<PAGE>
MID-CAP GROWTH PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1997
NBAMG3790198
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Portfolio
PORTFOLIO CO-MANAGERS JENNIFER SILVER AND BROOKE COBB LOVE
SURPRISES -- POSITIVE EARNINGS SURPRISES THAT IS. THEIR RESEARCH REVEALS THAT
THE STOCKS OF COMPANIES CONSISTENTLY EXCEEDING CONSENSUS EARNINGS ESTIMATES HAVE
TENDED TO BE TERRIFIC PERFORMERS. THEY COMPUTER SCREEN THE MID-CAP GROWTH STOCK
UNIVERSE TO ISOLATE STOCKS WHOSE MOST RECENT EARNINGS HAVE BEATEN THE STREET'S
EXPECTATIONS. THEY THEN ROLL UP THEIR SLEEVES AND THROUGH DILIGENT FUNDAMENTAL
RESEARCH, STRIVE TO IDENTIFY THOSE COMPANIES MOST LIKELY TO RECORD A
STRING OF POSITIVE EARNINGS SURPRISES. THEIR GOAL IS TO INVEST TODAY IN THE FAST
GROWING MID-SIZED COMPANIES THAT WILL COMPRISE TOMORROW'S FORTUNE 500.
Since the Advisers Management Trust Mid-Cap Growth Portfolio is in its
infancy, a review of 1997 is largely immaterial. We thought it more appropriate
in this, our first opportunity to directly address the shareholders, to describe
our investment discipline in some detail. Let us begin by saying we are growth
stock investors in the purest sense of the term. We want to own the stocks of
companies that are growing earnings faster than the average American business
and ideally, faster than the competitors in their respective industries. We are
particularly biased towards companies that consistently beat consensus earnings
estimates. Our research has revealed that stocks whose earnings consistently
exceed expectations offered greater potential for long-term capital
appreciation.
We focus our research efforts on mid-cap stocks in new and/or rapidly
evolving industries. The mid-cap growth sector is less widely followed by Wall
Street analysts and therefore, less efficient than the large-cap stock market.
By operating in the mid-cap arena we believe we are likely to identify more of
our brand of growth stock opportunities. Considering the currently high
valuations of large-cap growth stocks relative to mid-cap stocks with comparable
or in many cases, better earnings growth potential, we believe the portfolio is
particularly well positioned in today's market. This portfolio will use the
Standard & Poors' MidCap 400/BARRA Growth Index* as its benchmark.
Let us once again emphasize we are growth stock investors. But there is a
value component to our discipline as well. Although the Portfolio may purchase
securities at higher multiples to measures of economic value than other
portfolios of the Advisers Management Trust, the kind of fast-growth companies
we favor generally trade at what we believe are very reasonable multiples
relative to projected annual earnings growth rates. Given the choice between two
good companies with comparable earnings growth rates, we will select the one
trading at the lower multiple to earnings growth.
We are dispassionate sellers. If a stock does not live up to our earnings
expectations or its valuation becomes excessive, we will sell and direct the
assets to another more attractive opportunity. We will maintain a broadly
diversified portfolio rather than heavily concentrating our holdings in just a
few of the fastest growing industry groups.
Perhaps the best way to demonstrate our investment discipline in action is to
discuss several of the portfolio holdings at year end 1997. Be aware we may
change our opinion on these and other portfolio holdings and may sell them at
any time.
Dura Pharmaceuticals is a mid-sized drug company with a diversified line of
profitable drug products. The company also has approximately $400 million in
cash (roughly $10 per share), which it can use to fund acquisitions of other
pharmaceutical products. Finally, Dura has developed a new drug delivery system,
Spiros-TM-, for the treatment of asthma, which could be a real blockbuster
product and eventually represent 50% of the company's sales. The stock currently
trades at 32 times our 1998 earnings estimate -- a nice discount to our 40%
annual earnings growth rate projections. If the company can add to its product
line through acquisition and Spiros lives up to its potential, earnings
A-2
<PAGE>
could grow materially faster than consensus estimates. In comparison, Pfizer,
admittedly a great company, trades at 37 times consensus earnings estimates and
over two times its projected 16% annual earnings growth rate. On a relative
fundamental basis, we believe Dura Pharmaceuticals is a real growth-oriented
bargain.
CIENA Corporation makes systems that allow an optical fiber to carry 16 times
the current capacity of data, graphic and voice information without requiring
significant equipment upgrades. These are products that should be in great
demand as telephone companies compete with cable television operators to
increase digital transmission capacity. The company is the technology and market
share leader in this business, which is expected to grow from $0 in 1996 to over
$4 billion by 2001. CIENA reported third quarter 1997 earnings that tripled
consensus estimates. Although earnings estimates were revised upward following
this very pleasant third quarter surprise, we still think they are low,
particularly if CIENA can close on contracts it has been working on with AT&T
and several of the Regional Bell Operating Companies -- in the opinion of our
research department and others on Wall Street, a reasonable proposition. At 38
times 1998 earnings estimates, the stock doesn't look cheap. But, that's less
than one time our 60% annual five-year earnings growth rate projections -- in
our eyes, a very compelling fundamental value.
In closing, we are excited about the prospects for this new Portfolio.
Mid-cap growth stocks have historically provided superior long-term performance
and we believe they are particularly attractive at current valuation levels.
Sincerely,
[SIG] [SIG]
Jennifer K. Silver and Brooke A. Cobb
PORTFOLIO CO-MANAGERS
*The S&P MidCap 400/BARRA Growth Index is a benchmark for mid-cap growth stock
performance. It is constructed of companies in the S&P MidCap 400 Index, which
is a market-value weighted index for mid-cap stock price movement, with higher
price-to-book ratios than the companies in its value index counterpart. 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. and include
reinvestment of all dividend and capital gain distributions. The Portfolio
invests in many securities not included in the above described index.
The composition, industries and holdings of the Portfolio are subject to
change. The Portfolio is invested in a wide array of securities and no single
holding makes up more than a small fraction of its total assets.
A-3
<PAGE>
COMPARISON OF A $10,000 INVESTMENT
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C> <C>
Aggregate Total Return*
S&P MidCap 400/
Mid-Cap Growth Portfolio BARRA Growth Index(2)
Life of Fund +17.20% +1.97%
S&P MidCap 400/
Mid-Cap Growth Portfolio BARRA Growth Index
11/3/97 $10,000 $10,000
12/31/97 $11,720 $10,197
</TABLE>
The inception date of Neuberger&Berman Advisers Management Trust Mid-Cap
Growth Portfolio-SM- (the "Fund") is 11/3/97.
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 MidCap 400/BARRA Growth Index is a benchmark for mid-cap growth stock
performance. It is constructed of companies in the S&P MidCap 400 Index, which
is a market-value weighted index for mid-cap stock price movement, with higher
price-to-book ratios than the companies in its value index counterpart. 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
or other expenses imposed by your insurance company's variable annuity or
variable life insurance policy. If this performance information included the
effect of the insurance charges and other expenses, performance numbers would be
lower.
B-1
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
<TABLE>
<CAPTION>
December 31,
1997
------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $1,573,682
Receivable for Trust shares sold 126,872
Deferred organization costs (Note A) 12,042
Receivable from administrator -- net (Note B) 7,850
------------
1,720,446
------------
LIABILITIES
Accrued organization costs (Note A) 12,444
Accrued expenses 8,855
------------
21,299
------------
NET ASSETS at value $1,699,147
------------
NET ASSETS consist of:
Par value $ 145
Paid-in capital in excess of par value 1,607,523
Accumulated undistributed net investment income 669
Accumulated net realized gains on investment 18,405
Net unrealized appreciation in value of investment 72,405
------------
NET ASSETS at value $1,699,147
------------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 144,925
------------
NET ASSET VALUE, offering and redemption price per share $11.72
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
<TABLE>
<CAPTION>
For the
Period from
November 3, 1997
(Commencement
of Operations) to
December 31,
1997
-------------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 1,472
-------
Expenses:
Administration fee (Note B) 241
Shareholder reports 6,683
Custodian fees 1,666
Legal fees 501
Amortization of deferred organization and initial offering
expenses (Note A) 402
Trustees' fees and expenses 3
Auditing fees 2
Expenses from Series (Notes A & B) 4,776
-------
Total expenses 14,274
Expenses reimbursed by administrator and reduced by custodian
fee expense offset arrangement (Note B) (13,471)
-------
Total net expenses 803
-------
Net investment income 669
-------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM SERIES (NOTE A)
Net realized gain on investment securities 18,405
Net unrealized appreciation of investment securities 72,405
-------
Net gain on investments from Series (Note A) 90,810
-------
Net increase in net assets resulting from operations $91,479
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
<TABLE>
<CAPTION>
Period from
November 3, 1997
(Commencement
of Operations) to
December 31,
1997
-----------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 669
Net realized gain on investments from Series (Note A) 18,405
Net unrealized appreciation of investments from Series (Note A) 72,405
-----------------
Net increase in net assets resulting from operations 91,479
-----------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 1,607,670
Payments for shares redeemed (2)
-----------------
Net increase from Trust share transactions 1,607,668
-----------------
NET INCREASE IN NET ASSETS 1,699,147
NET ASSETS:
Beginning of period --
-----------------
End of period $1,699,147
-----------------
Accumulated undistributed net investment income at end of period $ 669
-----------------
NUMBER OF TRUST SHARES:
Sold 144,925
Redeemed --
-----------------
Net increase in shares outstanding 144,925
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Mid-Cap Growth 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 Fund had no operations until November 3, 1997, other than matters
relating to its organization and registration as a series of the Trust. The
Trust is currently comprised of eight 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 Mid-Cap Growth 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, 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 intention of
the Fund 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. Income 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.
B-5
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Mid-Cap Growth 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 December 31, 1997, the unamortized balance of such
expenses amounted to $12,042. The accrued organization costs are payable to
Neuberger&Berman Management Incorporated ("N&B Management"), the
administrator of the Fund.
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 N&B Management as its administrator under an Administration
Agreement ("Agreement") dated as of May 1, 1995. Pursuant to this Agreement the
Fund pays N&B Management an administration fee at the annual rate of .30% 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.
N&B 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 N&B 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 N&B
Management upon at least 60 days' prior written notice to the Fund. For the
period ended December 31, 1997, such excess expenses amounted to $13,432.
All of the capital stock of N&B 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 N&B 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 $39.
NOTE C -- INVESTMENT TRANSACTIONS:
During the period ended December 31, 1997, additions and reductions in the
Fund's investment in its Series amounted to $1,486,139 and $2, respectively.
B-6
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
The following table includes selected data for a share outstanding throughout
the period and other performance information derived from the Financial
Statements. 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. It should be read in conjunction with its Series' Financial Statements
and notes thereto.(1)
<TABLE>
<CAPTION>
Period from
November 3, 1997(2)
to December 31,
1997
-------------------
<S> <C>
Net Asset Value, Beginning of Period $10.00
------
Income From Investment Operations
Net Investment Income .01
Net Gains or Losses on Securities (both realized and unrealized) 1.71
------
Total From Investment Operations 1.72
------
Net Asset Value, End of Period $11.72
------
Total Return(3)(4) +17.20%
------
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 1.7
------
Ratio of Gross Expenses to Average Net Assets(5)(6)(7) 1.05%
------
Ratio of Net Expenses to Average Net Assets(6)(7) 1.00%
------
Ratio of Net Investment Income to Average Net Assets(6)(7) .83%
------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-7
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
1) The per share amounts which are shown have been computed based on the average
number of shares outstanding during the fiscal period.
2) The date investment operations commenced.
3) 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 the 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 would
have been lower if N&B Management had not reimbursed certain expenses. The
total return information shown does not reflect charges and other expenses
that apply to the separate account or the related insurance policies, and the
inclusion of these charges and other expenses would reduce the total return
figures for the fiscal period shown.
4) Not annualized.
5) The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset arrangements.
6) Annualized.
7) After reimbursement of expenses by N&B Management as described in Note B of
Notes to Financial Statements. Had N&B Management not undertaken such action,
the annualized ratios of net expenses and net investment income to average
daily net assets would have been higher and lower, respectively.
B-8
<PAGE>
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Trustees of
Neuberger&Berman Advisers Management Trust and
Shareholders of Mid-Cap Growth Portfolio
We have audited the accompanying statement of assets and liabilities of
Mid-Cap Growth Portfolio, one of the series comprising Neuberger&Berman Advisers
Management Trust (the "Trust"), as of December 31, 1997, and the related
statement of operations, the statement of changes in net assets, and the
financial highlights for the period from November 3, 1997 (Commencement of
Operations) to December 31, 1997. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements 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
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Mid-Cap Growth Portfolio of Neuberger&Berman Advisers Management Trust at
December 31, 1997, the results of its operations, the changes in its net assets,
and the financial highlights for the period from November 3, 1997 (Commencement
of Operations) to December 31, 1997, in conformity with generally accepted
accounting principles.
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 26, 1998
B-9
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- ----------
<C> <S> <C>
COMMON STOCKS (99.4%)
BASIC MATERIALS (3.3%)
1,100 Cytec Industries $ 51,631(2)
----------
CAPITAL GOODS (10.4%)
2,900 Mettler-Toledo International 50,025(2)
4,200 Philip Services 60,375(2)
1,350 USA Waste Services 52,987(2)
----------
163,387
----------
COMMUNICATIONS (5.6%)
1,000 CIENA Corp. 61,125(2)
1,200 RSL Communications 26,400(2)
----------
87,525
----------
CONSUMER CYCLICALS (20.5%)
2,500 Dollar Thrifty 51,250(2)
900 Hayes Lemmerz International 25,200(2)
950 HON INDUSTRIES 56,050
1,450 Promus Hotel 60,900(2)
1,600 Robert Half International 64,000(2)
1,900 TJX Cos. 65,313
----------
322,713
----------
CONSUMER STAPLES (6.2%)
850 CKE Restaurants 35,806
1,800 General Nutrition 61,200(2)
----------
97,006
----------
ENERGY (11.3%)
800 BJ Services 57,550(2)
2,100 Noble Drilling 64,313(2)
2,200 Oryx Energy 56,100(2)
----------
177,963
----------
FINANCIAL SERVICES (1.9%)
500 Finova Group 24,844
150 FIRSTPLUS Financial Group 5,756(2)
----------
30,600
----------
<CAPTION>
Number Market
of Shares Value(1)
- --------- ----------
<C> <S> <C>
HEALTH CARE (14.2%)
1,600 Alternative Living Services $ 47,300(2)
1,350 Dura Pharmaceuticals 61,931(2)
1,050 Elan Corp. ADR 53,747(2)
1,600 Quintiles Transnational 61,200(2)
----------
224,178
----------
TECHNOLOGY (21.8%)
3,000 Applied Micro Circuits 37,125(2)
900 BMC Software 59,063(2)
1,100 CHS Electronics 18,837(2)
850 Citrix Systems 64,600(2)
900 Network Appliance 31,950(2)
1,150 Network Associates 60,806(2)
1,600 Sterling Commerce 61,500(2)
300 Teradyne, Inc. 9,600(2)
----------
343,481
----------
UTILITIES (4.2%)
1,400 AES Corp. 65,275(2)
----------
TOTAL COMMON STOCKS
(COST $1,491,354) 1,563,759
----------
<CAPTION>
Principal
Amount
- ---------
<C> <S> <C>
U.S. TREASURY SECURITIES
(31.8%)
$ 503,000 U.S. Treasury Bills, 4.50% -
5.24%, due 1/8/98 - 2/26/98
(COST $500,602) 500,602(3)
----------
TOTAL INVESTMENTS (131.2%)
(COST $1,991,956) 2,064,361(4)
Liabilities, less cash,
receivables and other assets
[(31.2%)] (490,678)
----------
TOTAL NET ASSETS (100.0%) $1,573,683
----------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-10
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
1) Investment securities of the Series are valued at the latest 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. Foreign security
prices are furnished by independent quotation services expressed in local
currency values. Foreign security prices are translated from the local
currency into U.S. dollars using current exchange rates. 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) At cost, which approximates market value.
4) At December 31, 1997, the cost of investments for Federal income tax purposes
was $1,991,956. Gross unrealized appreciation of investments was $86,700 and
gross unrealized depreciation of investments was $14,295, resulting in net
unrealized appreciation of $72,405, based on cost for Federal income tax
purposes.
SEE NOTES TO FINANCIAL STATEMENTS
B-11
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
<TABLE>
<CAPTION>
December 31,
1997
------------
<S> <C>
ASSETS
Investments in securities, at market value* (Note A) -- see
Schedule of Investments $ 2,064,361
Cash 4,448
Deferred organization costs (Note A) 26,176
------------
2,094,985
------------
LIABILITIES
Payable for securities purchased 490,389
Accrued organization costs (Note A) 27,050
Accrued expenses 3,423
Payable to investment manager (Note B) 440
------------
521,302
------------
NET ASSETS Applicable to Investors' Beneficial Interests $ 1,573,683
------------
NET ASSETS consist of:
Paid-in capital $ 1,501,278
Net unrealized appreciation in value of investment securities 72,405
------------
NET ASSETS $ 1,573,683
------------
*Cost of investments $ 1,991,956
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-12
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
<TABLE>
<CAPTION>
For the
Period from
November 3, 1997
(Commencement
of Operations) to
December 31,
1997
-------------------
<S> <C>
INVESTMENT INCOME
Interest income $ 1,472
-------
Expenses:
Investment management fee (Note B) 440
Accounting fees 1,611
Custodian fees (Note B) 1,339
Amortization of deferred organization and initial offering
expenses (Note A) 874
Legal fees 501
Auditing fees 8
Trustees' fees and expenses 3
-------
Total expenses 4,776
Expenses reduced by custodian fee expense offset arrangement
(Note B) (39)
-------
Total net expenses 4,737
-------
Net investment loss (3,265)
-------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment securities sold 18,405
Net unrealized appreciation of investment securities 72,405
-------
Net gain on investments 90,810
-------
Net increase in net assets resulting from operations $87,545
-------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
<TABLE>
<CAPTION>
Period from
November 3, 1997
(Commencement
of Operations) to
December 31,
1997
-----------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss $ (3,265)
Net realized gain on investments 18,405
Net unrealized appreciation of investments 72,405
-----------------
Net increase in net assets resulting from operations 87,545
-----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Additions 1,486,140
Reductions (2)
-----------------
Net increase in net assets resulting from transactions in
investors' beneficial interests 1,486,138
-----------------
NET INCREASE IN NET ASSETS 1,573,683
NET ASSETS:
Beginning of period --
-----------------
End of period $1,573,683
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Mid-Cap Growth 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. The Series had no operations
until November 3, 1997, other than matters relating to its organization and
registration as a series of Managers Trust. Managers Trust is currently
comprised of eight 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. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the Series
becomes aware of the dividends. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. 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. Each series of Managers Trust also intends to
conduct its operations so that each of its investors will be able to qualify
as a regulated investment company. Each series will be treated as a
partnership for Federal income tax purposes and is therefore not subject to
Federal income tax.
5) ORGANIZATION EXPENSES: Expenses incurred by the Series in connection with its
organization are being amortized by the Series on a straight-line basis over
a five-year period. At December 31, 1997, the unamortized balance of such
expenses amounted to $26,176. The accrued organization costs are payable to
Neuberger& Berman Management Incorporated ("N&B Management"), the investment
manager of the Series.
6) EXPENSE ALLOCATION: Expenses directly attributable to a series are charged to
that series. Expenses not directly attributed to a series are allocated, on
the basis of relative net assets, to each of the series of Managers Trust.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains N&B Management as its investment manager under a
Management Agreement. For such investment management services, the Series pays
N&B 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 N&B 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.
B-15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
Neuberger is retained by N&B 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 N&B 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 $39.
NOTE C -- SECURITIES TRANSACTIONS:
During the period ended December 31, 1997, there were purchase and sale
transactions (excluding short-term securities) of $1,585,018 and $112,125,
respectively.
During the period ended December 31, 1997, brokerage commissions on
securities transactions amounted to $1,469, of which Neuberger received $1,364,
and other brokers received $105.
B-16
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
<TABLE>
<CAPTION>
Period from
November 3, 1997(1)
to December 31,
1997
-------------------
<S> <C>
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(2)(3) 5.97%
-------------------
Net Expenses(3) 5.92%
-------------------
Net Investment Loss(3) (4.08%)
-------------------
Portfolio Turnover Rate 20%
-------------------
Average Commission Rate Paid $0.0550
-------------------
Net Assets, End of Period (in millions) $1.6
-------------------
</TABLE>
1) The date investment operations commenced.
2) The Series is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset arrangements.
3) Annualized.
B-17
<PAGE>
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Trustees of
Advisers Managers Trust and
Owners of Beneficial Interest of AMT Mid-Cap Growth Investments
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of AMT Mid-Cap Growth Investments, one of
the series comprising Advisers Managers Trust ("Managers Trust"), as of December
31, 1997, and the related statement of operations, the statement of changes in
net assets, and the financial highlights for the period from November 3, 1997
(Commencement of Operations) to December 31, 1997. These financial statements
and financial highlights are the responsibility of Managers Trust's management.
Our responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1997, 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 audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of AMT
Mid-Cap Growth Investments of Advisers Managers Trust at December 31, 1997, the
results of its operations, the changes in its net assets and the financial
highlights for the period from November 3, 1997 (Commencement of Operations) to
December 31, 1997, in conformity with generally accepted accounting principles.
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 26, 1998
B-18
