<PAGE>
LIMITED MATURITY BOND PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1995
NBAMT0231295
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
1995 produced outstanding returns in the overall bond market and the Limited
Maturity Bond Portfolio. This performance resulted from a dramatic lowering of
yields as the market perceived a slowing economy and a lessening of inflationary
pressures. The Federal Reserve Board appeared to agree with the market's view
and lowered the Fed Funds rate by 25 basis points in early July and again in
December.
The duration (the measure of how bond prices respond to shifts in interest
rates, taking into account maturity, coupon, call protection and other factors)
of the portfolio was extended from 1.8 years (a weighted average maturity of 2.1
years) at the start of 1995 to 2.2 years (or 2.4 years weighted average
maturity) by the end of June. The rally subsided during the third quarter as
market participants became concerned about a pickup in economic activity.
However, by the end of the third quarter inflationary expectations began to
decline and rates resumed the downward trend. We again extended duration in
October to 2.4 years (2.9 years weighted average maturity) which greatly
benefited 4th quarter performance. The rationale for extending the portfolio is
based on our interest rate trend models, as well as our fundamental outlook on
the economy and inflation. Our trend models remained positive throughout the
year, with occasional signs of an overbought market. This is the key reason we
extended duration during the year. Moreover, our fundamental view remains
bullish. The inflation outlook for the U.S. is the best it has been in years. We
believe that monetary policy remains somewhat restrictive and that the budget
that eventually comes out of Washington will be positive for fixed income
markets.
During the fourth quarter, we added investment-grade corporate bonds and
high-quality asset-backed securities to the Portfolio. This allowed us to take
advantage of slightly higher yield premiums, which were available at reasonable
prices. We believe the fundamentals of these two sectors remain solid and that
significant incremental returns will result from our relatively heavy
weightings. We remained underweighted in mortgages throughout the year as the
interest rate rally resulted in their underperformance versus other sectors; as
interest rates dropped more homeowners refinanced their mortgage loans,
resulting in a quickening of the prepayment speeds on related bonds (which can
reduce the average duration substantially).
Theresa A. Havell Thomas Wolfe
PORTFOLIO CO-MANAGER PORTFOLIO CO-MANAGER
AMT Limited Maturity Bond Investments AMT Limited Maturity Bond Investments
Shares of the separate Portfolios of Neuberger&Berman Advisers Management Trust
are sold only through the currently effective prospectus and are not available
to the general public. Shares of the Limited Maturity Bond Portfolio may be
purchased only by life insurance companies to be used with their separate
accounts that fund variable annuity and variable life insurance policies.
2
<PAGE>
COMPARISON OF A $10,000 INVESTMENT
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
LIMITED MATURITY BOND PORTFOLIO MERRILL LYNCH INDEX
<S> <C> <C>
1 Year +10.94% +11.00%
5 Year +6.70% +6.91%
10 Year +7.61% +7.73%
Life of Fund +8.65% +8.75%
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN*
LIMITED MATURITY BOND PORTFOLIO MERRILL LYNCH TREASURY INDEX
<S> <C> <C>
12/31/85 $10,000.00 $10,000.00
'86 11,383.00 11,035.09
'87 11,713.00 11,658.29
'88 12,552.00 12,384.04
'89 13,904.00 13,730.32
'90 15,061.00 15,065.60
'91 16,770.00 16,825.26
'92 17,638.00 17,885.17
'93 18,807.00 18,852.98
'94 18,778.00 18,960.17
'95 20,831.00 21,046.00
</TABLE>
Life of Limited Maturity Bond Portfolio is from 9/10/84.
*"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 Merrill Lynch 1-3 Year Treasury Index is an unmanaged total return market
value index consisting of all coupon-bearing U.S. Treasury publicly placed debt
securities with maturities between 1 and 3 years. Please note that indices do
not take into account any fees and expenses of investing in the individual
securities that they track, and that individuals cannot invest directly in any
index. These data are derived by Neuberger&Berman Management Inc. and include
reinvestment of all dividends and capital gain distributions.
Performance data are historical and include changes in share price and
reinvestment of dividends and capital gain distributions. Performance numbers
are net of all Fund operating expenses, but do not include any insurance charges
imposed by your insurance company's variable annuity or variable life insurance
policy. If this performance information included the effect of the insurance
charges, performance numbers would be lower.
3
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
<TABLE>
<CAPTION>
December 31,
1995
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 325,623,062
Receivable for Trust shares sold 5,745,233
--------------
331,368,295
--------------
LIABILITIES
Payable for Trust shares redeemed 92,327,760
Payable to administrator (Note B) 110,670
Accrued expenses 31,420
--------------
92,469,850
--------------
NET ASSETS at value $ 238,898,445
--------------
NET ASSETS consist of:
Par value $ 16,244
Paid-in capital in excess of par value 222,758,222
Accumulated undistributed net investment
income 20,476,707
Accumulated net realized losses on
investment (6,955,974)
Net unrealized appreciation in value of
investment 2,603,246
--------------
NET ASSETS at value $ 238,898,445
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 16,243,959
--------------
NET ASSET VALUE, offering and redemption price per
share $14.71
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1995
------------
<S> <C>
INVESTMENT INCOME
Income:
Interest $ 7,835,101
Investment income from Series (Note A) 15,349,653
------------
Total investment income 23,184,754
------------
Expenses:
Investment advisory fee (Note B) 577,021
Administration fee (Note B) 922,431
Legal fees 79,426
Custodian fees 55,177
Shareholder reports 44,605
Distribution fees (Note B) 32,389
Trustees' fees and expenses 10,541
Insurance expense 6,111
Auditing fees 3,343
Registration and filing fees 677
Miscellaneous 4,530
Expenses from Series (Note A) 731,223
------------
Total expenses 2,467,474
------------
Net investment income 20,717,280
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments (1,225,120)
Net realized gain on investments from Series
(Note A) 3,090,324
Change in net unrealized depreciation of
investments 8,130,006
Net unrealized appreciation of investments
from Series (Note A) 4,988,722
------------
Net gain on investments 14,983,932
------------
Net increase in net assets resulting from
operations $35,701,212
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
<TABLE>
<CAPTION>
Year Ended
December 31,
1995 1994
--------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 20,717,280 $ 19,596,399
Net realized gain (loss) on
investments sold (Note A) 1,865,204 (8,821,143)
Change in net unrealized
appreciation (depreciation) of
investments (Note A) 13,118,728 (11,234,402)
--------------------------
Net increase (decrease) in net
assets resulting from operations 35,701,212 (459,146)
--------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (19,650,042) (13,651,429)
Net realized gain on investments -- (1,798,366)
--------------------------
Total distributions to shareholders (19,650,042) (15,449,795)
--------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 134,637,958 180,356,650
Proceeds from reinvestment of
dividends and distributions 19,650,042 15,449,795
Payments for shares redeemed (276,278,511) (178,588,207)
--------------------------
Net increase (decrease) from Trust
share transactions (121,990,511) 17,218,238
--------------------------
NET INCREASE (DECREASE) IN NET ASSETS (105,939,341) 1,309,297
NET ASSETS:
Beginning of year 344,837,786 343,528,489
--------------------------
End of year $238,898,445 $344,837,786
--------------------------
Accumulated undistributed net
investment income at end of year $ 20,476,707 $ 19,409,469
--------------------------
NUMBER OF TRUST SHARES:
Sold 9,484,647 12,801,076
Issued on reinvestment of dividends
and distributions 1,443,794 1,097,286
Redeemed (19,275,210) (12,746,474)
--------------------------
Net increase (decrease) in shares
outstanding (8,346,769) 1,151,888
--------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Limited Maturity Bond 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, 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 the AMT Limited Maturity Bond 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 ($6,955,974 expiring in 2002, determined as of December 31,
1995), 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
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Limited Maturity Bond 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) 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 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 .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 .50%
of its average daily net assets.
On April 16, 1993, the shareholders of the Trust adopted a distribution plan
("Plan") which provided that the predecessor to the Trust, on behalf of any of
its series, could reimburse Management after each calendar quarter for certain
distribution expenses in an amount not to exceed .25%, on an annual basis, of
that series' average daily net assets as of the close of such calendar quarter.
The Plan became effective on May 1, 1993, was implemented on November 1, 1993,
and was terminated on April 30, 1995. For the period ended April 30, 1995, the
Fund paid $32,389 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.
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 $33,220,561 and
$89,109,317, respectively.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
NOTE D -- SECURITIES TRANSACTIONS:
Prior to conversion, there were purchase and sale transactions (excluding
short-term securities) of $84,433,166 and $91,717,854, respectively, during the
period from January 1, 1995 to April 30, 1995. Transactions occurring subsequent
to the conversion are accounted for by Advisers Managers Trust.
9
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Limited Maturity Bond 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>
Year Ended December 31,
1995(2) 1994 1993 1992 1991 1990 1989 1988(3) 1987 1986
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $14.02 $14.66 $14.33 $14.32 $13.62 $13.48 $13.01 $12.14 $13.62 $12.19
---------------------------------------------------------------------------------------
Income From Investment Operations
Net Investment Income .82 .78 .84 1.03 1.04 1.15 1.12 .92 1.00 1.01
Net Gains or Losses on Securities
(both realized and unrealized) .65 (.80) .08 (.33) .43 (.10)(4) .20 (.05) (.60) .65
---------------------------------------------------------------------------------------
Total From Investment Operations 1.47 (.02) .92 .70 1.47 1.05 1.32 .87 .40 1.66
---------------------------------------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (.78) (.55) (.52) (.66) (.77) (.91) (.85) -- (1.62) (.22)
Distributions (from capital gains) -- (.07) (.07) (.03) -- -- -- -- (.26) (.01)
---------------------------------------------------------------------------------------
Total Distributions (.78) (.62) (.59) (.69) (.77) (.91) (.85) -- (1.88) (.23)
---------------------------------------------------------------------------------------
Net Asset Value, End of Year $14.71 $14.02 $14.66 $14.33 $14.32 $13.62 $13.48 $13.01 $12.14 $13.62
---------------------------------------------------------------------------------------
Total Return+ +10.94% -.15% +6.63% +5.18% +11.34% +8.32% +10.77% +7.17% +2.89% +13.83%
---------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Year (in
millions) $238.9 $344.8 $343.5 $187.0 $ 83.0 $ 46.0 $ 31.5 $ 25.4 $ 19.0 $ 17.1
---------------------------------------------------------------------------------------
Ratio of Expenses to Average Net
Assets .71% .66% .64% .64% .68% .76% .88% 1.01% .99% 1.14%
---------------------------------------------------------------------------------------
Ratio of Net Investment Income
to Average Net Assets 5.99% 5.42% 5.19% 5.80% 6.61% 7.66% 8.11% 7.15% 7.36% 7.26%
---------------------------------------------------------------------------------------
Portfolio Turnover Rate(5) 27% 90% 159% 114% 77% 124% 116% 197% 24% 32%
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
10
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust December 31, 1995
- --------------------------------------------------------------------------------
Limited Maturity Bond 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)On May 2, 1988, the predecessor of the Fund changed its primary investment
objective to obtain the highest current income consistent with low risk to
principal and liquidity through investments in limited maturity debt
securities.
4)The amounts shown at this caption for a share outstanding throughout the
period may not accord with the change in aggregate gains and losses in
securities for the period because of the timing of sales and repurchases of
Fund shares in relation to fluctuating market values for the Fund.
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 Limited Maturity Bond 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.
11
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees of
Neuberger&Berman Advisers Management Trust and
Shareholders of Limited Maturity Bond Portfolio
We have audited the accompanying statement of assets and liabilities of the
Limited Maturity Bond 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 for
each of the two years in the period then ended, and financial highlights for
each of the ten years in the period then ended. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with 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
Limited Maturity Bond Portfolio of Neuberger&Berman Advisers Management Trust at
December 31, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and financial highlights for each of the ten years in the period then ended, in
conformity with generally accepted accounting principles.
[SIGNATURE]
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 19, 1996
12
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
PRINCIPAL RATING(2) MARKET
AMOUNT MOODY'S S&P VALUE(1)
---------- ------ ------ ------------
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES
(12.9%)
$ 50,000 U.S. Treasury Notes, 5.75%,
due 10/31/97 TSY TSY $ 50,470
735,000 U.S. Treasury Notes, 6.00%,
due 11/30/97 TSY TSY 745,525
345,000 U.S. Treasury Notes, 7.25%,
due 2/15/98 TSY TSY 358,852
13,375,000 U.S. Treasury Notes, 7.75%,
due 1/31/00 TSY TSY 14,533,542
25,460,000 U.S. Treasury Notes, 6.25%,
due 5/31/00 TSY TSY 26,322,585
------------
TOTAL U.S. TREASURY SECURITIES
(COST $40,387,077) 42,010,974
------------
U.S. GOVERNMENT AGENCY
SECURITIES (28.4%)
50,000,000 Federal Home Loan Bank,
Discount Notes, 5.45%, due
1/2/96 AGY AGY 49,992,431
42,605,000 Federal Home Loan Mortgage
Corp., Discount Notes, 5.50% &
5.75%, due 1/2/96 & 1/16/96 AGY AGY 42,592,641
------------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES (COST $92,585,072) 92,585,072(3)
------------
MORTGAGE-BACKED SECURITIES
(3.4%)
FEDERAL HOME LOAN MORTGAGE CORP.
1,138,922 REMIC Floating Rate Note CMO,
Ser. 1270-F, 6.35%, due
5/15/97 AGY AGY 1,140,221
310,772 ARM Certificates, 7.125%, due
3/1/17 AGY AGY 312,520
215,832 ARM Certificates, 7.375%, due
4/1/17 AGY AGY 217,316
86,153 Mortgage Participation
Certificates, 10.00%, due
4/1/20 AGY AGY 93,032
FEDERAL NATIONAL MORTGAGE ASSOCIATION
895,950 Balloon Payment, Certificates,
9.00%, due 3/1/97-2/1/98 AGY AGY 925,910
484,129 Balloon Payment, Certificates,
8.50%, due 10/1/97-11/1/98 AGY AGY 499,863
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
2,070,479 Pass-Through Certificates,
10.00%, due 8/15/15-4/15/20 AGY AGY 2,270,405
5,081,450 Pass-Through Certificates,
9.50%, due 9/15/09-5/15/22 AGY AGY 5,454,631
------------
TOTAL MORTGAGE-BACKED
SECURITIES (COST $10,822,053) 10,913,898
------------
ASSET-BACKED SECURITIES
(23.1%)
230,652 General Motors Acceptance
Corp. Grantor Trust,
Automobile Loan Pass-Through
Certificates, Ser. 1992-D,
5.55%, due 5/15/97 Aaa AAA 230,445
200,022 Case Equipment Loan Trust,
Ser. 1992, Class A-2, 5.40%,
due 6/15/98 Aaa AAA 199,869
344,070 Volvo Grantor Trust,
Automobile Loan Pass-Through
Certificates, Ser. 1992-A,
4.65%, due 6/15/98 Aaa AAA 341,145
1,653,265 Daimler-Benz Auto Grantor
Trust, Ser. 1993-A, 3.90%, due
10/15/98 Aaa AAA 1,630,615
5,156,894 Nissan Auto Receivables
Grantor Trust, Automobile Loan
Pass-Through Certificates,
Ser. 1994-A, Class A, 6.45%,
due 9/15/99 Aaa AAA 5,202,533
</TABLE>
13
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
PRINCIPAL RATING(2) MARKET
AMOUNT MOODY'S S&P VALUE(1)
---------- ------ ------ ------------
<C> <S> <C> <C> <C>
$3,184,991 USAA Auto Loan Grantor Trust,
Automobile Loan Pass-Through
Certificates, Ser. 1994-1,
5.00%, due 11/15/99 Aaa AAA $ 3,171,423
11,960,000 Premier Auto Trust, Ser.
1994-2, Class A-3, 6.35%, due
5/2/00 Aaa AAA 12,114,882
4,616,877 Caterpillar Financial Asset
Trust, Ser. 1994-A, Class A-2,
6.10%, due 6/25/00 Aaa AAA 4,616,877
6,361,436 Ford Credit Grantor Trust,
Ser. 1995-B, Class A, 5.90%,
due 10/15/00 Aaa AAA 6,392,480
7,687,647 IBM Credit Receivables Lease
Asset Master Trust, Ser.
1994-1, Class A-2, 6.55%, due
7/15/01 Aaa AAA 7,760,295
5,801,421 Chase Manhattan Grantor Trust,
Automobile Loan Pass-Through
Certificates, Ser. 1995-B,
5.90%, due 11/15/01 Aaa AAA 5,839,595
6,203,035 Case Equipment Loan Trust,
Ser. 1995-A, 7.30%, due
3/15/02 Aaa AAA 6,343,534
8,000,000 NationsBank Credit Card Master
Trust, Ser. 1995-1, Class A,
6.45%, due 4/15/03 Aaa AAA 8,234,400
6,000,000 ADVANTA Credit Card Master
Trust II, Ser. 1995-F, Class
A-1, 6.05%, due 8/1/03 Aaa AAA 6,082,920
6,500,000 Standard Credit Card Master
Trust I, Credit Card
Participation Certificates,
Ser. 1994-4, Class A, 8.25%,
due 11/7/03 Aaa AAA 7,211,295
------------
TOTAL ASSET-BACKED SECURITIES
(COST $74,587,101) 75,372,308
------------
BANKS & FINANCIAL INSTITUTIONS
(12.2%)
7,000,000 Society National Bank, Bank
Notes, 6.875%, due 10/15/96 Aa3 A 7,076,510
2,000,000 Chase Manhattan Corp.,
Medium-Term Notes, 8.15%, due
2/3/97 A1 A 2,052,380
8,000,000 BankAmerica Corp., Corporate
Notes, 7.50%, due 3/15/97 A2 A+ 8,184,720
2,080,000 Chase Manhattan Corp.,
Medium-Term Notes, 8.31%, due
3/17/97 A1 A 2,143,898
4,050,000 Kansallis-Osake-Pankki, Yankee
Notes, 9.75%, due 12/15/98 A3 BBB- 4,473,994
1,090,000 Household Finance Corp.,
Senior Subordinated Notes,
9.55%, due 4/1/00 A3 A- 1,230,545
8,450,000 First USA Bank, Medium-Term
Deposit Notes, 6.375%, due
10/23/00 Baa2 BBB- 8,544,386
6,010,000 Smith Barney Holdings Inc.,
Notes, 6.50%, due 10/15/02 A3 A- 6,116,077
------------
TOTAL BANKS & FINANCIAL
INSTITUTIONS (COST
$40,195,568) 39,822,510
------------
CORPORATE DEBT SECURITIES
(19.2%)
5,000,000 Hanson Overseas B.V., Yankee
Guaranteed Senior Notes,
5.50%, due 1/15/96 A2 A+ 5,000,100
5,500,000 AT&T Capital Corp.,
Medium-Term Notes, 6.99%, due
10/12/96 A3 A 5,556,320
1,000,000 du Pont (E.I.), de Nemours &
Co., Medium-Term Notes, 8.45%,
due 10/15/96 Aa3 AA- 1,023,560
5,000,000 Tenneco Inc., Medium-Term
Notes, 10.00%, due 8/1/98 Baa2 BBB- 5,475,200
6,000,000 News America Holdings Inc.,
Senior Notes, 9.125%, due
10/15/99 Baa3 BBB 6,565,980
10,000,000 Xerox Credit Corp.,
Medium-Term Notes, 6.84%, due
6/1/00 A2 A 10,206,200
</TABLE>
14
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
PRINCIPAL RATING(2) MARKET
AMOUNT MOODY'S S&P VALUE(1)
---------- ------ ------ ------------
<C> <S> <C> <C> <C>
$4,000,000 Ford Motor Credit Co.,
Medium-Term Notes, 6.84%, due
8/16/00 A1 A+ $ 4,134,760
6,750,000 Sears Roebuck Acceptance
Corp., Medium-Term Notes, Ser.
I, 6.42%, due 10/10/00 A2 BBB 6,876,292
3,000,000 ITT Corp., Notes, 6.25%, due
11/15/00 Baa1 BBB 3,017,160
9,000,000 General Motors Acceptance
Corp., Medium-Term Notes,
8.25%, due 2/8/01 A3 A- 9,809,010
4,700,000 Viacom, Senior Notes, 6.75%,
due 1/15/03 Ba2(4) BB+(4) 4,732,759
------------
TOTAL CORPORATE DEBT
SECURITIES (COST $61,921,986) 62,397,341
------------
TOTAL INVESTMENTS (99.2%)
(COST $320,498,857) 323,102,103(5)
Cash, receivables and other
assets, less liabilities
(0.8%) 2,520,960
------------
TOTAL NET ASSETS (100.0%) $325,623,063
------------
</TABLE>
15
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
1)Investment securities of the Series are valued daily by obtaining bid price
quotations from independent pricing services on selected securities available
in each service's data base. For all other securities requiring daily
quotations, bid prices are obtained from principal market makers in those
securities. Short-term investments with less than sixty days until maturity at
the time of purchase are valued at cost which, when combined with interest
earned, approximates market value.
2)Credit ratings are unaudited.
3)At cost, which approximates market value.
4)Rated BBB- by Fitch Investors Services, Inc.
5)At December 31, 1995, the cost of investments for Federal income tax purposes
was $320,498,857. Gross unrealized appreciation of investments was $3,909,217
and gross unrealized depreciation of investments was $1,305,971, resulting in
net unrealized appreciation of $2,603,246, based on cost for Federal income
tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
December 31,
1995
------------
<S> <C>
ASSETS
Investments in securities, at market
value* (Note A) -- see Schedule of
Investments $323,102,103
Cash 3,257
Interest receivable 2,583,202
Deferred organization costs (Note A) 69,875
Prepaid expenses and other assets 17,076
Receivable for securities sold 7,018
------------
325,782,531
------------
LIABILITIES
Payable to investment manager (Note B) 69,184
Accrued expenses 45,772
Accrued organization costs (Note A) 44,512
------------
159,468
------------
NET ASSETS Applicable to Investors' Beneficial
Interests $325,623,063
------------
NET ASSETS consist of:
Paid-in capital $323,019,817
Net unrealized appreciation in value of
investments 2,603,246
------------
NET ASSETS $325,623,063
------------
*Cost of investments $320,498,857
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
For the
Period from
May 1, 1995
(Commencement
of Operations)
to December 31,
1995
---------------
<S> <C>
INVESTMENT INCOME
Interest income $ 15,349,653
---------------
Expenses:
Investment management fee (Note B) 576,781
Custodian fees 94,637
Auditing fees 20,349
Amortization of deferred organization and
initial offering expenses (Note A) 10,809
Insurance expense 9,595
Accounting fees 6,667
Trustees' fees and expenses 6,242
Legal fees 5,859
Miscellaneous 284
---------------
Total expenses 731,223
---------------
Net investment income 14,618,430
---------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments sold 3,090,324
Net unrealized appreciation of investments 4,988,722
---------------
Net gain on investments 8,079,046
---------------
Net increase in net assets resulting from
operations $ 22,697,476
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond 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 $ 14,618,430
Net realized gain on investments
sold 3,090,324
Net unrealized appreciation of
investments 4,988,722
---------------
Net increase in net assets resulting
from operations 22,697,476
---------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 33,220,562
Reductions (89,109,317)
---------------
Net decrease in net assets resulting
from transactions in investors'
beneficial interests (55,888,755)
---------------
NET DECREASE IN NET ASSETS (33,191,279)
NET ASSETS:
Initial contribution 358,814,342
---------------
End of period $ 325,623,063
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Limited Maturity Bond Investments (the "Series") is a separate
series of Advisers Managers Trust ("Managers Trust"), a New York common law
trust organized as of May 24, 1994. Managers Trust is currently comprised of
six separate series. Managers Trust is registered as a diversified, open-end
management investment company under the Investment Company Act of 1940, as
amended. After the close of business on April 28, 1995, each series of
Neuberger&Berman Advisers Management Trust (the "Trust") invested all of its
net investable assets (cash, securities, and receivables relating to
securities) in a corresponding series of Managers Trust, receiving a
beneficial interest in that series.
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
2) PORTFOLIO VALUATION: Securities are valued as indicated in the notes
following the Series' schedule of investments.
3) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Interest income, including accretion of
discount on short-term investments (adjusted for original issue discount,
where applicable), is recorded on the accrual basis. Realized gains and
losses from securities transactions are recorded on the basis of identified
cost.
4) FEDERAL INCOME TAXES: Managers Trust intends to comply with the requirements
of the Internal Revenue Code of 1986, as amended. Each Series of Managers
Trust also intends to conduct its operations so that each of its investors
will be able to qualify as a regulated investment company. Each Series will
be treated as a partnership for Federal income tax purposes and is therefore
not subject to Federal income tax.
5) ORGANIZATION EXPENSES: Expenses incurred by the Series in connection with its
organization are being amortized by the Series on a straight-line basis over
a five-year period. At December 31, 1995, the unamortized balance of such
expenses amounted to $69,875. The accrued organization costs are payable to
Neuberger& Berman Management Incorporated ("Management"), the investment
manager of the Series.
6) EXPENSE ALLOCATION: Expenses directly attributable to a series are charged to
that series. Expenses not directly attributed to a series are allocated, on
the basis of relative net assets, to each of the series of Managers Trust.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains Management as its investment manager under a Management
Agreement ("Agreement") dated as of May 1, 1995. For such investment management
services, the Series pays Management a fee at the annual rate of .25% of the
first $500 million of the Series' average daily net assets, .225% of the next
$500 million, .20% of the next $500 million, .175% of the next $500 million, and
.15% 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 the 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.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust December 31, 1995
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond 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 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 $247,294,436 and $341,279,456, respectively.
21
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
Period from
May 1, 1995
(Commencement
of Operations)
to December 31,
1995
-------------------------
<S> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses .32%(1)
----------
Net Investment Income 6.34%(1)
----------
Portfolio Turnover Rate 78%
----------
Net Assets, End of Period (in
millions) $325.6
----------
</TABLE>
1) Annualized.
22
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees of
Advisers Managers Trust and
Owners of Beneficial Interest of AMT Limited Maturity Bond Investments
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of the AMT Limited Maturity Bond
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. 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 Limited Maturity Bond 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
23
