<PAGE>
GOVERNMENT INCOME PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1996
NBAMTSA50696
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust August 9, 1996
- --------------------------------------------------------------------------------
Government Income Portfolio
During the six months ended June 30, 1996, the fixed income markets were
characterized by a tremendous amount of volatility and a complete reversal of
market sentiment regarding the direction of the economy and interest rates.
Coming into 1996, interest rates were plunging as what appeared to be a
weakening economy prompted the Federal Reserve to lower short-term interest
rates for the third time in six months in order to avoid a possible recession.
Starting in February, much stronger-than-expected economic data, the collapse of
negotiations for a balanced budget plan, and rising commodity prices that
sparked inflation fears all combined to send the bond market downward. Strong
employment growth and emerging wage pressures continued through the first six
months of 1996, escalating worries that inflation and higher rates were just
around the corner. The bond market responded toward the end of the Semi-Annual
Report period by continuing the sell-off that started in February, highlighted
by a price decline of over 9% in the benchmark 30-year Treasury bond
year-to-date through June.
In response to the weakening economic data and bullish sentiment that
dominated the bond market at the end of 1995, our strategy at the start of 1996
was to continue to purchase long-term Treasuries in order to target a relatively
long duration (duration is a measure of the portfolio's exposure to interest
rate risk) for the portfolio. This relatively bullish duration resulted in a
higher sensitivity to interest rate changes, which would have been beneficial in
a declining interest rate environment. This strategy worked well throughout
January, when interest rates were falling and the bond market continued its long
rally.
As we entered February, however, improving economic fundamentals and
increasing inflation problems generated a negative response by the bond market.
Our strategy of targeting a relatively long duration and a corresponding higher
sensitivity to interest rate changes resulted in a lower total return for the
Portfolio than a comparable portfolio with a shorter duration. As the bond
market continued to sell off, we reduced the sensitivity of the portfolio to
further interest rate movements by selling longer-term Treasuries in order to
substantially reduce our average duration. We also adjusted our mortgage
strategy to purchase more current coupon(1) and slightly premium coupon(2)
pass-through securities, expecting that the prepayment fears of late 1995 that
had caused these securities to underperform relative to discount pass-throughs
would quickly abate and result in some measure of outperformance. Both of these
adjustments added value to the portfolio through June compared to where it stood
in early February. However, the dramatic increase in interest rates during the
first half of this year and the corresponding decline in the bond market
overwhelmed the positive impact of these strategy changes. The result was a
negative total return for the Portfolio in the six months covered by this
Semi-Annual Report.
Overall, during the first six months of 1996 participants experienced the
extremes of the bond market. Our mortgage strategy and timely adjustments to the
portfolio's duration helped to mitigate the negative impact on the Portfolio's
total return caused by the dramatic rise in interest rates.
William Cunningham
PORTFOLIO CO-MANAGER
AMT Government Income Investments
(1)Bonds that are less volatile than similarly rated bonds with lower coupons
because the interest they pay is competitive with current market instruments.
(2)Bonds with a selling price above face or redemption value.
2
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
June 30,
1996
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 2,887,638
Deferred organization costs (Note A) 7,861
Receivable for Trust shares sold 2,565
Receivable from administrator -- net (Note
B) 1,141
--------------
2,899,205
--------------
LIABILITIES
Payable for Trust shares redeemed 52,598
Accrued expenses 18,047
--------------
70,645
--------------
NET ASSETS at value $ 2,828,560
--------------
NET ASSETS consist of:
Par value $ 277
Paid-in capital in excess of par value 2,843,086
Accumulated undistributed net investment
income 64,895
Accumulated net realized losses on
investment (53,228)
Net unrealized depreciation in value of
investment (26,470)
--------------
NET ASSETS at value $ 2,828,560
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 277,405
--------------
NET ASSET VALUE, offering and redemption price per
share $10.20
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1996
(UNAUDITED)
--------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 78,475
--------------
Expenses:
Administration fee (Note B) 4,819
Shareholder reports 12,102
Custodian fees 5,000
Amortization of deferred organization and
initial offering expenses (Note A) 1,443
Legal fees 151
Registration and filing fees 96
Trustees' fees and expenses 27
Auditing fees 14
Miscellaneous 717
Expenses from Series (Notes A & B) 17,520
--------------
Total expenses 41,889
Deduct -- expenses reimbursed by
administrator (Note B) (29,138)
--------------
Total net expenses 12,751
--------------
Net investment income 65,724
--------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS FROM
SERIES (NOTE A)
Net realized loss on investment securities (51,541)
Change in net unrealized appreciation
(depreciation) of investment securities (77,381)
--------------
Net loss on investments from Series (Note
A) (128,922)
--------------
Net decrease in net assets resulting from
operations $ (63,198)
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income 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 $ 65,724 $ 84,106
Net realized gain (loss) on
investments from Series (Note A) (51,541) 6,989
Change in net unrealized
appreciation (depreciation) of
investments from Series (Note A) (77,381) 73,552
-------------------------------
Net increase (decrease) in net
assets resulting from operations (63,198) 164,647
-------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (84,129) (38,686)
Net realized gain on investments (8,629) --
-------------------------------
Total distributions to shareholders (92,758) (38,686)
-------------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 836,470 1,157,027
Proceeds from reinvestment of
dividends and distributions 92,758 38,686
Payments for shares redeemed (136,268) (163,457)
-------------------------------
Net increase from Trust share
transactions 792,960 1,032,256
-------------------------------
NET INCREASE IN NET ASSETS 637,004 1,158,217
NET ASSETS:
Beginning of period 2,191,556 1,033,339
-------------------------------
End of period $ 2,828,560 $ 2,191,556
-------------------------------
Accumulated undistributed net
investment income at end of period $ 64,895 $ 83,300
-------------------------------
NUMBER OF TRUST SHARES:
Sold 80,980 110,418
Issued on reinvestment of dividends
and distributions 9,023 3,853
Redeemed (13,177) (15,500)
-------------------------------
Net increase in shares outstanding 76,826 98,771
-------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Government Income Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Government Income 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 Government Income Investments, a series of
Advisers Managers Trust (the "Series") having the same investment objective
and policies as the Fund. The value of the Fund's investment in the Series
reflects the Fund's proportionate interest in the net assets of the Series
(100% at 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.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Government Income Portfolio
The Fund distinguishes between dividends on a tax basis and a financial
reporting basis and only distributions in excess of tax basis earnings and
profits are reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains.
5) ORGANIZATION EXPENSES: Expenses incurred by the Fund in connection with its
organization are being amortized by the Fund on a straight-line basis over a
five-year period. At June 30, 1996, the unamortized balance of such expenses
amounted to $7,861.
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 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.
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 .40% of the Fund's average daily net
assets and indirectly pays for investment management services through its
investment in the Series. (See Note B of Notes to Financial Statements of the
Series.) Prior to conversion, the predecessor of the Fund paid to Management for
investment advisory and administrative services a fee at the annual rate of .60%
of its average daily net assets.
On April 16, 1993, the shareholders of the Trust adopted a distribution plan
("Plan") which provided that the predecessor to the Trust, on behalf of any of
its series, could reimburse Management after each calendar quarter for certain
distribution expenses in an amount not to exceed .25%, on an annual basis, of
that series' average daily net assets as of the close of such calendar quarter.
The Plan became effective on May 1, 1993, was implemented on November 1, 1993,
and was terminated on April 30, 1995. 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 (including the compensation of Management under the
Administration Agreement and the Series' Management Agreement, but excluding
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, such excess
expenses amounted to $29,138.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Government Income 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 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 $414, which is less than
.02% of the Fund's average daily net assets.
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 $849,270 and $87,538, 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.
8
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income 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>
Period from
Six Months Ended March 22, 1994(3)
June 30, Year Ended to
1996 December 31, December 31,
(UNAUDITED)(2) 1995(2) 1994
---------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.93 $ 10.15 $ 10.00
---------------------------------------------------------
Income From Investment Operations
Net Investment Income .31 .70 .37
Net Gains or Losses on Securities (both
realized and unrealized) (.61) .46 (.22)
---------------------------------------------------------
Total From Investment Operations (.30) 1.16 .15
---------------------------------------------------------
Less Distributions
Dividends (from net investment income) (.39) (.38) --
Distributions (from capital gains) (.04) -- --
---------------------------------------------------------
Total Distributions (.43) (.38) --
---------------------------------------------------------
Net Asset Value, End of Period $ 10.20 $ 10.93 $ 10.15
---------------------------------------------------------
Total Return+ -2.78%(4) +11.76% +1.50%(4)
---------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 2.8 $ 2.2 $ 1.0
---------------------------------------------------------
Ratio of Expenses to Average Net Assets(5) 1.06%(6) 1.05% 1.09%(6)
---------------------------------------------------------
Ratio of Net Investment Income to Average Net
Assets(5) 5.44%(6) 5.71% 4.78%(6)
---------------------------------------------------------
Portfolio Turnover Rate(7) -- 2% 3%
---------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
9
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
Government Income 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)The date investment operations commenced.
4)Not annualized.
5)Since the commencement of operations, Management voluntarily assumed certain
operating expenses of the Fund as described in Note B of Notes to Financial
Statements. Had such action not been undertaken, the annualized ratios to
average daily net assets would have been:
<TABLE>
<CAPTION>
PERIOD FROM
SIX MONTHS ENDED MARCH 22,
JUNE 30, YEAR ENDED 1994 TO
1996 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1995 1994
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Expenses 3.47% 4.21% 2.57%
---------------------------------------------------
Net Investment Income 3.03% 2.55% 3.30%
---------------------------------------------------
</TABLE>
6)Annualized.
7)The Fund transferred all of its investment securities into its Series on April
28, 1995. After that date the Fund invested only in its Series and that
Series, rather than the Fund, engaged in securities transactions. Therefore,
after that date the Fund had no portfolio turnover rate. Portfolio turnover
rates for the periods ending after April 28, 1995 are included elsewhere in
AMT Government Income Investments' Financial Highlights.
+ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each 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. Total return figures would have been
lower if Management had not reimbursed certain expenses. The total return
information shown does not reflect expenses that apply to the separate account
or the related insurance policies, and the inclusion of these charges would
reduce the total return figures for all periods shown.
10
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
PRINCIPAL RATING MARKET
AMOUNT MOODY'S S&P VALUE(1)
- ----------- ----------- --------- ----------
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES
(32.7%)
$ 215,000 U.S. Treasury Bills, 4.99%,
due 7/5/96 TSY TSY $ 214,800
105,000 U.S. Treasury Notes, 5.25%,
due 12/31/97 TSY TSY 103,915
260,000 U.S. Treasury Notes, 6.50%,
due 5/31/01 TSY TSY 260,034
85,000 U.S. Treasury Notes, 6.875%,
due 5/15/06 TSY TSY 85,876
260,000 U.S. Treasury Bonds, 7.625%,
due 2/15/25 TSY TSY 280,460
----------
TOTAL U.S. TREASURY SECURITIES
(COST $945,849) 945,085
----------
U.S. GOVERNMENT AGENCY
SECURITIES (24.1%)
100,000 Federal Home Loan Mortgage
Corp., Discount Notes, 5.25%,
due 7/8/96 AGY AGY 99,854
235,000 Federal National Mortgage
Association, Discount Notes,
5.24%, due 7/9/96 AGY AGY 234,621
160,000 Federal Home Loan Bank, Bonds,
Ser. 98, 5.25%, due 5/26/98 AGY AGY 157,021
200,000 Student Loan Marketing
Association, Global Notes,
7.50%, due 3/8/00 AGY AGY 205,382
----------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES (COST $706,624) 696,878
----------
MORTGAGE-BACKED SECURITIES
(42.2%)
FEDERAL HOME LOAN MORTGAGE CORP.
25,062 Gold Mortgage Participation
Certificates, 5.50%, due
3/1/11 AGY AGY 23,219
100,999 Gold Mortgage Participation
Certificates, 7.00%, due
4/1/11 AGY AGY 99,679
101,000 Gold Mortgage Participation
Certificates, 7.50%, due
5/1/26 AGY AGY 99,738
FEDERAL NATIONAL MORTGAGE ASSOCIATION
42,575 Balloon Payment, Certificates,
7.50%, due 7/1/01 AGY AGY 43,199
24,941 Pass-Through Certificates,
6.00%, due 3/1/11 AGY AGY 23,604
108,257 Pass-Through Certificates,
7.50%, due 5/1/11 AGY AGY 108,763
58,840 Pass-Through Certificates,
8.00%, due 8/1/25 AGY AGY 59,280
84,576 Pass-Through Certificates,
6.50%, due 11/1/10 & 1/1/26 AGY AGY 80,778
280,015 Pass-Through Certificates,
7.00%, due 1/1/10-2/1/26 AGY AGY 271,287
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
172,559 Pass-Through Certificates,
8.00%, due 3/15/24 AGY AGY 174,049
236,606 Pass-Through Certificates,
7.50%, due 8/15/25 & 3/15/26 AGY AGY 233,223
----------
TOTAL MORTGAGE-BACKED
SECURITIES (COST $1,227,572) 1,216,819
----------
</TABLE>
11
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
PRINCIPAL RATING MARKET
AMOUNT MOODY'S S&P VALUE(1)
- ----------- ----------- --------- ----------
<C> <S> <C> <C> <C>
ASSET-BACKED SECURITIES (5.7%)
$ 37,373 NationsBank Auto Grantor
Trust, Ser. 1995-A, Class A,
5.85%, due 6/15/02 Aaa AAA $ 37,227
50,000 Ford Credit Auto Loan Master
Trust, Auto Loan Certificates,
Ser. 1996-1, 5.50%, due
2/15/03 Aaa AAA 47,559
75,000 Standard Credit Card Master
Trust I, Credit Card
Participation Certificates,
Ser. 1994-4, Class A, 8.25%,
due 11/7/03 Aaa AAA 79,568
----------
TOTAL ASSET-BACKED SECURITIES
(COST $169,561) 164,354
----------
TOTAL INVESTMENTS (104.7%)
(COST $3,049,606) 3,023,136(2)
Liabilities, less cash,
receivables and other assets
[(4.7%)] (135,497)
----------
TOTAL NET ASSETS (100.0%) $2,887,639
----------
</TABLE>
12
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
1)Investment securities of the Series are valued daily by obtaining bid price
quotations from independent pricing services on selected securities available
in each service's data base. For all other securities requiring daily
quotations, bid prices are obtained from principal market makers in those
securities or, if quotations are not available, by a method the trustees of
Advisers Managers Trust believe accurately reflects fair value. Short-term
investments 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)At June 30, 1996, the cost of investments for Federal income tax purposes was
$3,049,606. Gross unrealized appreciation of investments was $3,623 and gross
unrealized depreciation of investments was $30,093, resulting in net
unrealized depreciation of $26,470, based on cost for Federal income tax
purposes.
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
June 30,
1996
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 3,023,136
Cash 5,735
Receivable for securities sold 53,813
Interest receivable 27,692
Deferred organization costs (Note A) 16,491
Prepaid expenses 7
--------------
3,126,874
--------------
LIABILITIES
Payable for securities purchased 236,375
Accrued expenses 2,065
Payable to investment manager (Note B) 795
--------------
239,235
--------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 2,887,639
--------------
NET ASSETS consist of:
Paid-in capital $ 2,914,109
Net unrealized depreciation in value of
investment securities (26,470)
--------------
NET ASSETS $ 2,887,639
--------------
*Cost of investments $ 3,049,606
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1996
(UNAUDITED)
--------------
<S> <C>
INVESTMENT INCOME
Interest income $ 78,475
--------------
Expenses:
Investment management fee (Note B) 4,232
Custodian fees (Note B) 5,894
Accounting fees 5,000
Amortization of deferred organization and
initial offering expenses (Note A) 2,144
Legal fees 132
Auditing fees 75
Trustees' fees and expenses 23
Insurance expense 19
Miscellaneous 1
--------------
Total expenses 17,520
--------------
Net investment income 60,955
--------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net realized loss on investment securities
sold (51,541)
Change in net unrealized appreciation
(depreciation) of investment securities (77,381)
--------------
Net loss on investments (128,922)
--------------
Net decrease in net assets resulting from
operations $ (67,967)
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income 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 $ 60,955 $ 54,160
Net realized gain (loss) on
investments sold (51,541) 6,620
Change in net unrealized
appreciation (depreciation) of
investments (77,381) 53,751
-------------------------------
Net increase (decrease) in net
assets resulting from operations (67,967) 114,531
-------------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 849,270 1,132,968
Reductions (87,538) (161,213)
-------------------------------
Net increase in net assets resulting
from transactions in investors'
beneficial interests 761,732 971,755
-------------------------------
NET INCREASE IN NET ASSETS 693,765 1,086,286
NET ASSETS:
Beginning of period 2,193,874 1,107,588
-------------------------------
End of period $ 2,887,639 $ 2,193,874
-------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Government Income 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. 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) 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 $16,491.
6) EXPENSE ALLOCATION: Expenses directly attributable to a series are charged to
that series. Expenses not directly attributed to a series are allocated, on
the basis of relative net assets, to each of the series of Managers Trust.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains 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 .35% of the first $500 million of the Series' average daily net
assets, .325% of the next $500 million, .30% of the next $500 million, .275% of
the next $500 million, and .25% of average daily net assets in excess of $2
billion.
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.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
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 $414, which is less than .02% 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) of $3,164,246 and $2,622,829,
respectively.
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.
18
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income 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 1.45%(1) 1.77%(1)
-------------------------------------
Net Investment Income 5.03%(1) 4.78%(1)
-------------------------------------
Portfolio Turnover Rate 114% 64%
-------------------------------------
Net Assets, End of Period (in millions) $2.9 $2.2
-------------------------------------
</TABLE>
1) Annualized.
19
