<PAGE>
MID-CAP GROWTH PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1998
NBAMTSA80698
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
PORTFOLIO CO-MANAGERS JENNIFER SILVER AND BROOKE COBB LOVE SURPRISES --
POSITIVE EARNINGS SURPRISES THAT IS. THEIR RESEARCH REVEALS THAT THE STOCKS OF
COMPANIES CONSISTENTLY EXCEEDING CONSENSUS EARNINGS ESTIMATES HAVE TENDED TO BE
TERRIFIC PERFORMERS. THEY COMPUTER-SCREEN THE MID-CAP GROWTH STOCK UNIVERSE TO
ISOLATE STOCKS WHOSE MOST RECENT EARNINGS HAVE BEATEN THE STREET'S EXPECTATIONS.
THEY THEN ROLL UP THEIR SLEEVES, AND THROUGH DILIGENT FUNDAMENTAL RESEARCH,
STRIVE TO IDENTIFY THOSE COMPANIES MOST LIKELY TO RECORD A STRING OF POSITIVE
EARNINGS SURPRISES. THEIR GOAL IS TO INVEST TODAY IN THE FAST GROWING MID-SIZED
COMPANIES THAT WILL COMPRISE TOMORROW'S FORTUNE 500.
We are pleased to report that for the six-month period concluding June 30,
1998, the AMT Mid-Cap Growth Portfolio's total return nearly doubled the gain of
its benchmark, the Standard & Poor's MidCap 400/BARRA Growth Index. The
Portfolio's return also materially exceeded the gains of the leading large-cap
stock indices -- quite an accomplishment considering that large-cap stocks
continued to outpace mid-cap stocks by a substantial margin.
In the first half of 1998, value retailers Staples and TJX Companies
performed quite well as the strong domestic economy and high consumer confidence
helped propel earnings. Technology holdings like Citrix Systems, Applied Micro
Circuits, BMC Software and J.D. Edwards & Co. also contributed to returns. We
believe our success in the technology group was largely the result of our
decision last summer to eliminate commodity-oriented technology stocks whose
earnings might be vulnerable to Asian economic weakness and to focus instead on
productivity-enhancing tech companies serving niche markets. Media holdings
including billboard advertiser Outdoor Systems and radio broadcaster Chancellor
Media were buoyed by strong earnings gains and continued consolidation in their
respective industries.
Over the last six months, we were over weighted in most of the right industry
groups and under-weighted in most of the market's trouble spots. However, we
believe our stock picking discipline deserves more credit for the portfolio's
success than our industry group allocation. For example, as we said earlier, our
technology holdings performed very well despite mixed results for the group as a
whole. Even our limited holdings in poor performing industry groups like capital
goods and energy did well on a relative basis. We believe that over time, stock
selection will contribute 80-90% of portfolio returns. We hope to be rewarded by
portfolio holdings posting consistently positive earnings surprises. Our primary
disappointments will likely come from what we expect to be a much smaller
percentage of portfolio companies recording unanticipated earnings shortfalls.
We had only a few such unpleasant surprises during this reporting period. If we
can maintain a good batting average, we believe we can continue to generate
superior returns over the long term.
Despite the Portfolio's excellent performance relative to the large-cap stock
indices over this six-month reporting period, as has been the case for several
years, large-cap stocks continued to provide the most generous returns. Namely,
in the first half of 1998, the S&P "500" posted a total return of 17.61%* versus
the S&P MidCap 400/BARRA Growth Index's 11.96%* gain. Historically, during the
fifty-one year period from 1926 through 1997, mid-cap stocks outperformed
large-cap stocks on an average annualized basis. And, they did so without
significantly greater volatility. We think the primary reason is that over this
extended period, many medium-sized companies have been able to grow earnings
faster than their larger, more mature counterparts. While there can be no
assurance that this pattern will continue, we believe mid-cap companies still
have materially better long-term earnings growth potential and that over time,
superior earnings growth will be rewarded.
What's behind investors' recent preference for the big companies? We suspect
the popularity of S&P "500" indexing is partially responsible and most recently,
the flight of international money out of Asia and into large, well known U.S.
companies has provided an even stronger tailwind for the big-caps. Is this
likely to continue? We don't know. Last summer, we thought mid-cap stocks were
poised to begin closing the performance gap. Ironically, when Asian economies
started to unravel, smaller companies largely serving domestic markets and
therefore, less vulnerable
A-2
<PAGE>
to Asian economic weakness, were hit the hardest. Late in second-quarter 1998,
mid-cap stocks regained some momentum relative to large-caps, perhaps signaling
a turn in investor perception and better relative performance in the years
ahead.
What if we are wrong and investors remain enamored of large-cap stocks at the
expense of mid-caps? We hope our stock picking will continue to help us excel
relative to our mid-cap stock benchmark and compete effectively with the
large-cap indices. In any case, we are comforted knowing we own what we believe
to be terrific mid-cap growth companies at very reasonable relative valuations.
Recently, we compared the price/earnings ratios and earnings growth rates of the
large-cap market favorites and our portfolio holdings in the same industry
groups. With only a few exceptions, our holdings had comparable or lower P/Es
and materially higher projected earnings growth rates. So, if it is earnings
rather than investor perception that drive stock prices over the long term, we
believe the AMT Mid-Cap Growth Portfolio is well positioned to reward
shareholders.
Sincerely,
[SIG] [SIG]
Jennifer Silver and Brooke Cobb
PORTFOLIO CO-MANAGERS
*The S&P "500" Index is an unmanaged index generally considered to be
representative of stock market activity. The S&P MidCap 400/BARRA Growth Index
is a benchmark for mid-cap growth stock performance. It is constructed of
companies in the S&P MidCap 400 Index, which is a market-value weighted index
for mid-cap stock price movement, with higher price-to-book ratios than the
companies in its value index counterpart. Please note that indices do not take
into account any fees and expenses of investing in the individual securities
that they track, and that individuals cannot invest directly in any index. Data
about the performance of these indices are prepared or obtained by
Neuberger&Berman Management Inc.-Registered Trademark- and include reinvestment
of dividends and capital gain distributions. The portfolio invests in many
securities not included in this 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.
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-3
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
<TABLE>
<CAPTION>
June 30,
1998
(UNAUDITED)
-------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 14,926,395
Receivable for Trust shares sold 226,446
Deferred organization costs (Note A) 9,076
Receivable from administrator -- net (Note B) 6,310
-------------
15,168,227
-------------
LIABILITIES
Accrued expenses 19,615
Payable for Trust shares redeemed 135
-------------
19,750
-------------
NET ASSETS at value $ 15,148,477
-------------
NET ASSETS consist of:
Par value $ 1,032
Paid-in capital in excess of par value 13,537,192
Accumulated undistributed net investment loss (7,494)
Accumulated net realized gains on investment 402,837
Net unrealized appreciation in value of investment 1,214,910
-------------
NET ASSETS at value $ 15,148,477
-------------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 1,031,755
-------------
NET ASSET VALUE, offering and redemption price per share $14.68
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-1
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1998
(UNAUDITED)
-----------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 26,370
-----------
Expenses:
Administration fee (Note B) 9,519
Shareholder reports 12,330
Custodian fees 4,960
Amortization of deferred organization and initial
offering expenses (Note A) 972
Trustees' fees and expenses 132
Auditing fees 57
Registration and filing fees 29
Miscellaneous 263
Expenses from Series (Notes A & B) 37,917
-----------
Total expenses 66,179
Expenses reimbursed by administrator and reduced by
custodian fee expense offset arrangement (Note B) (34,450)
-----------
Total net expenses 31,729
-----------
Net investment loss (5,359)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM SERIES
(NOTE A)
Net realized gain on investment securities 404,058
Change in net unrealized appreciation of investment
securities 1,142,505
-----------
Net gain on investments from Series (Note A) 1,546,563
-----------
Net increase in net assets resulting from operations $1,541,204
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
<TABLE>
<CAPTION>
Period from
November 3, 1997
Six Months (Commencement
Ended of Operations)
June 30, to
1998 December 31,
(UNAUDITED) 1997
-------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (5,359) $ 669
Net realized gain on investments from Series (Note A) 404,058 18,405
Change in net unrealized appreciation of investments
from Series (Note A) 1,142,505 72,405
-------------------------------
Net increase in net assets resulting from operations 1,541,204 91,479
-------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (2,804) --
Net realized gain on investments (19,626) --
-------------------------------
Total distributions to shareholders (22,430) --
-------------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 12,083,654 1,607,670
Proceeds from reinvestment of dividends and
distributions 22,430 --
Payments for shares redeemed (175,528) (2)
-------------------------------
Net increase from Trust share transactions 11,930,556 1,607,668
-------------------------------
NET INCREASE IN NET ASSETS 13,449,330 1,699,147
NET ASSETS:
Beginning of period 1,699,147 --
-------------------------------
End of period $15,148,477 $1,699,147
-------------------------------
Accumulated undistributed net investment income (loss)
at end of period $ (7,494) $ 669
-------------------------------
NUMBER OF TRUST SHARES:
Sold 899,037 144,925
Issued on reinvestment of dividends and distributions 1,799 --
Redeemed (14,006) --
-------------------------------
Net increase in shares outstanding 886,830 144,925
-------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Mid-Cap Growth Portfolio (the "Fund") is a separate operating series
of Neuberger&Berman Advisers Management Trust-SM- (the "Trust"), a Delaware
business trust organized pursuant to a Trust Instrument dated May 23, 1994.
The Fund had no operations until November 3, 1997, other than matters
relating to its organization and registration as a series of the Trust. The
Trust is currently comprised of eight separate operating series (the
"Funds"). The Trust is registered as a diversified, open-end management
investment company under the Investment Company Act of 1940, as amended, and
its shares are registered under the Securities Act of 1933, as amended. The
trustees of the Trust may establish additional series or classes of shares
without the approval of shareholders.
The assets of each fund belong only to that fund, and the liabilities of
each fund are borne solely by that fund and no other.
The Fund seeks to achieve its investment objective by investing all of its
net investable assets in AMT Mid-Cap Growth Investments (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)
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
5) ORGANIZATION EXPENSES: Expenses incurred by the Fund in connection with its
organization are being amortized by the Fund on a straight-line basis over a
five-year period. At June 30, 1998, the unamortized balance of such expenses
amounted to $9,076.
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 0.30% 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. 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. For the six months ended June
30, 1998, such excess expenses amounted to $34,318.
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 $132.
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 $11,865,621 and $48,056,
respectively.
B-5
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
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-6
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Mid-Cap Growth 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 Ended Period from
June 30, November 3, 1997(2)
1998 to December 31,
(UNAUDITED) 1997
----------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $11.72 $10.00
----------------------------------------
Income From Investment Operations
Net Investment Income (Loss) (.01) .01
Net Gains or Losses on Securities (both realized and
unrealized) 3.05 1.71
----------------------------------------
Total From Investment Operations 3.04 1.72
----------------------------------------
Less Distributions
Dividends (from net investment income) (.01) --
Distributions (from net capital gains) (.07) --
----------------------------------------
Total Distributions (.08) --
----------------------------------------
Net Asset Value, End of Period $14.68 $11.72
----------------------------------------
Total Return(3)(4) +26.06% +17.20%
----------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 15.1 $ 1.7
----------------------------------------
Ratio of Gross Expenses to Average Net Assets(5)(6) 1.00% 1.05%
----------------------------------------
Ratio of Net Expenses to Average Net Assets(6)(7) 1.00% 1.00%
----------------------------------------
Ratio of Net Investment Income (Loss) to Average Net
Assets(6)(7) (.17%) .83%
----------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-7
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Mid-Cap 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 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 (loss) to
average daily net assets would have been higher and lower, respectively.
B-8
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- -----------
<C> <S> <C>
COMMON STOCKS (84.8%)
BASIC MATERIALS (0.3%)
1,200 Cytec Industries $ 53,100
-----------
CAPITAL GOODS (5.6%)
3,800 Eastern Environmental Services 129,200
11,600 HON INDUSTRIES 394,400
5,700 Mettler-Toledo International 114,356
4,000 USA Waste Services 197,500
-----------
835,456
-----------
COMMUNICATIONS (5.6%)
4,200 ICG Communications 153,563
3,400 Intermedia Communications 142,588
5,600 RSL Communications 168,000
9,000 SmarTalk TeleServices 131,062
10,000 USWeb Corp. 236,875
-----------
832,088
-----------
CONSUMER CYCLICALS (20.1%)
3,500 Abercrombie & Fitch 154,000
12,800 Avis Rent A Car 316,800
6,700 General Nutrition 208,538
5,300 Hayes Lemmerz International 210,675
11,200 Linens 'n Things 342,300
7,450 Outdoor Systems 208,600
17,500 PETsMART, Inc. 175,000
2,550 Promus Hotel 98,175
12,000 Restoration Hardware 301,500
2,900 Robert Half International 162,037
4,800 StaffMark, Inc. 175,800
9,500 Staples, Inc. 274,906
5,100 Sylvan Learning Systems 167,025
8,500 TJX Cos. 205,063
-----------
3,000,419
-----------
<CAPTION>
Number Market
of Shares Value(1)
- --------- -----------
<C> <S> <C>
CONSUMER STAPLES (11.2%)
5,300 American Italian Pasta $ 197,425
13,300 Brinker International 256,025
5,800 Capstar Broadcasting 145,725
7,700 Chancellor Media 382,353
4,945 CKE Restaurants 203,981
2,300 Estee Lauder 160,281
3,900 Suiza Foods 232,781
2,600 Valassis Communications 100,263
-----------
1,678,834
-----------
ENERGY (1.6%)
4,100 BJ Services 119,156
4,900 Noble Drilling 117,906
-----------
237,062
-----------
FINANCIAL SERVICES (3.9%)
4,500 Finova Group 254,812
5,200 FIRSTPLUS Financial Group 187,200
3,700 GreenPoint Financial 139,213
-----------
581,225
-----------
HEALTH CARE (9.3%)
8,500 Alternative Living Services 229,500
5,200 Biogen, Inc. 254,800
4,900 Elan Corp. ADR 315,131
3,100 Quintiles Transnational 152,481
1,800 Sofamor Danek Group 155,813
1,300 STERIS Corp. 82,672
4,100 Watson Pharmaceuticals 191,419
-----------
1,381,816
-----------
TECHNOLOGY (22.4%)
3,800 Advanced Fibre Communications 152,237
3,800 Analog Devices 93,338
5,500 Applied Micro Circuits 142,313
1,500 BMC Software 77,906
</TABLE>
B-9
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- -----------
<C> <S> <C>
2,200 Cambridge Technology Partners $ 120,175
6,100 CBT Group ADR 326,350
3,850 CIENA Corp. 268,056
5,300 Citrix Systems 362,387
700 Excite, Inc. 65,450
9,700 J.D. Edwards 416,494
4,100 Network Appliance 159,644
8,000 Network Associates 383,000
7,800 Sanmina Corp. 338,325
6,100 Staff Leasing 179,950
5,300 Sterling Commerce 257,050
-----------
3,342,675
-----------
TRANSPORTATION (2.4%)
4,600 Southwest Airlines 136,275
2,900 US Airways Group 229,825
-----------
366,100
-----------
UTILITIES (2.4%)
6,700 AES Corp. 352,169
-----------
TOTAL COMMON STOCKS (COST
$11,446,034) 12,660,944
-----------
<CAPTION>
Principal Market
Amount Value(1)
- --------- -----------
<C> <S> <C>
U.S. TREASURY SECURITIES
(15.6%)
$2,345,000 U.S. Treasury Bills, 4.72% -
4.92%, due 7/9/98 - 8/20/98
(COST $2,333,420) $ 2,333,420(2)
-----------
SHORT-TERM INVESTMENTS (2.2%)
321,760 N&B Securities Lending Quality
Fund, LLC (COST $321,760) 321,760(2)
-----------
TOTAL INVESTMENTS (102.6%)
(COST $14,101,214) 15,316,124(3)
Liabilities, less cash,
receivables and other assets
[(2.6%)] (389,728)
-----------
TOTAL NET ASSETS (100.0%) $14,926,396
-----------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-10
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
1) Investment securities of the Series are valued at the latest sales price;
securities for which no sales were reported, unless otherwise noted, are
valued at the mean between the closing bid and asked prices. The Series
values all other securities by a method that the trustees of Advisers
Managers Trust believe accurately reflects fair value. Foreign security
prices are furnished by independent quotation services expressed in local
currency values. Foreign security prices are translated from the local
currency into U.S. dollars using current exchange rates. Short-term debt
securities with less than 60 days until maturity may be valued at cost which,
when combined with interest earned, approximates market value.
2) At cost, which approximates market value.
3) At June 30, 1998, the cost of investments for Federal income tax purposes was
$14,101,214. Gross unrealized appreciation of investments was $1,557,491 and
gross unrealized depreciation of investments was $342,581, resulting in net
unrealized appreciation of $1,214,910, based on cost for Federal income tax
purposes.
SEE NOTES TO FINANCIAL STATEMENTS
B-11
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
<TABLE>
<CAPTION>
June 30,
1998
(UNAUDITED)
------------
<S> <C>
ASSETS
Investments in securities, at market value* (Note
A) -- see Schedule of Investments $ 15,316,124
Cash 8,557
Deferred organization costs (Note A) 11,887
Dividends and interest receivable 1,552
Other Assets 542
------------
15,338,662
------------
LIABILITIES
Payable for collateral on securities loaned (Note A) 321,760
Payable for securities purchased 77,427
Acrued expenses 7,586
Payable to investment manager (Note B) 5,493
------------
412,266
------------
NET ASSETS Applicable to Investors' Beneficial Interests $ 14,926,396
------------
NET ASSETS consist of:
Paid-in capital $ 13,711,486
Net unrealized appreciation in value of investment
securities 1,214,910
------------
NET ASSETS $ 14,926,396
------------
*Cost of investments $ 14,101,214
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-12
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1998
(UNAUDITED)
-----------
<S> <C>
INVESTMENT INCOME
Income:
Dividend income $ 2,698
Interest income 23,672
-----------
Total income 26,370
-----------
Expenses:
Investment management fee (Note B) 17,481
Custodian fees (Note B) 13,467
Accounting fees 4,959
Amortization of deferred organization and initial
offering expenses (Note A) 925
Auditing fees 206
Trustees' fees and expenses 133
Miscellaneous 746
-----------
Total expenses 37,917
Expenses reduced by custodian fee expense offset
arrangement (Note B) (132)
-----------
Total net expenses 37,785
-----------
Net investment loss (11,415)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment securities sold 404,058
Change in net unrealized appreciation of investment
securities 1,142,505
-----------
Net gain on investments 1,546,563
-----------
Net increase in net assets resulting from operations $1,535,148
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
<TABLE>
<CAPTION>
Period from
November 3, 1997
Six Months (Commencement
Ended of Operations)
June 30, to
1998 December 31,
(UNAUDITED) 1997
-------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss $ (11,415) $ (3,265)
Net realized gain on investments 404,058 18,405
Change in net unrealized appreciation of investments 1,142,505 72,405
-------------------------------
Net increase in net assets resulting from operations 1,535,148 87,545
-------------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Additions 11,865,621 1,486,140
Reductions (48,056) (2)
-------------------------------
Net increase in net assets resulting from transactions
in investors' beneficial interests 11,817,565 1,486,138
-------------------------------
NET INCREASE IN NET ASSETS 13,352,713 1,573,683
NET ASSETS:
Beginning of period 1,573,683 --
-------------------------------
End of period $ 14,926,396 $1,573,683
-------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Mid-Cap Growth Investments (the "Series") is a separate
operating series of Advisers Managers Trust ("Managers Trust"), a New York
common law trust organized as of May 24, 1994. The Series had no operations
until November 3, 1997, other than matters relating to its organization and
registration as a series of Managers Trust. Managers Trust is currently
comprised of eight separate operating series. Managers Trust is registered as
a diversified, open-end management investment company under the Investment
Company Act of 1940, as amended (the "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) 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.
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.
7) 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 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.
B-15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
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 $313,075 and $321,760,
respectively.
8) 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 $132.
NOTE C -- SECURITIES TRANSACTIONS:
During the six months ended June 30, 1998, there were purchase and sale
transactions (excluding short-term securities) of $13,262,363 and $3,711,834,
respectively.
During the six months ended June 30, 1998, brokerage commissions on
securities transactions amounted to $13,218, of which Neuberger received $6,083,
and other brokers received $7,135.
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 $354.
NOTE D -- COMBINED LINE OF CREDIT:
Effective June 1, 1998, the Series was a holder of an unsecured $100,000,000
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 0.75% per annum. A
facility fee of 0.07%
B-16
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
per annum of the available line of credit is charged, 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 participants at the time the fee is due and payable. The fee
is paid quarterly in arrears. 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
$100,000,000 at any particular time. The Series had no loans outstanding
pursuant to this line of credit at June 30, 1998, nor had the Series utilized
this line of credit at anytime prior to that date.
NOTE E -- 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-17
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Mid-Cap Growth Investments
<TABLE>
<CAPTION>
Six Months
Ended Period from
June 30, November 3, 1997(1)
1998 to December 31,
(UNAUDITED) 1997
-----------------------------------
<S> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(2)(3) 1.19% 5.97%
-----------------------------------
Net Expenses(3) 1.19% 5.92%
-----------------------------------
Net Investment Loss(3) (.36%) (4.08%)
-----------------------------------
Portfolio Turnover Rate 60% 20%
-----------------------------------
Average Commission Rate Paid $0.0550 $0.0550
-----------------------------------
Net Assets, End of Period (in millions) $14.9 $1.6
-----------------------------------
</TABLE>
1) The date investment operations commenced.
2) The Series is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset arrangements.
3) Annualized.
B-18
