<PAGE>
GROWTH PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1997
NBAMT0221297
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT 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.
As reflected in the S&P "500" Index's* 33.32% gain (including reinvestment of
dividends), 1997 was another great year for large-cap stocks. It was a good year
for mid-cap growth stocks, with the Russell Midcap-TM- Growth Index returning
22.54%.
Since we took over management of the Portfolio in mid-July, this is our first
opportunity to directly address the shareholders. Consequently, we thought it
important 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.
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 to be 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.
Now that we have detailed our discipline, some comments on the market are
appropriate. Although mid-cap stocks have a superior long term performance
record, they have lagged large-cap stocks in recent years. Will this continue?
We don't know. However, on a fundamental basis, mid-cap stocks appear quite
inexpensive relative to their large-cap counterparts. Currently, the S&P "500"
is trading at approximately two times its projected five-year earnings growth
rate. The portfolio presently trades at only one time its projected five-year
earnings growth rate. One could argue that large-cap stocks deserve this
price/earnings growth rate premium because they have been growing earnings
faster than mid-cap stocks. In recent years, there is some validity to this
argument. Going forward, we believe
A-2
<PAGE>
it will be called into question. To wit: based on consensus earnings estimates
from First Call (an independent research firm that compiles and distributes Wall
Street earnings estimates), S&P "500" earnings are expected to grow 7% in
calendar 1998 and 10% annually over the next five years. Also based on First
Call, our portfolio holdings are projected to grow earnings by 25% in calendar
1998 and 21% annually over the next five years.
Of course, consensus earnings estimates do not always translate into earnings
realities. With justifiable uncertainty over the impact of Asian economic woes
on the earnings prospects for many American companies, consensus estimates may
prove particularly unreliable in the year ahead. Since taking over management of
the Portfolio in mid-July, we have eliminated what we saw as richly priced
large-cap stocks in the banking and drug industries -- strong performers in
first half 1997 -- and replaced them with fundamentally less expensive mid-cap
growth companies. We also purged commodity oriented technology companies that we
believed vulnerable on the earnings front. We are emphasizing companies with
proprietary products, cost advantages, profit margins that can be maintained
without price increases, and geographical diversification. We are particularly
disposed to companies with productivity enhancing products, where we expect to
continue to see strong demand in today's tight labor market. We believe these
are the kinds of companies most likely to meet or exceed earnings projections in
this somewhat unsettled economic environment.
Perhaps the best way to demonstrate our investment discipline in action is to
discuss several portfolio holdings at year end 1997. Be aware that 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 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 Phamaceuticals 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, 1997 was a transition year in the management of the AMT Growth
Portfolio. We believe the timing of the change in management will prove
advantageous. We enjoyed very strong performance from large-cap growth
A-3
<PAGE>
companies in first half 1997. We have replaced them with, in our opinion, more
reasonably valued mid-cap companies with better future earnings growth
prospects. We believe our portfolio is well positioned to take advantage of what
we think will be a more favorable outlook for mid-cap growth stocks in the year
ahead.
Sincerely,
[/S/ JENNIFER K. SILVER] [/S/ BROOKE A. COBB]
Jennifer K. Silver and Brooke A. Cobb
PORTFOLIO CO-MANAGERS
*The S&P "500" Index is an unmanaged index generally considered to be
representative of stock market activity. The Russell Midcap Growth Index
measures the performance of those Russell Midcap-TM- Index companies with
higher price-to-book ratios and higher forecasted growth values. The Russell
Midcap Index measures the performance of the 800 smallest companies in the
Russell 1000-Registered Trademark- Index, which represents approximately 35% of
the total market capitalization of the Russell 1000 Index (which in turn,
consists of the 1,000 largest U.S. companies, based on market capitalization).
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 dividend and capital
gain distributions. The Portfolio invests in many securities not included in
the above described indices.
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-4
<PAGE>
COMPARISON OF A $10,000 INVESTMENT
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Growth Portfolio
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN (1)
RUSSELL MIDCAP -TM-
GROWTH PORTFOLIO S&P "500" (2) GROWTH INDEX
<S> <C> <C> <C>
1 Year +29.01% +33.32% +22.54%
5 Year +13.48% +20.22% +15.98%
10 Year +14.88% +18.00% +16.80%
Life of Fund +13.95% +17.89% NA
Growth Portfolio S&P "500" Russell Midcap
Growth Index(2)
1987 $ 10,000 $ 10,000 $ 10,000
1988 $ 12,597 $ 11,650 $ 11,292
1989 $ 16,310 $ 15,330 $ 14,848
1990 $ 14,974 $ 14,852 $ 14,086
1991 $ 19,426 $ 19,358 $ 20,710
1992 $ 21,280 $ 20,831 $ 22,515
1993 $ 22,725 $ 22,921 $ 25,035
1994 $ 21,591 $ 23,232 $ 24,493
1995 $ 28,441 $ 31,931 $ 32,815
1996 $ 31,041 $ 39,243 $ 38,550
1997 $ 40,045 $ 52,317 $ 47,240
</TABLE>
The inception date of Neuberger&Berman Advisers Management Trust Growth
Portfolio-SM- (the "Fund") is 9/10/84.
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. Before July 1997, AMT Growth Investments-SM- (the "Series") was managed using
a "growth at a reasonable price" investment approach. Under this blended value
and growth approach, the Portfolio Manager purchased securities of small-,
medium-, and large-capitalization companies that he believed offered greater
potential for long-term capital appreciation, in most cases at prices reflecting
relatively higher multiples to measures of economic value (such as earnings or
cash flow) compared to securities purchased by other Neuberger&Berman funds.
In July 1997, growth-style Managers Jennifer Silver and Brooke Cobb joined
Neuberger&Berman Management Inc. and assumed responsibility for the Series. Ms.
Silver now heads Neuberger&Berman, LLC's new Growth Equity Group in Boston. The
Series is now managed using a growth-oriented investment approach. True to this
new approach, the Managers seek securities of companies that are growing
earnings faster than the average American business, and ideally, faster than
competitors in their respective industries. In return for this perceived higher
earnings growth potential, the Managers are willing to pay a higher absolute
multiple for these securities. They do so because they believe these stocks
offer greater potential for long-term capital appreciation. Moreover, while the
Series can still invest in securities of small-, medium-, and large-cap
companies, the Managers currently intend to focus on the securities of
medium-cap companies.
The S&P "500" Index is an unmanaged index generally considered to be
representative of overall stock market activity. The Russell Midcap-TM- Index
measures the performance of the 800 smallest companies in the Russell 1000
Index, which represents approximately 35% of the total market capitalization of
the Russell 1000 Index (which, in turn, consists of the 1,000 largest U.S.
companies, based on market capitalization). The Russell Midcap Growth Index
measures the performance of those Russell Midcap Index companies with higher
price-to-book ratios and higher forecasted growth values.
Therefore, the Series prior to July 1997 was appropriately compared to the S&P
"500" Index as a benchmark. However, with its focus on medium-cap growth stocks,
the Series is more appropriately compared to the Russell Midcap Growth Index as
a benchmark.
B-1
<PAGE>
COMPARISON OF A $10,000 INVESTMENT (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Growth Portfolio
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. 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
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-2
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Growth Portfolio
<TABLE>
<CAPTION>
December 31,
1997
-------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $586,426,676
Receivable for Trust shares sold 214,329
-------------
586,641,005
-------------
LIABILITIES
Payable for Trust shares redeemed 2,747,481
Payable to administrator (Note B) 143,350
Accrued expenses 37,816
-------------
2,928,647
-------------
NET ASSETS at value $583,712,358
-------------
NET ASSETS consist of:
Par value $ 19,111
Paid-in capital in excess of par value 347,733,155
Accumulated net realized gains on investment 152,102,608
Net unrealized appreciation in value of investment 83,857,484
-------------
NET ASSETS at value $583,712,358
-------------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 19,110,695
-------------
NET ASSET VALUE, offering and redemption price per share $30.54
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Growth Portfolio
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1997
-------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 5,058,055
-------------
Expenses:
Administration fee (Note B) 1,930,638
Shareholder reports 45,964
Legal fees 40,391
Trustees' fees and expenses 28,020
Custodian fees 10,000
Auditing fees 5,357
Miscellaneous 3,644
Expenses from Series (Notes A & B) 3,720,692
-------------
Total expenses 5,784,706
Expenses reduced by custodian fee expense offset arrangement
(Note B) (1,118)
-------------
Total net expenses 5,783,588
-------------
Net investment loss (725,533)
-------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM SERIES (NOTE A)
Net realized gain on investment securities 153,191,649
Change in net unrealized appreciation of investment securities 3,903,917
-------------
Net gain on investments from Series (Note A) 157,095,566
-------------
Net increase in net assets resulting from operations $156,370,033
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-4
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Growth Portfolio
<TABLE>
<CAPTION>
Year Ended
December 31,
1997 1996
--------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss $ (725,533) $ (1,677,914)
Net realized gain on investments from Series (Note A) 153,191,649 51,132,307
Change in net unrealized appreciation of investments from Series
(Note A) 3,903,917 (2,450,589)
--------------------------
Net increase in net assets resulting from operations 156,370,033 47,003,804
--------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (208,432)
Net realized gain on investments (49,277,630) (48,772,973)
--------------------------
Total distributions to shareholders (49,277,630) (48,981,405)
--------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 223,605,310 216,117,604
Proceeds from reinvestment of dividends and distributions 49,277,630 48,981,405
Payments for shares redeemed (362,613,832) (234,592,420)
--------------------------
Net increase (decrease) from Trust share transactions (89,730,892) 30,506,589
--------------------------
NET INCREASE IN NET ASSETS 17,361,511 28,528,988
NET ASSETS:
Beginning of year 566,350,847 537,821,859
--------------------------
End of year $583,712,358 $566,350,847
--------------------------
Accumulated undistributed net investment income at end of year $ -- $ --
--------------------------
NUMBER OF TRUST SHARES:
Sold 7,977,685 8,632,606
Issued on reinvestment of dividends and distributions 1,931,696 1,975,853
Redeemed (12,770,875) (9,433,775)
--------------------------
Net increase (decrease) in shares outstanding (2,861,494) 1,174,684
--------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Growth Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: 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 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 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 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.
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.
B-6
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Growth Portfolio
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.
The Fund retains Neuberger&Berman Management Incorporated ("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 (excluding the fees payable to N&B 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 N&B Management upon at
least 60 days' prior written notice to the Fund. For the year ended December 31,
1997, no reimbursement to the Fund was required.
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 $1,118.
NOTE C -- INVESTMENT TRANSACTIONS:
During the year ended December 31, 1997, additions and reductions in the
Fund's investment in its Series amounted to $186,375,318 and $327,021,324,
respectively.
B-7
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Growth 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>
Year Ended December 31,
1997(2) 1996(2) 1995(2) 1994 1993 1992 1991 1990 1989 1988
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $25.78 $25.86 $20.31 $24.28 $23.27 $21.47 $16.82 $20.28 $16.20 $12.86
------------------------------------------------------------------------------------
Income From Investment Operations
Net Investment Income (Loss) (.03) (.07) .01 .07 .13 .21 .31 .43 .43 .32
Net Gains or Losses on Securities
(both realized and unrealized) 7.06 2.34 6.26 (1.11) 1.42 1.82 4.64 (2.04) 4.24 3.02
------------------------------------------------------------------------------------
Total From Investment Operations 7.03 2.27 6.27 (1.04) 1.55 2.03 4.95 (1.61) 4.67 3.34
------------------------------------------------------------------------------------
Less Distributions
Dividends (from net investment
income) -- (.01) (.05) (.12) (.17) (.23) (.30) (.29) (.27) --
Distributions (from net capital
gains) (2.27) (2.34) (.67) (2.81) (.37) -- -- (1.56) (.32) --
------------------------------------------------------------------------------------
Total Distributions (2.27) (2.35) (.72) (2.93) (.54) (.23) (.30) (1.85) (.59) --
------------------------------------------------------------------------------------
Net Asset Value, End of Year $30.54 $25.78 $25.86 $20.31 $24.28 $23.27 $21.47 $16.82 $20.28 $16.20
------------------------------------------------------------------------------------
Total Return(3) +29.01% +9.14% +31.73% -4.99% +6.79% +9.54% +29.73% -8.19% +29.47% +25.97%
------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Year (in
millions) $583.7 $566.4 $537.8 $369.3 $366.5 $304.8 $228.9 $118.8 $92.8 $48.7
------------------------------------------------------------------------------------
Ratio of Gross Expenses to Average
Net Assets(4) .90% .92% .90% -- -- -- -- -- -- --
------------------------------------------------------------------------------------
Ratio of Net Expenses to Average Net
Assets .90% .92% .90% .84% .81% .82% .86% .91% .97% .92%
------------------------------------------------------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets (.11%) (.30%) .04% .26% .52% .92% 1.43% 2.12% 2.10% 2.12%
------------------------------------------------------------------------------------
Portfolio Turnover Rate(5) -- -- 9% 46% 92% 63% 57% 76% 105% 95%
------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-8
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Growth 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) 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. 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
all fiscal periods shown.
4) 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.
5) 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 Growth Investments, which appear elsewhere in
this report.
B-9
<PAGE>
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Trustees of
Neuberger&Berman Advisers Management Trust and
Shareholders of Growth Portfolio
We have audited the accompanying statement of assets and liabilities of
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 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 Growth
Portfolio of Neuberger&Berman Advisers Management Trust at December 31, 1997,
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.
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 26, 1998
B-10
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Growth Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
COMMON STOCKS (94.6%)
BASIC MATERIALS (2.0%)
145,200 Cytec Industries $ 6,815,325(2)
289,900 NS Group 4,964,537(2)
------------
11,779,862
------------
CAPITAL GOODS (4.5%)
464,800 Corporate Express 5,984,300(2)
454,600 Philip Services 6,534,875(2)
160,900 U.S. Filter 4,816,944(2)
232,900 USA Waste Services 9,141,325(2)
------------
26,477,444
------------
COMMUNICATIONS (2.1%)
134,500 CIENA Corp. 8,221,312(2)
180,600 RSL Communications 3,973,200(2)
------------
12,194,512
------------
CONSUMER CYCLICALS (18.7%)
124,700 American Skiing 1,854,912(2)
332,400 Authentic Fitness 6,128,625
192,700 Cendant Corp. 6,624,063(2)
213,500 Costco Cos. 9,527,438(2)
81,200 Dollar Thrifty 1,664,600(2)
86,700 GTECH Holdings 2,768,981(2)
238,200 Hayes Lemmerz International 6,669,600(2)
124,000 HON INDUSTRIES 7,316,000
160,900 Outdoor Systems 6,174,537(2)
279,123 Promus Hotel 11,723,145(2)
231,950 Robert Half International 9,278,000(2)
448,200 Staples Inc. 12,437,550(2)
139,900 Sylvan Learning Systems 5,456,100(2)
160,000 Tiffany & Co. 5,770,000
339,000 TJX Cos. 11,653,125
226,800 Viking Office Products 4,947,075(2)
------------
109,993,751
------------
CONSUMER STAPLES (13.7%)
137,000 Cardinal Health 10,292,125
164,100 Chancellor Media 12,245,963(2)
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
150,200 Cheesecake Factory $ 4,581,100(2)
328,900 CKE Restaurants 13,854,913
310,800 Comcast Corp. Class A Special 9,809,625
159,800 Estee Lauder 8,219,712
446,100 General Nutrition 15,167,400(2)
202,300 Rexall Sundown 6,106,931(2)
------------
80,277,769
------------
ENERGY (7.7%)
115,600 BJ Services 8,315,975(2)
263,500 Enron Oil & Gas 5,582,906
294,800 Noble Drilling 9,028,250(2)
222,000 Oryx Energy 5,661,000(2)
243,000 Seagull Energy 5,011,875(2)
201,800 The Williams Cos. 5,726,075
105,700 Tidewater Inc. 5,826,713
------------
45,152,794
------------
FINANCIAL SERVICES (14.8%)
114,200 ACE Ltd. 11,020,300
166,900 Bear Stearns 7,927,750
144,600 Equitable Cos. 7,193,850
150,400 EXEL Ltd. 9,531,600
208,100 Finova Group 10,339,969
176,700 FIRSTPLUS Financial Group 6,780,863(2)
105,700 GreenPoint Financial 7,669,856
146,400 Northern Trust 10,211,400
142,000 State Street Corp. 8,262,625
189,200 SunAmerica, Inc. 8,088,300
------------
87,026,513
------------
HEALTH CARE (10.7%)
117,700 Alternative Living Services 3,479,506(2)
323,900 Dura Pharmaceuticals 14,858,913(2)
134,800 Elan Corp. ADR 6,900,075(2)
150,500 HBO & Co. 7,224,000
296,600 Omnicare, Inc. 9,194,600
238,800 Quintiles Transnational 9,134,100(2)
</TABLE>
B-11
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Growth Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
286,000 Watson Pharmaceuticals $ 9,277,125(2)
142,600 Zonagen, Inc. 2,593,537(2)
------------
62,661,856
------------
TECHNOLOGY (16.8%)
151,300 BMC Software 9,929,062(2)
120,400 Cadence Design Systems 2,949,800(2)
113,100 CBT Group ADR 9,288,338(2)
234,450 CHS Electronics 4,014,956(2)
109,200 Citrix Systems 8,299,200(2)
271,900 Equifax, Inc. 9,635,456
217,300 J.D. Edwards & Co. 6,410,350(2)
162,700 KLA-Tencor 6,284,288(2)
32,000 Metromedia Fiber Network 532,000(2)
249,200 Network Appliance 8,846,600(2)
173,300 Network Associates 9,163,238(2)
241,200 NEXTLINK Communications 5,140,575(2)
112,800 Spectrian Corp. 2,171,400(2)
230,400 Sterling Commerce 8,856,000(2)
221,700 Teradyne, Inc. 7,094,400(2)
------------
98,615,663
------------
TRANSPORTATION (1.4%)
328,800 Southwest Airlines 8,096,700
------------
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
UTILITIES (2.2%)
272,500 AES Corp. $ 12,705,312(2)
------------
TOTAL COMMON STOCKS
(COST $471,115,092) 554,982,176
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
- ----------
<C> <S> <C>
U.S. TREASURY SECURITIES
(4.5%)
$26,450,000 U.S. Treasury Bills, 4.50% -
5.10%, due 1/8/98 - 2/26/98
(COST $26,316,574) 26,306,974
------------
SHORT-TERM CORPORATE NOTES
(0.5%)
2,770,000 General Electric Capital
Corp., 5.95%, due 1/2/98 (COST
$2,770,000) 2,770,000(3)
------------
TOTAL INVESTMENTS (99.6%)
(COST $500,201,666) 584,059,150(4)
Cash, receivables and other
assets, less liabilities
(0.4%) 2,367,527
------------
TOTAL NET ASSETS (100.0%) $586,426,677
------------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-12
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT 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 $501,368,063. Gross unrealized appreciation of investments was
$108,990,969 and gross unrealized depreciation of investments was
$26,299,882, resulting in net unrealized appreciation of $82,691,087, based
on cost for Federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
B-13
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Growth Investments
<TABLE>
<CAPTION>
December 31,
1997
-------------
<S> <C>
ASSETS
Investments in securities, at market value* (Note A) -- see
Schedule of Investments $584,059,150
Cash 8,804
Receivable for securities sold 9,646,561
Dividends and interest receivable 183,339
Deferred organization costs (Note A) 44,962
Prepaid expenses and other assets 12,962
-------------
593,955,778
-------------
LIABILITIES
Payable for securities purchased 4,421,101
Payable for collateral on securities loaned (Note A) 2,766,000
Payable to investment manager (Note B) 254,889
Accrued expenses 87,111
-------------
7,529,101
-------------
NET ASSETS Applicable to Investors' Beneficial Interests $586,426,677
-------------
NET ASSETS consist of:
Paid-in capital $502,569,193
Net unrealized appreciation in value of investment securities 83,857,484
-------------
NET ASSETS $586,426,677
-------------
*Cost of investments $500,201,666
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-14
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Growth Investments
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1997
-------------
<S> <C>
INVESTMENT INCOME
Income:
Dividend income $ 3,576,699
Interest income 1,541,282
Foreign taxes withheld (Note A) (59,926)
-------------
Total income 5,058,055
-------------
Expenses:
Investment management fee (Note B) 3,405,928
Custodian fees (Note B) 182,838
Legal fees 30,670
Trustees' fees and expenses 28,265
Auditing fees 19,945
Amortization of deferred organization and initial offering
expenses (Note A) 19,286
Insurance expense 11,611
Accounting fees 10,000
Miscellaneous 12,149
-------------
Total expenses 3,720,692
Expenses reduced by custodian fee expense offset arrangement
(Note B) (1,118)
-------------
Total net expenses 3,719,574
-------------
Net investment income 1,338,481
-------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment securities sold 153,191,649
Change in net unrealized appreciation of investment securities 3,903,917
-------------
Net gain on investments 157,095,566
-------------
Net increase in net assets resulting from operations $158,434,047
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Growth Investments
<TABLE>
<CAPTION>
Year Ended
December 31,
1997 1996
--------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 1,338,481 $ 222,037
Net realized gain on investments 153,191,649 51,132,307
Change in net unrealized appreciation of investments 3,903,917 (2,450,589)
--------------------------
Net increase in net assets resulting from operations 158,434,047 48,903,755
--------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Additions 186,375,318 182,852,512
Reductions (327,021,324) (263,927,424)
--------------------------
Net decrease in net assets resulting from transactions in
investors' beneficial interests (140,646,006) (81,074,912)
--------------------------
NET INCREASE (DECREASE) IN NET ASSETS 17,788,041 (32,171,157)
NET ASSETS:
Beginning of year 568,638,636 600,809,793
--------------------------
End of year $586,426,677 $568,638,636
--------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-16
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Growth Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT 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. 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 "1940 Act").
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) 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, 1997, the unamortized balance of such
expenses amounted to $44,962.
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) SECURITY LENDING: Security loans involve certain risks in the event a
borrower should fail financially, including delays or inability to recover
the lent securities or foreclose against the collateral. The investment
manager, under the general supervision of Managers Trust's Board of Trustees,
monitors the creditworthiness of the parties to whom the Series make security
loans. The Series will not lend securities on which covered call options have
been written, or lend securities on terms which would prevent each of their
investors from qualifying as a regulated investment company. Security loans
to Neuberger&Berman, LLC ("Neuberger"), the Series' principal broker and
sub-adviser, are made in accordance with an exemptive order issued by the
Securities and Exchange Commission under the 1940 Act. The Series receives
cash as collateral against the lent securities, which must be maintained at
not less than 100% of the market value of the lent securities during the
period of the loan. The Series receives income earned on the lent securities
and a portion of the income earned on the cash collateral. During the year
ended December 31, 1997, the Series lent securities to Neuberger. At December
31, 1997, the value of the securities loaned and the value of the collateral
amounted to $2,515,331 and $2,766,000, respectively.
B-17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Growth Investments
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 ("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, 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 $1,118.
NOTE C -- SECURITIES TRANSACTIONS:
During the year ended December 31, 1997, there were purchase and sale
transactions (excluding short-term securities) of $690,479,950 and $857,508,371,
respectively.
During the year ended December 31, 1997, brokerage commissions on securities
transactions amounted to $1,297,021, of which Neuberger received $541,724, and
other brokers received $755,297.
In addition, Neuberger's share of the total interest income earned for the
year ended December 31, 1997, from the collateralization of securities loaned to
or through Neuberger was $280,881.
NOTE D -- COMBINED LINE OF CREDIT:
At December 31, 1997, the Series was a holder of an unsecured $60,000,000
combined line of credit with State Street Bank and Trust Company, to be used
only for temporary or emergency purposes. Interest is charged on borrowings
under this agreement at the overnight Federal Funds Rate plus .75% per annum. A
facility fee of .1% per annum of the available line of credit is charged to the
Series, of which the Series has agreed to pay its pro rata share, based on the
ratio of its net assets to the net assets of all the participants at the time
the fee is due and payable. The fee is paid quarterly in arrears, commencing
June 30, 1997. No compensating balance is required. Other investment companies
managed by N&B Management also participate in the line of credit on the same
terms. Because several investment companies participate, there is no assurance
that the Series will have access to the entire $60,000,000 at any particular
time. The Series had no loans outstanding pursuant to this line of credit at
December 31, 1997, nor had the Series utilized this line of credit at anytime
prior to that date.
B-18
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Growth Investments
<TABLE>
<CAPTION>
Period from
Year Ended May 1, 1995(1)
December 31, to December 31,
1997 1996 1995
---------------------------------
<S> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(2) .58% .59% .59%(3)
---------------------------------
Net Expenses .58% .59% .59%(3)
---------------------------------
Net Investment Income .21% .04% .31%(3)
---------------------------------
Portfolio Turnover Rate 113% 57% 35%
---------------------------------
Average Commission Rate Paid $0.0386 $0.0582 $0.0412
---------------------------------
Net Assets, End of Year (in millions) $586.4 $568.6 $600.8
---------------------------------
</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-19
<PAGE>
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Trustees of
Advisers Managers Trust and
Owners of Beneficial Interest of AMT Growth Investments
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of AMT Growth Investments, one of the
series comprising Advisers Managers Trust ("Managers Trust"), as of December 31,
1997, 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
Managers 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, 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 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
Growth Investments of Advisers Managers Trust at December 31, 1997, 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.
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 26, 1998
B-20
