<PAGE>
PARTNERS PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1995
NBAMT0201295
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Partners Portfolio
1995 was a splendid year of total return gains for AMT Partners Portfolio,
fostered by extraordinary appreciation in the domestic equities markets and,
consequently, a majority of our holdings. Declining interest rates and low
inflation, coupled with slow but steady economic growth, provided an ideal
medium for stocks to rise nearly unhindered all year long.
The Portfolio kept broad exposure to the bull market, and found investments
in many industry types and market capitalizations. Financial and industrial
cyclical stocks kept a large presence in the Portfolio, where numerous high-
quality value stocks were found. These, plus a number of technology and health
care stocks, wended their way to new highs as the equity markets reached one
record after another.
On a stock-by-stock basis, we were pleased by most of our individual
holdings. Financial stocks were selling at deep discounts after being routed by
a disappointing environment of high interest rates in 1994. Seeing strong
intrinsic value and an overdue rebound lying beneath certain tarnished finance
stocks, we increased our position in Progressive Corporation, a leading
underwriter of property and casualty insurance, in 1995's first half. The
company extended its superb long-term earnings growth record and its share price
rose from $35 to almost $49, or roughly 40%, during the year.
One of our holdings from the health care arena, Columbia/HCA Healthcare, was
well positioned to take advantage of the consolidation in the nation's health
care delivery systems in early 1995 (following legislative proposals that had
derailed many a health care stock). The company aggressively expanded its market
presence through joint ventures and acquisitions, and its share price bounded
back from the high $30s in the first quarter of 1995 to over $50 by year's end.
Technology stocks contributed greatly to the Portfolio's performance, and
will be remembered as one of the hottest sectors of 1995. Though they gave up
some ground since mid-October as investors grew worried about high valuations
and opted to lock in some profits, we managed to cash in on some of our computer
positions shortly beforehand. Advanced Micro Devices underperformed through much
of 1995, remaining flat during the rally due to weakness in the 486 processor
market and hype surrounding a possible merger with NexGen. On the other hand,
Texas Instruments proved to be a hidden gem amidst the technology frenzy,
another position built up throughout the early stages of the 1995 bull run; even
after doubling from approximately $40 to $80 per share during part of the year,
Texas Instruments remained relatively ignored, selling at below-market
multiples.
Certain cyclical stocks turned in mixed results in 1995. Paper concerns such
as Georgia-Pacific suffered abrupt short-term weakness in the fourth quarter,
just after a tandem climb with the commodity's price. Of course, short-term
weaknesses are where we find, and add, new values. While we missed much of the
move in Scott Paper, its purchase price after merger plans were announced with
Kimberly-Clark still proved favorable, as more analysts realized the stepped-up
earnings power of the combined entity. One of our best "sells" of the year was
Burlington Northern Santa Fe, the nation's largest railroad operator. Bought
late in 1994 in the high $40s, it was sold in the low $70s about a year
later -- appreciating more than 50% along the way.
We have taken a new position in Crown Cork & Seal. It is a prosaic, mundane
industrial goods concern (the name says it all) which was traded down from a
high of $50 to the low $30s due to disappointing near-term earnings and
2
<PAGE>
confusion over merger plans with Carnaval/Metalbox, the largest European
container company. We initially purchased the stock in the low $40s and bought
more on signs of weakness -- believing that the combined earnings power would
justify a significantly higher share price within two years.
Our Crown Cork & Seal selection says a lot about our overall approach. First
of all, we think we have taken to Crown Cork at an attractive price -- BEFORE
the perceived turnaround. Price entry points are critical in this historically
very high market environment, and we are always disciplined about what we pay
for growth. To uncover the Crown Cork story, we didn't just rely on available
Wall Street research. We met with management to understand both the current
problems and the long term prospects. Finally, we always look for managers who
behave like owners -- that was the case at Crown Cork.
What's next? Bull or Bear? It does not matter in our strategy. We will
continue to pursue a "bottom-up" technique, instead of focusing on broad sectors
or trends.
Potential and existing holdings will be examined (and re-examined) one at a
time. Careful scrutiny of earnings, a good balance sheet, a high return on
equity, solid management, and future growth prospects remain the foundation of
our approach. We will continue to report to you periodically about the AMT
Partners Portfolio, and we appreciate your support.
<TABLE>
<S> <C> <C>
Michael Kassen Robert Gendelman
PORTFOLIO CO-MANAGER PORTFOLIO CO-MANAGER
AMT Partners Investments AMT Partners Investments
</TABLE>
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 AMT Partners 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.
3
<PAGE>
COMPARISON OF A $10,000 INVESTMENT
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Partners Portfolio
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
PARTNERS PORTFOLIO S&P "500"
<S> <C> <C>
1 Year +36.47% +37.45%
Life of Fund +17.54% +20.13%
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
PARTNERS PORTFOLIO S&P "500"
<S> <C> <C>
3/22/1994 $10,000 $10,000
12/31/1994 9,770 10,085
12/31/1995 13,333 13,861
</TABLE>
Life of Partners Portfolio is from 3/22/94.
*"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 S&P "500" Index is an unmanaged index generally considered to be
representative of stock market activity. Please note that indices do not take
into account any fees and expenses of investing in the individual securities
that they track, and that individuals cannot invest directly in any index. 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.
4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Partners Portfolio
<TABLE>
<CAPTION>
December 31,
1995
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 142,403,069
Receivable for Trust shares sold 65,190,851
Deferred organization costs (Note A) 9,063
--------------
207,602,983
--------------
LIABILITIES
Payable to administrator (Note B) 34,093
Payable for Trust shares redeemed 8
Accrued expenses 27,050
--------------
61,151
--------------
NET ASSETS at value $ 207,541,832
--------------
NET ASSETS consist of:
Par value $ 15,687
Paid-in capital in excess of par value 191,779,282
Accumulated undistributed net investment income 600,049
Accumulated net realized gains on investment 9,230,295
Net unrealized appreciation in value of investment 5,916,519
--------------
NET ASSETS at value $ 207,541,832
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 15,687,308
--------------
NET ASSET VALUE, offering and redemption price per share $13.23
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Partners Portfolio
<TABLE>
<CAPTION>
For the
Year
Ended
December 31,
1995
--------------
<S> <C>
INVESTMENT INCOME
Income:
Interest $ 70,769
Dividends 65,627
Investment income from Series (Note A) 1,142,059
--------------
Total investment income 1,278,455
--------------
Expenses:
Investment advisory fee (Note B) 37,715
Administration fee (Note B) 170,462
Shareholder reports 42,148
Custodian fees 20,545
Legal fees 11,305
Registration and filing fees 3,163
Amortization of deferred organization and initial
offering expenses (Note A) 2,810
Distribution fees (Note B) 2,408
Trustees' fees and expenses 1,692
Auditing fees 1,620
Insurance expense 26
Miscellaneous 746
Expenses from Series (Note A) 382,432
--------------
Total expenses 677,072
--------------
Net investment income 601,383
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 930,817
Net realized gain on investments from Series (Note A) 8,299,593
Change in net unrealized appreciation (depreciation) of
investments 1,009,738
Net unrealized appreciation of investments from Series
(Note A) 5,075,724
--------------
Net gain on investments 15,315,872
--------------
Net increase in net assets resulting from operations $ 15,917,255
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Partners Portfolio
<TABLE>
<CAPTION>
Period from
March 22, 1994
(Commencement
Year of Operations)
Ended to
December 31, December 31,
1995 1994
-------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 601,383 $ 12,658
Net realized gain on investments
sold (Note A) 9,230,410 97,828
Change in net unrealized
appreciation (depreciation) of
investments (Note A) 6,085,462 (168,943)
-------------------------------
Net increase (decrease) in net
assets resulting from operations 15,917,255 (58,457)
-------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (13,992) --
Net realized gain on investments (97,943) --
-------------------------------
Total distributions to shareholders (111,935) --
-------------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 206,877,990 11,561,691
Proceeds from reinvestment of
dividends and distributions 111,935 --
Payments for shares redeemed (24,631,916) (2,124,731)
-------------------------------
Net increase from Trust share
transactions 182,358,009 9,436,960
-------------------------------
NET INCREASE IN NET ASSETS 198,163,329 9,378,503
NET ASSETS:
Beginning of year 9,378,503 --
-------------------------------
End of year $ 207,541,832 $ 9,378,503
-------------------------------
Accumulated undistributed net
investment income at end of year $ 600,049 $ 12,658
-------------------------------
NUMBER OF TRUST SHARES:
Sold 16,798,321 1,174,997
Issued on reinvestment of dividends
and distributions 10,910 --
Redeemed (2,082,241) (214,679)
-------------------------------
Net increase in shares outstanding 14,726,990 960,318
-------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Partners Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Partners 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 Partners 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.
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
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Partners Portfolio
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 $9,063.
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 Neuberger&Berman Management Incorporated ("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 .30% 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 .70%
of the first $250 million of its average daily net assets, .675% of the next
$250 million, .65% of the next $250 million, .625% of the next $250 million, and
.60% of its average daily net assets in excess of $1 billion.
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 $2,408 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 (excluding the
compensation of Management under the Administration Agreement and the Series'
Management Agreement, 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, no
reimbursement to the Fund or its predecessor was required.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Partners Portfolio
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 $110,846,763 and
$14,612,936, respectively.
NOTE D -- SECURITIES TRANSACTIONS:
Prior to conversion, there were purchase and sale transactions (excluding
short-term securities) of $26,792,177 and $10,934,980, 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.
Prior to conversion, there were brokerage commissions on securities
transactions paid to Neuberger and other brokers of $64,356 and $2,796,
respectively, during the period from January 1, 1995 to April 30, 1995.
Brokerage commissions occurring subsequent to the conversion are accounted for
by Advisers Managers Trust.
10
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Partners 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
YEAR MARCH 22,
ENDED 1994(3) TO
DECEMBER 31, DECEMBER 31,
1995(2) 1994
--------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Year $ 9.77 $ 10.00
--------------------------------
Income From Investment Operations
Net Investment Income .11 .03
Net Gains or Losses on Securities (both realized and unrealized) 3.43 (.26)
--------------------------------
Total From Investment Operations 3.54 (.23)
--------------------------------
Less Distributions
Dividends (from net investment income) (.01) --
Distributions (from capital gains) (.07) --
--------------------------------
Total Distributions (.08) --
--------------------------------
Net Asset Value, End of Year $ 13.23 $ 9.77
--------------------------------
Total Return+ +36.47% -2.30%(4)
--------------------------------
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $ 207.5 $ 9.4
--------------------------------
Ratio of Expenses to Average Net Assets 1.09% 1.75%(5)
--------------------------------
Ratio of Net Investment Income to Average Net Assets .97% .45%(5)
--------------------------------
Portfolio Turnover Rate(6) 76% 90%
--------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
11
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Partners 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)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 Partners 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. 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.
12
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees of
Neuberger&Berman Advisers Management Trust and
Shareholders of Partners Portfolio
We have audited the accompanying statement of assets and liabilities of the
Partners 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, 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
Partners 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
13
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
COMMON STOCKS (95.2%)
AEROSPACE (1.1%)
20,000 Lockheed Martin $ 1,580,000
------------
AUTO/TRUCK REPLACEMENT PARTS (1.0%)
30,000 Goodyear Tire & Rubber 1,361,250
------------
AUTOMOTIVE (0.9%)
45,000 Ford Motor 1,305,000
------------
BANKING & FINANCIAL SERVICES (11.1%)
40,000 American Express 1,655,000
28,000 Bank of New York 1,365,000
60,000 Capital One Financial 1,432,500
45,000 CITICORP 3,026,250
83,200 Countrywide Credit Industries 1,809,600
90,000 CWM Mortgage Holdings 1,530,000
15,000 First Interstate Bancorp 2,047,500
35,000 First USA 1,553,125
30,000 State Street Boston 1,350,000
------------
15,768,975
------------
BUILDING, CONSTRUCTION & REFURNISHING (0.6%)
26,600 USG Corp. 798,000(2)
------------
CHEMICALS (5.1%)
35,000 duPont 2,445,625
9,500 Monsanto Co. 1,163,750
61,900 W.R. Grace 3,659,837
------------
7,269,212
------------
DIVERSIFIED (0.5%)
2,000 Mannesmann AG ADR 638,171
------------
ELECTRONICS (3.2%)
40,000 Loral Corp. 1,415,000
35,000 Perkin-Elmer 1,321,250
25,000 Sundstrand Corp. 1,759,375
------------
4,495,625
------------
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
ENTERTAINMENT (4.4%)
25,000 Cablevision Systems $ 1,356,250(2)
22,000 Mirage Resorts 759,000(2)
47,000 Royal Caribbean Cruises 1,034,000
75,000 Station Casinos 1,096,875(2)
55,000 Time Warner 2,083,125
------------
6,329,250
------------
FOOD & DRUG STORES (3.4%)
94,200 Revco D.S. 2,661,150(2)
22,500 Warner-Lambert 2,185,312
------------
4,846,462
------------
FOOD & TOBACCO (5.4%)
30,000 American Brands 1,338,750
62,500 Interstate Bakeries 1,398,438
60,000 RJR Nabisco Holdings 1,852,500
70,000 Tyson Foods 1,828,750
40,000 UST Inc. 1,335,000
------------
7,753,438
------------
FOOD PRODUCTS (0.9%)
25,000 IBP, Inc. 1,262,500
------------
HEALTH CARE (8.0%)
47,500 Columbia/HCA Healthcare 2,410,625
80,000 Humana Inc. 2,190,000(2)
70,000 OrNda Healthcorp 1,627,500(2)
35,200 Pharmacia & Upjohn 1,364,000
51,000 Value Health 1,402,500(2)
74,100 Wellpoint Health Networks 2,380,463(2)
------------
11,375,088
------------
INDUSTRIAL GOODS & SERVICES (6.1%)
23,000 AK Steel Holding 787,750
40,000 Crown Cork & Seal 1,670,000(2)
20,000 Eaton Corp. 1,072,500
</TABLE>
14
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
60,000 LTV Corp. $ 825,000(2)
100,000 Owens-Illinois 1,450,000(2)
80,000 Westinghouse Electric 1,320,000
38,300 XTRA Corp. 1,627,750
------------
8,753,000
------------
INSURANCE (7.5%)
22,000 ACE Ltd. 874,500
15,000 CIGNA Corp. 1,548,750
75,000 Equitable Cos. 1,800,000
41,000 EXEL Ltd. 2,501,000
25,000 Mid Ocean Ltd. 928,125
35,000 Orion Capital 1,518,125
30,000 Progressive Corp. 1,466,250
------------
10,636,750
------------
MEDIA (4.7%)
110,000 American Media 467,500
140,000 Comcast Corp. Class A Special 2,546,250
15,000 Gannett Co. 920,625
55,000 Infinity Broadcasting 2,048,750(2)
52,900 United International Holdings 780,275(2)
------------
6,763,400
------------
MINING (0.4%)
15,000 Freeport-McMoRan 555,000
------------
OIL & GAS (3.5%)
47,500 Apache Corp. 1,401,250
30,000 Louisiana Land & Exploration 1,286,250
20,000 Tejas Gas 1,057,500(2)
45,000 Unocal Corp. 1,310,625
------------
5,055,625
------------
PAPER & FOREST PRODUCTS (5.3%)
35,000 Bowater Inc. 1,242,500
30,000 Consolidated Papers 1,683,750
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
30,000 Fort Howard $ 675,000(2)
20,000 Georgia-Pacific 1,372,500
31,200 Kimberly-Clark 2,581,800
------------
7,555,550
------------
RAILROADS (1.7%)
160,000 Canadian National Railway 2,400,000(2)
------------
REAL ESTATE/REIT (5.5%)
35,000 Beacon Properties 805,000
35,500 Crescent Real Estate Equities 1,211,438
30,000 Hospitality Properties Trust 802,500
125,000 Host Marriott 1,656,250(2)
67,000 Risk Capital Holdings 1,566,125(2)
23,000 Simon Property Group 560,625
25,000 Starwood Lodging Trust 743,750
15,000 Vornado Realty Trust 562,500
------------
7,908,188
------------
RESTAURANTS (0.4%)
50,000 Darden Restaurants 593,750
------------
RETAILING & APPAREL (5.1%)
50,000 Ann Taylor Stores 512,500(2)
50,000 Harcourt General 2,093,750
40,000 Neiman-Marcus Group 940,000
142,100 Price/Costco 2,167,025(2)
65,000 Stop & Shop 1,503,125(2)
------------
7,216,400
------------
TECHNOLOGY (8.2%)
27,000 Compaq Computer 1,296,000(2)
35,000 Micron Technology 1,386,875
83,300 National Semiconductor 1,853,425(2)
51,800 Texas Instruments 2,680,650
10,000 Varian Associates 477,500
</TABLE>
15
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
50,000 Vodafone Group ADR $ 1,762,500
125,000 Western Digital 2,234,375(2)
------------
11,691,325
------------
TRANSPORTATION (1.2%)
58,300 Harley-Davidson 1,676,125
------------
TOTAL COMMON STOCKS
(COST $129,668,710) 135,588,084
------------
<CAPTION>
Principal Market
Amount Value(1)
- --------- ------------
<C> <S> <C>
U.S. TREASURY SECURITIES
(5.6%)
$8,100,000 U.S. Treasury Bills, 4.965%,
due 5/30/96 (COST $7,932,431) $ 7,929,576
------------
TOTAL INVESTMENTS (100.8%)
(COST $137,601,141) 143,517,660(3)
Liabilities, less cash,
receivables and other assets
[(0.8%)] (1,114,590)
------------
TOTAL NET ASSETS (100.0%) $142,403,070
------------
</TABLE>
16
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Partners Investments
1)Investment securities of the Series are valued at the last sales price;
securities for which no sales were reported, unless otherwise noted, are
valued at the mean between the closing bid and asked prices. Short-term debt
securities with less than sixty days until maturity at the time of purchase
are valued at cost which, when combined with interest earned, approximates
market value.
2)Non-income producing security.
3)At December 31, 1995, the cost of investments for Federal income tax purposes
was $137,679,245. Gross unrealized appreciation of investments was $10,229,995
and gross unrealized depreciation of investments was $4,391,580, resulting in
net unrealized appreciation of $5,838,415, based on cost for Federal income
tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
December 31,
1995
--------------
<S> <C>
ASSETS
Investments in securities, at market value* (Note
A) -- see Schedule of Investments $ 143,517,660
Cash 13,945
Receivable for securities sold 1,251,713
Dividends receivable 152,996
Deferred organization costs (Note A) 22,817
Prepaid expenses 1,175
--------------
144,960,306
--------------
LIABILITIES
Payable for securities purchased 2,467,217
Payable to investment manager (Note B) 62,515
Accrued expenses 23,695
Accrued organization costs (Note A) 3,809
--------------
2,557,236
--------------
NET ASSETS Applicable to Investors' Beneficial Interests $ 142,403,070
--------------
NET ASSETS consist of:
Paid-in capital $ 136,486,551
Net unrealized appreciation in value of investments 5,916,519
--------------
NET ASSETS $ 142,403,070
--------------
*Cost of investments $ 137,601,141
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
For the
Period from
May 1, 1995
(Commencement
of Operations)
to December 31,
1995
----------------
<S> <C>
INVESTMENT INCOME
Income:
Dividend income $ 841,806
Interest income 304,406
Foreign taxes withheld (Note A) (4,153)
----------------
Total income 1,142,059
----------------
Expenses:
Investment management fee (Note B) 312,581
Custodian fees 48,100
Auditing fees 8,202
Accounting fees 6,667
Amortization of deferred organization and initial
offering expenses (Note A) 3,531
Trustees' fees and expenses 1,561
Legal fees 1,129
Insurance expense 614
Miscellaneous 47
----------------
Total expenses 382,432
----------------
Net investment income 759,627
----------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments sold 8,299,593
Net unrealized appreciation of investments 5,075,724
----------------
Net gain on investments 13,375,317
----------------
Net increase in net assets resulting from operations $ 14,134,944
----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Partners 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 $ 759,627
Net realized gain on investments sold 8,299,593
Net unrealized appreciation of investments 5,075,724
----------------
Net increase in net assets resulting from operations 14,134,944
----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Additions 110,846,764
Reductions (14,612,936)
----------------
Net increase in net assets resulting from transactions
in investors' beneficial interests 96,233,828
----------------
NET INCREASE IN NET ASSETS 110,368,772
NET ASSETS:
Initial contribution 32,034,298
----------------
End of period $ 142,403,070
----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Partners Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Partners 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. Dividend income is recorded on the
ex-dividend date and 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) FOREIGN TAXES: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
6) 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 $22,817. The accrued organization costs are payable to
Neuberger& Berman Management Incorporated ("Management"), the investment
manager of the Series.
7) 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 .55% of the
first $250 million of the Series' average daily net assets, .525% of the next
$250 million, .50% of the next $250 million, .475% of the next $250 million,
.45% of the next $500 million, and .425% of average daily net assets in excess
of $1.5 billion.
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.
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Partners 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 less than .01% 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 $174,649,155 and $77,960,531, respectively.
During the period from May 1, 1995 (commencement of operations) to December
31, 1995, brokerage commissions on securities transactions amounted to $390,810,
of which Neuberger received $243,164, and other brokers received $147,646.
22
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
Period from
May 1, 1995
(Commencement
of Operations)
to December 31,
1995
----------------
<S> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses .67%(1)
----------------
Net Investment Income 1.34%(1)
----------------
Portfolio Turnover Rate 98%
----------------
Average Commission Rate Paid $0.0594
----------------
Net Assets, End of Period (in millions) $142.4
----------------
</TABLE>
1) Annualized.
23
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees of
Advisers Managers Trust and
Owners of Beneficial Interest of AMT Partners Investments
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of the AMT Partners Investments, one of
the series comprising Advisers Managers Trust as of December 31, 1995, and the
related statement 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 Partners 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
24
