<PAGE>
BALANCED PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1996
NBAMTSA30696
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust August 9, 1996
- --------------------------------------------------------------------------------
Balanced Portfolio
With approximately 60% of its assets in growth stocks and 40% in short- to
intermediate-term bonds, the Balanced Portfolio experienced mixed results during
the first half of 1996 due to a strong stock market coinciding with a very weak
bond market.
GROWTH PORTION
During the Semi-Annual Report period between January 1, 1996 and June 30,
1996 our best-performing sectors were financial services, restaurants, and
selected consumer/retail stocks. One of our best performers was CKE Restaurants,
which enjoyed strong earnings growth due to robust sales of several new menu
items. Other strong performers in the restaurant sector were Cheesecake Factory,
HomeTown Buffet, and Sonic Corp. The common theme of our restaurant investments
was the very high quality of food/service consumers felt they received for a
reasonable price.
The financial sector provided many good performers, in spite of rising
interest rates. Bear Stearns and Morgan Stanley Group benefited from strong
securities markets and an increase in business which included a high level of
merger transactions. First USA and Capital One Financial enjoyed very strong
earnings growth, as receivables continued to grow and costs were moderated.
Within the consumer/retail sector, Nine West and Viking Office Products were
superior performers. Nine West has consolidated its position as the dominant
factor in the shoe market with its recent acquisition of U.S. Shoe. Viking
Office Products is the leading company in the mail order office supply business.
Its growth accelerated as it expanded its operations into Europe.
Two lagging sectors were health care and technology. The HMO (Health
Maintenance Organization) industry was our major concentration in health care.
After rebounding 50% from mid-year 1995 lows into February 1996, the group fell
from 25%-35% off its 1996 price levels through June due to concerns regarding
increased medical costs and pricing competition. First quarter earnings were
slightly below expectations for most companies. HMO member growth continued at a
15%-18% rate, and our HMO companies were growing at a 20%-25% annual rate over
the first half of 1996. Through July, those same companies were still selling at
only 13-14 times their estimated 1997 earnings. This is a very compelling
valuation in our opinion.
The technology sector rebounded from its January 1996 lows into April but
retested those earlier low prices toward the end of the Semi-Annual Report
period as memory pricing continued to weaken. End-user demand for many
subsectors of the broad technology industry remains robust as lower prices
stimulate demand. Valuation is very compelling relative to growth in this
sector. Based on this assumption, we added to some of our positions in
semiconductor equipment and client server software companies.
Another addition to the portfolio, pharmaceuticals manufacturer
Warner-Lambert, has been plagued by a scarcity of new products over the last few
years. This could change next year with the launches of Atorvastatin, a new
cholesterol-lowering agent, and Troglitzone, a new diabetes treatment. In
addition to bringing sales momentum to Warner-Lambert's product line, we look
for these drugs to add significant profit margins to the company. Furthermore,
in this consolidating industry, we feel that Warner-Lambert is an attractive
acquisition candidate.
2
<PAGE>
On the sell side, we made a number of changes to the portfolio over the
Semi-Annual Report period. Both Life Partners Group and U.S. Healthcare were
sold only after they reached prices that we felt fully reflected the upside in
both stocks. We sold Mannesmann AG after it became evident that the company was
not inclined to recognize the value in the cellular part of its business, which
we believed was attractive; the industrial operations that made up the rest of
the company were not growing businesses. We also sold our position in Time
Warner. We felt the company had not acted on management's promises to
shareholders to reduce its debt and focus the company on the more attractive
programming side of the business. We felt that other companies in the cable
business, such as Comcast, which we still owned at the end of June, were more
committed to recognizing the value of their assets that were not reflected in
the market. Furthermore, we have built up positions in the United Kingdom cable
market with stocks such as Comcast UK. These companies are introducing the cable
business to British subscribers for the first time, and offering phone service
that we feel is exceedingly competitive with the rival British Telecom offering.
We continue to believe that stock prices follow earnings over time. We have
positioned the portfolio based upon our belief that the earnings growth of the
companies in the portfolio may exceed that of the overall market. Additionally,
the average stock valuation multiple in the portfolio is equal to the market on
1996 earnings and 10%-15% less than the market based on 1997 projected earnings.
Over time, we feel the market has generally recognized such inconsistencies.
LIMITED MATURITY BOND PORTION
The bond market suffered through a rather dismal six-month period ended June
30, 1996 as the "bears" took over. Interest rates rose dramatically across the
yield curve as U.S. economic growth rebounded, rekindling fears of future
inflationary pressures. Rates on Treasury securities with maturities of 2
through 30 years rose approximately 1.0%, resulting in negative total returns
for any bonds longer than 3 years. The bulk of the rise in rates occurred during
a two-and-a-half week period beginning in mid-February. The sell-off was
initially triggered by Federal Reserve Board Chairman Alan Greenspan's comments
that economic growth was probably stronger than the market was anticipating. The
subsequent Labor Department report that over 700,000 new jobs were created in
February confirmed the market's fears and drove yields higher. The Portfolio's
return was impacted most heavily by the sharp rise in rates, despite the fact
that we shortened the portfolio's duration (duration is a measure of the
portfolio's exposure to interest rate risk) during the first quarter. The
positions in corporate bonds, asset-backed securities and mortgage securities
outperformed Treasuries and offset some of the poor results from Treasury
securities.
We lowered the average portfolio duration of the bond portion from 2.9 years
to 2.5 years during February, and shortened it again to 2.3 years before the end
of the first quarter. These moves were made in response to our view that the
positive bond market environment that prevailed in 1995 had come to an end with
the dramatic turnaround from the economy's weak fourth quarter 1995 performance.
Our view this summer is that while it is yet to be seen if inflation will
re-ignite, the market may continue to push rates higher until growth slows and
some slack in both labor and industrial capacity is created. With that view in
mind, we ended the first half of 1996 with a cautious duration position of 2.2
years.
We added significantly to our corporate position, increasing our allocation
to 50% from 26% of the bond portion of the portfolio. While the corporate bond
market as a whole remained relatively expensive, we were still able to find
individual bonds that offered good relative value. These attractive names tended
to be lower investment grade or just below investment grade credit quality. Our
more optimistic view of the economy was also a key factor in our decision to
increase the corporate allocation in the portfolio, since we felt many
corporations would experience higher earnings which in turn would ensure bond
payments to investors (and perhaps credit-quality upgrades), reducing the
3
<PAGE>
probability of defaults. We maintained a relatively heavy 23% weighting of the
bond portion in asset-backed securities which provided incremental yield and
AAA-rated credit quality. We closely followed the rise in consumer delinquencies
on the collateral backing for these bonds and were convinced that the credit
risk on these issues was extremely low.
Our mortgage position was doubled to 4% of the bond portion of the portfolio
by the end of June in response to our changed view of interest rates in
February. Mortgage bonds tend to hold up better in rising rate environments
because homeowners are less tempted to refinance their mortgages, a consumer
action that often causes mortgage bonds to prepay and lose value.
The use of futures to manage interest rate risk was our main use of
derivatives within the portfolio over the Semi-Annual Report period. We wanted
to offset some of the interest rate risk in our heavy corporate bond weighting.
We accomplished this hedging strategy by holding a short position(1) in the
futures contracts(2) of 5- and 10-year Treasuries.
We believe the U.S. economy is still in excellent shape, and corporate credit
quality may remain at a relatively high level, supporting corporate bond values.
We also believe that interest rates could continue to rise over the near term in
response to what might be a cyclical upturn in inflation. However, we believe
the long-term secular disinflationary trend that we've seen in recent years
remains intact, and eventually bonds should once again provide income and total
return solidly above the levels of inflation.
Mark Goldstein Thomas Wolfe
PORTFOLIO CO-MANAGER PORTFOLIO CO-MANAGER
AMT Balanced AMT Balanced
Investments Investments
(1)A technique used to take advantage of an anticipated decline in bond prices.
(2)Agreements to buy or sell a specific amount of a bond on a stipulated future
date.
4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Balanced Portfolio
<TABLE>
<CAPTION>
June 30,
1996
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 171,341,773
Receivable for Trust shares sold 92,459
--------------
171,434,232
--------------
LIABILITIES
Payable for Trust shares redeemed 450,662
Accrued expenses 49,779
Payable to administrator (Note B) 42,589
--------------
543,030
--------------
NET ASSETS at value $ 170,891,202
--------------
NET ASSETS consist of:
Par value $ 11,131
Paid-in capital in excess of par value 152,141,210
Accumulated undistributed net investment
income 1,484,182
Accumulated net realized gains on investment 7,157,704
Net unrealized appreciation in value of
investment 10,096,975
--------------
NET ASSETS at value $ 170,891,202
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 11,131,188
--------------
NET ASSET VALUE, offering and redemption price per
share $15.35
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
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Balanced Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1996
(UNAUDITED)
--------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 2,365,480
--------------
Expenses:
Administration fee (Note B) 248,761
Shareholder reports 34,550
Registration and filing fees 20,777
Shareholder servicing agent fees 10,909
Legal fees 8,707
Custodian fees 4,982
Trustees' fees and expenses 1,659
Auditing fees 884
Miscellaneous 2,634
Expenses from Series (Notes A & B) 539,314
--------------
Total expenses 873,177
--------------
Net investment income 1,492,303
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
FROM SERIES (NOTE A)
Net realized gain on investment securities 7,229,016
Net realized gain on financial futures
contracts 107,697
Change in net unrealized appreciation of
investment securities (3,943,839)
Net unrealized depreciation of financial
futures contracts (85,844)
--------------
Net gain on investments from Series (Note
A) 3,307,030
--------------
Net increase in net assets resulting from
operations $ 4,799,333
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
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Balanced Portfolio
<TABLE>
<CAPTION>
Six Months
Ended Year
June 30, Ended
1996 December 31,
(UNAUDITED) 1995
-------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 1,492,303 $ 3,926,849
Net realized gain on investments
from Series (Note A) 7,336,713 21,146,057
Change in net unrealized
appreciation of investments from
Series (Note A) (4,029,683) 15,924,527
-------------------------------
Net increase in net assets resulting
from operations 4,799,333 40,997,433
-------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (3,827,457) (3,410,734)
Net realized gain on investments (21,284,396) (1,096,307)
-------------------------------
Total distributions to shareholders (25,111,853) (4,507,041)
-------------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 31,709,207 23,185,195
Proceeds from reinvestment of
dividends and distributions 25,111,853 4,507,041
Payments for shares redeemed (10,038,429) (99,036,376)
-------------------------------
Net increase (decrease) from Trust
share transactions 46,782,631 (71,344,140)
-------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 26,470,111 (34,853,748)
NET ASSETS:
Beginning of period 144,421,091 179,274,839
-------------------------------
End of period $ 170,891,202 $ 144,421,091
-------------------------------
Accumulated undistributed net
investment income at end of period $ 1,484,182 $ 3,819,336
-------------------------------
NUMBER OF TRUST SHARES:
Sold 1,861,208 1,410,375
Issued on reinvestment of dividends
and distributions 1,645,600 304,120
Redeemed (620,012) (5,822,286)
-------------------------------
Net increase (decrease) in shares
outstanding 2,886,796 (4,107,791)
-------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Balanced Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Balanced Portfolio (the "Fund") is a separate operating 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 operating series (the "Funds"). The
Trust is registered as a diversified, open-end management investment company
under the Investment Company Act of 1940, as amended, and its shares are
registered under the Securities Act of 1933, as amended. 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 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 AMT Balanced 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 June 30, 1996). 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: The Fund records its investment in the Series at value.
Investment securities held by the Series 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 investment company taxable income and net capital gains (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 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 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.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Balanced Portfolio
5) 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.
6) 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 FEES, DISTRIBUTION ARRANGEMENTS, 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 and are
also offered directly to qualified pension and retirement plans.
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 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. 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 limit the Fund's expenses by
reimbursing 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, and transaction costs) 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 60 days'
prior written notice to the Fund, as it was for its predecessor prior to the
conversion. For the six months ended June 30, 1996, no reimbursement to the Fund
was required.
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 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.
The Series has an expense offset arrangement included in its custodian
contract. The impact of this arrangement reflected in the Statement of
Operations, under the caption Expenses from Series, is less than .01% of the
Fund's average daily net assets.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Balanced Portfolio
NOTE C -- INVESTMENT TRANSACTIONS:
During the six months ended June 30, 1996, additions and reductions in the
Fund's investment in its Series amounted to $24,618,490 and $61,730,789,
respectively.
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Fund without audit by independent auditors. Annual reports
contain audited financial statements.
10
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Balanced Portfolio
The following table includes selected data for a share outstanding throughout
each period 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>
Six Months Ended
June 30,
1996 Year Ended December 31,
(UNAUDITED)(2) 1995(2) 1994 1993 1992 1991
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.52 $14.51 $ 15.62 $ 14.90 $ 14.16 $ 11.72
-------------------------------------------------------------------
Income From Investment Operations
Net Investment Income .19 .32 .30 .34 .40 .47
Net Gains or Losses on Securities (both
realized and unrealized) .33 3.06 (.80) .61 .72 2.16
-------------------------------------------------------------------
Total From Investment Operations .52 3.38 (.50) .95 1.12 2.63
-------------------------------------------------------------------
Less Distributions
Dividends (from net investment income) (.41) (.28) (.23) (.20) (.19) (.19)
Distributions (from capital gains) (2.28) (.09) (.38) (.03) (.19) --
-------------------------------------------------------------------
Total Distributions (2.69) (.37) (.61) (.23) (.38) (.19)
-------------------------------------------------------------------
Net Asset Value, End of Period $15.35 $17.52 $ 14.51 $ 15.62 $ 14.90 $ 14.16
-------------------------------------------------------------------
Total Return+ +3.06%(3) +23.76% -3.36% +6.45% +8.06% +22.68%
-------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $170.9 $144.4 $ 179.3 $ 161.1 $ 87.1 $ 28.3
-------------------------------------------------------------------
Ratio of Expenses to Average Net Assets 1.05%(4) .99% .91% .90% .95% 1.10%
-------------------------------------------------------------------
Ratio of Net Investment Income to Average Net
Assets 1.79%(4) 1.99% 1.91% 1.96% 2.33% 3.00%
-------------------------------------------------------------------
Portfolio Turnover Rate(5) -- 21% 55% 114% 82% 69%
-------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
11
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Balanced Portfolio
1)The per share amounts which are shown have been computed based on the average
number of shares outstanding during each period.
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)Not annualized.
4)Annualized.
5)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 Balanced 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 period
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 periods shown. Qualified Plans that are direct
shareholders of the Fund are not affected by insurance charges.
12
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
COMMON STOCKS (61.9%)
CHEMICALS (1.0%)
17,000 Hercules Inc. $ 939,250
21,000 SGL Carbon ADR 803,250
------------
1,742,500
------------
COMMUNICATIONS (7.6%)
60,000 Airtouch Communications 1,695,000
1,162,800 Australis Media (Ordinary
Shares) 392,930
110,000 Comcast Corp. Class A Special 2,035,000
110,000 Comcast UK Cable Partners
Limited 1,402,500
10,000 ECI Telecommunications 232,500
60,000 International CableTel 1,770,000
75,000 Tele-Communications, Inc.
Class A 1,359,375
16,250 Tele-Communications, Inc.
Class A Liberty Media Group 430,625
50,000 Vanguard Cellular Systems 1,087,500
20,000 Viacom Inc. Class B 777,500
52,000 Vodafone Group ADR 1,917,500
------------
13,100,430
------------
CONSUMER GOODS & SERVICES (5.0%)
65,000 Authentic Fitness 1,210,625
56,000 CUC International 1,988,000
30,000 Franklin Quest 622,500
14,000 Industrie Natuzzi ADR 717,500
14,000 Luxottica Group ADR 1,027,250
20,000 Nine West 1,022,500
65,000 Nu-Kote Holding 1,080,625
100,000 Supercuts Inc. 850,000
------------
8,519,000
------------
DRUGS & HEALTH CARE (6.2%)
80,000 Coventry Corp. 1,260,000
95,000 Healthsource Inc. 1,662,500
27,100 Humana Inc. 484,413
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
21,500 i-STAT Corp. $ 405,812
20,000 PacifiCare Health Systems
Class B 1,355,000
24,000 R.P. Scherer 1,089,000
30,000 Teva Pharmaceutical ADR 1,136,250
45,000 United Healthcare 2,272,500
18,000 Warner-Lambert 990,000
------------
10,655,475
------------
ENTERTAINMENT (6.0%)
55,000 Argosy Gaming 405,625
77,900 GTECH Holdings 2,307,787
100,000 Harrah's Entertainment 2,825,000
125,000 Players International 1,218,750
36,000 Promus Hotel 1,066,500
83,000 Showboat, Inc. 2,500,375
------------
10,324,037
------------
FINANCIAL SERVICES (9.1%)
45,150 Bear Stearns 1,066,669
70,000 Capital One Financial 1,995,000
36,000 CITICORP 2,974,500
30,000 Finova Group 1,462,500
47,000 First USA 2,585,000
52,500 MBNA Corp. 1,496,250
37,000 Morgan Stanley Group 1,817,625
9,000 Wells Fargo 2,149,875
------------
15,547,419
------------
HOME BUILDERS (0.2%)
50,000 Schuler Homes 356,250
------------
INSURANCE (5.0%)
30,000 ACE Ltd. 1,410,000
15,000 EXEL Ltd. 1,057,500
55,000 Highlands Insurance 1,031,250
63,000 PennCorp Financial Group 2,000,250
35,000 Sphere Drake Holdings 358,750
</TABLE>
13
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
15,000 Transatlantic Holdings $ 1,051,875
36,000 Travelers Group 1,642,500
------------
8,552,125
------------
PAPER (0.8%)
100,000 Abitibi-Price 1,362,500
------------
REAL ESTATE (0.1%)
5,500 JDN Realty 123,062
------------
RESTAURANTS (5.1%)
50,000 Au Bon Pain 375,000
65,500 Cheesecake Factory 1,801,250
65,000 CKE Restaurants 1,657,500
80,000 HomeTown Buffet 1,130,000
69,000 IHOP Corp. 1,863,000
65,000 Sonic Corp. 1,576,250
70,000 Spaghetti Warehouse 376,250
------------
8,779,250
------------
SPECIALTY RETAIL (5.8%)
26,000 Eckerd Corp. 588,250
135,000 General Nutrition 2,362,500
85,000 Lechters Inc. 552,500
60,000 Office Depot 1,222,500
15,000 Revco D.S. 358,125
52,000 Rite Aid 1,547,000
75,000 Sports & Recreation 684,375
65,000 Staples Inc. 1,267,500
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
60,000 Tops Appliance City $ 105,000
38,000 Viking Office Products 1,192,250
------------
9,880,000
------------
TECHNOLOGY (9.3%)
22,000 Applied Materials 671,000
35,000 Intel Corp. 2,570,313
60,000 KLA Instruments 1,395,000
55,000 Micron Technology 1,423,125
30,000 Motorola, Inc. 1,886,250
30,000 Nokia Corp. ADR 1,110,000
17,000 SAP AG (Ordinary Shares) 2,521,210
35,000 Seagate Technology 1,575,000
45,000 Texas Instruments 2,244,375
40,000 Xeikon N.V. ADR 455,000
------------
15,851,273
------------
TRANSPORTATION (0.7%)
48,000 RailTex Inc. 1,236,000
------------
TOTAL COMMON STOCKS (COST
$94,849,940) 106,029,321
------------
<CAPTION>
Principal
Amount
- ---------
<C> <S> <C>
CONVERTIBLE BONDS (0.0%)
$ 165,000 Australis Media, Cv. Deb.
(COST $124,905) 55,756
------------
</TABLE>
14
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- ---------- -------- -------- ----------------
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES
(0.1%)
$ 150,000 U.S. Treasury Notes, 6.375%,
due 6/30/97 (COST $157,031) TSY TSY $ 150,866
----------------
U.S. GOVERNMENT AGENCY
SECURITIES (8.1%)
4,705,000 Federal Home Loan Mortgage
Corp., Discount Notes, 5.17%,
due 7/5/96 AGY AGY 4,700,201
7,400,000 Federal National Mortgage
Association, Discount Notes,
5.28%, due 8/14/96 AGY AGY 7,349,088
1,880,000 Federal Home Loan Mortgage
Corp., Discount Notes, 5.28%,
due 8/19/96 AGY AGY 1,865,693
----------------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES (COST $13,921,032) 13,914,982
----------------
MORTGAGE-BACKED SECURITIES
(1.5%)
FEDERAL NATIONAL MORTGAGE ASSOCIATION
161,334 Balloon Payment, Certificates,
9.00%, due 10/1/97-6/1/98 AGY AGY 164,873
19,653 Balloon Payment, Certificates,
8.50%, due 11/1/98 AGY AGY 20,052
1,290,000 Pass-Through Certificates,
7.50%, TBA, 15 Year Maturity AGY AGY 1,296,047
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
153,579 Pass-Through Certificates,
10.00%, due 12/15/17-5/15/19 AGY AGY 167,498
797,607 Pass-Through Certificates,
9.50%, due 4/15/16-10/15/20 AGY AGY 852,442
----------------
TOTAL MORTGAGE-BACKED
SECURITIES (COST $2,498,544) 2,500,912
----------------
ASSET-BACKED SECURITIES (9.4%)
448,701 USAA Auto Loan Grantor Trust,
Automobile Loan Pass-Through
Certificates, Ser. 1994-1,
5.00%, due 11/15/99 Aaa AAA 447,041
1,712,838 Premier Auto Trust, Ser.
1994-2, Class A-3, 6.35%, due
5/2/00 Aaa AAA 1,717,189
603,597 Caterpillar Financial Asset
Trust, Ser. 1994-A, Class A-2,
6.10%, due 6/25/00 Aaa AAA 604,472
533,080 Daimler-Benz Vehicle Trust,
Ser. 1994-A, Class A, 5.95%,
due 12/15/00 Aaa AAA 532,761
1,053,298 Chase Manhattan Grantor Trust,
Automobile Loan Pass-Through
Certificates, Ser. 1995-A,
6.00%, due 9/17/01 Aaa AAA 1,050,822
1,109,521 Case Equipment Loan Trust,
Ser. 1995-A, 7.30%, due
3/15/02 Aaa AAA 1,125,942
710,000 Navistar Financial Owner
Trust, Ser. 1996-A, Class A-2,
6.35%, due 11/15/02 Aaa AAA 708,864
1,310,000 Banc One Auto Grantor Trust,
Ser. 1996-B, Class A, 6.55%,
due 2/15/03 Aaa AAA 1,313,681
1,350,000 Ford Credit Auto Loan Master
Trust, Auto Loan Certificates,
Ser. 1996-1, 5.50%, due
2/15/03 Aaa AAA 1,284,107
4,000,000 NationsBank Credit Card Master
Trust, Ser. 1995-1, Class A,
6.45%, due 4/15/03 Aaa AAA 3,980,960
1,610,000 ADVANTA Credit Card Master
Trust II, Ser. 1995-F, Class
A-1, 6.05%, due 8/1/03 Aaa AAA 1,574,387
1,610,000 Standard Credit Card Master
Trust I, Credit Card
Participation Certificates,
Ser. 1994-4, Class A, 8.25%,
due 11/7/03 Aaa AAA 1,708,049
----------------
TOTAL ASSET-BACKED SECURITIES
(COST $16,213,879) 16,048,275
----------------
</TABLE>
15
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- ---------- -------- -------- ----------------
<C> <S> <C> <C> <C>
BANKS & FINANCIAL INSTITUTIONS
(6.4%)
$1,000,000 Deutsche Bank, Yankee C.D.,
7.498%, due 1/21/97 Aaa AAA $ 1,009,830
1,000,000 BankAmerica Corp., Corporate
Notes, 7.50%, due 3/15/97 A1 A+ 1,007,740
1,700,000 Chase Manhattan Corp., Senior
Notes, 6.625%, due 1/15/98 A1 A 1,704,335
1,325,000 Alco Capital Resource, Inc.,
Medium-Term Notes, Ser. B,
5.46%, due 2/22/99 Baa1 A 1,285,144
2,000,000 First USA Bank, Medium-Term
Deposit Notes, 6.375%, due
10/23/00 Baa2 BBB- 1,948,940
1,140,000 NationsBank, Senior
Medium-Term Notes, Ser. D,
5.85%, due 1/17/01 A2 A 1,091,561
800,000 Bear Stearns Cos. Inc., Senior
Notes, 5.75%, due 2/15/01 A2 A 759,952
1,420,000 Capital One Bank, Bank Notes,
5.95%, due 2/15/01 Baa3 BBB- 1,351,371
925,000 Goldman Sachs Group, L.P.,
Global Notes, 6.75%, due
2/15/06 A1 A+ 876,993(2)
----------------
TOTAL BANKS & FINANCIAL
INSTITUTIONS (COST
$11,440,831) 11,035,866
----------------
CORPORATE DEBT SECURITIES
(12.7%)
250,000 AT&T Capital Corp.,
Medium-Term Notes, 7.07%, due
11/18/96 Aa3 AA 250,580
1,500,000 Occidental Petroleum Corp.,
Medium-Term Notes, 5.85%, due
11/9/98 Baa3 BBB 1,472,850
1,500,000 Lockheed Martin Corp., Notes,
6.55%, due 5/15/99 A3 BBB+ 1,495,590
3,000,000 Xerox Credit Corp.,
Medium-Term Notes, 6.84%, due
6/1/00 A2 A 2,960,460
1,000,000 Ford Motor Credit Co.,
Medium-Term Notes, 6.84%, due
8/16/00 A1 A+ 999,160
280,000 Premark International, Inc.,
Notes, 10.50%, due 9/15/00 Baa2 BBB 313,510
520,000 Chesapeake Corp., Notes,
10.375%, due 10/1/00 Baa3 BBB 582,884
1,500,000 Sears Roebuck Acceptance
Corp., Medium-Term Notes, Ser.
I, 6.42%, due 10/10/00 A2 A- 1,470,345
2,000,000 General Motors Acceptance
Corp., Medium-Term Notes,
8.125%, due 3/1/01 A3 A- 2,091,760
950,000 Loewen Group International,
Inc., Senior Guaranteed Notes,
Ser. 1, 7.50%, due 4/15/01 Ba1(3) BB+(3) 934,563(2)
960,000 Tele-Communications, Inc.,
Senior Notes, 9.25%, due
4/15/02 Ba1 BBB- 1,017,091
630,000 Tenet Healthcare Corp., Senior
Notes, 9.625%, due 9/1/02 Ba1 BB 663,863
800,000 Federated Department Stores,
Inc., Senior Notes, 8.125%,
due 10/15/02 Ba1 BB- 788,408
1,100,000 Viacom, Senior Notes, 6.75%,
due 1/15/03 Ba2(4) BB+(4) 1,043,790
1,070,000 Owens-Illinois, Inc., Senior
Debentures, 11.00%, due
12/1/03 Ba3(3) BB(3) 1,147,575
1,015,000 Duty Free International, Inc.,
Notes, 7.00%, due 1/15/04 Ba2 BBB- 937,606
150,000 Container Corp. of America,
Senior Notes, Ser. A, 11.25%,
due 5/1/04 B1 B+ 154,500
525,000 Burlington Industries, Inc.,
Notes, 7.25%, due 9/15/05 Baa3 BBB- 496,335
150,000 Cablevision Systems Corp.,
Senior Subordinated Notes,
9.875%, due 5/15/06 B2 B 144,375
90,000 JCAC, Inc., Senior
Subordinated Notes, 10.125%,
due 6/15/06 B2 B 89,437
</TABLE>
16
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- ---------- -------- -------- ----------------
<C> <S> <C> <C> <C>
$1,000,000 Time Warner Inc., Notes,
8.11%, due 8/15/06 Ba1 BBB- $ 996,670
1,505,000 Tenneco Inc., Debentures,
10.00%, due 3/15/08 Baa2 BBB- 1,794,517
----------------
TOTAL CORPORATE DEBT
SECURITIES (COST $22,192,866) 21,845,869
----------------
SHORT-TERM CORPORATE NOTES
(0.4%)
620,000 General Electric Capital
Corp., 5.20%, due 7/1/96
(COST $620,000) P-1 A-1+ 620,000(5)
----------------
TOTAL INVESTMENTS (100.5%)
(COST $162,019,028) 172,201,847(6)
Liabilities, less cash,
receivables and other assets
[(0.5%)] (860,073)
----------------
TOTAL NET ASSETS (100.0%) $ 171,341,774
----------------
</TABLE>
17
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
1)Investments in equity 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. Investments
in limited maturity debt securities 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 or, if quotations are not available, by a method that the trustees
of Advisers Managers Trust believe accurately reflects fair value. Short-term
debt securities with less than 60 days until maturity at the time of purchase
may be valued at cost which, when combined with interest earned, approximates
market value.
2)Security exempt from registration under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration, normally to
qualified institutional buyers under Rule 144A. At June 30, 1996, these
securities amounted to $1,811,556 or 1.1% of net assets.
3)Rated BBB- by Duff & Phelps Credit Rating Co.
4)Rated BBB- by Fitch Investors Services, Inc.
5)At cost, which approximates market value.
6)At June 30, 1996, the cost of investments for Federal income tax purposes was
$162,082,746. Gross unrealized appreciation of investments was $20,631,745 and
gross unrealized depreciation of investments was $10,512,644, resulting in net
unrealized appreciation of $10,119,101, based on cost for Federal income tax
purposes.
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
June 30,
1996
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 172,201,847
Cash 11,054
Dividends and interest receivable 815,304
Receivable for securities sold 635,627
Deferred organization costs (Note A) 39,774
Prepaid expenses and other assets 6,047
--------------
173,709,653
--------------
LIABILITIES
Payable for securities purchased 2,235,850
Payable to investment manager (Note B) 78,110
Payable for variation margin (Note A) 32,984
Accrued expenses 20,935
--------------
2,367,879
--------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 171,341,774
--------------
NET ASSETS consist of:
Paid-in capital $ 161,244,799
Net unrealized appreciation in value of
investment securities and financial futures
contracts 10,096,975
--------------
NET ASSETS $ 171,341,774
--------------
*Cost of investments $ 162,019,028
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1996
(UNAUDITED)
--------------
<S> <C>
INVESTMENT INCOME
Income:
Interest income $ 2,051,015
Dividend income 325,059
Foreign taxes withheld (Note A) (10,594)
--------------
Total income 2,365,480
--------------
Expenses:
Investment management fee (Note B) 456,201
Custodian fees (Note B) 56,255
Legal fees 7,337
Amortization of deferred organization and
initial offering expenses (Note A) 5,169
Accounting fees 4,982
Auditing fees 4,832
Insurance expense 2,785
Trustees' fees and expenses 1,734
Miscellaneous 19
--------------
Total expenses 539,314
--------------
Net investment income 1,826,166
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment securities
sold 7,229,016
Net realized gain on financial futures
contracts (Note A) 107,697
Change in net unrealized appreciation of
investment securities (3,943,839)
Net unrealized depreciation of financial
futures contracts (Note A) (85,844)
--------------
Net gain on investments 3,307,030
--------------
Net increase in net assets resulting from
operations $ 5,133,196
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Period from
May 1, 1995
Six Months (Commencement
Ended of Operations)
June 30, to
1996 December 31,
(UNAUDITED) 1995
-------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 1,826,166 $ 3,240,511
Net realized gain on investments
sold 7,336,713 17,910,669
Change in net unrealized
appreciation of investments (4,029,683) 5,494,612
-------------------------------
Net increase in net assets resulting
from operations 5,133,196 26,645,792
-------------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 24,618,490 4,703,935
Reductions (61,730,789) (14,136,898)
-------------------------------
Net decrease in net assets resulting
from transactions in investors'
beneficial interests (37,112,299) (9,432,963)
-------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (31,979,103) 17,212,829
NET ASSETS:
Beginning of period 203,320,877 186,108,048
-------------------------------
End of period $ 171,341,774 $ 203,320,877
-------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Balanced Investments (the "Series") is a separate operating
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 operating 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 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: Investment 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. Interest income, including 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
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 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 June 30, 1996, the unamortized balance of such
expenses amounted to $39,774.
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.
8) FINANCIAL FUTURES CONTRACTS: The Series may buy and sell financial futures
contracts to hedge against the effects of fluctuations in interest rates. At
the time the Series enters into a financial futures contract, it is required
to deposit with its custodian a specified amount of cash or U.S. Government
securities, known as "initial margin," ranging upward from 1.1% of the value
of the financial futures contract being traded. Each day, the futures
contract is valued at the official settlement price of the board of trade or
U.S. commodity exchange on which such futures contract is traded. Subsequent
payments, known as "variation margin," to and from the broker are made on a
daily basis as the market price of the financial futures contract fluctuates.
Daily variation margin adjustments, arising from this "mark to market," are
recorded by the Series as unrealized gains or losses.
Although some financial futures contracts by their terms call for actual
delivery or acceptance of financial instruments, in most cases the contracts
are closed out prior to delivery by offsetting purchases or sales of matching
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
financial futures contracts. When the contracts are closed, the Series
recognizes a gain or loss. Risks of entering into futures contracts include
the possibility that there may be an illiquid market and/or that a change in
the value of the contract may not correlate with changes in the value of the
underlying securities.
For Federal income tax purposes, the futures transactions undertaken by
the Series may cause the Series to recognize gains or losses from marking to
market even though its positions have not been sold or terminated, may affect
the character of the gains or losses recognized as long-term or short-term,
and may affect the timing of some capital gains and losses realized by the
Series. Also, the Series' losses on its transactions involving futures
contracts may be deferred rather than being taken into account currently in
calculating the Series' taxable income. At June 30, 1996, open positions in
financial futures contracts were as follows:
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION OPEN CONTRACTS POSITION DEPRECIATION
---------------------------------------------------------------------------------
<S> <C> <C> <C>
September 1996 11 U.S. Treasury Notes, 5 year Short $ 13,406
September 1996 38 U.S. Treasury Notes, 10 year Short 72,438
</TABLE>
At June 30, 1996, the following securities were deposited in a segregated
account to cover margin requirements on open financial futures contracts:
<TABLE>
<CAPTION>
PAR VALUE SECURITY
- --------------------------------------------------------------------------------
<S> <C>
$75,000 Federal Home Loan Mortgage Corp., Discount Notes, 5.17%, due 7/5/96
</TABLE>
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains Neuberger&Berman Management Incorporated ("Management") as
its investment manager under a Management 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 sub-adviser to the Series. 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 six months ended June 30, 1996, there were purchase and sale
transactions (excluding short-term securities and financial futures contracts)
of $80,954,273 and $69,702,054, respectively.
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
During the six months ended June 30, 1996, brokerage commissions on
securities transactions amounted to $61,665, of which Neuberger received
$38,290, and other brokers received $23,375.
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Series without audit by independent auditors. Annual reports
contain audited financial statements.
24
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Period from
Six Months May 1, 1995
Ended (Commencement
June 30, of Operations)
1996 to December 31,
(UNAUDITED) 1995
-----------------------------------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses .65%(1) .64%(1)
-----------------------------------
Net Investment Income 2.20%(1) 2.36%(1)
-----------------------------------
Portfolio Turnover Rate 46% 55%
-----------------------------------
Average Commission Rate Paid $0.0596 $0.0451
-----------------------------------
Net Assets, End of Period (in millions) $171.3 $203.3
-----------------------------------
</TABLE>
1) Annualized.
25
