<PAGE>
GUARDIAN PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1998
NBAMTSA70698
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Guardian Portfolio
The results for the first six months of AMT Guardian's existence have been
gratifying both in absolute terms and relative to the market. At the risk of
sounding like spoilsports, we would caution that these results should not be
extrapolated into the future.
What is commonly referred to as "The Market" has, to our minds, become
increasingly narrow as the year has progressed. This lack of breadth has been a
source of frustration to most money managers since the handful of stocks driving
the S&P "500" 's* performance are well outside the valuation parameters most
investment professionals feel comfortable with. The good news, in our opinion,
is that while the averages appear high in terms of valuation, there are several
neglected areas that offer real value.
The strategy we are employing is to go where we perceive these opportunities
to be. Using this approach, we have assembled a portfolio with an overall
price-to-earnings ratio some 35% lower than that of the S&P "500". Despite this
valuation discount, we believe our portfolio's potential for earnings increases
exceeds that of the S&P "500", although there can be no assurance of this.
We continue to find value in the financial and automotive sectors, and
industries in these two areas account for slightly more than half of the
portfolio's assets. We are cautiously increasing exposure to our technology
holdings -- a group that has been hard hit by the difficulties in Asia -- and
these stocks now account for slightly over 10% of our assets.
The broader picture we see at the current time is mixed. On the one hand, low
inflation and declining interest rates continue to drive valuations upward. On
the other hand, the difficulties in Asia seem destined to pressure U.S.
companies' earnings. In this environment, we will, as always, focus our
attention on individual stock selection.
Sincerely,
[SIG] [SIG]
Kent Simons and Kevin Risen
PORTFOLIO CO-MANAGERS
*The S&P "500" Index is an unmanaged index generally considered to be
representative of stock market activity. Please note that indices do not take
into account any fees and expenses of investing in the individual securities
that they track, and that individuals cannot invest directly in any index. Data
about the performance of these indices are prepared or obtained by
Neuberger&Berman Management Inc.-Registered Trademark- and include reinvestment
of all dividend and capital gain distributions. The Portfolio invests in many
securities not included in the above-described index.
The composition, industries and holdings 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.
Past performance is no guarantee of future results and shares when redeemed may
be worth more or less than their original cost.
The investments for the Portfolio are managed by the same portfolio manager(s)
who manage one or more other mutual funds that have similar names, investment
objectives and investment styles as the Portfolio. You should be aware that the
Portfolio is likely to differ from the other mutual funds in size, cash flow
pattern and tax matters. Accordingly, the holdings and performance of the
Portfolio can be expected to vary from those of the other mutual funds.
A-1
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Guardian Portfolio
<TABLE>
<CAPTION>
June 30,
1998
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 46,662,889
Receivable for Trust shares sold 323,123
Deferred organization costs (Note A) 9,041
--------------
46,995,053
--------------
LIABILITIES
Accrued expenses 23,281
Payable to administrator -- net (Note B) 3,417
Payable for Trust shares redeemed 200
--------------
26,898
--------------
NET ASSETS at value $ 46,968,155
--------------
NET ASSETS consist of:
Par value $ 3,269
Paid-in capital in excess of par value 46,475,702
Accumulated undistributed net investment
income 57,078
Accumulated net realized gains on investment 252,628
Net unrealized appreciation in value of
investment 179,478
--------------
NET ASSETS at value $ 46,968,155
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 3,269,327
--------------
NET ASSET VALUE, offering and redemption price per
share $14.37
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-1
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Guardian Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1998
(UNAUDITED)
------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 128,892
------------
Expenses:
Administration fee (Note B) 21,089
Shareholder reports 15,302
Custodian fees 4,959
Amortization of deferred organization and
initial offering expenses (Note A) 966
Trustees' fees and expenses 409
Auditing fees 178
Legal fees 40
Miscellaneous 501
Expenses from Series (Notes A & B) 60,997
------------
Total expenses 104,441
Expenses reimbursed by administrator and
reduced by custodian fee expense offset
arrangement (Note B) (34,144)
------------
Total net expenses 70,297
------------
Net investment income 58,595
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM
SERIES (NOTE A)
Net realized gain on investment securities 253,817
Change in net unrealized appreciation of
investment securities 161,490
------------
Net gain on investments from Series (Note
A) 415,307
------------
Net increase in net assets resulting from
operations $ 473,902
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Guardian Portfolio
<TABLE>
<CAPTION>
Period from
November 3,
1997
(Commencement
Six Months of
Ended Operations)
June 30, to
1998 December 31,
(UNAUDITED) 1997
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 58,595 $ 459
Net realized gain (loss) on
investments from Series (Note A) 253,817 (1,189)
Change in net unrealized
appreciation of investments from
Series (Note A) 161,490 17,988
-----------------------------
Net increase in net assets resulting
from operations 473,902 17,258
-----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (1,976) --
-----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 47,474,599 550,096
Proceeds from reinvestment of
dividends 1,976 --
Payments for shares redeemed (1,547,666) (34)
-----------------------------
Net increase from Trust share
transactions 45,928,909 550,062
-----------------------------
NET INCREASE IN NET ASSETS 46,400,835 567,320
NET ASSETS:
Beginning of period 567,320 --
-----------------------------
End of period $ 46,968,155 $ 567,320
-----------------------------
Accumulated undistributed net
investment income at end of period $ 57,078 $ 459
-----------------------------
NUMBER OF TRUST SHARES:
Sold 3,327,831 53,906
Issued on reinvestment of dividends 162 --
Redeemed (112,569) (3)
-----------------------------
Net increase in shares outstanding 3,215,424 53,903
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Guardian Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Guardian 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 Guardian 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)
- --------------------------------------------------------------------------------
Guardian 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 $9,041.
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 ("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 0.30% 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) ("Operating Expenses") which exceed, in the aggregate, 1% per
annum of the Fund's average daily net assets (the "Expense Limitation"). 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 $34,013. The Fund has agreed to repay N&B Management
through December 31, 1999, for its excess Operating Expenses previously
reimbursed by N&B Management, so long as its annual Operating Expenses during
that period do not exceed its Expense Limitation.
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 $131.
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 $46,460,196 and $844,325,
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
- --------------------------------------------------------------------------------
Guardian Portfolio
The following table includes selected data for a share outstanding throughout
each 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>
Six Months Period from
Ended November 3,
June 30, 1997(2)
1998 to December 31,
(UNAUDITED) 1997
--------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $10.52 $10.00
--------------------------------------
Income From Investment Operations
Net Investment Income .06 .01
Net Gains or Losses on Securities
(both realized and unrealized) 3.80 .51
--------------------------------------
Total From Investment Operations 3.86 .52
--------------------------------------
Less Distributions
Dividends (from net investment
income) (.01) --
--------------------------------------
Net Asset Value, End of Period $14.37 $10.52
--------------------------------------
Total Return(3)(4) +36.71% +5.20%
--------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $ 47.0 $ 0.6
--------------------------------------
Ratio of Gross Expenses to Average
Net Assets(5)(6) 1.00% 1.06%
--------------------------------------
Ratio of Net Expenses to Average Net
Assets(6)(7) 1.00% 1.00%
--------------------------------------
Ratio of Net Investment Income to
Average Net Assets(6)(7) .83% .98%
--------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-6
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Guardian 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 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 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.
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-7
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- -----------
<C> <S> <C>
COMMON STOCKS (92.6%)
AGRICULTURE (1.5%)
9,000 Potash Corp. of Saskatchewan $ 680,062
-----------
AUTOMOTIVE (10.5%)
15,000 Borg-Warner Automotive 720,938
27,800 Cabot Corp. 898,287
26,500 General Motors 1,770,531
12,000 Lear Corp. 615,750
23,000 LucasVarity PLC ADR 915,688
-----------
4,921,194
-----------
BANKING (11.8%)
23,000 Banc One 1,283,688
22,000 BankBoston Corp. 1,223,750
24,000 Chase Manhattan 1,812,000
8,000 CITICORP 1,194,000
-----------
5,513,438
-----------
BUILDING, CONSTRUCTION & REFURNISHING (2.2%)
50,000 D.R. Horton 1,043,750
-----------
CONSUMER GOODS & SERVICES (4.0%)
67,000 Cendant Corp. 1,398,625
10,000 Kimberly-Clark 458,750
-----------
1,857,375
-----------
ELECTRONICS (1.7%)
10,000 Novellus Systems 356,875
12,000 SCI Systems 451,500
-----------
808,375
-----------
FINANCIAL SERVICES (20.5%)
43,000 ADVANTA Corp. Class B 854,625
5,000 Associates First Capital 384,375
7,500 Beneficial Corp. 1,148,906
5,600 Capital One Financial 695,450
35,000 Countrywide Credit Industries 1,776,250
6,000 Hartford Financial Services
Group 686,250
14,000 Heller Financial 420,000
50,000 IndyMac Mortgage Holdings 1,137,500
11,000 Merrill Lynch 1,014,750
<CAPTION>
Number Market
of Shares Value(1)
- --------- -----------
<C> <S> <C>
8,000 Morgan Stanley Dean Witter $ 731,000
12,000 Travelers Group 727,500
-----------
9,576,606
-----------
GAS (1.0%)
10,000 Praxair, Inc. 468,125
-----------
HEALTH CARE (7.8%)
15,000 Foundation Health Systems 395,625
25,000 Humana Inc. 779,687
4,000 PacifiCare Health Systems
Class A 338,000
20,000 Trigon Healthcare 723,750
19,000 Wellpoint Health Networks 1,406,000
-----------
3,643,062
-----------
HEAVY INDUSTRY (1.3%)
20,000 UCAR International 583,750
-----------
INDUSTRIAL GOODS & SERVICES (5.3%)
11,000 American Standard 491,562
10,000 Crown Cork & Seal 475,000
14,000 Millennium Chemicals 474,250
23,000 U.S. Filter 645,438
7,900 USA Waste Services 390,063
-----------
2,476,313
-----------
INSURANCE (9.2%)
13,500 Aetna Inc. 1,027,687
12,500 LaSalle Re Holdings 473,438
10,000 RenaissanceRe Holdings 463,125
15,000 St. Paul Cos. 630,938
40,000 Travelers Property Casualty 1,715,000
-----------
4,310,188
-----------
RETAIL (2.8%)
12,000 Barnes & Noble 449,250
30,000 Furniture Brands International 841,875
-----------
1,291,125
-----------
TECHNOLOGY (9.4%)
21,500 Applied Materials 634,250
33,500 Atmel Corp. 456,437
31,000 Compaq Computer 879,625
35,000 National Semiconductor 461,563
</TABLE>
B-8
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- -----------
<C> <S> <C>
30,000 Rational Software $ 457,500
34,500 Teradyne, Inc. 922,875
10,000 Texas Instruments 583,125
-----------
4,395,375
-----------
TRANSPORTATION (3.6%)
22,000 Northwest Airlines 848,375
10,200 US Airways Group 808,350
-----------
1,656,725
-----------
TOTAL COMMON STOCKS
(COST $43,045,985) 43,225,463
-----------
<CAPTION>
Principal
Amount
- ---------
<C> <S> <C>
U.S. TREASURY SECURITIES
(5.8%)
$2,710,000 U.S. Treasury Bills, 4.82% &
4.87%, due 7/16/98 & 8/20/98
(COST $2,692,050) 2,692,050(2)
-----------
<CAPTION>
Principal Market
Amount Value(1)
- --------- -----------
<C> <S> <C>
SHORT-TERM INVESTMENTS (5.1%)
$1,090,000 General Electric Capital
Corp., 5.55%, due 7/6/98 $ 1,090,000(2)
1,289,791 N&B Securities Lending Quality
Fund, LLC 1,289,791(2)
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $2,379,791) 2,379,791
-----------
TOTAL INVESTMENTS (103.5%)
(COST $48,117,826) 48,297,304(3)
Liabilities, less cash,
receivables and other assets
[(3.5%)] (1,634,414)
-----------
TOTAL NET ASSETS (100.0%) $46,662,890
-----------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-9
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Guardian 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) At cost, which approximates market value.
3) At June 30, 1998, the cost of investments for Federal income tax purposes was
$48,117,826. Gross unrealized appreciation of investments was $1,912,948 and
gross unrealized depreciation of investments was $1,733,470, resulting in net
unrealized appreciation of $179,478, based on cost for Federal income tax
purposes.
SEE NOTES TO FINANCIAL STATEMENTS
B-10
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
June 30,
1998
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 48,297,304
Cash 4,197
Receivable for securities sold 441,100
Dividends and interest receivable 29,853
Deferred organization costs (Note A) 11,887
Other assets 42
--------------
48,784,383
--------------
LIABILITIES
Payable for collateral on securities loaned
(Note A) 1,289,791
Payable for securities purchased 798,744
Payable to investment manager (Note B) 19,507
Accrued expenses 13,451
--------------
2,121,493
--------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 46,662,890
--------------
NET ASSETS consist of:
Paid-in capital $ 46,483,412
Net unrealized appreciation in value of
investment securities 179,478
--------------
NET ASSETS $ 46,662,890
--------------
*Cost of investments $ 48,117,826
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-11
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1998
(UNAUDITED)
------------
<S> <C>
INVESTMENT INCOME
Income:
Dividend income $ 63,948
Interest income 66,313
Foreign taxes withheld (Note A) (1,369)
------------
Total income 128,892
------------
Expenses:
Investment management fee (Note B) 38,696
Custodian fees (Note B) 14,443
Accounting fees 4,960
Amortization of deferred organization and
initial offering expenses (Note A) 925
Auditing fees 641
Trustees' fees and expenses 410
Legal fees 358
Miscellaneous 564
------------
Total expenses 60,997
Expenses reduced by custodian fee expense
offset arrangement (Note B) (131)
------------
Total net expenses 60,866
------------
Net investment income 68,026
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment securities
sold 253,817
Change in net unrealized appreciation of
investment securities 161,490
------------
Net gain on investments 415,307
------------
Net increase in net assets resulting from
operations $ 483,333
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-12
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
Period from
November 3,
1997
(Commencement
Six Months of
Ended Operations)
June 30, to
1998 December 31,
(UNAUDITED) 1997
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 68,026 $ (3,529)
Net realized gain (loss) on
investments 253,817 (1,189)
Change in net unrealized
appreciation of investments 161,490 17,988
-----------------------------
Net increase in net assets resulting
from operations 483,333 13,270
-----------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 46,460,196 550,450
Reductions (844,325) (34)
-----------------------------
Net increase in net assets resulting
from transactions in investors'
beneficial interests 45,615,871 550,416
-----------------------------
NET INCREASE IN NET ASSETS 46,099,204 563,686
NET ASSETS:
Beginning of period 563,686 --
-----------------------------
End of period $ 46,662,890 $ 563,686
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-13
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Guardian Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Guardian 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 "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 June 30, 1998, the unamortized balance of such
expenses amounted to $11,887.
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: Securities 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 makes
security loans. The Series will not lend securities on which covered call
options have been written, or lend securities on terms which would prevent
investors from qualifying as a regulated investment company. Prior to June 1,
1998, the Series made securities loans to Neuberger&Berman, LLC
("Neuberger"), the Series' principal broker and sub-adviser. These loans were
made in accordance with an exemptive order issued by the Securities and
Exchange Commission under the 1940 Act. The Series received cash as
collateral against the lent securities, which was maintained at not less than
100% of the market value of the lent securities during the
B-14
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Guardian Investments
period of the loan. The Series received income earned on the lent securities
and a portion of the income earned on the cash collateral. During the six
months ended June 30, 1998, the Series lent securities to Neuberger.
Effective June 1, 1998, the Series entered into a Securities Lending
Agreement with Morgan Stanley & Co. Incorporated ("Morgan"). The Series
receives cash collateral equal to at least 100% of the current market value
of the loaned securities. The Series invests the cash collateral in the N&B
Securities Lending Quality Fund, LLC ("investment vehicle"). Income earned on
the investment vehicle is paid to Morgan monthly. The Series receives a fee,
payable monthly, negotiated by the Series and Morgan, based on the number and
duration of the lending transactions. At June 30, 1998, the value of the
securities loaned and the value of the collateral were $1,283,120 and
$1,289,791, respectively.
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 0.55% of the first $250 million of the Series' average daily net
assets, 0.525% of the next $250 million, 0.50% of the next $250 million, 0.475%
of the next $250 million, 0.45% of the next $500 million, and 0.425% 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 $131.
NOTE C -- SECURITIES TRANSACTIONS:
During the six months ended June 30, 1998, there were purchase and sale
transactions (excluding short-term securities) of $50,987,800 and $8,680,455,
respectively.
During the six months ended June 30, 1998, brokerage commissions on
securities transactions amounted to $62,509, of which Neuberger received
$42,642, and other brokers received $19,867.
In addition, Neuberger's share of the total interest income earned for the
six months ended June 30, 1998, from the collateralization of securities loaned
to or through Neuberger was $0.
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.
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<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
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AMT Guardian Investments
<TABLE>
<CAPTION>
Six Months Period from
Ended November 3,
June 30, 1997(1)
1998 to December 31,
(UNAUDITED) 1997
-------------------------------------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(2)(3) .87% 9.59%
-------------------------------------
Net Expenses(3) .87% 9.53%
-------------------------------------
Net Investment Income (Loss)(3) .97% (7.55%)
-------------------------------------
Portfolio Turnover Rate 60% 12%
-------------------------------------
Average Commission Rate Paid $0.0550 $0.0550
-------------------------------------
Net Assets, End of Period (in millions) $46.7 $0.6
-------------------------------------
</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-16
