated Oil & Gas		54		0.9	%
Industrial Conglomerates		45		0.7	%
Communications Equipment		40		0.7	%
Specialty Retail		33		0.5	%
Tobacco		33		0.5	%
Other Assets—Net		365		6.0	%
	$	6,105		100.0	%

See Notes to Schedule of Investments

Schedule of Investments Equity Income Fund

TOP TEN EQUITY HOLDINGS

1	Marsh & McLennan	2.2	%
2	Diageo PLC ADR	2.1	%
3	AvalonBay Communities	2.0	%
4	Total SA ADR	1.9	%
5	Potlatch Corp.	1.9	%
6	AMB Property	1.9	%
7	Norfolk Southern	1.9	%
8	FPL Group	1.9	%
9	Penn West Energy Trust	1.9	%
10	TECO Energy	1.9	%

	Number of Shares		Value† (000's)
Common Stocks (62.7%)
Beverages (2.1%)
Diageo PLC ADR^‡‡		22,200	$	1,377
Capital Markets (1.3%)
Apollo Investment		90,000		833
Electric Utilities (7.4%)
Duke Energy^ØØ		19,800		307
Exelon Corp.^‡‡ØØ		24,000		1,200
FPL Group^‡‡		22,000		1,236
Northeast Utilities		46,600		1,109
Progress Energy		27,000		1,067
				4,919
Energy Equipment & Services (1.0%)
Cathedral Energy Services Income Trust		231,200		691
Food & Staples Retailing (1.0%)
Safeway Inc.^‡‡		33,400		636
Food Products (1.1%)
Unilever NV		26,400		737
Insurance (2.2%)
Marsh & McLennan^‡‡		60,600		1,427
Media (1.8%)
World Wrestling Entertainment		82,200		1,172
Metals & Mining (2.3%)
Franco-Nevada Corp.		25,800		664
Royal Gold, Inc.^‡‡		22,500		893
				1,557
Multi-Utilities (4.7%)
NSTAR		34,000		1,076
TECO Energy		92,000		1,225
Xcel Energy^ØØ		42,000		830
				3,131
Mutual Funds (1.2%)
iShares iBoxx High Yield Corporate Bond Fund		9,850		811
Oil, Gas & Consumable Fuels (11.6%)
ARC Energy Trust		75,000		1,183
Canadian Oil Sands		2,000		50
Canadian Oil Sands Trust		46,000		1,157

	Number of Shares		Value† (000's)
Enbridge Energy Management*		24,713	$	1,041
Kinder Morgan Management*		13,500		639
Penn West Energy Trust		96,100		1,233
Spectra Energy^‡‡ØØ		58,100		1,093
Total SA ADR		22,400		1,283
				7,679
Pharmaceuticals (1.5%)
Johnson & Johnson^‡‡		16,000		967
Real Estate Investment Trusts (15.2%)
AMB Property		55,000		1,256
American Campus Communities^‡‡		45,800		1,191
AvalonBay Communities^‡‡		20,400		1,314
Digital Realty Trust^‡‡		17,000		741
GZI REIT		2,862,000		1,015
Health Care REIT^‡‡		13,500		577
Potlatch Corp.		44,000		1,280
Rayonier Inc.		14,500		623
Realty Income^‡‡		42,900		1,096
Ventas, Inc.^‡‡		25,500		1,000
				10,093
Road & Rail (1.9%)
Norfolk Southern^‡‡		27,000		1,239
Semiconductors & Semiconductor Equipment (1.6%)
Microchip Technology		40,000		1,062
Thrifts & Mortgage Finance (1.2%)
New York Community Bancorp		75,100		799
Tobacco (1.8%)
Philip Morris International^‡‡		26,400		1,207
Water Utilities (0.2%)
California Water Service Group		3,000		112
Wireless Telecommunication Services (1.6%)
China Mobile ADR		21,000		1,034
Total Common Stocks (Cost $40,077)				41,483

	Number of Shares		Value† (000's)
Convertible Preferred Stocks (4.3%)
Bunge Ltd.		13,200	$	1,181
Freeport-McMoRan Copper & Gold		6,300		602
Vale Capital II		18,000		1,071
Total Convertible Preferred Stocks (Cost $2,685)				2,854
	Principal Amount
Convertible Bonds (21.7%)
Allied Waste Industries, Inc., Senior Subordinated Debentures, 4.25%, due 4/15/34	$	1,405,000		1,405
Bill Barrett Corp., Senior Unsecured Notes, 5.00%, due 3/15/28		850,000		785
Carnival Corp., Guaranteed Notes, 0.50%, due 10/29/09		1,000,000		658
Covanta Holding Corp., Senior Unsecured Notes, 1.00%, due 2/1/27		1,000,000		895
Goldcorp, Inc., Senior Notes, 2.00%, due 8/1/14^ñ		500,000		523
Iconix Brand Group, Inc., Senior Subordinated Notes, 1.88%, due 6/30/12		1,000,000		915
Integra Lifesciences Holdings Corp., Guaranteed Notes, 2.38%, due 6/1/12^ñ		500,000		441

See Notes to Schedule of Investments

	Principal Amount		Value† (000's)
International Game Technology, Senior Unsecured Notes, 2.60%, due 12/15/36	$	825,000	$	825
Kinross Gold Corp., Senior Unsecured Notes, 1.75%, due 3/15/28		750,000		756
Pacific Rubiales Energy Corp., Subordinated Debentures, 8.00%, due 8/29/13		600,000		660
Patriot Coal Corp., Senior Unsecured Notes, 3.25%, due 5/31/13^ñ		1,000,000		755
Rayonier TRS Holdings, Inc., Guaranteed Notes, 3.75%, due 10/15/12		500,000		524
Rayonier TRS Holdings, Inc., Guaranteed Notes, 4.50%, due 8/15/15^ñ		250,000		271
Sino-Forest Corp., Guaranteed Notes, 5.00%, due 8/1/13^ñ		750,000		731
St. Mary Land & Exploration Co., Senior Unsecured Notes, 3.50%, due 4/1/27		1,095,000		1,024
SunPower Corp., Senior Unsecured Debentures, 0.75%, due 8/1/27		700,000		658
Trinidad Energy Services Income Trust, Unsecured Subordinated Debentures, 7.75%, due 7/31/12		650,000		572
Verisign, Inc., Junior Subordinated Debentures, 3.25%, due 8/15/37		1,150,000		949

	Principal Amount		Value† (000's)
Vornado Realty Trust, Guaranteed Notes, 3.63%, due 11/15/26	$	1,100,000	$	1,046
Total Convertible Bonds (Cost $13,669)				14,393
Corporate Debt Securities (0.4%)
Martin Marietta Materials, Inc., Floating Rate Senior Unsecured Notes, 0.64% due 10/30/09^µ (Cost $242)		250,000		248
	Number of Shares
Short-Term Investments (8.7%)
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $5,780)		5,780,444		5,780
Total Investments^##(97.8%) (Cost $62,453)				64,758
Cash, receivables and other assets, less liabilities^‡‡(2.2%)				1,414
Total Net Assets (100.0%)			$	66,172

See Notes to Schedule of Investments

Schedule of Investments Focus Fund

TOP TEN EQUITY HOLDINGS

1	J.P. Morgan Chase	5.5	%
2	Occidental Petroleum	5.2	%
3	XTO Energy	5.0	%
4	The Bank of New York Mellon	4.7	%
5	Covidien PLC	4.4	%
6	Rockwell Automation	4.1	%
7	Intel Corp.	3.9	%
8	Microsoft Corp.	3.8	%
9	Ingersoll-Rand PLC	3.8	%
10	Hewlett-Packard	3.7	%

	Number of Shares		Value† (000's)
Common Stocks (96.6%)
Beverages (3.0%)
PepsiCo, Inc.		300,000	$	17,001
Biotechnology (5.3%)
Amgen Inc.*		185,000		11,052
Genzyme Corp.*^È		350,000		19,498
				30,550
Capital Markets (4.7%)
The Bank of New York Mellon^È		910,000		26,945
Communications Equipment (5.0%)
Cisco Systems*		715,000		15,444
QUALCOMM Inc.		285,000		13,230
				28,674
Computers & Peripherals (5.5%)
Hewlett-Packard		480,000		21,547
IBM		85,000		10,034
				31,581
Diversified Financial Services (5.5%)
J.P. Morgan Chase		725,000		31,508
Electric Utilities (3.3%)
Exelon Corp.		380,000		19,008
Electrical Equipment (6.9%)
ABB Ltd.^È		850,000		16,295
Rockwell Automation		565,000		23,645
				39,940
Food & Staples Retailing (5.9%)
CVS Corp.		560,000		21,011
Wal-Mart Stores		250,000		12,718
				33,729
Food Products (0.8%)
Unilever NV		165,000		4,608
Health Care Equipment & Supplies (4.4%)
Covidien PLC		640,000		25,325
Hotels, Restaurants & Leisure (1.4%)
Brinker International		565,000		8,226
Household Products (2.6%)
Energizer Holdings*		225,000		14,722
Insurance (2.1%)
Willis Group Holdings		465,000		11,992

	Number of Shares		Value† (000's)
IT Services (1.7%)
Accenture Ltd.		290,000	$	9,570
Life Science Tools & Services (3.6%)
Thermo Fisher Scientific*		460,000		20,797
Machinery (3.8%)
Ingersoll-Rand PLC		700,000		21,623
Oil, Gas & Consumable Fuels (13.9%)
Cabot Oil & Gas		190,000		6,697
Occidental Petroleum		410,000		29,971
Range Resources^È		305,000		14,753
XTO Energy		745,000		28,757
				80,178
Pharmaceuticals (2.6%)
Merck & Co.^È		455,000		14,756
Semiconductors & Semiconductor Equipment (3.8%)
Intel Corp.		1,090,000		22,149
Software (3.8%)
Microsoft Corp.		890,000		21,939
Specialty Retail (7.0%)
PETsMART, Inc.^È		500,000		10,455
Tiffany & Co.^È		480,000		17,462
TJX Cos.^È		345,000		12,403
				40,320
Total Common Stocks (Cost $513,417)				555,141
Short-Term Investments (11.5%)
Neuberger Berman Securities Lending Quality Fund, LLC^‡		46,141,223		46,603
State Street Institutional Liquid Reserves Fund Institutional Class		19,597,443		19,597
Total Short-Term Investments (Cost $66,200)				66,200
Total Investments^##(108.1%) (Cost $579,617)				621,341
Liabilities, less cash, receivables and other assets [(8.1%)]				(46,446	)
Total Net Assets (100.0%)			$	574,895

See Notes to Schedule of Investments

Schedule of Investments Genesis Fund

TOP TEN EQUITY HOLDINGS

1	Church & Dwight	2.7	%
2	AptarGroup Inc.	2.6	%
3	Compass Minerals International	2.4	%
4	CLARCOR Inc.	2.0	%
5	Alberto-Culver Co.	1.8	%
6	MICROS Systems	1.7	%
7	Henry Schein	1.7	%
8	IDEXX Laboratories	1.7	%
9	Haemonetics Corp.	1.6	%
10	Southwestern Energy	1.6	%

	Number of Shares		Value† (000's)
Common Stocks (96.1%)
Aerospace & Defense (2.0%)
Alliant Techsystems*^{^}		1,746,962	$	135,005
Argon ST*		173,300		3,463
Teledyne Technologies*		851,400		28,743
				167,211
Air Freight & Logistics (1.0%)
Forward Air^{^}		2,043,600		47,166
Hub Group Class A*		1,862,500		40,845
				88,011
Auto Components (0.7%)
Gentex Corp.		3,948,014		57,602
Beverages (0.5%)
Boston Beer Company*^{^}		1,019,019		40,506
Building Products (0.4%)
Simpson Manufacturing		1,302,900		33,485
Capital Markets (0.9%)
Eaton Vance		1,070,300		30,578
Greenhill & Co.		585,200		46,348
				76,926
Chemicals (0.5%)
Intrepid Potash*		1,728,120		40,594
Commercial Banks (3.6%)
Bank of Hawaii		1,485,900		58,619
BOK Financial		1,089,894		49,307
Cullen/Frost Bankers		1,473,600		72,619
Glacier Bancorp		1,401,908		20,902
Westamerica Bancorp^{^}		2,121,843		109,126
				310,573
Commercial Services & Supplies (5.0%)
Copart, Inc.*		3,163,531		111,799
Healthcare Services Group^{^}		3,606,154		63,757
Knoll, Inc.		1,701,300		16,384
Ritchie Bros. Auctioneers^{^}		5,338,160		133,774
Rollins, Inc.		3,482,372		62,160
United Stationers*		923,375		42,189
				430,063

	Number of Shares		Value† (000's)
Construction & Engineering (0.7%)
Layne Christensen*^{^}		2,240,321	$	57,800
Containers & Packaging (2.6%)
AptarGroup Inc.^{^}		6,555,400		225,375
Diversified Consumer Services (2.3%)
Matthews International^{^}		3,518,900		122,599
Strayer Education		346,111		73,064
				195,663
Diversified Financial Services (0.3%)
Pico Holdings*		838,772		27,789
Electrical Equipment (0.5%)
Brady Corp.		1,420,289		42,083
Electronic Equipment, Instruments & Components (1.9%)
Rofin-Sinar Technologies*^{^}		3,423,150		77,843
Trimble Navigation*		3,409,242		86,799
				164,642
Energy Equipment & Services (3.3%)
CARBO Ceramics^{^}		2,217,200		95,450
NATCO Group*^{^}		1,974,328		82,132
National Oilwell Varco*		808,078		29,374
Natural Gas Services Group*		150,000		2,143
Oceaneering International*		1,237,700		64,571
Pason Systems		1,287,365		12,078
				285,748
Food & Staples Retailing (1.2%)
Ruddick Corp.^{^}		3,956,002		105,071
Food Products (1.0%)
Flowers Foods		1,323,500		31,460
J&J Snack Foods^{^}		1,270,946		55,540
				87,000
Gas Utilities (1.0%)
New Jersey Resources		1,366,400		50,215
Northwest Natural Gas		477,300		20,094
South Jersey Industries		432,200		14,976
				85,285

	Number of Shares		Value† (000's)
Health Care Equipment & Supplies (8.5%)
Abaxis, Inc.*		1,090,300	$	29,002
American Medical Systems Holdings*^{^}		7,874,765		120,012
DENTSPLY International		2,059,900		69,439
Haemonetics Corp.*^{^}		2,660,600		140,054
IDEXX Laboratories*		2,796,662		141,959
Immucor Inc.*		3,307,491		59,833
Integra LifeSciences Holdings*		114,392		3,865
Meridian Bioscience		624,800		15,058
Sirona Dental Systems*^{^}		2,805,726		74,183
Surmodics, Inc.*^{^}		2,032,430		46,522
Wright Medical Group*		1,850,194		30,047
				729,974
Health Care Providers & Services (5.1%)
AmSurg Corp.*^{^}		1,930,734		39,194
Henry Schein*		2,717,540		143,975
Landauer, Inc.^{^}		542,800		29,876
MWI Veterinary Supply*^{^}		1,168,629		43,485
Patterson Companies*		3,457,400		94,145
VCA Antech*		3,620,705		89,612
				440,287
Household Products (2.7%)
Church & Dwight^{^}		4,050,055		231,380
Industrial Conglomerates (0.6%)
Raven Industries^{^}		1,872,976		54,129
Insurance (4.6%)
Brown & Brown		4,269,355		84,832
Hanover Insurance Group		1,214,100		49,645
Harleysville Group		435,980		14,130
HCC Insurance Holdings		1,291,300		34,142
Infinity Property & Casualty		99,400		4,371

See Notes to Schedule of Investments

	Number of Shares		Value† (000's)
RenaissanceRe Holdings		1,480,553	$	80,616
RLI Corp.		984,407		52,183
Validus Holdings		1,402,100		35,978
Zenith National Insurance		1,410,700		38,032
				393,929
IT Services (1.6%)
ManTech International*^{^}		2,426,100		128,195
NCI, Inc. Class A*		353,099		10,364
				138,559
Life Science Tools & Services (4.3%)
Charles River Laboratories International*		1,474,900		50,869
Dionex Corp.*^{^}		2,041,532		122,778
ICON PLC*^{^}		3,798,400		82,121
Pharmaceutical Product Development		4,292,900		86,330
Techne Corp.		352,500		21,739
				363,837
Machinery (13.0%)
Astec Industries*^{^}		1,949,622		49,384
Bucyrus International^{^}		4,385,700		130,913
Chart Industries*^{^}		2,188,928		40,845
CLARCOR Inc.^{^}		5,421,622		173,817
Donaldson Co.		2,632,100		98,888
Graco Inc.		1,629,417		40,915
Joy Global		1,890,200		73,434
Lincoln Electric Holdings		88,347		4,021
Lindsay Corp.^{^}		1,342,250		55,717
Nordson Corp.^{^}		2,405,430		128,883
Robbins & Myers^{^}		1,787,500		41,506
Titan International^{^}		2,200,047		18,282
Toro Co.		1,296,994		49,195
Valmont Industries		1,102,304		90,753
Wabtec Corp.^{^}		3,002,100		112,429
				1,108,982
Media (1.0%)
Arbitron Inc.		1,300,567		23,826
Interactive Data		2,678,700		62,173
				85,999
Metals & Mining (2.4%)
Compass Minerals International^{^}		3,802,000		202,190
Mutual Funds (1.0%)
SPDR Gold Trust*		900,000		84,060
Office Electronics (1.1%)
Zebra Technologies*^{^}		3,874,247		96,817

	Number of Shares		Value† (000's)
Oil, Gas & Consumable Fuels (10.7%)
Alpha Natural Resources*		3,331,674	$	107,646
Arena Resources*^{^}		3,283,628		100,413
Cabot Oil & Gas		2,981,700		105,105
Carrizo Oil & Gas*^{^}		1,681,227		32,498
Concho Resources*		1,225,600		39,942
Denbury Resources*		6,346,277		96,590
Encore Acquisition*		1,615,200		60,877
Petrobank Energy and Resources*		3,197,000		118,992
Petrohawk Energy*		2,585,830		55,673
Southwestern Energy*		3,681,700		135,708
St. Mary Land & Exploration		1,237,600		32,549
XTO Energy		828,225		31,970
				917,963
Personal Products (2.4%)
Alberto-Culver Co.^{^}		5,742,450		151,543
Chattem, Inc.*		823,995		50,462
				202,005
Professional Services (0.4%)
Exponent, Inc.*^{^}		1,164,735		32,939
Road & Rail (0.1%)
Landstar System		120,400		4,198
Software (5.4%)
ANSYS, Inc.*		503,200		17,683
Blackbaud, Inc.^{^}		4,369,503		84,157
FactSet Research Systems		1,304,600		71,805
Jack Henry & Associates		1,119,600		26,098
MICROS Systems*^{^}		5,249,242		146,296
Solera Holdings*^{^}		4,480,005		118,003
				464,042
Specialty Retail (0.8%)
Hibbett Sports*^{^}		1,864,063		32,752
Sally Beauty Holdings*		620,208		4,410
Tractor Supply*		631,800		29,732
				66,894
Thrifts & Mortgage Finance (0.5%)
Brookline Bancorp		2,426,354		25,331
Oritani Financial		1,170,000		15,608
				40,939

	Number of Shares		Value† (000's)
Trading Companies & Distributors (0.4%)
MSC Industrial Direct		810,900	$	32,039
Water Utilities (0.1%)
American States Water		149,500		4,936
Total Common Stocks (Cost $6,432,709)				8,217,525
Short-Term Investments (3.9%)
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $335,213)		335,212,934		335,213
Total Investments^##(100.0%) (Cost $6,767,922)				8,552,738
Liabilities, less cash, receivables and other assets [(0.0%)]				(876	)
Total Net Assets (100.0%)			$	8,551,862

See Notes to Schedule of Investments

Schedule of Investments Guardian Fund

TOP TEN EQUITY HOLDINGS

1	Scripps Networks Interactive	5.2	%
2	Altera Corp.	5.0	%
3	Washington Post	5.0	%
4	Intuit Inc.	4.9	%
5	Danaher Corp.	4.7	%
6	National Instruments	4.5	%
7	3M Co.	4.2	%
8	Newfield Exploration	4.0	%
9	Charles Schwab	3.9	%
10	Comcast Corp. Class A Special	3.9	%

	Number of Shares		Value† (000's)
Common Stocks (96.5%)
Automobiles (2.0%)
Toyota Motor ADR^È		225,860	$	19,241
Biotechnology (3.6%)
Genzyme Corp.*		606,540		33,790
Capital Markets (6.4%)
Charles Schwab		2,043,255		36,901
The Bank of New York Mellon		786,913		23,301
				60,202
Commercial Services & Supplies (6.2%)
Republic Services		1,031,050		26,405
Waste Management		1,072,725		32,107
				58,512
Diversified Financial Services (1.6%)
IntercontinentalExchange Inc.*		157,754		14,797
Electronic Equipment, Instruments & Components (8.1%)
Anixter International*		978,955		34,342
National Instruments		1,664,254		42,655
				76,997
Energy Equipment & Services (3.7%)
Schlumberger Ltd.		615,600		34,597
Health Care Providers & Services (1.8%)
UnitedHealth Group		624,675		17,491
Industrial Conglomerates (4.2%)
3M Co.		547,300		39,460
Industrial Gases (3.1%)
Praxair, Inc.		384,896		29,491
Insurance (5.3%)
Markel Corp.*		63,550		20,899
Progressive Corp.*		1,762,550		29,117
				50,016
Internet Software & Services (3.1%)
Yahoo! Inc.*		2,009,500		29,359
Life Science Tools & Services (2.1%)
Millipore Corp.*		303,290		20,087

	Number of Shares		Value† (000's)
Machinery (4.7%)
Danaher Corp.		734,240	$	44,576
Media (14.0%)
Comcast Corp. Class A Special		2,511,125		36,637
Scripps Networks Interactive		1,521,735		49,411
Washington Post		108,128		46,966
				133,014
Multi-Utilities (2.6%)
National Grid		2,234,232		21,551
National Grid ADR		67,218		3,232
				24,783
Oil, Gas & Consumable Fuels (8.9%)
BG Group PLC		1,934,950		32,035
Cimarex Energy		368,175		14,374
Newfield Exploration*		978,800		37,870
				84,279
Road & Rail (3.2%)
Canadian National Railway		629,565		30,389
Semiconductors & Semiconductor Equipment (7.0%)
Altera Corp.		2,462,669		47,308
Texas Instruments		787,800		19,372
				66,680
Software (4.9%)
Intuit Inc.*		1,674,752		46,508
Total Common Stocks (Cost $912,709)				914,269
Short-Term Investments (3.4%)
Neuberger Berman Securities Lending Quality Fund, LLC^‡		3,129,168		3,160
State Street Institutional Liquid Reserves Fund Institutional Class^ØØ		28,878,874		28,879
Total Short-Term Investments (Cost $32,039)				32,039
Total Investments^##(99.9%) (Cost $944,748)				946,308
Cash, receivables and other assets, less liabilities (0.1%)				1,410
Total Net Assets (100.0%)			$	947,718

See Notes to Schedule of Investments

Schedule of Investments International Fund

TOP TEN EQUITY HOLDINGS

		Country	Industry
1	Vodafone Group	United Kingdom	Wireless Telecommunication Services	2.8	%
2	Unilever NV	Netherlands	Food Products	2.0	%
3	MacDonald, Dettwiler	Canada	Software	2.0	%
4	HSBC Holdings	United Kingdom	Commercial Banks	1.9	%
5	Deutsche Boerse	Germany	Diversified Financial Services	1.7	%
6	Banco Santander	Spain	Commercial Banks	1.6	%
7	Nihon Kohden	Japan	Health Care Equipment & Supplies	1.6	%
8	Chemring Group	United Kingdom	Aerospace & Defense	1.5	%
9	Ipsen SA	France	Pharmaceuticals	1.5	%
10	Amlin PLC	United Kingdom	Insurance	1.5	%

	Number of Shares		Value† (000's)
Common Stocks (92.1%)
Australia (0.8%)
BHP Billiton ADR^È		54,100	$	3,370
Austria (0.6%)
Schoeller-Bleckmann Oilfield Equipment		55,300		2,258
Belgium (2.8%)
Anheuser-Busch InBev		75,888		3,276
Colruyt SA		15,630		3,585
Fortis*		192,640		824
Telenet Group Holding		162,840		3,877
				11,562
Brazil (0.5%)
Vivo Participacoes ADR		91,500		2,083
Canada (4.4%)
Barrick Gold		72,100		2,488
Cameco Corp.		134,520		3,580
MacDonald, Dettwiler*		289,990		8,079
Talisman Energy		243,820		3,920
				18,067
Chile (0.8%)
Sociedad Quimica y Minera de Chile ADR, B Shares		97,480		3,395
Czech Republic (0.5%)
Telefonica O2 Czech Republic		74,300		2,062
Denmark (1.3%)
Novo Nordisk Class B		83,490		5,089
France (7.1%)
Arkema		102,192		3,333
France Telecom^È		119,560		3,041
Ipsen SA		124,704		6,168
Ipsos^Ñ		181,723		5,060
Sodexo		54,805		3,157

	Number of Shares		Value† (000's)
Teleperformance		138,930	$	4,773
Thales SA		79,485		3,646
				29,178
Germany (9.6%)
Deutsche Boerse		89,365		6,822
Fresenius Medical Care		76,910		3,456
GEA Group		202,280		3,584
Gerresheimer AG		181,277		5,109
Linde AG		54,770		5,504
SAP AG		86,875		4,236
SMA Solar Technology^È		24,715		1,831
Tognum AG		243,226		3,707
Wincor Nixdorf		89,952		5,099
				39,348
Greece (0.0%)
Titan Cement		4,878		141
Hong Kong (1.1%)
China Mobile ADR		93,465		4,600
India (0.8%)
State Bank of India GDR		45,586		3,373
Ireland (1.0%)
DCC PLC		173,225		4,248
Israel (0.9%)
Makhteshim-Agan Industries		827,930		3,794
Italy (2.4%)
Lottomatica SPA		128,375		2,888
Milano Assicurazioni		462,346		1,521
UBI Banca		348,395		5,264
				9,673
Japan (12.1%)
Circle K Sunkus		254,900		4,145
Hisamitsu Pharmaceutical		118,200		4,560
Jupiter Telecommunications		5,296		4,610
KDDI Corp.		534		3,036

	Number of Shares		Value† (000's)
Kenedix Realty Investment		635	$	2,382
Nihon Kohden		398,800		6,536
Nintendo Co. ADR		131,630		4,416
NSD Co.		118,400		1,256
Sankyo Co.		79,500		5,006
Seven Bank		1,809		4,590
Sundrug Co.		167,400		4,300
Toyota Motor ADR		33,420		2,847
Unicharm Petcare^È		56,700		2,035
				49,719
Korea (1.7%)
Hyundai Mobis		40,905		4,340
Samsung SDI		23,375		2,770
				7,110
Netherlands (9.7%)
ArcelorMittal		87,500		3,132
Fugro NV		86,537		4,658
Koninklijke Ahold		454,370		5,323
Koninklijke DSM		81,379		2,966
Nutreco Holding		105,400		4,744
Sligro Food Group^Ñ		171,181		4,810
TNT NV		238,036		5,873
Unilever NV^È		296,237		8,279
				39,785
Norway (1.8%)
DnB NOR*		413,280		4,224
Prosafe ASA		636,435		3,092
				7,316
Singapore (0.7%)
United Overseas Bank		247,000		2,863
Spain (1.6%)
Banco Santander		427,350		6,577
Sweden (1.5%)
Svenska Handelsbanken, A Shares		151,620		3,972
Swedbank AB, A Shares*		192,000		2,010
				5,982

See Notes to Schedule of Investments

	Number of Shares		Value† (000's)
Switzerland (7.3%)
Barry Callebaut		6,411	$	3,475
Bucher Industries		16,428		1,921
Credit Suisse Group		61,945		3,156
Givaudan SA		4,475		3,216
Nestle SA		123,155		5,115
Nobel Biocare Holding		79,485		2,428
Roche Holding		21,810		3,466
SGS SA		2,442		3,019
Sulzer AG		52,449		4,057
				29,853
United Kingdom (21.1%)
Amdocs Ltd.*		90,800		2,208
Amlin PLC		1,016,625		6,110
Antofagasta PLC		164,900		2,058
Balfour Beatty		438,830		2,405
Barclays PLC*		859,655		5,322
BP PLC		353,100		3,058
Cairn Energy*		92,172		3,762
Chemring Group		185,238		6,300
Croda International		272,515		2,786
Diageo PLC		306,465		4,760
Experian Group		677,267		5,706
HSBC Holdings^È		750,800		7,948
Informa PLC		1,049,676		4,860
Reed Elsevier		235,880		1,716
RPS Group		1,397,851		4,551
Smith & Nephew		464,292		3,961
Tullow Oil		194,801		3,415
Vodafone Group		5,401,649		11,678
Willis Group Holdings		153,600		3,961
				86,565
Total Common Stocks (Cost $353,064)				378,011
Preferred Stocks (2.1%)
Brazil (2.1%)
Petroleo Brasileiro ADR		132,625		4,403
Refinaria de Petroleo Ipiranga*^{^^}		19,056		10
Ultrapar Participacoes		109,290		3,998
Total Preferred Stocks (Cost $5,603)				8,411
Rights (0.0%)
Belgium (0.0%)
Anheuser-Busch InBev VVPR Strip*		177,256		1
Fortis*		192,640		0
Fortis VVPR Strip*		192,640		0
Total Rights (Cost $0)				1

	Number of Shares		Value† (000's)
Warrants (0.0%)
Italy (0.0%)
UBI Banca* (Cost $0)		165,350	$	17
Short-Term Investments (7.8%)
Neuberger Berman Securities Lending Quality Fund, LLC^‡		15,429,775		15,584
State Street Institutional Liquid Reserves Fund Institutional Class		16,420,160		16,420
Total Short-Term Investments (Cost $32,004)				32,004
Total Investments^##(102.0%) (Cost $390,671)				418,444
Liabilities, less cash, receivables and other assets [(2.0%)]				(8,186	)
Total Net Assets (100.0%)			$	410,258

See Notes to Schedule of Investments

SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY INTERNATIONAL FUND

Industry	Investments at Value^†(000's omitted)		Percentage of Net Assets
Commercial Banks	$	42,188		10.3	%
Chemicals		24,994		6.1	%
Food Products		23,648		5.8	%
Food & Staples Retailing		22,163		5.4	%
Oil, Gas & Consumable Fuels		22,138		5.4	%
Wireless Telecommunication Services		21,397		5.2	%
Software		20,195		4.9	%
Pharmaceuticals		19,283		4.7	%
Media		16,246		4.0	%
Professional Services		13,498		3.3	%
Health Care Equipment & Supplies		12,925		3.2	%
Insurance		11,592		2.8	%
Metals & Mining		11,048		2.7	%
Energy Equipment & Services		10,008		2.4	%
Aerospace & Defense		9,946		2.4	%
Machinery		9,562		2.3	%
Diversified Telecommunication Services		8,980		2.2	%
Beverages		8,037		2.0	%
Diversified Financial Services		7,646		1.9	%
Hotels, Restaurants & Leisure		6,045		1.5	%
Air Freight & Logistics		5,873		1.4	%
Electrical Equipment		5,538		1.3	%
Life Science Tools & Services		5,109		1.2	%
Computers & Peripherals		5,099		1.2	%
Leisure Equipment & Products		5,006		1.2	%
Commercial Services & Supplies		4,551		1.1	%
Auto Components		4,340		1.1	%
Industrial Conglomerates		4,248		1.0	%
Specialty Retail		3,998		1.0	%
Banking		3,972		1.0	%
Health Care Providers & Services		3,456		0.8	%
Capital Markets		3,156		0.8	%
Automobiles		2,847		0.7	%
Electronic Equipment, Instruments & Components		2,770		0.7	%
Construction & Engineering		2,405		0.6	%
Real Estate Investment Trusts		2,382		0.6	%
Construction Materials		141		0.0	%
Consumer Discretionary		10		0.0	%
Other Assets-Net		23,818		5.8	%
	$	410,258		100.0	%

See Notes to Schedule of Investments

Schedule of Investments International Institutional Fund

TOP TEN EQUITY HOLDINGS

		Country	Industry
1	Vodafone Group	United Kingdom	Wireless Telecommunication Services	2.8	%
2	Unilever NV	Netherlands	Food Products	2.0	%
3	MacDonald, Dettwiler	Canada	Software	2.0	%
4	HSBC Holdings	United Kingdom	Commercial Banks	2.0	%
5	Deutsche Boerse	Germany	Diversified Financial Services	1.7	%
6	Banco Santander	Spain	Commercial Banks	1.6	%
7	Nihon Kohden	Japan	Health Care Equipment & Supplies	1.6	%
8	Chemring Group	United Kingdom	Aerospace & Defense	1.6	%
9	Ipsen SA	France	Pharmaceuticals	1.5	%
10	Amlin PLC	United Kingdom	Insurance	1.5	%

	Number of Shares		Value† (000's)
Common Stocks (93.4%)
Australia (0.8%)
BHP Billiton ADR^È		29,900	$	1,863
Austria (0.6%)
Schoeller-Bleckmann Oilfield Equipment		31,300		1,278
Belgium (2.7%)
Anheuser-Busch InBev		42,003		1,813
Colruyt SA		8,650		1,984
Telenet Group Holding		90,125		2,146
				5,943
Brazil (0.5%)
Vivo Participacoes ADR		50,600		1,152
Canada (4.5%)
Barrick Gold		39,900		1,377
Cameco Corp.		74,410		1,980
MacDonald, Dettwiler*		160,509		4,472
Talisman Energy		134,940		2,169
				9,998
Chile (0.9%)
Sociedad Quimica y Minera de Chile ADR, B Shares		54,005		1,881
Czech Republic (0.5%)
Telefonica O2 Czech Republic		41,400		1,149
Denmark (1.3%)
Novo Nordisk Class B		46,210		2,817
France (7.2%)
Arkema		56,560		1,845
France Telecom^È		66,170		1,683
Ipsen SA		69,015		3,413
Ipsos		100,575		2,801
Sodexo		30,330		1,747
Teleperformance		76,890		2,641
Thales SA		43,990		2,018
				16,148

	Number of Shares		Value† (000's)
Germany (9.7%)
Deutsche Boerse		48,425	$	3,697
Fresenius Medical Care		42,565		1,912
GEA Group		111,950		1,984
Gerresheimer AG		100,325		2,828
Linde AG		30,310		3,046
SAP AG		48,105		2,345
SMA Solar Technology		13,680		1,014
Tognum AG		134,615		2,051
Wincor Nixdorf		49,785		2,822
				21,699
Greece (0.0%)
Titan Cement		2,760		80
Hong Kong (1.1%)
China Mobile ADR		51,770		2,548
India (0.8%)
State Bank of India GDR		25,230		1,867
Ireland (1.1%)
DCC PLC		95,870		2,351
Israel (0.9%)
Makhteshim-Agan Industries		458,215		2,099
Italy (2.4%)
Lottomatica SPA^È		71,050		1,598
Milano Assicurazioni		260,505		857
UBI Banca		195,295		2,951
				5,406
Japan (12.4%)
Circle K Sunkus		144,800		2,354
Hisamitsu Pharmaceutical		65,400		2,523
Jupiter Telecommunications		2,933		2,553
KDDI Corp.		295		1,677
Kenedix Realty Investment		350		1,313
Nihon Kohden		220,700		3,617
Nintendo Co. ADR		72,775		2,442
NSD Co.		67,100		712

	Number of Shares		Value† (000's)
Sankyo Co.		44,000	$	2,771
Seven Bank		1,001		2,540
Sundrug Co.		95,300		2,448
Takuma Co.*		15,000		40
Toyota Motor ADR		18,470		1,574
Unicharm Petcare		32,600		1,170
				27,734
Korea (1.8%)
Hyundai Mobis		22,639		2,402
Samsung SDI		12,940		1,533
				3,935
Netherlands (9.9%)
ArcelorMittal		48,425		1,734
Fugro NV		47,895		2,578
Koninklijke Ahold		254,346		2,979
Koninklijke DSM		45,042		1,642
Nutreco Holding		58,336		2,626
Sligro Food Group		94,741		2,662
TNT NV		131,767		3,251
Unilever NV^È		163,952		4,582
				22,054
Norway (1.8%)
DnB NOR*		228,715		2,337
Prosafe ASA		352,285		1,712
				4,049
Singapore (0.7%)
United Overseas Bank		137,000		1,588
Spain (1.6%)
Banco Santander		235,325		3,622
Sweden (1.5%)
Svenska Handelsbanken, A Shares		83,915		2,198
Swedbank AB, A Shares*		109,110		1,142
				3,340
Switzerland (7.4%)
Barry Callebaut		3,550		1,924
Bucher Industries		9,197		1,075
Credit Suisse Group		34,120		1,738
Givaudan SA		2,475		1,779

See Notes to Schedule of Investments

	Number of Shares		Value† (000's)
Nestle SA		69,985	$	2,907
Nobel Biocare Holding		43,990		1,344
Roche Holding		12,070		1,918
SGS SA		1,361		1,683
Sulzer AG		29,165		2,256
				16,624
United Kingdom (21.3%)
Amdocs Ltd.*		50,300		1,223
Amlin PLC		562,649		3,382
Antofagasta PLC		93,400		1,166
Balfour Beatty		244,980		1,343
Barclays PLC*		475,775		2,945
BP PLC		200,000		1,732
Cairn Energy*		51,015		2,082
Chemring Group		102,518		3,486
Croda International		150,820		1,542
Diageo PLC		171,107		2,657
Experian Group		374,836		3,158
GlaxoSmithKline PLC		1,016		20
HSBC Holdings		414,000		4,383
Informa PLC		580,938		2,690
Reed Elsevier		134,700		980
RPS Group		773,639		2,519
Smith & Nephew		256,962		2,192
Tullow Oil		107,814		1,890
Vodafone Group		2,871,496		6,208
Willis Group Holdings		85,000		2,192
				47,790
Total Common Stocks (Cost $205,058)				209,015
Preferred Stocks (2.1%)
Brazil (2.1%)
Petroleo Brasileiro ADR		73,400		2,437
Ultrapar Participacoes ADR		61,030		2,213
Total Preferred Stocks (Cost $3,636)				4,650
Rights (0.0%)
Belgium (0.0%)
Anheuser-Busch InBev VVPR Strip*		101,696		1
Fortis VVPR Strip*		77,074		0
Total Rights (Cost $0)				1
Warrants (0.0%)
Italy (0.0%)
UBI Banca* (Cost $0)		89,730		9

	Number of Shares		Value† (000's)
Short-Term Investments (6.5%)
Neuberger Berman Securities Lending Quality Fund, LLC^‡		4,502,766	$	4,548
State Street Institutional Liquid Reserves Fund Institutional Class		10,154,371		10,154
Total Short-Term Investments (Cost $14,702)				14,702
Total Investments^##(102.0%) (Cost $223,396)				228,377
Liabilities, less cash, receivables and other assets [(2.0%)]				(4,583	)
Total Net Assets (100.0%)			$	223,794

See Notes to Schedule of Investments

SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY INTERNATIONAL INSTITUTIONAL FUND

Industry	Investments at Value^†(000's omitted)		Percentage of Net Assets
Commercial Banks	$	25,582		11.4	%
Oil, Gas & Consumable Fuels		14,503		6.5	%
Chemicals		13,834		6.2	%
Food Products		13,209		5.9	%
Food & Staples Retailing		12,427		5.6	%
Wireless Telecommunication Services		11,585		5.2	%
Software		11,194		5.0	%
Pharmaceuticals		10,691		4.8	%
Media		9,024		4.0	%
Professional Services		7,482		3.3	%
Health Care Equipment & Supplies		7,153		3.2	%
Insurance		6,431		2.9	%
Metals & Mining		6,140		2.7	%
Energy Equipment & Services		5,568		2.5	%
Aerospace & Defense		5,504		2.5	%
Machinery		5,355		2.4	%
Diversified Telecommunication Services		4,978		2.2	%
Beverages		4,471		2.0	%
Diversified Financial Services		3,697		1.6	%
Hotels, Restaurants & Leisure		3,345		1.5	%
Air Freight & Logistics		3,251		1.4	%
Electrical Equipment		3,065		1.4	%
Life Science Tools & Services		2,828		1.3	%
Computers & Peripherals		2,822		1.3	%
Leisure Equipment & Products		2,771		1.2	%
Commercial Services & Supplies		2,519		1.1	%
Auto Components		2,402		1.1	%
Industrial Conglomerates		2,351		1.0	%
Health Care Providers & Services		1,912		0.9	%
Capital Markets		1,738		0.8	%
Automobiles		1,574		0.7	%
Electronic Equipment, Instruments & Components		1,533		0.7	%
Construction & Engineering		1,343		0.6	%
Real Estate Investment Trusts		1,313		0.6	%
Construction Materials		80		0.0	%
Other Assets-Net		10,119		4.5	%
	$	223,794		100.0	%

See Notes to Schedule of Investments

Schedule of Investments International Large Cap Fund

TOP TEN EQUITY HOLDINGS

		Country	Industry
1	Vodafone Group	United Kingdom	Wireless Telecommunication Services	3.3	%
2	HSBC Holdings	United Kingdom	Commercial Banks	2.4	%
3	Unilever NV	Netherlands	Food Products	2.3	%
4	Deutsche Boerse	Germany	Diversified Financial Services	2.0	%
5	Banco Santander	Spain	Commercial Banks	1.8	%
6	Ipsen SA	France	Pharmaceuticals	1.7	%
7	Informa PLC	United Kingdom	Media	1.7	%
8	Novo Nordisk Class B	Denmark	Pharmaceuticals	1.7	%
9	Amlin PLC	United Kingdom	Insurance	1.7	%
10	Barclays PLC	United Kingdom	Commercial Banks	1.6	%

	Number of Shares		Value† (000's)
Common Stocks (90.7%)
Australia (1.1%)
BHP Billiton ADR^È		17,800	$	1,109
Belgium (2.4%)
Anheuser-Busch InBev		24,586		1,061
Colruyt SA		5,735		1,316
				2,377
Brazil (0.8%)
Vivo Participacoes ADR		33,600		765
Canada (2.9%)
Barrick Gold		17,600		607
Cameco Corp.		42,820		1,139
Talisman Energy		71,985		1,157
				2,903
Chile (1.2%)
Sociedad Quimica y Minera de Chile ADR, B Shares		35,645		1,242
Czech Republic (0.8%)
Telefonica O2 Czech Republic		27,480		763
Denmark (1.7%)
Novo Nordisk Class B		28,550		1,740
France (4.8%)
France Telecom^È		39,020		992
Ipsen SA		35,715		1,766
Sodexo		17,285		996
Thales SA		22,865		1,049
				4,803
Germany (10.2%)
Deutsche Boerse		25,980		1,983
Fresenius Medical Care		23,160		1,041
GEA Group		60,365		1,070
Linde AG		16,155		1,623
SAP AG		26,885		1,311
Siemens AG		8,620		747

	Number of Shares		Value† (000's)
Tognum AG		71,525	$	1,090
Wincor Nixdorf		25,930		1,470
				10,335
Hong Kong (1.3%)
China Mobile ADR		27,515		1,354
India (1.1%)
State Bank of India GDR		15,085		1,116
Israel (1.3%)
Makhteshim-Agan Industries		281,135		1,288
Italy (2.9%)
Lottomatica SPA		42,220		950
Milano Assicurazioni		136,860		450
UBI Banca		100,270		1,515
				2,915
Japan (9.5%)
Hisamitsu Pharmaceutical		36,100		1,393
Hitachi Construction Machinery		42,600		865
Jupiter Telecommunications		1,668		1,452
KDDI Corp.		175		995
Nintendo Co.		4,800		1,298
Sankyo Co.		24,720		1,557
Seven Bank		442		1,121
Toyota Motor ADR		11,095		945
				9,626
Korea (2.0%)
Hyundai Mobis		12,470		1,323
Samsung SDI		5,665		671
				1,994
Netherlands (7.5%)
Fugro NV		26,521		1,428
Koninklijke Ahold		133,170		1,560
Koninklijke DSM		19,831		723
TNT NV		65,238		1,610
Unilever NV^È		82,709		2,311
				7,632

	Number of Shares		Value† (000's)
Norway (1.0%)
DnB NOR*		99,950	$	1,022
Singapore (0.9%)
United Overseas Bank		82,000		951
Spain (1.9%)
Banco Santander		121,500		1,870
Sweden (2.0%)
Svenska Handelsbanken, A Shares		49,510		1,297
Swedbank AB, A Shares*		70,640		739
				2,036
Switzerland (7.8%)
Credit Suisse Group		20,130		1,026
Givaudan SA		1,435		1,031
Nestle SA		36,245		1,505
Nobel Biocare Holding		29,100		889
Novartis AG		24,549		1,138
Roche Holding		8,035		1,277
SGS SA		820		1,014
				7,880
Taiwan, Province Of China (0.7%)
Taiwan Semiconductor Manufacturing ADR		68,334		731
United Kingdom (24.9%)
Amdocs Ltd.*		33,600		817
Amlin PLC		283,560		1,704
Antofagasta PLC		60,400		754
ArcelorMittal		28,740		1,029
BAE Systems		194,966		991
Barclays PLC*		262,370		1,624
BP PLC		172,600		1,495
Cairn Energy*		23,285		950
Diageo PLC		87,650		1,361
Experian Group		181,369		1,528
HSBC Holdings		228,800		2,422
Informa PLC		380,953		1,764
Reed Elsevier		85,800		624
Smith & Nephew		143,273		1,222
Tesco PLC		229,053		1,402
Tullow Oil		59,389		1,041

See Notes to Schedule of Investments

	Number of Shares		Value† (000's)
Vodafone Group		1,537,787	$	3,325
Willis Group Holdings		44,900		1,158
				25,211
Total Common Stocks (Cost $86,221)				91,663
Preferred Stocks (1.3%)
Brazil (1.3%)
Petroleo Brasileiro ADR (Cost $1,260)		40,861		1,357
Rights (0.0%)
Belgium (0.0%)
Anheuser-Busch InBev VVPR Strip*		58,520		0
Fortis VVPR Strip*		23,964		0
Total Rights (Cost $0)				0
Warrants (0.0%)
Italy (0.0%)
UBI Banca* (Cost $0)		48,665		5
Short-Term Investments (10.3%)
Neuberger Berman Securities Lending Quality Fund, LLC^‡		2,310,165		2,333
State Street Institutional Liquid Reserves Fund Institutional Class		8,121,357		8,121
Total Short-Term Investments (Cost $10,454)				10,454
Total Investments^##(102.3%) (Cost $97,935)				103,479
Liabilities, less cash, receivables and other assets [(2.3%)]				(2,366	)
Total Net Assets (100.0%)			$	101,113

See Notes to Schedule of Investments

SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY INTERNATIONAL LARGE CAP FUND

Industry	Investments at Value^†(000's omitted)		Percentage of Net Assets
Commercial Banks	$	12,943		12.8	%
Pharmaceuticals		7,314		7.2	%
Oil, Gas & Consumable Fuels		7,138		7.1	%
Wireless Telecommunication Services		6,439		6.4	%
Chemicals		5,907		5.9	%
Food & Staples Retailing		4,278		4.2	%
Media		3,840		3.8	%
Food Products		3,816		3.8	%
Metals & Mining		3,499		3.5	%
Software		3,426		3.4	%
Insurance		3,312		3.3	%
Professional Services		2,542		2.5	%
Beverages		2,422		2.4	%
Health Care Equipment & Supplies		2,111		2.1	%
Aerospace & Defense		2,040		2.0	%
Diversified Financial Services		1,983		2.0	%
Hotels, Restaurants & Leisure		1,946		1.9	%
Machinery		1,935		1.9	%
Diversified Telecommunication Services		1,755		1.7	%
Air Freight & Logistics		1,610		1.6	%
Leisure Equipment & Products		1,557		1.5	%
Computers & Peripherals		1,470		1.5	%
Energy Equipment & Services		1,428		1.4	%
Auto Components		1,323		1.3	%
Electrical Equipment		1,090		1.1	%
Health Care Providers & Services		1,041		1.0	%
Capital Markets		1,026		1.0	%
Automobiles		945		0.9	%
Industrial Conglomerates		747		0.7	%
Diversified Banks		740		0.7	%
Semiconductors & Semiconductor Equipment		731		0.7	%
Electronic Equipment, Instruments & Components		671		0.7	%
Other Assets-Net		8,088		8.0	%
	$	101,113		100.0	%

See Notes to Schedule of Investments

Schedule of Investments Large Cap Disciplined Growth Fund

TOP TEN EQUITY HOLDINGS

1	Microsoft Corp.	4.5	%
2	Apple, Inc.	3.9	%
3	IBM	3.2	%
4	Procter & Gamble	3.0	%
5	Hewlett-Packard	2.6	%
6	Cisco Systems	2.4	%
7	Wal-Mart Stores	2.1	%
8	United Technologies	2.1	%
9	Adobe Systems	2.0	%
10	Google Inc. Class A	2.0	%

	Number of Shares		Value† (000's)
Common Stocks (97.2%)
Aerospace & Defense (2.8%)
Lockheed Martin		11,784	$	884
United Technologies		43,673		2,592
				3,476
Air Freight & Logistics (1.0%)
United Parcel Service		22,660		1,211
Auto Components (1.0%)
Johnson Controls		51,749		1,282
Beverages (1.8%)
PepsiCo, Inc.		40,047		2,269
Biotechnology (4.1%)
Amgen Inc.*		32,960		1,969
Celgene Corp.*		14,997		782
Gilead Sciences*		52,819		2,380
				5,131
Capital Markets (2.3%)
Goldman Sachs Group		11,867		1,964
Northern Trust		16,439		961
				2,925
Chemicals (2.0%)
Monsanto Co.		13,142		1,102
Potash Corp. of Saskatchewan		16,151		1,430
				2,532
Communications Equipment (4.2%)
Cisco Systems*		138,662		2,995
QUALCOMM Inc.		48,452		2,249
				5,244
Computers & Peripherals (11.3%)
Apple, Inc.*		29,006		4,879
EMC Corp.*		127,064		2,020
Hewlett-Packard		71,278		3,200
IBM		33,640		3,971
				14,070
Consumer Finance (1.1%)
American Express		41,695		1,410
Diversified Financial Services (1.7%)
J.P. Morgan Chase		49,689		2,160
Electrical Equipment (0.5%)
Emerson Electric		16,727		617

	Number of Shares		Value† (000's)
Energy Equipment & Services (2.6%)
National Oilwell Varco*		53,972	$	1,962
TransOcean*		17,139		1,300
				3,262
Food & Staples Retailing (5.1%)
CVS Corp.		52,326		1,963
Wal-Mart Stores		52,242		2,658
Walgreen Co.		52,902		1,792
				6,413
Health Care Equipment & Supplies (3.5%)
Baxter International		29,974		1,706
Becton, Dickinson & Co.		15,224		1,060
St. Jude Medical*		42,767		1,648
				4,414
Household Products (3.0%)
Procter & Gamble		68,064		3,683
Industrial Gases (1.0%)
Praxair, Inc.		15,574		1,193
Internet & Catalog Retail (2.0%)
Amazon.com*		30,406		2,469
Internet Software & Services (3.5%)
Google Inc. Class A*		5,356		2,473
Yahoo! Inc.*		126,817		1,853
				4,326
IT Services (2.2%)
Accenture PLC Class A		35,845		1,183
Visa Inc.		21,425		1,523
				2,706
Machinery (3.9%)
Caterpillar Inc.		30,900		1,400
Cummins Inc.		50,511		2,289
Danaher Corp.		18,932		1,150
				4,839
Media (1.5%)
Time Warner		67,982		1,897
Metals & Mining (4.1%)
BHP Billiton ADR		19,117		1,191
Freeport-McMoRan Copper & Gold		31,561		1,988
United States Steel		45,238		1,980
				5,159

	Number of Shares		Value† (000's)
Oil, Gas & Consumable Fuels (5.1%)
Canadian Natural Resources		34,440	$	1,971
Occidental Petroleum		29,747		2,174
Petroleo Brasileiro ADR		28,552		1,132
Range Resources		22,908		1,108
				6,385
Pharmaceuticals (4.1%)
Abbott Laboratories		46,619		2,108
Johnson & Johnson		29,088		1,758
Teva Pharmaceutical Industries ADR		23,566		1,214
				5,080
Restaurants (0.9%)
Yum! Brands		32,301		1,106
Road & Rail (1.7%)
Union Pacific		34,361		2,055
Semiconductors & Semiconductor Equipment (5.2%)
Analog Devices		44,002		1,243
ASML Holding ADR		48,535		1,333
Broadcom Corp.*		48,781		1,388
Intel Corp.		120,966		2,458
				6,422
Software (8.1%)
Adobe Systems*		80,177		2,519
Microsoft Corp.		229,325		5,653
Oracle Corp.		85,451		1,869
				10,041
Specialty Retail (3.4%)
Best Buy		33,125		1,202
Lowe's Cos.		83,143		1,788
Staples, Inc.		58,506		1,264
				4,254
Tobacco (1.3%)
Philip Morris International		34,031		1,556
Wireless Telecommunication Services (1.2%)
American Tower*		47,505		1,504
Total Common Stocks (Cost $107,511)				121,091

See Notes to Schedule of Investments

	Number of Shares		Value† (000's)
Short-Term Investments (3.8%)
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $4,732)		4,732,295	$	4,732
Total Investments^##(101.0%) (Cost $112,243)				125,823
Liabilities, less cash, receivables and other assets [(1.0%)]				(1,223	)
Total Net Assets (100.0%)			$	124,600

See Notes to Schedule of Investments

Schedule of Investments Mid Cap Growth Fund

TOP TEN EQUITY HOLDINGS

1	WMS Industries	2.0	%
2	SBA Communications	1.8	%
3	Urban Outfitters	1.8	%
4	Ross Stores	1.6	%
5	Lazard Ltd.	1.6	%
6	Airgas, Inc.	1.5	%
7	Stericycle, Inc.	1.5	%
8	Ecolab Inc.	1.5	%
9	Dolby Laboratories	1.4	%
10	Express Scripts	1.4	%

	Number of Shares		Value† (000's)
Common Stocks (94.4%)
Aerospace & Defense (1.2%)
Precision Castparts		61,300	$	5,595
Air Freight & Logistics (2.0%)
C.H. Robinson Worldwide		105,800		5,952
Expeditors International		94,900		3,100
				9,052
Biotechnology (3.2%)
Alexion Pharmaceuticals*		76,400		3,449
Dendreon Corp.*		60,400		1,412
Human Genome Sciences*^È		130,000		2,571
United Therapeutics*		24,500		2,242
Vertex Pharmaceuticals*^È		125,000		4,676
				14,350
Capital Markets (4.9%)
Affiliated Managers Group*		71,900		4,697
Invesco Ltd.		205,300		4,260
Lazard Ltd.		185,100		7,195
Northern Trust		101,900		5,957
				22,109
Chemicals (3.0%)
Airgas, Inc.		150,300		6,989
Ecolab Inc.^È		155,100		6,559
				13,548
Commercial Banks (0.8%)
Signature Bank*		111,900		3,397
Commercial Services & Supplies (3.1%)
Copart, Inc.*^È		65,600		2,318
Iron Mountain*^È		78,000		2,285
Stericycle, Inc.*		140,900		6,978
Waste Connections*		81,000		2,215
				13,796
Communications Equipment (1.4%)
Brocade Communications*		278,200		2,011
Juniper Networks*		181,900		4,197
				6,208

	Number of Shares		Value† (000's)
Computers & Peripherals (1.0%)
NetApp, Inc.*		95,700	$	2,177
Western Digital*		72,400		2,482
				4,659
Construction & Engineering (1.0%)
Jacobs Engineering Group*		102,800		4,521
Diversified Consumer Services (2.3%)
DeVry, Inc.		91,000		4,650
Strayer Education^È		27,900		5,890
				10,540
Diversified Financial Services (2.0%)
IntercontinentalExchange Inc.*		43,600		4,090
MSCI Inc.*		159,400		4,689
				8,779
Electrical Equipment (1.6%)
AMETEK, Inc.		135,500		4,265
Roper Industries		65,400		3,099
				7,364
Electronic Equipment, Instruments & Components (3.8%)
Amphenol Corp.		99,200		3,468
Dolby Laboratories*		159,300		6,214
National Instruments		131,900		3,381
Trimble Navigation*		154,100		3,923
				16,986
Energy Equipment & Services (2.6%)
CARBO Ceramics^È		97,500		4,197
Core Laboratories N.V.^È		43,600		4,041
Noble Corp.		96,900		3,394
				11,632
Food & Staples Retailing (1.2%)
Shoppers Drug Mart^È		132,500		5,204
Food Products (1.2%)
Ralcorp Holdings*		83,100		5,213
Health Care Equipment & Supplies (2.2%)
C.R. Bard^È		34,800		2,804
NuVasive, Inc.*^È		66,400		2,661

	Number of Shares		Value† (000's)
ResMed Inc.*		51,300	$	2,355
Wright Medical Group*		122,600		1,991
				9,811
Health Care Providers & Services (2.8%)
Express Scripts*		85,300		6,161
HMS Holdings*		66,800		2,512
VCA Antech*		158,100		3,913
				12,586
Health Care Technology (1.0%)
Allscripts Healthcare Solutions^È		147,400		2,189
MedAssets Inc.*		111,500		2,490
				4,679
Hotels, Restaurants & Leisure (4.7%)
Ameristar Casinos^È		149,500		2,483
International Game Technology		84,600		1,770
Marriott International		82,698		1,977
Penn National Gaming*		203,800		5,953
WMS Industries*		213,800		9,050
				21,233
Household Products (1.0%)
Church & Dwight		76,700		4,382
Internet & Catalog Retail (0.7%)
Priceline.com Inc.*^È		21,300		3,280
Internet Software & Services (2.3%)
Equinix, Inc.*^È		55,300		4,659
VistaPrint Ltd.*^È		139,300		5,773
				10,432
IT Services (0.9%)
Cognizant Technology Solutions*		116,000		4,046
Life Science Tools & Services (1.5%)
AMAG Pharmaceuticals*		58,700		2,409
Illumina, Inc.*^È		124,500		4,391
				6,800
Machinery (1.5%)
Danaher Corp.		82,800		5,027
Flowserve Corp.		21,500		1,854
				6,881

See Notes to Schedule of Investments

	Number of Shares		Value† (000's)
Media (1.4%)
DreamWorks Animation SKG*		88,900	$	3,001
McGraw-Hill Cos.		95,700		3,217
				6,218
Metals & Mining (0.6%)
Freeport-McMoRan Copper & Gold		41,900		2,639
Multiline Retail (2.5%)
Dollar Tree*		71,800		3,586
Kohl's Corp.*^È		73,400		3,787
Nordstrom, Inc.^È		140,000		3,925
				11,298
Oil, Gas & Consumable Fuels (4.5%)
Alpha Natural Resources*		45,000		1,454
Cabot Oil & Gas		63,100		2,224
Concho Resources*		183,800		5,990
Range Resources		122,500		5,926
Southwestern Energy*		132,500		4,884
				20,478
Personal Products (1.6%)
Avon Products		74,700		2,381
Mead Johnson Nutrition		126,600		5,021
				7,402
Pharmaceuticals (0.6%)
Mylan Laboratories*^È		191,900		2,815
Professional Services (1.6%)
CoStar Group*^È		65,300		2,478
IHS Inc.*		98,800		4,782
				7,260
Road & Rail (0.9%)
J.B. Hunt Transport Services^È		139,400		3,907
Semiconductors & Semiconductor Equipment (7.0%)
Altera Corp.		90,400		1,737
Analog Devices		144,300		4,076
Avago Technologies*		125,000		2,275
Broadcom Corp.*		109,000		3,101
Lam Research*		79,700		2,447
Marvell Technology Group*		263,600		4,020
Microchip Technology^È		208,400		5,533
Silicon Laboratories*		111,800		5,035
Varian Semiconductor Equipment*^È		107,900		3,299
				31,523

	Number of Shares			Value† (000's)
Software (5.3%)
Activision Blizzard*		485,800		$	5,640
ANSYS, Inc.*		159,100			5,591
Citrix Systems*^È		63,500			2,266
McAfee Inc.*^È		69,200			2,753
MICROS Systems*		74,800			2,085
Rovi Corp.*		107,100			3,260
Sybase, Inc.*^È		70,000			2,439
					24,034
Specialty Retail (7.6%)
Bed Bath & Beyond*		137,400			5,012
CarMax, Inc.*		135,600			2,347
Gap Inc.		63,700	��		1,252
O' Reilly Automotive*^È		84,600			3,238
Ross Stores		158,200			7,378
TJX Cos.		119,100			4,282
Urban Outfitters*		283,600			8,063
Williams-Sonoma		143,100			2,738
					34,310
Textiles, Apparel & Luxury Goods (0.5%)
Coach, Inc.		77,000			2,178
Trading Companies & Distributors (1.6%)
Fastenal Co.^È		125,600			4,547
W.W. Grainger		31,800			2,781
					7,328
Wireless Telecommunication Services (3.8%)
American Tower*		194,300			6,150
Millicom International Cellular*^È		41,300			2,914
SBA Communications*		338,400			8,159
					17,223
Total Common Stocks (Cost $367,935)					425,696
Short-Term Investments (20.9%)
Neuberger Berman Securities Lending Quality Fund, LLC^‡		68,669,144			69,356
State Street Institutional Liquid Reserves Fund Institutional Class		25,018,476			25,018
Total Short-Term Investments (Cost $94,374)					94,374
Total Investments^##(115.3%) (Cost $462,309)					520,070
Liabilities, less cash, receivables and other assets [(15.3%)]					(69,081	)
Total Net Assets (100.0%)				$	450,989

See Notes to Schedule of Investments

Schedule of Investments Partners Fund

TOP TEN EQUITY HOLDINGS

1	Bank of America	3.4	%
2	NBTY, Inc.	2.6	%
3	Petroleo Brasileiro ADR	2.3	%
4	Canadian Natural Resources	2.2	%
5	Berkshire Hathaway Class B	2.2	%
6	Moody's Corp.	2.2	%
7	Shire Limited ADR	2.1	%
8	Teck Cominco Class B	2.1	%
9	Harley-Davidson	1.9	%
10	J.P. Morgan Chase	1.9	%

	Number of Shares		Value† (000's)
Common Stocks (96.9%)
Aerospace & Defense (2.3%)
Boeing Co.^È		435,100	$	21,612
L-3 Communications Holdings^È		476,200		35,429
				57,041
Automobiles (1.9%)
Harley-Davidson		2,033,066		48,753
Beverages (1.6%)
Dr. Pepper Snapple Group*		1,559,800		41,241
Building Products (1.0%)
Owens Corning*^È		1,168,000		26,093
Capital Markets (5.3%)
Goldman Sachs Group		153,100		25,332
Invesco Ltd.		1,877,500		38,958
Morgan Stanley^È		1,115,782		32,313
State Street		661,500		34,716
				131,319
Commercial Banks (2.8%)
Comerica Inc.^È		255,400		6,811
Fifth Third Bancorp		1,151,400		12,596
SunTrust Banks^È		305,500		7,140
Wells Fargo		1,564,300		43,050
				69,597
Computers & Peripherals (1.8%)
Hewlett-Packard		979,200		43,956
Construction & Engineering (2.6%)
Chicago Bridge & Iron		2,434,600		38,320
KBR, Inc.		1,164,532		26,377
				64,697
Consumer Finance (1.6%)
American Express		1,187,900		40,175
Diversified Financial Services (9.3%)
Bank of America		4,780,400		84,087
Citigroup Inc.		9,303,037		46,515
J.P. Morgan Chase		1,088,900		47,324
Moody's Corp.		1,981,994		53,990
				231,916
Electric Utilities (0.2%)
FirstEnergy Corp.		83,600		3,773

	Number of Shares		Value† (000's)
Electrical Equipment (1.5%)
ABB Ltd.		1,977,500	$	37,909
Energy Equipment & Services (3.0%)
National Oilwell Varco*		966,700		35,139
Noble Corp.		1,136,900		39,826
				74,965
Health Care Equipment & Supplies (2.1%)
Covidien PLC		688,000		27,224
Zimmer Holdings*		550,700		26,076
				53,300
Health Care Providers & Services (3.0%)
Aetna Inc.		1,031,700		29,403
WellPoint Inc.*		851,800		45,018
				74,421
Health Care Technology (0.8%)
IMS Health^È		1,482,100		20,542
Household Durables (0.7%)
NVR, Inc.*		5,400		3,646
Whirlpool Corp.^È		199,900		12,836
				16,482
Household Products (1.9%)
Energizer Holdings*		714,500		46,750
Independent Power Producers & Energy Traders (1.5%)
NRG Energy*^È		1,375,868		36,942
Industrial Conglomerates (1.7%)
McDermott International*		1,790,700		42,547
Insurance (4.2%)
Assurant, Inc.		674,500		20,202
Berkshire Hathaway Class B*		16,700		54,876
MetLife, Inc.		814,542		30,757
				105,835
IT Services (4.6%)
Affiliated Computer Services*		686,200		30,742
Fidelity National Information Services^È		1,738,530		42,698
Lender Processing Services		1,230,915		42,196
				115,636

	Number of Shares		Value† (000's)
Machinery (4.1%)
Ingersoll-Rand PLC		1,050,174	$	32,440
Joy Global^È		721,458		28,028
Terex Corp.*		2,475,900		40,803
				101,271
Marine (0.5%)
Genco Shipping & Trading^È		606,400		11,746
Media (3.1%)
Cablevision Systems		1,474,313		32,936
McGraw-Hill Cos.		1,362,800		45,804
				78,740
Metals & Mining (6.2%)
Cliffs Natural Resources		563,200		14,255
Freeport-McMoRan Copper & Gold^È		669,400		42,159
Sterlite Industries (India) ADR*		961,900		12,880
Teck Cominco Class B*^È		2,185,900		52,593
Xstrata PLC		2,427,000		32,655
				154,542
Multiline Retail (2.5%)
J.C. Penney^È		1,270,900		38,178
Macy's Inc.		1,572,400		24,403
				62,581
Oil, Gas & Consumable Fuels (13.7%)
Canadian Natural Resources^È		964,400		55,193
Denbury Resources^*		1,423,760		21,670
EOG Resources		422,200		30,398
Exxon Mobil		28,200		1,950
Peabody Energy		861,400		28,151
Petroleo Brasileiro ADR^È		1,439,500		57,062
Ship Finance International^È		1,290,203		16,334
Southwestern Energy*		1,084,225		39,964
Suncor Energy		822,305		25,195
Talisman Energy^È		1,403,940		22,547
Walter Industries		358,100		18,589
XTO Energy		634,457		24,490
				341,543

See Notes to Schedule of Investments

	Number of Shares		Value† (000's)
Personal Products (3.3%)
Avon Products		620,457	$	19,774
NBTY, Inc.*		1,724,774		63,920
				83,694
Pharmaceuticals (2.1%)
Shire Limited ADR^È		1,065,659		52,814
Road & Rail (0.3%)
Norfolk Southern^È		183,900		8,435
Software (3.1%)
Check Point Software Technologies*^È		806,573		22,479
Microsoft Corp.		957,400		23,600
Oracle Corp.^È		1,468,500		32,116
				78,195
Specialty Retail (1.2%)
Best Buy^È		829,975		30,111
Wireless Telecommunication Services (1.4%)
China Mobile ADR^È		712,600		35,074
Total Common Stocks (Cost $2,295,212)				2,422,636
Short-Term Investments (7.6%)
Neuberger Berman Securities Lending Quality Fund, LLC^‡		120,980,475		122,190
State Street Institutional Liquid Reserves Fund Institutional Class		67,955,372		67,955
Total Short-Term Investments (Cost $190,145)				190,145
Total Investments^##(104.5%) (Cost $2,485,357)				2,612,781
Liabilities, less cash, receivables and other assets [(4.5%)]				(111,964	)
Total Net Assets (100.0%)			$	2,500,817

See Notes to Schedule of Investments

Schedule of Investments Real Estate Fund

TOP TEN EQUITY HOLDINGS

1	Simon Property Group	9.0	%
2	Boston Properties	5.6	%
3	Public Storage	5.6	%
4	Digital Realty Trust	4.8	%
5	HCP, Inc.	4.6	%
6	Equity Residential	4.0	%
7	Vornado Realty Trust	3.8	%
8	Ventas, Inc.	3.6	%
9	Federal Realty Investment Trust	2.8	%
10	Essex Property Trust	2.8	%

	Number of Shares		Value† (000's)
Common Stocks (96.7%)
Apartments (13.5%)
American Campus Communities		39,451	$	1,026
AvalonBay Communities		28,032		1,806
Camden Property Trust		43,500		1,597
Equity Residential		97,700		2,668
Essex Property Trust^È		24,900		1,858
				8,955
Diversified (3.8%)
Vornado Realty Trust		43,442		2,499
Health Care (12.1%)
HCP, Inc.		106,800		3,042
Nationwide Health Properties		57,600		1,836
OMEGA Healthcare Investors		47,600		805
Ventas, Inc.		60,300		2,364
				8,047
Home Financing (1.8%)
Starwood Property Trust*		61,600		1,219
Industrial (5.8%)
AMB Property		66,100		1,509
DCT Industrial Trust		131,500		694
EastGroup Properties		24,900		937
ProLogis		61,100		680
				3,820
Lodging (5.2%)
Host Hotels & Resorts		121,500		1,211
LaSalle Hotel Properties		36,300		601
Starwood Hotels & Resorts Worldwide^È		56,000		1,668
				3,480
Mixed (2.8%)
Duke Realty		78,100		900
PS Business Parks		17,500		926
				1,826

	Number of Shares		Value† (000's)
Office (15.3%)
Alexandria Real Estate Equities^È		29,350	$	1,635
Boston Properties		61,600		3,732
Brandywine Realty Trust		88,900		943
Brookfield Properties		149,400		1,639
Corporate Office Properties Trust		29,370		1,082
Highwoods Properties		38,200		1,122
				10,153
Regional Malls (10.0%)
Simon Property Group^È		93,679		5,960
Taubman Centers		21,400		677
				6,637
Self Storage (6.9%)
Public Storage		52,300		3,690
Sovran Self Storage		31,100		914
				4,604
Shopping Centers (9.8%)
Acadia Realty Trust^È		40,722		624
Federal Realty Investment Trust		29,900		1,865
Kimco Realty		115,000		1,443
Regency Centers		28,000		939
Tanger Factory Outlet Centers		44,200		1,663
				6,534
Specialty (9.7%)
Digital Realty Trust		73,500		3,203
Dupont Fabros Technology		54,500		713
Plum Creek Timber Company		36,000		1,091
Rayonier Inc.		32,600		1,400
				6,407
Total Common Stocks (Cost $50,864)				64,181

	Number of Shares		Value† (000's)
Short-Term Investments (17.2%)
Neuberger Berman Securities Lending Quality Fund, LLC^‡		9,144,630	$	9,236
State Street Institutional Liquid Reserves Fund Institutional Class		2,226,248		2,226
Total Short-Term Investments (Cost $11,462)				11,462
Total Investments^##(113.9%) (Cost $62,326)				75,643
Liabilities, less cash, receivables and other assets [(13.9%)]				(9,257	)
Total Net Assets (100.0%)			$	66,386

See Notes to Schedule of Investments

Schedule of Investments Regency Fund

TOP TEN EQUITY HOLDINGS

1	NBTY, Inc.	2.6	%
2	Teck Cominco Class B	2.5	%
3	Whirlpool Corp.	2.3	%
4	Whiting Petroleum	1.9	%
5	Harley-Davidson	1.9	%
6	Dr. Pepper Snapple Group	1.8	%
7	McGraw-Hill Cos.	1.7	%
8	Moody's Corp.	1.7	%
9	Lender Processing Services	1.7	%
10	NRG Energy	1.7	%

	Number of Shares		Value† (000's)
Common Stocks (96.4%)
Aerospace & Defense (2.3%)
Embraer-Empresa Brasileira de Aeronautica ADR^È		38,700	$	822
L-3 Communications Holdings		10,700		796
				1,618
Auto Components (1.7%)
Johnson Controls		20,400		506
WABCO Holdings		36,300		692
				1,198
Automobiles (1.9%)
Harley-Davidson		55,200		1,324
Beverages (1.8%)
Dr. Pepper Snapple Group*		47,100		1,245
Building Products (1.2%)
Owens Corning*		38,500		860
Capital Markets (4.1%)
Invesco Ltd.		56,600		1,174
Jefferies Group*		28,500		674
Morgan Stanley		35,000		1,014
				2,862
Commercial Banks (6.0%)
Comerica Inc.		29,700		792
Fifth Third Bancorp		56,400		617
First Horizon National*		42,405		567
KeyCorp		99,800		665
Regions Financial^È		95,900		562
SunTrust Banks		21,200		495
Zions Bancorp^È		29,400		520
				4,218
Construction & Engineering (1.4%)
Chicago Bridge & Iron		63,000		992
Diversified Financial Services (1.7%)
Moody's Corp.		43,700		1,190
Electric Utilities (5.0%)
DPL Inc.		37,800		936
Entergy Corp.		7,100		561
FirstEnergy Corp.		17,100		772

	Number of Shares		Value† (000's)
NV Energy		69,000	$	832
PPL Corp.		15,900		468
				3,569
Electronic Equipment, Instruments & Components (2.3%)
Anixter International*		24,900		873
Avnet, Inc.*		28,800		768
				1,641
Energy Equipment & Services (3.0%)
National Oilwell Varco*		27,600		1,003
Noble Corp.		20,400		715
Oceaneering International*		7,400		386
				2,104
Food Products (1.4%)
ConAgra, Inc.		24,300		499
J.M. Smucker		9,600		502
				1,001
Health Care Equipment & Supplies (0.6%)
Covidien PLC		10,900		431
Health Care Providers & Services (5.0%)
Aetna Inc.		26,800		764
AmerisourceBergen Corp.		30,900		658
CIGNA Corp.		19,800		583
Coventry Health Care*		19,300		421
Mednax, Inc.*		21,500		1,120
				3,546
Health Care Technology (0.7%)
IMS Health		33,600		466
Household Durables (3.4%)
NVR, Inc.*		1,150		776
Whirlpool Corp.		25,600		1,644
				2,420
Household Products (1.6%)
Energizer Holdings*		17,300		1,132
Independent Power Producers & Energy Traders (1.7%)
NRG Energy*		44,100		1,184

	Number of Shares		Value† (000's)
Industrial Conglomerates (0.8%)
McDermott International*		25,100	$	596
Insurance (6.7%)
Assurant, Inc.		29,800		893
Fidelity National Financial Class A		17,000		255
PartnerRe Ltd.		10,200		754
Principal Financial Group		32,600		926
StanCorp Financial Group		30,300		1,147
W.R. Berkley		31,000		792
				4,767
IT Services (3.9%)
Affiliated Computer Services*		15,900		712
Fidelity National Information Services		36,100		887
Lender Processing Services		34,700		1,189
				2,788
Life Science Tools & Services (0.6%)
Charles River Laboratories International*		11,600		400
Machinery (5.2%)
Bucyrus International		20,700		618
Ingersoll-Rand PLC		35,000		1,081
Navistar International*		12,100		523
SPX Corp.		7,400		412
Terex Corp.*		62,700		1,034
				3,668
Marine (0.5%)
Genco Shipping & Trading^È		17,000		329
Media (3.2%)
Cablevision Systems		46,500		1,039
McGraw-Hill Cos.		35,700		1,200
				2,239

See Notes to Schedule of Investments

100

	Number of Shares		Value† (000's)
Metals & Mining (5.3%)
Cliffs Natural Resources		23,800	$	603
Freeport-McMoRan Copper & Gold		16,200		1,020
Sterlite Industries (India) ADR*		31,300		419
Teck Cominco Class B*		72,100		1,735
				3,777
Multi-Utilities (1.3%)
CMS Energy		66,500		892
Multiline Retail (2.6%)
J.C. Penney		37,700		1,133
Macy's Inc.		47,500		737
				1,870
Oil, Gas & Consumable Fuels (8.5%)
Apache Corp.^È		8,700		739
Denbury Resources*		32,200		490
Noble Energy		17,300		1,046
Ship Finance International^È		28,279		358
Southwestern Energy*		23,100		851
Talisman Energy		71,585		1,150
Whiting Petroleum*		28,100		1,364
				5,998
Personal Products (2.6%)
NBTY, Inc.*		49,300		1,827
Pharmaceuticals (1.5%)
Shire Limited ADR		22,100		1,095
Real Estate Investment Trusts (6.0%)
Alexandria Real Estate Equities^È		12,200		680
Annaly Capital Management		35,800		621
Boston Properties		17,900		1,084
Macerich Co.^È		30,003		860
Vornado Realty Trust		16,954		975
				4,220
Semiconductors & Semiconductor Equipment (0.4%)
International Rectifier*		16,100		302
Specialty Retail (0.5%)
GameStop Corp. Class A*		13,800		328
Total Common Stocks (Cost $68,039)				68,097

	Number of Shares		Value† (000's)
Short-Term Investments (8.1%)
Neuberger Berman Securities Lending Quality Fund, LLC^‡		3,651,833	$	3,688
State Street Institutional Liquid Reserves Fund Institutional Class^ØØ		2,047,443		2,047
Total Short-Term Investments (Cost $5,735)				5,735
Total Investments^##(104.5%) (Cost $73,774)				73,832
Liabilities, less cash, receivables and other assets [(4.5%)]				(3,188	)
Total Net Assets (100.0%)			$	70,644

See Notes to Schedule of Investments

101

Schedule of Investments Select Equities Fund

TOP TEN EQUITY HOLDINGS

1	FPL Group	4.9	%
2	American Tower	4.5	%
3	Hewlett-Packard	4.0	%
4	J.P. Morgan Chase	3.9	%
5	Expeditors International	3.8	%
6	Lockheed Martin	3.4	%
7	QUALCOMM Inc.	3.3	%
8	Canadian Natural Resources	3.2	%
9	Visa Inc.	3.0	%
10	Baxter International	2.9	%

	Number of Shares		Value† (000's)
Common Stocks (83.3%)
Aerospace & Defense (3.5%)
Lockheed Martin		24,002	$	1,800
Air Freight & Logistics (6.1%)
C.H. Robinson Worldwide		21,922		1,233
Expeditors International		60,442		1,974
				3,207
Capital Markets (2.5%)
Goldman Sachs Group		7,821		1,294
Chemicals (2.3%)
Monsanto Co.		14,229		1,193
Commercial Banks (5.7%)
Banco Santander ADR		97,360		1,502
HSBC Holdings PLC ADR		27,252		1,470
				2,972
Communications Equipment (3.3%)
QUALCOMM Inc.		37,507		1,741
Computers & Peripherals (4.0%)
Hewlett-Packard		45,965		2,063
Diversified Financial Services (3.9%)
J.P. Morgan Chase		46,917		2,039
Electric Utilities (4.9%)
FPL Group		45,331		2,547
Food & Staples Retailing (2.9%)
Wal-Mart Stores		29,567		1,504
Health Care Equipment & Supplies (4.8%)
Alcon, Inc.		7,587		982
Baxter International		26,940		1,534
				2,516
Household Products (2.9%)
Procter & Gamble		28,305		1,531
Industrial Gases (2.9%)
Praxair, Inc.		19,874		1,523
IT Services (3.0%)
Visa Inc.		22,136		1,574

	Number of Shares		Value† (000's)
Metals & Mining (2.3%)
BHP Billiton ADR		19,500	$	1,215
Oil, Gas & Consumable Fuels (12.8%)
Canadian Natural Resources		28,752		1,645
Enbridge Inc.		33,990		1,265
Petroleo Brasileiro ADR		28,327		1,123
Range Resources		25,883		1,252
Suncor Energy		45,480		1,394
				6,679
Pharmaceuticals (2.9%)
Johnson & Johnson		24,918		1,506
Real Estate Investment Trusts (2.5%)
Vornado Realty Trust		22,563		1,298
Software (2.8%)
Oracle Corp.		67,816		1,483
Tobacco (2.8%)
Philip Morris International		32,142		1,469
Wireless Telecommunication Services (4.5%)
American Tower*		74,948		2,372
Total Common Stocks (Cost $39,591)				43,526
Short-Term Investments (14.9%)
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $7,805)		7,805,144		7,805
Total Investments^##(98.2%) (Cost $47,396)				51,331
Cash, receivables and other assets, less liabilities (1.8%)				936
Total Net Assets (100.0%)			$	52,267

See Notes to Schedule of Investments

102

Schedule of Investments Small and Mid Cap Growth Fund

TOP TEN EQUITY HOLDINGS

1	Urban Outfitters	2.8	%
2	Royal Caribbean Cruises	2.5	%
3	Ross Stores	2.4	%
4	Stericycle, Inc.	2.4	%
5	Lazard Ltd.	2.3	%
6	SBA Communications	2.2	%
7	Equinix, Inc.	2.2	%
8	Southwestern Energy	2.2	%
9	Marvell Technology Group	2.1	%
10	Shoppers Drug Mart	2.1	%

	Number of Shares		Value† (000's)
Common Stocks (98.0%)
Aerospace & Defense (3.0%)
HEICO Corp.		1,700	$	63
Precision Castparts		1,300		119
				182
Air Freight & Logistics (1.9%)
C.H. Robinson Worldwide		2,100		118
Biotechnology (1.6%)
Vertex Pharmaceuticals*		2,600		97
Building Products (0.9%)
Ameron International		700		57
Capital Markets (5.4%)
Lazard Ltd.		3,600		140
Northern Trust		1,800		105
Waddell & Reed Financial		3,200		85
				330
Chemicals (1.8%)
Airgas, Inc.		2,300		107
Commercial Services & Supplies (2.4%)
Stericycle, Inc.*		2,900		144
Construction & Engineering (1.2%)
Jacobs Engineering Group*		1,600		70
Diversified Consumer Services (2.7%)
DeVry, Inc.		1,550		79
Lincoln Educational Services*		3,900		87
				166
Diversified Financial Services (3.5%)
IntercontinentalExchange Inc.*		1,100		103
MSCI Inc.*		3,700		109
				212
Electrical Equipment (1.2%)
AMETEK, Inc.		2,300		72
Electronic Equipment, Instruments & Components (1.7%)
Dolby Laboratories*		2,600		101

	Number of Shares		Value† (000's)
Food & Staples Retailing (2.1%)
Shoppers Drug Mart		3,200	$	126
Food Products (1.7%)
Ralcorp Holdings*		1,600		100
Health Care Equipment & Supplies (4.7%)
Emergency Medical Services*		2,200		100
NuVasive, Inc.*		2,300		92
ResMed Inc.*		2,100		96
				288
Health Care Providers & Services (4.4%)
Air Methods*		2,200		75
Express Scripts*		1,400		101
Mednax, Inc.*		1,800		94
				270
Hotels, Restaurants & Leisure (6.9%)
Orient-Express Hotel		8,300		82
Penn National Gaming*		2,600		76
Royal Caribbean Cruises		7,900		151
WMS Industries*		2,600		110
				419
Internet Software & Services (3.3%)
Equinix, Inc.*		1,600		135
VistaPrint Ltd.*		1,600		66
				201
IT Services (1.6%)
RightNow Technologies*		7,800		98
Marine (1.5%)
Kirby Corp.*		2,500		93
Media (1.2%)
McGraw-Hill Cos.		2,100		71
Oil, Gas & Consumable Fuels (6.9%)
Arena Resources*		2,300		70
Concho Resources*		3,500		114
Range Resources		2,100		102
Southwestern Energy*		3,600		133
				419

	Number of Shares		Value† (000's)
Personal Products (1.4%)
Mead Johnson Nutrition		2,100	$	83
Professional Services (3.2%)
IHS Inc.*		2,100		102
TrueBlue, Inc.*		6,700		91
				193
Road & Rail (1.9%)
Old Dominion Freight Line*		3,200		115
Semiconductors & Semiconductor Equipment (14.6%)
Analog Devices		3,200		90
Hittite Microwave*		1,500		52
Lam Research*		2,600		80
Marvell Technology Group*		8,500		130
Microchip Technology		4,200		112
Netlogic Microsystems*		2,100		92
Semtech Corp.*		3,900		71
Silicon Laboratories*		2,200		99
Varian Semiconductor Equipment*		3,300		101
Veeco Instruments*		3,000		64
				891
Software (4.8%)
Activision Blizzard*		7,400		86
Informatica Corp.*		5,400		97
Ultimate Software Group*		4,200		110
				293
Specialty Retail (8.3%)
Bed Bath & Beyond*		2,600		95
Ross Stores		3,200		149
Tractor Supply*		2,000		94
Urban Outfitters*		5,900		168
				506
Wireless Telecommunication Services (2.2%)
SBA Communications*		5,600		135
Total Common Stocks (Cost $5,420)				5,957

See Notes to Schedule of Investments

103

	Number of Shares		Value† (000's)
Short-Term Investments (2.8%)
State Street Institutional Liquid Reserves Fund Institutional Class (Cost $173)		172,701	$	173
Total Investments^##(100.8%) (Cost $5,593)				6,130
Liabilities, less cash, receivables and other assets [(0.8%)]				(48	)
Total Net Assets (100.0%)			$	6,082

See Notes to Schedule of Investments

104

Schedule of Investments Small Cap Growth Fund

TOP TEN EQUITY HOLDINGS

1	Royal Caribbean Cruises	2.4	%
2	Ultimate Software Group	2.1	%
3	Old Dominion Freight Line	2.0	%
4	Taleo Corp. Class A	2.0	%
5	Concho Resources	2.0	%
6	Informatica Corp.	1.9	%
7	Lincoln Educational Services	1.9	%
8	RightNow Technologies	1.8	%
9	IPC The Hospitalist	1.8	%
10	Orient-Express Hotel	1.8	%

	Number of Shares		Value† (000's)
Common Stocks (97.7%)
Aerospace & Defense (0.8%)
HEICO Corp.^È		44,900	$	1,664
Biotechnology (7.3%)
Alexion Pharmaceuticals*		56,100		2,532
Human Genome Sciences*^È		148,600		2,939
Isis Pharmaceuticals*		129,000		2,082
Onyx Pharmaceuticals*^È		71,900		2,306
Regeneron Pharmaceuticals*^È		110,100		2,503
Seattle Genetics*		182,500		2,236
				14,598
Building Products (1.0%)
Ameron International		23,300		1,887
Capital Markets (4.4%)
GFI Group		330,300		2,365
Janus Capital Group^È		254,800		3,241
Waddell & Reed Financial		117,500		3,117
				8,723
Chemicals (1.2%)
NewMarket Corp		29,800		2,477
Commercial Services & Supplies (4.8%)
Cornell Companies*		125,500		2,521
Geo Group*		114,900		2,105
Healthcare Services Group^È		141,300		2,498
Tetra Tech*		78,400		2,316
				9,440
Consumer Finance (1.3%)
Dollar Financial*		150,400		2,622
Containers & Packaging (1.3%)
Rock-Tenn		48,900		2,508
Diversified Consumer Services (3.5%)
Capella Education*^È		50,100		3,174
Lincoln Educational Services*		165,800		3,677
				6,851

	Number of Shares		Value† (000's)
Electrical Equipment (2.1%)
Harbin Electric*		163,400	$	2,028
Polypore International*^È		183,700		2,088
				4,116
Food & Staples Retailing (1.5%)
United Natural Foods*		110,700		2,991
Health Care Equipment & Supplies (5.1%)
ICU Medical*		61,300		2,280
Inverness Medical Innovations*		56,600		2,015
NuVasive, Inc.*^È		62,100		2,488
Sirona Dental Systems*^È		126,800		3,353
				10,136
Health Care Providers & Services (9.8%)
Air Methods*		77,100		2,632
Emergency Medical Services*		64,000		2,902
HMS Holdings*		61,200		2,302
IPC The Hospitalist*		119,400		3,527
Mednax, Inc.*		60,300		3,140
PSS World Medical*		114,400		2,338
Psychiatric Solutions*^È		101,500		2,719
				19,560
Health Care Technology (2.6%)
MedAssets Inc.*		115,300		2,575
SXC Health Solutions*		62,300		2,536
				5,111
Hotels, Restaurants & Leisure (6.7%)
BJ Restaurants*^È		133,900		2,296
Orient-Express Hotel^È		351,500		3,501
Royal Caribbean Cruises^È		253,900		4,844
WMS Industries*		62,500		2,646
				13,287
Household Durables (1.3%)
Jarden Corp.*^È		103,100		2,511

	Number of Shares		Value† (000's)
Internet Software & Services (3.5%)
Constant Contact*^È		114,600	$	2,387
LivePerson, Inc.*		544,500		2,243
VistaPrint Ltd.*^È		57,300		2,375
				7,005
IT Services (2.7%)
Global Cash Access Holdings*^È		258,000		1,870
RightNow Technologies*^È		281,700		3,544
				5,414
Marine (1.5%)
Kirby Corp.*		82,000		3,038
Oil, Gas & Consumable Fuels (3.1%)
Arena Resources*		73,100		2,236
Concho Resources*		120,600		3,930
				6,166
Professional Services (2.8%)
ICF International*		96,400		2,637
TrueBlue, Inc.*^È		217,800		2,962
				5,599
Road & Rail (2.0%)
Old Dominion Freight Line*^È		113,000		4,043
Semiconductors & Semiconductor Equipment (8.2%)
Hittite Microwave*		58,400		2,010
Netlogic Microsystems*^È		71,300		3,131
Semtech Corp.*^È		137,531		2,513
Silicon Laboratories*		72,500		3,265
Varian Semiconductor Equipment*^È		105,600		3,228
Veeco Instruments*		95,600		2,054
				16,201
Software (12.4%)
Informatica Corp.*		214,800		3,851
Jack Henry & Associates		89,200		2,079
Nuance Communications*		172,900		2,132
Perfect World*^È		73,300		2,797

See Notes to Schedule of Investments

105

	Number of Shares		Value† (000's)
Rovi Corp.*		94,900	$	2,889
Solera Holdings*		86,800		2,286
SuccessFactors, Inc.*		47,800		567
Taleo Corp. Class A*		223,100		4,036
Ultimate Software Group*^È		154,500		4,074
				24,711
Specialty Retail (2.5%)
hhgregg, Inc.*^È		147,000		2,540
Tractor Supply*^È		53,200		2,504
				5,044
Textiles, Apparel & Luxury Goods (4.3%)
Carter's, Inc.*		83,700		2,106
Fuqi International*^È		80,400		2,085
Lululemon Athetica*^È		107,300		2,152
Warnaco Group*^È		57,300		2,180
				8,523
Total Common Stocks (Cost $159,647)				194,226
Short-Term Investments (19.5%)
Neuberger Berman Securities Lending Quality Fund, LLC^‡		31,671,128		31,988
State Street Institutional Liquid Reserves Fund Institutional Class^ØØ		6,686,278		6,686
Total Short-Term Investments (Cost $38,674)				38,674
Total Investments^##(117.2%) (Cost $198,321)				232,900
Liabilities, less cash, receivables and other assets [(17.2%)]				(34,190	)
Total Net Assets (100.0%)			$	198,710

See Notes to Schedule of Investments

106

Schedule of Investments Socially Responsive Fund

TOP TEN EQUITY HOLDINGS

1	Scripps Networks Interactive	5.1	%
2	Altera Corp.	5.0	%
3	Intuit Inc.	4.9	%
4	Washington Post	4.8	%
5	Danaher Corp.	4.7	%
6	National Instruments	4.1	%
7	Newfield Exploration	4.1	%
8	3M Co.	4.0	%
9	Novo Nordisk A/S Class B	4.0	%
10	Charles Schwab	3.9	%

	Number of Shares		Value† (000's)
Common Stocks (95.0%)
Automobiles (2.0%)
Toyota Motor ADR^È		230,425	$	19,630
Biotechnology (3.4%)
Genzyme Corp.*		601,595		33,515
Capital Markets (6.3%)
Charles Schwab		2,116,589		38,225
The Bank of New York Mellon		806,617		23,884
				62,109
Commercial Services & Supplies (1.0%)
Herman Miller		642,500		10,421
Diversified Financial Services (1.5%)
IntercontinentalExchange Inc.*		162,965		15,286
Electronic Equipment, Instruments & Components (7.7%)
Anixter International*		1,009,460		35,412
National Instruments		1,571,218		40,270
				75,682
Energy Equipment & Services (2.3%)
Smith International		810,615		22,349
Health Care Providers & Services (2.0%)
UnitedHealth Group		696,465		19,501
Industrial Conglomerates (4.0%)
3M Co.		551,090		39,734
Industrial Gases (3.2%)
Praxair, Inc.		406,825		31,171
Insurance (5.2%)
Markel Corp.*		63,215		20,789
Progressive Corp.		1,821,165		30,086
				50,875
Internet Software & Services (3.0%)
Yahoo! Inc.*		2,054,800		30,021

	Number of Shares		Value† (000's)
Life Science Tools & Services (2.1%)
Millipore Corp.*		314,500	$	20,829
Machinery (4.7%)
Danaher Corp.		758,845		46,069
Media (13.6%)
Comcast Corp. Class A Special		2,474,225		36,099
Scripps Networks Interactive		1,550,265		50,337
Washington Post		110,143		47,842
				134,278
Multi-Utilities (2.6%)
National Grid		1,942,488		18,737
National Grid ADR		134,438		6,465
				25,202
Oil, Gas & Consumable Fuels (10.1%)
BG Group PLC		2,056,900		34,055
Cimarex Energy		636,744		24,858
Newfield Exploration*		1,040,730		40,266
				99,179
Pharmaceuticals (4.0%)
Novo Nordisk A/S Class B		639,950		39,010
Road & Rail (3.4%)
Canadian National Railway		690,835		33,347
Semiconductors & Semiconductor Equipment (7.0%)
Altera Corp.		2,552,680		49,037
Texas Instruments		797,430		19,609
				68,646
Software (4.9%)
Intuit Inc.*		1,735,125		48,184
Specialty Chemicals (1.0%)
Novozymes A/S		115,100		9,876
Total Common Stocks (Cost $986,950)				934,914
Short-Term Investments (0.4%)
Neuberger Berman Securities Lending Quality Fund, LLC^‡ (Cost $4,332)		4,289,134		4,332

	Principal Amount		Value† (000's)
Repurchase Agreements (4.6%)
Repurchase Agreement with Fixed Income Clearing Corp., 0.09%, due 9/1/09, dated 8/31/09, Maturity Value $45,172,113, Collateralized by $45,840,000, Federal Home Loan Bank, 1.62%, due 12/30/09 (Collateral Value $46,532,184)^# (Cost $45,172)	$	45,172,000	$	45,172
Certificates of Deposit (0.1%)
Carver Federal Savings, 0.50%, due 9/26/09		100,000		100
Self Help Credit Union, 0.46%, due 11/16/09		100,000		100
Shorebank Chicago, 0.75%, due 10/26/09		100,000		100
Shorebank Pacific, 0.75%, due 11/2/09		100,000		100
Total Certificates of Deposit^# (Cost $400)				400
Total Investments^##(100.1%) (Cost $1,036,854)				984,818
Liabilities, less cash, receivables and other assets [(0.1%)]				(641	)
Total Net Assets (100.0%)			$	984,177

See Notes to Schedule of Investments

107

Notes to Schedule of Investments

† The value of investments in equity securities by each fund and written options by Equity Income are determined by Neuberger Berman Management LLC ("Management") primarily by obtaining valuations from an independent pricing service based on the latest sale price when that price is readily available. Securities traded primarily on the NASDAQ Stock Market are normally valued by the funds at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations. If a valuation is not available from an independent pricing service, each fund seeks to obtain quotations from principal market makers. The value of investments in debt securities are determined by Management primarily by obtaining valuations from independent pricing services based on readily available bid quotations, or if quotations are not available, by methods which include considerations such as: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Management has developed a process to periodically review information provided by independent pricing services. For both debt and equity securities, if such quotations are not readily available, securities are valued using methods the Board of Trustees of Neuberger Berman Equity Funds (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding. Foreign security prices are furnished by independent quotation services and expressed in local currency values. Foreign security prices are currently translated from the local currency into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time. The Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in determining the fair value of the funds' foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that a fund could expect to receive for those securities. In this event, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors. In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the funds could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security next trades. Short-term debt securities with less than 60 days until maturity may be valued at cost which, when combined with interest earned, approximates market value.

In accordance with Financial Accounting Standards Board ("FASB") Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"), investments held by a fund are carried at "fair value" on a recurring basis. Fair value is defined as the price that a fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs are used in determining the value of the funds' investments some of which are discussed above.

In addition, effective August 31, 2009, the funds adopted FASB Staff position ("FSP") No. 157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly" ("FSP No. 157-4"). FSP No. 157-4 emphasizes that the objective of fair value measurement described in FAS 157 remains unchanged and provides additional guidance for estimating fair value in accordance with FAS 157 when the volume and level of activity for the asset or liability have significantly decreased, as well as identifying circumstances that indicate that transactions are not orderly. FSP No. 157-4

See Notes to Financial Statements

108

Notes to Schedule of Investments (cont'd)

identifies factors to be considered when determining whether or not a market is inactive and indicates that if a market is determined to be inactive and/or current market prices are reflective of "distressed sales" significant management judgment may be necessary to estimate fair value in accordance with FAS 157.

In addition to defining fair value, FAS 157 established a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

• Level 1 – quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)

• Level 3 – significant unobservable inputs (including the funds' own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary, by category of Level, of inputs used to value the funds' investments as of August 31, 2009:

Asset Valuation Inputs
Neuberger Berman (000's omitted)	Level 1		Level 2		Level 3^§§		Total
Climate Change Fund
Investments:
Common Stocks§	$	2,997	$	—	$	—	$	2,997
Short-Term Investments		—		62		—		62
Total Investments		2,997		62		—		3,059
Emerging Markets Equity Fund
Investments:
Common Stocks§		4,797		60		—		4,857
Preferred Stocks§		556		—		0		556
Participatory Notes§		319		—		—		319
Convertible Bonds		—		—		8		8
Short-Term Investments		—		161		—		161
Total Investments		5,672		221		8		5,901
Equity Income Fund
Investments:
Common Stocks§		41,483		—		—		41,483
Convertible Preferred Stocks		2,854		—		—		2,854
Convertible Bonds		—		14,393		—		14,393
Corporate Debt Securities		—		248		—		248
Short-Term Investments		—		5,780		—		5,780
Total Investments		44,337		20,421		—		64,758

See Notes to Financial Statements

109

Notes to Schedule of Investments (cont'd)

Neuberger Berman (000's omitted)	Level 1		Level 2		Level 3^§§		Total
Focus Fund
Investments:
Common Stocks§	$	555,141	$	—	$	—	$	555,141
Short-Term Investments		—		66,200		—		66,200
Total Investments		555,141		66,200		—		621,341
Genesis Fund
Investments:
Common Stocks§		8,217,525		—		—		8,217,525
Short-Term Investments		—		335,213		—		335,213
Total Investments		8,217,525		335,213		—		8,552,738
Guardian Fund
Investments:
Common Stocks§		914,269		—		—		914,269
Short-Term Investments		—		32,039		—		32,039
Total Investments		914,269		32,039		—		946,308
International Fund
Investments:
Common Stocks§		378,011		—		—		378,011
Preferred Stocks§		8,401		—		10		8,411
Rights§		1		—		—		1
Warrants§		17		—		—		17
Short-Term Investments		—		32,004		—		32,004
Total Investments		386,430		32,004		10		418,444
International Institutional Fund
Investments:
Common Stocks§		209,015		—		—		209,015
Preferred Stocks§		4,650		—		—		4,650
Rights§		1		—		—		1
Warrants§		9		—		—		9
Short-Term Investments		—		14,702		—		14,702
Total Investments		213,675		14,702		—		228,377
International Large Cap Fund
Investments:
Common Stocks§		91,663		—		—		91,663
Preferred Stocks§		1,357		—		—		1,357
Rights§		0		—		—		0
Warrants§		5		—		—		5
Short-Term Investments		—		10,454		—		10,454
Total Investments		93,025		10,454		—		103,479

See Notes to Financial Statements

110

Notes to Schedule of Investments (cont'd)

Neuberger Berman (000's omitted)	Level 1		Level 2		Level 3^§§		Total
Large Cap Disciplined Growth Fund
Investments:
Common Stocks§	$	121,091	$	—	$	—	$	121,091
Short-Term Investments		—		4,732		—		4,732
Total Investments		121,091		4,732		—		125,823
Mid Cap Growth Fund
Investments:
Common Stocks§		425,696		—		—		425,696
Short-Term Investments		—		94,374		—		94,374
Total Investments		425,696		94,374		—		520,070
Partners Fund
Investments:
Common Stocks§		2,422,636		—		—		2,422,636
Short-Term Investments		—		190,145		—		190,145
Total Investments		2,422,636		190,145		—		2,612,781
Real Estate Fund
Investments:
Common Stocks§		64,181		—		—		64,181
Short-Term Investments		—		11,462		—		11,462
Total Investments		64,181		11,462		—		75,643
Regency Fund
Investments:
Common Stocks§		68,097		—		—		68,097
Short-Term Investments		—		5,735		—		5,735
Total Investments		68,097		5,735		—		73,832
Select Equities Fund
Investments:
Common Stocks§		43,526		—		—		43,526
Short-Term Investments		—		7,805		—		7,805
Total Investments		43,526		7,805		—		51,331
Small and Mid Cap Growth Fund
Investments:
Common Stocks§		5,957		—		—		5,957
Short-Term Investments		—		173		—		173
Total Investments		5,957		173		—		6,130
Small Cap Growth Fund
Investments:
Common Stocks§		194,226		—		—		194,226
Short-Term Investments		—		38,674		—		38,674
Total Investments		194,226		38,674		—		232,900

See Notes to Financial Statements

111

Notes to Schedule of Investments (cont'd)

Neuberger Berman (000's omitted)	Level 1		Level 2		Level 3^§§		Total
Socially Responsive Fund
Investments:
Common Stocks§	$	934,914	$	—	$	—	$	934,914
Short-Term Investments		—		4,332		—		4,332
Repurchase Agreements		—		45,172		—		45,172
Certificates of Deposit		—		400		—		400
Total Investments		934,914		49,904		—		984,818

§ The Schedule of Investments provides information on the industry or country categorization for the portfolio.

§§ The following is a reconciliation between the beginning and ending balances of investments in which significant unobservable inputs (Level 3) were used in determining value:

Neuberger Berman (000's omitted)	Beginning balance, as of 9/1/08		Accrued discounts/ (premiums)		Realized gain/loss and change in unrealized appreciation/ (depreciation)		Net purchases/ (sales)		Net transfers in and/or out of Level 3		Balance, as of 8/31/09		Net change in unrealized appreciation/ (depreciation) from investments still held as of 8/31/09
Investments in Securities:
Emerging Markets Equity Fund
Preferred Stocks Brazil	$	—	$	—	$	0	$	0	$	—	$	0	$	0
Convertible Bonds Brazil		—		—		3		5		—		8		3
Total		—		—		3		5		—		8		3
International Fund
Preferred Stocks Brazil		—		—		2		8		—		10		2
Total		—		—		2		8		—		10		2

Liability Valuation Inputs

The following is a summary, by category of Level, of inputs used to value the Fund's derivatives as of August 31, 2009:

Neuberger Berman (000's omitted)	Level 1			Level 2		Level 3		Total
Equity Income Fund
Option Contracts	$	(265	)	$	—	$	—	$	(265	)

# At cost, which approximates market value.

^{^^} Value of the security was determined using methods the Board has approved on the belief they reflect fair value.

See Notes to Financial Statements

112

Notes to Schedule of Investments (cont'd)

## At August 31, 2009, selected fund information on a U.S. federal income tax basis was as follows:

Neuberger Berman (000's omitted)	Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
Climate Change Fund	$	2,882	$	211	$	34	$	177
Emerging Markets Equity Fund		4,555		1,379		33		1,346
Equity Income Fund		62,672		3,586		1,500		2,086
Focus Fund		587,068		65,310		31,037		34,273
Genesis Fund		6,781,944		2,338,204		567,410		1,770,794
Guardian Fund		950,225		94,408		98,325		(3,917	)
International Fund		402,933		42,275		26,764		15,511
International Institutional Fund		228,520		18,618		18,761		(143	)
International Large Cap Fund		100,155		9,030		5,706		3,324
Large Cap Disciplined Growth Fund		115,463		10,637		277		10,360
Mid Cap Growth Fund		464,329		66,172		10,431		55,741
Partners Fund		2,489,577		477,638		354,434		123,204
Real Estate Fund		69,377		6,659		393		6,266
Regency Fund		75,047		8,858		10,073		(1,215	)
Select Equities Fund		47,575		3,881		125		3,756
Small and Mid Cap Growth Fund		5,644		676		190		486
Small Cap Growth Fund		202,667		31,567		1,334		30,233
Socially Responsive Fund		1,044,093		61,812		121,087		(59,275	)

* Security did not produce income during the last twelve months.

È All or a portion of this security is on loan (see Note A of Notes to Financial Statements).

^ Affiliated issuer (see Note F of Notes to Financial Statements).

‡ Managed by an affiliate of Management and could be deemed an affiliate of the fund and is segregated in connection with obligations for security lending (see Notes A & F of Notes to Financial Statements).

See Notes to Financial Statements

113

Notes to Schedule of Investments (cont'd)

‡‡ At August 31, 2009, Neuberger Berman Equity Income Fund had outstanding call and put options written as follows:

Shares		Securities and Options	Market Value of Options
	23,000	American Campus Communities, Call December 2009 @ 30	$	20,000
	10,000	AvalonBay Communities, Call October 2009 @ 75		8,000
	10,000	Diageo PLC ADR, Call October 2009 @ 60		25,000
	12,500	Digital Realty Trust, Call October 2009 @ 45		19,000
	6,500	Exelon Corp., Call October 2009 @ 55		2,000
	3,500	FPL Group, Call September 2009 @ 60		0
	13,500	Health Care REIT, Call December 2009 @ 45		23,000
	6,500	Johnson & Johnson, Call October 2009 @ 60		10,000
	2,000	Marsh & McLennan, Call January 2010 @ 25		2,000
	4,500	Norfolk Southern, Call December 2009 @ 55		4,000
	9,000	Norfolk Southern, Call September 2009 @ 45		18,000
	10,000	Phillip Morris International, Call September 2009 @ 48		1,000
	5,000	Potash Corp. of Saskatchewan, Call December 2009 @ 75		19,000
	5,000	Potash Corp. of Saskatchewan, Put September 2009 @ 80		5,000
	21,500	Realty Income, Call December 2009 @ 30		11,000
	15,000	Royal Gold, Inc., Put October 2009 @ 35		10,000
	15,000	Safeway Inc., Put December 2009 @ 17.5		10,000
	5,000	Schlumberger Ltd., Put November 2009 @ 45		5,000
	20,000	Spectra Energy, Call December 2009 @ 20		12,000
	25,500	Ventas, Inc., Call November 2009 @ 40		61,000
		Total	$	265,000

ñ Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be liquid. At August 31, 2009, these securities amounted to $2,721,000 or 4.1% of net assets for Equity Income Fund.

Ñ These securities have been deemed by the investment manager to be illiquid. At August 31, 2009, these securities amounted to $9,870,000 or 2.4% of net assets for International Fund.

µµ Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be illiquid and restricted. At August 31, 2009, these securities amounted to approximately $319,000 or 5.2% of net assets for Emerging Markets Equity Fund.

See Notes to Financial Statements

114

Notes to Schedule of Investments (cont'd)

(000's omitted) Restricted Security	Acquisition Date	Acquisition Cost		Acquisition Cost Percentage of Net Assets as of Acquisition Date			Value as of August 31, 2009		Fair Value Percentage of Net Assets as of August 31, 2009
Bharat Heavy Electricals	2/18/2009 – 8/10/2009	$	32		1.2	%	$	48		0.8	%
Cairn India	2/20/2009 – 7/29/2009		50		1.6	%		78		1.3	%
Grasim Industry	5/12/2009 – 7/29/2009		35		0.8	%		50		0.8	%
Hero Honda Motors	6/8/2009 & 7/29/2009		42		0.8	%		41		0.7	%
Punjab National Bank	2/18/2009 & 7/29/2009		26		0.9	%		44		0.7	%
Unitech Ltd.	6/30/2009 – 7/29/2009		49		1.1	%		58		0.9	%

µ Floating rate securities are securities whose yields vary with a designated market index or market rate. These securities are shown at their current rates as of August 31, 2009.

ØØ All or a portion of this security is segregated in connection with written options and/or obligations for security lending.

See Notes to Financial Statements

115

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116

Statements of Assets and Liabilities

Neuberger Berman Equity Funds
(000's omitted except per share amounts)

	CLIMATE CHANGE FUND			EMERGING MARKETS EQUITY FUND			EQUITY INCOME FUND			FOCUS FUND			GENESIS FUND
	August 31, 2009			August 31, 2009			August 31, 2009			August 31, 2009			August 31, 2009
Assets
Investments in securities, at value*† (Notes A & F)—see Schedule of Investments:
Unaffiliated issuers	$	3,059		$	5,901		$	64,758		$	574,738		$	4,340,279
Affiliated issuers		—			—			—			46,603			4,212,459
		3,059			5,901			64,758			621,341			8,552,738
Cash		—			—			240			—			—
Foreign currency		—			135			—			—			—
Deposits with brokers for open option contracts		—			—			1,877			—			—
Dividends and interest receivable		5			15			279			773			6,335
Receivable for securities sold		113			—			962			3,292			3,098
Receivable for Fund shares sold		2			5			555			98			13,757
Receivable from administrator—net (Note B)		—			140			—			—			—
Receivable for securities lending income—net (Note A)		—			—			—			16			—
Prepaid expenses and other assets		—			—			2			40			431
Total Assets		3,179			6,196			68,673			625,560			8,576,359
Liabilities
Options contracts written, at value (Note A)		—			—			265			—			—
Due to custodian		—			8			—			—			—
Payable for collateral on securities loaned (Note A)		—			—			—			46,099			—
Payable for securities purchased		62			1			1,986			3,613			5,411
Payable for Fund shares redeemed		1			—			108			286			11,411
Payable to investment manager—net (Notes A & B)		2			5			29			257			4,832
Payable to administrator—net (Note B)		15			—			2			133			1,966
Accrued expenses and other payables		70			77			111			277			877
Total Liabilities		150			91			2,501			50,665			24,497
Net Assets at value	$	3,029		$	6,105		$	66,172		$	574,895		$	8,551,862
Net Assets consist of:
Paid-in capital	$	4,708		$	4,730		$	68,291		$	669,368		$	7,602,049
Undistributed net investment income (loss)		—			—			365			4,523			(3	)
Distributions in excess of net investment income		(62	)		(45	)		—			—			—
Accumulated net realized gains (losses) on investments		(2,026	)		52			(4,795	)		(140,720	)		(835,000	)
Net unrealized appreciation (depreciation) in value of investments		409			1,368			2,311			41,724			1,784,816
Net Assets at value	$	3,029		$	6,105		$	66,172		$	574,895		$	8,551,862
Net Assets
Investor Class	$	—		$	—		$	—		$	540,912		$	1,626,817
Trust Class		—			—			—			23,747			3,244,145
Advisor Class		—			—			—			10,236			397,851
Institutional Class		1,510			4,054			18,883			—			3,283,049
Class A		1,332			1,821			43,023			—			—
Class C		187			230			4,266			—			—
Class R3		—			—			—			—			—

See Notes to Financial Statements

117

	GUARDIAN FUND			INTERNATIONAL FUND			INTERNATIONAL INSTITUTIONAL FUND			INTERNATIONAL LARGE CAP FUND			LARGE CAP DISCIPLINED GROWTH FUND
	August 31, 2009			August 31, 2009			August 31, 2009			August 31, 2009			August 31, 2009
Assets
Investments in securities, at value*† (Notes A & F)—see Schedule of Investments:
Unaffiliated issuers	$	943,148		$	402,860		$	223,829		$	101,146		$	125,823
Affiliated issuers		3,160			15,584			4,548			2,333			—
		946,308			418,444			228,377			103,479			125,823
Cash		—			—			—			—			—
Foreign currency		—			9,915			734			186			—
Deposits with brokers for open option contracts		—			—			—			—			—
Dividends and interest receivable		848			642			411			212			201
Receivable for securities sold		6,971			1,841			1,026			44			—
Receivable for Fund shares sold		305			91			8			56			1,655
Receivable from administrator—net (Note B)		—			—			67			6			46
Receivable for securities lending income—net (Note A)		4			8			5			1			—
Prepaid expenses and other assets		114			15			10			4			4
Total Assets		954,550			430,956			230,638			103,988			127,729
Liabilities
Options contracts written, at value (Note A)		—			—			—			—			—
Due to custodian		—			—			—			—			—
Payable for collateral on securities loaned (Note A)		3,212			15,301			4,414			2,248			—
Payable for securities purchased		1,581			3,367			2,090			481			2,150
Payable for Fund shares redeemed		1,021			1,359			52			1			739
Payable to investment manager—net (Notes A & B)		417			290			161			46			56
Payable to administrator—net (Note B)		223			125			—			—			—
Accrued expenses and other payables		378			256			127			99			184
Total Liabilities		6,832			20,698			6,844			2,875			3,129
Net Assets at value	$	947,718		$	410,258		$	223,794		$	101,113		$	124,600
Net Assets consist of:
Paid-in capital	$	1,071,855		$	639,985		$	401,041		$	167,562		$	121,895
Undistributed net investment income (loss)		5,195			—			—			226			120
Distributions in excess of net investment income		—			(464	)		(293	)		—			—
Accumulated net realized gains (losses) on investments		(130,884	)		(257,046	)		(181,935	)		(72,226	)		(10,995	)
Net unrealized appreciation (depreciation) in value of investments		1,552			27,783			4,981			5,551			13,580
Net Assets at value	$	947,718		$	410,258		$	223,794		$	101,113		$	124,600
Net Assets
Investor Class	$	875,486		$	208,808		$	—		$	—		$	11,709
Trust Class		71,017			201,450			—			28,904			—
Advisor Class		543			—			—			—			—
Institutional Class		54			—			223,794			67,725			23,336
Class A		510			—			—			4,033			63,650
Class C		54			—			—			396			25,850
Class R3		54			—			—			55			55

118

Statements of Assets and Liabilities (cont'd)

Neuberger Berman Equity Funds (cont'd)
(000's omitted except per share amounts)

	CLIMATE CHANGE FUND		EMERGING MARKETS EQUITY FUND		EQUITY INCOME FUND		FOCUS FUND		GENESIS FUND
	August 31, 2009		August 31, 2009		August 31, 2009		August 31, 2009		August 31, 2009
Shares Outstanding ($.001 par value; unlimited shares authorized)
Investor Class		—		—		—		32,597		66,706
Trust Class		—		—		—		1,956		92,701
Advisor Class		—		—		—		1,219		19,546
Institutional Class		240		288		2,161		—		97,586
Class A		212		130		4,935		—		—
Class C		30		16		490		—		—
Class R3		—		—		—		—		—
Net Asset Value, offering and redemption price per share
Investor Class	$	—	$	—	$	—	$	16.59	$	24.39
Trust Class		—		—		—		12.14		35.00
Advisor Class		—		—		—		8.40		20.35
Institutional Class		6.29		14.05		8.74		—		33.64
Class R3		—		—		—		—		—
Net Asset Value and redemption price per share
Class A	$	6.27	$	14.02	$	8.72	$	—	$	—
Offering Price per share
Class A‡	$	6.65	$	14.88	$	9.25	$	—	$	—
Net Asset Value and offering price per share
Class C^	$	6.21	$	13.96	$	8.70	$	—	$	—
†Securities on loan, at value:
Unaffiliated issuers	$	—	$	—	$	—	$	45,136	$	—
*Cost of Investments:
Unaffiliated issuers	$	2,650	$	4,533	$	62,453	$	533,014	$	3,226,646
Affiliated issuers		—		—		—		46,603		3,541,276
Total cost of investments	$	2,650	$	4,533	$	62,453	$	579,617	$	6,767,922
Total cost of foreign currency	$	—	$	135	$	—	$	—	$	—

‡ On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the fund's prospectus, offering price is reduced.

^ Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

See Notes to Financial Statements

119

	GUARDIAN FUND		INTERNATIONAL FUND		INTERNATIONAL INSTITUTIONAL FUND		INTERNATIONAL LARGE CAP FUND		LARGE CAP DISCIPLINED GROWTH FUND
	August 31, 2009		August 31, 2009		August 31, 2009		August 31, 2009		August 31, 2009
Shares Outstanding ($.001 par value; unlimited shares authorized)
Investor Class		78,509		15,375		—		—		1,939
Trust Class		8,120		13,403		—		3,644		—
Advisor Class		55		—		—		—		—
Institutional Class		5		—		29,737		8,537		3,859
Class A		58		—		—		511		10,542
Class C		5		—		—		50		4,293
Class R3		5		—		—		7		9
Net Asset Value, offering and redemption price per share
Investor Class	$	11.15	$	13.58	$	—	$	—	$	6.04
Trust Class		8.75		15.03		—		7.93		—
Advisor Class		9.87		—		—		—		—
Institutional Class		11.16		—		7.53		7.93		6.05
Class R3		9.88		—		—		7.90		6.03
Net Asset Value and redemption price per share
Class A	$	8.75	$	—	$	—	$	7.90	$	6.04
Offering Price per share
Class A‡	$	9.28	$	—	$	—	$	8.38	$	6.41
Net Asset Value and offering price per share
Class C^	$	9.86	$	—	$	—	$	7.87	$	6.02
†Securities on loan, at value:
Unaffiliated issuers	$	3,148	$	14,664	$	4,255	$	2,172	$	—
*Cost of Investments:
Unaffiliated issuers	$	941,588	$	375,087	$	218,848	$	95,602	$	112,243
Affiliated issuers		3,160		15,584		4,548		2,333		—
Total cost of investments	$	944,748	$	390,671	$	223,396	$	97,935	$	112,243
Total cost of foreign currency	$	—	$	9,898	$	734	$	186	$	—

120

Statements of Assets and Liabilities (cont'd)

Neuberger Berman Equity Funds
(000's omitted except per share amounts)

	MID CAP GROWTH FUND			PARTNERS FUND			REAL ESTATE FUND			REGENCY FUND
	August 31, 2009			August 31, 2009			August 31, 2009			August 31, 2009
Assets
Investments in securities, at value*† (Notes A & F)—see Schedule of Investments:
Unaffiliated issuers	$	450,714		$	2,490,591		$	66,407		$	70,144
Affiliated issuers		69,356			122,190			9,236			3,688
		520,070			2,612,781			75,643			73,832
Cash		—			—			—			—
Foreign currency		—			—			—			—
Deposits with brokers for open option contracts		—			—			—			—
Dividends and interest receivable		249			3,284			182			144
Receivable for securities sold		1,923			25,503			423			390
Receivable for Fund shares sold		2,060			1,546			188			475
Receivable from administrator—net (Note B)		—			—			28			—
Receivable for securities lending income—net (Note A)		12			71			1			2
Prepaid expenses and other assets		34			138			3			4
Total Assets		524,348			2,643,323			76,468			74,847
Liabilities
Options contracts written, at value (Note A)		—			—			—			—
Due to custodian		—			—			—			152
Payable for collateral on securities loaned (Note A)		68,957			120,963			9,075			3,812
Payable for securities purchased		3,783			15,579			658			36
Payable for Fund shares redeemed		151			3,646			214			72
Payable to investment manager—net (Notes A & B)		202			984			43			33
Payable to administrator—net (Note B)		65			790			—			15
Accrued expenses and other payables		201			544			92			83
Total Liabilities		73,359			142,506			10,082			4,203
Net Assets at value	$	450,989		$	2,500,817		$	66,386		$	70,644
Net Assets consist of:
Paid-in capital	$	718,754		$	2,929,578		$	85,745		$	101,372
Undistributed net investment income (loss)		(1	)		16,033			—			593
Distributions in excess of net investment income		—			—			—			—
Accumulated net realized gains (losses) on investments		(325,525	)		(572,218	)		(32,676	)		(31,379	)
Net unrealized appreciation (depreciation) in value of investments		57,761			127,424			13,317			58
Net Assets at value	$	450,989		$	2,500,817		$	66,386		$	70,644
Net Assets
Investor Class	$	280,880		$	1,337,246		$	—		$	43,785
Trust Class		16,350			622,588			63,045			26,859
Advisor Class		6,881			379,688			—			—
Institutional Class		146,645			161,295			3,341			—
Class A		122			—			—			—
Class C		56			—			—			—
Class R3		55			—			—			—

See Notes to Financial Statements

121

	SELECT EQUITIES FUND			SMALL AND MID CAP GROWTH FUND			SMALL CAP GROWTH FUND				SOCIALLY RESPONSIVE FUND
	August 31, 2009			August 31, 2009			August 31, 2009				August 31, 2009
Assets
Investments in securities, at value*† (Notes A & F)—see Schedule of Investments:
Unaffiliated issuers	$	51,331		$	6,130		$	200,912			$	980,486
Affiliated issuers		—			—			31,988				4,332
		51,331			6,130			232,900				984,818
Cash		—			—			—				—
Foreign currency		—			—			—				—
Deposits with brokers for open option contracts		—			—			—				—
Dividends and interest receivable		116			2			1				753
Receivable for securities sold		393			171			3,449				7,218
Receivable for Fund shares sold		535			—			381				1,229
Receivable from administrator—net (Note B)		—			18			60				—
Receivable for securities lending income—net (Note A)		—			—			6				5
Prepaid expenses and other assets		3			—			13				49
Total Assets		52,378			6,321			236,810				994,072
Liabilities
Options contracts written, at value (Note A)		—			—			—				—
Due to custodian		—			—			—				—
Payable for collateral on securities loaned (Note A)		—			—			32,178				4,268
Payable for securities purchased		—			175			4,976				3,786
Payable for Fund shares redeemed		4			4			670				992
Payable to investment manager—net (Notes A & B)		23			3			155				430
Payable to administrator—net (Note B)		1			—			—				270
Accrued expenses and other payables		83			57			121				149
Total Liabilities		111			239			38,100				9,895
Net Assets at value	$	52,267		$	6,082		198,710			$	984,177
Net Assets consist of:
Paid-in capital	$	49,606		$	7,963		$	385,108			$	1,188,392
Undistributed net investment income (loss)		90			(29	)		—				3,543
Distributions in excess of net investment income		—			—			—				—
Accumulated net realized gains (losses) on investments		(1,364	)		(2,389	)		(220,977	)			(155,714	)
Net unrealized appreciation (depreciation) in value of investments		3,935			537			34,579				(52,044	)
Net Assets at value	$	52,267		$	6,082		$	198,710			$	984,177
Net Assets
Investor Class	$	—		$	—		$	144,118			$	597,052
Trust Class		—			6,082			35,187				308,241
Advisor Class		—			—			11,711				—
Institutional Class		6,517			—			7,484				77,644
Class A		38,318			—			85				1,091
Class C		7,432			—			69				95
Class R3		—			—			56				54

122

Statements of Assets and Liabilities (cont'd)

Neuberger Berman Equity Funds (cont'd)
(000's omitted except per share amounts)

	MID CAP GROWTH FUND		PARTNERS FUND		REAL ESTATE FUND		REGENCY FUND
	August 31, 2009		August 31, 2009		August 31, 2009		August 31, 2009
Shares Outstanding ($.001 par value; unlimited shares authorized)
Investor Class		37,806		61,700		—		3,955
Trust Class		1,446		37,340		8,146		2,779
Advisor Class		592		26,336		—		—
Institutional Class		19,556		7,402		431		—
Class A		11		—		—		—
Class C		5		—		—		—
Class R3		5		—		—		—
Net Asset Value, offering and redemption price per share
Investor Class	$	7.43	$	21.67	$	—	$	11.07
Trust Class		11.31		16.67		7.74		9.66
Advisor Class		11.63		14.42		—		—
Institutional Class		7.50		21.79		7.76		—
Class R3		11.63		—		—		—
Net Asset Value and redemption price per share
Class A	$	11.31	$	—	$	—	$	—
Offering Price per share
Class A‡	$	12.00	$	—	$	—	$	—
Net Asset Value and offering price per share
Class C^	$	11.62	$	—	$	—	$	—
†Securities on loan, at value:
Unaffiliated issuers	$	67,391	$	118,395	$	8,890	$	3,732
*Cost of Investments:
Unaffiliated issuers	$	392,953	$	2,363,167	$	53,090	$	70,086
Affiliated issuers		69,356		122,190		9,236		3,688
Total cost of investments	$	462,309	$	2,485,357	$	62,326	$	73,774
Total cost of foreign currency	$	—	$	—	$	—	$	—

‡ On single retail sales of less than $50,000. On sales of $50,000 or more or in certain other circumstances described in the fund's prospectus, offering price is reduced.

^ Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

See Notes to Financial Statements

123

	SELECT EQUITIES FUND		SMALL AND MID CAP GROWTH FUND		SMALL CAP GROWTH FUND		SOCIALLY RESPONSIVE FUND
	August 31, 2009		August 31, 2009		August 31, 2009		August 31, 2009
Shares Outstanding ($.001 par value; unlimited shares authorized)
Investor Class		—		—		10,956		31,864
Trust Class		—		753		2,438		23,925
Advisor Class		—		—		1,218		—
Institutional Class		808		—		566		4,140
Class A		4,763		—		6		85
Class C		936		—		7		7
Class R3		—		—		6		4
Net Asset Value, offering and redemption price per share
Investor Class	$	—	$	—	$	13.15	$	18.74
Trust Class		—		8.07		14.43		12.88
Advisor Class		—		—		9.61		—
Institutional Class		8.06		—		13.23		18.75
Class R3		—		—		9.61		12.87
Net Asset Value and redemption price per share
Class A	$	8.05	$	—	$	14.43	$	12.88
Offering Price per share
Class A‡	$	8.54	$	—	$	15.31	$	13.67
Net Asset Value and offering price per share
Class C^	$	7.94	$	—	$	9.60	$	12.86
†Securities on loan, at value:
Unaffiliated issuers	$	—	$	—	$	31,486	$	4,184
*Cost of Investments:
Unaffiliated issuers	$	47,396	$	5,593	$	166,333	$	1,032,522
Affiliated issuers		—		—		31,988		4,332
Total cost of investments	$	47,396	$	5,593	$	198,321	$	1,036,854
Total cost of foreign currency	$	—	$	—	$	—	$	—

124

Statements of Operations

Neuberger Berman Equity Funds
(000's omitted)

	CLIMATE CHANGE FUND			EMERGING MARKETS EQUITY FUND			EQUITY INCOME FUND			FOCUS FUND			GENESIS FUND
	For the Year Ended August 31, 2009			For the Period from October 8, 2008 (Commencement of Operations) to August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009
Investment Income:
Income (Note A):
Dividend income—unaffiliated issuers	$	47		$	98		$	1,074		$	9,588		$	36,178
Dividend income—affiliated issuers (Note F)		—			—			—			—			41,612
Interest income—unaffiliated issuers		—			—			353			4			268
Income from securities loaned—net (Note F)		—			—			—			587			—
Income from investments in affiliated issuers (Note F)		2			4			25			189			4,922
Foreign taxes withheld		(1	)		(12	)		(35	)		(97	)		(340	)
Total income	$	48		$	90		$	1,417		$	10,271		$	82,640
Expenses:
Investment management fees (Notes A & B)		23			32			178			2,873			53,314
Administration fees (Note B)		2			2			19			323			4,806
Administration fees (Note B):
Investor Class		—			—			—			1,007			2,955
Trust Class		—			—			—			84			10,540
Advisor Class		—			—			—			33			1,251
Institutional Class		1			2			3			—			2,758
Class A		2			1			54			—			—
Class C		—			—			4			—			—
Class R3		—			—			—			—			—
Distribution fees (Note B):
Trust Class		—			—			—			25			—
Advisor Class		—			—			—			24			920
Class A		3			1			67			—			—
Class C		1			1			19			—			—
Shareholder servicing agent fees:
Investor Class		—			—			—			428			1,487
Trust Class		—			—			—			24			63
Advisor Class		—			—			—			23			35
Institutional Class		13			4			3			—			23
Class A		9			3			89			—			—
Class C		2			3			3			—			—
Class R3		—			—			—			—			—
Organization expense (Note A)		—			72			—			—			—
Audit fees		31			25			57			57			57
Custodian fees (Note B)		40			86			38			170			1,102
Insurance expense		—			—			1			34			416
Legal fees		48			157			71			56			74
Registration and filing fees		50			39			57			49			273
Shareholder reports		—			10			11			142			1,901
Trustees' fees and expenses		40			40			45			45			42
Miscellaneous		—			12			4			48			557
Total expenses		265			490			723			5,445			82,574

See Notes to Financial Statements

125

	GUARDIAN FUND			INTERNATIONAL FUND			INTERNATIONAL INSTITUTIONAL FUND			INTERNATIONAL LARGE CAP FUND			LARGE CAP DISCIPLINED GROWTH FUND
	For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009
Investment Income:
Income (Note A):
Dividend income—unaffiliated issuers	$	14,569		$	11,710		$	6,476		$	2,838		$	659
Dividend income—affiliated issuers (Note F)		—			—			—			—			—
Interest income—unaffiliated issuers		5			36			3			1			1
Income from securities loaned—net (Note F)		161			603			318			152			—
Income from investments in affiliated issuers (Note F)		129			259			147			67			4
Foreign taxes withheld		(135	)		(963	)		(535	)		(260	)		(3	)
Total income	$	14,729		$	11,645		$	6,409		$	2,798		$	661
Expenses:
Investment management fees (Notes A & B)		4,646			3,516			1,926			529			224
Administration fees (Note B)		540			252			136			58			24
Administration fees (Note B):
Investor Class		1,663			406			—			—			19
Trust Class		233			734			—			88			—
Advisor Class		2			—			—			—			—
Institutional Class		—			—			204			61			4
Class A		—			—			—			4			36
Class C		—			—			—			—			17
Class R3		—			—			—			—			—
Distribution fees (Note B):
Trust Class		68			—			—			26			—
Advisor Class		1			—			—			—			—
Class A		—			—			—			5			45
Class C		—			—			—			2			83
Shareholder servicing agent fees:
Investor Class		870			223			—			—			37
Trust Class		25			128			—			34			—
Advisor Class		22			—			—			—			—
Institutional Class		1			—			24			31			13
Class A		1			—			—			10			32
Class C		1			—			—			3			18
Class R3		1			—			—			1			1
Organization expense (Note A)		—			—			—			—			—
Audit fees		57			59			59			60			21
Custodian fees (Note B)		215			409			263			174			60
Insurance expense		52			30			16			7			2
Legal fees		65			49			49			59			99
Registration and filing fees		113			46			44			127			40
Shareholder reports		154			116			42			34			26
Trustees' fees and expenses		45			45			45			45			45
Miscellaneous		79			67			52			27			4
Total expenses		8,854			6,080			2,860			1,385			850

126

Statements of Operations (cont'd)

Neuberger Berman Equity Funds (cont'd)
(000's omitted)

	CLIMATE CHANGE FUND			EMERGING MARKETS EQUITY FUND			EQUITY INCOME FUND			FOCUS FUND			GENESIS FUND
	For the Year Ended August 31, 2009			For the Period from October 8, 2008 (Commencement of Operations) to August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009
Expenses reimbursed by administrator (Note B)		(235	)		(448	)		(342	)		(3	)		(510	)
Investment management fees waived (Note A)		—			—			(3	)		(15	)		(389	)
Expenses reduced by custodian fee expense offset arrangement (Note B)		—			—			—			—			(1	)
Total net expenses		30			42			378			5,427			81,674
Net investment income (loss)	$	18		$	48		$	1,039		$	4,844		$	966
Realized and Unrealized Gain (Loss) on Investments (Note A):
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		(1,753	)		51			(4,994	)		(140,118	)		(297,543	)
Sales of investment securities of affiliated issuers		—			—			—			(85	)		(535,194	)
Foreign currency		—			(15	)		(7	)		—			(3	)
Net increase from payments by affiliates (Note B)		—			1			—			—			—
Options written		—			—			184			—			—
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		631			1,368			2,046			(58,876	)		(710,128	)
Affiliated investment securities		—			—			—			(505	)		(1,713,558	)
Foreign currency		—			—			—			—			—
Options written		—			—			1			—			—
Net gain (loss) on investments		(1,122	)		1,405			(2,770	)		(199,584	)		(3,256,426	)
Net increase (decrease) in net assets resulting from operations	$	(1,104	)	$	1,453		$	(1,731	)	$	(194,740	)	$	(3,255,460	)

See Notes to Financial Statements

127

	GUARDIAN FUND			INTERNATIONAL FUND			INTERNATIONAL INSTITUTIONAL FUND			INTERNATIONAL LARGE CAP FUND			LARGE CAP DISCIPLINED GROWTH FUND
	For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009
Expenses reimbursed by administrator (Note B)		(23	)		—			(1,006	)		(398	)		(330	)
Investment management fees waived (Note A)		(15	)		(16	)		(9	)		(5	)		(1	)
Expenses reduced by custodian fee expense offset arrangement (Note B)		—			(1	)		—			—			—
Total net expenses		8,816			6,063			1,845			982			519
Net investment income (loss)	$	5,913		$	5,582		$	4,564		$	1,816		$	142
Realized and Unrealized Gain (Loss) on Investments (Note A):
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		(124,413	)		(230,634	)		(147,350	)		(61,803	)		(3,314	)
Sales of investment securities of affiliated issuers		(1,262	)		(214	)		(124	)		21			—
Foreign currency		(371	)		(1,658	)		(966	)		(373	)		—
Net increase from payments by affiliates (Note B)		—			—			—			—			—
Options written		—			—			—			—			—
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		(197,850	)		31,603			29,327			21,541			12,067
Affiliated investment securities		—			—			—			—			—
Foreign currency		42			186			30			25			—
Options written		—			—			—			—			—
Net gain (loss) on investments		(323,854	)		(200,717	)		(119,083	)		(40,589	)		8,753
Net increase (decrease) in net assets resulting from operations	$	(317,941	)	$	(195,135	)	$	(114,519	)	$	(38,773	)	$	8,895

128

Statements of Operations (cont'd)

Neuberger Berman Equity Funds
(000's omitted)

	MID CAP GROWTH FUND			PARTNERS FUND			REAL ESTATE FUND			REGENCY FUND
	For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009
Investment Income:
Income (Note A):
Dividend income—unaffiliated issuers	$	2,080		$	35,078		$	1,933		$	1,488
Dividend income—affiliated issuers (Note F)		—			—			—			—
Interest income—unaffiliated issuers		6			49			—			1
Income from securities loaned—net (Note F)		719			2,467			94			75
Income from investments in affiliated issuers (Note F)		221			180			11			37
Foreign taxes withheld		(23	)		(292	)		(5	)		(6	)
Total income	$	3,003		$	37,482		$	2,033		$	1,595
Expenses:
Investment management fees (Notes A & B)		1,945			10,158			354			409
Administration fees (Note B)		215			1,293			27			45
Administration fees (Note B):
Investor Class		538			2,336			—			82
Trust Class		38			1,837			147			113
Advisor Class		12			1,107			—			—
Institutional Class		67			109			1			—
Class A		—			—			—			—
Class C		—			—			—			—
Class R3		—			—			—			—
Distribution fees (Note B):
Trust Class		—			540			43			33
Advisor Class		9			814			—			—
Class A		—			—			—			—
Class C		—			—			—			—
Shareholder servicing agent fees:
Investor Class		461			1,031			—			70
Trust Class		20			32			45			49
Advisor Class		19			31			—			—
Institutional Class		23			23			14			—
Class A		1			—			—			—
Class C		1			—			—			—
Class R3		1			—			—			—
Organization expense (Note A)		—			—			—			—
Audit fees		21			57			59			21
Custodian fees (Note B)		148			468			31			66
Insurance expense		19			136			2			5
Legal fees		62			52			44			43
Registration and filing fees		111			85			69			68
Shareholder reports		73			460			16			28
Trustees' fees and expenses		45			45			45			45
Miscellaneous		33			173			5			14
Total expenses		3,862			20,787			902			1,091

See Notes to Financial Statements

129

	SELECT EQUITIES FUND			SMALL AND MID CAP GROWTH FUND		SMALL CAP GROWTH FUND		SOCIALLY RESPONSIVE FUND
	For the Year Ended August 31, 2009			For the Year Ended August 31, 2009		For the Year Ended August 31, 2009		For the Year Ended August 31, 2009
Investment Income:
Income (Note A):
Dividend income—unaffiliated issuers	$	409		$	23	$	507	$	12,515
Dividend income—affiliated issuers (Note F)		—			—		—		—
Interest income—unaffiliated issuers		2			—		2		101
Income from securities loaned—net (Note F)		—			—		295		131
Income from investments in affiliated issuers (Note F)		35			4		81		—
Foreign taxes withheld		(12	)		—		—		(208	)
Total income	$	434		$	27	$	885	$	12,539
Expenses:
Investment management fees (Notes A & B)		138			30		1,834		4,497
Administration fees (Note B)		15			3		130		521
Administration fees (Note B):
Investor Class		—			—		346		1,087
Trust Class		—			19		95		902
Advisor Class		—			—		35		—
Institutional Class		2			—		4		54
Class A		40			—		—		—
Class C		6			—		—		—
Class R3		—			—		—		—
Distribution fees (Note B):
Trust Class		—			6		28		265
Advisor Class		—			—		26		—
Class A		50			—		—		—
Class C		31			—		—		—
Shareholder servicing agent fees:
Investor Class		—			—		161		357
Trust Class		—			28		22		58
Advisor Class		—			—		20		—
Institutional Class		22			—		18		14
Class A		71			—		1		1
Class C		11			—		1		1
Class R3		—			—		1		1
Organization expense (Note A)		—			—		—		—
Audit fees		40			21		21		21
Custodian fees (Note B)		34			11		127		240
Insurance expense		1			—		7		45
Legal fees		28			43		74		37
Registration and filing fees		46			49		138		103
Shareholder reports		—			9		181		212
Trustees' fees and expenses		45			45		45		45
Miscellaneous		—			2		22		67
Total expenses		580			266		3,337		8,528

130

Statements of Operations (cont'd)

Neuberger Berman Equity Funds (cont'd)
(000's omitted)

	MID CAP GROWTH FUND			PARTNERS FUND			REAL ESTATE FUND			REGENCY FUND
	For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009
Expenses reimbursed by administrator (Note B)		(103	)		(10	)		(463	)		(111	)
Investment management fees waived (Note A)		(19	)		(20	)		(1	)		(2	)
Expenses reduced by custodian fee expense offset arrangement (Note B)		(1	)		(1	)		—			—
Total net expenses		3,739			20,756			438			978
Net investment income (loss)	$	(736	)	$	16,726		$	1,595		$	617
Realized and Unrealized Gain (Loss) on Investments (Note A):
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		(67,393	)		(573,688	)		(21,990	)		(30,862	)
Sales of investment securities of affiliated issuers		526			1,909			173			(84	)
Foreign currency		(1	)		(675	)		—			—
Net increase from payments by affiliates (Note B)		—			—			—			—
Options written		—			—			—			—
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		(28,480	)		(472,844	)		12,292			(4,490	)
Affiliated investment securities		—			—			—			—
Foreign currency		1			55			—			—
Options written		—			—			—			—
Net gain (loss) on investments		(95,347	)		(1,045,243	)		(9,525	)		(35,436	)
Net increase (decrease) in net assets resulting from operations	$	(96,083	)	$	(1,028,517	)	$	(7,930	)	$	(34,819	)

See Notes to Financial Statements

131

	SELECT EQUITIES FUND			SMALL AND MID CAP GROWTH FUND			SMALL CAP GROWTH FUND			SOCIALLY RESPONSIVE FUND
	For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009			For the Year Ended August 31, 2009
Expenses reimbursed by administrator (Note B)		(258	)		(204	)		(477	)		(20	)
Investment management fees waived (Note A)		(6	)		—			(5	)		—
Expenses reduced by custodian fee expense offset arrangement (Note B)		—			—			—			(3	)
Total net expenses		316			62			2,855			8,505
Net investment income (loss)	$	118		$	(35	)	$	(1,970	)	$	4,034
Realized and Unrealized Gain (Loss) on Investments (Note A):
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers		(1,082	)		(1,618	)		(90,281	)		(148,654	)
Sales of investment securities of affiliated issuers		—			—			(349	)		(182	)
Foreign currency		—			—			—			(191	)
Net increase from payments by affiliates (Note B)		—			—			—			—
Options written		—			—			—			—
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities		4,057			(137	)		10,318			(126,684	)
Affiliated investment securities		—			—			—			—
Foreign currency		—			—			—			31
Options written		—			—			—			—
Net gain (loss) on investments		2,975			(1,755	)		(80,312	)		(275,680	)
Net increase (decrease) in net assets resulting from operations	$	3,093		$	(1,790	)	$	(82,282	)	$	(271,646	)

132

Statements of Changes in Net Assets

Neuberger Berman Equity Funds
(000's omitted)

	CLIMATE CHANGE FUND						EMERGING MARKETS EQUITY FUND			EQUITY INCOME FUND
	Year Ended August 31,			Period from May 1, 2008 (Commencement of Operations) to August 31,			Period from October 8, 2008 (Commencement of Operations) to August 31,			Year Ended August 31,			Year Ended August 31,
	2009			2008			2009			2009			2008
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	18		$	20		$	48		$	1,039		$	228
Net realized gain (loss) on investments		(1,753	)		(276	)		36			(4,817	)		206
Net increase from payments by affiliates		—			—			1			—			—
Change in net unrealized appreciation (depreciation) of investments		631			(222	)		1,368			2,047			136
Net increase (decrease) in net assets resulting from operations		(1,104	)		(478	)		1,453			(1,731	)		570
Distributions to Shareholders From (Note A):
Net investment income:
Investor Class		—			—			—			—			—
Trust Class		—			—			—			—			(110	)
Advisor Class		—			—			—			—			—
Institutional Class		(51	)		—			(73	)		(83	)		(30	)
Class A		(44	)		—			(3	)		(593	)		(34	)
Class C		(3	)		—			(2	)		(33	)		—
Net realized gain on investments:
Investor Class		—			—			—			—			—
Trust Class		—			—			—			—			(122	)
Advisor Class		—			—			—			—			—
Institutional Class		—			—			—			(8	)		—
Class A		—			—			—			(195	)		—
Class C		—			—			—			(11	)		—
Tax Return of Capital:
Investor Class		—			—			—			—			—
Trust Class		—			—			—			—			—
Advisor Class		—			—			—			—			—
Institutional Class		—			—			—			—			—
Total distributions to shareholders		(98	)		—			(78	)		(923	)		(296	)
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Investor Class		—			—			—			—			—
Trust Class		—			—			—			—			—
Advisor Class		—			—			—			—			—
Institutional Class		—			2,300			2,803			17,793			—
Class A		766			2,062			1,839			34,665			23,659
Class C		131			103			230			3,843			1,362
Class R3		—			—			—			—			—
Proceeds from reinvestment of dividends and distributions:
Investor Class		—			—			—			—			—
Trust Class		—			—			—			—			232
Advisor Class		—			—			—			—			—
Institutional Class		51			—			73			67			30
Class A		39			—			3			645			34
Class C		3			—			2			19			—

See Notes to Financial Statements

133

	FOCUS FUND						GENESIS FUND
	Year Ended August 31,			Year Ended August 31,			Year Ended August 31,			Year Ended August 31,
	2009			2008			2009			2008
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	4,844		$	5,189		$	966		$	(21,135	)
Net realized gain (loss) on investments		(140,203	)		89,847			(832,740	)		656,988
Net increase from payments by affiliates		—			—			—			—
Change in net unrealized appreciation (depreciation) of investments		(59,381	)		(161,335	)		(2,423,686	)		518,219
Net increase (decrease) in net assets resulting from operations		(194,740	)		(66,299	)		(3,255,460	)		1,154,072
Distributions to Shareholders From (Note A):
Net investment income:
Investor Class		(4,182	)		(4,520	)		—			(8,679	)
Trust Class		(216	)		(251	)		—			(6,795	)
Advisor Class		(101	)		(93	)		—			(1,175	)
Institutional Class		—			—			—			(16,557	)
Class A		—			—			—			—
Class C		—			—			—			—
Net realized gain on investments:
Investor Class		(67,093	)		(170,665	)		(80,456	)		(311,099	)
Trust Class		(3,422	)		(12,027	)		(173,777	)		(714,962	)
Advisor Class		(1,281	)		(3,835	)		(19,689	)		(85,542	)
Institutional Class		—			—			(168,141	)		(580,084	)
Class A		—			—			—			—
Class C		—			—			—			—
Tax Return of Capital:
Investor Class		—			—			(4	)		—
Trust Class		—			—			(6	)		—
Advisor Class		—			—			(1	)		—
Institutional Class		—			—			(6	)		—
Total distributions to shareholders		(76,295	)		(191,391	)		(442,080	)		(1,724,893	)
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Investor Class		7,825			11,833			329,375			326,391
Trust Class		6,788			7,677			732,619			1,117,558
Advisor Class		1,361			2,397			127,612			168,479
Institutional Class		—			—			707,914			1,544,706
Class A		—			—			—			—
Class C		—			—			—			—
Class R3		—			—			—			—
Proceeds from reinvestment of dividends and distributions:
Investor Class		62,415			151,938			77,477			308,158
Trust Class		3,550			12,094			161,758			700,429
Advisor Class		1,369			3,890			19,082			84,454
Institutional Class		—			—			167,662			593,818
Class A		—			—			—			—
Class C		—			—			—			—

134

Statements of Changes in Net Assets (cont'd)

Neuberger Berman Equity Funds (cont'd)
(000's omitted)

	CLIMATE CHANGE FUND					EMERGING MARKETS EQUITY FUND			EQUITY INCOME FUND
	Year Ended August 31,			Period from May 1, 2008 (Commencement of Operations) to August 31,		Period from October 8, 2008 (Commencement of Operations) to August 31,			Year Ended August 31,			Year Ended August 31,
	2009			2008		2009			2009			2008
Proceeds from shares issued in connection with mergers (Note H)
Investor Class		—			—		—			—			—
Advisor Class		—			—		—			—			—
Institutional Class		—			—		—			—			—
Class A		—			—		—			—			—
Class C		—			—		—			—			—
Proceeds from conversion of Trust Class or Class A shares (Note H):
Investor Class		—			—		—			—			—
Trust Class		—			—		—			—			(5,654	)
Institutional Class		—			—		—			—			5,654
Class A		—			—		—
Payments for shares redeemed:
Investor Class		—			—		—			—			—
Trust Class		—			—		—			—			(200	)
Advisor Class		—			—		—			—			—
Institutional Class		—			—		—			(4,176	)		—
Class A		(740	)		—		(158	)		(13,462	)		(187	)
Class C		(6	)		—		(62	)		(978	)		(179	)
Redemption fees retained:
Investor Class		—			—		—			—			—
Trust Class		—			—		—			—			—
Institutional Class		—			—		—			—			—
Net increase (decrease) from Fund share transactions		244			4,465		4,730			38,416			24,751
Net Increase (Decrease) in Net Assets		(958	)		3,987		6,105			35,762			25,025
Net Assets:
Beginning of year		3,987			—		—			30,410			5,385
End of year	$	3,029		$	3,987	$	6,105		$	66,172		$	30,410
Undistributed net investment income (loss) at end of year	$	—		$	18	$	—		$	365		$	58
Distributions in excess of net investment income at end of year	$	(62	)	$	—	$	(45	)	$	—		$	—

See Notes to Financial Statements

135

	FOCUS FUND						GENESIS FUND
	Year Ended August 31,			Year Ended August 31,			Year Ended August 31,			Year Ended August 31,
	2009			2008			2009			2008
Proceeds from shares issued in connection with mergers (Note H)
Investor Class		—			—			—			205,864
Advisor Class		—			—			—			11,848
Institutional Class		—			—			—			—
Class A		—			—			—			—
Class C		—			—			—			—
Proceeds from conversion of Trust Class or Class A shares (Note H):
Investor Class		—			—			—			—
Trust Class		—			—			—			—
Institutional Class		—			—			—			—
Class A
Payments for shares redeemed:
Investor Class		(73,700	)		(150,638	)		(475,531	)		(389,364	)
Trust Class		(13,371	)		(34,425	)		(1,020,015	)		(1,749,307	)
Advisor Class		(4,156	)		(7,419	)		(167,155	)		(182,141	)
Institutional Class		—			—			(976,050	)		(442,834	)
Class A		—			—			—			—
Class C		—			—			—			—
Redemption fees retained:
Investor Class		—			—			—			—
Trust Class		—			—			—			—
Institutional Class		—			—			—			—
Net increase (decrease) from Fund share transactions		(7,919	)		(2,653	)		(315,252	)		2,298,059
Net Increase (Decrease) in Net Assets		(278,954	)		(260,343	)		(4,012,792	)		1,727,238
Net Assets:
Beginning of year		853,849			1,114,192			12,564,654			10,837,416
End of year	$	574,895		$	853,849		$	8,551,862		$	12,564,654
Undistributed net investment income (loss) at end of year	$	4,523		$	4,780		$	(3	)	$	—
Distributions in excess of net investment income at end of year	$	—		$	—		$	—		$	(36,478	)

136

Statements of Changes in Net Assets (cont'd)

Neuberger Berman Equity Funds
(000's omitted)

	GUARDIAN FUND						INTERNATIONAL FUND						INTERNATIONAL INSTITUTIONAL FUND
	Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Year Ended August 31, 2008
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	5,913		$	8,526		$	5,582		$	19,675		$	4,564		$	11,671
Net realized gain (loss) on investments		(126,046	)		144,289			(232,506	)		18,355			(148,440	)		(23,075	)
Net increase from payments by affiliates		—			—			—			—			—			—
Change in net unrealized appreciation (depreciation) of investments		(197,808	)		(234,042	)		31,789			(234,868	)		29,357			(78,980	)
Net increase (decrease) in net assets resulting from operations		(317,941	)		(81,227	)		(195,135	)		(196,838	)		(114,519	)		(90,384	)
Distributions to Shareholders From (Note A):
Net investment income:
Investor Class		(3,980	)		(9,563	)		(6,506	)		(19,410	)		—			—
Trust Class		(295	)		(768	)		(5,862	)		(19,811	)		—			—
Advisor Class		—			—			—			—			—			—
Institutional Class		—			—			—			—			(9,897	)		(19,663	)
Class A		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Net realized gain on investments:
Investor Class		(94,513	)		(161,566	)		—			(80,957	)		—			—
Trust Class		(7,812	)		(13,458	)		—			(94,488	)		—			—
Advisor Class		(62	)		(113	)		—			—			—			—
Institutional Class		—			—			—			—			—			(76,882	)
Class A		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Tax Return of Capital:
Investor Class		—			—			—			—			—			—
Trust Class		—			—			—			—			—			—
Advisor Class		—			—			—			—			—			—
Institutional Class		—			—			—			—			—			—
Total distributions to shareholders		(106,662	)		(185,468	)		(12,368	)		(214,666	)		(9,897	)		(96,545	)
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Investor Class		42,010			72,374			19,420			41,919			—			—
Trust Class		12,413			16,804			30,446			87,306			—			—
Advisor Class		204			279			—			—			—			—
Institutional Class		50			—			—			—			49,948			20,706
Class A		487			—			—			—			—			—
Class C		50			—			—			—			—			—
Class R3		50			—			—			—			—			—
Proceeds from reinvestment of dividends and distributions:
Investor Class		92,722			160,182			5,498			87,842			—			—
Trust Class		8,083			14,004			5,247			105,180			—			—
Advisor Class		56			102			—			—			—			—
Institutional Class		—			—			—			—			9,873			93,575
Class A		—			—			—			—			—			—
Class C		—			—			—			—			—			—

See Notes to Financial Statements

137

	INTERNATIONAL LARGE CAP FUND						LARGE CAP DISCIPLINED GROWTH FUND
	Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Year Ended August 31, 2008
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	1,816		$	4,683		$	142		$	(0	)
Net realized gain (loss) on investments		(62,155	)		(8,218	)		(3,314	)		905
Net increase from payments by affiliates		—			—			—			—
Change in net unrealized appreciation (depreciation) of investments		21,566			(21,882	)		12,067			(1,097	)
Net increase (decrease) in net assets resulting from operations		(38,773	)		(25,417	)		8,895			(192	)
Distributions to Shareholders From (Note A):
Net investment income:
Investor Class		—			—			—			—
Trust Class		(848	)		(907	)		—			—
Advisor Class		—			—			—			—
Institutional Class		(2,903	)		(2,068	)		—			—
Class A		(52	)		—			—			—
Class C		(3	)		—			—			—
Net realized gain on investments:
Investor Class		—			—			—			—
Trust Class		—			(1,984	)		—			—
Advisor Class		—			—			—			—
Institutional Class		—			(3,862	)		—			—
Class A		—			—			—			—
Class C		—			—			—			—
Tax Return of Capital:
Investor Class		—			—			—			—
Trust Class		—			—			—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			—			—
Total distributions to shareholders		(3,806	)		(8,821	)		—			—
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Investor Class		—			—			4,737			4,231
Trust Class		11,048			25,593			—			—
Advisor Class		—			—			—			—
Institutional Class		3,498			102,215			20,375			—
Class A		2,160			2,460			29,464			—
Class C		278			120			7,677			—
Class R3		50			—			50			—
Proceeds from reinvestment of dividends and distributions:
Investor Class		—			—			—			—
Trust Class		823			2,674			—			—
Advisor Class		—			—			—			—
Institutional Class		2,264			5,429			—			—
Class A		48			—			—			—
Class C		2			—			—			—

138

Statements of Changes in Net Assets (cont'd)

Neuberger Berman Equity Funds (cont'd)
(000's omitted)

	GUARDIAN FUND						INTERNATIONAL FUND						INTERNATIONAL INSTITUTIONAL FUND
	Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Year Ended August 31, 2008
Proceeds from shares issued in connection with mergers (Note H)
Investor Class		—			—			—			—			—			—
Advisor Class		—			—			—			—			—			—
Institutional Class		—			—			—			—			—			—
Class A		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Proceeds from conversion of Trust Class or Class A shares (Note H):
Investor Class		—			—			—			—			—			—
Trust Class		—			—			—			—			—			—
Institutional Class		—			—			—			—			—			—
Class A		—			—			—			—			—			—
Payments for shares redeemed:
Investor Class		(120,403	)		(175,230	)		(121,991	)		(221,511	)		—			—
Trust Class		(20,513	)		(29,358	)		(143,841	)		(381,348	)		—			—
Advisor Class		(307	)		(509	)		—			—			—			—
Institutional Class		—			—			—			—			(123,109	)		(90,131	)
Class A		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Redemption fees retained:
Investor Class		—			—			34			42			—			—
Trust Class		—			—			37			48			—			—
Institutional Class		—			—			—			—			3			—
Net increase (decrease) from Fund share transactions		14,902			58,648			(205,150	)		(280,522	)		(63,285	)		24,150
Net Increase (Decrease) in Net Assets		(409,701	)		(208,047	)		(412,653	)		(692,026	)		(187,701	)		(162,779	)
Net Assets:
Beginning of year		1,357,419			1,565,466			822,911			1,514,937			411,495			574,274
End of year	$	947,718		$	1,357,419		$	410,258		$	822,911		$	223,794		$	411,495
Undistributed net investment income (loss) at end of year	$	5,195		$	5,086		$	—		$	5,616		$	—		$	5,069
Distributions in excess of net investment income at end of year	$	—		$	—		$	(464	)	$	—		$	(293	)	$	—

See Notes to Financial Statements

139

	INTERNATIONAL LARGE CAP FUND						LARGE CAP DISCIPLINED GROWTH FUND
	Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Year Ended August 31, 2008
Proceeds from shares issued in connection with mergers (Note H)
Investor Class		—			—			—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			3,227			—
Class A		—			—			31,234			—
Class C		—			—			16,456			—
Proceeds from conversion of Trust Class or Class A shares (Note H):
Investor Class		—			—			213			—
Trust Class		—			—			—			—
Institutional Class		—			—			—			—
Class A		—			—			(213	)		—
Payments for shares redeemed:
Investor Class		—			—			(3,387	)		(2,136	)
Trust Class		(21,671	)		(20,604	)		—			—
Advisor Class		—			—			—			—
Institutional Class		(22,926	)		(80,631	)		(2,026	)		—
Class A		(125	)		(24	)		(2,964	)		—
Class C		—			—			(1,014	)		—
Redemption fees retained:
Investor Class		—			—			—			—
Trust Class		—			1			—			—
Institutional Class		1			2			—			—
Net increase (decrease) from Fund share transactions		(24,550	)		37,235			103,829			2,095
Net Increase (Decrease) in Net Assets		(67,129	)		2,997			112,724			1,903
Net Assets:
Beginning of year		168,242			165,245			11,876			9,973
End of year	$	101,113		$	168,242		$	124,600		$	11,876
Undistributed net investment income (loss) at end of year	$	226		$	2,589		$	120		$	—
Distributions in excess of net investment income at end of year	$	—		$	—		$	—		$	—

140

Statements of Changes in Net Assets (cont'd)

Neuberger Berman Equity Funds
(000's omitted)

	MID CAP GROWTH FUND						PARTNERS FUND						REAL ESTATE FUND
	Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Year Ended August 31, 2008
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	(736	)	$	(2,291	)	$	16,726		$	13,749		$	1,595		$	1,133
Net realized gain (loss) on investments		(66,868	)		29,669			(572,454	)		34,281			(21,817	)		(10,401	)
Net increase from payments by affiliates		—			—			—			—			—			—
Change in net unrealized appreciation (depreciation) of investments		(28,479	)		(75,581	)		(472,789	)		(325,745	)		12,292			5,445
Net increase (decrease) in net assets resulting from operations		(96,083	)		(48,203	)		(1,028,517	)		(277,715	)		(7,930	)		(3,823	)
Distributions to Shareholders From (Note A):
Net investment income:
Investor Class		—			—			(5,768	)		(8,169	)		—			—
Trust Class		—			—			(2,401	)		(3,427	)		(1,544	)		(904	)
Advisor Class		—			—			(1,463	)		(1,299	)		—			—
Institutional Class		—			—			(748	)		(697	)		(29	)		(1	)
Class A		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Net realized gain on investments:
Investor Class		—			—			(17,026	)		(83,956	)		—			—
Trust Class		—			—			(7,858	)		(40,592	)		—			(10,592	)
Advisor Class		—			—			(4,741	)		(21,932	)		—			—
Institutional Class		—			—			(1,593	)		(5,002	)		—			—
Class A		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Tax Return of Capital:
Investor Class		—			—			—			—			—			—
Trust Class		—			—			—			—			(466	)		(755	)
Advisor Class		—			—			—			—			—			—
Institutional Class		—			—			—			—			(11	)		(0	)
Total distributions to shareholders		—			—			(41,598	)		(165,074	)		(2,050	)		(12,252	)
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Investor Class		17,412			52,198			124,679			441,209			—			—
Trust Class		14,486			6,833			105,676			316,286			43,725			28,095
Advisor Class		5,117			2,615			114,148			147,161			—			—
Institutional Class		116,820			43,188			96,082			61,308			2,486			1,665
Class A		116			—			—			—			—			—
Class C		51			—			—			—			—			—
Class R3		50			—			—			—			—			—
Proceeds from reinvestment of dividends and distributions:
Investor Class		—			—			21,824			89,010			—			—
Trust Class		—			—			9,724			40,444			1,942			11,214
Advisor Class		—			—			5,823			21,877			—			—
Institutional Class		—			—			2,341			5,699			3			1
Class A		—			—			—			—			—			—
Class C		—			—			—			—			—			—

See Notes to Financial Statements

141

	REGENCY FUND						SELECT EQUITIES FUND
	Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Period from December 20, 2007 (Commencement of Operations) to August 31, 2008
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	617		$	523		$	118		$	27
Net realized gain (loss) on investments		(30,946	)		4,528			(1,082	)		(282	)
Net increase from payments by affiliates		—			—			—			—
Change in net unrealized appreciation (depreciation) of investments		(4,490	)		(18,066	)		4,057			(122	)
Net increase (decrease) in net assets resulting from operations		(34,819	)		(13,015	)		3,093			(377	)
Distributions to Shareholders From (Note A):
Net investment income:
Investor Class		(6	)		(606	)		—			—
Trust Class		(5	)		(358	)		—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			(1	)		—
Class A		—			—			(48	)		—
Class C		—			—			(7	)		—
Net realized gain on investments:
Investor Class		(2,509	)		(7,952	)		—			—
Trust Class		(1,917	)		(5,303	)		—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			—			—
Class A		—			—			—			—
Class C		—			—			—			—
Tax Return of Capital:
Investor Class		—			—			—			—
Trust Class		—			—			—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			—			—
Total distributions to shareholders		(4,437	)		(14,219	)		(56	)		—
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Investor Class		9,424			21,941			—			—
Trust Class		15,090			19,507			—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			6,127			2,501
Class A		—			—			41,400			5,107
Class C		—			—			6,414			810
Class R3		—			—			—			—
Proceeds from reinvestment of dividends and distributions:
Investor Class		2,406			8,203			—			—
Trust Class		1,628			5,321			—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			1			—
Class A		—			—			25			—
Class C		—			—			7			—

142

Statements of Changes in Net Assets (cont'd)

Neuberger Berman Equity Funds (cont'd)
(000's omitted)

	MID CAP GROWTH FUND						PARTNERS FUND						REAL ESTATE FUND
	Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Year Ended August 31, 2008
Proceeds from shares issued in connection with mergers (Note H)
Investor Class		—			—			—			—			—			—
Advisor Class		—			—			—			—			—			—
Institutional Class		—			—			—			—			—			—
Class A		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Proceeds from conversion of Trust Class or Class A shares (Note H):
Investor Class		—			—			—			—			—			—
Trust Class		—			—			—			—			—			—
Institutional Class		—			—			—			—			—			—
Class A		—			—			—			—			—			—
Payments for shares redeemed:
Investor Class		(43,190	)		(58,010	)		(406,927	)		(357,051	)		—			—
Trust Class		(8,369	)		(7,188	)		(221,949	)		(409,795	)		(25,838	)		(80,552	)
Advisor Class		(1,295	)		(564	)		(149,975	)		(146,593	)		—			—
Institutional Class		(16,789	)		(7,490	)		(54,780	)		(14,120	)		(759	)		—
Class A		(2	)		—			—			—			—			—
Class C		—			—			—			—			—			—
Redemption fees retained:
Investor Class		—			—			—			—			—			—
Trust Class		—			—			—			—			29			18
Institutional Class		—			—			—			—			1			—
Net increase (decrease) from Fund share transactions		84,407			31,582			(353,334	)		195,435			21,589			(39,559	)
Net Increase (Decrease) in Net Assets		(11,676	)		(16,621	)		(1,423,449	)		(247,354	)		11,609			(55,634	)
Net Assets:
Beginning of year		462,665			479,286			3,924,266			4,171,620			54,777			110,411
End of year	$	450,989		$	462,665		$	2,500,817		$	3,924,266		$	66,386		$	54,777
Undistributed net investment income (loss) at end of year	$	(1	)	$	—		$	16,033		$	11,319		$	—		$	—
Distributions in excess of net investment income at end of year	$	—		$	—		$	—		$	—		$	—		$	—

See Notes to Financial Statements

143

	REGENCY FUND						SELECT EQUITIES FUND
	Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Period from December 20, 2007 (Commencement of Operations) to August 31, 2008
Proceeds from shares issued in connection with mergers (Note H)
Investor Class		—			—			—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			—			—
Class A		—			—			—			—
Class C		—			—			—			—
Proceeds from conversion of Trust Class or Class A shares (Note H):
Investor Class		—			—			—			—
Trust Class		—			—			—			—
Institutional Class		—			—			—			—
Class A		—			—			—			—
Payments for shares redeemed:
Investor Class		(23,262	)		(35,031	)		—			—
Trust Class		(27,286	)		(16,258	)		—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			(2,039	)		—
Class A		—			—			(10,454	)		(56	)
Class C		—			—			(236	)		—
Redemption fees retained:
Investor Class		—			—			—			—
Trust Class		—			—			—			—
Institutional Class		—			—			—			—
Net increase (decrease) from Fund share transactions		(22,000	)		3,683			41,245			8,362
Net Increase (Decrease) in Net Assets		(61,256	)		(23,551	)		44,282			7,985
Net Assets:
Beginning of year		131,900			155,451			7,985			—
End of year	$	70,644		$	131,900		$	52,267		$	7,985
Undistributed net investment income (loss) at end of year	$	593		$	—		$	90		$	28
Distributions in excess of net investment income at end of year	$	—		$	—		$	—		$	—

144

Statements of Changes in Net Assets (cont'd)

Neuberger Berman Equity Funds
(000's omitted)

	SMALL AND MID CAP GROWTH FUND						SMALL CAP GROWTH FUND
	Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Year Ended August 31, 2008
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	(35	)	$	(57	)	$	(1,970	)	$	(1,647	)
Net realized gain (loss) on investments		(1,618	)		(431	)		(90,630	)		(26,919	)
Net increase from payments by affiliates		—			—			—			—
Change in net unrealized appreciation (depreciation) of investments		(137	)		(475	)		10,318			11,643
Net increase (decrease) in net assets resulting from operations		(1,790	)		(963	)		(82,282	)		(16,923	)
Distributions to Shareholders From (Note A):
Net investment income:
Investor Class		—			—			—			—
Trust Class		—			—			—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			—			—
Class A		—			—			—			—
Class C		—			—			—			—
Net realized gain on investments:
Investor Class		—			—			—			—
Trust Class		—			(626	)		—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			—			—
Class A		—			—			—			—
Class C		—			—			—			—
Tax Return of Capital:
Investor Class		—			—			—			—
Trust Class		(19	)		—			—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			—			—
Total distributions to shareholders		(19	)		(626	)		—			—
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Investor Class		—			—			82,569			248,900
Trust Class		800			1,591			27,772			44,971
Advisor Class		—			—			7,571			14,811
Institutional Class		—			—			5,217			4,217
Class A		—			—			79			—
Class C		—			—			63			—
Class R3		—			—			50			—
Proceeds from reinvestment of dividends and distributions:
Investor Class		—			—			—			—
Trust Class		19			621			—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			—			—
Class A		—			—			—			—
Class C		—			—			—			—

See Notes to Financial Statements

145

	SOCIALLY RESPONSIVE FUND
	Year Ended August 31, 2009			Year Ended August 31, 2008
Increase (Decrease) in Net Assets:
From Operations (Note A):
Net investment income (loss)	$	4,034		$	6,242
Net realized gain (loss) on investments		(149,027	)		19,436
Net increase from payments by affiliates		—			—
Change in net unrealized appreciation (depreciation) of investments		(126,653	)		(109,089	)
Net increase (decrease) in net assets resulting from operations		(271,646	)		(83,411	)
Distributions to Shareholders From (Note A):
Net investment income:
Investor Class		(2,456	)		(3,919	)
Trust Class		(1,472	)		(1,946	)
Advisor Class		—			—
Institutional Class		(334	)		(67	)
Class A		—			—
Class C		—			—
Net realized gain on investments:
Investor Class		(8,128	)		(25,723	)
Trust Class		(3,896	)		(11,806	)
Advisor Class		—			—
Institutional Class		(850	)		(428	)
Class A		—			—
Class C		—			—
Tax Return of Capital:
Investor Class		—			—
Trust Class		—			—
Advisor Class		—			—
Institutional Class		—			—
Total distributions to shareholders		(17,136	)		(43,889	)
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Investor Class		123,093			248,757
Trust Class		82,486			118,138
Advisor Class		—			—
Institutional Class		31,056			91,009
Class A		1,109			—
Class C		92			—
Class R3		50			—
Proceeds from reinvestment of dividends and distributions:
Investor Class		9,888			27,680
Trust Class		5,197			13,197
Advisor Class		—			—
Institutional Class		1,184			495
Class A		—			—
Class C		—			—

146

Statements of Changes in Net Assets (cont'd)

Neuberger Berman Equity Funds (cont'd)
(000's omitted)

	SMALL AND MID CAP GROWTH FUND						SMALL CAP GROWTH FUND
	Year Ended August 31, 2009			Year Ended August 31, 2008			Year Ended August 31, 2009			Year Ended August 31, 2008
Proceeds from shares issued in connection with mergers (Note H)
Investor Class		—			—			—			—
Advisor Class		—			—			—			—
Institutional Class		—			—			—			—
Class A		—			—			—			—
Class C		—			—			—			—
Proceeds from conversion of Trust Class or Class A shares (Note H):
Investor Class		—			—			—			—
Trust Class		—			—			—			—
Institutional Class		—			—			—			—
Class A		—			—			—			—
Payments for shares redeemed:
Investor Class		—			—			(112,924	)		(53,266	)
Trust Class		(661	)		(1,426	)		(22,460	)		(9,264	)
Advisor Class		—			—			(5,917	)		(4,228	)
Institutional Class		—			—			(1,114	)		—
Class A		—			—			—			—
Class C		—			—			—			—
Redemption fees retained:
Investor Class		—			—			—			—
Trust Class		—			—			—			—
Institutional Class		—			—			—			—
Net increase (decrease) from Fund share transactions		158			786			(19,094	)		246,141
Net Increase (Decrease) in Net Assets		(1,651	)		(803	)		(101,376	)		229,218
Net Assets:
Beginning of year		7,733			8,536			300,086			70,868
End of year	$	6,082		$	7,733		$	198,710		$	300,086
Undistributed net investment income (loss) at end of year	$	(29	)	$	(31	)	$	—		$	—
Distributions in excess of net investment income at end of year	$	—		$	—		$	—		$	—

See Notes to Financial Statements

147

	SOCIALLY RESPONSIVE FUND
	Year Ended August 31, 2009			Year Ended August 31, 2008
Proceeds from shares issued in connection with mergers (Note H)
Investor Class		—			—
Advisor Class		—			—
Institutional Class		—			—
Class A		—			—
Class C		—			—
Proceeds from conversion of Trust Class or Class A shares (Note H):
Investor Class		—			—
Trust Class		—			—
Institutional Class		—			—
Class A		—			—
Payments for shares redeemed:
Investor Class		(149,312	)		(176,994	)
Trust Class		(59,029	)		(85,846	)
Advisor Class		—			—
Institutional Class		(10,100	)		(13,479	)
Class A		(63	)		—
Class C		—			—
Redemption fees retained:
Investor Class		—			—
Trust Class		—			—
Institutional Class		—			—
Net increase (decrease) from Fund share transactions		35,651			222,957
Net Increase (Decrease) in Net Assets		(253,131	)		95,657
Net Assets:
Beginning of year		1,237,308			1,141,651
End of year	$	984,177		$	1,237,308
Undistributed net investment income (loss) at end of year	$	3,543		$	5,011
Distributions in excess of net investment income at end of year	$	—		$	—

148

Notes to Financial Statements Equity Funds

Note A—Summary of Significant Accounting Policies:

1 General: Neuberger Berman Equity Funds (the "Trust") is a Delaware statutory trust organized pursuant to an Amended and Restated Trust Instrument dated June 24, 2009. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended (the "1933 Act"). Neuberger Berman Climate Change Fund ("Climate Change"), Neuberger Berman Emerging Markets Equity Fund ("Emerging Markets Equity"), Neuberger Berman Equity Income Fund ("Equity Income"), Neuberger Berman Focus Fund ("Focus"), Neuberger Berman Genesis Fund ("Genesis"), Neuberger Berman Guardian Fund ("Guardian"), Neuberger Berman International Fund ("International"), Neuberger Berman International Institutional Fund ("International Institutional"), Neuberger Berman International Large Cap Fund ("International Large Cap"), Neuberger Berman Large Cap Disciplined Growth Fund ("Large Cap Disciplined Growth") (formerly, Neuberger Berman Century Fund), Neuberger Berman Mid Cap Growth Fund ("Mid Cap Growth"), Neuberger Berman Partners Fund ("Partners"), Neuberger Berman Real Estate Fund ("Real Estate"), Neuberger Berman Regency Fund ("Regency"), Neuberger Berman Select Equities Fund ("Select Equities"), Neuberger Berman Small and Mid Cap Growth Fund ("Small and Mid Cap Growth"), Neuberger Berman Small Cap Growth Fund ("Small Cap Growth"), and Neuberger Berman Socially Responsive Fund ("Socially Responsive") (individually a "Fund," collectively, the "Funds") are separate operating series of the Trust, each of which (except Focus, Large Cap Disciplined Growth, Real Estate, and Select Equities) is diversified. Under the 1940 Act, the status of a Fund that was registered as non-diversified may, under certain circumstances, change to that of a diversified fund. Ten Funds offer Investor Class shares, twelve offer Trust Class shares, six offer Advisor Class shares, fourteen offer Institutional Class shares, ten offer Class A shares, ten offer Class C shares, and six offer Class R3 shares. Emerging Markets Equity had no operations until October 8, 2008 other than matters relating to its organization and registration of shares under the 1933 Act. The Board of Trustees of the Trust (the "Board") may establish additional series or classes of shares without the approval of shareholders.

The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Neuberger Berman Management LLC ("Management") to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.

2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Funds' Schedule of Investments.

3 Foreign currency translation: The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are currently translated into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time, to determine the value of investments, other assets and liabilities. Purchase and sale prices of securities, and income and expenses, are translated into U.S. dollars at the prevailing rate of exchange on the respective dates of such transactions. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statements of Operations.

4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Dividend income is recorded on the ex-dividend date or, for certain foreign dividends, as soon as the Fund becomes aware of the dividends. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including accretion of discount on securities for Equity Income, accretion of original issue discount, where applicable, and accretion of discount on short-term investments, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statements of

149

Operations. Included in net realized gain (loss) on investments are proceeds from the settlements of class action litigation in which the Funds participated as class members. The amounts of such proceeds for the year ended August 31, 2009 were $45,160 $110,868, $1,695,273, $171,210, $14,139, $4,311, $1,294,337, $7,057, $162,740 and $375,332 for Focus, Genesis, Guardian, International, Large Cap Disciplined Growth, Mid Cap Growth, Partners, Regency, Small Cap Growth, and Socially Responsive, respectively.

5 Income tax information: The Funds are treated as separate entities for U.S. federal income tax purposes. It is the policy of each Fund, except Emerging Markets Equity, to continue to, and the intention of Emerging Markets Equity to qualify as regulated investment companies by complying with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. Therefore, no federal income or excise tax provision is required.

The Funds have adopted the provisions of Financial Accounting Standards Board ("FASB") Interpretation No. 48 ("FIN 48") "Accounting for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109". FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken, or expected to be taken, in a tax return. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as an income tax expense in the Statements of Operations. The Funds are subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2006-2008. As of August 31, 2009, the Funds did not have any unrecognized tax benefits.

Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by each Fund, timing differences and differing characterization of distributions made by each Fund as a whole. The Funds may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.

As determined on August 31, 2009, permanent differences resulting primarily from different book and tax accounting for net operating losses, convertible preferred stock income adjustments, equalization, premium amortization adjustments, partnership income adjustments, depletion income adjustments, foreign currency gains and losses, non-deductible 12b-1 fees, non-taxable dividend adjustments, passive foreign investment companies gains and losses, return of capital distributions and characterization of distributions from real estate investment trusts ("REITs") were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value or net asset value per share of each Fund.

The tax character of distributions paid during the years ended August 31, 2009 and August 31, 2008 were as follows:

	Distributions Paid From:
	Ordinary Income					Long-Term Capital Gain					Return of Capital					Total
	2009		2008			2009		2008			2009		2008			2009		2008
Climate Change	$	98,215	$	—	⁽²⁾	$	—	$	—	⁽²⁾	$	—	$	—	⁽²⁾	$	98,215	$	—	⁽²⁾
Emerging Markets Equity⁽³⁾		77,563		—			—		—			—		—			77,563		—
Equity Income		723,146		276,696			199,719		19,877			—		—			922,865		296,573
Focus		4,498,471		7,176,327			71,795,704		184,214,412			—		—			76,294,175		191,390,739
Genesis		—		—			442,063,981		1,724,892,718			16,648		—			442,080,629		1,724,892,718
Guardian		9,781,084		15,840,323			96,880,945		169,628,176			—		—			106,662,029		185,468,499
International		12,367,880		75,652,027			—		139,013,741			—		—			12,367,880		214,665,768
International Institutional		9,896,743		41,813,215			—		54,732,059			—		—			9,896,743		96,545,274
International Large Cap		3,805,457		6,810,627			—		2,010,927			—		—			3,805,457		8,821,554

150

	Distributions Paid From:
	Ordinary Income					Long-Term Capital Gain					Return of Capital					Total
	2009		2008			2009		2008			2009		2008			2009		2008
Large Cap Disciplined Growth	$	—	$	—		$	—	$	—		$	—	$	—		$	—	$	—
Mid Cap Growth		—		—			—		—			—		—			—		—
Partners		10,379,749		13,592,516			31,218,246		151,482,195			—		—			41,597,995		165,074,711
Real Estate		1,572,919		917,173			—		10,578,900			477,253		754,957			2,050,172		12,251,030
Regency		10,898		755,029			4,426,635		13,464,501			—		—			4,437,533		14,219,530
Select Equities		56,266		—	⁽¹⁾		—		—	⁽¹⁾		—		—	⁽¹⁾		56,266		—	⁽¹⁾
Small and Mid Cap Growth		—		407,481			—		218,139			19,074		—			19,074		625,620
Small Cap Growth		—		—			—		—			—		—			—		—
Socially Responsive		4,262,072		6,921,880			12,873,755		36,967,425			—		—			17,135,827		43,889,305

(1) Period from December 20, 2007 (Commencement of Operations) to August 31, 2008.

(2) Period from May 1, 2008 (Commencement of Operations) to August 31, 2008.

(3) Period from October 8, 2008 (Commencement of Operations) to August 31, 2009.

As of August 31, 2009, the components of distributable earnings (accumlated losses) on a U.S. federal income tax basis were as follows:

	Undistributed Ordinary Income		Undistributed Long-Term Gain		Unrealized Appreciation (Depreciation)			Loss Carryforwards and Deferrals			Total
Climate Change	$	7,836	$	—	$	176,574		($	1,793,583	)	($	1,609,173	)
Emerging Markets Equity		95,872		—		1,346,456			—			1,442,328
Equity Income		581,294		—		2,092,370			(4,793,089	)		(2,119,425	)
Focus		4,523,162		—		34,273,159			(133,269,669	)		(94,473,348	)
Genesis		—		—		1,770,793,796			(820,981,122	)		949,812,674
Guardian		5,195,284		—		(3,924,592	)		(125,408,333	)		(124,137,641	)
International		202,171		—		15,531,549			(245,460,885	)		(229,727,165	)
International Institutional		77,245		—		(137,247	)		(177,181,994	)		(177,241,996	)
International Large Cap		326,866		—		3,331,581			(70,032,617	)		(66,374,170	)
Large Cap Disciplined Growth⁽¹⁾		141,417		—		10,360,357			(7,775,053	)		2,726,721
Mid Cap Growth		—		—		55,740,658			(323,506,043	)		(267,765,385	)
Partners		16,033,417		—		123,204,416			(567,998,849	)		(428,761,016	)
Real Estate		—		—		6,266,471			(25,625,403	)		(19,358,932	)
Regency		592,855		—		(1,214,564	)		(30,106,616	)		(30,728,325	)
Select Equities		103,643		—		3,756,688			(1,184,680	)		2,675,651
Small and Mid Cap Growth		—		—		485,842			(2,337,410	)		(1,851,568	)
Small Cap Growth		—		—		30,232,592			(216,630,940	)		(186,398,348	)
Socially Responsive		3,542,439		—		(59,282,382	)		(148,475,052	)		(204,214,995	)

The differences between book basis and tax basis distributable earnings are primarily due to: wash sales, partnership basis adjustments, capital loss carryforwards, post October loss deferrals, REIT basis adjustments, organization expenses, passive foreign investment companies, contingent payment debt instrument basis adjustments, premium amortization accruals, forward contracts mark to market, non-taxable dividend adjustments, convertible preferred stock basis adjustments, securities lending FAS 140 adjustment and depletion basis adjustments.

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To the extent each Fund's net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of each Fund not to distribute such gains. As determined at August 31, 2009, the following Funds had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:

	Expiring In
	2010		2011		2012		2013		2014		2015		2016		2017
Climate Change	$	—	$	—	$	—	$	—	$	—	$	—	$	206,442	$	488,619
Equity Income⁽²⁾		—		—		—		—		—		—		—		1,390,528
Focus		—		—		—		—		—		—		—		35,105,393
Genesis		—		—		—		—		—		—		—		56,608,624
Guardian		—		—		—		—		—		—		—		58,796,523
International		—		—		—		—		—		—		—		109,492,631
International Institutional		—		—		—		—		—		—		—		93,661,292
International Large Cap		—		—		—		—		—		—		—		32,589,988
Large Cap Disciplined Growth⁽¹⁾		—		1,676,598		—		—		—		317,954		1,325,771		3,672,386
Mid Cap Growth		155,307,949		102,695,626		—		—		—		—		—		21,093,068
Partners		—		—		—		—		—		—		—		81,556,791
Real Estate		—		—		—		—		—		—		1,844,454		9,262,430
Regency		—		—		—		—		—		—		—		3,350,748
Select Equities⁽²⁾		—		—		—		—		—		—		274,349		536,920
Small and Mid Cap Growth		—		—		—		—		—		—		—		1,362,603
Small Cap Growth⁽²⁾		70,414,892		33,014,006		—		—		—		—		25,763,569		32,917,417
Socially Responsive		—		—		—		—		—		—		—		65,700,906

(1) The capital loss carryforwards shown above for Large Cap Disciplined Growth (formerly, Century) include $1,643,725 expiring in 2015 and 2016, which were acquired on April 9, 2009 in the merger with Neuberger Berman Large Cap Disciplined Growth Fund. The use of the losses expiring in 2011 to offset future gains may be limited. Large Cap Disciplined Growth lost capital loss carryforwards of $30,961,476 due to the merger.

(2) Under current law, the use of these losses to offset future gains may be limited.

Under current tax law, certain net capital, net foreign currency losses and net passive foreign investment company mark to market losses realized after October 31 within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the year ended August 31, 2009, the Funds elected to defer the following:

	Post October Capital Loss Deferral		Post October Currency Loss Deferral
Climate Change	$	1,098,522	$	—
Equity Income		3,402,561		—
Focus		98,164,276		—
Genesis		764,369,930		2,568
Guardian		66,611,810		—
International		135,968,254		—
International Institutional		83,520,702		—
International Large Cap		37,442,629		—
Large Cap Disciplined Growth		782,344		—

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	Post October Capital Loss Deferral		Post October Currency Loss Deferral
Mid Cap Growth	$	44,408,320	$	1,080
Partners		486,442,058		—
Real Estate		14,518,519		—
Regency		26,755,868		—
Select Equities		373,411		—
Small and Mid Cap Growth		974,807		—
Small Cap Growth		54,521,056		—
Socially Responsive		82,774,146		—

6 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.

7 Distributions to shareholders: Each Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed in December and are recorded on the ex-date. However, Equity Income and Real Estate generally distribute substantially all of their net investment income, if any, at the end of each calendar quarter.

It is the policy of each of Equity Income and Real Estate to pass through to its shareholders substantially all REIT distributions and other income it receives, less operating expenses. The distributions received from REITs held by Equity Income and Real Estate are generally comprised of income, capital gains, and return of REIT capital, but the REITs do not report this information to Equity Income and Real Estate until the following calendar year. At August 31, 2009, Equity Income and Real Estate estimated these amounts within the financial statements since the information is not available from the REITs until after Equity Income's and Real Estate's fiscal year-end. For the year ended August 31, 2009, the character of distributions paid to shareholders for Equity Income and Real Estate disclosed within the Statements of Changes in Net Assets is based on estimates made at that time. All estimates are based upon REIT information sources available to Equity Income and Real Estate together with actual IRS Forms 1099DIV received to date. Based on past experience it is probable that a portion of Equity Income's and Real Estate's distributions during the current fiscal year will be considered tax return of capital but the actual amount of the tax return of capital, if any, is not determinable until after Equity Income's and Real Estate's fiscal year-end. After calendar year-end, when Equity Income and Real Estate learn the nature of the distributions paid by REITs during that year, distributions previously identified as income are often recharacterized as return of capital and/or capital gain. After all applicable REITs have informed Equity Income and Real Estate of the actual breakdown of distributions paid to Equity Income and Real Estate during its fiscal year, estimates previously recorded are adjusted on the books of Equity Income and Real Estate to reflect actual results. As a result, the composition of Equity Income's and Real Estate's distributions as reported herein may differ from the final composition determined after calendar year-end and reported to Equity Income and Real Estate shareholders on IRS Form 1099DIV.

8 Organization expenses: Costs incurred by Emerging Markets Equity in connection with its organization, which amounted to $71,992 have been expensed as incurred.

9 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Fund are charged to that Fund. Expenses of the Trust that are not directly attributed to a Fund are allocated among the Funds, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the Funds can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributed to a Fund or the Trust are allocated among the Funds and the other investment companies in the complex or series thereof on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly. Each Fund's expenses (other than those specific to each class) are allocated proportionally each day between the classes based upon the relative net assets of each class.

10 Security lending: A third party, eSecLending, has assisted Focus, Guardian, International, International Institutional, International Large Cap, Mid Cap Growth, Partners, Real Estate, Regency, Small Cap Growth and

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Socially Responsive in conducting a bidding process to try to identify a principal that would pay a guaranteed amount to each Fund in consideration of that Fund entering into an exclusive securities lending arrangement. eSecLending currently serves as exclusive lending agent for each of these Funds. Each Fund, except for International, International Institutional and International Large Cap, is currently guaranteed a particular level of income. These arrangements will change so that no Fund will be guaranteed a particular level of income.

For part of the fiscal period, Neuberger Berman LLC, (formerly known as Neuberger Berman, LLC) ("Neuberger"), an affiliate of each Fund, served as exclusive lending agent for International, International Institutional and International Large Cap. Each Fund selected Neuberger through the bidding process in accordance with an Exemptive Order issued by the Securities and Exchange Commission.

Under the securities lending arrangements, each Fund receives cash collateral at the beginning of each transaction equal to at least 102% of the prior day's market value of the loaned securities (105% in the case of international securities). Each Fund may invest all the cash collateral in Neuberger Berman Securities Lending Quality Fund, LLC ("Quality Fund"), a fund managed by Neuberger Berman Fixed Income LLC (formerly known as Lehman Brothers Asset Management LLC) ("NBFI"), an affiliate of Management. Effective July 1, 2009, Dwight Asset Management Company LLC became the Sub-Adviser to the Quality Fund. The Quality Fund is not a money market fund that is registered under the 1940 Act and does not operate in accordance with all requirements of Rule 2a-7 under the 1940 Act. There is no assurance that the Quality Fund will maintain a $1.00 share price.

On various days during the period from September 1, 2008 to November 3, 2008, the Quality Fund's NAV was $0.99 per share, which could have affected the NAV of the Funds with securities loans outstanding on those days. For the period from November 4, 2008 to August 31, 2009, the Quality Fund's price per share was at least $1.00. The market value of each Fund's investments in the Quality Fund as of the fiscal year ended August 31, 2009, if any, is reflected in the Fund's Schedule of Investments. If it were necessary to liquidate assets in the Quality Fund to meet returns on outstanding securities loans at a time when the Quality Fund's price per share was less than $1.00, a Fund may not receive an amount from the Quality Fund that is equal in amount to the collateral the Fund would be required to return to the borrower of the securities and the Fund would be required to make up for this shortfall. In addition, as a result of recent reduced liquidity in the credit and fixed income markets, it may be difficult to dispose quickly of some securities in the Quality Fund at the price at which the Quality Fund is carrying them.

Net income from the applicable lending program represents the guaranteed amount received from a principal, if applicable, plus income earned on the cash collateral invested in Quality Fund or in other investments, if applicable, less cash collateral fees and other expenses associated with the loans. For the fiscal year ended August 31, 2009, the approximate amount of income earned on cash collateral, which includes approximate amounts of interest income earned from the Quality Fund and guaranteed amounts; the approximate amount of fees and expenses paid on securities loaned; the approximate amount of net income received under the securities lending arrangements, which is reflected in the Statements of Operations under the caption "Income from securities loaned—net"; the amount of interest income that was earned from the Quality Fund; the guaranteed amounts received from Neuberger; and the fees and expenses that were retained by Neuberger are as follows:

	Total Interest Income Earned From the Quality Fund and Guaranteed Amounts		Fees and Expenses Paid on Securities Loaned		Net Income Received Under the Securities Lending Arrangements		Interest Income Earned From the Quality Fund		Guaranteed Amounts Received From Neuberger		Fees and Expenses Paid that were Retained by Neuberger
Focus	$	1,706,387	$	1,119,406	$	586,981	$	1,393,971	$	—	$	—
Guardian		606,395		444,892		161,503		534,546		—		—
International		824,945		222,398		602,547		404,741		124,517		—
International Institutional		431,392		113,671		317,721		213,385		70,717		—
International Large Cap		202,450		50,528		151,922		106,666		16,112		—
Mid Cap Growth		1,482,724		763,647		719,077		1,281,503		—		—

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	Total Interest Income Earned From the Quality Fund and Guaranteed Amounts		Fees and Expenses Paid on Securities Loaned		Net Income Received Under the Securities Lending Arrangements		Interest Income Earned From the Quality Fund		Guaranteed Amounts Received From Neuberger		Fees and Expenses Paid that were Retained by Neuberger
Partners	$	6,423,186	$	3,956,167	$	2,467,019	$	5,371,988	$	—	$	—
Real Estate		191,883		98,192		93,691		166,081		—		—
Regency		191,278		116,223		75,055		157,431		—		—
Small Cap Growth		781,409		486,866		294,543		656,910		—		—
Socially Responsive		271,297		140,768		130,529		201,224		—		—

11 Repurchase agreements: Each Fund may enter into repurchase agreements with institutions that Management has determined are creditworthy. Each repurchase agreement is recorded at cost. Each Fund requires that the securities purchased in a repurchase agreement be transferred to the custodian in a manner sufficient to enable the Fund to assert a perfected security interest in those securities in the event of a default under the repurchase agreement. Each Fund monitors, on a daily basis, the value of the securities transferred to ensure that their value, including accrued interest, is greater than amounts owed to the Fund under each such repurchase agreement.

12 Redemption of fund shares: Each class of Emerging Markets Equity, International, International Institutional, and International Large Cap, charges a redemption fee of 2%, and Real Estate charges a redemption fee of 1%, respectively, on shares redeemed or exchanged for shares of another fund within 60 days or less of the purchase date. All redemption fees are paid to and recorded by each Fund as Paid-in capital. For the year ended August 31, 2009, Emerging Markets Equity, International, International Institutional, International Large Cap, and Real Estate received $243, $70,315, $2,985, $1,360 and $29,953, respectively, in redemption fees.

13 Transactions with other funds managed by Neuberger Berman Management LLC: Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Funds may invest in a money market fund managed by Management or an affiliate. Through August 10, 2009, the Funds invested in Neuberger Berman Prime Money Fund ("Prime Money") or Neuberger Berman Government Money Fund ("Government Money"), as approved by the Board. Prime Money and Government Money each sought to provide the highest available current income consistent with safety and liquidity. For any cash that the Funds invested in Prime Money or Government Money, Management waived a portion of its management fee equal to the management fee it received from Prime Money or Government Money on those assets (the "Arrangement"). For the year ended August 31, 2009, management fees waived under this Arrangement are reflected in the Statements of Operations under the caption "Investment management fees waived." For the year ended August 31, 2009, income earned under this Arrangement is reflected in the Statements of Operations under the caption "Income from investments in affiliated issuers." For the year ended August 31, 2009, management fees waived and income earned under this Arrangement on Prime Money were as follows:

(000's omitted)	Management Fees Waived		Income Earned		(000's omitted)	Management Fees Waived		Income Earned
Climate Change	$	—	$	2	Large Cap Disciplined Growth	$	1	$	4
Emerging Markets Equity⁽¹⁾		—		4	Mid Cap Growth		19		221
Equity Income⁽²⁾		3		23	Partners		20		180
Focus		15		189	Real Estate		1		11
Genesis		389		4,922	Regency		2		37
Guardian		15		129	Select Equities		6		35
International		16		259	Small and Mid Cap Growth		—		4
International Institutional		9		147	Small Cap Growth		5		81
International Large Cap		5		67	Socially Responsive		—		—

(1) Period from October 8, 2008 (Commencement of Operations) to August 31, 2009.

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(2) All Funds invested in Prime Money during the year ended August 31, 2009. Equity Income also invested in Government Money. Equity Income had the following: approximately $0 in management fees waived and approximately $2,000 in income earned under this Arrangement on Government Money.

On August 10, 2009, the Funds ceased investing in Prime Money or Government Money. On this date, the Funds' shares of Prime Money or Government Money were redeemed in exchange for portfolio holdings of Prime Money or Government Money, which were used to purchase Institutional Class shares of State Street Institutional Liquid Reserves Fund.

14 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.

15 Derivative instruments: During the period ending August 31, 2009, the Funds' use of derivatives was limited to written option transactions. The Funds adopted FASB Statement of Financial Accounting Standards No. 161 "Disclosures about Derivative Instruments and Hedging Activities" ("SFAS 161"), effective December 1, 2008. The Funds have disclosed derivative transactions for the year ending August 31, 2009, although SFAS 161 only requires disclosure for the six months ending August 31, 2009.

Options: Each Fund may write covered call options, and certain Funds may write put options.

Premiums received by a Fund upon writing a covered call option or a put option are recorded in the liability section of each Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the liability is eliminated.

In general, written covered call and put options may serve as a partial hedge against decreases or increases in value in the underlying securities. For written call options, a Fund bears the risk of a decline in the price of the underlying security during the period, although any potential loss during the period would be reduced by the amount of the option premium received. For written put options, a Fund bears the risk of an increase in the price of the underlying security during the period, although if a put option a Fund has written expires unexercised, the Fund would realize a gain in the amount of the premium received. All securities covering outstanding options are held in escrow by the custodian bank.

Summary of written option transactions for the year ended August 31, 2009 for Equity Income were:

	Put Options						Call Options
	Number			Value When Written			Number			Value When Written
Contracts outstanding 8/31/2008		—		$	—			5,600		$	6,000
Contracts written		96,500			153,000			271,400			358,000
Contracts expired		(18,000	)		(30,000	)		(19,000	)		(26,000	)
Contracts exercised		(9,000	)		(30,000	)		(28,500	)		(29,000	)
Contracts closed		(29,500	)		(46,000	)		(46,500	)		(85,000	)
Contracts outstanding 8/31/2009		40,000		$	47,000			183,000		$	224,000

The option transactions in the summary above are indicative of the volume throughout the period.

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At August 31, 2009, Equity Income had the following derivatives (not designated as hedging instruments under SFAS No.133), grouped by primary risk exposure:

Liability Derivatives

	Equity Contracts Risk		Total
Option Contracts Written:⁽¹⁾	$	265,000	$	265,000
Total Value	$	265,000	$	265,000

(1) Statements of Assets and Liabilities location: Options contracts written, at value.

The impact of the use of derivative instruments on the Statement of Operations during the year ended August 31, 2009, was as follows:

Realized Gain (Loss)⁽¹⁾

	Equity Contracts Risk		Total
Option Contracts Written	$	184,000	$	184,000
Total Realized Gain (Loss)	$	184,000	$	184,000

Change in Appreciation (Depreciation)⁽²⁾

	Equity Contracts Risk		Total
Option Contracts Written	$	1,000	$	1,000
Total Change in Appreciation (Depreciation)	$	1,000	$	1,000

(1) Statements of Operations location: Net realized gain (loss) on options written.

(2) Statements of Operations location: Change in net unrealized appreciation (depreciation) in value of options written.

While the Funds may receive rights and warrants in connection with their investments in securities, these rights and warrants are not considered "derivative instruments" under FASB Statement of Financial Accounting Standards No. 133. Management has concluded that the Funds, except Equity Income, did not hold any derivative instruments during the year ended August 31, 2009 that require additional disclosures pursuant to SFAS 161.

16 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.

17 Other: All net investment income and realized and unrealized capital gains and losses of each Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.

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Note B—Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions With Affiliates:

Each Fund retains Management as its investment manager under a Management Agreement. For such investment management services, each Fund pays Management a fee according to the following table:

Investment Management Fee as a Percentage of Average Daily Net Assets:

	First $250 million			Next $250 million			Next $250 million			Next $250 million			Next $500 million			Next $500 million			Next $500 million			Next $1.5 billion			Thereafter
For Climate Change, Genesis and Small Cap Growth:
		0.85	%		0.80	%		0.75	%		0.70	%		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
For Emerging Markets Equity:
		1.00	%		0.975	%		0.95	%		0.925	%		0.90	%		0.875	%		0.875	%		0.875	%		0.85	%
For Real Estate:
		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
For International and International Institutional:
		0.85	%		0.825	%		0.80	%		0.775	%		0.75	%		0.725	%		0.725	%		0.70	%		0.70	%
For Equity Income, Focus, Guardian, International Large Cap, Large Cap Disciplined Growth, Mid Cap Growth, Partners, Regency, Select Equities, Small and Mid Cap Growth, and Socially Responsive:
		0.55	%		0.525	%		0.50	%		0.475	%		0.45	%		0.425	%		0.425	%		0.425	%		0.40	%

Each Fund retains Management as its administrator under an Administration Agreement. Each Fund pays Management an administration fee at the annual rate of 0.06% of its average daily net assets under this Agreement. In addition, each Fund's Investor Class, Class A, Class C and Class R3 pays Management an administration fee at the annual rate of 0.20% of its average daily net assets, each Fund's Trust Class and Advisor Class pays Management an administration fee at the annual rate of 0.34% of its average daily net assets, and each Fund's Institutional Class pays Management an administration fee at the annual rate of 0.09% of its average daily net assets. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under the agreement.

For the Trust Class of Focus, Guardian, International Large Cap, Partners, Real Estate, Regency, Small and Mid Cap Growth, Small Cap Growth and Socially Responsive (and for Equity Income prior to June 9, 2008), the Advisor Class of each Fund, and Class A, Class C and Class R3 of each Fund, Management acts as agent in arranging for the sale of class shares without commission and bears advertising and promotion expenses. The Board has adopted distribution plans (each a "Plan", collectively, the "Plans") with respect to these classes, pursuant to Rule 12b-1 under the 1940 Act. The Plans provide that, as compensation for administrative and other services provided to these classes, Management's activities and expenses related to the sale and distribution of these classes of shares, and ongoing services provided to investors in these classes, Management receives from each of these classes a fee at the annual rate of 0.10% of such Trust Class, 0.25% of such Advisor Class, 0.25% of such Class A's, 1.00% of such Class C's and 0.50% of such Class R3's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for those classes and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by each class during any year may be more or less than the cost of distribution and other services provided to that class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plans comply with those rules.

Management has contractually undertaken to forgo current payment of fees and/or reimburse operating expenses (including the fees payable to Management but excluding interest, taxes, brokerage commissions and extraordinary

158

expenses) ("Operating Expenses") which exceed the expense limitation as detailed in the following table. The Investor Classes of International, Large Cap Disciplined Growth, Regency, and Small Cap Growth and the Trust Class, Advisor Class, Institutional Class, Class A, Class C and Class R3 of each Fund have agreed to repay Management for fees and expenses forgone and/or its excess Operating Expenses previously reimbursed by Management, pursuant to a contractual expense limitation, so long as their annual Operating Expenses during that period do not exceed their Expense Limitations, and the repayments are made within three years after the year in which Management issued the reimbursement. During the year ended August 31, 2009, there were no reimbursements to Management under this agreement. At August 31, 2009, contingent liabilities to Management under the agreement were as follows:

					Expenses Deferred In Fiscal Period Ending August 31,
					2007		2008			2009
					Subject to Repayment until August 31,
Class	Contractual Expense Limitation⁽¹⁾			Expiration	2010		2011			2012
Climate Change Fund Institutional Class		0.95	%	8/31/12	$	—	$	179,923	⁽⁶⁾	$	120,170
Climate Change Fund Class A		1.20	%	8/31/12		—		75,053	⁽⁶⁾		102,914
Climate Change Fund Class C		1.95	%	8/31/12		—		8,633	⁽⁶⁾		11,617
Emerging Markets Equity Fund Institutional Class		1.25	%	8/31/12		—		—			371,874	⁽⁹⁾
Emerging Markets Equity Fund Class A		1.50	%	8/31/12		—		—			56,747	⁽⁹⁾
Emerging Markets Equity Fund Class C		2.25	%	8/31/12		—		—			19,340	⁽⁹⁾
Equity Income Fund Institutional Class		0.80	%	8/31/12		84,036		155,052	⁽⁸⁾		18,095
Equity Income Fund Class A		1.16	%	8/31/12		—		108,121	⁽⁸⁾		307,047
Equity Income Fund Class C		1.91	%	8/31/12		—		4,441	⁽⁸⁾		16,896
Focus Fund Trust Class		1.50	%	8/31/12		—		—			—
Focus Fund Advisor Class		1.50	%	8/31/19		—		—			2,550
Genesis Fund Trust Class		1.50	%	8/31/12		—		—			—
Genesis Fund Advisor Class		1.50	%	8/31/19		—		—			—
Genesis Fund Institutional Class		0.85	%	8/31/19		—		—			510,447
Guardian Fund Trust Class		1.50	%	8/31/12		—		—			—
Guardian Fund Advisor Class		1.50	%	8/31/19		16,816		18,491			20,599
Guardian Fund Institutional Class		0.75	%	8/13/12		—		—			603	⁽¹¹⁾
Guardian Fund Class A		1.11	%	8/31/13		—		—			633	⁽¹¹⁾
Guardian Fund Class C		1.86	%	8/31/13		—		—			603	⁽¹¹⁾
Guardian Fund Class R3		1.36	%	8/31/13		—		—			603	⁽¹¹⁾
International Fund Investor Class		1.40	%	8/31/12		—		—			—
International Fund Trust Class		2.00	%	8/31/19		—		—			—
International Institutional Fund Institutional Class		0.85	%⁽²⁾	8/31/19		1,588,898		1,304,181			892,834
International Large Cap Fund Trust Class		1.25	%	8/31/12		63,756		51,118			118,494
International Large Cap Fund Institutional Class		0.90	%	8/31/12		64,891		63,922			259,193
International Large Cap Fund Class A		1.30	%⁽²⁾	8/31/12		—		1,930	⁽³⁾		15,881
International Large Cap Fund Class C		2.00	%	8/31/12		—		1,475	⁽³⁾		3,157
International Large Cap Fund Class R3		1.51	%	8/31/13		—		—			642	⁽¹¹⁾
Large Cap Disciplined Growth Fund Investor Class		1.11	%⁽¹²⁾	8/31/15		98,946		114,962			110,752

159

					Expenses Deferred In Fiscal Period Ending August 31,
					2007		2008			2009
					Subject to Repayment until August 31,
Class	Contractual Expense Limitation⁽¹⁾			Expiration	2010		2011			2012
Large Cap Disciplined Growth Fund Institutional Class		0.75	%	8/31/13	$	—	$	—		$	40,802	⁽¹⁰⁾
Large Cap Disciplined Growth Fund Class A		1.11	%	8/31/13		—		—			120,878	⁽¹⁰⁾
Large Cap Disciplined Growth Fund Class C		1.86	%	8/31/13		—		—			57,300	⁽¹⁰⁾
Large Cap Disciplined Growth Fund Class R3		1.36	%	8/31/13		—		—			679	⁽¹¹⁾
Mid Cap Growth Fund Trust Class		1.50	%	8/31/12		—		—			—
Mid Cap Growth Fund Advisor Class		1.50	%	8/31/19		18,886		21,479			12,953
Mid Cap Growth Fund Institutional Class		0.75	%	8/31/12		18,664		5,692			87,923
Mid Cap Growth Fund Class A		1.11	%	8/31/13		—		—			625	⁽¹¹⁾
Mid Cap Growth Fund Class C		1.86	%	8/31/13		—		—			613	⁽¹¹⁾
Mid Cap Growth Fund Class R3		1.36	%	8/31/13		—		—			613	⁽¹¹⁾
Partners Fund Trust Class		1.50	%	8/31/12		—		—			—
Partners Fund Advisor Class		1.50	%	8/31/19		—		—			—
Partners Fund Institutional Class		0.70	%	8/31/12		—		—			10,118
Real Estate Fund Trust Class		1.50	%⁽²⁾	8/31/19		126,728		202,213			221,579
Real Estate Fund Institutional Class		0.85	%	8/31/19		—		1,565	⁽⁷⁾		21,094
Regency Fund Investor Class		1.50	%	8/31/19		—		—			—
Regency Fund Trust Class		1.25	%	8/31/19		45,898		64,085			110,510
Select Equities Fund Institutional Class		0.75	%	8/31/12		—		204,528	⁽³⁾		37,421
Select Equities Fund Class A		1.20	%	8/31/12		—		36,737	⁽³⁾		191,995
Select Equities Fund Class C		1.95	%	8/31/12		—		10,276	⁽³⁾		28,856
Small and Mid Cap Growth Fund Trust Class		1.10	%	8/31/12		167,603		156,067			203,996
Small Cap Growth Fund Investor Class		1.30	%	8/31/19		242,097		167,399			307,973
Small Cap Growth Fund Trust Class		1.40	%	8/31/19		34,251		61,978			89,143
Small Cap Growth Fund Advisor Class		1.60	%	8/31/19		28,271		36,185			39,339
Small Cap Growth Fund Institutional Class		0.90	%	8/31/12		—		3,615	⁽⁵⁾		38,496
Small Cap Growth Fund Class A		1.26	%	8/31/13		—		—			702	⁽¹¹⁾
Small Cap Growth Fund Class C		2.01	%	8/31/13		—		—			685	⁽¹¹⁾
Small Cap Growth Fund Class R3		1.51	%	8/31/13		—		—			678	⁽¹¹⁾
Socially Responsive Fund Trust Class		1.50	%	8/31/12		—		—			—
Socially Responsive Fund Institutional Class		0.75	%	8/31/12		—		8,868	⁽⁴⁾		18,282
Socially Responsive Fund Class A		1.11	%	8/31/13		—		—			628	⁽¹¹⁾
Socially Responsive Fund Class C		1.86	%	8/31/13		—		—			603	⁽¹¹⁾
Socially Responsive Fund Class R3		1.36	%	8/31/13		—		—			601	⁽¹¹⁾

(1) Expense limitation per annum of the respective class' average daily net assets.

(2) In addition, Management has voluntarily undertaken to forgo current payment of fees and/or reimburse the Institutional Class of International Institutional, Class A of International Large Cap and the Trust Class of Real Estate, so that their Operating Expenses are limited to 0.80%, 1.24% and 0.99%, respectively, per annum of their

160

average daily net assets. For the year ended August 31, 2009, voluntary reimbursements for the Institutional Class of International Institutional, Class A of International Large Cap and the Trust Class of Real Estate amounted to $113,489, $461 and $220,118, respectively. This undertaking, which is terminable by Management upon notice to International Institutional, International Large Cap and Real Estate, is in addition to the contractual undertaking as stated above.

(3) Period from December 20, 2007 (Commencement of Operations) to August 31, 2008.

(4) Period from November 28, 2007 (Commencement of Operations) to August 31, 2008.

(5) Period from April 1, 2008 (Commencement of Operations) to August 31, 2008.

(6) Period from May 1, 2008 (Commencement of Operations) to August 31, 2008.

(7) Period from June 4, 2008 (Commencement of Operations) to August 31, 2008.

(8) Period from June 9, 2008 (Commencement of Operations) to August 31, 2008. On June 9, 2008, Equity Income's Trust Class was converted into the Fund's Institutional Class. The financial information of the Fund's Institutional Class includes the financial information of Trust Class shares.

(9) Period from October 8, 2008 (Commencement of Operations) to August 31, 2009.

(10) Period from April 6, 2009 (Commencement of Operations) to August 31, 2009.

(11) Period from May 27, 2009 (Commencement of Operations) to August 31, 2009.

(12) Expense limitation was 1.50% until April 13, 2009.

During the reporting period, the predecessor of Management, the investment manager of the Funds, and Neuberger, the sub-adviser of the Funds, were wholly owned subsidiaries of Lehman Brothers Holdings Inc. ("Lehman Brothers"), a publicly owned holding company. On September 15, 2008, Lehman Brothers filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. On December 3, 2008, NBSH Acquisition, LLC ("NBSH"), an entity organized by key members of Neuberger Berman's senior management, was selected as the successful bidder in the public auction to acquire a majority interest in Neuberger Berman's business and the fixed income and certain alternative asset management businesses of Lehman Brothers' Investment Management Division (together with Neuberger Berman, the "Acquired Businesses") (the "Acquisition"). On December 22, 2008, the bankruptcy court having jurisdiction over the Lehman Brothers matter approved the sale of the Acquired Businesses to NBSH (or its successor or assign), as the successful bidder.

The Acquisition closed on May 4, 2009. The Acquired Businesses are now indirectly owned by, among others, portfolio managers, Neuberger Berman's management team, and certain key members and senior professionals who are employed in various parts of the Neuberger Berman complex of companies, with a minority interest retained by Lehman Brothers and certain affiliates of Lehman Brothers.

The closing of the Acquisition resulted in an "assignment" of the Funds' Management Agreements and Sub-Advisory Agreements. Such an assignment, by law, automatically terminated those agreements. Accordingly, prior to the closing the Board, including the Trustees who are not "interested persons" of the Funds' investment manager and its affiliates or the Funds, considered and approved new Management Agreements and Sub-Advisory Agreements for the Funds. The new agreements, which are virtually identical to those previously in effect, were also approved by a vote of the Funds' shareholders.

These events have not had a material impact on the Funds or their operations. Management and Neuberger continue to operate in the ordinary course of business as the investment manager and sub-adviser of the Funds.

Neuberger is retained by Management to furnish it with investment recommendations and research information without added cost to the Funds. Several individuals who are officers and/or Trustees of the Trust are also employees of Neuberger and/or Management.

161

Each class of shares has a distribution agreement with Management. Class A shares of each Fund are generally sold with an initial sales charge of up to 5.75% and no contingent deferred sales charge, except that a charge of 1.00% applies to certain redemptions made within 18 months following purchases of $1 million or more without an initial sales charge. Class C shares are sold with no initial sales charge and a 1.00% contingent deferred sales charge ("CDSC") if shares are sold within one year after purchase.

For the year ended August 31, 2009, Emerging Markets Equity and Socially Responsive each recorded capital contributions from Management in the amounts of $1,418 and $422, respectively. These amounts were paid in connection with losses outside each Fund's direct control incurred in the execution of a trade. Management does not normally make payments for losses incurred from a trade error.

For the year ended August 31, 2009, Management, acting as underwriter and broker-dealer, received net commissions from the sale of Class A and Class C shares and CDSCs from the redemptions of Class A and Class C shares as follows:

	Underwriter Net Commissions		CDSC		Broker-Dealer Net Commissions		CDSC
Climate Change Fund Class A	$	115	$	—	$	—	$	—
Climate Change Fund Class C		—		1		—		—
Emerging Markets Equity Fund Class A		337		—		—		—
Emerging Markets Equity Fund Class C		—		500		—		—
Equity Income Fund Class A		15,069		—		—		—
Equity Income Fund Class C		—		7,647		—		—
Guardian Fund Class A		—		—		—		—
Guardian Fund Class C		—		—		—		—
International Large Cap Fund Class A		126		—		—		—
International Large Cap Fund Class C		—		—		—		—
Large Cap Disciplined Growth Fund Class A		3,668		—		—		—
Large Cap Disciplined Growth Fund Class C		—		830		—		—
Mid Cap Growth Fund Class A		—		—		—		—
Mid Cap Growth Fund Class C		—		—		—		—
Select Equities Fund Class A		10,853		—		—		—
Select Equities Fund Class C		—		1,735		—		—
Small Cap Growth Fund Class A		—		—		—		—
Small Cap Growth Fund Class C		—		—		—		—
Socially Responsive Fund Class A		—		—		—		—
Socially Responsive Fund Class C		—		—		—		—

Each Fund has an expense offset arrangement in connection with its custodian contract. For the year ended August 31, 2009, the impact of this arrangement was a reduction of expenses of $1, $0, $268, $355, $546, $156, $1,043, $53, $62, $2, $1,310, $564, $14, $130, $4, $3, $366, and $3,076 for Climate Change, Emerging Markets Equity, Equity Income, Focus, Genesis, Guardian, International, International Institutional, International Large Cap, Large Cap Disciplined Growth, Mid Cap Growth, Partners, Real Estate, Regency, Select Equities, Small and Mid Cap Growth, Small Cap Growth, and Socially Responsive, respectively.

162

Note C—Securities Transactions:

During the year ended August 31, 2009, there were purchase and sale transactions (excluding short-term securities and option contracts) as follows:

(000's omitted)	Purchases		Sales		(000's omitted)	Purchases		Sales
Climate Change	$	10,423	$	9,917	Large Cap Disciplined Growth	$	106,020	$	54,631
Emerging Markets Equity⁽¹⁾		7,186		2,794	Mid Cap Growth		327,216		238,679
Equity Income		53,545		17,570	Partners		776,881		1,161,100
Focus		476,906		554,916	Real Estate		101,616		80,858
Genesis		927,243		1,246,003	Regency		37,759		57,838
Guardian		268,970		360,625	Select Equities		51,034		16,785
International		323,486		499,624	Small and Mid Cap Growth		9,588		9,086
International Institutional		218,532		276,805	Small Cap Growth		630,139		632,204
International Large Cap		83,668		108,733	Socially Responsive		329,573		310,330

(1) Period from October 8, 2008 (Commencement of Operations) to August 31, 2009.

During the year ended August 31, 2009, there were brokerage commissions on securities transactions paid to affiliated brokers as follows:

(000's omitted)	Neuberger		Lehman Brothers Inc.		(000's omitted)	Neuberger		Lehman Brothers Inc.
Climate Change	$	—	$	—	Large Cap Disciplined Growth	$	—	$	—
Emerging Markets Equity⁽¹⁾		—		—	Mid Cap Growth		—		1
Equity Income		—		—	Partners		—		10
Focus		1		7	Real Estate		—		1
Genesis		—		—	Regency		—		—
Guardian		—		3	Select Equities		1		—
International		—		—	Small and Mid Cap Growth		—		—
International Institutional		—		—	Small Cap Growth		—		8
International Large Cap		—		—	Socially Responsive		—		4

(1) Period from October 8, 2008 (Commencement of Operations) to August 31, 2009.

Note D—Fund Share Transactions:

Share activity for the years ended August 31, 2009 and August 31, 2008 was as follows:

	For the Year Ended August 31, 2009									For the Year Ended August 31, 2008
(000's omitted)	Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions and Conversions/ Acquisitions		Shares Redeemed			Total		Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions and Conversions/ Acquisitions		Shares Redeemed		Total
Climate Change:
Institutional Class		—		10		—			10		230		—		—		230	⁽⁴⁾
Class A		139		8		(141	)		6		206		—		—		206	⁽⁴⁾
Class C		20		1		(1	)		20		10		—		—		10	⁽⁴⁾

163

	For the Year Ended August 31, 2009										For the Year Ended August 31, 2008
(000's omitted)	Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions and Conversions/ Acquisitions		Shares Redeemed			Total			Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions and Conversions/ Acquisitions			Shares Redeemed			Total
Emerging Markets Equity:⁽⁷⁾
Institutional Class		280		8		—			288			—		—			—			—
Class A		141		—		(11	)		130			—		—			—			—
Class C		21		—		(5	)		16			—		—			—			—
Equity Income:
Trust Class		—		—		—			—			—		(494	)⁽¹⁰⁾		(18	)		(512	)
Institutional Class		2,171		8		(537	)		1,642			—		519	⁽¹⁰⁾		—			519	⁽⁶⁾
Class A		4,424		82		(1,777	)		2,729			2,221		3			(18	)		2,206	⁽⁶⁾
Class C		488		2		(112	)		378			129		—			(17	)		112	⁽⁶⁾
Focus:
Investor Class		516		4,798		(4,831	)		483			439		5,733			(5,122	)		1,050
Trust Class		516		372		(1,213	)		(325	)		384		621			(1,727	)		(722	)
Advisor Class		179		207		(491	)		(105	)		170		287			(520	)		(63	)
Genesis:
Investor Class		14,600		3,788		(19,983	)		(1,595	)		9,275		17,039	⁽¹¹⁾		(11,202	)		15,112
Trust Class		22,236		5,511		(30,734	)		(2,987	)		22,066		14,796			(34,022	)		2,840
Advisor Class		6,679		1,116		(8,651	)		(856	)		5,731		3,516	⁽¹¹⁾		(6,257	)		2,990
Institutional Class		21,974		5,954		(29,770	)		(1,842	)		31,370		13,106			(9,245	)		35,231
Guardian
Investor Class		4,085		10,268		(11,403	)		2,950			3,834		9,112			(9,864	)		3,082
Trust Class		1,529		1,140		(2,509	)		160			1,206		1,013			(2,103	)		116
Advisor Class		22		7		(32	)		(3	)		17		7			(31	)		(7	)
Institutional Class⁽⁹⁾		5		—		—			5			—		—			—			—
Class A⁽⁹⁾		58		—		—			58			—		—			—			—
Class C⁽⁹⁾		5		—		—			5			—		—			—			—
Class R3⁽⁹⁾		5		—		—			5			—		—			—			—
International:
Investor Class		1,634		516		(9,747	)		(7,597	)		1,973		4,364			(10,260	)		(3,923	)
Trust Class		2,448		445		(10,990	)		(8,097	)		3,875		4,740			(16,371	)		(7,756	)
International Institutional:
Institutional Class		6,536		1,685		(20,306	)		(12,085	)		1,740		8,347			(8,022	)		2,065
International Large Cap:
Trust Class		1,543		131		(3,123	)		(1,449	)		2,267		237			(1,896	)		608
Institutional Class		478		361		(3,577	)		(2,738	)		8,624		481			(6,995	)		2,110
Class A		306		8		(20	)		294			219		—			(2	)		217	⁽¹⁾
Class C		39		—		—			39			11		—			—			11	⁽¹⁾
Class R3⁽⁹⁾		7		—		—			7			—		—			—			—

164

	For the Year Ended August 31, 2009											For the Year Ended August 31, 2008
(000's omitted)	Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions and Conversions/ Acquisitions			Shares Redeemed			Total			Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions and Conversions/ Acquisitions		Shares Redeemed			Total
Large Cap Disciplined Growth:
Investor Class		884		40	⁽¹²⁾		(592	)		332			545		—		(276	)		269
Institutional Class⁽⁸⁾		3,604		606	⁽¹³⁾		(351	)		3,859			—		—		—			—
Class A⁽⁸⁾		5,234		5,829	^(12)(13)		(521	)		10,542			—		—		—			—
Class C⁽⁸⁾		1,377		3,092	⁽¹³⁾		(176	)		4,293			—		—		—			—
Class R3⁽⁹⁾		9		—			—			9			—		—		—			—
Mid Cap Growth:
Investor Class		2,627		—			(6,426	)		(3,799	)		5,035		—		(5,776	)		(741	)
Trust Class		1,431		—			(791	)		640			434		—		(461	)		(27	)
Advisor Class		493		—			(117	)		376			163		—		(36	)		127
Institutional Class		16,738		—			(2,515	)		14,223			4,345		—		(727	)		3,618
Class A⁽⁹⁾		11		—			—			11			—		—		—			—
Class C⁽⁹⁾		5		—			—			5			—		—		—			—
Class R3⁽⁹⁾		5		—			—			5			—		—		—			—
Partners:
Investor Class		7,189		1,509			(22,895	)		(14,197	)		13,919		2,820		(11,492	)		5,247
Trust Class		7,840		873			(16,496	)		(7,783	)		13,231		1,662		(17,105	)		(2,212	)
Advisor Class		9,828		604			(13,107	)		(2,675	)		7,028		1,037		(6,982	)		1,083
Institutional Class		4,445		161			(2,989	)		1,617			1,911		180		(443	)		1,648
Real Estate:
Trust Class		6,708		317			(3,859	)		3,166			2,421		1,053		(6,263	)		(2,789	)
Institutional Class		382		1			(115	)		268			163		—		—			163	⁽⁵⁾
Regency:
Investor Class		1,039		313			(2,662	)		(1,310	)		1,380		499		(1,969	)		(90	)
Trust Class		1,927		243			(3,425	)		(1,255	)		1,352		371		(1,107	)		616
Select Equities:
Institutional Class		828		—			(271	)		557			251		—		—			251	⁽¹⁾
Class A		5,673		4			(1,448	)		4,229			540		—		(6	)		534	⁽¹⁾
Class C		883		1			(33	)		851			85		—		—			85	⁽¹⁾
Small and Mid Cap Growth:
Trust Class		107		3			(90	)		20			127		54		(125	)		56

165

	For the Year Ended August 31, 2009										For the Year Ended August 31, 2008
(000's omitted)	Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions and Conversions/ Acquisitions		Shares Redeemed			Total			Shares Sold		Shares Issued on Reinvestment of Dividends and Distributions and Conversions/ Acquisitions		Shares Redeemed			Total
Small Cap Growth:
Investor Class		6,629		—		(9,065	)		(2,436	)		13,216		—		(2,858	)		10,358
Trust Class		1,985		—		(1,695	)		290			2,193		—		(450	)		1,743
Advisor Class		842		—		(658	)		184			1,043		—		(311	)		732
Institutional Class		420		—		(93	)		327			239		—		—			239	⁽³⁾
Class A⁽⁹⁾		6		—		—			6			—		—		—			—
Class C⁽⁹⁾		7		—		—			7			—		—		—			—
Class R3⁽⁹⁾		6		—		—			6			—		—		—			—
Socially Responsive:
Investor Class		7,280		655		(8,878	)		(943	)		9,640		1,057		(6,795	)		3,902
Trust Class		7,075		500		(5,031	)		2,544			6,599		730		(4,846	)		2,483
Institutional Class		1,742		78		(609	)		1,211			3,448		19		(538	)		2,929	⁽²⁾
Class A⁽⁹⁾		90		—		(5	)		85			—		—		—			—
Class C⁽⁹⁾		7		—		—			7			—		—		—			—
Class R3⁽⁹⁾		4		—		—			4			—		—		—			—

(1) Period from December 20, 2007 (Commencement of Operations) to August 31, 2008.

(2) Period from November 28, 2007 (Commencement of Operations) to August 31, 2008.

(3) Period from April 1, 2008 (Commencement of Operations) to August 31, 2008.

(4) Period from May 1, 2008 (Commencement of Operations) to August 31, 2008.

(5) Period from June 4, 2008 (Commencement of Operations) to August 31, 2008.

(6) Period from June 9, 2008 (Commencement of Operations) to August 31, 2008. On June 9, 2008, Equity Income's Trust Class was converted into the Fund's Institutional Class.

(7) Period from October 8, 2008 (Commencement of Operations) to August 31, 2009.

(8) Period from April 6, 2009 (Commencement of Operations) to August 31, 2009.

(9) Period from May 27, 2009 (Commencement of Operations) to August 31, 2009.

(10) Approximately 516,000 Institutional Class shares were issued in connection with conversion of approximately 516,000 Trust Class shares (see Note H).

(11) Approximately 7,701,000 Investor Class shares and 463,000 Advisor Class shares were issued in connection with the acquisition of Fasciano Fund (see Note H).

(12) Approximately 40,000 Investor Class shares were issued in connection with conversion of approximately 40,000 Class A shares (see Note H).

(13) Approximately 606,000 of Institutional Class shares, 5,869,000 of Class A shares, and 3,092,000 of Class C shares were issued in connection with the acquisition of Large Cap Disciplined Growth Fund for approximately 488,000 of Acquired Fund's Institutional Class shares, 4,752,000 of Acquired Fund's Class A shares, and 2,524,000 of Acquired Fund's Class C shares (see Note H).

166

Note E—Lines of Credit:

At August 31, 2009, each Fund was a participant in a single committed, unsecured $150,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the Federal Funds Rate plus 0.50% per annum. (As of September 18, 2009, at the higher of the overnight LIBOR or Federal Funds Rate plus 1.25% per annum). A facility fee of 0.09% (as of September 18, 2009, 0.15%) per annum of the available line of credit is charged, of which each Fund has agreed to pay its pro rata share, based on the ratio of its individual net assets to the net assets of all participants at the time the fee is due and payable. The fee is paid quarterly in arrears. Because several investment companies participate, there is no assurance that an individual Fund will have access to all or any part of the $150,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at August 31, 2009. During the year ended August 31, 2009, none of the Funds utilized this line of credit.

At August 31, 2009, International, International Institutional and International Large Cap were three of five holders of a single $100,000,000 uncommitted, secured line of credit with State Street to be used only for temporary or emergency purposes or for leverage. Another investment company managed by Management also participates in this line of credit on the same terms. Interest is charged at LIBOR, or the overnight Federal Funds Rate, plus a spread to be determined at the time of borrowing. Because two investment companies participate, there is no assurance that a Fund will have access to all or any part of the $100,000,000 at any particular time. International, International Institutional and International Large Cap had no loans outstanding pursuant to this line of credit at August 31, 2009. During the year ended August 31, 2009, International, International Institutional, and International Large Cap did not utilize this line of credit.

Note F—Investments In Affiliates*:

	Balance of Shares Held August 31, 2008		Gross Purchases and Additions		Gross Sales and Reductions		Balance of Shares Held August 31, 2009		Value August 31, 2009		Income from Investments in Affiliated Issuers Included in Total Income
Climate Change
Neuberger Berman Prime Money Fund Trust Class***		292,388		3,765,557		4,057,945		—	$	—	$	2,331
Emerging Markets Equity
Neuberger Berman Prime Money Fund Trust Class***		—		5,657,803		5,657,803		—	$	—	$	3,792
Equity Income
Neuberger Berman Government Money Fund Investor Class***		—		19,092,079		19,092,079		—	$	—	$	2,344
Neuberger Berman Prime Money Fund Trust Class***		5,379,579		16,676,863		22,056,442		—		—		22,733
Total									$	—	$	25,077
Focus
Neuberger Berman Prime Money Fund Trust Class***		27,145,869		124,035,003		151,180,872		—	$	—	$	189,478
Neuberger Berman Securities Lending Quality Fund, LLC****		179,283,932		1,176,252,409		1,309,395,118		46,141,223		46,602,635		1,393,971
Total									$	46,602,635	$	1,583,449

167

	Balance of Shares Held August 31, 2008		Gross Purchases and Additions		Gross Sales and Reductions		Balance of Shares Held August 31, 2009		Value August 31, 2009		Income from Investments in Affiliated Issuers Included in Total Income
Genesis
Abaxis, Inc.**		1,103,500		51,000		64,200		1,090,300	$	29,001,980	$	—
Alberto-Culver Co.		5,868,450		218,000		344,000		5,742,450		151,543,256		1,633,151
Alliant Techsystems		1,890,262		—		143,300		1,746,962		135,005,223		—
American Medical Systems Holdings		8,642,065		—		767,300		7,874,765		120,011,419		—
AmSurg Corp.		2,050,634		—		119,900		1,930,734		39,193,900		—
AptarGroup Inc.		6,963,600		—		408,200		6,555,400		225,374,652		3,964,890
Arbitron Inc.**		1,980,467		—		679,900		1,300,567		23,826,387		605,557
Arena Resources		3,481,128		—		197,500		3,283,628		100,413,344		—
ArthroCare Corp.**		2,963,662		—		2,963,662		—		—		—
Astec Industries		2,120,622		—		171,000		1,949,622		49,383,925		—
Blackbaud, Inc.		4,581,603		50,000		262,100		4,369,503		84,156,628		1,761,061
Boston Beer Company		1,059,319		20,000		60,300		1,019,019		40,506,005		—
Brady Corp.**		3,749,200		—		2,328,911		1,420,289		42,083,163		1,692,174
Bucyrus International		4,369,600		272,100		256,000		4,385,700		130,913,145		426,433
CARBO Ceramics		2,140,500		202,400		125,700		2,217,200		95,450,460		1,437,694
Carrizo Oil & Gas		1,784,327		1,800		104,900		1,681,227		32,498,118		—
Chart Industries		2,320,828		—		131,900		2,188,928		40,845,396		—
Church & Dwight		5,671,018		—		1,620,963		4,050,055		231,379,642		1,793,296
CLARCOR Inc.		5,796,322		—		374,700		5,421,622		173,817,201		1,990,826
Compass Minerals International		3,607,800		400,800		206,600		3,802,000		202,190,360		5,011,352
Dionex Corp.		2,168,532		—		127,000		2,041,532		122,777,734		—
Drew Industries**		2,375,900		—		2,375,900		—		—		—
Exponent, Inc.		1,225,235		—		60,500		1,164,735		32,938,706		—
Flotek Industries**		1,491,600		—		1,491,600		—		—		—
Forward Air		2,271,700		35,000		263,100		2,043,600		47,166,288		589,582
Foundation Coal Holdings**		2,981,200		315,000		3,296,200		—		—		589,310
Haemonetics Corp.		2,597,300		216,000		152,700		2,660,600		140,053,984		—
Healthcare Services Group		4,022,654		—		416,500		3,606,154		63,756,803		2,604,036
Hibbett Sports		1,892,463		77,300		105,700		1,864,063		32,751,587		—
Hub Group Class A**		2,930,200		23,700		1,091,400		1,862,500		40,844,625		—
ICON PLC		3,431,000		566,600		199,200		3,798,400		82,121,408		—
Immucor Inc.**		3,513,491		—		206,000		3,307,491		59,832,512		—
Integra LifeSciences Holdings**		2,452,202		—		2,337,810		114,392		3,865,306		—
ION Geophysical**		5,510,900		—		5,510,900		—		—		—
J & J Snack Foods		1,518,416		—		247,470		1,270,946		55,540,340		550,176
K-V Pharmaceutical**		3,696,247		—		3,696,247		—		—		—

168

	Balance of Shares Held August 31, 2008		Gross Purchases and Additions		Gross Sales and Reductions		Balance of Shares Held August 31, 2009		Value August 31, 2009		Income from Investments in Affiliated Issuers Included in Total Income
Landauer, Inc.		81,300		489,400		27,900		542,800	$	29,875,712	$	376,739
Layne Christensen		2,059,065		301,656		120,400		2,240,321		57,800,282		—
Lindsay Corp.		961,350		441,600		60,700		1,342,250		55,716,798		353,796
ManTech International		2,248,000		321,400		143,300		2,426,100		128,195,124		—
Matthews International		3,737,800		—		218,900		3,518,900		122,598,476		922,246
MICROS Systems		5,392,542		178,200		321,500		5,249,242		146,296,375		—
MWI Veterinary Supply		1,241,529		—		72,900		1,168,629		43,484,685		—
NATCO Group		2,097,228		—		122,900		1,974,328		82,132,045		—
Neuberger Berman Prime Money Fund Trust Class***		823,917,513		953,313,212		1,777,230,725		—		—		4,921,502
Nordson Corp.		2,623,230		—		217,800		2,405,430		128,882,939		1,798,460
Parallel Petroleum**		3,551,541		—		3,551,541		—		—		—
Raven Industries		1,989,876		—		116,900		1,872,976		54,129,006		3,389,348
Ritchie Bros. Auctioneers		5,736,060		—	397,900		5,338,160		133,774,290		2,003,010
Robbins & Myers		1,639,300		244,600		96,400		1,787,500		41,505,750		256,788
Rofin-Sinar Technologies		3,636,350		—		213,200		3,423,150		77,842,431		—
Ruddick Corp.		3,483,702		681,000		208,700		3,956,002		105,071,413		1,770,049
Simpson Manufacturing**		3,494,800		—		2,191,900		1,302,900		33,484,530		1,066,829
Sirona Dental Systems		2,975,226		—		169,500		2,805,726		74,183,395		—
Solera Holdings		2,424,116		2,189,589		133,700		4,480,005		118,003,332
Surmodics, Inc.		2,159,130		—		126,700		2,032,430		46,522,323		—
Tennant Co.**		1,044,800		—		1,044,800		—		—		190,567
Titan International		2,137,147		326,400		263,500		2,200,047		18,282,391		45,952
Toro Co.**		3,284,604		—		1,987,610		1,296,994		49,194,982		1,664,942
United Stationers**		2,376,728		—		1,453,353		923,375		42,189,004		—
Wabtec Corp.		2,826,100		341,400		165,400		3,002,100		112,428,645		114,574
Westamerica Bancorp		2,243,243		—		121,400		2,121,843		109,126,385		3,008,839
Wright Medical Group**		1,891,994		69,200		111,000		1,850,194		30,047,151		—
Zebra Technologies		4,115,847		—		241,600		3,874,247		96,817,433		—
Total									$	4,566,828,394	$	46,533,179
Guardian
Neuberger Berman Prime Money Fund Trust Class***		13,486,818		208,148,076		221,634,894		—	$	—	$	128,800
Neuberger Berman Securities Lending Quality Fund, LLC****		72,711,362		721,083,660		790,665,854		3,129,168		3,160,460		534,546
Total									$	3,160,460	$	663,346

169

August 31,
2009

	Balance of Shares Held August 31, 2008		Gross Purchases and Additions		Gross Sales and Reductions		Balance of			Value August 31, 2009		Income from Investments in Affiliated Issuers Included in Total Income
International
Neuberger Berman Prime Money Fund Trust Class***		47,734,447		242,052,618		289,787,065		—	$	—	$	259,293
Neuberger Berman Securities Lending Quality Fund, LLC****		44,490,214		203,488,769		232,549,208		15,429,775		15,584,073		404,741
Total									$	15,584,073	$	664,034
International Institutional
Neuberger Berman Prime Money Fund Trust Class***		22,533,581		160,814,296		183,347,877		—	$	—	$	146,674
Neuberger Berman Securities Lending Quality Fund, LLC****		25,033,565		84,650,917		105,181,716		4,502,766		4,547,794		213,385
Total									$	4,547,794	$	360,059
International Large Cap
Neuberger Berman Prime Money Fund Trust Class***		7,184,775		56,083,703		63,268,478		—	$	—	$	67,217
Neuberger Berman Securities Lending Quality Fund, LLC****		9,389,597		42,190,486		49,269,918		2,310,165		2,333,267		106,666
Total									$	2,333,267	$	173,883
Large Cap Disciplined Growth
Neuberger Berman Prime Money Fund Trust Class***		314,130		29,674,922		29,989,052		—	$	—	$	3,518
Mid Cap Growth
Neuberger Berman Prime Money Fund Trust Class***		33,930,331		133,464,966		167,395,297		—	$	—	$	220,787
Neuberger Berman Securities Lending Quality Fund, LLC****		62,574,628		466,466,266		460,371,750		68,669,144		69,355,835		1,281,503
Total									$	69,355,835	$	1,502,290
Partners
Neuberger Berman Prime Money Fund Trust Class***		39,861,472		498,787,072		538,648,544		—	$	—	$	179,675
Neuberger Berman Securities Lending Quality Fund, LLC****		349,883,850		2,974,864,316		3,203,767,691		120,980,475		122,190,280		5,371,988
Total									$	122,190,280	$	5,551,663

170

	Balance of Shares Held August 31, 2008		Gross Purchases and Additions		Gross Sales and Reductions		Balance of Shares Held August 31, 2009		Value August 31, 2009		Income from Investments in Affiliated Issuers Included in Total Income
Real Estate
Neuberger Berman Prime Money Fund Trust Class***		1,729,191		35,479,567		37,208,758		—	$	—	$	11,183
Neuberger Berman Securities Lending Quality Fund, LLC****		9,693,032		137,202,409		137,750,811		9,144,630		9,236,077		166,081
Total									$	9,236,077	$	177,264
Regency
Neuberger Berman Prime Money Fund Trust Class***		12,548,922		25,910,080		38,459,002		—	$	—	$	37,426
Neuberger Berman Securities Lending Quality Fund, LLC****		10,776,449		110,226,397		117,351,013		3,651,833		3,688,351		157,431
Total									$	3,688,351	$	194,857
Select Equities
Neuberger Berman Prime Money Fund Trust Class***		2,295,880		44,188,345		46,484,225		—	$	—	$	35,495
Small and Mid Cap Growth
Neuberger Berman Prime Money Fund Trust Class***		544,508		5,157,585		5,702,093		—	$	—	$	4,035
Small Cap Growth
Neuberger Berman Prime Money Fund Trust Class***		24,408,951		167,917,397		192,326,348		—	$	—	$	80,683
Neuberger Berman Securities Lending Quality Fund, LLC****		55,736,558		333,592,794		357,658,224		31,671,128		31,987,839		656,910
Total									$	31,987,839	$	737,593
Socially Responsive
Neuberger Berman Securities Lending Quality Fund, LLC****		—		377,114,773		372,825,639		4,289,134	$	4,332,025	$	201,224

* Affiliated issuers, as defined in the 1940 Act.

** At August 31, 2009, the issuers of these securities were no longer affiliated with the Fund.

*** Prime Money and Government Money were also managed by Management and may have been considered affiliates since they had the same officers, Board members, and investment manager as the Fund and because, at times, the Fund may have owned 5% or more of the outstanding voting securities of Prime Money or Government Money, respectively.

**** Quality Fund, a fund managed by NBFI, an affiliate of Management, is used to invest cash the Funds receive as collateral for securities loaned as approved by the Board. Because all shares of Quality Fund are held by funds in the related investment management complex, Quality Fund may be considered an affiliate of the Funds.

171

Note G—Recent Accounting Pronouncement:

In accordance with the provision set forth in FASB Statement of Financial Accounting Standards No. 165 ("FAS 165"), "Subsequent Events," Management has evaluated the possibility of subsequent events existing in the Funds' financial statements through October 16, 2009. Management has determined that there are no subsequent events that, in accordance with FAS 165, would need to be disclosed in the Funds' financial statements through this date.

Note H—Reorganizations and Share Class Conversions:

On June 9, 2008, Trust Class shares of Equity Income converted into Institutional Class shares of Equity Income pursuant to a share class conversion ("Institutional Class Conversion"). The Institutional Class Conversion was accomplished by a tax-free conversion of 516,483 Trust Class shares of Equity Income (valued at $5,653,933) into 516,483 Institutional Class shares of Equity Income. The number of Institutional Class shares of Equity Income outstanding immediately after the Institutional Class Conversion was 516,483. The net assets of Institutional Class shares of Equity Income immediately after the Institutional Class Conversion were $5,653,933.

On August 15, 2008, Genesis acquired all of the net assets of Neuberger Berman Fasciano Fund ("Fasciano") pursuant to a Plan of Reorganization and Dissolution approved by Fasciano shareholders. The merger was accomplished by a tax-free exchange of: 7,700,868 shares of the Investor Class of Genesis (valued at $270,161,608) for the 7,608,283 shares of the Investor Class of Fasciano outstanding on August 15, 2008 and the 462,573 shares of the Advisor Class of Genesis (valued at $13,574,657) for the 1,451,583 shares of the Advisor Class of Fasciano outstanding on August 15, 2008. Fasciano's aggregate net assets at that date ($283,736,265, including $66,024,106 of net unrealized appreciation) were combined with those of Genesis. The combined net assets of Genesis immediately after the merger were $12,591,585,945.

On April 9, 2009, Neuberger Berman Century Fund ("Acquiring Fund") acquired all of the net assets of Neuberger Berman Large Cap Disciplined Growth Fund ("Acquired Fund") and changed its name to Neuberger Berman Large Cap Disciplined Growth Fund pursuant to a Plan of Reorganization and Dissolution approved by the Board. The reorganization was accomplished by a tax-free exchange of 5,869,273 shares of Class A of Acquiring Fund (valued at $31,234,312) for 4,752,086 shares of Class A of Acquired Fund outstanding on April 9, 2009, 3,091,731 shares of Class C of Acquiring Fund (valued at $16,455,988) for 2,524,011 shares of Class C of Acquired Fund outstanding on April 9, 2009, and 606,318 shares of Institutional Class of Acquiring Fund (valued at $3,226,698) for 488,494 shares of Institutional Class of Acquired Fund outstanding on April 9, 2009. Acquired Fund's aggregate net assets at that date ($50,916,998, including $864,207 of net unrealized appreciation) were combined with those of Acquiring Fund. The combined net assets of Acquiring Fund immediately after the reorganization were $61,540,126. In addition, immediately after the reorganization, Class A shares of Acquiring Fund held by Grandfathered Investors (as defined below) were converted into Investor Class shares of Acquiring Fund pursuant to a share class conversion ("Investor Class Conversion"). The Investor Class Conversion was accomplished by a tax-free conversion of 40,012 Class A shares of Acquiring Fund (valued at $212,934) into 39,996 Investor Class shares of Acquiring Fund. The number of Investor Class shares of Acquiring Fund outstanding immediately after the Investor Class Conversion was 1,847,397. The net assets of Investor Class shares of Acquiring Fund immediately after the Investor Class Conversion were $9,835,309. "Grandfathered Investors" are investors who established accounts in Investor Class or Trust Class shares of a Neuberger Berman Fund prior to March 1, 2008, and who have continuously maintained an account in Investor or Trust Class shares since that date.

172

Financial Highlights

The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements.

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and				Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital		Total Distributions
Climate Change Fund
Institutional Class
8/31/2009	$	8.93	$	0.05		$	(2.47	)	$	(2.42	)	$	(0.22	)	$	—		$	—	$	(0.22	)
Period from 5/1/2008^{^} to 8/31/2008	$	10.00	$	0.06		$	(1.13	)	$	(1.07	)	$	—		$	—		$	—	$	—
Class A
8/31/2009	$	8.93	$	0.03		$	(2.47	)	$	(2.44	)	$	(0.22	)	$	—		$	—	$	(0.22	)
Period from 5/1/2008^{^} to 8/31/2008	$	10.00	$	0.05		$	(1.12	)	$	(1.07	)	$	—		$	—		$	—	$	—
Class C
8/31/2009	$	8.90	$	(0.01	)	$	(2.46	)	$	(2.47	)	$	(0.22	)	$	—		$	—	$	(0.22	)
Period from 5/1/2008^{^} to 8/31/2008	$	10.00	$	0.02		$	(1.12	)	$	(1.10	)	$	—		$	—		$	—	$	—
Emerging Markets Equity Fund
Institutional Class
Period from 10/8/2008^{^} to 8/31/2009	$	10.00	$	0.15		$	4.16		$	4.31		$	(0.26	)	$	—		$	—	$	(0.26	)
Class A
Period from 10/8/2008^{^} to 8/31/2009	$	10.00	$	0.15		$	4.13		$	4.28		$	(0.26	)	$	—		$	—	$	(0.26	)
Class C
Period from 10/8/2008^{^} to 8/31/2009	$	10.00	$	0.08		$	4.12		$	4.20		$	(0.24	)	$	—		$	—	$	(0.24	)
Equity Income Fund
Institutional Class
8/31/2009	$	10.72	$	0.34		$	(2.04	)	$	(1.70	)	$	(0.21	)	$	(0.07	)	$	—	$	(0.28	)
8/31/2008^‡‡	$	10.52	$	0.31		$	0.40		$	0.71		$	(0.27	)	$	(0.24	)	$	—	$	(0.51	)
Period from 11/2/2006^{^} to 8/31/2007^‡‡	$	10.00	$	0.25		$	0.52		$	0.77		$	(0.25	)	$	(0.00	)	$	—	$	(0.25	)

See Notes to Financial Highlights

173

	Redemption Fees^øø		Net Asset Value, End of Year		Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
Climate Change Fund
Institutional Class
8/31/2009	$	—	$	6.29		(26.55	%)	$	1.5		.97	%		.97	%^‡		.85	%		374	%
Period from 5/1/2008^{^} to 8/31/2008	$	—	$	8.93		(10.70	%)**	$	2.1		.95	%*		.95	%^‡*		1.72	%*		71	%**
Class A
8/31/2009	$	—	$	6.27		(26.77	%)	$	1.3		1.22	%		1.22	%^‡		.58	%		374	%
Period from 5/1/2008^{^} to 8/31/2008	$	—	$	8.93		(10.70	%)**	$	1.8		1.20	%*		1.20	%^‡*		1.42	%*		71	%**
Class C
8/31/2009	$	—	$	6.21		(27.22	%)	$	0.2		1.97	%		1.97	%^‡		(.12	%)		374	%
Period from 5/1/2008^{^} to 8/31/2008	$	—	$	8.90		(11.00	%)**	$	0.1		1.95	%*		1.95	%^‡*		.72	%*		71	%**
Emerging Markets Equity Fund
Institutional Class
Period from 10/8/2008^{^} to 8/31/2009	$	0.00	$	14.05		44.66	%**	$	4.0		1.28	%*		1.28	%^‡*		1.55	%*		84	%**
Class A
Period from 10/8/2008^{^} to 8/31/2009	$	0.00	$	14.02		44.38	%**	$	1.8		1.53	%*		1.53	%^‡*		1.31	%*		84	%**
Class C
Period from 10/8/2008^{^} to 8/31/2009	$	0.00	$	13.96		43.42	%**	$	0.2		2.28	%*		2.28	%^‡*		.77	%*		84	%**
Equity Income Fund
Institutional Class
8/31/2009	$	—	$	8.74		(15.54	%)	$	18.9		.80	%		.80	%^‡		3.97	%		61	%
8/31/2008^‡‡	$	—	$	10.72		7.01	%^†††	$	5.6		.97	%		.96	%^‡		2.94	%		48	%
Period from 11/2/2006^{^} to 8/31/2007^‡‡	$	—	$	10.52		7.73	%**	$	5.4		1.00	%*		1.00	%^‡*		2.81	%*		26	%**

174

Financial Highlights (cont'd)

to 8/31/2008

		Net Asset Value, Beginning of Year			Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)				Total From Investment Operations				Dividends from Net Investment Income				Distributions from Net Realized Capital Gains			Tax Return of Capital			Total Distributions
Class A
8/31/2009		$	10.72		$	0.25		$	(1.99	)		$	(1.74	)		$	(0.19	)		$	(0.07	)	$	—		$	(0.26	)
Period from 6/9/2008	$		$	10.95		$	0.07		$	(0.24	)		$	(0.17	)		$	(0.06	)		$	—		$	—		$	(0.06	)
Class C
8/31/2009		$	10.71		$	0.20		$	(2.00	)		$	(1.80	)		$	(0.14	)		$	(0.07	)	$	—		$	(0.21	)
Period from 6/9/2008^{^} to 8/31/2008		$	10.95		$	0.05		$	(0.24	)		$	(0.19	)		$	(0.05	)		$	—		$	—		$	(0.05	)
Focus Fund
Investor Class
8/31/2009		$	24.78		$	0.14		$	(6.00	)		$	(5.86	)		$	(0.14	)		$	(2.19	)	$	—		$	(2.33	)
8/31/2008		$	32.79		$	0.15		$	(2.09	)		$	(1.94	)		$	(0.16	)		$	(5.91	)	$	—		$	(6.07	)
8/31/2007		$	34.30		$	0.15		$	3.33			$	3.48			$	(0.15	)		$	(4.84	)	$	—		$	(4.99	)
8/31/2006		$	37.21		$	0.13		$	2.24			$	2.37			$	(0.24	)		$	(5.04	)	$	—		$	(5.28	)
8/31/2005		$	31.96		$	0.21		$	5.12			$	5.33			$	(0.08	)		$	—		$	—		$	(0.08	)
Trust Class
8/31/2009		$	18.18		$	0.07		$	(4.40	)		$	(4.33	)		$	(0.10	)		$	(1.61	)	$	—		$	(1.71	)
8/31/2008		$	24.09		$	0.06		$	(1.54	)		$	(1.48	)		$	(0.09	)		$	(4.34	)	$	—		$	(4.43	)
8/31/2007		$	25.19		$	0.05		$	2.46			$	2.51			$	(0.04	)		$	(3.57	)	$	—		$	(3.61	)
8/31/2006		$	27.36		$	0.04		$	1.65			$	1.69			$	(0.16	)		$	(3.70	)	$	—		$	(3.86	)
8/31/2005		$	23.51		$	0.10		$	3.76			$	3.86			$	(0.01	)		$	—		$	—		$	(0.01	)
Advisor Class
8/31/2009		$	12.64		$	0.03		$	(3.07	)		$	(3.04	)		$	(0.09	)		$	(1.11	)	$	—		$	(1.20	)
8/31/2008		$	16.80		$	0.02		$	(1.08	)		$	(1.06	)		$	(0.07	)		$	(3.03	)	$	—		$	(3.10	)
8/31/2007		$	17.57		$	0.00		$	1.71			$	1.71			$	—			$	(2.48	)	$	—		$	(2.48	)
8/31/2006		$	19.00		$	(0.00	)	$	1.15			$	1.15			$	—			$	(2.58	)	$	—		$	(2.58	)
8/31/2005		$	16.35		$	0.04		$	2.61			$	2.65			$	—			$	—		$	—		$	—
Genesis Fund
Investor Class
8/31/2009		$	34.95		$	(0.01	)	$	(9.23	)		$	(9.24	)		$	—			$	(1.32	)	$	(0.00	)	$	(1.32	)
8/31/2008		$	37.55		$	(0.07	)	$	3.53			$	3.46			$	(0.16	)		$	(5.90	)	$	—		$	(6.06	)
8/31/2007		$	34.92		$	0.18	^@@	$	5.58	^@@		$	5.76			$	(0.46	)		$	(2.67	)	$	—		$	(3.13	)
8/31/2006		$	34.03		$	(0.05	)	$	1.71			$	1.66			$	—			$	(0.77	)	$	—		$	(0.77	)
8/31/2005		$	27.03		$	(0.08	)	$	7.97			$	7.89			$	—			$	(0.89	)	$	—		$	(0.89	)

See Notes to Financial Highlights

175

	Redemption Fees^øø		Net Asset Value, End of Year		Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A
8/31/2009	$	—	$	8.72		(16.01	%)	$	43.0		1.16	%		1.16	%^‡		3.15	%		61	%
Period from 6/9/2008^{^} to 8/31/2008	$	—	$	10.72		(1.57	%)**	$	23.6		1.17	%*		1.16	%^‡*		2.72	%*		48	%^Ø
Class C
8/31/2009	$	—	$	8.70		(16.60	%)	$	4.3		1.91	%		1.91	%^‡		2.46	%		61	%
Period from 6/9/2008^{^} to 8/31/2008	$	—	$	10.71		(1.72	%)**	$	1.2		1.92	%*		1.90	%^‡*		2.22	%*		48	%^Ø
Focus Fund
Investor Class
8/31/2009	$	—	$	16.59		(21.06	%)	$	540.9		.99	%		.99	%^‡		.92	%		89	%
8/31/2008	$	—	$	24.78		(7.12	%)	$	795.6		.89	%		.88	%^‡		.56	%		90	%
8/31/2007	$	—	$	32.79		10.71	%	$	1,018.6		.88	%		.87	%^‡		.44	%		53	%
8/31/2006	$	—	$	34.30		7.00	%	$	1,093.1		.88	%		.87	%^‡		.37	%		41	%
8/31/2005	$	—	$	37.21		16.69	%	$	1,185.4		.87	%		.87	%^‡		.57	%		19	%
Trust Class
8/31/2009	$	—	$	12.14		(21.21	%)	$	23.7		1.24	%		1.24	%^‡		.65	%		89	%
8/31/2008	$	—	$	18.18		(7.37	%)	$	41.5		1.11	%		1.10	%^‡		.31	%		90	%
8/31/2007	$	—	$	24.09		10.49	%	$	72.3		1.08	%		1.07	%^‡		.21	%		53	%
8/31/2006	$	—	$	25.19		6.81	%	$	112.8		1.06	%		1.06	%^‡		.14	%		41	%
8/31/2005	$	—	$	27.36		16.44	%	$	189.4		1.05	%		1.04	%^‡		.38	%		19	%
Advisor Class
8/31/2009	$	—	$	8.40		(21.45	%)	$	10.2		1.50	%		1.50	%^‡		.40	%		89	%
8/31/2008	$	—	$	12.64		(7.55	%)	$	16.7		1.34	%		1.33	%^‡		.12	%		90	%
8/31/2007	$	—	$	16.80		10.23	%	$	23.3		1.29	%		1.28	%^‡		.02	%		53	%
8/31/2006	$	—	$	17.57		6.62	%	$	28.1		1.27	%		1.26	%^‡		(.03	%)		41	%
8/31/2005	$	—	$	19.00		16.21	%	$	35.3		1.24	%		1.23	%^‡		.20	%		19	%
Genesis Fund
Investor Class
8/31/2009	$	—	$	24.39		(25.72	%)	$	1,626.8		1.08	%		1.08	%^‡		(.04	%)		12	%
8/31/2008	$	—	$	34.95		10.18	%	$	2,386.8		1.03	%		1.02	%^‡		(.20	%)		18	%^##
8/31/2007	$	—	$	37.55		17.51	%	$	1,997.2		1.03	%		1.02	%^‡		.51	%^@@		25	%
8/31/2006	$	—	$	34.92		4.89	%	$	1,901.1		1.02	%		1.02	%^‡		(.15	%)		19	%
8/31/2005	$	—	$	34.03		29.68	%	$	1,823.2		1.04	%		1.04	%^‡		(.25	%)		11	%

176

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital			Total Distributions
Trust Class
8/31/2009	$	50.16	$	(0.03	)	$	(13.24	)	$	(13.27	)	$	—		$	(1.89	)	$	(0.00	)	$	(1.89	)
8/31/2008	$	53.69	$	(0.14	)	$	5.12		$	4.98		$	(0.08	)	$	(8.43	)	$	—		$	(8.51	)
8/31/2007	$	49.89	$	0.24	^@@	$	7.96	^@@	$	8.20		$	(0.60	)	$	(3.80	)	$	—		$	(4.40	)
8/31/2006	$	48.66	$	(0.11	)	$	2.44		$	2.33		$	—		$	(1.10	)	$	—		$	(1.10	)
8/31/2005	$	38.66	$	(0.13	)	$	11.39		$	11.26		$	—		$	(1.26	)	$	—		$	(1.26	)
Advisor Class
8/31/2009	$	29.25	$	(0.07	)	$	(7.73	)	$	(7.80	)	$	—		$	(1.10	)	$	(0.00	)	$	(1.10	)
8/31/2008	$	31.43	$	(0.16	)	$	2.98		$	2.82		$	(0.07	)	$	(4.93	)	$	—		$	(5.00	)
8/31/2007	$	29.10	$	0.06	^@@	$	4.67	^@@	$	4.73		$	(0.18	)	$	(2.22	)	$	—		$	(2.40	)
8/31/2006	$	28.46	$	(0.14	)	$	1.42		$	1.28		$	—		$	(0.64	)	$	—		$	(0.64	)
8/31/2005	$	22.66	$	(0.14	)	$	6.67		$	6.53		$	—		$	(0.73	)	$	—		$	(0.73	)
Institutional Class
8/31/2009	$	48.09	$	0.06		$	(12.70	)	$	(12.64	)	$	—		$	(1.81	)	$	(0.00	)	$	(1.81	)
8/31/2008	$	51.52	$	(0.01	)	$	4.90		$	4.89		$	(0.23	)	$	(8.09	)	$	—		$	(8.32	)
8/31/2007	$	47.95	$	0.32	^@@	$	7.68	^@@	$	8.00		$	(0.78	)	$	(3.65	)	$	—		$	(4.43	)
8/31/2006	$	46.66	$	0.01		$	2.34		$	2.35		$	—		$	(1.06	)	$	—		$	(1.06	)
8/31/2005	$	36.98	$	(0.02	)	$	10.91		$	10.89		$	—		$	(1.21	)	$	—		$	(1.21	)
Guardian Fund
Investor Class
8/31/2009	$	16.58	$	0.07		$	(4.15	)	$	(4.08	)	$	(0.05	)	$	(1.30	)	$	—		$	(1.35	)
8/31/2008	$	19.89	$	0.11		$	(1.05	)	$	(0.94	)	$	(0.13	)	$	(2.24	)	$	—		$	(2.37	)
8/31/2007	$	18.64	$	0.14		$	2.49		$	2.63		$	(0.07	)	$	(1.31	)	$	—		$	(1.38	)
8/31/2006	$	17.52	$	0.08		$	1.16		$	1.24		$	(0.12	)	$	—		$	—		$	(0.12	)
8/31/2005	$	14.46	$	0.13		$	2.98		$	3.11		$	(0.05	)	$	—		$	—		$	(0.05	)
Trust Class
8/31/2009	$	13.02	$	0.04		$	(3.25	)	$	(3.21	)	$	(0.04	)	$	(1.02	)	$	—		$	(1.06	)
8/31/2008	$	15.64	$	0.06		$	(0.82	)	$	(0.76	)	$	(0.10	)	$	(1.76	)	$	—		$	(1.86	)
8/31/2007	$	14.66	$	0.07		$	1.98		$	2.05		$	(0.04	)	$	(1.03	)	$	—		$	(1.07	)
8/31/2006	$	13.79	$	0.04		$	0.91		$	0.95		$	(0.08	)	$	—		$	—		$	(0.08	)
8/31/2005	$	11.39	$	0.08		$	2.35		$	2.43		$	(0.03	)	$	—		$	—		$	(0.03	)

See Notes to Financial Highlights

177

	Redemption Fees^øø		Net Asset Value, End of Year		Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
Trust Class
8/31/2009	$	—	$	35.00		(25.73	%)	$	3,244.1		1.12	%		1.12	%^‡		(.09	%)		12	%
8/31/2008	$	—	$	50.16		10.22	%	$	4,799.6		1.09	%		1.09	%^‡		(.27	%)		18	%^##
8/31/2007	$	—	$	53.69		17.41	%	$	4,985.5		1.10	%		1.09	%^‡		.48	%^@@		25	%
8/31/2006	$	—	$	49.89		4.82	%	$	5,970.9		1.09	%		1.09	%^‡		(.22	%)		19	%
8/31/2005	$	—	$	48.66		29.63	%	$	6,348.2		1.10	%		1.09	%^‡		(.31	%)		11	%
Advisor Class
8/31/2009	$	—	$	20.35		(25.95	%)	$	397.9		1.38	%		1.38	%^‡		(.34	%)		12	%
8/31/2008	$	—	$	29.25		9.89	%	$	596.8		1.35	%		1.34	%^‡		(.53	%)		18	%^##
8/31/2007	$	—	$	31.43		17.14	%	$	547.2		1.35	%		1.35	%^‡		.20	%^@@		25	%
8/31/2006	$	—	$	29.10		4.52	%	$	617.4		1.35	%		1.34	%^‡		(.47	%)		19	%
8/31/2005	$	—	$	28.46		29.31	%	$	661.0		1.35	%		1.35	%^‡		(.56	%)		11	%
Institutional Class
8/31/2009	$	—	$	33.64		(25.55	%)	$	3,283.0		.85	%		.85	%^‡		.18	%		12	%
8/31/2008	$	—	$	48.09		10.48	%	$	4,781.4		.84	%		.84	%^‡		(.03	%)		18	%^##
8/31/2007	$	—	$	51.52		17.73	%	$	3,307.5		.85	%		.84	%^‡		.65	%^@@		25	%
8/31/2006	$	—	$	47.95		5.05	%	$	2,625.7		.85	%		.85	%^‡§		.03	%		19	%
8/31/2005	$	—	$	46.66		29.95	%	$	1,788.7		.85	%		.85	%^‡§		(.06	%)		11	%
Guardian Fund
Investor Class
8/31/2009	$	—	$	11.15		(22.65	%)	$	875.5		.97	%		.97	%^‡		.67	%		29	%
8/31/2008	$	—	$	16.58		(5.38	%)	$	1,252.9		.89	%		.88	%^‡		.59	%		42	%
8/31/2007	$	—	$	19.89		14.48	%	$	1,441.6		.88	%		.87	%^‡		.69	%		20	%
8/31/2006	$	—	$	18.64		7.09	%	$	1,417.0		.89	%		.88	%^‡		.47	%		34	%
8/31/2005	$	—	$	17.52		21.52	%	$	1,415.2		.90	%		.90	%^‡		.83	%		20	%
Trust Class
8/31/2009	$	—	$	8.75		(22.74	%)	$	71.0		1.14	%		1.14	%^‡		.50	%		29	%
8/31/2008	$	—	$	13.02		(5.52	%)	$	103.6		1.07	%		1.06	%^‡		.41	%		42	%
8/31/2007	$	—	$	15.64		14.30	%	$	122.7		1.05	%		1.05	%^‡		.47	%		20	%
8/31/2006	$	—	$	14.66		6.90	%	$	160.5		1.05	%		1.04	%^‡		.31	%		34	%
8/31/2005	$	—	$	13.79		21.33	%	$	180.0		1.05	%		1.04	%^‡		.64	%		20	%

178

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital		Total Distributions
Advisor Class
8/31/2009	$	14.65	$	0.01		$	(3.65	)	$	(3.64	)	$	(0.00	)	$	(1.14	)	$	—	$	(1.14	)
8/31/2008	$	17.55	$	(0.01	)	$	(0.92	)	$	(0.93	)	$	—		$	(1.97	)	$	—	$	(1.97	)
8/31/2007	$	16.48	$	0.01		$	2.22		$	2.23		$	—		$	(1.16	)	$	—	$	(1.16	)
8/31/2006	$	15.49	$	(0.02	)	$	1.01		$	0.99		$	—		$	—		$	—	$	—
8/31/2005	$	12.83	$	(0.04	)	$	2.70		$	2.66		$	—		$	—		$	—	$	—
Institutional Class
Period from 5/27/2009^{^} to 8/31/2009	$	10.39	$	0.03		$	0.74		$	0.77		$	—		$	—		$	—	$	—
Class A
Period from 5/27/2009^{^} to 8/31/2009	$	8.15	$	0.01		$	0.59		$	0.60		$	—		$	—		$	—	$	—
Class C
Period from 5/27/2009^{^} to 8/31/2009	$	9.21	$	0.00		$	0.65		$	0.65		$	—		$	—		$	—	$	—
Class R3
Period from 5/27/2009^{^} to 8/31/2009	$	9.21	$	0.01		$	0.66		$	0.67		$	—		$	—		$	—	$	—
International Fund
Investor Class
8/31/2009	$	17.64	$	0.16		$	(3.86	)	$	(3.70	)	$	(0.36	)	$	—		$	—	$	(0.36	)
8/31/2008	$	25.68	$	0.38		$	(4.26	)	$	(3.88	)	$	(0.80	)	$	(3.36	)	$	—	$	(4.16	)
8/31/2007	$	24.23	$	0.26		$	3.81		$	4.07		$	(0.29	)	$	(2.33	)	$	—	$	(2.62	)
8/31/2006	$	21.01	$	0.28		$	3.81		$	4.09		$	(0.13	)	$	(0.75	)	$	—	$	(0.88	)
8/31/2005	$	15.42	$	0.15		$	5.54		$	5.69		$	(0.11	)	$	—		$	—	$	(0.11	)
Trust Class
8/31/2009	$	19.43	$	0.17		$	(4.24	)	$	(4.07	)	$	(0.33	)	$	—		$	—	$	(0.33	)
8/31/2008	$	28.18	$	0.39		$	(4.69	)	$	(4.30	)	$	(0.77	)	$	(3.68	)	$	—	$	(4.45	)
8/31/2007	$	26.52	$	0.27		$	4.16		$	4.43		$	(0.24	)	$	(2.53	)	$	—	$	(2.77	)
8/31/2006	$	22.93	$	0.31		$	4.16		$	4.47		$	(0.08	)	$	(0.81	)	$	—	$	(0.89	)
8/31/2005	$	16.80	$	0.14		$	6.04		$	6.18		$	(0.06	)	$	—		$	—	$	(0.06	)

See Notes to Financial Highlights

179

	Redemption Fees^øø		Net Asset Value, End of Year		Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
Advisor Class
8/31/2009	$	—	$	9.87		(23.05	%)	$	0.5		1.50	%		1.50	%^‡		.13	%		29	%
8/31/2008	$	—	$	14.65		(5.96	%)	$	0.9		1.50	%		1.50	%^‡		(.04	%)		42	%
8/31/2007	$	—	$	17.55		13.82	%	$	1.1		1.50	%		1.50	%^‡		.04	%		20	%
8/31/2006	$	—	$	16.48		6.39	%	$	1.3		1.50	%		1.49	%^‡		(.12	%)		34	%
8/31/2005	$	—	$	15.49		20.73	%	$	0.6		1.50	%		1.50	%^‡		(.28	%)		20	%
Institutional Class
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	11.16		7.41	%**	$	0.1		.75	%*		.75	%^‡*		1.12	%*		29	%^Ø
Class A
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	8.75		7.36	%**	$	0.5		1.11	%*		1.11	%^‡*		.41	%*		29	%^Ø
Class C
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	9.86		7.06	%**	$	0.1		1.86	%*		1.86	%^‡*		.01	%*		29	%^Ø
Class R3
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	9.88		7.27	%**	$	0.1		1.36	%*		1.36	%^‡*		.51	%*		29	%^Ø
International Fund
Investor Class
8/31/2009	$	0.00	$	13.58		(20.42	%)	$	208.8		1.40	%		1.40	%^‡		1.38	%		81	%
8/31/2008	$	0.00	$	17.64		(17.11	%)	$	405.2		1.26	%		1.25	%^‡		1.80	%		53	%
8/31/2007	$	0.00	$	25.68		17.44	%	$	690.6		1.25	%		1.23	%^‡		1.02	%		42	%
8/31/2006	$	0.01	$	24.23		20.07	%	$	921.4		1.26	%		1.25	%^‡§		1.19	%		48	%
8/31/2005	$	0.01	$	21.01		37.08	%	$	455.5		1.40	%		1.39	%^‡		.82	%		38	%
Trust Class
8/31/2009	$	0.00	$	15.03		(20.48	%)	$	201.5		1.49	%		1.49	%^‡		1.29	%		81	%
8/31/2008	$	0.00	$	19.43		(17.21	%)	$	417.7		1.36	%		1.35	%^‡		1.64	%		53	%
8/31/2007	$	0.00	$	28.18		17.34	%	$	824.3		1.34	%		1.33	%^‡			%		42	%
8/31/2006	$	0.01	$	26.52		20.02	%	$	870.9		1.33	%		1.32	%^‡§		1.21	%		48	%
8/31/2005	$	0.01	$	22.93		36.89	%	$	233.2		1.50	%		1.48	%^‡		.70	%		38	%

180

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@		Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital		Total Distributions
International Institutional Fund
Institutional Class
8/31/2009	$	9.84	$	0.13	$	(2.17	)	$	(2.04	)	$	(0.27	)	$	—		$	—	$	(0.27	)
8/31/2008	$	14.44	$	0.28	$	(2.42	)	$	(2.14	)	$	(0.50	)	$	(1.96	)	$	—	$	(2.46	)
8/31/2007	$	12.69	$	0.20	$	2.04		$	2.24		$	(0.18	)	$	(0.31	)	$	—	$	(0.49	)
8/31/2006	$	10.95	$	0.22	$	1.60		$	1.82		$	(0.03	)	$	(0.05	)	$	—	$	(0.08	)
Period from 6/17/2005^{^} to 8/31/2005	$	10.00	$	0.00	$	0.95		$	0.95		$	—		$	—		$	—	$	—
International Large Cap Fund
Trust Class
8/31/2009	$	10.12	$	0.11	$	(2.08	)	$	(1.97	)	$	(0.22	)	$	—		$	—	$	(0.22	)
8/31/2008	$	12.09	$	0.24	$	(1.63	)	$	(1.39	)	$	(0.18	)	$	(0.40	)	$	—	$	(0.58	)
8/31/2007	$	10.19	$	0.17	$	1.79		$	1.96		$	(0.05	)	$	(0.01	)	$	—	$	(0.06	)
Period from 8/1/2006^{^} t0 8/31/2006	$	10.00	$	0.01	$	0.18		$	0.19		$	—		$	—		$	—	$	—
Institutional Class
8/31/2009	$	10.15	$	0.14	$	(2.09	)	$	(1.95	)	$	(0.27	)	$	—		$	—	$	(0.27	)
8/31/2008	$	12.11	$	0.29	$	(1.63	)	$	(1.34	)	$	(0.22	)	$	(0.40	)	$	—	$	(0.62	)
Period from 10/6/2006^{^} to 8/31/2007	$	10.19	$	0.19	$	1.80		$	1.99		$	(0.06	)	$	(0.01	)	$	—	$	(0.07	)
Class A
8/31/2009	$	10.12	$	0.11	$	(2.08	)	$	(1.97	)	$	(0.25	)	$	—		$	—	$	(0.25	)
Period from 12/20/2007^{^} to 8/31/2008	$	11.30	$	0.08	$	(1.26	)	$	(1.18	)	$	—		$	—		$	—	$	—
Class C
8/31/2009	$	10.06	$	0.08	$	(2.08	)	$	(2.00	)	$	(0.19	)	$	—		$	—	$	(0.19	)
Period from 12/20/2007^{^} to 8/31/2008	$	11.30	$	0.16	$	(1.40	)	$	(1.24	)	$	—		$	—		$	—	$	—
Class R3
Period from 5/27/2009^{^} to 8/31/2009	$	7.10	$	0.03	$	0.77		$	0.80		$	—		$	—		$	—	$	—

See Notes to Financial Highlights

181

	Redemption Fees^øø		Net Asset Value, End of Year		Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
International Institutional Fund
Institutional Class
8/31/2009	$	0.00	$	7.53		(19.92	%)	$	223.8		.81	%		.81	%^{^^}		2.01	%		98	%
8/31/2008	$	0.00	$	9.84		(16.90	%)	$	411.5		.81	%		.80	%^{^^}		2.32	%		58	%
8/31/2007	$	0.00	$	14.44		17.97	%	$	574.3		.83	%		.83	%^{^^}		1.44	%		59	%
8/31/2006	$	0.00	$	12.69		16.68	%	$	627.6		.85	%		.85	%^{^^}		1.78	%		45	%
Period from 6/17/2005^{^} to 8/31/2005	$	—	$	10.95		9.50	%**	$	42.2		.85	%*		.85	%^{^^}*		.14	%*		14	%**
International Large Cap Fund
Trust Class
8/31/2009	$	0.00	$	7.93		(18.84	%)	$	28.9		1.27	%		1.27	%^‡		1.62	%		90	%
8/31/2008	$	0.00	$	10.12		(11.95	%)	$	51.5		1.28	%		1.27	%^‡		2.07	%		97	%
8/31/2007	$	0.00	$	12.09		19.24	%	$	54.2		1.25	%		1.24	%^‡		1.42	%		23	%
Period from 8/1/2006^{^} t0 8/31/2006	$	—	$	10.19		1.90	%**	$	6.2		1.25	%*		1.25	%^‡*		1.32	%*		6	%**
Institutional Class
8/31/2009	$	0.00	$	7.93		(18.57	%)	$	67.7		.92	%		.92	%^‡		2.00	%		90	%
8/31/2008	$	0.00	$	10.15		(11.60	%)	$	114.4		.93	%		.92	%^‡		2.59	%		97	%
Period from 10/6/2006^{^} to 8/31/2007	$	0.00	$	12.11		19.56	%**	$	111.0		.90	%*		.89	%^‡*		1.80	%*		23	%^Ø
Class A
8/31/2009	$	0.00	$	7.90		(18.83	%)	$	4.0		1.29	%		1.29	%^‡		1.63	%		90	%
Period from 12/20/2007^{^} to 8/31/2008	$	0.00	$	10.12		(10.44	%)**	$	2.2		1.34	%*		1.34	%^‡*		1.15	%*		97	%^Ø
Class C
8/31/2009	$	0.00	$	7.87		(19.34	%)	$	0.4		2.01	%		2.01	%^‡		1.23	%		90	%
Period from 12/20/2007^{^} to 8/31/2008	$	0.00	$	10.06		(10.97	%)**	$	0.1		2.04	%*		2.03	%^‡*		2.05	%*		97	%^Ø
Class R3
Period from 5/27/2009^{^} to 8/31/2009	$	0.00	$	7.90		11.27	%**	$	0.1		1.52	%*		1.52	%^‡*		1.31	%*		90	%^Ø

182

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains		Tax Return of Capital		Total Distributions
Large Cap Disciplined Growth Fund
Investor Class
8/31/2009	$	7.39	$	0.02		$	(1.37	)	$	(1.35	)	$	—		$	—	$	—	$	—
8/31/2008	$	7.45	$	(0.00	)	$	(0.06	)	$	(0.06	)	$	—		$	—	$	—	$	—
8/31/2007	$	6.52	$	(0.00	)	$	0.93		$	0.93		$	—		$	—	$	—	$	—
8/31/2006	$	6.22	$	(0.02	)	$	0.33		$	0.31		$	(0.01	)	$	—	$	—	$	(0.01	)
8/31/2005	$	5.54	$	0.01		$	0.67		$	0.68		$	—		$	—	$	—	$	—
Institutional Class
Period from 4/6/2009^{^} to 8/31/2009	$	5.28	$	0.02		$	0.75		$	0.77		$	—		$	—	$	—	$	—
Class A
Period from 4/6/2009^{^} to 8/31/2009	$	5.28	$	0.01		$	0.75		$	0.76		$	—		$	—	$	—	$	—
Class C
Period from 4/6/2009^{^} to 8/31/2009	$	5.28	$	(0.01	)	$	0.75		$	0.74		$	—		$	—	$	—	$	—
Class R3
Period from 5/27/2009^{^} to 8/31/2009	$	5.47	$	0.00		$	0.56		$	0.56		$	—		$	—	$	—	$	—
Mid Cap Growth Fund
Investor Class
8/31/2009	$	9.53	$	(0.02	)	$	(2.08	)	$	(2.10	)	$	—		$	—	$	—	$	—
8/31/2008	$	10.54	$	(0.05	)	$	(0.96	)	$	(1.01	)	$	—		$	—	$	—	$	—
8/31/2007	$	8.17	$	(0.03	)	$	2.40		$	2.37		$	—		$	—	$	—	$	—
8/31/2006	$	7.45	$	(0.03	)	$	0.75		$	0.72		$	—		$	—	$	—	$	—
8/31/2005	$	5.86	$	(0.04	)	$	1.63		$	1.59		$	—		$	—	$	—	$	—
Trust Class
8/31/2009	$	14.54	$	(0.04	)	$	(3.19	)	$	(3.23	)	$	—		$	—	$	—	$	—
8/31/2008	$	16.11	$	(0.11	)	$	(1.46	)	$	(1.57	)	$	—		$	—	$	—	$	—
8/31/2007	$	12.53	$	(0.09	)	$	3.67		$	3.58		$	—		$	—	$	—	$	—
8/31/2006	$	11.46	$	(0.08	)	$	1.15		$	1.07		$	—		$	—	$	—	$	—
8/31/2005	$	9.04	$	(0.09	)	$	2.51		$	2.42		$	—		$	—	$	—	$	—

See Notes to Financial Highlights

183

	Redemption Fees^øø		Net Asset Value, End of Year		Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
Large Cap Disciplined Growth Fund
Investor Class
8/31/2009	$	—	$	6.04		(18.27	%)	$	11.7		1.34	%		1.34	%^‡		.40	%		132	%^###
8/31/2008	$	—	$	7.39		(.81	%)	$	11.9		1.51	%		1.50	%^‡		(.00	%)		167	%
8/31/2007	$	—	$	7.45		14.26	%	$	10.0		1.51	%		1.50	%^‡		(.02	%)		46	%
8/31/2006	$	—	$	6.52		4.92	%	$	10.4		1.51	%		1.49	%^‡		(.27	%)		64	%
8/31/2005	$	—	$	6.22		12.27	%	$	11.2		1.50	%		1.47	%^‡		.09	%		107	%
Institutional Class
Period from 4/6/2009^{^} to 8/31/2009	$	—	$	6.05		14.58	%**	$	23.3		.75	%*		.75	%^‡*		.86	%*		132	%^Ø###
Class A
Period from 4/6/2009^{^} to 8/31/2009	$	—	$	6.04		14.39	%**	$	63.7		1.11	%*		1.11	%^‡*		.47	%*		132	%^Ø###
Class C
Period from 4/6/2009^{^} to 8/31/2009	$	—	$	6.02		14.02	%**	$	25.9		1.86	%*		1.86	%^‡*		(.28	%)*		132	%^Ø###
Class R3
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	6.03		10.24	%**	$	0.1		1.36	%*		1.36	%^‡*		.20	%*		132	%^Ø###
Mid Cap Growth Fund
Investor Class
8/31/2009	$	—	$	7.43		(22.04	%)	$	280.9		1.11	%		1.11	%^‡		(.28	%)		69	%
8/31/2008	$	—	$	9.53		(9.58	%)	$	396.7		1.01	%		1.01	%^‡		(.49	%)		70	%
8/31/2007	$	—	$	10.54		29.01	%	$	446.3		1.03	%		1.02	%^‡		(.33	%)		49	%
8/31/2006	$	—	$	8.17		9.66	%	$	356.7		1.05	%		1.04	%^‡		(.36	%)		45	%
8/31/2005	$	—	$	7.45		27.13	%	$	342.2		1.07	%		1.06	%^‡		(.65	%)		65	%
Trust Class
8/31/2009	$	—	$	11.31		(22.21	%)	$	16.4		1.26	%		1.26	%^‡		(.37	%)		69	%
8/31/2008	$	—	$	14.54		(9.75	%)	$	11.7		1.25	%		1.25	%^‡		(.73	%)		70	%
8/31/2007	$	—	$	16.11		28.57	%	$	13.4		1.31	%		1.30	%^‡		(.63	%)		49	%
8/31/2006	$	—	$	12.53		9.34	%	$	6.6		1.33	%		1.32	%^‡		(.65	%)		45	%
8/31/2005	$	—	$	11.46		26.77	%	$	7.6		1.27	%		1.26	%^‡		(.85	%)		65	%

184

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital		Total Distributions
Advisor Class
8/31/2009	$	14.98	$	(0.06	)	$	(3.29	)	$	(3.35	)	$	—		$	—		$	—	$	—
8/31/2008	$	16.64	$	(0.16	)	$	(1.50	)	$	(1.66	)	$	—		$	—		$	—	$	—
8/31/2007	$	12.96	$	(0.12	)	$	3.80		$	3.68		$	—		$	—		$	—	$	—
8/31/2006	$	11.88	$	(0.10	)	$	1.18		$	1.08		$	—		$	—		$	—	$	—
8/31/2005	$	9.40	$	(0.11	)	$	2.59		$	2.48		$	—		$	—		$	—	$	—
Institutional Class
8/31/2009	$	9.57	$	0.01		$	(2.08	)	$	(2.07	)	$	—		$	—		$	—	$	—
8/31/2008	$	10.55	$	(0.02	)	$	(0.96	)	$	(0.98	)	$	—		$	—		$	—	$	—
Period from 4/29/2007^{^} to 8/31/2007	$	9.97	$	(0.01	)	$	0.59		$	0.58		$	—		$	—		$	—	$	—
Class A
Period from 5/27/2009^{^} to 8/31/2009	$	10.34	$	(0.00	)	$	0.97		$	0.97		$	—		$	—		$	—	$	—
Class C
Period from 5/27/2009^{^} to 8/31/2009	$	10.64	$	(0.02	)	$	1.00		$	0.98		$	—		$	—		$	—	$	—
Class R3
Period from 5/27/2009^{^} to 8/31/2009	$	10.64	$	(0.00	)	$	0.99		$	0.99		$	—		$	—		$	—	$	—
Partners Fund
Investor Class
8/31/2009	$	28.90	$	0.15		$	(7.04	)	$	(6.89	)	$	(0.09	)	$	(0.25	)	$	—	$	(0.34	)
8/31/2008	$	32.10	$	0.13		$	(2.01	)	$	(1.88	)	$	(0.12	)	$	(1.20	)	$	—	$	(1.32	)
8/31/2007	$	28.71	$	0.14		$	3.96		$	4.10		$	(0.20	)	$	(0.51	)	$	—	$	(0.71	)
8/31/2006	$	28.62	$	0.24		$	1.43		$	1.67		$	(0.27	)	$	(1.31	)	$	—	$	(1.58	)
8/31/2005	$	21.41	$	0.21		$	7.17		$	7.38		$	(0.17	)	$	—		$	—	$	(0.17	)
Trust Class
8/31/2009	$	22.25	$	0.09		$	(5.42	)	$	(5.33	)	$	(0.06	)	$	(0.19	)	$	—	$	(0.25	)
8/31/2008	$	24.75	$	0.06		$	(1.56	)	$	(1.50	)	$	(0.08	)	$	(0.92	)	$	—	$	(1.00	)
8/31/2007	$	22.14	$	0.06		$	3.05		$	3.11		$	(0.11	)	$	(0.39	)	$	—	$	(0.50	)
8/31/2006	$	22.02	$	0.15		$	1.11		$	1.26		$	(0.13	)	$	(1.01	)	$	—	$	(1.14	)
8/31/2005	$	16.48	$	0.13		$	5.51		$	5.64		$	(0.10	)	$	—		$	—	$	(0.10	)

See Notes to Financial Highlights

185

	Redemption Fees^øø		Net Asset Value, End of Year		Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
Advisor Class
8/31/2009	$	—	$	11.63		(22.36	%)	$	6.9		1.50	%		1.50	%^‡		(.57	%)		69	%
8/31/2008	$	—	$	14.98		(9.98	%)	$	3.2		1.50	%		1.49	%^‡		(.98	%)		70	%
8/31/2007	$	—	$	16.64		28.40	%	$	1.5		1.50	%		1.49	%^‡		(.80	%)		49	%
8/31/2006	$	—	$	12.96		9.09	%	$	0.8		1.50	%		1.49	%^‡		(.80	%)		45	%
8/31/2005	$	—	$	11.88		26.38	%	$	1.1		1.50	%		1.49	%^‡		(1.08	%)		65	%
Institutional Class
8/31/2009	$	—	$	7.50		(21.63	%)	$	146.6		.75	%		.75	%^‡		.12	%		69	%
8/31/2008	$	—	$	9.57		(9.29	%)	$	51.1		.75	%		.75	%^‡		(.22	%)		70	%
Period from 4/29/2007^{^} to 8/31/2007	$	—	$	10.55		5.82	%**	$	18.1		.75	%*		.74	%^‡*		(.25	%)*		49	%^Ø
Class A
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	11.31		9.38	%**	$	0.1		1.11	%*		1.11	%^‡*		(.01	%)*		69	%^Ø
Class C
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	11.62		9.21	%**	$	0.1		1.86	%*		1.86	%^‡*		(.64	%)*		69	%^Ø
Class R3
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	11.63		9.30	%**	$	0.1		1.36	%*		1.36	%^‡*		(.14	%)*		69	%^Ø
Partners Fund
Investor Class
8/31/2009	$	—	$	21.67		(23.27	%)	$	1,337.2		.89	%		.89	%^‡		.85	%		35	%
8/31/2008	$	—	$	28.90		(6.22	%)	$	2,193.1		.81	%		.80	%^‡		.42	%		41	%
8/31/2007	$	—	$	32.10		14.33	%	$	2,267.6		.81	%		.80	%^‡		.44	%		47	%
8/31/2006	$	—	$	28.71		5.87	%	$	2,106.7		.82	%		.82	%^‡		.84	%		33	%
8/31/2005	$	—	$	28.62		34.59	%	$	1,826.9		.86	%		.85	%^‡		.83	%		61	%
Trust Class
8/31/2009	$	—	$	16.67		(23.38	%)	$	622.6		1.04	%		1.04	%^‡		.70	%		35	%
8/31/2008	$	—	$	22.25		(6.40	%)	$	1,004.0		.99	%		.99	%^‡		.23	%		41	%
8/31/2007	$	—	$	24.75		14.09	%	$	1,171.5		1.00	%		.99	%^‡		.26	%		47	%
8/31/2006	$	—	$	22.14		5.70	%	$	970.5		1.00	%		.99	%^‡		.66	%		33	%
8/31/2005	$	—	$	22.02		34.34	%	$	532.8		1.03	%		1.02	%^‡		.66	%		61	%

186

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@		Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			.96Return of Capital			Total Distributions
Advisor Class
8/31/2009	$	19.27	$	0.06	$	(4.69	)	$	(4.63	)	$	(0.05	)	$	(0.17	)	$	—		$	(0.22	)
8/31/2008	$	21.45	$	0.02	$	(1.35	)	$	(1.33	)	$	(0.05	)	$	(0.80	)	$	—		$	(0.85	)
8/31/2007	$	19.18	$	0.02	$	2.65		$	2.67		$	(0.06	)	$	(0.34	)	$	—		$	(0.40	)
8/31/2006	$	19.01	$	0.10	$	0.94		$	1.04		$	(0.01	)	$	(0.86	)	$	—		$	(0.87	)
8/31/2005	$	14.23	$	0.07	$	4.77		$	4.84		$	(0.06	)	$	—		$	—		$	(0.06	)
Institutional Class
8/31/2009	$	29.06	$	0.18	$	(7.08	)	$	(6.90	)	$	(0.12	)	$	(0.25	)	$	—		$	(0.37	)
8/31/2008	$	32.28	$	0.19	$	(2.04	)	$	(1.85	)	$	(0.17	)	$	(1.20	)	$	—		$	(1.37	)
8/31/2007	$	28.72	$	0.19	$	3.96		$	4.15		$	(0.08	)	$	(0.51	)	$	—		$	(0.59	)
Period from 6/7/2006^{^} to 8/31/2006	$	28.12	$	0.19	$	0.41		$	0.60		$	—		$	—		$	—		$	—
Real Estate Fund
Trust Class
8/31/2009	$	10.65	$	0.24	$	(2.84	)	$	(2.60	)	$	(0.24	)	$	—		$	(0.07	)	$	(0.31	)
8/31/2008	$	14.21	$	0.22	$	(1.04	)	$	(0.82	)	$	(0.19	)	$	(2.39	)	$	(0.16	)	$	(2.74	)
8/31/2007	$	15.69	$	0.17	$	(0.09	)	$	0.08		$	(0.19	)	$	(1.37	)	$	—		$	(1.56	)
8/31/2006	$	14.73	$	0.20	$	3.39		$	3.59		$	(0.27	)	$	(2.36	)	$	—		$	(2.63	)
8/31/2005	$	14.13	$	0.19	$	3.28		$	3.47		$	(0.23	)	$	(2.64	)	$	—		$	(2.87	)
Institutional Class
8/31/2009	$	10.66	$	0.24	$	(2.82	)	$	(2.58	)	$	(0.23	)	$	—		$	(0.09	)	$	(0.32	)
Period from 6/4/2008^{^} to 8/31/2008	$	10.88	$	0.07	$	(0.22	)	$	(0.15	)	$	(0.04	)	$	—		$	(0.03	)	$	(0.07	)
Regency Fund
Investor Class
8/31/2009	$	15.02	$	0.07	$	(3.47	)	$	(3.40	)	$	(0.00	)	$	(0.55	)	$	—		$	(0.55	)
8/31/2008	$	18.65	$	0.07	$	(1.75	)	$	(1.68	)	$	(0.14	)	$	(1.81	)	$	—		$	(1.95	)
8/31/2007	$	16.52	$	0.13	$	2.19		$	2.32		$	(0.10	)	$	(0.09	)	$	—		$	(0.19	)
8/31/2006	$	17.37	$	0.13	$	0.39		$	0.52		$	(0.06	)	$	(1.31	)	$	—		$	(1.37	)
8/31/2005	$	14.44	$	0.01	$	4.08	^§§	$	4.09		$	—		$	(1.16	)	$	—		$	(1.16	)

See Notes to Financial Highlights

187

	Redemption Fees^øø		Net Asset Value, End of Year		Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
Advisor Class
8/31/2009	$	—	$	14.42		(23.47	%)	$	379.7		1.20	%		1.20	%^‡		.54	%		35	%
8/31/2008	$	—	$	19.27		(6.56	%)	$	559.0		1.15	%		1.14	%^‡		.08	%		41	%
8/31/2007	$	—	$	21.45		13.94	%	$	599.0		1.15	%		1.14	%^‡		.11	%		47	%
8/31/2006	$	—	$	19.18		5.56	%	$	605.0		1.15	%		1.14	%^‡		.52	%		33	%
8/31/2005	$	—	$	19.01		34.04	%	$	85.6		1.25	%		1.23	%^‡		.40	%		61	%
Institutional Class
8/31/2009	$	—	$	21.79		(23.10	%)	$	161.3		.70	%		.70	%^‡		1.01	%		35	%
8/31/2008	$	—	$	29.06		(6.08	%)	$	168.1		.66	%		.65	%^‡		.59	%		41	%
8/31/2007	$	—	$	32.28		14.49	%	$	133.5		.66	%		.65	%^‡§		.59	%		47	%
Period from 6/7/2006^{^} to 8/31/2006	$	—	$	28.72		2.13	%**	$	130.5		.70	%*		.69	%^‡*		2.85	%*		33	%^Ø
Real Estate Fund
Trust Class
8/31/2009	$	0.00	$	7.74		(23.69	%)	$	63.0		.99	%		.99	%^‡		3.61	%		181	%
8/31/2008	$	0.00	$	10.65		(5.32	%)	$	53.0		1.00	%		.97	%^‡		1.93	%		187	%
8/31/2007	$	0.00	$	14.21		(.43	%)	$	110.4		.99	%		.97	%^‡		1.06	%		99	%
8/31/2006	$	0.00	$	15.69		28.50	%	$	86.7		1.11	%		1.09	%^‡		1.39	%		97	%
8/31/2005	$	0.00	$	14.73		27.06	%	$	46.8		1.50	%		1.48	%^‡		1.40	%		129	%
Institutional Class
8/31/2009	$	0.00	$	7.76		(23.46	%)	$	3.3		.85	%		.85	%^‡		3.47	%		181	%
Period from 6/4/2008^{^} to 8/31/2008	$	0.00	$	10.66		(1.31	%)**	$	1.7		.87	%*		.86	%^‡*		2.76	%*		187	%^Ø
Regency Fund
Investor Class
8/31/2009	$	—	$	11.07		(21.04	%)	$	43.8		1.36	%		1.36	%^‡		.78	%		51	%
8/31/2008	$	—	$	15.02		(9.93	%)	$	79.1		1.13	%		1.11	%^‡		.43	%		60	%
8/31/2007	$	—	$	18.65		14.10	%	$	99.9		1.09	%		1.08	%^‡		.72	%		80	%
8/31/2006	$	—	$	16.52		2.94	%	$	111.1		1.12	%		1.11	%^‡		.75	%		52	%
8/31/2005	$	—	$	17.37		29.26	%	$	107.9		1.21	%		1.20	%^‡§		.09	%		91	%

188

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital			Total Distributions
Trust Class
8/31/2009	$	13.09	$	0.07		$	(3.02	)	$	(2.95	)	$	(0.00	)	$	(0.48	)	$	—		$	(0.48	)
8/31/2008	$	16.26	$	0.04		$	(1.52	)	$	(1.48	)	$	(0.11	)	$	(1.58	)	$	—		$	(1.69	)
8/31/2007	$	14.41	$	0.08		$	1.91		$	1.99		$	(0.06	)	$	(0.08	)	$	—		$	(0.14	)
8/31/2006	$	15.13	$	0.09		$	0.34		$	0.43		$	(0.02	)	$	(1.13	)	$	—		$	(1.15	)
8/31/2005	$	12.61	$	(0.01	)	$	3.56	^§§	$	3.55		$	—		$	(1.03	)	$	—		$	(1.03	)
Select Equities Fund
Institutional Class
8/31/2009	$	9.20	$	0.08		$	(1.19	)	$	(1.11	)	$	(0.03	)	$	—		$	—		$	(0.03	)
Period from 12/20/2007^{^} to 8/31/2008	$	10.00	$	0.08		$	(0.88	)	$	(0.80	)	$	—		$	—		$	—		$	—
Class A
8/31/2009	$	9.18	$	0.04		$	(1.14	)	$	(1.10	)	$	(0.03	)	$	—		$	—		$	(0.03	)
Period from 12/20/2007^{^} to 8/31/2008	$	10.00	$	0.04		$	(0.86	)	$	(0.82	)	$	—		$	—		$	—		$	—
Class C
8/31/2009	$	9.12	$	(0.02	)	$	(1.13	)	$	(1.15	)	$	(0.03	)	$	—		$	—		$	(0.03	)
Period from 12/20/2007^{^} to 8/31/2008	$	10.00	$	(0.01	)	$	(0.87	)	$	(0.88	)	$	—		$	—		$	—		$	—
Small and Mid Cap Growth Fund
Trust Class
8/31/2009	$	10.55	$	(0.05	)	$	(2.40	)	$	(2.45	)	$	—		$	—		$	(0.03	)	$	(0.03	)
8/31/2008	$	12.60	$	(0.08	)	$	(1.11	)	$	(1.19	)	$	—		$	(0.86	)	$	—		$	(0.86	)
Period from 9/5/2006^{^} to 8/31/2007	$	10.00	$	(0.04	)	$	2.70		$	2.66		$	(0.06	)	$	—		$	—		$	(0.06	)
Small Cap Growth Fund
Investor Class
8/31/2009	$	17.92	$	(0.11	)	$	(4.66	)	$	(4.77	)	$	—		$	—		$	—		$	—
8/31/2008	$	19.15	$	(0.18	)	$	(1.05	)	$	(1.23	)	$	—		$	—		$	—		$	—
8/31/2007	$	15.01	$	(0.18	)	$	4.32		$	4.14		$	—		$	—		$	—		$	—
8/31/2006	$	14.19	$	(0.19	)	$	1.01		$	0.82		$	—		$	—		$	—		$	—
8/31/2005	$	10.71	$	(0.19	)	$	3.67		$	3.48		$	—		$	—		$	—		$	—

��

See Notes to Financial Highlights

189

	Redemption Fees^øø		Net Asset Value, End of Year		Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
Trust Class
8/31/2009	$	—	$	9.66		(20.96	%)	$	26.9		1.25	%		1.25	%^‡		.89	%		51	%
8/31/2008	$	—	$	13.09		(10.03	%)	$	52.8		1.26	%		1.24	%^‡		.30	%		60	%
8/31/2007	$	—	$	16.26		13.84	%	$	55.6		1.25	%		1.24	%^‡		.51	%		80	%
8/31/2006	$	—	$	14.41		2.81	%	$	64.2		1.25	%		1.24	%^‡		.61	%		52	%
8/31/2005	$	—	$	15.13		29.13	%	$	36.1		1.38	%		1.37	%^‡		(.10	%)		91	%
Select Equities Fund
Institutional Class
8/31/2009	$	—	$	8.06		(12.03	%)	$	6.5		.75	%		.75	%^‡		1.04	%		93	%
Period from 12/20/2007^{^} to 8/31/2008	$	—	$	9.20		(8.00	%)**	$	2.3		.76	%*		.76	%^‡*		1.17	%*		53	%**
Class A
8/31/2009	$	—	$	8.05		(11.95	%)	$	38.3		1.20	%		1.20	%^‡		.52	%		93	%
Period from 12/20/2007^{^} to 8/31/2008	$	—	$	9.18		(8.20	%)**	$	4.9		1.24	%*		1.24	%^‡*		.63	%*		53	%**
Class C
8/31/2009	$	—	$	7.94		(12.58	%)	$	7.4		1.95	%		1.95	%^‡		(.22	%)		93	%
Period from 12/20/2007^{^} to 8/31/2008	$	—	$	9.12		(8.80	%)**	$	0.8		1.99	%*		1.98	%^‡*		(.08	%)*		53	%**
Small and Mid Cap Growth Fund
Trust Class
8/31/2009	$	—	$	8.07		(23.21	%)	$	6.1		1.11	%		1.11	%^‡		(.62	%)		173	%
8/31/2008	$	—	$	10.55		(10.05	%)	$	7.7		1.11	%		1.09	%^‡		(.67	%)		135	%
Period from 9/5/2006^{^} to 8/31/2007	$	—	$	12.60		26.65	%**	$	8.5		1.10	%*		1.08	%^‡*		(.34	%)*		110	%**
Small Cap Growth Fund
Investor Class
8/31/2009	$	—	$	13.15		(26.62	%)	$	144.1		1.30	%		1.30	%^‡		(.89	%)		292	%
8/31/2008	$	—	$	17.92		(6.42	%)	$	239.9		1.31	%		1.29	%^‡		(.93	%)		185	%
8/31/2007	$	—	$	19.15		27.58	%	$	58.1		1.30	%		1.27	%^‡		(1.01	%)		153	%
8/31/2006	$	—	$	15.01		5.78	%	$	46.9		1.60	%		1.57	%^‡		(1.21	%)		142	%
8/31/2005	$	—	$	14.19		32.49	%	$	45.0		1.75	%		1.71	%^‡		(1.47	%)		204	%

190

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital		Total Distributions
Trust Class
8/31/2009	$	19.67	$	(0.14	)	$	(5.10	)	$	(5.24	)	$	—		$	—		$	—	$	—
8/31/2008	$	21.05	$	(0.21	)	$	(1.17	)	$	(1.38	)	$	—		$	—		$	—	$	—
8/31/2007	$	16.52	$	(0.21	)	$	4.74		$	4.53		$	—		$	—		$	—	$	—
8/31/2006	$	15.62	$	(0.22	)	$	1.12		$	0.90		$	—		$	—		$	—	$	—
8/31/2005	$	11.78	$	(0.21	)	$	4.05		$	3.84		$	—		$	—		$	—	$	—
Advisor Class
8/31/2009	$	13.13	$	(0.11	)	$	(3.41	)	$	(3.52	)	$	—		$	—		$	—	$	—
8/31/2008	$	14.08	$	(0.17	)	$	(0.78	)	$	(0.95	)	$	—		$	—		$	—	$	—
8/31/2007	$	11.07	$	(0.17	)	$	3.18		$	3.01		$	—		$	—		$	—	$	—
8/31/2006	$	10.49	$	(0.16	)	$	0.74		$	0.58		$	—		$	—		$	—	$	—
8/31/2005	$	7.92	$	(0.15	)	$	2.72		$	2.57		$	—		$	—		$	—	$	—
Institutional Class
8/31/2009	$	17.95	$	(0.06	)	$	(4.66	)	$	(4.72	)	$	—		$	—		$	—	$	—
Period from 4/1/2008^{^} to 8/31/2008	$	17.64	$	(0.04	)	$	0.35		$	0.31		$	—		$	—		$	—	$	—
Class A
Period from 5/27/2009^{^} to 8/31/2009	$	12.98	$	(0.03	)	$	1.48		$	1.45		$	—		$	—		$	—	$	—
Class C
Period from 5/27/2009^{^} to 8/31/2009	$	8.65	$	(0.04	)	$	0.99		$	0.95		$	—		$	—		$	—	$	—
Class R3
Period from 5/27/2009^{^} to 8/31/2009	$	8.65	$	(0.02	)	$	0.98		$	0.96		$	—		$	—		$	—	$	—
Socially Responsive Fund
Investor Class
8/31/2009	$	24.51	$	0.09		$	(5.52	)	$	(5.43	)	$	(0.08	)	$	(0.26	)	$	—	$	(0.34	)
8/31/2008	$	27.20	$	0.15		$	(1.85	)	$	(1.70	)	$	(0.13	)	$	(0.86	)	$	—	$	(0.99	)
8/31/2007	$	23.88	$	0.18		$	3.42		$	3.60		$	(0.04	)	$	(0.24	)	$	—	$	(0.28	)
8/31/2006	$	22.91	$	0.09		$	1.73		$	1.82		$	(0.14	)	$	(0.71	)	$	—	$	(0.85	)
8/31/2005	$	19.48	$	0.18		$	3.79		$	3.97		$	(0.03	)	$	(0.51	)	$	—	$	(0.54	)

See Notes to Financial Highlights

191

	Redemption Fees^øø		Net Asset Value, End of Year		Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
Trust Class
8/31/2009	$	—	$	14.43		(26.64	%)	$	35.2		1.40	%		1.40	%^‡		(1.00	%)		292	%
8/31/2008	$	—	$	19.67		(6.56	%)	$	42.3		1.41	%		1.39	%^‡		(1.04	%)		185	%
8/31/2007	$	—	$	21.05		27.42	%	$	8.5		1.40	%		1.38	%^‡		(1.08	%)		153	%
8/31/2006	$	—	$	16.52		5.76	%	$	2.5		1.66	%		1.63	%^‡		(1.26	%)		142	%
8/31/2005	$	—	$	15.62		32.60	%	$	2.7		1.75	%		1.71	%^‡		(1.48	%)		204	%
Advisor Class
8/31/2009	$	—	$	9.61		(26.81	%)	$	11.7		1.60	%		1.60	%^‡		(1.19	%)		292	%
8/31/2008	$	—	$	13.13		(6.75	%)	$	13.6		1.61	%		1.59	%^‡		(1.23	%)		185	%
8/31/2007	$	—	$	14.08		27.19	%	$	4.3		1.60	%		1.57	%^‡		(1.30	%)		153	%
8/31/2006	$	—	$	11.07		5.53	%	$	2.2		1.77	%		1.74	%^‡		(1.36	%)		142	%
8/31/2005	$	—	$	10.49		32.45	%	$	1.0		1.90	%		1.86	%^‡		(1.62	%)		204	%
Institutional Class
8/31/2009	$	—	$	13.23		(26.30	%)	$	7.5		.90	%		.90	%^‡		(.48	%)		292	%
Period from 4/1/2008^{^} to 8/31/2008	$	—	$	17.95		1.76	%**	$	4.3		.91	%*		.90	%^‡*		(.55	%)*		185	%^Ø
Class A
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	14.43		11.17	%**	$	0.1		1.26	%*		1.26	%^‡*		(.76	%)*		292	%^Ø
Class C
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	9.60		10.98	%**	$	0.1		2.01	%*		2.01	%^‡*		(1.47	%)*		292	%^Ø
Class R3
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	9.61		11.10	%**	$	0.1		1.52	%*		1.52	%^‡*		(.97	%)*		292	%^Ø
Socially Responsive Fund
Investor Class
8/31/2009	$	—	$	18.74		(21.83	%)	$	597.1		.93	%		.93	%		.51	%		36	%
8/31/2008	$	—	$	24.51		(6.49	%)	$	804.0		.90	%		.89	%		.57	%		35	%
8/31/2007	$	—	$	27.20		15.15	%	$	786.2		.91	%		.90	%		.66	%		16	%
8/31/2006	$	—	$	23.88		8.08	%	$	487.5		.95	%		.95	%		.39	%		23	%
8/31/2005	$	—	$	22.91		20.57	%	$	330.0		1.02	%		1.01	%		.83	%		21	%

192

Financial Highlights (cont'd)

	Net Asset Value, Beginning of Year		Net Investment Income (Loss)^@			Net Gains or Losses on Securities (both realized and unrealized)			Total From Investment Operations			Dividends from Net Investment Income			Distributions from Net Realized Capital Gains			Tax Return of Capital		Total Distributions
Trust Class
8/31/2009	$	16.91	$	0.04		$	(3.82	)	$	(3.78	)	$	(0.07	)	$	(0.18	)	$	—	$	(0.25	)
8/31/2008	$	18.81	$	0.07		$	(1.28	)	$	(1.21	)	$	(0.10	)	$	(0.59	)	$	—	$	(0.69	)
8/31/2007	$	16.53	$	0.08		$	2.38		$	2.46		$	(0.01	)	$	(0.17	)	$	—	$	(0.18	)
8/31/2006	$	15.84	$	0.03		$	1.20		$	1.23		$	(0.06	)	$	(0.48	)	$	—	$	(0.54	)
8/31/2005	$	13.47	$	0.12		$	2.60		$	2.72		$	(0.00	)	$	(0.35	)	$	—	$	(0.35	)
Institutional Class
8/31/2009	$	24.53	$	0.12		$	(5.53	)	$	(5.41	)	$	(0.11	)	$	(0.26	)	$	—	$	(0.37	)
Period from 11/28/2007^{^} to 8/31/2008	$	26.93	$	0.16		$	(1.57	)	$	(1.41	)	$	(0.13	)	$	(0.86	)	$	—	$	(0.99	)
Class A
Period from 5/27/2009^{^} to 8/31/2009	$	12.00	$	0.00		$	0.88		$	0.88		$	—		$	—		$	—	$	—
Class C
Period from 5/27/2009^{^} to 8/31/2009	$	12.00	$	(0.01	)	$	0.87		$	0.86		$	—		$	—		$	—	$	—
Class R3
Period from 5/27/2009^{^} to 8/31/2009	$	12.00	$	0.00		$	0.87		$	0.87		$	—		$	—		$	—	$	—

See Notes to Financial Highlights

193

	Redemption Fees^øø		Net Asset Value, End of Year		Total Return^††			Net Assets, End of Year (in millions)		Ratio of Gross Expenses to Average Net Assets^#			Ratio of Net Expenses to Average Net Assets			Ratio of Net Investment Income/ (Loss) to Average Net Assets			Portfolio Turnover Rate
Trust Class
8/31/2009	$	—	$	12.88		(22.01	%)	$	308.2		1.13	%		1.13	%		.32	%		36	%
8/31/2008	$	—	$	16.91		(6.67	%)	$	361.5		1.09	%		1.08	%		.38	%		35	%
8/31/2007	$	—	$	18.81		14.93	%	$	355.5		1.10	%		1.09	%		.45	%		16	%
8/31/2006	$	—	$	16.53		7.93	%	$	239.2		1.13	%		1.12	%		.21	%		23	%
8/31/2005	$	—	$	15.84		20.36	%	$	140.1		1.17	%		1.17	%		.78	%		21	%
Institutional Class
8/31/2009	$	—	$	18.75		(21.71	%)	$	77.6		.75	%		.75	%^‡		.70	%		36	%
Period from 11/28/2007^{^} to 8/31/2008	$	—	$	24.53		(5.47	%)**	$	71.8		.75	%*		.74	%^‡*		.83	%*		35	%^Ø
Class A
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	12.88		7.33	%**	$	1.1		1.11	%*		1.11	%^‡*		.11	%*		36	%^Ø
Class C
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	12.86		7.17	%**	$	0.1		1.86	%*		1.86	%^‡*		(.40	%)*		36	%^Ø
Class R3
Period from 5/27/2009^{^} to 8/31/2009	$	—	$	12.87		7.25	%**	$	0.1		1.36	%*		1.36	%^‡*		.12	%*		36	%^Ø

194

Notes to Financial Highlights

†† Total return based on per share net asset value reflects the effects of changes in net asset value on the performance of each Fund during each fiscal period. Returns assume dividends and other distributions, if any, were reinvested and do not reflect the effect of sales charges. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. Investment returns and principal may fluctuate and shares when redeemed may be worth more or less than original cost. For each Fund, total return would have been lower if Management had not reimbursed and/or waived certain expenses. Total return would have been higher if Management had not recouped previously reimbursed expenses. For the year ended August 31, 2005, Management reimbursed Partners for losses incurred in connection with the disposition of foreign forward currency contracts, which had no impact on total return. For the year ended August 31, 2009, Management reimbursed Emerging Markets Equity and Socially Responsive for losses incurred in connection with a trade error, which had no impact on total return.

‡‡ On June 9, 2008, Equity Income's Trust Class was converted into the Fund's Institutional Class. The financial information of the Fund's Institutional Class includes the financial information of Trust Class shares. Because the Trust Class had moderately higher expenses, its performance typically would have been slightly lower than the Institutional Class.

††† During the period from November 2, 2006 through June 9, 2008, Equity Income's Trust Class had only one investor, which could have impacted Fund performance. On June 9, 2008, the Fund's Trust Class was converted into the Fund's Institutional Class and the Institutional Class was opened to the public. The total return of the Fund's Institutional Class includes the performance of the former Trust Class.

# The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.

‡ After reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been:

	Year Ended August 31,
	2009			2008			2007			2006			2005
Climate Change Fund Institutional Class		9.85	%		25.07	%⁽¹⁰⁾		—			—			—
Climate Change Fund Class A		9.92	%		16.79	%⁽¹⁰⁾		—			—			—
Climate Change Fund Class C		10.94	%		28.56	%⁽¹⁰⁾		—			—			—
Emerging Markets Equity Fund Institutional Class⁽¹³⁾		14.78	%		—			—			—			—
Emerging Markets Equity Fund Class A⁽¹³⁾		18.97	%		—			—			—			—
Emerging Markets Equity Fund Class C⁽¹³⁾		17.56	%		—			—			—			—
Equity Income Fund Institutional Class		1.32	%		3.63	%⁽¹²⁾		2.91	%⁽⁶⁾		—			—
Equity Income Fund Class A		2.31	%		5.67	%⁽¹²⁾		—			—			—
Equity Income Fund Class C		2.80	%		6.94	%⁽¹²⁾		—			—			—
Focus Fund Investor Class		.99	%		.89	%		.87	%		.87	%		.87	%
Focus Fund Trust Class		1.24	%		1.10	%		1.07	%		1.06	%		1.04	%
Focus Fund Advisor Class		1.53	%		1.33	%		1.28	%		1.26	%		1.23	%
Genesis Fund Investor Class		1.08	%		1.03	%		1.03	%		1.02	%		1.04	%
Genesis Fund Trust Class		1.12	%		1.09	%		1.10	%		1.09	%		1.10	%
Genesis Fund Advisor Class		1.38	%		1.35	%		1.35	%		1.35	%		1.35	%
Genesis Fund Institutional Class		.87	%		.85	%		.85	%		.85	%		.85	%
Guardian Fund Investor Class		.97	%		.89	%		.87	%		.88	%		.90	%
Guardian Fund Trust Class		1.14	%		1.06	%		1.05	%		1.04	%		1.05	%

195

Notes to Financial Highlights (cont'd)

	Year Ended August 31,
	2009			2008			2007			2006			2005
Guardian Fund Advisor Class		5.33	%		3.44	%		2.85	%		3.13	%		1.68	%
Guardian Fund Institutional Class⁽¹⁵⁾		5.16	%		—			—			—			—
Guardian Fund Class A⁽¹⁵⁾		2.24	%		—			—			—			—
Guardian Fund Class C⁽¹⁵⁾		6.27	%		—			—			—			—
Guardian Fund Class R3⁽¹⁵⁾		5.77	%		—			—			—			—
International Fund Investor Class		1.40	%		1.26	%		1.24	%		1.25	%		1.42	%
International Fund Trust Class		1.49	%		1.35	%		1.33	%		1.32	%		1.50	%
International Large Cap Fund Trust Class		1.73	%		1.37	%		1.48	%		37.46	%⁽¹⁾		—
International Large Cap Fund Institutional Class		1.30	%		.97	%		.99	%⁽⁴⁾		—			—
International Large Cap Fund Class A		2.17	%		1.70	%⁽⁷⁾		—			—			—
International Large Cap Fund Class C		3.94	%		4.08	%⁽⁷⁾		—			—			—
International Large Cap Fund Class R3⁽¹⁵⁾		6.18	%		—			—			—			—
Large Cap Disciplined Growth Fund Investor Class		2.50	%		2.53	%		2.44	%		2.51	%		2.35	%
Large Cap Disciplined Growth Fund Institutional Class⁽¹⁴⁾		1.57	%		—			—			—			—
Large Cap Disciplined Growth Fund Class A⁽¹⁴⁾		1.79	%		—			—			—			—
Large Cap Disciplined Growth Fund Class C⁽¹⁴⁾		2.56	%		—			—			—			—
Large Cap Disciplined Growth Fund Class R3⁽¹⁵⁾		6.21	%		—			—			—			—
Mid Cap Growth Fund Investor Class		1.11	%		1.01	%		1.02	%		1.04	%		1.06	%
Mid Cap Growth Fund Trust Class		1.26	%		1.25	%		1.30	%		1.32	%		1.26	%
Mid Cap Growth Fund Advisor Class		1.86	%		2.38	%		3.39	%		2.85	%		2.87	%
Mid Cap Growth Fund Institutional Class		.87	%		.78	%		1.03	%⁽⁵⁾		—			—
Mid Cap Growth Fund Class A⁽¹⁵⁾		4.05	%		—			—			—			—
Mid Cap Growth Fund Class C⁽¹⁵⁾		6.29	%		—			—			—			—
Mid Cap Growth Fund Class R3⁽¹⁵⁾		5.78	%		—			—			—			—
Partners Fund Investor Class		.89	%		.80	%		.80	%		.82	%		.85	%
Partners Fund Trust Class		1.05	%		.99	%		.99	%		.99	%		1.02	%
Partners Fund Advisor Class		1.20	%		1.14	%		1.14	%		1.15	%		1.23	%
Partners Fund Institutional Class		.71	%		.65	%		.65	%		.96	%⁽²⁾		—
Real Estate Fund Trust Class		2.02	%		1.83	%		1.59	%		1.90	%		1.86	%
Real Estate Fund Institutional Class		2.80	%		1.77	%⁽¹¹⁾		—			—			—
Regency Fund Investor Class		1.37	%		1.12	%		1.08	%		1.12	%		1.20	%
Regency Fund Trust Class		1.59	%		1.36	%		1.31	%		1.32	%		1.39	%
Select Equities Fund Institutional Class		2.57	%		13.92	%⁽⁷⁾		—			—			—
Select Equities Fund Class A		2.19	%		3.99	%⁽⁷⁾		—			—			—
Select Equities Fund Class C		2.91	%		7.21	%⁽⁷⁾		—			—			—
Small and Mid Growth Fund Trust Class		4.80	%		2.92	%		3.66	%⁽³⁾		—			—
Small Cap Growth Fund Investor Class		1.48	%		1.42	%		1.76	%		1.86	%		1.90	%
Small Cap Growth Fund Trust Class		1.73	%		1.64	%		2.22	%		2.47	%		2.50	%
Small Cap Growth Fund Advisor Class		1.99	%		1.96	%		2.58	%		3.24	%		4.58	%
Small Cap Growth Fund Institutional Class		1.69	%		1.10	%⁽⁹⁾		—			—			—

196

Notes to Financial Highlights (cont'd)

	Year Ended August 31,
	2009			2008			2007		2006		2005
Small Cap Growth Fund Class A⁽¹⁵⁾		5.34	%		—			—		—		—
Small Cap Growth Fund Class C⁽¹⁵⁾		6.65	%		—			—		—		—
Small Cap Growth Fund Class R3⁽¹⁵⁾		6.29	%		—			—		—		—
Socially Responsive Fund Institutional Class		.78	%		.76	%⁽⁸⁾		—		—		—
Socially Responsive Fund Class A⁽¹⁵⁾		1.70	%⁽¹⁵⁾		—			—		—		—
Socially Responsive Fund Class C⁽¹⁵⁾		6.17	%⁽¹⁵⁾		—			—		—		—
Socially Responsive Fund Class R3⁽¹⁵⁾		5.76	%⁽¹⁵⁾		—			—		—		—

(1) Period from August 1, 2006 to August 31, 2006.

(2) Period from June 7, 2006 to August 31, 2006.

(3) Period from September 5, 2006 to August 31, 2007.

(4) Period from October 6, 2006 to August 31, 2007.

(5) Period from April 19, 2007 to August 31, 2007.

(6) Period from November 2, 2006 to August 31, 2007.

(7) Period from December 20, 2007 to August 31, 2008.

(8) Period from November 28, 2007 to August 31, 2008.

(9) Period from April 1, 2008 to August 31, 2008.

(10) Period from May 1, 2008 to August 31, 2008.

(11) Period from June 4, 2008 to August 31, 2008.

(12) Period from June 9, 2008 to August 31, 2008. On June 9, 2008, Equity Income's Trust Class was converted into the Fund's Institutional Class. The financial information of the Fund's Institutional Class includes the financial information of Trust Class shares.

(13) Period from October 8, 2008 to August 31, 2009. Organization expense, which is an extraordinary non-recurring expense, is included in ratios on a non-annualized basis.

(14) Period from April 6, 2009 to August 31, 2009.

(15) Period from May 27, 2009 to August 31, 2009.

^^ After utilization of the Line of Credit by International Institutional and/or reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such actions, or had the Fund not utilized the Line of Credit, the annualized ratio of net expenses to average daily net assets would have been:

	Year Ended August 31,
	2009			2008			2007			2006			2005
International Institutional Fund Institutional Class		1.26	%		1.11	%		1.12	%		1.20	%		2.90	%⁽¹⁾

(1) Period from June 17, 2005 to August 31, 2005

197

Notes to Financial Highlights (cont'd)

§ After reimbursement of expenses previously paid by Management and/or waiver of a portion of the investment management fee by Management. Had each Fund not made such reimbursements or Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been:

	Year Ended August 31,
	2007			2006			2005
Genesis Fund Institutional Class		—			.84	%		.85	%
International Fund Investor Class		—			1.24	%		—
International Fund Trust Class		—			1.32	%		—
Partners Fund Institutional Class		.64	%		—			—
Regency Fund Investor Class		—			—			1.18	%

^ The date investment operations commenced.

@ Calculated based on the average number of shares outstanding during each fiscal period.

ØØ Redemption fees are charged on Emerging Markets Equity, International, International Institutional, International Large Cap, and Real Estate. Calculated based on the average number of shares outstanding during each fiscal period.

§§ Included in this gain is a voluntary reimbursement from Management for all brokerage commissions from June 6, 2005 to July 20, 2005 to facilitate a restructuring of the portfolio following a change in the Fund's portfolio manager.

* Annualized.

** Not annualized.

Ø Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the year ended August 31, 2006 for Partners, for the year ended August 31, 2007 for International Large Cap and Mid Cap Growth, for the period ended August 31, 2008 for Equity Income, International Large Cap, Real Estate, Small Cap Growth, and Socially Responsive, and for the year ended August 31, 2009 for Guardian, International Large Cap, Large Cap Disciplined Growth, Mid Cap Growth, Small Cap Growth, and Socially Responsive.

## Portfolio turnover excludes purchases and sales of securities by Fasciano prior to the merger date (see Note H of Notes to Financial Statements).

### Portfolio turnover excludes purchases and sales of securities by Large Cap Disciplined Growth (acquired fund) prior to the merger date (see Note H of Notes to Financial Statements).

@@ Subsequent to August 31, 2007, Genesis received notification that a substantial portion of a special cash dividend received from one of its investments, which was recorded as dividend income in the 2007 financial statements, represented a non-taxable return of capital to Genesis. The reclassification had no impact on the total or per share net assets of Genesis, but resulted in a decrease of $62,516,000 in net investment income (loss), an increase of $2,354,000 in net realized gain (loss) on investments and an increase of $60,162,000 in change in unrealized appreciation (depreciation) of investments, for that year. The financial highlights for each class of shares for the year ended August 31, 2007, have been updated to reflect the revised recharacterization. The impact on the financial highlights for each class was a reclassification of $0.21, $0.32, $0.18 and $0.26 per share for the Investor Class, Trust Class, Advisor Class and Institutional Class, respectively, and a decrease in the Ratio of Net Investment Income (Loss) to Average Net Assets of 0.57%, 0.61%, 0.59% and 0.54% for the Investor Class, Trust Class, Advisor Class and Institutional Class, respectively.

198

Report of Independent Registered Public Accounting Firm

To the Board of Trustees
Neuberger Berman Equity Funds and
Shareholders of:
Neuberger Berman Climate Change Fund
Neuberger Berman Emerging Markets Equity Fund
Neuberger Berman Equity Income Fund
Neuberger Berman Focus Fund
Neuberger Berman Genesis Fund
Neuberger Berman Guardian Fund
Neuberger Berman International Fund
Neuberger Berman International Institutional Fund
Neuberger Berman International Large Cap Fund
Neuberger Berman Partners Fund
Neuberger Berman Real Estate Fund
Neuberger Berman Select Equities Fund

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Neuberger Berman Climate Change Fund (Climate Change), Neuberger Berman Emerging Markets Equity Fund (Emerging Markets Equity), Neuberger Berman Equity Income Fund (Equity Income), Neuberger Berman Focus Fund (Focus), Neuberger Berman Genesis Fund (Genesis), Neuberger Berman Guardian Fund (Guardian), Neuberger Berman International Fund (International), Neuberger Berman International Institutional Fund (International Institutional), Neuberger Berman International Large Cap Fund (International Large Cap), Neuberger Berman Partners Fund (Partners), Neuberger Berman Real Estate Fund (Real Estate), and Neuberger Berman Select Equities Fund (Select Equities), twelve of the series constituting Neuberger Berman Equity Funds (the "Trust"), as of August 31, 2009, and the related statements of operations for the year then ended for Climate Change, Equity Income, Focus, Genesis, Guardian, International, International Institutional, International Large Cap, Partners, Real Estate, and Select Equities and the period from October 8, 2008 (commencement of operations) to August 31, 2009 for Emerging Markets Equity, the statements of changes in net assets and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Trust's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of August 31, 2009, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the above-mentioned series of Neuberger Berman Equity Funds as of August 31, 2009, the results of their operations for the year then ended for Climate Change, Equity Income, Focus, Genesis, Guardian, International, International Institutional, International Large Cap, Partners, Real Estate and Select Equities and the period from October 8, 2008 (commencement of operations) to August 31, 2009 for Emerging Markets Equity, the changes in

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their net assets and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
October 16, 2009

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Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders
Neuberger Berman Equity Funds

We have audited the accompanying statements of assets and liabilities of the Neuberger Berman Large Cap Disciplined Growth Fund, Neuberger Berman Mid Cap Growth Fund, Neuberger Berman Regency Fund, Neuberger Berman Small Cap Growth Fund, Neuberger Berman Small and Mid Cap Growth Fund, and Neuberger Berman Socially Responsive Fund, each a series of the Neuberger Berman Equity Funds (the "Trust"), including the schedules of investments, as of August 31, 2009, and the related statements of operations for the year then ended (with respect to Neuberger Berman Large Cap Disciplined Growth Fund, the period December 20, 2007 to August 31, 2009), the statements of changes in net assets for each of the two years in the period then ended (with respect to Neuberger Berman Large Cap Disciplined Growth Fund, the period December 20, 2007 to August 31, 2009), and the financial highlights for each of the five years in the period then ended (with respect to Neuberger Berman Large Cap Disciplined Growth Fund, the period December 20, 2007 to August 31, 2009, and with respect to Neuberger Berman Small and Mid Cap Growth Fund, the three years in the period then ended). These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of August 31, 2009, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the above mentioned series of the Neuberger Berman Equity Funds, as of August 31, 2009, and the results of their operations, the changes in their net assets, and the financial highlights for the periods indicated above, in conformity with accounting principles generally accepted in the United States of America.

Philadelphia, Pennsylvania
October 16, 2009

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Neuberger Berman Sustainable Equity Fund (NBSRX) N-CSRCertified annual shareholder report (management investment company)