<PAGE>
GUARDIAN PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1997
NBAAR3760198
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Guardian Portfolio
Since this is our first AMT Guardian Portfolio annual report, we thought it
would be worthwhile to review the investment process we employ in managing the
portfolio. The most salient feature of our investment technique is that we are,
first and foremost, value managers. This is the basis for everything we do.
The portfolio is constructed on a stock by stock basis. That is, we do not
begin with an overall macroeconomic view of the world and then select stocks
which fit that view. Over a period of many years, we have found that this is
simply not as rewarding a way to spend our time as the researching of individual
stocks.
In our stock selection process, we are valuation driven, which is to say that
the first thing we look at is a stock's P/E ratio. Virtually all the stocks we
buy have a P/E ratio which is lower than that of the overall stock market, but a
low P/E is only the starting point in our selection process. As one might
expect, more often than not we find that a "cheap" stock deserves to be; what we
are looking for are those stocks whose low valuation is, in our opinion, the
result of a misperception and therefore undeserved. As a result, we devote a
considerable amount of our research efforts looking at stocks and/or industries
which are out of favor with most investors.
An important distinction between us and other value managers arises out of
this. Namely, we would much rather achieve a low P/E ratio by looking at a good
industry that is currently out of favor and buying the best companies therein
rather than taking an industry that is in favor and buying the lowest P/E stocks
in that area. Utilizing this as our primary method of stock selection is why our
portfolio usually has a return on equity and an earnings growth rate that is
superior to those of the overall stock market while at the same time having a
lower P/E.
This approach has proven to be very rewarding over time, but it is one that
calls for patience and discipline. If exercised properly and consistently,
however, employing the discipline necessary to buy stocks which are suffering
from either disfavor or neglect is the way to buy above-average companies at
below-average valuations.
As this is written a number of cross currents prevail and have given a higher
than usual degree of volatility to the stock market. Concerns over Asia, a
"crisis" that is widely commented on but little understood, are a deterrent, but
at the same time the recent rally in the bond market has taken interest rates to
levels that are supportive of higher stock prices. These conflicting forces
combine to make the stock market unusually volatile.
We find that in such an environment it is best not to be euphoric on the up
days nor despondent on the down days. Focusing instead on the opportunities that
this volatile period presents us, we have exploited the fluctuations to create a
portfolio which sells at less than 14 times estimated 1998 earnings. This is a
discount of almost 30% to the overall market, but at the same time, according to
IEBS, the earnings are expected to increase some 25% in 1998.
Buying the stocks of good companies when they are inexpensive is what
Neuberger&Berman has done for years. In AMT Guardian we are continuing what has
been a long and successful tradition.
Sincerely,
[SIG] [SIG]
Kent Simons and Kevin Risen
PORTFOLIO CO-MANAGERS
The composition and holdings of the Portfolio are subject to change. The
Portfolio is invested in a wide array of stocks and no single holding makes up
more than a small fraction of its total assets.
A-1
<PAGE>
COMPARISON OF A $10,000 INVESTMENT
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Guardian Portfolio
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C> <C>
Aggregate Total Return (1)
Guardian Portfolio S&P "500" (2)
Life of Fund +5.20% +6.53%
Guardian Portfolio S&P "500"
11/3/97 $10,000 $10,000
12/31/97 $10,520 $10,653
</TABLE>
The inception date of Neuberger&Berman Advisers Management Trust Guardian
Portfolio-SM- (the "Fund") is 11/3/97.
1. "Total Return" includes reinvestment of all income dividends and capital gain
distributions. Results represent past performance and do not guarantee future
results. The value of an investment in the Fund and the return on the investment
both will fluctuate, and redemption proceeds may be higher or lower than an
investor's original cost.
2. The S&P "500" Index is an unmanaged index generally considered to be
representative of overall 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 this index are prepared or obtained by
Neuberger&Berman Management Inc.-Registered Trademark- and include reinvestment
of all dividends and capital gain distributions. The Series invests in many
securities not included in the above-described index.
Performance data are historical and include changes in share price and
reinvestment of dividends and capital gain distributions. Performance numbers
are net of all Fund operating expenses, but do not include any insurance charges
or other expenses imposed by your insurance company's variable annuity or
variable life insurance policy. If this performance information included the
effect of the insurance charges and other expenses, performance numbers would be
lower.
B-1
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Guardian Portfolio
<TABLE>
<CAPTION>
December 31,
1997
------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $563,685
Deferred organization costs (Note A) 12,576
Receivable from administrator -- net (Note B) 8,114
Receivable for Trust shares sold 4,979
------------
589,354
------------
LIABILITIES
Accrued organization costs (Note A) 12,978
Accrued expenses 9,056
------------
22,034
------------
NET ASSETS at value $567,320
------------
NET ASSETS consist of:
Par value $ 54
Paid-in capital in excess of par value 550,008
Accumulated undistributed net investment income 459
Accumulated net realized losses on investment (1,189)
Net unrealized appreciation in value of investment 17,988
------------
NET ASSETS at value $567,320
------------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 53,903
------------
NET ASSET VALUE, offering and redemption price per share $10.52
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Guardian Portfolio
<TABLE>
<CAPTION>
For the
Period from
November 3, 1997
(Commencement
of Operations) to
December 31,
1997
-----------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 926
-----------------
Expenses:
Administration fee (Note B) 140
Shareholder reports 6,884
Custodian fees 1,667
Legal fees 500
Amortization of deferred organization and initial offering
expenses (Note A) 402
Trustees' fees and expenses 3
Auditing fees 2
Expenses from Series (Notes A & B) 4,485
-----------------
Total expenses 14,083
Expenses reimbursed by administrator and reduced by custodian
fee expense offset arrangement (Note B) (13,616)
-----------------
Total net expenses 467
-----------------
Net investment income 459
-----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS FROM SERIES (NOTE
A)
Net realized loss on investment securities (1,189)
Net unrealized appreciation of investment securities 17,988
-----------------
Net gain on investments from Series (Note A) 16,799
-----------------
Net increase in net assets resulting from operations $ 17,258
-----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Guardian Portfolio
<TABLE>
<CAPTION>
Period from
November 3, 1997
(Commencement
of Operations)
to
December 31,
1997
----------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 459
Net realized loss on investments from Series (Note A) (1,189)
Net unrealized appreciation of investments from Series (Note A) 17,988
----------------
Net increase in net assets resulting from operations 17,258
----------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 550,096
Payments for shares redeemed (34)
----------------
Net increase from Trust share transactions 550,062
----------------
NET INCREASE IN NET ASSETS 567,320
NET ASSETS:
Beginning of period --
----------------
End of period $567,320
----------------
Accumulated undistributed net investment income at end of period $ 459
----------------
NUMBER OF TRUST SHARES:
Sold 53,906
Redeemed (3)
----------------
Net increase in shares outstanding 53,903
----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
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, a series of Advisers
Managers Trust (the "Series") having the same investment objective and
policies as the Fund. The value of the Fund's investment in the Series
reflects the Fund's proportionate interest in the net assets of the Series
(100% at December 31, 1997). The performance of the Fund is directly affected
by the performance of the Series. The financial statements of the Series,
including the Schedule of Investments, are included elsewhere in this report
and should be read in conjunction with the Fund's financial statements.
2) PORTFOLIO VALUATION: The Fund records its investment in the Series at value.
Investment securities held by the Series are valued by Advisers Managers
Trust as indicated in the notes following the Series' Schedule of
Investments.
3) FEDERAL INCOME TAXES: The Fund and the other series of the Trust are treated
as separate entities for Federal income tax purposes. It is the intention of
the Fund to qualify as a regulated investment company by complying with the
provisions available to certain investment companies, as defined in
applicable sections of the Internal Revenue Code, and to make distributions
of investment company taxable income and net capital gains (after reduction
for any amounts available for Federal income tax purposes as capital loss
carryforwards) sufficient to relieve it from all, or substantially all,
Federal income taxes. Accordingly, the Fund paid no Federal income taxes and
no provision for Federal income taxes was required.
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net of
Series expenses, daily on its investment in the Series. Income dividends and
distributions from net realized capital gains, if any, are normally
distributed in February. Income dividends and capital gain distributions to
shareholders are recorded on the ex-dividend date. To the extent the Fund's
net realized capital gains, if any, can be offset by capital loss
carryforwards, it is the policy of the Fund not to distribute such gains.
The Fund distinguishes between dividends on a tax basis and a financial
reporting basis and only distributions in excess of tax basis earnings and
profits are reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains.
B-5
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
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 December 31, 1997, the unamortized balance of such
expenses amounted to $12,576. The accrued organization costs are payable to
Neuberger&Berman Management Incorporated ("N&B Management"), the
administrator of the Fund.
6) EXPENSE ALLOCATION: Expenses directly attributable to a fund are charged to
that fund. Expenses not directly attributed to a fund are allocated, on the
basis of relative net assets, to each of the funds of the Trust.
7) OTHER: All net investment income and realized and unrealized capital gains
and losses of the Series are allocated pro rata among the Fund and any other
investors in the Series.
NOTE B -- ADMINISTRATION FEES, DISTRIBUTION ARRANGEMENTS, AND OTHER TRANSACTIONS
WITH AFFILIATES:
Fund shares are issued and redeemed in connection with investments in and
payments under certain variable annuity contracts and variable life insurance
policies issued through separate accounts of life insurance companies.
The Fund retains N&B Management as its administrator under an Administration
Agreement ("Agreement") dated as of May 1, 1995. Pursuant to this Agreement the
Fund pays N&B Management an administration fee at the annual rate of .30% of the
Fund's average daily net assets. The Fund indirectly pays for investment
management services through its investment in the Series (see Note B of Notes to
Financial Statements of the Series).
Effective May 1, 1995, the trustees of the Trust adopted a non-fee
distribution plan for each series of the Trust.
N&B Management has voluntarily undertaken to limit the Fund's expenses by
reimbursing the Fund for its operating expenses and its pro rata share of its
Series' operating expenses (including the fees payable to N&B Management, but
excluding interest, taxes, brokerage commissions, extraordinary expenses, and
transaction costs) which exceed, in the aggregate, 1% per annum of the Fund's
average daily net assets. This undertaking is subject to termination by N&B
Management upon at least 60 days' prior written notice to the Fund. For the
period ended December 31, 1997, such excess expenses amounted to $13,586.
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 $30.
NOTE C -- INVESTMENT TRANSACTIONS:
During the period ended December 31, 1997, additions and reductions in the
Fund's investment in its Series amounted to $550,449 and $34, respectively.
B-6
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Guardian Portfolio
The following table includes selected data for a share outstanding throughout
the period and other performance information derived from the Financial
Statements. The per share amounts and ratios which are shown reflect income and
expenses, including the Fund's proportionate share of the Series' income and
expenses. It should be read in conjunction with its Series' Financial Statements
and notes thereto.(1)
<TABLE>
<CAPTION>
Period from
November 3, 1997(2)
to December 31,
1997
-------------------
<S> <C>
Net Asset Value, Beginning of Period $10.00
-------------------
Income From Investment Operations
Net Investment Income .01
Net Gains or Losses on Securities (both realized
and unrealized) .51
-------------------
Total From Investment Operations .52
-------------------
Net Asset Value, End of Period $10.52
-------------------
Total Return(3)(4) +5.20%
-------------------
Ratios/Supplemental Data
Net Assets, End of Period (in thousands) $567.3
-------------------
Ratio of Gross Expenses to Average Net
Assets(5)(6)(7) 1.06%
-------------------
Ratio of Net Expenses to Average Net Assets(6)(7) 1.00%
-------------------
Ratio of Net Investment Income to Average Net
Assets(6)(7) .98%
-------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-7
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Guardian Portfolio
1) The per share amounts which are shown have been computed based on the average
number of shares outstanding during the fiscal period.
2) The date investment operations commenced.
3) Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during the fiscal
period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee future
results. Investment returns and principal may fluctuate and shares when
redeemed may be worth more or less than original cost. Total return would
have been lower if N&B Management had not reimbursed certain expenses. The
total return information shown does not reflect charges and other expenses
that apply to the separate account or the related insurance policies, and the
inclusion of these charges and other expenses would reduce the total return
figures for the fiscal period.
4) Not annualized.
5) The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset arrangements.
6) Annualized.
7) After reimbursement of expenses by N&B Management as described in Note B of
Notes to Financial Statements. Had N&B Management not undertaken such action
the annualized ratios of net expenses and net investment income to average
daily net assets would have been higher and lower, respectively.
B-8
<PAGE>
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Trustees of
Neuberger&Berman Advisers Management Trust and
Shareholders of Guardian Portfolio
We have audited the accompanying statement of assets and liabilities of
Guardian Portfolio, one of the series comprising Neuberger&Berman Advisers
Management Trust (the "Trust"), as of December 31, 1997, and the related
statement of operations, the statement of changes in net assets, and the
financial highlights for the period from November 3, 1997 (Commencement of
Operations) to December 31, 1997. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Guardian Portfolio of Neuberger&Berman Advisers Management Trust at December 31,
1997, the results of its operations, the changes in its net assets, and the
financial highlights for the period from November 3, 1997 (Commencement of
Operations) to December 31, 1997, in conformity with generally accepted
accounting principles.
[SIGNATURE]
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 26, 1998
B-9
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ----------- ---------
<C> <S> <C>
COMMON STOCKS (89.2%)
AGRICULTURE (3.1%)
600 AGCO Corp. $ 17,550
---------
AUTOMOTIVE (10.8%)
900 Cabot Corp. 24,863
250 Chrysler Corp. 8,797
250 General Motors 15,156
550 Mark IV Industries 12,031
---------
60,847
---------
BANKING (10.9%)
250 BankBoston Corp. 23,484
230 Chase Manhattan 25,185
100 CITICORP 12,644
---------
61,313
---------
CONSUMER GOODS & SERVICES (2.9%)
480 Cendant Corp. 16,500(2)
---------
ELECTRICAL & ELECTRONICS (2.7%)
500 Credence Systems 14,813(2)
---------
ELECTRONICS (5.6%)
500 Atmel Corp. 9,281(2)
700 Teradyne, Inc. 22,400(2)
---------
31,681
---------
FINANCIAL SERVICES (11.3%)
300 Ambac Financial Group 13,800
300 Countrywide Credit Industries 12,862
200 Merrill Lynch 14,588
200 Morgan Stanley, Dean Witter,
Discover 11,825
200 Travelers Group 10,775
---------
63,850
---------
HEALTH CARE (5.0%)
700 Foundation Health Systems 15,663(2)
300 Wellpoint Health Networks 12,675(2)
---------
28,338
---------
<CAPTION>
Number Market
of Shares Value(1)
- ----------- ---------
<C> <S> <C>
INSURANCE (5.0%)
400 Aetna Inc. $ 28,225
---------
RETAIL (7.4%)
200 Barnes & Noble 6,675(2)
600 Furniture Brands International 12,300(2)
1,100 Woolworth Corp. 22,413(2)
---------
41,388
---------
TECHNOLOGY (20.4%)
800 Applied Materials 24,100(2)
490 Compaq Computer 27,654
450 KLA-Tencor 17,381(2)
900 National Semiconductor 23,344(2)
500 Texas Instruments 22,500
---------
114,979
---------
TRANSPORTATION (4.1%)
90 Delta Air Lines 10,710
200 US Airways Group 12,500(2)
---------
23,210
---------
TOTAL COMMON STOCKS (COST
$484,706) 502,694
---------
<CAPTION>
Principal
Amount
- -----------
<C> <S> <C>
U.S. TREASURY SECURITIES
(14.1%)
$ 80,000 U.S. Treasury Bills, 4.87% &
5.24%, due 1/2/98 & 2/19/98
(COST $79,569) 79,569(3)
---------
TOTAL INVESTMENTS (103.3%)
(COST $564,275) 582,263(4)
Liabilities, less cash,
receivables and
other assets [(3.3%)] (18,577)
---------
TOTAL NET ASSETS (100.0%) $ 563,686
---------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-10
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
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) 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 $564,275. Gross unrealized appreciation of investments was $27,718 and
gross unrealized depreciation of investments was $9,730, resulting in net
unrealized appreciation of $17,988, 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 Guardian Investments
<TABLE>
<CAPTION>
December 31,
1997
------------
<S> <C>
ASSETS
Investments in securities, at market value* (Note A) -- see
Schedule of Investments $582,263
Cash 9,918
Deferred organization costs (Note A) 26,142
Receivable for securities sold 335
Dividends receivable 172
------------
618,830
------------
LIABILITIES
Accrued organization costs (Note A) 27,016
Payable for securities purchased 24,547
Accrued expenses 3,324
Payable to investment manager (Note B) 257
------------
55,144
------------
NET ASSETS Applicable to Investors' Beneficial Interests $563,686
------------
NET ASSETS consist of:
Paid-in capital $545,698
Net unrealized appreciation in value of investment securities 17,988
------------
NET ASSETS $563,686
------------
*Cost of investments $564,275
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-12
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
For the
Period from
November 3, 1997
(Commencement
of Operations)
to
December 31,
1997
----------------
<S> <C>
INVESTMENT INCOME
Income:
Dividend income $ 242
Interest income 684
----------------
Total income 926
----------------
Expenses:
Investment management fee (Note B) 257
Accounting fees 1,611
Custodian fees (Note B) 1,230
Amortization of deferred organization and initial offering
expenses (Note A) 874
Legal fees 500
Auditing fees 10
Trustees' fees and expenses 3
----------------
Total expenses 4,485
Expenses reduced by custodian fee expense offset arrangement
(Note B) (30)
----------------
Total net expenses 4,455
----------------
Net investment loss (3,529)
----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investment securities sold (1,189)
Net unrealized appreciation of investment securities 17,988
----------------
Net gain on investments 16,799
----------------
Net increase in net assets resulting from operations $13,270
----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
Period from
November 3, 1997
(Commencement
of Operations)
to
December 31,
1997
----------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss $ (3,529)
Net realized loss on investments (1,189)
Net unrealized appreciation of investments 17,988
----------------
Net increase in net assets resulting from operations 13,270
----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Additions 550,450
Reductions (34)
----------------
Net increase in net assets resulting from transactions in
investors' beneficial interests 550,416
----------------
NET INCREASE IN NET ASSETS 563,686
NET ASSETS:
Beginning of period --
----------------
End of period $563,686
----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
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 assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
2) PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the Series' Schedule of Investments.
3) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the Series
becomes aware of the dividends. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, including original issue discount, where
applicable, and accretion of discount on short-term investments, is recorded
on the accrual basis. Realized gains and losses from securities transactions
are recorded on the basis of identified cost.
4) FEDERAL INCOME TAXES: Managers Trust intends to comply with the requirements
of the Internal Revenue Code. Each series of Managers Trust also intends to
conduct its operations so that each of its investors will be able to qualify
as a regulated investment company. Each series will be treated as a
partnership for Federal income tax purposes and is therefore not subject to
Federal income tax.
5) ORGANIZATION EXPENSES: Expenses incurred by the Series in connection with its
organization are being amortized by the Series on a straight-line basis over
a five-year period. At December 31, 1997, the unamortized balance of such
expenses amounted to $26,142. The accrued organization costs are payable to
Neuberger&Berman Management Incorporated ("N&B Management"), the investment
manager of the Series.
6) EXPENSE ALLOCATION: Expenses directly attributable to a series are charged to
that series. Expenses not directly attributed to a series are allocated, on
the basis of relative net assets, to each of the series of Managers Trust.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains N&B Management as its investment manager under a
Management Agreement. For such investment management services, the Series pays
N&B Management a fee at the annual rate of .55% of the first $250 million of the
Series' average daily net assets, .525% of the next $250 million, .50% of the
next $250 million, .475% of the next $250 million, .45% of the next $500
million, and .425% of average daily net assets in excess of $1.5 billion.
All of the capital stock of N&B Management is owned by individuals who are
also principals of Neuberger&Berman, LLC ("Neuberger"), a member firm of The New
York Stock Exchange and sub-adviser to the Series. 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.
B-15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Guardian Investments
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 $30.
NOTE C -- SECURITIES TRANSACTIONS:
During the period ended December 31, 1997, there were purchase and sale
transactions (excluding short-term securities) of $514,899 and $28,992,
respectively.
During the period ended December 31, 1997, brokerage commissions on
securities transactions amounted to $634, of which Neuberger received $601, and
other brokers received $33.
B-16
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
Period from
November 3, 1997(1)
to December 31,
1997
-------------------
<S> <C>
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(2)(3) 9.59%
-------------------
Net Expenses(3) 9.53%
-------------------
Net Investment Loss(3) (7.55%)
-------------------
Portfolio Turnover Rate 12%
-------------------
Average Commission Rate Paid $0.0550
-------------------
Net Assets, End of Period (in thousands) $563.7
-------------------
</TABLE>
1) The date investment operations commenced.
2) The Series is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset arrangements.
3) Annualized.
B-17
<PAGE>
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Trustees of
Advisers Managers Trust and
Owners of Beneficial Interest of AMT Guardian Investments
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of AMT Guardian Investments, one of the
series comprising Advisers Managers Trust ("Managers Trust"), as of December 31,
1997, and the related statement of operations, the statement of changes in net
assets, and the financial highlights for the period from November 3, 1997
(Commencement of Operations) to December 31, 1997. These financial statements
and financial highlights are the responsibility of Managers Trust's management.
Our responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1997, by correspondence with the custodian
and brokers or other appropriate auditing procedures where replies from brokers
were not received. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of AMT
Guardian Investments of Advisers Managers Trust at December 31, 1997, the
results of its operations, the changes in its net assets and the financial
highlights for the period from November 3, 1997 (Commencement of Operations) to
December 31, 1997, in conformity with generally accepted accounting principles.
[SIGNATURE]
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 26, 1998
B-18
