<PAGE>
LIQUID ASSET PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1997
NBAMT0181297
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
True to our security selection process over the last year, we focused on the
relatively higher yielding, high quality sectors of the market. In AMT Liquid
Asset Portfolio, we continue to be biased toward commercial paper (89.2% of the
portfolio) and bank debt (7.5%). The balance of the portfolio is comprised of
3.6% floating rate notes. The highest quality short-term commercial paper was
offered between 30 to 75 basis points higher than Treasury Bills in the latter
part of the year. In our view, this is not because of significantly greater
credit risk -- in this thriving economy, corporate and bank cash flows have been
very strong -- but rather due to supply and demand factors in the Treasury
market. The Federal deficit has come way down, and consequently, less short-term
debt is being issued. For example, $19 billion of one-year Treasuries was issued
in each of the two auctions in January 1997. At the October 1997 one year
Treasury auction, only $13 billion was issued. The weekly auctions of three- and
six-month Treasury Bills have declined from $25 billion in January 1997 to
around $15 billion in October. Shrinking supply combined with stable demand has
resulted in higher prices and lower yields for Treasuries. In our opinion this
made commercial paper and bank debt a much better relative value.
Sincerely,
[SIG] [SIG]
Theodore Giuliano and Josephine Mahaney
PORTFOLIO CO-MANAGERS
The composition, industries and holdings of the Portfolio are subject to change.
The Portfolio is invested in a wide array of securities and no single holding
makes up more than a small fraction of its total assets.
A-2
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
<TABLE>
<CAPTION>
December 31,
1997
------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $13,872,745
Receivable for Trust shares sold 14,673
------------
13,887,418
------------
LIABILITIES
Payable for Trust shares redeemed 376,061
Dividends payable 55,329
Accrued expenses 11,427
Payable to administrator -- net (Note B) 4,160
------------
446,977
------------
NET ASSETS at value $13,440,441
------------
NET ASSETS consist of:
Par value $ 13,442
Paid-in capital in excess of par value 13,428,514
Accumulated net realized losses on investment (1,515)
------------
NET ASSETS at value $13,440,441
------------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 13,441,956
------------
NET ASSET VALUE, offering and redemption price per share $1.00
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-1
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1997
------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $792,107
------------
Expenses:
Administration fee (Note B) 56,391
Shareholder reports 10,937
Custodian fees 10,000
Legal fees 841
Trustees' fees and expenses 657
Auditing fees 131
Miscellaneous 756
Expenses from Series (Notes A & B) 78,024
------------
Total expenses 157,737
Expenses reimbursed by administrator and reduced by custodian
fee expense offset arrangement (Note B) (16,071)
------------
Total net expenses 141,666
------------
Net investment income 650,441
------------
REALIZED LOSS ON INVESTMENTS FROM SERIES (NOTE A)
Net realized loss on investment securities (503)
------------
Net increase in net assets resulting from operations $649,938
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
<TABLE>
<CAPTION>
Year Ended
December 31,
1997 1996
------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 650,441 $ 673,957
Net realized gain (loss) on investments from Series (Note A) (503) 200
------------------------
Net increase in net assets resulting from operations 649,938 674,157
------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (650,441) (673,957)
------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 14,043,637 2,327,316
Proceeds from reinvestment of dividends 646,379 752,967
Payments for shares redeemed (14,713,286) (21,495,723)
------------------------
Net decrease from Trust share transactions (23,270) (18,415,440)
------------------------
NET DECREASE IN NET ASSETS (23,773) (18,415,240)
NET ASSETS:
Beginning of year 13,464,214 31,879,454
------------------------
End of year $13,440,441 $13,464,214
------------------------
NUMBER OF TRUST SHARES:
Sold 14,043,637 2,327,316
Issued on reinvestment of dividends 646,379 752,967
Redeemed (14,713,286) (21,495,723)
------------------------
Net decrease in shares outstanding (23,270) (18,415,440)
------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Liquid Asset Portfolio (the "Fund") is a separate operating series
of Neuberger&Berman Advisers Management Trust (the "Trust"), a Delaware
business trust organized pursuant to a Trust Instrument dated May 23, 1994.
The Trust is currently comprised of eight separate operating series (the
"Funds"). The Trust is registered as a diversified, open-end management
investment company under the Investment Company Act of 1940, as amended, and
its shares are registered under the Securities Act of 1933, as amended. The
trustees of the Trust may establish additional series or classes of shares
without the approval of shareholders.
The assets of each fund belong only to that fund, and the liabilities of
each fund are borne solely by that fund and no other.
The Fund seeks to achieve its investment objective by investing all of its
net investable assets in AMT Liquid Asset 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.
It is the policy of the Fund to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, valuation, and
dividend and distribution policies, which conform to general industry
practice, to enable it to do so. However, there is no assurance the Fund will
be able to maintain a stable net asset value per share.
2) PORTFOLIO VALUATION: The Fund records its investment in the Series at value.
Investment securities held by the Series are valued by Advisers Managers
Trust as indicated in the notes following the Series' Schedule of
Investments.
3) FEDERAL INCOME TAXES: The Fund and the other series of the Trust are treated
as separate entities for Federal income tax purposes. It is the policy of the
Fund to continue to qualify as a regulated investment company by complying
with the provisions available to certain investment companies, as defined in
applicable sections of the Internal Revenue Code, and to make distributions
of investment company taxable income and net capital gains (after reduction
for any amounts available for Federal income tax purposes as capital loss
carryforwards) sufficient to relieve it from all, or substantially all,
Federal income taxes. Accordingly, the Fund paid no Federal income taxes and
no provision for Federal income taxes was required.
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net of
Series expenses, daily on its investment in the Series. It is the policy of
the Fund to declare dividends from net investment income on each business
day; such dividends are paid and reinvested monthly. Distributions from net
realized capital gains, if any, are normally distributed in February. To the
extent the Fund's net realized capital gains, if any, can be offset by
capital loss carryforwards ($1,012 and $496, expiring in 2002 and 2005,
respectively, determined as of December 31, 1997), 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
B-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
in the recognition or classification of income between the financial
statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains.
5) EXPENSE ALLOCATION: Expenses directly attributable to a fund are charged to
that fund. Expenses not directly attributed to a fund are allocated, on the
basis of relative net assets, to each of the funds of the Trust.
6) OTHER: All net investment income and realized 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") dated as of May 1, 1995. Pursuant to
this Agreement the Fund pays N&B Management an administration fee at the annual
rate of .40% of the Fund's average daily net assets. The Fund indirectly pays
for investment management services through its investment in the Series (see
Note B of Notes to Financial Statements of the Series).
Effective May 1, 1995, the trustees of the Trust adopted a non-fee
distribution plan for each series of the Trust.
N&B Management has voluntarily undertaken to limit the Fund's expenses by
reimbursing the Fund for its operating expenses and its pro rata share of its
Series' operating expenses (including the fees payable to N&B Management but
excluding interest, taxes, brokerage commissions, extraordinary expenses, and
transaction costs) which exceed, in the aggregate, 1% per annum of the Fund's
average daily net assets. This undertaking is subject to termination by N&B
Management upon at least 60 days' prior written notice to the Fund. For the year
ended December 31, 1997, such excess expenses amounted to $15,867.
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 $204.
NOTE C -- INVESTMENT TRANSACTIONS:
During the year ended December 31, 1997, additions and reductions in the
Fund's investment in its Series amounted to $13,060,386 and $13,453,486,
respectively.
B-5
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
The following table includes selected data for a share outstanding throughout
each year and other performance information derived from the Financial
Statements. It should be read in conjunction with its Series' Financial
Statements and notes thereto.
<TABLE>
<CAPTION>
Year Ended December 31,
1997(1) 1996(1) 1995(1) 1994 1993 1992 1991 1990 1989 1988
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $.9999 $1.0000 $ .9997 $1.0009 $1.0002 $1.0001 $ .9999 $ .9998 $ .9998 $1.0000
---------------------------------------------------------------------------------------------
Income From Investment Operations
Net Investment Income .0461 .0443 .0493 .0328 .0233 .0320 .0547 .0730 .0826 .0648
Net Gains or Losses on
Securities -- (.0001)(2) .0003 -- .0014 .0002 .0002 .0001 -- (.0002)
---------------------------------------------------------------------------------------------
Total From Investment
Operations .0461 .0442 .0496 .0328 .0247 .0322 .0549 .0731 .0826 .0646
---------------------------------------------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (.0461) (.0443) (.0493) (.0328) (.0233) (.0320) (.0547) (.0730) (.0826) (.0648)
Distributions (from net capital
gains) -- -- -- (.0012) (.0007) (.0001) -- -- -- --
---------------------------------------------------------------------------------------------
Total Distributions (.0461) (.0443) (.0493) (.0340) (.0240) (.0321) (.0547) (.0730) (.0826) (.0648)
---------------------------------------------------------------------------------------------
Net Asset Value, End of Year $.9999 $ .9999 $1.0000 $ .9997 $1.0009 $1.0002 $1.0001 $ .9999 $ .9998 $ .9998
---------------------------------------------------------------------------------------------
Total Return(3) +4.71% +4.52% +5.04% +3.46% +2.43% +3.25% +5.61% +7.55% +8.58% +6.68%
---------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Year (in
millions) $ 13.4 $ 13.5 $ 31.9 $ 5.3 $ 6.8 $ 25.4 $ 21.5 $ 21.5 $ 11.5 $ 9.3
---------------------------------------------------------------------------------------------
Ratio of Gross Expenses to
Average Net Assets(4) 1.01% 1.01% 1.02% -- -- -- -- -- -- --
---------------------------------------------------------------------------------------------
Ratio of Net Expenses to Average
Net Assets(5) 1.00% 1.00% 1.01% 1.02% .88% .72% .74% .88% 1.00% 1.00%
---------------------------------------------------------------------------------------------
Ratio of Net Investment Income
to Average Net Assets(5) 4.61% 4.44% 4.90% 3.28% 2.34% 3.19% 5.47% 7.30% 8.28% 6.52%
---------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-6
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
1) 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.
2) The amounts shown at this caption for a share outstanding throughout the year
may not accord with the change in aggregate gains and losses in securities
for the year because of the timing of sales and repurchases of Fund shares.
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 figures
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 all fiscal periods shown.
4) For fiscal periods ending after September 1, 1995, the Fund is required to
calculate an expense ratio without taking into consideration any expense
reductions related to expense offset arrangements.
5) After reimbursement of expenses by N&B Management as described in Note B of
Notes to Financial Statements. Had N&B Management not undertaken such action
the annualized ratios of net expenses and net investment income to average
daily net assets would have been:
<TABLE>
<CAPTION>
Year Ended December 31,
1997 1996 1995 1994 1989 1988
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Expenses 1.12% 1.21% 1.25% 1.03% 1.03% 1.25%
-------------------------------------------------------------
Net Investment Income 4.49% 4.23% 4.66% 3.27% 8.25% 6.27%
-------------------------------------------------------------
</TABLE>
There was no reduction of expenses for the years ended December 31, 1990
through and including 1993.
B-7
<PAGE>
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Trustees of
Neuberger&Berman Advisers Management Trust and
Shareholders of Liquid Asset Portfolio
We have audited the accompanying statement of assets and liabilities of
Liquid Asset Portfolio, one of the series comprising Neuberger&Berman Advisers
Management Trust (the "Trust"), as of December 31, 1997, and the related
statement of operations for the year then ended, the statement of changes in net
assets for each of the two years in the period then ended, and the financial
highlights for each of the periods indicated therein. These financial statements
and financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Liquid
Asset Portfolio of Neuberger&Berman Advisers Management Trust at December 31,
1997, the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and the financial
highlights for each of the periods indicated therein, in conformity with
generally accepted accounting principles.
[SIGNATURE]
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 26, 1998
B-8
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
<TABLE>
<CAPTION>
Principal Rating(1) Market
Amount Moody's S&P Value(2)
- ----------- ------------- -------- ------------
<C> <S> <C> <C> <C>
ASSET-BACKED COMMERCIAL PAPER (8.6%)
$ 595,000 Enterprise Funding Corp., 5.58%, due 1/12/98 P-1 A-1+ $ 593,986
600,000 Corporate Asset Funding Co., Inc., 5.68% & 5.70%, due 2/3/98 & 3/10/98 P-1 A-1+ 595,208
------------
TOTAL ASSET-BACKED COMMERCIAL PAPER 1,189,194
------------
CORPORATE COMMERCIAL PAPER (80.3%)
600,000 Export Development Corp., 6.50%, due 1/2/98 P-1 A-1+ 599,892
379,000 UBS Finance, Inc., 6.50%, due 1/2/98 P-1 A-1+ 378,932
190,000 Elf Aquitaine Finance S.A., 6.20%, due 1/7/98 P-1 A-1+ 189,804
300,000 MetLife Funding, Inc., 5.59%, due 1/8/98 P-1 A-1+ 299,674
300,000 Toyota Motor Credit Corp., 5.76%, due 1/13/98 P-1 A-1+ 299,424
400,000 Eksportfinans ASA, 5.50%, due 1/20/98 P-1 A-1+ 398,839
500,000 Gannett Co., Inc., 5.49%, due 1/20/98 P-1 A-1 498,551
675,000 Minnesota Mining and Manufacturing Co., 5.53%, due 1/21/98 P-1 A-1+ 672,926
600,000 Hitachi America, Ltd., 5.54%, due 1/23/98 P-1 A-1+ 597,969
500,000 Ford Credit Europe PLC, 5.50%, due 1/26/98 P-1 A-1 498,090
187,000 Interstate Power Co., 5.77%, due 1/26/98 P-1 A-1 186,251
300,000 Merrill Lynch & Co., Inc., 5.56%, due 2/2/98 P-1 A-1+ 298,517
800,000 American Express Credit Corp., 5.49%, due 2/18/98 P-1 A-1 794,144
600,000 SBC Communications Inc., 5.47%, due 2/19/98 P-1 A-1+ 595,533
600,000 Cargill, Inc., 5.65%, due 3/2/98 P-1 A-1+ 594,350
300,000 IBM Credit Corp., 5.55%, due 3/9/98 P-1 A-1 296,901
200,000 Australian Wheat Board, 5.70%, due 3/10/98 P-1 A-1+ 197,847
400,000 Goldman Sachs Group, L.P., 5.72%, due 3/13/98 P-1 A-1+ 395,487
500,000 Daimler-Benz North America Corp., 5.62%, due 3/16/98 P-1 A-1 494,224
400,000 Kingdom of Sweden, 5.52%, due 3/16/98 P-1 A-1+ 395,461
400,000 Electricite de France, 5.53%, due 3/23/98 P-1 A-1+ 395,023
700,000 Prudential Funding Corp., 5.50% & 5.53%, due 3/17/98 & 5/1/98 P-1 A-1 689,887
300,000 du Pont (E.I.) de Nemours & Co., 5.51%, due 5/6/98 P-1 A-1+ 294,260
500,000 Caisse d'Amortissement de la Dette Sociale, 5.53% & 5.61%, due 3/9/98
& 5/26/98 P-1 A-1+ 492,393
600,000 General Electric Capital Corp., 5.62%, due 6/3/98 P-1 A-1+ 585,669
------------
TOTAL CORPORATE COMMERCIAL PAPER 11,140,048
------------
CERTIFICATES OF DEPOSIT (3.6%)
500,000 Royal Bank of Canada, Yankee C.D., 5.67%, due 2/11/98 P-1 A-1+ 499,895
------------
</TABLE>
B-9
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
<TABLE>
<CAPTION>
Principal Rating(1) Market
Amount Moody's S&P Value(2)
- ----------- ------------- -------- ------------
<C> <S> <C> <C> <C>
CORPORATE DEBT SECURITIES (7.2%)
$ 500,000 Morgan Stanley Group Inc., Senior Variable Rate Medium-Term Notes,
Ser. C, 5.825%, due 5/18/98 P-1 A-1 $ 500,000
500,000 Morgan Guaranty Trust Co., Bank Notes, 5.93%, due 8/31/98 P-1 A-1+ 500,308
------------
TOTAL CORPORATE DEBT SECURITIES 1,000,308
------------
TOTAL INVESTMENTS (99.7%) 13,829,445
Cash, receivables and other assets, less liabilities (0.3%) 43,301
------------
TOTAL NET ASSETS (100.0%) $ 13,872,746
------------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-10
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
1) Credit ratings are unaudited.
2) Investment securities of the Series are valued at amortized cost, which
approximates Federal income tax cost.
SEE NOTES TO FINANCIAL STATEMENTS
B-11
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
<TABLE>
<CAPTION>
December 31,
1997
------------
<S> <C>
ASSETS
Investments in securities, at value* (Note A) -- see Schedule of
Investments $13,829,445
Cash 3,512
Interest receivable 39,291
Deferred organization costs (Note A) 10,408
Prepaid expenses and other assets 279
------------
13,882,935
------------
LIABILITIES
Accrued expenses 7,246
Payable to investment manager (Note B) 2,943
------------
10,189
------------
NET ASSETS Applicable to Investors' Beneficial Interests $13,872,746
------------
NET ASSETS consist of:
Paid-in capital $13,872,746
------------
NET ASSETS $13,872,746
------------
*Cost of investments $13,829,445
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-12
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1997
------------
<S> <C>
INVESTMENT INCOME
Interest income $792,107
------------
Expenses:
Investment management fee (Note B) 35,361
Custodian fees (Note B) 26,221
Accounting fees 10,000
Amortization of deferred organization and initial offering
expenses (Note A) 4,465
Trustees' fees and expenses 677
Legal fees 517
Auditing fees 471
Insurance expense 260
Miscellaneous 52
------------
Total expenses 78,024
Expenses reduced by custodian fee expense offset arrangement
(Note B) (204)
------------
Total net expenses 77,820
------------
Net investment income 714,287
------------
REALIZED LOSS ON INVESTMENTS
Net realized loss on investment securities sold (503)
------------
Net increase in net assets resulting from operations $713,784
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
<TABLE>
<CAPTION>
Year Ended
December 31,
1997 1996
------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 714,287 $ 743,771
Net realized gain (loss) on investments (503) 200
------------------------
Net increase in net assets resulting from operations 713,784 743,971
------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Additions 13,060,386 2,011,699
Reductions (13,453,486) (21,419,993)
------------------------
Net decrease in net assets resulting from transactions in
investors' beneficial interests (393,100) (19,408,294)
------------------------
NET INCREASE (DECREASE) IN NET ASSETS 320,684 (18,664,323)
NET ASSETS:
Beginning of year 13,552,062 32,216,385
------------------------
End of year $13,872,746 $13,552,062
------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Liquid Asset Investments (the "Series") is a separate operating
series of Advisers Managers Trust ("Managers Trust"), a New York common law
trust organized as of May 24, 1994. Managers Trust is currently comprised of
eight separate operating series. Managers Trust is registered as a
diversified, open-end management investment company under the Investment
Company Act of 1940, as amended.
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
2) PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the Series' Schedule of Investments.
3) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Interest income, including accretion of
discount (adjusted for original issue discount, where applicable) and
amortization of premium, where applicable, is recorded on a constant basis to
maturity. 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 $10,408.
6) EXPENSE ALLOCATION: Expenses directly attributable to a series are charged to
that series. Expenses not directly attributed to a series are allocated, on
the basis of relative net assets, to each of the series of Managers Trust.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains Neuberger&Berman Management Incorporated ("N&B
Management") as its investment manager under a Management Agreement. For such
investment management services, the Series pays N&B Management a fee at the
annual rate of .25% of the first $500 million of the Series' average daily net
assets, .225% of the next $500 million, .20% of the next $500 million, .175% of
the next $500 million, and .15% of average daily net assets in excess of $2
billion.
All of the capital stock of N&B Management is owned by individuals who are
also principals of Neuberger&Berman, LLC ("Neuberger"), a member firm of The New
York Stock Exchange and sub-adviser to the Series. Neuberger is retained by N&B
Management to furnish it with investment recommendations and research
information without added cost to the Series. Several individuals who are
officers and/or trustees of Managers Trust are also principals of Neuberger
and/or officers and/or directors of N&B Management.
The Series has an expense offset arrangement in connection with its custodian
contract. The impact of this arrangement, reflected in the Statement of
Operations under the caption Custodian fees, was a reduction of $204.
B-15
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
<TABLE>
<CAPTION>
Period from
Year Ended May 1, 1995(1)
December 31, to December 31,
1997 1996 1995
-----------------------------
<S> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(2) .55% .54% .56%(3)
-----------------------------
Net Expenses .55% .54% .55%(3)
-----------------------------
Net Investment Income 5.05% 4.88% 5.31%(3)
-----------------------------
Net Assets, End of Year (in millions) $13.9 $13.6 $32.2
-----------------------------
</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
<PAGE>
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Trustees of
Advisers Managers Trust and
Owners of Beneficial Interest of AMT Liquid Asset Investments
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of AMT Liquid Asset Investments, one of
the series comprising Advisers Managers Trust ("Managers Trust"), as of December
31, 1997, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the periods indicated therein.
These financial statements and financial highlights are the responsibility of
Managers Trust's management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1997, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of AMT
Liquid Asset Investments of Advisers Managers Trust at December 31, 1997, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the periods indicated therein, in conformity with generally accepted
accounting principles.
[SIGNATURE]
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 26, 1998
B-17
