<PAGE>
GOVERNMENT INCOME PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1997
NBAMTSA50697
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
The bullish fundamentals of fixed income markets became more apparent in the
second quarter of 1997. The budget deficit appears to have shrunk dramatically,
the Federal Reserve has remained friendly, and inflation statistics are the
lowest in a generation. With this backdrop, since mid-April, bond investors
drove rates down on an average of 40 basis points across the yield spectrum.
We indicated to you in past reports that the fundamentals for fixed income
securities were positive and that we participated in the rally by maintaining a
positive viewpoint on the market. We have maintained significant positions in
the mortgage area. Recently we have been selectively pruning mortgages that have
met our targets.
Mortgages continued their strong performance in the second quarter with
discount coupons. Throughout the second quarter, mortgages witnessed significant
overseas buying, and CMO production provided strong support for the sector. In
response, we felt that mortgages may have reached a plateau and reduced
mortgage-backed allocations shifting coupon exposure to less
prepayment-sensitive deep discount securities. Specifically, we sold FNMA 7%,
GNMA 8%, GNMA 8 1/2% and purchased GNMA 6 1/2%. Going forward, we believe the
mortgage-backed sector will eventually adjust to the enhanced prepayment risk
derived from the current bond market rally and could again provide better
opportunities for fixed income investors.
As we focus on the final six months of 1997, it is our current belief that
fixed income securities, in light of powerful fundamental forces, present good
investment opportunities. As usual, we will be vigilant in our sector and
security selection, and we will attempt to find values that are not always
recognized by the general market.
A-2
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
June 30,
1997
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 4,003,845
Deferred organization costs (Note A) 4,977
Receivable from administrator -- net (Note
B) 2,553
Receivable for Trust shares sold 1,824
--------------
4,013,199
--------------
LIABILITIES
Accrued expenses 17,242
Payable for Trust shares redeemed 2,243
--------------
19,485
--------------
NET ASSETS at value $ 3,993,714
--------------
NET ASSETS consist of:
Par value $ 382
Paid-in capital in excess of par value 3,915,381
Accumulated undistributed net investment
income 103,770
Accumulated net realized losses on
investment (30,591)
Net unrealized appreciation in value of
investment 4,772
--------------
NET ASSETS at value $ 3,993,714
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 382,158
--------------
NET ASSET VALUE, offering and redemption price per
share $10.45
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-1
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1997
(UNAUDITED)
------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 126,691
------------
Expenses:
Administration fee (Note B) 7,646
Shareholder reports 11,038
Custodian fees 5,000
Amortization of deferred organization and
initial offering expenses (Note A) 1,430
Legal fees 153
Trustees' fees and expenses 98
Auditing fees 14
Miscellaneous 688
Expenses from Series (Notes A & B) 23,305
------------
Total expenses 49,372
Deduct -- expenses reimbursed by
administrator (Note B) (29,570)
------------
Total net expenses 19,802
------------
Net investment income 106,889
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
FROM SERIES (NOTE A)
Net realized loss on investment securities (15,492)
Change in net unrealized appreciation
(depreciation) of investment securities 17,719
------------
Net gain on investments from Series (Note
A) 2,227
------------
Net increase in net assets resulting from
operations $ 109,116
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
Six Months
Ended Year
June 30, Ended
1997 December 31,
(UNAUDITED) 1996
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 106,889 $ 161,508
Net realized loss on investments
from Series (Note A) (15,492) (15,099)
Change in net unrealized
appreciation (depreciation) of
investments from Series (Note A) 17,719 (63,858)
-----------------------------
Net increase in net assets resulting
from operations 109,116 82,551
-----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (162,111) (84,129)
Net realized gain on investments -- (8,629)
-----------------------------
Total distributions to shareholders (162,111) (92,758)
-----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 769,016 1,829,330
Proceeds from reinvestment of
dividends and distributions 162,111 92,758
Payments for shares redeemed (336,153) (651,702)
-----------------------------
Net increase from Trust share
transactions 594,974 1,270,386
-----------------------------
NET INCREASE IN NET ASSETS 541,979 1,260,179
NET ASSETS:
Beginning of period 3,451,735 2,191,556
-----------------------------
End of period $ 3,993,714 $ 3,451,735
-----------------------------
Accumulated undistributed net
investment income at end of period $ 103,770 $ 158,992
-----------------------------
NUMBER OF TRUST SHARES:
Sold 74,104 176,971
Issued on reinvestment of dividends
and distributions 15,862 9,023
Redeemed (32,529) (61,852)
-----------------------------
Net increase in shares outstanding 57,437 124,142
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Government Income Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Government Income Portfolio (the "Fund") is a separate operating
series of Neuberger&Berman Advisers Management Trust-SM- (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
trustees of the Trust may establish additional series or classes of shares
without the approval of shareholders.
The assets of each fund belong only to that fund, and the liabilities of
each fund are borne solely by that fund and no other.
The Fund seeks to achieve its investment objective by investing all of its
net investable assets in AMT Government Income Investments, a series of
Advisers Managers Trust (the "Series") having the same investment objective
and policies as the Fund. The value of the Fund's investment in the Series
reflects the Fund's proportionate interest in the net assets of the Series
(100% at June 30, 1997). 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 ($14,997 expiring in 2004, 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 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.
B-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Government Income Portfolio
5) ORGANIZATION EXPENSES: Expenses incurred by the Fund in connection with its
organization are being amortized by the Fund on a straight-line basis over a
five-year period. At June 30, 1997, the unamortized balance of such expenses
amounted to $4,977.
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-Registered Trademark- ("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. The Fund indirectly pays for
investment management services through its investment in the Series (see Note B
of Notes to Financial Statements of the Series).
Effective May 1, 1995, the trustees of the Trust adopted a non-fee
distribution plan for each series of the Trust.
Management has voluntarily undertaken to limit the Fund's expenses by
reimbursing the Fund for its operating expenses and its pro rata share of its
Series' operating expenses (including the fees payable to Management but
excluding interest, taxes, brokerage commissions, extraordinary expenses, and
transaction costs) which exceed, in the aggregate, 1% per annum of the Fund's
average daily net assets. This undertaking is subject to termination by
Management upon at least 60 days' prior written notice to the Fund. For the six
months ended June 30, 1997, such excess expenses amounted to $29,570.
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, was a reduction of $598,
which is less than .02% of the Fund's average daily net assets.
NOTE C -- INVESTMENT TRANSACTIONS:
During the six months ended June 30, 1997, additions and reductions in the
Fund's investment in its Series amounted to $754,615 and $317,292, respectively.
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Fund without audit by independent auditors. Annual reports
contain audited financial statements.
B-5
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements. It should be read in conjunction with its Series' Financial
Statements and notes thereto.(1)
<TABLE>
<CAPTION>
Six Months Ended Period from
June 30, Year Ended March 22, 1994(3)
1997 December 31, to December 31,
(UNAUDITED)(2) 1996(2) 1995(2) 1994
--------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.63 $10.93 $10.15 $10.00
--------------------------------------------------------
Income From Investment Operations
Net Investment Income .31 .67 .70 .37
Net Gains or Losses on Securities (both
realized and unrealized) (.03) (.54) .46 (.22)
--------------------------------------------------------
Total From Investment Operations .28 .13 1.16 .15
--------------------------------------------------------
Less Distributions
Dividends (from net investment income) (.46) (.39) (.38) --
Distributions (from capital gains) -- (.04) -- --
--------------------------------------------------------
Total Distributions (.46) (.43) (.38) --
--------------------------------------------------------
Net Asset Value, End of Period $10.45 $10.63 $10.93 $10.15
--------------------------------------------------------
Total Return(4) +2.73%(5) +1.32% +11.76% +1.50%(5)
--------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 4.0 $ 3.5 $ 2.2 $ 1.0
--------------------------------------------------------
Ratio of Expenses to Average Net Assets(6) 1.04%(7) 1.02% 1.05% 1.09%(7)
--------------------------------------------------------
Ratio of Net Investment Income to Average Net
Assets(6) 5.59%(7) 5.59% 5.71% 4.78%(7)
--------------------------------------------------------
Portfolio Turnover Rate(8) -- -- 2% 3%
--------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-6
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Government Income Portfolio
1) The per share amounts which are shown have been computed based on the average
number of shares outstanding during each fiscal period.
2) The per share amounts and ratios which are shown reflect income and expenses,
including the Fund's proportionate share of the Series' income and expenses.
3) The date investment operations commenced.
4) 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 fiscal
period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee future
results. Investment returns and principal may fluctuate and shares when
redeemed may be worth more or less than original cost. Total return figures
would have been lower if Management had not reimbursed certain expenses. The
total return information shown does not reflect expenses that apply to the
separate account or the related insurance policies, and the inclusion of
these charges would reduce the total return figures for all fiscal periods
shown.
5) Not annualized.
6) After reimbursement of expenses by Management as described in Note B of Notes
to Financial Statements. Had Management not undertaken such action the
annualized ratios to average daily net assets would have been:
<TABLE>
<CAPTION>
Period from
Six Months Ended March 22, 1994
June 30, Year Ended December 31, to December 31,
1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expenses 2.58% 2.95% 4.21% 2.57%
--------------------------------------------------------------
Net Investment Income 4.05% 3.66% 2.55% 3.30%
--------------------------------------------------------------
</TABLE>
7) Annualized.
8) The Fund transferred all of its investment securities into its Series on
April 28, 1995. After that date the Fund invested only in its Series, and
that Series, rather than the Fund, engaged in securities transactions.
Therefore, after that date the Fund had no portfolio turnover rate. Portfolio
turnover rates for the periods ending after April 28, 1995, are included
elsewhere in AMT Government Income Investments' Financial Highlights.
B-7
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- --------- ----------- --------- ----------
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES
(45.4%)
$ 80,000 U.S. Treasury Notes, 6.375%,
due 5/15/99 TSY TSY $ 80,389
40,000 U.S. Treasury Notes, 6.625%,
due 6/30/01 TSY TSY 40,368
215,000 U.S. Treasury Notes, 5.875%,
due 11/30/01 TSY TSY 210,732
325,000 U.S. Treasury Notes, 6.375%,
due 8/15/02 TSY TSY 324,834
185,000 U.S. Treasury Notes, 7.00%,
due 7/15/06 TSY TSY 190,232
215,000 U.S. Treasury Notes, 6.50%,
due 10/15/06 TSY TSY 213,948
121,332 U.S. Treasury
Inflation-Indexed Notes,
3.375%, due 1/15/07 TSY TSY 118,375
165,000 U.S. Treasury Bonds, 7.625%,
due 2/15/25 TSY TSY 180,639
465,000 U.S. Treasury Bonds, 6.75%,
due 8/15/26 TSY TSY 459,983
----------
TOTAL U.S. TREASURY SECURITIES
(COST $1,813,273) 1,819,500
----------
U.S. GOVERNMENT AGENCY
SECURITIES (17.4%)
180,000 Federal Farm Credit Bank,
Discount Notes, 5.41%, due
7/2/97 AGY AGY 179,944
250,000 Federal Home Loan Mortgage
Corp., Discount Notes, 5.41%,
due 7/14/97 AGY AGY 249,475
60,000 Federal Home Loan Bank, Bonds,
Ser. 98, 5.25%, due 5/26/98 AGY AGY 59,695
200,000 Student Loan Marketing
Association, Global Notes,
7.50%, due 3/8/00 AGY AGY 205,570
----------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES (COST $702,422) 694,684
----------
MORTGAGE-BACKED SECURITIES
(28.9%)
FEDERAL HOME LOAN MORTGAGE CORP.
92,653 Gold Mortgage Participation
Certificates, 7.00%, due
4/1/11 AGY AGY 92,572
94,888 Gold Mortgage Participation
Certificates, 7.50%, due
5/1/26 AGY AGY 95,242
FANNIE MAE
22,826 Pass-Through Certificates,
6.00%, due 3/1/11 AGY AGY 22,065
75,441 Pass-Through Certificates,
6.50%, due 11/1/10 & 1/1/26 AGY AGY 73,374
139,984 Pass-Through Certificates,
7.50%, due 5/1/11 & 1/1/27 AGY AGY 140,830
317,698 Pass-Through Certificates,
7.00%, due 1/1/10-4/1/27 AGY AGY 312,640
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
286,340 Pass-Through Certificates,
7.50%, due 7/15/11-3/15/26 AGY AGY 288,054
137,283 Pass-Through Certificates,
6.50%, due 4/15/26 AGY AGY 131,446
----------
TOTAL MORTGAGE-BACKED
SECURITIES (COST $1,145,511) 1,156,223
----------
</TABLE>
B-8
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- --------- ----------- --------- ----------
<C> <S> <C> <C> <C>
ASSET-BACKED SECURITIES (5.7%)
$ 100,000 Capita Equipment Receivables
Trust, Ser. 1996-1, Class A-4,
6.28%, due 6/15/00 Aaa AAA $ 99,992
50,000 Ford Credit Auto Loan Master
Trust, Auto Loan Certificates,
Ser. 1996-1, 5.50%, due
2/15/03 Aaa AAA 48,215
75,000 Standard Credit Card Master
Trust I, Credit Card
Participation Certificates,
Ser. 1994-4, Class A, 8.25%,
due 11/7/03 Aaa AAA 79,539
----------
TOTAL ASSET-BACKED SECURITIES
(COST $232,175) 227,746
----------
TOTAL INVESTMENTS (97.4%)
(COST $3,893,381) 3,898,153(2)
Cash, receivables and other
assets, less liabilities
(2.6%) 105,693
----------
TOTAL NET ASSETS (100.0%) $4,003,846
----------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-9
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
1) Investment securities of the Series are valued daily by obtaining bid price
quotations from independent pricing services on selected securities available
in each service's data base. For all other securities requiring daily
quotations, bid prices are obtained from principal market makers in those
securities or, if quotations are not available, by a method the trustees of
Advisers Managers Trust believe accurately reflects fair value. Short-term
investments with less than 60 days until maturity may be valued at cost
which, when combined with interest earned, approximates market value.
2) At June 30, 1997, the cost of investments for Federal income tax purposes was
$3,893,381. Gross unrealized appreciation of investments was $27,232 and
gross unrealized depreciation of investments was $22,460, resulting in net
unrealized appreciation of $4,772, based on cost for Federal income tax
purposes.
SEE NOTES TO FINANCIAL STATEMENTS
B-10
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
June 30,
1997
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 3,898,153
Cash 47,321
Interest receivable 51,013
Deferred organization costs (Note A) 12,192
Prepaid expenses 11
--------------
4,008,690
--------------
LIABILITIES
Accrued expenses 3,690
Payable to investment manager (Note B) 1,154
--------------
4,844
--------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 4,003,846
--------------
NET ASSETS consist of:
Paid-in capital $ 3,999,074
Net unrealized appreciation in value of
investment securities 4,772
--------------
NET ASSETS $ 4,003,846
--------------
*Cost of investments $ 3,893,381
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-11
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1997
(UNAUDITED)
------------
<S> <C>
INVESTMENT INCOME
Interest income $ 126,691
------------
Expenses:
Investment management fee (Note B) 6,697
Custodian fees (Note B) 9,185
Accounting fees 5,000
Amortization of deferred organization and
initial offering expenses (Note A) 2,132
Trustees' fees and expenses 95
Auditing fees 71
Legal fees 57
Insurance expense 32
Miscellaneous 36
------------
Total expenses 23,305
------------
Net investment income 103,386
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investment securities
sold (15,492)
Change in net unrealized appreciation
(depreciation) of investment securities 17,719
------------
Net gain on investments 2,227
------------
Net increase in net assets resulting from
operations $ 105,613
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-12
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
Six Months
Ended Year
June 30, Ended
1997 December 31,
(UNAUDITED) 1996
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 103,386 $ 152,237
Net realized loss on investments (15,492) (15,099)
Change in net unrealized
appreciation (depreciation) of
investments 17,719 (63,858)
-----------------------------
Net increase in net assets resulting
from operations 105,613 73,280
-----------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 754,615 1,830,526
Reductions (317,292) (636,770)
-----------------------------
Net increase in net assets resulting
from transactions in investors'
beneficial interests 437,323 1,193,756
-----------------------------
NET INCREASE IN NET ASSETS 542,936 1,267,036
NET ASSETS:
Beginning of period 3,460,910 2,193,874
-----------------------------
End of period $ 4,003,846 $ 3,460,910
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-13
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Government Income Investments (the "Series") is a separate
operating series of Advisers Managers Trust ("Managers Trust"), a New York
common law trust organized as of May 24, 1994. Managers Trust is currently
comprised of six separate operating series. Managers Trust is registered as a
diversified, open-end management investment company under the Investment
Company Act of 1940, as amended.
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
2) PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the Series' Schedule of Investments.
3) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Interest income, including original issue
discount, where applicable, and accretion of discount on short-term
investments, is recorded on the accrual basis. Realized gains and losses from
securities transactions are recorded on the basis of identified cost.
4) FEDERAL INCOME TAXES: Managers Trust intends to comply with the requirements
of the Internal Revenue Code of 1986, as amended. Each series of Managers
Trust also intends to conduct its operations so 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 June 30, 1997, the unamortized balance of such
expenses amounted to $12,192.
6) EXPENSE ALLOCATION: Expenses directly attributable to a series are charged to
that series. Expenses not directly attributed to a series are allocated, on
the basis of relative net assets, to each of the series of Managers Trust.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains Neuberger&Berman Management Incorporated ("Management") as
its investment manager under a Management Agreement. For such investment
management services, the Series pays Management a fee at the annual rate of .35%
of the first $500 million of the Series' average daily net assets, .325% of the
next $500 million, .30% of the next $500 million, .275% of the next $500
million, and .25% of average daily net assets in excess of $2 billion.
All of the capital stock of Management is owned by individuals who are also
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 added 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 under the caption Custodian fees, was a reduction of $598, which is
less than .02% of the Series' average daily net assets.
B-14
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
NOTE C -- SECURITIES TRANSACTIONS:
During the six months ended June 30, 1997, there were purchase and sale
transactions (excluding short-term securities) of $3,259,529 and $2,930,188,
respectively.
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Series without audit by independent auditors. Annual reports
contain audited financial statements.
B-15
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
Period from
Six Months May 1, 1995
Ended (Commencement
June 30, Year Ended of Operations) to
1997 December 31, December 31,
(UNAUDITED) 1996 1995
-------------------------------------------------
<S> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.22%(1) 1.34% 1.77%(1)
-------------------------------------------------
Net Investment Income 5.40%(1) 5.26% 4.78%(1)
-------------------------------------------------
Portfolio Turnover Rate 87% 231% 64%
-------------------------------------------------
Net Assets, End of Period (in
millions) $4.0 $3.5 $2.2
-------------------------------------------------
</TABLE>
1) Annualized.
B-16
