<PAGE>
GOVERNMENT INCOME PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1997
NBAMT0101297
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Government Income Portfolio
Neuberger&Berman was prepared for a rewarding fixed income market in 1997. A
powerful bull market drove rates below 6% across the yield curve and pleasantly
exceeded our positive expectations. A friendly Federal Reserve, combined with
powerful inflation data, propelled rates to four-year lows. Further, an
embarrassment of riches on the fiscal front found the Federal Government's
budget in the best shape in a generation, leading to the expectation of a
virtually balanced budget in 1998. This fiscal prosperity caused a sharp
reduction in Treasury issuance, placing further downward pressure on interest
rates.
Spring would witness the high water mark on treasury yields for 1997. With
the possibility of a budget surplus decreasing treasury issuances, increased
foreign holdings of U.S. treasuries and reduced inflation expectations, the
yield curve flattened and U.S treasuries outperformed all spread sectors in the
second half of the year. The strong treasury performance was aided in part by
the fourth quarter's Asian credit turmoil which brought the longbond
convincingly below the 6% level and produced one of the flattest yield curves in
three years.
Good sector and security decisions combined with well-timed movements of the
portfolio's duration helped to keep our returns competitive throughout the year.
Equally as important to delivering good returns was our decision to avoid
Southeast Asian investment grade credits that turned out to have junk bond
quality.
Consistent with our trend approach, we extended the maturity of the portfolio
as rates declined. This strategy successfully captured both the outright rally
in the treasury asset class and maximized returns generated from the overall
flattening of the yield curve. We continued our long maturity bias from June
until year-end and modified our mortgage holdings. We shifted our mortgage
exposure to lower coupon, prepayment protected securities which have a better
return profile in the prevailing lower interest rate environment. We maintained
our high credit quality approach by purchasing AAA rated or government
guaranteed securities.
Looking ahead to 1998, we feel the outlook has a positive tone in the near
term but believe interest rates could remain range bound. We will approach the
markets with the skepticism that our experience has shown to be prudent. Thus,
in a year that we look for bonds to perform well, we continue to manage assets
in the same style that has served us well in the past.
[SIGNATURE] [SIGNATURE]
Ted Giuliano and Michael Hanratty
PORTFOLIO CO-MANAGERS
A-1
<PAGE>
COMPARISON OF A $10,000 INVESTMENT
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Government Income Portfolio
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN(1) GOVERNMENT INCOME SALOMON BROTHERS
PORTFOLIO MORTGAGE INDEX(2)
<S> <C> <C>
1 YEAR +9.51% +9.27%
LIFE OF FUND +6.28% +8.34%
Salomon Brothers Government Income
Mortgage Index Portfolio
3/22/94 $10,000 $10,000
12/31/94 $10,069 $10,150
1995 $11,757 $11,344
1996 $12,389 $11,494
1997 $13,537 $12,587
</TABLE>
The inception date of Neuberger&Berman Advisers Management Trust Government
Income Portfolio-SM-(the "Fund") is 3/22/94.
Neuberger&Berman Management Inc.-Registered Trademark- has voluntarily
undertaken to reimburse the Fund for its operating expenses and its pro rata
share of AMT Government Income Investments' (the "Series") operating expenses
which, in the aggregate, exceed 1.0% per annum of the Fund's average daily net
assets. This arrangement can be terminated by Neuberger&Berman Management Inc.
upon 60 days' notice to the Fund. Absent such arrangement, the average annual
total returns would have been less.
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 Salomon Brothers Mortgage Index is an unmanaged total return index
consisting of all Agency pass-throughs, GNMA, Fannie Mae, and Freddie Mac
securities, 75-day, 30- and 15-year securities, and FHA and GNMA project loans.
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. 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
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
December 31,
1997
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 2,630,566
Receivable from administrator -- net (Note
B) 11,331
Deferred organization costs (Note A) 3,523
--------------
2,645,420
--------------
LIABILITIES
Accrued expenses 16,205
Payable for Trust shares redeemed 1,336
--------------
17,541
--------------
NET ASSETS at value $ 2,627,879
--------------
NET ASSETS consist of:
Par value $ 236
Paid-in capital in excess of par value 2,357,321
Accumulated undistributed net investment
income 182,498
Accumulated net realized gains on investment 17,649
Net unrealized appreciation in value of
investment 70,175
--------------
NET ASSETS at value $ 2,627,879
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 235,984
--------------
NET ASSET VALUE, offering and redemption price per
share $11.14
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1997
------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 219,942
------------
Expenses:
Administration fee (Note B) 13,455
Shareholder reports 17,101
Custodian fees 10,000
Legal fees 5,033
Amortization of deferred organization and
initial offering expenses (Note A) 2,884
Trustees' fees and expenses 151
Auditing fees 24
Miscellaneous 706
Expenses from Series (Notes A & B) 48,531
------------
Total expenses 97,885
Expenses reimbursed by administrator and
reduced by custodian fee expense offset
arrangement (Note B) (63,560)
------------
Total net expenses 34,325
------------
Net investment income 185,617
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM
SERIES (NOTE A)
Net realized gain on investment securities 32,748
Change in net unrealized appreciation
(depreciation) of investment securities 83,122
------------
Net gain on investments from Series (Note
A) 115,870
------------
Net increase in net assets resulting from
operations $ 301,487
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
<TABLE>
<CAPTION>
Year Ended
December 31,
1997 1996
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 185,617 $ 161,508
Net realized gain (loss) on
investments from Series (Note A) 32,748 (15,099)
Change in net unrealized
appreciation (depreciation) of
investments from Series (Note A) 83,122 (63,858)
-----------------------------
Net increase in net assets resulting
from operations 301,487 82,551
-----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (162,111) (84,129)
Net realized gain on investments -- (8,629)
-----------------------------
Total distributions to shareholders (162,111) (92,758)
-----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 794,042 1,829,330
Proceeds from reinvestment of
dividends and distributions 162,111 92,758
Payments for shares redeemed (1,919,385) (651,702)
-----------------------------
Net increase (decrease) from Trust
share transactions (963,232) 1,270,386
-----------------------------
NET INCREASE (DECREASE) IN NET ASSETS (823,856) 1,260,179
NET ASSETS:
Beginning of year 3,451,735 2,191,556
-----------------------------
End of year $ 2,627,879 $ 3,451,735
-----------------------------
Accumulated undistributed net
investment income at end of year $ 182,498 $ 158,992
-----------------------------
NUMBER OF TRUST SHARES:
Sold 76,453 176,971
Issued on reinvestment of dividends
and distributions 15,862 9,023
Redeemed (181,052) (61,852)
-----------------------------
Net increase (decrease) in shares
outstanding (88,737) 124,142
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Government Income Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Government Income 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 Government Income Investments, a series of
Advisers Managers Trust (the "Series") having the same investment objective
and policies as the Fund. The value of the Fund's investment in the Series
reflects the Fund's proportionate interest in the net assets of the Series
(100% at December 31, 1997). The performance of the Fund is directly affected
by the performance of the Series. The financial statements of the Series,
including the Schedule of Investments, are included elsewhere in this report
and should be read in conjunction with the Fund's financial statements.
2) PORTFOLIO VALUATION: The Fund records its investment in the Series at value.
Investment securities held by the Series are valued by Advisers Managers
Trust as indicated in the notes following the Series' Schedule of
Investments.
3) FEDERAL INCOME TAXES: The Fund and the other series of the Trust are treated
as separate entities for Federal income tax purposes. It is the policy of the
Fund to continue to qualify as a regulated investment company by complying
with the provisions available to certain investment companies, as defined in
applicable sections of the Internal Revenue Code, and to make distributions
of investment company taxable income and net capital gains (after reduction
for any amounts available for Federal income tax purposes as capital loss
carryforwards) sufficient to relieve it from all, or substantially all,
Federal income taxes. Accordingly, the Fund paid no Federal income taxes and
no provision for Federal income taxes was required.
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net of
Series expenses, daily on its investment in the Series. Income dividends and
distributions from net realized capital gains, if any, are normally
distributed in February. Income dividends and capital gain distributions to
shareholders are recorded on the ex-dividend date. To the extent the Fund's
net realized capital gains, if any, can be offset by capital loss
carryforwards, it is the policy of the Fund not to distribute such gains.
The Fund distinguishes between dividends on a tax basis and a financial
reporting basis and only distributions in excess of tax basis earnings and
profits are reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains.
B-5
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Government Income 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 $3,523.
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 Neuberger&Berman Management Incorporated ("N&B Management")
as its administrator under an Administration Agreement ("Agreement") dated as of
May 1, 1995. Pursuant to this Agreement the Fund pays N&B Management an
administration fee at the annual rate of .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 $62,481.
All of the capital stock of N&B Management is owned by individuals who are
also principals of Neuberger&Berman, LLC ("Neuberger"), a member firm of The New
York Stock Exchange and sub-adviser to the Series. Several individuals who are
officers and/or trustees of the Trust are also principals of Neuberger and/or
officers and/or directors of N&B Management.
The Series has an expense offset arrangement in connection with its custodian
contract. The impact of this arrangement, reflected in the Statement of
Operations under the caption Expenses from Series, was a reduction of $1,079.
NOTE C -- INVESTMENT TRANSACTIONS:
During the year ended December 31, 1997, additions and reductions in the
Fund's investment in its Series amounted to $1,086,368 and $2,205,071,
respectively.
B-6
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Government Income Portfolio
The following table includes selected data for a share outstanding throughout
each year and other performance information derived from the Financial
Statements. It should be read in conjunction with its Series' Financial
Statements and notes thereto.(1)
<TABLE>
<CAPTION>
Period from
March 22,
1994(3) to
Year Ended December 31, December 31,
1997(2) 1996(2) 1995(2) 1994
------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $10.63 $10.93 $10.15 $ 10.00
------------------------------------------------
Income From Investment Operations
Net Investment Income .53 .67 .70 .37
Net Gains or Losses on Securities (both
realized and unrealized) .44 (.54) .46 (.22)
------------------------------------------------
Total From Investment Operations .97 .13 1.16 .15
------------------------------------------------
Less Distributions
Dividends (from net investment income) (.46) (.39) (.38) --
Distributions (from net capital gains) -- (.04) -- --
------------------------------------------------
Total Distributions (.46) (.43) (.38) --
------------------------------------------------
Net Asset Value, End of Year $11.14 $10.63 $10.93 $ 10.15
------------------------------------------------
Total Return(4) +9.51% +1.32% +11.76% +1.50%(5)
------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $ 2.6 $ 3.5 $ 2.2 $ 1.0
------------------------------------------------
Ratio of Gross Expenses to Average Net
Assets(6) 1.05% 1.05% 1.08% --
------------------------------------------------
Ratio of Net Expenses to Average Net Assets(7) 1.02% 1.02% 1.05% 1.09%(8)
------------------------------------------------
Ratio of Net Investment Income to Average Net
Assets(7) 5.52% 5.59% 5.71% 4.78%(8)
------------------------------------------------
Portfolio Turnover Rate(9) -- -- 2% 3%
------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-7
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Government Income Portfolio
1) The per share amounts which are shown have been computed based on the average
number of shares outstanding during each fiscal period.
2) The per share amounts and ratios which are shown reflect income and expenses,
including the Fund's proportionate share of the Series' income and expenses.
3) The date investment operations commenced.
4) 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.
5) Not annualized.
6) 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.
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:
<TABLE>
<CAPTION>
Period from
March 22, 1994
Year Ended December 31, to December 31,
1997 1996 1995 1994
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Expenses 2.88% 2.95% 4.21% 2.57%
------------------------------------------------
Net Investment Income 3.66% 3.66% 2.55% 3.30%
------------------------------------------------
</TABLE>
8) Annualized.
9) The Fund transferred all of its investment securities into its Series on
April 28, 1995. After that date the Fund invested only in its Series, and
that Series, rather than the Fund, engaged in securities transactions.
Therefore, after that date the Fund had no portfolio turnover rate. Portfolio
turnover rates for periods ending after April 28, 1995, are included in the
Financial Highlights of AMT Government Income Investments, which appear
elsewhere in this report.
B-8
<PAGE>
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Trustees of
Neuberger&Berman Advisers Management Trust and
Shareholders of Government Income Portfolio
We have audited the accompanying statement of assets and liabilities of
Government Income 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
Government Income Portfolio of Neuberger&Berman Advisers Management Trust at
December 31, 1997, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and the financial highlights for each of the periods indicated therein, in
conformity with generally accepted accounting principles.
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 26, 1998
B-9
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
Principal Rating(1) Market
Amount Moody's S&P Value(2)
- --------- ----------- --------- ----------
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES
(34.2%)
$ 70,000 U.S. Treasury Notes, 6.375%,
due 5/15/99 TSY TSY $ 70,654
260,000 U.S. Treasury Notes, 6.375%,
due 8/15/02 TSY TSY 266,646
20,000 U.S. Treasury Notes, 6.50%,
due 10/15/06 TSY TSY 20,939
71,392 U.S. Treasury
Inflation-Indexed Notes,
3.375%, due 1/15/07 TSY TSY 69,518
15,000 U.S. Treasury Notes, 6.625%,
due 5/15/07 TSY TSY 15,874
80,000 U.S. Treasury Bonds, 7.625%,
due 2/15/25 TSY TSY 97,124
325,000 U.S. Treasury Bonds, 6.75%,
due 8/15/26 TSY TSY 357,906
----------
TOTAL U.S. TREASURY SECURITIES
(COST $844,285) 898,661
----------
U.S. GOVERNMENT AGENCY
SECURITIES (12.3%)
200,000 Student Loan Marketing
Association, Global Notes,
7.50%, due 3/8/00 AGY AGY 206,936
100,000 Federal Home Loan Bank, Bonds,
5.915%, due 12/19/02 AGY AGY 99,978
15,000 Fannie Mae, Medium-Term Notes,
Ser. B, 6.21%, due 11/7/07 AGY AGY 15,067
----------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES (COST $328,545) 321,981
----------
MORTGAGE-BACKED SECURITIES
(43.5%)
FANNIE MAE
21,481 Pass-Through Certificates,
6.00%, due 3/1/11 AGY AGY 21,167
71,553 Pass-Through Certificates,
6.50%, due 11/1/10 & 1/1/26 AGY AGY 71,242
131,754 Pass-Through Certificates,
7.50%, due 5/1/11 & 1/1/27 AGY AGY 134,882
304,997 Pass-Through Certificates,
7.00%, due 1/1/10-4/1/27 AGY AGY 307,459
FREDDIE MAC
85,647 Gold Mortgage Participation
Certificates, 7.00%, due
4/1/11 AGY AGY 86,937
93,915 Gold Mortgage Participation
Certificates, 7.50%, due
5/1/26 AGY AGY 96,159
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
81,754 Pass-Through Certificates,
7.50%, due 7/15/11 & 3/15/26 AGY AGY 83,979
346,500 Pass-Through Certificates,
6.50%, due 12/15/27 AGY AGY 342,928
----------
TOTAL MORTGAGE-BACKED
SECURITIES (COST $1,120,091) 1,144,753
----------
ASSET-BACKED SECURITIES (8.7%)
100,000 Capita Equipment Receivables
Trust, Ser. 1996-1, Class A-4,
6.28%, due 6/15/00 Aaa AAA 100,230
50,000 Ford Credit Auto Loan Master
Trust, Auto Loan Certificates,
Ser. 1996-1, 5.50%, due
2/15/03 Aaa AAA 49,396
75,000 Standard Credit Card Master
Trust I, Credit Card
Participation Certificates,
Ser. 1994-4, Class A, 8.25%,
due 11/7/03 Aaa AAA 80,250
----------
TOTAL ASSET-BACKED SECURITIES
(COST $232,175) 229,876
----------
TOTAL INVESTMENTS (98.7%)
(COST $2,525,096) 2,595,271(3)
Cash, receivables and other
assets, less liabilities
(1.3%) 35,296
----------
TOTAL NET ASSETS (100.0%) $2,630,567
----------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-10
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Government Income Investments
1) Credit ratings are unaudited.
2) Investment securities of the Series are valued daily by obtaining bid price
quotations from independent pricing services on selected securities available
in each service's data base. For all other securities requiring daily
quotations, bid prices are obtained from principal market makers in those
securities or, if quotations are not available, 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
investments with less than 60 days until maturity may be valued at cost
which, when combined with interest earned, approximates market value.
3) At December 31, 1997, the cost of investments for Federal income tax purposes
was $2,526,415. Gross unrealized appreciation of investments was $79,381 and
gross unrealized depreciation of investments was $10,525, resulting in net
unrealized appreciation of $68,856, 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 Government Income Investments
<TABLE>
<CAPTION>
December 31,
1997
--------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 2,595,271
Cash 2,258
Interest receivable 32,814
Deferred organization costs (Note A) 10,024
Prepaid expenses and other assets 79
--------------
2,640,446
--------------
LIABILITIES
Accrued expenses 9,098
Payable to investment manager (Note B) 781
--------------
9,879
--------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 2,630,567
--------------
NET ASSETS consist of:
Paid-in capital $ 2,560,392
Net unrealized appreciation in value of
investment securities 70,175
--------------
NET ASSETS $ 2,630,567
--------------
*Cost of investments $ 2,525,096
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-12
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1997
------------
<S> <C>
INVESTMENT INCOME
Interest income $ 219,942
------------
Expenses:
Investment management fee (Note B) 11,793
Custodian fees (Note B) 17,363
Accounting fees 10,000
Legal fees 4,713
Amortization of deferred organization and
initial offering expenses (Note A) 4,300
Trustees' fees and expenses 151
Auditing fees 88
Insurance expense 63
Miscellaneous 60
------------
Total expenses 48,531
Expenses reduced by custodian fee expense
offset arrangement (Note B) (1,079)
------------
Total net expenses 47,452
------------
Net investment income 172,490
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment securities
sold 32,748
Change in net unrealized appreciation
(depreciation) of investment securities 83,122
------------
Net gain on investments 115,870
------------
Net increase in net assets resulting from
operations $ 288,360
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income Investments
<TABLE>
<CAPTION>
Year Ended
December 31,
1997 1996
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 172,490 $ 152,237
Net realized gain (loss) on
investments 32,748 (15,099)
Change in net unrealized
appreciation (depreciation) of
investments 83,122 (63,858)
-----------------------------
Net increase in net assets resulting
from operations 288,360 73,280
-----------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 1,086,368 1,830,526
Reductions (2,205,071) (636,770)
-----------------------------
Net increase (decrease) in net
assets resulting from transactions in
investors' beneficial interests (1,118,703) 1,193,756
-----------------------------
NET INCREASE (DECREASE) IN NET ASSETS (830,343) 1,267,036
NET ASSETS:
Beginning of year 3,460,910 2,193,874
-----------------------------
End of year $ 2,630,567 $ 3,460,910
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Government Income Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Government Income 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 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 $10,024.
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 .35% of the first $500 million of the Series' average daily net
assets, .325% of the next $500 million, .30% of the next $500 million, .275% of
the next $500 million, and .25% 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 $1,079.
NOTE C -- SECURITIES TRANSACTIONS:
During the year ended December 31, 1997, there were purchase and sale
transactions (excluding short-term securities) of $4,658,095 and $5,316,428,
respectively.
B-15
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Government Income 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) 1.44% 1.37% 1.81%(3)
------------------------------------
Net Expenses 1.41% 1.34% 1.77%(3)
------------------------------------
Net Investment Income 5.12% 5.26% 4.78%(3)
------------------------------------
Portfolio Turnover Rate 152% 231% 64%
------------------------------------
Net Assets, End of Year (in millions) $2.6 $3.5 $2.2
------------------------------------
</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 Government Income Investments
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of AMT Government Income 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
Government Income Investments of Advisers Managers Trust at December 31, 1997,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the periods indicated therein, in conformity with
generally accepted accounting principles.
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 26, 1998
B-17
