As filed with the Securities and Exchange Commission on September 9, 2011
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-4255
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
(Exact Name of the Registrant as Specified in Charter)
605 Third Avenue, 2nd Floor
New York, New York 10158-0180
(Address of Principal Executive Offices - Zip Code)
Robert Conti, Chief Executive Officer
Neuberger Berman Advisers Management Trust
605 Third Avenue, 2nd Floor
New York, New York 10158-0180
Jeffrey S. Puretz, Esq.
Dechert LLP
1775 I Street, N.W.
Washington, D.C. 20006
(Names and Addresses of agents for service)
Registrant’s Telephone Number, including area code: (212) 476-8800
Date of fiscal year end: December 31
Date of reporting period: June 30, 2011
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (the "Act") (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO SHAREHOLDERS.
The following are copies of the semi-annual reports transmitted to shareholders pursuant to Rule 30e-1 under the Act.
Neuberger Berman
Advisers Management Trust
Balanced Portfolio
I Class Shares
Semi-Annual Report
June 30, 2011
B0731 08/11
Balanced Portfolio Commentary
The Neuberger Berman Advisors Management Trust (AMT) Balanced Portfolio posted a 6.14% return for the six months ended June 30, 2011. The Portfolio's equity component outperformed the Russell Midcap® Growth Index. The Portfolio's fixed income component outperformed the Barclays Capital 1-3 Year U.S. Government/Credit Index for the period.
Equities
For the first half of 2011, market performance across the equity spectrum was strong, even considering the ongoing rotation between "risk on" and "risk off" investor sentiment. Growth outperformed value, and mid-cap growth outperformed both large- and small-cap growth during the period. Earnings continued to be strong in the mid-cap growth space, across economic sectors. In our view, mid-cap companies are often in the economic "sweet spot," offering new products or services in the right marketplaces. The first half of the year also provided a favorable environment for fundamentals-driven quality growth managers.
From an economic perspective, the year started out very strong, but appeared to hit a soft patch during the second quarter due to a number of factors, including continued weakness in Europe along with renewed worry about the region's sovereign debt crisis, significant global supply chain disruptions that followed the earthquake in Japan, the Chinese government's purposeful slowing of that country's robust economy, and the heightened pressures of rising commodity prices, particularly oil.
These factors plus ongoing malaise on the housing market and a lack of significant improvement in unemployment negatively impacted investor sentiment. Regarding unemployment, while merger and acquisition activity and capital investments have picked up, companies have remained reluctant to hire—a situation we think will continue to weigh on the market.
Throughout most of the reporting period, the Portfolio's equity component maintained above-benchmark weightings in Information Technology (IT), Energy, Industrials, and Health Care; and underweights in Consumer Discretionary and Staples, Materials, and Financials. Although Portfolio holdings did not significantly change, at the end of June the annual rebalancing of the Russell MidCap Growth Index accentuated the Portfolio's underweight relative to the benchmark in Materials, moved the Portfolio from an overweight to underweight position in Energy, and increased its overweight in IT.
During the period, stock selection was beneficial to performance versus the benchmark, with positive contributions coming primarily from within the Energy, Industrials, IT and, to a lesser extent, Health Care sectors. Stock selection within Consumer Discretionary, Consumer Staples and Financials detracted from results.
Going into the second half of the year, the Portfolio's equity component remains overweighted in IT, Industrials and Health Care and underweighted in Consumer stocks and Financials, positioning we expect to maintain. After the benchmark's rebalancing, the Portfolio is close to neutral in Energy, although we expect the sector to become an overweight later in the year.
We are cautiously optimistic about the equity market. We anticipate earnings will remain strong but to decelerate somewhat during the remainder of the year, and that economic growth will remain subdued. In our opinion, this type of environment plays to our strengths. In the past, quality has typically shined when investors have been discriminating and mindful of risk, and stock picking has had the potential to add value. We continue to focus on identifying quality growth companies with innovative products or services, global aspirations, and exceptional cash flows and top-line growth, with the management teams, strategic positions, operating models, and financial strength needed to continue to succeed in a competitive global economy.
Fixed Income
The first and second halves of the reporting period were a study in contrasts for the U.S. fixed income market. When the period began, there were general expectations for a strengthening economy and inflationary concerns given sharply
1
higher oil and food prices. Despite a host of geopolitical issues, Treasury yields moved higher (and Treasury prices moved lower) during the first half of the reporting period and non-Treasury fixed income securities generally produced solid returns. However, as the economy stumbled in the second half of the period, investors' risk aversion increased as they flocked to the perceived safety of Treasuries. In contrast, most non-Treasury securities generated relatively weak results compared with their Treasury counterparts.
Given the dramatic shift in investor sentiment, many of the strategies that initially supported the Portfolio's fixed income component, in particular its overweight, relative to the benchmark, in non-Treasury securities, gave back a portion of their gains as the reporting period progressed. For example, while the Portfolio's exposure to investment grade corporate bonds contributed to performance for the reporting period as a whole, their spreads (the difference in yield between Treasuries and other bond sectors) widened in May and June.
The non-agency mortgage-backed security (MBS) sector was also adversely impacted by the flight to quality during the second half of the period, as it served to temper investor demand. Exacerbating the situation was a glut of new supply, which flooded the market at a time when risk aversion was peaking. All told, the Portfolio's non-agency MBS exposure detracted from results during the reporting period.
Also impacting the Portfolio's performance was its duration and yield curve positioning. Having a shorter duration than the benchmark was not rewarded as interest rates declined during the reporting period. However, this was more than offset by the positives associated with the Portfolio's positioning on the yield curve.
A number of adjustments were made to the Portfolio's fixed income component during the reporting period. We significantly reduced exposure to Treasury securities as two-year rates fell to a near record low in June. The proceeds were diversified into a number of sectors that we felt offered better value, including agency MBS, commercial mortgage-backed securities, fixed-rate asset-backed securities and, to a lesser extent, investment grade corporate bonds. In addition, given the extremely low interest rate environment, we further reduced the Portfolio's duration in early June and moved even further shorter than the benchmark.
Looking ahead, while most spread sectors lagged Treasuries during the second quarter, we feel that they remain attractive given our expectations for a continued economic expansion, manageable core inflation and low short-term rates. We are also comfortable maintaining our current exposure in non-agency MBS. While their prices have weakened in recent months, in our view, they offer attractive risk-adjusted yields.
Sincerely,
Kenneth J. Turek, Thomas Sontag
Michael Foster and Richard Grau
Portfolio Co-Managers
The risks involved in seeking capital appreciation from investments primarily in mid-cap stocks and in investment grade bonds and other debt securities from U.S. government and corporate issuers are set forth in the prospectus and statement of additional information.
Mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
The composition, industries and holdings of the Portfolio are subject to change.
2
Balanced Portfolio
PORTFOLIO BY TYPE OF SECURITY
| (as a % of Total Net Assets) | |
| Asset-Backed Securities | | | 4.4 | % | |
| Common Stock | | | 66.8 | | |
| Corporate Debt | | | 9.8 | | |
| Mortgage-Backed Securities | | | 12.6 | | |
| U.S. Treasury Securities | | | 2.4 | | |
| Short-Term Investments | | | 4.0 | | |
| Liabilities, less cash, receivables and | | | |
| other assets | | | 0.0 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS1
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/11 | |
| | | Date | | 06/30/2011 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund* | |
Balanced Portfolio Class I | | 02/28/1989 | | | 6.14 | % | | | 24.74 | % | | | 2.75 | % | | | 2.79 | % | | | 6.83 | % | |
BofA Merrill Lynch 1-3 Year U.S. Treasury Index2 | | | | | 0.86 | % | | | 1.34 | % | | | 4.14 | % | | | 3.61 | % | | | 5.54 | % | |
Barclays Capital 1-3 Year U.S. Government/ Credit Index2** | | | | | 1.05 | % | | | 1.90 | % | | | 4.52 | % | | | 4.01 | % | | | 5.76 | % | |
Russell Midcap® Growth Index2 | | | | | 9.59 | % | | | 43.25 | % | | | 6.28 | % | | | 5.52 | % | | | 10.51 | % | |
Russell Midcap® Index2 | | | | | 8.08 | % | | | 38.47 | % | | | 5.30 | % | | | 7.59 | % | | | 11.56 | % | |
Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit https://www.nb.com.
* Index returns are as of the inception date 02/28/1989.
**The Fund's broad-based index used for comparison purposes has been changed from the BofA Merrill Lynch 1-3 Year U.S. Treasury Index to the Barclays Capital 1-3 Year U.S. Government/Credit Index because the new index more closely resembles the characteristics of the Fund's fixed income investments.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2010 was 1.93% for Class I shares (prior to any fee waivers or expense reimbursements). The expense ratio net of waivers and/or reimbursements was 1.86% for Class I shares. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Portfolio through 12/31/2014.
3
Endnotes
1 "Total Return" includes reinvestment of all income dividends and distributions. Results represent past performance and do not indicate future results. The value of an investment in the Portfolio and the return on the investment both will fluctuate, and redemption proceeds may be higher or lower than an investor's original cost. The performance information does not reflect fees and expenses of the variable annuity and variable life insurance policies or the qualified pension and retirement plans whose proceeds are invested in the Portfolio. Neuberger Berman Management LLC ("NBM LLC") has agreed to absorb certain expenses of the AMT Portfolios, including the Portfolio. Without this arrangement, which is subject to change, the total returns of the Portfolio may have been less.
2 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 31% of the total market capitalization of the Russell 1000 Index (which, in turn, consists of the 1,000 largest U.S. companies, based on the market capitalization). The Barclays Capital 1-3 Year U.S. Government/Credit Index is an unmanaged index that includes all bonds in the U.S. Government/Credit Index with at least one to three years to maturity. The U.S. Government/Credit Index includes all securities in the Government and Credit Indices. The Government Index includes Treasuries (i.e., public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (i.e., publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government). The Credit Index includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements. All bonds in the index must meet the following additional criteria: must have at least one year to final maturity regardless of call features; must have at least $250 million par amount outstanding; must be rated investment-grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Standard & Poor's, Moody's Investors Services, Inc., and Fitch, Inc.; must be fixed rate; must be dollar-denominated and non-convertible; and must be publicly issued. The BofA Merrill Lynch 1-3 Year U.S.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 NBM LLC and include reinvestment of all income dividends and distributions. The Portfolio may invest in securities not included in the above-described indices and may not invest in all securities included in the above-described indices.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not NBM LLC's own projections, and they may or may not be realized. In addition, any revision to a forecast could affect the market price of a security. By quoting them herein, NBM LLC does not offer an opinion as to the accuracy of and does not guarantee these forecasted numbers.
The investments for the Portfolio are managed by the same portfolio manager(s) who may manages 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.
The composition, industries and holdings of the Portfolio are subject to change.
Shares of the separate AMT Portfolios are not available to the general public. Shares of this Portfolio 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.
Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the AMT Portfolios. This report is prepared for the general information of shareholders and is not an offer of shares of the AMT Portfolios. Shares of the AMT Portfolios are sold only through the currently effective prospectuses, which must precede or accompany this report.
The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2011 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses
This table is designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2011 and held for the entire period. The table illustrates the fund's costs in two ways:
| Actual Expenses and Performance: | | The first section of the table provides information about actual account values and actual expenses in dollars, based on the fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period. | |
| |
Hypothetical Example for Comparison Purposes: | | The second section of the table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. | |
| |
Please note that the expenses in the table are meant to highlight your ongoing costs only. The table and expense example do not include any transaction costs, such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan. Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Expense Information as of 6/30/11 (Unaudited)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST BALANCED PORTFOLIO
| Actual | | Beginning Account Value 1/1/11 | | Ending Account Value 6/30/11 | | Expenses Paid During the Period* 1/1/11 – 6/30/11 | |
| Class I | | $ | 1,000.00 | | | $ | 1,061.40 | | | $ | 9.46 | | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,015.62 | | | $ | 9.25 | | |
* Expenses are equal to the annualized expense ratio of 1.85%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent half year divided by 365.
5
Schedule of Investments Balanced Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (66.8%) | | | |
| Aerospace & Defense (1.8%) | | | |
| | 2,400 | | | BE Aerospace | | $ | 97,944 | * | |
| | 1,562 | | | HEICO Corp. | | | 85,504 | | |
| | 800 | | | Precision Castparts | | | 131,720 | | |
| | | | 315,168 | | |
| Air Freight & Logistics (0.7%) | | | |
| | 1,500 | | | C.H. Robinson Worldwide | | | 118,260 | | |
| Auto Components (1.5%) | | | |
| | 1,750 | | | BorgWarner, Inc. | | | 141,383 | * | |
| | 3,900 | | | Gentex Corp. | | | 117,897 | | |
| | | | 259,280 | | |
| Biotechnology (0.8%) | | | |
| | 3,000 | | | Alexion Pharmaceuticals | | | 141,090 | * | |
| Capital Markets (1.1%) | | | |
| | 1,300 | | | Affiliated Managers Group | | | 131,885 | * | |
| | 1,875 | | | Stifel Financial | | | 67,238 | * | |
| | | | 199,123 | | |
| Chemicals (1.1%) | | | |
| | 1,650 | | | Airgas, Inc. | | | 115,566 | | |
| | 1,000 | | | Sigma-Aldrich | | | 73,380 | | |
| | | | 188,946 | | |
| Commercial Services & Supplies (1.3%) | | | |
| | 2,500 | | | Stericycle, Inc. | | | 222,800 | * | |
| Communications Equipment (0.8%) | | | |
| | 1,250 | | | Acme Packet | | | 87,663 | * | |
| | 1,900 | | | Juniper Networks | | | 59,850 | * | |
| | | | 147,513 | | |
| Computers & Peripherals (0.7%) | | | |
| | 2,300 | | | NetApp, Inc. | | | 121,394 | * | |
| Diversified Financial Services (1.3%) | | | |
| | 1,000 | | | IntercontinentalExchange Inc. | | | 124,710 | * | |
| | 2,900 | | | MSCI Inc. Class A | | | 109,272 | * | |
| | | | 233,982 | | |
| Electrical Equipment (3.3%) | | | |
| | 3,500 | | | AMETEK, Inc. | | | 157,150 | | |
| | 1,400 | | | Polypore International | | | 94,976 | * | |
| | 1,750 | | | Roper Industries | | | 145,775 | | |
| | 4,800 | | | Sensata Technologies Holding | | | 180,720 | * | |
| | | | 578,621 | | |
| NUMBER OF SHARES | | | | VALUE† | |
Electronic Equipment, Instruments & Components (2.4%) | | | |
| | 1,900 | | | Amphenol Corp. Class A | | $ | 102,581 | | |
| | 4,000 | | | National Instruments | | | 118,760 | | |
| | 3,800 | | | Trimble Navigation | | | 150,632 | * | |
| | 1,500 | | | Universal Display | | | 52,635 | * | |
| | | | 424,608 | | |
| Energy Equipment & Services (3.5%) | | | |
| | 1,250 | | | CARBO Ceramics | | | 203,687 | | |
| | 3,000 | | | Complete Production Services | | | 100,080 | * | |
| | 1,700 | | | Core Laboratories N.V. | | | 189,618 | | |
| | 1,500 | | | Oil States International | | | 119,865 | * | |
| | | | 613,250 | | |
| Food & Staples Retailing (0.5%) | | | |
| | 1,350 | | | Whole Foods Market | | | 85,658 | | |
| Food Products (0.7%) | | | |
| | 1,700 | | | Mead Johnson Nutrition | | | 114,835 | | |
| Health Care Equipment & Supplies (2.6%) | | | |
| | 1,900 | | | Edwards Lifesciences | | | 165,642 | * | |
| | 250 | | | Intuitive Surgical | | | 93,028 | * | |
| | 3,800 | | | NxStage Medical | | | 79,116 | * | |
| | 3,550 | | | Volcano Corp. | | | 114,629 | * | |
| | | | 452,415 | | |
| Health Care Providers & Services (1.5%) | | | |
| | 2,000 | | | Catalyst Health Solutions | | | 111,640 | * | |
| | 1,950 | | | HMS Holdings | | | 149,896 | * | |
| | | | 261,536 | | |
| Health Care Technology (1.5%) | | | |
| | 2,800 | | | Cerner Corp. | | | 171,108 | * | |
| | 1,000 | | | Quality Systems | | | 87,300 | | |
| | | | 258,408 | | |
| Hotels, Restaurants & Leisure (1.3%) | | | |
| | 2,000 | | | Arcos Dorados Holdings Class A | | | 42,180 | | |
| | 300 | | | Chipotle Mexican Grill | | | 92,457 | * | |
| | 2,150 | | | Hyatt Hotels Class A | | | 87,763 | * | |
| | | | 222,400 | | |
| Household Products (0.6%) | | | |
| | 2,800 | | | Church & Dwight | | | 113,512 | | |
| Internet Software & Services (0.8%) | | | |
| | 1,900 | | | Rackspace Hosting | | | 81,206 | * | |
| | 1,250 | | | WebMD Health | | | 56,975 | * | |
| | | | 138,181 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| IT Services (2.1%) | | | |
| | 2,300 | | | Cognizant Technology Solutions Class A | | $ | 168,682 | * | |
| | 3,800 | | | Sapient Corp. | | | 57,114 | * | |
| | 3,250 | | | VeriFone Systems | | | 144,137 | * | |
| | | | 369,933 | | |
| Life Science Tools & Services (1.0%) | | | |
| | 1,300 | | | Illumina, Inc. | | | 97,695 | * | |
| | 750 | | | Waters Corp. | | | 71,805 | * | |
| | | | 169,500 | | |
| Machinery (2.8%) | | | |
| | 1,300 | | | Cummins Inc. | | | 134,537 | | |
| | 2,400 | | | Danaher Corp. | | | 127,176 | | |
| | 2,000 | | | Donaldson Co. | | | 121,360 | | |
| | 1,900 | | | Pall Corp. | | | 106,837 | | |
| | | | 489,910 | | |
| Media (1.5%) | | | |
| | 2,200 | | | Discovery Communications Class A | | | 90,112 | * | |
| | 2,650 | | | Focus Media Holding ADR | | | 82,415 | * | |
| | 2,000 | | | Scripps Networks Interactive Class A | | | 97,760 | | |
| | | | 270,287 | | |
| Metals & Mining (0.5%) | | | |
| | 1,000 | | | Cliffs Natural Resources | | | 92,450 | | |
| Multiline Retail (1.8%) | | | |
| | 2,900 | | | Dollar Tree | | | 193,198 | * | |
| | 2,400 | | | Nordstrom, Inc. | | | 112,656 | | |
| | | | 305,854 | | |
| Oil, Gas & Consumable Fuels (2.5%) | | | |
| | 1,350 | | | Cabot Oil & Gas | | | 89,518 | | |
| | 2,000 | | | Concho Resources | | | 183,700 | * | |
| | 2,000 | | | Denbury Resources | | | 40,000 | * | |
| | 2,100 | | | Whiting Petroleum | | | 119,511 | * | |
| | | | 432,729 | | |
| Pharmaceuticals (2.6%) | | | |
| | 1,900 | | | Medicis Pharmaceutical Class A | | | 72,523 | | |
| | 1,750 | | | Perrigo Co. | | | 153,772 | | |
| | 1,900 | | | Salix Pharmaceuticals | | | 75,677 | * | |
| | 2,150 | | | Watson Pharmaceuticals | | | 147,770 | * | |
| | | | 449,742 | | |
| Professional Services (0.8%) | | | |
| | 3,800 | | | Verisk Analytics Class A | | | 131,556 | * | |
Real Estate Management & Development (0.8%) | | | |
| | 1,500 | | | Jones Lang LaSalle | | | 141,450 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Road & Rail (0.8%) | | | |
| | 2,800 | | | J.B. Hunt Transport Services | | $ | 131,852 | | |
Semiconductors & Semiconductor Equipment (2.3%) | | | |
| | 4,300 | | | Avago Technologies | | | 163,400 | | |
| | 1,500 | | | Cavium Inc. | | | 65,385 | * | |
| | 3,300 | | | Microchip Technology | | | 125,103 | | |
| | 2,000 | | | NXP Semiconductors | | | 53,460 | * | |
| | | | 407,348 | | |
| Software (8.4%) | | | |
| | 2,800 | | | ANSYS, Inc. | | | 153,076 | * | |
| | 1,900 | | | Ariba, Inc. | | | 65,493 | * | |
| | 1,250 | | | BMC Software | | | 68,375 | * | |
| | 2,150 | | | Check Point Software Technologies | | | 122,228 | * | |
| | 1,900 | | | Citrix Systems | | | 152,000 | * | |
| | 3,550 | | | Informatica Corp. | | | 207,426 | * | |
| | 1,900 | | | MICROS Systems | | | 94,449 | * | |
| | 3,400 | | | QLIK Technologies | | | 115,804 | * | |
| | 1,900 | | | RealD Inc. | | | 44,441 | * | |
| | 1,000 | | | Red Hat | | | 45,900 | * | |
| | 3,300 | | | Rovi Corp. | | | 189,288 | * | |
| | 850 | | | Salesforce.com, Inc. | | | 126,633 | * | |
| | 1,500 | | | Solera Holdings | | | 88,740 | | |
| | | | 1,473,853 | | |
| Specialty Retail (3.5%) | | | |
| | 2,400 | | | Bed Bath & Beyond | | | 140,088 | * | |
| | 2,900 | | | Dick's Sporting Goods | | | 111,505 | * | |
| | 1,900 | | | O'Reilly Automotive | | | 124,469 | * | |
| | 1,900 | | | Ross Stores | | | 152,228 | | |
| | 1,250 | | | Tractor Supply | | | 83,600 | | |
| | | | 611,890 | | |
| Textiles, Apparel & Luxury Goods (1.2%) | | | |
| | 1,750 | | | Coach, Inc. | | | 111,878 | | |
| | 1,500 | | | Phillips-Van Heusen | | | 98,205 | | |
| | | | 210,083 | | |
| Trading Companies & Distributors (2.1%) | | | |
| | 5,200 | | | Fastenal Co. | | | 187,148 | | |
| | 1,400 | | | MSC Industrial Direct Class A | | | 92,834 | | |
| | 1,500 | | | WESCO International | | | 81,135 | * | |
| | | | 361,117 | | |
| Wireless Telecommunication Services (2.3%) | | | |
| | 1,900 | | | American Tower Class A | | | 99,427 | * | |
| | 3,300 | | | NII Holdings | | | 139,854 | * | |
| | 4,100 | | | SBA Communications Class A | | | 156,579 | * | |
| | | | 395,860 | | |
| | | | | Total Common Stocks (Cost $7,330,316) | | | 11,656,394 | | |
See Notes to Schedule of Investments
7
| PRINCIPAL AMOUNT | | | | VALUE† | |
| U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (2.4%) | | | |
| $ | 200,000 | | | U.S. Treasury Bills, 0.07%, due 12/22/11 | | $ | 199,933 | | |
| | 215,000 | | | U.S. Treasury Notes, 2.00%, due 11/30/13 | | | 222,155 | | |
| | | | | Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (Cost $420,392) | | | 422,088 | | |
| Mortgage-Backed Securities (12.6%) | | | |
| Adjustable Alt-B Mixed Balance (0.4%) | | | |
| | 86,242 | | | Lehman XS Trust, Floating Rate, Ser. 2005-1, Class 2A1, 1.69%, due 7/25/35 | | | 64,770 | µ | |
| Adjustable Jumbo Balance (0.8%) | | | |
| | 197,925 | | | GMAC Mortgage Corp. Loan Trust, Ser. 2006-AR1, Class 1A1, 2.99%, due 4/19/36 | | | 144,065 | µ | |
| Adjustable Mixed Balance (2.0%) | | | |
| | 197,359 | | | Credit Suisse First Boston Mortgage Securities Corp., Ser. 2004-AR4, Class 2A1, 2.75%, due 5/25/34 | | | 179,438 | µ | |
| | 210,616 | | | First Horizon Mortgage Pass-Through Trust, Ser. 2005-AR5, Class 2A1, 2.75%, due 11/25/35 | | | 169,073 | µ | |
| | 11,313 | | | Harborview Mortgage Loan Trust, Ser. 2004-4, Class 3A, 1.32%, due 6/19/34 | | | 8,885 | µ | |
| | | | 357,396 | | |
| Commercial Mortgage-Backed (3.9%) | | | |
| | 148,615 | | | Bear Stearns Commercial Mortgage Securities, Inc., Ser. 2005-PWR8, Class AAB, 4.58%, due 6/11/41 | | | 153,209 | | |
| | 50,000 | | | Citigroup Commercial Mortgage Trust, Ser. 2006-C4, Class A2, 5.73%, due 3/15/49 | | | 53,037 | µ | |
| | 18,876 | | | Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser. 2006-CD2, Class AAB, 5.37%, due 1/15/46 | | | 19,764 | µ | |
| | 217,005 | | | JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2011-C3, Class A1, 1.87%, due 2/16/46 | | | 218,602 | ñ | |
| | 70,631 | | | Morgan Stanley Capital I, Ser. 2011-C1, Class A1, 2.60%, due 9/15/47 | | | 72,230 | ñ | |
| | 85,000 | | | Wachovia Bank Commercial Mortgage Trust, Ser. 2005-C22, Class A3, 5.29%, due 12/15/44 | | | 86,852 | µ | |
| | 71,650 | | | WF-RBS Commercial Mortgage Trust, Ser. 2011-C2, Class A1, 2.50%, due 2/15/44 | | | 73,164 | ñ | |
| | | | 676,858 | | |
| Mortgage-Backed Non-Agency (0.8%) | | | |
| | 89,910 | | | Countrywide Home Loans, Ser. 2005-R2, Class 2A4, 8.50%, due 6/25/35 | | | 95,977 | ñ | |
| | 46,225 | | | GSMPS Mortgage Loan Trust, Ser. 2005-RP3, Class 1A4, 8.50%, due 9/25/35 | | | 47,760 | ñ | |
| | | | 143,737 | | |
| Fannie Mae (2.4%) | | | |
| | 155,394 | | | Pass-Through Certificates, 5.50%, due 7/1/38 | | | 168,195 | | |
| | 139,039 | | | Pass-Through Certificates, 6.00%, due 10/1/38 | | | 152,844 | | |
| | 87,377 | | | Whole Loan, Ser. 2004-W8, Class PT, 11.33%, due 6/25/44 | | | 97,186 | µ | |
| | | | 418,225 | | |
| Freddie Mac (2.3%) | | | |
| | 118,203 | | | Pass-Through Certificates, 8.00%, due 11/1/26 | | | 135,116 | | |
| | 88,902 | | | Pass-Through Certificates, 8.50%, due 10/1/30 | | | 102,600 | | |
| | 150,000 | | | Pass-Through Certificates, 5.50%, due 11/1/37 | | | 162,404 | | |
| | | | 400,120 | | |
| �� | | | | Total Mortgage-Backed Securities (Cost $2,318,209) | | | 2,205,171 | | |
See Notes to Schedule of Investments
8
| PRINCIPAL AMOUNT | | | | VALUE† | |
| Corporate Debt Securities (9.8%) | | | |
| Banks (4.0%) | | | |
| $ | 75,000 | | | Bank of America Corp., Senior Unsecured Notes, 6.25%, due 4/15/12 | | $ | 77,982 | | |
| | 105,000 | | | Citigroup, Inc., Senior Unsecured Notes, 6.00%, due 12/13/13 | | | 114,164 | | |
| | 125,000 | | | Goldman Sachs Group, Inc., Senior Unsecured Notes, 6.60%, due 1/15/12 | | | 128,860 | | |
| | 135,000 | | | JP Morgan Chase & Co., Senior Unsecured Medium-Term Notes, 2.05%, due 1/24/14 | | | 136,005 | | |
| | 110,000 | | | Morgan Stanley, Senior Unsecured Notes, 2.88%, due 1/24/14 | | | 111,312 | | |
| | 125,000 | | | Westpac Banking Corp., Senior Unsecured Notes, 1.85%, due 12/9/13 | | | 126,357 | | |
| | | | 694,680 | | |
| Beverages (0.5%) | | | |
| | 75,000 | | | Anheuser-Busch Cos., Inc., Guaranteed Unsecured Notes, 4.95%, due 1/15/14 | | | 81,313 | | |
| Diversified Financial Services (2.0%) | | | |
| | 85,000 | | | American Express Credit Corp., Senior Unsecured Medium-Term Notes, Ser. C, 5.88%, due 5/2/13 | | | 91,506 | | |
| | 35,000 | | | Caterpillar Financial Services Corp., Unsecured Medium-Term Notes, Ser. F, 4.70%, due 3/15/12 | | | 36,045 | | |
| | 45,000 | | | Caterpillar Financial Services Corp., Senior Notes, 1.65%, due 4/1/14 | | | 45,531 | | |
| | 35,000 | | | ERAC USA Finance Co., Guaranteed Notes, 2.25%, due 1/10/14 | | | 35,349 | ñ | |
| | 145,000 | | | General Electric Capital Corp., Senior Unsecured Global Medium-Term Notes, 5.00%, due 4/10/12 | | | 150,042 | | |
| | | | 358,473 | | |
| Food (0.2%) | | | |
| | 31,000 | | | Kraft Foods, Inc., Senior Unsecured Notes, 6.25%, due 6/1/12 | | | 32,547 | | |
| Insurance (0.3%) | | | |
| | 50,000 | | | Berkshire Hathaway Finance Corp., Guaranteed Notes, 1.50%, due 1/10/14 | | | 50,444 | | |
| Media (1.3%) | | | |
| | 65,000 | | | DIRECTV Holdings LLC, Guaranteed Notes, 4.75%, due 10/1/14 | | | 71,150 | | |
| | 70,000 | | | NBC Universal, Inc., Senior Unsecured Notes, 2.10%, due 4/1/14 | | | 70,929 | ñ | |
| | 75,000 | | | Time Warner Cable, Inc., Guaranteed Notes, 5.40%, due 7/2/12 | | | 78,403 | | |
| | | | 220,482 | | |
| Office/Business Equipment (0.4%) | | | |
| | 60,000 | | | Xerox Corp., Senior Unsecured Notes, 5.50%, due 5/15/12 | | | 62,383 | | |
| Retail (0.3%) | | | |
| | 55,000 | | | Home Depot, Inc., Senior Unsecured Notes, 5.25%, due 12/16/13 | | | 60,101 | | |
| Telecommunications (0.8%) | | | |
| | 70,000 | | | Telefonica Emisiones SAU, Guaranteed Notes, 2.58%, due 4/26/13 | | | 70,724 | | |
| | 70,000 | | | Verizon Communications, Inc., Senior Unsecured Notes, 1.95%, due 3/28/14 | | | 71,139 | | |
| | | | 141,863 | | |
| | | | | Total Corporate Debt Securities (Cost $1,676,582) | | | 1,702,286 | | |
| Asset-Backed Securities (4.4%) | | | |
| | 100,000 | | | ACE Securities Corp. Home Equity Loan Trust, Ser. 2006-OP1, Class A2C, 0.34%, due 4/25/36 | | | 65,228 | µ | |
| | 141,666 | | | ACE Securities Corp. Home Equity Loan Trust, Ser. 2006-ASP5, Class A2B, 0.32%, due 10/25/36 | | | 75,636 | µ | |
| | 75,000 | | | Ally Auto Receivables Trust, Ser. 2010-4, Class A3, 0.91%, due 11/17/14 | | | 75,103 | | |
| | 75,000 | | | Ally Auto Receivables Trust, Ser. 2011-1, Class A3, 1.38%, due 1/15/15 | | | 75,469 | | |
| | 200,000 | | | Carrington Mortgage Loan Trust, Ser. 2007-FRE1, Class A3, 0.45%, due 2/25/37 | | | 85,802 | µ | |
| | 175,000 | | | Ford Credit Auto Owner Trust, Ser. 2011-A, Class A3, 0.97%, due 1/15/15 | | | 175,542 | | |
| | 125,000 | | | Hyundai Auto Receivables Trust, Ser. 2011-A, Class A3, 1.16%, due 4/15/15 | | | 125,607 | | |
See Notes to Schedule of Investments
9
| PRINCIPAL AMOUNT | | | | VALUE† | |
| $ | 18,934 | | | Impac Secured Assets Corp., Ser. 2006-3, Class A4, 0.28%, due 11/25/36 | | $ | 18,093 | µ | |
| | 97,216 | | | Residential Asset Mortgage Products, Inc., Ser. 2006-RS1, Class AI2, 0.42%, due 1/25/36 | | | 68,760 | µ | |
| | | | | Total Asset-Backed Securities (Cost $1,000,075) | | | 765,240 | | |
| NUMBER OF SHARES | | | | | |
| Short-Term Investments (4.0%) | | | |
| | 705,081 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $705,081) | | | 705,081 | | |
| | | | | Total Investments (100.0%) (Cost $13,450,655) | | | 17,456,260 | ## | |
| | | | | Liabilities, less cash, receivables and other assets [(0.0%)] | | | (5,734 | ) | |
| | | | | Total Net Assets (100.0%) | | $ | 17,450,526 | | |
See Notes to Schedule of Investments
10
Notes to Schedule of Investments Balanced Portfolio (Unaudited)
† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Advisers Management Trust Balanced Portfolio (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.
ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in equity securities, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted in active markets (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by the Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.
The value of the Fund's investments in debt securities is determined by Management primarily by obtaining valuations from independent pricing services based on readily available bid quotations, or if quotations are not available, by methods which include various considerations based on security type (generally Level 2 inputs). In addition to the consideration of yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions, the following is a description of other Level 2 inputs and related valuation techniques used by an independent pricing service to value certain types of debt securities of the Fund:
Corporate Debt Securities. Inputs used to value corporate debt securities generally include relative credit information, observed market movements, sector news, spread to the U.S. Treasury market, and other market information which may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data, such as market research publications, when available ("Other Market Information").
U.S. Treasury Securities. Inputs used to value U.S. Treasury securities generally include quotes from several inter-dealer brokers and Other Market Information.
See Notes to Financial Statements
11
Notes to Schedule of Investments Balanced Portfolio (Unaudited) (cont'd)
Asset-Backed Securities and Mortgage-Backed Securities. Inputs used to value asset-backed securities and mortgage-backed securities generally include models that consider a number of factors, which may include the following: prepayment speeds, cash flows, spread adjustments and Other Market Information.
High Yield Securities. Inputs used to value high yield securities generally include a number of observations of equity and credit default swap curves related to the issuer and Other Market Information.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in State Street Institutional Liquid Reserves Fund Institutional Class are valued using the fund's daily calculated net asset value per share.
If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Advisers Management Trust's Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding.
The value of the Fund's investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time. The Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities. In this event, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.
The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of June 30, 2011:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 11,656,394 | | | $ | — | | | $ | — | | | $ | 11,656,394 | | |
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government | | | — | | | | 422,088 | | | | — | | | | 422,088 | | |
| Mortgage-Backed Securities^ | | | — | | | | 2,205,171 | | | | — | | | | 2,205,171 | | |
| Corporate Debt Securities^ | | | — | | | | 1,702,286 | | | | — | | | | 1,702,286 | | |
| Asset-Backed Securities | | | — | | | | 765,240 | | | | — | | | | 765,240 | | |
| Short-Term Investments | | | — | | | | 705,081 | | | | — | | | | 705,081 | | |
| Total Investments | | $ | 11,656,394 | | | $ | 5,799,866 | | | $ | — | | | $ | 17,456,260 | | |
See Notes to Financial Statements
12
Notes to Schedule of Investments Balanced Portfolio (Unaudited) (cont'd)
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no significant transfers between Levels 1 and 2 during the six months ended June 30, 2011.
## At June 30, 2011, the cost of investments for U.S. federal income tax purposes was $13,509,782. Gross unrealized appreciation of investments was $4,399,563 and gross unrealized depreciation of investments was $453,085, resulting in net unrealized appreciation of $3,946,478, based on cost for U.S. federal income tax purposes.
* Security did not produce income during the last twelve months.
µ Floating rate securities are securities whose yields vary with a designated market index or market rate. These securities are shown at their current rates as of June 30, 2011 and their final maturity dates.
ñ Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be liquid. At June 30, 2011, these securities amounted to $614,011 or 3.5% of net assets for the Fund.
See Notes to Financial Statements
13
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | BALANCED PORTFOLIO | |
| | | June 30, 2011 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 17,456,260 | | |
| Cash | | | 1 | | |
| Foreign currency | | | 10,821 | | |
| Dividends and interest receivable | | | 44,356 | | |
| Receivable for securities sold | | | 142,235 | | |
| Receivable for Fund shares sold | | | 993 | | |
| Prepaid expenses and other assets | | | 1,611 | | |
| Total Assets | | | 17,656,277 | | |
| Liabilities | |
| Payable for securities purchased | | | 101,367 | | |
| Payable for Fund shares redeemed | | | 57,970 | | |
| Payable to investment manager (Note B) | | | 7,712 | | |
| Payable to administrator—net (Note B) | | | 7,867 | | |
| Accrued expenses and other payables | | | 30,835 | | |
| Total Liabilities | | | 205,751 | | |
| Net Assets at value | | $ | 17,450,526 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 15,450,562 | | |
| Undistributed net investment income (loss) | | | (27,749 | ) | |
| Accumulated net realized gains (losses) on investments | | | (1,979,027 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 4,006,740 | | |
| Net Assets at value | | $ | 17,450,526 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 1,552,639 | | |
| Net Asset Value, offering and redemption price per share | | $ | 11.24 | | |
| *Cost of Investments: | | | |
| Unaffiliated issuers | | $ | 13,450,655 | | |
| Total cost of foreign currency | | $ | 9,686 | | |
See Notes to Financial Statements
14
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | BALANCED PORTFOLIO | |
| | | For the Six Months Ended June 30, 2011 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 23,041 | | |
| Interest income—unaffiliated issuers | | | 67,065 | | |
| Foreign taxes withheld | | | (146 | ) | |
| Total income | | $ | 89,960 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 48,185 | | |
| Administration fees (Note B) | | | 26,283 | | |
| Audit fees | | | 21,826 | | |
| Custodian fees (Note A) | | | 14,378 | | |
| Insurance expense | | | 671 | | |
| Legal fees | | | 4,787 | | |
| Registration and filing fees | | | 250 | | |
| Reimbursement of expenses previously assumed by Management (Note B) | | | 8,577 | | |
| Shareholder reports | | | 8,990 | | |
| Trustees' fees and expenses | | | 27,275 | | |
| Miscellaneous | | | 861 | | |
| Total expenses | | | 162,083 | | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (3 | ) | |
| Total net expenses | | | 162,080 | | |
| Net investment income (loss) | | $ | (72,120 | ) | |
| Realized and Unrealized Gain (Loss) on Investments (Note A) | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 879,740 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 247,738 | | |
| Foreign currency | | | 325 | | |
| Net gain (loss) on investments | | | 1,127,803 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 1,055,683 | | |
See Notes to Financial Statements
15
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | BALANCED PORTFOLIO | |
| | | Six Months Ended June 30, 2011 (Unaudited) | | Year Ended December 31, 2010 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | (72,120 | ) | | $ | (60,276 | ) | |
| Net realized gain (loss) on investments | | | 879,740 | | | | 289,726 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 248,063 | | | | 2,661,938 | | |
| Net increase (decrease) in net assets resulting from operations | | | 1,055,683 | | | | 2,891,388 | | |
| Distributions to Shareholders From (Note A): | |
| Net investment income | | | — | | | | (163,192 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold | | | 202,979 | | | | 390,902 | | |
| Proceeds from reinvestment of dividends and distributions | | | — | | | | 163,192 | | |
| Payments for shares redeemed | | | (1,360,081 | ) | | | (2,144,729 | ) | |
| Net increase (decrease) from Fund share transactions | | | (1,157,102 | ) | | | (1,590,635 | ) | |
| Net Increase (Decrease) in Net Assets | | | (101,419 | ) | | | 1,137,561 | | |
| Net Assets: | |
| Beginning of period | | | 17,551,945 | | | | 16,414,384 | | |
| End of period | | $ | 17,450,526 | | | $ | 17,551,945 | | |
| Undistributed net investment income (loss) at end of period | | $ | (27,749 | ) | | $ | 44,371 | | |
See Notes to Financial Statements
16
Notes to Financial Statements Balanced Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: The Fund is a separate operating series of Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware statutory trust organized pursuant to a Trust Instrument dated May 23, 1994. The Trust is currently comprised of ten separate operating series (each individually a "Series," and collectively the "Funds") each of which is diversified. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended. The Fund currently offers only Class I shares. The Board may establish additional series or classes of shares without the approval of shareholders.
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.
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time, 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. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. 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 discount (adjusted for original issue discount, where applicable), and accretion of market discount on long-term bonds and short-term investments, if any, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations. Included in net realized gain (loss) on investments are proceeds from the settlements of class action litigation in which the Fund participated as a class member. The amount of such proceeds for the six months ended June 30, 2011 was $9,475.
5 Income tax information: 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 requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. To the extent the Fund distributes substantially all of its earnings to shareholders, no federal income or excise tax provision is required.
The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2007 - 2009. As of June 30, 2011, the Fund did not have any unrecognized tax positions.
17
Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund as a whole. The Fund may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2010, permanent differences resulting primarily from different book and tax accounting for paydown gains and losses, amortization of bond premium and expiration of capital loss carryforwards, were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund.
The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 was as follows:
| Distributions Paid From: | |
| Ordinary Income | | Total | |
| 2010 | | 2009 | | 2010 | | 2009 | |
| $ | 163,192 | | | $ | 502,617 | | | $ | 163,192 | | | $ | 502,617 | | |
As of December 31, 2010, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed Ordinary Income | | Unrealized Appreciation (Depreciation) | | Loss Carryforwards and Deferrals | | Total | |
| $ | 44,371 | | | $ | 3,674,375 | | | $ | (2,774,465 | ) | | $ | 944,281 | | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales, amortization of bond premium, post October loss deferrals and capital loss carryforwards.
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. Under current tax law, the use of these losses to offset future gains may be limited. As determined at December 31, 2010, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| | | Expiring in: | |
| | | 2017 | |
| | | | | $ | 2,723,032 | | |
During the year ended December 31, 2010, the Fund utilized capital loss carryforwards of $237,164.
The Fund had $13,496,847 of capital loss carryforwards that expired during the year ended December 31, 2010.
On December 22, 2010, the Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") was enacted. The Act modernizes several of the federal income and excise tax provisions related to RICs, and, with certain exceptions, is effective for taxable years beginning after December 22, 2010. Among the changes made are changes to the capital loss carryforward rules allowing for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character. Capital loss carryforwards generated in taxable years beginning after effective date of the Act must be fully used before capital loss carryforwards generated in taxable years prior to effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.
18
Under current tax law, certain net capital and net foreign currency losses realized after October 31 within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the year ended December 31, 2010, the Fund elected to defer $51,433 of net capital losses arising between November 1, 2010 and December 31, 2010.
6 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in October). Income distributions and capital gain distributions to shareholders are recorded on the ex-date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Series are charged to that Series. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., the Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly.
9 Dollar rolls: The Fund may enter into dollar roll transactions with respect to mortgage-backed securities. In a dollar roll transaction, the Fund sells securities for delivery in the current month and simultaneously agrees to repurchase substantially similar (i.e., same type and coupon) securities on a specified future date from the same party. During the period before this repurchase, the Fund foregoes principal and interest payments on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase (often referred to as the "drop"), as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls may increase fluctuations in the Fund's NAV and may be viewed as a form of leverage. There is a risk that the counterparty will be unable or unwilling to complete the transaction as scheduled, which may result in losses to the Fund.
10 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.
11 Derivative instruments: The Fund has adopted the provisions of ASC 815 "Derivatives and Hedging" ("ASC 815"). The disclosure requirements of ASC 815 distinguish between derivatives that qualify for hedge accounting and those that do not. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of Operations, they do not qualify for hedge accounting. Accordingly, even though a Fund's investments in derivatives may represent economic hedges, they are considered non-hedge transactions for purposes of this disclosure.
Financial futures contracts: At the time a Fund enters into a financial futures contract, it is required to deposit with the futures commission merchant a specified amount of cash or liquid securities, known as "initial margin," which is a percentage of the value of the financial futures contract being traded that is set by the exchange upon which the futures contract is 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
19
futures contract fluctuates. Daily variation margin adjustments, arising from this "mark to market," are recorded by the Fund 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 Fund recognizes a gain or loss. Risks of entering into futures contracts include the possibility there may be an illiquid market, possibly at a time of rapidly declining prices, and/or a change in the value of the contract may not correlate with changes in the value of the underlying securities. Futures have minimal counterparty risk to the Fund because the exchange's clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
For U.S. federal income tax purposes, the futures transactions undertaken by the Fund may cause the Fund to recognize gains or losses from marking contracts 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 Fund. Also, the Fund's losses on transactions involving futures contracts may be deferred rather than being taken into account currently in calculating the Fund's taxable income.
During the six months ended June 30, 2011, the Fund did not enter into any financial futures contracts.
Management has concluded that the Fund did not hold any derivative instruments during the six months ended June 30, 2011 that require additional disclosures pursuant to ASC 815.
12 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.
13 Expense offset arrangement: The Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended June 30, 2011, the impact of this arrangement was a reduction of expenses of $3.
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 and are also offered directly to certain qualified pension and retirement plans.
The Fund retains 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, 0.425% of the next $2.5 billion, and 0.40% of average daily net assets in excess of $4 billion.
The Fund retains Management as its administrator under an Administration Agreement. The Fund pays Management an administration fee at the annual rate of 0.30% of its average daily net assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under this agreement.
The Board adopted a non-fee distribution plan for the Fund.
Management has contractually undertaken through December 31, 2014 to forgo current payment of fees and/or reimburse the Fund for its operating expenses (excluding fees payable to Management, 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
20
ended June 30, 2011, no reimbursement to the Fund was required. The Fund has agreed to repay Management through December 31, 2017 for fees and expenses foregone and/or 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 or waived fees. During the six months ended June 30, 2011, the Fund reimbursed Management $8,577, under its contractual expense limitation. At June 30, 2011, contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | |
| | | 2012 | | 2013 | | Total | |
| | | | | $ | 18,791 | | | $ | 11,078 | | | $ | 29,869 | | |
Neuberger Berman LLC ("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.
Management and Neuberger are indirect subsidiaries of Neuberger Berman Group LLC ("NBG," and together with its consolidated subsidiaries "NB Group"). The voting equity of NBG is owned by NBSH Acquisition, LLC ("NBSH") and Lehman Brothers Holdings Inc. ("LBHI"). NBSH, which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees and senior professionals, owns approximately 52% of the voting equity of NBG, and LBHI, which is a debtor in possession under chapter 11 of the U.S. Bankruptcy Code, owns the remaining 48% of the voting equity. LBHI's bankruptcy proceedings have had no material impact on the operations of the Fund. Management and Neuberger continue to operate in the ordinary course of business as the investment manager and sub-adviser, respectively, of the Fund.
Note C—Securities Transactions:
Cost of purchases and proceeds of sales and maturities of long-term securities (excluding short-term securities) for the six months ended June 30, 2011 were as follows:
Purchases of U.S. Government and Agency Obligations | | Purchases excluding U.S. Government and Agency Obligations | | Sales and Maturities of U.S. Government and Agency Obligations | | Sales and Maturities excluding U.S. Government and Agency Obligations | |
| $ | 1,425,866 | | | $ | 3,376,968 | | | $ | 2,963,204 | | | $ | 3,402,760 | | |
During the six months ended June 30, 2011, no brokerage commissions on securities transactions were paid to affiliated brokers.
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2011 and for the year ended December 31, 2010 was as follows:
| | | For the Six Months Ended June 30, 2011 | | For the Year Ended December 31, 2010 | |
| Shares Sold | | | 18,484 | | | | 40,424 | | |
| Shares Issued on Reinvestment of Dividends and Distributions | | | — | | | | 16,551 | | |
| Shares Redeemed | | | (123,018 | ) | | | (224,488 | ) | |
| Total | | | (104,534 | ) | | | (167,513 | ) | |
21
Note E—Line of Credit:
At June 30, 2011, the Fund was a participant in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.125% per annum of the available line of credit is charged, of which each participating 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. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $200,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at June 30, 2011. During the six months ended June 30, 2011, the Fund did not utilize this line of credit.
Note F—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
22
Financial Highlights
Balanced Portfolio
The following table includes selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements.
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 (Unaudited) | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| Net Asset Value, Beginning of Period | | $ | 10.59 | | | $ | 9.00 | | | $ | 7.58 | | | $ | 13.08 | | | $ | 11.44 | | | $ | 10.42 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | (.04 | ) | | | (.03 | ) | | | .05 | | | | .09 | | | | .12 | | | | .11 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .69 | | | | 1.72 | | | | 1.65 | | | | (5.17 | ) | | | 1.67 | | | | 1.00 | | |
| Total From Investment Operations | | | .65 | | | | 1.69 | | | | 1.70 | | | | (5.08 | ) | | | 1.79 | | | | 1.11 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.10 | ) | | | (.28 | ) | | | (.42 | ) | | | (.15 | ) | | | (.09 | ) | |
| Net Asset Value, End of Period | | $ | 11.24 | | | $ | 10.59 | | | $ | 9.00 | | | $ | 7.58 | | | $ | 13.08 | | | $ | 11.44 | | |
Total Return†† | | | 6.14 | %** | | | 18.83 | % | | | 22.47 | % | | | (39.15 | )% | | | 15.60 | % | | | 10.67 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 17.5 | | | $ | 17.6 | | | $ | 16.4 | | | $ | 15.5 | | | $ | 78.4 | | | $ | 72.3 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.85 | %* | | | 1.85 | % | | | 1.86 | % | | | 1.29 | % | | | 1.16 | % | | | 1.19 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.85 | %* | | | 1.85 | % | | | 1.86 | % | | | 1.29 | % | | | 1.16 | % | | | 1.18 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | (.82 | )%* | | | (.37 | )% | | | .66 | % | | | .81 | % | | | 1.00 | % | | | 1.01 | % | |
| Portfolio Turnover Rate | | | 28 | %** | | | 58 | % | | | 85 | % | | | 57 | % | | | 54 | % | | | 62 | % | |
See Notes to Financial Highlights
23
Notes to Financial Highlights Balanced Portfolio (Unaudited)
†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period and assumes income dividends and other distributions, if any, were reinvested. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. 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 and/or waived certain expenses. Total return would have been higher if Management had not recouped previously reimbursed 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. For the year ended December 31, 2006, Management reimbursed the Fund for losses incurred in connection with the disposition of foreign currency contracts, which had no impact on total return.
# The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.
‡ Calculated based on the average number of shares outstanding during each fiscal period.
§ After reimbursement and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such actions, the annualized ratios of net expenses to average net assets would have been:
| | | Year Ended December 31, | |
| 2010 | | 2009 | | 2008 | | 2007 | | 2006 | | | |
| | 1.92 | % | | | 2.04 | % | | | 1.29 | % | | | 1.16 | % | | | 1.18 | % | | | |
After reimbursement of expenses previously paid by Management. Had the Fund not made such reimbursements, the annualized ratio of net expenses to average daily net assets would have been:
| | | Six Months Ended June 30, 2011 | |
| | | | 1.75 | % | |
* Annualized.
** Not annualized.
24
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 1-800-877-9700 (toll-free) and on the website of the Securities and Exchange Commission, at www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available, without charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings for the Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll free).
25
Neuberger Berman
Advisers Management Trust
Growth Portfolio
I Class Shares
Semi-Annual Report
June 30, 2011
B0732 08/11
Growth Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Growth Portfolio Class I provided a 9.51% return for the six months ended June 30, 2011. Its benchmark, the Russell Midcap® Growth Index, returned 9.59% for the period.
For the first half of 2011, market performance across the equity spectrum was strong, even considering the ongoing rotation between "risk on" and "risk off" investor sentiment. Growth outperformed value, and mid-cap growth outperformed both large- and small-cap growth during the period. Earnings continued to be strong in the mid-cap growth space, across economic sectors. In our view, mid-cap companies are often in the economic "sweet spot," offering new products or services in the right marketplaces. The first half of the year also provided, in our view, a favorable environment for fundamentals-driven quality growth managers.
From an economic perspective, the year started out very strong, but appeared to hit a soft patch during the second quarter due to a number of factors—including continued weakness in Europe along with renewed worry about the region's sovereign debt crisis, significant global supply chain disruptions that followed the earthquake in Japan, the Chinese government's purposeful slowing of that country's robust economy, and the heightened pressures of rising commodity prices, particularly oil.
These factors plus ongoing malaise on the housing market and a lack of significant improvement in unemployment negatively impacted investor sentiment. Regarding unemployment, while merger and acquisition activity and capital investment have picked up, companies have remained reluctant to hire—a situation we think will continue to weigh on the market. On the other hand, we are impressed by the market's and economic recovery's resilience in overcoming the turmoil in the Middle East, the crisis in Japan and the end of the latest round of quantitative easing, or QE2.
Throughout most of the reporting period, the Portfolio maintained above-benchmark weightings in Information Technology (IT), Energy, Industrials, and Health Care; and underweights in Consumer Discretionary and Staples stocks, Materials, and Financials. Although Portfolio holdings did not significantly change, at the end of June the annual rebalancing of the Russell Midcap Growth Index accentuated the Portfolio's underweight relative to the benchmark in Materials, moved the Portfolio from an overweight to underweight position in Energy, and increased its overweight in IT.
During the period, stock selection was beneficial to performance versus the benchmark, with positive contributions coming primarily from within the Energy, Industrials, IT and, to a lesser extent, Health Care sectors. Stock selection within Consumer Discretionary, Consumer Staples and Financials detracted from results.
Within Energy, our strongest sector, CARBO Ceramics was a standout, and Core Laboratories also performed well. CARBO continues to benefit from increased horizontal drilling activity in North America, seeing strong demand from both oil and gas producers. Core Labs, which provides analysis of oil and gas reservoirs as well as tools for increasing production efficiency, also experienced strong demand.
Information Technology, the largest single sector weighting in the Portfolio, included outperformers Varian Semiconductor, Informatica and Avago Technologies. We sold Varian Semiconductor, whose ion implant equipment enables higher performance chips, after Applied Materials announced it was acquiring the company at a significant premium. Informatica, a data integration tools company helping businesses turn unstructured data into useful, economically valuable information, was also strong. Avago, a diversified semiconductor company, continued to benefit from the growth of smart phones and their continued penetration into other consumer and network devices.
Disappointments within IT included Dolby Laboratories and F5 Networks, both of which were sold. We grew concerned about Dolby, a long-term holding, because of its lack of exposure to the growing tablet computer market. F5, a company that helps optimize network-based application delivery, declined on a modestly disappointing first quarter. After a year of strong performance, we decided to sell the stock to realize a profit.
In Consumer Discretionary, our weakest sector on a relative basis, WMS Industries and Urban Outfitters detracted from results and were sold. WMS is a leader in video gambling machines, but the economic downturn hurt the gaming
1
industry, causing delays in the product replacement cycle. Urban Outfitters, a relatively long-term holding, suffered missteps in the current fashion cycle and underwent some management changes.
Going into the second half of the year, the Portfolio remains overweighted in IT, Industrials, Telecommunication Services, and Health Care and underweighted in Consumer Discretionary, Consumer Staples and Financials, positioning we currently expect to maintain. After the benchmark's rebalancing, the Portfolio is slightly underweight in Energy, although we expect the sector to become an overweight later in the year. Key themes within the Portfolio continue to include mobile and digital media, cloud computing, health care cost savings, onshore oil and gas exploration, and a bifurcated high-end/low-end approach to retail survivors.
After a very good first half, we are cautiously optimistic about the market. We anticipate earnings to remain strong but to decelerate somewhat during the remainder of the year, and that economic growth will remain subdued. In our opinion, this type of environment plays to our strengths. In the past, quality has typically shined when investors have been discriminating and mindful of risk, and stock picking has had the potential to add value. In our view, valuations remain attractive, even after this period's run. We continue to focus on identifying quality growth companies with innovative products or services, global aspirations, and exceptional cash flows and top-line growth, with the management teams, strategic positions, operating models, and financial strength needed to continue to succeed in a competitive global economy.
Sincerely,
Kenneth J. Turek
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in companies with mid-market capitalization are set forth in the prospectus and statement of additional information.
Mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
The composition, industries and holdings of the Portfolio are subject to change. The AMT Growth Portfolio is invested in a wide array of stocks and no single holding makes up a significant portion of the Portfolio's total assets.
2
Growth Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 15.6 | % | |
| Consumer Staples | | | 3.0 | | |
| Energy | | | 8.4 | | |
| Financials | | | 5.2 | | |
| Health Care | | | 15.0 | | |
| Industrials | | | 19.0 | | |
| Information Technology | | | 26.3 | | |
| Materials | | | 2.4 | | |
| Telecommunication Services | | | 3.4 | | |
| Short-Term Investments | | | 1.7 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS1
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/11 | |
| | | Date | | 06/30/11 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund* | |
Growth Portfolio Class I | | | 09/10/1984 | | | | 9.51 | % | | | 42.62 | % | | | 6.75 | % | | | 4.25 | % | | | 9.27 | % | |
Russell Midcap® Growth Index2 | | | | | | | 9.59 | % | | | 43.25 | % | | | 6.28 | % | | | 5.52 | % | | | N/A | | |
Russell Midcap® Index2 | | | | | 8.08 | % | | | 38.47 | % | | | 5.30 | % | | | 7.59 | % | | | 12.51 | % | |
Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be higher or lower than the performance data quoted. For performance data current to the most recent month end, please visit https://www.nb.com.
* Index returns are as of the inception date 09/10/1984.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2010 was 2.64% for Class I shares (prior to any fee waivers and/or expense reimbursements). The expense ratio net of waivers and/or reimbursements was 1.85% for Class I shares. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Portfolio through 12/31/2014 for Class I shares.
3
Endnotes
1 "Total Return" includes reinvestment of all income dividends and distributions. Results represent past performance and do not indicate future results. The value of an investment in the Portfolio and the return on the investment both will fluctuate, and redemption proceeds may be higher or lower than an investor's original cost. The performance information does not reflect fees and expenses of the variable annuity and variable life insurance policies or the qualified pension and retirement plans whose proceeds are invested in the Portfolio. Neuberger Berman Management LLC ("NBM LLC") has agreed to absorb certain expenses of the AMT Portfolios, including the Portfolio. Without this arrangement, which is subject to change, the total returns of the Portfolio may have been less.
2 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 31% 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). 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 NBM LLC and include reinvestment of all income dividends and distributions. The Portfolio may invest in securities not included in the above-described index and may not invest in all securities included in the above-described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not NBM LLC's own projections, and they may or may not be realized. In addition, any revision to a forecast could affect the market price of a security. By quoting them herein, NBM LLC does not offer an opinion as to the accuracy of and does not guarantee these forecasted numbers.
The investments for the Portfolio are managed by the same portfolio manager(s) who manage(s) 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.
The composition, industries and holdings of the Portfolio are subject to change.
Shares of the separate AMT Portfolios are not available to the general public. Shares of this Portfolio 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.
Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the AMT Portfolios. This report is prepared for the general information of shareholders and is not an offer of shares of the AMT Portfolios. Shares of the AMT Portfolios are sold only through the currently effective prospectuses, which must precede or accompany this report.
The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2011 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses
This table is designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2011 and held for the entire period. The table illustrates the fund's costs in two ways:
| Actual Expenses and Performance: | | The first section of the table provides information about actual account values and actual expenses in dollars, based on the fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period. | |
| |
Hypothetical Example for Comparison Purposes: | | The second section of the table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. | |
| |
Please note that the expenses in the table are meant to highlight your ongoing costs only. The table and expense example do not include any transaction costs, such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan. Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Expense Information as of 6/30/11 (Unaudited)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST GROWTH PORTFOLIO
| Actual | | Beginning Account Value 1/1/11 | | Ending Account Value 6/30/11 | | Expenses Paid During the Period* 1/1/11 – 6/30/11 | |
| Class I | | $ | 1,000.00 | | | $ | 1,095.10 | | | $ | 9.61 | | |
| Hypothetical (5% annual return before expenses)** | | | | | |
| Class I | | $ | 1,000.00 | | | $ | 1,015.62 | | | $ | 9.25 | | |
* Expenses are equal to the annualized expense ratio of 1.85%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent half year divided by 365.
5
Schedule of Investments Growth Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (98.3%) | | | |
| Aerospace & Defense (1.7%) | | | |
| | 1,900 | | | BE Aerospace | | $ | 77,539 | * | |
| | 1,250 | | | HEICO Corp. | | | 68,425 | | |
| | | | 145,964 | | |
| Air Freight & Logistics (1.1%) | | | |
| | 1,150 | | | C.H. Robinson Worldwide | | | 90,666 | | |
| Auto Components (1.9%) | | | |
| | 1,000 | | | BorgWarner, Inc. | | | 80,790 | * | |
| | 2,800 | | | Gentex Corp. | | | 84,644 | | |
| | | | 165,434 | | |
| Biotechnology (1.1%) | | | |
| | 2,000 | | | Alexion Pharmaceuticals | | | 94,060 | * | |
| Capital Markets (1.9%) | | | |
| | 1,100 | | | Affiliated Managers Group | | | 111,595 | * | |
| | 1,350 | | | Stifel Financial | | | 48,411 | * | |
| | | | 160,006 | | |
| Chemicals (1.6%) | | | |
| | 1,200 | | | Airgas, Inc. | | | 84,048 | | |
| | 750 | | | Sigma-Aldrich | | | 55,035 | | |
| | | | 139,083 | | |
| Commercial Services & Supplies (1.9%) | | | |
| | 1,800 | | | Stericycle, Inc. | | | 160,416 | * | |
| Communications Equipment (1.4%) | | | |
| | 1,000 | | | Acme Packet | | | 70,130 | * | |
| | 1,500 | | | Juniper Networks | | | 47,250 | * | |
| | | | 117,380 | | |
| Computers & Peripherals (1.1%) | | | |
| | 1,800 | | | NetApp, Inc. | | | 95,004 | * | |
| Diversified Financial Services (2.0%) | | | |
| | 750 | | | IntercontinentalExchange Inc. | | | 93,533 | * | |
| | 2,050 | | | MSCI Inc. Class A | | | 77,244 | * | |
| | | | 170,777 | | |
| Electrical Equipment (4.8%) | | | |
| | 2,500 | | | AMETEK, Inc. | | | 112,250 | | |
| | 1,000 | | | Polypore International | | | 67,840 | * | |
| | 1,500 | | | Roper Industries | | | 124,950 | | |
| | 2,900 | | | Sensata Technologies Holding | | | 109,185 | * | |
| | | | 414,225 | | |
| NUMBER OF SHARES | | | | VALUE† | |
Electronic Equipment, Instruments & Components (3.0%) | | | |
| | 1,550 | | | Amphenol Corp. Class A | | $ | 83,685 | | |
| | 2,500 | | | National Instruments | | | 74,225 | | |
| | 2,600 | | | Trimble Navigation | | | 103,064 | * | |
| | | | 260,974 | | |
| Energy Equipment & Services (4.9%) | | | |
| | 900 | | | CARBO Ceramics | | | 146,655 | | |
| | 2,000 | | | Complete Production Services | | | 66,720 | * | |
| | 1,000 | | | Core Laboratories | | | 111,540 | | |
| | 1,250 | | | Oil States International | | | 99,887 | * | |
| | | | 424,802 | | |
| Food & Staples Retailing (0.7%) | | | |
| | 1,000 | | | Whole Foods Market | | | 63,450 | | |
| Food Products (1.2%) | | | |
| | 1,500 | | | Mead Johnson Nutrition | | | 101,325 | | |
| Health Care Equipment & Supplies (3.8%) | | | |
| | 1,250 | | | Edwards Lifesciences | | | 108,975 | * | |
| | 200 | | | Intuitive Surgical | | | 74,422 | * | |
| | 2,700 | | | NxStage Medical | | | 56,214 | * | |
| | 2,700 | | | Volcano Corp. | | | 87,183 | * | |
| | | | 326,794 | | |
| Health Care Providers & Services (2.4%) | | | |
| | 1,500 | | | Catalyst Health Solutions | | | 83,730 | * | |
| | 1,650 | | | HMS Holdings | | | 126,836 | * | |
| | | | 210,566 | | |
| Health Care Technology (2.2%) | | | |
| | 2,000 | | | Cerner Corp. | | | 122,220 | * | |
| | 800 | | | Quality Systems | | | 69,840 | | |
| | | | 192,060 | | |
| Hotels, Restaurants & Leisure (1.8%) | | | |
| | 1,500 | | | Arcos Dorados Holdings Class A | | | 31,635 | | |
| | 200 | | | Chipotle Mexican Grill | | | 61,638 | * | |
| | 1,500 | | | Hyatt Hotels Class A | | | 61,230 | * | |
| | | | 154,503 | | |
| Household Products (1.1%) | | | |
| | 2,400 | | | Church & Dwight | | | 97,296 | | |
| Industrial Conglomerates (1.2%) | | | |
| | 1,900 | | | Danaher Corp. | | | 100,681 | | |
| Internet Software & Services (1.3%) | | | |
| | 1,500 | | | Rackspace Hosting | | | 64,110 | * | |
| | 1,000 | | | WebMD Health | | | 45,580 | * | |
| | | | 109,690 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| IT Services (3.2%) | | | |
| | 1,800 | | | Cognizant Technology Solutions Class A | | $ | 132,012 | * | |
| | 2,700 | | | Sapient Corp. | | | 40,581 | * | |
| | 2,300 | | | VeriFone Systems | | | 102,005 | * | |
| | | | 274,598 | | |
| Life Science Tools & Services (1.4%) | | | |
| | 1,000 | | | Illumina, Inc. | | | 75,150 | * | |
| | 500 | | | Waters Corp. | | | 47,870 | * | |
| | | | 123,020 | | |
| Machinery (3.2%) | | | |
| | 950 | | | Cummins Inc. | | | 98,315 | | |
| | 1,500 | | | Donaldson Co. | | | 91,020 | | |
| | 1,550 | | | Pall Corp. | | | 87,157 | | |
| | | | 276,492 | | |
| Media (2.4%) | | | |
| | 1,650 | | | Discovery Communications Class A | | | 67,584 | * | |
| | 1,900 | | | Focus Media Holding ADR | | | 59,090 | * | |
| | 1,600 | | | Scripps Networks Interactive Class A | | | 78,208 | | |
| | | | 204,882 | | |
| Metals & Mining (0.8%) | | | |
| | 700 | | | Cliffs Natural Resources | | | 64,715 | | |
| Multiline Retail (2.5%) | | | |
| | 1,900 | | | Dollar Tree | | | 126,578 | * | |
| | 1,900 | | | Nordstrom, Inc. | | | 89,186 | | |
| | | | 215,764 | | |
| Oil, Gas & Consumable Fuels (3.5%) | | | |
| | 1,000 | | | Cabot Oil & Gas | | | 66,310 | | |
| | 1,300 | | | Concho Resources | | | 119,405 | * | |
| | 1,500 | | | Denbury Resources | | | 30,000 | * | |
| | 1,500 | | | Whiting Petroleum | | | 85,365 | * | |
| | | | 301,080 | | |
| Pharmaceuticals (4.0%) | | | |
| | 1,500 | | | Medicis Pharmaceutical Class A | | | 57,255 | | |
| | 1,250 | | | Perrigo Co. | | | 109,837 | | |
| | 1,500 | | | Salix Pharmaceuticals | | | 59,745 | * | |
| | 1,700 | | | Watson Pharmaceuticals | | | 116,841 | * | |
| | | | 343,678 | | |
| Professional Services (1.0%) | | | |
| | 2,400 | | | Verisk Analytics Class A | | | 83,088 | * | |
| NUMBER OF SHARES | | | | VALUE† | |
Real Estate Management & Development (1.3%) | | | |
| | 1,200 | | | Jones Lang LaSalle | | $ | 113,160 | | |
| Road & Rail (1.1%) | | | |
| | 2,100 | | | J.B. Hunt Transport Services | | | 98,889 | | |
Semiconductors & Semiconductor Equipment (3.6%) | | | |
| | 3,400 | | | Avago Technologies | | | 129,200 | | |
| | 1,000 | | | Cavium Inc. | | | 43,590 | * | |
| | 2,600 | | | Microchip Technology | | | 98,566 | | |
| | 1,500 | | | NXP Semiconductors | | | 40,095 | * | |
| | | | 311,451 | | |
| Software (12.7%) | | | |
| | 2,000 | | | ANSYS, Inc. | | | 109,340 | * | |
| | 1,500 | | | Ariba, Inc. | | | 51,705 | * | |
| | 1,000 | | | BMC Software | | | 54,700 | * | |
| | 1,650 | | | Check Point Software Technologies | | | 93,802 | * | |
| | 1,500 | | | Citrix Systems | | | 120,000 | * | |
| | 2,700 | | | Informatica Corp. | | | 157,761 | * | |
| | 1,650 | | | MICROS Systems | | | 82,021 | * | |
| | 2,300 | | | QLIK Technologies | | | 78,338 | * | |
| | 1,250 | | | RealD Inc. | | | 29,238 | * | |
| | 750 | | | Red Hat | | | 34,425 | * | |
| | 2,150 | | | Rovi Corp. | | | 123,324 | * | |
| | 600 | | | Salesforce.com, Inc. | | | 89,388 | * | |
| | 1,250 | | | Solera Holdings | | | 73,950 | | |
| | | | 1,097,992 | | |
| Specialty Retail (5.3%) | | | |
| | 1,600 | | | Bed Bath & Beyond | | | 93,392 | * | |
| | 2,100 | | | Dick's Sporting Goods | | | 80,745 | * | |
| | 1,500 | | | O'Reilly Automotive | | | 98,265 | * | |
| | 1,500 | | | Ross Stores | | | 120,180 | | |
| | 1,000 | | | Tractor Supply | | | 66,880 | | |
| | | | 459,462 | | |
| Textiles, Apparel & Luxury Goods (1.7%) | | | |
| | 1,150 | | | Coach, Inc. | | | 73,520 | | |
| | 1,100 | | | Phillips-Van Heusen | | | 72,017 | | |
| | | | 145,537 | | |
| Trading Companies & Distributors (3.1%) | | | |
| | 3,800 | | | Fastenal Co. | | | 136,762 | | |
| | 1,000 | | | MSC Industrial Direct Class A | | | 66,310 | | |
| | 1,250 | | | WESCO International | | | 67,612 | * | |
| | | | 270,684 | | |
See Notes to Schedule of Investments
7
| NUMBER OF SHARES | | | | VALUE† | |
| Wireless Telecommunication Services (3.4%) | | | |
| | 1,500 | | | American Tower Class A | | $ | 78,495 | * | |
| | 2,350 | | | NII Holdings | | | 99,593 | * | |
| | 2,950 | | | SBA Communications Class A | | | 112,660 | * | |
| | | | 290,748 | | |
| | | | | Total Common Stocks (Cost $5,172,384) | | | 8,470,396 | | |
| Short-Term Investments (1.7%) | | | |
| | 144,426 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $144,426) | | | 144,426 | | |
| | | | | Total Investments (100.0%) (Cost $5,316,810) | | | 8,614,822 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (0.0%) | | | 983 | | |
| | | | | Total Net Assets (100.0%) | | $ | 8,615,805 | | |
See Notes to Schedule of Investments
8
Notes to Schedule of Investments Growth Portfolio
(Unaudited)
† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Advisers Management Trust Growth Portfolio (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.
ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in equity securities, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted in active markets (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by the Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in State Street Institutional Liquid Reserves Fund Institutional Class are valued using the fund's daily calculated net asset value per share.
If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Advisers Management Trust's Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding.
The value of the Fund's investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time. The
See Notes to Financial Statements
9
Notes to Schedule of Investments Growth Portfolio
(Unaudited) (cont'd)
Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities. In this event, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.
The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of June 30, 2011:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 8,470,396 | | | $ | — | | | $ | — | | | $ | 8,470,396 | | |
| Short-Term Investments | | | — | | | | 144,426 | | | | — | | | | 144,426 | | |
| Total Investments | | $ | 8,470,396 | | | $ | 144,426 | | | $ | — | | | $ | 8,614,822 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no significant transfers between Levels 1 and 2 during the six months ended June 30, 2011.
## At June 30, 2011, the cost of investments for U.S. federal income tax purposes was $5,322,171. Gross unrealized appreciation of investments was $3,330,099 and gross unrealized depreciation of investments was $37,448, resulting in net unrealized appreciation of $3,292,651, based on cost for U.S. federal income tax purposes.
* Security did not produce income during the last twelve months.
See Notes to Financial Statements
10
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | GROWTH PORTFOLIO | |
| | | June 30, 2011 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 8,614,822 | | |
| Dividends and interest receivable | | | 1,597 | | |
| Receivable for securities sold | | | 68,054 | | |
| Receivable for Fund shares sold | | | 247 | | |
| Receivable from Management—net (Note B) | | | 5,989 | | |
| Prepaid expenses and other assets | | | 5,042 | | |
| Total Assets | | | 8,695,751 | | |
| Liabilities | |
| Payable for securities purchased | | | 39,872 | | |
| Payable for Fund shares redeemed | | | 3,981 | | |
| Payable to investment manager (Note B) | | | 3,699 | | |
| Accrued expenses and other payables | | | 32,394 | | |
| Total Liabilities | | | 79,946 | | |
| Net Assets at value | | $ | 8,615,805 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 15,873,547 | | |
| Undistributed net investment income (loss) | | | (60,637 | ) | |
| Accumulated net realized gains (losses) on investments | | | (10,495,117 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 3,298,012 | | |
| Net Assets at value | | $ | 8,615,805 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 422,840 | | |
| Net Asset Value, offering and redemption price per share | | | $20.38 | | |
| *Cost of Investments: | | | | | |
| Unaffiliated issuers | | $ | 5,316,810 | | |
See Notes to Financial Statements
11
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | GROWTH PORTFOLIO | |
| | | For the Six Months Ended June 30, 2011 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 17,719 | | |
| Interest income—unaffiliated issuers | | | 28 | | |
| Foreign taxes withheld | | | (82 | ) | |
| Total income | | $ | 17,665 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 23,258 | | |
| Administration fees (Note B) | | | 12,686 | | |
| Audit fees | | | 20,809 | | |
| Custodian fees (Note A) | | | 7,063 | | |
| Legal fees | | | 2,239 | | |
| Shareholder reports | | | 12,021 | | |
| Trustees' fees and expenses | | | 27,273 | | |
| Miscellaneous | | | 196 | | |
| Total expenses | | | 105,545 | | |
| Expenses reimbursed by Management (Note B) | | | (27,242 | ) | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (1 | ) | |
| Total net expenses | | | 78,302 | | |
| Net investment income (loss) | | $ | (60,637 | ) | |
| Realized and Unrealized Gain (Loss) on Investments (Note A) | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 835,458 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 4,683 | | |
| Net gain (loss) on investments | | | 840,141 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 779,504 | | |
See Notes to Financial Statements
12
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | GROWTH PORTFOLIO | |
| | | Six Months Ended June 30, 2011 (Unaudited) | | Year Ended December 31, 2010 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | (60,637 | ) | | $ | (99,416 | ) | |
| Net realized gain (loss) on investments | | | 835,458 | | | | 1,089,306 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 4,683 | | | | 1,080,252 | | |
| Net increase (decrease) in net assets resulting from operations | | | 779,504 | | | | 2,070,142 | | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold | | | 299,764 | | | | 426,297 | | |
| Payments for shares redeemed | | | (935,190 | ) | | | (1,481,815 | ) | |
| Net increase (decrease) from Fund share transactions | | | (635,426 | ) | | | (1,055,518 | ) | |
| Net Increase (Decrease) in Net Assets | | | 144,078 | | | | 1,014,624 | | |
| Net Assets: | |
| Beginning of period | | | 8,471,727 | | | | 7,457,103 | | |
| End of period | | $ | 8,615,805 | | | $ | 8,471,727 | | |
| Undistributed net investment income (loss) at end of period | | $ | (60,637 | ) | | $ | — | | |
See Notes to Financial Statements
13
Notes to Financial Statements Growth Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: The Fund is a separate operating series of Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware statutory trust organized pursuant to a Trust Instrument dated May 23, 1994. The Trust is currently comprised of ten separate operating series (each individually a "Series," and collectively the "Funds") each of which is diversified. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended. The Fund currently offers only Class I shares. The Board may establish additional series or classes of shares without the approval of shareholders.
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.
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time, 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. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. 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, if any, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations. Included in net realized gain (loss) on investments are proceeds from the settlements of class action litigation in which the Fund participated as a class member. The amount of such proceeds for the six months ended June 30, 2011 was $19,830.
5 Income tax information: 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 requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. To the extent the Fund distributes substantially all of its earnings to shareholders, no federal income or excise tax provision is required.
The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2007 - 2009. As of June 30, 2011, the Fund did not have any unrecognized tax positions.
14
Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund as a whole. The Fund may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2010, permanent differences resulting primarily from different book and tax accounting for net operating losses and expiration of capital loss carryforwards were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund.
As of December 31, 2010, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed Ordinary Income (Loss) | | Unrealized Appreciation (Depreciation) | | Loss Carryforwards and Deferrals | | Total | |
| $ | — | | | $ | 3,287,929 | | | $ | (11,325,175 | ) | | $ | (8,037,246 | ) | |
The differences between book basis and tax basis distributable earnings are attributable primarily to timing differences of wash sales and capital loss carryforwards.
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. Under current tax law, the use of these losses to offset future gains may be limited. As determined at December 31, 2010, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| | | Expiring in: | |
| | | 2017 | |
| | | $ | 11,325,175 | | |
During the year ended December 31, 2010, the Fund utilized capital loss carryforwards of $1,078,091.
The Fund had $69,041,706 of capital loss carryforwards that expired during the year ended December 31, 2010.
On December 22, 2010, the Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") was enacted. The Act modernizes several of the federal income and excise tax provisions related to RICs, and, with certain exceptions, is effective for taxable years beginning after December 22, 2010. Among the changes made are changes to the capital loss carryforward rules allowing for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character. Capital loss carryforwards generated in taxable years beginning after effective date of the Act must be fully used before capital loss carryforwards generated in taxable years prior to effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.
6 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in October). Income distributions and capital gain distributions to shareholders are recorded on the ex-date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Series are charged to that Series. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., the Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the
15
complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly.
9 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.
10 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.
11 Expense offset arrangement: The Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended June 30, 2011, the impact of this arrangement was a reduction of expenses of $1.
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 and are also offered directly to certain qualified pension and retirement plans.
The Fund retains 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, 0.425% of the next $2.5 billion, and 0.40% of average daily net assets in excess of $4 billion.
The Fund retains Management as its administrator under an Administration Agreement. The Fund pays Management an administration fee at the annual rate of 0.30% of its average daily net assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under this agreement.
The Board adopted a non-fee distribution plan for the Fund.
Management has contractually undertaken through December 31, 2014 to forgo current payment of fees and/or reimburse the Fund for its operating expenses (excluding fees payable to Management, 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, 2011, such excess expenses amounted to $27,242. The Fund has agreed to repay Management through December 31, 2017 for fees and expenses foregone and/or its excess Operating Expenses previously reimbursed by Management, so long as its annual Operating Expenses during that period do not exceed its Expense
16
Limitation, and the repayment is made within three years after the year in which Management issued the reimbursement or waived fees. During the six months ended June 30, 2011, there was no repayment to Management under its contractual expense limitation. At June 30, 2011, contingent liabilities to Management under its contractual expense limitation were as follows:
| Expiring in: | | | |
| 2013 | | 2014 | | Total | |
| $ | 58,438 | | | $ | 27,242 | | | $ | 85,680 | | |
Neuberger Berman LLC ("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.
Management and Neuberger are indirect subsidiaries of Neuberger Berman Group LLC ("NBG," and together with its consolidated subsidiaries "NB Group"). The voting equity of NBG is owned by NBSH Acquisition, LLC ("NBSH") and Lehman Brothers Holdings Inc. ("LBHI"). NBSH, which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees and senior professionals, owns approximately 52% of the voting equity of NBG, and LBHI, which is a debtor in possession under chapter 11 of the U.S. Bankruptcy Code, owns the remaining 48% of the voting equity. LBHI's bankruptcy proceedings have had no material impact on the operations of the Fund. Management and Neuberger continue to operate in the ordinary course of business as the investment manager and sub-adviser, respectively, of the Fund.
Note C—Securities Transactions:
During the six months ended June 30, 2011, there were purchase and sale transactions (excluding short-term securities) of $1,375,841 and $2,157,654, respectively.
During the six months ended June 30, 2011, no brokerage commissions on securities transactions were paid to affiliated brokers.
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2011 and for the year ended December 31, 2010 was as follows:
| | | For the Six Months Ended June 30, 2011 | | For the Year Ended December 31, 2010 | |
| Shares Sold | | | 15,353 | | | | 26,076 | | |
| Shares Redeemed | | | (47,666 | ) | | | (96,132 | ) | |
| Total | | | (32,313 | ) | | | (70,056 | ) | |
Note E—Line of Credit:
At June 30, 2011, the Fund was a participant in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.125% per annum of the available line of credit is charged, of which each participating 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. Because several
17
mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $200,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at June 30, 2011. During the six months ended June 30, 2011, the Fund did not utilize this line of credit.
Note F—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
18
Financial Highlights
Growth Portfolio
The following table includes selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements.
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 18.61 | | | $ | 14.20 | | | $ | 10.87 | | | $ | 19.30 | | | $ | 15.73 | | | $ | 13.79 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | (.14 | ) | | | (.21 | ) | | | (.05 | ) | | | (.10 | ) | | | (.11 | ) | | | (.05 | ) | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 1.91 | | | | 4.62 | | | | 3.38 | | | | (8.33 | ) | | | 3.68 | | | | 1.99 | | |
| Total From Investment Operations | | | 1.77 | | | | 4.41 | | | | 3.33 | | | | (8.43 | ) | | | 3.57 | | | | 1.94 | | |
| Net Asset Value, End of Period | | $ | 20.38 | | | $ | 18.61 | | | $ | 14.20 | | | $ | 10.87 | | | $ | 19.30 | | | $ | 15.73 | | |
Total Return†† | | | 9.51 | %** | | | 31.06 | % | | | 30.63 | % | | | (43.68 | )% | | | 22.70 | % | | | 14.07 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 8.6 | | | $ | 8.5 | | | $ | 7.5 | | | $ | 82.0 | | | $ | 172.6 | | | $ | 167.7 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.85 | %* | | | 1.85 | % | | | 1.27 | % | | | 1.04 | % | | | 1.00 | % | | | 1.00 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.85 | %* | | | 1.85 | % | | | 1.27 | % | | | 1.04 | % | | | .99 | % | | | .99 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | (1.43 | )%* | | | (1.33 | )% | | | (.49 | )% | | | (.63 | )% | | | (.61 | )% | | | (.35 | )% | |
| Portfolio Turnover Rate | | | 16 | %** | | | 49 | % | | | 68 | % | | | 63 | % | | | 48 | % | | | 40 | % | |
See Notes to Financial Highlights
19
Notes to Financial Highlights Growth Portfolio
(Unaudited)
†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period and assumes income dividends and other distributions, if any, were reinvested. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. 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 and/or waived 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. For the year ended December 31, 2010, the Fund received proceeds from the settlements of class action litigation in which it participated as a class member, which had an approximate impact on total return of 2.91%.
# The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.
‡ Calculated based on the average number of shares outstanding during each fiscal period.
§ After reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been:
Six Months Ended June 30, | | Year Ended December 31, | |
| 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | 2.50 | % | | | 2.64 | % | | | 1.27 | % | | | 1.04 | % | | | .99 | % | | | .99 | % | |
* Annualized.
** Not annualized.
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Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 1-800-877-9700 (toll-free) and on the website of the Securities and Exchange Commission, at www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available, without charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings for the Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll free).
21
Neuberger Berman
Advisers Management Trust
Guardian Portfolio
I Class Shares
S Class Shares
Semi-Annual Report
June 30, 2011
B0733 08/11
Guardian Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Guardian Portfolio Class I provided a 6.49% return for the six months ended June 30, 2011, outperforming its benchmark, the S&P 500 Index, which returned 6.02% for the period. Returns for the Porfolio's Class I and Class S shares are provided on page 3.
While there has been evidence of solid underlying economic momentum over the past six months, it has been counterbalanced in the equity markets primarily by the unprecedented and persistent debt problems experienced among several OECD (Organization for Economic Co-Operation and Development) countries. The period saw a strong start on fourth quarter 2010 economic momentum, bolstered by the enormous stimulus of the federal government's compromise tax package in December. Volatility increased during the reporting period, however, as factors including the "second act" in the Greek debt crisis, the earthquake in Japan and its aftermath, and the potential for serious consequences from political posturing around the U.S. debt ceiling slowed growth and depressed investor sentiment. Additionally, early commodity price increases pinched consumers' purchasing power, diluting any positive effect from the payroll tax cut.
In our view, however, uncertainty as to how the global debt problem will ultimately be resolved is the key factor currently holding back the market, as consumers, businesses and investors react quickly and conservatively to headlines. We believe swings in sentiment could meaningfully slow the economy by affecting business and consumer spending as well as production and hiring decisions. Still, during prior periods where there has been an absence of debt-related news, the underlying strength of the economy has shown through.
As for the Portfolio, it outperformed its benchmark from the start of the year through the market's late April peak, then more closely tracked the index as sentiment worsened and investors became less discriminating. For some time, the Portfolio has been positioned for a slow growth environment. Our focus has been on "best in class" companies with solid fundamentals, demonstrating resiliency in a challenging environment. We have continued to capitalize on market volatility by building positions in companies at what we consider to have very good valuations.
The Portfolio's strongest performing sector this period was Information Technology, with long-term semiconductor holding Altera among the top performers. Altera continues to see revenue momentum driven by a secular trend favoring programmable semiconductor chips. While we've trimmed the position somewhat, Altera remains a meaningful holding.
In Health Care, Industrials and Materials, we avoided deep cyclical names in favor of more stable companies that weathered the downturn well, buying them at deep discounts during the late 2009 and early 2010 cyclical rally. This positioning was beneficial during the weaker second quarter, with consumables-oriented Health Care businesses like C.R. Bard and Covidien significantly outperforming the benchmark, and Praxair, a Materials name, holding up well against more cyclical areas like coal, copper and steel.
The Portfolio's Energy holdings underperformed the corresponding index sector components, as fairly stable integrated energy names took the lead over the higher growth potential natural gas-focused names that we prefer and as the economy appeared to slow and the price of crude declined. For the full period, Newfield Exploration was a disappointment. We continue to hold Newfield, which we believe is a well-run company with the potential for double-digit production growth over the next several years.
Target, a purchase we began making early this year at what we think was a great valuation, also underperformed. Target has undertaken several initiatives that have the potential to materially accelerate same store sales growth—and while we saw positive same store comparables, they were modestly below expectations likely due to declining consumer sentiment and fuel and food price inflation. We continue to consider Target a great value.
Consistent with our practice since the financial crisis, we have used temporary price weakness to add to existing positions this period. We were also able to introduce Google, which we consider a great growth name, to the portfolio on a decline triggered by disappointment over the company's decision to sacrifice near-term earnings to invest for future growth. We are very constructive on our outlook for Google since we believe it is a financially strong business with strong secular fundamentals, positioned to grow in a challenging growth environment, and potentially offers a degree of pricing protection against an eventual rise in inflation.
1
We find current equity valuations very compelling, reflecting the fundamental uncertainty created by the debt overhang. With little differentiation between traditional growth and value stocks, we have the ability to buy good quality, growing businesses at very attractive valuations, which we believe should be beneficial for the Portfolio.
Looking ahead, we believe that the coming months may be similar to the recent past. While we believe the near-term direction of the markets will likely be punctuated by headline-driven volatility, our anticipation of a slow growth recovery over the intermediate to longer term remains. We think that corporations are financially strong, earnings have been resilient, and inventories are low and, in our view, will need to be restocked. In the environment we foresee, fundamentals-based equity research and stock picking skills should continue to be able to add relative value. In our opinion, this type of market plays to our strengths.
Sincerely,
Arthur Moretti
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in mid- to large-cap stocks are set forth in the prospectus and statement of additional information.
Mid-capitalization stocks are more vulnerable to financial risks and other risks than larger stocks. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile. Large-cap stocks are subject to all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.
The composition, industries and holdings of the Portfolio are subject to change. The AMT Guardian Portfolio is invested in a wide array of stocks and no single holding makes up a significant portion of the Portfolio's total assets.
2
Guardian Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 8.2 | % | |
| Consumer Staples | | | 10.5 | | |
| Energy | | | 14.6 | | |
| Financials | | | 12.5 | | |
| Health Care | | | 13.7 | | |
| Industrials | | | 13.8 | | |
| Information Technology | | | 21.1 | | |
| Materials | | | 2.1 | | |
| Short-Term Investments | | | 3.5 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS1
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2011 | |
| | | Date | | 06/30/2011 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund* | |
Guardian Portfolio Class I | | | 11/03/1997 | | | | 6.49 | % | | | 31.34 | % | | | 4.46 | % | | | 4.01 | % | | | 6.69 | % | |
Guardian Portfolio Class S2 | | | 08/02/2002 | | | | 6.42 | % | | | 31.20 | % | | | 4.27 | % | | | 3.82 | % | | | 6.55 | % | |
S&P 500 Index3 | | | | | 6.02 | % | | | 30.69 | % | | | 2.94 | % | | | 2.72 | % | | | 4.55 | % | |
Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit https://www.nb.com.
* Index returns are as of the inception date 11/03/1997.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.13% and 1.38% for Class I and Class S shares, respectively (prior to any fee waivers and/or expense reimbursements). The expense ratio net of waivers and/or reimbursements was 1.25% for Class S shares. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Portfolio through 12/31/2014 for Class I and Class S shares.
3
Endnotes
1 "Total Return" includes reinvestment of all income dividends and distributions. Results represent past performance and do not indicate future results. The value of an investment in the Portfolio and the return on the investment both will fluctuate, and redemption proceeds may be higher or lower than an investor's original cost. The performance information does not reflect fees and expenses of the variable annuity and variable life insurance policies or the qualified pension and retirement plans whose proceeds are invested in the Portfolio. Neuberger Berman Management LLC ("NBM LLC") has agreed to absorb certain expenses of the AMT Portfolios, including the Portfolio. Without this arrangement, which is subject to change, the total returns of the Portfolio may have been less.
2 Performance shown prior to August 2, 2002 for Class S shares is that of Class I shares, which has lower expenses and correspondingly higher returns than Class S shares.
3 The S&P 500 Index is widely regarded as the standard for measuring large-cap U.S. stock market performance and includes a representative sample of leading companies in leading industries. Please note that indices do not take into account any fees and expenses of investing in the individual securities that they track and that individuals cannot invest directly in any index. Data about the performance of this index are prepared or obtained by NBM LLC and include reinvestment of all income dividends and distributions. The Portfolio may invest in securities not included in the above-described index and may not invest in all securities included in the above-described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not NBM LLC's own projections, and they may or may not be realized. In addition, any revision to a forecast could affect the market price of a security. By quoting them herein, NBM LLC does not offer an opinion as to the accuracy of and does not guarantee these forecasted numbers.
The investments for the Portfolio are managed by the same portfolio manager(s) who manage(s) 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.
The composition, industries and holdings of the Portfolio are subject to change.
Shares of the separate AMT Portfolios are not available to the general public. Shares of this Portfolio 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.
Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the AMT Portfolios. This report is prepared for the general information of shareholders and is not an offer of shares of the AMT Portfolios. Shares of the AMT Portfolios are sold only through the currently effective prospectuses, which must precede or accompany this report.
The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2011 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses
This table is designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2011 and held for the entire period. The table illustrates the fund's costs in two ways:
| Actual Expenses and Performance: | | The first section of the table provides information about actual account values and actual expenses in dollars, based on the fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period. | |
| |
Hypothetical Example for Comparison Purposes: | | The second section of the table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. | |
| |
Please note that the expenses in the table are meant to highlight your ongoing costs only. The table and expense example do not include any transaction costs, such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan. Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Expense Information as of 6/30/11 (Unaudited)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST GUARDIAN PORTFOLIO
| Actual | | Beginning Account Value 1/1/11 | | Ending Account Value 6/30/11 | | Expenses Paid During the Period* 1/1/11 – 6/30/11 | | Expense Ratio | |
| Class I | | $ | 1,000.00 | | | $ | 1,064.90 | | | $ | 5.73 | | | | 1.12 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,064.20 | | | $ | 6.40 | | | | 1.25 | % | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,019.24 | | | $ | 5.61 | | | | 1.12 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,018.60 | | | $ | 6.26 | | | | 1.25 | % | |
* For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent half year divided by 365.
5
Schedule of Investments Guardian Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (96.7%) | | | |
| Beverages (2.3%) | | | |
| | 32,613 | | | Coca-Cola | | $ | 2,194,529 | | |
| Capital Markets (8.9%) | | | |
| | 97,303 | | | Bank of New York Mellon | | | 2,492,903 | | |
| | 13,800 | | | BlackRock, Inc. | | | 2,646,978 | | |
| | 216,880 | | | Charles Schwab | | | 3,567,676 | | |
| | | | 8,707,557 | | |
| Commercial Services & Supplies (2.8%) | | | |
| | 89,391 | | | Republic Services | | | 2,757,712 | | |
Electronic Equipment, Instruments & Components (5.0%) | | | |
| | 39,758 | | | Anixter International | | | 2,597,788 | | |
| | 75,552 | | | National Instruments | | | 2,243,139 | | |
| | | | 4,840,927 | | |
| Energy Equipment & Services (6.0%) | | | |
| | 42,655 | | | Cameron International | | | 2,145,120 | * | |
| | 42,542 | | | Schlumberger Ltd. | | | 3,675,629 | | |
| | | | 5,820,749 | | |
| Food & Staples Retailing (2.0%) | | | |
| | 24,552 | | | Costco Wholesale | | | 1,994,604 | | |
| Food Products (2.1%) | | | |
| | 41,555 | | | McCormick & Company | | | 2,059,881 | | |
| Health Care Equipment & Supplies (6.7%) | | | |
| | 32,185 | | | C.R. Bard | | | 3,535,844 | | |
| | 57,271 | | | Covidien PLC | | | 3,048,535 | | |
| | | | 6,584,379 | | |
| Household Products (4.1%) | | | |
| | 63,396 | | | Procter & Gamble | | | 4,030,084 | | |
| Industrial Conglomerates (7.6%) | | | |
| | 81,061 | | | Danaher Corp. | | | 4,295,422 | | |
| | 32,609 | | | 3M Co. | | | 3,092,964 | | |
| | | | 7,388,386 | | |
| Industrial Gases (2.1%) | | | |
| | 18,973 | | | Praxair, Inc. | | | 2,056,483 | | |
| Insurance (3.5%) | | | |
| | 161,550 | | | Progressive Corp. | | | 3,453,939 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Internet Software & Services (6.3%) | | | |
| | 6,305 | | | Google Inc. Class A | | $ | 3,192,726 | * | |
| | 197,167 | | | Yahoo! Inc. | | | 2,965,392 | * | |
| | | | 6,158,118 | | |
| IT Services (2.8%) | | | |
| | 8,935 | | | MasterCard, Inc. Class A | | | 2,692,473 | | |
| Media (5.1%) | | | |
| | 84,360 | | | Comcast Corp. Class A Special | | | 2,044,043 | | |
| | 59,194 | | | Scripps Networks Interactive Class A | | | 2,893,402 | | |
| | | | 4,937,445 | | |
| Multiline Retail (3.3%) | | | |
| | 68,125 | | | Target Corp. | | | 3,195,744 | | |
| Oil, Gas & Consumable Fuels (8.8%) | | | |
| | 182,524 | | | BG Group PLC | | | 4,142,201 | | |
| | 64,690 | | | Newfield Exploration | | | 4,400,214 | * | |
| | | | 8,542,415 | | |
| Pharmaceuticals (6.9%) | | | |
| | 61,885 | | | Hospira, Inc. | | | 3,506,404 | * | |
| | 19,451 | | | Roche Holding AG | | | 3,255,136 | | |
| | | | 6,761,540 | | |
| Road & Rail (1.3%) | | | |
| | 15,989 | | | Canadian National Railway | | | 1,277,521 | | |
Semiconductors & Semiconductor Equipment (7.0%) | | | |
| | 61,064 | | | Altera Corp. | | | 2,830,317 | | |
| | 122,498 | | | Texas Instruments | | | 4,021,609 | | |
| | | | 6,851,926 | | |
| Trading Companies & Distributors (2.1%) | | | |
| | 13,481 | | | W.W. Grainger | | | 2,071,356 | | |
| | | | | Total Common Stocks (Cost $70,452,877) | | | 94,377,768 | | |
| Short-Term Investments (3.5%) | | | |
| | 3,448,313 | | | State Street Institutional Treasury Money Market Fund Institutional Class (Cost $3,448,313) | | | 3,448,313 | | |
| | | | | Total Investments (100.2%) (Cost $73,901,190) | | | 97,826,081 | ## | |
| | | | | Liabilities, less cash, receivables and other assets [(0.2%)] | | | (215,872 | ) | |
| | | | | Total Net Assets (100.0%) | | $ | 97,610,209 | | |
See Notes to Schedule of Investments
6
Notes to Schedule of Investments Guardian Portfolio (Unaudited)
† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Advisers Management Trust Guardian Portfolio (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.
ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in equity securities, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted in active markets (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by the Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in State Street Institutional Treasury Money Market Fund Institutional Class are valued using the fund's daily calculated net asset value per share.
If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Advisers Management Trust's Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding.
The value of the Fund's investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time. The
See Notes to Financial Statements
7
Notes to Schedule of Investments Guardian Portfolio (Unaudited) (cont'd)
Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities. In this event, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.
The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of June 30, 2011:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 94,377,768 | | | $ | — | | | $ | — | | | $ | 94,377,768 | | |
| Short-Term Investments | | | — | | | | 3,448,313 | | | | — | | | | 3,448,313 | | |
| Total Investments | | $ | 94,377,768 | | | $ | 3,448,313 | | | $ | — | | | $ | 97,826,081 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no significant transfers between Levels 1 and 2 during the six months ended June 30, 2011.
## At June 30, 2011, the cost of investments for U.S. federal income tax purposes was $74,299,983. Gross unrealized appreciation of investments was $24,650,124 and gross unrealized depreciation of investments was $1,124,026, resulting in net unrealized appreciation of $23,526,098, based on cost for U.S. federal income tax purposes.
* Security did not produce income during the last twelve months.
See Notes to Financial Statements
8
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | GUARDIAN PORTFOLIO | |
| | | June 30, 2011 | |
| Assets | |
| Investments in securities, at value * (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 97,826,081 | | |
| Cash | | | 4,567 | | |
| Dividends and interest receivable | | | 76,405 | | |
| Receivable for Fund shares sold | | | 97,726 | | |
| Prepaid expenses and other assets | | | 2,313 | | |
| Total Assets | | | 98,007,092 | | |
| Liabilities | |
| Payable for securities purchased | | | 228,615 | | |
| Payable for Fund shares redeemed | | | 35,700 | | |
| Payable to investment manager (Note B) | | | 43,165 | | |
| Payable to administrator—net (Note B) | | | 28,180 | | |
| Accrued expenses and other payables | | | 61,223 | | |
| Total Liabilities | | | 396,883 | | |
| Net Assets at value | | $ | 97,610,209 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 73,565,750 | | |
| Undistributed net investment income (loss) | | | 442,785 | | |
| Accumulated net realized gains (losses) on investments | | | (326,164 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 23,927,838 | | |
| Net Assets at value | | $ | 97,610,209 | | |
| Net Assets | |
| Class I | | $ | 19,415,781 | | |
| Class S | | | 78,194,428 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | |
| Class I | | | 962,677 | | |
| Class S | | | 3,900,199 | | |
| Net Asset Value, offering and redemption price per share | |
| Class I | | $ | 20.17 | | |
| Class S | | | 20.05 | | |
| * Cost of Investments: | |
| Unaffiliated issuers | | $ | 73,901,190 | | |
See Notes to Financial Statements
9
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | GUARDIAN PORTFOLIO | |
| | | For the Six Months Ended June 30, 2011 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 714,974 | | |
| Interest income—unaffiliated issuers | | | 1,753 | | |
| Foreign taxes withheld | | | (22,511 | ) | |
| Total income | | $ | 694,216 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 262,818 | | |
| Administration fees (Note B): | |
| Class I | | | 26,005 | | |
| Class S | | | 117,350 | | |
| Distribution fees (Note B): | |
| Class S | | | 97,792 | | |
| Audit fees | | | 20,810 | | |
| Custodian fees (Note A) | | | 25,511 | | |
| Insurance expense | | | 2,696 | | |
| Legal fees | | | 25,633 | | |
| Shareholder reports | | | 24,970 | | |
| Trustees' fees and expenses | | | 27,273 | | |
| Miscellaneous | | | 2,916 | | |
| Total expenses | | | 633,774 | | |
| Expenses reimbursed by Management (Note B) | | | (47,465 | ) | |
| Total net expenses | | | 586,309 | | |
| Net investment income (loss) | | $ | 107,907 | | |
| Realized and Unrealized Gain (Loss) on Investments (Note A) | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 4,277,794 | | |
| Foreign currency | | | 6,945 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 1,436,600 | | |
| Foreign currency | | | 381 | | |
| Net gain (loss) on investments | | | 5,721,720 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 5,829,627 | | |
See Notes to Financial Statements
10
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | GUARDIAN PORTFOLIO | |
| | | Six Months Ended June 30, 2011 (Unaudited) | | Year Ended December 31, 2010 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | 107,907 | | | $ | 334,203 | | |
| Net realized gain (loss) on investments | | | 4,284,739 | | | | 8,273,072 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 1,436,981 | | | | 6,393,997 | | |
| Net increase (decrease) in net assets resulting from operations | | | 5,829,627 | | | | 15,001,272 | | |
| Distributions to Shareholders From (Note A): | |
| Net investment income: | |
| Class I | | | — | | | | (57,381 | ) | |
| Class S | | | — | | | | (226,058 | ) | |
| Total distributions to shareholders | | | — | | | | (283,439 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold: | |
| Class I | | | 6,990,660 | | | | 4,398,162 | | |
| Class S | | | 1,333,208 | | | | 2,324,104 | | |
| Proceeds from reinvestment of dividends and distributions: | |
| Class I | | | — | | | | 57,381 | | |
| Class S | | | — | | | | 226,058 | | |
| Payments for shares redeemed: | |
| Class I | | | (3,771,361 | ) | | | (5,360,459 | ) | |
| Class S | | | (5,094,619 | ) | | | (9,355,363 | ) | |
| Net increase (decrease) from Fund share transactions | | | (542,112 | ) | | | (7,710,117 | ) | |
| Net Increase (Decrease) in Net Assets | | | 5,287,515 | | | | 7,007,716 | | |
| Net Assets: | |
| Beginning of period | | | 92,322,694 | | | | 85,314,978 | | |
| End of period | | $ | 97,610,209 | | | $ | 92,322,694 | | |
| Undistributed net investment income (loss) at end of period | | $ | 442,785 | | | $ | 334,878 | | |
See Notes to Financial Statements
11
Notes to Financial Statements Guardian Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: The Fund is a separate operating series of Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware statutory trust organized pursuant to a Trust Instrument dated May 23, 1994. The Trust is currently comprised of ten separate operating series (each individually a "Series," and collectively the "Funds") each of which is diversified. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended. The Fund currently offers Class I and Class S shares. The Board may establish additional series or classes of shares without the approval of shareholders.
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.
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time, 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. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. 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, if any, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations. Included in net realized gain (loss) on investments are proceeds from the settlements of class action litigation in which the Fund participated as a class member. The amount of such proceeds for the six months ended June 30, 2011 was $13,893.
5 Income tax information: 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 requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. To the extent the Fund distributes substantially all of its earnings to shareholders, no federal income or excise tax provision is required.
The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2007-2009. As of June 30, 2011, the Fund did not have any unrecognized tax positions.
12
Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund as a whole. The Fund may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2010, permanent differences resulting primarily from different book and tax accounting for foreign currency gains and losses were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund.
The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 was as follows:
| | | Distributions Paid From: | | | |
| Ordinary Income | | Long-Term Gains | | Total | |
| 2010 | | 2009 | | 2010 | | 2009 | | 2010 | | 2009 | |
| $ | 283,439 | | | $ | 764,651 | | | $ | — | | | $ | — | | | $ | 283,439 | | | $ | 764,651 | | |
As of December 31, 2010, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed Ordinary Income | | Undistributed Long-Term Gain | | Unrealized Appreciation (Depreciation) | | Loss Carryforwards and Deferrals | | Total | |
| $ | 334,878 | | | $ | — | | | $ | 22,092,064 | | | $ | (4,212,110 | ) | | $ | 18,214,832 | | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales and capital loss carryforwards.
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. Under current tax law, the use of these losses to offset future gains may be limited. As determined at December 31, 2010, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| | | Expiring in: | |
| | | 2017 | |
| | | $ | 4,212,110 | | |
During the year ended December 31, 2010, the Fund utilized capital loss carryforwards of $7,500,163.
On December 22, 2010, the Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") was enacted. The Act modernizes several of the federal income and excise tax provisions related to RICs, and, with certain exceptions, is effective for taxable years beginning after December 22, 2010. Among the changes made are changes to the capital loss carryforward rules allowing for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character. Capital loss carryforwards generated in taxable years beginning after effective date of the Act must be fully used before capital loss carryforwards generated in taxable years prior to effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.
6 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in October). Income distributions and capital gain distributions to shareholders are recorded on the ex-date.
13
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Series are charged to that Series. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., the Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly. The Fund's expenses (other than those specific to each class) are allocated proportionally each day between the classes based upon the relative net assets of each class.
9 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.
10 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.
11 Expense offset arrangement: The Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended June 30, 2011, there was no reduction of expenses under this agreement.
12 Other: All net investment income and realized and unrealized capital gains and losses of the Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.
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 and are also offered directly to certain qualified pension and retirement plans.
The Fund retains 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, 0.425% of the next $2.5 billion, and 0.40% of average daily net assets in excess of $4 billion.
The Fund retains Management as its administrator under an Administration Agreement. Each class pays Management an administration fee at the annual rate of 0.30% of its average daily net assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator
14
under a Sub-Administration Agreement. Management pays State Street a fee for all services received under this agreement.
The Board adopted a non-fee distribution plan for the Fund's Class I.
For the Fund's Class S, Management acts as agent in arranging for the sale of class shares without commission and bears advertising and promotion expenses. The Board has adopted a distribution plan (the "Plan") with respect to this class, pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that, as compensation for administrative and other services provided to this class, Management's activities and expenses related to the sale and distribution of this class of shares, and ongoing services provided to investors in this class, Management receives from this class a fee at the annual rate of 0.25% of Class S's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for this class and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by this class during any year could have been more or less than the cost of distribution and other services provided to this class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plan complies with those rules.
Management has contractually undertaken to forgo current payment of fees and/or reimburse the Fund's Class I and Class S shares for their operating expenses (excluding fees payable to Management (including fees payable to Management with respect to the Fund's Class S shares), interest, taxes, brokerage commissions, extraordinary expenses, and transaction costs)("Operating Expenses") which exceed the expense limitation as detailed in the following table:
| | | Expense Limitation(1) | | Expiration | | Reimbursement from Management for the Six Months Ended June 30, 2011 | |
| Class I | | | 1.00 | % | | 12/31/14 | | $ | — | | |
| Class S | | | 1.25 | % | | 12/31/14 | | | 47,465 | | |
(1) Expense limitation per annum of the respective class' average daily net assets.
Each respective class has agreed to repay Management through December 31, 2017 for fees and expenses foregone and/or 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 or waived fees. During the six months ended June 30, 2011, there was no repayment to Management under its contractual expense limitation. At June 30, 2011, the Fund's Class I shares had no contingent liability to Management under its contractual expense limitation. At June 30, 2011, the Fund's Class S shares contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | |
| | | 2011 | | 2012 | | 2013 | | 2014 | | Total | |
| Class S | | $ | 10,820 | | | $ | 79,295 | | | $ | 91,992 | | | $ | 47,465 | | | $ | 229,572 | | |
Neuberger Berman LLC ("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.
Management and Neuberger are indirect subsidiaries of Neuberger Berman Group LLC ("NBG," and together with its consolidated subsidiaries "NB Group"). The voting equity of NBG is owned by NBSH Acquisition, LLC ("NBSH") and Lehman Brothers Holdings Inc. ("LBHI"). NBSH, which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees and senior professionals, owns
15
approximately 52% of the voting equity of NBG, and LBHI, which is a debtor in possession under chapter 11 of the U.S. Bankruptcy Code, owns the remaining 48% of the voting equity. LBHI's bankruptcy proceedings have had no material impact on the operations of the Fund. Management and Neuberger continue to operate in the ordinary course of business as the investment manager and sub-adviser, respectively, of the Fund.
Note C—Securities Transactions:
During the six months ended June 30, 2011, there were purchase and sale transactions (excluding short-term securities) of $13,573,558 and $14,770,552, respectively.
During the six months ended June 30, 2011, no brokerage commissions on securities transactions were paid to affiliated brokers.
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2011 and for the year ended December 31, 2010 was as follows:
For the Six Months Ended June 30, 2011
| | | Shares Sold | | Shares Issued on Reinvestment of Dividends and Distributions | | Shares Redeemed | | Total | |
| Class I | | | 343,874 | | | | — | | | | (188,322 | ) | | | 155,552 | | |
| Class S | | | 68,191 | | | | — | | | | (256,354 | ) | | | (188,163 | ) | |
For the Year Ended December 31, 2010
| | | Shares Sold | | Shares Issued on Reinvestment of Dividends and Distributions | | Shares Redeemed | | Total | |
| Class I | | | 259,281 | | | | 3,309 | | | | (315,796 | ) | | | (53,206 | ) | |
| Class S | | | 136,987 | | | | 13,105 | | | | (564,453 | ) | | | (414,361 | ) | |
Note E—Line of Credit:
At June 30, 2011, the Fund was a participant in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.125% per annum of the available line of credit is charged, of which each participating 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. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $200,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at June 30, 2011. During the six months ended June 30, 2011, the Fund did not utilize this line of credit.
Note F—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
16
Financial Highlights
Guardian Portfolio
The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements.
| Class I | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 18.94 | | | $ | 15.98 | | | $ | 12.45 | | | $ | 21.11 | | | $ | 19.71 | | | $ | 17.50 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .03 | | | | .08 | | | | .05 | | | | .12 | | | | .11 | | | | .05 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 1.20 | | | | 2.95 | | | | 3.64 | | | | (7.97 | ) | | | 1.35 | | | | 2.29 | | |
| Total From Investment Operations | | | 1.23 | | | | 3.03 | | | | 3.69 | | | | (7.85 | ) | | | 1.46 | | | | 2.34 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.07 | ) | | | (.16 | ) | | | (.10 | ) | | | (.06 | ) | | | (.13 | ) | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | (.71 | ) | | | — | | | | — | | |
| Total Distributions | | | — | | | | (.07 | ) | | | (.16 | ) | | | (.81 | ) | | | (.06 | ) | | | (.13 | ) | |
| Net Asset Value, End of Period | | $ | 20.17 | | | $ | 18.94 | | | $ | 15.98 | | | $ | 12.45 | | | $ | 21.11 | | | $ | 19.71 | | |
Total Return†† | | | 6.49 | %** | | | 19.01 | % | | | 29.69 | % | | | (37.24 | )% | | | 7.39 | % | | | 13.38 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 19.4 | | | $ | 15.3 | | | $ | 13.7 | | | $ | 67.0 | | | $ | 129.1 | | | $ | 155.0 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.12 | %* | | | 1.13 | % | | | 1.10 | % | | | 1.01 | % | | | .99 | % | | | .99 | % | |
Ratio of Net Expenses to Average Net Assets | | | 1.12 | %* | | | 1.13 | % | | | 1.10 | %§ | | | 1.01 | %§ | | | .99 | %§ | | | .99 | %§ | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .30 | %* | | | .50 | % | | | .39 | % | | | .65 | % | | | .55 | % | | | .29 | % | |
| Portfolio Turnover Rate | | | 14 | %** | | | 35 | % | | | 30 | % | | | 32 | % | | | 38 | % | | | 23 | % | |
See Notes to Financial Highlights
17
Financial Highlights (cont'd)
| Class S | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 18.84 | | | $ | 15.89 | | | $ | 12.38 | | | $ | 21.02 | | | $ | 19.67 | | | $ | 17.52 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .02 | | | | .06 | | | | .02 | | | | .08 | | | | .09 | | | | .02 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 1.19 | | | | 2.94 | | | | 3.63 | | | | (7.92 | ) | | | 1.32 | | | | 2.26 | | |
| Total From Investment Operations | | | 1.21 | | | | 3.00 | | | | 3.65 | | | | (7.84 | ) | | | 1.41 | | | | 2.28 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.05 | ) | | | (.14 | ) | | | (.09 | ) | | | (.06 | ) | | | (.13 | ) | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | (.71 | ) | | | — | | | | — | | |
| Total Distributions | | | — | | | | (.05 | ) | | | (.14 | ) | | | (.80 | ) | | | (.06 | ) | | | (.13 | ) | |
| Net Asset Value, End of Period | | $ | 20.05 | | | $ | 18.84 | | | $ | 15.89 | | | $ | 12.38 | | | $ | 21.02 | | | $ | 19.67 | | |
Total Return†† | | | 6.42 | %** | | | 18.94 | % | | | 29.50 | % | | | (37.36 | )% | | | 7.14 | % | | | 13.02 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 78.2 | | | $ | 77.0 | | | $ | 71.6 | | | $ | 48.6 | | | $ | 32.5 | | | $ | 1.5 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.25 | %* | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.24 | % | | | 1.25 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.25 | %* | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.24 | % | | | 1.25 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .21 | %* | | | .37 | % | | | .16 | % | | | .48 | % | | | .42 | % | | | .11 | % | |
| Portfolio Turnover Rate | | | 14 | %** | | | 35 | % | | | 30 | % | | | 32 | % | | | 38 | % | | | 23 | % | |
See Notes to Financial Highlights
18
Notes to Financial Highlights Guardian Portfolio (Unaudited)
†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period and assumes income dividends and other distributions, if any, were reinvested. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. 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 and/or waived certain expenses. Total return would have been higher if Management had not recouped previously reimbursed 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.
# The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.
‡ Calculated based on the average number of shares outstanding during each fiscal period.
§ After reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been:
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| Guardian Portfolio Class I | | | — | | | | — | | | | 1.10 | % | | | 1.01 | % | | | .99 | % | | | .99 | % | |
| Guardian Portfolio Class S | | | 1.37 | % | | | 1.38 | % | | | 1.38 | % | | | 1.27 | % | | | 1.24 | % | | | 1.25 | % | |
After reimbursement of expenses previously paid by Management and/or waiver of a portion of the investment management fee by Management. Had the Fund not made such reimbursements or Management not undertaken such actions, the annualized ratio of net expenses to average daily net assets would have been:
| | | Year Ended December 31, 2007 | |
| Guardian Portfolio Class S | | | 1.24 | % | |
* Annualized.
** Not annualized.
19
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 1-800-877-9700 (toll-free) and on the website of the Securities and Exchange Commission, at www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available, without charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings for the Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll free).
20
Neuberger Berman
Advisers Management Trust
International Portfolio
S Class Shares
Semi-Annual Report
June 30, 2011
F0324 08/11
International Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) International Portfolio posted a 6.00% return for the six months ended June 30, 2011, outperforming its benchmark, the MSCI EAFE® Index, which returned 5.35%.
Developed international markets, although volatile, closed in positive territory for the first half of 2011. Serious concerns weighed on the market this period as the sovereign debt crisis in Europe worsened, and Japan, the world's third largest economy, was impacted by the natural and nuclear disaster in March and its aftermath. Still, performance by country was mixed as growth rates and expectations, while modest overall, varied. Ireland, France, New Zealand, Spain and Germany were among the top performers within the index, while Israel, Finland, Japan, Greece and Hong Kong lagged. From a sector perspective, Health Care, Telecommunication Services and Consumer Staples led the index. Materials underperformed, as did Utilities and Information Technology (IT), with both turning in negative results.
The Portfolio's outperformance this period was primarily the result of stock selection, which was particularly strong within the IT, Health Care and Industrials sectors. From a country perspective, many of our top contributors came from within relatively weak western European markets, a further testament to the importance of bottom-up fundamental stock selection. Weaker regions this period included non-index countries such as Canada, Brazil and South Korea.
French companies Alcatel-Lucent and Arkema were top contributors to Portfolio results this period. Alcatel-Lucent, a telecom equipment manufacturer, beat earnings expectations as operators increased their spending and the stock advanced sharply. Arkema, a specialty chemical company, did well on continued strong demand from Asia and new applications. Tognum, a German manufacturer of high-speed engines for marine, industrial, power generation and defense applications, was the subject of a joint offer from Daimler and Rolls Royce. Chemring, a U.K.-based defense company, advanced on strong earnings. Finally, while Japan's economy overall was relatively weak this period, Nihon Kohden, a Japanese medical equipment manufacturer, was among the Portfolio's top contributors.
Although the effect of the Portfolio's top 10 contributors was far more significant than the effect of the bottom 10, several holdings disappointed. Centamin Egypt was the largest detractor this period. A Canadian-listed Egyptian gold mining company, Centamin's stock fell during the first quarter on unrest in Egypt, partly due to false rumors of a strike, and on concerns about a possible nationalization of mines. Silver Wheaton, another Canadian listing, was affected by weaker silver prices, an increase in margin requirements for silver trading, and the departure of its CEO. Regardless, we believe the company has both a best-in-class business model and management team. PostNL/TNT Express, the combined Dutch postal and global express package carrier, fell on concerns that slowing global growth would adversely affect volumes. The company also spun off its Netherlands mail business, Post NL, which seemed to weigh on the stock. PostNL underperformed after the de-merger and we eliminated the position from our Portfolio. Kenedix, a Tokyo-based real estate company, and Nippon Electric Glass, a Japanese LCD glass manufacturer, also detracted from results this period. We continue to own both companies.
Looking ahead, we believe continued debt issues in Europe and attendant belt tightening, contractionary monetary policies in most emerging markets, and raw materials price increases indicate a period of slowing economic growth. While a continued accommodative monetary policy in the U.S. may help to offset this, we have positioned the Portfolio relatively defensively, focusing on companies that, in our opinion, are able to perform in tougher economic times.
In Europe, we believe a focus on companies operating on a global basis with a strong and defensible position in emerging markets exposure can be beneficial. At this time, the Portfolio's European weighting is roughly neutral versus the benchmark, although we have extremely limited exposure to the economies we consider weakest (i.e., Greece, Ireland, Portugal and Spain). The Portfolio currently remains underweighted (compared to the benchmark) in Japan, where we have struggled to identify high-quality companies, and Australia, where we have found valuations to be unattractive. Despite recent underperformance, we have retained our exposure to emerging markets, with holdings in Brazil, Chile, China, South Korea, South Africa and Turkey.
From a sector perspective, the Portfolio is overweighted in Telecommunications. With data traffic doubling every 12-18 months and spectrum a finite resource, we expect telecom carriers to regain pricing power. The Portfolio is also modestly
1
overweighted in Materials, where we have exposure to agriculture-related and specialty chemical companies with pricing power and relatively stable end markets. Our largest underweight continues to be in Financials. Valuations of financial stocks in developed markets are at historically inexpensive levels on the basis of price to net assets, but the outlook remains challenging. We continue to see a risk to profits from increasing regulation, and credit demand in general is sluggish across developed markets. Emerging markets financials are, in general, quite expensive in our view, but we see some quality growth opportunities in China, Brazil and Turkey. Lastly, we have no exposure to Utilities—which we define as generally low growth, capital-intensive and regulated businesses.
Sincerely,
Benjamin Segal
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in companies based outside the United States are set forth in the prospectus and statement of additional information.
Investing in foreign securities involves greater risks than investing in securities of U.S. issuers, including currency fluctuations, changes in local economic and political conditions, and the need to operate in less regulated financial markets. These risks are typically heightened for investments in emerging markets.
The composition, industries and holdings of the Portfolio are subject to change. In an attempt to reduce overall volatility, the AMT International Portfolio diversifies its holdings over a wide array of countries and individual stocks.
2
International Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 10.1 | % | |
| Consumer Staples | | | 9.2 | | |
| Energy | | | 7.5 | | |
| Financials | | | 16.3 | | |
| Health Care | | | 9.6 | | |
| Industrials | | | 15.3 | | |
| Information Technology | | | 7.2 | | |
| Materials | | | 14.1 | | |
| Telecommunication Services | | | 8.4 | | |
| Short-Term Investments | | | 2.3 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS1
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2011 | |
| | | Date | | 06/30/2011 | | 1 Year | | 5 Years | | Life of Fund* | |
International Portfolio Class S | | | 04/29/2005 | | | | 6.00 | % | | | 36.05 | % | | | 1.60 | % | | | 5.54 | % | |
MSCI EAFE® Index2 | | | | | | | 5.35 | % | | | 30.93 | % | | | 1.96 | % | | | 5.92 | % | |
Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit https://www.nb.com.
* Index returns are as of the inception date 04/29/2005.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2010 was 1.67% for Class S shares (prior to any fee waivers and/or expense reimbursements). The expense ratio net of waivers and/or reimbursements was 1.52 for Class S shares. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Portfolio through 12/31/2014.
3
Endnotes
1 "Total Return" includes reinvestment of all income dividends and distributions. Results represent past performance and do not indicate future results. The value of an investment in the Portfolio and the return on the investment both will fluctuate, and redemption proceeds may be higher or lower than an investor's original cost. The performance information does not reflect fees and expenses of the variable annuity and variable life insurance policies or the qualified pension and retirement plans whose proceeds are invested in the Portfolio. Neuberger Berman Management LLC ("NBM LLC") has agreed to absorb certain expenses of the AMT Portfolios, including the Portfolio. Without this arrangement, which is subject to change, the total returns of the Portfolio may have been less.
2 The MSCI EAFE® Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. As of May 2011, the MSCI EAFE Index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The index is translated into U.S. dollars. Please note that indices do not take into account any fees and expenses of investing in the individual securities that they track and that individuals cannot invest directly in any index. Data about the performance of this index is prepared or obtained by NBM LLC and include reinvestment of all income dividends and distributions. The Portfolio may invest in securities not included in the above-described index and may not invest in all securities included in the above-described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not NBM LLC's own projections, and they may or may not be realized. In addition, any revision to a forecast could affect the market price of a security. By quoting them herein, NBM LLC does not offer an opinion as to the accuracy of and does not guarantee these forecasted numbers.
The investments for the Portfolio are managed by the same portfolio manager(s) who manage(s) 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.
The composition, industries and holdings of the Portfolio are subject to change.
Shares of the separate AMT Portfolios are not available to the general public. Shares of this Portfolio 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.
Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the AMT Portfolios. This report is prepared for the general information of shareholders and is not an offer of shares of the AMT Portfolios. Shares of the AMT Portfolios are sold only through the currently effective prospectuses, which must precede or accompany this report.
The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2011 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses
This table is designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2011 and held for the entire period. The table illustrates the fund's costs in two ways:
| Actual Expenses and Performance: | | The first section of the table provides information about actual account values and actual expenses in dollars, based on the fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period. | |
| |
| Hypothetical Example for Comparison Purposes: | | The second section of the table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. | |
| |
Please note that the expenses in the table are meant to highlight your ongoing costs only. The table and expense example do not include any transaction costs, such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan. Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Expense Information as of 6/30/11 (Unaudited)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO
| Actual | | Beginning Account Value 1/1/11 | | Ending Account Value 6/30/11 | | Expenses Paid During the Period* 1/1/11 – 6/30/11 | |
| Class S | | $ | 1,000.00 | | | $ | 1,060.00 | | | $ | 7.66 | | |
| Hypothetical (5% annual return before expenses)** | |
| Class S | | $ | 1,000.00 | | | $ | 1,017.36 | | | $ | 7.50 | | |
* Expenses are equal to the annualized expense ratio of 1.50%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent half year divided by 365.
5
Schedule of Investments International Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (97.4%) | | | |
| Australia (1.4%) | | | |
| | 3,700 | | | CSL Ltd. | | $ | 131,197 | | |
| | 28,355 | | | Fortescue Metals Group | | | 193,117 | | |
| | 17,800 | | | Imdex Ltd. | | | 41,046 | | |
| | | | 365,360 | | |
| Austria (0.7%) | | | |
| | 3,160 | | | Vienna Insurance Group Wiener Staedtische Versicherung | | | 173,676 | | |
| Belgium (3.3%) | | | |
| | 2,554 | | | Anheuser-Busch InBev | | | 148,147 | | |
| | 5,290 | | | Colruyt SA | | | 264,660 | | |
| | 4,655 | | | Omega Pharma | | | 238,966 | | |
| | 4,040 | | | Telenet Group Holding | | | 192,221 | * | |
| | | | 843,994 | | |
| Brazil (2.6%) | | | |
| | 14,500 | | | Banco Santander Brasil ADR | | | 169,795 | | |
| | 100 | | | HRT Participacoes em Petroleo | | | 89,706 | * | |
| | 17,200 | | | Porto Seguro | | | 267,812 | | |
| | 8,400 | | | TOTVS SA | | | 155,012 | | |
| | | | 682,325 | | |
| Canada (9.3%) | | | |
| | 3,500 | | | Cenovus Energy | | | 132,096 | | |
| | 12,462 | | | Corus Entertainment, B Shares | | | 265,534 | | |
| | 3,900 | | | Crescent Point Energy | | | 180,230 | | |
| | 5,300 | | | Goldcorp, Inc. | | | 256,359 | | |
| | 5,448 | | | MacDonald, Dettwiler | | | 308,651 | | |
| | 24,200 | | | Neo Material Technologies | | | 232,854 | * | |
| | 13,300 | | | New Gold | | | 137,213 | * | |
| | 9,300 | | | Peyto Exploration & Development | | | 207,320 | | |
| | 4,901 | | | Potash Corp. of Saskatchewan | | | 279,897 | | |
| | 7,200 | | | Silver Wheaton | | | 237,624 | | |
| | 3,200 | | | Vermilion Energy | | | 169,216 | | |
| | | | 2,406,994 | | |
| Chile (1.1%) | | | |
| | 4,410 | | | Sociedad Quimica y Minera de Chile ADR, B Shares | | | 285,415 | | |
| China (2.2%) | | | |
| | 455,000 | | | Bank of China, H Shares | | | 222,188 | | |
| | 245,500 | | | China Liansu Group Holdings | | | 200,332 | | |
| | 103,100 | | | China Vanke, B Shares | | | 138,850 | | |
| | | | 561,370 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Denmark (2.9%) | | | |
| | 2,260 | | | Novo Nordisk Class B | | $ | 283,631 | | |
| | 10,220 | | | Sydbank AS | | | 228,109 | | |
| | 4,316 | | | Tryg A/S | | | 248,971 | | |
| | | | 760,711 | | |
| Egypt (0.2%) | | | |
| | 22,200 | | | Centamin Egypt | | | 44,656 | * | |
| France (9.7%) | | | |
| | 51,370 | | | Alcatel-Lucent | | | 297,083 | * | |
| | 2,625 | | | Arkema | | | 270,234 | | |
| | 3,304 | | | BNP Paribas | | | 255,041 | | |
| | 6,600 | | | CFAO | | | 285,981 | | |
| | 1,653 | | | Cie Generale des Etablissements Michelin Class B | | | 161,660 | | |
| | 10,510 | | | CNP Assurances | | | 229,149 | | |
| | 6,645 | | | Eutelsat Communications | | | 298,723 | | |
| | 1,290 | | | LVMH Moet Hennessy Louis Vuitton | | | 232,153 | | |
| | 6,006 | | | Sodexo | | | 470,841 | | |
| | | | 2,500,865 | | |
| Germany (7.7%) | | | |
| | 3,185 | | | Brenntag AG | | | 370,237 | | |
| | 4,916 | | | Deutsche Boerse | | | 373,556 | | |
| | 16,030 | | | Deutsche Telekom | | | 251,404 | | |
| | 5,116 | | | Fresenius Medical Care | | | 382,448 | | |
| | 3,700 | | | HeidelbergCement AG | | | 236,219 | | |
| | 2,071 | | | Linde AG | | | 363,094 | | |
| | | | 1,976,958 | | |
| Hong Kong (0.8%) | | | |
| | 4,250 | | | China Mobile ADR | | | 198,815 | | |
| Ireland (0.6%) | | | |
| | 5,865 | | | DCC PLC | | | 167,296 | | |
| Japan (10.4%) | | | |
| | 17,800 | | | Brother Industries | | | 262,008 | | |
| | 11,700 | | | Circle K Sunkus | | | 182,102 | | |
| | 414 | | | Jupiter Telecommunications | | | 462,828 | | |
| | 41 | | | KDDI Corp. | | | 293,857 | | |
| | 56 | | | Kenedix Realty Investment | | | 215,639 | | |
| | 5,200 | | | Makita Corp. | | | 240,929 | | |
| | 18,200 | | | Nihon Kohden | | | 451,468 | | |
| | 26,500 | | | Nippon Electric Glass | | | 337,731 | | |
| | 7,500 | | | Sundrug Co. | | | 237,563 | | |
| | | | 2,684,125 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| Korea (1.8%) | | | |
| | 510 | | | Samsung Electronics GDR | | $ | 197,676 | ñ | |
| | 2,800 | | | Shinhan Financial Group ADR | | | 268,660 | | |
| | | | 466,336 | | |
| Netherlands (8.1%) | | | |
| | 4,535 | | | Akzo Nobel | | | 286,075 | | |
| | 2,996 | | | Fugro NV | | | 216,016 | | |
| | 20,815 | | | Koninklijke Ahold | | | 279,693 | | |
| | 5,103 | | | Nutreco Holding | | | 375,260 | | |
| | 7,866 | | | Sligro Food Group | | | 280,438 | | |
| | 7,580 | | | TNT Express | | | 78,616 | * | |
| | 10,520 | | | Unilever NV | | | 344,852 | | |
| | 12,808 | | | USG People | | | 221,489 | | |
| | | | 2,082,439 | | |
| Norway (1.9%) | | | |
| | 18,636 | | | DnB NOR | | | 259,757 | | |
| | 29,249 | | | Prosafe ASA | | | 219,781 | | |
| | | | 479,538 | | |
| South Africa (1.1%) | | | |
| | 13,986 | | | MTN Group | | | 297,640 | | |
| Sweden (1.7%) | | | |
| | 4,128 | | | Elekta AB, B Shares | | | 195,527 | | |
| | 10,200 | | | Nordea Bank AB | | | 109,657 | | |
| | 9,880 | | | Telefonaktiebolaget LM Ericsson, B Shares | | | 142,455 | | |
| | | | 447,639 | | |
| Switzerland (11.0%) | | | |
| | 1,244 | | | Bucher Industries | | | 274,324 | | |
| | 7,332 | | | Credit Suisse Group | | | 285,170 | * | |
| | 319 | | | Givaudan SA | | | 337,497 | * | |
| | 4,594 | | | Nestle SA | | | 285,503 | | |
| | 4,602 | | | Novartis AG | | | 281,895 | | |
| | 1,837 | | | Roche Holding | | | 307,423 | | |
| | 192 | | | SGS SA | | | 364,474 | | |
| | 77 | | | Sika AG | | | 185,642 | | |
| | 3,245 | | | Sulzer AG | | | 528,000 | | |
| | | | 2,849,928 | | |
| Turkey (0.6%) | | | |
| | 136,290 | | | Sinpas Gayrimenkul Yatirim Ortakligi | | | 152,833 | | |
| United Kingdom (18.3%) | | | |
| | 48,333 | | | Amlin PLC | | | 315,020 | | |
| | 18,075 | | | Avanti Communications Group | | | 107,625 | * | |
| | 13,175 | | | BG Group | | | 298,994 | | |
| | 20,280 | | | Bunzl PLC | | | 253,878 | | |
| | 42,570 | | | Chemring Group | | | 437,266 | | |
| | 20,186 | | | Experian Group | | | 257,074 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| | 4,821 | | | Fidessa Group | | $ | 149,875 | | |
| | 26,621 | | | Informa PLC | | | 184,616 | | |
| | 10,800 | | | Jazztel PLC | | | 69,256 | *ñ | |
| | 39,040 | | | Jazztel PLC | | | 250,346 | * | |
| | 71,790 | | | Mitie Group | | | 274,107 | | |
| | 27,111 | | | Reed Elsevier | | | 246,277 | | |
| | 3,400 | | | Rio Tinto ADR | | | 245,888 | | |
| | 56,564 | | | RPS Group | | | 222,599 | | |
| | 7,979 | | | Subsea 7 | | | 204,091 | * | |
| | 14,100 | | | Synergy Health | | | 207,063 | | |
| | 10,928 | | | Tullow Oil | | | 217,482 | | |
| | 190,010 | | | Vodafone Group | | | 504,093 | | |
| | 7,100 | | | Willis Group Holdings | | | 291,881 | | |
| | | | 4,737,431 | | |
| | | | | Total Common Stocks (Cost $21,196,154) | | | 25,166,344 | | |
| Rights (0.0%) | | | |
| Belgium (0.0%) | | | |
| | 77,560 | | | Ageas VVPR Strip | | | 113 | * | |
| | 112,269 | | | Anheuser-Busch InBev VVPR Strip | | | 651 | * | |
| | | | | Total Rights (Cost $43) | | | 764 | | |
| Warrants (0.0%) | | | |
| Italy (0.0%) | | | |
| | 124,793 | | | UBI Banca (Cost $0) | | | 18 | * | |
| Short-Term Investments (2.3%) | | | |
| | 583,336 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $583,336) | | | 583,336 | | |
| | | | | Total Investments (99.7%) (Cost $21,779,533) | | | 25,750,462 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (0.3%) | | | 79,722 | | |
| | | | | Total Net Assets (100.0%) | | $ | 25,830,184 | | |
See Notes to Schedule of Investments
7
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY INTERNATIONAL PORTFOLIO (UNAUDITED)
| Industry | | Value† | | Percentage of Net Assets | |
| Chemicals | | $ | 2,240,708 | | | | 8.7 | % | |
| Insurance | | | 1,526,622 | | | | 5.9 | % | |
| Commercial Banks | | | 1,513,225 | | | | 5.9 | % | |
| Media | | | 1,457,978 | | | | 5.7 | % | |
| Oil, Gas & Consumable Fuels | | | 1,295,044 | | | | 5.0 | % | |
| Wireless Telecommunication Services | | | 1,294,405 | | | | 5.0 | % | |
| Food & Staples Retailing | | | 1,244,456 | | | | 4.8 | % | |
| Metals & Mining | | | 1,155,903 | | | | 4.5 | % | |
| Machinery | | | 1,043,253 | | | | 4.0 | % | |
| Food Products | | | 1,005,615 | | | | 3.9 | % | |
| Health Care Equipment & Supplies | | | 885,961 | | | | 3.4 | % | |
| Pharmaceuticals | | | 872,949 | | | | 3.4 | % | |
| Diversified Telecommunication Services | | | 870,852 | | | | 3.4 | % | |
| Professional Services | | | 843,037 | | | | 3.3 | % | |
| Energy Equipment & Services | | | 639,888 | | | | 2.5 | % | |
| Trading Companies & Distributors | | | 624,115 | | | | 2.4 | % | |
| Software | | | 613,538 | | | | 2.4 | % | |
| Health Care Providers & Services | | | 589,511 | | | | 2.3 | % | |
| Commercial Services & Supplies | | | 496,706 | | | | 1.9 | % | |
| Hotels, Restaurants & Leisure | | | 470,841 | | | | 1.8 | % | |
| Communications Equipment | | | 439,538 | | | | 1.7 | % | |
| Aerospace & Defense | | | 437,266 | | | | 1.7 | % | |
| Diversified Financial Services | | | 373,556 | | | | 1.4 | % | |
| Real Estate Investment Trusts | | | 368,472 | | | | 1.4 | % | |
| Electronic Equipment, Instruments & Components | | | 337,731 | | | | 1.3 | % | |
| Distributors | | | 285,981 | | | | 1.1 | % | |
| Capital Markets | | | 285,170 | | | | 1.1 | % | |
| Office Electronics | | | 262,008 | | | | 1.0 | % | |
| Construction Materials | | | 236,219 | | | | 0.9 | % | |
| Textiles, Apparel & Luxury Goods | | | 232,153 | | | | 0.9 | % | |
| Building Products | | | 200,332 | | | | 0.8 | % | |
| Semiconductors & Semiconductor Equipment | | | 197,676 | | | | 0.8 | % | |
| Industrial Conglomerates | | | 167,296 | | | | 0.6 | % | |
| Auto Components | | | 161,660 | | | | 0.6 | % | |
| Beverages | | | 148,798 | | | | 0.6 | % | |
| Real Estate Management & Development | | | 138,850 | | | | 0.5 | % | |
| Biotechnology | | | 131,197 | | | | 0.5 | % | |
| Air Freight & Logistics | | | 78,616 | | | | 0.3 | % | |
| Short-Term Investments and Other Assets—Net | | | 663,058 | | | | 2.6 | % | |
| | | $ | 25,830,184 | | | | 100.0 | % | |
See Notes to Schedule of Investments
8
Notes to Schedule of Investments International Portfolio
(Unaudited)
† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Advisers Management Trust International Portfolio (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.
ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1—quoted prices in active markets for identical investments
• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in equity securities, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted in active markets (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by the Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in State Street Institutional Liquid Reserves Fund Institutional Class are valued using the fund's daily calculated net asset value per share.
If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Advisers Management Trust's Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding.
The value of the Fund's investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time. The
See Notes to Financial Statements
9
Notes to Schedule of Investments International Portfolio
(Unaudited) (cont'd)
Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities. In this event, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.
The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of June 30, 2011:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3§ | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 25,166,344 | | | $ | — | | | $ | — | | | $ | 25,166,344 | | |
| Rights^ | | | 764 | | | | — | | | | — | | | | 764 | | |
| Warrants^ | | | — | | | | — | | | | 18 | | | | 18 | | |
| Short-Term Investments | | | — | | | | 583,336 | | | | — | | | | 583,336 | | |
| Total Investments | | $ | 25,167,108 | | | $ | 583,336 | | | $ | 18 | | | $ | 25,750,462 | | |
^ The Schedule of Investments and Summary Schedule of Investments by Industry provide information on the country and industry categorization for the portfolio.
§ The following is a reconciliation between the beginning and ending balances of investments in which significant unobservable inputs (Level 3) were used in determining value:
Investments in Securities: | | Beginning balance, as of 1/1/11 | | Accrued discounts/ (premiums) | | Realized gain/loss and change in unrealized appreciation/ (depreciation) | | Purchases | | Sales | | Transfers in to Level 3 | | Transfers out of Level 3 | | Balance, as of 6/30/11 | | Net change in unrealized appreciation/ (depreciation) from investments still held as of 6/30/11 | |
| Warrants | | $ | — | | | $ | — | | | $ | (516 | ) | | $ | — | | | $ | — | | | $ | 534 | | | $ | — | | | $ | 18 | | | $ | (516 | ) | |
The Fund had no significant transfers between Levels 1 and 2 during the six months ended June 30, 2011.
## At June 30, 2011, the cost of investments for U.S. federal income tax purposes was $22,556,088. Gross unrealized appreciation of investments was $3,485,244 and gross unrealized depreciation of investments was $290,870, resulting in net unrealized appreciation of $3,194,374, based on cost for U.S. federal income tax purposes.
See Notes to Financial Statements
10
Notes to Schedule of Investments International Portfolio
(Unaudited) (cont'd)
ñ Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be liquid. At June 30, 2011, these securities amounted to $266,932 or 1.0% of net assets for the Fund.
* Security did not produce income during the last twelve months.
See Notes to Financial Statements
11
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | INTERNATIONAL PORTFOLIO | |
| | | June 30, 2011 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 25,750,462 | | |
| Foreign currency | | | 21,653 | | |
| Dividends and interest receivable | | | 140,159 | | |
| Receivable for securities sold | | | 212,018 | | |
| Receivable from Management—net (Note B) | | | 15,589 | | |
| Total Assets | | | 26,139,881 | | |
| Liabilities | |
| Payable for securities purchased | | | 202,545 | | |
| Payable for Fund shares redeemed | | | 42,779 | | |
| Payable to investment manager (Note B) | | | 17,811 | | |
| Accrued expenses and other payables | | | 46,562 | | |
| Total Liabilities | | | 309,697 | | |
| Net Assets at value | | $ | 25,830,184 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 153,632,898 | | |
| Undistributed net investment income (loss) | | | 1,570,749 | | |
| Accumulated net realized gains (losses) on investments | | | (133,358,007 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 3,984,544 | | |
| Net Assets at value | | $ | 25,830,184 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 2,356,361 | | |
| Net Asset Value, offering and redemption price per share | | $ | 10.96 | | |
| *Cost of Investments: | | | | | |
| Unaffiliated issuers | | $ | 21,779,533 | | |
| Total cost of foreign currency | | $ | 21,565 | | |
See Notes to Financial Statements
12
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | INTERNATIONAL PORTFOLIO | |
| | | For the Six Months Ended June 30, 2011 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 471,754 | | |
| Interest income—unaffiliated issuers | | | 527 | | |
| Foreign taxes withheld | | | (45,368 | ) | |
| Total income | | $ | 426,913 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 107,610 | | |
| Administration fees (Note B) | | | 37,980 | | |
| Distribution fees (Note B) | | | 31,650 | | |
| Audit fees | | | 20,809 | | |
| Custodian fees (Note A) | | | 51,432 | | |
| Insurance expense | | | 6,488 | | |
| Legal fees | | | 6,870 | | |
| Shareholder reports | | | 104,318 | | |
| Trustees' fees and expenses | | | 27,273 | | |
| Miscellaneous | | | 3,045 | | |
| Total expenses | | | 397,475 | | |
| Expenses reimbursed by Management (Note B) | | | (207,578 | ) | |
| Total net expenses | | | 189,897 | | |
| Net investment income (loss) | | $ | 237,016 | | |
| Realized and Unrealized Gain (Loss) on Investments (Note A) | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 1,063,029 | | |
| Foreign currency | | | 21,559 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 186,876 | | |
| Foreign currency | | | (15,847 | ) | |
| Net gain (loss) on investments | | | 1,255,617 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 1,492,633 | | |
See Notes to Financial Statements
13
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | INTERNATIONAL PORTFOLIO | |
| | | Six Months Ended June 30, 2011 (Unaudited) | | Year Ended December 31, 2010 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | 237,016 | | | $ | 2,104,525 | | |
| Net realized gain (loss) on investments | | | 1,084,588 | | | | 38,059,689 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 171,029 | | | | (51,887,186 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | 1,492,633 | | | | (11,722,972 | ) | |
| Distributions to Shareholders From (Note A): | |
| Net investment income | | | — | | | | (2,679,376 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold | | | 1,501,223 | | | | 14,509,693 | | |
| Proceeds from reinvestment of dividends and distributions | | | — | | | | 2,679,376 | | |
| Payments for shares redeemed | | | (1,990,560 | ) | | | (308,068,821 | ) | |
| Redemption fees retained | | | 162 | | | | 711 | | |
| Net increase (decrease) from Fund share transactions | | | (489,175 | ) | | | (290,879,041 | ) | |
| Net Increase (Decrease) in Net Assets | | | 1,003,458 | | | | (305,281,389 | ) | |
| Net Assets: | |
| Beginning of period | | | 24,826,726 | | | | 330,108,115 | | |
| End of period | | $ | 25,830,184 | | | $ | 24,826,726 | | |
| Undistributed net investment income (loss) at end of period | | $ | 1,570,749 | | | $ | 1,333,733 | | |
See Notes to Financial Statements
14
Notes to Financial Statements International Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: The Fund is a separate operating series of Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware statutory trust organized pursuant to a Trust Instrument dated May 23, 1994. The Trust is currently comprised of ten separate operating series (each individually a "Series," and collectively the "Funds") each of which is diversified. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended. The Fund currently offers only Class S shares. The Board may establish additional series or classes of shares without the approval of shareholders.
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.
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time, 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. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. 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, if any, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations.
5 Income tax information: 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 requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. To the extent the Fund distributes substantially all of its earnings to shareholders, no federal income or excise tax provision is required.
The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2007 - 2009. As of June 30, 2011, the Fund did not have any unrecognized tax positions.
Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and
15
differing characterization of distributions made by the Fund as a whole. The Fund may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2010, permanent differences resulting primarily from different book and tax accounting for foreign currency gains and losses, non-taxable dividend income adjustments and passive foreign investment company gains and losses were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund.
The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 was as follows:
| Distributions Paid From: | | | |
| Ordinary Income | | Total | | | |
| 2010 | | 2009 | | 2010 | | 2009 | | | |
| $ | 2,679,376 | | | $ | 10,084,277 | | | $ | 2,679,376 | | | $ | 10,084,277 | | | | |
As of December 31, 2010, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed Ordinary Income | | Unrealized Appreciation (Depreciation) | | Loss Carryforwards and Deferrals | | Total | |
| $ | 1,454,120 | | | $ | 2,823,927 | | | $ | (133,573,394 | ) | | $ | (129,295,347 | ) | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales, forward contracts mark to market, passive foreign investment companies and capital loss carryforwards.
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. Under current tax law, the use of these losses to offset future gains may be limited. As determined at December 31, 2010, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| Expiring in: | |
| 2016 | | 2017 | |
| $ | 69,986,646 | | | $ | 63,586,748 | | |
During the year ended December 31, 2010, the Fund utilized capital loss carryforwards of $30,638,282.
On December 22, 2010, the Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") was enacted. The Act modernizes several of the federal income and excise tax provisions related to RICs, and, with certain exceptions, is effective for taxable years beginning after December 22, 2010. Among the changes made are changes to the capital loss carryforward rules allowing for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character. Capital loss carryforwards generated in taxable years beginning after effective date of the Act must be fully used before capital loss carryforwards generated in taxable years prior to effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.
6 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in October). Income distributions and capital gain distributions to shareholders are recorded on the ex-date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.
16
8 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Series are charged to that Series. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., the Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly.
9 Redemption of fund shares: Prior to May 1, 2011, the Fund charged a redemption fee of 2% on shares redeemed or exchanged for shares of another fund within 60 days or less of the purchase date. As of May 1, 2011, the Fund no longer charged a redemption fee. All redemption fees were paid to and recorded by the Fund as Paid-in capital. For the six months ended June 30, 2011, the Fund received $162 in redemption fees.
10 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.
11 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.
12 Expense offset arrangement: The Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended June 30, 2011, there was no reduction of expenses under this 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 and are also offered directly to certain qualified pension and retirement plans.
The Fund retains 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 0.85% of the first $250 million of the Fund's average daily net assets, 0.825% of the next $250 million, 0.80% of the next $250 million, 0.775% of the next $250 million, 0.75% of the next $500 million, 0.725% of the next $1 billion, and 0.70% of average daily net assets in excess of $2.5 billion.
The Fund retains Management as its administrator under an Administration Agreement. The Fund pays Management an administration fee at the annual rate of 0.30% of its average daily net assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under this agreement.
17
Management acts as agent in arranging for the sale of Fund shares without commission and bears advertising and promotion expenses. The Board has adopted a distribution plan (the "Plan") with respect to the Fund, pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that, as compensation for administrative and other services provided to the Fund, Management's activities and expenses related to the sale and distribution of the Fund's shares, and ongoing services provided to investors in the Fund, Management receives from the Fund a fee at the annual rate of 0.25% of the Fund's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for the Fund and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by the Fund during any year could have been more or less than the cost of distribution and other services provided to the Fund. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plan complies with those rules.
Management has contractually undertaken through December 31, 2014 to forgo current payment of fees and/or reimburse the Fund for its operating expenses (including fees payable to Management but excluding interest, taxes, brokerage commissions, extraordinary expenses, and transaction costs)("Operating Expenses") which exceed, in the aggregate, 2.00% per annum of the Fund's average daily net assets (the "Expense Limitation"). Moreover, Management has contractually committed to reimburse certain expenses, as stated above, for an additional 0.50% per annum of the Fund's average daily net assets to maintain the Fund's Operating Expenses at 1.50% until May 1, 2012. For the six months ended June 30, 2011, such excess expenses amounted to $207,578. The Fund has agreed to repay Management through December 31, 2017 for fees and expenses foregone and/or 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 or waived fees. During the six months ended June 30, 2011, there was no repayment to Management under its contractual expense limitation. At June 30, 2011, contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | | | |
| | | 2013 | | 2014 | | Total | |
| | | $ | 217,800 | | | $ | 207,578 | | | $ | 425,378 | | |
Neuberger Berman LLC ("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.
Management and Neuberger are indirect subsidiaries of Neuberger Berman Group LLC ("NBG," and together with its consolidated subsidiaries "NB Group"). The voting equity of NBG is owned by NBSH Acquisition, LLC ("NBSH") and Lehman Brothers Holdings Inc. ("LBHI"). NBSH, which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees and senior professionals, owns approximately 52% of the voting equity of NBG, and LBHI, which is a debtor in possession under chapter 11 of the U.S. Bankruptcy Code, owns the remaining 48% of the voting equity. LBHI's bankruptcy proceedings have had no material impact on the operations of the Fund. Management and Neuberger continue to operate in the ordinary course of business as the investment manager and sub-adviser, respectively, of the Fund.
Note C—Securities Transactions:
During the six months ended June 30, 2011, there were purchase and sale transactions (excluding short-term securities) of $6,451,122 and $6,805,598, respectively.
During the six months ended June 30, 2011, no brokerage commissions on securities transactions were paid to affiliated brokers.
18
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2011 and for the year ended December 31, 2010 was as follows:
| | | For the Six Months Ended June 30, 2011 | | For the Year Ended December 31, 2010 | |
| Shares Sold | | | 140,479 | | | | 1,513,829 | | |
| Shares Issued on Reinvestment of Dividends and Distributions | | | — | | | | 272,571 | | �� |
| Shares Redeemed | | | (185,333 | ) | | | (34,113,468 | ) | |
| Total | | | (44,854 | ) | | | (32,327,068 | ) | |
Note E—Line of Credit:
At June 30, 2011, the Fund was a participant in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.125% per annum of the available line of credit is charged, of which each participating 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. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $200,000,000 at any particular time.
At June 30, 2011, the Fund was a participant in a single uncommitted, secured $100,000,000 line of credit with State Street to be used only for temporary or emergency purposes or for leverage. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged at LIBOR, or the overnight Federal Funds Rate, plus a spread to be determined at the time of borrowing. Because several mutual funds participate, there is no assurance that the Fund will have access to all or any part of the $100,000,000 at any particular time.
The Fund had no loans outstanding pursuant to these lines of credit at June 30, 2011. During the six months ended June 30, 2011, the Fund did not utilize these lines of credit.
Note F—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
19
Financial Highlights
International Portfolio
The following table includes selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements.
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 (Unaudited) | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| Net Asset Value, Beginning of Period | | $ | 10.34 | | | $ | 9.51 | | | $ | 7.29 | | | $ | 13.61 | | | $ | 14.29 | | | $ | 11.68 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .10 | | | | .13 | | | | .09 | | | | .32 | | | | .13 | | | | .10 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .52 | | | | 1.90 | | | | 2.43 | | | | (6.64 | ) | | | .30 | | | | 2.64 | | |
| Total From Investment Operations | | | .62 | | | | 2.03 | | | | 2.52 | | | | (6.32 | ) | | | .43 | | | | 2.74 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (1.20 | ) | | | (.30 | ) | | | — | | | | (.24 | ) | | | (.03 | ) | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | — | | | | (.87 | ) | | | (.10 | ) | |
| Total Distributions | | | — | | | | (1.20 | ) | | | (.30 | ) | | | — | | | | (1.11 | ) | | | (.13 | ) | |
Redemption Fees‡ | | | .00 | | | | .00 | | | | .00 | | | | .00 | | | | .00 | | | | .00 | | |
Net Asset Value, End of Period $ | | | 10.96 | | | $ | 10.34 | | | $ | 9.51 | | | $ | 7.29 | | | $ | 13.61 | | | $ | 14.29 | | |
Total Return†† | | | 6.00 | %** | | | 22.01 | % | | | 34.51 | % | | | (46.44 | )% | | | 3.21 | % | | | 23.45 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 25.8 | | | $ | 24.8 | | | $ | 330.1 | | | $ | 246.9 | | | $ | 653.7 | | | $ | 338.6 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.50 | %* | | | 1.50 | % | | | 1.50 | % | | | 1.53 | % | | | 1.51 | % | | | 1.50 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.50 | %* | | | 1.50 | % | | | 1.50 | % | | | 1.53 | % | | | 1.50 | % | | | 1.50 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | 1.87 | %* | | | 1.42 | % | | | 1.13 | % | | | 2.78 | % | | | .85 | % | | | .75 | % | |
| Portfolio Turnover Rate | | | 26 | %** | | | 61 | % | | | 80 | % | | | 149 | % | | | 43 | % | | | 39 | % | |
See Notes to Financial Highlights
20
Notes to Financial Highlights International Portfolio
(Unaudited)
†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period and assumes income dividends and other distributions, if any, were reinvested. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. 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 and/or waived 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. For the year ended December 31, 2009, Management reimbursed the Fund for losses incurred in connection with the disposition of foreign currency contracts, which had a .01% impact on total return.
# The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.
‡ Calculated based on the average number of shares outstanding during the fiscal period.
§ After reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been:
Six Months Ended June 30, | | Year Ended December 31, | |
| 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | 3.14 | % | | | 1.65 | % | | | 1.66 | % | | | 1.59 | % | | | 1.53 | % | | | 1.67 | % | |
* Annualized.
** Not annualized.
21
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 1-800-877-9700 (toll-free) and on the website of the Securities and Exchange Commission, at www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available, without charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings for the Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll free).
22
Neuberger Berman
Advisers Management Trust
Mid Cap Growth Portfolio
I Class Shares
S Class Shares
Semi-Annual Report
June 30, 2011
B0736 08/11
Mid Cap Growth Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Mid Cap Growth Portfolio Class I provided a 9.66% return for the six months ended June 30, 2011, outperforming its benchmark, the Russell Midcap® Growth Index, which returned 9.59% for the period. Returns for the Porfolio's Class I and Class S shares are provided on page 3.
For the first half of 2011, market performance across the equity spectrum was strong, even considering the ongoing rotation between "risk on" and "risk off" investor sentiment. Growth outperformed value, and mid-cap growth outperformed both large- and small-cap growth during the period. Earnings continued to be strong in the mid-cap growth space, across economic sectors. In our view, mid-cap companies are often in the economic "sweet spot," offering new products or services in the right marketplaces. The first half of the year also provided, in our view, a favorable environment for fundamentals-driven quality growth managers.
From an economic perspective, the year started out very strong, but appeared to hit a soft patch during the second quarter due to a number of factors, including continued weakness in Europe along with renewed worry about the region's sovereign debt crisis, significant global supply chain disruptions that followed the earthquake in Japan, the Chinese government's purposeful slowing of that country's robust economy, and the heightened pressures of rising commodity prices, particularly oil.
These factors plus ongoing malaise in the housing market and a lack of significant improvement in unemployment negatively impacted investor sentiment. Regarding unemployment, while merger and acquisition activity and capital investments have picked up, companies have remained reluctant to hire—a situation we think will continue to weigh on the market. On the other hand, we are impressed by the market's and economic recovery's resilience in overcoming the turmoil in the Middle East, the crisis in Japan and the end of the latest round of quantitative easing, or QE2.
Through most of the reporting period, the Portfolio maintained above-benchmark weightings in Information Technology (IT), Energy, Industrials, and Health Care; and underweights in Consumer Discretionary and Staples, Materials, and Financials. Although Portfolio holdings did not significantly change, at the end of June the annual rebalancing of the Russell Midcap Growth Index accentuated the Portfolio's underweight relative to the benchmark in Materials, moved the Portfolio from an overweight to underweight position in Energy, and increased its overweight in IT.
During the period, stock selection was beneficial to performance versus the benchmark, with positive contributions coming primarily from within the Energy, Industrials, IT and, to a lesser extent, Health Care sectors. Stock selection within Consumer Discretionary, Consumer Staples and Financials detracted from results.
Within Energy, our strongest sector, CARBO Ceramics and Core Laboratories were standouts. CARBO continues to benefit from increased horizontal drilling activity in North America, seeing strong demand from both oil and gas producers. Core Labs, which provides analysis of oil and gas reservoirs as well as tools for increasing production efficiency, also experienced strong demand.
Information Technology, the largest single sector weighting in the Portfolio, included outperformers Varian Semiconductor, Informatica and Avago Technologies. We sold Varian Semiconductor, whose ion implant equipment enables higher performance chips, after Applied Materials announced it was acquiring the company at a significant premium. Informatica, a data integration tools company helping businesses turn unstructured data into useful, economically valuable information, was also strong. Avago, a diversified semiconductor company, continued to benefit from the growth of smart phones and their continued penetration into other consumer and network devices.
Disappointments within IT included Dolby Laboratories and F5 Networks, both of which were sold. We grew concerned about Dolby, a long-term holding, because of its lack of exposure to the growing tablet computer market. F5, a company that helps optimize network-based application delivery, declined on a modestly disappointing first quarter. After a year of strong performance, we decided to realize a profit by selling the stock.
In Consumer Discretionary, our weakest sector on a relative basis, WMS Industries and Urban Outfitters detracted from results and were sold. WMS is a leader in video gambling machines, but the economic downturn hurt the gaming
1
industry, causing delays in the product replacement cycle. Urban Outfitters, a relatively long-term holding, suffered missteps in the current fashion cycle and underwent some management changes.
Going into the second half of the year, the Portfolio remains overweighted in IT, Industrials and Health Care and underweighted in Consumer Discretionary, Consumer Staples and Financials, positioning we currently expect to maintain. After the benchmark's rebalancing, the Portfolio is relatively neutral in Energy, although we expect the sector to become an overweight later in the year. Key themes within the Portfolio continue to include mobile and digital media, cloud computing, health care cost savings, onshore oil and gas exploration, and a bifurcated high-end/low-end approach to retail survivors.
After a very good first half, we are cautiously optimistic about the market. We anticipate earnings to remain strong but to decelerate somewhat during the remainder of the year, and that economic growth will remain subdued. In our opinion, this type of environment plays to our strengths. In the past, quality has typically shined when investors have been discriminating and mindful of risk, and stock picking has had the potential to add value. In our view, market valuations remain attractive, even after this period's run. We continue to focus on identifying quality growth companies with innovative products or services, global aspirations, and exceptional cash flows and top-line growth—and the management teams, strategic positions, operating models, and financial strength needed to continue to succeed in a competitive global economy.
Sincerely,
Kenneth J. Turek
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in companies with mid-market capitalization are set forth in the prospectus and statement of additional information.
Mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
The composition, industries and holdings of the Portfolio are subject to change. The AMT Mid Cap Growth Portfolio is invested in a wide array of stocks and no single holding makes up a significant portion of the Portfolio's total assets.
2
Mid Cap Growth Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 15.5 | % | |
| Consumer Staples | | | 3.1 | | |
| Energy | | | 9.0 | | |
| Financials | | | 5.1 | | |
| Health Care | | | 14.3 | | |
| Industrials | | | 20.0 | | |
| Information Technology | | | 26.8 | | |
| Materials | | | 2.3 | | |
| Telecommunication Services | | | 3.3 | | |
| Short-Term Investments | | | 0.6 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS1
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2011 | |
| | | Date | | 06/30/2011 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund* | |
Mid Cap Growth Portfolio Class I | | | 11/03/1997 | | | | 9.66 | % | | | 42.11 | % | | | 6.74 | % | | | 4.44 | % | | | 8.66 | % | |
Mid Cap Growth Portfolio Class S2 | | | 02/18/2003 | | | | 9.56 | % | | | 41.81 | % | | | 6.49 | % | | | 4.22 | % | | | 8.49 | % | |
Russell Midcap® Growth Index3 | | | | | | | 9.59 | % | | | 43.25 | % | | | 6.28 | % | | | 5.52 | % | | | 6.62 | % | |
Russell Midcap® Index3 | | | | | | | 8.08 | % | | | 38.47 | % | | | 5.30 | % | | | 7.59 | % | | | 8.42 | % | |
Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit https://www.nb.com.
* Index returns are as of the inception date 11/03/1997.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.02% and 1.27% for Class I and Class S shares, respectively (prior to any fee waivers and/or expense reimbursements). The expense ratio net of waivers and/or reimbursements was 1.25% for Class S shares. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Portfolio through 12/31/2014 for Class I and Class S shares.
3
Endnotes
1 "Total Return" includes reinvestment of all income dividends and distributions. Results represent past performance and do not indicate future results. The value of an investment in the Portfolio and the return on the investment both will fluctuate, and redemption proceeds may be higher or lower than an investor's original cost. The performance information does not reflect fees and expenses of the variable annuity and variable life insurance policies or the qualified pension retirement plans whose proceeds are invested in the Portfolio. Neuberger Berman Management LLC ("NBM LLC") has agreed to absorb certain expenses of the AMT Portfolios, including the Portfolio. Without this arrangement, which is subject to change, the total returns of the Portfolio may have been less.
2 Performance shown prior to February 18, 2003 for Class S shares is of Class I shares, which has lower expenses and correspondingly higher returns than Class S shares.
3 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 31% 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). 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 NBM LLC and include reinvestment of all income dividends and distributions. The Portfolio may invest in securities not included in the above-described indices and may not invest in all securities included in the above-described indices.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not NBM LLC's own projections, and they may or may not be realized. In addition, any revision to a forecast could affect the market price of a security. By quoting them herein, NBM LLC does not offer an opinion as to the accuracy of and does not guarantee these forecasted numbers.
The investments for the Portfolio are managed by the same portfolio manager(s) who manage(s) 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 AMT Portfolios are not available to the general public. Shares of this Portfolio 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.
Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the AMT Portfolios. This report is prepared for the general information of shareholders and is not an offer of shares of the AMT Portfolios. Shares of the AMT Portfolios are sold only through the currently effective prospectuses, which must precede or accompany this report.
The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2011 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses
This table is designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2011 and held for the entire period. The table illustrates the fund's costs in two ways:
| Actual Expenses and Performance: | | The first section of the table provides information about actual account values and actual expenses in dollars, based on the fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period. | |
| |
Hypothetical Example for Comparison Purposes: | | The second section of the table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. | |
| |
Please note that the expenses in the table are meant to highlight your ongoing costs only. The table and expense example do not include any transaction costs, such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan. Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Expense Information as of 6/30/11 (Unaudited)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST MID CAP GROWTH PORTFOLIO
| Actual | | Beginning Account Value 1/1/11 | | Ending Account Value 6/30/11 | | Expenses Paid During the Period* 1/1/11 – 6/30/11 | | Expense Ratio | |
| Class I | | $ | 1,000.00 | | | $ | 1,096.60 | | | $ | 5.25 | | | | 1.01 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,095.60 | | | $ | 6.49 | | | | 1.25 | % | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,019.79 | | | $ | 5.06 | | | | 1.01 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,018.60 | | | $ | 6.26 | | | | 1.25 | % | |
* For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent half year divided by 365.
5
Schedule of Investments Mid Cap Growth Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (99.0%) | | | |
| Aerospace & Defense (2.7%) | | | |
| | 68,600 | | | BE Aerospace | | $ | 2,799,566 | * | |
| | 49,000 | | | HEICO Corp. | | | 2,682,260 | | |
| | 21,700 | | | Precision Castparts | | | 3,572,905 | | |
| | | | 9,054,731 | | |
| Air Freight & Logistics (0.9%) | | | |
| | 39,200 | | | C.H. Robinson Worldwide | | | 3,090,528 | | |
| Auto Components (2.0%) | | | |
| | 44,100 | | | BorgWarner, Inc. | | | 3,562,839 | * | |
| | 102,900 | | | Gentex Corp. | | | 3,110,667 | | |
| | | | 6,673,506 | | |
| Biotechnology (1.2%) | | | |
| | 90,000 | | | Alexion Pharmaceuticals | | | 4,232,700 | * | |
| Capital Markets (1.7%) | | | |
| | 37,900 | | | Affiliated Managers Group | | | 3,844,955 | * | |
| | 56,500 | | | Stifel Financial | | | 2,026,090 | * | |
| | | | 5,871,045 | | |
| Chemicals (1.6%) | | | |
| | 50,000 | | | Airgas, Inc. | | | 3,502,000 | | |
| | 27,300 | | | Sigma-Aldrich | | | 2,003,274 | | |
| | | | 5,505,274 | | |
| Commercial Services & Supplies (1.8%) | | | |
| | 70,000 | | | Stericycle, Inc. | | | 6,238,400 | * | |
| Communications Equipment (1.3%) | | | |
| | 34,300 | | | Acme Packet | | | 2,405,459 | * | |
| | 58,800 | | | Juniper Networks | | | 1,852,200 | * | |
| | | | 4,257,659 | | |
| Computers & Peripherals (1.0%) | | | |
| | 62,400 | | | NetApp, Inc. | | | 3,293,472 | * | |
| Diversified Financial Services (2.1%) | | | |
| | 29,400 | | | IntercontinentalExchange Inc. | | | 3,666,474 | * | |
| | 88,200 | | | MSCI Inc. Class A | | | 3,323,376 | * | |
| | | | 6,989,850 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Electrical Equipment (4.7%) | | | |
| | 100,900 | | | AMETEK, Inc. | | $ | 4,530,410 | | |
| | 39,200 | | | Polypore International | | | 2,659,328 | * | |
| | 48,000 | | | Roper Industries | | | 3,998,400 | | |
| | 122,500 | | | Sensata Technologies Holding | | | 4,612,125 | * | |
| | | | 15,800,263 | | |
Electronic Equipment, Instruments & Components (3.8%) | | | |
| | 60,100 | | | Amphenol Corp. Class A | | | 3,244,799 | | |
| | 120,000 | | | National Instruments | | | 3,562,800 | | |
| | 110,500 | | | Trimble Navigation | | | 4,380,220 | * | |
| | 45,000 | | | Universal Display | | | 1,579,050 | * | |
| | | | 12,766,869 | | |
| Energy Equipment & Services (5.5%) | | | |
| | 37,500 | | | CARBO Ceramics | | | 6,110,625 | | |
| | 83,500 | | | Complete Production Services | | | 2,785,560 | * | |
| | 50,000 | | | Core Laboratories | | | 5,577,000 | | |
| | 50,000 | | | Oil States International | | | 3,995,500 | * | |
| | | | 18,468,685 | | |
| Food & Staples Retailing (0.7%) | | | |
| | 36,800 | | | Whole Foods Market | | | 2,334,960 | | |
| Food Products (1.4%) | | | |
| | 70,600 | | | Mead Johnson Nutrition | | | 4,769,030 | | |
| Health Care Equipment & Supplies (3.7%) | | | |
| | 50,500 | | | Edwards Lifesciences | | | 4,402,590 | * | |
| | 7,200 | | | Intuitive Surgical | | | 2,679,192 | * | |
| | 100,900 | | | NxStage Medical | | | 2,100,738 | * | |
| | 105,700 | | | Volcano Corp. | | | 3,413,053 | * | |
| | | | 12,595,573 | | |
| Health Care Providers & Services (2.3%) | | | |
| | 60,000 | | | Catalyst Health Solutions | | | 3,349,200 | * | |
| | 57,600 | | | HMS Holdings | | | 4,427,712 | * | |
| | | | 7,776,912 | | |
| Health Care Technology (2.0%) | | | |
| | 76,800 | | | Cerner Corp. | | | 4,693,248 | * | |
| | 24,000 | | | Quality Systems | | | 2,095,200 | | |
| | | | 6,788,448 | | |
| Hotels, Restaurants & Leisure (1.7%) | | | |
| | 50,000 | | | Arcos Dorados Holdings Class A | | | 1,054,500 | | |
| | 7,000 | | | Chipotle Mexican Grill | | | 2,157,330 | * | |
| | 66,200 | | | Hyatt Hotels Class A | | | 2,702,284 | * | |
| | | | 5,914,114 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| Household Products (1.0%) | | | |
| | 84,400 | | | Church & Dwight | | $ | 3,421,576 | | |
| Internet Software & Services (1.1%) | | | |
| | 52,800 | | | Rackspace Hosting | | | 2,256,672 | * | |
| | 35,000 | | | WebMD Health | | | 1,595,300 | * | |
| | | | 3,851,972 | | |
| IT Services (3.3%) | | | |
| | 70,000 | | | Cognizant Technology Solutions Class A | | | 5,133,800 | * | |
| | 115,300 | | | Sapient Corp. | | | 1,732,959 | * | |
| | 95,000 | | | VeriFone Systems | | | 4,213,250 | * | |
| | | | 11,080,009 | | |
| Life Science Tools & Services (1.2%) | | | |
| | 35,000 | | | Illumina, Inc. | | | 2,630,250 | * | |
| | 14,700 | | | Waters Corp. | | | 1,407,378 | * | |
| | | | 4,037,628 | | |
| Machinery (4.4%) | | | |
| | 36,100 | | | Cummins Inc. | | | 3,735,989 | | |
| | 80,000 | | | Danaher Corp. | | | 4,239,200 | | |
| | 60,000 | | | Donaldson Co. | | | 3,640,800 | | |
| | 57,600 | | | Pall Corp. | | | 3,238,848 | | |
| | | | 14,854,837 | | |
| Media (2.3%) | | | |
| | 62,400 | | | Discovery Communications Class A | | | 2,555,904 | * | |
| | 73,500 | | | Focus Media Holding ADR | | | 2,285,850 | * | |
| | 57,600 | | | Scripps Networks Interactive | | | 2,815,488 Class A | | |
| | | | 7,657,242 | | |
| Metals & Mining (0.7%) | | | |
| | 24,000 | | | Cliffs Natural Resources | | | 2,218,800 | | |
| Multiline Retail (2.6%) | | | |
| | 78,400 | | | Dollar Tree | | | 5,223,008 | * | |
| | 75,900 | | | Nordstrom, Inc. | | | 3,562,746 | | |
| | | | 8,785,754 | | |
| Oil, Gas & Consumable Fuels (3.5%) | | | |
| | 34,300 | | | Cabot Oil & Gas | | | 2,274,433 | | |
| | 60,000 | | | Concho Resources | | | 5,511,000 | * | |
| | 60,000 | | | Denbury Resources | | | 1,200,000 | * | |
| | 50,000 | | | Whiting Petroleum | | | 2,845,500 | * | |
| | | | 11,830,933 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Pharmaceuticals (3.7%) | | | |
| | 53,900 | | | Medicis Pharmaceutical | | $ | 2,057,363 | | |
| | | | | Class A | | | | | |
| | 49,000 | | | Perrigo Co. | | | 4,305,630 | | |
| | 53,900 | | | Salix Pharmaceuticals | | | 2,146,837 | * | |
| | 58,800 | | | Watson Pharmaceuticals | | | 4,041,324 | * | |
| | | | 12,551,154 | | |
| Professional Services (1.0%) | | | |
| | 96,100 | | | Verisk Analytics Class A | | | 3,326,982 | * | |
Real Estate Management & Development (1.3%) | | | |
| | 45,000 | | | Jones Lang LaSalle | | | 4,243,500 | | |
| Road & Rail (1.2%) | | | |
| | 83,600 | | | J.B. Hunt Transport Services | | | 3,936,724 | | |
Semiconductors & Semiconductor Equipment (3.7%) | | | |
| | 140,300 | | | Avago Technologies | | | 5,331,400 | | |
| | 36,500 | | | Cavium Inc. | | | 1,591,035 | * | |
| | 105,700 | | | Microchip Technology | | | 4,007,087 | | |
| | 60,000 | | | NXP Semiconductors | | | 1,603,800 | * | |
| | | | 12,533,322 | | |
| Software (12.6%) | | | |
| | 86,400 | | | ANSYS, Inc. | | | 4,723,488 | * | |
| | 49,000 | | | Ariba, Inc. | | | 1,689,030 | * | |
| | 33,300 | | | BMC Software | | | 1,821,510 | * | |
| | 57,600 | | | Check Point Software Technologies | | | 3,274,560 | * | |
| | 52,800 | | | Citrix Systems | | | 4,224,000 | * | |
| | 105,700 | | | Informatica Corp. | | | 6,176,051 | * | |
| | 60,100 | | | MICROS Systems | | | 2,987,571 | * | |
| | 98,000 | | | QLIK Technologies | | | 3,337,880 | * | |
| | 44,100 | | | RealD Inc. | | | 1,031,499 | * | |
| | 41,700 | | | Red Hat | | | 1,914,030 | * | |
| | 96,100 | | | Rovi Corp. | | | 5,512,296 | * | |
| | 21,700 | | | Salesforce.com, Inc. | | | 3,232,866 | * | |
| | 43,200 | | | Solera Holdings | | | 2,555,712 | | |
| | | | 42,480,493 | | |
| Specialty Retail (5.2%) | | | |
| | 78,800 | | | Bed Bath & Beyond | | | 4,599,556 | * | |
| | 86,700 | | | Dick's Sporting Goods | | | 3,333,615 | * | |
| | 53,900 | | | O'Reilly Automotive | | | 3,530,989 | * | |
| | 52,800 | | | Ross Stores | | | 4,230,336 | | |
| | 29,400 | | | Tractor Supply | | | 1,966,272 | | |
| | | | 17,660,768 | | |
| Textiles, Apparel & Luxury Goods (1.6%) | | | |
| | 44,100 | | | Coach, Inc. | | | 2,819,313 | | |
| | 38,400 | | | Phillips-Van Heusen | | | 2,514,048 | | |
| | | | 5,333,361 | | |
See Notes to Schedule of Investments
7
| NUMBER OF SHARES | | | | VALUE† | |
| Trading Companies & Distributors (3.2%) | | | |
| | 165,200 | | | Fastenal Co. | | $ | 5,945,548 | | |
| | 39,200 | | | MSC Industrial Direct Class A | | | 2,599,352 | | |
| | 41,700 | | | WESCO International | | | 2,255,553 | * | |
| | | | 10,800,453 | | |
| Wireless Telecommunication Services (3.3%) | | | |
| | 49,000 | | | American Tower Class A | | | 2,564,170 | * | |
| | 98,000 | | | NII Holdings | | | 4,153,240 | * | |
| | 117,100 | | | SBA Communications Class A | | | 4,472,049 | * | |
| | | | 11,189,459 | | |
| | | | | Total Common Stocks (Cost $206,785,068) | | | 334,216,986 | | |
| Short-Term Investments (0.6%) | | | |
| | 2,212,662 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $2,212,662) | | | 2,212,662 | | |
| | | | | Total Investments (99.6%) (Cost $208,997,730) | | | 336,429,648 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (0.4%) | | | 1,261,133 | | |
| | | | | Total Net Assets (100.0%) | | $ | 337,690,781 | | |
See Notes to Schedule of Investments
8
Notes to Schedule of Investments Mid Cap Growth Portfolio (Unaudited)
† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Advisers Management Trust Mid Cap Growth Portfolio (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.
ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in equity securities, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted in active markets (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by the Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in State Street Institutional Liquid Reserves Fund Institutional Class are valued using the fund's daily calculated net asset value per share.
If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Advisers Management Trust's Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding.
The value of the Fund's investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time. The
See Notes to Financial Statements
9
Notes to Schedule of Investments Mid Cap Growth Portfolio (Unaudited) (cont'd)
Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities. In this event, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.
The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of June 30, 2011:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 334,216,986 | | | $ | — | | | $ | — | | | $ | 334,216,986 | | |
| Short-Term Investments | | | — | | | | 2,212,662 | | | | — | | | | 2,212,662 | | |
| Total Investments | | $ | 334,216,986 | | | $ | 2,212,662 | | | $ | — | | | $ | 336,429,648 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no significant transfers between Levels 1 and 2 during the six months ended June 30, 2011.
## At June 30, 2011, the cost of investments for U.S. federal income tax purposes was $209,661,405. Gross unrealized appreciation of investments was $128,485,826 and gross unrealized depreciation of investments was $1,717,583, resulting in net unrealized appreciation of $126,768,243, based on cost for U.S. federal income tax purposes.
* Security did not produce income during the last twelve months.
See Notes to Financial Statements
10
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | MID CAP GROWTH PORTFOLIO | |
| | | June 30, 2011 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 336,429,648 | | |
| Dividends and interest receivable | | | 61,194 | | |
| Receivable for securities sold | | | 2,407,657 | | |
| Receivable for Fund shares sold | | | 632,881 | | |
| Prepaid expenses and other assets | | | 6,624 | | |
| Total Assets | | | 339,538,004 | | |
| Liabilities | |
| Payable for securities purchased | | | 1,329,995 | | |
| Payable for Fund shares redeemed | | | 121,212 | | |
| Payable to investment manager (Note B) | | | 144,947 | | |
| Payable to administrator—net (Note B) | | | 90,076 | | |
| Accrued expenses and other payables | | | 160,993 | | |
| Total Liabilities | | | 1,847,223 | | |
| Net Assets at value | | $ | 337,690,781 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 264,131,394 | | |
| Undistributed net investment income (loss) | | | (1,061,469 | ) | |
| Accumulated net realized gains (losses) on investments | | | (52,811,062 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 127,431,918 | | |
| Net Assets at value | | $ | 337,690,781 | | |
| Net Assets | |
| Class I | | $ | 271,486,177 | | |
| Class S | | | 66,204,604 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | |
| Class I | | | 9,029,055 | | |
| Class S | | | 2,248,921 | | |
| Net Asset Value, offering and redemption price per share | |
| Class I | | $ | 30.07 | | |
| Class S | | | 29.44 | | |
| *Cost of Investments: | |
| Unaffiliated issuers | | $ | 208,997,730 | | |
See Notes to Financial Statements
11
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | MID CAP GROWTH PORTFOLIO | |
| | | For the Six Months Ended June 30, 2011 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 679,001 | | |
| Interest Income—unaffiliated issuers | | | 1,396 | | |
| Foreign taxes withheld | | | (3,788 | ) | |
| Total income | | $ | 676,609 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 895,884 | | |
| Administration fees (Note B): | |
| Class I | | | 401,438 | | |
| Class S | | | 92,785 | | |
| Distribution fees (Note B): | |
| Class S | | | 77,321 | | |
| Audit fees | | | 20,809 | | |
| Custodian fees (Note A) | | | 54,526 | | |
| Insurance expense | | | 10,205 | | |
| Legal fees | | | 88,764 | | |
| Shareholder reports | | | 59,704 | | |
| Trustees' fees and expenses | | | 27,273 | | |
| Miscellaneous | | | 12,223 | | |
| Total expenses | | | 1,740,932 | | |
| Expenses reimbursed by Management (Note B) | | | (2,854 | ) | |
| Total net expenses | | | 1,738,078 | | |
| Net investment income (loss) | | $ | (1,061,469 | ) | |
| Realized and Unrealized Gain (Loss) on Investments (Note A) | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 30,141,751 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 1,317,666 | | |
| Net gain (loss) on investments | | | 31,459,417 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 30,397,948 | | |
See Notes to Financial Statements
12
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | MID CAP GROWTH PORTFOLIO | |
| | | Six Months Ended June 30, 2011 | | Year Ended December 31, 2010 (Unaudited) | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | (1,061,469 | ) | | $ | (1,534,288 | ) | |
| Net realized gain (loss) on investments | | | 30,141,751 | | | | 26,150,806 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 1,317,666 | | | | 49,484,663 | | |
| Net increase (decrease) in net assets resulting from operations | | | 30,397,948 | | | | 74,101,181 | | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold: | |
| Class I | | | 5,844,496 | | | | 15,025,210 | | |
| Class S | | | 7,834,769 | | | | 15,437,784 | | |
| Payments for shares redeemed: | |
| Class I | | | (25,142,740 | ) | | | (44,837,450 | ) | |
| Class S | | | (6,460,681 | ) | | | (11,719,211 | ) | |
| Net increase (decrease) from Fund share transactions | | | (17,924,156 | ) | | | (26,093,667 | ) | |
| Net Increase (Decrease) in Net Assets | | | 12,473,792 | | | | 48,007,514 | | |
| Net Assets: | |
| Beginning of period | | | 325,216,989 | | | | 277,209,475 | | |
| End of period | | $ | 337,690,781 | | | $ | 325,216,989 | | |
| Undistributed net investment income (loss) at end of period | | $ | (1,061,469 | ) | | $ | — | | |
See Notes to Financial Statements
13
Notes to Financial Statements Mid Cap Growth Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: The Fund is a separate operating series of Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware statutory trust organized pursuant to a Trust Instrument dated May 23, 1994. The Trust is currently comprised of ten separate operating series (each individually a "Series," and collectively the "Funds") each of which is diversified. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended. The Fund currently offers Class I and Class S shares. The Board may establish additional series or classes of shares without the approval of shareholders.
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.
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time, 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. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. 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, if any, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations. Included in net realized gain (loss) on investments are proceeds from the settlements of class action litigation in which the Fund participated as a class member. The amount of such proceeds for the six months ended June 30, 2011 was $58,943.
5 Income tax information: 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 requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. To the extent the Fund distributes substantially all of its earnings to shareholders, no federal income or excise tax provision is required.
The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2007-2009. As of June 30, 2011, the Fund did not have any unrecognized tax positions.
14
Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund as a whole. The Fund may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2010, permanent differences resulting primarily from different book and tax accounting for net operating losses, expiration of capital loss carryforwards and partnership basis adjustments were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund.
As of December 31, 2010, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Unrealized Appreciation (Depreciation) | | Loss Carryforwards and Deferrals | | Total | |
| $ | 124,871,232 | | | $ | (81,709,793 | ) | | $ | 43,161,439 | | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales and capital loss carryforwards.
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. Under current tax law, the use of these losses to offset future gains may be limited. As determined at December 31, 2010, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| | | Expiring in: | |
| | | 2011 | | 2016 | | 2017 | |
| | | | | $ | 11,059,422 | | | $ | 21,770,564 | | | $ | 48,879,807 | | |
The Fund had $87,479,341 of capital loss carryforwards that expired during the year ended December 31, 2010.
During the year ended December 31, 2010, the Fund utilized capital loss carryforwards of $25,943,777.
On December 22, 2010, the Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") was enacted. The Act modernizes several of the federal income and excise tax provisions related to RICs, and, with certain exceptions, is effective for taxable years beginning after December 22, 2010. Among the changes made are changes to the capital loss carryforward rules allowing for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character. Capital loss carryforwards generated in taxable years beginning after effective date of the Act must be fully used before capital loss carryforwards generated in taxable years prior to effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.
6 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in October). Income distributions and capital gain distributions to shareholders are recorded on the ex-date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Series are charged to that Series. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., the Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more
15
appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly. The Fund's expenses (other than those specific to each class) are allocated proportionally each day between the classes based upon the relative net assets of each class.
9 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.
10 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.
11 Expense offset arrangement: The Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended June 30, 2011, there was no reduction of expenses under this agreement.
12 Other: All net investment income and realized and unrealized capital gains and losses of the Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.
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 and are also offered directly to certain qualified pension and retirement plans.
The Fund retains 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, 0.425% of the next $2.5 billion, and 0.40% of average daily net assets in excess of $4 billion.
The Fund retains Management as its administrator under an Administration Agreement. Each class pays Management an administration fee at the annual rate of 0.30% of its average daily net assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under this agreement.
The Board adopted a non-fee distribution plan for the Fund's Class I.
For the Fund's Class S, Management acts as agent in arranging for the sale of class shares without commission and bears advertising and promotion expenses. The Board has adopted a distribution plan (the "Plan") with respect to this class, pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that, as compensation for administrative
16
and other services provided to this class, Management's activities and expenses related to the sale and distribution of this class of shares, and ongoing services provided to investors in this class, Management receives from this class a fee at the annual rate of 0.25% of Class S's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for this class and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by this class during any year could have been more or less than the cost of distribution and other services provided to this class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plan complies with those rules.
Management has contractually undertaken to forgo current payment of fees and/or reimburse the Fund's Class I and Class S shares for their operating expenses (excluding fees payable to Management (including fees payable to Management with respect to the Fund's Class S shares), interest, taxes, brokerage commissions, extraordinary expenses, and transaction costs)("Operating Expenses") which exceed the expense limitation as detailed in the following table:
| | | Expense Limitation(1) | | Expiration | | Reimbursement from Management for the Six Months Ended June 30, 2011 | |
| Class I | | | 1.00 | % | | 12/31/14 | | $ | — | | |
| Class S | | | 1.25 | % | | 12/31/14 | | | 2,854 | | |
(1) Expense limitation per annum of the respective class' average daily net assets.
Each respective class has agreed to repay Management through December 31, 2017 for fees and expenses foregone and/or 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 or waived fees. During the six months ended June 30, 2011, there was no repayment to Management under its contractual expense limitation. At June 30, 2011, the Fund's Class I shares had no contingent liability to Management under its contractual expense limitation. At June 30, 2011, the Fund's Class S shares contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | | | |
| | | 2012 | | 2013 | | 2014 | | Total | |
| Class S | | $ | 6,114 | | | $ | 7,615 | | | $ | 2,854 | | | $ | 16,583 | | |
Neuberger Berman LLC ("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.
Management and Neuberger are indirect subsidiaries of Neuberger Berman Group LLC ("NBG," and together with its consolidated subsidiaries "NB Group"). The voting equity of NBG is owned by NBSH Acquisition, LLC ("NBSH") and Lehman Brothers Holdings Inc. ("LBHI"). NBSH, which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees and senior professionals, owns approximately 52% of the voting equity of NBG, and LBHI, which is a debtor in possession under chapter 11 of the U.S. Bankruptcy Code, owns the remaining 48% of the voting equity. LBHI's bankruptcy proceedings have had no material impact on the operations of the Fund. Management and Neuberger continue to operate in the ordinary course of business as the investment manager and sub-adviser, respectively, of the Fund.
17
Note C—Securities Transactions:
During the six months ended June 30, 2011, there were purchase and sale transactions (excluding short-term securities) of $55,735,723 and $75,084,191, respectively.
During the six months ended June 30, 2011, no brokerage commissions on securities transactions were paid to affiliated brokers.
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2011 and for the year ended December 31, 2010 was as follows:
For the Six Months Ended June 30, 2011
| | | Shares Sold | | Shares Redeemed | | Total | |
| Class I | | | 202,246 | | | | (874,950 | ) | | | (672,704 | ) | |
| Class S | | | 277,285 | | | | (232,362 | ) | | | 44,923 | | |
For the Year Ended December 31, 2010
| | | Shares Sold | | Shares Redeemed | | Total | |
| Class I | | | 645,657 | | | | (1,960,763 | ) | | | (1,315,106 | ) | |
| Class S | | | 667,353 | | | | (530,610 | ) | | | 136,743 | | |
Note E—Line of Credit:
At June 30, 2011, the Fund was a participant in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.125% per annum of the available line of credit is charged, of which each participating 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. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $200,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at June 30, 2011. During the six months ended June 30, 2011, the Fund did not utilize this line of credit.
Note F—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
18
Financial Highlights
Mid Cap Growth Portfolio
The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements.
| Class I | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 27.42 | | | $ | 21.25 | | | $ | 16.14 | | | $ | 28.50 | | | $ | 23.26 | | | $ | 20.28 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | (.09 | ) | | | (.11 | ) | | | (.03 | ) | | | (.12 | ) | | | (.05 | ) | | | (.02 | ) | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 2.74 | | | | 6.28 | | | | 5.14 | | | | (12.24 | ) | | | 5.29 | | | | 3.00 | | |
| Total From Investment Operations | | | 2.65 | | | | 6.17 | | | | 5.11 | | | | (12.36 | ) | | | 5.24 | | | | 2.98 | | |
| Net Asset Value, End of Period | | $ | 30.07 | | | $ | 27.42 | | | $ | 21.25 | | | $ | 16.14 | | | $ | 28.50 | | | $ | 23.26 | | |
Total Return†† | | | 9.66 | %** | | | 29.04 | % | | | 31.66 | % | | | (43.37 | )% | | | 22.53 | % | | | 14.69 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 271.5 | | | $ | 266.0 | | | $ | 234.1 | | | $ | 345.1 | | | $ | 819.0 | | | $ | 668.1 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.01 | %* | | | 1.02 | % | | | 1.01 | % | | | .92 | % | | | .88 | % | | | .90 | % | |
Ratio of Net Expenses to Average Net Assets | | | 1.01 | %* | | | 1.02 | % | | | 1.01 | %§ | | | .92 | %§ | | | .88 | %§ | | | .90 | %§ | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | (.60 | )%* | | | (.49 | )% | | | (.16 | )% | | | (.51 | )% | | | (.20 | )% | | | (.10 | )% | |
| Portfolio Turnover Rate | | | 17 | %** | | | 46 | % | | | 67 | % | | | 62 | % | | | 56 | % | | | 48 | % | |
See Notes to Financial Highlights
19
Financial Highlights (cont'd)
| Class S | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 26.87 | | | $ | 20.87 | | | $ | 15.89 | | | $ | 28.13 | | | $ | 23.02 | | | $ | 20.11 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | (.12 | ) | | | (.16 | ) | | | (.08 | ) | | | (.17 | ) | | | (.12 | ) | | | (.08 | ) | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 2.69 | | | | 6.16 | | | | 5.06 | | | | (12.07 | ) | | | 5.23 | | | | 2.99 | | |
| Total From Investment Operations | | | 2.57 | | | | 6.00 | | | | 4.98 | | | | (12.24 | ) | | | 5.11 | | | | 2.91 | | |
| Net Asset Value, End of Period | | $ | 29.44 | | | $ | 26.87 | | | $ | 20.87 | | | $ | 15.89 | | | $ | 28.13 | | | $ | 23.02 | | |
Total Return†† | | | 9.56 | %** | | | 28.75 | % | | | 31.34 | % | | | (43.51 | )% | | | 22.20 | % | | | 14.47 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 66.2 | | | $ | 59.2 | | | $ | 43.2 | | | $ | 38.7 | | | $ | 68.9 | | | $ | 35.6 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.25 | %* | | | 1.25 | % | | | 1.25 | % | | | 1.18 | % | | | 1.14 | % | | | 1.15 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.25 | %* | | | 1.25 | % | | | 1.25 | % | | | 1.17 | % | | | 1.13 | % | | | 1.15 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | (.84 | )%* | | | (.73 | )% | | | (.44 | )% | | | (.77 | )% | | | (.47 | )% | | | (.36 | )% | |
| Portfolio Turnover Rate | | | 17 | %** | | | 46 | % | | | 67 | % | | | 62 | % | | | 56 | % | | | 48 | % | |
See Notes to Financial Highlights
20
Notes to Financial Highlights Mid Cap Growth Portfolio
(Unaudited)
†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period and assumes income dividends and other distributions, if any, were reinvested. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. 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 and/or waived 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.
# The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.
‡ Calculated based on the average number of shares outstanding during each fiscal period.
§ After reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been:
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| Mid Cap Growth Portfolio Class I | | | — | | | | — | | | | 1.01 | % | | | .92 | % | | | .88 | % | | | .90 | % | |
| Mid Cap Growth Portfolio Class S | | | 1.26 | % | | | 1.27 | % | | | 1.27 | % | | | 1.17 | % | | | 1.13 | % | | | 1.15 | % | |
* Annualized.
** Not annualized.
21
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 1-800-877-9700 (toll-free) and on the website of the Securities and Exchange Commission, at www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available, without charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings for the Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll free).
22
Neuberger Berman
Advisers Management Trust
Partners Portfolio
I Class Shares
Semi-Annual Report
June 30, 2011
B0737 08/11
Partners Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Partners Portfolio Class I provided a 3.99% return for the six months ended June 30, 2011, lagging its benchmarks, the Russell 1000® Value Index and the S&P 500 Index, which returned 5.92% and 6.02%, respectively, for the period.
The equity markets' generally positive results obscure the significant volatility they incurred during the reporting period. After a sharp sell-off in March, followed by an equally sharp recovery in April, stocks declined again through early June due, in our opinion, to political and economic concerns regarding the Greek financial crisis and possible impacts on other European economies, signs of a flagging U.S. economic recovery, slowing conditions in China, and spreading Middle East unrest and a related spike in crude oil prices. A late June rally triggered in part by the Greek government's approval of an EU austerity program and retreating oil prices helped stocks regain most of the lost ground.
Driven in part by the strong returns from managed care companies such as WellPoint and Aetna, the Portfolio's Health Care sector investments had the most positive impact on performance relative to the S&P 500. In our view, managed care earnings will likely continue to benefit from low health care utilization due to the slow economic recovery. Another positive contributor within Health Care was Shire, which benefited from upward earnings revisions due to strength in both its core ADHD franchise and newer biotech products. Industrials sector holdings also excelled, with Owens Corning, Boeing, and ABB posting gains. Owens Corning's roofing division continued to do well due to less competition and higher margins in this business segment. The company's composites business benefited from strong international demand. ABB, an automation and power technologies company serving utilities and other industrial customers, was helped by the global recovery in industrial spending. Utilities also posted strong relative returns as investors favored yield-oriented, defensive sectors.
Consumer Discretionary sector investments had the most negative impact on relative returns versus the S&P 500. Disappointments included retailer Aeropostale, which failed to anticipate a shift in fashion and was forced to discount excess inventories; General Motors, whose truck and SUV business slowed due to higher gasoline prices; and appliance manufacturer Whirlpool, whose business continued to be negatively impacted by the weak housing market. Information Technology sector investments also lagged benchmark counterparts. Lender Processing Services, which provides technology and services for banks' mortgage operations, posted an earnings disappointment due at first to uncertainty regarding housing foreclosures and then due to the continued extended shut down of the foreclosure process. Research in Motion was hurt by intensified competition for its BlackBerry smart phone and this position was eliminated. Materials sector holdings also underperformed with diversified materials companies Teck Resources, Freeport-McMoRan Copper & Gold, and U.S. Steel posting declines. Teck Resources slid on fears of reduced demand for metallurgical coal from China. Freeport-McMoRan was affected by lower copper prices and U.S. Steel by softer steel prices.
We did not make significant changes to the Portfolio's sector allocation during the reporting period. The Portfolio's largest overweights relative to the S&P 500 are in Financials and Energy. Its substantial relative underweights are in Consumer Staples and Information Technology. In all sectors, our primary focus remains on identifying individual stocks in sectors that are trading at compelling valuations based on normalized, as opposed to more near-term, earnings.
Looking ahead, there are a number of factors that we believe could negatively impact the stock market. Recent economic data has been somewhat mixed, reflecting a number of cross-currents. U.S. unemployment claims have remained elevated, the housing industry continues to be weak, and consumer sentiment has been marred by higher gas and food prices. A series of interest rate hikes in China aimed at cooling inflation have slowed economic growth there and affected a range of commodity prices. Meanwhile, last year's concerns over European debt have reemerged.
1
We believe there are also reasons to be optimistic. U.S. manufacturing data remain relatively strong, corporate profits are healthy, balance sheets continue to improve, bank lending is slowly recovering, and, in our opinion, interest rates are likely to remain low for the foreseeable future. We also believe that recent economic headwinds could ultimately prove relatively temporary. In our view, these factors, coupled with reasonable valuations, seem to suggest the potential for continued upside for the broad equity indices.
Sincerely,
S. Basu Mullick
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in mid- to large-cap stocks are set forth in the prospectus and statement of additional information.
Mid-capitalization stocks are more vulnerable to financial risks and other risks than larger stocks. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile. Large-cap stocks are subject to all the risks of stock market investing, including the risk that they may lose value due to overall market or economic conditions.
The composition, industries and holdings of the Portfolio are subject to change. The AMT Partners Portfolio is invested in a wide array of stocks and no single holding makes up a significant portion of the Portfolio's total assets.
2
Partners Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 11.4 | % | |
| Consumer Staples | | | 4.6 | | |
| Energy | | | 15.1 | | |
| Financials | | | 23.0 | | |
| Health Care | | | 13.0 | | |
| Industrials | | | 12.7 | | |
| Information Technology | | | 8.0 | | |
| Materials | | | 3.3 | | |
| Telecommunication Services | | | 2.6 | | |
| Utilities | | | 2.8 | | |
| Short-Term Investments | | | 3.5 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS1
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2011 | |
| | | Date | | 06/30/2011 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund* | |
Partners Portolio Class I | | 03/22/1994 | | | 3.99 | % | | | 32.14 | % | | | 1.71 | % | | | 4.44 | % | | | 8.22 | % | |
Russell 1000© Value Index2 | | | | | | | 5.92 | % | | | 28.94 | % | | | 1.15 | % | | | 3.99 | % | | | 8.76 | % | |
S&P 500 Index2 | | | | | | | 6.02 | % | | | 30.69 | % | | | 2.94 | % | | | 2.72 | % | | | 8.20 | % | |
Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit https://www.nb.com.
* Index returns are as of inception date 03/22/1994.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2010 was 1.11% for Class I shares (prior to any fee waivers and/or expense reimbursements). Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Portfolio through 12/31/2014 for Class I shares.
3
Endnotes
1 "Total Return" includes reinvestment of all income dividends and distributions. Results represent past performance and do not indicate future results. The value of an investment in the Portfolio and the return on the investment both will fluctuate, and redemption proceeds may be higher or lower than an investor's original cost. The performance information does not reflect fees and expenses of the variable annuity and variable life insurance policies or the qualified pension and retirement plans whose proceeds are invested in the Portfolio. Neuberger Berman Management LLC ("NBM LLC") has agreed to absorb certain expenses of the AMT Portfolios, including the Portfolio. Without this arrangement, which is subject to change, the total returns of the Portfolio may have been less.
2 The Russell 1000® Value Index measures the performance of those Russell 1000® companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000® Index (which measures the performance of the 3,000 largest U.S. companies based on total market capitalization). The Russell 1000 Index represents approximately 92% of the total market capitalization of the Russell 3000 Index. The S&P 500 Index is widely regarded as the standard for measuring large-cap U.S. stock market performance and includes a representative sample of the leading companies in leading industries. 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 NBM LLC and include reinvestment of all income dividends and distributions. The Portfolio may invest in securities not included in the above-described indices and may not invest in all securities included in the above-described indices.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not NBM LLC's own projections, and they may or may not be realized. In addition, any revision to a forecast could affect the market price of a security. By quoting them herein, NBM LLC does not offer an opinion as to the accuracy of and does not guarantee these forecasted numbers.
The investments for the Portfolio are managed by the same portfolio manager(s) who manage(s) 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.
The composition, industries and holdings of the Portfolio are subject to change.
Shares of the separate AMT Portfolios are not available to the general public. Shares of this Portfolio 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.
Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the AMT Portfolios. This report is prepared for the general information of shareholders and is not an offer of shares of the AMT Portfolios. Shares of the AMT Portfolios are sold only through the currently effective prospectuses, which must precede or accompany this report.
The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2011 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses
This table is designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2011 and held for the entire period. The table illustrates the fund's costs in two ways:
| Actual Expenses and Performance: | | The first section of the table provides information about actual account values and actual expenses in dollars, based on the fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period. | |
| |
Hypothetical Example for Comparison Purposes: | | The second section of the table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. | |
| |
Please note that the expenses in the table are meant to highlight your ongoing costs only. The table and expense example do not include any transaction costs, such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan. Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Expense Information as of 6/30/11 (Unaudited)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST PARTNERS PORTFOLIO
| Actual | | Beginning Account Value 1/1/11 | | Ending Account Value 6/30/11 | | Expenses Paid During the Period* 1/1/11 – 6/30/11 | |
| Class I | | $ | 1,000.00 | | | $ | 1,039.90 | | | $ | 5.61 | | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,019.29 | | | $ | 5.56 | | |
* Expenses are equal to the annualized expense ratio of 1.11%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent half year divided by 365.
5
Schedule of Investments Partners Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (96.3%) | | | |
| Aerospace & Defense (3.5%) | | | |
| | 28,700 | | | Boeing Co. | | $ | 2,121,791 | | |
| | 52,800 | | | Textron Inc. | | | 1,246,608 | | |
| | | | 3,368,399 | | |
| Air Freight & Logistics (1.0%) | | | |
| | 10,600 | | | FedEx Corp. | | | 1,005,410 | | |
| Auto Components (1.3%) | | | |
| | 24,300 | | | Lear Corp. | | | 1,299,564 | | |
| Automobiles (0.8%) | | | |
| | 25,200 | | | General Motors | | | 765,072 | * | |
| Beverages (1.1%) | | | |
| | 16,300 | | | Coca-Cola | | | 1,096,827 | | |
| Biotechnology (0.9%) | | | |
| | 15,400 | | | Amgen Inc. | | | 898,590 | * | |
| Building Products (2.5%) | | | |
| | 47,100 | | | Masco Corp. | | | 566,613 | | |
| | 49,000 | | | Owens Corning | | | 1,830,150 | * | |
| | | | 2,396,763 | | |
| Capital Markets (4.3%) | | | |
| | 10,200 | | | Goldman Sachs Group | | | 1,357,518 | | |
| | 72,200 | | | Invesco Ltd. | | | 1,689,480 | | |
| | 26,200 | | | State Street | | | 1,181,358 | | |
| | | | 4,228,356 | | |
| Commercial Banks (4.5%) | | | |
| | 94,500 | | | Fifth Third Bancorp | | | 1,204,875 | | |
| | 36,800 | | | SunTrust Banks | | | 949,440 | | |
| | 78,500 | | | Wells Fargo | | | 2,202,710 | | |
| | | | 4,357,025 | | |
| Computers & Peripherals (1.5%) | | | |
| | 38,900 | | | Hewlett-Packard | | | 1,415,960 | | |
| Construction & Engineering (0.8%) | | | |
| | 21,000 | | | Chicago Bridge & Iron | | | 816,900 | | |
| Consumer Finance (2.5%) | | | |
| | 34,500 | | | American Express | | | 1,783,650 | | |
| | 12,500 | | | Capital One Financial | | | 645,875 | | |
| | | | 2,429,525 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Diversified Financial Services (8.3%) | | | |
| | 185,600 | | | Bank of America | | $ | 2,034,176 | | |
| | 34,372 | | | Citigroup Inc. | | | 1,431,250 | | |
| | 48,500 | | | J.P. Morgan Chase | | | 1,985,590 | | |
| | 68,100 | | | Moody's Corp. | | | 2,611,635 | | |
| | | | 8,062,651 | | |
Diversified Telecommunication Services (2.5%) | | | |
| | 54,600 | | | Koninklijke KPN NV ADR | | | 799,344 | | |
| | 68,400 | | | Telefonica SA ADR | | | 1,675,116 | | |
| | | | 2,474,460 | | |
| Electric Utilities (0.5%) | | | |
| | 33,300 | | | NV Energy | | | 511,155 | | |
| Electrical Equipment (1.6%) | | | |
| | 60,300 | | | ABB Ltd. ADR | | | 1,564,785 | * | |
Electronic Equipment, Instruments & Components (0.9%) | | | |
| | 26,400 | | | Avnet, Inc. | | | 841,632 | * | |
| Energy Equipment & Services (5.4%) | | | |
| | 30,400 | | | Halliburton Co. | | | 1,550,400 | | |
| | 47,800 | | | McDermott International | | | 946,918 | * | |
| | 24,300 | | | National Oilwell Varco | | | 1,900,503 | | |
| | 46,100 | | | Weatherford International | | | 864,375 | * | |
| | | | 5,262,196 | | |
| Food & Staples Retailing (1.2%) | | | |
| | 29,900 | | | CVS Caremark | | | 1,123,642 | | |
| Health Care Equipment & Supplies (3.3%) | | | |
| | 30,300 | | | Covidien PLC | | | 1,612,869 | | |
| | 25,800 | | | Zimmer Holdings | | | 1,630,560 | * | |
| | | | 3,243,429 | | |
| Health Care Providers & Services (5.1%) | | | |
| | 32,800 | | | Aetna Inc. | | | 1,446,152 | | |
| | 31,500 | | | Medco Health Solutions | | | 1,780,380 | * | |
| | 22,400 | | | WellPoint Inc. | | | 1,764,448 | | |
| | | | 4,990,980 | | |
| Household Durables (2.0%) | | | |
| | 1,350 | | | NVR, Inc. | | | 979,398 | * | |
| | 12,500 | | | Whirlpool Corp. | | | 1,016,500 | | |
| | | | 1,995,898 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| Household Products (1.0%) | | | |
| | 13,400 | | | Energizer Holdings | | $ | 969,624 | * | |
| Insurance (3.4%) | | | |
| | 27,600 | | | Berkshire Hathaway Class B | | | 2,135,964 | * | |
| | 26,800 | | | MetLife, Inc. | | | 1,175,716 | | |
| | | | 3,311,680 | | |
| IT Services (2.6%) | | | |
| | 69,500 | | | Lender Processing Services | | | 1,453,245 | | |
| | 13,000 | | | Visa Inc. Class A | | | 1,095,380 | | |
| | | | 2,548,625 | | |
| Machinery (3.2%) | | | |
| | 2,700 | | | Bucyrus International | | | 247,482 | | |
| | 10,100 | | | Deere & Co. | | | 832,745 | | |
| | 24,600 | | | Ingersoll-Rand PLC | | | 1,117,086 | | |
| | 31,000 | | | Terex Corp. | | | 881,950 | * | |
| | | | 3,079,263 | | |
| Media (1.4%) | | | |
| | 31,600 | | | McGraw-Hill Cos. | | | 1,324,356 | | |
| Metals & Mining (3.3%) | | | |
| | 6,100 | | | Cliffs Natural Resources | | | 563,945 | | |
| | 9,800 | | | Freeport-McMoRan Copper & Gold | | | 518,420 | | |
| | 17,100 | | | Teck Resources Class B | | | 867,654 | | |
| | 6,600 | | | United States Steel | | | 303,864 | | |
| | 2,600 | | | Walter Energy | | | 301,080 | | |
| | 30,400 | | | Xstrata PLC | | | 669,162 | | |
| | | | 3,224,125 | | |
| Multi-Utilities (2.3%) | | | |
| | 49,500 | | | CenterPoint Energy | | | 957,825 | | |
| | 11,600 | | | National Grid ADR | | | 573,388 | | |
| | 15,900 | | | PG&E Corp. | | | 668,277 | | |
| | | | 2,199,490 | | |
| Multiline Retail (2.7%) | | | |
| | 34,200 | | | J.C. Penney | | | 1,181,268 | | |
| | 48,500 | | | Macy's, Inc. | | | 1,418,140 | | |
| | | | 2,599,408 | | |
| Oil, Gas & Consumable Fuels (9.7%) | | | |
| | 10,200 | | | Apache Corp. | | | 1,258,578 | | |
| | 40,700 | | | Canadian Natural Resources | | | 1,703,702 | | |
| | 47,900 | | | Cenovus Energy | | | 1,803,914 | | |
| | 36,400 | | | El Paso Corp. | | | 735,280 | | |
| | 16,700 | | | EOG Resources | | | 1,745,985 | | |
| | 8,300 | | | Kinder Morgan | | | 238,459 | | |
| | 36,200 | | | Petroleo Brasileiro ADR | | | 1,225,732 | | |
| | 16,000 | | | Southwestern Energy | | | 686,080 | * | |
| | | | 9,397,730 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Personal Products (1.3%) | | | |
| | 45,400 | | | Avon Products | | $ | 1,271,200 | | |
| Pharmaceuticals (3.5%) | | | |
| | 50,100 | | | Pfizer Inc. | | | 1,032,060 | | |
| | 25,700 | | | Shire PLC ADR | | | 2,421,197 | | |
| | | | 3,453,257 | | |
Semiconductors & Semiconductor Equipment (1.7%) | | | |
| | 35,700 | | | Intel Corp. | | | 791,112 | | |
| | 33,300 | | | NXP Semiconductors | | | 890,109 | * | |
| | | | 1,681,221 | | |
| Software (1.5%) | | | |
| | 12,400 | | | Check Point Software Technologies | | | 704,940 | * | |
| | 21,500 | | | Oracle Corp. | | | 707,565 | | |
| | | | 1,412,505 | | |
| Specialty Retail (3.2%) | | | |
| | 39,900 | | | Aeropostale, Inc. | | | 698,250 | * | |
| | 39,400 | | | Best Buy | | | 1,237,554 | | |
| | 50,800 | | | Lowe's Cos. | | | 1,184,148 | | |
| | | | 3,119,952 | | |
| | | | | Total Common Stocks (Cost $67,733,555) | | | 93,741,655 | | |
| Short-Term Investments (3.5%) | | | |
| | 3,403,406 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $3,403,406) | | | 3,403,406 | | |
| | | | | Total Investments (99.8%) (Cost $71,136,961) | | | 97,145,061 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (0.2%) | | | 226,526 | | |
| | | | | Total Net Assets (100.0%) | | $ | 97,371,587 | | |
See Notes to Schedule of Investments
7
Notes to Schedule of Investments Partners Portfolio
(Unaudited)
† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Advisers Management Trust Partners Portfolio (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.
ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in equity securities, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted in active markets (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by the Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in State Street Institutional Liquid Reserves Fund Institutional Class are valued using the fund's daily calculated net asset value per share.
If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Advisers Management Trust's Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding.
The value of the Fund's investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time. The Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in
See Notes to Financial Statements
8
Notes to Schedule of Investments Partners Portfolio
(Unaudited) (cont'd)
determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities. In this event, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.
The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of June 30, 2011:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 93,741,655 | | | $ | — | | | $ | — | | | $ | 93,741,655 | | |
| Short-Term Investments | | | — | | | | 3,403,406 | | | | — | | | | 3,403,406 | | |
| Total Investments | | $ | 93,741,655 | | | $ | 3,403,406 | | | $ | — | | | $ | 97,145,061 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no significant transfers between Levels 1 and 2 during the six months ended June 30, 2011.
## At June 30, 2011, the cost of investments for U.S. federal income tax purposes was $71,900,914. Gross unrealized appreciation of investments was $26,325,008 and gross unrealized depreciation of investments was $1,080,861, resulting in net unrealized appreciation of $25,244,147, based on cost for U.S. federal income tax purposes.
* Security did not produce income during the last twelve months.
See Notes to Financial Statements
9
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | PARTNERS PORTFOLIO | |
| | | June 30, 2011 | |
| Assets | |
| Investments in securities, at value * (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 97,145,061 | | |
| Cash | | | 8,171 | | |
| Foreign currency | | | 39,904 | | |
| Dividends and interest receivable | | | 91,655 | | |
| Receivable for securities sold | | | 519,177 | | |
| Receivable for Fund shares sold | | | 24,066 | | |
| Prepaid expenses and other assets | | | 15,999 | | |
| Total Assets | | | 97,844,033 | | |
| Liabilities | |
| Payable for securities purchased | | | 327,462 | | |
| Payable for Fund shares redeemed | | | 17,008 | | |
| Payable to investment manager (Note B) | | | 42,763 | | |
| Payable to administrator (Note B) | | | 23,325 | | |
| Accrued expenses and other payables | | | 61,888 | | |
| Total Liabilities | | | 472,446 | | |
| Net Assets at value | | $ | 97,371,587 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 102,583,719 | | |
| Undistributed net investment income (loss) | | | 114,838 | | |
| Accumulated net realized gains (losses) on investments | | | (31,344,938 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 26,017,968 | | |
| Net Assets at value | | $ | 97,371,587 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 8,310,796 | | |
| Net Asset Value, offering and redemption price per share | | $ | 11.72 | | |
| *Cost of Investments: | |
| Unaffiliated issuers | | $ | 71,136,961 | | |
| Total cost of foreign currency | | $ | 30,101 | | |
See Notes to Financial Statements
10
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | PARTNERS PORTFOLIO | |
| | | For the Six Months Ended June 30, 2011 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 678,934 | | |
| Interest income—unaffiliated issuers | | | 2,692 | | |
| Foreign taxes withheld | | | (20,532 | ) | |
| Total income | | $ | 661,094 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 271,037 | | |
| Administration fees (Note B) | | | 147,838 | | |
| Audit fees | | | 20,810 | | |
| Custodian fees (Note A) | | | 22,653 | | |
| Insurance expense | | | 2,848 | | |
| Legal fees | | | 26,901 | | |
| Shareholder reports | | | 23,179 | | |
| Trustees' fees and expenses | | | 27,273 | | |
| Miscellaneous | | | 3,129 | | |
| Total expenses | | | 545,668 | | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (2 | ) | |
| Total net expenses | | | 545,666 | | |
| Net investment income (loss) | | $ | 115,428 | | |
| Realized and Unrealized Gain (Loss) on Investments (Note A) | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 8,373,427 | | |
| Foreign currency | | | 727 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | (4,558,273 | ) | |
| Foreign currency | | | 3,981 | | |
| Net gain (loss) on investments | | | 3,819,862 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 3,935,290 | | |
See Notes to Financial Statements
11
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | PARTNERS PORTFOLIO | |
| | | Six Months Ended June 30, 2011 (Unaudited) | | Year Ended December 31, 2010 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | 115,428 | | | $ | (17,786 | ) | |
| Net realized gain (loss) on investments | | | 8,374,154 | | | | 13,223,401 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | (4,554,292 | ) | | | 21,972 | | |
| Net increase (decrease) in net assets resulting from operations | | | 3,935,290 | | | | 13,227,587 | | |
| Distributions to Shareholders From (Note A): | |
| Net investment income | | | — | | | | (618,077 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold | | | 9,573,719 | | | | 16,087,325 | | |
| Proceeds from reinvestment of dividends and distributions | | | — | | | | 618,077 | | |
| Payments for shares redeemed | | | (13,293,166 | ) | | | (28,906,444 | ) | |
| Net increase (decrease) from Fund share transactions | | | (3,719,447 | ) | | | (12,201,042 | ) | |
| Net Increase (Decrease) in Net Assets | | | 215,843 | | | | 408,468 | | |
| Net Assets: | |
| Beginning of period | | | 97,155,744 | | | | 96,747,276 | | |
| End of period | | $ | 97,371,587 | | | $ | 97,155,744 | | |
| Undistributed net investment income (loss) at end of period | | $ | 114,838 | | | $ | — | | |
| Distributions in excess of net investment income at end of period | | $ | — | | | $ | (590 | ) | |
See Notes to Financial Statements
12
Notes to Financial Statements Partners Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: The Fund is a separate operating series of Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware statutory trust organized pursuant to a Trust Instrument dated May 23, 1994. The Trust is currently comprised of ten separate operating series (each individually a "Series," and collectively the "Funds") each of which is diversified. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended. The Fund currently offers only Class I shares. The Board may establish additional series or classes of shares without the approval of shareholders.
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.
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time, 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. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. 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, if any, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations. Included in net realized gain (loss) on investments are proceeds from the settlements of class action litigation in which the Fund participated as a class member. The amount of such proceeds for the six months ended June 30, 2011 was $45,899.
5 Income tax information: 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 requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. To the extent the Fund distributes substantially all of its earnings to shareholders, no federal income or excise tax provision is required.
The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2007 - 2009. As of June 30, 2011, the Fund did not have any unrecognized tax positions.
13
Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund as a whole. The Fund may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2010, permanent differences resulting primarily from different book and tax accounting for net operating losses, foreign currency gains and losses, return of capital adjustments and distributions in excess of current earnings were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund.
The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 was as follows:
| | | Distributions Paid From: | | | |
| Ordinary Income | | Long-Term Capital Gain | | Total | |
| 2010 | | 2009 | | 2010 | | 2009 | | 2010 | | 2009 | |
| $ | 618,077 | | | $ | 2,064,013 | | | $ | — | | | $ | 9,167,082 | | | $ | 618,077 | | | $ | 11,231,095 | | |
As of December 31, 2010, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed Ordinary Income | | Undistributed Long-Term Gain | | Unrealized Appreciation (Depreciation) | | Loss Carryforwards and Deferrals | | Total | |
| $ | — | | | $ | — | | | $ | 29,828,723 | | | $ | (38,976,145 | ) | | $ | (9,147,422 | ) | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales, return of capital adjustment, post October loss deferrals and capital loss carryforwards.
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. Under current tax law, the use of these losses to offset future gains may be limited. As determined at December 31, 2010, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| | | Expiring in: | |
| | | 2017 | |
| | | $ | 38,975,555 | | |
During the year ended December 31, 2010, the Fund utilized capital loss carryforwards of $11,430,911.
On December 22, 2010, the Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") was enacted. The Act modernizes several of the federal income and excise tax provisions related to RICs, and, with certain exceptions, is effective for taxable years beginning after December 22, 2010. Among the changes made are changes to the capital loss carryforward rules allowing for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character. Capital loss carryforwards generated in taxable years beginning after effective date of the Act must be fully used before capital loss carryforwards generated in taxable years prior to effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.
Under current tax law, certain net capital and net foreign currency losses realized after October 31 within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the year ended
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December 31, 2010, the Fund elected to defer $590 of net foreign currency losses arising between November 1, 2010 and December 31, 2010.
6 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in October). Income distributions and capital gain distributions to shareholders are recorded on the ex-date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Series are charged to that Series. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., the Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly.
9 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.
10 Derivative instruments: The Fund has adopted the provisions of ASC 815 "Derivatives and Hedging" ("ASC 815"). The disclosure requirements of ASC 815 distinguish between derivatives that qualify for hedge accounting and those that do not. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of Operations, they do not qualify for hedge accounting. Accordingly, even though the Fund's investments in derivatives may represent economic hedges, they are considered non-hedge transactions for purposes of this disclosure.
Premiums paid by the Fund upon purchasing a covered call option is recorded in the asset section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the asset is eliminated. For purchased call options, the Fund's loss is limited to the amount of the option premium paid.
Management has concluded that the Fund did not hold any derivative instruments during the six months ended June 30, 2011 that require additional disclosures pursuant to ASC 815.
11 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.
12 Expense offset arrangement: The Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended June 30, 2011, the impact of this arrangement was a reduction of expenses of $2.
15
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 and are also offered directly to certain qualified pension and retirement plans.
The Fund retains 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, 0.425% of the next $2.5 billion, and 0.40% of average daily net assets in excess of $4 billion.
The Fund retains Management as its administrator under an Administration Agreement. The Fund pays Management an administration fee at the annual rate of 0.30% of its average daily net assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under this agreement.
The Board adopted a non-fee distribution plan for the Fund.
Management has contractually undertaken through December 31, 2014 to forgo current payment of fees and/or reimburse the Fund for its operating expenses (excluding fees payable to Management, 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, 2011, no reimbursement to the Fund was required. The Fund has agreed to repay Management through December 31, 2017 for fees and expenses foregone and/or 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 or waived fees. During the six months ended June 30, 2011, there was no repayment to Management under its contractual expense limitation. At June 30, 2011, the Fund had no contingent liability to Management under its contractual expense limitation.
Neuberger Berman LLC ("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.
Management and Neuberger are indirect subsidiaries of Neuberger Berman Group LLC ("NBG," and together with its consolidated subsidiaries "NB Group"). The voting equity of NBG is owned by NBSH Acquisition, LLC ("NBSH") and Lehman Brothers Holdings Inc. ("LBHI"). NBSH, which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees and senior professionals, owns approximately 52% of the voting equity of NBG, and LBHI, which is a debtor in possession under chapter 11 of the U.S. Bankruptcy Code, owns the remaining 48% of the voting equity. LBHI's bankruptcy proceedings have had no material impact on the operations of the Fund. Management and Neuberger continue to operate in the ordinary course of business as the investment manager and sub-adviser, respectively, of the Fund.
Note C—Securities Transactions:
During the six months ended June 30, 2011, there were purchase and sale transactions (excluding short-term securities) of $19,824,697 and $25,009,824, respectively.
During the six months ended June 30, 2011, no brokerage commissions on securities transactions were paid to affiliated brokers.
16
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2011 and for the year ended December 31, 2010 was as follows:
| | | For the Six Months Ended June 30, 2011 | | For the Year Ended December 31, 2010 | |
| Shares Sold | | | 818,932 | | | | 1,574,233 | | |
| Shares Issued on Reinvestment of Dividends and Distributions | | | — | | | | 60,008 | | |
| Shares Redeemed | | | (1,128,640 | ) | | | (2,869,528 | ) | |
| Total | | | (309,708 | ) | | | (1,235,287 | ) | |
Note E—Line of Credit:
At June 30, 2011, the Fund was a participant in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.125% per annum of the available line of credit is charged, of which each participating 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. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $200,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at June 30, 2011. During the six months ended June 30, 2011, the Fund did not utilize this line of credit.
Note F—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
17
Financial Highlights
Partners Portfolio
The following table includes selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements.
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 11.27 | | | $ | 9.82 | | | $ | 7.11 | | | $ | 20.76 | | | $ | 21.16 | | | $ | 21.41 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .01 | | | | (.00 | ) | | | .03 | | | | .08 | | | | .07 | | | | .12 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .44 | | | | 1.52 | | | | 3.98 | | | | (10.78 | ) | | | 1.95 | | | | 2.33 | | |
| Total From Investment Operations | | | .45 | | | | 1.52 | | | | 4.01 | | | | (10.70 | ) | | | 2.02 | | | | 2.45 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.07 | ) | | | (.24 | ) | | | (.09 | ) | | | (.15 | ) | | | (.16 | ) | |
| Net Capital Gains | | | — | | | | — | | | | (1.06 | ) | | | (2.86 | ) | | | (2.27 | ) | | | (2.54 | ) | |
| Total Distributions | | | — | | | | (.07 | ) | | | (1.30 | ) | | | (2.95 | ) | | | (2.42 | ) | | | (2.70 | ) | |
| Net Asset Value, End of Period | | $ | 11.72 | | | $ | 11.27 | | | $ | 9.82 | | | $ | 7.11 | | | $ | 20.76 | | | $ | 21.16 | | |
Total Return†† | | | 3.99 | %** | | | 15.55 | % | | | 56.23 | % | | | (52.37 | )% | | | 9.28 | % | | | 12.24 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 97.4 | | | $ | 97.2 | | | $ | 96.7 | | | $ | 217.9 | | | $ | 526.7 | | | $ | 631.2 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.11 | %* | | | 1.11 | % | | | 1.05 | % | | | .95 | % | | | .91 | % | | | .91 | % | |
Ratio of Net Expenses to Average Net Assets | | | 1.11 | %* | | | 1.11 | % | | | 1.05 | %§ | | | .94 | %§ | | | .90 | %§ | | | .91 | %§ | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .23 | %* | | | (.02 | )% | | | .34 | % | | | .53 | % | | | .33 | % | | | .57 | % | |
| Portfolio Turnover Rate | | | 21 | %** | | | 43 | % | | | 41 | % | | | 38 | % | | | 43 | % | | | 36 | % | |
See Notes to Financial Highlights
18
Notes to Financial Highlights Partners Portfolio (Unaudited)
†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period and assumes income dividends and other distributions, if any, were reinvested. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. 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 waived 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.
# The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.
‡ Calculated based on the average number of shares outstanding during each fiscal period.
§ After utilization of the Line of Credit (2007) and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such action, and the Fund had not utilized the Line of Credit the annualized ratios of net expenses to average daily net assets would have been:
| | | Year Ended December 31, | |
| 2009 | | 2008 | | 2007 | | 2006 | | | |
| | 1.06 | % | | | .94 | % | | | .90 | % | | | .91 | % | | | |
* Annualized.
** Not annualized.
19
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 1-800-877-9700 (toll-free) and on the website of the Securities and Exchange Commission, at www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available, without charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings for the Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll-free).
20
Neuberger Berman
Advisers Management Trust
Regency Portfolio
I Class Shares
S Class Shares
Semi-Annual Report
June 30, 2011
C0244 08/11
Regency Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Regency Portfolio Class I provided a 5.86% return for the six months ended June 30, 2011, lagging its benchmark, the Russell Midcap® Value Index, which returned 6.69% for the period. Returns for the Portfolio's Class I and Class S shares are provided on page three.
The equity markets' generally positive results obscure the significant volatility they incurred during the reporting period. After a sharp sell-off in March, followed by an equally sharp recovery in April, stocks declined again into early June due, in our opinion, to political and economic concerns regarding the Greek financial crisis and possible impacts on other European economies, signs of a flagging U.S. economic recovery, slowing conditions in China, spreading Middle East unrest as well as a related spike in crude oil prices. A late June rally, triggered in part by the Greek government's approval of an EU austerity program and retreating oil prices, helped stocks regain most of the lost ground.
Driven in part by the strong returns from managed care companies such as Coventry and CIGNA, the Portfolio's Health Care sector investments had the most positive impact on performance relative to the benchmark. In our view, managed care earnings will likely continue to benefit from low health care utilization due to the slow economic recovery. Another positive contributor within Health Care was Shire, which benefited from upward earnings revisions due to strength in both its core ADHD franchise and newer biotech products. Drug distributor AmerisourceBergen, another strong contributor, is perceived to be a major beneficiary of the coming wave of branded drugs coming off patents. Industrials benefited from strength in Owens Corning on healthy roofing and composites results, and from gains for Chicago Bridge & Iron on expectations of strong orders. Utilities have been beneficiaries of low interest rates and investors' migration into more defensive sectors. In our view, this is largely responsible for the strong relative returns from Utilities sector holdings such as CenterPoint Energy.
Information Technology sector investments had the most negative impact on relative performance. Lender Processing Services, which provides technology and services for banks' mortgage operations, did particularly poorly as earnings disappointed due at first to uncertainty regarding housing foreclosures and then due to a continued shutdown of the foreclosure process. Lam Research, a supplier of equipment and services to the semiconductor industry, retreated as a result of disappointing earnings guidance. Avnet, a distributor of electronic and technology products, lagged on concerns of softening order trends. The Portfolio's overweight in the Energy sector, among the worst performing sectors during the period, also penalized relative returns. Holdings in Newfield Exploration and Ship Finance International were the biggest negative contributors. The Portfolio remains overweighted in Energy because we believe tightening demand/supply conditions will continue to support high crude oil prices, which should benefit energy companies' earnings and cash flow. A weak fourth quarter 2010 earnings report and the lowering of guidance for 2011 hurt Energizer Holdings, a Consumer Staples holding.
During the reporting period, we did not make significant changes to the Portfolio's sector allocations. Its principle relative overweights are in Energy, Health Care and Consumer Discretionary. Its most substantial relative underweights are in Financials, Utilities and Consumer Staples. In all sectors, our primary focus remains on identifying individual stocks that are trading at compelling discounts to normalized, as opposed to more near-term, earnings.
Looking ahead, there are a number of factors that we think could negatively impact the stock market. Recent economic data have been somewhat mixed, reflecting a number of cross-currents. U.S. unemployment claims have remained elevated, the housing industry continues to be weak, and consumer sentiment has been marred by higher gas and food prices. A series of interest rate hikes in China aimed at cooling inflation have slowed economic growth there and affected a range of commodities prices. Meanwhile, last year's concerns over European debt have reemerged.
1
We believe there are also reasons to be optimistic. U.S. manufacturing data remain relatively strong, corporate profits are healthy, balance sheets continue to improve, and bank lending is slowly recovering. In addition, we believe interest rates are likely to remain low for the foreseeable future, and we believe that recent economic headwinds could ultimately prove relatively temporary. In our view, these factors coupled with reasonable valuations seem to suggest potential for continued upside for the broad equity indices.
Sincerely,
S. Basu Mullick
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in mid-cap stocks are set forth in the prospectus and statement of additional information.
Mid-capitalization stocks are more vulnerable to financial risks and other risks than stocks of larger companies. They also trade less frequently and in lower volume than larger company stocks, so their market prices tend to be more volatile.
The composition, industries and holdings of the Portfolio are subject to change. The AMT Regency Portfolio is invested in a wide array of stocks and no single holding makes up a significant portion of the Portfolio's total assets.
2
Regency Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 14.9 | % | |
| Consumer Staples | | | 2.5 | | |
| Energy | | | 11.8 | | |
| Financials | | | 26.8 | | |
| Health Care | | | 9.7 | | |
| Industrials | | | 12.2 | | |
| Information Technology | | | 7.6 | | |
| Materials | | | 4.6 | | |
| Utilities | | | 9.2 | | |
| Short-Term Investments | | | 0.7 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS1
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2011 | |
| | | Date | | 06/30/2011 | | 1 Year | | 5 Years | | Life of Fund* | |
Regency Portfolio Class I | | 08/22/2001 | | | 5.86 | % | | | 37.62 | % | | | 3.60 | % | | | 7.40 | % | |
Regency Portfolio Class S2 | | 04/29/2005 | | | 5.79 | % | | | 37.44 | % | | | 3.38 | % | | | 7.27 | % | |
Russell Midcap® Value Index3 | | | | | 6.69 | % | | | 34.28 | % | | | 4.01 | % | | | 8.67 | % | |
Russell Midcap® Index3 | | | | | | | 8.08 | % | | | 38.47 | % | | | 5.30 | % | | | 8.40 | % | |
Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit https://www.nb.com.
* Index returns are as of inception date 08/22/2001.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.06% and 1.31% for Class I and Class S shares, respectively (prior to any fee waivers and/or expense reimbursements). The expense ratio net of waivers and/or reimbursements was 1.26% for Class S shares. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Portfolio through 12/31/2014 for Class I shares and through 12/31/2020 for Class S shares.
3
Endnotes
1 "Total Return" includes reinvestment of all income dividends and distributions. Results represent past performance and do not indicate future results. The value of an investment in the Portfolio and the return on the investment both will fluctuate, and redemption proceeds may be higher or lower than an investor's original cost. The performance information does not reflect fees and expenses of the variable annuity and variable life insurance policies or the qualified pension and retirement plans whose proceeds are invested in the Portfolio. Neuberger Berman Management LLC ("NBM LLC") has agreed to absorb certain expenses of the AMT Portfolios, including the Portfolio. Without this arrangement, which is subject to change, the total returns of the Portfolio may have been less.
2 Performance shown prior to April 29, 2005 for Class S shares is that of Class I shares, which has lower expenses and correspondingly higher returns than Class S shares.
3 The Russell Midcap® Value Index measures the performance of those Russell Midcap® Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000® Index, which represents approximately 31% 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). 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 NBM LLC and include reinvestment of all income dividends and distributions. The Portfolio may invest in securities not included in the above-described indices and may not invest in all securities included in the above-described indices.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not NBM LLC's own projections, and they may or may not be realized. In addition, any revision to a forecast could affect the market price of a security. By quoting them herein, NBM LLC does not offer an opinion as to the accuracy of and does not guarantee these forecasted numbers.
The investments for the Portfolio are managed by the same portfolio manager(s) who manage(s) 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.
The composition, industries and holdings of the Portfolio are subject to change.
Shares of the separate AMT Portfolios are not available to the general public. Shares of this Portfolio 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.
Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the AMT Portfolios. This report is prepared for the general information of shareholders and is not an offer of shares of the AMT Portfolios. Shares of the AMT Portfolios are sold only through the currently effective prospectuses, which must precede or accompany this report.
The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2011 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses
This table is designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2011 and held for the entire period. The table illustrates the fund's costs in two ways:
| Actual Expenses and Performance: | | The first section of the table provides information about actual account values and actual expenses in dollars, based on the fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period. | |
| |
Hypothetical Example for Comparison Purposes: | | The second section of the table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. | |
| |
Please note that the expenses in the table are meant to highlight your ongoing costs only. The table and expense example do not include any transaction costs, such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan. Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Expense Information as of 6/30/11 (Unaudited)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST REGENCY PORTFOLIO
| Actual | | Beginning Account Value 1/1/11 | | Ending Account Value 6/30/11 | | Expenses Paid During the Period* 1/1/11 – 6/30/11 | | Expense Ratio | |
| Class I | | $ | 1,000.00 | | | $ | 1,058.60 | | | $ | 5.46 | | | | 1.07 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,057.90 | | | $ | 6.38 | | | | 1.25 | % | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,019.49 | | | $ | 5.36 | | | | 1.07 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,018.60 | | | $ | 6.26 | | | | 1.25 | % | |
* For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent half year divided by 365.
5
Schedule of Investments Regency Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (98.0%) | | | |
| Aerospace & Defense (2.1%) | | | |
| | 51,400 | | | Embraer SA ADR | | $ | 1,582,092 | | |
| | 83,500 | | | Spirit Aerosystems Holdings Class A | | | 1,837,000 | * | |
| | | | 3,419,092 | | |
| Auto Components (1.7%) | | | |
| | 51,700 | | | Lear Corp. | | | 2,764,916 | | |
| Automobiles (0.8%) | | | |
| | 31,300 | | | Harley-Davidson | | | 1,282,361 | | |
| Beverages (1.1%) | | | |
| | 41,800 | | | Dr. Pepper Snapple Group | | | 1,752,674 | | |
| Building Products (2.9%) | | | |
| | 112,100 | | | Masco Corp. | | | 1,348,563 | | |
| | 91,100 | | | Owens Corning | | | 3,402,585 | * | |
| | | | 4,751,148 | | |
| Capital Markets (1.7%) | | | |
| | 122,900 | | | Invesco Ltd. | | | 2,875,860 | | |
| Commercial Banks (8.3%) | | | |
| | 223,000 | | | Fifth Third Bancorp | | | 2,843,250 | | |
| | 98,355 | | | First Horizon National | | | 938,307 | | |
| | 288,100 | | | Huntington Bancshares | | | 1,889,936 | | |
| | 61,900 | | | KeyCorp | | | 515,627 | | |
| | 288,700 | | | Regions Financial | | | 1,789,940 | | |
| | 104,900 | | | SunTrust Banks | | | 2,706,420 | | |
| | 348,500 | | | Synovus Financial | | | 724,880 | | |
| | 99,000 | | | Zions Bancorp | | | 2,376,990 | | |
| | | | 13,785,350 | | |
| Construction & Engineering (1.3%) | | | |
| | 55,600 | | | Chicago Bridge & Iron | | | 2,162,840 | | |
| Containers & Packaging (1.4%) | | | |
| | 75,600 | | | Temple-Inland | | | 2,248,344 | | |
| Diversified Financial Services (2.9%) | | | |
| | 125,500 | | | Moody's Corp. | | | 4,812,925 | | |
| Electric Utilities (2.9%) | | | |
| | 72,500 | | | DPL Inc. | | | 2,186,600 | | |
| | 168,700 | | | NV Energy | | | 2,589,545 | | |
| | | | 4,776,145 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Electrical Equipment (0.8%) | | | |
| | 32,100 | | | General Cable | | $ | 1,366,818 | * | |
Electronic Equipment, Instruments & Components (3.2%) | |
| | 33,300 | | | Anixter International | | | 2,175,822 | | |
| | 96,900 | | | Avnet, Inc. | | | 3,089,172 | * | |
| | | | 5,264,994 | | |
| Energy Equipment & Services (4.9%) | | | |
| | 58,700 | | | Complete Production Services | | | 1,958,232 | * | |
| | 89,400 | | | McDermott International | | | 1,771,014 | * | |
| | 26,700 | | | National Oilwell Varco | | | 2,088,207 | | |
| | 16,900 | | | Noble Corp. | | | 666,029 | | |
| | 39,000 | | | Oceaneering International | | | 1,579,500 | | |
| | | | 8,062,982 | | |
| Food Products (0.2%) | | | |
| | 5,500 | | | J.M. Smucker | | | 420,420 | | |
| Gas Utilities (0.9%) | | | |
| | 84,300 | | | Questar Corp. | | | 1,492,953 | | |
| Health Care Providers & Services (7.8%) | | | |
| | 42,300 | | | Aetna Inc. | | | 1,865,007 | | |
| | 63,700 | | | AmerisourceBergen Corp. | | | 2,637,180 | | |
| | 55,800 | | | CIGNA Corp. | | | 2,869,794 | | |
| | 80,500 | | | Coventry Health Care | | | 2,935,835 | * | |
| | 36,400 | | | MEDNAX, Inc. | | | 2,627,716 | * | |
| | | | 12,935,532 | | |
| Household Durables (3.6%) | | | |
| | 130,800 | | | KB HOME | | | 1,279,224 | | |
| | 66,300 | | | Newell Rubbermaid | | | 1,046,214 | | |
| | 2,200 | | | NVR, Inc. | | | 1,596,056 | * | |
| | 24,400 | | | Whirlpool Corp. | | | 1,984,208 | | |
| | | | 5,905,702 | | |
| Household Products (1.1%) | | | |
| | 25,500 | | | Energizer Holdings | | | 1,845,180 | * | |
| Insurance (9.1%) | | | |
| | 73,700 | | | Assurant, Inc. | | | 2,673,099 | | |
| | 109,800 | | | Lincoln National | | | 3,128,202 | | |
| | 20,900 | | | PartnerRe Ltd. | | | 1,438,965 | | |
| | 89,700 | | | Principal Financial Group | | | 2,728,674 | | |
| | 61,500 | | | Progressive Corp. | | | 1,314,870 | | |
| | 37,200 | | | StanCorp Financial Group | | | 1,569,468 | | |
| | 67,500 | | | W.R. Berkley | | | 2,189,700 | | |
| | | | 15,042,978 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| IT Services (1.6%) | | | |
| | 125,100 | | | Lender Processing Services | | $ | 2,615,841 | | |
| Machinery (4.9%) | | | |
| | 34,400 | | | AGCO Corp. | | | 1,697,984 | * | |
| | 49,800 | | | Ingersoll-Rand PLC | | | 2,261,418 | | |
| | 54,800 | | | Terex Corp. | | | 1,559,060 | * | |
| | 37,800 | | | WABCO Holdings | | | 2,610,468 | * | |
| | | | 8,128,930 | | |
| Media (2.1%) | | | |
| | 12,500 | | | Cablevision Systems Class A | | | 452,625 | | |
| | 73,300 | | | McGraw-Hill Cos. | | | 3,072,003 | | |
| | | | 3,524,628 | | |
| Metals & Mining (3.2%) | | | |
| | 22,400 | | | Cliffs Natural Resources | | | 2,070,880 | | |
| | 46,500 | | | Teck Resources Class B | | | 2,359,410 | | |
| | 18,200 | | | United States Steel | | | 837,928 | | |
| | | | 5,268,218 | | |
| Multi-Utilities (5.2%) | | | |
| | 58,300 | | | Alliant Energy | | | 2,370,478 | | |
| | 124,500 | | | CenterPoint Energy | | | 2,409,075 | | |
| | 111,000 | | | CMS Energy | | | 2,185,590 | | |
| | 16,000 | | | DTE Energy | | | 800,320 | | |
| | 17,100 | | | OGE Energy | | | 860,472 | | |
| | | | 8,625,935 | | |
| Multiline Retail (3.1%) | | | |
| | 61,700 | | | J.C. Penney | | | 2,131,118 | | |
| | 102,700 | | | Macy's, Inc. | | | 3,002,948 | | |
| | | | 5,134,066 | | |
| Oil, Gas & Consumable Fuels (6.7%) | | | |
| | 123,400 | | | Denbury Resources | | | 2,468,000 | * | |
| | 26,200 | | | Newfield Exploration | | | 1,782,124 | * | |
| | 22,900 | | | Noble Energy | | | 2,052,527 | | |
| | 34,733 | | | Ship Finance International | | | 625,888 | | |
| | 26,500 | | | Southwestern Energy | | | 1,136,320 | * | |
| | 31,000 | | | Whiting Petroleum | | | 1,764,210 | * | |
| | 35,000 | | | World Fuel Services | | | 1,257,550 | | |
| | | | 11,086,619 | | |
| Pharmaceuticals (1.7%) | | | |
| | 29,500 | | | Shire PLC ADR | | | 2,779,195 | | |
| Real Estate Investment Trusts (4.5%) | | | |
| | 16,300 | | | Alexandria Real Estate Equities | | | 1,261,946 | | |
| | 70,900 | | | Annaly Capital Management | | | 1,279,036 | | |
| | 13,726 | | | Boston Properties | | | 1,457,152 | | |
| | 31,086 | | | Macerich Co. | | | 1,663,101 | | |
| | 18,504 | | | Vornado Realty Trust | | | 1,724,203 | | |
| | | | 7,385,438 | | |
| NUMBER OF SHARES | | | | VALUE† | |
Semiconductors & Semiconductor Equipment (2.9%) | | | |
| | 36,000 | | | Lam Research | | $ | 1,594,080 | * | |
| | 60,000 | | | NXP Semiconductors | | | 1,603,800 | * | |
| | 145,600 | | | ON Semiconductor | | | 1,524,432 | * | |
| | | | 4,722,312 | | |
| Specialty Retail (3.4%) | | | |
| | 83,800 | | | Aeropostale, Inc. | | | 1,466,500 | * | |
| | 121,000 | | | Chico's FAS | | | 1,842,830 | | |
| | 58,300 | | | Limited Brands | | | 2,241,635 | | |
| | | | 5,550,965 | | |
| | | | | Total Common Stocks (Cost $111,433,239) | | | 161,791,361 | | |
| Short-Term Investments (0.7%) | | | |
| | 1,128,001 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $1,128,001) | | | 1,128,001 | | |
| | | | | Total Investments (98.7%) (Cost $112,561,240) | | | 162,919,362 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (1.3%) | | | 2,215,289 | | |
| | | | | Total Net Assets (100.0%) | | $ | 165,134,651 | | |
See Notes to Schedule of Investments
7
Notes to Schedule of Investments Regency Portfolio
(Unaudited)
† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Advisers Management Trust Regency Portfolio (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.
ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in equity securities, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted in active markets (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by the Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in State Street Institutional Liquid Reserves Fund Institutional Class are valued using the fund's daily calculated net asset value per share.
If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Advisers Management Trust's Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding.
The value of the Fund's investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values
See Notes to Financial Statements
8
Notes to Schedule of Investments Regency Portfolio
(Unaudited) (cont'd)
are translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time. The Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities. In this event, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.
The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of June 30, 2011:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 161,791,361 | | | $ | — | | | $ | — | | | $ | 161,791,361 | | |
| Short-Term Investments | | | — | | | | 1,128,001 | | | | — | | | | 1,128,001 | | |
| Total Investments | | $ | 161,791,361 | | | $ | 1,128,001 | | | $ | — | | | $ | 162,919,362 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no significant transfers between Levels 1 and 2 during the six months ended June 30, 2011.
## At June 30, 2011, the cost of investments for U.S. federal income tax purposes was $115,857,875. Gross unrealized appreciation of investments was $49,238,380 and gross unrealized depreciation of investments was $2,176,893, resulting in net unrealized appreciation of $47,061,487, based on cost for U.S. federal income tax purposes.
* Security did not produce income during the last twelve months.
See Notes to Financial Statements
9
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | REGENCY PORTFOLIO | |
| | | June 30, 2011 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 162,919,362 | | |
| Cash | | | 1 | | |
| Dividends and interest receivable | | | 216,966 | | |
| Receivable for securities sold | | | 4,572,720 | | |
| Receivable for Fund shares sold | | | 500,454 | | |
| Prepaid expenses and other assets | | | 4,330 | | |
| Total Assets | | | 168,213,833 | | |
| Liabilities | |
| Payable for securities purchased | | | 2,052,095 | | |
| Payable for Fund shares redeemed | | | 783,056 | | |
| Payable to investment manager (Note B) | | | 77,653 | | |
| Payable to administrator—net (Note B) | | | 42,463 | | |
| Accrued expenses and other payables | | | 123,915 | | |
| Total Liabilities | | | 3,079,182 | | |
| Net Assets at value | | $ | 165,134,651 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 158,393,956 | | |
| Undistributed net investment income (loss) | | | 887,956 | | |
| Accumulated net realized gains (losses) on investments | | | (44,505,553 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 50,358,292 | | |
| Net Assets at value | | $ | 165,134,651 | | |
| Net Assets | |
| Class I | | $ | 103,393,137 | | |
| Class S | | | 61,741,514 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | |
| Class I | | | 6,358,470 | | |
| Class S | | | 3,518,884 | | |
| Net Asset Value, offering and redemption price per share | |
| Class I | | $ | 16.26 | | |
| Class S | | | 17.55 | | |
| *Cost of Investments: | | | |
| Unaffiliated issuers | | $ | 112,561,240 | | |
See Notes to Financial Statements
10
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | REGENCY PORTFOLIO | |
| | | For the Six Months Ended June 30, 2011 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 1,317,706 | �� | |
| Interest income—unaffiliated issuers | | | 6,280 | | |
| Foreign taxes withheld | | | (9,749 | ) | |
| Total income | | $ | 1,314,237 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 536,627 | | |
| Administration fees (Note B): | |
| Class I | | | 196,281 | | |
| Class S | | | 96,425 | | |
| Distribution fees (Note B): | |
| Class S | | | 80,354 | | |
| Audit fees | | | 20,810 | | |
| Custodian fees (Note A) | | | 37,831 | | |
| Insurance expense | | | 4,911 | | |
| Legal fees | | | 54,049 | | |
| Shareholder reports | | | 66,123 | | |
| Trustees' fees and expenses | | | 27,273 | | |
| Miscellaneous | | | 5,976 | | |
| Total expenses | | | 1,126,660 | | |
| Expenses reimbursed by Management (Note B) | | | (24,448 | ) | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (1 | ) | |
| Total net expenses | | | 1,102,211 | | |
| Net investment income (loss) | | $ | 212,026 | | |
| Realized and Unrealized Gain (Loss) on Investments (Note A) | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 19,196,937 | | |
| Foreign currency | | | 96 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | (8,251,000 | ) | |
| Foreign currency | | | (20 | ) | |
| Net gain (loss) on investments | | | 10,946,013 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 11,158,039 | | |
See Notes to Financial Statements
11
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | REGENCY PORTFOLIO | |
| | | Six Months Ended June 30, 2011 (Unaudited) | | Year Ended December 31, 2010 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | 212,026 | | | $ | 752,698 | | |
| Net realized gain (loss) on investments | | | 19,197,033 | | | | 16,436,554 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | (8,251,020 | ) | | | 24,835,018 | | |
| Net increase (decrease) in net assets resulting from operations | | | 11,158,039 | | | | 42,024,270 | | |
| Distributions to Shareholders From (Note A): | |
| Net investment income: | |
| Class I | | | — | | | | (895,174 | ) | |
| Class S | | | — | | | | (191,283 | ) | |
| Total distributions to shareholders | | | — | | | | (1,086,457 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold: | |
| Class I | | | 6,436,326 | | | | 49,423,172 | | |
| Class S | | | 5,577,268 | | | | 11,006,720 | | |
| Proceeds from reinvestment of dividends and distributions: | |
| Class I | | | — | | | | 895,174 | | |
| Class S | | | — | | | | 191,283 | | |
| Payments for shares redeemed: | |
| Class I | | | (45,141,154 | ) | | | (28,829,668 | ) | |
| Class S | | | (10,005,525 | ) | | | (20,364,903 | ) | |
| Net increase (decrease) from Fund share transactions | | | (43,133,085 | ) | | | 12,321,778 | | |
| Net Increase (Decrease) in Net Assets | | | (31,975,046 | ) | | | 53,259,591 | | |
| Net Assets: | |
| Beginning of period | | | 197,109,697 | | | | 143,850,106 | | |
| End of period | | $ | 165,134,651 | | | $ | 197,109,697 | | |
| Undistributed net investment income (loss) at end of period | | $ | 887,956 | | | $ | 675,930 | | |
See Notes to Financial Statements
12
Notes to Financial Statements Regency Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: The Fund is a separate operating series of Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware statutory trust organized pursuant to a Trust Instrument dated May 23, 1994. The Trust is currently comprised of ten separate operating series (each individually a "Series," and collectively the "Funds") each of which is diversified. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended. The Fund currently offers Class I and Class S shares. The Board may establish additional series or classes of shares without the approval of shareholders.
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.
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time, 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. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. 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, if any, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations. Included in net realized gain (loss) on investments are proceeds from the settlements of class action litigation in which the Fund participated as a class member. The amount of such proceeds for the six months ended June 30, 2011 was $2,623.
5 Income tax information: 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 requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. To the extent the Fund distributes substantially all of its earnings to shareholders, no federal income or excise tax provision is required.
The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2007 - 2009. As of June 30, 2011, the Fund did not have any unrecognized tax positions.
Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and
13
differing characterization of distributions made by the Fund as a whole. The Fund may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2010, permanent differences resulting primarily from different book and tax accounting for foreign currency gains and losses, return of capital distributions from real estate investment trusts ("REITs") and non-taxable dividend adjustments were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund.
The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 was as follows:
| | | Distributions Paid From: | | | |
| Ordinary Income | | Long-Term Capital Gain | | Total | |
| 2010 | | 2009 | | 2010 | | 2009 | | 2010 | | 2009 | |
| $ | 1,086,457 | | | $ | 1,830,739 | | | $ | — | | | $ | 1,837,245 | | | $ | 1,086,457 | | | $ | 3,667,984 | | |
As of December 31, 2010, components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed Ordinary Income | | Undistributed Long-Term Gain | | Unrealized Appreciation (Depreciation) | | Loss Carryforwards and Deferrals | | Total | |
| $ | 675,930 | | | $ | — | | | $ | 54,600,239 | | | $ | (59,693,513 | ) | | $ | (4,417,344 | ) | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales, capital loss carryforwards, REIT basis adjustments, and non-taxable dividend adjustments for common stocks.
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. Under current tax law, the use of these losses to offset future gains may be limited. As determined at December 31, 2010, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| | | Expiring in: | |
| | | 2017 | |
| | | $ | 59,693,513 | | |
During the year ended December 31, 2010, the Fund utilized capital loss carryforwards of $15,050,561.
On December 22, 2010, the Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") was enacted. The Act modernizes several of the federal income and excise tax provisions related to RICs, and, with certain exceptions, is effective for taxable years beginning after December 22, 2010. Among the changes made are changes to the capital loss carryforward rules allowing for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character. Capital loss carryforwards generated in taxable years beginning after effective date of the Act must be fully used before capital loss carryforwards generated in taxable years prior to effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.
6 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in October). Income distributions and capital gain distributions to shareholders are recorded on the ex-date.
It is the policy of the Fund to pass through to its shareholders substantially all REIT distributions and other income it receives, less operating expenses. The distributions the Fund receives from REITs are generally comprised of
14
income, capital gains, and/or return of capital, but the REITs do not report this information to the Fund until the following calendar year. As a result, the Fund will estimate these amounts when reporting the character of income and distributions within the financial statements. All estimates are based upon REIT information sources available to the Fund together with actual IRS Forms 1099 received to date. Based on past experience, it is possible that a portion of the Fund's distributions during the current fiscal period will be considered tax return of capital but the actual amount of the tax return of capital, if any, is not determinable until after the Fund's fiscal period-end. After calendar year-end, when the Fund learns the nature of the distributions paid by REITs during that year, distributions previously identified as income are often recharacterized as return of capital and/or capital gain. After all applicable REITs have informed the Fund of the actual breakdown of distributions paid to the Fund during its fiscal year, estimates previously recorded are adjusted on the books of the Fund to reflect actual results. As a result, the composition of the Fund's distributions as reported herein may differ from the final composition determined after calendar year-end and reported to Fund shareholders on IRS Form 1099. For the six months ended June 30, 2011, the Fund did not estimate any REIT distributions.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Series are charged to that Series. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., the Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly. The Fund's expenses (other than those specific to each class) are allocated proportionally each day between the classes based upon the relative net assets of each class.
9 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.
10 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.
11 Expense offset arrangement: The Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended June 30, 2011, the impact of this arrangement was a reduction of expenses of $1.
12 Other: All net investment income and realized and unrealized capital gains and losses of the Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.
15
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 and are also offered directly to certain qualified pension and retirement plans.
The Fund retains 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, 0.425% of the next $2.5 billion, and 0.40% of average daily net assets in excess of $4 billion.
The Fund retains Management as its administrator under an Administration Agreement. Each class pays Management an administration fee at the annual rate of 0.30% of its average daily net assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under this agreement.
The Board adopted a non-fee distribution plan for the Fund's Class I.
For the Fund's Class S, Management acts as agent in arranging for the sale of class shares without commission and bears advertising and promotion expenses. The Board has adopted a distribution plan (the "Plan") with respect to this class, pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that, as compensation for administrative and other services provided to this class, Management's activities and expenses related to the sale and distribution of this class of shares, and ongoing services provided to investors in this class, Management receives from this class a fee at the annual rate of 0.25% of Class S's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for this class and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by this class during any year could have been more or less than the cost of distribution and other services provided to this class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plan complies with those rules.
Management has contractually undertaken to forgo current payment of fees and/or reimburse the Fund's Class I and Class S shares for their operating expenses (including fees payable to Management but excluding interest, taxes, brokerage commissions, extraordinary expenses, and transaction costs) ("Operating Expenses") which exceed the expense limitation as detailed in the following table:
| | | Expense Limitation(1) | | Expiration | | Reimbursement from Management for the Six Months Ended June 30, 2011 | |
| Class I | | | 1.50 | % | | 12/31/14 | | $ | — | | |
| Class S | | | 1.25 | % | | 12/31/20 | | | 24,448 | | |
(1) Expense limitation per annum of the respective class' average daily net assets.
Each respective class has agreed to repay Management for fees and expenses foregone and/or 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 or waived fees. During the six months ended June 30, 2011, there was no repayment to Management under its contractual expense limitation. At June 30, 2011, the Fund's Class I shares had
16
no contingent liability to Management under its contractual expense limitation. At June 30, 2011, the Fund's Class S shares contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | | | |
| | | 2012 | | 2013 | | 2014 | | Total | |
| Class S | | $ | 32,214 | | | $ | 31,454 | | | $ | 24,448 | | | $ | 88,116 | | |
Neuberger Berman LLC ("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.
Management and Neuberger are indirect subsidiaries of Neuberger Berman Group LLC ("NBG," and together with its consolidated subsidiaries "NB Group"). The voting equity of NBG is owned by NBSH Acquisition, LLC ("NBSH") and Lehman Brothers Holdings Inc. ("LBHI"). NBSH, which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees and senior professionals, owns approximately 52% of the voting equity of NBG, and LBHI, which is a debtor in possession under chapter 11 of the U.S. Bankruptcy Code, owns the remaining 48% of the voting equity. LBHI's bankruptcy proceedings have had no material impact on the operations of the Fund. Management and Neuberger continue to operate in the ordinary course of business as the investment manager and sub-adviser, respectively, of the Fund.
Note C—Securities Transactions:
During the six months ended June 30, 2011, there were purchase and sale transactions (excluding short-term securities) of $22,246,167 and $63,719,767, respectively.
During the six months ended June 30, 2011, no brokerage commissions on securities transactions were paid to affiliated brokers.
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2011 and for the year ended December 31, 2010 was as follows:
For the Six Months Ended June 30, 2011
| | | Shares Sold | | Shares Issued on Reinvestment of Dividends and Distributions | | Shares Redeemed | | Total | |
| Class I | | | 397,055 | | | | — | | | | (2,802,491 | ) | | | (2,405,436 | ) | |
| Class S | | | 322,079 | | | | — | | | | (572,846 | ) | | | (250,767 | ) | |
For the Year Ended December 31, 2010
| | | Shares Sold | | Shares Issued on Reinvestment of Dividends and Distributions | | Shares Redeemed | | Total | |
| Class I | | | 3,846,396 | | | | 64,401 | | | | (2,170,042 | ) | | | 1,740,755 | | |
| Class S | | | 785,229 | | | | 12,735 | | | | (1,400,742 | ) | | | (602,778 | ) | |
17
Note E—Line of Credit:
At June 30, 2011, the Fund was a participant in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.125% per annum of the available line of credit is charged, of which each participating 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. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $200,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at June 30, 2011. During the six months ended June 30, 2011, the Fund did not utilize this line of credit.
Note F—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
18
Financial Highlights
Regency Portfolio
The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements.
| Class I | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 15.36 | | | $ | 12.26 | | | $ | 8.60 | | | $ | 16.23 | | | $ | 16.21 | | | $ | 15.50 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .02 | | | | .07 | | | | .07 | | | | .10 | | | | .17 | | | | .13 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .88 | | | | 3.13 | | | | 3.93 | | | | (7.53 | ) | | | .39 | | | | 1.55 | | |
| Total From Investment Operations | | | .90 | | | | 3.20 | | | | 4.00 | | | | (7.43 | ) | | | .56 | | | | 1.68 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.10 | ) | | | (.18 | ) | | | (.17 | ) | | | (.08 | ) | | | (.07 | ) | |
| Net Capital Gains | | | — | | | | — | | | | (.16 | ) | | | (.03 | ) | | | (.46 | ) | | | (.90 | ) | |
| Total Distributions | | | — | | | | (.10 | ) | | | (.34 | ) | | | (.20 | ) | | | (.54 | ) | | | (.97 | ) | |
| Net Asset Value, End of Period | | $ | 16.26 | | | $ | 15.36 | | | $ | 12.26 | | | $ | 8.60 | | | $ | 16.23 | | | $ | 16.21 | | |
Total Return†† | | | 5.86 | %** | | | 26.18 | % | | | 46.56 | % | | | (45.82 | )% | | | 3.30 | % | | | 11.17 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 103.4 | | | $ | 134.6 | | | $ | 86.1 | | | $ | 74.8 | | | $ | 217.3 | | | $ | 242.0 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.07 | %* | | | 1.06 | % | | | 1.06 | % | | | .97 | % | | | .93 | % | | | .96 | % | |
Ratio of Net Expenses to Average Net Assets | | | 1.07 | %* | | | 1.06 | % | | | 1.06 | %§ | | | .96 | %§ | | | .92 | %§ | | | .95 | %§ | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .27 | %* | | | .54 | % | | | .67 | % | | | .76 | % | | | 1.03 | % | | | .80 | % | |
| Portfolio Turnover Rate | | | 12 | %** | | | 39 | % | | | 51 | % | | | 66 | % | | | 58 | % | | | 53 | % | |
See Notes to Financial Highlights
19
Financial Highlights (cont'd)
| Class S | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 16.59 | | | $ | 13.21 | | | $ | 9.22 | | | $ | 17.37 | | | $ | 17.35 | | | $ | 16.56 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .01 | | | | .04 | | | | .06 | | | | .08 | | | | .14 | | | | .10 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .95 | | | | 3.39 | | | | 4.20 | | | | (8.06 | ) | | | .41 | | | | 1.66 | | |
| Total From Investment Operations | | | .96 | | | | 3.43 | | | | 4.26 | | | | (7.98 | ) | | | .55 | | | | 1.76 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.05 | ) | | | (.11 | ) | | | (.14 | ) | | | (.07 | ) | | | (.07 | ) | |
| Net Capital Gains | | | — | | | | — | | | | (.16 | ) | | | (.03 | ) | | | (.46 | ) | | | (.90 | ) | |
| Total Distributions | | | — | | | | (.05 | ) | | | (.27 | ) | | | (.17 | ) | | | (.53 | ) | | | (.97 | ) | |
| Net Asset Value, End of Period | | $ | 17.55 | | | $ | 16.59 | | | $ | 13.21 | | | $ | 9.22 | | | $ | 17.37 | | | $ | 17.35 | | |
Total Return†† | | | 5.79 | %** | | | 25.99 | % | | | 46.16 | % | | | (45.95 | )% | | | 3.05 | % | | | 10.94 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 61.7 | | | $ | 62.5 | | | $ | 57.8 | | | $ | 119.7 | | | $ | 151.3 | | | $ | 55.7 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.25 | %* | | | 1.25 | % | | | 1.25 | % | | | 1.23 | % | | | 1.19 | % | | | 1.23 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.25 | %* | | | 1.25 | % | | | 1.25 | % | | | 1.22 | % | | | 1.18 | % | | | 1.23 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .11 | %* | | | .30 | % | | | .61 | % | | | .58 | % | | | .80 | % | | | .56 | % | |
| Portfolio Turnover Rate | | | 12 | %** | | | 39 | % | | | 51 | % | | | 66 | % | | | 58 | % | | | 53 | % | |
See Notes to Financial Highlights
20
Notes to Financial Highlights Regency Portfolio (Unaudited)
†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period and assumes income dividends and other distributions, if any, were reinvested. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. 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 and/or waived certain expenses. Total return would have been higher if Management had not recouped previously reimbursed 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.
# The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.
‡ Calculated based on the average number of shares outstanding during each fiscal period.
§ After reimbursement of expenses previously paid by Management. Had the Fund not made such reimbursements, the ratios of net expenses to average daily net assets would have been:
| | | Year Ended December 31, 2006 | |
| Regency Portfolio Class S | | | 1.22 | % | |
After reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been:
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| Regency Portfolio Class I | | | — | | | | — | | | | 1.06 | % | | | .96 | % | | | .93 | % | | | .95 | % | |
| Regency Portfolio Class S | | | 1.33 | % | | | 1.30 | % | | | 1.29 | % | | | 1.22 | % | | | 1.18 | % | | | 1.23 | % | |
* Annualized.
** Not annualized.
21
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 1-800-877-9700 (toll-free) and on the website of the Securities and Exchange Commission, at www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available, without charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings for the Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll free).
22
Neuberger Berman
Advisers Management Trust
Short Duration Bond Portfolio
I Class Shares
Semi-Annual Report
June 30, 2011
80374 08/11
Short Duration Bond Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Short Duration Bond Portfolio Class I posted a 1.16% return for the six months ended June 30, 2011, outperforming its benchmark, the Barclays Capital 1-3 Year U.S. Government/Credit Index, which returned 1.05% for the same period.
The first and second halves of the reporting period were a study in contrasts for the U.S. fixed income market. When the period began, there were general expectations for a strengthening economy and inflationary concerns given sharply higher oil and food prices. Despite a host of geopolitical issues, including unrest in the Middle East and Northern Africa, the ongoing European sovereign debt crisis and the devastating earthquake and tsunami in Japan, Treasury yields moved higher (and Treasury prices moved lower) during the first half of the reporting period, and non-Treasury fixed income securities generally produced solid returns.
The economy stumbled in the second half of the period as unemployment in the U.S. moved higher, the housing market continued to weaken and consumer spending—which accounts for roughly 70% of gross domestic product—faltered. In addition, global supply disruptions in the aftermath of the natural disasters in Japan negatively impacted the manufacturing sector and there was an escalation in the European sovereign debt crisis. Against this backdrop, investors' risk aversion increased as they flocked to the perceived safety of Treasuries. In contrast, most non-Treasury securities generated relatively weak results compared with their Treasury counterparts.
Given the dramatic shift in investor sentiment, many of the strategies that initially supported the Portfolio, in particular its overweight, relative to the benchmark, in non-Treasury securities, gave back a portion of their gains as the reporting period progressed. For example, while the Portfolio's exposure to investment grade corporate bonds contributed to performance for the reporting period as a whole, their spreads (the difference in yield between Treasuries and other bond sectors) widened in May and June.
The non-agency mortgage-backed security (MBS) sector was also adversely impacted by the flight to quality during the second half of the period, as it served to temper investor demand. Exacerbating the situation was a glut of new supply, which flooded the market at a time when risk aversion was peaking. All told, the Portfolio's non-agency MBS exposure detracted from results during the reporting period.
Also impacting the Portfolio's performance was its duration and yield curve positioning. Having a shorter duration than the benchmark was not rewarded as interest rates declined during the reporting period. However, this was more than offset by the positives associated with the Portfolio's positioning on the yield curve. The Portfolio utilized Treasury futures to manage duration and yield curve positioning.
A number of adjustments were made to the Portfolio during the reporting period. We significantly reduced exposure to Treasury securities as two-year rates fell to a near record low in June. The proceeds were diversified into a number of sectors that we felt offered better value, including agency MBS, commercial mortgage-backed securities, fixed-rate asset-backed securities and, to a lesser extent, investment grade corporate bonds. In addition, given the extremely low interest rate environment, we further reduced the Portfolio's duration in early June and moved even further shorter than the benchmark.
Despite the recent soft patch, we currently feel that the economic recovery will continue, although growth could in our opinion be far from robust given ongoing weakness in the labor and housing markets. However, we believe that the economy may surprise somewhat on the upside if oil prices further moderate and consumer spending improves. While most spread sectors lagged Treasuries during the second quarter, we feel that they remain attractive given our expectations for a continued economic expansion, manageable core inflation and low short-term rates. We are also comfortable
1
maintaining our current exposure in non-agency MBS. While their prices have weakened in recent months, in our view, they offer attractive risk-adjusted yields.
Sincerely,
Thomas Sontag, Michael Foster and Richard Grau
Portfolio Co-Managers
Information about the principal risks of investing in the Portfolio is set forth in the prospectus and statement of additional information.
The composition, industries and holdings of the Portfolio are subject to change.
2
Short Duration Bond Portfolio
PORTFOLIO BY TYPE OF SECURITY
| (as a % of Total Net Assets) | |
| Asset-Backed Securities | | | 13.7 | % | |
| Corporate Debt Securities | | | 30.1 | | |
| Mortgage-Backed Securities | | | 44.5 | | |
| U.S. Government Agency Securities | | | 4.3 | | |
| U.S. Treasury Securities | | | 3.9 | | |
| Short-Term Investments | | | 3.1 | | |
Cash, receivables and other assets, less liabilites | | | 0.4 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS1
| | | | | Six Month Period | | Average Annual Total Return Ended 06/30/2011 | |
| | | Inception Date | | Ended 06/30/2011 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund* | |
Short Duration Bond Portfolio Class I | | | 09/10/1984 | | | | 1.16 | % | | | 2.93 | % | | | 2.46 | % | | | 2.72 | % | | | 5.68 | % | |
Barclays Capital 1-3 Year U.S. Government/Credit Index2 | | | | | | | 1.05 | % | | | 1.90 | % | | | 4.52 | % | | | 4.01 | % | | | 6.46 | % | |
Performance data quoted represent past performance, which is no guaranteeof future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit https://www.nb.com.
* Index returns are as of the inception date 09/10/1984.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2010 was 0.81% for Class I shares (prior to any fee waivers and/or expense reimbursements). Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Portfolio through 12/31/2014.
3
Endnotes
1 "Total Return" includes reinvestment of all income dividends and distributions. Results represent past performance and do not indicate future results. The value of an investment in the Portfolio and the return on the investment both will fluctuate, and redemption proceeds may be higher or lower than an investor's original cost. The performance information does not reflect fees and expenses of the variable annuity and variable life insurance policies or the qualified pension and retirement plans whose proceeds are invested in the Portfolio. Neuberger Berman Management LLC ("NBM LLC") has agreed to absorb certain expenses of the AMT Portfolios, including the Portfolio. Without this arrangement, which is subject to change, the total returns of the Portfolio may have been less.
2 The Barclays Capital 1-3 Year U.S. Government/Credit Index is an unmanaged index that includes all bonds in the U.S. Government/Credit Index with at least one to three years to maturity. The U.S. Government/Credit Index includes all securities in the Government and Credit Indices. The Government Index includes Treasuries (i.e., public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (i.e., publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government). The Credit Index includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements. All bonds in the index must meet the following additional criteria: must have at least one year to final maturity regardless of call features; must have at least $250 million par amount outstanding; must be rated investment-grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Standard & Poor's, Moody's Investors Services, Inc., and Fitch, Inc.; must be fixed rate; must be dollar-denominated and non-convertible; and must be publicly issued. Please note that indices do not take into account any fees and expenses of investing in the individual securities that they track and that individuals cannot invest directly in any index. Data about the performance of this index is prepared or obtained by NBM LLC and include reinvestment of all income dividends and distributions. The Portfolio may invest in securities not included in the above-described index and may not invest in all securities included in the above-described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not NBM LLC's own projections, and they may or may not be realized. In addition, any revision to a forecast could affect the market price of a security. By quoting them herein, NBM LLC does not offer an opinion as to the accuracy of and does not guarantee these forecasted numbers.
The investments for the Portfolio are managed by the same portfolio manager(s) who manage(s) 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.
The composition, industries and holdings of the Portfolio are subject to change.
Shares of the separate AMT Portfolios are not available to the general public. Shares of this Portfolio may be purchased only by life insurance companies to be used in their separate accounts that fund variable annuity and variable life insurance policies and by qualified pension and retirement plans.
Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the AMT Portfolios. This report is prepared for the general information of shareholders and is not an offer of shares of the AMT Portfolios. Shares of the AMT Portfolios are sold only through the currently effective prospectuses, which must precede or accompany this report.
The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2011 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses
This table is designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2011 and held for the entire period. The table illustrates the fund's costs in two ways:
| Actual Expenses and Performance: | | The first section of the table provides information about actual account values and actual expenses in dollars, based on the fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period. | |
| |
Hypothetical Example for Comparison Purposes: | | The second section of the table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. | |
| |
Please note that the expenses in the table are meant to highlight your ongoing costs only. The table and expense example do not include any transaction costs, such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan. Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Expense Information as of 6/30/11 (Unaudited)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SHORT DURATION BOND PORTFOLIO
| Actual | | Beginning Account Value 1/1/11 | | Ending Account Value 6/30/11 | | Expenses Paid During the Period* 1/1/11 – 6/30/11 | |
| Class I | | $ | 1,000.00 | | | $ | 1,011.60 | | | $ | 4.09 | | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,020.73 | | | $ | 4.11 | | |
* Expenses are equal to the annualized expense ratio of .82%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent half year divided by 365.
5
Schedule of Investments Short Duration Bond Portfolio
(Unaudited)
| PRINCIPAL AMOUNT | | | | VALUE† | |
| U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (3.9%) | | | |
| $ | 8,000,000 | | | U.S. Treasury Bills, 0.07%, due 12/22/11 | | $ | 7,997,313 | | |
| | 2,820,000 | | | U.S. Treasury Notes, 2.00%, due 11/30/13 | | | 2,913,852 | | |
| | | | | Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (Cost $10,918,776) | | | 10,911,165 | | |
| U.S. Government Agency Securities (4.3%) | | | |
| | 8,500,000 | | | Citigroup Funding, Inc., Guaranteed FDIC Floating Rate Medium-Term Notes, 0.55%, due 3/30/12 | | | 8,519,626 | µ@ | |
| | 3,450,000 | | | Wells Fargo & Co., Guaranteed FDIC Floating Rate Notes, 0.47%, due 6/15/12 | | | 3,460,754 | µ@ | |
| | | | | Total U.S. Government Agency Securities (Cost $11,950,000) | | | 11,980,380 | | |
| Mortgage-Backed Securities (44.5%) | | | |
| Adjustable Alt-B Mixed Balance (0.4%) | | | |
| | 1,351,638 | | | Lehman XS Trust, Floating Rate, Ser. 2005-1, Class 2A1, 1.69%, due 7/25/35 | | | 1,015,119 | µ | |
| Adjustable Jumbo Balance (7.5%) | | | |
| | 3,574,295 | | | GMAC Mortgage Corp. Loan Trust, Ser. 2006-AR1, Class 1A1, 2.99%, due 4/19/36 | | | 2,601,647 | µ | |
| | 2,972,896 | | | Merrill Lynch Mortgage Investors Trust, Ser. 2005-A1, Class 2A1, 2.79%, due 12/25/34 | | | 2,840,163 | µ | |
| | 18,000,000 | | | Wells Fargo Mortgage Backed Securities Trust, Ser. 2005-AR16, Class 4A2, 2.77%, due 10/25/35 | | | 15,523,182 | µ | |
| | | | 20,964,992 | | |
| Adjustable Mixed Balance (2.5%) | | | |
| | 3,461,367 | | | Countrywide Home Loan Mortgage Pass-Through Trust, Ser. 2006-HYB5, Class 2A1, 4.76%, due 9/20/36 | | | 1,968,348 | µ | |
| | 2,295,008 | | | Credit Suisse First Boston Mortgage Securities Corp., Ser. 2004-AR4, Class 2A1, 2.75%, due 5/25/34 | | | 2,086,614 | µ | |
| | 2,936,927 | | | First Horizon Mortgage Pass-Through Trust, Ser. 2005-AR5, Class 2A1, 2.75%, due 11/25/35 | | | 2,357,630 | µ | |
| | 563,063 | | | Harborview Mortgage Loan Trust, Ser. 2004-4, Class 3A, 1.32%, due 6/19/34 | | | 442,206 | µ | |
| | | | 6,854,798 | | |
| Commercial Mortgage-Backed (22.0%) | | | |
| | 1,885,211 | | | Bear Stearns Commercial Mortgage Securities, Inc., Ser. 2006-PW14, Class A1, 5.04%, due 12/11/38 | | | 1,893,027 | | |
| | 7,324,579 | | | Bear Stearns Commercial Mortgage Securities, Inc., Ser. 2005-PWR8, Class AAB, 4.58%, due 6/11/41 | | | 7,551,000 | | |
| | 2,450,000 | | | Citigroup Commercial Mortgage Trust, Ser. 2006-C4, Class A2, 5.73%, due 3/15/49 | | | 2,598,796 | µØØ | |
| | 755,044 | | | Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser. 2006-CD2, Class AAB, 5.37%, due 1/15/46 | | | 790,575 | µ | |
| | 4,650,000 | | | Commercial Mortgage Pass-Through Certificates, Ser. 2003-LB1A, Class C, 4.23%, due 6/10/38 | | | 4,771,624 | | |
| | 182,877 | | | Credit Suisse Mortgage Capital Certificates, Ser. 2007-C5, Class A1, 5.10%, due 9/15/40 | | | 182,712 | | |
| | 3,288,025 | | | GE Capital Commercial Mortgage Corp., Ser. 2002-2A, Class A2, 4.97%, due 8/11/36 | | | 3,328,909 | | |
| | 2,907,432 | | | GMAC Commercial Mortgage Securities, Inc., Ser. 2004-C3, Class AAB, 4.70%, due 12/10/41 | | | 3,025,875 | | |
| | 504,693 | | | Greenwich Capital Commercial Funding Corp., Ser. 2002-C1, Class A3, 4.50%, due 1/11/17 | | | 508,323 | | |
| | 10,609,112 | | | JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2011-C3, Class A1, 1.87%, due 2/16/46 | | | 10,687,222 | ñ | |
| | 500,368 | | | JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2007-LD11, Class A1, 5.65%, due 6/15/49 | | | 501,276 | | |
| | 4,225,000 | | | LB-UBS Commercial Mortgage Trust, Ser. 2003-C7, Class C, 5.02%, due 7/15/37 | | | 4,398,827 | µ | |
| | 3,249,039 | | | Morgan Stanley Capital I, Ser. 2011-C1, Class A1, 2.60%, due 9/15/47 | | | 3,322,570 | ñ | |
See Notes to Schedule of Investments
6
| PRINCIPAL AMOUNT | | | | VALUE† | |
| $ | 7,250,000 | | | Wachovia Bank Commercial Mortgage Trust, Ser. 2003-C6, Class D, 5.13%, due 8/15/35 | | $ | 7,554,291 | µ | |
| | 1,782,662 | | | Wachovia Bank Commercial Mortgage Trust, Ser. 2003-C7, Class A1, 4.24%, due 10/15/35 | | | 1,792,424 | ñ | |
| | 4,220,000 | | | Wachovia Bank Commercial Mortgage Trust, Ser. 2005-C22, Class A3, 5.29%, due 12/15/44 | | | 4,311,935 | µ | |
| | 3,701,900 | | | WF-RBS Commercial Mortgage Trust, Ser. 2011-C2, Class A1, 2.50%, due 2/15/44 | | | 3,780,161 | ñ | |
| | | | 60,999,547 | | |
| Mortgage-Backed Non-Agency (1.8%) | | | |
| | 1,180,066 | | | Countrywide Home Loans, Ser. 2005-R2, Class 2A4, 8.50%, due 6/25/35 | | | 1,259,694 | ñ | |
| | 3,073,518 | | | GSMPS Mortgage Loan Trust, Ser. 2005-RP2, Class 1A4, 8.50%, due 3/25/35 | | | 3,131,939 | ñ | |
| | 619,082 | | | GSMPS Mortgage Loan Trust, Ser. 2005-RP3, Class 1A4, 8.50%, due 9/25/35 | | | 639,643 | ñ | |
| | | | 5,031,276 | | |
| Fannie Mae (6.0%) | | | |
| | 763,386 | | | Fannie Mae Grantor Trust, Ser. 2003-T4, Class 1A, 0.41%, due 9/26/33 | | | 743,182 | µ | |
| | 5,893,184 | | | Pass-Through Certificates, 6.00%, due 11/1/37 | | | 6,483,809 | | |
| | 7,458,922 | | | Pass-Through Certificates, 5.50%, due 7/1/38 | | | 8,073,380 | | |
| | 1,274,396 | | | Whole Loan, Ser. 2004-W8, Class PT, 11.33%, due 6/25/44 | | | 1,417,450 | µØØ | |
| | | | 16,717,821 | | |
| Freddie Mac (4.3%) | | | |
| | 9,765 | | | Pass-Through Certificates, 10.00%, due 4/1/20 | | | 11,348 | | |
| | 1,785,140 | | | Pass-Through Certificates, 8.00%, due 11/1/26 | | | 2,040,570 | | |
| | 1,251,898 | | | Pass-Through Certificates, 8.50%, due 10/1/30 | | | 1,444,789 | | |
| | 7,900,000 | | | Pass-Through Certificates, 5.50%, due 11/1/37 | | | 8,553,263 | | |
| | | | 12,049,970 | | |
| | | | | Total Mortgage-Backed Securities (Cost $128,827,483) | | | 123,633,523 | | |
| Corporate Debt Securities (30.1%) | | | |
| Banks (11.9%) | | | |
| | 5,700,000 | | | Citigroup, Inc., Senior Unsecured Notes, 6.00%, due 12/13/13 | | | 6,197,490 | | |
| | 4,250,000 | | | Goldman Sachs Group, Inc., Senior Unsecured Notes, 5.25%, due 10/15/13 | | | 4,559,991 | | |
| | 6,500,000 | | | JP Morgan Chase & Co., Senior Unsecured Medium-Term Notes, 2.05%, due 1/24/14 | | | 6,548,399 | | |
| | 4,075,000 | | | Merrill Lynch & Co., Inc., Senior Unsecured Medium-Term Notes, Ser. C, 6.05%, due 8/15/12 | | | 4,289,797 | | |
| | 5,200,000 | | | Morgan Stanley, Senior Unsecured Notes, 2.88%, due 1/24/14 | | | 5,261,995 | | |
| | 6,000,000 | | | Westpac Banking Corp., Senior Unsecured Notes, 1.85%, due 12/9/13 | | | 6,065,142 | | |
| | | | 32,922,814 | | |
| Beverages (1.3%) | | | |
| | 3,350,000 | | | Anheuser-Busch Cos., Inc., Guaranteed Unsecured Notes, 4.95%, due 1/15/14 | | | 3,631,986 | | |
| Diversified Financial Services (6.4%) | | | |
| | 4,240,000 | | | American Express Credit Corp., Senior Unsecured Medium-Term Notes, Ser. C, 5.88%, due 5/2/13 | | | 4,564,534 | | |
| | 1,990,000 | | | Caterpillar Financial Services Corp., Unsecured Medium-Term Notes, Ser. F, 4.70%, due 3/15/12 | | | 2,049,397 | | |
| | 2,165,000 | | | Caterpillar Financial Services Corp., Senior Notes, 1.65%, due 4/1/14 | | | 2,190,547 | | |
| | 1,760,000 | | | ERAC USA Finance Co., Guaranteed Notes, 2.25%, due 1/10/14 | | | 1,777,551 | ñ | |
| | 6,500,000 | | | General Electric Capital Corp., Senior Unsecured Notes, 5.90%, due 5/13/14 | | | 7,220,908 | ØØ | |
| | | | 17,802,937 | | |
| Food (0.7%) | | | |
| | 1,720,000 | | | Kraft Foods, Inc., Senior Unsecured Notes, 6.25%, due 6/1/12 | | | 1,805,823 | | |
See Notes to Schedule of Investments
7
| PRINCIPAL AMOUNT | | | | VALUE† | |
| Insurance (0.9%) | | | |
| $ | 2,310,000 | | | Berkshire Hathaway Finance Corp., Guaranteed Notes, 1.50%, due 1/10/14 | | $ | 2,330,527 | | |
| Media (4.1%) | | | |
| | 3,250,000 | | | DIRECTV Holdings LLC, Guaranteed Notes, 4.75%, due 10/1/14 | | | 3,557,525 | | |
| | 3,430,000 | | | NBC Universal, Inc., Senior Unsecured Notes, 2.10%, due 4/1/14 | | | 3,475,499 | ñ | |
| | 4,240,000 | | | Time Warner Cable, Inc., Guaranteed Notes, 5.40%, due 7/2/12 | | | 4,432,390 | | |
| | | | 11,465,414 | | |
| Office/Business Equipment (1.1%) | | | |
| | 2,990,000 | | | Xerox Corp., Senior Unsecured Notes, 5.50%, due 5/15/12 | | | 3,108,748 | | |
| Retail (1.2%) | | | |
| | 3,100,000 | | | Home Depot, Inc., Senior Unsecured Notes, 5.25%, due 12/16/13 | | | 3,387,482 | | |
| Telecommunications (2.5%) | | | |
| | 3,495,000 | | | Telefonica Emisiones SAU, Guaranteed Notes, 2.58%, due 4/26/13 | | | 3,531,152 | | |
| | 3,380,000 | | | Verizon Communications, Inc., Senior Unsecured Notes, 1.95%, due 3/28/14 | | | 3,435,016 | | |
| | | | 6,966,168 | | |
| | | | | Total Corporate Debt Securities (Cost $82,148,137) | | | 83,421,899 | | |
| Asset-Backed Securities (13.7%) | | | |
| | 2,000,000 | | | ACE Securities Corp. Home Equity Loan Trust, Ser. 2006-OP1, Class A2C, 0.34%, due 4/25/36 | | | 1,304,568 | µ | |
| | 2,691,648 | | | ACE Securities Corp. Home Equity Loan Trust, Ser. 2006-ASP5, Class A2B, 0.32%, due 10/25/36 | | | 1,437,089 | µ | |
| | 3,425,000 | | | Ally Auto Receivables Trust, Ser. 2010-4, Class A3, 0.91%, due 11/17/14 | | | 3,429,685 | | |
| | 3,300,000 | | | Ally Auto Receivables Trust, Ser. 2011-1, Class A3, 1.38%, due 1/15/15 | | | 3,320,615 | | |
| | 1,753,000 | | | Bear Stearns Asset Backed Securities Trust, Ser. 2006-HE9, Class 1A2, 0.34%, due 11/25/36 | | | 784,569 | µ | |
| | 2,232,515 | | | Carrington Mortgage Loan Trust, Ser. 2006-OPT1, Class A3, 0.37%, due 2/25/36 | | | 1,842,133 | µ | |
| | 4,000,000 | | | Carrington Mortgage Loan Trust, Ser. 2007-FRE1, Class A3, 0.45%, due 2/25/37 | | | 1,716,040 | µ | |
| | 2,014,894 | | | Countrywide Asset-Backed Certificates Trust, Ser. 2006-3, Class 2A2, 0.37%, due 6/25/36 | | | 1,687,408 | µ | |
| | 1,157,180 | | | Countrywide Asset-Backed Certificates Trust, Ser. 2006-5, Class 2A2, 0.37%, due 8/25/36 | | | 984,273 | µ | |
| | 2,049,373 | | | Countrywide Asset-Backed Certificates Trust, Ser. 2006-6, Class 2A2, 0.37%, due 9/25/36 | | | 1,683,961 | µ | |
| | 8,325,000 | | | Ford Credit Auto Owner Trust, Ser. 2011-A, Class A3, 0.97%, due 1/15/15 | | | 8,350,781 | | |
| | 5,885,000 | | | Hyundai Auto Receivables Trust, Ser. 2011-A, Class A3, 1.16%, due 4/15/15 | | | 5,913,595 | | |
| | 366,050 | | | Impac Secured Assets Corp., Ser. 2006-3, Class A4, 0.28%, due 11/25/36 | | | 349,793 | µ | |
| | 2,042,761 | | | Knollwood CDO Ltd., Ser. 2006-2A, Class A2J, 0.70%, due 7/13/46 | | | 0 | #µ* | |
| | 82,829 | | | Merrill Lynch Mortgage Investors Trust, Ser. 2006-MLN1, Class A2A, 0.26%, due 7/25/37 | | | 81,140 | µ | |
| | 1,820,588 | | | Residential Asset Mortgage Products, Inc., Ser. 2006-RS1, Class AI2, 0.42%, due 1/25/36 | | | 1,287,689 | µ | |
| | 5,009,218 | | | Soundview Home Equity Loan Trust, Ser. 2006-OPT3, Class 2A3, 0.36%, due 6/25/36 | | | 3,814,164 | µ | |
| | | | | Total Asset-Backed Securities (Cost $46,929,931) | | | 37,987,503 | | |
| NUMBER OF SHARES | | | | | |
| Short-Term Investments (3.1%) | | | |
| | 8,711,376 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $8,711,376) | | | 8,711,376 | | |
| | | | | Total Investments (99.6%) (Cost $289,485,703) | | | 276,645,846 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (0.4%) | | | 991,179 | | |
| | | | | Total Net Assets (100.0%) | | $ | 277,637,025 | | |
See Notes to Schedule of Investments
8
Notes to Schedule of Investments Short Duration Bond Portfolio (Unaudited)
† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Advisers Management Trust Short Duration Bond Portfolio (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.
ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in debt securities is determined by Management primarily by obtaining valuations from independent pricing services based on readily available bid quotations, or if quotations are not available, by methods which include various considerations based on security type (generally Level 2 inputs). In addition to the consideration of yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions, the following is a description of other Level 2 inputs and related valuation techniques used by an independent pricing service to value certain types of debt securities of the Fund:
Corporate Debt Securities. Inputs used to value corporate debt securities generally include relative credit information, observed market movements, sector news, spread to the U.S. Treasury market, and other market information which may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data, such as market research publications, when available ("Other Market Information").
U.S. Treasury Securities. Inputs used to value U.S. Treasury securities generally include quotes from several inter-dealer brokers and Other Market Information.
Asset-Backed Securities and Mortgage-Backed Securities. Inputs used to value asset-backed securities and mortgage-backed securities generally include models that consider a number of factors, which may include the following: prepayment speeds, cash flows, spread adjustments and Other Market Information.
High Yield Securities. Inputs used to value high yield securities generally include a number of observations of equity and credit default swap curves related to the issuer and Other Market Information.
Financial futures contracts are determined by obtaining valuations from independent pricing services at the settlement price at market close.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in State Street Institutional Liquid Reserves Fund Institutional Class are valued using the fund's daily calculated net asset value per share.
See Notes to Financial Statements
9
Notes to Schedule of Investments Short Duration Bond Portfolio (Unaudited) (cont'd)
If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Advisers Management Trust's Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.
The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of June 30, 2011:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3§ | | Total | |
| Investments: | |
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government | | $ | — | | | $ | 10,911,165 | | | $ | — | | | $ | 10,911,165 | | |
| U.S. Government Agency Securities | | | — | | | | 11,980,380 | | | | — | | | | 11,980,380 | | |
| Mortgage-Backed Securities^ | | | — | | | | 123,633,523 | | | | — | | | | 123,633,523 | | |
| Corporate Debt Securities^ | | | — | | | | 83,421,899 | | | | — | | | | 83,421,899 | | |
| Asset-Backed Securities | | | — | | | | 37,987,503 | | | | 0 | | | | 37,987,503 | | |
| Short-Term Investments | | | — | | | | 8,711,376 | | | | — | | | | 8,711,376 | | |
| Total Investments | | $ | — | | | $ | 276,645,846 | | | $ | 0 | | | $ | 276,645,846 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
§ The following is a reconciliation between the beginning and ending balances of investments in which significant unobservable inputs (Level 3) were used in determining value:
Investments in Securities: | | Beginning balance, as of 1/1/11 | | Accrued discounts/ (premiums) | | Realized gain/loss and change in unrealized appreciation/ (depreciation) | | Purchases | | Sales | | Transfers in to Level 3 | | Transfers out of Level 3 | | Balance, as of 6/30/11 | | Net change in unrealized appreciation/ (depreciation) from investments still held as of 6/30/11 | |
Asset-Backed Securities | | $ | 0 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 0 | | | $ | 0 | | |
The Fund had no significant transfers between Levels 1 and 2 during the six months ended June 30, 2011.
The following is a summary, categorized by Level, of inputs used to value the Fund's derivatives as of June 30, 2011:
| | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Futures Contracts | | $ | 14,218 | | | $ | — | | | $ | — | | | $ | 14,218 | | |
See Notes to Financial Statements
10
Notes to Schedule of Investments Short Duration Bond Portfolio (Unaudited) (cont'd)
## At June 30, 2011, the cost of investments for U.S. federal income tax purposes was $290,725,114. Gross unrealized appreciation of investments was $1,633,382 and gross unrealized depreciation of investments was $15,712,650, resulting in net unrealized depreciation of $14,079,268, based on cost for U.S. federal income tax purposes.
# Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be illiquid and restricted. At June 30, 2011, these securities amounted to approximately $0 or 0.0% of net assets for Fund.
| Restricted Security | | Acquisition Date | | Acquisition Cost | | Acquisition Cost Percentage of Net Assets as of Acquisition Date | | Value as of June 30, 2011 | | Fair Value Percentage of Net Assets as of June 30, 2011 | |
Knollwood CDO Ltd., Ser. 2006-2A, Class A2J, 0.70%, due 7/13/46 | | 9/14/07 | | $ | 1,123,518 | | | | 0.2 | % | | $ | 0 | | | | 0.0 | % | |
ØØ All or a portion of this security is segregated in connection with obligations for financial futures contracts.
µ Floating rate securities are securities whose yields vary with a designated market index or market rate. These securities are shown at their current rates as of June 30, 2011 and their final maturity dates.
@ This debt is guaranteed under the Federal Deposit Insurance Corporation's ("FDIC") Temporary Liquidity Guarantee Program and is backed by the full faith and credit of the United States. At June 30, 2011, these securities amounted to $11,980,380 or 4.3% of net assets for the Fund.
ñ Restricted security subject to restrictions on resale under federal securities laws. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended, and have been deemed by the investment manager to be liquid. At June 30, 2011, these securities amounted to $29,866,703 or 10.8% of net assets for the Fund.
* Security did not produce income during the last twelve months.
See Notes to Financial Statements
11
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | SHORT DURATION BOND PORTFOLIO | |
| | | June 30, 2011 | |
| Assets | |
| Investments in securities, at value * (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 276,645,846 | | |
| Cash | | | 13,186 | | |
| Interest receivable | | | 1,524,203 | | |
| Receivable for securities sold | | | 3,198,259 | | |
| Receivable for Fund shares sold | | | 126,184 | | |
| Receivable for variation margin (Note A) | | | 547 | | |
| Prepaid expenses and other assets | | | 6,691 | | |
| Total Assets | | | 281,514,916 | | |
| Liabilities | |
| Payable for securities purchased | | | 2,926,240 | | |
| Payable for Fund shares redeemed | | | 682,286 | | |
| Payable to investment manager (Note B) | | | 57,452 | | |
| Payable to administrator (Note B) | | | 91,924 | | |
| Accrued expenses and other payables | | | 119,989 | | |
| Total Liabilities | | | 3,877,891 | | |
| Net Assets at value | | $ | 277,637,025 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 351,087,919 | | |
| Undistributed net investment income (loss) | | | 12,352,136 | | |
| Accumulated net realized gains (losses) on investments | | | (72,977,391 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | (12,825,639 | ) | |
| Net Assets at value | | $ | 277,637,025 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 24,510,575 | | |
| Net Asset Value, offering and redemption price per share | | $ | 11.33 | | |
| * Cost of Investments: | | | |
| Unaffiliated issuers | | $ | 289,485,703 | | |
See Notes to Financial Statements
12
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | SHORT DURATION BOND PORTFOLIO | |
| | | For the Six Months Ended June 30, 2011 | |
| Investment Income: | |
| Income (Note A): | |
| Interest income—unaffiliated issuers | | $ | 3,585,833 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 353,252 | | |
| Administration fees (Note B) | | | 565,204 | | |
| Audit fees | | | 21,826 | | |
| Custodian fees (Note A) | | | 48,035 | | |
| Insurance expense | | | 10,970 | | |
| Legal fees | | | 80,641 | | |
| Shareholder reports | | | 38,797 | | |
| Trustees' fees and expenses | | | 27,273 | | |
| Miscellaneous | | | 14,185 | | |
| Total expenses | | | 1,160,183 | | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (190 | ) | |
| Total net expenses | | | 1,159,993 | | |
| Net investment income (loss) | | $ | 2,425,840 | | |
| Realized and Unrealized Gain (Loss) on Investments (Note A) | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | (3,830,951 | ) | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 4,592,415 | | |
| Financial futures contracts | | | 14,218 | | |
| Net gain (loss) on investments | | | 775,682 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 3,201,522 | | |
See Notes to Financial Statements
13
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | SHORT DURATION BOND PORTFOLIO | |
| | | Six Months Ended June 30, 2011 | | Year Ended December 31, 2010 (Unaudited) | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | 2,425,840 | | | $ | 6,950,330 | | |
| Net realized gain (loss) on investments | | | (3,830,951 | ) | | | (7,542,158 | ) | |
| Change in net unrealized appreciation (depreciation) of investments | | | 4,606,633 | | | | 18,293,777 | | |
| Net increase (decrease) in net assets resulting from operations | | | 3,201,522 | | | | 17,701,949 | | |
| Distributions to Shareholders From (Note A): | |
| Net investment income | | | — | | | | (16,456,190 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold | | | 15,258,925 | | | | 50,066,723 | | |
| Proceeds from reinvestment of dividends and distributions | | | — | | | | 16,456,190 | | |
| Payments for shares redeemed | | | (28,131,979 | ) | | | (130,499,796 | ) | |
| Net increase (decrease) from Fund share transactions | | | (12,873,054 | ) | | | (63,976,883 | ) | |
| Net Increase (Decrease) in Net Assets | | | (9,671,532 | ) | | | (62,731,124 | ) | |
| Net Assets: | |
| Beginning of period | | | 287,308,557 | | | | 350,039,681 | | |
| End of period | | $ | 277,637,025 | | | $ | 287,308,557 | | |
| Undistributed net investment income (loss) at end of period | | $ | 12,352,136 | | | $ | 9,926,296 | | |
See Notes to Financial Statements
14
Notes to Financial Statements Short Duration Bond Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: The Fund is a separate operating series of Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware statutory trust organized pursuant to a Trust Instrument dated May 23, 1994. The Trust is currently comprised of ten separate operating series (each individually a "Series," and collectively the "Funds") each of which is diversified. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended. The Fund currently offers only Class I shares. The Board may establish additional series or classes of shares without the approval of shareholders.
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.
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time, 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. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. Interest income, including accretion of discount (adjusted for original issue discount, where applicable) is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations.
5 Income tax information: 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 requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. To the extent the Fund distributes substantially all of its earnings to shareholders, no federal income or excise tax provision is required.
The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2007-2009. As of June 30, 2011, the Fund did not have any unrecognized tax positions.
Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund as a whole. The Fund may also utilize earnings and
15
profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2010, permanent differences resulting primarily from different book and tax accounting for paydown gains and losses and amortization of bond premium were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund.
The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 was as follows:
| Distributions Paid From: | | | |
| Ordinary Income | | Total | | | |
| 2010 | | 2009 | | 2010 | | 2009 | | | |
| $ | 16,456,190 | | | $ | 26,930,221 | | | $ | 16,456,190 | | | $ | 26,930,221 | | | | |
As of December 31, 2010, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed Ordinary Income | | Unrealized Appreciation (Depreciation) | | Loss Carryforwards and Deferrals | | Total | |
| $ | 9,926,296 | | | $ | (19,565,585 | ) | | $ | (67,013,127 | ) | | $ | (76,652,416 | ) | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales, amortization of bond premium, post October loss deferrals and capital loss carryforwards.
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. Under current tax law, the use of these losses to offset future gains may be limited. As determined at December 31, 2010, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| Expiring in: | | | |
| 2012 | | 2013 | | 2014 | | 2015 | | 2016 | | 2017 | | 2018 | | | |
| $ | 2,710,070 | | | $ | 4,632,986 | | | $ | 3,820,726 | | | $ | 514,506 | | | $ | — | | | $ | 45,541,698 | | | $ | 7,896,656 | | | | |
On December 22, 2010, the Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") was enacted. The Act modernizes several of the federal income and excise tax provisions related to RICs, and, with certain exceptions, is effective for taxable years beginning after December 22, 2010. Among the changes made are changes to the capital loss carryforward rules allowing for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character. Capital loss carryforwards generated in taxable years beginning after effective date of the Act must be fully used before capital loss carryforwards generated in taxable years prior to effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.
Under current tax law, certain net capital and net foreign currency losses realized after October 31 within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the year ended December 31, 2010, the Fund elected to defer $1,896,485 of net capital losses arising between November 1, 2010 and December 31, 2010.
6 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in October). Income distributions and capital gain distributions to shareholders are recorded on the ex-date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.
16
8 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Series are charged to that Series. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., the Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly.
9 Dollar rolls: The Fund may enter into dollar roll transactions with respect to mortgage-backed securities. In a dollar roll transaction, the Fund sells securities for delivery in the current month and simultaneously agrees to repurchase substantially similar (i.e., same type and coupon) securities on a specified future date from the same party. During the period before the repurchase, the Fund foregoes principal and interest payments on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase (often referred to as the "drop"), as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls may increase fluctuations in the Fund's NAV and may be viewed as a form of leverage. There is a risk that the counterparty will be unable or unwilling to complete the transaction as scheduled, which may result in losses to the Fund.
10 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.
11 Derivative instruments: During the six months ended June 30, 2011, the Fund's use of derivatives was limited to financial futures contracts. The Fund has adopted the provisions of ASC 815 "Derivatives and Hedging" ("ASC 815"). The disclosure requirements of ASC 815 distinguish between derivatives that qualify for hedge accounting and those that do not. Because investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of Operations, they do not qualify for hedge accounting. Accordingly, even though the Fund's investments in derivatives may represent economic hedges, they are considered non-hedge transactions for purposes of this disclosure.
Financial futures contracts: At the time the Fund enters into a financial futures contract, it is required to deposit with the futures commission merchant a specified amount of cash or liquid securities, known as "initial margin," which is a percentage of the value of the financial futures contract being traded that is set by the exchange upon which the futures contract is 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 Fund 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 Fund recognizes a gain or loss. Risks of entering into futures contracts include the possibility there may be an illiquid market, possibly at a time of rapidly declining prices, and/or a change in the value of the contract may not correlate with changes in the value of the underlying securities. Futures have minimal counterparty risk to the Fund because the exchange's clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
17
For U.S. federal income tax purposes, the futures transactions undertaken by the Fund may cause the Fund to recognize gains or losses from marking contracts 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 Fund. Also, the Fund's losses on transactions involving futures contracts may be deferred rather than being taken into account currently in calculating the Fund's taxable income.
During the six months ended June 30, 2011, the Fund entered into financial futures contracts for economic hedging purposes, including as a maturity or duration management device. At June 30, 2011, open positions in financial futures contracts were:
| Expiration | | Open Contracts | | Position | | Unrealized Appreciation | |
| September 2011 | | 35 U.S. Treasury Notes, 2 Year | | Short | | $ | 14,218 | | |
During the six months ended June 30, 2011, the average notional amount of financial futures contracts was ($2,333,333).
At June 30, 2011, the Fund had deposited $93,183 in Fannie Mae Whole Loan, 11.33%, due 6/25/44, to cover margin requirements on open financial futures contracts.
At June 30, 2011, the Fund had the following derivatives (which did not qualify as hedging instruments under ASC 815), grouped by primary risk exposure:
Asset Derivatives
| | | Interest Rate Risk | |
Futures Contracts(1) | | $ | 14,218 | | |
| Total Value | | $ | 14,218 | | |
(1) Reflected in the Statement of Assets and Liabilities; included under the caption "Net unrealized appreciation (depreciation) in value of investments," and is the cumulative appreciation (depreciation) of futures contracts as of June 30, 2011 as shown in "Futures Contracts" above. The outstanding variation margin as of June 30, 2011, if any, is reflected in the Statement of Assets and Liabilities under the caption "Receivable/Payable for variation margin."
The impact of the use of these derivative instruments on the Statement of Operations during the six months ended June 30, 2011, was as follows:
Realized Gain (Loss)
| | | Interest Rate Risk | | Statement of Operations Location | |
| Futures Contracts | | $ | — | | | Net realized | |
| Total Realized Gain (Loss) | | $ | — | | | gain (loss) on financial futures contracts | |
Change in Appreciation (Depreciation)
| | | Interest Rate Risk | | | |
| Futures Contracts | | $ | 14,218 | | | Change in net unrealized | |
Total Change in Appreciation (Depreciation) | | $ | 14,218 | | | appreciation (depreciation) in value of financial futures contracts | |
12 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In
18
addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.
13 Expense offset arrangement: The Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended June 30, 2011, the impact of this arrangement was a reduction of expenses of $190.
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 and are also offered directly to certain qualified pension and retirement plans.
The Fund retains 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 0.25% of the first $500 million of the Fund's 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. As sub-adviser Neuberger Berman Fixed Income LLC ("NBFI") receives a monthly fee paid by Management. The Fund does not pay a fee directly to NBFI for such services.
The Fund retains Management as its administrator under an Administration Agreement. The Fund pays Management an administration fee at the annual rate of 0.40% of its average daily net assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under this agreement.
The Board adopted a non-fee distribution plan for the Fund.
Management has contractually undertaken through December 31, 2014 to forgo current payment of fees and/or reimburse the Fund for its operating expenses (excluding fees payable to Management, 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, 2011, no reimbursement to the Fund was required. The Fund has agreed to repay Management through December 31, 2017 for fees and expenses foregone and/or 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 or waived fees. During the six months ended June 30, 2011, there was no repayment to Management under its contractual expense limitation. At June 30, 2011, the Fund had no contingent liability to Management under its contractual expense limitation.
NBFI, sub-adviser to the Fund, 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 NBFI and/or Management.
Management and NBFI are indirect subsidiaries of Neuberger Berman Group LLC ("NBG," and together with its consolidated subsidiaries "NB Group"). The voting equity of NBG is owned by NBSH Acquisition, LLC ("NBSH") and Lehman Brothers Holdings Inc. ("LBHI"). NBSH, which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees and senior professionals, owns approximately 52% of the voting equity of NBG, and LBHI, which is a debtor in possession under chapter 11 of the U.S. Bankruptcy Code, owns the remaining 48% of the voting equity. LBHI's bankruptcy proceedings have had no material impact on the operations of the Fund. Management and NBFI continue to operate in the ordinary course of business as the investment manager and sub-adviser, respectively, of the Fund.
19
Note C—Securities Transactions:
Cost of purchases and proceeds of sales and maturities of long-term securities (excluding short-term securities and financial futures contracts) for the six months ended June 30, 2011 were as follows:
Purchases of U.S. Government and Agency Obligations | | Purchases excluding U.S. Government and Agency Obligations | | Sales and Maturities of U.S. Government and Agency Obligations | | Sales and Maturities excluding U.S. Government and Agency Obligations | |
| $ | 65,676,229 | | | $ | 70,116,822 | | | $ | 105,544,964 | | | $ | 51,144,659 | | |
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2011 and for the year ended December 31, 2010 was as follows:
| | | For the Six Months Ended June 30, 2011 | | For the Year Ended December 31, 2010 | |
| Shares Sold | | | 1,354,218 | | | | 4,345,642 | | |
| Shares Issued on Reinvestment of Dividends and Distributions | | | — | | | | 1,462,773 | | |
| Shares Redeemed | | | (2,490,947 | ) | | | (11,347,290 | ) | |
| Total | | | (1,136,729 | ) | | | (5,538,875 | ) | |
Note E—Line of Credit:
At June 30, 2011, the Fund was a participant in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.125% per annum of the available line of credit is charged, of which each participating 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. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $200,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at June 30, 2011. During the six months ended June 30, 2011, the Fund did not utilize this line of credit.
Note F—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
20
Financial Highlights
Short Duration Bond Portfolio
The following table includes selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements.
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 11.20 | | | $ | 11.22 | | | $ | 10.71 | | | $ | 13.00 | | | $ | 12.76 | | | $ | 12.64 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .10 | | | | .24 | | | | .43 | | | | .53 | | | | .59 | | | | .51 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .03 | | | | .36 | | | | .98 | | | | (2.23 | ) | | | .02 | | | | .02 | | |
| Total From Investment Operations | | | .13 | | | | .60 | | | | 1.41 | | | | (1.70 | ) | | | .61 | | | | .53 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.62 | ) | | | (.90 | ) | | | (.59 | ) | | | (.37 | ) | | | (.41 | ) | |
| Net Asset Value, End of Period | | $ | 11.33 | | | $ | 11.20 | | | $ | 11.22 | | | $ | 10.71 | | | $ | 13.00 | | | $ | 12.76 | | |
Total Return†† | | | 1.16 | %** | | | 5.28 | % | | | 13.33 | % | | | (13.43 | )% | | | 4.77 | % | | | 4.20 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 277.6 | | | $ | 287.3 | | | $ | 350.0 | | | $ | 445.5 | | | $ | 623.0 | | | $ | 418.7 | | |
Ratio of Gross Expenses to Average Net Assets# | | | .82 | %* | | | .81 | % | | | .79 | % | | | .74 | % | | | .73 | % | | | .75 | % | |
Ratio of Net Expenses to Average Net Assets | | | .82 | %* | | | .81 | % | | | .79 | %§ | | | .74 | % | | | .73 | % | | | .75 | %§ | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | 1.72 | %* | | | 2.07 | % | | | 3.87 | % | | | 4.35 | % | | | 4.51 | % | | | 3.97 | % | |
| Portfolio Turnover Rate | | | 49 | %** | | | 70 | % | | | 47 | % | | | 46 | % | | | 69 | % | | | 86 | % | |
See Notes to Financial Highlights
21
Notes to Financial Highlights Short Duration Bond Portfolio
(Unaudited)
†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period and assumes income dividends and other distributions, if any, were reinvested. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. 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 waived 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. For the year ended December 31, 2006, Management reimbursed the Fund for losses incurred in connection with the disposition of foreign currency contracts, which had no impact on total return.
# The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.
‡ Calculated based on the average number of shares outstanding during each fiscal period.
§ After utilization of the Line of Credit (2006) and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such actions, and the Fund had not utilized the Line of Credit, the annualized ratios of net expenses to average daily net assets would have been:
| | | Year Ended December 31, | |
| | | 2009 | | 2008 | | 2007 | | 2006 | |
| | | | | | .79 | % | | | — | | | | — | | | | .75 | % | |
* Annualized.
** Not annualized.
22
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 1-800-877-9700 (toll-free) and on the website of the Securities and Exchange Commission, at www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available, without charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings for the Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll free).
23
Neuberger Berman
Advisers Management Trust
Small Cap Growth Portfolio
S Class Shares
Semi-Annual Report
June 30, 2011
D012 08/11
Small Cap Growth Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Small Cap Growth Portfolio provided an 11.01% return for the six months ended June 30, 2011 and outperformed its benchmark, the Russell 2000® Growth Index, which posted an 8.59% return.
In the first half of 2011, the market saw a mix of performance across the equity spectrum with an ongoing rotation of "risk on" and "risk off" investor sentiment. We are encouraged by the market's and economic recovery's resilience in overcoming turmoil in the Middle East, the crisis in Japan and the end of QE2. However, economic data continue to show signs of slowing growth, and the risk of contagion from Europe's debt issues, China's potential economic slowdown, and political posturing in advance of the 2012 election has perpetuated an aura of pessimism around the recovery. Persistent negative consumer sentiment—driven by unemployment and housing concerns and commodity price inflation—is a negative as well, in contrast to cautiously optimistic sentiment from corporations that are flush with cash and generating positive financial results.
After facing headwinds related to our investment style category during 2009 and 2010, the Portfolio benefited this period from a market shift in favor of the higher quality segment of the small-cap growth market, which is typically characterized by higher market capitalization, higher priced and lower beta stocks (the latter term referring to a tendency to trade with the overall market). Faced with the reality of subdued economic growth, investors preferred the high-quality, fundamentally strong organic growers we focus on over the lower-quality and more speculative names that have led since the market's lows in March of 2009. While we benefited from this quality shift, the largest positive effect on performance came from stock selection.
Following the annual rebalancing of its benchmark in June, the Portfolio was overweighted, relative to the benchmark, in Consumer Discretionary, Consumer Staples, Health Care and Information Technology (IT), and underweighted in Energy and Financials. From an attribution standpoint, absolute returns were positive across all sectors. On a relative basis, Industrials, Health Care and Financials were the top contributors to performance, while Consumer Discretionary and IT slightly detracted.
By far the most positive sectors for the Portfolio this period were Health Care and Industrials. Within those sectors, several longer-term holdings outperformed significantly. In Industrials, the largest positive contributors were HEICO and Polypore. HEICO, a replacement part manufacturer, continues to benefit from a recovery in the aerospace industry. Polypore's battery membrane products have benefitted from the growth of smart phones and tablet computers. In Health Care, Zoll Medical has a core defibrillator business that continues to perform well and their development pipeline is strong, with products such as a "life vest" monitor for patients awaiting heart surgery. SXC Health Solutions, a pharmacy benefits manager, was also significantly additive. Elsewhere within the Portfolio, positive contributions came from Fortinet, an IT holding specializing in network security, and Tractor Supply, a retailer within the Consumer Discretionary sector focused on hobby farming.
Looking at our 10 top contributors versus the 10 most significant detractors this period, the impact to performance from stock picking becomes clear, with the benefit from the contributors being more than double the drag from detractors. Significant disappointments this period included Salix Pharmaceuticals, which we sold on negative news on a gastrointestinal product, and Magnum Hunter, a gas and oil name that underperformed and was sold as the potential of several current drilling programs was questioned. LogMeIn, SFN Group and Impax Labs were also detrimental this period and were sold.
The Portfolio did not experience significant merger and acquisition activity during the period, with only two holdings, Global Defense Technology and Savvis, receiving buy-out offers. We expect to see M&A activity continue as companies continue to deploy their strong cash positions toward future competitive advantages.
Over the past six months, we gradually added to our Health Care allocation, finding good valuations, catalysts for outperformance, and continued solid earnings. Thematically, we have continued to invest in health care equipment innovators and companies involved in cost containment. Other themes have included high growth retailing companies,
1
such as Tractor Supply, Peet's Coffee & Tea, Sally Beauty and PriceSmart, a warehouse club with international exposure. Within IT, cloud computing has been a significant theme, with Keynote, Aruba and Cavium as examples. Fortinet, LivePerson and TIBCO have been representatives of our database and security software theme. Our thematic positions have been based on broadly improving data, information from company meetings, and the positive growth trends and catalysts that we have identified across various markets. Other themes have included human resources and talent management, smart phones and tablet computers.
We continue to focus on identifying high-quality growth companies with innovative and new products and services, global aspirations, exceptional top-line growth, and the management teams, strategic positions, operating models, and balance sheet strength needed to succeed in a competitive global economy. We are optimistic that the higher quality biases, favoring active management and bottom-up fundamental-driven stock selection, that have driven performance this period are sustainable. We believe quality tends to shine when investors are discriminating and mindful of risk. Given the potential for a future scarcity of strong earnings and revenue growth and the prevailing headwinds in the market, we remain confident that now is the time to embrace higher quality.
Sincerely,
David H. Burshtan
Portfolio Manager
The risks involved in seeking capital appreciation from investments primarily in companies with small-market capitalization are set forth in the prospectus and statement of additional information.
Small-capitalization stocks are more vulnerable to financial risks and other risks than larger stocks. They are generally less liquid than larger stocks, so their market prices tend to be more volatile.
The composition, industries and holdings of the Portfolio are subject to change. The AMT Small Cap Growth Portfolio is invested in a wide array of stocks and no single holding makes up a significant portion of the Portfolio's total assets.
2
Small Cap Growth Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 17.4 | % | |
| Consumer Staples | | | 4.3 | | |
| Energy | | | 6.7 | | |
| Financials | | | 5.3 | | |
| Health Care | | | 19.9 | | |
| Industrials | | | 14.3 | | |
| Information Technology | | | 26.1 | | |
| Materials | | | 4.4 | | |
| Short-Term Investments | | | 1.6 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS1
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/11 | |
| | | Date | | 06/30/11 | | 1 Year | | 5 Years | | Life of Fund* | |
Small Cap Growth Portfolio Class S | | | 7/12/2002 | | | | 11.01 | % | | | 41.33 | % | | | 0.29 | % | | | 4.55 | % | |
Russell 2000® Growth Index2 | | | | | | | 8.59 | % | | | 43.50 | % | | | 5.79 | % | | | 10.00 | % | |
Russell 2000® Index2 | | | | | | | 6.21 | % | | | 37.41 | % | | | 4.08 | % | | | 9.35 | % | |
Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit https://www.nb.com.
* Index returns are as of the inception date 07/12/2002.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2010 was 2.28% for Class S shares (prior to any fee waivers and/or expense reimbursements). The expense ratio net of waivers and/or reimbursements was 1.41% for Class S shares. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Portfolio through 12/31/2014.
3
Endnotes
1 "Total Return" includes reinvestment of all income dividends and distributions. Results represent past performance and do not indicate future results. The value of an investment in the Portfolio and the return on the investment both will fluctuate, and redemption proceeds may be higher or lower than an investor's original cost. The performance information does not reflect fees and expenses of the variable annuity and variable life insurance policies or the qualified pension and retirement plans whose proceeds are invested in the Portfolio. Neuberger Berman Management LLC ("NBM LLC") has agreed to absorb certain expenses of the AMT Portfolios, including the Portfolio. Without this arrangement, which is subject to change, the total returns of the Portfolio may have been less.
2 The Russell 2000® Growth Index measures the performance of those Russell 2000® Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index is an unmanaged index consisting of the securities of the 2000 issuers having the smallest capitalization in the Russell 3000® Index, representing approximately 10% of the Russell 3000 total market capitalization. As of the latest reconstitution the smallest company's market capitalization was roughly $130 million. 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 NBM LLC and include reinvestment of all income dividends and distributions. The Fund may invest in securities not included in the above-described indices and may not invest in all securities included in the above-described indices.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not NBM LLC's own projections, and they may or may not be realized. In addition, any revision to a forecast could affect the market price of a security. By quoting them herein, NBM LLC does not offer an opinion as to the accuracy of and does not guarantee these forecasted numbers.
The investments for the Portfolio are managed by the same portfolio manager(s) who manage(s) 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.
The composition, industries and holdings of the Portfolio are subject to change.
Shares of the separate AMT Portfolios are not available to the general public. Shares of this Portfolio 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.
Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the AMT Portfolios. This report is prepared for the general information of shareholders and is not an offer of shares of the AMT Portfolios. Shares of the AMT Portfolios are sold only through the currently effective prospectuses, which must precede or accompany this report.
The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2011 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses
This table is designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2011 and held for the entire period. The table illustrates the fund's costs in two ways:
| Actual Expenses and Performance: | | The first section of the table provides information about actual account values and actual expenses in dollars, based on the fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period. | |
| |
Hypothetical Example for Comparison Purposes: | | The second section of the table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. | |
| |
Please note that the expenses in the table are meant to highlight your ongoing costs only. The table and expense example do not include any transaction costs, such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan. Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Expense Information as of 6/30/11 (Unaudited)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SMALL CAP GROWTH PORTFOLIO
| Actual | | Beginning Account Value 1/1/11 | | Ending Account Value 6/30/11 | | Expenses Paid During the Period* 1/1/11 – 6/30/11 | |
| Class S | | $ | 1,000.00 | | | $ | 1,110.10 | | | $ | 7.32 | | |
| Hypothetical (5% annual return before expenses)** | |
| Class S | | $ | 1,000.00 | | | $ | 1,017.85 | | | $ | 7.00 | | |
* Expenses are equal to the annualized expense ratio of 1.40%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent half year divided by 365.
5
Schedule of Investments Small Cap Growth Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (100.3%) | | | |
| Aerospace & Defense (3.3%) | | | |
| | 11,943 | | | HEICO Corp. | | $ | 653,760 | | |
| Air Freight & Logistics (1.2%) | | | |
| | 6,200 | | | Hub Group Class A | | | 233,492 | * | |
| Capital Markets (1.4%) | | | |
| | 18,300 | | | HFF Inc. Class A | | | 276,147 | * | |
| Chemicals (1.4%) | | | |
| | 20,700 | | | Zagg Inc. | | | 277,380 | * | |
| Commercial Banks (1.1%) | | | |
| | 8,600 | | | Texas Capital Bancshares | | | 222,138 | * | |
| Commercial Services & Supplies (1.3%) | | | |
| | 13,100 | | | Interface, Inc. Class A | | | 253,747 | | |
| Communications Equipment (2.7%) | | | |
| | 10,300 | | | Aruba Networks | | | 304,365 | * | |
| | 5,800 | | | Riverbed Technology | | | 229,622 | * | |
| | | | 533,987 | | |
| Consumer Finance (1.7%) | | | |
| | 8,100 | | | First Cash Financial Services | | | 340,119 | * | |
| Diversified Consumer Services (1.3%) | | | |
| | 5,700 | | | Steiner Leisure | | | 260,376 | * | |
| Diversified Financial Services (1.2%) | | | |
| | 2,700 | | | Portfolio Recovery Associates | | | 228,933 | * | |
| Electrical Equipment (1.7%) | | | |
| | 4,900 | | | Polypore International | | | 332,416 | * | |
Electronic Equipment, Instruments & Components (0.7%) | | | |
| | 3,300 | | | DTS, Inc. | | | 133,815 | * | |
| Energy Equipment & Services (3.9%) | | | |
| | 2,000 | | | CARBO Ceramics | | | 325,900 | | |
| | 6,200 | | | Complete Production Services | | | 206,832 | * | |
| | 6,300 | | | Superior Energy Services | | | 233,982 | * | |
| | | | 766,714 | | |
| Food & Staples Retailing (1.8%) | | | |
| | 6,700 | | | PriceSmart, Inc. | | | 343,241 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Food Products (2.6%) | | | |
| | 4,100 | | | Diamond Foods | | $ | 312,994 | | |
| | 6,100 | | | Hain Celestial Group | | | 203,496 | * | |
| | | | 516,490 | | |
| Health Care Equipment & Supplies (8.0%) | | | |
| | 6,100 | | | Hill-Rom Holdings | | | 280,844 | | |
| | 6,400 | | | Neogen Corporation | | | 289,344 | * | |
| | 5,400 | | | Sirona Dental Systems | | | 286,740 | * | |
| | 13,200 | | | Volcano Corp. | | | 426,228 | * | |
| | 5,200 | | | Zoll Medical | | | 294,632 | * | |
| | | | 1,577,788 | | |
| Health Care Providers & Services (6.9%) | | | |
| | 9,300 | | | Accretive Health | | | 267,747 | * | |
| | 3,100 | | | Air Methods | | | 231,694 | * | |
| | 2,700 | | | HMS Holdings | | | 207,549 | * | |
| | 6,700 | | | IPC The Hospitalist | | | 310,545 | * | |
| | 13,900 | | | U.S. Physical Therapy | | | 343,747 | | |
| | | | 1,361,282 | | |
| Health Care Technology (3.9%) | | | |
| | 3,400 | | | Computer Programs and Systems | | | 215,832 | | |
| | 3,000 | | | Quality Systems | | | 261,900 | | |
| | 4,900 | | | SXC Health Solutions | | | 288,708 | * | |
| | | | 766,440 | | |
| Hotels, Restaurants & Leisure (3.6%) | | | |
| | 22,200 | | | Orient-Express Hotels Class A | | | 238,650 | * | |
| | 1,800 | | | Panera Bread Class A | | | 226,188 | * | |
| | 4,200 | | | Peet's Coffee & Tea | | | 242,340 | * | |
| | | | 707,178 | | |
| Internet & Catalog Retail (1.4%) | | | |
| | 4,600 | | | Shutterfly, Inc. | | | 264,132 | * | |
| Internet Software & Services (7.2%) | | | |
| | 21,100 | | | Keynote Systems | | | 456,393 | | |
| | 28,600 | | | LivePerson, Inc. | | | 404,404 | * | |
| | 5,600 | | | Rackspace Hosting | | | 239,344 | * | |
| | 18,000 | | | Velti PLC | | | 304,380 | * | |
| | | | 1,404,521 | | |
| IT Services (3.4%) | | | |
| | 11,900 | | | Echo Global Logistics | | | 211,225 | * | |
| | 10,600 | | | ServiceSource International | | | 235,532 | * | |
| | 4,400 | | | Wright Express | | | 229,108 | * | |
| | | | 675,865 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| Leisure Equipment & Products (1.0%) | | | |
| | 9,900 | | | Brunswick Corp. | | $ | 201,960 | | |
| Machinery (3.0%) | | | |
| | 9,000 | | | Actuant Corp. Class A | | | 241,470 | | |
| | 5,000 | | | Altra Holdings | | | 119,950 | * | |
| | 6,975 | | | Gorman-Rupp | | | 229,756 | | |
| | | | 591,176 | | |
| Media (1.4%) | | | |
| | 15,500 | | | MDC Partners Class A | | | 279,930 | | |
| Metals & Mining (3.1%) | | | |
| | 12,500 | | | Globe Specialty Metals | | | 280,250 | | |
| | 13,800 | | | Worthington Industries | | | 318,780 | | |
| | | | 599,030 | | |
| Oil, Gas & Consumable Fuels (3.5%) | | | |
| | 2,000 | | | Berry Petroleum Class A | | | 106,260 | | |
| | 7,300 | | | Brigham Exploration | | | 218,489 | * | |
| | 7,000 | | | Rosetta Resources | | | 360,780 | * | |
| | | | 685,529 | | |
| Pharmaceuticals (1.5%) | | | |
| | 7,900 | | | Medicis Pharmaceutical Class A | | | 301,543 | | |
| Road & Rail (1.4%) | | | |
| | 7,500 | | | Old Dominion Freight Line | | | 279,750 | * | |
Semiconductors & Semiconductor Equipment (1.3%) | | | |
| | 5,900 | | | Cavium Inc. | | | 257,181 | * | |
| Software (11.2%) | | | |
| | 700 | | | BroadSoft Inc. | | | 26,691 | * | |
| | 9,800 | | | Fortinet Inc. | | | 267,442 | * | |
| | 7,300 | | | Kenexa Corp. | | | 175,054 | * | |
| | 7,200 | | | QLIK Technologies | | | 245,232 | * | |
| | 10,100 | | | SS&C Technologies Holdings | | | 200,687 | * | |
| | 6,100 | | | Taleo Corp. Class A | | | 225,883 | * | |
| | 12,800 | | | TIBCO Software | | | 371,456 | * | |
| | 12,800 | | | Ultimate Software Group | | | 696,704 | * | |
| | | | 2,209,149 | | |
| Specialty Retail (7.5%) | | | |
| | 5,900 | | | GNC Acquisition Holdings Class A | | | 128,679 | * | |
| | 7,000 | | | Hibbett Sports | | | 284,970 | * | |
| | 19,500 | | | Sally Beauty Holdings | | | 333,450 | * | |
| | 6,600 | | | Tractor Supply | | | 441,408 | | |
| | 6,300 | | | Vitamin Shoppe | | | 288,288 | * | |
| | | | 1,476,795 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Textiles, Apparel & Luxury Goods (1.2%) | | | |
| | 2,700 | | | Deckers Outdoor | | $ | 237,978 | * | |
| Trading Companies & Distributors (2.5%) | | | |
| | 6,900 | | | Kaman Corp. | | | 244,743 | | |
| | 3,800 | | | MSC Industrial Direct Class A | | | 251,978 | | |
| | | | 496,721 | | |
| | | | | Total Common Stocks (Cost $16,545,675) | | | 19,746,703 | | |
| Short-Term Investments (1.6%) | | | |
| | 308,899 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $308,899) | | | 308,899 | | |
| | | | | Total Investments (101.9%) (Cost $16,854,574) | | | 20,055,602 | ## | |
| | | | | Liabilities, less cash, receivables and other assets [(1.9%)] | | | (368,048 | ) | |
| | | | | Total Net Assets (100.0%) | | $ | 19,687,554 | | |
See Notes to Schedule of Investments
7
Notes to Schedule of Investments Small Cap Growth Portfolio (Unaudited)
† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Advisers Management Trust Small Cap Growth Portfolio (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.
ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in equity securities, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted in active markets (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by the Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in State Street Institutional Liquid Reserves Fund Institutional Class are valued using the fund's daily calculated net asset value per share.
If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Advisers Management Trust's Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding.
The value of the Fund's investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time. The
See Notes to Financial Statements
8
Notes to Schedule of Investments Small Cap Growth Portfolio (Unaudited) (cont'd)
Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities. In this event, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.
The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of June 30, 2011:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 19,746,703 | | | $ | — | | | $ | — | | | $ | 19,746,703 | | |
| Short-Term Investments | | | — | | | | 308,899 | | | | — | | | | 308,899 | | |
| Total Investments | | $ | 19,746,703 | | | $ | 308,899 | | | $ | — | | | $ | 20,055,602 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no significant transfers between Levels 1 and 2 during the six months ended June 30, 2011.
## At June 30, 2011, the cost of investments for U.S. federal income tax purposes was $16,996,748. Gross unrealized appreciation of investments was $3,143,999 and gross unrealized depreciation of investments was $85,145, resulting in net unrealized appreciation of $3,058,854, based on cost for U.S. federal income tax purposes.
* Security did not produce income during the last twelve months.
See Notes to Financial Statements
9
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | SMALL CAP GROWTH PORTFOLIO | |
| | | June 30, 2011 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 20,055,602 | | |
| Dividends and interest receivable | | | 2,583 | | |
| Receivable for securities sold | | | 291,294 | | |
| Receivable for Fund shares sold | | | 18,501 | | |
| Receivable from Management—net (Note B) | | | 6,841 | | |
| Prepaid expenses and other assets | | | 498 | | |
| Total Assets | | | 20,375,319 | | |
| Liabilities | |
| Payable for securities purchased | | | 628,940 | | |
| Payable for Fund shares redeemed | | | 10,024 | | |
| Payable to investment manager (Note B) | | | 14,504 | | |
| Accrued expenses and other payables | | | 34,297 | | |
| Total Liabilities | | | 687,765 | | |
| Net Assets at value | | $ | 19,687,554 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 20,916,593 | | |
| Undistributed net investment income (loss) | | | (123,740 | ) | |
| Accumulated net realized gains (losses) on investments | | | (4,306,327 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 3,201,028 | | |
| Net Assets at value | | $ | 19,687,554 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 1,446,092 | | |
| Net Asset Value, offering and redemption price per share | | $ | 13.61 | | |
| * Cost of Investments: | | | |
| Unaffiliated issuers | | $ | 16,854,574 | | |
See Notes to Financial Statements
10
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | SMALL CAP GROWTH PORTFOLIO | |
| | | For the Six Months Ended June 30, 2011 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 24,226 | | |
| Interest income—unaffiliated issuers | | | 656 | | |
| Foreign taxes withheld | | | (481 | ) | |
| Total income | | $ | 24,401 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 89,942 | | |
| Administration fees (Note B) | | | 31,744 | | |
| Distribution fees (Note B) | | | 26,453 | | |
| Audit fees | | | 20,809 | | |
| Custodian fees (Note A) | | | 10,146 | | |
| Insurance expense | | | 638 | | |
| Legal fees | | | 5,689 | | |
| Shareholder reports | | | 10,100 | | |
| Trustees' fees and expenses | | | 27,273 | | |
| Miscellaneous | | | 1,788 | | |
| Total expenses | | | 224,582 | | |
| Expenses reimbursed by Management (Note B) | | | (76,438 | ) | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (3 | ) | |
| Total net expenses | | | 148,141 | | |
| Net investment income (loss) | | $ | (123,740 | ) | |
| Realized and Unrealized Gain (Loss) on Investments (Note A) | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 2,663,230 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | (791,579 | ) | |
| Net gain (loss) on investments | | | 1,871,651 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 1,747,911 | | |
See Notes to Financial Statements
11
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | SMALL CAP GROWTH PORTFOLIO | |
| | | Six Months Ended June 30, 2011 (Unaudited) | | Year Ended December 31, 2010 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | (123,740 | ) | | $ | (182,947 | ) | |
| Net realized gain (loss) on investments | | | 2,663,230 | | | | 2,393,863 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | (791,579 | ) | | | 424,741 | | |
| Net increase (decrease) in net assets resulting from operations | | | 1,747,911 | | | | 2,635,657 | | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold | | | 10,519,031 | | | | 10,057,048 | | |
| Payments for shares redeemed | | | (13,562,744 | ) | | | (7,722,546 | ) | |
| Net increase (decrease) from Fund share transactions | | | (3,043,713 | ) | | | 2,334,502 | | |
| Net Increase (Decrease) in Net Assets | | | (1,295,802 | ) | | | 4,970,159 | | |
| Net Assets: | |
| Beginning of period | | | 20,983,356 | | | | 16,013,197 | | |
| End of period | | $ | 19,687,554 | | | $ | 20,983,356 | | |
| Undistributed net investment income (loss) at end of period | | $ | (123,740 | ) | | $ | — | | |
See Notes to Financial Statements
12
Notes to Financial Statements Small Cap Growth Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: The Fund is a separate operating series of Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware statutory trust organized pursuant to a Trust Instrument dated May 23, 1994. The Trust is currently comprised of ten separate operating series (each individually a "Series," and collectively the "Funds") each of which is diversified. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended. The Fund currently offers only Class S shares. The Board may establish additional series or classes of shares without the approval of shareholders.
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.
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time, 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. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. 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, if any, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations. Included in net realized gain (loss) on investments are proceeds from the settlements of class action litigation in which the Fund participated as a class member. The amount of such proceeds for the six months ended June 30, 2011 was $440.
5 Income tax information: 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 requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. To the extent the Fund distributes substantially all of its earnings to shareholders, no federal income or excise tax provision is required.
The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2007-2009. As of June 30, 2011, the Fund did not have any unrecognized tax positions.
Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to
13
differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund as a whole. The Fund may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2010, permanent differences resulting primarily from different book and tax accounting for net operating losses were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund.
As of December 31, 2010, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed Long-Term Gain | | Unrealized Appreciation (Depreciation) | | Loss Carryforwards and Deferrals | | Total | |
| $ | — | | | $ | 3,884,277 | | | $ | (6,861,227 | ) | | $ | (2,976,950 | ) | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales and capital loss carryforwards.
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. Under current tax law, the use of these losses to offset future gains may be limited. As determined at December 31, 2010, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| Expiring in: | |
| 2016 | | 2017 | |
| | $2,819,425 | | | $ | 4,041,802 | | |
During the year ended December 31, 2010, the Fund utilized capital loss carryforwards of $2,154,792.
On December 22, 2010, the Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") was enacted. The Act modernizes several of the federal income and excise tax provisions related to RICs, and, with certain exceptions, is effective for taxable years beginning after December 22, 2010. Among the changes made are changes to the capital loss carryforward rules allowing for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character. Capital loss carryforwards generated in taxable years beginning after effective date of the Act must be fully used before capital loss carryforwards generated in taxable years prior to effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.
6 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in October). Income distributions and capital gain distributions to shareholders are recorded on the ex-date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Series are charged to that Series. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., the Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the
14
]
complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly.
9 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.
10 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.
11 Expense offset arrangement: The Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended June 30, 2011, the impact of this arrangement was a reduction of expenses of $3.
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 and are also offered directly to certain qualified pension and retirement plans.
The Fund retains 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 0.85% of the first $500 million of the Fund's average daily net assets, 0.825% of the next $500 million, 0.80% of the next $500 million, 0.775% of the next $500 million, 0.75% of the next $500 million, and 0.725% of average daily net assets in excess of $2.5 billion.
The Fund retains Management as its administrator under an Administration Agreement. The Fund pays Management an administration fee at the annual rate of 0.30% of its average daily net assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under this agreement.
Management acts as agent in arranging for the sale of Fund shares without commission and bears advertising and promotion expenses. The Board has adopted a distribution plan (the "Plan") with respect to the Fund, pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that, as compensation for administrative and other services provided to the Fund, Management's activities and expenses related to the sale and distribution of the Fund's shares, and ongoing services provided to investors in the Fund, Management receives from the Fund a fee at the annual rate of 0.25% of the Fund's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for the Fund and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by the Fund during any year could have been more or less than the cost of distribution and other services provided to the Fund. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plan complies with those rules.
Management has contractually undertaken through December 31, 2014 to forgo current payment of fees and/or reimburse the Fund for its operating expenses (including fees payable to Management but excluding interest, taxes,
15
brokerage commissions, extraordinary expenses, and transaction costs) ("Operating Expenses") which exceed, in the aggregate, 1.40% per annum of the Fund's average daily net assets (the "Expense Limitation"). For the six months ended June 30, 2011, such excess expenses amounted to $76,438. The Fund has agreed to repay Management through December 31, 2017 for fees and expenses foregone and/or 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 or waived fees. During the six months ended June 30, 2011, there was no repayment to Management under its contractual expense limitation. At June 30, 2011, contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | | | |
| | | 2011 | | 2012 | | 2013 | | 2014 | | Total | |
| | | | | $ | 129,472 | | | $ | 142,078 | | | $ | 137,598 | | | $ | 76,438 | | | $ | 485,586 | | |
Neuberger Berman LLC ("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.
Management and Neuberger are indirect subsidiaries of Neuberger Berman Group LLC ("NBG," and together with its consolidated subsidiaries "NB Group"). The voting equity of NBG is owned by NBSH Acquisition, LLC ("NBSH") and Lehman Brothers Holdings Inc. ("LBHI"). NBSH, which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees and senior professionals, owns approximately 52% of the voting equity of NBG, and LBHI, which is a debtor in possession under chapter 11 of the U.S. Bankruptcy Code, owns the remaining 48% of the voting equity. LBHI's bankruptcy proceedings have had no material impact on the operations of the Fund. Management and Neuberger continue to operate in the ordinary course of business as the investment manager and sub-adviser, respectively, of the Fund.
Note C—Securities Transactions:
During the six months ended June 30, 2011, there were purchase and sale transactions (excluding short-term securities) of $25,728,826 and $26,593,167, respectively.
During the six months ended June 30, 2011, no brokerage commissions on securities transactions were paid to affiliated brokers.
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2011 and for the year ended December 31, 2010 was as follows:
| | | For the Six Months Ended June 30, 2011 | | For the Year Ended December 31, 2010 | |
| Shares Sold | | | 790,203 | | | | 891,181 | | |
| Shares Redeemed | | | (1,055,240 | ) | | | (742,695 | ) | |
| Total | | | (265,037 | ) | | | 148,486 | | |
Note E—Line of Credit:
At June 30, 2011, the Fund was a participant in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate
16
plus 1.25% per annum. A commitment fee of 0.125% per annum of the available line of credit is charged, of which each participating 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. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $200,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at June 30, 2011. During the six months ended June 30, 2011, the Fund did not utilize this line of credit.
Note F—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
17
Financial Highlights
Small Cap Growth Portfolio
The following table includes selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements.
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 (Unaudited) | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| Net Asset Value, Beginning of Period | | $ | 12.26 | | | $ | 10.25 | | | $ | 8.35 | | | $ | 14.50 | | | $ | 14.53 | | | $ | 14.16 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | (.08 | ) | | | (.12 | ) | | | (.09 | ) | | | (.11 | ) | | | (.06 | ) | | | (.05 | ) | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 1.43 | | | | 2.13 | | | | 1.99 | | | | (5.60 | )§§ | | | .14 | | | | .79 | | |
| Total From Investment Operations | | | 1.35 | | | | 2.01 | | | | 1.90 | | | | (5.71 | ) | | | .08 | | | | .74 | | |
| Less Distributions From: | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | (.44 | ) | | | (.11 | ) | | | (.37 | ) | |
| Tax Return of Capital | | | — | | | | — | | | | — | | | | (.00 | ) | | | — | | | | — | | |
| Total Distributions | | | — | | | | — | | | | — | | | | (.44 | ) | | | (.11 | ) | | | (.37 | ) | |
| Net Asset Value, End of Period | | $ | 13.61 | | | $ | 12.26 | | | $ | 10.25 | | | $ | 8.35 | | | $ | 14.50 | | | $ | 14.53 | | |
Total Return†† | | | 11.01 | %** | | | 19.61 | % | | | 22.75 | % | | | (39.47 | )% | | | .52 | % | | | 5.25 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 19.7 | | | $ | 21.0 | | | $ | 16.0 | | | $ | 12.6 | | | $ | 26.7 | | | $ | 24.2 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.40 | %* | | | 1.40 | % | | | 1.42 | % | | | 1.43 | % | | | 1.40 | % | | | 1.40 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.40 | %* | | | 1.40 | % | | | 1.42 | % | | | 1.42 | % | | | 1.39 | % | | | 1.40 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | (1.17 | )%* | | | (1.15 | )% | | | (1.08 | )% | | | (.92 | )% | | | (.42 | )% | | | (.33 | )% | |
| Portfolio Turnover Rate | | | 125 | %** | | | 243 | % | | | 300 | % | | | 323 | % | | | 38 | % | | | 30 | % | |
See Notes to Financial Highlights
18
Notes to Financial Highlights Small Cap Growth Portfolio (Unaudited)
†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period and assumes income dividends and other distributions, if any, were reinvested. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. 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 and/or waived 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.
# The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.
‡ Calculated based on the average number of shares outstanding during each fiscal period.
§ After reimbursement of expenses and/or waiver of a portion of the investment management fee by Management. Had Management not undertaken such actions, the annualized ratios of net expenses to average daily net assets would have been:
Six Months Ended June 30, | | Year Ended December 31, | |
| 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | 2.12 | % | | | 2.27 | % | | | 2.46 | % | | | 1.97 | % | | | 1.87 | % | | | 2.00 | % | |
§§ Included in this net loss is a voluntary reimbursement from Management for brokerage commissions from March 25, 2008 to April 15, 2008, to facilitate a restructuring of the portfolio following a change in the Fund's portfolio manager.
* Annualized.
** Not annualized.
19
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 1-800-877-9700 (toll-free) and on the website of the Securities and Exchange Commission, at www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available, without charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings for the Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll free).
20
Neuberger Berman
Advisers Management Trust
Socially Responsive Portfolio
I Class Shares
S Class Shares
Semi-Annual Report
June 30, 2011
B0738 08/11
Socially Responsive Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Socially Responsive Portfolio Class I provided a 6.26% return for the six months ended June 30, 2011, outperforming its benchmark, the S&P 500 Index, which returned 6.02% for the period. Returns for the Porfolio's Class I and Class S shares are provided on page 3.
While there has been evidence of solid underlying economic momentum over the past six months, it has been counterbalanced in the markets primarily by the unprecedented and persistent debt problems experienced among several OECD (Organization for Economic Co-Operation and Development) nations. The period saw a strong start on fourth quarter 2010 economic momentum bolstered by the enormous stimulus of the federal government's compromise tax package in December. Volatility increased during the reporting period, however, as factors including the "second act" in the Greek debt crisis, the earthquake in Japan and its aftermath, and the potential for serious consequences from political posturing around the U.S. debt ceiling slowed growth and depressed investor sentiment. Additionally, early commodity price increases pinched consumers' purchasing power, diluting any positive effect from the payroll tax cut.
In our view, however, uncertainty as to how the global debt problem will ultimately be resolved is the key factor currently holding back the market, as consumers, businesses and investors react quickly and conservatively to headlines. We believe swings in sentiment could meaningfully slow the economy by affecting business and consumer spending as well as production and hiring decisions. Still, during prior periods where there has been an absence of debt-related news, the underlying strength of the economy has shown through.
As for the Portfolio, it outperformed its benchmark from the start of the year through the market's late April peak, then more closely tracked the index as sentiment worsened and investors became less discriminating. For some time the Portfolio has been positioned for a slow growth environment. Our focus has been on "best in class" companies with solid fundamentals, demonstrating resiliency in a challenging environment. We have continued to capitalize on market volatility by building positions in companies at what we consider to have very good valuations.
The Portfolio's strongest sector this period was Information Technology, with long-term semiconductor holding Altera among top performers. Altera continues to see revenue momentum driven by a secular trend favoring programmable semiconductor chips. While we've trimmed our position somewhat, Altera remains a meaningful holding.
In Health Care, Industrials and Materials, we avoided deep cyclical names in favor of more stable companies that weathered the downturn well, buying them at deep discounts during the late 2009 and early 2010 cyclical rally. This positioning was beneficial during the weaker second quarter, with consumables-oriented Health Care businesses like Covidien significantly outperforming the benchmark, and Praxair, a Materials name, holding up well against more cyclical areas.
The Portfolio's Energy holdings underperformed the corresponding index sector components, as fairly stable integrated energy names took the lead over the higher growth potential natural gas-focused names that we prefer. Our holdings performed in line with the benchmark during the stronger first quarter, but underperformed more recently as the economy appeared to slow and the price of crude declined. For the full period, Newfield Exploration was a disappointment. We continue to hold Newfield, which we believe is a well-run company with the potential for double-digit production growth over the next several years.
Target, a purchase we began making early this year at what we think was a great valuation, also underperformed. Target has undertaken several initiatives that have the potential to materially accelerate same store sales growth—and while we saw positive same store comparables, they were modestly below expectations, likely due to declining consumer sentiment and fuel and food price inflation. We continue to consider Target a great value.
Consistent with our practice since the financial crisis, we have used temporary price weakness to add to existing positions this period. We were also able to introduce Google to the portfolio on a decline triggered by disappointment over the company's decision to sacrifice near term earnings to invest for future growth. We are very constructive on our outlook for Google since we believe it is a financially strong business with strong secular fundamentals, positioned to grow in a
1
challenging growth environment, and potentially offers a degree of pricing protection against an eventual rise in inflation. Google's sustainability initiatives include using clean energy to power its data centers and setting high standards for workplace practices and employee satisfaction. Google has ranked among the top five of Fortune's "100 Best Companies to Work For" list for several years running.
We find current equity valuations very compelling, reflecting the fundamental uncertainty created by the debt overhang. With little differentiation between traditional growth and value stocks, we have the ability to buy good quality, growing businesses at very attractive valuations, which we believe should be beneficial for the Portfolio.
Looking ahead, we believe that the coming months may be similar to the recent past. While we believe the near-term direction of the markets will likely be punctuated by headline-driven volatility, our anticipation of a slow growth recovery over the intermediate to longer term remains. We think that corporations are financially strong, earnings have been resilient, and inventories are low and, in our view, will need to be restocked. In the environment we foresee, fundamentals-based equity research and stock picking skills should continue to be able to add relative value. In our opinion, this type of market plays to our strengths.
Sincerely,
Arthur Moretti and Ingrid Dyott
Portfolio Co-Managers
The risks involved in seeking capital appreciation from investments in mid- to large-cap stocks that meet the Portfolio's financial criteria and social policy are set forth in the prospectus and statement of additional information.
Mid-capitalization stocks are more vulnerable to financial risks and other risks than larger stocks. They are generally less liquid than larger stocks, so their market prices tend to be more volatile. Large-cap stocks are subject to all the risks of stock market investing, including the risk that they may lose value.
The Portfolio's social policy could cause it to underperform similar funds that do not have a social policy. The composition, industries and holdings of the Portfolio are subject to change. The AMT Socially Responsive Portfolio is invested in a wide array of stocks and no single holding makes up a significant portion of the Portfolio's total assets.
2
Socially Responsive Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 8.1 | % | |
| Consumer Staples | | | 10.6 | | |
| Energy | | | 12.8 | | |
| Financials | | | 12.0 | | |
| Health Care | | | 14.9 | | |
| Industrials | | | 14.5 | | |
| Information Technology | | | 20.9 | | |
| Materials | | | 3.0 | | |
| Short-Term Investments | | | 3.2 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS1
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2011 | |
| | | Date | | 06/30/2011 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund* | |
Socially Responsive Portfolio Class I | | | 02/18/1999 | | | | 6.26 | % | | | 31.19 | % | | | 4.76 | % | | | 5.89 | % | | | 5.46 | % | |
Socially Responsive Portfolio Class S2 | | | 05/01/2006 | | | | 6.24 | % | | | 31.07 | % | | | 4.65 | % | | | 5.84 | % | | | 5.42 | % | |
S&P 500 Index3 | | | | | | | 6.02 | % | | | 30.69 | % | | | 2.94 | % | | | 2.72 | % | | | 2.43 | % | |
Performance data quoted represent past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Results are shown on a "total return" basis and include reinvestment of all income dividends and distributions.
Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please visit https://www.nb.com.
* Index returns are as of inception date 02/18/1999.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratios for fiscal year 2010 were 1.08% and 1.34% for Class I and Class S shares, respectively (prior to any fee waivers and/or expense reimbursements). The expense ratio net of waivers and/or reimbursements was 1.18% for Class S shares. Neuberger Berman Management LLC has contractually agreed to limit certain expenses of the Portfolio through 12/31/2014 for Class I and Class S shares.
3
Endnotes
1 "Total Return" includes reinvestment of all income dividends and distributions. Results represent past performance and do not indicate future results. The value of an investment in the Portfolio and the return on the investment both will fluctuate, and redemption proceeds may be higher or lower than an investor's original cost. The performance information does not reflect fees and expenses of the variable annuity and variable life insurance policies or the qualified pension and retirement plans whose proceeds are invested in the Portfolio. Neuberger Berman Management LLC ("NBM LLC") has agreed to absorb certain expenses of the AMT Portfolios, including the Portfolio. Without this arrangement, which is subject to change, the total returns of the Portfolio may have been less.
2 Performance shown prior to May 1, 2006 for Class S shares is that of Class I shares, which has lower expenses and correspondingly higher returns than Class S shares.
3 The S&P 500 Index is widely regarded as the standard for measuring large-cap U.S. stock market performance and includes a representative sample of leading companies in leading industries. Please note that indices do not take into account any fees and expenses of investing in the individual securities that they track and that individuals cannot invest directly in any index. Data about the performance of this index are prepared or obtained by NBM LLC and include reinvestment of all income dividends and distributions. The Portfolio may invest in securities not included in the above-described index and may not invest in all securities included in the above-described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not NBM LLC's own projections, and they may or may not be realized. In addition, any revision to a forecast could affect the market price of a security. By quoting them herein, NBM LLC does not offer an opinion as to the accuracy of and does not guarantee these forecasted numbers.
The investments for the Portfolio are managed by the same portfolio manager(s) who manage(s) 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.
The composition, industries and holdings of the Portfolio are subject to change.
Shares of the separate AMT Portfolios are not available to the general public. Shares of this Portfolio 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.
Statistics and projections in this report are derived from sources deemed to be reliable but cannot be regarded as a representation of future results of the AMT Portfolios. This report is prepared for the general information of shareholders and is not an offer of shares of the AMT Portfolios. Shares of the AMT Portfolios are sold only through the currently effective prospectuses, which must precede or accompany this report.
The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC. "Neuberger Berman Management LLC" and the individual Fund names in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2011 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses
This table is designed to provide information regarding costs related to your investments. All mutual funds incur operating expenses, which include management fees, fees for administrative services and costs of shareholder reports, among others. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2011 and held for the entire period. The table illustrates the fund's costs in two ways:
| Actual Expenses and Performance: | | The first section of the table provides information about actual account values and actual expenses in dollars, based on the fund's actual performance during the period. You may use the information in this line, together with the amount you invested, to estimate the expenses you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section of the table under the heading entitled "Expenses Paid During the Period" to estimate the expenses you paid over the period. | |
| |
Hypothetical Example for Comparison Purposes: | | The second section of the table provides information about hypothetical account values and hypothetical expenses based on the fund's actual expense ratio and an assumed rate of return at 5% per year before expenses. This return is not the fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in this fund versus other funds. To do so, compare the expenses shown in this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. | |
| |
Please note that the expenses in the table are meant to highlight your ongoing costs only. The table and expense example do not include any transaction costs, such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan. Therefore, the information under the heading "Hypothetical (5% annual return before expenses)" is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Expense Information as of 6/30/11 (Unaudited)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO
| Actual | | Beginning Account Value 1/1/11 | | Ending Account Value 6/30/11 | | Expenses Paid During the Period* 1/1/11 – 6/30/11 | | Expense Ratio | |
| Class I | | $ | 1,000.00 | | | $ | 1,062.60 | | | $ | 5.42 | | | | 1.06 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,062.40 | | | $ | 5.98 | | | | 1.17 | % | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,019.54 | | | $ | 5.31 | | | | 1.06 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,018.99 | | | $ | 5.86 | | | | 1.17 | % | |
* For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying the number of days in the most recent half year divided by 365.
5
Schedule of Investments Socially Responsive Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (95.7%) | | | |
| Capital Markets (8.5%) | | | |
| | 174,560 | | | Bank of New York Mellon | | $ | 4,472,227 | | |
| | 24,620 | | | BlackRock, Inc. | | | 4,722,362 | | |
| | 383,424 | | | Charles Schwab | | | 6,307,325 | | |
| | | | 15,501,914 | | |
| Commercial Services & Supplies (2.3%) | | | |
| | 158,135 | | | Herman Miller | | | 4,304,435 | | |
Electronic Equipment, Instruments & Components (4.9%) | | | |
| | 73,205 | | | Anixter International | | | 4,783,215 | | |
| | 141,245 | | | National Instruments | | | 4,193,564 | | |
| | | | 8,976,779 | | |
| Food & Staples Retailing (2.1%) | | | |
| | 46,910 | | | Costco Wholesale | | | 3,810,968 | | |
| Food Products (4.4%) | | | |
| | 35,740 | | | J.M. Smucker | | | 2,731,966 | | |
| | 108,330 | | | McCormick & Company | | | 5,369,918 | | |
| | | | 8,101,884 | | |
| Health Care Equipment & Supplies (6.1%) | | | |
| | 64,060 | | | Becton, Dickinson & Co. | | | 5,520,050 | | |
| | 107,940 | | | Covidien PLC | | | 5,745,646 | | |
| | | | 11,265,696 | | |
| Household Products (4.0%) | | | |
| | 114,215 | | | Procter & Gamble | | | 7,260,648 | | |
| Industrial Conglomerates (7.3%) | | | |
| | 148,735 | | | Danaher Corp. | | | 7,881,468 | | |
| | 57,845 | | | 3M Co. | | | 5,486,598 | | |
| | | | 13,368,066 | | |
| Industrial Gases (2.0%) | | | |
| | 34,505 | | | Praxair, Inc. | | | 3,739,997 | | |
| Insurance (3.5%) | | | |
| | 296,350 | | | Progressive Corp. | | | 6,335,963 | | |
| Internet Software & Services (6.1%) | | | |
| | 11,540 | | | Google Inc. Class A | | | 5,843,625 | * | |
| | 358,295 | | | Yahoo! Inc. | | | 5,388,757 | * | |
| | | | 11,232,382 | | |
| IT Services (2.8%) | | | |
| | 17,015 | | | MasterCard, Inc. Class A | | | 5,127,300 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Media (4.9%) | | | |
| | 153,497 | | | Comcast Corp. Class A Special | | $ | 3,719,232 | | |
| | 109,155 | | | Scripps Networks Interactive Class A | | | 5,335,497 | | |
| | | | 9,054,729 | | |
| Multiline Retail (3.1%) | | | |
| | 120,770 | | | Target Corp. | | | 5,665,321 | | |
| Oil, Gas & Consumable Fuels (12.7%) | | | |
| | 334,822 | | | BG Group PLC | | | 7,598,453 | | |
| | 44,725 | | | Cimarex Energy | | | 4,021,672 | | |
| | 119,180 | | | Newfield Exploration | | | 8,106,623 | * | |
| | 39,890 | | | Noble Energy | | | 3,575,341 | | |
| | | | 23,302,089 | | |
| Pharmaceuticals (8.6%) | | | |
| | 113,510 | | | Hospira, Inc. | | | 6,431,477 | * | |
| | 28,616 | | | Novo Nordisk A/S ADR | | | 3,585,012 | | |
| | 34,458 | | | Roche Holding AG | | | 5,766,566 | | |
| | | | 15,783,055 | | |
| Professional Services (1.1%) | | | |
| | 80,955 | | | ICF International | | | 2,054,638 | * | |
| Road & Rail (1.6%) | | | |
| | 36,325 | | | Canadian National Railway | | | 2,902,368 | | |
Semiconductors & Semiconductor Equipment (6.8%) | | | |
| | 113,370 | | | Altera Corp. | | | 5,254,699 | | |
| | 222,065 | | | Texas Instruments | | | 7,290,394 | | |
| | | | 12,545,093 | | |
| Specialty Chemicals (0.9%) | | | |
| | 9,885 | | | Novozymes A/S Class B | | | 1,608,614 | | |
| Trading Companies & Distributors (2.0%) | | | |
| | 23,550 | | | W.W. Grainger | | | 3,618,457 | | |
| | | | | Total Common Stocks (Cost $143,018,072) | | | 175,560,396 | | |
| Short-Term Investments (3.1%) | | | |
| | 5,628,754 | | | State Street Institutional Treasury Money Market Fund Institutional Class (Cost $5,628,754) | | | 5,628,754 | | |
See Notes to Schedule of Investments
6
| PRINCIPAL AMOUNT | | | | VALUE† | |
| Certificates of Deposit (0.1%) | | | |
| $ | 200,000 | | | Self Help Credit Union, | | $ | 200,000 | # | |
| | | | | 1.00%, due 7/29/11 | | | |
| | | | | (Cost $200,000) | | | | | |
| | | | | Total Investments (98.9%) (Cost $148,846,826) | | | 181,389,150 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (1.1%) | | | 1,975,009 | | |
| | | | | Total Net Assets (100.0%) | | $ | 183,364,159 | | |
See Notes to Schedule of Investments
7
Notes to Schedule of Investments Socially Responsive Portfolio (Unaudited)
† In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures" ("ASC 820"), all investments held by Neuberger Berman Advisers Management Trust Socially Responsive Portfolio (the "Fund") are carried at the value that Neuberger Berman Management LLC ("Management") believes the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment under current market conditions. Various inputs, including the volume and level of activity for the asset or liability in the market, are considered in valuing the Fund's investments, some of which are discussed below. Significant management judgment may be necessary to value investments in accordance with ASC 820.
ASC 820 established a three-tier hierarchy of inputs to create a classification of value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in equity securities, for which market quotations are readily available, is generally determined by Management by obtaining valuations from an independent pricing service based on the latest sale price quoted in active markets (Level 1 inputs). Securities traded primarily on the NASDAQ Stock Market are normally valued by the Fund at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of 4:00:02 p.m., Eastern time, unless that price is outside the range of the "inside" bid and asked prices (i.e., the bid and asked prices that dealers quote to each other when trading for their own accounts); in that case, NASDAQ will adjust the price to equal the inside bid or asked price, whichever is closer. Because of delays in reporting trades, the NOCP may not be based on the price of the last trade to occur before the market closes. If there is no reported sale of a security on a particular day, the independent pricing service may value the security based on reported market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in State Street Institutional Treasury Money Market Fund Institutional Class are valued using the fund's daily calculated net asset value per share. Certificates of Deposit are valued at amortized cost.
If a valuation is not available from an independent pricing service, or if Management has reason to believe that the valuation received does not represent the amount the Fund might reasonably expect to receive on a current sale in an orderly transaction, the Fund seeks to obtain quotations from principal market makers (generally considered Level 3 inputs). If such quotations are not readily available, the security is valued using methods the Neuberger Berman Advisers Management Trust's Board of Trustees (the "Board") has approved on the belief that they reflect fair value. Numerous factors may be considered when determining the fair value of a security based on Level 2 or 3 inputs, including available analyst, media or other reports, trading in futures or ADRs and whether the issuer of the security being fair valued has other securities outstanding.
The value of the Fund's investments in foreign securities is generally determined using the same valuation methods and inputs as other Fund investments, as discussed above. Foreign security prices expressed in local currency values are translated from the local currency into U.S. dollars using the exchange rate as of 4:00 p.m., Eastern time. The
See Notes to Financial Statements
8
Notes to Schedule of Investments Socially Responsive Portfolio (Unaudited) (cont'd)
Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in determining the fair value of foreign equity securities when changes in the value of a certain index suggest that the closing prices on the foreign exchanges may no longer represent the amount that the Fund could expect to receive for those securities. In this event, Interactive will provide adjusted prices for certain foreign equity securities using a statistical analysis of historical correlations of multiple factors (Level 2 inputs). In the absence of precise information about the market values of these foreign securities as of the close of the New York Stock Exchange, the Board has determined on the basis of available data that prices adjusted in this way are likely to be closer to the prices the Fund could realize on a current sale than are the prices of those securities established at the close of the foreign markets in which the securities primarily trade. Fair value prices are necessarily estimates, and there is no assurance that such a price will be at or close to the price at which the security is next quoted or next trades.
The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of June 30, 2011:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 175,560,396 | | | $ | — | | | $ | — | | | $ | 175,560,396 | | |
| Short-Term Investments | | | — | | | | 5,628,754 | | | | — | | | | 5,628,754 | | |
| Certificates of Deposit | | | — | | | | 200,000 | | | | — | | | | 200,000 | | |
| Total Investments | | $ | 175,560,396 | | | $ | 5,828,754 | | | $ | — | | | $ | 181,389,150 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no significant transfers between Levels 1 and 2 during the six months ended June 30, 2011.
# At cost, which approximates market value.
## At June 30, 2011, the cost of investments for U.S. federal income tax purposes was $149,309,485. Gross unrealized appreciation of investments was $35,042,169 and gross unrealized depreciation of investments was $2,962,504, resulting in net unrealized appreciation of $32,079,665, based on cost for U.S. federal income tax purposes.
* Security did not produce income during the last twelve months.
See Notes to Financial Statements
9
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | SOCIALLY RESPONSIVE PORTFOLIO | |
| | | June 30, 2011 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 181,389,150 | | |
| Cash | | | 10,376 | | |
| Dividends and interest receivable | | | 58,027 | | |
| Receivable for Fund shares sold | | | 3,405,688 | | |
| Prepaid expenses and other assets | | | 3,432 | | |
| Total Assets | | | 184,866,673 | | |
| Liabilities | |
| Due to custodian | | | 46 | | |
| Payable for securities purchased | | | 1,213,039 | | |
| Payable for Fund shares redeemed | | | 73,596 | | |
| Payable to investment manager (Note B) | | | 79,161 | | |
| Payable to administrator—net (Note B) | | | 47,538 | | |
| Accrued expenses and other payables | | | 89,134 | | |
| Total Liabilities | | | 1,502,514 | | |
| Net Assets at value | | $ | 183,364,159 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 171,644,894 | | |
| Undistributed net investment income (loss) | | | 830,467 | | |
| Accumulated net realized gains (losses) on investments | | | (21,658,533 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 32,547,331 | | |
| Net Assets at value | | $ | 183,364,159 | | |
| Net Assets | |
| Class I | | $ | 104,312,220 | | |
| Class S | | | 79,051,939 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | |
| Class I | | | 6,604,318 | | |
| Class S | | | 4,995,090 | | |
| Net Asset Value, offering and redemption price per share | |
| Class I | | $ | 15.79 | | |
| Class S | | | 15.83 | | |
| * Cost of Investments: | |
| Unaffiliated issuers | | $ | 148,846,826 | | |
See Notes to Financial Statements
10
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | SOCIALLY RESPONSIVE PORTFOLIO | |
| | | For the Six Months Ended June 30, 2011 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 1,265,459 | | |
| Interest income—unaffiliated issuers | | | 1,275 | | |
| Foreign taxes withheld | | | (49,000 | ) | |
| Total income | | $ | 1,217,734 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 467,197 | | |
| Administration fees (Note B): | |
| Class I | | | 140,810 | | |
| Class S | | | 114,024 | | |
| Distribution fees (Note B): | |
| Class S | | | 95,020 | | |
| Audit fees | | | 20,809 | | |
| Custodian fees (Note A) | | | 36,500 | | |
| Insurance expense | | | 5,437 | | |
| Legal fees | | | 40,440 | | |
| Shareholder reports | | | 42,325 | | |
| Trustees' fees and expenses | | | 27,273 | | |
| Miscellaneous | | | 4,662 | | |
| Total expenses | | | 994,497 | | |
| Expenses reimbursed by Management (Note B) | | | (52,472 | ) | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (9 | ) | |
| Total net expenses | | | 942,016 | | |
| Net investment income (loss) | | $ | 275,718 | | |
| Realized and Unrealized Gain (Loss) on Investments (Note A) | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 3,977,759 | | |
| Foreign currency | | | (9,170 | ) | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 5,676,726 | | |
| Foreign currency | | | 4,809 | | |
| Net gain (loss) on investments | | | 9,650,124 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 9,925,842 | | |
See Notes to Financial Statements
11
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | SOCIALLY RESPONSIVE PORTFOLIO | |
| | | Six Months Ended June 30, 2011 (Unaudited) | | Year Ended December 31, 2010 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | 275,718 | | | $ | 557,687 | | |
| Net realized gain (loss) on investments | | | 3,968,589 | | | | 3,674,922 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 5,681,535 | | | | 22,860,236 | | |
| Net increase (decrease) in net assets resulting from operations | | | 9,925,842 | | | | 27,092,845 | | |
| Distributions to Shareholders From (Note A): | |
| Net investment income: | |
| Class I | | | — | | | | (24,642 | ) | |
| Class S | | | — | | | | (13,035 | ) | |
| Total distributions to shareholders | | | — | | | | (37,677 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold: | |
| Class I | | | 22,497,093 | | | | 24,146,233 | | |
| Class S | | | 7,376,522 | | | | 13,662,499 | | |
| Proceeds from reinvestment of dividends and distributions: | |
| Class I | | | — | | | | 24,642 | | |
| Class S | | | — | | | | 13,035 | | |
| Payments for shares redeemed: | |
| Class I | | | (6,750,719 | ) | | | (19,380,091 | ) | |
| Class S | | | (5,803,243 | ) | | | (12,122,302 | ) | |
| Net increase (decrease) from Fund share transactions | | | 17,319,653 | | | | 6,344,016 | | |
| Net Increase (Decrease) in Net Assets | | | 27,245,495 | | | | 33,399,184 | | |
| Net Assets: | |
| Beginning of period | | | 156,118,664 | | | | 122,719,480 | | |
| End of period | | $ | 183,364,159 | | | $ | 156,118,664 | | |
| Undistributed net investment income (loss) at end of period | | $ | 830,467 | | | $ | 554,749 | | |
See Notes to Financial Statements
12
Notes to Financial Statements Socially Responsive Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: The Fund is a separate operating series of Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware statutory trust organized pursuant to a Trust Instrument dated May 23, 1994. The Trust is currently comprised of ten separate operating series (each individually a "Series," and collectively the "Funds") each of which is diversified. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the "1940 Act"), and its shares are registered under the Securities Act of 1933, as amended. The Fund currently offers Class I and Class S shares. The Board may establish additional series or classes of shares without the approval of shareholders.
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.
The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires Management to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars using the exchange rates as of 4:00 p.m., Eastern time, 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. Net unrealized foreign currency gain (loss), if any, arises from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates and is stated separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are recorded on trade date for financial reporting purposes. 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, if any, is recorded on the accrual basis. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statement of Operations. Included in net realized gain (loss) on investments are proceeds from the settlements of class action litigation in which the Fund participated as a class member. The amount of such proceeds for the six months ended June 30, 2011 was $154,698.
5 Income tax information: 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 requirements of the U.S. Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its earnings to its shareholders. To the extent the Fund distributes substantially all of its earnings to shareholders, no federal income or excise tax provision is required.
The Fund has adopted the provisions of ASC 740 "Income Taxes" ("ASC 740"). ASC 740 sets forth a minimum threshold for financial statement recognition of a tax position taken, or expected to be taken, in a tax return. The Fund recognizes interest and penalties, if any, related to unrecognized tax positions as an income tax expense in the Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years 2007-2009. As of June 30, 2011, the Fund did not have any unrecognized tax positions.
13
Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Fund, timing differences and differing characterization of distributions made by the Fund as a whole. The Fund may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2010, permanent differences resulting primarily from different book and tax accounting for foreign currency gains and losses were reclassified at fiscal year-end. These reclassifications had no effect on net income, net asset value ("NAV") or NAV per share of the Fund.
The tax character of distributions paid during the years ended December 31, 2010 and December 31, 2009 was as follows:
| | | Distributions Paid From: | | | |
| Ordinary Income | | Long-Term Capital Gain | | Total | |
| 2010 | | 2009 | | 2010 | | 2009 | | 2010 | | 2009 | |
| $ | 37,677 | | | $ | 2,219,365 | | | $ | — | | | $ | — | | | $ | 37,677 | | | $ | 2,219,365 | | |
As of December 31, 2010, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed Ordinary Income | | Undistributed Long-Term Gain | | Unrealized Appreciation (Depreciation) | | Loss Carryforwards and Deferrals | | Total | |
| $ | 554,749 | | | $ | — | | | $ | 26,404,118 | | | $ | (25,165,444 | ) | | $ | 1,793,423 | | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales and capital loss carryforwards.
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. Under current tax law, the use of a fund's capital loss carryforwards to offset future gains may be limited. As determined at December 31, 2010, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| Expiring in: | |
| 2016 | | 2017 | |
| $ | 6,188,313 | | | $ | 18,977,131 | | |
During the year ended December 31, 2010, the Fund utilized capital loss carryforwards of $1,873,208.
On December 22, 2010, the Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") was enacted. The Act modernizes several of the federal income and excise tax provisions related to RICs, and, with certain exceptions, is effective for taxable years beginning after December 22, 2010. Among the changes made are changes to the capital loss carryforward rules allowing for RICs to carry forward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term. Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character. Capital loss carryforwards generated in taxable years beginning after effective date of the Act must be fully used before capital loss carryforwards generated in taxable years prior to effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.
6 Distributions to shareholders: The Fund may earn income, net of expenses, daily on its investments. Distributions from net investment income and net realized capital gains, if any, generally are distributed once a year (usually in October). Income distributions and capital gain distributions to shareholders are recorded on the ex-date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign tax authorities, net of refunds recoverable.
14
8 Expense allocation: Certain expenses are applicable to multiple funds. Expenses directly attributable to a Series are charged to that Series. Expenses of the Trust that are not directly attributable to a particular series of the Trust (e.g., the Fund) are allocated among the series of the Trust, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the series can otherwise be made fairly. Expenses borne by the complex of related investment companies, which includes open-end and closed-end investment companies for which Management serves as investment manager, that are not directly attributable to a particular investment company in the complex (e.g., the Trust) or series thereof are allocated among the investment companies in the complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each investment company in the complex or series thereof can otherwise be made fairly. The Fund's expenses (other than those specific to each class) are allocated proportionally each day between the classes based upon the relative net assets of each class.
9 Investments in foreign securities: Investing in foreign securities may involve certain sovereign and other risks, in addition to the credit and market risks normally associated with domestic securities. These additional risks include the possibility of adverse political and economic developments (including political instability, nationalization, expropriation, or confiscatory taxation) and the potentially adverse effects of unavailability of public information regarding issuers, less governmental supervision and regulation of financial markets, reduced liquidity of certain financial markets, and the lack of uniform accounting, auditing, and financial reporting standards or the application of standards that are different or less stringent than those applied in the United States. Foreign securities also may experience greater price volatility, higher rates of inflation, and delays in settlement.
10 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, both in some of its principal service contracts and in the normal course of its business, the Trust enters into contracts that provide indemnifications to other parties for certain types of losses or liabilities. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims against the Trust.
11 Expense offset arrangement: The Fund has an expense offset arrangement in connection with its custodian contract. For the six months ended June 30, 2011, the impact of this arrangement was a reduction of expenses of $9.
12 Other: All net investment income and realized and unrealized capital gains and losses of the Fund are allocated, on the basis of relative net assets, pro rata among its respective classes.
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 and are also offered directly to certain qualified pension and retirement plans.
The Fund retains 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, 0.425% of the next $2.5 billion, and 0.40% of average daily net assets in excess of $4 billion.
The Fund retains Management as its administrator under an Administration Agreement. Each class pays Management an administration fee at the annual rate of 0.30% of its average daily net assets under this agreement. Additionally, Management retains State Street Bank and Trust Company ("State Street") as its sub-administrator under a Sub-Administration Agreement. Management pays State Street a fee for all services received under this agreement.
The Board adopted a non-fee distribution plan for the Fund's Class I.
For the Fund's Class S, Management acts as agent in arranging for the sale of class shares without commission and bears advertising and promotion expenses. The Board has adopted a distribution plan (the "Plan") with respect to
15
this class, pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that, as compensation for administrative and other services provided to this class, Management's activities and expenses related to the sale and distribution of this class of shares, and ongoing services provided to investors in this class, Management receives from this class a fee at the annual rate of 0.25% of Class S's average daily net assets. Management receives this amount to provide distribution and shareholder servicing for this class and pays a portion of it to institutions that provide such services. Those institutions may use the payments for, among other purposes, compensating employees engaged in sales and/or shareholder servicing. The amount of fees paid by this class during any year could have been more or less than the cost of distribution and other services provided to this class. FINRA rules limit the amount of annual distribution fees that may be paid by a mutual fund and impose a ceiling on the cumulative distribution fees paid. The Trust's Plan complies with those rules.
Management has contractually undertaken to forgo current payment of fees and/or reimburse the Fund's Class I and Class S shares for their operating expenses (exclusive of interest, taxes, brokerage commissions, extraordinary expenses, and transaction costs) ("Operating Expenses") which exceed the expense limitation as detailed in the following table:
| | | Expense Limitation(1) | | Expiration | | Reimbursement from Management for the Six Months Ended June 30, 2011 | |
| Class I | | | 1.30 | % | | 12/31/14 | | $ | — | | |
| Class S | | | 1.17 | % | | 12/31/14 | | | 52,472 | | |
(1) Expense limitation per annum of the respective class' average daily net assets.
Each respective class has agreed to repay Management through December 31, 2017 for fees and expenses foregone and/or 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 or waived fees. During the six months ended June 30, 2011, there was no repayment to Management under its contractual expense limitation. At June 30, 2011, the Fund's Class I shares had no contingent liability to Management under its contractual expense limitation. At June 30, 2011, the Fund's Class S shares contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | | | |
| | | 2011 | | 2012 | | 2013 | | 2014 | | Total | |
| Class S | | $ | 71,032 | | | $ | 117,793 | | | $ | 99,087 | | | $ | 52,472 | | | $ | 340,384 | | |
Neuberger Berman LLC ("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.
Management and Neuberger are indirect subsidiaries of Neuberger Berman Group LLC ("NBG," and together with its consolidated subsidiaries "NB Group"). The voting equity of NBG is owned by NBSH Acquisition, LLC ("NBSH") and Lehman Brothers Holdings Inc. ("LBHI"). NBSH, which is owned by portfolio managers, members of the NB Group management team and certain of NB Group's key employees and senior professionals, owns approximately 52% of the voting equity of NBG, and LBHI, which is a debtor in possession under chapter 11 of the U.S. Bankruptcy Code, owns the remaining 48% of the voting equity. LBHI's bankruptcy proceedings have had no material impact on the operations of the Fund. Management and Neuberger continue to operate in the ordinary course of business as the investment manager and sub-adviser, respectively, of the Fund.
16
Note C—Securities Transactions:
During the six months ended June 30, 2011, there were purchase and sale transactions (excluding short-term securities) of $29,193,060 and $12,614,280, respectively.
During the six months ended June 30, 2011, no brokerage commissions on securities transactions were paid to affiliated brokers.
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2011 and for the year ended December 31, 2010 was as follows:
For the Six Months Ended June 30, 2011
| | | Shares Sold | | Shares Issued on Reinvestment of Dividends and Distributions | | Shares Redeemed | | Total | |
| Class I | | | 1,435,583 | | | | — | | | | (431,910 | ) | | | 1,003,673 | | |
| Class S | | | 470,516 | | | | — | | | | (369,777 | ) | | | 100,739 | | |
For the Year Ended December 31, 2010
| | | Shares Sold | | Shares Issued on Reinvestment of Dividends and Distributions | | Shares Redeemed | | Total | |
| Class I | | | 1,798,275 | | | | 1,811 | | | | (1,532,598 | ) | | | 267,488 | | |
| Class S | | | 1,037,001 | | | | 956 | | | | (938,668 | ) | | | 99,289 | | |
Note E—Line of Credit:
At June 30, 2011, the Fund was a participant in a single committed, unsecured $200,000,000 line of credit with State Street, to be used only for temporary or emergency purposes. Other investment companies managed by Management also participate in this line of credit on the same terms. Interest is charged on borrowings under this line of credit at the higher of (a) the Federal Funds Rate plus 1.25% per annum or (b) the Overnight LIBOR Rate plus 1.25% per annum. A commitment fee of 0.125% per annum of the available line of credit is charged, of which each participating 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. Because several mutual funds participate, there is no assurance that an individual Fund will have access to all or any part of the $200,000,000 at any particular time. There were no loans outstanding pursuant to this line of credit at June 30, 2011. During the six months ended June 30, 2011, the Fund did not utilize this line of credit.
Note F—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
17
Financial Highlights
Socially Responsive Portfolio
The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements.
| Class I | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 14.86 | | | $ | 12.10 | | | $ | 9.39 | | | $ | 17.91 | | | $ | 16.71 | | | $ | 14.91 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .03 | | | | .06 | | | | .01 | | | | .11 | | | | .12 | | | | .05 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .90 | | | | 2.70 | | | | 2.93 | | | | (7.13 | ) | | | 1.16 | | | | 1.98 | | |
| Total From Investment Operations | | | .93 | | | | 2.76 | | | | 2.94 | | | | (7.02 | ) | | | 1.28 | | | | 2.03 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.00 | ) | | | (.23 | ) | | | (.34 | ) | | | (.02 | ) | | | (.03 | ) | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | (1.16 | ) | | | (.06 | ) | | | (.20 | ) | |
| Total Distributions | | | — | | | | (.00 | ) | | | (.23 | ) | | | (1.50 | ) | | | (.08 | ) | | | (.23 | ) | |
| Net Asset Value, End of Period | | $ | 15.79 | | | $ | 14.86 | | | $ | 12.10 | | | $ | 9.39 | | | $ | 17.91 | | | $ | 16.71 | | |
Total Return†† | | | 6.26 | %** | | | 22.85 | % | | | 31.43 | % | | | (39.44 | )% | | | 7.61 | % | | | 13.70 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 104.3 | | | $ | 83.2 | | | $ | 64.5 | | | $ | 51.6 | | | $ | 557.9 | | | $ | 262.6 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.06 | %* | | | 1.08 | % | | | 1.15 | % | | | .92 | % | | | .92 | % | | | 1.07 | % | |
Ratio of Net Expenses to Average Net Assets | | | 1.06 | %* | | | 1.08 | % | | | 1.15 | % | | | .92 | % | | | .91 | % | | | 1.06 | %§ | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .36 | %* | | | .48 | % | | | .06 | % | | | .70 | % | | | .65 | % | | | .33 | % | |
| Portfolio Turnover Rate | | | 8 | %** | | | 41 | % | | | 34 | % | | | 41 | % | | | 26 | % | | | 56 | % | |
See Notes to Financial Highlights
18
Financial Highlights (cont'd)
| Class S | |
| | | Six Months Ended June 30, | | Year Ended December 31, | | Period from May 1, 2006^ to December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 14.90 | | | $ | 12.14 | | | $ | 9.41 | | | $ | 17.86 | | | $ | 16.69 | | | $ | 15.59 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .02 | | | | .05 | | | | .00 | | | | .06 | | | | .06 | | | | .02 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .91 | | | | 2.71 | | | | 2.94 | | | | (7.06 | ) | | | 1.17 | | | | 1.08 | | |
| Total From Investment Operations | | | .93 | | | | 2.76 | | | | 2.94 | | | | (7.00 | ) | | | 1.23 | | | | 1.10 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.00 | ) | | | (.21 | ) | | | (.29 | ) | | | (.00 | ) | | | — | | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | (1.16 | ) | | | (.06 | ) | | | — | | |
| Total Distributions | | | — | | | | (.00 | ) | | | (.21 | ) | | | (1.45 | ) | | | (.06 | ) | | | — | | |
| Net Asset Value, End of Period | | $ | 15.83 | | | $ | 14.90 | | | $ | 12.14 | | | $ | 9.41 | | | $ | 17.86 | | | $ | 16.69 | | |
Total Return†† | | | 6.24 | %** | | | 22.76 | % | | | 31.31 | % | | | (39.43 | )% | | | 7.37 | % | | | 7.06 | %** | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 79.1 | | | $ | 72.9 | | | $ | 58.2 | | | $ | 50.1 | | | $ | 90.2 | | | $ | 91.6 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.17 | %* | | | 1.17 | % | | | 1.18 | % | | | 1.17 | % | | | 1.17 | % | | | 1.17 | %* | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.17 | %* | | | 1.17 | % | | | 1.18 | % | | | 1.17 | % | | | 1.16 | % | | | 1.16 | %* | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .28 | %* | | | .39 | % | | | .05 | % | | | .40 | % | | | .37 | % | | | .16 | %* | |
| Portfolio Turnover Rate | | | 8 | %** | | | 41 | % | | | 34 | % | | | 41 | % | | | 26 | % | | | 56 | %Ø | |
See Notes to Financial Highlights
19
Notes to Financial Highlights Socially Responsive Portfolio
(Unaudited)
†† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period and assumes income dividends and other distributions, if any, were reinvested. Results represent past performance and do not guarantee future results. Current returns may be lower or higher than the performance data quoted. 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. Total return would have been higher if Management had not recouped previously reimbursed 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.
# The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements.
‡ Calculated based on the average number of shares outstanding during each fiscal period.
§ After reimbursement of expenses by Management. Had Management not undertaken such action, the annualized ratios of net expenses to average daily net assets would have been:
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | |
| Socially Responsive Portfolio Class S | | | 1.31 | % | | | 1.33 | % | | | 1.40 | % | | | 1.26 | % | | | — | | | | 1.18 | %(1) | |
(1) Period from May 1, 2006 to December 31, 2006.
After reimbursement of expenses previously paid by Management. Had the Fund not made such reimbursements, the annualized ratio of net expenses to average daily net assets would have been:
| | | Year Ended December 31, | |
| | | 2007 | | 2006 | |
| Socially Responsive Portfolio Class I | | | — | | | | .97 | % | |
| Socially Responsive Portfolio Class S | | | 1.16 | % | | | — | | |
^ The date investment operations commenced.
Ø Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for year ended December 31, 2006.
* Annualized.
** Not annualized.
20
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 1-800-877-9700 (toll-free) and on the website of the Securities and Exchange Commission, at www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is also available, without charge, by calling 1-800-877-9700 (toll-free), on the website of the Securities and Exchange Commission at www.sec.gov, and on Management's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings for the Fund with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange Commission's website at www.sec.gov and may be reviewed and copied at the Securities and Exchange Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 1-800-877-9700 (toll free).
21
ITEM 2. CODE OF ETHICS.
Not applicable. Only required in an annual report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable. Only required in an annual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable. Only required in an annual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the Registrant.
ITEM 6. SCHEDULE OF INVESTMENTS.
The complete schedule of investments for each series is disclosed in the Registrant’s semi-annual reports to shareholders, which are included as Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
| ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to the Registrant.
| ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable to Registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no changes to the procedures by which shareholders may recommend nominees to the Board.
ITEM 11. CONTROLS AND PROCEDURES.
| (a) | Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act) as of a date within 90 days of the filing date of this report, the Chief Executive Officer and Treasurer of the Registrant have concluded that such disclosure controls and procedures are effectively designed to ensure that information required to be disclosed by the Registrant is accumulated and communicated to the Registrant's management to allow timely decisions regarding required disclosure. |
| (b) | There was no change in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant's second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12. EXHIBITS.
(a) (1) Not applicable. Only required in an annual report.
(2) The certifications required by Rule 30a-2(a) under the Act, are attached hereto.
(3) Not applicable.
| (b) | The certifications required by Rule 30a-2(b) under the Act, Rule13a-14(b) or Rule 15d-14(b) under the Securities Exchange Act of 1934 (“Exchange Act”), and Section 1350 of Chapter 63 of Title 18 of the United States Code are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Neuberger Berman Advisers Management Trust
| By: | /s/ Robert Conti | |
| | Robert Conti, Chief Executive Officer |
| | |
Date: September 9, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By: | /s/ Robert Conti | |
| | Robert Conti |
| | Chief Executive Officer |
Date: September 9, 2011
| By: | /s/ John M. McGovern | |
| | Treasurer, Principal Financial |
| | and Accounting Officer |
Date: September 9, 2011
