<PAGE>
BALANCED PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1996
NBAMT0211296
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Balanced Portfolio
GROWTH PORTION
During 1996 three of our best performing sectors were financial services,
technology and restaurants. One of the best performers was CKE Restaurants,
which was taken over by new management about a year and a half ago. CKE's
earnings have outperformed the estimates as a result of a good advertising
campaign, updated menu selections and remodeling many of their restaurants.
The technology sector provided some winners during the year. In particular,
Intel provided a large contribution to the Portfolio in the third quarter. Its
success can be partly attributed to continued demand by end-users in combination
with lower prices. The second largest position in this industry at year end was
KLA, a company that makes test equipment for semiconductor companies. KLA's
earnings held up well during the year. Seagate, a disc drive company, also
helped the Portfolio. Seagate was able to reduce costs, and benefit from
continued end-user 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.
In the consumer/retail sector, we added Staples to our Portfolio. Staples is
a leading factor in the office superstore segment. We believe that the pending
merger with Office Depot will create significant cost savings, which we believe
should enhance earnings growth over the next two years.
Two lagging sectors during the year were communications and healthcare. These
two sectors comprised about 8%-10% of the Portfolio during most of the year.
Cable stocks went through their lowest valuations in 1996 due to worries about
competition from the satellite industry. As a result, the Portfolio reduced its
positions in TCI and sold out of Time Warner. One exception was UK Cable, a
telephone, cable and Internet company based in the United Kingdom. They recently
consolidated with Comcast, forming Comcast UK Cable Partners Ltd., which we
believe should help the company's valuations.
The Portfolio increased its exposure to HMOs during the year. Overall, this
industry did not contribute positively to the Portfolio during the year.
Exceptions were PacifiCare, a Medicare HMO, and United Healthcare, a
conventional HMO. Both of these positions were increased during the period and
have experienced an upswing since June 30. While enrollment in HMOs continues to
rise, their challenge will be to manage rising costs in a flat premium
environment.
LIMITED MATURITY BOND PORTION
1996 ended on an upbeat note for the bond market and the debt securities
portion of the 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 very 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
2
<PAGE>
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 a low for
the year of 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 Portfolio to just over 2.5 years in
duration. 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 overall Portfolio. 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- and asset-backed securities accounted for the
majority of the remainder of the debt securities portion 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.
Mark Goldstein Thomas Wolfe Ted Giuliano
The composition and holdings of the Portfolio are subject to change. Shares of
the Balanced Portfolio are sold only through the currently effective prospectus
and are not available to the general public. Shares of the Balanced Portfolio
may only be purchased by life insurance companies to be used with their separate
accounts which fund variable annuity and variable life insurance policies and
are also available as an underlying investment fund for certain qualified
retirement plans. 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.
3
<PAGE>
COMPARISON OF A $10,000 INVESTMENT
Neuberger&Berman Advisers Management Trust December 31, 1996
- --------------------------------------------------------------------------------
Balanced Portfolio
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C> <C> <C>
Average Annual Total Return 1
Merrill Lynch 1-3
Balanced Portfolio Year Treasury Index 2 S&P 500 2
1 Year +6.89% +4.98% +22.90%
5 Year +8.02% +5.60% +15.18%
Life of Fund +10.19% +7.55% +16.17%
Balanced Portfolio Merrill Lynch S&P 500
02/28/89 $10,000.00 $10,000.00 $10,000.00
12/31/89 $11,640.00 $11,000.94 $12,651.47
1990 $11,565.90 $12,070.79 $12,257.41
1991 $14,558.05 $13,480.65 $15,975.41
1992 $15,730.82 $14,329.87 $17,919.20
1993 $18,748.22 $15,105.30 $18,916.21
1994 $16,183.79 $15,191.18 $19,173.01
1995 $20,028.86 $16,882.10 $26,352.27
1996 $21,407.96 $17,701.61 $32,388.91
</TABLE>
The inception date of Balanced Portfolio (the "Fund") is 2/28/89.
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 index consisting
of all coupon-bearing U.S. Treasury publicly placed debt securities with
maturities between 1 and 3 years. 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 these indices 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 indices.
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. Qualified Plans that are direct shareholders of the Fund are not
affected by insurance charges. If this performance information included the
effect of the insurance charges, performance numbers would be lower.
4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Balanced Portfolio
<TABLE>
<CAPTION>
December 31,
1996
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 173,496,277
Receivable for Trust shares sold 102,753
--------------
173,599,030
--------------
LIABILITIES
Payable for Trust shares redeemed 321,682
Accrued expenses 65,704
Payable to administrator (Note B) 44,244
--------------
431,630
--------------
NET ASSETS at value $ 173,167,400
--------------
NET ASSETS consist of:
Par value $ 10,875
Paid-in capital in excess of par value 148,152,444
Accumulated undistributed net investment
income 3,073,763
Accumulated net realized gains on investment 8,005,208
Net unrealized appreciation in value of
investment 13,925,110
--------------
NET ASSETS at value $ 173,167,400
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 10,875,402
--------------
NET ASSET VALUE, offering and redemption price per
share $15.92
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Balanced Portfolio
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1996
------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 4,904,606
------------
Expenses:
Administration fee (Note B) 502,874
Shareholder reports 152,768
Shareholder servicing agent fees 20,913
Registration and filing fees 20,777
Legal fees 16,003
Custodian fees 10,000
Trustees' fees and expenses 7,259
Auditing fees 1,582
Miscellaneous 4,106
Expenses from Series (Notes A & B) 1,086,440
------------
Total expenses 1,822,722
------------
Net investment income 3,081,884
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
FROM SERIES (NOTE A)
Net realized gain on investment securities 8,263,116
Net realized loss on financial futures
contracts (78,900)
Change in net unrealized appreciation of
investment securities (212,860)
Net unrealized appreciation of financial
futures contracts 11,312
------------
Net gain on investments from Series (Note
A) 7,982,668
------------
Net increase in net assets resulting from
operations $11,064,552
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Balanced Portfolio
<TABLE>
<CAPTION>
Year Ended
December 31,
1996 1995
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 3,081,884 $ 3,926,849
Net realized gain on investments
from Series (Note A) 8,184,216 21,146,057
Change in net unrealized
appreciation (depreciation) of
investments from Series (Note A) (201,548) 15,924,527
-----------------------------
Net increase in net assets resulting
from operations 11,064,552 40,997,433
-----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (3,827,457) (3,410,734)
Net realized gain on investments (21,284,395) (1,096,307)
-----------------------------
Total distributions to shareholders (25,111,852) (4,507,041)
-----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 40,422,008 23,185,195
Proceeds from reinvestment of
dividends and distributions 25,111,853 4,507,041
Payments for shares redeemed (22,740,252) (99,036,376)
-----------------------------
Net increase (decrease) from Trust
share transactions 42,793,609 (71,344,140)
-----------------------------
NET INCREASE (DECREASE) IN NET ASSETS 28,746,309 (34,853,748)
NET ASSETS:
Beginning of year 144,421,091 179,274,839
-----------------------------
End of year $ 173,167,400 $ 144,421,091
-----------------------------
Accumulated undistributed net
investment income at end of year $ 3,073,763 $ 3,819,336
-----------------------------
NUMBER OF TRUST SHARES:
Sold 2,435,851 1,410,375
Issued on reinvestment of dividends
and distributions 1,645,600 304,120
Redeemed (1,450,441) (5,822,286)
-----------------------------
Net increase (decrease) in shares
outstanding 2,631,010 (4,107,791)
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust December 31, 1996
- --------------------------------------------------------------------------------
Balanced Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Balanced 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 Balanced 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 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.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1996
- --------------------------------------------------------------------------------
Balanced Portfolio
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 and are
also offered directly to qualified pension and retirement plans.
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 to Management for
investment advisory and administrative services a fee at the annual rate of .70%
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.
NOTE C -- INVESTMENT TRANSACTIONS:
During the year ended December 31, 1996, additions and reductions in the
Fund's investment in its Series amounted to $27,061,978 and $68,687,411,
respectively.
9
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Balanced 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
February 28,
1989(3)
Year Ended December 31, to December 31,
1996(2) 1995(2) 1994 1993 1992 1991 1990 1989
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year $17.52 $14.51 $ 15.62 $ 14.90 $ 14.16 $ 11.72 $ 11.64 $10.00
----------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net Investment Income .34 .32 .30 .34 .40 .47 .49 .30
Net Gains or Losses
on Securities (both
realized and
unrealized) .75 3.06 (.80) .61 .72 2.16 (.27)(4) 1.34
----------------------------------------------------------------------------------------------------
Total From
Investment
Operations 1.09 3.38 (.50) .95 1.12 2.63 .22 1.64
----------------------------------------------------------------------------------------------------
Less Distributions
Dividends (from net
investment income) (.41) (.28) (.23) (.20) (.19) (.19) (.07) --
Distributions (from
capital gains) (2.28) (.09) (.38) (.03) (.19) -- (.07) --
----------------------------------------------------------------------------------------------------
Total Distributions (2.69) (.37) (.61) (.23) (.38) (.19) (.14) --
----------------------------------------------------------------------------------------------------
Net Asset Value, End of
Year $15.92 $17.52 $ 14.51 $ 15.62 $ 14.90 $ 14.16 $ 11.72 $11.64
----------------------------------------------------------------------------------------------------
Total Return(5) +6.89% +23.76% -3.36% +6.45% +8.06% +22.68% +1.95% +16.40%(6)
----------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of
Year (in millions) $173.2 $144.4 $ 179.3 $ 161.1 $ 87.1 $ 28.3 $ 6.9 $ 0.6
----------------------------------------------------------------------------------------------------
Ratio of Expenses to
Average Net
Assets(7) 1.09% .99% .91% .90% .95% 1.10% 1.35% 1.70%(8)
----------------------------------------------------------------------------------------------------
Ratio of Net
Investment Income to
Average Net
Assets(7) 1.84% 1.99% 1.91% 1.96% 2.33% 3.00% 4.00% 3.28%(8)
----------------------------------------------------------------------------------------------------
Portfolio Turnover
Rate(9) -- 21% 55% 114% 82% 69% 77% 58%
----------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
10
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust December 31, 1996
- --------------------------------------------------------------------------------
Balanced 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)February 28, 1989 is the date shares of the Balanced Portfolio were first sold
to the separate accounts pursuant to the public offering of Trust shares.
4)The amounts shown at this caption for a share outstanding throughout the year
may not accord with the change in aggregate gains and losses in securities for
the year 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. Qualified Plans that are direct
shareholders of the Fund are not affected by insurance charges.
6)Not annualized.
7)Since the commencement of operations, Management voluntarily assumed certain
operating expenses of the Fund as described in Note B of Notes to Financial
Statements. Had Management not undertaken such action the annualized ratios of
expenses and net investment income to average daily net assets would have been
2.78% and 2.20% for the period from February 28, 1989, to December 31, 1989.
There was no reduction of expenses for the years ended December 31, 1990,
through and including 1996.
8)Annualized.
9)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 Balanced Investments' Financial Highlights.
11
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees of
Neuberger&Berman Advisers Management Trust and
Shareholders of Balanced Portfolio
We have audited the accompanying Statement of Assets and Liabilities of
Balanced 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
Balanced 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 Balanced Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
COMMON STOCKS (59.3%)
CHEMICALS (1.4%)
8,000 Hercules Inc. $ 346,000
25,000 SGL Carbon ADR 1,046,875(2)
25,000 UCAR International 940,625(2)
------------
2,333,500
------------
COMMUNICATIONS (5.2%)
70,000 Airtouch Communications 1,767,500(2)
1,227,800 Australis Media (Ordinary
Shares) 141,508(2)
110,000 Comcast Corp. Class A Special 1,959,375
110,000 Comcast UK Cable Partners
Limited 1,498,750(2)
50,000 ECI Telecommunications 1,062,500
70,000 International CableTel 1,767,500(2)
65,000 Tele-Communications, Inc.
Class A 849,062(2)
------------
9,046,195
------------
CONSUMER GOODS & SERVICES (4.4%)
80,000 Authentic Fitness 960,000
84,000 CUC International 1,995,000(2)
25,000 Luxottica Group ADR 1,300,000
80,000 Nu-Kote Holding 820,000(2)
15,000 Philip Morris 1,689,375
53,000 Regis Corp. 861,250
------------
7,625,625
------------
DRUGS & HEALTH CARE (8.1%)
80,000 Coventry Corp. 741,250(2)
15,000 HCIA, Inc. 517,500(2)
125,000 Healthsource Inc. 1,640,625(2)
45,000 Nellcor Puritan Bennett 984,375(2)
18,000 PacifiCare Health Systems
Class B 1,534,500(2)
13,000 R.P. Scherer 653,250(2)
25,000 Sierra Health Services 615,625(2)
27,000 Teva Pharmaceutical ADR 1,356,750
55,000 United Healthcare 2,475,000
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
15,000 Warner-Lambert $ 1,125,000
40,000 Watson Pharmaceuticals 1,797,500(2)
19,500 Wellpoint Health Networks 670,313(2)
------------
14,111,688
------------
ENTERTAINMENT (5.0%)
85,000 GTECH Holdings 2,720,000(2)
135,000 Harrah's Entertainment 2,683,125(2)
125,000 Players International 671,875(2)
35,000 Promus Hotel 1,036,875(2)
90,000 Showboat, Inc. 1,552,500
------------
8,664,375
------------
FINANCIAL SERVICES (10.0%)
35,000 Bear Stearns 975,625
65,000 Capital One Financial 2,340,000
27,000 CITICORP 2,781,000
28,000 Finova Group 1,799,000
96,000 First USA 3,324,000
43,000 MBNA Corp. 1,784,500
33,000 Morgan Stanley Group 1,885,125
9,000 Wells Fargo 2,427,750
------------
17,317,000
------------
INSURANCE (4.6%)
28,000 ACE Ltd. 1,683,500
30,000 EXEL Ltd. 1,136,250
55,000 Highlands Insurance 1,113,750(2)
14,000 Loews Corp. 1,319,500
29,000 PennCorp Financial Group 1,044,000
38,000 Travelers Group 1,724,250
------------
8,021,250
------------
RESTAURANTS (4.6%)
114,790 Buffets Inc. 1,047,459(2)
70,000 Cheesecake Factory 1,268,750(2)
70,000 CKE Restaurants 2,520,000
</TABLE>
13
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
40,000 IHOP Corp. $ 945,000(2)
40,000 Lone Star Steakhouse & Saloon 1,070,000(2)
45,000 Sonic Corp. 1,147,500(2)
------------
7,998,709
------------
SPECIALTY RETAIL (6.2%)
15,000 Federated Department Stores 511,875(2)
185,000 General Nutrition 3,121,875(2)
37,000 Intimate Brands 629,000
35,000 Lowe's Cos. 1,242,500
60,000 Office Depot 1,065,000(2)
74,700 Sports & Recreation 578,925(2)
85,000 Staples Inc. 1,535,313(2)
45,000 Viking Office Products 1,200,937(2)
40,000 Wal-Mart Stores 915,000
------------
10,800,425
------------
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
TECHNOLOGY (9.1%)
50,000 Informix Corp. $ 1,018,750(2)
18,000 Intel Corp. 2,356,875
75,000 KLA Instruments 2,662,500(2)
35,000 LSI Logic 936,250(2)
55,000 Micron Technology 1,601,875
30,000 Nokia Corp. ADR 1,728,750
10,200 SAP AG (Ordinary Shares) 1,388,679
42,000 Seagate Technology 1,659,000(2)
20,000 Teradyne, Inc. 487,500(2)
25,000 Texas Instruments 1,593,750
40,000 Xeikon N.V. ADR 300,000(2)
------------
15,733,929
------------
TRANSPORTATION (0.7%)
48,000 RailTex Inc. 1,212,000(2)
------------
TOTAL COMMON STOCKS
(COST $88,722,259) 102,864,696
------------
</TABLE>
14
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Principal Rating(3) Market
Amount Moody's S&P Value(1)
- ----------- ------- ----- -------------
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES
(0.0%)
$ 130,000 U.S. Treasury Notes, 6.375%,
due 6/30/97 (COST $136,094) TSY TSY $ 130,677
-------------
U.S. GOVERNMENT AGENCY
SECURITIES (3.3%)
4,710,000 Federal Home Loan Bank,
Discount Notes, 5.25%, due
1/2/97 AGY AGY 4,708,587
990,000 Federal Farm Credit Bank,
Discount Notes, 5.58%, due
1/7/97 AGY AGY 988,941
-------------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES (COST $5,698,392) 5,697,528
-------------
MORTGAGE-BACKED SECURITIES
(3.4%)
FEDERAL NATIONAL MORTGAGE ASSOCIATION
102,020 Balloon Pass-Through
Certificates, 9.00%, due
10/1/97 & 12/1/97 AGY AGY 104,730
19,549 Balloon Pass-Through
Certificates, 8.50%, due
11/1/98 AGY AGY 20,038
1,959,368 Pass-Through Certificates,
7.00%, due 6/1/11 AGY AGY 1,971,575
1,243,804 Pass-Through Certificates,
7.50%, due 9/1/11 AGY AGY 1,260,857
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
128,117 Pass-Through Certificates,
10.00%, due 12/15/17-5/15/19 AGY AGY 140,408
669,926 Pass-Through Certificates,
9.50%, due 4/15/16-10/15/20 AGY AGY 723,728
1,715,000 Pass-Through Certificates,
7.00%, TBA, 30 Year Maturity AGY AGY 1,676,948
-------------
TOTAL MORTGAGE-BACKED
SECURITIES (COST $5,858,326) 5,898,284
-------------
ASSET-BACKED SECURITIES (9.7%)
1,500,000 Capita Equipment Receivables
Trust, Ser. 1996-1, Class A-3,
6.11%, due 7/15/99 Aaa AAA 1,500,330
270,407 USAA Auto Loan Grantor Trust,
Automobile Loan Pass-Through
Certificates, Ser. 1994-1,
5.00%, due 11/15/99 Aaa AAA 269,541
1,168,054 Premier Auto Trust, Ser.
1994-2, Class A-3, 6.35%, due
5/2/00 Aaa AAA 1,173,497
270,629 Caterpillar Financial Asset
Trust, Ser. 1994-A, Class A-2,
6.10%, due 6/25/00 Aaa AAA 270,740
970,000 Chase Manhattan Auto Owner
Trust, Ser. 1996-C, Class A-3,
5.95%, due 11/15/00 Aaa AAA 966,556
294,498 Daimler-Benz Vehicle Trust,
Ser. 1994-A, Class A, 5.95%,
due 12/15/00 Aaa AAA 295,063
941,043 Case Equipment Loan Trust,
Ser. 1995-A, 7.30%, due
3/15/02 Aaa AAA 951,677
960,000 Navistar Financial Owner
Trust, Ser. 1996-A, Class A-2,
6.35%, due 11/15/02 Aaa AAA 962,554
1,332,597 Banc One Auto Grantor Trust,
Ser. 1996-B, Class A, 6.55%,
due 2/15/03 Aaa AAA 1,341,765
1,350,000 Ford Credit Auto Loan Master
Trust, Auto Loan Certificates,
Ser. 1996-1, 5.50%, due
2/15/03 Aaa AAA 1,304,154
4,000,000 NationsBank Credit Card Master
Trust, Ser. 1995-1, Class A,
6.45%, due 4/15/03 Aaa AAA 4,034,280
650,000 Navistar Financial Owner
Trust, Ser. 1996-B, Class A-3,
6.33%, due 4/21/03 Aaa AAA 651,664
</TABLE>
15
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Principal Rating(3) Market
Amount Moody's S&P Value(1)
- ----------- ------- ----- -------------
<C> <S> <C> <C> <C>
$ 1,360,000 Chevy Chase Auto Receivables
Trust, Ser. 1996-2, 5.90%, due
7/15/03 Aaa AAA $ 1,353,622
1,610,000 Standard Credit Card Master
Trust I, Credit Card
Participation Certificates,
Ser. 1994-4, Class A, 8.25%,
due 11/7/03 Aaa AAA 1,728,174
-------------
TOTAL ASSET-BACKED SECURITIES
(COST $16,827,177) 16,803,617
-------------
BANKS & FINANCIAL INSTITUTIONS
(6.1%)
1,000,000 Deutsche Bank, Yankee C.D.,
7.498%, due 1/21/97 Aaa AAA 1,000,740
1,000,000 BankAmerica Corp., Corporate
Notes, 7.50%, due 3/15/97 A1 A+ 1,003,530
1,700,000 Chase Manhattan Corp., Senior
Notes, 6.625%, due 1/15/98 A1 A 1,711,866
1,325,000 Alco Capital Resource, Inc.,
Medium-Term Notes, Ser. B,
5.46%, due 2/22/99 A3 A- 1,301,243
1,300,000 CIT Group Holdings, Inc.,
Medium-Term Notes, 6.25%, due
10/25/99 Aa3 A+ 1,297,543
2,000,000 First USA Bank, Medium-Term
Deposit Notes, 6.375%, due
10/23/00 Baa2 BBB- 1,974,980
1,420,000 Capital One Bank, Bank Notes,
5.95%, due 2/15/01 Baa3 BBB- 1,365,827
925,000 Goldman Sachs Group, L.P.,
Global Notes, 6.75%, due
2/15/06 A1 A+ 902,254(4)
-------------
TOTAL BANKS & FINANCIAL
INSTITUTIONS (COST
$10,792,246) 10,557,983
-------------
CORPORATE DEBT SECURITIES
(18.2%)
680,000 Colonial Gas Co., Medium-Term
Notes, Ser. A, 6.20%, due
3/18/98 Baa1 A- 680,694
1,500,000 Occidental Petroleum Corp.,
Medium-Term Notes, 5.85%, due
11/9/98 Baa2 BBB 1,488,285
1,500,000 Lockheed Martin Corp., Notes,
6.55%, due 5/15/99 A3 BBB+ 1,507,290
660,000 Arkla, Inc., Notes, 8.875%,
due 7/15/99 Baa3 BBB 696,254
170,000 Caterpillar Finance,
Medium-Term Notes, Ser. E,
6.11%, due 7/15/99 A2 A 169,096
235,000 Hoechst Celanese Corp., Notes,
9.625%, due 9/1/99 A2 A+ 240,353
1,075,000 Travelers/Aetna Property
Casualty Corp., Notes, 6.25%,
due 10/1/99 A2 A 1,070,872
3,000,000 Xerox Credit Corp.,
Medium-Term Notes, Ser. D,
6.84%, due 6/1/00 A2 A 2,986,290
1,360,000 Comdisco, Inc., Notes, 6.50%,
due 6/15/00 Baa1 BBB+ 1,353,717
110,000 ADT Operations, Inc., Senior
Notes, 8.25%, due 8/1/00 Ba1 BBB- 114,812
1,000,000 Ford Motor Credit Co.,
Medium-Term Notes, 6.84%, due
8/16/00 A1 A+ 1,007,500
520,000 Chesapeake Corp., Notes,
10.375%, due 10/1/00 Baa3 BBB 581,230
1,500,000 Sears Roebuck Acceptance
Corp., Medium-Term Notes, Ser.
I, 6.42%, due 10/10/00 A2 A- 1,494,375
415,000 BHP Finance (USA) Limited,
Guaranteed Notes, 5.625%, due
11/1/00 A2 A 402,438
130,000 Congoleum Corp., Senior Notes,
9.00%, due 2/1/01 B1 BB- 130,487
2,000,000 General Motors Acceptance
Corp., Medium-Term Notes,
8.125%, due 3/1/01 A3 A- 2,101,720
520,000 Colonial Realty Limited
Partnership, Senior Notes,
7.50%, due 7/15/01 Baa3 BBB- 526,412
1,000,000 Tyco International Ltd.,
Notes, 6.50%, due 11/1/01 Baa2 BBB+ 991,270
105,000 Owens-Illinois, Inc., Senior
Subordinated Notes, 10.50%,
due 6/15/02 B2 B+ 110,775
800,000 Federated Department Stores,
Inc., Senior Notes, 8.125%,
due 10/15/02 Ba1 BB- 822,072
</TABLE>
16
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Principal Rating(3) Market
Amount Moody's S&P Value(1)
- ----------- ------- ----- -------------
<C> <S> <C> <C> <C>
$ 1,280,000 Viacom, Senior Notes, 6.75%,
due 1/15/03 Ba2(5) BB+(5) $ 1,198,528
105,000 Container Corp. of America,
Senior Notes, 9.75%, due
4/1/03 B1 B+ 110,775
620,000 ADT Operations, Inc., Senior
Subordinated Notes, 9.25%, due
8/1/03 Ba3 BB+ 661,850
1,180,000 Keystone Group, Inc., Senior
Secured Notes, 9.75%, due
9/1/03 A1 A+ 1,271,450
285,000 Sweetheart Cup, Inc., Senior
Subordinated Notes, 10.50%,
due 9/1/03 B3 B- 298,894
400,000 Core-Mark International Inc.,
Senior Subordinated Notes,
11.375%, due 9/15/03 B3 B 409,000(4)
1,070,000 Owens-Illinois, Inc., Senior
Debentures, 11.00%, due
12/1/03 Ba3(6) BB(6) 1,193,050
1,040,000 Stewart Enterprises, Inc.,
Notes, 6.70%, due 12/1/03 Baa3 BBB 1,019,886
1,015,000 Duty Free International, Inc.,
Notes, 7.00%, due 1/15/04 Ba1 BBB- 961,712
150,000 Container Corp. of America,
Senior Notes, Ser. A, 11.25%,
due 5/1/04 B1 B+ 162,375
630,000 Tenet Healthcare Corp., Senior
Subordinated Notes, 10.125%,
due 3/1/05 Ba3 B+ 695,363
105,000 Collins & Aikman Products Co.,
Senior Subordinated Notes,
11.50%, due 4/15/06 B3 B 114,450
195,000 JCAC, Inc., Senior
Subordinated Notes, 10.125%,
due 6/15/06 B2 B 202,313
205,000 Printpack, Inc., Senior
Subordinated Notes, 10.625%,
due 8/15/06 B3 B+ 213,713(4)
1,000,000 Time Warner Inc., Notes,
8.11%, due 8/15/06 Ba1 BBB- 1,026,210
105,000 Commonwealth Aluminum Corp.,
Senior Subordinated Notes,
10.75%, due 10/1/06 B2 B- 107,887
120,000 Iron Mountain Inc., Senior
Subordinated Notes, 10.125%,
due 10/1/06 B3 B- 126,750
325,000 International Home Foods,
Senior Subordinated Notes,
10.375%, due 11/1/06 B2 B- 337,187(4)
100,000 International Knife & Saw,
Inc., Senior Subordinated
Notes, 11.375%, due 11/15/06 B3 B- 103,737(4)
235,000 Motors and Gears, Inc., Senior
Notes, Ser. A, 10.75%, due
11/15/06 B3 BB- 242,344(4)
185,000 Allied Waste North America,
Inc., Senior Subordinated
Notes, 10.25%, due 12/1/06 B3 B+ 194,712(4)
155,000 Fresenius Medical Care Capital
Trust, Preferred Securities,
9.00%, due 12/1/06 Ba3 B+ 157,906
45,000 Newport News Shipbuilding
Inc., Senior Subordinated
Notes, 9.25%, due 12/1/06 B1 B+ 46,350(4)
100,000 Safelite Glass Corp., Senior
Subordinated Notes, 9.875%,
due 12/15/06 B3 B 102,500(4)
220,000 AMTROL Acquisition, Inc.,
Senior Subordinated Notes,
10.625%, due 12/31/06 B3 B- 223,300(4)
1,505,000 Tenneco Inc., Debentures,
10.20%, due 3/15/08 Baa3 BBB- 1,829,493
105,000 Stone Container Corp., Rating
Adjustable Senior Notes,
11.875%, due 8/1/16 B1 BB- 111,038
-------------
TOTAL CORPORATE DEBT
SECURITIES (COST $31,603,208) 31,598,715
-------------
TOTAL INVESTMENTS (100.0%)
(COST $159,637,702) 173,551,500(7)
Liabilities, less cash,
receivables and other assets
[(0.0%)] (55,222)
-------------
TOTAL NET ASSETS (100.0%) $ 173,496,278
-------------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
17
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Balanced Investments
1)Investments in equity securities are valued at the last reported sales price;
securities for which no sales were reported, unless otherwise noted, are
valued at the mean between the closing bid and asked prices. Investments in
limited maturity debt securities 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
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)Credit ratings are unaudited.
4)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 $2,775,097 or 1.6% of net assets.
5)Rated BBB- by Fitch Investors Services, Inc.
6)Rated BBB- by Duff & Phelps Credit Rating Co.
7)At December 31, 1996, the cost of investments for Federal income tax purposes
was $159,734,604. Gross unrealized appreciation of investments was $22,272,779
and gross unrealized depreciation of investments was $8,455,883, resulting in
net unrealized appreciation of $13,816,896, based on cost for Federal income
tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
December 31,
1996
--------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 173,551,500
Cash 7,759
Receivable for securities sold 984,168
Dividends and interest receivable 930,333
Receivable for variation margin (Note A) 63,125
Deferred organization costs (Note A) 34,548
Prepaid expenses and other assets 7,473
--------------
175,578,906
--------------
LIABILITIES
Payable for securities purchased 1,970,312
Payable to investment manager (Note B) 81,132
Accrued expenses 31,184
--------------
2,082,628
--------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 173,496,278
--------------
NET ASSETS consist of:
Paid-in capital $ 159,571,168
Net unrealized appreciation in value of
investment securities and financial futures
contracts 13,925,110
--------------
NET ASSETS $ 173,496,278
--------------
*Cost of investments $ 159,637,702
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1996
------------
<S> <C>
INVESTMENT INCOME
Income:
Interest income $ 4,307,607
Dividend income 612,236
Foreign taxes withheld (Note A) (15,237)
------------
Total income 4,904,606
------------
Expenses:
Investment management fee (Note B) 922,203
Custodian fees (Note B) 111,894
Amortization of deferred organization and
initial offering expenses (Note A) 10,395
Legal fees 10,219
Accounting fees 10,000
Auditing fees 8,577
Trustees' fees and expenses 8,086
Insurance expense 4,924
Miscellaneous 142
------------
Total expenses 1,086,440
------------
Net investment income 3,818,166
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment securities
sold 8,263,116
Net realized loss on financial futures
contracts (Note A) (78,900)
Change in net unrealized appreciation of
investment securities (212,860)
Net unrealized appreciation of financial
futures contracts (Note A) 11,312
------------
Net gain on investments 7,982,668
------------
Net increase in net assets resulting from
operations $11,800,834
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced 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 $ 3,818,166 $ 3,240,511
Net realized gain on investments 8,184,216 17,910,669
Change in net unrealized
appreciation of investments (201,548) 5,494,612
-----------------------------
Net increase in net assets resulting
from operations 11,800,834 26,645,792
-----------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 27,061,978 4,703,935
Reductions (68,687,411) (14,136,898)
-----------------------------
Net decrease in net assets resulting
from transactions in investors'
beneficial interests (41,625,433) (9,432,963)
-----------------------------
NET INCREASE (DECREASE) IN NET ASSETS (29,824,599) 17,212,829
NET ASSETS:
Beginning of year 203,320,877 186,108,048
-----------------------------
End of year $173,496,278 $203,320,877
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Balanced Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Balanced 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 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 $34,548.
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) 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.
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Balanced Investments
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.
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>
March 1997 15 U.S. Treasury Notes, 2 Year Long $ 703
March 1997 74 U.S. Treasury Notes, 5 Year Short 17,328
March 1997 43 U.S. Treasury Notes, 10 Year Short (6,719)
</TABLE>
At December 31, 1996, the Series had deposited $130,000 principal of U.S.
Treasury Notes, 6.375%, due 6/30/97 in a segregated account to cover margin
requirements on open financial futures contracts.
9) 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.
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.
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust December 31, 1996
- --------------------------------------------------------------------------------
AMT Balanced Investments
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 $152,076,610 and $135,381,000, respectively.
During the year ended December 31, 1996, brokerage commissions on securities
transactions amounted to $143,948, of which Neuberger received $99,363, and
other brokers received $44,585.
24
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Period from
May 1, 1995
(Commencement
of
Year Ended Operations)
December to
31, December 31,
1996 1995
---------------------------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Expenses .65% .64%(1)
---------------------------
Net Investment Income 2.28% 2.36%(1)
---------------------------
Portfolio Turnover Rate 87% 55%
---------------------------
Average Commission Rate Paid $0.0572 $0.0451
---------------------------
Net Assets, End of Year (in
millions) $173.5 $203.3
---------------------------
</TABLE>
1) Annualized.
25
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees of
Advisers Managers Trust and
Owners of Beneficial Interest of AMT Balanced Investments
We have audited the accompanying Statement of Assets and Liabilities,
including the Schedule of Investments, of AMT Balanced 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
Balanced 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
26
