<PAGE>
MID-CAP GROWTH PORTFOLIO
NEUBERGER BERMAN
ADVISERS MANAGEMENT TRUST
SEMI-ANNUAL REPORT
JUNE 30, 2000
A0081 08/00
<PAGE>
PORTFOLIO MANAGERS' COMMENTARY
Neuberger Berman Advisers Management Trust June 30, 2000
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
JENNIFER SILVER & BROOKE COBB, PORTFOLIO CO-MANAGERS
The Neuberger Berman AMT Mid-Cap Growth Portfolio delivered a 12.79% return,
but modestly underperformed its S&P MidCap 400/BARRA Growth Index benchmark
(14.95% return) in the first half of 2000(1). On average, our technology
investments rewarded us, as did our health care, energy, and utilities stock
holdings (51.6%, 15.0%, 3.9%, and 3.6% of total equity market value,
respectively, as of June 30, 2000). Our consumer oriented investments restrained
performance, with a few of our selections reporting disappointing earnings, and
others meeting or beating earnings forecasts but still declining in share price.
The market for technology stocks in the first half of 2000 resembled the tale
of Dr. Jekyll and Mr. Hyde. The good Dr. Jekyll held sway in January and
February as tech stocks continued a strong advance that began last October. Then
the evil Mr. Hyde took over in early March and terrorized tech investors until
late May. Suddenly, Dr. Jekyll reappeared and tech stocks rebounded strongly in
June. Through it all, we remained focused on what we term "new technology"
stocks: primarily companies providing materials and tools for building the
high-speed communications networks and the Internet infrastructure.
Despite their earnings strength, these "new technology" stocks were caught up
in the indiscriminate tech sell-off. But because of their earnings, they led the
rebound. We steered clear of the profitless "dot-coms" and avoided "old
technology" sectors like personal computers and commodity semiconductors, which
we believed were vulnerable to earnings disappointments. In general, this
strategy worked in our favor, as evidenced by good six-month gains for our tech
holdings compared to the technology oriented Nasdaq Composite's -2.54% loss in
the first half.
We employed a similar strategy in the health care sector, focusing on
biotechnology and genomic companies generating strong earnings from new products
and services. This group was also volatile, but ultimately those companies that
lived up to earnings expectations performed relatively well.
Our consumer cyclicals and consumer staples investments (4.9% and 8.7% of
total equity market value, respectively) did not fare as well. We owned several
stocks that missed their numbers and true to our discipline, we eliminated them
from the portfolio. The majority of our consumer sector holdings met or
surpassed earnings expectations yet still declined due to investors' concern
that higher interest rates would eventually restrain profitability. We have
sharpened our analyst pencils on our consumer holdings and feel confident they
can deliver attractive earnings gains that may surprise on the upside. We put
these stocks in our "performance in the warehouse" category -- good earnings
that have not yet translated into good returns.
We see indications that the economy is slowing and that interest rates may
stabilize. While the Federal Reserve remains on watch, it did not raise
short-term rates at its last meeting. While the broad economy may slow somewhat,
we expect technology spending to remain robust. The so-called Y2K transition,
which soaked up a lot of companies' technology budgets in 1998-99, is now
history. We believe much of future spending will go to building high-speed
communications networks and further developing Internet capabilities. We believe
the Portfolio is positioned to take advantage of this spending, increasing our
confidence in the earnings growth prospects of our technology holdings.
In closing, we believe technology will continue to be the pre-eminent growth
industry in the world and are committed to participating by devoting Portfolio
assets to tech companies that can deliver on their earnings potential.
A-1
<PAGE>
The rest of the Portfolio also meets our fundamental criteria. Company earnings
of the stocks held in the Portfolio are projected to grow by 33% annually over
the next five years. If a high percentage of our holdings continue to meet or
beat consensus earnings projections, returns should continue to be quite
rewarding.
Sincerely,
/s/ Jennifer Silver /s/ Brooke Cobb
------------------- ---------------
Jennifer Silver Brooke Cobb
PORTFOLIO CO-MANAGER PORTFOLIO CO-MANAGER
(1)65.11% and 47.92% were the total returns for the 1-year and since inception
(11/3/97) for the periods ended June 30, 2000. Neuberger Berman Management
Inc. ("NBMI") has agreed to absorb certain expenses of the AMT Portfolios.
Without this arrangement, which is subject to change, the total returns of
the Portfolios would be less. Total return includes reinvestment of dividends
and capital gains distributions. Performance data quoted represents past
performance and the investment return 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 fees and
expenses charged under the variable insurance contracts.
The S&P MidCap 400/BARRA Growth Index is a benchmark for mid-cap growth stock
performance. It is constructed of companies in the S&P MidCap 400 Index,
which is a market value weighted index for mid-cap stock price movement, with
higher price-to-book ratios than the companies in its value index
counterpart. 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 this
index are prepared or obtained by NBMI 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 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.
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-2
<PAGE>
SCHEDULE OF INVESTMENTS
Neuberger Berman Advisers Management Trust June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
--------------------- ------------
<C> <S> <C>
COMMON STOCKS (94.0%)
BUSINESS SERVICES (4.9%)
311,500 Concord EFS $ 8,099,000
146,900 CSG Systems International 8,235,581
136,800 Fiserv, Inc. 5,916,600
44,100 Tektronix, Inc. 3,263,400
------------
25,514,581
------------
CAPITAL GOODS (1.8%)
75,300 Waters Corp. 9,398,381
------------
COMMUNICATIONS (7.1%)
93,000 American Tower 3,876,937
87,600 Comverse Technology 8,146,800
18,400 E-Tek Dynamics 4,854,150
76,200 Efficient Networks 5,605,462
115,700 McLeodUSA Inc. 2,393,544
25,400 Next Level Communications 2,178,050
60,700 NTL Inc. 3,634,413
38,500 Redback Networks 6,853,000
------------
37,542,356
------------
CONSUMER CYCLICALS (8.2%)
166,500 Emmis Communications 6,888,937
56,900 Entercom Communications 2,773,875
108,700 Gemstar International Group 6,679,955
143,400 Harley-Davidson 5,520,900
106,500 Univision Communications 11,022,750
147,700 USA Networks 3,194,013
211,100 Westwood One 7,203,787
------------
43,284,217
------------
CONSUMER STAPLES (0.8%)
90,000 Estee Lauder 4,449,375
------------
ELECTRICAL EQUIPMENT (14.0%)
45,100 Altera Corp. 4,597,381
75,100 Applied Micro Circuits 7,416,125
</TABLE>
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
--------------------- ------------
<C> <S> <C>
238,800 Atmel Corp. $ 8,805,750
158,200 Conexant Systems 7,692,475
50,400 GlobeSpan, Inc. 6,152,737
87,200 Integrated Device Technology 5,221,100
98,200 Intersil Holding 5,308,937
113,400 Jabil Circuit 5,627,475
115,300 KLA-Tencor 6,752,256
69,000 Millipore Corp. 5,200,875
62,000 National Semiconductor 3,518,500
15,800 Rambus Inc. 1,627,400
25,800 Vishay Intertechnology 978,788
63,000 Vitesse Semiconductor 4,634,438
------------
73,534,237
------------
ENERGY (7.0%)
168,600 Calpine Corporation 11,085,450
69,500 Coastal Corp. 4,230,813
89,000 Cooper Cameron 5,874,000
33,900 Dynegy Inc. 2,315,794
250,300 Rowan Companies 7,602,862
159,000 Union Pacific Resources Group 3,498,000
55,500 Weatherford International 2,209,594
------------
36,816,513
------------
FINANCE (0.4%)
46,600 eSPEED, Inc. 2,024,188
------------
FINANCIAL SERVICES (2.0%)
93,200 Capital One Financial 4,159,050
35,900 Lehman Brothers Holdings 3,394,794
34,800 Providian Financial 3,132,000
------------
10,685,844
------------
HARDWARE (5.1%)
98,700 Flextronics International 6,779,456
52,900 Network Appliance 4,258,450
</TABLE>
B-1
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Neuberger Berman Advisers Management Trust June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
--------------------- ------------
<C> <S> <C>
77,000 QLogic Corp. $ 5,086,813
123,200 Sanmina Corp. 10,533,600
------------
26,658,319
------------
HEALTH CARE (14.1%)
10,600 Abgenix, Inc. 1,270,509
24,900 ALZA Corp. 1,472,213
79,500 Forest Laboratories 8,029,500
340,200 Health Management Associates 4,443,862
26,500 Human Genome Sciences 3,534,438
36,800 IDEC Pharmaceuticals 4,317,100
61,050 King Pharmaceuticals 2,678,569
194,400 MedImmune, Inc. 14,385,600
82,600 Millennium Pharmaceuticals 9,240,875
57,900 MiniMed Inc. 6,832,200
87,000 PE Corp.-PE Biosystems Group 5,731,125
56,800 QLT PhotoTherapeutics 4,391,350
65,400 Sepracor Inc. 7,888,875
------------
74,216,216
------------
INTERNET (11.2%)
58,800 Art Technology Group 5,935,125
60,800 BroadVision, Inc. 3,089,400
39,100 Clarent Corp. 2,795,650
53,900 Digex, Inc. 3,661,831
183,700 Intuit Inc. 7,600,588
72,100 Phone.com 4,695,513
212,500 Portal Software 13,573,437
45,200 PurchasePro.com 1,853,200
110,300 Safeguard Scientifics 3,536,494
35,500 VeriSign, Inc. 6,265,750
111,300 Vignette Corp. 5,789,339
------------
58,796,327
------------
</TABLE>
<TABLE>
<CAPTION>
Number Market
of Shares Value(1)
--------------------- ------------
<C> <S> <C>
MEDIA & ENTERTAINMENT (0.2%)
27,900 TV Guide $ 955,575
------------
RETAIL (4.8%)
74,000 Best Buy 4,680,500
84,000 Dollar Tree Stores 3,323,250
40,000 Fastenal Co. 2,025,000
183,200 Limited, Inc. 3,961,700
20,500 Quaker Oats 1,540,063
126,700 Starbucks Corp. 4,838,356
71,100 Tiffany & Co. 4,799,250
------------
25,168,119
------------
SOFTWARE (7.6%)
35,700 Adobe Systems 4,641,000
157,200 Bea Systems 7,771,575
35,600 Micromuse Inc. 5,891,244
208,000 Peregrine Systems 7,215,000
121,600 Rational Software 11,301,200
57,800 RealNetworks, Inc. 2,922,512
------------
39,742,531
------------
TELECOMMUNICATIONS (4.8%)
90,300 Amdocs Limited 6,930,525
129,200 Intermedia Communications 3,843,700
139,300 Metromedia Fiber Network 5,528,469
33,700 VoiceStream Wireless 3,919,204
154,850 WinStar Communications 5,245,544
------------
25,467,442
------------
TOTAL COMMON STOCKS
(COST $435,636,331) 494,254,221
------------
</TABLE>
B-2
<PAGE>
SCHEDULE OF INVESTMENTS (Cont'd)
Neuberger Berman Advisers Management Trust June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
<TABLE>
<CAPTION>
Principal Market
Amount Value(1)
--------------------- ------------
<C> <S> <C>
CORPORATE COMMERCIAL PAPER
(3.4%)
$ 5,000,000 Ford Motor Credit Co., 6.72%,
due 7/3/00 $ 4,998,133
5,000,000 Goldman Sachs Group, 6.65%,
due 7/6/00 4,995,382
8,000,000 General Motors Acceptance
Corp., 6.70%, due 7/10/00 7,986,600
------------
TOTAL CORPORATE COMMERCIAL
PAPER (COST $17,980,115) 17,980,115(2)
------------
REPURCHASE AGREEMENT (2.1%)
11,127,000 State Street Bank and Trust
Co. Repurchase Agreement,
6.65%, due 7/3/00, dated
06/30/00, Maturity Value
$11,133,166, Collateralized by
$11,355,000 Fannie Mae,
Medium-Term Notes, 6.40%,
due 9/27/01 (Collateral Value
$11,462,519) (COST
$11,127,000) 11,127,000(2)
------------
SHORT-TERM INVESTMENTS (6.0%)
$31,403,970 N&B Securities Lending Quality
Fund, LLC
(COST $31,403,970) $ 31,403,970(2)
------------
TOTAL INVESTMENTS (105.5%)
(COST $496,147,416) 554,765,306(3)
Liabilities, less cash,
receivables and other assets
[(5.5%)] (28,744,767)
------------
TOTAL NET ASSETS (100.0%) $526,020,539
------------
</TABLE>
SEE NOTES TO SCHEDULE OF INVESTMENTS
B-3
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS
Neuberger Berman Advisers Management Trust June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
1) Investment securities of the Fund 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 Fund values
all other securities by a method the trustees of the 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, 2000, the cost of investments for U.S. Federal income tax
purposes was $496,276,552. Gross unrealized appreciation of investments was
$79,037,266 and gross unrealized depreciation of investments was $20,548,512,
resulting in net unrealized appreciation of $58,488,754, based on cost for
U.S. Federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS
B-4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
Neuberger Berman Advisers Management Trust
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
<TABLE>
<CAPTION>
June 30,
2000
(UNAUDITED)
<S> <C>
-------------
ASSETS
Investments in securities, at market value
(Cost $496,147,416) (Note A) -- see
Schedule of Investments $554,765,306
Cash 125
Receivable for securities sold 2,506,327
Receivable for Fund shares sold 1,002,869
Dividends and interest receivable 850,284
Deferred organization costs (Note A) 12,810
Prepaid expenses and other assets 811
-------------
559,138,532
-------------
LIABILITIES
Payable for collateral on securities loaned
(Note A) 31,403,970
Accrued expenses and other payables 870,246
Payable for securities purchased 497,876
Payable to investment manager (Note B) 214,586
Payable to administrator -- net (Note B) 127,651
Payable for Fund shares redeemed 3,664
-------------
33,117,993
-------------
NET ASSETS at value $526,020,539
-------------
NET ASSETS consist of:
Par value $ 19,196
Paid-in capital in excess of par value 455,888,189
Accumulated undistributed net investment
loss (575,256)
Accumulated net realized gains on
investments 12,070,520
Net unrealized appreciation in value of
investment securities 58,617,890
-------------
NET ASSETS at value $526,020,539
-------------
SHARES OUTSTANDING
($.001 par value; unlimited shares
authorized) 19,195,569
-------------
NET ASSET VALUE, offering and redemption price per
share $27.40
-------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-5
<PAGE>
STATEMENT OF OPERATIONS
Neuberger Berman Advisers Management Trust
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
<TABLE>
<CAPTION>
For the
Six Months
Ended
June 30,
2000
(UNAUDITED)
<S> <C>
-----------
INVESTMENT INCOME
Income:
Interest income $ 1,112,883
Dividend income 92,320
-----------
Total income 1,205,203
-----------
Expenses:
Investment management fee (Note B) 980,684
Administration fee (Note B) 542,570
Reimbursement of expenses previously assumed
by administrator (Note B) 119,803
Custodian fees (Note B) 75,091
Trustees' fees and expenses 16,183
Legal fees 14,747
Auditing fees 11,764
Shareholder reports 8,989
Amortization of deferred organization and
initial offering expenses (Note A) 2,726
Miscellaneous 8,929
-----------
Total expenses 1,781,486
Expenses reduced by custodian fee expense
offset arrangement (Note B) (1,027)
-----------
Total net expenses 1,780,459
-----------
Net investment loss (575,256)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment securities
sold 12,292,936
Change in net unrealized appreciation of
investment securities 7,647,632
-----------
Net gain on investments 19,940,568
-----------
Net increase in net assets resulting from
operations $19,365,312
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-6
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Neuberger Berman Advisers Management Trust
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
<TABLE>
<CAPTION>
Six Months
Ended Year
June 30, Ended
2000 December 31,
(UNAUDITED) 1999
<S> <C> <C>
--------------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss $ (575,256) $ (244,566)
Net realized gain on investments 12,292,936 139,075
Change in net unrealized
appreciation of investments 7,647,632 46,275,779
--------------------------
Net increase in net assets resulting
from operations 19,365,312 46,170,288
--------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments (115,026) (937,896)
--------------------------
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 392,578,516 105,009,441
Proceeds from reinvestment of
distributions 115,026 937,896
Payments for shares redeemed (45,777,044) (22,350,308)
--------------------------
Net increase from Fund share
transactions 346,916,498 83,597,029
--------------------------
NET INCREASE IN NET ASSETS 366,166,784 128,829,421
NET ASSETS:
Beginning of period 159,853,755 31,024,334
--------------------------
End of period $526,020,539 $159,853,755
--------------------------
Accumulated undistributed net
investment loss at end of period $ (575,256) $ --
--------------------------
NUMBER OF FUND SHARES:
Sold 14,408,586 5,913,481
Issued on reinvestment of
distributions 3,738 63,759
Redeemed (1,795,618) (1,310,621)
--------------------------
Net increase in shares outstanding 12,616,706 4,666,619
--------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
B-7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Neuberger Berman Advisers Management Trust June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1) GENERAL: Mid-Cap Growth 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.
Prior to May 1, 2000, the Fund was part of a master/feeder structure,
investing all of its net investable assets in AMT Mid-Cap Growth Investments,
a series of Advisers Managers Trust. Effective May 1, 2000, the Fund
converted to a conventional fund structure. The Fund redeemed its investment
in AMT Mid-Cap Growth Investments in return for delivery of the portfolio
securities, at current net asset value, subject to the liabilities of AMT
Mid-Cap Growth Investments.
2) PORTFOLIO VALUATION: Investment securities are valued as indicated in the
notes following the 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 Fund
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: 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.
5) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: 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
B-8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger Berman Advisers Management Trust June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Mid-Cap Growth 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.
6) ORGANIZATION EXPENSES: Organization expenses incurred by the Fund are being
amortized on a straight-line basis over a five-year period. At June 30, 2000,
the unamortized balance of such expenses amounted to $12,810.
7) 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.
8) 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 the Trust's Board of Trustees,
monitors the creditworthiness of the parties to whom the Fund makes security
loans. The Fund 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 Fund entered into a
Securities Lending Agreement with Morgan Stanley & Co. Incorporated
("Morgan"). The Fund receives cash collateral equal to at least 100% of the
current market value of the loaned securities. The Fund 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 ("State
Street") pursuant to guidelines approved by the Trust's investment manager.
Income earned on the investment vehicle is paid to Morgan monthly. The Fund
receives a fee, payable monthly, negotiated by the Fund and Morgan, based on
the number and duration of the lending transactions. At June 30, 2000, the
value of the securities loaned and the value of the collateral were
$30,788,216 and $31,403,970, respectively.
9) REPURCHASE AGREEMENTS: The Fund may enter into repurchase agreements with
institutions that the Fund's investment manager has determined are
creditworthy. Each repurchase agreement is recorded at cost. The Fund
requires that the securities purchased in a repurchase transaction be
transferred to the custodian in a manner sufficient to enable the Fund to
obtain those securities in the event of a default under the repurchase
agreement. The Fund 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 Fund under each such repurchase agreement.
NOTE B -- MANAGEMENT FEES, 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
investment manager under a Management Agreement. For such investment management
services, the Fund pays Management a fee at the annual rate of 0.55% of the
first $250 million of the Fund's 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.
B-9
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger Berman Advisers Management Trust June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
The Fund retains 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.
Effective May 1, 1995, the trustees of the Trust adopted a non-fee
distribution plan for each series of the Trust.
Management has contractually undertaken through April 30, 2001 to reimburse
the Fund for its 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"). For the six months ended June 30, 2000, no reimbursement to the
Fund was required. The Fund has agreed to repay Management through December 31,
2004 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, and the repayment is made within three years after the year
in which Management issued the reimbursement. For the six months ended June 30,
2000, the Fund reimbursed Management $119,803 under this agreement. At June 30,
2000, the Fund has no remaining contingent liability to Management under the
agreement.
Management and Neuberger Berman, LLC ("Neuberger"), a member firm of The New
York Stock Exchange and sub-adviser to the Fund, are wholly owned subsidiaries
of Neuberger Berman Inc., a publicly held company. Neuberger is retained by
Management to furnish it with investment recommendations and research
information without added cost to the Fund. Several individuals who are officers
and/or trustees of the Trust are also employees of Neuberger and/or Management.
The Fund 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 $1,027.
NOTE C -- SECURITIES TRANSACTIONS:
During the six months ended June 30, 2000, there were purchase and sale
transactions (excluding short-term securities) of $484,848,175 and $163,757,426,
respectively.
During the six months ended June 30, 2000, brokerage commissions on
securities transactions amounted to $183,062, of which Neuberger received
$39,881, and other brokers received $143,181.
NOTE D -- LINE OF CREDIT:
At June 30, 2000, the Fund was a holder of a single committed, unsecured
$100,000,000 line of credit with State Street, to be used only for temporary or
emergency purposes. Interest is charged on borrowings under this agreement at
the overnight Federal Funds Rate plus 0.75% per annum. A facility fee of 0.09%
(0.07% prior to October 1, 1999) per annum of the available line of credit is
charged, of which the Fund has agreed to pay its pro rata share, based on the
ratio of its individual net assets to the net assets of all participants at the
time the fee is due and payable. The fee is paid quarterly in arrears. No
compensating balance is required. Other investment companies managed by
Management also participate in this line of credit on the same terms. Because
several investment companies participate, there is no assurance that the Fund
will have access to the entire $100,000,000 at any particular time. The Fund had
no loans outstanding pursuant to this line of credit at June 30, 2000, nor had
the Fund utilized this line of credit at any time prior to that date.
B-10
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Cont'd)
Neuberger Berman Advisers Management Trust June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
NOTE E -- 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-11
<PAGE>
FINANCIAL HIGHLIGHTS
Neuberger Berman Advisers Management Trust
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio(1)
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.(2)
<TABLE>
<CAPTION>
Six Months Ended Period from
June 30, November 3, 1997(3) to
2000 Year Ended December 31, December 31,
(UNAUDITED) 1999 1998 1997
<S> <C> <C> <C> <C>
----------------------------------------------------------------------
Net Asset Value, Beginning of Period $24.30 $16.22 $11.72 $10.00
----------------------------------------------------------------------
Income From Investment Operations
Net Investment Income (Loss) (.04) (.07) (.03) .01
Net Gains or Losses on Securities
(both realized and unrealized) 3.15 8.55 4.61 1.71
----------------------------------------------------------------------
Total From Investment Operations 3.11 8.48 4.58 1.72
----------------------------------------------------------------------
Less Distributions
Dividends (from net investment
income) -- -- (.01) --
Distributions (from net capital
gains) (.01) (.40) (.07) --
----------------------------------------------------------------------
Total Distributions (.01) (.40) (.08) --
----------------------------------------------------------------------
Net Asset Value, End of Period $27.40 $24.30 $16.22 $11.72
----------------------------------------------------------------------
Total Return(4) +12.79%(5) +53.89% +39.28% +17.20%(5)
----------------------------------------------------------------------
Ratios/Supplemental Data
Net Assets, End of Period (in
millions) $526.0 $159.9 $ 31.0 $ 1.7
----------------------------------------------------------------------
Ratio of Gross Expenses to Average
Net Assets(6) .99%(7) 1.00% 1.00% 1.05%(7)
----------------------------------------------------------------------
Ratio of Net Expenses to Average Net
Assets(8) .98%(7) 1.00% 1.00% 1.00%(7)
----------------------------------------------------------------------
Ratio of Net Investment Income
(Loss) to Average Net Assets (.32)%(7) (.40)% (.20)% .83%(7)
----------------------------------------------------------------------
Portfolio Turnover Rate 49% 100% 106% 20%
----------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL HIGHLIGHTS
B-12
<PAGE>
NOTES TO FINANCIAL HIGHLIGHTS
Neuberger Berman Advisers Management Trust June 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
Mid-Cap Growth Portfolio
1) The per share amounts and ratios which are shown reflect income and expenses,
including the Fund's proportionate share of AMT Mid-Cap Growth Investment's
income and expenses under the prior master/feeder fund structure.
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) 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.
5) Not annualized.
6) The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset arrangements.
7) Annualized.
8) 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
Year Ended November 3, 1997 to
December 31, December 31,
1999 1998 1997
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Expenses 1.08% 1.43% 17.73%
</TABLE>
Had the Fund not reimbursed Management, the annualized ratio of net expenses
to average net assets would have been:
<TABLE>
<CAPTION>
Six Months
Ended
June 30,
2000
--------------------------------------------------------------------------
<S> <C>
Net Expenses .92%
</TABLE>
B-13
