<PAGE>
BALANCED PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1998
NBAMTSA30698
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Balanced Portfolio
THE AMT BALANCED PORTFOLIO SEEKS LONG-TERM CAPITAL GROWTH AND CURRENT INCOME
WITHOUT UNDUE RISK TO PRINCIPAL. THE EQUITY PORTION OF THE PORTFOLIO CAN BE AS
HIGH AS 70% AND AS LOW AS 50% OF TOTAL ASSETS, WITH THE LONG-TERM AVERAGE
EXPECTED TO BE AROUND 60%. THE BALANCE WILL BE INVESTED PRIMARILY IN
INVESTMENT-GRADE FIXED-INCOME SECURITIES. THE PORTFOLIO'S PERFORMANCE GOAL IS TO
PROVIDE RETURNS APPROXIMATING 85% OF THE S&P "500" INDEX* WITH ABOUT 65% OF THE
S&P "500" 'S VOLATILITY, (GENERALLY CONSIDERED THE PRIMARY RISK FACTOR IN
EQUITIES INVESTING).
JENNIFER K. SILVER AND BROOKE A. COBB CO-MANAGE THE EQUITY PORTION OF THE
PORTFOLIO WITH A FOCUS ON MID-CAP STOCKS BELIEVED TO HAVE ABOVE MARKET AVERAGE
EARNINGS GROWTH POTENTIAL AND A RECORD OF CONSISTENTLY EXCEEDING CONSENSUS
EARNINGS EXPECTATIONS. THEODORE GIULIANO, MANAGER OF THE NEUBERGER&BERMAN, LLC
FIXED INCOME GROUP, AND THOMAS WOLFE, CO-MANAGE THE FIXED INCOME PORTION OF THE
PORTFOLIO.
EQUITY PORTION
We are pleased to report that for the six months ended June 30, 1998, the
equities portion of AMT Balanced Portfolio's return materially exceeded its
Russell Midcap-TM- Growth Index benchmark and was quite competitive with the
returns from leading large-cap indices.
Before we discuss portfolio specifics, some comment on recent years'
disparity between mid-cap and large-cap stock returns is in order. Although
historical performance is no indication of the future, from 1926 through
year-end 1997, mid-cap stocks outperformed large-caps on an average annualized
basis. We believe the primary reason is that over this extended period, many
mid-sized companies were able to grow earnings faster than larger, more mature
companies. However, in recent years, large-cap stocks have outperformed mid-caps
and this year, their lead has widened. Namely, in this six-month reporting
period, the S&P "500" gained 17.67% compared to the Russell Midcap Growth
Index's* 11.87% return.
Is investors' preference for large-cap growth stocks fundamentally justified?
Based on price/earnings ratios relative to earnings growth rates, we don't think
so. Recently, we compared the P/Es and projected earnings growth rates of the
large-cap market favorites to our mid-cap portfolio holdings in the same
industries. With only a few exceptions, our portfolio holdings had materially
lower P/Es relative to projected earnings growth rates. While what is true for
our portfolio may be somewhat less true for the mid-cap sector in general, we
believe over the long term, medium-sized companies have better long-term
earnings growth potential than the giants currently getting so much investor
attention. If we are right, and if over the longer term, it is earnings rather
than investor perception that drives stock prices, we think mid-cap stocks are
better positioned to generate more competitive returns versus large-cap stocks.
Now, let's comment on some of the factors that helped the equities portion of
the portfolio earn such handsome absolute and relative returns in the first half
of 1998. Value retailers Staples and TJX Companies performed quite well as the
strong domestic economy and high consumer confidence helped propel earnings.
Technology holdings like Citrix Systems, BMC Software and J.D. Edwards & Co.
also contributed to returns. We believe our success in the technology group was
largely the result of our decision last summer to eliminate commodity-oriented
technology stocks whose earnings might be vulnerable to Asian economic weakness
and focus on productivity-enhancing tech
A-2
<PAGE>
companies serving niche markets. Media holdings, including billboard advertiser
Outdoor Systems and radio broadcaster Chancellor Media, were buoyed by strong
earnings gains and continued consolidation in their respective industries.
During this six-month reporting period, we were generally overweighted in the
right industry groups and under-weighted in the market trouble spots. We believe
our industry group allocation decisions will continue to enhance returns.
However, we expect our quantitative and fundamental research-driven stock
picking discipline to be a more important contributor. As noted earlier, our
technology holdings performed very well despite mixed results for the broad
technology group. Even our limited holdings in troubled industry groups like
capital goods and energy did well relative to their respective industry
averages. Over time, we expect stock selection to contribute 80-90% of the
portfolio's returns. We will periodically get blindsided by stocks that run into
temporary difficulties or fail to live up to earnings expectations. That's why
we maintain a diversified portfolio. But, we believe we have positioned the
portfolio to benefit from many more positive earnings surprises than unexpected
earnings disappointments.
We believe that over the longer term, the mid-cap sector offers superior
earnings growth potential and more favorable investment prospects than the
large-cap sector. We are also encouraged by the fact that despite the
portfolio's strong performance relative to its mid-cap stock benchmark and very
competitive performance relative to the leading large-cap indices, the portfolio
characteristics we target -- above market average earnings growth and reasonable
valuations -- remain in place.
Sincerely,
[/S/ JENNIFER K. SILVER] [/S/ BROOKE A. COBB]
Jennifer Silver and Brooke Cobb
PORTFOLIO CO-MANAGERS
FIXED INCOME PORTION
Fixed income has come back into fashion. For the second quarter and most of
the year, investors have been plowing money into bonds and money market
securities at a near-record pace. Favorable fundamentals -- low inflation and
historically high real rates of return -- helped spawn this year's bond rally.
Global financial turmoil and growing concern over high domestic equities
valuations provided a strong tailwind. In the first half of 1998, intermediate
and long bond returns rivaled that of U.S. small-cap stocks and vastly exceeded
returns from emerging market equities. At the close of this reporting period,
long bond yields were near historical lows.
What are investors getting from their fixed-income investments? Yields still
well above the prevailing rate of inflation and perhaps more importantly, some
portfolio cushioning that may help cover any potential losses from their equity
investments here and abroad. An added advantage is that with today's extremely
flat yield curve, investors can get attractive yields in short- and
intermediate- maturity bonds without the higher interest rate risk inherent in
buying bonds with long maturities
In the first half of 1998, corporate bonds underperformed U.S. Treasury
securities along the yield curve. Uncertainty over the impact of the Asian
crisis on corporate earnings restrained the corporate sector, while favorable
A-3
<PAGE>
supply/demand dynamics and prospects for the first federal budget surplus in a
generation buoyed Treasuries. We were able to enhance returns in the corporate
sector through selectively buying "split-rated" bonds (securities rated
investment grade by one, but not all the major rating services) and "crossover"
bonds (below investment grade or split-rated bonds with the potential to move to
full investment grade rating). Examples include the "split-rated" bonds of Owens
Illinois, the world's largest and most cost-efficient manufacturer of glass
containers and the "crossover" bonds of media giant Time Warner, which got a
full investment grade rating due to rising cash flows and debt reduction through
asset sales.
Our high-yield investments also contributed to returns. A large new issue
calendar and lingering concerns about Asian-induced earnings problems forced
issuers to offer very attractive yields to move inventory. We took advantage of
this opportunity by adding several new holdings with 10-12% yields on what we
believe to be very solid credits.
Asset-backed securities, primarily high-quality credit card receivables and
auto and capital equipment loans, also contributed to returns, as did our
positions in Treasuries and Government Agencies.
In closing, we emphasize that we have been steadfast in our faith in fixed
income, praising the virtues of income and relative safety of principal. We are
delighted the bond faithful have been justly rewarded during the last 12 months.
Sincerely,
[/S/ THEODORE P. GIULIANO] [/S/ THOMAS WOLFE]
Theodore P. Giuliano and Thomas Wolfe
PORTFOLIO CO-MANAGERS
*The S&P "500" Index is an unmanaged index generally considered to be
representative of stock market activity. The Russell Midcap-TM- Index measures
the performance of those Russell Midcap Index companies with higher
price-to-book ratios and higher forecasted growth values. The Russell Midcap
Index measures the performance of the 800 smallest companies in the Russell
1000-Registered Trademark- Index, which represents approximately 35% of the
total market capitalization of the Russell 1000 Index (which, in turn, consists
of the 1,000 largest U.S. companies, based on market capitalization). Please
note that indices do not take into account any fees and expenses of investing
in the individual securities that they track, and that individuals cannot
invest directly in any index. Data about the performance of these indices are
prepared or obtained by Neuberger&Berman Management Inc.-Registered Trademark-
and include reinvestment of dividends and capital gain distributions. The
portfolio invests in many securities not included in these above-described
indices.
The composition, industries and holdings of the Portfolio are subject to
change. The Portfolio is invested in a wide array of securities and no single
holding makes up more than a small fraction of its total assets.
Past performance is no guarantee of future results and shares when redeemed may
be worth more or less than their original cost.
The investments for the Portfolio are managed by the same portfolio managers
who manage one or more other mutual funds that have similar names, investment
objectives and investment styles as the Portfolio. You should be aware that the
Portfolio is likely to differ from the other mutual funds in size, cash flow
pattern and tax matters. Accordingly, the holdings and performance can be
expected to vary from those of the other mutual funds.
A-4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Balanced Portfolio
<TABLE>
<CAPTION>
June 30,
1998
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 179,870,202
Receivable for Trust shares sold 61,595
--------------
179,931,797
--------------
LIABILITIES
Payable for Trust shares redeemed 670,436
Accrued expenses 106,778
Payable to administrator (Note B) 42,842
--------------
820,056
--------------
NET ASSETS at value $ 179,111,741
--------------
NET ASSETS consist of:
Par value $ 11,115
Paid-in capital in excess of par value 147,432,084
Accumulated undistributed net investment
income 1,438,886
Accumulated net realized gains on investment 3,023,998
Net unrealized appreciation in value of
investment 27,205,658
--------------
NET ASSETS at value $ 179,111,741
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 11,114,979
--------------
NET ASSET VALUE, offering and redemption price per
share $16.11
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-1
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Balanced Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1998
(UNAUDITED)
------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 2,413,854
------------
Expenses:
Administration fee (Note B) 252,556
Shareholder reports 73,950
Registration and filing fees 18,165
Shareholder servicing agent fees 7,776
Custodian fees 5,000
Legal fees 4,574
Trustees' fees and expenses 3,061
Auditing fees 415
Miscellaneous 978
Expenses from Series (Notes A & B) 538,643
------------
Total expenses 905,118
Expenses reduced by custodian fee and
shareholder servicing expense offset
arrangements (Note B) (176)
------------
Total net expenses 904,942
------------
Net investment income 1,508,912
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
FROM SERIES (NOTE A)
Net realized gain on investment securities 3,693,097
Net realized loss on financial futures
contracts (284,596)
Net realized loss on foreign currency
transactions (42,831)
Change in net unrealized appreciation of
investment securities, financial futures
contracts, translation of assets and
liabilities in foreign currencies, and
foreign currency contracts 12,383,040
------------
Net gain on investments from Series (Note
A) 15,748,710
------------
Net increase in net assets resulting from
operations $17,257,622
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Balanced Portfolio
<TABLE>
<CAPTION>
Six Months
Ended Year
June 30, Ended
1998 December 31,
(UNAUDITED) 1997
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 1,508,912 $ 3,792,567
Net realized gain on investments
from Series (Note A) 3,365,670 26,657,530
Change in net unrealized
appreciation of investments from
Series (Note A) 12,383,040 897,508
-----------------------------
Net increase in net assets resulting
from operations 17,257,622 31,347,605
-----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (3,822,929) (3,158,780)
Net realized gain on investments (26,851,524) (8,107,536)
-----------------------------
Total distributions to shareholders (30,674,453) (11,266,316)
-----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 9,852,029 16,051,516
Proceeds from reinvestment of
dividends and distributions 30,674,453 11,266,316
Payments for shares redeemed (9,906,541) (58,657,890)
-----------------------------
Net increase (decrease) from Trust
share transactions 30,619,941 (31,340,058)
-----------------------------
NET INCREASE (DECREASE) IN NET ASSETS 17,203,110 (11,258,769)
NET ASSETS:
Beginning of period 161,908,631 173,167,400
-----------------------------
End of period $ 179,111,741 $161,908,631
-----------------------------
Accumulated undistributed net
investment income at end of period $ 1,438,886 $ 3,752,903
-----------------------------
NUMBER OF TRUST SHARES:
Sold 606,658 956,764
Issued on reinvestment of dividends
and distributions 2,020,715 719,892
Redeemed (610,272) (3,454,180)
-----------------------------
Net increase (decrease) in shares
outstanding 2,017,101 (1,777,524)
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Balanced Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Balanced Portfolio (the "Fund") is a separate operating series of
Neuberger&Berman Advisers Management Trust-SM- (the "Trust"), a Delaware
business trust organized pursuant to a Trust Instrument dated May 23, 1994.
The 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 Balanced Investments (the "Series"), a series of
Advisers Managers Trust having the same investment objective and policies as
the Fund. The value of the Fund's investment in the Series reflects the
Fund's proportionate interest in the net assets of the Series (100% at June
30, 1998). The performance of the Fund is directly affected by the
performance of the Series. The financial statements of the Series, including
the Schedule of Investments, are included elsewhere in this report and should
be read in conjunction with the Fund's financial statements.
2) PORTFOLIO VALUATION: The Fund records its investment in the Series at value.
Investment securities held by the Series are valued by Advisers Managers
Trust as indicated in the notes following the Series' Schedule of
Investments.
3) FEDERAL INCOME TAXES: The Funds are treated as separate entities for Federal
income tax purposes. It is the policy of the Fund to continue to qualify as a
regulated investment company by complying with the provisions available to
certain investment companies, as defined in applicable sections of the
Internal Revenue Code, and to make distributions of investment company
taxable income and net capital gains (after reduction for any amounts
available for Federal income tax purposes as capital loss carryforwards)
sufficient to relieve it from all, or substantially all, Federal income
taxes. Accordingly, the Fund paid no Federal income taxes and no provision
for Federal income taxes was required.
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net of
Series expenses, daily on its investment in the Series. Income dividends and
distributions from net realized capital gains, if any, are normally
distributed in February. Income dividends and capital gain distributions to
shareholders are recorded on the ex-dividend date. To the extent the Fund's
net realized capital gains, if any, can be offset by capital loss
carryforwards, it is the policy of the Fund not to distribute such gains.
The Fund distinguishes between dividends on a tax basis and a financial
reporting basis and only distributions in excess of tax basis earnings and
profits are reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains.
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.
B-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger&Berman Advisers Management Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Balanced Portfolio
6) 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 and are
also offered directly to qualified pension and retirement plans.
The Fund retains Neuberger&Berman Management
Incorporated-Registered Trademark- ("N&B Management") as its administrator under
an Administration Agreement ("Agreement"). Pursuant to this Agreement the Fund
pays N&B Management an administration fee at the annual rate of 0.30% of the
Fund's average daily net assets. The Fund indirectly pays for investment
management services through its investment in the Series (see Note B of Notes to
Financial Statements of the Series).
Effective May 1, 1995, the trustees of the Trust adopted a non-fee
distribution plan for each series of the Trust.
N&B Management has voluntarily undertaken to limit the Fund's expenses by
reimbursing the Fund for its operating expenses and its pro rata share of its
Series' operating expenses (excluding the fees payable to N&B Management,
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 six months ended June
30, 1998, no reimbursement to the Fund was required.
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 $160.
The Fund has an expense offset arrangement in connection with its shareholder
servicing agent contract. The impact of this arrangement, reflected in the
Statement of Operations under the caption Shareholder servicing agent fees, was
a reduction of $16.
NOTE C -- INVESTMENT TRANSACTIONS:
During the six months ended June 30, 1998, additions and reductions in the
Fund's investment in its Series amounted to $5,039,170 and $4,818,539,
respectively.
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Fund without audit by independent auditors. Annual reports
contain audited financial statements.
B-5
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Balanced Portfolio
The following table includes selected data for a share outstanding throughout
each period 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>
Six
Months
Ended
June
30,
1998(2) Year Ended December 31,
(UNAUDITED) 1997(2) 1996(2) 1995(2) 1994 1993
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $17.80 $15.92 $17.52 $14.51 $15.62 $14.90
-------------------------------------------------------------------
Income From Investment Operations
Net Investment Income .19 .36 .34 .32 .30 .34
Net Gains or Losses on Securities
(both realized and unrealized) 1.49 2.59 .75 3.06 (.80) .61
-------------------------------------------------------------------
Total From Investment Operations 1.68 2.95 1.09 3.38 (.50) .95
-------------------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (.42) (.30) (.41) (.28) (.23) (.20)
Distributions (from net capital
gains) (2.95) (.77) (2.28) (.09) (.38) (.03)
-------------------------------------------------------------------
Total Distributions (3.37) (1.07) (2.69) (.37) (.61) (.23)
-------------------------------------------------------------------
Net Asset Value, End of Period $16.11 $17.80 $15.92 $17.52 $14.51 $15.62
-------------------------------------------------------------------
Total Return(3) +10.60%(4) +19.45% +6.89% +23.76% -3.36% +6.45%
-------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $179.1 $161.9 $173.2 $144.4 $ 179.3 $ 161.1
-------------------------------------------------------------------
Ratio of Gross Expenses to Average
Net Assets(5) 1.08%(6) 1.04% 1.09% .99% -- --
-------------------------------------------------------------------
Ratio of Net Expenses to Average Net
Assets 1.07%(6) 1.04% 1.09% .99% .91% .90%
-------------------------------------------------------------------
Ratio of Net Investment Income to
Average Net Assets 1.79%(6) 2.07% 1.84% 1.99% 1.91% 1.96%
-------------------------------------------------------------------
Portfolio Turnover Rate(7) -- -- -- 21% 55% 114%
-------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-6
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Balanced 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) 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. The total return
information shown does not reflect charges and other expenses that apply to
the separate account or the related insurance policies, and the inclusion of
these charges and other expenses would reduce the total return for all fiscal
periods shown. Qualified Plans that are direct shareholders of the Fund are
not affected by insurance charges and related expenses.
4) Not annualized.
5) 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.
6) Annualized.
7) 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 Balanced Investments, which appear elsewhere in
this report.
B-7
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
COMMON STOCKS (61.0%)
BASIC MATERIALS (0.3%)
11,200 Cytec Industries $ 495,600
------------
CAPITAL GOODS (2.5%)
27,700 Eastern Environmental Services 941,800
58,700 HON INDUSTRIES 1,995,800
31,900 USA Waste Services 1,575,062
------------
4,512,662
------------
COMMUNICATIONS (2.7%)
19,400 ICG Communications 709,313
18,800 Intermedia Communications 788,425
29,700 NEXTLINK Communications 1,124,887
52,900 RSL Communications 1,587,000
48,300 SmarTalk TeleServices 703,369
------------
4,912,994
------------
CONSUMER CYCLICALS (12.7%)
23,700 Abercrombie & Fitch 1,042,800
55,000 Avis Rent A Car 1,361,250
30,700 Costco Cos. 1,936,019
65,300 General Nutrition 2,032,462
44,200 Hayes Lemmerz International 1,756,950
59,200 Linens 'n Things 1,809,300
58,675 Outdoor Systems 1,642,900
84,400 PETsMART, Inc. 844,000
30,802 Promus Hotel 1,185,877
28,500 Robert Half International 1,592,437
22,700 StaffMark, Inc. 831,388
94,100 Staples, Inc. 2,723,019
49,900 Sylvan Learning Systems 1,634,225
103,000 TJX Cos. 2,484,875
------------
22,877,502
------------
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
CONSUMER STAPLES (8.2%)
25,300 American Italian Pasta $ 942,425
65,400 Brinker International 1,258,950
49,600 Capstar Broadcasting 1,246,200
15,700 Cardinal Health 1,471,875
46,600 Chancellor Media 2,313,981
55,600 CKE Restaurants 2,293,500
27,900 Comcast Corp. Class A Special 1,132,566
22,700 Estee Lauder 1,581,906
27,900 Suiza Foods 1,665,281
21,800 Valassis Communications 840,663
------------
14,747,347
------------
ENERGY (2.4%)
36,520 BJ Services 1,061,362
25,000 Cooper Cameron 1,275,000
49,200 Noble Drilling 1,183,875
44,800 Seagull Energy 742,000
------------
4,262,237
------------
FINANCIAL SERVICES (7.8%)
29,900 Ace, Ltd. 1,166,100
17,600 Bear Stearns 1,001,000
15,300 Equitable Cos. 1,146,544
18,300 EXEL Ltd. 1,423,969
31,900 Finova Group 1,806,337
29,700 FIRSTPLUS Financial Group 1,069,200
41,900 GreenPoint Financial 1,576,487
21,200 Northern Trust 1,616,500
22,300 State Street 1,549,850
30,100 SunAmerica, Inc. 1,728,869
------------
14,084,856
------------
</TABLE>
B-8
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
HEALTH CARE (6.6%)
40,400 Alternative Living Services $ 1,090,800
31,900 Biogen, Inc. 1,563,100
30,900 Elan Corp. ADR 1,987,256
45,500 Omnicare, Inc. 1,734,688
31,600 Quintiles Transnational 1,554,325
20,000 Rexall Sundown 705,000
11,300 Sofamor Danek Group 978,156
13,500 STERIS Corp. 858,516
28,400 Watson Pharmaceuticals 1,325,925
------------
11,797,766
------------
TECHNOLOGY (15.2%)
27,400 Advanced Fibre Communications 1,097,712
35,000 Analog Devices 859,688
30,400 BMC Software 1,578,900
42,900 Cadence Design Systems 1,340,625
19,200 Cambridge Technology Partners 1,048,800
35,200 CBT Group ADR 1,883,200
26,300 CIENA Corp. 1,831,137
33,750 Citrix Systems 2,307,656
6,900 Excite, Inc. 645,150
<CAPTION>
Number Market
of Shares Value(1)
- --------- ------------
<C> <S> <C>
46,300 HBO & Co. $ 1,632,075
20,700 International Network Services 848,700
44,400 J.D. Edwards 1,906,425
47,800 Network Appliance 1,861,212
43,650 Network Associates 2,089,744
44,000 Sanmina Corp. 1,908,500
29,500 Saville Systems Ireland ADR 1,478,688
41,400 Staff Leasing 1,221,300
36,100 Sterling Commerce 1,750,850
------------
27,290,362
------------
TRANSPORTATION (1.5%)
48,700 Southwest Airlines 1,442,738
15,000 US Airways Group 1,188,750
------------
2,631,488
------------
UTILITIES (1.1%)
39,200 AES Corp. 2,060,450
------------
TOTAL COMMON STOCKS (COST $82,797,778) 109,673,264
------------
</TABLE>
B-9
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- ------------- --------- --------- ------------
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES (0.4%)
$ 666,634 U.S. Treasury Inflation-Indexed Notes, 3.375%, due 1/15/07 (COST
$666,328) TSY TSY $ 645,388
------------
U.S. GOVERNMENT AGENCY SECURITIES (2.8%)
4,945,000 Federal Home Loan Bank, Discount Notes, 5.40%, due 7/1/98 (COST
$4,945,000) AGY AGY 4,944,258
------------
MORTGAGE-BACKED SECURITIES (1.5%)
FANNIE MAE
13,071 Balloon Pass-Through Certificates, 8.50%, due 11/1/98 AGY AGY 13,505
1,507,085 Pass-Through Certificates, 7.00%, due 6/1/11 AGY AGY 1,545,184
1,148,707 Pass-Through Certificates, 6.50%, due 4/1/13 AGY AGY 1,155,519
------------
TOTAL MORTGAGE-BACKED SECURITIES (COST $2,660,623) 2,714,208
------------
ASSET-BACKED SECURITIES (5.7%)
25,133 USAA Auto Loan Grantor Trust, Automobile Loan Pass-Through
Certificates, Ser. 1994-1, 5.00%, due 11/15/99 Aaa AAA 25,105
1,450,000 PNC Student Loan Trust I, Ser. 1997-2, Class A-2, 6.138%, due 1/25/00 Aaa AAA 1,459,570
970,000 Chase Manhattan Auto Owner Trust, Ser. 1996-C, Class A-3, 5.95%, due
11/15/00 Aaa AAA 971,310
464,487 Banc One Auto Grantor Trust, Ser. 1996-B, Class A, 6.55%, due 2/15/03 Aaa AAA 467,427
1,350,000 Ford Credit Auto Loan Master Trust, Auto Loan Certificates, Ser.
1996-1, 5.50%, due 2/15/03 Aaa AAA 1,341,819
1,420,000 Chase Credit Card Master Trust, Ser. 1997-2, Class A, 6.30%, due
4/15/03 Aaa AAA 1,440,235
561,918 Navistar Financial Owner Trust, Ser. 1996-B, Class A-3, 6.33%, due
4/21/03 Aaa AAA 566,070
1,349,302 World Omni Automobile Lease Securitization Trust, Ser. 1997-A, Class
A-3, 6.85%, due 6/25/03 Aaa AAA 1,369,474
701,191 Chevy Chase Auto Receivables Trust, Ser. 1996-2, Class A, 5.90%, due
7/15/03 Aaa AAA 700,862
869,518 ContiMortgage Net Interest Margin Notes, Ser. 1998-A, Class A, 7.92%,
due 3/16/28 BBB(2) 875,083(3)
1,078,487 IMC Excess Cashflow Trust, Ser. 1997-A, 7.41%, due 11/26/28 BBB(2) 1,077,354(3)
------------
TOTAL ASSET-BACKED SECURITIES (COST $10,235,249) 10,294,309
------------
BANKS & FINANCIAL INSTITUTIONS (8.1%)
1,300,000 CIT Group Holdings, Inc., Medium-Term Notes, 6.25%, due 10/25/99 Aa3 A+ 1,307,579
970,000 First National Bank of Commerce, Senior Bank Notes, 6.50%, due 1/14/00 A2 A- 977,188
1,020,000 HomeSide Lending, Inc., Notes, 6.875%, due 5/15/00 A1 A+ 1,033,046
1,280,000 Salomon Smith Barney Holdings Inc., Notes, 7.00%, due 5/15/00 A2 A 1,304,986
1,360,000 Comdisco, Inc., Notes, 6.50%, due 6/15/00 Baa1 BBB+ 1,371,234
1,860,000 Associates Pass-Through Asset Trust, Ser. 1997-1, 6.45%, due 9/15/00 Aa3 AA- 1,877,874(3)
</TABLE>
B-10
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- ------------- --------- --------- ------------
<C> <S> <C> <C> <C>
$ 820,000 Lehman Brothers Holdings Inc., Medium-Term Notes, Ser. E, 6.89%, due
10/10/00 Baa1 A $ 833,899
680,000 Lehman Brothers Holdings Inc., Medium-Term Notes, Ser. E, 6.65%, due
11/8/00 Baa1 A 688,255
1,420,000 Capital One Bank, Bank Notes, 5.95%, due 2/15/01 Baa3 BBB- 1,409,435
970,000 Morgan Stanley, Dean Witter, Discover & Co., Global Medium-Term Notes,
Ser. C, 6.09%, due 3/9/01 A1 A+ 970,126
1,270,000 Household Finance Corp., Senior Medium-Term Notes, 6.06%, due 5/14/01 A2 A 1,271,194
930,000 Riggs National Corp., Subordinated Notes, 8.50%, due 2/1/06 Ba1(4) BB-(4) 979,987
525,000 Riggs National Corp., Subordinated Debentures, 9.65%, due 6/15/09 Ba1(4) BB-(4) 624,094
------------
TOTAL BANKS & FINANCIAL INSTITUTIONS (COST $14,559,934) 14,648,897
------------
CORPORATE DEBT SECURITIES (16.3%)
1,500,000 Occidental Petroleum Corp., Medium-Term Notes, 5.85%, due 11/9/98 Baa2 BBB 1,496,640
1,200,000 Williams Holdings of Delaware, Inc., Medium-Term Notes, Ser. A, 6.40%,
due 6/17/99 Baa2 BBB- 1,204,092
660,000 Arkla, Inc., Notes, 8.875%, due 7/15/99 Baa1 BBB 677,582
1,240,000 Time Warner Pass-Through Asset Trust, Ser. 1997-2, 4.90%, due 7/29/99 Baa3 BBB- 1,224,463(3)
1,220,000 Norfolk Southern Corp., Notes, 6.70%, due 5/1/00 Baa1 BBB+ 1,234,372
1,440,000 Sears Roebuck Acceptance Corp., Medium-Term Notes, Ser. IV, 6.23%, due
7/12/00 A2 A- 1,445,630
1,000,000 Ford Motor Credit Co., Medium-Term Notes, 6.84%, due 8/16/00 A1 A 1,017,720
980,000 MedPartners, Inc., Senior Subordinated Notes, 6.875%, due 9/1/00 B3 B 929,452
520,000 Chesapeake Corp., Notes, 10.375%, due 10/1/00 Baa3 BBB 564,933
415,000 BHP Finance (USA) Ltd., Guaranteed Notes, 5.625%, due 11/1/00 A3 A 410,315
1,450,000 IKON Capital, Inc., Medium-Term Notes, Ser. C, 6.33%, due 12/8/00 A3 A- 1,456,018
430,000 Fort James Corp., Notes, 6.234%, due 3/15/01 Baa2 BBB- 429,781
870,000 Revlon Worldwide Corp., Senior Secured Notes, Ser. B, Zero-Coupon,
Yielding 10.75% & 10.959%, due 3/15/01 B3 B- 675,337
520,000 Colonial Realty Limited Partnership, Senior Notes, 7.50%, due 7/15/01 Baa3 BBB- 537,503
1,000,000 Tyco International Ltd., Notes, 6.50%, due 11/1/01 A3 A- 1,008,760
755,000 ICI Wilmington Inc., Guaranteed Notes, 7.50%, due 1/15/02 Baa1 A- 790,236
600,000 Fort James Corp., Senior Notes, 6.50%, due 9/15/02 Baa2 BBB- 602,130
830,000 Stewart Enterprises, Inc., Notes, 6.40%, due 5/1/03 Baa3 BBB 830,548
400,000 Core-Mark International, Inc., Senior Subordinated Notes, 11.375%, due
9/15/03 B3 B 425,500
160,000 Loomis Fargo & Co., Senior Subordinated Notes, 10.00%, due 1/15/04 B3 B 160,000
170,000 EOP Operating Limited Partnership, Notes, 6.625%, due 2/15/05 Baa1 BBB 170,595(3)
</TABLE>
B-11
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- ------------- --------- --------- ------------
<C> <S> <C> <C> <C>
$ 550,000 Burlington Industries, Inc., Notes, 7.25%, due 9/15/05 Baa3 BBB- $ 561,814
450,000 Heritage Media Corp., Senior Subordinated Notes, 8.75%, due 2/15/06 B1 BB+ 480,375
1,160,000 Mark IV Industries, Inc., Senior Subordinated Notes, 7.75%, due 4/1/06 Ba2(5) BB+(5) 1,171,600
275,000 Federal-Mogul Corp., Notes, 7.75%, due 7/1/06 Ba2(5) BB+(5) 278,058
205,000 Printpack, Inc., Senior Subordinated Notes, Ser. B, 10.625%, due
8/15/06 B3 B+ 219,606
500,000 Time Warner Inc., Notes, 8.11%, due 8/15/06 Baa3 BBB- 548,845
165,000 Commonwealth Aluminum Corp., Senior Subordinated Notes, 10.75%, due
10/1/06 B2 B- 175,312
45,000 Newport News Shipbuilding Inc., Senior Subordinated Notes, 9.25%, due
12/1/06 B1 B+ 47,869
100,000 Safelite Glass Corp., Senior Subordinated Notes, 9.875%, due 12/15/06 B3 B 105,750(3)
220,000 AMTROL Inc., Senior Subordinated Notes, 10.625%, due 12/31/06 B3 B- 215,050
410,000 Pen-Tab Industries, Inc., Senior Subordinated Notes, Ser. B, 10.875%,
due 2/1/07 B3 B- 406,925
235,000 Fonda Group, Inc., Senior Subordinated Notes, Ser. B, 9.50%, due
3/1/07 B3 B- 227,362
325,000 GFSI Inc., Senior Subordinated Notes, 9.625%, due 3/1/07 B3 B- 342,875
75,000 French Fragrances, Inc., Senior Notes, Ser. B, 10.375%, due 5/15/07 B2 B+ 80,062
610,000 Owens-Illinois, Inc., Senior Debentures, 8.10%, due 5/15/07 Ba1(6) BB+(6) 645,966
950,000 Teleport Communications Group Inc., Senior Step Up Notes, Yielding
8.461%, due 7/1/07 Baa3 B+ 815,813
110,000 AmeriServe Food Distribution, Inc., Senior Subordinated Notes,
10.125%, due 7/15/07 B3 B- 114,675
50,000 Safety Components International, Inc., Senior Subordinated Notes,
10.125%, due 7/15/07 B3 B- 51,875
225,000 HydroChem Industrial Services, Inc., Senior Subordinated Notes, Ser.
B, 10.375%, due 8/1/07 B3 B- 229,500
1,310,000 Interpool, Inc., Notes, 7.20%, due 8/1/07 Ba1 BBB- 1,304,026
50,000 Insilco Corp., Senior Subordinated Notes, 10.25%, due 8/15/07 B3 B+ 52,313
130,000 NBTY, Inc., Senior Subordinated Notes, Ser. B, 8.625%, due 9/15/07 B1 B+ 133,250
610,000 UPM-Kymmene Corp., Notes, 6.875%, due 11/26/07 Baa1 BBB+ 620,016(3)
540,000 IDEX Corp., Senior Notes, 6.875%, due 2/15/08 Ba1 BBB- 537,278
415,000 Central Maine Power & Co., General and Refunding Mortgage Bonds, Ser.
Q, 7.05%, due 3/1/08 Baa3 BBB+ 415,403
160,000 Thiokol Corp., Senior Notes, 6.625%, due 3/1/08 Baa3 BBB 160,430
1,060,000 Beckman Coulter, Inc., Senior Notes, 7.45%, due 3/4/08 Ba1(6) BB+(6) 1,073,950(3)
110,000 IMPAC Group, Inc., Senior Subordinated Notes, 10.125%, due 3/15/08 B3 B- 111,375(3)
85,000 Trans-Resources, Inc., Senior Notes, 10.75%, due 3/15/08 B3 B- 86,275(3)
</TABLE>
B-12
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- ------------- --------- --------- ------------
<C> <S> <C> <C> <C>
$ 300,000 Owens-Illinois, Inc., Senior Notes, 7.35%, due 5/15/08 Ba1(6) BB+(6) $ 301,719
290,000 WestPoint Stevens Inc., Senior Notes, 7.875%, due 6/15/08 Ba3 BB 289,275(3)
205,000 Tenet Healthcare Corp., Senior Subordinated Notes, 8.125%, due 12/1/08 Ba3 BB- 206,107(3)
95,000 KinderCare Learning Centers, Inc., Senior Subordinated Notes, Ser. B,
9.50%, due 2/15/09 B3 B- 97,137
------------
TOTAL CORPORATE DEBT SECURITIES (COST $29,150,780) 29,399,493
------------
FOREIGN GOVERNMENT SECURITIES(7) (0.7%)
SEK 9,900,000 Kingdom of Sweden, 5.50%, due 4/12/02 (COST $1,306,411) Aa1 1,284,170
------------
SHORT-TERM INVESTMENTS (5.8%)
4,769,589 N&B Securities Lending Quality Fund, LLC 4,769,589(8)
5,680,000 General Electric Capital Corp., 5.60%, due 7/1/98 P-1 A-1+ 5,680,000(8)
------------
TOTAL SHORT-TERM INVESTMENTS (COST $10,449,589) 10,449,589
------------
TOTAL INVESTMENTS (102.3%) (COST $156,771,692) 184,053,576(9)
Liabilities, less cash, receivables and other assets [(2.3%)] (4,183,373)
------------
TOTAL NET ASSETS (100.0%) $179,870,203
------------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-13
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
1) Investments in equity 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. Investments
in limited maturity debt 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 debt securities with less than 60 days until maturity may
be valued at cost which, when combined with interest earned, approximates
market value.
2) Not rated by Moody's; the rating shown is from Fitch Investors Services, Inc.
3) Security exempt from registration under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers under Rule 144A. At June 30, 1998, these
securities amounted to $7,718,117 or 4.3% of net assets.
4) Rated BBB by Thomson Bank Watch, Inc.
5) Rated BBB- by Fitch Investors Services, Inc.
6) Rated BBB- by Duff & Phelps Credit Rating Co.
7)Principal amount is stated in the currency in which the security is
denominated.
SEK -- Swedish Krona
8) At cost, which approximates market value.
9) At June 30, 1998, the cost of investments for Federal income tax purposes was
$156,878,993. Gross unrealized appreciation of investments was $30,131,010
and gross unrealized depreciation of investments was $2,956,427, resulting in
net unrealized appreciation of $27,174,583, based on cost for Federal income
tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
B-14
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
June 30,
1998
(UNAUDITED)
-------------
<S> <C>
ASSETS
Investments in securities, at market value* (Note A) -- see
Schedule of Investments $184,053,576
Cash 9,719
Dividends and interest receivable 966,483
Receivable for securities sold 77,839
Deferred organization costs (Note A) 19,037
Prepaid expenses and other assets 10,521
Receivable for forward currency exchange contracts sold (Note C) 6,239
-------------
185,143,414
-------------
LIABILITIES
Payable for collateral on securities loaned (Note A) 4,769,589
Payable for securities purchased 370,063
Payable to investment manager (Note B) 78,593
Accrued expenses 39,731
Payable for variation margin (Note A) 15,235
-------------
5,273,211
-------------
NET ASSETS Applicable to Investors' Beneficial Interests $179,870,203
-------------
NET ASSETS consist of:
Paid-in capital $152,664,545
Net unrealized appreciation in value of investment securities,
financial futures contracts, translation of assets and
liabilities in foreign currencies, and foreign currency
contracts 27,205,658
-------------
NET ASSETS $179,870,203
-------------
*Cost of investments $156,771,692
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-15
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1998
(UNAUDITED)
------------
<S> <C>
INVESTMENT INCOME
Income:
Interest income $ 2,300,956
Dividend income 113,133
Foreign taxes withheld (Note A) (235)
------------
Total income 2,413,854
------------
Expenses:
Investment management fee (Note B) 463,311
Custodian fees (Note B) 55,706
Amortization of deferred organization and initial offering
expenses (Note A) 5,142
Accounting fees 5,000
Trustees' fees and expenses 3,333
Legal fees 2,067
Auditing fees 1,576
Insurance expense 1,399
Miscellaneous 1,109
------------
Total expenses 538,643
Expenses reduced by custodian fee expense offset arrangement
(Note B) (160)
------------
Total net expenses 538,483
------------
Net investment income 1,875,371
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment securities sold 3,693,097
Net realized loss on financial futures contracts (Note A) (284,596)
Net realized loss on foreign currency transactions (Note A) (42,831)
Change in net unrealized appreciation of investment securities,
financial futures contracts, translation of assets and
liabilities in foreign currencies, and foreign currency contracts
(Note A) 12,383,040
------------
Net gain on investments 15,748,710
------------
Net increase in net assets resulting from operations $17,624,081
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-16
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Six Months
Ended Year
June 30, Ended
1998 December 31,
(UNAUDITED) 1997
---------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 1,875,371 $ 4,503,732
Net realized gain on investments 3,365,670 26,657,530
Change in net unrealized appreciation of investments 12,383,040 897,508
---------------------------
Net increase in net assets resulting from operations 17,624,081 32,058,770
---------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Additions 5,039,170 4,639,298
Reductions (4,818,539) (48,168,855)
---------------------------
Net increase (decrease) in net assets resulting from transactions
in investors' beneficial interests 220,631 (43,529,557)
---------------------------
NET INCREASE (DECREASE) IN NET ASSETS 17,844,712 (11,470,787)
NET ASSETS:
Beginning of period 162,025,491 173,496,278
---------------------------
End of period $179,870,203 $162,025,491
---------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-17
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Balanced 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) FOREIGN CURRENCY TRANSLATION: The accounting records of the Series are
maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars at the current rate of exchange of such currency against the
U.S. dollar to determine the value of investments, other assets and
liabilities. Purchase and sale prices of securities, and income and expenses
are translated into U.S. dollars at the prevailing rate of exchange on the
respective dates of such transactions.
4) FORWARD FOREIGN CURRENCY CONTRACTS: The Series may enter into forward
foreign currency contracts ("contracts") in connection with planned
purchases or sales of securities to hedge the U.S. dollar value of portfolio
securities denominated in a foreign currency. The gain or loss arising from
the difference between the original contract price and the closing price of
such contract is included in net realized gains or losses on foreign
currency transactions. Fluctuations in the value of forward foreign currency
contracts are recorded for financial reporting purposes as unrealized gains
or losses by the Series. The Series has no specific limitation on the
percentage of assets which may be committed to these types of contracts. The
Series could be exposed to risks if a counterparty to a contract were unable
to meet the terms of its contract or if the value of the foreign currency
changes unfavorably. The U.S. dollar value of foreign currency underlying
all contractual commitments held by the Series is determined using forward
foreign currency exchange rates supplied by an independent pricing service.
5) FINANCIAL FUTURES CONTRACTS: The Series may buy and sell financial futures
contracts to hedge against changes in securities prices resulting from
changes in prevailing interest rates. At the time the Series enters into a
financial futures contract, it is required to deposit with its custodian a
specified amount of cash or liquid securities, known as "initial margin,"
ranging upward from 1.1% of the value of the financial futures contract
being traded. Each day, the futures contract is valued at the official
settlement price of the board of trade or U.S. commodity exchange on which
such futures contract is traded. Subsequent payments, known as "variation
margin," to and from the broker are made on a daily basis as the market
price of the financial futures contract fluctuates. Daily variation margin
adjustments, arising from this "mark to market," are recorded by the Series
as unrealized gains or losses.
Although some financial futures contracts by their terms call for actual
delivery or acceptance of financial instruments, in most cases the contracts
are closed out prior to delivery by offsetting purchases or sales of
matching financial futures contracts. When the contracts are closed, the
Series recognizes a gain or loss. Risks of entering into futures contracts
include the possibility there may be an illiquid market and/or a change in
the value of the contract may not correlate with changes in the value of the
underlying securities.
B-18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
For Federal income tax purposes, the futures transactions undertaken by
the Series may cause the Series to recognize gains or losses from marking to
market even though its positions have not been sold or terminated, may
affect the character of the gains or losses recognized as long-term or
short-term, and may affect the timing of some capital gains and losses
realized by the Series. Also, the Series' losses on transactions involving
futures contracts may be deferred rather than being taken into account
currently in calculating the Series' taxable income.
At June 30, 1998, open positions in financial futures contracts were as
follows:
<TABLE>
<CAPTION>
UNREALIZED
APPRECIATION
EXPIRATION OPEN CONTRACTS POSITION (DEPRECIATION)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
September
1998 81 U.S. Treasury Notes, 2 Year Long $ 23,078
September
1998 50 U.S. Treasury Notes, 5 Year Short (28,480)
September
1998 91 U.S. Treasury Notes, 10 Year Short (76,721)
</TABLE>
At June 30, 1998, the Series had deposited $390,700 principal of Ford
Credit Auto Loan Master Trust, Auto Loan Certificates, Ser. 1996-1, 5.50%,
due 2/15/03 in a segregated account to cover margin requirements on open
financial futures contracts.
6) 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
and foreign currency transactions are recorded on the basis of identified
cost.
7) 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.
8) FOREIGN TAXES: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
9) ORGANIZATION EXPENSES: Expenses incurred by the Series in connection with
its organization are being amortized by the Series on a straight-line basis
over a five-year period. At June 30, 1998, the unamortized balance of such
expenses amounted to $19,037.
10) 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.
11) SECURITY LENDING: Securities loans involve certain risks in the event a
borrower should fail financially, including delays or inability to recover
the lent securities or foreclose against the collateral. The investment
manager, under the general supervision of Managers Trust's Board of
Trustees, monitors the creditworthiness of the parties to whom the Series
makes security loans. The Series will not lend securities on which covered
call options have been written, or lend securities on terms which would
prevent investors from qualifying as a regulated investment
B-19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
company. Effective June 1, 1998, the Series entered into a Securities Lending
Agreement with Morgan Stanley & Co. Incorporated ("Morgan"). The Series
receives cash collateral equal to at least 100% of the current market value
of the loaned securities. The Series invests the cash collateral in the N&B
Securities Lending Quality Fund, LLC ("investment vehicle"). Income earned
on the investment vehicle is paid to Morgan monthly. The Series receives a
fee, payable monthly, negotiated by the Series and Morgan, based on the
number and duration of the lending transactions. At June 30, 1998, the value
of the securities loaned and the value of the collateral were $4,672,463 and
$4,769,589, respectively.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains Neuberger&Berman Management Incorporated ("N&B
Management") as its investment manager under a Management Agreement. For such
investment management services, the Series pays N&B Management a fee at the
annual rate of 0.55% of the first $250 million of the Series' average daily net
assets, 0.525% of the next $250 million, 0.50% of the next $250 million, 0.475%
of the next $250 million, 0.45% of the next $500 million, and 0.425% of average
daily net assets in excess of $1.5 billion.
All of the capital stock of N&B Management is owned by individuals who are
also principals of Neuberger& 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 $160.
NOTE C -- SECURITIES TRANSACTIONS:
During the six months ended June 30, 1998, there were purchase and sale
transactions (excluding short-term securities, financial futures contracts, and
forward foreign currency contracts) of $53,441,995 and $54,749,506,
respectively.
During the six months ended June 30, 1998, the Series had entered into
various contracts to deliver currencies at specified future dates. At June 30,
1998, open contracts were as follows:
<TABLE>
<CAPTION>
NET
CONTRACTS TO IN EXCHANGE SETTLEMENT UNREALIZED
SALES DELIVER FOR DATE VALUE APPRECIATION
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Swedish Krona 10,200,000 $1,286,254 7/23/98 $1,280,015 $6,239
</TABLE>
During the six months ended June 30, 1998, brokerage commissions on
securities transactions amounted to $78,684, of which Neuberger received
$27,780, and other brokers received $50,904.
NOTE D -- UNAUDITED FINANCIAL INFORMATION:
The financial information included in this interim report is taken from the
records of the Series without audit by independent auditors. Annual reports
contain audited financial statements.
B-20
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Period
from
Six May 1,
Months 1995(1)
Ended to
June 30, Year Ended December December
1998 31, 31,
(UNAUDITED) 1997 1996 1995
-----------------------------------------------
<S> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(2) .64%(3) .65% .65% .64%(3)
-----------------------------------------------
Net Expenses .64%(3) .65% .65% .64%(3)
-----------------------------------------------
Net Investment Income 2.23%(3) 2.46% 2.28% 2.36%(3)
-----------------------------------------------
Portfolio Turnover Rate 34% 103% 87% 55%
-----------------------------------------------
Average Commission Rate Paid $0.0550 $0.0388 $0.0572 $0.0451
-----------------------------------------------
Net Assets, End of Period (in millions) $179.9 $162.0 $173.5 $203.3
-----------------------------------------------
</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-21
