<PAGE>
LIMITED MATURITY BOND PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1996
NBAMT0231296
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
1996 ended on an upbeat note for the bond market and the AMT Limited Maturity
Bond Portfolio as yields across the curve fell during the last four months of
the year. Yields that we focus on, in the 1- to 5-year part of the curve, ended
the year higher than at the start of the year. In between, however, the bond
market was on a roller coaster ride with interest rates falling early in the
period, then rising extremely rapidly, and finally reversing its course once
again for the final rally. The management of our weighted average portfolio
duration ("duration" is a measure of a portfolio's exposure to interest rate
risk) during this period of volatility remained consistent with our
trend-following style, and the Portfolio's risk level remained low compared to
longer-duration bond funds. In the early portion of the year our duration was a
relatively long 2.9 years on average as we took advantage of the falling rates
at the end of 1995 and the beginning of 1996. When the trend reversed in
February and March as a result of signs of increased economic growth, higher
inflation expectations, and comments by Fed Chairman Alan Greenspan, we
shortened duration several times to 2.3 years in June. By September, the market
had overreacted to the economic signals and, from a technical and fundamental
standpoint, appeared undervalued. We then lengthened the duration to just over
2.5 years. Yields fell from this point through the end of the year which
benefited the Portfolio due to the longer duration.
Corporate bonds remained the largest sector in the Portfolio as we continued
to find value through our bottom-up bond selection process (looking at
individual bonds rather than average sector prices) despite a generally
expensive corporate market. The below investment grade segment of our holdings
outperformed all other sectors, due to the healthy market conditions in high
yield as well as excellent individual security selection. Our research staff
identified several bonds during the period which were underpriced relative to
their credit fundamentals, which we added to the Portfolio. These included Tenet
Healthcare, a leading hospital firm, which was placed on watch for potential
upgrade by both S&P and Moody's. This caused the market to price these bonds at
a tighter spread to Treasuries, resulting in significant outperformance versus
the market. This segment of the Portfolio which represents the below investment
grade portion ended the year at about 8% of the Fund. Investment grade bonds
also performed well. Restructuring at firms such as Tenneco Inc. and Alco
Capital Resource, Inc. resulted in higher bond prices relative to comparable
duration Treasuries.
Investments in mortgage-backed and asset-backed securities accounted for the
majority of the remainder of the Portfolio. The asset-backed securities were all
rated "AAA" and were backed by pools of credit card receivables, auto loans and
leases, or equipment loans. While the increase in consumer delinquencies on
credit cards has received a lot of media attention, the asset-backed securities
in the Portfolio were of the highest quality. The bonds in the Portfolio have
outperformed comparable duration Treasury securities, since the collateral
backing of these securities performed well throughout the second half of the
year within the bond market's and the ratings agencies' expectations. In
addition, our commitment to 15-year and 7-year Agency Pass-Through Mortgages
added to the Portfolio's return.
Ted Giuliano Thomas Wolfe
The composition and holdings of the Portfolio are subject to change. Shares of
the separate Portfolios of Neuberger&Berman Advisers Management Trust are sold
only through the currently effective prospectus and are not available to the
general public. Shares of the Government Income, Growth, Limited Maturity Bond,
Liquid Asset and Partners Portfolios may be purchased only by life insurance
companies to be used with their separate accounts which fund variable annuity
and variable life insurance policies. The views of the portfolio managers
expressed in this report are as of the date written above. The managers' views
are subject to change at any time based on market and other conditions.
2
<PAGE>
COMPARISON OF A $10,000 INVESTMENT
Neuberger&Berman Advisers Management Trust December 31, 1996
- --------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C> <C>
Merrill Lynch 1-3 Year Limited Maturity
Average Annual Total Return (1) Treasury Index Bond Portfolio
1 Year +4.98% +4.31%
5 Year +5.60% +5.32%
10 Year +7.19% +6.68%
Life of Fund +8.44% +8.28%
Merrill Lynch 1-3 Year Limited Maturity
Treasury Index (2) Bond Portfolio
12/31/86 $10,000.00 $9,999.99
1987 $10,564.74 $10,289.16
1988 $11,222.42 $11,026.52
1989 $12,442.42 $12,214.39
1990 $13,652.45 $13,231.15
1991 $15,247.05 $14,731.99
1992 $16,207.54 $15,494.66
1993 $17,084.57 $16,521.41
1994 $17,181.70 $16,495.89
1995 $19,071.57 $18,299.67
1996 $20,021.09 $19,087.63
</TABLE>
The inception date of Limited Maturity Bond Portfolio (the "Fund") is
9/10/84.
1. "Total Return" includes reinvestment of all income dividends and capital
gain distributions. Results represent past performance and do not guarantee
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.
2. 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. Data about the performance of this index are prepared or
obtained by Neuberger&Berman Management Inc.-Registered Trademark- and include
reinvestment of all dividends and capital gain distributions. The Series invests
in many securities not included in the above-described index.
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,
1996
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 256,804,186
Receivable for Trust shares sold 249,996
--------------
257,054,182
--------------
LIABILITIES
Payable to administrator (Note B) 86,442
Payable for Trust shares redeemed 43,624
Accrued expenses 23,098
--------------
153,164
--------------
NET ASSETS at value $ 256,901,018
--------------
NET ASSETS consist of:
Par value $ 18,290
Paid-in capital in excess of par value 250,839,376
Accumulated undistributed net investment
income 14,772,461
Accumulated net realized losses on
investment (7,281,052)
Net unrealized depreciation in value of
investment (1,448,057)
--------------
NET ASSETS at value $ 256,901,018
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 18,290,216
--------------
NET ASSET VALUE, offering and redemption price per
share $14.05
--------------
</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,
1996
------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $16,829,148
------------
Expenses:
Administration fee (Note B) 991,554
Shareholder reports 81,833
Legal fees 24,299
Trustees' fees and expenses 10,870
Custodian fees 10,000
Auditing fees 2,353
Registration and filing fees 47
Miscellaneous 6,050
Expenses from Series (Notes A & B) 816,239
------------
Total expenses 1,943,245
------------
Net investment income 14,885,903
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
FROM SERIES (NOTE A)
Net realized gain on investment securities 5,433
Net realized loss on financial futures
contracts (330,511)
Change in net unrealized appreciation
(depreciation) of investment securities (4,079,802)
Net unrealized appreciation of financial
futures contracts 28,499
------------
Net loss on investments from Series (Note
A) (4,376,381)
------------
Net increase in net assets resulting from
operations $10,509,522
------------
</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,
1996 1995
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 14,885,903 $ 20,717,280
Net realized gain (loss) on
investments from Series (Note A) (325,078) 1,865,204
Change in net unrealized
appreciation (depreciation) of
investments from Series (Note A) (4,051,303) 13,118,728
-----------------------------
Net increase in net assets resulting
from operations 10,509,522 35,701,212
-----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (20,590,149) (19,650,042)
-----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 82,039,951 134,637,958
Proceeds from reinvestment of
dividends 20,590,149 19,650,042
Payments for shares redeemed (74,546,900) (276,278,511)
-----------------------------
Net increase (decrease) from Trust
share transactions 28,083,200 (121,990,511)
-----------------------------
NET INCREASE (DECREASE) IN NET ASSETS 18,002,573 (105,939,341)
NET ASSETS:
Beginning of year 238,898,445 344,837,786
-----------------------------
End of year $ 256,901,018 $ 238,898,445
-----------------------------
Accumulated undistributed net
investment income at end of year $ 14,772,461 $ 20,476,707
-----------------------------
NUMBER OF TRUST SHARES:
Sold 5,921,768 9,484,647
Issued on reinvestment of dividends 1,528,593 1,443,794
Redeemed (5,404,104) (19,275,210)
-----------------------------
Net increase (decrease) in shares
outstanding 2,046,257 (8,346,769)
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust December 31, 1996
- --------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Limited Maturity Bond 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 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, 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 ($6,955,974 and $296,579 expiring in 2002 and 2004,
respectively, determined as of December 31, 1996), 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, 1996
- --------------------------------------------------------------------------------
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 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 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. 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 fees payable to Management, 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 year ended December 31, 1996, no reimbursement to the
Fund was required.
All of the capital stock of Management is owned by individuals who are also
principals of Neuberger& Berman, LLC ("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 principals of Neuberger and/or
officers and/ or directors of Management.
The Series has an expense offset arrangement in connection with 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.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1996
- --------------------------------------------------------------------------------
Limited Maturity Bond Portfolio
NOTE C -- INVESTMENT TRANSACTIONS:
During the year ended December 31, 1996, additions and reductions in the
Fund's investment in its Series amounted to $60,190,555 and $140,645,959,
respectively.
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,
1996(2) 1995(2) 1994 1993 1992 1991 1990
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $14.71 $14.02 $ 14.66 $ 14.33 $ 14.32 $ 13.62 $ 13.48
-------------------------------------------------------------------------------
Income From Investment Operations
Net Investment Income .92 .82 .78 .84 1.03 1.04 1.15
Net Gains or Losses on Securities
(both realized and unrealized) (.34) .65 (.80) .08 (.33) .43 (.10)(4)
-------------------------------------------------------------------------------
Total From Investment Operations .58 1.47 (.02) .92 .70 1.47 1.05
-------------------------------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (1.24) (.78) (.55) (.52) (.66) (.77) (.91)
Distributions (from capital gains) -- -- (.07) (.07) (.03) -- --
-------------------------------------------------------------------------------
Total Distributions (1.24) (.78) (.62) (.59) (.69) (.77) (.91)
-------------------------------------------------------------------------------
Net Asset Value, End of Year $14.05 $14.71 $ 14.02 $ 14.66 $ 14.33 $ 14.32 $ 13.62
-------------------------------------------------------------------------------
Total Return(5) +4.31% +10.94% -.15% +6.63% +5.18% +11.34% +8.32%
-------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Year (in
millions) $256.9 $238.9 $ 344.8 $ 343.5 $ 187.0 $ 83.0 $ 46.0
-------------------------------------------------------------------------------
Ratio of Expenses to Average Net
Assets .78% .71% .66% .64% .64% .68% .76%
-------------------------------------------------------------------------------
Ratio of Net Investment Income to
Average
Net Assets 6.01% 5.99% 5.42% 5.19% 5.80% 6.61% 7.66%
-------------------------------------------------------------------------------
Portfolio Turnover Rate(6) -- 27% 90% 159% 114% 77% 124%
-------------------------------------------------------------------------------
<CAPTION>
1989 1988(3) 1987
<S> <C> <C> <C>
Net Asset Value, Beginning of Year $ 13.01 $12.14 $ 13.62
Income From Investment Operations
Net Investment Income 1.12 .92 1.00
Net Gains or Losses on Securities
(both realized and unrealized) .20 (.05) (.60)
Total From Investment Operations 1.32 .87 .40
Less Distributions
Dividends (from net investment
income) (.85) -- (1.62)
Distributions (from capital gains) -- -- (.26)
Total Distributions (.85) -- (1.88)
Net Asset Value, End of Year $ 13.48 $13.01 $ 12.14
Total Return(5) +10.77% +7.17% +2.89%
Ratios/Supplemental Data
Net Assets, End of Year (in
millions) $ 31.5 $ 25.4 $ 19.0
Ratio of Expenses to Average Net
Assets .88% 1.01% .99%
Ratio of Net Investment Income to
Average
Net Assets 8.11% 7.15% 7.36%
Portfolio Turnover Rate(6) 116% 197% 24%
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
10
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust December 31, 1996
- --------------------------------------------------------------------------------
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)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.
6)The Fund transferred all of its investment securities into its Series on April
28, 1995. After that date the Fund invested only in its Series, and that
Series, rather than the Fund, engaged in securities transactions. Therefore,
after that date the Fund had no portfolio turnover rate. Portfolio turnover
rates for the periods ending after April 28, 1995, are included elsewhere in
AMT Limited Maturity Bond Investments' Financial Highlights.
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
Limited Maturity Bond Portfolio, one of the series comprising Neuberger&Berman
Advisers Management Trust (the "Trust"), as of December 31, 1996, 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
the Financial Highlights for each of the periods indicated therein. 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 and financial highlights. 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
Limited Maturity Bond Portfolio of Neuberger&Berman Advisers Management Trust at
December 31, 1996, 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 the financial highlights for each of the periods indicated therein, in
conformity with generally accepted accounting principles.
[SIGNATURE]
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 27, 1997
12
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
Principal Rating(1) Market
Amount Moody's S&P Value(2)
- ---------- ----------- --------- ------------
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES
(0.0%)
$ 10,000 U.S. Treasury Notes, 5.75%,
due 10/31/97 (COST $9,930) TSY TSY $ 10,016
------------
U.S. GOVERNMENT AGENCY
SECURITIES (5.1%)
4,770,000 Federal Farm Credit Bank,
Discount Notes, 5.35% & 5.58%,
due 1/6/97 & 1/7/97 AGY AGY 4,765,288
8,400,000 Federal Home Loan Bank,
Discount Notes, 5.25%, due
1/2/97 AGY AGY 8,397,480
------------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES (COST $13,164,797) 13,162,768
------------
MORTGAGE-BACKED SECURITIES
(10.6%)
FEDERAL HOME LOAN MORTGAGE CORP.
1,037,429 REMIC Floating Rate CMO, Ser.
1270-F, 6.0375%, due 5/15/97 AGY AGY 1,037,585
263,545 ARM Certificates, 6.629%, due
3/1/17 AGY AGY 265,685
183,006 ARM Certificates, 6.375%, due
4/1/17 AGY AGY 184,379
85,369 Mortgage Participation
Certificates, 10.00%, due
4/1/20 AGY AGY 92,185
FEDERAL NATIONAL MORTGAGE ASSOCIATION
720,295 Balloon Pass-Through
Certificates, 9.00%, due
3/1/97-2/1/98 AGY AGY 739,426
435,494 Balloon Pass-Through
Certificates, 8.50%, due
10/1/97-11/1/98 AGY AGY 446,381
7,347,630 Pass-Through Certificates,
7.00%, due 6/1/11 AGY AGY 7,393,406
4,695,601 Pass-Through Certificates,
7.50%, due 9/1/11 AGY AGY 4,759,978
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
1,546,516 Pass-Through Certificates,
10.00%, due 8/15/15-4/15/20 AGY AGY 1,694,888
3,994,011 Pass-Through Certificates,
9.50%, due 9/15/09-5/15/22 AGY AGY 4,314,770
6,465,000 Pass-Through Certificates,
7.00%, TBA, 30 Year Maturity AGY AGY 6,321,558
------------
TOTAL MORTGAGE-BACKED
SECURITIES (COST $27,019,206) 27,250,241
------------
ASSET-BACKED SECURITIES
(24.2%)
49,795 Volvo Auto Receivables Grantor
Trust, Automobile Loan
Pass-Through Certificates,
Ser. 1992-A, 4.65%, due
6/15/98 Aaa AAA 49,670
551,454 Daimler-Benz Auto Grantor
Trust, Ser. 1993-A, Class A,
3.90%, due 10/15/98 Aaa AAA 550,913
5,825,000 Capita Equipment Receivables
Trust, Ser. 1996-1, Class A-3,
6.11%, due 7/15/99 Aaa AAA 5,826,281
2,507,666 Nissan Auto Receivables
Grantor Trust, Automobile Loan
Pass-Through Certificates,
Ser. 1994-A, Class A, 6.45%,
due 9/15/99 Aaa AAA 2,521,257
1,216,831 USAA Auto Loan Grantor Trust,
Automobile Loan Pass-Through
Certificates, Ser. 1994-1,
5.00%, due 11/15/99 Aaa AAA 1,212,937
3,656,008 Premier Auto Trust, Ser.
1994-2, Class A-3, 6.35%, due
5/2/00 Aaa AAA 3,673,045
1,353,144 Caterpillar Financial Asset
Trust, Ser. 1994-A, Class A-2,
6.10%, due 6/25/00 Aaa AAA 1,353,699
3,580,000 Chase Manhattan Auto Owner
Trust, Ser. 1996-C, Class A-3,
5.95%, due 11/15/00 Aaa AAA 3,567,291
</TABLE>
13
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
Principal Rating(1) Market
Amount Moody's S&P Value(2)
- ---------- ----------- --------- ------------
<C> <S> <C> <C> <C>
$3,247,574 IBM Credit Receivables Lease
Asset Master Trust, Ser.
1994-1, Class A-2, 6.55%, due
7/15/01 Aaa AAA $ 3,271,411
3,764,173 Case Equipment Loan Trust,
Ser. 1995-A, 7.30%, due
3/15/02 Aaa AAA 3,806,708
3,660,000 Navistar Financial Owner
Trust, Ser. 1996-A, Class A-2,
6.35%, due 11/15/02 Aaa AAA 3,669,736
5,014,871 Banc One Auto Grantor Trust,
Ser. 1996-B, Class A, 6.55%,
due 2/15/03 Aaa AAA 5,049,374
5,070,000 Ford Credit Auto Loan Master
Trust, Auto Loan Certificates,
Ser. 1996-1, 5.50%, due
2/15/03 Aaa AAA 4,897,823
8,000,000 NationsBank Credit Card Master
Trust, Ser. 1995-1, Class A,
6.45%, due 4/15/03 Aaa AAA 8,068,560
2,510,000 Navistar Financial Owner
Trust, Ser. 1996-B, Class A-3,
6.33%, due 4/21/03 Aaa AAA 2,516,426
5,000,000 Chevy Chase Auto Receivables
Trust, Ser. 1996-2, 5.90%, due
7/15/03 Aaa AAA 4,976,550
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 6,977,100
------------
TOTAL ASSET-BACKED SECURITIES
(COST $62,136,720) 61,988,781
------------
BANKS & FINANCIAL INSTITUTIONS
(15.8%)
8,000,000 BankAmerica Corp., Corporate
Notes, 7.50%, due 3/15/97 A1 A+ 8,028,240
4,050,000 Kansallis-Osake-Pankki, Yankee
Notes, 9.75%, due 12/15/98 A3 BBB 4,300,574
5,000,000 Alco Capital Resource, Inc.,
Medium-Term Notes, Ser. B,
5.46%, due 2/22/99 A3 A- 4,910,350
5,020,000 CIT Group Holdings, Inc.,
Medium-Term Notes, 6.25%, due
10/25/99 Aa3 A+ 5,010,512
1,090,000 Household Finance Corp.,
Senior Subordinated Notes,
9.55%, due 4/1/00 A3 A- 1,184,427
8,450,000 First USA Bank, Medium-Term
Deposit Notes, 6.375%, due
10/23/00 Baa2 BBB- 8,344,290
5,200,000 Capital One Bank, Bank Notes,
5.95%, due 2/15/01 Baa3 BBB- 5,001,620
3,925,000 Goldman Sachs Group, L.P.,
Global Notes, 6.75%, due
2/15/06 A1 A+ 3,828,484(3)
------------
TOTAL BANKS & FINANCIAL
INSTITUTIONS (COST
$41,952,222) 40,608,497
------------
CORPORATE DEBT SECURITIES
(45.5%)
2,630,000 Colonial Gas Co., Medium-Term
Notes, Ser. A, 6.20%, due
3/18/98 Baa1 A- 2,632,683
5,400,000 Lockheed Martin Corp., Notes,
6.55%, due 5/15/99 A3 BBB+ 5,426,244
2,520,000 Arkla, Inc., Notes, 8.875%,
due 7/15/99 Baa3 BBB 2,658,424
650,000 Caterpillar Finance,
Medium-Term Notes, Ser. E,
6.11%, due 7/15/99 A2 A 646,542
925,000 Hoechst Celanese Corp., Notes,
9.625%, due 9/1/99 A2 A+ 946,071
4,180,000 Travelers/Aetna Property
Casualty Corp., Notes, 6.25%,
due 10/1/99 A2 A 4,163,949
10,000,000 Xerox Credit Corp.,
Medium-Term Notes, Ser. D,
6.84%, due 6/1/00 A2 A 9,954,300
5,120,000 Comdisco, Inc., Notes, 6.50%,
due 6/15/00 Baa1 BBB+ 5,096,346
435,000 ADT Operations, Inc., Senior
Notes, 8.25%, due 8/1/00 Ba1 BBB- 454,031
4,000,000 Ford Motor Credit Co.,
Medium-Term Notes, 6.84%, due
8/16/00 A1 A+ 4,030,000
</TABLE>
14
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
Principal Rating(1) Market
Amount Moody's S&P Value(2)
- ---------- ----------- --------- ------------
<C> <S> <C> <C> <C>
$1,970,000 Chesapeake Corp., Notes,
10.375%, due 10/1/00 Baa3 BBB $ 2,201,967
6,750,000 Sears Roebuck Acceptance
Corp., Medium-Term Notes, Ser.
I, 6.42%, due 10/10/00 A2 A- 6,724,688
1,610,000 BHP Finance (USA) Limited,
Guaranteed Notes, 5.625%, due
11/1/00 A2 A 1,561,265
1,770,000 Congoleum Corp., Senior Notes,
9.00%, due 2/1/01 B1 BB- 1,776,637
9,000,000 General Motors Acceptance
Corp., Medium-Term Notes,
8.25%, due 2/8/01 A3 A- 9,491,400
1,940,000 Colonial Realty Limited
Partnership, Senior Notes,
7.50%, due 7/15/01 Baa3 BBB- 1,963,920
4,000,000 Tyco International Ltd.,
Notes, 6.50%, due 11/1/01 Baa2 BBB+ 3,965,080
395,000 Owens-Illinois, Inc., Senior
Subordinated Notes, 10.50%,
due 6/15/02 B2 B+ 416,725
2,990,000 Federated Department Stores,
Inc., Senior Notes, 8.125%,
due 10/15/02 Ba1 BB- 3,072,494
5,400,000 Viacom, Senior Notes, 6.75%,
due 1/15/03 Ba2 (4) BB+ (4) 5,056,290
395,000 Container Corp. of America,
Senior Notes, 9.75%, due
4/1/03 B1 B+ 416,725
2,430,000 ADT Operations, Inc., Senior
Subordinated Notes, 9.25%, due
8/1/03 Ba3 BB+ 2,594,025
4,415,000 Keystone Group, Inc., Senior
Secured Notes, 9.75%, due
9/1/03 A1 A+ 4,757,162
1,115,000 Sweetheart Cup, Inc., Senior
Subordinated Notes, 10.50%,
due 9/1/03 B3 B- 1,169,356
500,000 Core-Mark International Inc.,
Senior Subordinated Notes,
11.375%, due 9/15/03 B3 B 511,250(3)
4,010,000 Owens-Illinois, Inc., Senior
Debentures, 11.00%, due
12/1/03 Ba3 (5) BB (5) 4,471,150
4,060,000 Stewart Enterprises, Inc.,
Notes, 6.70%, due 12/1/03 Baa3 BBB 3,981,480
3,810,000 Duty Free International, Inc.,
Notes, 7.00%, due 1/15/04 Ba1 BBB- 3,609,975
350,000 Container Corp. of America,
Senior Notes, Ser. A, 11.25%,
due 5/1/04 B1 B+ 378,875
2,370,000 Tenet Healthcare Corp., Senior
Subordinated Notes, 10.125%,
due 3/1/05 Ba3 B+ 2,615,888
395,000 Collins & Aikman Products Co.,
Senior Subordinated Notes,
11.50%, due 4/15/06 B3 B 430,550
735,000 JCAC, Inc., Senior
Subordinated Notes, 10.125%,
due 6/15/06 B2 B 762,563
795,000 Printpack, Inc., Senior
Subordinated Notes, 10.625%,
due 8/15/06 B3 B+ 828,788(3)
4,180,000 Time Warner Inc., Notes,
8.11%, due 8/15/06 Ba1 BBB- 4,289,558
395,000 Commonwealth Aluminum Corp.,
Senior Subordinated Notes,
10.75%, due 10/1/06 B2 B- 405,862
455,000 Iron Mountain Inc., Senior
Subordinated Notes, 10.125%,
due 10/1/06 B3 B- 480,594
1,250,000 International Home Foods,
Senior Subordinated Notes,
10.375%, due 11/1/06 B2 B- 1,296,875(3)
300,000 International Knife & Saw,
Inc., Senior Subordinated
Notes, 11.375%, due 11/15/06 B3 B- 311,211(3)
915,000 Motors and Gears, Inc., Senior
Notes, Ser. A, 10.75%, due
11/15/06 B3 BB- 943,594(3)
955,000 Allied Waste North America,
Inc., Senior Subordinated
Notes, 10.25%, due 12/1/06 B3 B+ 1,005,137(3)
610,000 Fresenius Medical Care Capital
Trust, Preferred Securities,
9.00%, due 12/1/06 Ba3 B+ 621,437
</TABLE>
15
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
Principal Rating(1) Market
Amount Moody's S&P Value(2)
- ---------- ----------- --------- ------------
<C> <S> <C> <C> <C>
$ 175,000 Newport News Shipbuilding
Inc., Senior Subordinated
Notes, 9.25%, due 12/1/06 B1 B+ $ 180,250(3)
300,000 Safelite Glass Corp., Senior
Subordinated Notes, 9.875%,
due 12/15/06 B3 B 307,500(3)
823,000 AMTROL Acquisition, Inc.,
Senior Subordinated Notes,
10.625%, due 12/31/06 B3 B- 835,345(3)
5,705,000 Tenneco Inc., Debentures,
10.20%, due 3/15/08 Baa3 BBB- 6,935,055
395,000 Stone Container Corp., Rating
Adjustable Senior Notes,
11.875%, due 8/1/16 B1 BB- 417,713
------------
TOTAL CORPORATE DEBT
SECURITIES (COST $117,010,958) 116,796,974
------------
TOTAL INVESTMENTS (101.2%)
(COST $261,293,833) 259,817,277(6)
Liabilities, less cash,
receivables and other assets
[(1.2%)] (3,013,090)
------------
TOTAL NET ASSETS (100.0%) $256,804,187
------------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
16
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
1)Credit ratings are unaudited.
2)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 may be valued at cost which,
when combined with interest earned, approximates market value.
3)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 December 31, 1996, these
securities amounted to $10,048,434 or 3.9% of net assets.
4)Rated BBB- by Fitch Investors Services, Inc.
5)Rated BBB- by Duff & Phelps Credit Rating Co.
6)At December 31, 1996, the cost of investments for Federal income tax purposes
was $261,293,833. Gross unrealized appreciation of investments was $1,269,234
and gross unrealized depreciation of investments was $2,745,790, resulting in
net unrealized depreciation of $1,476,556, based on cost for Federal income
tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
December 31,
1996
--------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 259,817,277
Cash 4,460
Interest receivable 3,119,366
Receivable for variation margin (Note A) 234,750
Deferred organization costs (Note A) 53,701
Prepaid expenses and other assets 13,876
Receivable for securities sold 5,177
--------------
263,248,607
--------------
LIABILITIES
Payable for securities purchased 6,352,873
Payable to investment manager (Note B) 54,041
Accrued expenses 37,506
--------------
6,444,420
--------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 256,804,187
--------------
NET ASSETS consist of:
Paid-in capital $ 258,252,244
Net unrealized depreciation in value of
investment securities and financial futures
contracts (1,448,057)
--------------
NET ASSETS $ 256,804,187
--------------
*Cost of investments $ 261,293,833
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1996
------------
<S> <C>
INVESTMENT INCOME
Interest income $16,829,148
------------
Expenses:
Investment management fee (Note B) 619,883
Custodian fees (Note B) 122,366
Amortization of deferred organization and
initial offering expenses (Note A) 16,174
Legal fees 14,934
Auditing fees 12,552
Trustees' fees and expenses 11,524
Accounting fees 10,000
Insurance expense 8,396
Miscellaneous 410
------------
Total expenses 816,239
------------
Net investment income 16,012,909
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment securities
sold 5,433
Net realized loss on financial futures
contracts (Note A) (330,511)
Change in net unrealized appreciation
(depreciation) of investment securities (4,079,802)
Net unrealized appreciation of financial
futures contracts (Note A) 28,499
------------
Net loss on investments (4,376,381)
------------
Net increase in net assets resulting from
operations $11,636,528
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<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)
Year Ended to
December 31, December 31,
1996 1995
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 16,012,909 $ 14,618,430
Net realized gain (loss) on
investments (325,078) 3,090,324
Change in net unrealized
appreciation (depreciation) of
investments (4,051,303) 4,988,722
-----------------------------
Net increase in net assets resulting
from operations 11,636,528 22,697,476
-----------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 60,190,555 33,220,562
Reductions (140,645,959) (89,109,317)
-----------------------------
Net decrease in net assets resulting
from transactions in investors'
beneficial interests (80,455,404) (55,888,755)
-----------------------------
NET DECREASE IN NET ASSETS (68,818,876) (33,191,279)
NET ASSETS:
Beginning of year 325,623,063 358,814,342
-----------------------------
End of year $256,804,187 $325,623,063
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Limited Maturity Bond 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 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 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, 1996, the unamortized balance of such
expenses amounted to $53,701.
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.
7) 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 liquid debt
obligations, 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
financial futures contracts. When the contracts are closed, the Series
recognizes a gain or loss. Risks of entering into futures contracts include
the possibility there may be an illiquid market and/or a change in the value
of the contract may not correlate with changes in the value of the underlying
securities.
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
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 closed 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 December 31, 1996, open positions in financial futures contracts were
as follows:
<TABLE>
<CAPTION>
UNREALIZED
APPRECIATION
EXPIRATION OPEN CONTRACTS POSITION (DEPRECIATION)
<S> <C> <C> <C>
118 U.S. Treasury Notes, 2
March 1997 Year Long $ 5,531
289 U.S. Treasury Notes, 5
March 1997 Year Short 50,937
179 U.S. Treasury Notes, 10
March 1997 Year Short (27,969)
</TABLE>
At December 31, 1996, the Series had deposited $615,000 principal of Alco
Capital Resource, Inc., Medium-Term Notes, Ser. B, 5.46%, due 2/22/99 in a
segregated account to cover margin requirements on open financial futures
contracts.
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 .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
principals of Neuberger& Berman, LLC ("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 principals of Neuberger and/or
officers and/or directors of Management.
The Series has an expense offset arrangement in connection with its custodian
contract. The impact of this arrangement, reflected in the Statement of
Operations, is less than .01% of the Series' average daily net assets.
NOTE C -- SECURITIES TRANSACTIONS:
During the year ended December 31, 1996, there were purchase and sale
transactions (excluding short-term securities and financial futures contracts)
of $318,368,374 and $298,251,855, respectively.
22
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Limited Maturity Bond Investments
<TABLE>
<CAPTION>
Period from
May 1, 1995
(Commencement
of
Operations)
Year Ended to
December 31, December 31,
1996 1995
---------------------------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses .33% .32%(1)
---------------------------
Net Investment Income 6.46% 6.34%(1)
---------------------------
Portfolio Turnover Rate 132% 78%
---------------------------
Net Assets, End of Year (in millions) $256.8 $325.6
---------------------------
</TABLE>
1) Annualized.
23
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees of
Advisers Managers Trust and
Owners of Beneficial Interest of AMT Limited Maturity Bond Investments
We have audited the accompanying Statement of Assets and Liabilities,
including the Schedule of Investments, of AMT Limited Maturity Bond Investments,
one of the series comprising Advisers Managers Trust (the "Trust"), as of
December 31, 1996, and the related Statement of Operations for the year then
ended, and the Statement of Changes in Net Assets and the Financial Highlights
for the year then ended and 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 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 and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1996, by correspondence with the custodian
and brokers or other appropriate auditing procedures where replies from brokers
were not received. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our 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 AMT
Limited Maturity Bond Investments of Advisers Managers Trust at December 31,
1996, the results of its operations for the year then ended, and the changes in
its net assets and the financial highlights for the year then ended and 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 27, 1997
24
