<PAGE>
GUARDIAN PORTFOLIO
NEUBERGER BERMAN
ADVISERS MANAGEMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1999
NMATR8070699
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger Berman Advisers Management Trust June 30, 1999
- --------------------------------------------------------------------------------
Guardian Portfolio
KEVIN RISEN & RICK WHITE, PORTFOLIO CO-MANAGERS
The portfolio outperformed its benchmarks, the Russell
1000-Registered Trademark- Value Index and the S&P 500 Index, during the first
six months of 1999. The portfolio rose 17.25%, while the Russell 1000 Value rose
12.87% and the S&P 500* rose 12.36%. The portfolio co-managers, Kevin Risen and
Rick White, attribute the portfolio's performance to their highly disciplined
approach to stock selection and risk management.
During the first quarter of 1999, the portfolio co-managers focused on
implementing the risk management system introduced when White joined the
management team in late 1998. This renewed focus on risk caused the managers to
harvest gains in stocks that could no longer be considered undervalued after
last fall's market rally. The proceeds from these sales were redeployed to other
stocks and market sectors that the managers regarded as undervalued. For
example, taking profits in the technology sector helped trim some of those
positions, which proved timely when many technology stocks subsequently
declined. Risen and White also increased the portfolio's exposure to the energy
sector in the first part of the year, which benefited the overall performance of
the portfolio when oil prices rose in the second quarter.
During the second quarter of 1999, the value stock universe performed well.
This resurgence in performance was due to a distinct change in climate from all
of 1998 and early 1999 when the performance of growth based strategies led the
markets. One catalyst behind this shift toward value was the improving global
economic environment. The value universe of stocks has more cyclical business
sensitivity than the growth universe of companies. We believe that improving
global economies should continue to support value-based strategies such as those
employed by the portfolio.
Stocks in the energy, capital goods and financials sectors performed strongly
in the second quarter.
During the six month period, the portfolio also received positive
contributions from individual holdings in a number of different sectors.
Holdings of auto parts manufacturer Lucas Varity, telecommunications company
AirTouch (both of which were sold during the period) and financial services firm
Bank Boston (1.0% of assets as of June 30, 1999) were targets of acquisitions
early in the reporting period.
During the second quarter, waste management company Republic Services (3.6%)
saw its stock price rise in response to strong fundamentals in a consolidating
industry. In the health care sector, Wellpoint (3.3%) and Aetna (2.9%) benefited
from their leadership positions. Electronic manufacturing outsourcing company
SCI Systems (0.8%) rebounded strongly after it was acquired by the fund. And
consumer services company Cendant (1.4%) rebounded as it re-positioned and
sold-off some of its business units and allocated the proceeds to a shareholder
enhancing, stock buy-back program.
Looking forward, the portfolio co-managers are encouraged by the broadening
of the stock market during the second quarter, which stands in stark contrast to
the remarkably narrow market of previous quarters. Because Risen and White have
continued to seek fundamentally strong companies that have good earnings and are
selling at attractive valuations, they remain optimistic about the portfolio's
value-based investment strategy.
*12.93% and 33.86% were the average annual total returns for the 1-year and
since inception (11/03/97) periods ended June 30, 1999. Neuberger Berman
Management Inc. has agreed to absorb certain expenses of the Portfolio. Without
this arrangement, which is subject to
A-2
<PAGE>
change, the total returns of the Portfolio would be less. Total return includes
reinvestment of dividends and capital gain distributions. Performance data
quoted represents past performance, which is no guarantee of future results.
The investment return and principal value of an investment will fluctuate so
that the shares, when redeemed, may be worth more or less than their original
cost. The performance information does not reflect separate account and
insurance company fees and expenses.
The S&P 500 Index is an unmanaged index generally considered representative of
stock market activity. The Russell 1000-Registered Trademark-Index measures the
performance of the 1,000 largest companies in the Russell
3000-Registered Trademark- Index (which measures the performance of the 3,000
largest U.S. companies based on total market capitalization). The Russell 1000
Index represents approximately 89% of the total market capitalization of the
Russell 3000 Index. The Russell 1000 Value Index measures the performance of
those Russell 1000 companies with lower price-to-book ratios and lower
forecasted growth values.
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 in any index. Data about the performance of these indices are
prepared or obtained by Neuberger Berman Management Inc. and include
reinvestment of all dividends and capital gain distributions. The Portfolio may
invest in many securities not included in the above-described index.
The composition, industries and holdings of the Portfolio are subject to
change.
The investments for the Portfolio are managed by the same portfolio manager(s)
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 of the
Portfolio can be expected to vary from those of the other mutual funds.
Shares of the separate Portfolios of Neuberger Berman Advisers Management Trust
are sold only through the currently effective prospectus and are not available
to the general public. Shares of the AMT Portfolios may be purchased only by
life insurance companies to be used with their separate accounts that fund
variable annuity and variable life insurance policies and by qualified pension
and retirement plans.
A-3
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Guardian Portfolio
<TABLE>
<CAPTION>
June 30,
1999
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 134,124,758
Receivable for Trust shares sold 916,513
Deferred organization costs (Note A) 7,260
--------------
135,048,531
--------------
LIABILITIES
Payable for Trust shares redeemed 435,967
Accrued expenses 49,096
Payable to administrator -- net (Note B) 22,372
--------------
507,435
--------------
NET ASSETS at value $ 134,541,096
--------------
NET ASSETS consist of:
Par value $ 8,322
Paid-in capital in excess of par value 119,880,175
Accumulated undistributed net investment
income 357,999
Accumulated net realized losses on
investment (787,922)
Net unrealized appreciation in value of
investment 15,082,522
--------------
NET ASSETS at value $ 134,541,096
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 8,321,938
--------------
NET ASSET VALUE, offering and redemption price per
share $16.17
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-1
<PAGE>
STATEMENT OF OPERATIONS
Neuberger Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Guardian Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1999
(UNAUDITED)
------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 896,070
------------
Expenses:
Administration fee (Note B) 151,845
Shareholder reports 32,846
Custodian fees 4,960
Legal fees 3,433
Trustees' fees and expenses 2,716
Amortization of deferred organization and
initial offering expenses (Note A) 1,077
Auditing fees 1,006
Miscellaneous 875
Expenses from Series (Notes A & B) 328,749
------------
Total expenses 527,507
Expenses reimbursed by administrator and
reduced by custodian fee expense offset
arrangement (Note B) (20,675)
------------
Total net expenses 506,832
------------
Net investment income 389,238
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS FROM
SERIES (NOTE A)
Net realized gain on investment securities 3,340,168
Net realized gain on financial futures
contracts 1,709,231
Change in net unrealized appreciation of
investment securities and financial futures
contracts 10,901,953
------------
Net gain on investments from Series (Note
A) 15,951,352
------------
Net increase in net assets resulting from
operations $16,340,590
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Guardian Portfolio
<TABLE>
<CAPTION>
Six Months
Ended Year
June 30, Ended
1999 December 31,
(UNAUDITED) 1998
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 389,238 $ 290,899
Net realized gain (loss) on
investments from Series (Note A) 5,049,399 (5,836,131)
Change in net unrealized
appreciation of investments from
Series (Note A) 10,901,953 4,162,581
-----------------------------
Net increase (decrease) in net
assets resulting from operations 16,340,590 (1,382,651)
-----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (320,622) (1,976)
-----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 64,391,606 109,277,613
Proceeds from reinvestment of
dividends 320,622 1,976
Payments for shares redeemed (20,303,087) (34,350,295)
-----------------------------
Net increase from Trust share
transactions 44,409,141 74,929,294
-----------------------------
NET INCREASE IN NET ASSETS 60,429,109 73,544,667
NET ASSETS:
Beginning of period 74,111,987 567,320
-----------------------------
End of period $ 134,541,096 $ 74,111,987
-----------------------------
Accumulated undistributed net
investment income at end of period $ 357,999 $ 289,382
-----------------------------
NUMBER OF TRUST SHARES:
Sold 4,298,087 7,993,108
Issued on reinvestment of dividends 22,951 162
Redeemed (1,353,193) (2,693,080)
-----------------------------
Net increase in shares outstanding 2,967,845 5,300,190
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger Berman Advisers Management Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Guardian Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Guardian Portfolio (the "Fund") is a separate operating series of
Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware business
trust organized pursuant to a Trust Instrument dated May 23, 1994. The Trust
is currently comprised of eight separate operating series (the "Funds"). The
Trust is registered as a diversified, open-end management investment company
under the Investment Company Act of 1940, as amended, and its shares are
registered under the Securities Act of 1933, as amended. The trustees of the
Trust may establish additional series or classes of shares without the
approval of shareholders.
The assets of each fund belong only to that fund, and the liabilities of
each fund are borne solely by that fund and no other.
The Fund seeks to achieve its investment objective by investing all of its
net investable assets in AMT Guardian Investments (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, 1999). 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 as indicated in the notes
following the Series' Schedule of Investments.
3) TAXES: The Funds are treated as separate entities for U.S. 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 U.S.
Federal income tax purposes as capital loss carryforwards) sufficient to
relieve it from all, or substantially all, U.S. Federal income taxes.
Accordingly, the Fund paid no U.S. Federal income taxes and no provision for
U.S. 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 ($4,490,172, expiring in 2006, determined as of December 31,
1998), 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) ORGANIZATION EXPENSES: Expenses incurred by the Fund in connection with its
organization are being amortized on a straight-line basis over a five-year
period. At June 30, 1999, the unamortized balance of such expenses amounted
to $7,260.
B-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger Berman Advisers Management Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Guardian Portfolio
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.
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 Inc. ("Management") as its
administrator under an Administration Agreement ("Agreement"). Pursuant to this
Agreement the Fund pays 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.
Management has voluntarily undertaken to reimburse the Fund for its operating
expenses plus its pro rata share of its Series' operating expenses (including
the fees payable to Management, but excluding interest, taxes, brokerage
commissions, extraordinary expenses, and transaction costs) ("Operating
Expenses") which exceed, in the aggregate, 1.00% per annum of the Fund's average
daily net assets (the "Expense Limitation"). This undertaking is subject to
termination by Management upon at least 60 days' prior written notice to the
Fund. For the six months ended June 30, 1999, such excess expenses amounted to
$20,010. The Fund has agreed to repay Management through December 31, 1999, for
its excess Operating Expenses previously reimbursed by Management, so long as
its annual Operating Expenses during that period do not exceed its Expense
Limitation.
All of the capital stock of 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 Management.
The Series has an expense offset arrangement in connection with its custodian
contract. In addition, in connection with the Securities Lending Agreement
between the Series and Morgan Stanley & Co. Incorporated ("Morgan"), Morgan has
agreed to reimburse the Series for transaction costs incurred on security
lending transactions charged by the custodian through May 31, 1999. The impact
of these arrangements, respectively, reflected in the Statement of Operations
under the caption Expenses from Series, was a reduction of $473 and $192.
NOTE C -- INVESTMENT TRANSACTIONS:
During the six months ended June 30, 1999, additions and reductions in the
Fund's investment in its Series amounted to $57,305,357 and $13,920,482,
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
- --------------------------------------------------------------------------------
Guardian Portfolio(1)
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.(2)
<TABLE>
<CAPTION>
Period
from
November
Six 3,
Months Year 1997(3)
Ended Ended to
June 30, December December
1999 31, 31,
(UNAUDITED) 1998 1997
----------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $13.84 $10.52 $10.00
----------------------------------
Income from Investment Operations
Net Investment Income .06 .11 .01
Net Gains or Losses on Securities
(both realized and unrealized) 2.32 3.22(4) .51
----------------------------------
Total From Investment Operations 2.38 3.33 .52
----------------------------------
Less Distributions
Dividends (from net investment
income) (.05) (.01) --
----------------------------------
Net Asset Value, End of Period $16.17 $13.84 $10.52
----------------------------------
Total Return(5) +17.25%(6) +31.67% +5.20%(6)
----------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $134.5 $ 74.1 $ 0.6
----------------------------------
Ratio of Gross Expenses to Average
Net Assets(7) 1.00%(8) 1.00% 1.06%(8)
----------------------------------
Ratio of Net Expenses to Average Net
Assets(9) 1.00%(8) 1.00% 1.00%(8)
----------------------------------
Ratio of Net Investment Income to
Average Net Assets .77%(8) .80% .98%(8)
----------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
6
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger Berman Advisers Management Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
Guardian Portfolio
1) The per share amounts and ratios which are shown reflect income and expenses,
including the Fund's proportionate share of the Series' income and expenses.
2) The per share amounts which are shown have been computed based on the average
number of shares outstanding during each fiscal period.
3) The date investment operations commenced.
4) The amounts shown at this caption for a share outstanding may not accord with
the change in aggregate gains and losses in securities for the fiscal period
because of the timing of sales and repurchases of Fund shares in relation to
fluctuating market values for the Fund.
5) Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each fiscal
period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee future
results. Investment returns and principal may fluctuate and shares when
redeemed may be worth more or less than original cost. Total return would
have been lower if Management had not reimbursed certain expenses. The total
return information shown does not reflect charges and other expenses that
apply to the separate account or the related insurance policies, and the
inclusion of these charges and other expenses would reduce the total return
for all fiscal periods shown.
6) Not annualized.
7) The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset arrangements.
8) Annualized.
9) After reimbursement of expenses by Management as described in Note B of Notes
to Financial Statements. Had Management not undertaken such action the
annualized ratios of net expenses to average daily net assets would have
been:
<TABLE>
<CAPTION>
Period from
Six Months Ended Year Ended November 3, 1997
June 30, December 31, to December 31,
1999 1998 1997
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Expenses 1.04% 1.14% 30.06%
</TABLE>
B-7
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
COMMON STOCKS (86.5%)
BANKING & FINANCIAL (9.3%)
17,900 Bank of America $ 1,312,294
74,000 Bank One 4,407,625
26,700 BankBoston Corp. 1,365,037
32,000 Chase Manhattan 2,772,000
60,600 Wells Fargo 2,590,650
------------
12,447,606
------------
BASIC MATERIALS (1.6%)
29,500 Lyondell Chemical 608,438
50,200 Millennium Chemicals 1,182,837
7,700 Monsanto Co. 303,669
------------
2,094,944
------------
CAPITAL GOODS (6.4%)
5,100 Emerson Electric 320,662
192,400 Republic Services 4,761,900
23,100 SCI Systems 1,097,250
43,900 Waste Management 2,359,625
------------
8,539,437
------------
COMMUNICATION SERVICES (6.3%)
30,700 AT&T Corp. 1,713,444
28,400 Bell Atlantic 1,856,650
9,330 Frontier Corp. 550,470
5,300 GTE Corp. 401,475
46,300 MCI WorldCom 3,984,694
------------
8,506,733
------------
CONSUMER CYCLICALS (10.4%)
20,400 AutoZone, Inc. 614,550
7,700 Carnival Corp. 373,450
91,400 Cendant Corp. 1,873,700
13,300 Federated Department Stores 704,069
44,100 Furniture Brands International 1,229,287
33,000 General Motors 2,178,000
50,900 Lear Corp. 2,532,275
11,400 Lowe's Cos. 646,238
90,600 Office Depot 1,998,863
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
19,300 Payless ShoeSource $ 1,032,550
15,900 Tandy Corp. 777,112
------------
13,960,094
------------
CONSUMER STAPLES (8.0%)
75,600 CBRL Group 1,308,825
18,000 Chancellor Media 992,250
24,800 Keebler Foods 753,300
43,000 Kimberly-Clark 2,451,000
31,100 McDonald's Corp. 1,284,819
9,100 MediaOne Group 676,813
34,700 Philip Morris 1,394,506
43,000 Rite Aid 1,058,875
35,300 Sara Lee 800,869
------------
10,721,257
------------
ENERGY (6.1%)
19,800 Amerada Hess 1,178,100
6,000 Chevron Corp. 571,125
25,500 Halliburton Co. 1,153,875
12,000 Mobil Corp. 1,188,000
11,400 Royal Dutch Petroleum -- NY
Shares 686,850
8,300 Schlumberger Ltd. 528,606
25,900 Texaco Inc. 1,618,750
74,100 Union Pacific Resources Group 1,208,756
------------
8,134,062
------------
FINANCIAL SERVICES (14.6%)
30,800 Associates First Capital 1,364,825
73,800 Capital One Financial 4,109,737
40,150 Citigroup Inc. 1,907,125
114,400 Conseco, Inc. 3,482,050
21,800 Goldman Sachs 1,575,050
38,300 Hartford Financial Services
Group 2,233,369
12,700 Morgan Stanley Dean Witter 1,301,750
28,400 Nationwide Financial Services 1,285,100
6,550 Progressive Corp. 949,750
31,100 SLM Holding 1,424,769
------------
19,633,525
------------
</TABLE>
B-8
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ---------- ------------
<C> <S> <C>
HEALTH CARE (7.6%)
43,900 Aetna Inc. $ 3,926,306
33,500 American Home Products 1,926,250
51,800 Wellpoint Health Networks 4,396,525
------------
10,249,081
------------
TECHNOLOGY (13.7%)
47,600 Compaq Computer 1,127,525
34,300 Computer Associates 1,886,500
7,000 Gateway Inc. 413,000
16,600 Hewlett-Packard 1,668,300
25,200 IBM 3,257,100
23,800 Micron Technology 959,437
28,900 Plantronics, Inc. 1,882,113
45,800 Rational Software 1,508,538
17,800 Sun Microsystems 1,225,975
11,200 Teradyne, Inc. 803,600
9,900 Texas Instruments 1,435,500
38,100 Xerox Corp. 2,250,281
------------
18,417,869
------------
TRANSPORTATION (2.5%)
19,300 AMR Corp. 1,317,225
20,000 Burlington Northern Santa Fe 620,000
19,100 Continental Airlines Class B 718,637
19,900 Northwest Airlines 646,750
------------
3,302,612
------------
TOTAL COMMON STOCKS
(COST $101,483,872) 116,007,220
------------
PREFERRED STOCKS (1.5%)
62,600 News Corp. ADR
(COST $1,763,524) 1,975,812
------------
<CAPTION>
Principal Market
Amount Value(1)
- ---------- ------------
<C> <S> <C>
U.S. TREASURY SECURITIES
(10.4%)
$14,050,000 U.S. Treasury Bills, 4.32%,
due 8/19/99 (COST
$13,967,482) $ 13,967,482(2)
------------
REPURCHASE AGREEMENTS (0.2%)
250,000 State Street Bank and Trust
Co. Repurchase Agreement,
4.70%, due 7/1/99, dated
6/30/99, Maturity Value
$250,033, Collateralized by
$250,000 U.S. Treasury Bonds,
6.375%, due 8/15/27
(Collateral Value $258,795)
(COST $250,000) 250,000(2)
------------
SHORT-TERM INVESTMENTS (3.0%)
3,500,000 Gannett Co., Inc., 5.10%, due
7/6/99 3,497,521
594,136 N&B Securities Lending Quality
Fund, LLC 594,136
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $4,091,657) 4,091,657(2)
------------
TOTAL INVESTMENTS (101.6%)
(COST $121,556,535) 136,292,171(3)
Liabilities, less cash,
receivables and other assets
[(1.6%)] (2,167,412)
------------
TOTAL NET ASSETS (100.0%) $134,124,759
------------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-9
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Guardian Investments
1) Investment securities of the Series are valued at the latest sales price;
securities for which no sales were reported, unless otherwise noted, are
valued at the mean between the closing bid and asked prices. The Series
values all other securities by a method 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) At cost, which approximates market value.
3) At June 30, 1999, the cost of investments for U.S. Federal income tax
purposes was $121,958,628. Gross unrealized appreciation of investments was
$16,469,952 and gross unrealized depreciation of investments was $2,136,409,
resulting in net unrealized appreciation of $14,333,543, based on cost for
U.S. Federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
B-10
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
June 30,
1999
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 136,292,171
Cash 6,785
Receivable for variation margin (Note A) 255,100
Dividends and interest receivable 137,551
Deferred organization costs (Note A) 9,451
Prepaid expenses and other assets 469
--------------
136,701,527
--------------
LIABILITIES
Payable for securities purchased 1,873,416
Payable for collateral on securities loaned
(Note A) 594,136
Payable to investment manager (Note B) 56,671
Accrued expenses and other payables 52,545
--------------
2,576,768
--------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 134,124,759
--------------
NET ASSETS consist of:
Paid-in capital $ 119,042,237
Net unrealized appreciation in value of
investment securities and financial futures
contracts (Note A) 15,082,522
--------------
NET ASSETS $ 134,124,759
--------------
*Cost of investments $ 121,556,535
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-11
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
1999
(UNAUDITED)
------------
<S> <C>
INVESTMENT INCOME
Income:
Dividend income $ 459,184
Interest income 440,487
Foreign taxes withheld (Note A) (3,601)
------------
Total income 896,070
------------
Expenses:
Investment management fee (Note B) 278,487
Custodian fees (Note B) 35,897
Accounting fees 4,959
Auditing fees 3,179
Trustees' fees and expenses 2,681
Legal fees 1,899
Amortization of deferred organization and
initial offering expenses (Note A) 1,401
Insurance expense 244
Miscellaneous 2
------------
Total expenses 328,749
Expenses reduced by custodian fee expense
offset arrangement (Note B) (665)
------------
Total net expenses 328,084
------------
Net investment income 567,986
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment securities
sold 3,340,168
Net realized gain on financial futures
contracts (Note A) 1,709,231
Change in net unrealized appreciation of
investment securities and financial futures
contracts (Note A) 10,901,953
------------
Net gain on investments 15,951,352
------------
Net increase in net assets resulting from
operations $16,519,338
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-12
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
Six Months
Ended Year
June 30, Ended
1999 December 31,
(UNAUDITED) 1998
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 567,986 $ 394,595
Net realized gain (loss) on
investments 5,049,399 (5,836,131)
Change in net unrealized
appreciation of investments 10,901,953 4,162,581
-----------------------------
Net increase (decrease) in net
assets resulting from operations 16,519,338 (1,278,955)
-----------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 57,305,357 102,739,538
Reductions (13,920,482) (27,803,723)
-----------------------------
Net increase in net assets resulting
from transactions in investors'
beneficial interests 43,384,875 74,935,815
-----------------------------
NET INCREASE IN NET ASSETS 59,904,213 73,656,860
NET ASSETS:
Beginning of period 74,220,546 563,686
-----------------------------
End of period $ 134,124,759 $ 74,220,546
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-13
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Guardian Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Guardian Investments (the "Series") is a separate operating
series of Advisers Managers Trust ("Managers Trust"), a New York common law
trust organized as of May 24, 1994. Managers Trust is currently comprised of
eight separate operating series. Managers Trust is registered as a
diversified, open-end management investment company under the Investment
Company Act of 1940, as amended.
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
2) PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the Series' Schedule of Investments.
3) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the Series
becomes aware of the dividends. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, including accretion of 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) 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 U.S. Federal income tax purposes and is therefore not subject to U.S.
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 on a straight-line basis over a five-year
period. At June 30, 1999, the unamortized balance of such expenses amounted
to $9,451.
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) FINANCIAL FUTURES CONTRACTS: The Series may buy and sell financial futures
contracts to hedge against a possible decline in the value of the Series'
securities and/or for purposes of managing cash flow. 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
B-14
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Guardian Investments
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.
For U.S. 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, 1999, open positions in financial futures contracts were as
follows:
<TABLE>
<CAPTION>
UNREALIZED
EXPIRATION OPEN CONTRACTS POSITION APPRECIATION
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
September 1999 40 S&P 500 Futures Long $346,886
</TABLE>
At June 30, 1999, the Series had deposited $1,400,000 U.S. Treasury
Bills, 4.32%, due 8/19/99, in a segregated account to cover margin
requirements on open financial futures contracts.
9) 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 company. 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"), which is managed by State Street Bank and Trust
Company pursuant to guidelines approved by Managers Trust's investment
manager. 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, 1999, the value of the securities loaned and the value of the collateral
were $582,487 and $594,136, respectively.
10) 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 Inc. ("Management") as its
investment manager under a Management Agreement. For such investment management
services, the Series pays Management a fee at the annual
B-15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Guardian Investments
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 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
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 Management.
The Series has an expense offset arrangement in connection with its custodian
contract. In addition, in connection with the Securities Lending Agreement
between the Series and Morgan, Morgan has agreed to reimburse the Series for
transaction costs incurred on security lending transactions charged by the
custodian through May 31, 1999. The impact of these arrangements, respectively,
reflected in the Statement of Operations under the caption Custodian fees, was a
reduction of $473 and $192.
NOTE C -- SECURITIES TRANSACTIONS:
During the six months ended June 30, 1999, there were purchase and sale
transactions (excluding short-term securities and financial futures contracts)
of $86,932,992 and $38,434,468, respectively.
During the six months ended June 30, 1999, brokerage commissions on
securities transactions amounted to $130,342, of which Neuberger received
$61,565, and other brokers received $68,777.
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-16
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Guardian Investments
<TABLE>
<CAPTION>
Period
from
November
Six 3,
Months Year 1997(1)
Ended Ended to
June 30, December December
1999 31, 31,
(UNAUDITED) 1998 1997
----------------------------------
<S> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(2) .65%(3) .71% 9.59%(3)
----------------------------------
Net Expenses .65%(3) .71% 9.53%(3)
----------------------------------
Net Investment Income (Loss) 1.12%(3) 1.09% (7.55%)(3)
----------------------------------
Portfolio Turnover Rate 45% 197% 12%
----------------------------------
Net Assets, End of Period (in millions) $134.1 $74.2 $0.6
----------------------------------
</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.
17
