<PAGE>
PORTFOLIO MANAGER'S COMMENTARY
Neuberger Berman Advisers Management Trust December 31, 1998
- --------------------------------------------------------------------------------
AMT Liquid Asset Portfolio
Short-term rates were relatively stable in 1998 until the third quarter.
Yields started declining in September in anticipation that the Federal Reserve
would cut interest rates. Subsequently, the Fed did cut rates three times for a
total of 75 basis points (0.75%). As a result, we focused on relatively higher
yielding, high-quality sectors of the market such as commercial paper and bank
debt to enhance returns.
The highest quality short-term commercial paper was offered at 35 to 94 basis
points (0.35-0.94%) higher than Treasury bills over the course of the year. This
can be attributed to a few factors, the most influential being a reduction in
the Federal deficit. This can be seen in the following example. In January 1997,
there were two auctions of one-year Treasury bills totalling $38 billion. In
December, 1998, the monthly auction had been reduced to $11 billion. The three-
and six-month weekly auctions were also reduced. In March, 1997, an average of
$22 billion of weekly bills were issued. In December, 1998, the weekly bill
auctions averaged $15.5 billion. This shrinkage of supply, combined with a still
thriving economy, has made corporate paper and bank debt attractive investment
vehicles.
In the AMT Liquid Asset Portfolio we continue to be biased toward commercial
paper. At the close of this reporting period commercial paper comprised 84.2% of
the portfolio, and bank debt 6.7%. The balance of the portfolio is in U.S.
Government agency issues (7.6%) and variable rate notes (1.3%).
Sincerely,
/s/ Jospehine Mahaney
Josephine Mahaney
PORTFOLIO MANAGER
An investment in a money market fund is neither insured nor guaranteed by the
U.S. Government and there can be no assurance that the fund will be able to
maintain a stable net asset value of $1.00 per share.
Past performance is no guarantee of future results and shares when redeemed may
be more or less than their original cost.
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 can be
expected to vary from those of the other mutual funds.
A-2
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
<TABLE>
<CAPTION>
December 31,
1998
--------------
<S> <C>
ASSETS
Investment in Series, at value (Note A) $ 15,021,182
--------------
LIABILITIES
Payable for Trust shares redeemed 118,703
Dividends payable 55,298
Accrued expenses 10,349
Payable to administrator -- net (Note B) 7,311
--------------
191,661
--------------
NET ASSETS at value $ 14,829,521
--------------
NET ASSETS consist of:
Par value $ 14,831
Paid-in capital in excess of par value 14,816,214
Accumulated net realized losses on
investment (1,524)
--------------
NET ASSETS at value $ 14,829,521
--------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 14,831,045
--------------
NET ASSET VALUE, offering and redemption price per
share $1.00
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-1
<PAGE>
STATEMENT OF OPERATIONS
Neuberger Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1998
------------
<S> <C>
INVESTMENT INCOME
Investment income from Series (Note A) $ 827,626
------------
Expenses:
Administration fee (Note B) 59,497
Shareholder reports 15,234
Custodian fees 10,000
Legal fees 1,152
Trustees' fees and expenses 618
Auditing fees 127
Registration and filing fees 23
Miscellaneous 734
Expenses from Series (Notes A & B) 82,177
------------
Total expenses 169,562
Expenses reimbursed by administrator and
reduced by custodian fee expense offset
arrangement (Note B) (20,140)
------------
Total net expenses 149,422
------------
Net investment income 678,204
------------
REALIZED LOSS ON INVESTMENTS FROM SERIES (NOTE A)
Net realized loss on investment securities (9)
------------
Net increase in net assets resulting from
operations $ 678,195
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-2
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
<TABLE>
<CAPTION>
Year Ended
December 31,
1998 1997
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 678,204 $ 650,441
Net realized loss on investments
from Series (Note A) (9) (503)
-----------------------------
Net increase in net assets resulting
from operations 678,195 649,938
-----------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (678,204) (650,441)
-----------------------------
FROM TRUST SHARE TRANSACTIONS:
Proceeds from shares sold 8,196,907 14,043,637
Proceeds from reinvestment of
dividends 678,234 646,379
Payments for shares redeemed (7,486,052) (14,713,286)
-----------------------------
Net increase (decrease) from Trust
share transactions 1,389,089 (23,270)
-----------------------------
NET INCREASE (DECREASE) IN NET ASSETS 1,389,080 (23,773)
NET ASSETS:
Beginning of year 13,440,441 13,464,214
-----------------------------
End of year $ 14,829,521 $ 13,440,441
-----------------------------
NUMBER OF TRUST SHARES:
Sold 8,196,907 14,043,637
Issued on reinvestment of dividends 678,234 646,379
Redeemed (7,486,052) (14,713,286)
-----------------------------
Net increase (decrease) in shares
outstanding 1,389,089 (23,270)
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger Berman Advisers Management Trust December 31, 1998
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Liquid Asset 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 seven 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 Liquid Asset 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 December 31, 1998). The performance of the Fund is directly affected
by the performance of the Series. The financial statements of the Series,
including the Schedule of Investments, are included elsewhere in this report
and should be read in conjunction with the Fund's financial statements.
It is the policy of the Fund to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, valuation, and
dividend and distribution policies, which conform to general industry
practice, to enable it to do so. However, there is no assurance the Fund will
be able to maintain a stable net asset value per share.
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) FEDERAL INCOME TAXES: The Funds are treated as separate entities for Federal
income tax purposes. It is the policy of the Fund to continue to qualify as a
regulated investment company by complying with the provisions available to
certain investment companies, as defined in applicable sections of the
Internal Revenue Code, and to make distributions of investment company
taxable income and net capital gains (after reduction for any amounts
available for Federal income tax purposes as capital loss carryforwards)
sufficient to relieve it from all, or substantially all, Federal income
taxes. Accordingly, the Fund paid no Federal income taxes and no provision
for Federal income taxes was required.
4) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: The Fund earns income, net of
Series expenses, daily on its investment in the Series. It is the policy of
the Fund to declare dividends from net investment income on each business
day; such dividends are paid and reinvested monthly. Distributions from net
realized capital gains, if any, are normally distributed in February. To the
extent the Fund's net realized capital gains, if any, can be offset by
capital loss carryforwards ($1,012, $496, and $16, expiring in 2002, 2005,
and 2006, respectively, 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
B-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger Berman Advisers Management Trust December 31, 1998
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
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.
6) OTHER: All net investment income and realized capital gains and losses of the
Series are allocated pro rata among the Fund and any other investors in the
Series.
NOTE B -- ADMINISTRATION FEES, DISTRIBUTION ARRANGEMENTS, AND OTHER TRANSACTIONS
WITH AFFILIATES:
Fund shares are issued and redeemed in connection with investments in and
payments under certain variable annuity contracts and variable life insurance
policies issued through separate accounts of life insurance companies.
The Fund retains Neuberger Berman Management Incorporated ("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 0.40% of the Fund's average daily net assets. The Fund indirectly pays for
investment management services through its investment in the Series (see Note B
of Notes to Financial Statements of the Series).
Effective May 1, 1995, the trustees of the Trust adopted a non-fee
distribution plan for each series of the Trust.
Management has voluntarily undertaken to limit the Fund's expenses by
reimbursing 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) which exceed, in the aggregate, 1% 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 year
ended December 31, 1998, such excess expenses amounted to $20,005.
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. The impact of this arrangement, reflected in the Statement of
Operations under the caption Expenses from Series, was a reduction of $135.
NOTE C -- INVESTMENT TRANSACTIONS:
During the year ended December 31, 1998, additions and reductions in the
Fund's investment in its Series amounted to $7,186,759 and $6,783,897,
respectively.
B-5
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger Berman Advisers Management Trust
- --------------------------------------------------------------------------------
Liquid Asset Portfolio
The following table includes selected data for a share outstanding throughout
each year and other performance information derived from the Financial
Statements. It should be read in conjunction with its Series' Financial
Statements and notes thereto.
<TABLE>
<CAPTION>
Year Ended December 31,
1998(1) 1997(1) 1996(1) 1995(1) 1994
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $ .9999 $ .9999 $ 1.0000 $ .9997 $ 1.0009
--------------------------------------------------------------------------------
Income From Investment Operations
Net Investment Income .0456 .0461 .0443 .0493 .0328
Net Gains or Losses on Securities -- -- (.0001)(2) .0003 --
--------------------------------------------------------------------------------
Total From Investment Operations .0456 .0461 .0442 .0496 .0328
--------------------------------------------------------------------------------
Less Distributions
Dividends (from net investment
income) (.0456) (.0461) (.0443) (.0493) (.0328)
Distributions (from net capital
gains) -- -- -- -- (.0012)
--------------------------------------------------------------------------------
Total Distributions (.0456) (.0461) (.0443) (.0493) (.0340)
--------------------------------------------------------------------------------
Net Asset Value, End of Year $ .9999 $ .9999 $ .9999 $ 1.0000 $ .9997
--------------------------------------------------------------------------------
Total Return(3) +4.66% +4.71% +4.52% +5.04% +3.46%
--------------------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Year (in
millions) $ 14.8 $ 13.4 $ 13.5 $ 31.9 $ 5.3
--------------------------------------------------------------------------------
Ratio of Gross Expenses to Average
Net Assets(4) 1.01% 1.01% 1.01% 1.02% --
--------------------------------------------------------------------------------
Ratio of Net Expenses to Average
Net Assets(5) 1.00% 1.00% 1.00% 1.01% 1.02%
--------------------------------------------------------------------------------
Ratio of Net Investment Income to
Average Net Assets 4.56% 4.61% 4.44% 4.90% 3.28%
--------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-6
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger Berman Advisers Management Trust December 31, 1998
- --------------------------------------------------------------------------------
Liquid Asset 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 amounts shown at this caption for a share outstanding may not accord with
the change in aggregate gains and losses in securities for the year because
of the timing of sales and repurchases of Fund shares.
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. 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.
4) 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.
5) 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>
Year Ended December 31,
1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net Expenses 1.14% 1.12% 1.21% 1.25% 1.03%
--------------------------------------------------
</TABLE>
B-7
<PAGE>
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Trustees of
Neuberger Berman Advisers Management Trust and
Shareholders of Liquid Asset Portfolio
We have audited the accompanying statement of assets and liabilities of
Liquid Asset Portfolio, one of the series constituting the Neuberger Berman
Advisers Management Trust (the "Trust"), as of December 31, 1998, and the
related statement of operations for the year then ended, the statement of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Liquid
Asset Portfolio of Neuberger Berman Advisers Management Trust at December 31,
1998, the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended, in conformity
with generally accepted accounting principles.
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 29, 1999
B-8
<PAGE>
SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1998
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
<TABLE>
<CAPTION>
Principal Rating
Amount Moody's S&P Value(1)
- --------- ----------- --------- -----------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY
SECURITIES (7.6%)
$ 600,000 Fannie Mae, Discount Notes,
4.83%, due 3/25/99 AGY AGY $ 593,318
545,000 Freddie Mac, Discount Notes,
4.50% & 4.87%, due 1/4/99 &
4/13/99 AGY AGY 542,111
-----------
TOTAL U.S. GOVERNMENT AGENCY
SECURITIES 1,135,429
-----------
ASSET-BACKED COMMERCIAL PAPER
(5.9%)
500,000 Corporate Asset Funding Co.,
Inc., 5.27%, due 2/17/99 P-1 A-1+ 496,560
400,000 Asset Securitization
Cooperative Corp., 4.85%, due
3/1/99 P-1 A-1+ 396,820
-----------
TOTAL ASSET-BACKED COMMERCIAL
PAPER 893,380
-----------
CORPORATE COMMERCIAL PAPER
(78.3%)
500,000 Bayer Corp., 5.13%, due 1/4/99 P-1 A-1+ 499,786
325,000 Toyota Motor Credit Corp.,
5.15%, due 1/7/99 P-1 A-1+ 324,721
200,000 Ameritech Corp., 5.08%, due
1/11/99 P-1 A-1+ 199,718
400,000 Westpac Capital Corp., 5.47%,
due 1/13/99 P-1 A-1+ 399,271
335,000 H.J. Heinz Co., 5.25%, due
1/14/99 P-1 A-1 334,365
600,000 Gannett Co., Inc., 5.05% &
5.20%, due 1/15/99 & 1/19/99 P-1 A-1+ 598,631
500,000 National Australia Funding
Delaware Inc., 5.45%, due
1/19/99 P-1 A-1+ 498,638
500,000 BellSouth Capital Funding
Corp., 5.42%, due 1/22/99 P-1 A-1+ 498,419
330,000 Daimler-Benz North America
Corp., 5.07%, due 1/22/99 P-1 A-1 329,024
400,000 Amoco Co., 5.38%, due 1/26/99 P-1 A-1+ 398,506
470,000 Ford Motor Credit Co., 5.10%,
due 1/27/99 P-1 A-1 468,269
200,000 Procter & Gamble Co., 5.45%,
due 1/27/99 P-1 A-1+ 199,213
780,000 Walt Disney Co., 5.08%, due
1/27/99 P-1 A-1 777,138
500,000 Consolidated Natural Gas Co.,
5.12%, due 1/28/99 P-1 A-1+ 498,080
400,000 Merrill Lynch & Co., 5.44%,
due 2/5/99 P-1 A-1+ 397,884
700,000 Electricite de France, 5.11% &
5.43%, due 1/8/99 & 2/8/99 P-1 A-1+ 697,959
700,000 Coca-Cola Co., 4.90% & 5.07%,
due 2/5/99 & 2/19/99 P-1 A-1+ 695,679
480,000 Prudential Funding Corp.,
5.43%, due 2/19/99 P-1 A-1 476,452
700,000 USAA Capital Corp., 4.92% &
5.17%, due 1/11/99 & 2/26/99 P-1 A-1+ 697,130
300,000 Colonial Pipeline Co., 5.03%,
due 3/9/99 P-1 A-1+ 297,192
300,000 General Electric Capital
Corp., 5.31%, due 3/9/99 P-1 A-1+ 297,035
500,000 Illinois Tool Works, Inc.,
5.00% & 5.10%, due 1/4/99 &
3/25/99 P-1 A-1+ 496,389
300,000 Warner-Lambert Co., 5.30%, due
3/30/99 P-1 A-1+ 296,113
</TABLE>
B-9
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Advisers Managers Trust December 31, 1998
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
<TABLE>
<CAPTION>
Principal Rating
Amount Moody's S&P Value(1)
- --------- ----------- --------- -----------
<C> <S> <C> <C> <C>
$ 710,000 Nalco Chemical Co., 4.88%, due
5/21/99 P-1 A-1 $ 696,526
700,000 American Express Credit Corp.,
4.80%-5.21%, due
3/17/99-6/7/99 P-1 A-1 686,056
-----------
TOTAL CORPORATE COMMERCIAL
PAPER 11,758,194
-----------
CERTIFICATES OF DEPOSIT (6.7%)
500,000 Banque Nationale de Paris,
Yankee C.D., 5.67%, due 1/4/99 P-1 A-1 500,003
500,000 Chase Manhattan Bank, Domestic
C.D., 5.745%, due 5/10/99 P-1 A-1+ 499,907
-----------
TOTAL CERTIFICATES OF DEPOSIT 999,910
-----------
CORPORATE DEBT SECURITIES
(1.3%)
200,000 Merrill Lynch & Co., Variable
Rate Medium-Term Notes, Ser.
B, 5.30156%, due 11/5/99 P-1 A-1 199,895
-----------
TOTAL INVESTMENTS (99.8%) 14,986,808
Cash, receivables and other
assets, less liabilities
(0.2%) 34,375
-----------
TOTAL NET ASSETS (100.0%) $15,021,183
-----------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-10
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Advisers Managers Trust December 31, 1998
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
1) Investment securities of the Series are valued at amortized cost, which
approximates Federal income tax cost.
SEE NOTES TO FINANCIAL STATEMENTS
B-11
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
<TABLE>
<CAPTION>
December 31,
1998
--------------
<S> <C>
ASSETS
Investments in securities, at value* (Note
A) -- see Schedule of Investments $ 14,986,808
Cash 2,091
Interest receivable 35,278
Deferred organization costs (Note A) 5,944
Prepaid expenses and other assets 210
--------------
15,030,331
--------------
LIABILITIES
Accrued expenses 5,917
Payable to investment manager (Note B) 3,231
--------------
9,148
--------------
NET ASSETS Applicable to Investors' Beneficial
Interests $ 15,021,183
--------------
NET ASSETS consist of:
Paid-in capital $ 15,021,183
--------------
NET ASSETS $ 15,021,183
--------------
*Cost of investments $ 14,986,808
--------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-12
<PAGE>
STATEMENT OF OPERATIONS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
<TABLE>
<CAPTION>
For the
Year Ended
December 31,
1998
------------
<S> <C>
INVESTMENT INCOME
Interest income $ 827,626
------------
Expenses:
Investment management fee (Note B) 37,296
Custodian fees (Note B) 26,063
Accounting fees 10,000
Amortization of deferred organization and
initial offering expenses (Note A) 4,464
Legal fees 1,773
Trustees' fees and expenses 646
Auditing fees 609
Insurance expense 198
Miscellaneous 1,128
------------
Total expenses 82,177
Expenses reduced by custodian fee expense
offset arrangement (Note B) (135)
------------
Total net expenses 82,042
------------
Net investment income 745,584
------------
REALIZED LOSS ON INVESTMENTS
Net realized loss on investment securities
sold (9)
------------
Net increase in net assets resulting from
operations $ 745,575
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
<TABLE>
<CAPTION>
Year Ended
December 31,
1998 1997
-----------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 745,584 $ 714,287
Net realized loss on investments (9) (503)
-----------------------------
Net increase in net assets resulting
from operations 745,575 713,784
-----------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Additions 7,186,759 13,060,386
Reductions (6,783,897) (13,453,486)
-----------------------------
Net increase (decrease) in net
assets resulting from transactions
in investors' beneficial interests 402,862 (393,100)
-----------------------------
NET INCREASE IN NET ASSETS 1,148,437 320,684
NET ASSETS:
Beginning of year 13,872,746 13,552,062
-----------------------------
End of year $ 15,021,183 $ 13,872,746
-----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Advisers Managers Trust December 31, 1998
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: AMT Liquid Asset 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
seven separate operating series. Managers Trust is registered as a
diversified, open-end management investment company under the Investment
Company Act of 1940, as amended.
The assets of each series belong only to that series, and the liabilities
of each series are borne solely by that series and no other.
2) PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the Series' Schedule of Investments.
3) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Interest income, including accretion of
discount (adjusted for original issue discount, where applicable) and
amortization of premium, where applicable, is recorded on a constant basis to
maturity. Realized gains and losses from securities transactions are recorded
on the basis of identified cost.
4) FEDERAL INCOME TAXES: Managers Trust intends to comply with the requirements
of the Internal Revenue Code. Each series of Managers Trust also intends to
conduct its operations so that each of its investors will be able to qualify
as a regulated investment company. Each series will be treated as a
partnership for Federal income tax purposes and is therefore not subject to
Federal income tax.
5) ORGANIZATION EXPENSES: Expenses incurred by the Series in connection with its
organization are being amortized by the Series on a straight-line basis over
a five-year period. At December 31, 1998, the unamortized balance of such
expenses amounted to $5,944.
6) EXPENSE ALLOCATION: Expenses directly attributable to a series are charged to
that series. Expenses not directly attributed to a series are allocated, on
the basis of relative net assets, to each of the series of Managers Trust.
NOTE B -- MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES:
The Series retains Neuberger Berman Management Incorporated ("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
0.25% of the first $500 million of the Series' average daily net assets, 0.225%
of the next $500 million, 0.20% of the next $500 million, 0.175% of the next
$500 million, and 0.15% of average daily net assets in excess of $2 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. The impact of this arrangement, reflected in the Statement of
Operations under the caption Custodian fees, was a reduction of $135.
B-15
<PAGE>
FINANCIAL HIGHLIGHTS
Advisers Managers Trust
- --------------------------------------------------------------------------------
AMT Liquid Asset Investments
<TABLE>
<CAPTION>
Period
from
May 1,
1995(1)
to
December
Year Ended December 31, 31,
1998 1997 1996 1995
-----------------------------------------------
<S> <C> <C> <C> <C>
RATIOS TO AVERAGE NET ASSETS:
Gross Expenses(2) .55% .55% .54% .56%(3)
-----------------------------------------------
Net Expenses .55% .55% .54% .55%(3)
-----------------------------------------------
Net Investment Income 5.00% 5.05% 4.88% 5.31%(3)
-----------------------------------------------
Net Assets, End of Year (in millions) $15.0 $13.9 $13.6 $32.2
-----------------------------------------------
</TABLE>
1) The date investment operations commenced.
2) The Series is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
3) Annualized.
B-16
<PAGE>
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Board of Trustees of
Advisers Managers Trust and
Owners of Beneficial Interest of AMT Liquid Asset Investments
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of AMT Liquid Asset Investments, one of
the series constituting the Advisers Managers Trust (the "Trust"), as of
December 31, 1998, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1998, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of AMT
Liquid Asset Investments of Advisers Managers Trust at December 31, 1998, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the periods indicated therein, in conformity with generally accepted
accounting principles.
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
January 29, 1999
B-17
<PAGE>
LIQUID ASSET PORTFOLIO
NEUBERGER BERMAN
ADVISERS MANAGEMENT TRUST
ANNUAL REPORT
DECEMBER 31, 1998
NMAAR1071298
