<PAGE>
GOVERNMENT INCOME PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1998
NBAMTSA50698
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
THE AMT GOVERNMENT INCOME PORTFOLIO INVESTS EXCLUSIVELY IN TREASURY
SECURITIES AND U.S. AGENCIES. THE PORTFOLIO MANAGEMENT TEAM EMPLOYS A
TREND-FOLLOWING DURATION MANAGEMENT DISCIPLINE TO ATTEMPT TO ENHANCE RETURNS.
Due to strong fundamentals (low inflation and high real rates of return),
favorable supply/demand dynamics, the prospects for a federal budget surplus in
1998, and a "flight to quality" sparked by global economic turmoil and concern
over high U.S. equities valuations, government bonds provided excellent returns
in the first half of 1998.
Virtually every sector of the government bond market performed well, but
mortgage-backed securities led the parade. Our focus on mortgage pools less
sensitive to pre-payment risk helped enhance portfolio returns. With a very flat
yield curve, the portfolio's weighted average duration finished this reporting
period around 4.3 years.
Effective July 21, 1998, shares of the AMT Limited Maturity Bond Portfolio
were substituted for investors' shares of the AMT Government Income Portfolio.
We thank shareholders for their past confidence in the Portfolio.
Sincerely,
[SIG] [SIG]
Ted Giuliano and Michael Hanratty
PORTFOLIO CO-MANAGERS
A-2
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
June 30,
1998
(UNAUDITED)
-----------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $970,298
Receivable from administrator -- net (Note B) 16,496
Deferred organization costs (Note A) 2,093
-----------
988,887
-----------
LIABILITIES
Accrued expenses 14,152
Payable for Trust shares redeemed 712
-----------
14,864
-----------
NET ASSETS at value $974,023
-----------
NET ASSETS consist of:
Par value $ 101
Paid-in capital in excess of par value 854,797
Accumulated undistributed net investment income 36,283
Accumulated net realized gains on investment 65,821
Net unrealized appreciation in value of investment 17,021
-----------
NET ASSETS at value $974,023
-----------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 101,215
-----------
NET ASSET VALUE, offering and redemption price per share $9.62
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-1
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1998
(UNAUDITED)
-----------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 45,422
-----------
Expenses:
Administration fee (Note B) 3,002
Shareholder reports 7,537
Custodian fees 5,000
Legal fees 2,244
Amortization of deferred organization and initial
offering expenses (Note A) 1,430
Trustees' fees and expenses 26
Auditing fees 4
Miscellaneous 680
Expenses from Series (Notes A & B) 18,154
-----------
Total expenses 38,077
Expenses reimbursed by administrator and reduced by
custodian fee expense offset arrangement (Note B) (29,893)
-----------
Total net expenses 8,184
-----------
Net investment income 37,238
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS FROM
SERIES (NOTE A)
Net realized gain on investment securities 67,188
Change in net unrealized appreciation of investment
securities (53,154)
-----------
Net gain on investments from Series (Note A) 14,034
-----------
Net increase in net assets resulting from operations $ 51,272
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
Six Months
Ended Year
June 30, Ended
1998 December 31,
(UNAUDITED) 1997
---------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 37,238 $ 185,617
Net realized gain on investments from Series (Note A) 67,188 32,748
Change in net unrealized appreciation (depreciation) of
investments from Series (Note A) (53,154) 83,122
---------------------------
Net increase in net assets resulting from operations 51,272 301,487
---------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (183,453) (162,111)
Net realized gain on investments (19,016) --
---------------------------
Total distributions to shareholders (202,469) (162,111)
---------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 294 794,042
Proceeds from reinvestment of dividends and
distributions 202,469 162,111
Payments for shares redeemed (1,705,422) (1,919,385)
---------------------------
Net decrease from Trust share transactions (1,502,659) (963,232)
---------------------------
NET DECREASE IN NET ASSETS (1,653,856) (823,856)
NET ASSETS:
Beginning of period 2,627,879 3,451,735
---------------------------
End of period $ 974,023 $ 2,627,879
---------------------------
Accumulated undistributed net investment income at end
of period $ 36,283 $ 182,498
---------------------------
NUMBER OF TRUST SHARES:
Sold 31 76,453
Issued on reinvestment of dividends and distributions 21,493 15,862
Redeemed (156,293) (181,052)
---------------------------
Net decrease in shares outstanding (134,769) (88,737)
---------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Government Income Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Government Income Portfolio (the "Fund") is a separate operating
series of Neuberger&Berman Advisers Management Trust-SM- (the "Trust"), a
Delaware business trust organized pursuant to a Trust Instrument dated May
23, 1994. The Trust is currently comprised of 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 Government Income Investments (the "Series"), a
series of Advisers Managers Trust having the same investment objective and
policies as the Fund. The value of the Fund's investment in the Series
reflects the Fund's proportionate interest in the net assets of the Series
(100% at June 30, 1998). 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 Funds 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. 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-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Government Income Portfolio
5) ORGANIZATION EXPENSES: Expenses incurred by the Fund in connection with its
organization are being amortized by the Fund on a straight-line basis over a
five-year period. At June 30, 1998, the unamortized balance of such expenses
amounted to $2,093.
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.
7) OTHER: All net investment income and realized and unrealized capital gains
and losses of the Series are allocated pro rata among the Fund and any other
investors in the Series.
NOTE B -- ADMINISTRATION FEES, DISTRIBUTION ARRANGEMENTS, AND OTHER TRANSACTIONS
WITH AFFILIATES:
Fund shares are issued and redeemed in connection with investments in and
payments under certain variable annuity contracts and variable life insurance
policies issued through separate accounts of life insurance companies.
The Fund retains Neuberger&Berman Management
Incorporated-Registered Trademark- ("N&B Management") as its administrator under
an Administration Agreement ("Agreement"). Pursuant to this Agreement the Fund
pays N&B Management an administration fee at the annual rate of 0.40% of the
Fund's average daily net assets. The Fund indirectly pays for investment
management services through its investment in the Series (see Note B of Notes to
Financial Statements of the Series).
Effective May 1, 1995, the trustees of the Trust adopted a non-fee
distribution plan for each series of the Trust.
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 six
months ended June 30, 1998, such excess expenses amounted to $28,850.
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 $1,043.
NOTE C -- INVESTMENT TRANSACTIONS:
During the six months ended June 30, 1998, additions and reductions in the
Fund's investment in its Series amounted to $17,588 and $1,720,201,
respectively.
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Fund without audit by independent auditors. Annual reports
contain audited financial statements.
B-5
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements. It should be read in conjunction with its Series' Financial
Statements and notes thereto.(1)
<TABLE>
<CAPTION>
Period from
Six Months Ended March 22,
June 30, 1994(3) to
1998 Year Ended December 31, December 31,
(UNAUDITED)(2) 1997(2) 1996(2) 1995(2) 1994
-------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $11.14 $10.63 $10.93 $10.15 $10.00
-------------------------------------------------------------
Income From Investment Operations
Net Investment Income .63 .53 .67 .70 .37
Net Gains or Losses on Securities (both realized and
unrealized) (.34) .44 (.54) .46 (.22)
-------------------------------------------------------------
Total From Investment Operations .29 .97 .13 1.16 .15
-------------------------------------------------------------
Less Distributions
Dividends (from net investment income) (1.64) (.46) (.39) (.38) --
Distributions (from net capital gains) (.17) -- (.04) -- --
-------------------------------------------------------------
Total Distributions (1.81) (.46) (.43) (.38) --
-------------------------------------------------------------
Net Asset Value, End of Period $ 9.62 $11.14 $10.63 $10.93 $10.15
-------------------------------------------------------------
Total Return(4) +2.95%(5) +9.51% +1.32% +11.76% +1.50%(5)
-------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 1.0 $ 2.6 $ 3.5 $ 2.2 $ 1.0
-------------------------------------------------------------
Ratio of Gross Expenses to Average Net Assets(6) 1.23%(7) 1.05% 1.05% 1.08% --
-------------------------------------------------------------
Ratio of Net Expenses to Average Net Assets(8) 1.09%(7) 1.02% 1.02% 1.05% 1.09%(7)
-------------------------------------------------------------
Ratio of Net Investment Income to Average Net Assets(8) 4.96%(7) 5.52% 5.59% 5.71% 4.78%(7)
-------------------------------------------------------------
Portfolio Turnover Rate(9) -- -- -- 2% 3%
-------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-6
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Government Income Portfolio
1) The per share amounts which are shown have been computed based on the average
number of shares outstanding during each fiscal period.
2) The per share amounts and ratios which are shown reflect income and expenses,
including the Fund's proportionate share of the Series' income and expenses.
3) The date investment operations commenced.
4) Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each fiscal
period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee future
results. Investment returns and principal may fluctuate and shares when
redeemed may be worth more or less than original cost. Total return 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
for all fiscal periods shown.
5) Not annualized.
6) For fiscal periods ending after September 1, 1995, the Fund is required to
calculate an expense ratio without taking into consideration any expense
reductions related to expense offset arrangements.
7) Annualized.
8) 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:
<TABLE>
<CAPTION>
Period from
Six Months Ended March 22, 1994
June 30, Year Ended December 31, to December 31,
1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Expenses 4.93% 2.88% 2.95% 4.21% 2.57%
-------------------------------------------------------------
Net Investment Income 1.12% 3.66% 3.66% 2.55% 3.30%
-------------------------------------------------------------
</TABLE>
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 periods ending after April 28, 1995, are included in the
Financial Highlights of AMT Government Income Investments, which appear
elsewhere in this report.
B-7
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- --------- ------- ----- ---------
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES (12.8%)
$ 10,000 U.S. Treasury Notes, 6.375%, due 8/15/02 TSY TSY $ 10,301
5,000 U.S. Treasury Notes, 5.75%, due 4/30/03 TSY TSY 5,044
35,896 U.S. Treasury Inflation-Indexed Notes, 3.375%, due
1/15/07 TSY TSY 34,752
5,000 U.S. Treasury Notes, 6.625%, due 5/15/07 TSY TSY 5,365
60,000 U.S. Treasury Bonds, 6.75%, due 8/15/26 TSY TSY 68,642
---------
TOTAL U.S. TREASURY SECURITIES (COST $115,657) 124,104
---------
U.S. GOVERNMENT AGENCY SECURITIES (23.6%)
40,000 Freddie Mac, Bonds, 6.80%, due 3/19/07 AGY AGY 42,505
185,000 Federal Home Loan Bank, Bonds, 5.925%, due 4/9/08 AGY AGY 186,549
---------
TOTAL U.S. GOVERNMENT AGENCY SECURITIES (COST
$228,881) 229,054
---------
MORTGAGE-BACKED SECURITIES (41.5%)
FANNIE MAE
19,477 Pass-Through Certificates, 6.00%, due 3/1/11 AGY AGY 19,302
34,552 Pass-Through Certificates, 7.50%, due 5/1/11 AGY AGY 35,491
64,750 Pass-Through Certificates, 6.50%, due 11/1/10 &
1/1/26 AGY AGY 64,852
132,739 Pass-Through Certificates, 7.00%, due
1/1/10-4/1/27 AGY AGY 134,716
FREDDIE MAC
70,712 Gold Mortgage Participation Certificates, 7.00%,
due 4/1/11 AGY AGY 71,997
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
74,492 Pass-Through Certificates, 7.50%, due 7/15/11 &
3/15/26 AGY AGY 76,671
---------
TOTAL MORTGAGE-BACKED SECURITIES (COST $392,288) 403,029
---------
ASSET-BACKED SECURITIES (13.4%)
50,000 Ford Credit Auto Loan Master Trust, Auto Loan
Certificates, Ser. 1996-1, 5.50%, due 2/15/03 Aaa AAA 49,697
75,000 Standard Credit Card Master Trust I, Credit Card
Participation Certificates, Ser. 1994-4, Class A,
8.25%, due 11/7/03 Aaa AAA 80,164
---------
TOTAL ASSET-BACKED SECURITIES (COST $132,201) 129,861
---------
TOTAL INVESTMENTS (91.3%) (COST $869,027) 886,048(2)
Cash, receivables and other assets, less
liabilities (8.7%) 84,251
---------
TOTAL NET ASSETS (100.0%) $ 970,299
---------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-8
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
1) Investment securities of the Series are valued daily by obtaining bid price
quotations from independent pricing services on selected securities available
in each service's data base. For all other securities requiring daily
quotations, bid prices are obtained from principal market makers in those
securities or, if quotations are not available, by a method 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
investments with less than 60 days until maturity may be valued at cost
which, when combined with interest earned, approximates market value.
2) At June 30, 1998, the cost of investments for Federal income tax purposes was
$869,099. Gross unrealized appreciation of investments was $20,397 and gross
unrealized depreciation of investments was $3,448, resulting in net
unrealized appreciation of $16,949, based on cost for Federal income tax
purposes.
SEE NOTES TO FINANCIAL STATEMENTS
B-9
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
June 30,
1998
(UNAUDITED)
-----------
<S> <C>
ASSETS
Investments in securities, at market value* (Note
A) -- see Schedule of Investments $886,048
Cash 68,876
Interest receivable 9,962
Deferred organization costs (Note A) 7,892
Prepaid expenses and other assets 37
-----------
972,815
-----------
LIABILITIES
Accrued expenses 2,237
Payable to investment manager (Note B) 279
-----------
2,516
-----------
NET ASSETS Applicable to Investors' Beneficial Interests $970,299
-----------
NET ASSETS consist of:
Paid-in capital $953,278
Net unrealized appreciation in value of investment
securities 17,021
-----------
NET ASSETS $970,299
-----------
*Cost of investments $869,027
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-10
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1998
(UNAUDITED)
-----------
<S> <C>
INVESTMENT INCOME
Interest income $ 45,422
-----------
Expenses:
Investment management fee (Note B) 2,628
Accounting fees 4,942
Custodian fees (Note B) 4,767
Legal fees 2,530
Amortization of deferred organization and initial
offering expenses (Note A) 2,132
Insurance expense 41
Trustees' fees and expenses 29
Auditing fees 13
Miscellaneous 1,072
-----------
Total expenses 18,154
Expenses reduced by custodian fee expense offset
arrangement (Note B) (1,043)
-----------
Total net expenses 17,111
-----------
Net investment income 28,311
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment securities sold 67,188
Change in net unrealized appreciation of investment
securities (53,154)
-----------
Net gain on investments 14,034
-----------
Net increase in net assets resulting from operations $ 42,345
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-11
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
Six Months
Ended Year
June 30, Ended
1998 December 31,
(UNAUDITED) 1997
---------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 28,311 $ 172,490
Net realized gain on investments 67,188 32,748
Change in net unrealized appreciation (depreciation) of
investments (53,154) 83,122
---------------------------
Net increase in net assets resulting from operations 42,345 288,360
---------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Additions 17,588 1,086,368
Reductions (1,720,201) (2,205,071)
---------------------------
Net decrease in net assets resulting from transactions
in investors' beneficial interests (1,702,613) (1,118,703)
---------------------------
NET DECREASE IN NET ASSETS (1,660,268) (830,343)
NET ASSETS:
Beginning of period 2,630,567 3,460,910
---------------------------
End of period $ 970,299 $ 2,630,567
---------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Government Income Investments (the "Series") is a separate
operating series of Advisers Managers Trust ("Managers Trust"), a New York
common law trust organized as of May 24, 1994. Managers Trust is currently
comprised of 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. 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 June 30, 1998, the unamortized balance of such
expenses amounted to $7,892.
6) EXPENSE ALLOCATION: Expenses directly attributable to a series are charged to
that series. Expenses not directly attributed to a series are allocated, on
the basis of relative net assets, to each of the series of Managers Trust.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains Neuberger&Berman Management Incorporated ("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 0.35% of the first $500 million of the Series' average daily net
assets, 0.325% of the next $500 million, 0.30% of the next $500 million, 0.275%
of the next $500 million, and 0.25% of average daily net assets in excess of $2
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. 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 $1,043.
B-13
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Government Income Investments
NOTE C -- SECURITIES TRANSACTIONS:
During the six months ended June 30, 1998, there were purchase and sale
transactions (excluding short-term securities) of $437,895 and $2,160,788,
respectively.
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Series without audit by independent auditors. Annual reports
contain audited financial statements.
B-14
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
Six Months
Ended Period from
June 30, Year Ended May 1, 1995(1)
1998 December 31, to December 31,
(UNAUDITED) 1997 1996 1995
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<S> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(2) 2.42%(3) 1.44% 1.37% 1.81%(3)
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Net Expenses 2.28%(3) 1.41% 1.34% 1.77%(3)
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Net Investment Income 3.77%(3) 5.12% 5.26% 4.78%(3)
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Portfolio Turnover Rate 31% 152% 231% 64%
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Net Assets, End of Period (in millions) $1.0 $2.6 $3.5 $2.2
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</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-15
