<PAGE>
BALANCED PORTFOLIO
NEUBERGER BERMAN
ADVISERS MANAGEMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1999
NMATR8050699
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger Berman Advisers Management Trust June 30, 1999
- --------------------------------------------------------------------------------
Balanced Portfolio
JENNIFER SILVER, BROOKE COBB, TED GIULIANO & CATHERINE WATERWORTH, PORTFOLIO
CO-MANAGERS
The portfolio produced a 2.17% return* during the first six months of 1999,
while its benchmarks, the Russell Midcap Growth Index and the Merrill Lynch 1-3
Year Treasury Index, provided a 14.19% and 1.17% return, respectively.
When 1999 began, the portfolio's assets were apportioned 61.9% to equity and
38.1% to fixed-income. After the extreme volatility of the second half of 1998,
the stock and bond markets entered a period of relative (and, in the portfolio
managers' opinion, well deserved) peace and quiet. Fixed-income securities
provided competitive returns in a moderately rising interest rate environment,
and growth stocks continued to lead the equity markets as they had for the past
several years.
In the equity portion, the managers increased their holdings of
Internet-related stocks during the first quarter. Yet, they have insisted that
these investments conform to their stringent investment criteria. This approach
led the managers not just to traditional Internet stocks, but also to related
businesses such as credit card companies expected to benefit from increased use
of on-line payment, as well as retailers that sell goods through their web
sites.
During the second half of the reporting period, however, the markets'
relative peace and quiet was shattered when investors came to the conclusion
that faster-than-expected economic growth might rekindle inflation pressures.
Interest rates rose quickly and dramatically, and fixed-income securities
provided investors with their highest yields, and lowest prices, of the past 18
months. The stock market experienced a sudden change in leadership. Because
higher interest rates have the potential to erode earnings, many highly valued
growth companies lost value and equity investors turned their attention to
attractively valued companies that had been out of favor.
The portfolio co-managers attempted to take advantage of this volatility by
increasing existing, value-oriented holdings and establishing new positions on
perceived price weakness. For example, they added consumer electronics retailer
Best Buy (1.4% of assets as of June 30, 1999), which they expect to benefit from
the sale of popular new video technologies, such as digital video disks (DVD)
and large-screen televisions. Other additions included apparel retailer Ann
Taylor (0.7%), which the portfolio managers believe is in the midst of a
merchandising-driven recovery, and supermarket chain Food Lion (0.4%). While the
portfolio managers remain optimistic about these companies' prospects, they have
not yet generated sizeable gains.
In the fixed-income portion, the portfolio co-managers de-emphasized interest
rate sensitive sectors of the bond market by reducing their exposure to
asset-backed securities and corporate bonds. They redeployed those assets
primarily to shorter-term, high-quality securities, such as commercial paper and
agency discount notes, that they believed would maintain stable prices as
interest rates rose.
Looking forward, the portfolio co-managers currently believe that the
portfolio is well positioned for the second half of 1999. If interest rates rise
further, they believe that the portfolio's current posture should help its
income portion maintain competitive yields. In the equity portion, the portfolio
co-managers report that they have continued to seek fundamentally strong
companies in the mid-cap market that have good earnings, and are selling at
reasonable valuations relative to their growth prospects. If economic growth
begins to subside and interest rates decline, the portfolio managers stand ready
to make the changes they believe are required to capitalize on opportunities for
potential capital appreciation in both stocks and bonds.
A-2
<PAGE>
*3.63%, 13.47%, and 10.16% were the average annual total returns for the 1-, 5-,
and 10-year periods ended June 30, 1999. Results are shown on a "total return"
basis and include reinvestment of all dividends and capital gain distributions.
Neuberger Berman Management Inc. has agreed to absorb certain operating
expenses of the Portfolio. Absent such arrangement, which is subject to change,
the total returns would have been less. Past performance does not guarantee
future results and shares when redeemed may be worth more or less than their
original cost. The performance information does not reflect separate account
and insurance policy fees and expenses.
The Russell Midcap Growth 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 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). The Merrill Lynch 1-3 Year Treasury Index is an unmanaged
total return market value index consisting of all coupon-bearing U.S. Treasury
publicly placed debt securities with maturities between 1 to 3 years.
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. and
include reinvestment of all dividends and capital gains 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.
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
- --------------------------------------------------------------------------------
Balanced Portfolio
<TABLE>
<CAPTION>
June 30,
1999
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 163,841,341
Receivable for Trust shares sold 394,581
--------------
164,235,922
--------------
LIABILITIES
Payable for Trust shares redeemed 488,650
Accrued expenses 100,772
Payable to administrator (Note B) 39,230
--------------
628,652
--------------
NET ASSETS at value $ 163,607,270
--------------
NET ASSETS consist of:
Par value $ 10,241
Paid-in capital in excess of par value 133,912,425
Accumulated undistributed net investment
income 1,376,279
Accumulated net realized gains on investment 1,282,155
Net unrealized appreciation in value of
investment 27,026,170
--------------
NET ASSETS at value $ 163,607,270
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 10,241,248
--------------
NET ASSET VALUE, offering and redemption price per
share $15.98
--------------
</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,
1999
(UNAUDITED)
------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 2,312,887
------------
Expenses:
Administration fee (Note B) 251,491
Shareholder reports 46,086
Registration and filing fees 18,158
Shareholder servicing agent fees 7,938
Custodian fees 5,000
Legal fees 4,622
Trustees' fees and expenses 4,246
Auditing fees 1,445
Miscellaneous 1,442
Expenses from Series (Notes A & B) 542,749
------------
Total expenses 883,177
Expenses reduced by custodian fee expense
offset arrangement (Note B) (1,989)
------------
Total net expenses 881,188
------------
Net investment income 1,431,699
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
FROM SERIES (NOTE A)
Net realized gain on investment securities 1,620,663
Net realized loss on financial futures
contracts (62,736)
Net realized gain on foreign currency
transactions 101,404
Change in net unrealized appreciation of
investment securities, financial futures
contracts, translation of assets and
liabilities in foreign currencies, and
foreign currency contracts 197,882
------------
Net gain on investments from Series (Note
A) 1,857,213
------------
Net increase in net assets resulting from
operations $ 3,288,912
------------
</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
1999 December 31,
(UNAUDITED) 1998
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 1,431,699 $ 3,073,579
Net realized gain on investments
from Series (Note A) 1,659,331 4,111,260
Change in net unrealized
appreciation of investments from
Series (Note A) 197,882 12,005,670
-----------------------------
Net increase in net assets resulting
from operations 3,288,912 19,190,509
-----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (2,903,804) (3,822,929)
Net realized gain on investments (4,301,933) (26,851,524)
-----------------------------
Total distributions to shareholders (7,205,737) (30,674,453)
-----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 7,081,191 19,943,383
Proceeds from reinvestment of
dividends and distributions 7,205,737 30,674,453
Payments for shares redeemed (24,345,730) (23,459,626)
-----------------------------
Net increase (decrease) from Trust
share transactions (10,058,802) 27,158,210
-----------------------------
NET INCREASE (DECREASE) IN NET ASSETS (13,975,627) 15,674,266
NET ASSETS:
Beginning of period 177,582,897 161,908,631
-----------------------------
End of period $ 163,607,270 $177,582,897
-----------------------------
Accumulated undistributed net
investment income at end of period $ 1,376,279 $ 2,848,384
-----------------------------
NUMBER OF TRUST SHARES:
Sold 452,588 1,287,783
Issued on reinvestment of dividends
and distributions 481,024 2,020,715
Redeemed (1,561,085) (1,537,655)
-----------------------------
Net increase (decrease) in shares
outstanding (627,473) 1,770,843
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger Berman Advisers Management Trust June 30, 1999 (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 (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, 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, 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, 1999 (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 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 (excluding
the fees payable to Management, interest, taxes, brokerage commissions,
extraordinary expenses, and transaction costs) which exceed, in the aggregate,
1.00% per annum of the Fund's average daily net assets. 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, no reimbursement to the
Fund was required.
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 $325 and $1,664.
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 $2,006,246 and $19,495,441,
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,
1999 Year Ended December 31,
(UNAUDITED)(2) 1998(2) 1997(2) 1996(2) 1995(2) 1994
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $16.34 $17.80 $15.92 $17.52 $14.51 $ 15.62
-------------------------------------------------------------------
Income From Investment Operations
Net Investment Income .13 .29 .36 .34 .32 .30
Net Gains or Losses on Securities
(both realized and unrealized) .18 1.62 2.59 .75 3.06 (.80)
-------------------------------------------------------------------
Total From Investment Operations .31 1.91 2.95 1.09 3.38 (.50)
-------------------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (.27) (.42) (.30) (.41) (.28) (.23)
Distributions (from net capital
gains) (.40) (2.95) (.77) (2.28) (.09) (.38)
-------------------------------------------------------------------
Total Distributions (.67) (3.37) (1.07) (2.69) (.37) (.61)
-------------------------------------------------------------------
Net Asset Value, End of Period $15.98 $16.34 $17.80 $15.92 $17.52 $ 14.51
-------------------------------------------------------------------
Total Return(3) +2.17%(4) +12.18% +19.45% +6.89% +23.76% -3.36%
-------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $163.6 $177.6 $161.9 $173.2 $144.4 $ 179.3
-------------------------------------------------------------------
Ratio of Gross Expenses to Average
Net Assets(5) 1.05%(6) 1.03% 1.04% 1.09% .99% --
-------------------------------------------------------------------
Ratio of Net Expenses to Average Net
Assets 1.05%(6) 1.03% 1.04% 1.09% .99% .91%
-------------------------------------------------------------------
Ratio of Net Investment Income to
Average Net Assets 1.71%(6) 1.84% 2.07% 1.84% 1.99% 1.91%
-------------------------------------------------------------------
Portfolio Turnover Rate(7) -- -- -- -- 21% 55%
-------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-6
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger Berman Advisers Management Trust June 30, 1999 (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, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ----------- ------------
<C> <S> <C>
COMMON STOCKS (63.3%)
BUSINESS SERVICES (3.9%)
42,500 Avis Rent A Car $ 1,237,812
21,650 International Network Services 874,119
94,100 Republic Services 2,328,975
29,900 USWeb Corp. 663,406
33,800 Valassis Communications 1,237,925
------------
6,342,237
------------
CAPITAL GOODS (0.5%)
3,500 E-Tek Dynamics 116,375
14,200 Waters Corp. 754,375
------------
870,750
------------
COMMUNICATIONS (7.5%)
11,000 Adelphia Communications 699,875
25,800 Frontier Corp. 1,522,200
43,500 Intermedia Communications 1,305,000
14,900 Metromedia Fiber Network 535,469
24,700 NTL Inc. 2,128,831
52,100 RSL Communications 1,006,181
30,500 Tellabs, Inc. 2,060,656
11,200 Uniphase Corp. 1,859,200
25,200 WinStar Communications 1,228,500
------------
12,345,912
------------
CONSUMER CYCLICALS (5.9%)
50,100 Capstar Broadcasting 1,371,488
65,100 Cendant Corp. 1,334,550
31,300 Chancellor Media 1,725,413
29,500 Fortune Brands 1,220,562
30,600 Jones Intercable Class A 1,499,400
26,200 SFX Entertainment 1,676,800
26,200 Starwood Hotels & Resorts
Worldwide 800,737
------------
9,628,950
------------
<CAPTION>
Number Market
of Shares Value(1)
- ----------- ------------
<C> <S> <C>
CONSUMER STAPLES (0.8%)
25,400 Estee Lauder $ 1,273,175
------------
ELECTRICAL EQUIPMENT (3.8%)
46,000 Altera Corp. 1,693,375
2,100 Broadcom Corp. 303,581
12,100 Conexant Systems 702,556
17,100 Maxim Integrated Products 1,137,150
26,400 PMC-Sierra 1,555,950
11,700 Vitesse Semiconductor 789,019
------------
6,181,631
------------
ENERGY (2.6%)
40,800 Coastal Corp. 1,632,000
61,200 Enron Oil & Gas 1,239,300
90,800 Union Pacific Resources Group 1,481,175
------------
4,352,475
------------
FINANCIAL SERVICES (7.6%)
36,600 Capital One Financial 2,038,162
39,100 CheckFree Holdings 1,077,694
27,500 Donaldson, Lufkin & Jenrette 1,656,875
28,600 E*TRADE Group 1,142,213
20,200 FINOVA Group 1,063,025
26,000 Kansas City Southern
Industries 1,659,125
15,800 Lehman Brothers Holdings 983,550
13,900 Nationwide Financial Services 628,975
12,200 Providian Financial 1,140,700
13,200 State Street 1,126,950
------------
12,517,269
------------
HARDWARE (3.4%)
53,500 Adaptec, Inc. 1,889,219
17,800 Network Appliance 994,575
35,400 Sanmina Corp. 2,685,975
------------
5,569,769
------------
</TABLE>
B-8
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
- ----------- ------------
<C> <S> <C>
HEALTH CARE (6.8%)
35,000 Biogen, Inc. $ 2,250,937
22,300 C. R. Bard 1,066,219
18,600 Cardinal Health 1,192,725
53,900 Elan Corp. ADR 1,495,725
13,700 Immunex Corp. 1,745,894
10,900 MiniMed Inc. 838,619
14,700 Sepracor Inc. 1,194,375
16,900 The Laser Center 811,200
7,600 Wellpoint Health Networks 645,050
------------
11,240,744
------------
INTERNET (3.8%)
100 Ask Jeeves 1,400
11,900 BroadVision, Inc. 877,625
100 Clarent Corp. 1,500
5,600 DoubleClick Inc. 513,800
6,300 Exodus Communications 755,606
3,800 Inktomi Corp. 496,137
20,500 Intuit Inc. 1,847,563
7,600 Lycos, Inc. 698,250
9,400 PSINet Inc. 411,250
9,800 Safeguard Scientifics 607,600
------------
6,210,731
------------
RETAIL (9.9%)
29,300 Abercrombie & Fitch 1,406,400
26,500 Ann Taylor Stores 1,192,500
<CAPTION>
Number Market
of Shares Value(1)
- ----------- ------------
<C> <S> <C>
33,200 Best Buy $ 2,241,000
39,800 Brinker International 1,082,063
9,000 Circuit City Stores 837,000
11,200 Costco Cos. 896,700
52,200 Food Lion Class B 603,563
33,000 Furniture Brands International 919,875
32,500 Linens 'n Things 1,421,875
25,250 Office Depot 557,078
63,850 Staples, Inc. 1,975,359
90,800 TJX Cos. 3,024,775
------------
16,158,188
------------
SOFTWARE (5.8%)
58,900 Citrix Systems 3,327,850
11,900 Gemstar International Group 776,475
69,600 Novell, Inc. 1,844,400
29,600 Siebel Systems 1,964,700
16,100 VERITAS Software 1,528,494
------------
9,441,919
------------
UTILITIES (1.0%)
23,400 Montana Power 1,649,700
------------
TOTAL COMMON STOCKS (COST
$75,870,972) 103,783,450
------------
</TABLE>
B-9
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1999 (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
(1.3%)
$ 2,191,888 U.S. Treasury
Inflation-Indexed Notes,
3.375%, due 1/15/07
(COST $2,149,810) TSY TSY $ 2,100,771
------------
U.S. GOVERNMENT AGENCY
SECURITIES (0.8%)
1,280,000 Federal Home Loan Bank,
Discount Notes, 4.50%, due
7/1/99
(COST $1,280,000) AGY AGY 1,280,000(2)
------------
MORTGAGE-BACKED SECURITIES
(8.6%)
279,617 GE Capital Mortgage Services,
Inc., REMIC Pass-Through
Certificates, Ser. 1998-25,
Class B3, 6.25%, due 12/25/28 BB(2) 196,168(3)
365,073 PNC Mortgage Securities Corp.,
Pass-Through Certificates,
Ser. 1999-1, Class 1B4, 6.25%,
due 2/25/29 BB(2) 251,842(3)
499,586 GE Capital Mortgage Services,
Inc., REMIC Pass-Through
Certificates, Ser. 1999-11,
Class B3, 6.50%, due 7/25/29 BB(2) 354,861(3)
195,000 Morgan Stanley Capital I Inc.,
Commercial Mortgage
Pass-Through Certificates,
Ser. 1998-HF2, 6.01%, due
11/15/30 BB(2) 132,813(3)
FANNIE MAE
1,073,427 Pass-Through Certificates,
7.00%, due 6/1/11 AGY AGY 1,084,612
1,007,593 Pass-Through Certificates,
6.50%, due 5/1/13 AGY AGY 994,092
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
2,742,164 Pass-Through Certificates,
6.50%, due 12/15/28 AGY AGY 2,640,265
7,865,948 Pass-Through Certificates,
7.00%, due 3/15/28-1/15/29 AGY AGY 7,769,827
565,000 Pass-Through Certificates,
8.00%, TBA, 30 Year Maturity AGY AGY 579,419
------------
TOTAL MORTGAGE-BACKED
SECURITIES (COST $14,425,775) 14,003,899
------------
ASSET-BACKED SECURITIES (2.7%)
1,350,000 Ford Credit Auto Loan Master
Trust, Auto Loan Certificates,
Ser. 1996-1, 5.50%, due
2/15/03 Aaa AAA 1,334,502
1,420,000 Chase Credit Card Master
Trust, Ser. 1997-2, Class A,
6.30%, due 4/15/03 Aaa AAA 1,430,366
267,500 Navistar Financial Owner
Trust, Ser. 1996-B, Class A-3,
6.33%, due 4/21/03 Aaa AAA 268,877
970,000 Chemical Master Credit Card
Trust 1, Ser. 1995-2, Class A,
6.23%, due 6/15/03 Aaa AAA 977,246
370,313 Chevy Chase Auto Receivables
Trust, Ser. 1996-2, Class A,
5.90%, due 7/15/03 Aaa AAA 370,951
------------
TOTAL ASSET-BACKED SECURITIES
(COST $4,391,888) 4,381,942
------------
</TABLE>
B-10
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- -------------- ----------- --------- ------------
<C> <S> <C> <C> <C>
BANKS & FINANCIAL INSTITUTIONS
(5.4%)
$ 1,860,000 Associates Pass-Through Asset
Trust, Ser. 1997-1, 6.45%, due
9/15/00 Aa3 AA- $ 1,879,288(3)
820,000 Lehman Brothers Holdings Inc.,
Medium-Term Notes, Ser. E,
6.89%, due 10/10/00 Baa1 A 827,347
725,000 Countrywide Home Loans, Inc.,
Notes, 5.62%, due 10/16/00 A3 A 720,708
680,000 Lehman Brothers Holdings Inc.,
Medium-Term Notes, Ser. E,
6.65%, due 11/8/00 Baa1 A 684,406
1,420,000 Capital One Bank, Bank Notes,
5.95%, due 2/15/01 Baa2 BBB- 1,403,471
970,000 Morgan Stanley, Dean Witter, &
Co., Global Medium-Term Notes,
Ser. C, 6.09%, due 3/9/01 Aa3 A+ 969,127
1,270,000 Household Finance Corp.,
Senior Medium-Term Notes,
6.06%, due 5/14/01 A2 A 1,265,720
930,000 Riggs National Corp.,
Subordinated Notes, 8.50%, due
2/1/06 Ba1 BB+ 963,713
190,000 Bank United, Subordinated
Medium-Term Notes, 8.00%, due
3/15/09 Ba2 BBB- 183,664
------------
TOTAL BANKS & FINANCIAL
INSTITUTIONS (COST $8,902,323) 8,897,444
------------
CORPORATE DEBT SECURITIES
(10.3%)
660,000 Arkla, Inc., Notes, 8.875%,
due 7/15/99 Baa1 BBB 660,475
1,240,000 Time Warner Pass-Through Asset
Trust, Ser. 1997-2, 4.90%, due
7/29/99 Baa3 BBB 1,239,529(3)
735,000 Commonwealth Edison Co., First
Mortgage Bonds, Ser. 90,
6.50%, due 4/15/00 Baa2 BBB+ 738,263
1,000,000 Ford Motor Credit Co.,
Medium-Term Notes, 6.84%, due
8/16/00 A1 A 1,008,600
520,000 Chesapeake Corp., Notes,
10.375%, due 10/1/00 Baa3 BBB 545,038
415,000 BHP Finance (USA) Ltd.,
Guaranteed Notes, 5.625%, due
11/1/00 A3 A- 410,385
514,000 Safeway Inc., Notes, 5.75%,
due 11/15/00 Baa2 BBB 511,512
625,000 AT&T Capital Corp., Notes,
6.875%, due 1/16/01 Baa3 BBB 627,081
430,000 Fort James Corp., Notes,
6.234%, due 3/15/01 Baa2 BBB- 429,437
325,000 CMS Energy Corp., Senior
Notes, 8.00%, due 7/1/01 Ba3 BB 325,130
100,000 Telecom Argentina Stet-France
SA, Medium-Term Notes, 9.75%,
due 7/12/01 Ba3 BBB- 100,000(3)
520,000 Colonial Realty Limited
Partnership, Senior Notes,
7.50%, due 7/15/01 Baa3 BBB- 512,465
230,000 USA Waste Services, Inc.,
Senior Notes, 6.125%, due
7/15/01 Baa2 BBB+ 228,726
655,000 Texas Utilities Co., Notes,
5.94%, due 10/15/01 Baa3 BBB 649,727
1,000,000 Tyco International Ltd.,
Notes, 6.50%, due 11/1/01 A3 A- 1,000,310
495,000 Marlin Water Trust, Senior
Secured Notes, 7.09%, due
12/15/01 Baa2 BBB 489,758(3)
755,000 ICI Wilmington Inc.,
Guaranteed Notes, 7.50%, due
1/15/02 Baa1 A- 768,099
600,000 Fort James Corp., Senior
Notes, 6.50%, due 9/15/02 Baa2 BBB- 599,754
</TABLE>
B-11
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- -------------- ----------- --------- ------------
<C> <S> <C> <C> <C>
$ 830,000 Stewart Enterprises, Inc.,
Notes, 6.40%, due 5/1/03 Baa3 BBB $ 820,256
400,000 Core-Mark International, Inc.,
Senior Subordinated Notes,
11.375%, due 9/15/03 B3 B 391,000
160,000 Loomis Fargo & Co., Senior
Subordinated Notes, 10.00%,
due 1/15/04 B3 B 159,200
330,000 PDVSA Finance Ltd., Notes,
8.75%, due 2/15/04 A3 BBB+ 328,753(3)
170,000 EOP Operating Limited
Partnership, Notes, 6.625%,
due 2/15/05 Baa1 BBB 163,523
200,000 WestPoint Stevens Inc., Senior
Notes, 7.875%, due 6/15/05 Ba3 BB 195,500
340,000 Protection One, Inc., Senior
Notes, 7.375%, due 8/15/05 Ba1 BBB- 310,692
450,000 Heritage Media Corp., Senior
Subordinated Notes, 8.75%, due
2/15/06 B1 BB+ 481,500
100,000 Calpine Corp., Senior Notes,
7.625%, due 4/15/06 Ba2 BB 99,250
205,000 Printpack, Inc., Senior
Subordinated Notes, Ser. B,
10.625%, due 8/15/06 Caa1 B 195,006
500,000 Time Warner Inc., Notes,
8.11%, due 8/15/06 Baa3 BBB 524,795
45,000 Newport News Shipbuilding
Inc., Senior Subordinated
Notes, 9.25%, due 12/1/06 B1 B+ 48,094
235,000 GFSI Inc., Senior Subordinated
Notes, 9.625%, due 3/1/07 B3 B- 206,212
75,000 French Fragrances, Inc.,
Senior Notes, Ser. B, 10.375%,
due 5/15/07 B2 B+ 76,031
325,000 Owens-Illinois, Inc., Senior
Debentures, 8.10%, due 5/15/07 Ba1(4) BB+(4) 323,577
50,000 Safety Components
International, Inc., Senior
Subordinated Notes, 10.125%,
due 7/15/07 B3 B- 44,875
225,000 HydroChem Industrial Services,
Inc., Senior Subordinated
Notes, Ser. B, 10.375%, due
8/1/07 Caa1 B- 197,156
315,000 Mirage Resorts, Inc., Notes,
6.75%, due 8/1/07 Baa2 BBB 295,369
130,000 NBTY, Inc., Senior
Subordinated Notes, Ser. B,
8.625%, due 9/15/07 B1 B+ 114,888
160,000 Thiokol Corp., Senior Notes,
6.625%, due 3/1/08 Baa3 BBB 149,530
110,000 IMPAC Group, Inc., Senior
Subordinated Notes, 10.125%,
due 3/15/08 B3 B- 108,075
85,000 Trans-Resources, Inc., Senior
Notes, Ser. B, 10.75%, due
3/15/08 B3 B- 83,194
200,000 Global Crossing Holdings Ltd.,
Senior Notes, 9.625%, due
5/15/08 Ba2 BB 212,500
205,000 Tenet Healthcare Corp., Senior
Subordinated Notes, 8.125%,
due 12/1/08 Ba3 BB- 197,249
40,000 KinderCare Learning Centers,
Inc., Senior Subordinated
Notes, Ser. B, 9.50%, due
2/15/09 B3 B- 38,300
300,000 Liberty Media Group, Notes,
7.875%, due 7/15/09 Baa3 BBB- 298,212(3)
------------
TOTAL CORPORATE DEBT
SECURITIES (COST $17,177,965) 16,907,026
------------
</TABLE>
B-12
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Principal Rating Market
Amount Moody's S&P Value(1)
- -------------- ----------- --------- ------------
<C> <S> <C> <C> <C>
FOREIGN GOVERNMENT
SECURITIES(5) (2.2%)
CAD 1,800,000 Canadian Government, 5.00%,
due 12/1/00 Aa1 AAA $ 1,219,477
EUR 1,180,000 Italian Government, 4.50%, due
4/15/01 Aa3 AA 1,242,434
SEK 8,200,000 Kingdom of Sweden, 13.00%, due
6/15/01 Aa1 AAA 1,126,595
------------
TOTAL FOREIGN GOVERNMENT
SECURITIES (COST $3,711,328) 3,588,506
------------
REPURCHASE AGREEMENTS (1.8%)
$ 3,010,000 State Street Bank and Trust
Co. Repurchase Agreement,
4.70%, due 7/1/99, dated
6/30/99, Maturity Value
$3,010,393, Collateralized by
$2,465,000 U.S. Treasury
Bonds, 8.75%, due 5/15/17
(Collateral Value $3,106,285)
(COST $3,010,000) 3,010,000(6)
------------
SHORT-TERM INVESTMENTS (18.0%)
2,000,000 Toyota Motor Credit Corp.,
4.83%, due 7/2/99 P-1 A-1+ 1,999,732
2,000,000 Fluor Corp., 4.94%, due 7/7/99 P-1 A-1 1,998,353
925,000 Northern States Power Co.,
5.20%, due 7/7/99 P-1 A-1+ 924,198
1,000,000 GTE Corp., 5.05%, due 7/19/99 P-1 A-1 997,475
23,623,335 N&B Securities Lending Quality
Fund, LLC 23,623,335
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $29,543,093) 29,543,093(6)
------------
TOTAL INVESTMENTS (114.4%)
(COST $160,463,154) 187,496,131(7)
Liabilities, less cash,
receivables and other assets
[(14.4%)] (23,654,789)
------------
TOTAL NET ASSETS (100.0%) $163,841,342
------------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-13
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust June 30, 1999 (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 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 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, 1999, these
securities amounted to $5,271,224 or 3.2% of net assets.
4) Rated BBB- by Duff & Phelps Credit Rating Co.
5) Principal amount is stated in the currency in which the security is
denominated.
CAD -- Canadian Dollar
EUR -- Euro
SEK -- Swedish Krona
6) At cost, which approximates market value.
7) At June 30, 1999, the cost of investments for U.S. Federal income tax
purposes was $160,534,131. Gross unrealized appreciation of investments was
$29,867,799 and gross unrealized depreciation of investments was $2,905,799,
resulting in net unrealized appreciation of $26,962,000, based on cost for
U.S. 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,
1999
(UNAUDITED)
--------------
<S> <C>
ASSETS
Investments in securities, at market value*
(Note A) -- see Schedule of Investments $ 187,496,131
Cash 10,211
Receivable for securities sold 3,277,588
Dividends and interest receivable 1,572,719
Net receivable for forward foreign currency
exchange contracts sold (Note C) 10,777
Prepaid expenses and other assets 10,059
Deferred organization costs (Note A) 8,666
--------------
192,386,151
--------------
LIABILITIES
Payable for collateral on securities loaned
(Note A) 23,623,335
Payable for securities purchased 3,968,123
Accrued expenses and other payables 867,994
Payable to investment manager (Note B) 71,982
Payable for variation margin (Note A) 13,375
--------------
28,544,809
--------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 163,841,342
--------------
NET ASSETS consist of:
Paid-in capital $ 136,815,172
Net unrealized appreciation in value of
investment securities, financial futures
contracts, translation of assets and
liabilities in foreign currencies, and
foreign currency contracts 27,026,170
--------------
NET ASSETS $ 163,841,342
--------------
*Cost of investments $ 160,463,154
--------------
</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,
1999
(UNAUDITED)
------------
<S> <C>
INVESTMENT INCOME
Income:
Interest income $ 2,236,976
Dividend income 76,878
Foreign taxes withheld (Note A) (967)
------------
Total income 2,312,887
------------
Expenses:
Investment management fee (Note B) 461,369
Custodian fees (Note B) 59,946
Amortization of deferred organization and
initial offering expenses (Note A) 5,143
Accounting fees 5,000
Trustees' fees and expenses 4,182
Auditing fees 3,996
Legal fees 2,087
Insurance expense 943
Miscellaneous 83
------------
Total expenses 542,749
Expenses reduced by custodian fee expense
offset arrangement (Note B) (1,989)
------------
Total net expenses 540,760
------------
Net investment income 1,772,127
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment securities
sold 1,620,663
Net realized loss on financial futures
contracts (Note A) (62,736)
Net realized gain on foreign currency
transactions (Note A) 101,404
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) 197,882
------------
Net gain on investments 1,857,213
------------
Net increase in net assets resulting from
operations $ 3,629,340
------------
</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
1999 December 31,
(UNAUDITED) 1998
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 1,772,127 $ 3,725,526
Net realized gain on investments 1,659,331 4,111,260
Change in net unrealized
appreciation of investments 197,882 12,005,670
-----------------------------
Net increase in net assets resulting
from operations 3,629,340 19,842,456
-----------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 2,006,246 9,298,536
Reductions (19,495,441) (13,465,286)
-----------------------------
Net decrease in net assets resulting
from transactions in investors'
beneficial interests (17,489,195) (4,166,750)
-----------------------------
NET INCREASE (DECREASE) IN NET ASSETS (13,859,855) 15,675,706
NET ASSETS:
Beginning of period 177,701,197 162,025,491
-----------------------------
End of period $163,841,342 $177,701,197
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-17
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust June 30, 1999 (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) 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 and foreign currency transactions are recorded on the basis of
identified cost.
5) 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.
6) 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.
7) FOREIGN TAXES: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
B-18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
8) 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 $8,666.
9) 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.
10) 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.
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 DEPRECIATION
-----------------------------------------------------------------------------
<S> <C> <C> <C>
September 1999 13 U.S. Treasury Notes, 5 Year Short $15,128
September 1999 4 U.S. Treasury Notes, 10 Year Short 2,125
</TABLE>
At June 30, 1999, the Series had deposited $334,700 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.
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 company. The
Series entered into a Securities Lending Agreement with Morgan Stanley & Co.
Incorporated
B-19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
("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 $23,160,133
and $23,623,335, respectively.
12) 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 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 $325 and $1,664.
NOTE C -- SECURITIES TRANSACTIONS:
During the six months ended June 30, 1999, there were purchase and sale
transactions (excluding short-term securities, financial futures contracts, and
forward foreign currency contracts) of $97,699,712 and $112,609,095,
respectively.
B-20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Advisers Managers Trust June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
AMT Balanced Investments
During the six months ended June 30, 1999, the Series had entered into
various contracts to deliver or receive currencies at specified future dates. At
June 30, 1999, open contracts were as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
CONTRACTS SETTLEMENT APPRECIATION
SALES TO DELIVER IN EXCHANGE FOR DATE VALUE (DEPRECIATION)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Canadian Dollar 1,025,000 $ 692,333 8/6/99 $ 696,456 $ (4,123)
Euro 900,000 946,035 7/14/99 928,705 17,330
Swedish Krona 9,850,000 1,164,199 7/19/99 1,161,650 2,549
</TABLE>
<TABLE>
<CAPTION>
CONTRACTS SETTLEMENT NET UNREALIZED
PURCHASES TO RECEIVE IN EXCHANGE FOR DATE VALUE DEPRECIATION
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Canadian Dollar 1,025,000 $ 701,435 8/6/99 $ 696,456 $ 4,979
</TABLE>
During the six months ended June 30, 1999, brokerage commissions on
securities transactions amounted to $123,379, of which Neuberger received
$52,177, and other brokers received $71,202.
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-21
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Balanced Investments
<TABLE>
<CAPTION>
Period
from
Six May 1,
Months 1995(1)
Ended to
June 30, December
1999 Year Ended December 31, 31,
(UNAUDITED) 1998 1997 1996 1995
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(2) .65%(3) .64% .65% .65% .64%(3)
------------------------------------------------------------
Net Expenses .64%(3) .64% .65% .65% .64%(3)
------------------------------------------------------------
Net Investment Income 2.11%(3) 2.23% 2.46% 2.28% 2.36%(3)
------------------------------------------------------------
Portfolio Turnover Rate 61% 71% 103% 87% 55%
------------------------------------------------------------
Net Assets, End of Period (in millions) $163.8 $177.7 $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-22
