<PAGE>
PARTNERS PORTFOLIO
NEUBERGER&BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1997
NBAMT0201297
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Partners Portfolio
PORTFOLIO CO-MANAGERS MICHAEL KASSEN AND ROBERT GENDELMAN FOCUS ON OUT OF
FAVOR LARGE-CAP STOCKS AND MID-SIZED COMPANIES LESS WIDELY FOLLOWED BY WALL
STREET ANALYSTS. THEY ARE PARTICULARLY PARTIAL TO "FALLEN ANGELS" -- GROWTH
STOCKS THAT HAVE EXPERIENCED TEMPORARY SETBACKS, BUT WHOSE LONGER TERM
FUNDAMENTAL OUTLOOK REMAINS STRONG. THE PORTFOLIO MANAGEMENT TEAM VIEWS STOCKS
AS PIECES OF BUSINESSES THEY WOULD LIKE TO OWN RATHER THAN PIECES OF PAPER TO
TRADE BASED ON SHORT TERM PRICE FLUCTUATIONS. THE GOAL IS TO FIND QUALITY
COMPANIES TRADING AT A DISCOUNT TO THEIR INTRINSIC ECONOMIC VALUE.
1997 was yet another good year for equity investors and for the AMT Partners
Portfolio. The Portfolio's holdings in the finance sector, (banking, finance and
insurance companies) performed particularly well. Returns were also buoyed by
positions in media and cable television companies, which had been portfolio
laggards in 1996. Our airline stock holdings also contributed positively to the
performance of the Portfolio. Our technology holdings were both a blessing and a
curse, with some very big winners and some substantial losers as well. We were
also under-weighted in the pharmaceuticals sector and therefore, failed to
benefit significantly from a strong move in an industry we generally like, but
believed to be too richly priced by our value standards.
Looking ahead to 1998, we still see pockets of value in the market. However,
with the S&P "500"* doubling over the last three years, the pickings have gotten
slimmer. The Portfolio now has a cyclical slant with positions in the autos,
papers, chemicals, steels and retailers -- industries we believe offer good
absolute and relative value. We trimmed our technology holdings in the summer of
1997 and rebuilt positions after the group got hit hard in the Fall. At fiscal
year end, technology represented approximately 4.7% of the portfolio. Although
financial stocks have done very well in recent years and we have taken some
profits on some of our biggest winners, we still see opportunities in selected
industry laggards.
As is our custom, we will discuss several portfolio holdings at year end 1997
that demonstrate our value oriented discipline. Be aware, we can change our
opinion on these and all other portfolio holdings if future developments warrant
it and may sell them at any time.
With a projected $5 billion in sales in 1998 and a market capitalization
approximating $7 billion, Praxair is one of the largest global players in the
industrial gas business. This sounds like dull fare, but industrial gas
suppliers serve solid if not spectacular growth industries such as beverages,
electronics, metals manufacturing and medical services. Historically, the major
industrial gas companies have recorded unit volume gains exceeding world GDP and
posted superior earnings growth. We believe this will continue to be a
legitimate growth business.
Praxair stock got hit hard this fall, in our opinion, primarily due to
concerns over its exposure in Brazil (Praxair owns 70% of White Martins, the
country's dominant industrial gas company). Although Praxair has been guiding
1998 earnings estimates down, earnings should still advance over 1997 levels.
Beginning in 1999, we believe Praxair's earnings will recover toward their
historic mid-teens growth rate. We purchased Praxair at about 15 times our 1998
earnings estimates -- well below the S&P "500" 's P/E multiple of 20. In our
eyes, that is an opportunistic valuation for one of the leading companies in an
established growth industry.
In 1997, we took some profits in bank stocks that we believe had become
somewhat richly priced after the group's strong gains in recent years. Longer
term, we still like the banking sector and believe some of the laggards, most
A-2
<PAGE>
notably Chase Manhattan, are still attractively priced. Chase Manhattan is
improving operations, generating significant excess capital and appears
committed to using excess cash to continue to repurchase shares. At year end
1997, Chase stock was trading at 11 times our 1998 earnings estimates -- a
valuation near the low end of the money center bank group. We believe it
deserves and will receive a better appraisal in the year ahead.
In closing, we are pleased with the Portfolio's performance in 1997. Looking
ahead, we believe our stock specific value oriented discipline is particularly
well suited to meet the challenges and opportunities the market will present.
Sincerely,
[SIG] [SIG]
Michael Kassen and Robert Gendelman
PORTFOLIO CO-MANAGERS
*The S&P "500" Index is an unmanaged index generally considered to be
representative of stock market activity. Please note that indices do not take
into account any fees and expenses of investing in the individual securities
that they track, and that individuals cannot invest directly in any index. Data
about the performance of these indices are prepared or obtained by
Neuberger&Berman Management Inc.-Registered Trademark- and include reinvestment
of all dividend and capital gain distributions. The Portfolio invests in many
securities not included in the 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.
A-3
<PAGE>
COMPARISON OF A $10,000 INVESTMENT
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Partners Portfolio
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S&P "500" PARTNERS PORTFOLIO
<S> <C> <C>
3/22/94 $10,000 $10,000
12/31/94 $10,085 $9,770
1995 $13,861 $13,333
1996 $17,035 $17,276
1997 $22,711 $22,674
Average Annual Total Return(1)
PARTNERS PORTFOLIO S&P "500"(2)
1 YEAR +31.25% +33.32%
LIFE OF FUND +24.18% +24.25%
</TABLE>
The inception date of Neuberger&Berman Advisers Management Trust Partners
Portfolio-SM- (the "Fund") is 3/22/94.
1. "Total Return" includes reinvestment of all income dividends and capital gain
distributions. Results represent past performance and do not guarantee future
results. The value of an investment in the Fund and the return on the investment
both will fluctuate, and redemption proceeds may be higher or lower than an
investor's original cost.
2. The S&P "500" Index is an unmanaged index generally considered to be
representative of overall stock market activity. Please note that indices do not
take into account any fees and expenses of investing in the individual
securities that they track, and that individuals cannot invest directly in any
index. Data about the performance of this index are prepared or obtained by
Neuberger&Berman Management Inc. 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
- --------------------------------------------------------------------------------
Partners Portfolio
<TABLE>
<CAPTION>
December 31,
1997
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $1,626,673,232
Receivable for Trust shares sold 7,697,283
Deferred organization costs (Note A) 3,435
--------------
1,634,373,950
--------------
LIABILITIES
Payable for Trust shares redeemed 1,043,418
Payable to administrator (Note B) 402,436
Accrued expenses 92,736
--------------
1,538,590
--------------
NET ASSETS at value $1,632,835,360
--------------
NET ASSETS consist of:
Par value $ 79,263
Paid-in capital in excess of par value 1,272,326,509
Accumulated undistributed net investment income 6,693,210
Accumulated net realized gains on investment 207,455,414
Net unrealized appreciation in value of investment 146,280,964
--------------
NET ASSETS at value $1,632,835,360
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares authorized) 79,263,281
--------------
NET ASSET VALUE, offering and redemption price per share $20.60
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF OPERATIONS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Partners Portfolio
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1997
-------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 16,897,738
-------------
Expenses:
Administration fee (Note B) 3,460,398
Shareholder reports 128,241
Legal fees 54,913
Trustees' fees and expenses 52,427
Auditing fees 15,303
Custodian fees 10,000
Amortization of deferred organization and initial offering
expenses (Note A) 2,810
Registration and filing fees 443
Miscellaneous 4,607
Expenses from Series (Notes A & B) 6,242,676
-------------
Total expenses 9,971,818
Expenses reduced by custodian fee expense offset arrangement
(Note B) (2,134)
-------------
Total net expenses 9,969,684
-------------
Net investment income 6,928,054
-------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM SERIES (NOTE A)
Net realized gain on investment securities 208,112,368
Change in net unrealized appreciation of investment securities 75,121,916
-------------
Net gain on investments from Series (Note A) 283,234,284
-------------
Net increase in net assets resulting from operations $290,162,338
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Partners Portfolio
<TABLE>
<CAPTION>
Year Ended
December 31,
1997 1996
--------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 6,928,054 $ 2,352,194
Net realized gain on investments from Series (Note A) 208,112,368 37,773,397
Change in net unrealized appreciation of investments from Series
(Note A) 75,121,916 65,242,529
--------------------------------
Net increase in net assets resulting from operations 290,162,338 105,368,120
--------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (2,479,825) (753,971)
Net realized gain on investments (38,189,299) (9,424,638)
--------------------------------
Total distributions to shareholders (40,669,124) (10,178,609)
--------------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 1,115,192,751 579,349,003
Proceeds from reinvestment of dividends and distributions 40,669,124 10,178,609
Payments for shares redeemed (477,954,508) (186,824,176)
--------------------------------
Net increase from Trust share transactions 677,907,367 402,703,436
--------------------------------
NET INCREASE IN NET ASSETS 927,400,581 497,892,947
NET ASSETS:
Beginning of year 705,434,779 207,541,832
--------------------------------
End of year $1,632,835,360 $ 705,434,779
--------------------------------
Accumulated undistributed net investment income at end of year $ 6,693,210 $ 2,244,981
--------------------------------
NUMBER OF TRUST SHARES:
Sold 60,336,693 38,994,756
Issued on reinvestment of dividends and distributions 2,479,824 757,337
Redeemed (26,354,418) (12,638,219)
--------------------------------
Net increase in shares outstanding 36,462,099 27,113,874
--------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Partners Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Partners 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 Partners 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
- --------------------------------------------------------------------------------
Partners 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 $3,435.
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 .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 year ended December 31,
1997, 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 $2,134.
NOTE C -- INVESTMENT TRANSACTIONS:
During the year ended December 31, 1997, additions and reductions in the
Fund's investment in its Series amounted to $979,036,741 and $325,676,040,
respectively.
B-6
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Partners 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 $ 16.48 $13.23 $ 9.77 $10.00
--------------------------------------------------
Income From Investment Operations
Net Investment Income .12 .10 .11 .03
Net Gains or Losses on Securities (both realized and
unrealized) 4.82 3.69 3.43 (.26)
--------------------------------------------------
Total From Investment Operations 4.94 3.79 3.54 (.23)
--------------------------------------------------
Less Distributions
Dividends (from net investment income) (.05) (.04) (.01) --
Distributions (from net capital gains) (.77) (.50) (.07) --
--------------------------------------------------
Total Distributions (.82) (.54) (.08) --
--------------------------------------------------
Net Asset Value, End of Year $ 20.60 $16.48 $13.23 $ 9.77
--------------------------------------------------
Total Return(4) +31.25% +29.57% +36.47% -2.30%(5)
--------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $1,632.8 $705.4 $207.5 $ 9.4
--------------------------------------------------
Ratio of Gross Expenses to Average Net Assets(6) .86% .95% 1.09% --
--------------------------------------------------
Ratio of Net Expenses to Average Net Assets .86% .95% 1.09% 1.75%(7)
--------------------------------------------------
Ratio of Net Investment Income to Average Net Assets .60% .60% .97% .45%(7)
--------------------------------------------------
Portfolio Turnover Rate(8) -- -- 76% 90%
--------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-7
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger&Berman Advisers Management Trust December 31, 1997
- --------------------------------------------------------------------------------
Partners 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. 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) Annualized.
8) 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 Partners 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 Partners Portfolio
We have audited the accompanying statement of assets and liabilities of
Partners 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
Partners Portfolio of Neuberger&Berman Advisers Management Trust at December 31,
1997, the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and the financial
highlights for each of the periods indicated therein, in conformity with
generally accepted accounting principles.
[SIGNATURE]
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 26, 1998
B-9
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ---------- -------------
<C> <S> <C>
COMMON STOCKS (97.2%)
AEROSPACE (1.3%)
430,000 Boeing Co. $ 21,043,125
-------------
AIRLINES (2.7%)
435,000 Continental Airlines Class B 20,934,375(2)
80,000 Delta Air Lines 9,520,000
530,000 Southwest Airlines 13,051,250
-------------
43,505,625
-------------
APPAREL (0.8%)
321,800 Gucci Group-New York 13,475,375
-------------
AUTO/TRUCK REPLACEMENT PARTS (1.9%)
100,000 Cummins Engine 5,906,250
287,300 Goodyear Tire & Rubber 18,279,462
150,000 Lear Corp. 7,125,000(2)
-------------
31,310,712
-------------
AUTOMOBILE MANUFACTURING (1.5%)
697,200 Chrysler Corp. 24,532,725
-------------
BANKING & FINANCIAL (8.7%)
200,000 Capital One Financial 10,837,500
248,800 Chase Manhattan 27,243,600
301,000 CIT Group 9,707,250(2)
157,200 CITICORP 19,875,975
599,800 Countrywide Credit Industries 25,716,425
634,700 Credit Suisse Group ADR 24,594,625
634,000 Nationwide Financial Services 22,903,250
-------------
140,878,625
-------------
BUILDING MATERIALS, CONSTRUCTION & REFURNISHING (0.8%)
273,700 USG Corp. 13,411,300(2)
-------------
BUSINESS SERVICES (0.8%)
531,366 ACNielsen Corp. 12,952,046(2)
-------------
CHEMICALS (4.3%)
180,900 Dow Chemical 18,361,350
440,000 duPont 26,427,500
500,000 Engelhard Corp. 8,687,500
498,500 Morton International 17,135,937
-------------
70,612,287
-------------
<CAPTION>
Number Market
of Shares Value(1)
- ---------- -------------
<C> <S> <C>
COMMUNICATIONS (0.7%)
289,000 Valassis Communications $ 10,693,000(2)
-------------
CONSUMER GOODS & SERVICES (0.5%)
222,900 Nike, Inc. 8,748,825
-------------
DIVERSIFIED (1.9%)
400,000 Kansas City Southern Industries 12,700,000
467,100 Tenneco Inc. 18,450,450
-------------
31,150,450
-------------
ELECTRONICS (3.1%)
450,000 KLA-Tencor 17,381,250(2)
494,600 Raychem Corp. 21,298,712
234,400 Sundstrand Corp. 11,807,900
-------------
50,487,862
-------------
ENERGY (1.8%)
436,900 CalEnergy Co. 12,560,875(2)
547,900 PG&E Corp. 16,676,706
-------------
29,237,581
-------------
ENTERTAINMENT (2.4%)
808,600 Mirage Resorts 18,395,650(2)
331,500 Time Warner 20,553,000
-------------
38,948,650
-------------
FINANCIAL SERVICES (0.5%)
200,000 ING Groep N.V. ADR 8,462,500
-------------
FOOD & TOBACCO (4.2%)
599,600 Anheuser-Busch 26,382,400
443,400 Philip Morris 20,091,562
600,000 UST, Inc. 22,162,500
-------------
68,636,462
-------------
GAS (1.7%)
611,400 Praxair, Inc. 27,513,000
-------------
HEALTH CARE (5.2%)
367,100 Amgen Inc. 19,869,287(2)
479,900 Biogen, Inc. 17,456,363(2)
856,200 Columbia/HCA Healthcare 25,364,925
259,918 Novartis AG ADR 21,053,358
-------------
83,743,933
-------------
</TABLE>
B-10
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ---------- -------------
<C> <S> <C>
INDUSTRIAL GOODS & SERVICES (5.3%)
822,800 AK Steel Holding $ 14,553,275
495,600 Corning Inc. 18,399,150
611,200 Crown Cork & Seal 30,636,400
607,000 Owens-Illinois 23,028,063(2)
-------------
86,616,888
-------------
INSURANCE (5.9%)
382,200 Allstate Corp. 34,732,425
355,000 EXEL Ltd. 22,498,125
80,000 Progressive Corp. 9,590,000
544,950 Travelers Group 29,359,181
-------------
96,179,731
-------------
LODGING (0.5%)
400,000 La Quinta Inns 7,725,000
-------------
MEDIA (2.2%)
257,100 A.H. Belo 14,429,738
650,052 Comcast Corp. Class A Special 20,517,266
-------------
34,947,004
-------------
OIL & GAS (9.1%)
562,600 Cabot Corp. 15,541,825
1,673,900 EEX Corp. 15,169,719(2)
301,500 ENI ADR 17,204,344
775,100 Enron Corp. 32,215,094
1,836,800 Gulf Canada Resources 12,857,600(2)
521,300 Noble Affiliates 18,375,825
830,304 Union Pacific Resources Group 20,134,872
453,900 YPF SA ADR 15,517,706
-------------
147,016,985
-------------
PAPER & FOREST PRODUCTS (2.3%)
544,800 Mead Corp. 15,254,400
455,000 Weyerhaeuser Corp. 22,323,438
-------------
37,577,838
-------------
PUBLISHING & BROADCASTING (4.7%)
420,700 E.W. Scripps 20,377,656
349,700 Knight-Ridder 18,184,400
<CAPTION>
Number Market
of Shares Value(1)
- ---------- -------------
<C> <S> <C>
471,800 R.R. Donnelley $ 17,574,550
491,700 Young Broadcasting 19,053,375(2)
-------------
75,189,981
-------------
RAILROADS (1.9%)
330,000 Burlington Northern Santa Fe 30,669,375
-------------
REAL ESTATE (5.8%)
805,000 Catellus Development 16,100,000(2)
1,426,100 Host Marriott 27,987,213
833,200 INMC Mortgage Holdings 19,528,125
643,100 Security Capital U.S. Realty 9,132,020(2)(3)
378,000 Starwood Lodging Trust 21,876,750
-------------
94,624,108
-------------
RESTAURANTS (1.4%)
489,300 McDonald's Corp. 23,364,075
-------------
RETAILING (3.1%)
369,100 Harcourt General 20,208,225
510,000 Sears, Roebuck 23,077,500
200,100 Wal-Mart Stores 7,891,444
-------------
51,177,169
-------------
RETAILING & APPAREL (1.5%)
560,000 Costco Cos. 24,990,000(2)
-------------
SPECIALTY CHEMICAL (0.7%)
350,000 Millipore Corp. 11,878,125
-------------
STEEL (0.7%)
243,600 Nucor Corp. 11,768,925
-------------
TECHNOLOGY (4.7%)
144,200 3Com Corp. 5,037,988(2)
450,000 Komag, Inc. 6,693,750(2)
617,200 Lexmark International Group 23,453,600(2)
520,000 National Semiconductor 13,487,500(2)
500 Siebel Systems 20,906(2)
475,000 Texas Instruments 21,375,000
350,000 Western Digital 5,621,875(2)
-------------
75,690,619
-------------
</TABLE>
B-11
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ---------- -------------
<C> <S> <C>
UTILITIES (2.6%)
589,500 Edison International $ 16,027,031
870,000 Unicom Corp. 26,752,500
-------------
42,779,531
-------------
TOTAL COMMON STOCKS (COST $1,435,215,779) 1,581,539,437
-------------
PREFERRED STOCKS (0.0%)
121,100 Fresenius Medical Care, Class D (COST $24,711) 8,477(2)
-------------
<CAPTION>
Principal
Amount
- ----------
<C> <S> <C>
U.S. TREASURY SECURITIES (2.7%)
$44,100,000 U.S. Treasury Bills, 4.50%, due 2/26/98 (COST
$43,791,300) 43,764,840
-------------
<CAPTION>
Principal Market
Amount Value(1)
- ---------- -------------
<C> <S> <C>
SHORT-TERM CORPORATE NOTES (1.4%)
$22,310,000 General Electric Capital Corp., 5.95%, due 1/2/98
(COST $22,310,000) $ 22,310,000(4)
-------------
TOTAL INVESTMENTS (101.3%) (COST $1,501,341,790) 1,647,622,754(5)
Liabilities, less cash, receivables and other
assets [(1.3%)] (20,949,521)
-------------
TOTAL NET ASSETS (100.0%) $1,626,673,233
-------------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-12
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Partners Investments
1) Investment securities of the Series are valued at the latest sales price;
securities for which no sales were reported, unless otherwise noted, are
valued at the mean between the closing bid and asked prices. The Series
values all other securities by a method that the trustees of Advisers
Managers Trust believe accurately reflects fair value. Foreign security
prices are furnished by independent quotation services expressed in local
currency values. Foreign security prices are translated from the local
currency into U.S. dollars using current exchange rates. Short-term debt
securities with less than 60 days until maturity may be valued at cost which,
when combined with interest earned, approximates market value.
2) Non-income producing security.
3) 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 December 31, 1997, this
security amounted to $9,132,020 or 0.6% of net assets.
4) At cost, which approximates market value.
5) At December 31, 1997, the cost of investments for Federal income tax purposes
was $1,503,440,839. Gross unrealized appreciation of investments was
$193,881,527 and gross unrealized depreciation of investments was
$49,699,612, resulting in net unrealized appreciation of $144,181,915, based
on cost for Federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
B-13
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
December 31,
1997
--------------
<S> <C>
ASSETS
Investments in securities, at market value* (Note A) -- see
Schedule of Investments $1,647,622,754
Cash 26,517
Dividends and interest receivable 1,911,157
Receivable for securities sold 552,482
Prepaid expenses and other assets 22,108
Deferred organization costs (Note A) 12,272
--------------
1,650,147,290
--------------
LIABILITIES
Payable for collateral on securities loaned (Note A) 22,302,000
Payable to investment manager (Note B) 656,857
Payable for securities purchased 373,320
Accrued expenses 141,880
--------------
23,474,057
--------------
NET ASSETS Applicable to Investors' Beneficial Interests $1,626,673,233
--------------
NET ASSETS consist of:
Paid-in capital $1,480,392,269
Net unrealized appreciation in value of investment securities 146,280,964
--------------
NET ASSETS $1,626,673,233
--------------
*Cost of investments $1,501,341,790
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-14
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1997
-------------
<S> <C>
INVESTMENT INCOME
Income:
Dividend income $ 14,205,778
Interest income 2,734,073
Foreign taxes withheld (Note A) (42,113)
-------------
Total income 16,897,738
-------------
Expenses:
Investment management fee (Note B) 5,816,710
Custodian fees (Note B) 251,252
Auditing fees 56,848
Trustees' fees and expenses 53,260
Legal fees 37,882
Insurance expense 11,046
Accounting fees 10,000
Amortization of deferred organization and initial offering
expenses (Note A) 5,263
Miscellaneous 415
-------------
Total expenses 6,242,676
Expenses reduced by custodian fee expense offset arrangement
(Note B) (2,134)
-------------
Total net expenses 6,240,542
-------------
Net investment income 10,657,196
-------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment securities sold 208,112,368
Change in net unrealized appreciation of investment securities 75,121,916
-------------
Net gain on investments 283,234,284
-------------
Net increase in net assets resulting from operations $293,891,480
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Partners Investments
<TABLE>
<CAPTION>
Year Ended
December 31,
1997 1996
--------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 10,657,196 $ 3,735,543
Net realized gain on investments 208,112,368 37,773,397
Change in net unrealized appreciation of investments 75,121,916 65,242,529
--------------------------------
Net increase in net assets resulting from operations 293,891,480 106,751,469
--------------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Additions 979,036,741 559,229,295
Reductions (325,676,040) (128,962,782)
--------------------------------
Net increase in net assets resulting from transactions in
investors' beneficial interests 653,360,701 430,266,513
--------------------------------
NET INCREASE IN NET ASSETS 947,252,181 537,017,982
NET ASSETS:
Beginning of year 679,421,052 142,403,070
--------------------------------
End of year $1,626,673,233 $ 679,421,052
--------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-16
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Partners Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Partners 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 "1940 Act").
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
2) PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the Series' Schedule of Investments.
3) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the Series
becomes aware of the dividends. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, including original issue discount, where
applicable, and accretion of discount on short-term investments, is recorded
on the accrual basis. Realized gains and losses from securities transactions
are recorded on the basis of identified cost.
4) FEDERAL INCOME TAXES: Managers Trust intends to comply with the requirements
of the Internal Revenue Code. Each series of Managers Trust also intends to
conduct its operations so that each of its investors will be able to qualify
as a regulated investment company. Each series will be treated as a
partnership for Federal income tax purposes and is therefore not subject to
Federal income tax.
5) FOREIGN TAXES: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
6) 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 $12,272.
7) 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.
8) SECURITY LENDING: Security 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 make security
loans. The Series will not lend securities on which covered call options have
been written, or lend securities on terms which would prevent each of their
investors from qualifying as a regulated investment company. Security loans
to Neuberger&Berman, LLC ("Neuberger"), the Series' principal broker and
sub-adviser, are made in accordance with an exemptive order issued by the
Securities and Exchange Commission under the 1940 Act. The Series receives
cash as collateral against the lent securities, which must be maintained at
not less than 100% of the market value of the lent securities during the
period of the loan. The Series receives income earned on the lent securities
and a portion of the income earned on the cash collateral.
B-17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust December 31, 1997
- --------------------------------------------------------------------------------
AMT Partners Investments
During the year ended December 31, 1997, the Series lent securities to
Neuberger. At December 31, 1997, the value of the securities loaned and the
value of the collateral amounted to $21,876,500 and $22,302,000,
respectively.
9) REPURCHASE AGREEMENTS: The Series may enter into repurchase agreements with
institutions that the Series' investment manager has determined are
creditworthy. Each repurchase agreement is recorded at cost. The Series
requires that the securities purchased in a repurchase transaction be
transferred to the custodian in a manner sufficient to enable the Series to
obtain those securities in the event of a default under the repurchase
agreement. The Series monitors, on a daily basis, the value of the securities
transferred to ensure that their value, including accrued interest, is
greater than amounts owed to the Series under each such repurchase agreement.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains Neuberger&Berman Management Incorporated ("N&B
Management") as its investment manager under a Management Agreement. For such
investment management services, the Series pays N&B Management a fee at the
annual rate of .55% of the first $250 million of the Series' average daily net
assets, .525% of the next $250 million, .50% of the next $250 million, .475% of
the next $250 million, .45% of the next $500 million, and .425% of average daily
net assets in excess of $1.5 billion.
All of the capital stock of N&B Management is owned by individuals who are
also principals of Neuberger, 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 $2,134.
NOTE C -- SECURITIES TRANSACTIONS:
During the year ended December 31, 1997, there were purchase and sale
transactions (excluding short-term securities) of $1,840,546,104 and
$1,169,594,265, respectively.
During the year ended December 31, 1997, brokerage commissions on securities
transactions amounted to $3,535,761, of which Neuberger received $2,252,539, and
other brokers received $1,283,222.
In addition, Neuberger's share of the total interest income earned for the
year ended December 31, 1997, from the collateralization of securities loaned to
or through Neuberger was $75,760.
B-18
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Partners 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) .54% .60% .67%(3)
-----------------------------------
Net Expenses .54% .60% .67%(3)
-----------------------------------
Net Investment Income .92% .95% 1.34%(3)
-----------------------------------
Portfolio Turnover Rate 106% 118% 98%
-----------------------------------
Average Commission Rate Paid $0.0560 $0.0583 $0.0594
-----------------------------------
Net Assets, End of Year (in millions) $1,626.7 $679.4 $142.4
-----------------------------------
</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-19
<PAGE>
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Trustees of
Advisers Managers Trust and
Owners of Beneficial Interest of AMT Partners Investments
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of AMT Partners 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
and brokers or other appropriate auditing procedures where replies from brokers
were not received. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our 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
Partners 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-20
