<PAGE>
PARTNERS PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1996
NBAMT0201296
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Partners Portfolio
The financial sector made a positive contribution to the Portfolio in 1996.
Specifically, the Portfolio benefited from our holdings in CITICORP. Many
financial companies, including CITICORP, have instituted stock buyback programs,
which bodes well for valuations. In addition, the banking industry should
benefit from strength in emerging markets and global relationships.
During 1996, the Portfolio was underweighted in the energy and technology
sectors relative to the S&P "500." This hindered and helped the Portfolio,
respectively. The Portfolio continued to add selectively to its technology and
electronics positions throughout the year. Two examples are Komag and KLA. We
believed that some of these technology positions had long-term potential based
on consumer demand.
In the third quarter, the Portfolio seized an opportunity to purchase Philip
Morris at a low relative valuation after a federal court decertified a class
action suit brought by smokers seeking damages. This case sets a precedent in
the industry and may influence future class-action suits.
A recent addition to the portfolio was Evergreen Media, which operates 34
radio stations across the nation. Historically, radio has been a positive
contributor because it is a legitimate cash flow business. Only in one year out
of the last 40 has spending on radio advertising dropped. Radio has become a
more investable business over the last few years, as government regulations have
eased regarding the number of radio stations a single entity can own in any one
market. We believe radio is probably underpriced relative to the number of
people you can reach.
In the retail sector, WalMart is another example of a position that we
purchased. The stock is being penalized by Wall Street because it has not
continued its 20%-30% annual growth rate. The P/E multiple should range from 16
to 18. WalMart recently initiated a small buyback of their stock which should
help to stimulate the price.
La Quinta Inns is a position that was attractive on a value versus cash flow
basis. Its hotels (240 inns in 29 states), popular among business travelers in
the Southwest, have undergone major renovations. La Quinta is completing a stock
repurchase program authorized in 1995, and its board has authorized a second
repurchase campaign of up to $10 million of company stock.
Michael Kassen Robert Gendelman
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
- --------------------------------------------------------------------------------
Partners Portfolio
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C> <C>
Average Annual Total Return (1)
Partners Portfolio S&P "500" (2)
1 Year +29.57% +22.90%
Life of Fund +21.73% +21.14%
Partners Portfolio S&P "500"
03/22/94 $10,00.00 $10,000.00
12/31/94 $9770.00 $10,084.95
1995 $13,333.15 $13,861.23
1996 $17,275.80 $17,035.45
</TABLE>
The inception date of Partners Portfolio (the "Fund") is 3/22/94.
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 S&P "500" Index is an unmanaged index generally considered to be
representative of stock market activity. Please note that indices do not take
into account any fees and expenses of investing in the individual securities
that they track, and that individuals cannot invest directly in any index. 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
- --------------------------------------------------------------------------------
Partners Portfolio
<TABLE>
<CAPTION>
December 31,
1996
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 679,421,051
Receivable for Trust shares sold 26,631,733
Deferred organization costs (Note A) 6,245
--------------
706,059,029
--------------
LIABILITIES
Payable for Trust shares redeemed 344,530
Payable to administrator (Note B) 162,936
Accrued expenses 116,784
--------------
624,250
--------------
NET ASSETS at value $ 705,434,779
--------------
NET ASSETS consist of:
Par value $ 42,801
Paid-in capital in excess of par value 594,455,604
Accumulated undistributed net investment
income 2,244,981
Accumulated net realized gains on investment 37,532,345
Net unrealized appreciation in value of
investment 71,159,048
--------------
NET ASSETS at value $ 705,434,779
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 42,801,182
--------------
NET ASSET VALUE, offering and redemption price per
share $16.48
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Partners Portfolio
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1996
------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 6,085,187
------------
Expenses:
Administration fee (Note B) 1,175,467
Shareholder reports 118,495
Legal fees 31,643
Trustees' fees and expenses 19,699
Registration and filing fees 16,897
Custodian fees 10,000
Auditing fees 5,642
Amortization of deferred organization and
initial offering expenses (Note A) 2,818
Miscellaneous 2,688
Expenses from Series (Notes A & B) 2,349,644
------------
Total expenses 3,732,993
------------
Net investment income 2,352,194
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM
SERIES (NOTE A)
Net realized gain on investment securities 37,773,397
Change in net unrealized appreciation of
investment securities 65,242,529
------------
Net gain on investments from Series (Note
A) 103,015,926
------------
Net increase in net assets resulting from
operations $105,368,120
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Partners Portfolio
<TABLE>
<CAPTION>
Year Ended
December 31,
1996 1995
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 2,352,194 $ 601,383
Net realized gain on investments
from Series (Note A) 37,773,397 9,230,410
Change in net unrealized
appreciation of investments from
Series (Note A) 65,242,529 6,085,462
-----------------------------
Net increase in net assets resulting
from operations 105,368,120 15,917,255
-----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (753,971) (13,992)
Net realized gain on investments (9,424,638) (97,943)
-----------------------------
Total distributions to shareholders (10,178,609) (111,935)
-----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 579,349,003 206,877,990
Proceeds from reinvestment of
dividends and distributions 10,178,609 111,935
Payments for shares redeemed (186,824,176) (24,631,916)
-----------------------------
Net increase from Trust share
transactions 402,703,436 182,358,009
-----------------------------
NET INCREASE IN NET ASSETS 497,892,947 198,163,329
NET ASSETS:
Beginning of year 207,541,832 9,378,503
-----------------------------
End of year $ 705,434,779 $ 207,541,832
-----------------------------
Accumulated undistributed net
investment income at end of year $ 2,244,981 $ 600,049
-----------------------------
NUMBER OF TRUST SHARES:
Sold 38,994,756 16,798,321
Issued on reinvestment of dividends
and distributions 757,337 10,910
Redeemed (12,638,219) (2,082,241)
-----------------------------
Net increase in shares outstanding 27,113,874 14,726,990
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust December 31, 1996
- --------------------------------------------------------------------------------
Partners Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Partners 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 Partners Investments, a series of Advisers
Managers Trust (the "Series") having the same investment objective and
policies as the Fund. The value of the Fund's investment in the Series
reflects the Fund's proportionate interest in the net assets of the Series
(100% at December 31, 1996). The performance of the Fund is directly affected
by the performance of the Series. The financial statements of the Series,
including the Schedule of Investments, are included elsewhere in this report
and should be read in conjunction with the Fund's financial statements.
2) PORTFOLIO VALUATION: The Fund records its investment in the Series at value.
Investment securities held by the Series are valued by Advisers Managers
Trust as indicated in the notes following the Series' Schedule of
Investments.
3) FEDERAL INCOME TAXES: The Fund and the other series of the Trust are treated
as separate entities for Federal income tax purposes. It is the policy of the
Fund to continue to qualify as a regulated investment company by complying
with the provisions available to certain investment companies, as defined in
applicable sections of the Internal Revenue Code, and to make distributions
of investment company taxable income and net capital gains (after reduction
for any amounts available for Federal income tax purposes as capital loss
carryforwards) sufficient to relieve it from all, or substantially all,
Federal income taxes. Accordingly, the Fund paid no Federal income taxes and
no provision for Federal income taxes was required.
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net of
Series expenses, daily on its investment in the Series. Dividends and
distributions from net realized capital gains, if any, are normally
distributed in February. Income dividends and capital gain distributions to
shareholders are recorded on the ex-dividend date. To the extent the Fund's
net realized capital gains, if any, can be offset by capital loss
carryforwards, it is the policy of the Fund not to distribute such gains.
The Fund distinguishes between dividends on a tax basis and a financial
reporting basis and only distributions in excess of tax basis earnings and
profits are reported in the financial statements as a return of capital.
Differences
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1996
- --------------------------------------------------------------------------------
Partners Portfolio
in the recognition or classification of income between the financial
statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains.
5) ORGANIZATION EXPENSES: Expenses incurred by the Fund in connection with its
organization are being amortized by the Fund on a straight-line basis over a
five-year period. At December 31, 1996, the unamortized balance of such
expenses amounted to $6,245.
6) EXPENSE ALLOCATION: Expenses directly attributable to a fund are charged to
that fund. Expenses not directly attributed to a fund are allocated, on the
basis of relative net assets, to each of the funds of the Trust.
7) OTHER: All net investment income and realized and unrealized capital gains
and losses of the Series are allocated pro rata among the Fund and any other
investors in the Series.
NOTE B -- ADMINISTRATION FEES, DISTRIBUTION ARRANGEMENTS, AND OTHER TRANSACTIONS
WITH AFFILIATES:
Fund shares are issued and redeemed in connection with investments in and
payments under certain variable annuity contracts and variable life insurance
policies issued through separate accounts of life insurance companies.
The Fund retains Neuberger&Berman Management Incorporated ("Management") as
its administrator under an Administration Agreement ("Agreement") dated as of
May 1, 1995. Pursuant to this Agreement the Fund pays Management an
administration fee at the annual rate of .30% of the Fund's average daily net
assets and indirectly pays for investment management services through its
investment in the Series (see Note B of Notes to Financial Statements of the
Series). Prior to conversion, the predecessor of the Fund paid Management for
investment advisory and administrative services a fee at the annual rate of .70%
of the first $250 million of its average daily net assets, .675% of the next
$250 million, .65% of the next $250 million, .625% of the next $250 million, and
.60% of its average daily net assets in excess of $1 billion.
On April 16, 1993, the shareholders of the Trust adopted a distribution plan
("Plan") which provided that the predecessor to the Trust, on behalf of any of
its series, could reimburse Management after each calendar quarter for certain
distribution expenses in an amount not to exceed .25%, on an annual basis, of
that series' average daily net assets as of the close of such calendar quarter.
The Plan became effective on May 1, 1993, was implemented on November 1, 1993,
and was terminated on April 30, 1995. 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.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1996
- --------------------------------------------------------------------------------
Partners Portfolio
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.
NOTE C -- INVESTMENT TRANSACTIONS:
During the year ended December 31, 1996, additions and reductions in the
Fund's investment in its Series amounted to $559,229,295 and $128,962,782,
respectively.
9
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Partners Portfolio
The following table includes selected data for a share outstanding throughout
each year and other performance information derived from the Financial
Statements. It should be read in conjunction with its Series' Financial
Statements and notes thereto.(1)
<TABLE>
<CAPTION>
Period
from
March
22,
1994(3)
to
Year Ended December December
31, 31,
1996(2) 1995(2) 1994
-------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Year $13.23 $ 9.77 $10.00
-------------------------------
Income From Investment Operations
Net Investment Income .10 .11 .03
Net Gains or Losses on Securities
(both realized and unrealized) 3.69 3.43 (.26)
-------------------------------
Total From Investment Operations 3.79 3.54 (.23)
-------------------------------
Less Distributions
Dividends (from net investment
income) (.04) (.01) --
Distributions (from capital gains) (.50) (.07) --
-------------------------------
Total Distributions (.54) (.08) --
-------------------------------
Net Asset Value, End of Year $16.48 $13.23 $ 9.77
-------------------------------
Total Return(4) +29.57% +36.47% -2.30%(5)
-------------------------------
Ratios/Supplemental Data
Net Assets, End of Year (in
millions) $705.4 $207.5 $ 9.4
-------------------------------
Ratio of Expenses to Average Net
Assets .95% 1.09% 1.75%(6)
-------------------------------
Ratio of Net Investment Income to
Average Net Assets .60% .97% .45%(6)
-------------------------------
Portfolio Turnover Rate(7) -- 76% 90%
-------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
10
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust December 31, 1996
- --------------------------------------------------------------------------------
Partners Portfolio
1)The per share amounts which are shown have been computed based on the average
number of shares outstanding during each year.
2)The per share amounts and ratios which are shown reflect income and expenses,
including the Fund's proportionate share of the Series' income and expenses.
3)The date investment operations commenced.
4)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.
5)Not annualized.
6)Annualized.
7)The Fund transferred all of its investment securities into its Series on April
28, 1995. After that date the Fund invested only in its Series, and that
Series, rather than the Fund, engaged in securities transactions. Therefore,
after that date the Fund had no portfolio turnover rate. Portfolio turnover
rates for the periods ending after April 28, 1995, are included elsewhere in
AMT Partners Investments' Financial Highlights.
11
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees of
Neuberger&Berman Advisers Management Trust and
Shareholders of Partners Portfolio
We have audited the accompanying Statement of Assets and Liabilities of
Partners 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 two years in the period then ended and for the period
from March 22, 1994 (Commencement of Operations) to December 31, 1994. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements 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
Partners Portfolio of Neuberger&Berman Advisers Management Trust at December 31,
1996, the results of its operations for the year then ended, and 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 Partners Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
COMMON STOCKS (91.7%)
AEROSPACE (1.0%)
138,800 Litton Industries $ 6,610,350(2)
------------
AIRLINES (0.6%)
150,000 Continental Airlines Class B 4,237,500(2)
------------
AUTO/TRUCK REPLACEMENT PARTS (0.8%)
110,500 Goodyear Tire & Rubber 5,676,937
------------
AUTOMOBILE MANUFACTURING (1.5%)
76,000 Chrysler Corp. 2,508,000
204,700 LucasVarity ADR 7,778,600(2)
------------
10,286,600
------------
BANKING & FINANCIAL SERVICES (8.0%)
160,000 American Express 9,040,000
175,000 Capital One Financial 6,300,000
80,800 CITICORP 8,322,400
175,100 Countrywide Credit Industries 5,012,237
231,600 CWM Mortgage Holdings 4,979,400
210,000 First USA 7,271,250
50,000 Wells Fargo 13,487,500
------------
54,412,787
------------
BUILDING MATERIALS, CONSTRUCTION & REFURNISHING (1.7%)
200,000 Del Webb 3,275,000
242,300 USG Corp. 8,207,912(2)
------------
11,482,912
------------
BUSINESS SERVICES (0.4%)
196,666 ACNielsen Corp. 2,974,573(2)
------------
CHEMICALS (7.5%)
225,300 ChemFirst Inc. 5,210,063
160,000 duPont 15,100,000
33,706 Fresenius Medical Care ADR 947,981(2)
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
128,800 Great Lakes Chemical 6,021,400
230,400 IMC Global 9,014,400
75,250 Mississippi Chemical $ 1,806,005
160,700 Morton International 6,548,525
117,200 W.R. Grace 6,065,100
------------
50,713,474
------------
COMMUNICATIONS (0.5%)
119,800 Airtouch Communications 3,024,950(2)
------------
CONSUMER GOODS & SERVICES (1.6%)
150,000 First Brands 4,256,250
120,000 Tupperware Corp. 6,435,000
------------
10,691,250
------------
DIVERSIFIED (1.0%)
150,000 Kansas City Southern
Industries 6,750,000
------------
ELECTRONICS (4.3%)
190,000 Applied Materials 6,828,125(2)
180,500 KLA Instruments 6,407,750(2)
329,400 Loral Space & Communications 6,052,725(2)
226,600 Sundstrand Corp. 9,630,500
------------
28,919,100
------------
ENTERTAINMENT (4.7%)
312,600 Evergreen Media 7,815,000(2)
456,000 Mirage Resorts 9,861,000(2)
200,000 Royal Caribbean Cruises 4,675,000
250,400 Time Warner 9,390,000
------------
31,741,000
------------
FOOD & DRUG STORES (1.2%)
217,400 Revco D.S. 8,043,800(2)
------------
</TABLE>
13
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
FOOD & TOBACCO (2.0%)
108,700 Philip Morris 12,242,337
40,000 RJR Nabisco Holdings 1,360,000
------------
13,602,337
------------
FOOD PRODUCTS (1.5%)
341,100 IBP, Inc. $ 8,271,675
40,000 McDonald's Corp. 1,810,000
------------
10,081,675
------------
HEALTH CARE (4.6%)
317,350 Columbia/HCA Healthcare 12,932,012
193,919 Novartis AG ADR 11,065,491
250,000 Universal Health Services
Class B 7,156,250(2)
------------
31,153,753
------------
INDUSTRIAL GOODS & SERVICES (3.0%)
217,900 AK Steel Holding 8,634,288
357,600 Owens-Illinois 8,135,400(2)
91,100 XTRA Corp. 3,951,462
------------
20,721,150
------------
INSURANCE (6.6%)
150,000 Allstate Corp. 8,681,250(2)
262,200 Equitable Cos. 6,456,675
316,400 EXEL Ltd. 11,983,650
50,000 Orion Capital 3,056,250
100,000 Progressive Corp. 6,737,500
178,333 Travelers Group 8,091,860
------------
45,007,185
------------
LODGING (0.9%)
337,100 La Quinta Inns 6,447,038
------------
MEDIA (1.8%)
695,452 Comcast Corp. Class A Special 12,387,741
------------
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
OIL & GAS (6.4%)
252,000 Cabot Corp. 6,331,500
886,100 Gulf Canada Resources 6,534,988(2)
90,000 Noble Affiliates 4,308,750
153,600 Tejas Gas 7,315,200(2)
145,400 Tidewater Inc. 6,579,350
129,000 Triton Energy $ 6,256,500
214,004 Union Pacific Resources Group 6,259,617
------------
43,585,905
------------
PAPER & FOREST PRODUCTS (2.4%)
330,000 Fort Howard 9,136,875(2)
105,000 Willamette Industries 7,310,625
------------
16,447,500
------------
PUBLISHING & BROADCASTING (5.3%)
225,600 E.W. Scripps 7,896,000
394,000 Hollinger International 4,531,000
276,200 Knight-Ridder 10,564,650
250,000 Providence Journal 7,656,250(2)
185,000 Young Broadcasting 5,411,250(2)
------------
36,059,150
------------
RAILROADS (2.6%)
115,000 Burlington Northern Santa Fe 9,933,125
131,300 Union Pacific 7,894,413
------------
17,827,538
------------
REAL ESTATE (3.7%)
182,500 Arden Realty Group 5,064,375
425,000 Host Marriott 6,800,000(2)
66,800 Risk Capital Holdings 1,294,250(2)
</TABLE>
14
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
643,100 SECURITY CAPITAL U.S. REALTY 8,231,680(3)
65,000 Starwood Lodging Trust 3,583,125
------------
24,973,430
------------
RETAILING (3.8%)
157,000 Harcourt General 7,241,625
200,000 Linens 'n Things 3,925,000
170,000 Nordstrom, Inc. 6,024,375
383,800 Wal-Mart Stores 8,779,425
------------
25,970,425
------------
RETAILING & APPAREL (2.5%)
585,000 Price/Costco $ 14,698,125(2)
80,000 Toys "R" Us 2,400,000(2)
------------
17,098,125
------------
SPECIALTY CHEMICALS (0.5%)
89,300 Millipore Corp. 3,694,788
------------
STEEL (0.6%)
203,000 Steel Dynamics 3,882,375(2)
------------
TECHNOLOGY (7.5%)
190,200 Autodesk, Inc. 5,325,600
235,000 Komag, Inc. 6,374,375(2)
235,000 Seagate Technology 9,282,500(2)
165,000 Texas Instruments 10,518,750
150,000 Varian Associates 7,631,250
100,000 Vodafone Group ADR 4,137,500
144,400 Xerox Corp. 7,599,050
------------
50,869,025
------------
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
TRANSPORTATION (1.2%)
90,000 AMR Corp. 7,931,250(2)
------------
TOTAL COMMON STOCKS (COST
$552,637,347) 623,305,623
------------
PREFERRED STOCKS (0.6%)
121,100 Fresenius Medical Care, Class
D $ 15,743
70,000 Loral Space & Communications
Cv., 6% 3,998,750(3)
------------
TOTAL PREFERRED STOCKS (COST
$3,524,711) 4,014,493
------------
<CAPTION>
Principal
Amount
- ----------
<C> <S> <C>
U.S. TREASURY SECURITIES (7.6%)
$51,700,000 U.S. Treasury Bills, 4.78% -
4.835%, due 1/23/97 - 2/13/97
(COST $51,500,460) 51,501,450
------------
TOTAL INVESTMENTS (99.9%)
(COST $607,662,518) 678,821,566(4)
Cash, receivables and other
assets, less liabilities
(0.1%) 599,486
------------
TOTAL NET ASSETS (100.0%) $679,421,052
------------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
15
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Partners Investments
1) Investment securities of the Series are valued at the last sales price;
securities for which no sales were reported, unless otherwise noted, are
valued at the mean between the closing bid and asked prices. The Series
values all other securities by a method that the trustees of Advisers
Managers Trust believe accurately reflects fair value. Short-term debt
securities with less than 60 days until maturity may be valued at cost which,
when combined with interest earned, approximates market value.
2) Non-income producing security.
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 $12,230,430 or 1.8% of net assets for AMT
Partners Investments.
4) At December 31, 1996, the cost of investments for Federal income tax purposes
was $608,227,996. Gross unrealized appreciation of investments was
$77,339,355 and gross unrealized depreciation of investments was $6,745,785,
resulting in net unrealized appreciation of $70,593,570, based on cost for
Federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
December 31,
1996
--------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 678,821,566
Cash 29,171
Dividends receivable 731,549
Receivable for securities sold 173,192
Deferred organization costs (Note A) 17,535
Prepaid expenses 5,229
--------------
679,778,242
--------------
LIABILITIES
Payable to investment manager (Note B) 290,511
Accrued expenses 66,679
--------------
357,190
--------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 679,421,052
--------------
NET ASSETS consist of:
Paid-in capital $ 608,262,004
Net unrealized appreciation in value of
investment securities 71,159,048
--------------
NET ASSETS $ 679,421,052
--------------
*Cost of investments $ 607,662,518
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1996
------------
<S> <C>
INVESTMENT INCOME
Income:
Dividend income $ 5,039,089
Interest income 1,078,117
Foreign taxes withheld (Note A) (32,019)
------------
Total income 6,085,187
------------
Expenses:
Investment management fee (Note B) 2,119,916
Custodian fees (Note B) 137,661
Auditing fees 30,797
Legal fees 21,306
Trustees' fees and expenses 20,315
Accounting fees 10,000
Amortization of deferred organization and
initial offering expenses (Note A) 5,282
Insurance expense 3,801
Miscellaneous 566
------------
Total expenses 2,349,644
------------
Net investment income 3,735,543
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment securities
sold 37,773,397
Change in net unrealized appreciation of
investment securities 65,242,529
------------
Net gain on investments 103,015,926
------------
Net increase in net assets resulting from
operations $106,751,469
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Partners 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 $ 3,735,543 $ 759,627
Net realized gain on investments 37,773,397 8,299,593
Change in net unrealized
appreciation of investments 65,242,529 5,075,724
-----------------------------
Net increase in net assets resulting
from operations 106,751,469 14,134,944
-----------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 559,229,295 110,846,764
Reductions (128,962,782) (14,612,936)
-----------------------------
Net increase in net assets resulting
from transactions in investors'
beneficial interests 430,266,513 96,233,828
-----------------------------
NET INCREASE IN NET ASSETS 537,017,982 110,368,772
NET ASSETS:
Beginning of year 142,403,070 32,034,298
-----------------------------
End of year $679,421,052 $142,403,070
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Partners Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Partners Investments (the "Series") is a separate operating
series of Advisers Managers Trust ("Managers Trust"), a New York common law
trust organized as of May 24, 1994. Managers Trust is currently comprised of
six separate operating series. Managers Trust is registered as a diversified,
open-end management investment company under the Investment Company Act of
1940, as amended. After the close of business on April 28, 1995, each series
of Neuberger&Berman Advisers Management Trust invested all of its net
investable assets (cash, securities, and receivables relating to securities)
in a corresponding series of Managers Trust, receiving a beneficial interest
in that series.
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
2) PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the Series' Schedule of Investments.
3) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the Series
becomes aware of the dividends. Interest income, including original issue
discount, where applicable, and accretion of discount on short-term
investments, is recorded on the accrual basis. Realized gains and losses from
securities transactions are recorded on the basis of identified cost.
4) FEDERAL INCOME TAXES: Managers Trust intends to comply with the requirements
of the Internal Revenue Code of 1986, as amended. Each Series of Managers
Trust also intends to conduct its operations so that each of its investors
will be able to qualify as a regulated investment company. Each Series will
be treated as a partnership for Federal income tax purposes and is therefore
not subject to Federal income tax.
5) FOREIGN TAXES: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
6) ORGANIZATION EXPENSES: Expenses incurred by the Series in connection with its
organization are being amortized by the Series on a straight-line basis over
a five-year period. At December 31, 1996, the unamortized balance of such
expenses amounted to $17,535.
7) EXPENSE ALLOCATION: Expenses directly attributable to a series are charged to
that series. Expenses not directly attributed to a series are allocated, on
the basis of relative net assets, to each of the series of Managers Trust.
8) REPURCHASE AGREEMENTS: The Series may enter into repurchase agreements with
institutions that the Series' investment manager has determined are
creditworthy. Each repurchase agreement is recorded at cost. The Series
requires that the securities purchased in a repurchase transaction be
transferred to the custodian in a manner sufficient to enable the Series to
obtain those securities in the event of a default under the repurchase
agreement. The Series monitors, on a daily basis, the value of the securities
transferred to ensure that their value, including accrued interest, is
greater than amounts owed to the Series under each such repurchase agreement.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Partners Investments
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains Neuberger&Berman Management Incorporated ("Management") as
its investment manager under a Management Agreement dated as of May 1, 1995. For
such investment management services, the Series pays Management a fee at the
annual rate of .55% of the first $250 million of the Series' average daily net
assets, .525% of the next $250 million, .50% of the next $250 million, .475% of
the next $250 million, .45% of the next $500 million, and .425% of average daily
net assets in excess of $1.5 billion.
All of the capital stock of Management is owned by individuals who are also
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) of $830,563,189 and $441,831,287,
respectively.
During the year ended December 31, 1996, brokerage commissions on securities
transactions amounted to $1,753,707, of which Neuberger received $1,140,965, and
other brokers received $612,742.
21
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Partners 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 .60% .67%(1)
---------------------------------
Net Investment Income .95% 1.34%(1)
---------------------------------
Portfolio Turnover Rate 118% 98%
---------------------------------
Average Commission Rate Paid $0.0583 $0.0594
---------------------------------
Net Assets, End of Year (in millions) $679.4 $142.4
---------------------------------
</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 Partners Investments
We have audited the accompanying Statement of Assets and Liabilities,
including the Schedule of Investments, of AMT Partners 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
Partners 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
23
