<PAGE>
GOVERNMENT INCOME PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1995
NBAMT0101295
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
Following a historic year in 1994 during which we saw unprecedented upheaval
and losses in the bond market, no one expected that 1995 would be another
historic year. So much for the consensus. The bond market rally that began in
early 1995 and continues to this date resulted in interest rates dropping over
200 basis points across most maturities of the intermediate and long-term
Treasury bonds and total returns exceeding 30% in some sectors, rivaling
equities for the best performing asset class. We are happy to report that the
Government Income Portfolio shared in a good portion of the bond market's
phenomenal year.
Like most market participants, we entered 1995 on a cautious note, not
anticipating the power of the bond market rally that was to come. Our strategy
early in the year was to invest heavily in the mortgage sector in response to
slowing prepayment speeds and attractive yield spreads over comparable maturity
Treasuries. As interest rates dropped and prepayment speeds accelerated, we
reduced our exposure to high coupon mortgage pass-throughs in favor of U.S.
Treasuries. As prepayment speeds increased, the collateralized mortgage
obligation (CMO) bond market also suffered. In response to this trend, we
lowered substantially our commitment to CMO bonds. In reducing our commitment to
the mortgage sector, we chose to invest in U.S. Treasuries over corporates due
to historically tight credit spreads (when yields between high- and low-grade
credit qualities are very close) that we believed did not provide sufficient
value. We also allocated a portion of the Portfolio to the asset-backed sector
which has had more stable average life characteristics in volatile interest rate
environments.
The increase in mortgage prepayment speeds during 1995 decreased the average
maturity of most mortgages, and, in turn, shortened the average portfolio
maturity. To offset this trend, we purchased longer-term Treasuries. As the
rally became firmly entrenched, we also used Treasuries to substantially
increase the portfolio's average maturity and corresponding sensitivity to
interest rates in order to achieve greater capital appreciation. This strategy
was highly successful in the second half of the year. The portfolio ended the
year with an average maturity of approximately 10 years.
As 1995 came to a close, we started to increase our commitment to agency
pass-throughs as the mortgage sector appeared to offer some good value once
again. Expectations of increasing prepayments have been reflected in wider yield
spreads, and now seem to provide fair compensation for the risk.
Our prudent sector and maturity management helped us to navigate the
Portfolio through a difficult mortgage bond market and allowed us to participate
in the rewards of an unprecedented overall bond market rally in 1995.
William Cunningham Theresa A. Havell
PORTFOLIO CO-MANAGER PORTFOLIO CO-MANAGER
AMT Government Income Investments AMT Government Income Investments
Shares of the separate Portfolios of Neuberger&Berman Advisers Management Trust
are sold only through the currently effective prospectus and are not available
to the general public. Shares of the Government Income Portfolio may be
purchased only by life insurance companies to be used with their separate
accounts that fund variable annuity and variable life insurance policies.
2
<PAGE>
COMPARISON OF A $10,000 INVESTMENT
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Government Income Portfolio
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
GOVERNMENT INCOME PORTFOLIO SALOMON BROTHERS MORTGAGE INDEX
<S> <C> <C>
1 Year +11.76% +16.77%
Life of Fund +7.34% +9.53%
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
GOVERNMENT INCOME PORTFOLIO SALOMON BROTHERS MORTGAGE INDEX
<S> <C> <C>
3/22/94 $10,000 $10,000
12/31/94 $10,150 $10,069
12/31/95 $11,344 $11,757
</TABLE>
Life of Government Income Portfolio is from 3/22/94.
Neuberger&Berman Management Inc. voluntarily bears certain operating expenses
of the Fund in excess of 1.0% per annum of average daily net assets. This
arrangement can be terminated upon 60 days' notice. Absent such reimbursement,
the average annual total returns for the period from 3/22/94 to 12/31/95 and for
the one year ended 12/31/95 would have been +5.06% and +8.84%, respectively.
*"Total Return" is calculated including 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.
The Salomon Brothers Mortgage Index is an unmanaged total return index
consisting of all Agency pass-throughs, GNMA, FNMA, and FHLMC securities and
75-day, 30- and 15-year securities, and FHA and GNMA project loans. Please note
that indices do not take into account any fees and expenses of investing in the
individual securities that they track, and that individuals cannot invest
directly in any index. These data are derived by Neuberger&Berman Management
Inc. and include reinvestment of all dividends and capital gain distributions.
Performance data are historical and include changes in share price and
reinvestment of dividends and capital gain distributions. Performance numbers
are net of all Fund operating expenses, but do not include any insurance charges
imposed by your insurance company's variable annuity or variable life insurance
policy. If this performance information included the effect of the insurance
charges, performance numbers would be lower.
3
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
December 31,
1995
-------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 2,193,873
Receivable from administrator -- net (Note B) 40,700
Deferred organization costs (Note A) 9,304
Receivable for Trust shares sold 5,259
-------------
2,249,136
-------------
LIABILITIES
Payable for Fund expenses (Note B) 34,584
Accrued organization costs (Note A) 14,426
Accrued expenses 8,570
-------------
57,580
-------------
NET ASSETS at value $ 2,191,556
-------------
NET ASSETS consist of:
Par value $ 201
Paid-in capital in excess of par value 2,050,202
Accumulated undistributed net investment income 83,300
Accumulated net realized gains on investment 6,942
Net unrealized appreciation in value of
investment 50,911
-------------
NET ASSETS at value $ 2,191,556
-------------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 200,579
-------------
NET ASSET VALUE, offering and redemption price per
share $10.93
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1995
-----------------
<S> <C>
INVESTMENT INCOME
Income:
Interest $ 25,342
Investment income from Series (Note A) 74,205
--------
Total investment income 99,547
--------
Expenses:
Investment advisory fee (Note B) 2,085
Administration fee (Note B) 4,502
Shareholder reports 22,246
Custodian fees 8,743
Amortization of deferred organization and
initial offering expenses (Note A) 2,884
Registration and filing fees 340
Legal fees 279
Distribution fees (Note B) 152
Trustees' fees and expenses 40
Auditing fees 34
Insurance expense 16
Miscellaneous 569
Expenses from Series (Note A) 20,045
--------
Total expenses 61,935
Deduct -- expenses reimbursed by
administrator (Note B) (46,494)
--------
Total net expenses 15,441
--------
Net investment income 84,106
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 369
Net realized gain on investments from Series
(Note A) 6,620
Change in net unrealized appreciation
(depreciation) of investments 19,801
Net unrealized appreciation of investments
from Series (Note A) 53,751
--------
Net gain on investments 80,541
--------
Net increase in net assets resulting from
operations $ 164,647
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
Period from
March 22, 1994
(Commencement of
Year Ended Operations) to
December 31, December 31,
1995 1994
-------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 84,106 $ 37,880
Net realized gain (loss) on
investments sold (Note A) 6,989 (47)
Change in net unrealized
appreciation (depreciation) of
investments (Note A) 73,552 (22,641)
-------------------------------------
Net increase in net assets resulting
from operations 164,647 15,192
-------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (38,686) --
-------------------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 1,157,027 1,018,223
Proceeds from reinvestment of
dividends 38,686 --
Payments for shares redeemed (163,457) (76)
-------------------------------------
Net increase from Trust share
transactions 1,032,256 1,018,147
-------------------------------------
NET INCREASE IN NET ASSETS 1,158,217 1,033,339
NET ASSETS:
Beginning of year 1,033,339 --
-------------------------------------
End of year $ 2,191,556 $ 1,033,339
-------------------------------------
Accumulated undistributed net
investment income at end of year $ 83,300 $ 37,880
-------------------------------------
NUMBER OF TRUST SHARES:
Sold 110,418 101,815
Issued on reinvestment of dividends 3,853 --
Redeemed (15,500) (7)
-------------------------------------
Net increase in shares outstanding 98,771 101,808
-------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Government Income Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Government Income Portfolio (the "Fund") is a separate series of
Neuberger&Berman Advisers Management Trust (the "Trust"), a Delaware business
trust organized pursuant to a Trust Instrument dated May 23, 1994. The Trust
is currently comprised of six separate series (the "Funds"). The Trust is
registered as a diversified, 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").
The predecessors of the Funds were converted into the Funds after the close
of business on April 28, 1995 (the "conversion"); these conversions were
approved by the shareholders of the predecessors of the Funds in August,
1994. The predecessor of the Fund had no operations until March 22, 1994,
other than matters relating to its organization and registration as a
diversified, open-end management investment company under the 1940 Act, and
registration of its shares under the 1933 Act. The trustees of the Trust 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 Fund seeks to achieve its investment objective by investing all of its
net investable assets in the AMT Government Income Investments, a series of
Advisers Managers Trust (the "Series") having the same investment objective
and policies as the Fund. The value of the Fund's investment in the Series
reflects the Fund's proportionate interest in the net assets of the Series
(100% at December 31, 1995). The performance of the Fund is directly affected
by the performance of the Series. The financial statements of the Series,
including the schedule of investments, are included elsewhere in this report
and should be read in conjunction with the Fund's financial statements.
2) PORTFOLIO VALUATION: Investments in the Series of Advisers Managers Trust are
valued by Advisers Managers Trust as indicated in the notes following the
Series' schedule of investments.
3) FEDERAL INCOME TAXES: The Fund and the other series of the Trust are treated
as separate entities for Federal income tax purposes. It is the policy of the
Fund to continue to qualify as a regulated investment company by complying
with the provisions available to certain investment companies, as defined in
applicable sections of the Internal Revenue Code, and to make distributions
of taxable income (after reduction for any amounts available for Federal
income tax purposes as capital loss carryforwards) sufficient to relieve it
from all, or substantially all, Federal income taxes. Accordingly, the Fund
paid no Federal income taxes and no provision for Federal income taxes was
required.
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net of
Series expenses, daily on its investment in the Series. Dividends and
distributions from net realized capital gains, if any, are normally
distributed in February. Income dividends and capital gain distributions to
shareholders are recorded on the ex-dividend date. To the extent that the
Fund's net realized capital gains, if any, can be offset by capital loss
carryforwards, it is the policy of the Fund not to distribute such gains.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Government Income Portfolio
The Fund distinguishes between dividends on a tax basis and a financial
reporting basis and only distributions in excess of tax basis earnings and
profits are reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains.
5) ORGANIZATION EXPENSES: Expenses incurred by the Fund in connection with its
organization are being amortized by the Fund on a straight-line basis over a
five-year period. At December 31, 1995, the unamortized balance of such
expenses amounted to $9,304. The accrued organization costs are payable to
Neuberger&Berman Management Incorporated ("Management"), the administrator to
the Fund.
6) EXPENSE ALLOCATION: Expenses directly attributable to a fund are charged to
that fund. Expenses not directly attributed to a fund are allocated, on the
basis of relative net assets, to each of the funds of the Trust.
7) OTHER: All net investment income and realized and unrealized capital gains
and losses of the Series are allocated pro rata among the Fund and any other
investors in the Series.
NOTE B -- ADMINISTRATION AND DISTRIBUTION FEES AND OTHER TRANSACTIONS WITH
AFFILIATES:
Fund shares are issued and redeemed in connection with investments in and
payments under certain variable annuity contracts and variable life insurance
policies issued through separate accounts of life insurance companies.
The Fund retains Management as its administrator under an Administration
Agreement ("Agreement") dated as of May 1, 1995. Pursuant to this Agreement the
Fund pays Management an administration fee at the annual rate of .40% of the
Fund's average daily net assets and indirectly pays for investment management
services through its investment in the Series. (See Note B of Notes to Financial
Statements of the Series.) Prior to conversion, the predecessor of the Fund paid
to Management for investment advisory and administrative services a fee at the
annual rate of .60% of its average daily net assets.
On April 16, 1993, the shareholders of the Trust adopted a distribution plan
("Plan") which provided that the predecessor to the Trust, on behalf of any of
its series, could reimburse Management after each calendar quarter for certain
distribution expenses in an amount not to exceed .25%, on an annual basis, of
that series' average daily net assets as of the close of such calendar quarter.
The Plan became effective on May 1, 1993, was implemented on November 1, 1993,
and was terminated on April 30, 1995. For the period ended April 30, 1995, the
Fund paid $152 for such expense. Effective May 1, 1995, the trustees of the
Trust adopted a non-fee distribution plan for each series of the Trust.
Management has voluntarily undertaken to reimburse the Fund for its operating
expenses and its pro rata share of its Series' operating expenses (including the
compensation of Management under the Administration Agreement and the Series'
Management Agreement, but excluding interest, taxes, brokerage commissions,
extraordinary expenses, transaction costs, and any payments to Management
pursuant to the Plan) which exceed, in the aggregate, 1% per annum of the Fund's
average daily net assets. This undertaking is subject to termination by
Management upon at least sixty (60) days' prior written notice to the Fund, as
it was for its predecessor prior to the conversion. For the year ended December
31, 1995, such excess expenses amounted to $46,494.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Government Income Portfolio
Since inception of the Fund, Management has voluntarily undertaken to pay
certain expenses as an advance. Those expenses will be repaid by the Fund to
Management in the future, and are included under the caption Payable for Fund
expenses in the Statement of Assets and Liabilities.
All of the capital stock of Management is owned by individuals who are also
general partners of Neuberger& Berman, L.P. ("Neuberger"), a member firm of The
New York Stock Exchange and the sub-adviser to the Series. Several individuals
who are officers and/or trustees of the Trust are also partners of Neuberger
and/or officers and/or directors of Management.
NOTE C -- INVESTMENT TRANSACTIONS:
During the period from May 1, 1995 to December 31, 1995, additions and
reductions to the Fund's investment in its Series amounted to $1,132,967 and
$161,213, respectively.
NOTE D -- SECURITIES TRANSACTIONS:
Prior to conversion, there were purchase and sale transactions (excluding
short-term securities) of $13,175 and $59,512, respectively, during the period
from January 1, 1995 to April 30, 1995. Transactions occurring subsequent to the
conversion are accounted for by Advisers Managers Trust.
9
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
The following table includes selected data for a share outstanding
throughout each year and other performance information derived from the
Financial Statements. It should be read in conjunction with its Series'
Financial Statements and notes thereto.(1)
<TABLE>
<CAPTION>
PERIOD FROM
MARCH 22,
YEAR ENDED 1994(3) TO
DECEMBER 31, DECEMBER 31,
1995(2) 1994
------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Year $ 10.15 $ 10.00
------------------------------
Income From Investment Operations
Net Investment Income .70 .37
Net Gains or Losses on Securities (both realized and unrealized) .46 (.22)
------------------------------
Total From Investment Operations 1.16 .15
------------------------------
Less Distributions
Dividends (from net investment income) (.38) --
------------------------------
Net Asset Value, End of Year $ 10.93 $ 10.15
------------------------------
Total Return+ +11.76% +1.50%(4)
------------------------------
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $ 2.2 $ 1.0
------------------------------
Ratio of Expenses to Average Net Assets(6) 1.05% 1.09%(5)
------------------------------
Ratio of Net Investment Income to Average Net Assets(6) 5.71% 4.78%(5)
------------------------------
Portfolio Turnover Rate(7) 2% 3%
------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
10
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Government Income Portfolio
1)The per share amounts which are shown have been computed based on the average
number of shares outstanding during each year.
2)The per share amounts and ratios which are shown reflect income and expenses,
including the Fund's proportionate share of the Series' income and expenses.
3)The date investment operations commenced.
4)Not annualized.
5)Annualized.
6)Since the commencement of operations, the Administrator voluntarily assumed
certain operating expenses of the Fund as described in Note B of Notes to
Financial Statements. Had such action not been undertaken, the annualized
ratios of expenses and net investment income to average daily net assets would
have been 4.21% and 2.55%, respectively, for the year ended December 31, 1995,
and 2.57% and 3.30%, respectively, for the period ended December 31, 1994.
7)The Fund transferred all of its investment securities into its Series on April
28, 1995. After that date the Fund invested only in its Series and that
Series, rather than the Fund, engaged in securities transactions. Therefore,
after that date the Fund had no portfolio turnover rate. Portfolio turnover
rates for the periods ending after April 28, 1995 are included elsewhere in
AMT Government Income Investments' Financial Highlights.
+ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each year and
assumes dividends and capital gain distributions, if any, were reinvested.
Results represent past performance and do not guarantee future results.
Investment returns and principal may fluctuate and shares when redeemed may be
worth more or less than original cost. Total return figures would have been
lower if the Administrator had not reimbursed certain expenses. The total
return information shown does not reflect expenses that apply to the separate
account or the related insurance policies, and the inclusion of these charges
would reduce the total return figures for all years shown.
11
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees of
Neuberger&Berman Advisers Management Trust and
Shareholders of Government Income Portfolio
We have audited the accompanying statement of assets and liabilities of the
Government Income Portfolio, one of the series comprising Neuberger&Berman
Advisers Management Trust as of December 31, 1995, and the related statement of
operations for the year then ended, and the statement of changes in net assets,
and financial highlights for the year then ended and for the period from March
22, 1994 (Commencement of Operations) to December 31, 1994. 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 generally accepted auditing
standards. 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. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. 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
Government Income Portfolio of Neuberger&Berman Advisers Management Trust at
December 31, 1995, the results of its operations for the year then ended, and
the changes in its net assets and financial highlights for the year then ended,
and for the period from March 22, 1994 (Commencement of Operations) to December
31, 1994, in conformity with generally accepted accounting principles.
[SIGNATURE]
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 19, 1996
12
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
PRINCIPAL RATING(2) MARKET
AMOUNT MOODY'S S&P VALUE(1)
- ----------- ----------- --------- ----------
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES
(30.2%)
$ 220,000 U.S. Treasury Notes, 6.50%,
due 5/15/05 TSY TSY $ 234,124
20,000 U.S. Treasury Notes, 6.50%,
due 8/15/05 TSY TSY 21,310
395,000 U.S. Treasury Bonds, 6.25%,
due 8/15/23 TSY TSY 406,333
----------
TOTAL U.S. TREASURY SECURITIES
(COST $636,934) 661,767
----------
U.S. GOVERNMENT AGENCY
SECURITIES (29.5%)
65,000 Federal Farm Credit Bank,
Discount Notes, 5.65% & 5.67%,
due 1/4/96 & 1/5/96 AGY AGY 64,963(3)
125,000 Tennessee Valley Authority,
Discount Notes, 5.61%, due
1/5/96 AGY AGY 124,922(3)
35,000 Federal National Mortgage
Association, Discount Notes,
5.55%, due 1/17/96 AGY AGY 34,914(3)
50,000 Federal Home Loan Mortgage
Corp., Discount Notes, 5.52%,
due 1/25/96 AGY AGY 49,816(3)
160,000 Federal Home Loan Bank, Bonds,
Ser. 98, 5.25%, due 5/26/98 AGY AGY 159,315
200,000 Student Loan Marketing
Association, Global
Debentures, 7.50%, due 3/8/00 AGY AGY 214,108
----------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES (COST $646,615) 648,038
----------
MORTGAGE-BACKED SECURITIES
(40.8%)
FEDERAL HOME LOAN MORTGAGE CORP.
86,153 REMIC CMO, Ser. 1658, Class
AG, 10.00%, due 4/15/21 AGY AGY 94,375
45,000 Gold Mortgage Participation
Certificates, 6.50%, TBA, 30
Year Maturity AGY AGY 44,505
FEDERAL NATIONAL MORTGAGE ASSOCIATION
2,477 REMIC Trust, Ser. 1991-30,
Class 30-E, 8.50%, due 3/25/09 AGY AGY 2,468
186,958 Mortgage Participation
Certificates, 7.00%, due
2/1/24 AGY AGY 188,521
105,000 DWARF Mortgage Participation
Certificates, 6.00%, TBA, 15
Year Maturity AGY AGY 103,950
65,000 Mortgage Participation
Certificates, 6.50%, TBA, 30
Year Maturity AGY AGY 64,227
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
185,217 Pass-Through Certificates,
8.00%, due 3/15/24 AGY AGY 192,916
197,595 Pass-Through Certificates,
7.50%, due 8/15/25 AGY AGY 203,273
----------
TOTAL MORTGAGE-BACKED
SECURITIES (COST $870,741) 894,235
----------
</TABLE>
13
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
PRINCIPAL RATING(2) MARKET
AMOUNT MOODY'S S&P VALUE(1)
- ----------- ----------- --------- ----------
<C> <S> <C> <C> <C>
ASSET-BACKED SECURITIES (6.0%)
$ 48,214 NationsBank Auto Grantor
Trust, Ser. 1995-A, Class A,
5.85%, due 6/15/02 Aaa AAA $ 48,429
75,000 Standard Credit Card Master
Trust I, Credit Card
Participation Certificates,
Ser. 1994-4, Class A, 8.25%,
due 11/7/03 Aaa AAA 83,207
----------
TOTAL ASSET-BACKED SECURITIES
(COST $130,475) 131,636
----------
TOTAL INVESTMENTS (106.5%)
(COST $2,284,765) 2,335,676(4)
Liabilities, less cash,
receivables and other assets
[(6.5%)] (141,802)
----------
TOTAL NET ASSETS (100.0%) $2,193,874
----------
</TABLE>
14
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Government Income Investments
1)Investment securities of the Series are valued daily by obtaining bid price
quotations from independent pricing services on selected securities available
in each service's data base. For all other securities requiring daily
quotations, bid prices are obtained from principal market makers in those
securities. Short-term investments with less than sixty days until maturity at
the time of purchase are valued at amortized cost which, when combined with
interest earned, approximates market value.
2)Credit ratings are unaudited.
3)At cost, which approximates market value.
4)At December 31, 1995, the cost of investments for Federal income tax purposes
was $2,284,765. Gross unrealized appreciation of investments was $50,974 and
gross unrealized depreciation of investments was $63, resulting in net
unrealized appreciation of $50,911, based on cost for Federal income tax
purposes.
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
December 31,
1995
-------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 2,335,676
Cash 21,817
Receivable for securities sold 42,838
Interest receivable 22,515
Deferred organization costs (Note A) 18,635
Prepaid expenses 26
-------------
2,441,507
-------------
LIABILITIES
Payable for securities purchased 212,278
Accrued organization costs (Note A) 21,512
Payable for Series expenses (Note B) 7,921
Accrued expenses 5,278
Payable to investment manager (Note B) 644
-------------
247,633
-------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 2,193,874
-------------
NET ASSETS consist of:
Paid-in capital $ 2,142,963
Net unrealized appreciation in value of
investments 50,911
-------------
NET ASSETS $ 2,193,874
-------------
*Cost of investments $ 2,284,765
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
For the
Period from
May 1, 1995
(Commencement
of Operations)
to December 31,
1995
-----------------
<S> <C>
INVESTMENT INCOME
Interest income $ 74,205
--------
Expenses:
Investment management fee (Note B) 3,969
Accounting fees 6,667
Custodian fees 6,301
Amortization of deferred organization and
initial offering expenses (Note A) 2,886
Auditing fees 134
Trustees' fees and expenses 31
Insurance expense 29
Legal fees 28
--------
Total expenses 20,045
--------
Net investment income 54,160
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments sold 6,620
Net unrealized appreciation of investments 53,751
--------
Net gain on investments 60,371
--------
Net increase in net assets resulting from
operations $ 114,531
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
Period from
May 1, 1995
(Commencement
of Operations)
to December 31,
1995
-----------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 54,160
Net realized gain on investments
sold 6,620
Net unrealized appreciation of
investments 53,751
-----------------
Net increase in net assets resulting
from operations 114,531
-----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 1,132,968
Reductions (161,213)
-----------------
Net increase in net assets resulting
from transactions in investors'
beneficial interests 971,755
-----------------
NET INCREASE IN NET ASSETS 1,086,286
NET ASSETS:
Initial contribution 1,107,588
-----------------
End of period $ 2,193,874
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Government Income Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Government Income Investments (the "Series") is a separate
series of Advisers Managers Trust ("Managers Trust"), a New York common law
trust organized as of May 24, 1994. Managers Trust is currently comprised of
six separate series. Managers Trust is registered as a diversified, open-end
management investment company under the Investment Company Act of 1940, as
amended. After the close of business on April 28, 1995, each series of
Neuberger&Berman Advisers Management Trust (the "Trust") invested all of its
net investable assets (cash, securities, and receivables relating to
securities) in a corresponding series of Managers Trust, receiving a
beneficial interest in that series.
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
2) PORTFOLIO VALUATION: Securities are valued as indicated in the notes
following the Series' schedule of investments.
3) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Interest income, including accretion of
discount on short-term investments (adjusted for original issue discount,
where applicable), is recorded on the accrual basis. Realized gains and
losses from securities transactions are recorded on the basis of identified
cost.
4) FEDERAL INCOME TAXES: Managers Trust intends to comply with the requirements
of the Internal Revenue Code of 1986, as amended. Each Series of Managers
Trust also intends to conduct its operations so that each of its investors
will be able to qualify as a regulated investment company. Each Series will
be treated as a partnership for Federal income tax purposes and is therefore
not subject to Federal income tax.
5) ORGANIZATION EXPENSES: Expenses incurred by the Series in connection with its
organization are being amortized by the Series on a straight-line basis over
a five-year period. At December 31, 1995, the unamortized balance of such
expenses amounted to $18,635. The accrued organization costs are payable to
Neuberger& Berman Management Incorporated ("Management"), the investment
manager of the Series.
6) EXPENSE ALLOCATION: Expenses directly attributable to a series are charged to
that series. Expenses not directly attributed to a series are allocated, on
the basis of relative net assets, to each of the series of Managers Trust.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains Management as its investment manager under a Management
Agreement ("Agreement") dated as of May 1, 1995. For such investment management
services, the Series pays Management a fee at the annual rate of .35% of the
first $500 million of the Series' average daily net assets, .325% of the next
$500 million, .30% of the next $500 million, .275% of the next $500 million, and
.25% of average daily net assets in excess of $2 billion.
Since inception of the Series, Management has voluntarily undertaken to pay
certain expenses as an advance. Those expenses will be repaid by the Series to
Management in the future, and are included under the caption Payable for Series
expenses in the Statement of Assets and Liabilities.
All of the capital stock of Management is owned by individuals who are also
general partners of Neuberger& Berman, L.P. ("Neuberger"), a member firm of The
New York Stock Exchange and the sub-adviser to the Series.
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Government Income Investments
Neuberger is retained by Management to furnish it with investment
recommendations and research information without cost to the Series. Several
individuals who are officers and/or trustees of Managers Trust are also partners
of Neuberger and/or officers and/or directors of Management.
The Series has an expense offset arrangement included in its custodian
contract. The impact of this arrangement on the Series' custodian expense,
reflected in the Statement of Operations, is $426, which is less than .03% of
the Series' average daily net assets.
NOTE C -- SECURITIES TRANSACTIONS:
During the period from May 1, 1995 (commencement of operations) to December
31, 1995, there were purchase and sale transactions (excluding short-term
securities) of $2,056,729 and $696,273, respectively.
20
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
Period from
May 1, 1995
(Commencement
of Operations)
to December 31,
1995
---------------
<S> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.77%(1)
---------------
Net Investment Income 4.78%(1)
---------------
Portfolio Turnover Rate 64%
---------------
Net Assets, End of Period (in millions) $2.2
---------------
</TABLE>
1) Annualized.
21
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees of
Advisers Managers Trust and
Owners of Beneficial Interest of AMT Government Income Investments
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of the AMT Government Income Investments,
one of the series comprising Advisers Managers Trust as of December 31, 1995,
and the related statements of operations, the statement of changes in net
assets, and financial highlights for the period from May 1, 1995 (Commencement
of Operations) to December 31, 1995. 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 audit.
We conducted our audit in accordance with generally accepted auditing
standards. 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. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995, by correspondence with the custodian and brokers or other
appropriate auditing procedures where replies from brokers were not received. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides 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
AMT Government Income Investments of Advisers Managers Trust at December 31,
1995, the results of its operations, the changes in its net assets, and
financial highlights for the period from May 1, 1995 (Commencement of
Operations) to December 31, 1995, in conformity with generally accepted
accounting principles.
[SIGNATURE]
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 19, 1996
22
