As filed with the Securities and Exchange Commission on September 6, 2012
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, 2012
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, 2012
B0731 08/12
Balanced Portfolio Commentary
The Neuberger Berman Advisors Management Trust (AMT) Balanced Portfolio Class I posted a 6.96% total return for the six months ended June 30, 2012. The Portfolio's equity component outperformed the Russell Midcap® Growth Index. The Portfolio's fixed income component outperformed the Barclays 1-3 Year U.S. Government/Credit Index for the period.
Equities
Fueled by macroeconomic and political headlines, the first six months of 2012 continued to be a roller-coaster ride of risk-on/risk-off investor sentiment. Our domestic "wall of worry" has been less onerous than the challenges facing other markets due to a U.S. economy that maintained its moderately paced growth and potential signs of stability in the housing market. However, politically driven economic uncertainty continued to mute corporate confidence and, as a result, the appetite for hiring, capital expenditures and M&A activity remained subdued. Despite the U.S. economy's relative stability, we also have not been immune to the issues beyond our borders, such as the ongoing European debt saga and questions around China's growth engine, which have continued to create headline volatility and weigh on U.S. companies with meaningful foreign exposure. Despite the aforementioned headwinds and challenges, corporate earnings continued to be strong, margins were solid and guidance realistic, with a cautious tone reflecting a challenging environment.
The Supreme Court decision on the Affordable Care Act was a surprise, but we anticipate it will be mostly a non-event for our holdings. With our theme of companies that save the health care system money and focus on superior medicine and technology, we've had a fairly politically agnostic approach to health care. The market craves clarity so, from an investment standpoint, reaching an outcome on the health care spending mandate was in itself a positive as the market can now move forward and on to the next pressing issues, such as a contentious presidential election in November and the looming tax cuts/fiscal cliff negotiations and deadlines.
During the reporting period, every sector represented in the portfolio, with the exception of Energy, posted positive returns. Broadly looking at sector positioning, our overweight allocations relative to the benchmarks in Health Care and Telecommunication Services and underweight allocation to Consumer Discretionary proved additive and offset the negative impact of our underweight to Consumer Staples. For the period, the Portfolio delivered strong stock selection, led by our Health Care names. Catalyst Health Solutions and SXC Health Solutions, both pharmacy benefit management companies, agreed to merge in a positively received deal. Alexion Pharmaceuticals, with therapeutic products aimed at rare, life-threatening diseases, continued to successfully execute their international rollout and Cerner Corp., a health care information technology company, benefited from health care organizations striving to bring efficiency to their systems and processes.
Another top contributor was SBA Communications, an operator of wireless communication towers. SBA benefited from strong execution and positive reaction to several recent acquisitions.
The Portfolio also had strong contributions from consumer-related names such as Dollar Tree, an operator of discount variety stores, Ross Stores, an operator of off-price retail apparel and home fashion stores, and Whole Foods Market, a chain of natural and organic foods supermarkets. Dollar Tree and Ross Stores both continued to benefit from budget-conscience consumers trading down from more expensive retail options, while Whole Foods delivered strong sales and customer metrics. These positive contributions offset underperformance from Vera Bradley, a designer of handbags and accessories for women, which suffered channel and inventory issues, and Warnaco Group, a designer of various brand-name apparel products, with international sales pressured by the ongoing European debt crisis.
Leading detractors also included SM Energy, a company engaged in the exploration and production of oil and natural gas, and Carbo Ceramics, a manufacturer of proppants used in extracting oil and gas from shale. Both were pressured by declining energy prices and demand and we sold Carbo Ceramics. Other leading detractors included Gentex, a supplier of advanced mirror systems for automobiles, which was negatively impacted by government delays in implementing a mandate requiring back-up assist cameras, and HEICO, a manufacturer of aircraft replacement parts, pulled back over uncertainty regarding its acquisition strategy and airline industry consolidation fears.
1
Based on our expectations for the balance of 2012, at present we anticipate remaining overweighted in Industrials, Information Technology, Health Care and Telecommunication Services and underweighted in Materials, Financials and Consumer Staples and Consumer Discretionary. Our overweight positions reflect our belief that innovative and unique products and services can be catalysts for outperformance in a tough environment. High cyclicality and inconsistent earnings lead us to be underweighted in Materials and concerns over the fragile state of the consumer has us underweight in both Consumer Discretionary and Consumer Staples. While we value companies with effective global footprints, given the continued uncertainty around Europe and China, our current view is that we are likely to remain tilted in favor of names that are predominantly domestically focused.
We continue to find attractive investment opportunities and remain cautiously optimistic that the U.S.'s measured and consistent economic recovery can continue with the potential for a positive finish for equities in 2012.
Fixed Income
There was a significant shift in investor sentiment during the six-month reporting period. Investors who assumed greater risk were generally rewarded during the first half of the period. While the global financial markets in 2011 were often driven by macro concerns and bouts of extreme risk aversion, investor risk appetite was typically robust over the first three months of 2012. Triggering the change was overall positive economic data. In addition, fears of contagion from the European sovereign debt crisis were put on the back burner for the time being.
Risk aversion was then elevated during much of the second half of the reporting period. In particular, investor sentiment was negative in April and May, given renewed fears of contagion from Europe, signs that U.S. economic growth was decelerating and concerns that China's economy may experience a hard landing. Risk appetite then returned in June due to some progress in addressing the European debt crisis and expectations that the Federal Reserve Board may take additional actions to support the economy. All told, non-Treasuries generated positive absolute returns during the six-month period and typically outperformed equal-duration Treasuries.
Throughout the reporting period, the Portfolio maintained an overweight, relative to the benchmark, in non-Treasuries. While this was detrimental during periods of increased risk aversion, overall it was positive for performance. In particular, the Portfolio's allocations to non-agency mortgage-backed securities (MBS), commercial mortgage-backed securities and investment grade corporate bonds were rewarded. Demand for these sectors was generally solid as investors looked to generate incremental yield. In addition, our defensive duration posture was a positive, as short-term rates moved higher during the six-month period. There were no meaningful detractors from performance during the reporting period.
A number of adjustments were made to the Portfolio during the reporting period. We added to our investment grade corporate bond allocation. In particular, we participated in the new issue market and emphasized higher-quality industrial securities. Within the investment grade corporate bond sector, we pared our exposure to some higher beta (risk) holdings to reduce the Portfolio's overall risk exposure. We added to the Portfolio's Treasury exposure. Elsewhere, our allocation to agency Federal Deposit Insurance Corporation (FDIC) insured paper was eliminated as these short-term instruments matured.
Despite recent deceleration in economic data, we feel the U.S. economy has enough momentum to continue growing. While the pace of the expansion may be disappointing, we believe that growth in the U.S. will continue to exceed most other developed countries. Given still elevated unemployment and potential contagion from Europe, we anticipate the Fed will be true to its word and provide further policy accommodation if necessary.
2
Looking at the fixed income market, periods of volatility are likely during the second half of the year. However, given our anticipation for ongoing economic growth and benign inflation, our current view is that demand for the spread sectors will generally remain solid as investors search for yield in an extremely low interest rate environment.
Sincerely,
KENNETH J. TUREK, 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 portfolio composition, industries and holdings of the Portfolio are subject to change.
3
Balanced Portfolio
PORTFOLIO BY TYPE OF SECURITY
| (as a % of Total Net Assets) | |
| Asset-Backed Securities | | | 4.3 | % | |
| Common Stock | | | 58.1 | | |
| Corporate Debt | | | 12.2 | | |
| Mortgage-Backed Securities | | | 10.6 | | |
| U.S. Treasury Securities | | | 13.0 | | |
| Short-Term Investments | | | 2.9 | | |
Liabilities, less cash, receivables and other assets | | | (1.1 | ) | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2012 | |
| | | Date | | 06/30/2012 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund1 | |
| Balanced Portfolio | | 02/28/1989 | | | 6.96 | % | | | 0.14 | % | | | –0.37 | % | | | 4.54 | % | | | 6.54 | % | |
Barclays 1-3 Year U.S. Government/ Credit Index2 | | | | | | | 0.58 | % | | | 1.12 | % | | | 3.67 | % | | | 3.43 | % | | | 5.55 | % | |
Russell Midcap® Growth Index2 | | | | | 8.10 | % | | | –2.99 | % | | | 1.90 | % | | | 8.47 | % | | | 9.90 | % | |
Russell Midcap® Index2 | | | | | | | 7.97 | % | | | –1.65 | % | | | 1.06 | % | | | 8.45 | % | | | 10.96 | % | |
The performance data quoted represent past performance and do not indicate future results. 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.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares. The results do 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.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2011 was 1.85% for Class I shares (before expense reimbursements and/or fee waivers, if any). The total annual operating expense ratio for Class I shares includes the class's repayment of expenses previously reimbursed and/or fees previously waived by Management.
4
Endnotes
1 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.
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 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, expenses or tax consequences of investing in the individual securities that they track, and individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions. The Portfolio may invest in securities not included in a described index and/or may not invest in all securities included in a described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not Management'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, Management 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) the investments for one or more other registered funds that have names, investment objectives, and investment styles similar to those of the Portfolio. You should be aware that the Portfolio is likely to differ from the other mutual fund(s) 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 fund(s).
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 name in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2012 Neuberger Berman Management LLC distributor. All rights reserved.
5
Information About Your Fund's Expenses (Unaudited)
As a Fund shareholder, you incur two types of costs: (1) transaction costs such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and compare these costs with the ongoing costs of investing in other mutual funds.
This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2012 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 and 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 6/30/12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST BALANCED PORTFOLIO
| Actual | | Beginning Account Value 1/1/12 | | Ending Account Value 6/30/12 | | Expenses Paid During the Period* 1/1/12 – 6/30/12 | |
| Class I | | $ | 1,000.00 | | | $ | 1,069.60 | | | $ | 9.52 | | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,015.66 | | | $ | 9.27 | | |
* Expenses are equal to the annualized expense ratio of 1.85%, multiplied by the average account value over the period, multiplied by 182/366 (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 366.
6
Schedule of Investments Balanced Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (58.1%) | | | |
| Aerospace & Defense (1.7%) | | | |
| | 2,000 | | | BE Aerospace, Inc. | | $ | 87,320 | * | |
| | 1,702 | | | HEICO Corp. | | | 67,263 | | |
| | 600 | | | Precision Castparts Corp. | | | 98,694 | | |
| | | | 253,277 | | |
| Auto Components (0.6%) | | | |
| | 600 | | | BorgWarner, Inc. | | | 39,354 | * | |
| | 2,250 | | | Gentex Corp. | | | 46,958 | | |
| | | | 86,312 | | |
| Beverages (0.3%) | | | |
| | 800 | | | Beam, Inc. | | | 49,992 | | |
| Biotechnology (1.9%) | | | |
| | 1,750 | | | Alexion Pharmaceuticals, Inc. | | | 173,775 | * | |
| | 1,250 | | | Cepheid, Inc. | | | 55,937 | * | |
| | 1,500 | | | Cubist Pharmaceuticals, Inc. | | | 56,865 | * | |
| | | | 286,577 | | |
| Building Products (0.3%) | | | |
| | 2,100 | | | Fortune Brands Home & Security, Inc. | | | 46,767 | * | |
| Capital Markets (1.1%) | | | |
| | 1,000 | | | Affiliated Managers Group, Inc. | | | 109,450 | * | |
| | 1,750 | | | Raymond James Financial, Inc. | | | 59,920 | | |
| | | | 169,370 | | |
| Chemicals (1.9%) | | | |
| | 1,500 | | | Airgas, Inc. | | | 126,015 | | |
| | 1,450 | | | Ashland, Inc. | | | 100,500 | | |
| | 800 | | | Sigma-Aldrich Corp. | | | 59,144 | | |
| | | | 285,659 | | |
| Commercial Services & Supplies (1.2%) | | | |
| | 2,000 | | | Stericycle, Inc. | | | 183,340 | * | |
| Communications Equipment (0.7%) | | | |
| | 750 | | | F5 Networks, Inc. | | | 74,670 | * | |
| | 2,100 | | | Finisar Corp. | | | 31,416 | * | |
| | | | 106,086 | | |
| Containers & Packaging (0.1%) | | | |
| | 400 | | | Rock-Tenn Co. Class A | | | 21,820 | | |
| Diversified Financial Services (0.7%) | | | |
| | 800 | | | IntercontinentalExchange, Inc. | | | 108,784 | * | |
| NUMBER OF SHARES | | | | VALUE† | |
Diversified Telecommunication Services (0.2%) | | | |
| | 1,000 | | | tw telecom, Inc. | | $ | 25,660 | * | |
| Electrical Equipment (2.4%) | | | |
| | 3,000 | | | AMETEK, Inc. | | | 149,730 | | |
| | 1,450 | | | Roper Industries, Inc. | | | 142,941 | | |
| | 2,750 | | | Sensata Technologies Holding NV | | | 73,645 | * | |
| | | | 366,316 | | |
Electronic Equipment, Instruments & Components (1.2%) | | | |
| | 1,700 | | | National Instruments Corp. | | | 45,662 | | |
| | 3,000 | | | Trimble Navigation Ltd. | | | 138,030 | * | |
| | | | 183,692 | | |
| Energy Equipment & Services (1.7%) | | | |
| | 1,000 | | | Cameron International Corp. | | | 42,710 | * | |
| | 700 | | | Core Laboratories NV | | | 81,130 | | |
| | 800 | | | Oceaneering International, Inc. | | | 38,288 | | |
| | 1,500 | | | Oil States International, Inc. | | | 99,300 | * | |
| | | | 261,428 | | |
| Food & Staples Retailing (1.1%) | | | |
| | 800 | | | PriceSmart, Inc. | | | 54,008 | | |
| | 1,150 | | | Whole Foods Market, Inc. | | | 109,618 | | |
| | | | 163,626 | | |
| Food Products (0.6%) | | | |
| | 1,200 | | | Mead Johnson Nutrition Co. | | | 96,612 | | |
| Health Care Equipment & Supplies (2.3%) | | | |
| | 700 | | | Edwards Lifesciences Corp. | | | 72,310 | * | |
| | 200 | | | Intuitive Surgical, Inc. | | | 110,758 | * | |
| | 1,000 | | | MAKO Surgical Corp. | | | 25,610 | * | |
| | 1,700 | | | Masimo Corp. | | | 38,046 | * | |
| | 1,500 | | | NxStage Medical, Inc. | | | 25,140 | * | |
| | 2,500 | | | Volcano Corp. | | | 71,625 | * | |
| | | | 343,489 | | |
| Health Care Providers & Services (2.2%) | | | |
| | 1,500 | | | Catalyst Health Solutions, Inc. | | | 140,160 | * | |
| | 900 | | | DaVita, Inc. | | | 88,389 | * | |
| | 3,200 | | | HMS Holdings Corp. | | | 106,592 | * | |
| | | | 335,141 | | |
| Health Care Technology (1.8%) | | | |
| | 2,000 | | | Cerner Corp. | | | 165,320 | * | |
| | 1,000 | | | SXC Health Solutions Corp. | | | 99,210 | * | |
| | | | 264,530 | | |
See Notes to Schedule of Investments
7
| NUMBER OF SHARES | | | | VALUE† | |
| Hotels, Restaurants & Leisure (1.1%) | | | |
| | 250 | | | Chipotle Mexican Grill, Inc. | | $ | 94,988 | * | |
| | 1,250 | | | Starwood Hotels & Resorts Worldwide, Inc. | | | 66,300 | | |
| | | | 161,288 | | |
| Household Products (0.8%) | | | |
| | 2,100 | | | Church & Dwight Co., Inc. | | | 116,487 | | |
| Internet Software & Services (1.2%) | | | |
| | 1,500 | | | Liquidity Services, Inc. | | | 76,785 | * | |
| | 2,250 | | | Rackspace Hosting, Inc. | | | 98,865 | * | |
| | | | 175,650 | | |
| IT Services (1.8%) | | | |
| | 750 | | | Alliance Data Systems Corp. | | | 101,250 | * | |
| | 1,450 | | | Cognizant Technology Solutions Corp. Class A | | | 87,000 | * | |
| | 2,500 | | | VeriFone Systems, Inc. | | | 82,725 | * | |
| | | | 270,975 | | |
| Life Sciences Tools & Services (0.3%) | | | |
| | 1,000 | | | Illumina, Inc. | | | 40,390 | * | |
| Machinery (2.0%) | | | |
| | 400 | | | Cummins, Inc. | | | 38,764 | | |
| | 3,400 | | | Donaldson Co., Inc. | | | 113,458 | | |
| | 750 | | | Joy Global, Inc. | | | 42,548 | | |
| | 1,850 | | | Pall Corp. | | | 101,398 | | |
| | | | 296,168 | | |
| Media (0.9%) | | | |
| | 1,700 | | | AMC Networks, Inc. Class A | | | 60,435 | * | |
| | 1,300 | | | Discovery Communications, Inc. Class A | | | 70,200 | * | |
| | | | 130,635 | | |
| Multiline Retail (1.3%) | | | |
| | 3,500 | | | Dollar Tree, Inc. | | | 188,300 | * | |
| Oil, Gas & Consumable Fuels (2.1%) | | | |
| | 2,750 | | | Cabot Oil & Gas Corp. | | | 108,350 | | |
| | 1,000 | | | Concho Resources, Inc. | | | 85,120 | * | |
| | 3,800 | | | Denbury Resources, Inc. | | | 57,418 | * | |
| | 1,350 | | | SM Energy Co. | | | 66,298 | | |
| | | | 317,186 | | |
| Pharmaceuticals (1.6%) | | | |
| | 1,300 | | | Medicis Pharmaceutical Corp. Class A | | | 44,395 | | |
| | 1,050 | | | Perrigo Co. | | | 123,827 | | |
| | 1,300 | | | Salix Pharmaceuticals Ltd. | | | 70,772 | * | |
| | | | 238,994 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Professional Services (1.3%) | | | |
| | 1,000 | | | Advisory Board Co. | | $ | 49,590 | * | |
| | 3,000 | | | Verisk Analytics, Inc. Class A | | | 147,780 | * | |
| | | | 197,370 | | |
Real Estate Management & Development (0.6%) | | | |
| | 1,300 | | | Jones Lang LaSalle, Inc. | | | 91,481 | | |
| Road & Rail (1.4%) | | | |
| | 500 | | | Canadian Pacific Railway Ltd. | | | 36,630 | | |
| | 2,000 | | | J.B. Hunt Transport Services, Inc. | | | 119,200 | | |
| | 750 | | | Kansas City Southern | | | 52,170 | | |
| | | | 208,000 | | |
Semiconductors & Semiconductor Equipment (1.8%) | | | |
| | 1,500 | | | Altera Corp. | | | 50,760 | | |
| | 3,500 | | | Avago Technologies Ltd. | | | 125,650 | | |
| | 1,750 | | | Cavium, Inc. | | | 49,000 | * | |
| | 1,450 | | | Microchip Technology, Inc. | | | 47,966 | | |
| | | | 273,376 | | |
| Software (5.9%) | | | |
| | 1,750 | | | ANSYS, Inc. | | | 110,442 | * | |
| | 1,000 | | | Ariba, Inc. | | | 44,760 | * | |
| | 1,950 | | | Aspen Technology, Inc. | | | 45,143 | * | |
| | 1,850 | | | Check Point Software Technologies Ltd. | | | 91,741 | * | |
| | 1,500 | | | Citrix Systems, Inc. | | | 125,910 | * | |
| | 350 | | | Concur Technologies, Inc. | | | 23,835 | * | |
| | 1,900 | | | Informatica Corp. | | | 80,484 | * | |
| | 1,850 | | | MICROS Systems, Inc. | | | 94,720 | * | |
| | 3,000 | | | QLIK Technologies, Inc. | | | 66,360 | * | |
| | 1,550 | | | Red Hat, Inc. | | | 87,544 | * | |
| | 700 | | | Salesforce.com, Inc. | | | 96,782 | * | |
| | 250 | | | Ultimate Software Group, Inc. | | | 22,280 | * | |
| | | | 890,001 | | |
| Specialty Retail (4.9%) | | | |
| | 1,500 | | | Bed Bath & Beyond, Inc. | | | 92,700 | * | |
| | 2,400 | | | Dick's Sporting Goods, Inc. | | | 115,200 | | |
| | 1,300 | | | DSW, Inc. Class A | | | 70,720 | | |
| | 1,500 | | | O'Reilly Automotive, Inc. | | | 125,655 | * | |
| | 3,000 | | | Ross Stores, Inc. | | | 187,410 | | |
| | 1,150 | | | Tractor Supply Co. | | | 95,519 | | |
| | 1,700 | | | Urban Outfitters, Inc. | | | 46,903 | * | |
| | | | 734,107 | | |
| Textiles, Apparel & Luxury Goods (1.6%) | | | |
| | 1,450 | | | Coach, Inc. | | | 84,796 | | |
| | 1,100 | | | PVH Corp. | | | 85,569 | | |
| | 1,250 | | | Vera Bradley, Inc. | | | 26,350 | * | |
| | 1,000 | | | Warnaco Group, Inc. | | | 42,580 | * | |
| | | | 239,295 | | |
See Notes to Schedule of Investments
8
| NUMBER OF SHARES | | | | VALUE† | |
| Trading Companies & Distributors (1.5%) | | | |
| | 3,500 | | | Fastenal Co. | | $ | 141,085 | | |
| | 1,200 | | | MSC Industrial Direct Co., Inc. Class A | | | 78,660 | | |
| | | | 219,745 | | |
| Wireless Telecommunication Services (2.0%) | | | |
| | 1,850 | | | Crown Castle International Corp. | | | 108,521 | * | |
| | 3,250 | | | SBA Communications Corp. Class A | | | 185,412 | * | |
| | | | 293,933 | | |
| | | | | Total Common Stocks (Cost $6,007,540) | | | 8,721,859 | | |
See Notes to Schedule of Investments
9
| PRINCIPAL AMOUNT | | | | VALUE† | |
| U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (13.0%) | | | |
| $ | 770,000 | | | U.S. Treasury Notes, 2.13%, due 11/30/14 | | $ | 802,424 | | |
| | 85,000 | | | U.S. Treasury Notes, 1.25%, due 8/31/15 | | | 87,118 | | |
| | 125,000 | | | U.S. Treasury Notes, 0.63%, due 12/31/12 | | | 125,274 | | |
| | 90,000 | | | U.S. Treasury Notes, 0.38%, due 8/31/12 | | | 90,039 | | |
| | 850,000 | | | U.S. Treasury Notes, 0.25%, due 2/28/14 | | | 849,136 | | |
| | | | | Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (Cost $1,953,167) | | | 1,953,991 | | |
| Mortgage-Backed Securities (10.6%) | | | |
| Adjustable Alt-B Mixed Balance (0.4%) | | | |
| | 73,980 | | | Lehman XS Trust, Floating Rate, Ser. 2005-1, Class 2A1, 1.75%, due 7/25/35 | | | 59,281 | µ | |
| Adjustable Jumbo Balance (0.8%) | | | |
| | 180,358 | | | GMAC Mortgage Corp. Loan Trust, Ser. 2006-AR1, Class 1A1, 3.09%, due 4/19/36 | | | 124,032 | µ | |
| Adjustable Mixed Balance (2.0%) | | | |
| | 173,386 | | | Credit Suisse First Boston Mortgage Securities Corp., Ser. 2004-AR4, Class 2A1, 3.02%, due 5/25/34 | | | 147,274 | µ | |
| | 184,213 | | | First Horizon Mortgage Pass-Through Trust, Ser. 2005-AR5, Class 2A1, 2.62%, due 11/25/35 | | | 136,941 | µ | |
| | 10,418 | | | Harborview Mortgage Loan Trust, Ser. 2004-4, Class 3A, 1.36%, due 6/19/34 | | | 8,605 | µ | |
| | | | 292,820 | | |
| Commercial Mortgage-Backed (3.8%) | | | |
| | 116,386 | | | Bear Stearns Commercial Mortgage Securities, Inc., Ser. 2005-PWR8, Class AAB, 4.58%, due 6/11/41 | | | 117,761 | | |
| | 49,985 | | | Citigroup Commercial Mortgage Trust, Ser. 2006-C4, Class A2, 5.73%, due 3/15/49 | | | 51,201 | µ | |
| | 14,242 | | | Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser. 2006-CD2, Class AAB, 5.33%, due 1/15/46 | | | 14,593 | µ | |
| | 93,068 | | | JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2011-C3, Class A1, 1.87%, due 2/15/46 | | | 93,897 | ñ | |
| | 57,585 | | | Morgan Stanley Capital I, Ser. 2011-C1, Class A1, 2.60%, due 9/15/47 | | | 59,037 | ñ | |
| | 97,205 | | | Morgan Stanley Capital I, Ser. 2011-C3, Class A1, 2.18%, due 7/15/49 | | | 99,550 | | |
| | 84,400 | | | Wachovia Bank Commercial Mortgage Trust, Ser. 2005-C22, Class A3, 5.29%, due 12/15/44 | | | 84,497 | µ | |
| | 57,431 | | | WF-RBS Commercial Mortgage Trust, Ser. 2011-C2, Class A1, 2.50%, due 2/15/44 | | | 58,632 | ñ | |
| | | | 579,168 | | |
| Mortgage-Backed Non-Agency (0.9%) | | | |
| | 82,316 | | | Countrywide Home Loans, Ser. 2005-R2, Class 2A4, 8.50%, due 6/25/35 | | | 85,176 | ñ | |
| | 42,219 | | | GSMPS Mortgage Loan Trust, Ser. 2005-RP3, Class 1A4, 8.50%, due 9/25/35 | | | 45,266 | ñ | |
| | | | 130,442 | | |
| Fannie Mae (1.9%) | | | |
| | 152,479 | | | Pass-Through Certificates, 5.00%, due 10/1/35 | | | 165,824 | | |
| | 117,269 | | | Pass-Through Certificates, 4.50%, due 4/1/39 | | | 125,845 | | |
| | | | 291,669 | | |
| Freddie Mac (0.8%) | | | |
| | 108,770 | | | Pass-Through Certificates, 4.50%, due 11/1/39 | | | 116,215 | | |
| | | | | Total Mortgage-Backed Securities (Cost $1,741,117) | | | 1,593,627 | | |
See Notes to Schedule of Investments
10
| PRINCIPAL AMOUNT | | | | VALUE† | |
| Corporate Debt Securities (12.2%) | | | |
| Aerospace & Defense (0.1%) | | | |
| $ | 10,000 | | | United Technologies Corp., Senior Unsecured Notes, 1.20%, due 6/1/15 | | $ | 10,116 | | |
| Auto Manufacturers (0.5%) | | | |
| | 80,000 | | | Toyota Motor Credit Corp., Senior Unsecured Medium-Term Notes, 1.00%, due 2/17/15 | | | 80,095 | | |
| Banks (3.3%) | | | |
| | 90,000 | | | Citigroup, Inc., Senior Unsecured Notes, 2.65%, due 3/2/15 | | | 89,989 | | |
| | 155,000 | | | JPMorgan Chase & Co., Unsecured Medium-Term Notes, 1.88%, due 3/20/15 | | | 154,880 | | |
| | 125,000 | | | Wells Fargo & Co., Senior Notes, 1.50%, due 7/1/15 | | | 125,095 | | |
| | 125,000 | | | Westpac Banking Corp., Senior Unsecured Notes, 1.85%, due 12/9/13 | | | 126,232 | | |
| | | | 496,196 | | |
| Beverages (0.5%) | | | |
| | 75,000 | | | Anheuser-Busch Cos., LLC, Guaranteed Unsecured Notes, 4.95%, due 1/15/14 | | | 79,073 | | |
| Commercial Services (0.2%) | | | |
| | 35,000 | | | ERAC USA Finance Co., Guaranteed Notes, 2.25%, due 1/10/14 | | | 35,210 | ñ | |
| Diversified Financial Services (2.6%) | | | |
| | 85,000 | | | American Express Credit Corp., Senior Unsecured Medium-Term Notes, Ser. C, 5.88%, due 5/2/13 | | | 88,544 | | |
| | 45,000 | | | Caterpillar Financial Services Corp., Senior Unsecured Notes, 1.65%, due 4/1/14 | | | 45,725 | | |
| | 45,000 | | | Caterpillar Financial Services Corp., Senior Unsecured Medium-Term Notes, 1.13%, due 12/15/14 | | | 45,390 | | |
| | 150,000 | | | General Electric Capital Corp., Senior Unsecured Notes, 2.15%, due 1/9/15 | | | 152,528 | | |
| | 50,000 | | | John Deere Capital Corp., Senior Unsecured Notes, 0.88%, due 4/17/15 | | | 50,056 | | |
| | | | 382,243 | | |
| Food (0.1%) | | | |
| | 15,000 | | | Kraft Foods Group, Inc., Guaranteed Notes, 1.63%, due 6/4/15 | | | 15,159 | ñ | |
| Insurance (0.3%) | | | |
| | 50,000 | | | Berkshire Hathaway Finance Corp., Guaranteed Notes, 1.50%, due 1/10/14 | | | 50,718 | | |
| Media (2.0%) | | | |
| | 95,000 | | | DIRECTV Holdings LLC, Guaranteed Notes, 4.75%, due 10/1/14 | | | 101,976 | | |
| | 90,000 | | | NBC Universal Media LLC, Senior Unsecured Notes, 2.10%, due 4/1/14 | | | 91,598 | | |
| | 75,000 | | | Time Warner Cable, Inc., Guaranteed Notes, 5.40%, due 7/2/12 | | | 75,000 | | |
| | 25,000 | | | Time Warner Cable, Inc., Guaranteed Notes, 3.50%, due 2/1/15 | | | 26,443 | | |
| | | | 295,017 | | |
| Mining (0.4%) | | | |
| | 25,000 | | | BHP Billiton Finance USA Ltd., Guaranteed Notes, 1.13%, due 11/21/14 | | | 25,146 | | |
| | 30,000 | | | Freeport-McMoRan Copper & Gold, Inc., Senior Unsecured Notes, 1.40%, due 2/13/15 | | | 29,898 | | |
| | | | 55,044 | | |
| Oil & Gas (0.3%) | | | |
| | 50,000 | | | BP Capital Markets PLC, Guaranteed Notes, 1.70%, due 12/5/14 | | | 50,754 | | |
| Pharmaceuticals (0.2%) | | | |
| | 30,000 | | | Express Scripts Holding Co., Guaranteed Notes, 2.10%, due 2/12/15 | | | 30,293 | ñ | |
See Notes to Schedule of Investments
11
| PRINCIPAL AMOUNT | | | | VALUE† | |
| Pipelines (0.2%) | | | |
| $ | 30,000 | | | Trans-Canada PipeLines Ltd., Senior Unsecured Notes, 0.88%, due 3/2/15 | | $ | 29,946 | | |
| Retail (0.4%) | | | |
| | 55,000 | | | Home Depot, Inc., Senior Unsecured Notes, 5.25%, due 12/16/13 | | | 58,666 | | |
| Telecommunications (1.1%) | | | |
| | 80,000 | | | AT&T, Inc., Senior Unsecured Notes, 0.88%, due 2/13/15 | | | 79,940 | | |
| | 90,000 | | | Verizon Communications, Inc., Senior Unsecured Notes, 1.95%, due 3/28/14 | | | 91,985 | | |
| | | | 171,925 | | |
| | | | | Total Corporate Debt Securities (Cost $1,825,934) | | | 1,840,455 | | |
| Asset-Backed Securities (4.3%) | | | |
| | 88,133 | | | ACE Securities Corp. Home Equity Loan Trust, Ser. 2006-OP1, Class A2C, 0.40%, due 4/25/36 | | | 58,751 | µ | |
| | 121,618 | | | ACE Securities Corp. Home Equity Loan Trust, Ser. 2006-ASP5, Class A2B, 0.38%, due 10/25/36 | | | 40,880 | µ | |
| | 56,932 | | | Ally Auto Receivables Trust, Ser. 2010-4, Class A3, 0.91%, due 11/17/14 | | | 57,068 | | |
| | 75,000 | | | Ally Auto Receivables Trust, Ser. 2011-1, Class A3, 1.38%, due 1/15/15 | | | 75,480 | | |
| | 200,000 | | | Carrington Mortgage Loan Trust, Ser. 2007-FRE1, Class A3, 0.51%, due 2/25/37 | | | 76,801 | µ | |
| | 166,141 | | | Ford Credit Auto Owner Trust, Ser. 2011-A, Class A3, 0.97%, due 1/15/15 | | | 166,599 | | |
| | 125,000 | | | Hyundai Auto Receivables Trust, Ser. 2011-A, Class A3, 1.16%, due 4/15/15 | | | 125,652 | | |
| | 40,000 | | | Mercedes-Benz Auto Receivables Trust, Ser. 2011-1, Class A3, 0.85%, due 3/16/15 | | | 40,119 | | |
| | | | | Total Asset-Backed Securities (Cost $866,989) | | | 641,350 | | |
| NUMBER OF SHARES | | | |
| Short-Term Investments (2.9%) | | | |
| | 430,973 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $430,973) | | | 430,973 | | |
| | | | | Total Investments (101.1%) (Cost $12,825,720) | | | 15,182,255 | ## | |
| | | | | Liabilities, less cash, receivables and other assets [(1.1%)] | | | (169,398 | ) | |
| | | | | Total Net Assets (100.0%) | | $ | 15,012,857 | | |
See Notes to Schedule of Investments
12
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 and exchange traded funds, 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 on a principal exchange or market for that security (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
13
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.
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 (Level 2 inputs).
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 or on days when foreign markets are closed and U.S. markets are open. In each of these events, 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.
See Notes to Financial Statements
14
Notes to Schedule of Investments Balanced Portfolio (Unaudited) (cont'd)
The following is a summary, categorized by Level, of inputs used to value the Fund's investments as of June 30, 2012:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 8,721,859 | | | $ | — | | | $ | — | | | $ | 8,721,859 | | |
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government | | | — | | | | 1,953,991 | | | | — | | | | 1,953,991 | | |
| Mortgage-Backed Securities^ | | | — | | | | 1,593,627 | | | | — | | | | 1,593,627 | | |
| Corporate Debt Securities^ | | | — | | | | 1,840,455 | | | | — | | | | 1,840,455 | | |
| Asset-Backed Securities | | | — | | | | 641,350 | | | | — | | | | 641,350 | | |
| Short-Term Investments | | | — | | | | 430,973 | | | | — | | | | 430,973 | | |
| Total Investments | | $ | 8,721,859 | | | $ | 6,460,396 | | | $ | — | | | $ | 15,182,255 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no transfers between Levels 1 and 2 during the six months ended June 30, 2012.
## At June 30, 2012, the cost of investments for U.S. federal income tax purposes was $12,861,708. Gross unrealized appreciation of investments was $2,934,284 and gross unrealized depreciation of investments was $613,737, resulting in net unrealized appreciation of $2,320,547, 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, 2012 and their final maturity dates.
ñ Securities were purchased under Rule 144A of the Securities Act of 1933, as amended (the "1933 Act") or are private placements and, unless registered under the 1933 Act or exempted from registration, may only be sold to qualified institutional investors. These securities have been deemed by the investment manager to be liquid. At June 30, 2012, these securities amounted to $422,670 or 2.8% of net assets for the Fund.
See Notes to Financial Statements
15
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | BALANCED PORTFOLIO | |
| | | June 30, 2012 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 15,182,255 | | |
| Foreign currency | | | 10,252 | | |
| Dividends and interest receivable | | | 52,138 | | |
| Receivable for securities sold | | | 15,130 | | |
| Receivable for Fund shares sold | | | 95 | | |
| Receivable from Management—net (Note B) | | | 22 | | |
| Prepaid expenses and other assets | | | 10,994 | | |
| Total Assets | | | 15,270,886 | | |
| Liabilities | |
| Payable for securities purchased | | | 212,765 | | |
| Payable for Fund shares redeemed | | | 3,349 | | |
| Payable to investment manager (Note B) | | | 6,747 | | |
| Accrued expenses and other payables | | | 35,168 | | |
| Total Liabilities | | | 258,029 | | |
| Net Assets at value | | $ | 15,012,857 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 13,015,215 | | |
| Undistributed net investment income (loss) | | | (70,324 | ) | |
| Accumulated net realized gains (losses) on investments | | | (289,134 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 2,357,100 | | |
| Net Assets at value | | $ | 15,012,857 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 1,337,958 | | |
| Net Asset Value, offering and redemption price per share | | $ | 11.22 | | |
| *Cost of Investments | | $ | 12,825,720 | | |
| Total cost of foreign currency | | $ | 9,687 | | |
See Notes to Financial Statements
16
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | BALANCED PORTFOLIO | |
| | | For the Six Months Ended June 30, 2012 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 22,416 | | |
| Interest income—unaffiliated issuers | | | 52,450 | | |
| Foreign taxes withheld | | | (121 | ) | |
| Total income | | $ | 74,745 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 43,072 | | |
| Administration fees (Note B) | | | 23,494 | | |
| Audit fees | | | 21,873 | | |
| Custodian fees (Note A) | | | 14,035 | | |
| Insurance expense | | | 447 | | |
| Legal fees | | | 3,677 | | |
| Registration and filing fees | | | 7,265 | | |
| Shareholder reports | | | 9,731 | | |
| Trustees' fees and expenses | | | 26,513 | | |
| Miscellaneous | | | 812 | | |
| Total expenses | | | 150,919 | | |
| Expenses reimbursed by Management (Note B) | | | (5,850 | ) | |
| Total net expenses | | | 145,069 | | |
| Net investment income (loss) | | $ | (70,324 | ) | |
| Realized and Unrealized Gain (Loss) on Investments (Note A): | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 1,408,647 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | (264,999 | ) | |
| Foreign currency | | | 7 | | |
| Net gain (loss) on investments | | | 1,143,655 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 1,073,331 | | |
See Notes to Financial Statements
17
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | BALANCED PORTFOLIO | |
| | | Six Months Ended June 30, 2012 (Unaudited) | | Year Ended December 31, 2011 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | (70,324 | ) | | $ | (127,396 | ) | |
| Net realized gain (loss) on investments | | | 1,408,647 | | | | 1,216,775 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | (264,992 | ) | | | (1,136,585 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | 1,073,331 | | | | (47,206 | ) | |
| Distributions to Shareholders From (Note A): | |
| Net investment income | | | — | | | | (49,434 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold | | | 74,421 | | | | 381,133 | | |
| Proceeds from reinvestment of dividends and distributions | | | — | | | | 49,434 | | |
| Payments for shares redeemed | | | (1,427,585 | ) | | | (2,593,182 | ) | |
| Net increase (decrease) from Fund share transactions | | | (1,353,164 | ) | | | (2,162,615 | ) | |
| Net Increase (Decrease) in Net Assets | | | (279,833 | ) | | | (2,259,255 | ) | |
| Net Assets: | |
| Beginning of period | | | 15,292,690 | | | | 17,551,945 | | |
| End of period | | $ | 15,012,857 | | | $ | 15,292,690 | | |
| Undistributed net investment income (loss) at end of period | | $ | (70,324 | ) | | $ | — | | |
See Notes to Financial Statements
18
Notes to Financial Statements Balanced Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: Neuberger Berman Advisers Management Trust (the "Trust") is 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 1933 Act. 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 ("GAAP") 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 rate 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, 2012 was $520.
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 2008-2010. As of June 30, 2012, the Fund did not have any unrecognized tax positions.
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Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. 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, 2011, permanent differences resulting primarily from different book and tax accounting for net operating losses, paydown gains and losses, amortization of bond premium, non-taxable dividend adjustments to income, passive foreign investment company gains and losses and distributions in excess of 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. For the year ended December 31, 2011, the Fund recorded the following permanent reclassifications:
| Paid-in Capital | | Undistributed Net Investment Income (Loss) | | Accumulated Net Realized Gains (Losses) on Investments | |
| $ | (76,670 | ) | | $ | 132,459 | | | $ | (55,789 | ) | |
For tax purposes, short-term gains are considered ordinary income.
The tax character of distributions paid during the years ended December 31, 2011 and December 31, 2010 was as follows:
| Distributions Paid From: | |
| Ordinary Income | | Total | |
| 2011 | | 2010 | | 2011 | | 2010 | |
| $ | 49,434 | | | $ | 163,192 | | | $ | 49,434 | | | $ | 163,192 | | |
As of December 31, 2011, 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 | | Other Temporary Differences | | Total | |
| $ | — | | | $ | 2,549,654 | | | $ | (1,625,343 | ) | | $ | — | | | $ | 924,311 | | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales, amortization of bond premium, return of capital adjustments for securities sold 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. The Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") became effective for the Fund on January 1, 2011. The Act modernizes several of the federal income and excise tax provisions related to RICs. Among the changes made are changes to the capital loss carryforward rules allowing for RICs to carryforward capital losses indefinitely and to retain the character of capital loss carryforwards as short-term or long-term ("Post-Enactment"). Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character ("Pre-Enactment"). As determined at December 31, 2011, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| | | Pre-Enactment | | Post-Enactment (No Expiration Date) | |
| | | Expiring in: 2017 | | Long-Term | | Short-Term | |
| | | | | $ | 1,625,343 | | | $ | — | | | $ | — | | |
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Post-Enactment capital loss carryforwards must be fully used before Pre-Enactment capital loss carryforwards; therefore, under certain circumstances, Pre-Enactment capital loss carryforwards available as of the report date may expire unused.
During the year ended December 31, 2011, the Fund utilized capital loss carryforwards of $1,097,689.
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 of the investment companies 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 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
21
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, or as needed, 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 acquisition of the underlying securities or currency, 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, 2012, 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, 2012 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, 2012, 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 0.55% 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. Accordingly, for the six months ended June 30, 2012, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.55% of the Fund's average daily net assets.
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.
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Management has contractually undertaken through December 31, 2015 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, transaction costs and dividend expense on short sales, if any) ("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, 2012, such excess expenses amounted to $5,850. The Fund has agreed to repay Management through December 31, 2018 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 in place at the time the fees and expenses were foregone or reimbursed, 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, 2012, there was no repayment to Management under its contractual expense limitation. At June 30, 2012, contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | | | |
| | | 2012 | | 2013 | | 2014 | | 2015 | | Total | |
| | | | | $ | 24,624 | | | $ | 11,078 | | | $ | — | | | $ | 5,850 | | | $ | 41,552 | | |
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")). NBSH Acquisition, LLC ("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 55% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 45% of such common units. Pursuant to agreements among NBG, NBSH and the LBHI Parties, NBG is entitled to acquire the remaining common units not owned by NBSH through a process that is expected to end in 2017. In April 2012, NBG committed to and began payments for equity purchases from the LBHI parties, which are expected to raise employee ownership to approximately 64% by year end.
Note C—Securities Transactions:
Cost of purchases and proceeds of sales and maturities of long-term securities for the six months ended June 30, 2012 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 | |
| $ | 2,074,424 | | | $ | 2,781,101 | | | $ | 911,628 | | | $ | 5,558,311 | | |
During the six months ended June 30, 2012, no brokerage commissions on securities transactions were paid to affiliated brokers.
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Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2012 and for the year ended December 31, 2011 was as follows:
| | | For the Six Months Ended June 30, | | For the Year Ended December 31, | |
| | | 2012 | | 2011 | |
| Shares Sold | | | 6,592 | | | | 35,379 | | |
| Shares Issued on Reinvestment of Dividends and Distributions | | | — | | | | 4,699 | | |
| Shares Redeemed | | | (125,779 | ) | | | (240,106 | ) | |
| Total | | | (119,187 | ) | | | (200,028 | ) | |
Note E—Line of Credit:
At June 30, 2012, 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 0.10% 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, 2012. During the six months ended June 30, 2012, the Fund did not utilize this line of credit.
Note F—Recent Accounting Pronouncement:
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements.
Note G—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.
24
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. Per share amounts that round to less than $.01 or $(.01) per share are presented as $.00 or $(.00), respectively.
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 10.49 | | | $ | 10.59 | | | $ | 9.00 | | | $ | 7.58 | | | $ | 13.08 | | | $ | 11.44 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | (.05 | ) | | | (.08 | ) | | | (.03 | ) | | | .05 | | | | .09 | | | | .12 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .78 | | | | .01 | | | | 1.72 | | | | 1.65 | | | | (5.17 | ) | | | 1.67 | | |
| Total From Investment Operations | | | .73 | | | | (.07 | ) | | | 1.69 | | | | 1.70 | | | | (5.08 | ) | | | 1.79 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.03 | ) | | | (.10 | ) | | | (.28 | ) | | | (.42 | ) | | | (.15 | ) | |
| Net Asset Value, End of Period | | $ | 11.22 | | | $ | 10.49 | | | $ | 10.59 | | | $ | 9.00 | | | $ | 7.58 | | | $ | 13.08 | | |
Total Return†† | | | 6.96 | %** | | | (.63 | )% | | | 18.83 | % | | | 22.47 | % | | | (39.15 | )% | | | 15.60 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 15.0 | | | $ | 15.3 | | | $ | 17.6 | | | $ | 16.4 | | | $ | 15.5 | | | $ | 78.4 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.93 | %* | | | 1.85 | % | | | 1.92 | % | | | 2.04 | % | | | 1.29 | % | | | 1.16 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.85 | %* | | | 1.85 | % | | | 1.85 | % | | | 1.86 | % | | | 1.29 | % | | | 1.16 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | (.90 | )%* | | | (.76 | )% | | | (.37 | )% | | | .66 | % | | | .81 | % | | | 1.00 | % | |
| Portfolio Turnover Rate | | | 32 | %** | | | 52 | % | | | 58 | % | | | 85 | % | | | 57 | % | | | 54 | % | |
See Notes to Financial Highlights
25
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 indicate 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 class actions proceeds listed in Note A-4 had no impact on total return.
# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.
‡ 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. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, the annualized ratios of net expenses to average net assets would have been:
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | | | | 1.85 | % | | | 1.85 | % | | | 1.85 | % | | | 1.86 | % | | | 1.29 | % | | | 1.16 | % | |
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, 2011 | |
| | | | | | 1.83 | % | |
* 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).
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Neuberger Berman
Advisers Management Trust
Growth Portfolio
I Class Shares
Semi-Annual Report
June 30, 2012
B0732 08/12
Growth Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Growth Portfolio Class I generated a 9.05% total return for the six months ended June 30, 2012 and outperformed its benchmark, the Russell Midcap® Growth Index, which returned 8.10% for the period.
Fueled by macroeconomic and political headlines, the first six months of 2012 continued to be a roller-coaster ride of risk-on/risk-off investor sentiment. Our domestic "wall of worry" has been less onerous than the challenges facing other markets due to a U.S. economy that maintained its moderately paced growth and potential signs of stability in the housing market. However, politically driven economic uncertainty continued to mute corporate confidence and, as a result, the appetite for hiring, capital expenditures and M&A activity remained subdued. Despite the U.S. economy's relative stability, the markets have not been immune to the issues beyond our borders, such as the ongoing European debt saga and questions around China's growth engine, which have continued to create headline volatility and weigh on U.S. companies with meaningful foreign exposure. Despite the aforementioned headwinds and challenges, corporate earnings continued to be strong, margins were solid and guidance realistic, with a cautious tone reflecting a challenging environment.
The Supreme Court decision on the Affordable Care Act was a surprise, but we currently believe it will mostly be a non-event for our holdings. With our theme of companies that save the health care system money and focus on superior medicine and technology, we've had a fairly politically agnostic approach to health care. The market craves clarity, so, from an investment standpoint, reaching an outcome on the health care spending mandate was in itself a positive as the market can now move forward and on to the next pressing issues, such as a contentious presidential election in November and the looming tax cuts/fiscal cliff negotiations and deadlines.
During the reporting period, every sector represented in the Portfolio, with the exception of Energy, posted positive returns. Broadly looking at sector positioning, our overweight allocations relative to the benchmark in Health Care and Telecommunication Services and underweight allocation to Consumer Discretionary proved additive and offset the negative impact of our underweight to Consumer Staples. For the period, the Portfolio delivered strong stock selection, led by our Health Care names. Catalyst Health Solutions and SXC Health Solutions, both pharmacy benefit management companies, agreed to merge in a positively received deal. Alexion Pharmaceuticals, with therapeutic products aimed at rare, life-threatening diseases, continued to successfully execute their international rollout and Cerner Corp., a health care information technology company, benefited from health care organizations striving to bring efficiency to their systems and processes.
Another top contributor was SBA Communications, an operator of wireless communication towers. SBA benefited from strong execution and positive reaction to several recent acquisitions.
The Portfolio also had strong contributions from Consumer-related names such as Dollar Tree, an operator of discount variety stores, Ross Stores, an operator of off-price retail apparel and home fashion stores, and Whole Foods Market, a chain of natural and organic foods supermarkets. Dollar Tree and Ross Stores both continued to benefit from budget-conscience consumers trading down from more expensive retail options, while Whole Foods delivered strong sales and customer metrics. These positive contributions offset underperformance from Vera Bradley, a designer of handbags and accessories for women, which suffered channel and inventory issues, and Warnaco Group, a designer of various brand-name apparel products, with international sales pressured by the ongoing European debt crisis.
Leading detractors also included SM Energy, a company engaged in the exploration and production of oil and natural gas, and Carbo Ceramics, a manufacturer of proppants used in extracting oil and gas from shale. Both were pressured by declining energy prices and demand and we sold Carbo Ceramics. Other leading detractors included Gentex, a supplier of advanced mirror systems for automobiles, which was negatively impacted by government delays in implementing a mandate requiring back-up assist cameras, and HEICO, a manufacturer of aircraft replacement parts, pulled back over uncertainty regarding its acquisition strategy and airline industry consolidation fears.
1
Based on our expectations for the balance of 2012, at present we anticipate remaining overweighted in Industrials, Information Technology, Health Care and Telecommunication Services and underweighted in Materials, Financials, Consumer Staples and Consumer Discretionary. Our overweight positions reflect our belief that innovative and unique products and services can be catalysts for outperformance in a tough environment. High cyclicality and inconsistent earnings lead us to be underweighted in Materials and concerns over the fragile state of the consumer has us underweight in both Consumer Discretionary and Consumer Staples. While we value companies with effective global footprints, given the continued uncertainty around Europe and China, our current view is that we are likely to remain tilted in favor of names that are predominantly domestically focused.
We continue to find attractive investment opportunities and remain cautiously optimistic that the U.S.'s measured and consistent economic recovery can continue with the potential for a positive finish for equities in 2012.
Sincerely,
KENNETH J. TUREK
PORTFOLIO MANAGER
Information about the principal risks of investing in the Portfolio is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Portfolio are subject to change.
2
Growth Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 17.8 | % | |
| Consumer Staples | | | 4.9 | | |
| Energy | | | 6.3 | | |
| Financials | | | 4.5 | | |
| Health Care | | | 16.7 | | |
| Industrials | | | 19.3 | | |
| Information Technology | | | 22.0 | | |
| Materials | | | 4.0 | | |
| Telecommunication Services | | | 3.4 | | |
| Short-Term Investments | | | 1.1 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2012 | |
| | | Date | | 06/30/2012 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund1 | |
Growth Portfolio Class I | | | 09/10/1984 | | | | 9.05 | % | | | –0.64 | % | | | 1.97 | % | | | 8.15 | % | | | 8.89 | % | |
Russell Midcap® Growth Index2 | | | | | | | 8.10 | % | | | –2.99 | % | | | 1.90 | % | | | 8.47 | % | | | N/A | | |
Russell Midcap® Index2 | | | | | | | 7.97 | % | | | –1.65 | % | | | 1.06 | % | | | 8.45 | % | | | 11.97 | % | |
The performance data quoted represent past performance and do not indicate future results. 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.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares. The results do 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.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2011 was 2.52% for Class I shares (before expense reimbursements and/or fee waivers, if any). This expense ratio was 1.85% after expense reimbursements and/or fee waivers.
3
Endnotes
1 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.
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, expenses or tax consequences of investing in the individual securities that they track, and that individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions. The Portfolio may invest in securities not included in a described index and/or may not invest in all securities included in a described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not Management'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, Management 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) the investments for one or more other registered funds that have names, investment objectives, and investment styles similar to those of the Portfolio. You should be aware that the Portfolio is likely to differ from the other mutual fund(s) 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 fund(s).
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 name in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2012 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses (Unaudited)
As a Fund shareholder, you incur two types of costs: (1) transaction costs such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and compare these costs with the ongoing costs of investing in other mutual funds.
This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2012 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 and 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 6/30/12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST GROWTH PORTFOLIO
| Actual | | Beginning Account Value 1/1/12 | | Ending Account Value 6/30/12 | | Expenses Paid During the Period* 1/1/12 – 6/30/12 | |
| Class I | | $ | 1,000.00 | | | $ | 1,090.50 | | | $ | 9.62 | | |
| Hypothetical (5% annual return before expenses)** | | | | | |
| Class I | | $ | 1,000.00 | | | $ | 1,015.66 | | | $ | 9.27 | | |
* Expenses are equal to the annualized expense ratio of 1.85%, multiplied by the average account value over the period, multiplied by 182/366 (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 366.
5
Schedule of Investments Growth Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (99.0%) | | | |
| Aerospace & Defense (2.1%) | | | |
| | 1,900 | | | BE Aerospace, Inc. | | $ | 82,954 | * | |
| | 1,875 | | | HEICO Corp. | | | 74,100 | | |
| | | | 157,054 | | |
| Auto Components (1.0%) | | | |
| | 500 | | | BorgWarner, Inc. | | | 32,795 | * | |
| | 2,000 | | | Gentex Corp. | | | 41,740 | | |
| | | | 74,535 | | |
| Beverages (0.6%) | | | |
| | 700 | | | Beam, Inc. | | | 43,743 | | |
| Biotechnology (3.0%) | | | |
| | 1,500 | | | Alexion Pharmaceuticals, Inc. | | | 148,950 | * | |
| | 1,000 | | | Cepheid, Inc. | | | 44,750 | * | |
| | 800 | | | Cubist Pharmaceuticals, Inc. | | | 30,328 | * | |
| | | | 224,028 | | |
| Building Products (0.6%) | | | |
| | 2,000 | | | Fortune Brands Home & Security, Inc. | | | 44,540 | * | |
| Capital Markets (2.2%) | | | |
| | 1,000 | | | Affiliated Managers Group, Inc. | | | 109,450 | * | |
| | 1,500 | | | Raymond James Financial, Inc. | | | 51,360 | | |
| | | | 160,810 | | |
| Chemicals (3.5%) | | | |
| | 1,500 | | | Airgas, Inc. | | | 126,015 | | |
| | 1,100 | | | Ashland, Inc. | | | 76,241 | | |
| | 750 | | | Sigma-Aldrich Corp. | | | 55,447 | | |
| | | | 257,703 | | |
| Commercial Services & Supplies (1.9%) | | | |
| | 1,500 | | | Stericycle, Inc. | | | 137,505 | * | |
| Communications Equipment (1.2%) | | | |
| | 600 | | | F5 Networks, Inc. | | | 59,736 | * | |
| | 1,750 | | | Finisar Corp. | | | 26,180 | * | |
| | | | 85,916 | | |
| Containers & Packaging (0.6%) | | | |
| | 750 | | | Rock-Tenn Co. Class A | | | 40,913 | | |
| Diversified Financial Services (1.4%) | | | |
| | 750 | | | IntercontinentalExchange, Inc. | | | 101,985 | * | |
| NUMBER OF SHARES | | | | VALUE† | |
Diversified Telecommunication Services (0.3%) | | | |
| | 1,000 | | | tw telecom, Inc. | | $ | 25,660 | * | |
| Electrical Equipment (4.2%) | | | |
| | 2,500 | | | AMETEK, Inc. | | | 124,775 | | |
| | 1,250 | | | Roper Industries, Inc. | | | 123,225 | | |
| | 2,500 | | | Sensata Technologies Holding NV | | | 66,950 | * | |
| | | | 314,950 | | |
Electronic Equipment, Instruments & Components (2.0%) | | | |
| | 1,250 | | | National Instruments Corp. | | | 33,575 | | |
| | 2,500 | | | Trimble Navigation Ltd. | | | 115,025 | * | |
| | | | 148,600 | | |
| Energy Equipment & Services (2.7%) | | | |
| | 750 | | | Cameron International Corp. | | | 32,033 | * | |
| | 600 | | | Core Laboratories NV | | | 69,540 | | |
| | 1,500 | | | Oil States International, Inc. | | | 99,300 | * | |
| | | | 200,873 | | |
| Food & Staples Retailing (1.9%) | | | |
| | 650 | | | PriceSmart, Inc. | | | 43,882 | | |
| | 1,000 | | | Whole Foods Market, Inc. | | | 95,320 | | |
| | | | 139,202 | | |
| Food Products (1.1%) | | | |
| | 1,000 | | | Mead Johnson Nutrition Co. | | | 80,510 | | |
| Health Care Equipment & Supplies (3.9%) | | | |
| | 600 | | | Edwards Lifesciences Corp. | | | 61,980 | * | |
| | 150 | | | Intuitive Surgical, Inc. | | | 83,068 | * | |
| | 750 | | | MAKO Surgical Corp. | | | 19,208 | * | |
| | 1,500 | | | Masimo Corp. | | | 33,570 | * | |
| | 1,250 | | | NxStage Medical, Inc. | | | 20,950 | * | |
| | 2,500 | | | Volcano Corp. | | | 71,625 | * | |
| | | | 290,401 | | |
| Health Care Providers & Services (3.4%) | | | |
| | 1,000 | | | Catalyst Health Solutions, Inc. | | | 93,440 | * | |
| | 750 | | | DaVita, Inc. | | | 73,657 | * | |
| | 2,600 | | | HMS Holdings Corp. | | | 86,606 | * | |
| | | | 253,703 | | |
| Health Care Technology (3.4%) | | | |
| | 2,000 | | | Cerner Corp. | | | 165,320 | * | |
| | 850 | | | SXC Health Solutions Corp. | | | 84,328 | * | |
| | | | 249,648 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| Hotels, Restaurants & Leisure (1.7%) | | | |
| | 200 | | | Chipotle Mexican Grill, Inc. | | $ | 75,990 | * | |
| | 1,000 | | | Starwood Hotels & Resorts Worldwide, Inc. | | | 53,040 | | |
| | | | 129,030 | | |
| Household Products (1.3%) | | | |
| | 1,800 | | | Church & Dwight Co., Inc. | | | 99,846 | | |
| Internet Software & Services (2.1%) | | | |
| | 1,250 | | | Liquidity Services, Inc. | | | 63,988 | * | |
| | 2,000 | | | Rackspace Hosting, Inc. | | | 87,880 | * | |
| | | | 151,868 | | |
| IT Services (3.1%) | | | |
| | 600 | | | Alliance Data Systems Corp. | | | 81,000 | * | |
| | 1,250 | | | Cognizant Technology Solutions Corp. Class A | | | 75,000 | * | |
| | 2,250 | | | VeriFone Systems, Inc. | | | 74,453 | * | |
| | | | 230,453 | | |
| Life Sciences Tools & Services (0.4%) | | | |
| | 750 | | | Illumina, Inc. | | | 30,293 | * | |
| Machinery (3.3%) | | | |
| | 350 | | | Cummins, Inc. | | | 33,919 | | |
| | 3,000 | | | Donaldson Co., Inc. | | | 100,110 | | |
| | 500 | | | Joy Global, Inc. | | | 28,365 | | |
| | 1,550 | | | Pall Corp. | | | 84,955 | | |
| | | | 247,349 | | |
| Media (1.4%) | | | |
| | 1,500 | | | AMC Networks, Inc. Class A | | | 53,325 | * | |
| | 1,000 | | | Discovery Communications, Inc. Class A | | | 54,000 | * | |
| | | | 107,325 | | |
| Multiline Retail (2.2%) | | | |
| | 3,000 | | | Dollar Tree, Inc. | | | 161,400 | * | |
| Oil, Gas & Consumable Fuels (3.6%) | | | |
| | 2,250 | | | Cabot Oil & Gas Corp. | | | 88,650 | | |
| | 800 | | | Concho Resources, Inc. | | | 68,096 | * | |
| | 3,500 | | | Denbury Resources, Inc. | | | 52,885 | * | |
| | 1,150 | | | SM Energy Co. | | | 56,476 | | |
| | | | 266,107 | | |
| Pharmaceuticals (2.6%) | | | |
| | 1,000 | | | Medicis Pharmaceutical Corp. Class A | | | 34,150 | | |
| | 900 | | | Perrigo Co. | | | 106,137 | | |
| | 1,000 | | | Salix Pharmaceuticals Ltd. | | | 54,440 | * | |
| | | | 194,727 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Professional Services (2.1%) | | | |
| | 800 | | | Advisory Board Co. | | $ | 39,672 | * | |
| | 2,400 | | | Verisk Analytics, Inc. Class A | | | 118,224 | * | |
| | | | 157,896 | | |
Real Estate Management & Development (1.0%) | | | |
| | 1,000 | | | Jones Lang LaSalle, Inc. | | | 70,370 | | |
| Road & Rail (2.8%) | | | |
| | 500 | | | Canadian Pacific Railway Ltd. | | | 36,630 | | |
| | 2,000 | | | J.B. Hunt Transport Services, Inc. | | | 119,200 | | |
| | 750 | | | Kansas City Southern | | | 52,170 | | |
| | | | 208,000 | | |
Semiconductors & Semiconductor Equipment (3.4%) | | | |
| | 1,750 | | | Altera Corp. | | | 59,220 | | |
| | 3,200 | | | Avago Technologies Ltd. | | | 114,880 | | |
| | 1,350 | | | Cavium, Inc. | | | 37,800 | * | |
| | 1,250 | | | Microchip Technology, Inc. | | | 41,350 | | |
| | | | 253,250 | | |
| Software (10.3%) | | | |
| | 1,500 | | | ANSYS, Inc. | | | 94,665 | * | |
| | 800 | | | Ariba, Inc. | | | 35,808 | * | |
| | 1,700 | | | Aspen Technology, Inc. | | | 39,355 | * | |
| | 1,650 | | | Check Point Software Technologies Ltd. | | | 81,823 | * | |
| | 1,500 | | | Citrix Systems, Inc. | | | 125,910 | * | |
| | 300 | | | Concur Technologies, Inc. | | | 20,430 | * | |
| | 1,550 | | | Informatica Corp. | | | 65,658 | * | |
| | 1,650 | | | MICROS Systems, Inc. | | | 84,480 | * | |
| | 2,500 | | | QLIK Technologies, Inc. | | | 55,300 | * | |
| | 1,350 | | | Red Hat, Inc. | | | 76,248 | * | |
| | 500 | | | Salesforce.com, Inc. | | | 69,130 | * | |
| | 200 | | | Ultimate Software Group, Inc. | | | 17,824 | * | |
| | | | 766,631 | | |
| Specialty Retail (8.7%) | | | |
| | 1,250 | | | Bed Bath & Beyond, Inc. | | | 77,250 | * | |
| | 2,100 | | | Dick's Sporting Goods, Inc. | | | 100,800 | | |
| | 1,250 | | | DSW, Inc. Class A | | | 68,000 | | |
| | 1,500 | | | O'Reilly Automotive, Inc. | | | 125,655 | * | |
| | 2,400 | | | Ross Stores, Inc. | | | 149,928 | | |
| | 1,000 | | | Tractor Supply Co. | | | 83,060 | | |
| | 1,500 | | | Urban Outfitters, Inc. | | | 41,385 | * | |
| | | | 646,078 | | |
| Textiles, Apparel & Luxury Goods (2.7%) | | | |
| | 1,000 | | | Coach, Inc. | | | 58,480 | | |
| | 1,000 | | | PVH Corp. | | | 77,790 | | |
| | 1,000 | | | Vera Bradley, Inc. | | | 21,080 | * | |
| | 1,000 | | | Warnaco Group, Inc. | | | 42,580 | * | |
| | | | 199,930 | | |
See Notes to Schedule of Investments
7
| NUMBER OF SHARES | | | | VALUE† | |
| Trading Companies & Distributors (2.2%) | | | |
| | 2,500 | | | Fastenal Co. | | $ | 100,775 | | |
| | 1,000 | | | MSC Industrial Direct Co., Inc. Class A | | | 65,550 | | |
| | | | 166,325 | | |
| Wireless Telecommunication Services (3.1%) | | | |
| | 1,500 | | | Crown Castle International Corp. | | | 87,990 | * | |
| | 2,500 | | | SBA Communications Corp. Class A | | | 142,625 | * | |
| | | | 230,615 | | |
| | | | | Total Common Stocks (Cost $4,762,779) | | | 7,349,772 | | |
| Short-Term Investments (1.1%) | | | |
| | 78,746 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $78,746) | | | 78,746 | | |
| | | | | Total Investments (100.1%) (Cost $4,841,525) | | | 7,428,518 | ## | |
| | | | | Liabilities, less cash, receivables and other assets [(0.1%)] | | | (9,612 | ) | |
| | | | | Total Net Assets (100.0%) | | $ | 7,418,906 | | |
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 and exchange traded funds, 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 on a principal exchange or market for that security (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 (Level 2 inputs).
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
See Notes to Financial Statements
9
Notes to Schedule of Investments Growth Portfolio (Unaudited) (cont'd)
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 or on days when foreign markets are closed and U.S. markets are open. In each of these events, 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, 2012:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 7,349,772 | | | $ | — | | | $ | — | | | $ | 7,349,772 | | |
| Short-Term Investments | | | — | | | | 78,746 | | | | — | | | | 78,746 | | |
| Total Investments | | $ | 7,349,772 | | | $ | 78,746 | | | $ | — | | | $ | 7,428,518 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no transfers between Levels 1 and 2 during the six months ended June 30, 2012.
## At June 30, 2012, the cost of investments for U.S. federal income tax purposes was $4,848,008. Gross unrealized appreciation of investments was $2,717,474 and gross unrealized depreciation of investments was $136,964, resulting in net unrealized appreciation of $2,580,510, 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, 2012 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 7,428,518 | | |
| Dividends and interest receivable | | | 1,333 | | |
| Receivable for securities sold | | | 11,563 | | |
| Receivable for Fund shares sold | | | 1,773 | | |
| Receivable from Management-net (Note B) | | | 3,348 | | |
| Prepaid expenses and other assets | | | 4,988 | | |
| Total Assets | | | 7,451,523 | | |
| Liabilities | |
| Payable for Fund shares redeemed | | | 359 | | |
| Payable to investment manager (Note B) | | | 3,296 | | |
| Accrued expenses and other payables | | | 28,962 | | |
| Total Liabilities | | | 32,617 | | |
| Net Assets at value | | $ | 7,418,906 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 14,645,394 | | |
| Undistributed net investment income (loss) | | | (53,705 | ) | |
| Accumulated net realized gains (losses) on investments | | | (9,759,776 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 2,586,993 | | |
| Net Assets at value | | $ | 7,418,906 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 366,300 | | |
| Net Asset Value, offering and redemption price per share | | $ | 20.25 | | |
| *Cost of Investments | | $ | 4,841,525 | | |
See Notes to Financial Statements
11
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | GROWTH PORTFOLIO | |
| | | For the Six Months Ended June 30, 2012 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 17,677 | | |
| Interest income—unaffiliated issuers | | | 21 | | |
| Foreign taxes withheld | | | (91 | ) | |
| Total income | | $ | 17,607 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 21,154 | | |
| Administration fees (Note B) | | | 11,538 | | |
| Audit fees | | | 20,854 | | |
| Custodian fees (Note A) | | | 6,710 | | |
| Insurance expense | | | 339 | | |
| Legal fees | | | 1,794 | | |
| Shareholder reports | | | 7,607 | | |
| Trustees' fees and expenses | | | 26,497 | | |
| Miscellaneous | | | 358 | | |
| Total expenses | | | 96,851 | | |
| Expenses reimbursed by Management (Note B) | | | (25,539 | ) | |
| Total net expenses | | | 71,312 | | |
| Net investment income (loss) | | $ | (53,705 | ) | |
| Realized and Unrealized Gain (Loss) on Investments (Note A): | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 525,659 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 203,476 | | |
| Net gain (loss) on investments | | | 729,135 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 675,430 | | |
See Notes to Financial Statements
12
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | GROWTH PORTFOLIO | |
| | | Six Months Ended June 30, 2012 (Unaudited) | | Year Ended December 31, 2011 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | (53,705 | ) | | $ | (111,529 | ) | |
| Net realized gain (loss) on investments | | | 525,659 | | | | 1,042,902 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 203,476 | | | | (909,812 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | 675,430 | | | | 21,561 | | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold | | | 121,853 | | | | 434,595 | | |
| Payments for shares redeemed | | | (679,229 | ) | | | (1,627,031 | ) | |
| Net increase (decrease) from Fund share transactions | | | (557,376 | ) | | | (1,192,436 | ) | |
| Net Increase (Decrease) in Net Assets | | | 118,054 | | | | (1,170,875 | ) | |
| Net Assets: | |
| Beginning of period | | | 7,300,852 | | | | 8,471,727 | | |
| End of period | | $ | 7,418,906 | | | $ | 7,300,852 | | |
| Undistributed net investment income (loss) at end of period | | $ | (53,705 | ) | | $ | — | | |
See Notes to Financial Statements
13
Notes to Financial Statements Growth Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: Neuberger Berman Advisers Management Trust (the "Trust") is 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 ("GAAP") 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 rate 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, 2012 was $9,862.
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 2008-2010. As of June 30, 2012, 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 GAAP. 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, 2011, permanent differences resulting primarily from different book and tax accounting for net operating losses and non-taxable dividend adjustments to income 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. For the year ended December 31, 2011, the Fund recorded the following permanent reclassifications:
Paid-in Capital | | Undistributed Net Investment Income (Loss) | | Accumulated Net Realized Gains (Losses) on Investments | |
| $ | (113,767 | ) | | $ | 111,529 | | | $ | 2,238 | | |
As of December 31, 2011, 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 | | Other Temporary Differences | | Total | |
| $ | — | | | $ | 2,375,369 | | | $ | (10,277,287 | ) | | $ | — | | | $ | (7,901,918 | ) | |
The differences between book basis and tax basis distributable earnings are attributable primarily to timing differences of wash sales, return of capital adjustments for securities sold 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. The Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") became effective for the Fund on January 1, 2011. The Act modernizes several of the federal income and excise tax provisions related to RICs. 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 ("Post-Enactment"). Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character ("Pre-Enactment"). As determined at December 31, 2011, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| Pre-Enactment | | Post-Enactment (No Expiration Date) | |
| Expiring in: | | Long-Term | | Short-Term | |
| 2017 | | | | | |
| $ | 10,277,287 | | | $ | — | | | $ | — | | |
Post-Enactment capital loss carryforwards must be fully used before Pre-Enactment capital loss carryforwards; therefore, under certain circumstances, Pre-Enactment capital loss carryforwards available as of the report date may expire unused.
During the year ended December 31, 2011, the Fund utilized capital loss carryforwards of $1,047,888.
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.
15
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 of the investment companies 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, 2012, 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 0.55% 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. Accordingly, for the six months ended June 30, 2012, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.55% of the Fund's average daily net assets.
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, 2015 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, transaction costs and dividend expense on short sales, if any) ("Operating
16
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, 2012, such excess expenses amounted to $25,539. The Fund has agreed to repay Management through December 31, 2018 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 in place at the time the fees and expenses were foregone or reimbursed, 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, 2012, there was no repayment to Management under its contractual expense limitation. At June 30, 2012, contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | | | |
| | | 2013 | | 2014 | | 2015 | | Total | |
| | | | | $ | 58,438 | | | $ | 53,512 | | | $ | 25,539 | | | $ | 137,489 | | |
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")). NBSH Acquisition, LLC ("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 55% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 45% of such common units. Pursuant to agreements among NBG, NBSH and the LBHI Parties, NBG is entitled to acquire the remaining common units not owned by NBSH through a process that is expected to end in 2017. In April 2012, NBG committed to and began payments for equity purchases from the LBHI parties, which are expected to raise employee ownership to approximately 64% by year end.
Note C—Securities Transactions:
During the six months ended June 30, 2012, there were purchase and sale transactions (excluding short-term securities) of $1,230,545 and $1,870,770, respectively.
During the six months ended June 30, 2012, 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, 2012 and for the year ended December 31, 2011 was as follows:
| | | For the Six Months Ended June 30, | | For the Year Ended December 31, | |
| | | 2012 | | 2011 | |
| Shares Sold | | | 5,966 | | | | 22,555 | | |
| Shares Redeemed | | | (32,860 | ) | | | (84,514 | ) | |
| Total | | | (26,894 | ) | | | (61,959 | ) | |
Note E—Line of Credit:
At June 30, 2012, 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
17
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 0.10% 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, 2012. During the six months ended June 30, 2012, the Fund did not utilize this line of credit.
Note F—Recent Accounting Pronouncement:
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements.
Note G—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. Per share amounts that round to less than $.01 or $(.01) per share are presented as $.00 or $(.00), respectively.
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 18.57 | | | $ | 18.61 | | | $ | 14.20 | | | $ | 10.87 | | | $ | 19.30 | | | $ | 15.73 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | (.14 | ) | | | (.26 | ) | | | (.21 | ) | | | (.05 | ) | | | (.10 | ) | | | (.11 | ) | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 1.82 | | | | .22 | | | | 4.62 | | | | 3.38 | | | | (8.33 | ) | | | 3.68 | | |
| Total From Investment Operations | | | 1.68 | | | | (.04 | ) | | | 4.41 | | | | 3.33 | | | | (8.43 | ) | | | 3.57 | | |
| Net Asset Value, End of Period | | $ | 20.25 | | | $ | 18.57 | | | $ | 18.61 | | | $ | 14.20 | | | $ | 10.87 | | | $ | 19.30 | | |
Total Return†† | | | 9.05 | %** | | | (.21 | )% | | | 31.06 | % | | | 30.63 | % | | | (43.68 | )% | | | 22.70 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 7.4 | | | $ | 7.3 | | | $ | 8.5 | | | $ | 7.5 | | | $ | 82.0 | | | $ | 172.6 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 2.52 | %* | | | 2.52 | % | | | 2.64 | % | | | 1.27 | % | | | 1.04 | % | | | .99 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.85 | %* | | | 1.85 | % | | | 1.85 | % | | | 1.27 | % | | | 1.04 | % | | | .99 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | (1.40 | )%* | | | (1.38 | )% | | | (1.33 | )% | | | (.49 | )% | | | (.63 | )% | | | (.61 | )% | |
| Portfolio Turnover Rate | | | 16 | %** | | | 33 | % | | | 49 | % | | | 68 | % | | | 63 | % | | | 48 | % | |
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 indicate 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. Had the Fund not received class actions proceeds, total return based on per share NAV for the year ended December 31, 2010 would have been 28.15%. Had the Fund not received the class actions proceeds listed in Note A-4, total return based on per share NAV for the six months ended June 30, 2012 would have been 8.94%.
# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.
‡ 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. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, the annualized ratios of net expenses to average daily net assets would have been:
Six Months Ended June 30, | | Year Ended December 31, | |
| 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | 1.85 | % | | | 1.85 | % | | | 1.85 | % | | | 1.27 | % | | | 1.04 | % | | | 1.00 | % | |
* 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
Neuberger Berman
Advisers Management Trust
Guardian Portfolio
I Class Shares
S Class Shares
Semi-Annual Report
June 30, 2012
B0733 08/12
Guardian Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Guardian Portfolio Class I generated a total return of 6.07% for the six months ended June 30, 2012, but underperformed its benchmark, the S&P 500 Index, which returned 9.49% for the period. Returns for the Portfolio's Class I and Class S shares are provided on page 3.
Macroeconomic concerns were the key drivers of the financial markets this period, as investor sentiment rotated between worries and relief. The European debt crisis was the key factor again this period, responsible initially for a strong first quarter as anxiety about Europe remained at bay as governments in the region negotiated plans to avert a financial meltdown. However, as the year progressed, European worries returned due to a barrage of news that pointed to an imminent sovereign debt default by Greece and deepening financial woes in Spain. In addition, we saw data suggesting the growth rate in both the U.S. and China had slowed. As such, volatility increased and the market declined in the second quarter.
Our portfolio has been positioned for a slow growth environment since the onset of the global financial crisis. We had anticipated periods of heightened market volatility related to divergent debt-related issues and have used such volatility to build and maintain a portfolio of what we believe are very high quality businesses—businesses we think should perform well through economic uncertainty and outperform their peers. The businesses in our portfolio largely performed as we had anticipated this period—with few surprises, they appear to be holding up against a weak and uncertain backdrop, maintaining earnings, and positioning themselves well for the future.
In addition to the resilience of our businesses, the quality attributes of our current portfolio are strong. We are quite pleased with the financial strength, free cash flow characteristics, debt to capitalization ratios, industry leading positions, and management skill and experience of our holdings. This period, quality attributes did not drive returns as they have during previous periods of weakness due to macroeconomic distractions.
From a sector perspective, the Portfolio's underperformance was largely driven by Information Technology ("IT") and Energy. Within IT, the absence of Apple from the portfolio's holdings was a headwind to relative performance. There are a number of reasons we don't own Apple, but its strong performance has been a disproportionate driver of IT sector—and benchmark—returns. Our semiconductor holdings also underperformed on worries about the durability of the macro economy, even despite the strong secular positioning of our companies and their relatively lean inventory positions.
Energy holdings were broadly impacted by commodity weakness. As fear and loathing around Europe ebbed and flowed, commodity prices and commodity-sensitive stocks followed suit. Our energy-related stocks were somewhat more commodity price sensitive than the sector as a whole, and underperformed as a result.
The Portfolio also experienced modest underperformance, relative to the benchmark, within Financials. In the first quarter, credit-sensitive financials—an area where, by design, we have very little exposure—performed particularly well. That trend reversed itself in the second quarter, but the shift was not enough to completely offset our relative underperformance from earlier in the year. By contrast, strong stock selection within the Consumer Discretionary, Consumer Staples, and Health Care sectors allowed the Portfolio to outperform the index in those areas.
During the reporting period, we continued to trim holdings on strong performance and to add to high conviction positions on volatility-driven buying opportunities. We initiated a position in Marathon Petroleum, a spin-off of Marathon Oil's downstream assets, including Speedway gas stations, pipelines and infrastructure. With seven refineries, it is one of the largest, and in our opinion, best-run refinery operations in North America. We believe it should benefit from new oil and gas resources currently coming on line in North America.
We sold Republic Services, a leading waste handler, on disappointing earnings. We continue to like this well-managed company, but as businesses and consumers have worked to minimize waste streams, Republic's business has started to grow at a slower rate than the broader economy. We sold Republic on our preference for companies with better organic growth characteristics.
1
Looking forward, we anticipate the continuation of a slow growth environment with significant uncertainty, vacillating between periods of fear and relief. During periods of relief, we'd expect growth in industrial production, and in periods of fear, draw downs against inventories that are already very lean. We have seen this cycle repeat several times since 2008, and anticipate it will be the norm for some time. Uncertainty may increase toward the end of the year with the upcoming U.S. presidential election and possible "fiscal cliff."
Against this uncertainty, however, some positive factors differentiate the U.S. economy from its global peers. First is the likelihood that the housing market in the U.S. may have found a bottom, changing a meaningful headwind to GDP into a neutral-to-incrementally positive factor. Second is the North American energy renaissance, which has important implications for our trade balance as it could position the U.S. as an exporter of petroleum products and, potentially, liquefied natural gas. Implied energy cost advantages could also potentially support a broader industrial renaissance here. We are seeing early evidence of this impact now and believe that longer-term this could have a profound effect on North American economic activity.
With expectations that the market will continue to turn on the perceived ebb and flow of macroeconomic news for at least the remainder of the year, we remain focused on company fundamentals. We continue to manage a portfolio of high quality businesses that we believe can achieve advantaged secular growth within a difficult environment.
Sincerely,
ARTHUR MORETTI
PORTFOLIO MANAGER
Information about the principal risks of investing in the Portfolio is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Portfolio are subject to change.
2
Guardian Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 8.7 | % | |
| Consumer Staples | | | 14.4 | | |
| Energy | | | 14.9 | | |
| Financials | | | 15.2 | | |
| Health Care | | | 9.8 | | |
| Industrials | | | 12.6 | | |
| Information Technology | | | 17.9 | | |
| Materials | | | 4.0 | | |
| Short-Term Investments | | | 2.5 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2012 | |
| | | Date | | 06/30/2012 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund1 | |
Guardian Portfolio Class I | | | 11/03/1997 | | | | 6.07 | % | | | –3.33 | % | | | –0.45 | % | | | 5.22 | % | | | 5.97 | % | |
Guardian Portfolio Class S2 | | | 08/02/2002 | | | | 5.99 | % | | | –3.47 | % | | | –0.60 | % | | | 5.01 | % | | | 5.83 | % | |
S&P 500 Index3 | | | | | | | 9.49 | % | | | 5.45 | % | | | 0.22 | % | | | 5.33 | % | | | 4.61 | % | |
The performance data quoted represent past performance and do not indicate future results. 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.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares. The results do 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.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.13% and 1.38% for Class I and Class S shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratio was 1.25% for Class S shares after expense reimbursements and/or fee waivers.
3
Endnotes
1 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.
2 Performance shown prior to August 2, 2002 for the Class S shares is that of the Class I shares, which have 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, expenses or tax consequences of investing in the individual securities that they track, and individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions. The Portfolio may invest in securities not included in a described index and/or may not invest in all securities included in a described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not Management'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, Management 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) the investments for one or more other registered funds that have names, investment objectives, and investment styles similar to those of the Portfolio. You should be aware that the Portfolio is likely to differ from the other mutual fund(s) 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 fund(s).
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.
© 2012 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses (Unaudited)
As a Fund shareholder, you incur two types of costs: (1) transaction costs such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and compare these costs with the ongoing costs of investing in other mutual funds.
This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2012 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 and 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 6/30/12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST GUARDIAN PORTFOLIO
| Actual | | Beginning Account Value 1/1/12 | | Ending Account Value 6/30/12 | | Expenses Paid During the Period* 1/1/12 – 6/30/12 | | Expense Ratio | |
| Class I | | $ | 1,000.00 | | | $ | 1,060.70 | | | $ | 5.69 | | | | 1.11 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,059.90 | | | $ | 6.40 | | | | 1.25 | % | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,019.34 | | | $ | 5.57 | | | | 1.11 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,018.65 | | | $ | 6.27 | | | | 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 182/366 (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 366.
5
Schedule of Investments Guardian Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (97.2%) | | | |
| Beverages (7.3%) | | | |
| | 47,115 | | | Anheuser-Busch | | $ | 3,752,710 | | |
| | | | | InBev NV ADR | | | | | |
| | 29,593 | | | Coca-Cola Co. | | | 2,313,876 | | |
| | | | 6,066,586 | | |
| Capital Markets (5.6%) | | | |
| | 8,585 | | | BlackRock, Inc. | | | 1,457,905 | | |
| | 115,365 | | | Charles Schwab Corp. | | | 1,491,669 | | |
| | 64,940 | | | Lazard Ltd. Class A | | | 1,687,791 | | |
| | | | 4,637,365 | | |
| Chemicals (2.0%) | | | |
| | 24,538 | | | Ecolab, Inc. | | | 1,681,589 | | |
| Consumer Finance (2.3%) | | | |
| | 32,800 | | | American Express Co. | | | 1,909,288 | | |
| Diversified Financial Services (3.3%) | | | |
| | 4,852 | | | CME Group, Inc. | | | 1,300,870 | | |
| | 10,490 | | | IntercontinentalExchange, Inc. | | | 1,426,430 | * | |
| | | | 2,727,300 | | |
Electronic Equipment, Instruments & Components (4.0%) | | | |
| | 14,813 | | | Anixter International, Inc. | | | 785,830 | | |
| | 93,787 | | | National Instruments Corp. | | | 2,519,119 | | |
| | | | 3,304,949 | | |
| Energy Equipment & Services (5.4%) | | | |
| | 40,610 | | | Cameron International Corp. | | | 1,734,453 | * | |
| | 42,962 | | | Schlumberger Ltd. | | | 2,788,664 | | |
| | | | 4,523,117 | | |
| Food Products (3.5%) | | | |
| | 48,425 | | | McCormick & Co., Inc. | | | 2,936,976 | | |
| Health Care Equipment & Supplies (6.7%) | | | |
| | 26,809 | | | C.R. Bard, Inc. | | | 2,880,359 | | |
| | 49,616 | | | Covidien PLC | | | 2,654,456 | | |
| | | | 5,534,815 | | |
| Household Products (3.5%) | | | |
| | 47,021 | | | Procter & Gamble Co. | | | 2,880,036 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Industrial Conglomerates (8.1%) | | | |
| | 30,620 | | | 3M Co. | | $ | 2,743,552 | | |
| | 75,786 | | | Danaher Corp. | | | 3,946,935 | | |
| | | | 6,690,487 | | |
| Industrial Gases (2.0%) | | | |
| | 15,013 | | | Praxair, Inc. | | | 1,632,364 | | |
| Insurance (4.0%) | | | |
| | 158,240 | | | Progressive Corp. | | | 3,296,139 | | |
| Internet Software & Services (4.0%) | | | |
| | 5,800 | | | Google, Inc. Class A | | | 3,364,406 | * | |
| IT Services (1.7%) | | | |
| | 3,290 | | | MasterCard, Inc. Class A | | | 1,415,062 | | |
| Machinery (2.6%) | | | |
| | 38,800 | | | Pall Corp. | | | 2,126,628 | | |
| Media (5.8%) | | | |
| | 54,565 | | | Comcast Corp. Class A Special | | | 1,713,341 | | |
| | 53,908 | | | Scripps Networks Interactive, Inc. Class A | | | 3,065,209 | | |
| | | | 4,778,550 | | |
| Multiline Retail (2.9%) | | | |
| | 41,097 | | | Target Corp. | | | 2,391,434 | | |
| Oil, Gas & Consumable Fuels (9.4%) | | | |
| | 161,864 | | | BG Group PLC | | | 3,313,595 | | |
| | 35,100 | | | Marathon Petroleum Corp. | | | 1,576,692 | | |
| | 99,250 | | | Newfield Exploration Co. | | | 2,909,018 | * | |
| | | | 7,799,305 | | |
| Pharmaceuticals (3.1%) | | | |
| | 14,842 | | | Roche Holding AG | | | 2,563,702 | | |
Semiconductors & Semiconductor Equipment (8.1%) | | | |
| | 99,264 | | | Altera Corp. | | | 3,359,094 | | |
| | 117,608 | | | Texas Instruments, Inc. | | | 3,374,173 | | |
| | | | 6,733,267 | | |
| Trading Companies & Distributors (1.9%) | | | |
| | 8,134 | | | W.W. Grainger, Inc. | | | 1,555,546 | | |
| | | | | Total Common Stocks (Cost $63,045,715) | | | 80,548,911 | | |
See Notes to Financial Statements
6
| NUMBER OF SHARES | | | | VALUE† | |
| Short-Term Investments (2.5%) | | | |
| | 2,068,447 | | | State Street Institutional | | $ | 2,068,447 | | |
| | | | | Treasury Money Market | | | |
| | | | | Fund Institutional Class | | | |
| | | | | (Cost $2,068,447) | | | | | |
| | | | | Total Investments (99.7%) (Cost $65,114,162) | | | 82,617,358 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (0.3%) | | | 212,417 | | |
| | | | | Total Net Assets (100.0%) | | $ | 82,829,775 | | |
See Notes to Financial Statements
7
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 and exchange traded funds, 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 on a principal exchange or market for that security (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 (Level 2 inputs).
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
See Notes to Financial Statements
8
Notes to Schedule of Investments Guardian Portfolio (Unaudited) (cont'd)
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 or on days when foreign markets are closed and U.S. markets are open. In each of these events, 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, 2012:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks | |
| Beverages | | $ | 6,066,586 | | | $ | — | | | $ | — | | | $ | 6,066,586 | | |
| Capital Markets | | | 4,637,365 | | | | — | | | | — | | | | 4,637,365 | | |
| Chemicals | | | 1,681,589 | | | | — | | | | — | | | | 1,681,589 | | |
| Consumer Finance | | | 1,909,288 | | | | — | | | | — | | | | 1,909,288 | | |
| Diversified Financial Services | | | 2,727,300 | | | | — | | | | — | | | | 2,727,300 | | |
| Electronic Equipment, Instruments & Components | | | 3,304,949 | | | | — | | | | — | | | | 3,304,949 | | |
| Energy Equipment & Services | | | 4,523,117 | | | | — | | | | — | | | | 4,523,117 | | |
| Food Products | | | 2,936,976 | | | | — | | | | — | | | | 2,936,976 | | |
| Health Care Equipment & Supplies | | | 5,534,815 | | | | — | | | | — | | | | 5,534,815 | | |
| Household Products | | | 2,880,036 | | | | — | | | | — | | | | 2,880,036 | | |
| Industrial Conglomerates | | | 6,690,487 | | | | — | | | | — | | | | 6,690,487 | | |
| Industrial Gases | | | 1,632,364 | | | | — | | | | — | | | | 1,632,364 | | |
| Insurance | | | 3,296,139 | | | | — | | | | — | | | | 3,296,139 | | |
| Internet Software & Services | | | 3,364,406 | | | | — | | | | — | | | | 3,364,406 | | |
| IT Services | | | 1,415,062 | | | | — | | | | — | | | | 1,415,062 | | |
| Machinery | | | 2,126,628 | | | | — | | | | — | | | | 2,126,628 | | |
| Media | | | 4,778,550 | | | | — | | | | — | | | | 4,778,550 | | |
| Multiline Retail | | | 2,391,434 | | | | — | | | | — | | | | 2,391,434 | | |
| Oil, Gas & Consumable Fuels | | | 4,485,710 | | | | 3,313,595 | | | | — | | | | 7,799,305 | | |
| Pharmaceuticals | | | — | | | | 2,563,702 | | | | — | | | | 2,563,702 | | |
See Notes to Financial Statements
9
Notes to Schedule of Investments Guardian Portfolio (Unaudited) (cont'd)
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Semiconductors & Semiconductor Equipment | | $ | 6,733,267 | | | $ | — | | | $ | — | | | $ | 6,733,267 | | |
| Trading Companies & Distributors | | | 1,555,546 | | | | — | | | | — | | | | 1,555,546 | | |
| Total Common Stocks | | | 74,671,614 | | | | 5,877,297 | | | | — | | | | 80,548,911 | | |
| Short-Term Investments | | | — | | | | 2,068,447 | | | | — | | | | 2,068,447 | | |
| Total Investments | | $ | 74,671,614 | | | $ | 7,945,744 | | | $ | — | | | $ | 82,617,358 | | |
As of the six months ending June 30, 2012, certain foreign equity securities were transferred from Level 1 to Level 2 as a result of the Fund's procedures for valuing securities, as stated in the description of the valuation methods of foreign equity securities above. Based on beginning of period market values as of December 31, 2011, $5,958,202 was transferred from Level 1 to Level 2.
## At June 30, 2012, the cost of investments for U.S. federal income tax purposes was $65,467,675. Gross unrealized appreciation of investments was $18,266,297 and gross unrealized depreciation of investments was $1,116,614, resulting in net unrealized appreciation of $17,149,683, 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
| | | GUARDIAN PORTFOLIO | |
| | | June 30, 2012 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 82,617,358 | | |
| Dividends receivable | | | 90,336 | | |
| Receivable for securities sold | | | 239,802 | | |
| Receivable for Fund shares sold | | | 3,873 | | |
| Prepaid expenses and other assets | | | 3,779 | | |
| Total Assets | | | 82,955,148 | | |
| Liabilities | |
| Payable for Fund shares redeemed | | | 664 | | |
| Payable to investment manager (Note B) | | | 36,232 | | |
| Payable to administrator—net (Note B) | | | 30,114 | | |
| Accrued expenses and other payables | | | 58,363 | | |
| Total Liabilities | | | 125,373 | | |
| Net Assets at value | | $ | 82,829,775 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 62,870,615 | | |
| Undistributed net investment income (loss) | | | 487,517 | | |
| Accumulated net realized gains (losses) on investments | | | 1,969,873 | | |
| Net unrealized appreciation (depreciation) in value of investments | | | 17,501,770 | | |
| Net Assets at value | | $ | 82,829,775 | | |
| Net Assets | |
| Class I | | $ | 13,901,362 | | |
| Class S | | | 68,928,413 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | |
| Class I | | | 716,746 | | |
| Class S | | | 3,575,033 | | |
| Net Asset Value, offering and redemption price per share | |
| Class I | | $ | 19.40 | | |
| Class S | | | 19.28 | | |
| *Cost of Investments | | $ | 65,114,162 | | |
See Notes to Financial Statements
11
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | GUARDIAN PORTFOLIO | |
| | | For the Six Months Ended June 30, 2012 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 887,206 | | |
| Foreign taxes withheld | | | (26,794 | ) | |
| Total income | | $ | 860,412 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 232,331 | | |
| Administration fees (Note B): | |
| Class I | | | 22,207 | | |
| Class S | | | 104,519 | | |
| Distribution fees (Note B): | |
| Class S | | | 87,099 | | |
| Audit fees | | | 20,854 | | |
| Custodian fees (Note A) | | | 23,967 | | |
| Insurance expense | | | 2,627 | | |
| Legal fees | | | 19,869 | | |
| Shareholder reports | | | 14,421 | | |
| Trustees' fees and expenses | | | 26,573 | | |
| Miscellaneous | | | 1,929 | | |
| Total expenses | | | 556,396 | | |
| Expenses reimbursed by Management (Note B) | | | (38,639 | ) | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (1 | ) | |
| Total net expenses | | | 517,756 | | |
| Net investment income (loss) | | $ | 342,656 | | |
| Realized and Unrealized Gain (Loss) on Investments (Note A): | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 2,192,504 | | |
| Foreign currency | | | (2,293 | ) | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 2,371,214 | | |
| Foreign currency | | | (1,204 | ) | |
| Net gain (loss) on investments | | | 4,560,221 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 4,902,877 | | |
See Notes to Financial Statements
12
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | GUARDIAN PORTFOLIO | |
| | | Six Months Ended June 30, 2012 (Unaudited) | | Year Ended December 31, 2011 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | 342,656 | | | $ | 158,660 | | |
| Net realized gain (loss) on investments | | | 2,190,211 | | | | 4,377,091 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 2,370,010 | | | | (7,359,097 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | 4,902,877 | | | | (2,823,346 | ) | |
| Distributions to Shareholders From (Note A): | |
| Net investment income: | |
| Class I | | | — | | | | (78,575 | ) | |
| Class S | | | — | | | | (256,628 | ) | |
| Total distributions to shareholders | | | — | | | | (335,203 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold: | |
| Class I | | | 493,902 | | | | 8,767,410 | | |
| Class S | | | 421,016 | | | | 2,169,061 | | |
| Proceeds from reinvestment of dividends and distributions: | |
| Class I | | | — | | | | 78,575 | | |
| Class S | | | — | | | | 256,628 | | |
| Payments for shares redeemed: | |
| Class I | | | (2,562,181 | ) | | | (8,259,398 | ) | |
| Class S | | | (3,085,799 | ) | | | (9,516,461 | ) | |
| Net increase (decrease) from Fund share transactions | | | (4,733,062 | ) | | | (6,504,185 | ) | |
| Net Increase (Decrease) in Net Assets | | | 169,815 | | | | (9,662,734 | ) | |
| Net Assets: | |
| Beginning of period | | | 82,659,960 | | | | 92,322,694 | | |
| End of period | | $ | 82,829,775 | | | $ | 82,659,960 | | |
| Undistributed net investment income (loss) at end of period | | $ | 487,517 | | | $ | 144,861 | | |
See Notes to Financial Statements
13
Notes to Financial Statements Guardian Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: Neuberger Berman Advisers Management Trust (the "Trust") is 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 ("GAAP") 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 rate 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, 2012 was $103.
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 2008-2010. As of June 30, 2012, 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 GAAP. 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.
14
As determined on December 31, 2011, 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. For the year ended December 31, 2011, the Fund recorded the following permanent reclassifications:
| Paid-in Capital | | Undistributed Net Investment Income (Loss) | | Accumulated Net Realized Gains (Losses) on Investments | |
| $ | — | | | $ | (13,474 | ) | | $ | 13,474 | | |
For tax purposes, short-term gains are considered ordinary income.
The tax character of distributions paid during the years ended December 31, 2011 and December 31, 2010 was as follows:
| | | Distributions Paid From: | | | |
| Ordinary Income | | Long-Term Gains | | Total | |
| 2011 | | 2010 | | 2011 | | 2010 | | 2011 | | 2010 | |
| $ | 335,203 | | | $ | 283,439 | | | $ | — | | | $ | — | | | $ | 335,203 | | | $ | 283,439 | | |
As of December 31, 2011, 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 | | Other Temporary Differences | | Total | |
| $ | 144,455 | | | $ | 665,243 | | | $ | 14,777,798 | | | $ | (531,213 | ) | | $ | — | | | $ | 15,056,283 | | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales, forward contracts mark to market 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. The Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") became effective for the Fund on January 1, 2011. The Act modernizes several of the federal income and excise tax provisions related to RICs. 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 ("Post-Enactment"). Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character ("Pre-Enactment"). As determined at December 31, 2011, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| | | Pre-Enactment | | Post-Enactment (No Expiration Date) | |
| | | Expiring in: 2017 | | Long-Term | | Short-Term | |
| | | | | $ | 531,213 | | | $ | — | | | $ | — | | |
Post-Enactment capital loss carryforwards must be fully used before Pre-Enactment capital loss carryforwards; therefore, under certain circumstances, Pre-Enactment capital loss carryforwards available as of the report date may expire unused.
During the year ended December 31, 2011, the Fund utilized capital loss carryforwards of $3,680,897.
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.
15
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 of the investment companies 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, 2012, 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.
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. Accordingly, for the six months ended June 30, 2012, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.55% of the Fund's average daily net assets.
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.
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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 may be 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, transaction costs and dividend expense on short sales, if any) ("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, 2012 | |
| Class I | | | 1.00 | % | | 12/31/15 | | $ | — | | |
| Class S | | | 1.25 | % | | 12/31/15 | | | 38,639 | | |
(1) Expense limitation per annum of the respective class' average daily net assets.
Each respective class has agreed to repay Management through December 31, 2018 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 in place at the time the fees and expenses were foregone or reimbursed, 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, 2012, there was no repayment to Management under its contractual expense limitation. At June 30, 2012, the Fund's Class I shares had no contingent liability to Management under its contractual expense limitation. At June 30, 2012, the Fund's Class S shares contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | | | |
| | | 2012 | | 2013 | | 2014 | | 2015 | | Total | |
| Class S | | $ | 79,295 | | | $ | 91,992 | | | $ | 96,517 | | | $ | 38,639 | | | $ | 306,443 | | |
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")). NBSH Acquisition, LLC ("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 55% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 45% of such common units. Pursuant to agreements among NBG, NBSH and the LBHI Parties, NBG is entitled to acquire the remaining common units
17
not owned by NBSH through a process that is expected to end in 2017. In April 2012, NBG committed to and began payments for equity purchases from the LBHI parties, which are expected to raise employee ownership to approximately 64% by year end.
Note C—Securities Transactions:
During the six months ended June 30, 2012, there were purchase and sale transactions (excluding short-term securities) of $12,421,454 and $18,118,486, respectively.
During the six months ended June 30, 2012, 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, 2012 and for the year ended December 31, 2011 was as follows:
For the Six Months Ended June 30, 2012
| | | Shares Sold | | Shares Issued on Reinvestment of Dividends and Distributions | | Shares Redeemed | | Total | |
| Class I | | | 25,188 | | | | — | | | | (133,261 | ) | | | (108,073 | ) | |
| Class S | | | 21,756 | | | | — | | | | (160,718 | ) | | | (138,962 | ) | |
For the Year Ended December 31, 2011
| | | Shares Sold | | Shares Issued on Reinvestment of Dividends and Distributions | | Shares Redeemed | | Total | |
| Class I | | | 440,908 | | | | 4,370 | | | | (427,584 | ) | | | 17,694 | | |
| Class S | | | 113,237 | | | | 14,345 | | | | (501,949 | ) | | | (374,367 | ) | |
Note E—Line of Credit:
At June 30, 2012, 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 0.10% 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, 2012. During the six months ended June 30, 2012, the Fund did not utilize this line of credit.
Note F—Recent Accounting Pronouncement:
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to
18
enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements.
Note G—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
Guardian Portfolio
The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. Per share amounts that round to less than $.01 or $(.01) per share are presented as $.00 or $(.00), respectively.
| Class I | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 18.29 | | | $ | 18.94 | | | $ | 15.98 | | | $ | 12.45 | | | $ | 21.11 | | | $ | 19.71 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .09 | | | | .05 | | | | .08 | | | | .05 | | | | .12 | | | | .11 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 1.02 | | | | (.61 | ) | | | 2.95 | | | | 3.64 | | | | (7.97 | ) | | | 1.35 | | |
| Total From Investment Operations | | | 1.11 | | | | (.56 | ) | | | 3.03 | | | | 3.69 | | | | (7.85 | ) | | | 1.46 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.09 | ) | | | (.07 | ) | | | (.16 | ) | | | (.10 | ) | | | (.06 | ) | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | — | | | | (.71 | ) | | | — | | |
| Total Distributions | | | — | | | | (.09 | ) | | | (.07 | ) | | | (.16 | ) | | | (.81 | ) | | | (.06 | ) | |
| Net Asset Value, End of Period | | $ | 19.40 | | | $ | 18.29 | | | $ | 18.94 | | | $ | 15.98 | | | $ | 12.45 | | | $ | 21.11 | | |
Total Return†† | | | 6.07 | %** | | | (2.94 | )% | | | 19.01 | % | | | 29.69 | % | | | (37.24 | )% | | | 7.39 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 13.9 | | | $ | 15.1 | | | $ | 15.3 | | | $ | 13.7 | | | $ | 67.0 | | | $ | 129.1 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.11 | %* | | | 1.13 | % | | | 1.13 | % | | | 1.10 | % | | | 1.01 | % | | | .99 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.11 | %* | | | 1.13 | % | | | 1.13 | % | | | 1.10 | % | | | 1.01 | % | | | .99 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .92 | %* | | | .26 | % | | | .50 | % | | | .39 | % | | | .65 | % | | | .55 | % | |
| Portfolio Turnover Rate | | | 15 | %** | | | 27 | % | | | 35 | % | | | 30 | % | | | 32 | % | | | 38 | % | |
See Notes to Financial Highlights
20
Financial Highlights (cont'd)
| Class S | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 18.19 | | | $ | 18.84 | | | $ | 15.89 | | | $ | 12.38 | | | $ | 21.02 | | | $ | 19.67 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .08 | | | | .03 | | | | .06 | | | | .02 | | | | .08 | | | | .09 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 1.01 | | | | (.61 | ) | | | 2.94 | | | | 3.63 | | | | (7.92 | ) | | | 1.32 | | |
| Total From Investment Operations | | | 1.09 | | | | (.58 | ) | | | 3.00 | | | | 3.65 | | | | (7.84 | ) | | | 1.41 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.07 | ) | | | (.05 | ) | | | (.14 | ) | | | (.09 | ) | | | (.06 | ) | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | — | | | | (.71 | ) | | | — | | |
| Total Distributions | | | — | | | | (.07 | ) | | | (.05 | ) | | | (.14 | ) | | | (.80 | ) | | | (.06 | ) | |
| Net Asset Value, End of Period | | $ | 19.28 | | | $ | 18.19 | | | $ | 18.84 | | | $ | 15.89 | | | $ | 12.38 | | | $ | 21.02 | | |
Total Return†† | | | 5.99 | %** | | | (3.08 | )% | | | 18.94 | % | | | 29.50 | % | | | (37.36 | )% | | | 7.14 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 68.9 | | | $ | 67.6 | | | $ | 77.0 | | | $ | 71.6 | | | $ | 48.6 | | | $ | 32.5 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.36 | %* | | | 1.38 | % | | | 1.38 | % | | | 1.38 | % | | | 1.27 | % | | | 1.24 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.25 | %* | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.24 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .79 | %* | | | .16 | % | | | .37 | % | | | .16 | % | | | .48 | % | | | .42 | % | |
| Portfolio Turnover Rate | | | 15 | %** | | | 27 | % | | | 35 | % | | | 30 | % | | | 32 | % | | | 38 | % | |
See Notes to Financial Highlights
21
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 indicate 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 class actions proceeds listed in Note A-4 had no impact on total return.
# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.
‡ 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. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, the annualized ratios of net expenses to average daily net assets would have been:
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| Guardian Portfolio Class I | | | 1.11 | % | | | 1.13 | % | | | 1.13 | % | | | 1.10 | % | | | 1.01 | % | | | .99 | % | |
| Guardian Portfolio Class S | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.24 | % | |
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.
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
International Portfolio
S Class Shares
Semi-Annual Report
June 30, 2012
F0324 08/12
International Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) International Portfolio posted a total return of 5.09% for the six months ended June 30, 2012 and outperformed its benchmark, the MSCI EAFE® Index, which posted a total return of 3.38% during the period.
The global equity markets' first quarter rally gave way to a second quarter retreat, as policy and macroeconomic uncertainty continued to dominate both in Europe and the U.S. Growth in emerging markets appeared to be slowing as well.
The eurozone's GDP shrank slightly in the first quarter as governments implemented austerity by raising taxes and reducing spending. The European public's discontent with the handling of the area's economy was reflected with new governments being installed in both France, where its new leader pushed for greater government investment, and Greece, where a new coalition government requested further debt relief. The markets also focused on Spain, where real estate-related losses threatened to overwhelm the banking sector. The European Union (EU) stepped in to support the Spanish banks and has eased loan terms for both the Irish and Spanish bank bailouts. While EU banking and economic policy debates continue, business and consumer demand continues to weaken given the ongoing uncertainty.
The Chinese economy continued to slow, with manufacturing activity reaching a seven-month low in June. The government has lowered banks' reserve ratios to help stimulate lending and is offering incentives for consumer spending. We expect the consumer to be the main beneficiary for now, as the markets wait for broader stimulus measures.
After strengthening in the first quarter, the U.S. economic outlook became less clear recently. While June manufacturing activity weakened, a possible bottoming of housing prices and lower oil prices may help the world's largest economy maintain its low growth trajectory. Still, the contentious political environment threatens to cause a "fiscal cliff" at year-end, with higher taxes and automatic cuts in government spending with a cumulative impact of 4% of GDP.
By country, Belgium, Singapore and Denmark led the EAFE Index this period. Somewhat unsurprisingly, the weakest markets included Greece, Portugal and Spain, each closely tied to European debt concerns. By sector, Consumer Discretionary, Financials and Consumer Staples outperformed the index overall. Energy, Materials and Information Technology lagged.
The Portfolio's outperformance was primarily the result of strong stock selection within the Information Technology, Industrials and Health Care sectors. Some individual disappointments as well as an underweight allocation hurt relative performance in Financials. Stock selection in the Consumer Discretionary sector also detracted from performance. From a country perspective, stock selection within Japan made the largest positive contribution, followed by a zero allocation to Spain and stock selection within the UK. Exposure to Canadian natural resources companies and an overweight to Dutch names hurt performance, as did stock selection in Sweden.
Among top contributors was SOFTBANK, a Japanese mobile telecom provider, which continued to add new subscribers faster than competitors while maintaining a focus on profitability. MacDonald Dettweiler's (MDA) transformational acquisition of Loral's satellite manufacturing business, which transformed MDA into becoming the top global commercial communications satellite player, was well-received by the markets. Nihon Kohden, a Japanese medical device manufacturer, posted strong earnings led by domestic sales.
Among the detractors were Chemring, a UK-based defense product manufacturer, which missed earnings as some government contracts were delayed. We have subsequently sold Chemring. French telecom supplier Alcatel-Lucent announced disappointing quarterly results, with revenue down significantly on a sharp drop in European sales and the poor U.S. and Chinese business environment. We remain constructive on this stock longer term, believing the company's leading technology will help clients meet the surging demand for mobile telecom bandwidth. We believe the stock price reflects immediate concerns, but not longer-term opportunities. Imdex, the energy and mining services company, announced poor earnings including a loss in its relatively new oil and gas division. We remain confident in its long-term prospects.
1
Given a challenging outlook, the Portfolio remains defensively positioned. In Europe, we favor countries outside the Euro area that we believe have superior growth prospects, such as Switzerland and the Nordic countries. We also favor companies with recurring revenues and significant operations in North America and Emerging Markets. Many European multinationals are starting to reach very attractive valuations.
From a sector perspective, Materials remains a large sector overweight, where our focus is specialty chemical companies with pricing power and relatively stable end markets, as well as precious metals. We are overweight the mobile segment of Telecoms, where increasing adoption of mobile data could drive both profitability and increased capital spending for telecoms equipment—in turn benefiting the Information Technology sector. We have added to our Consumer holdings as the consumer offers an area of growth, especially in the emerging markets. Despite our Energy holdings' relative underperformance this period, we continue to favor upstream exploration companies and their service providers, as we believe oil is becoming harder to find and more expensive to extract. We remain underweighted in Financials, with no bank holdings in the eurozone or Japan. The latest scandal, involving possible conflicts of interest at banks that collectively determine the LIBOR rate, exemplifies that subsector's issues and related regulatory risk.
Sincerely,
BENJAMIN SEGAL
PORTFOLIO MANAGER
Information about the principal risks of investing in the Portfolio is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Portfolio are subject to change.
2
International Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 14.6 | % | |
| Consumer Staples | | | 11.8 | | |
| Energy | | | 7.6 | | |
| Financials | | | 13.7 | | |
| Health Care | | | 11.3 | | |
| Industrials | | | 14.8 | | |
| Information Technology | | | 6.4 | | |
| Materials | | | 13.4 | | |
| Telecommunication Services | | | 5.8 | | |
| Short-Term Investments | | | 0.6 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2012 | |
| | | Date | | 06/30/2012 | | 1 Year | | 5 Years | | Life of Fund1 | |
| International Portfolio | | 04/29/2005 | | | 5.09 | % | | | –13.08 | % | | | –5.30 | % | | | 2.72 | % | |
MSCI EAFE® Index2 | | | | | | | 3.38 | % | | | –13.38 | % | | | –5.63 | % | | | 2.99 | % | |
The performance data quoted represent past performance and do not indicate future results. 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.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares. The results do 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.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2011 was 2.90% for Class S shares (before expense reimbursements and/or fee waivers, if any). The expense ratio was 1.50% for Class S shares after expense reimbursements and/or fee waivers.
3
Endnotes
1 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.
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 2010, 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. Please note that indices do not take into account any fees, expenses or tax consequences of investing in the individual securities that they track, and individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions. The Portfolio may invest in securities not included in a described index and/or may not invest in all securities included in a described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not Management'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, Management 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) the investments for one or more other registered funds that have names, investment objectives, and investment styles similar to those of the Portfolio. You should be aware that the Portfolio is likely to differ from the other mutual fund(s) 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 fund(s).
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.
© 2012 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses (Unaudited)
As a Fund shareholder, you incur two types of costs: (1) transaction costs such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and compare these costs with the ongoing costs of investing in other mutual funds.
This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2012 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 and 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 6/30/12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO
| Actual | | Beginning Account Value 1/1/12 | | Ending Account Value 6/30/12 | | Expenses Paid During the Period* 1/1/12 – 6/30/12 | |
| Class S | | $ | 1,000.00 | | | $ | 1,050.90 | | | $ | 7.70 | | |
| Hypothetical (5% annual return before expenses)** | |
| Class S | | $ | 1,000.00 | | | $ | 1,017.35 | | | $ | 7.57 | | |
* Expenses are equal to the annualized expense ratio of 1.51%, multiplied by the average account value over the period, multiplied by 182/366 (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 366.
5
Schedule of Investments International Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (98.2%) | | | |
| Australia (2.3%) | | | |
| | 6,600 | | | CSL Ltd. | | $ | 267,707 | | |
| | 7,300 | | | Iluka Resources Ltd. | | | 86,157 | | |
| | 47,295 | | | Imdex Ltd. | | | 86,547 | | |
| | | | 440,411 | | |
| Belgium (1.9%) | | | |
| | 2,179 | | | Anheuser-Busch InBev NV | | | 171,795 | | |
| | 4,610 | | | Colruyt SA | | | 205,669 | | |
| | | | 377,464 | | |
| Canada (7.7%) | | | |
| | 4,460 | | | Cenovus Energy, Inc. | | | 141,804 | | |
| | 10,902 | | | Corus Entertainment, Inc., B Shares | | | 245,432 | | |
| | 5,500 | | | Goldcorp, Inc. | | | 207,067 | | |
| | 3,200 | | | Home Capital Group, Inc. | | | 142,006 | | |
| | 3,888 | | | MacDonald, Dettwiler & Associates Ltd. | | | 223,175 | | |
| | 20,800 | | | New Gold, Inc. | | | 198,377 | * | |
| | 6,300 | | | Silver Wheaton Corp. | | | 169,365 | | |
| | 3,512 | | | Vermilion Energy, Inc. | | | 158,576 | | |
| | | | 1,485,802 | | |
| Chile (1.1%) | | | |
| | 3,810 | | | Sociedad Quimica y Minera de Chile SA ADR, B Shares | | | 212,103 | | |
| China (2.1%) | | | |
| | 209,500 | | | China Liansu Group Holdings Ltd. | | | 91,441 | | |
| | 3,650 | | | China Mobile Ltd. ADR | | | 199,545 | | |
| | 75,600 | | | Dongfeng Motor Group Co. Ltd., H Shares | | | 118,763 | | |
| | | | 409,749 | | |
| Czech Republic (0.5%) | | | |
| | 600 | | | Komercni Banka A/S | | | 104,671 | | |
| Denmark (2.8%) | | | |
| | 1,328 | | | Novo Nordisk A/S Class B | | | 192,609 | | |
| | 8,725 | | | Sydbank A/S | | | 141,416 | * | |
| | 3,686 | | | Tryg A/S | | | 207,206 | | |
| | | | 541,231 | | |
| France (8.4%) | | | |
| | 115,208 | | | Alcatel-Lucent | | | 189,619 | * | |
| | 2,765 | | | Arkema SA | | | 181,296 | | |
| | 5,755 | | | CFAO SA | | | 272,426 | | |
| | 4,793 | | | Eutelsat Communications SA | | | 147,441 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| | 600 | | | LVMH Moet Hennessy Louis Vuitton SA | | $ | 91,314 | | |
| | 1,440 | | | Pernod-Ricard SA | | | 153,982 | | |
| | 11,145 | | | Rexel SA | | | 190,367 | | |
| | 5,126 | | | Sodexo | | | 399,126 | | |
| | | | 1,625,571 | | |
| Germany (8.1%) | | | |
| | 2,220 | | | Brenntag AG | | | 245,682 | | |
| | 1,115 | | | Continental AG | | | 92,947 | | |
| | 4,361 | | | Deutsche Boerse AG | | | 235,280 | | |
| | 13,975 | | | Deutsche Telekom AG | | | 153,158 | | |
| | 4,371 | | | Fresenius Medical Care AG & Co. | | | 308,716 | | |
| | 3,186 | | | Gerresheimer AG | | | 149,969 | * | |
| | 1,766 | | | Linde AG | | | 275,038 | | |
| | 4,500 | | | NORMA Group | | | 98,877 | | |
| | | | 1,559,667 | | |
| Indonesia (0.5%) | | | |
| | 123,000 | | | PT Bank Mandiri (Persero)Tbk | | | 95,439 | | |
| Ireland (0.6%) | | | |
| | 5,005 | | | DCC PLC | | | 116,011 | | |
| Japan (15.2%) | | | |
| | 6,500 | | | BRIDGESTONE Corp. | | | 149,267 | | |
| | 600 | | | FANUC Corp. | | | 98,629 | | |
| | 390 | | | Jupiter Telecommunications Co. Ltd. | | | 397,635 | | |
| | 21,600 | | | KANSAI PAINT Co. Ltd. | | | 231,462 | | |
| | 54 | | | Kenedix Realty Investment Corp. | | | 174,593 | | |
| | 600 | | | KEYENCE Corp. | | | 148,424 | | |
| | 10,300 | | | Nihon Kohden Corp. | | | 314,316 | | |
| | 3,400 | | | PIGEON Corp. | | | 148,958 | | |
| | 1,100 | | | SMC Corp. | | | 190,715 | | |
| | 6,900 | | | SOFTBANK Corp. | | | 256,843 | | |
| | 5,400 | | | SUGI HOLDINGS Co. Ltd. | | | 177,157 | | |
| | 8,800 | | | Sundrug Co. Ltd. | | | 286,544 | | |
| | 9,000 | | | TOYOTA MOTOR Corp. | | | 363,260 | | |
| | | | 2,937,803 | | |
| Korea (3.1%) | | | |
| | 804 | | | Hyundai Mobis | | | 194,886 | | |
| | 435 | | | Samsung Electronics Co. Ltd. GDR | | | 232,568 | | |
| | 2,500 | | | Shinhan Financial Group Co. Ltd. ADR | | | 177,450 | | |
| | | | 604,904 | | |
| Netherlands (5.4%) | | | |
| | 4,006 | | | Akzo Nobel NV | | | 188,541 | | |
| | 17,770 | | | Koninklijke Ahold NV | | | 220,122 | | |
| | 3,406 | | | Nutreco NV | | | 237,523 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| | 4,160 | | | Royal Imtech NV | | $ | 99,333 | | |
| | 9,191 | | | Unilever NV | | | 307,029 | | |
| | | | 1,052,548 | | |
| Norway (1.9%) | | | |
| | 16,281 | | | DnB ASA | | | 161,890 | | |
| | 11,900 | | | Norwegian Property ASA | | | 16,308 | | |
| | 24,974 | | | ProSafe SE | | | 181,303 | | |
| | 963 | | | Veripos, Inc. | | | 259 | * | |
| | | | 359,760 | | |
| Russia (0.6%) | | | |
| | 1,130 | | | NovaTek OAO GDR | | | 120,659 | | |
| Singapore (1.1%) | | | |
| | 14,000 | | | United Overseas Bank Ltd. | | | 207,893 | | |
| Sweden (2.9%) | | | |
| | 2,675 | | | Axfood AB | | | 85,069 | | |
| | 4,103 | | | Elekta AB, B Shares | | | 187,490 | | |
| | 10,500 | | | Nordea Bank AB | | | 90,488 | | |
| | 20,975 | | | Telefonaktiebolaget LM Ericsson, B Shares | | | 191,915 | | |
| | | | 554,962 | | |
| Switzerland (11.1%) | | | |
| | 1,151 | | | Bucher Industries AG | | | 183,830 | | |
| | 274 | | | Givaudan SA | | | 268,921 | * | |
| | 3,919 | | | Nestle SA | | | 233,878 | | |
| | 3,442 | | | Novartis AG | | | 192,447 | | |
| | 580 | | | Partners Group Holding AG | | | 103,154 | | |
| | 1,871 | | | Roche Holding AG | | | 323,183 | | |
| | 167 | | | SGS SA | | | 313,120 | | |
| | 103 | | | Sika AG | | | 198,895 | | |
| | 2,770 | | | Sulzer AG | | | 328,417 | | |
| | | | 2,145,845 | | |
| Turkey (0.5%) | | | |
| | 139,633 | | | Sinpas Gayrimenkul Yatirim Ortakligi A/S | | | 96,164 | | |
| United Kingdom (20.4%) | | | |
| | 44,471 | | | Amlin PLC | | | 246,880 | | |
| | 8,925 | | | BG Group PLC | | | 182,708 | | |
| | 4,610 | | | BHP Billiton PLC | | | 131,027 | | |
| | 14,727 | | | Bunzl PLC | | | 240,709 | | |
| | 27,800 | | | Cairn Energy PLC | | | 115,761 | * | |
| | 7,545 | | | Chemring Group PLC | | | 32,484 | | |
| | 18,930 | | | Diploma PLC | | | 132,198 | | |
| | 13,893 | | | Experian PLC | | | 196,005 | | |
| | 4,116 | | | Fidessa Group PLC | | | 100,093 | | |
| | 24,935 | | | ICAP PLC | | | 131,987 | | |
| | 23,043 | | | Informa PLC | | | 137,497 | | |
| | 53,042 | | | Mitie Group PLC | | | 216,313 | | |
| | 6,840 | | | Petrofac Ltd. | | | 149,299 | | |
| | 23,439 | | | Reed Elsevier PLC | | | 187,867 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| | 2,900 | | | Rio Tinto PLC ADR | | $ | 138,649 | | |
| | 56,380 | | | RPS Group PLC | | | 184,410 | | |
| | 9,629 | | | Subsea 7 SA | | | 190,559 | | |
| | 15,730 | | | Synergy Health PLC | | | 222,306 | | |
| | 9,503 | | | Tullow Oil PLC | | | 219,639 | | |
| | 174,287 | | | Vodafone Group PLC | | | 489,878 | | |
| | 8,000 | | | Willis Group Holdings PLC | | | 291,920 | | |
| | | | 3,938,189 | | |
| | | | | Total Common Stocks (Cost $18,442,900) | | | 18,986,846 | | |
| Rights (0.0%) | | | |
| Belgium (0.0%) | | | |
| | 112,269 | | | Anheuser-Busch InBev NV VVPR Strip (Cost $43) | | | 142 | *^^ | |
| Short-Term Investments (0.6%) | | | |
| | 115,128 | | | State Street Institutional Treasury Money Market Fund Institutional Class (Cost $115,128) | | | 115,128 | | |
| | | | | Total Investments (98.8%) (Cost $18,558,071) | | | 19,102,116 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (1.2%) | | | 222,544 | | |
| | | | | Total Net Assets (100.0%) | | $ | 19,324,660 | | |
See Notes to Schedule of Investments
7
SUMMARY SCHEDULE OF INVESTMENTS BY INDUSTRY INTERNATIONAL PORTFOLIO (UNAUDITED)
| Industry | | Value† | | Percentage of Net Assets | |
| Chemicals | | $ | 1,556,256 | | | | 8.0 | % | |
| Media | | | 1,115,872 | | | | 5.7 | % | |
| Metals & Mining | | | 1,017,189 | | | | 5.2 | % | |
| Commercial Banks | | | 979,247 | | | | 5.0 | % | |
| Food & Staples Retailing | | | 974,561 | | | | 5.0 | % | |
| Wireless Telecommunication Services | | | 946,266 | | | | 4.9 | % | |
| Oil, Gas & Consumable Fuels | | | 939,406 | | | | 4.9 | % | |
| Machinery | | | 900,468 | | | | 4.7 | % | |
| Food Products | | | 778,430 | | | | 4.0 | % | |
| Insurance | | | 746,006 | | | | 3.9 | % | |
| Pharmaceuticals | | | 708,239 | | | | 3.7 | % | |
| Trading Companies & Distributors | | | 676,758 | | | | 3.5 | % | |
| Health Care Providers & Services | | | 531,022 | | | | 2.7 | % | |
| Energy Equipment & Services | | | 521,161 | | | | 2.7 | % | |
| Professional Services | | | 509,125 | | | | 2.6 | % | |
| Health Care Equipment & Supplies | | | 501,806 | | | | 2.6 | % | |
| Automobiles | | | 482,023 | | | | 2.5 | % | |
| Auto Components | | | 437,100 | | | | 2.3 | % | |
| Commercial Services & Supplies | | | 400,723 | | | | 2.1 | % | |
| Hotels, Restaurants & Leisure | | | 399,126 | | | | 2.1 | % | |
| Communications Equipment | | | 381,534 | | | | 2.0 | % | |
| Beverages | | | 325,919 | | | | 1.7 | % | |
| Software | | | 323,268 | | | | 1.7 | % | |
| Electronic Equipment, Instruments & Components | | | 280,622 | | | | 1.4 | % | |
| Distributors | | | 272,426 | | | | 1.4 | % | |
| Real Estate Investment Trusts | | | 270,757 | | | | 1.4 | % | |
| Biotechnology | | | 267,707 | | | | 1.4 | % | |
| Diversified Financial Services | | | 235,280 | | | | 1.2 | % | |
| Capital Markets | | | 235,141 | | | | 1.2 | % | |
| Semiconductors & Semiconductor Equipment | | | 232,568 | | | | 1.2 | % | |
| Diversified Telecommunication Services | | | 153,158 | | | | 0.8 | % | |
| Life Sciences Tools & Services | | | 149,969 | | | | 0.8 | % | |
| Household Products | | | 148,958 | | | | 0.8 | % | |
| Thrifts & Mortgage Finance | | | 142,006 | | | | 0.7 | % | |
| Industrial Conglomerates | | | 116,011 | | | | 0.6 | % | |
| Construction & Engineering | | | 99,333 | | | | 0.5 | % | |
| Building Products | | | 91,441 | | | | 0.5 | % | |
| Textiles, Apparel & Luxury Goods | | | 91,314 | | | | 0.5 | % | |
| Aerospace & Defense | | | 32,484 | | | | 0.2 | % | |
| Real Estate Management & Development | | | 16,308 | | | | 0.1 | % | |
| Short-Term Investments and Other Assets—Net | | | 337,672 | | | | 1.8 | % | |
| | | $ | 19,324,660 | | | | 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 and exchange traded funds, 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 on a principal exchange or market for that security (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 (Level 2 inputs).
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.,
See Notes to Financial Statements
9
Notes to Schedule of Investments International Portfolio (Unaudited) (cont'd)
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 or on days when foreign markets are closed and U.S. markets are open. In each of these events, 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, 2012:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3§ | | Total | |
| Investments: | |
| Common Stocks | |
| Australia | | $ | — | | | $ | 440,411 | | | $ | — | | | $ | 440,411 | | |
| Belgium | | | — | | | | 377,464 | | | | — | | | | 377,464 | | |
| Canada | | | 1,485,802 | | | | — | | | | — | | | | 1,485,802 | | |
| Chile | | | 212,103 | | | | — | | | | — | | | | 212,103 | | |
| China | | | 199,545 | | | | 210,204 | | | | — | | | | 409,749 | | |
| Czech Republic | | | — | | | | 104,671 | | | | — | | | | 104,671 | | |
| Denmark | | | — | | | | 541,231 | | | | — | | | | 541,231 | | |
| France | | | — | | | | 1,625,571 | | | | — | | | | 1,625,571 | | |
| Germany | | | — | | | | 1,559,667 | | | | — | | | | 1,559,667 | | |
| Indonesia | | | — | | | | 95,439 | | | | — | | | | 95,439 | | |
| Ireland | | | — | | | | 116,011 | | | | — | | | | 116,011 | | |
| Japan | | | 397,635 | | | | 2,540,168 | | | | — | | | | 2,937,803 | | |
| Korea | | | 177,450 | | | | 427,454 | | | | — | | | | 604,904 | | |
| Netherlands | | | — | | | | 1,052,548 | | | | — | | | | 1,052,548 | | |
| Norway | | | — | | | | 359,501 | | | | 259 | | | | 359,760 | | |
| Russia | | | — | | | | 120,659 | | | | — | | | | 120,659 | | |
| Singapore | | | — | | | | 207,893 | | | | — | | | | 207,893 | | |
| Sweden | | | — | | | | 554,962 | | | | — | | | | 554,962 | | |
| Switzerland | | | — | | | | 2,145,845 | | | | — | | | | 2,145,845 | | |
| Turkey | | | — | | | | 96,164 | | | | — | | | | 96,164 | | |
| United Kingdom | | | 430,569 | | | | 3,507,620 | | | | — | | | | 3,938,189 | | |
| Total Common Stocks | | | 2,903,104 | | | | 16,083,483 | | | | 259 | | | | 18,986,846 | | |
| Rights^ | | | 142 | | | | — | | | | — | | | | 142 | | |
| Short-Term Investments | | | — | | | | 115,128 | | | | — | | | | 115,128 | | |
| Total Investments | | $ | 2,903,246 | | | $ | 16,198,611 | | | $ | 259 | | | $ | 19,102,116 | | |
See Notes to Financial Statements
10
Notes to Schedule of Investments International Portfolio (Unaudited) (cont'd)
^ 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 1/1/12 | | Accrued discounts/ (premiums) | | Realized gain/loss | | Change in unrealized appreciation/ (depreciation) | | Purchases | | Sales | | Transfers in to Level 3 | | Transfers out of Level 3 | | Balance, as of 6/30/12 | | Net change in unrealized appreciation/ (depreciation) from investments still held as of 6/30/12 | |
Common Stocks Norway | | $ | — | | | $ | — | | | $ | — | | | $ | 259 | | | $ | 0 | | | $ | — | | | $ | — | | | $ | — | | | $ | 259 | | | $ | 259 | | |
Significant unobservable inputs developed by Management and used in the fair value measurement of the Fund's equity investments include book value of common stock.
Following is quantitative information about significant unobservable inputs:
| Asset Class | | Fair Value at 6/30/12 | | Valuation Techniques | | Unobservable Input | | Range | |
Common Stocks Norway | | $ | 259 | | | Market Pricing | | Price To Book Value Ratio | | | 0.2687 | | |
As of the six months ending June 30, 2012, certain foreign equity securities were transferred from Level 1 to Level 2 as a result of the Fund's procedures for valuing securities, as stated in the description of the valuation methods of foreign equity securities above. Based on beginning of period market values as of December 31, 2011, $14,022,423 was transferred from Level 1 to Level 2.
## At June 30, 2012, the cost of investments for U.S. federal income tax purposes was $18,804,557. Gross unrealized appreciation of investments was $1,693,499 and gross unrealized depreciation of investments was $1,395,940, resulting in net unrealized appreciation of $297,559, based on cost for U.S. federal income tax purposes.
* Security did not produce income during the last twelve months.
^^ Value of the security was determined using methods the Board has approved on the belief they reflect fair value.
See Notes to Financial Statements
11
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | INTERNATIONAL PORTFOLIO | |
| | | June 30, 2012 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 19,102,116 | | |
| Foreign currency | | | 9,024 | | |
| Dividends and interest receivable | | | 97,365 | | |
| Receivable for securities sold | | | 248,725 | | |
| Receivable for Fund shares sold | | | 3,570 | | |
| Receivable from Management—net (Note B) | | | 4,759 | | |
| Prepaid expenses and other assets | | | 1,213 | | |
| Total Assets | | | 19,466,772 | | |
| Liabilities | |
| Payable for securities purchased | | | 5,246 | | |
| Payable for Fund shares redeemed | | | 82,672 | | |
| Payable to investment manager (Note B) | | | 13,089 | | |
| Accrued expenses and other payables | | | 41,105 | | |
| Total Liabilities | | | 142,112 | | |
| Net Assets at value | | $ | 19,324,660 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 151,998,119 | | |
| Undistributed net investment income (loss) | | | 381,762 | | |
| Accumulated net realized gains (losses) on investments | | | (133,597,218 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 541,997 | | |
| Net Assets at value | | $ | 19,324,660 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 2,176,391 | | |
| Net Asset Value, offering and redemption price per share | | $ | 8.88 | | |
| *Cost of Investments | | $ | 18,558,071 | | |
| Total cost of foreign currency | | $ | 9,031 | | |
See Notes to Financial Statements
12
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | INTERNATIONAL PORTFOLIO | |
| | | For the Six Months Ended June 30, 2012 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 421,330 | | |
| Interest income—unaffiliated issuers | | | 1 | | |
| Foreign taxes withheld | | | (37,008 | ) | |
| Total income | | $ | 384,323 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 86,146 | | |
| Administration fees (Note B) | | | 30,404 | | |
| Distribution fees (Note B) | | | 25,337 | | |
| Audit fees | | | 20,854 | | |
| Custodian fees (Note A) | | | 38,336 | | |
| Legal fees | | | 4,999 | | |
| Shareholder reports | | | 13,221 | | |
| Trustees' fees and expenses | | | 26,510 | | |
| Miscellaneous | | | 6,891 | | |
| Total expenses | | | 252,698 | | |
| Expenses reimbursed by Management (Note B) | | | (99,664 | ) | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (2 | ) | |
| Total net expenses | | | 153,032 | | |
| Net investment income (loss) | | $ | 231,291 | | |
| Realized and Unrealized Gain (Loss) on Investments (Note A): | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | (21,462 | ) | |
| Foreign currency | | | 2,040 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 848,838 | | |
| Foreign currency | | | (8,596 | ) | |
| Net gain (loss) on investments | | | 820,820 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 1,052,111 | | |
See Notes to Financial Statements
13
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | INTERNATIONAL PORTFOLIO | |
| | | Six Months Ended June 30, 2012 (Unaudited) | | Year Ended December 31, 2011 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | 231,291 | | | $ | 259,427 | | |
| Net realized gain (loss) on investments | | | (19,422 | ) | | | 876,370 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 840,242 | | | | (4,111,760 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | 1,052,111 | | | | (2,975,963 | ) | |
| Distributions to Shareholders From (Note A): | |
| Net investment income | | | — | | | | (1,454,260 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold | | | 677,809 | | | | 2,732,858 | | |
| Proceeds from reinvestment of dividends and distributions | | | — | | | | 1,454,260 | | |
| Payments for shares redeemed | | | (2,307,493 | ) | | | (4,681,550 | ) | |
| Redemption fees retained | | | — | | | | 162 | | |
| Net increase (decrease) from Fund share transactions | | | (1,629,684 | ) | | | (494,270 | ) | |
| Net Increase (Decrease) in Net Assets | | | (577,573 | ) | | | (4,924,493 | ) | |
| Net Assets: | |
| Beginning of period | | | 19,902,233 | | | | 24,826,726 | | |
| End of period | | $ | 19,324,660 | | | $ | 19,902,233 | | |
| Undistributed net investment income (loss) at end of period | | $ | 381,762 | | | $ | 150,471 | | |
See Notes to Financial Statements
14
Notes to Financial Statements International Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: Neuberger Berman Advisers Management Trust (the "Trust") is 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 ("GAAP") 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 rate 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 2008 - 2010. As of June 30, 2012, 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 GAAP. These differences are primarily due to differing treatments of income and gains on
15
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, 2011, permanent differences resulting primarily from different book and tax accounting for foreign currency gains and losses 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. For the year ended December 31, 2011, the Fund recorded the following permanent reclassifications:
| Paid-in Capital | | Undistributed Net Investment Income (Loss) | | Accumulated Net Realized Gains (Losses) on Investments | |
| $ | — | | | $ | 11,571 | | | $ | (11,571 | ) | |
For tax purposes, short-term gains are considered ordinary income.
The tax character of distributions paid during the years ended December 31, 2011 and December 31, 2010 was as follows:
| Distributions Paid From: | | | |
| Ordinary Income | | Total | | | |
| 2011 | | 2010 | | 2011 | | 2010 | | | |
| $ | 1,454,260 | | | $ | 2,679,376 | | | $ | 1,454,260 | | | $ | 2,679,376 | | | | |
As of December 31, 2011, 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 | | Other Temporary Differences | | Total | |
| $ | 160,100 | | | $ | (607,664 | ) | | $ | (133,278,006 | ) | | $ | — | | | $ | (133,725,570 | ) | |
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. The Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") became effective for the Fund on January 1, 2011. The Act modernizes several of the federal income and excise tax provisions related to RICs. 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 ("Post-Enactment"). Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character ("Pre-Enactment"). As determined at December 31, 2011, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| Pre-Enactment | | Post-Enactment (No Expiration Date) | |
| Expiring in: | | Long-Term | | Short-Term | |
| 2016 | | 2017 | | | | | |
| $ | 69,691,258 | | | $ | 63,586,748 | | | $ | — | | | $ | — | | |
Post-Enactment capital loss carryforwards must be fully used before Pre-Enactment capital loss carryforwards; therefore, under certain circumstances, Pre-Enactment capital loss carryforwards available as of the report date may expire unused.
16
During the year ended December 31, 2011, the Fund utilized capital loss carryforwards of $295,388.
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 of the investment companies 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.
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, 2012, the impact of this arrangement was a reduction of expenses of $2.
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
17
excess of $2.5 billion. Accordingly, for the six months ended June 30, 2012, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.85% of the Fund's average daily net assets.
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 may be 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, 2015 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, transaction costs and dividend expense on short sales, if any) ("Operating Expenses") which exceed, in the aggregate, 1.50% per annum of the Fund's average daily net assets (the "Expense Limitation"). For the six months ended June 30, 2012, such excess expenses amounted to $99,664. The Fund has agreed to repay Management through December 31, 2018 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 in place at the time the fees and expenses were foregone or reimbursed, 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, 2012, there was no repayment to Management under its contractual expense limitation. At June 30, 2012, contingent liabilities to Management under its contractual expense limitation were as follows:
| Expiring in: | | | |
| 2013 | | 2014 | | 2015 | | Total | |
| $ | 217,800 | | | $ | 330,578 | | | $ | 99,664 | | | $ | 648,042 | | |
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")). NBSH Acquisition, LLC ("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 55% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 45% of such common units. Pursuant to agreements among NBG, NBSH and the LBHI Parties, NBG is entitled to acquire the remaining common units not owned by NBSH through a process that is expected to end in 2017. In April 2012, NBG committed to and began payments for equity purchases from the LBHI parties, which are expected to raise employee ownership to approximately 64% by year end.
18
Note C—Securities Transactions:
During the six months ended June 30, 2012, there were purchase and sale transactions (excluding short-term securities) of $3,460,856 and $4,835,945, respectively.
During the six months ended June 30, 2012, 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, 2012 and for the year ended December 31, 2011 was as follows:
| | | For the Six Months Ended June 30, 2012 | | For the Year Ended December 31, 2011 | |
| Shares Sold | | | 76,358 | | | | 267,940 | | |
| Shares Issued on Reinvestment of Dividends and Distributions | | | — | | | | 164,695 | | |
| Shares Redeemed | | | (255,973 | ) | | | (477,844 | ) | |
| Total | | | (179,615 | ) | | | (45,209 | ) | |
Note E—Line of Credit:
At June 30, 2012, 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 0.10% 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, 2012, 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, 2012. During the six months ended June 30, 2012, the Fund did not utilize these lines of credit.
Note F—Recent Accounting Pronouncement:
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements.
Note G—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. Per share amounts that round to less than $.01 or $(.01) per share are presented as $.00 or $(.00), respectively.
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 8.45 | | | $ | 10.34 | | | $ | 9.51 | | | $ | 7.29 | | | $ | 13.61 | | | $ | 14.29 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .10 | | | | .11 | | | | .13 | | | | .09 | | | | .32 | | | | .13 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .33 | | | | (1.36 | ) | | | 1.90 | | | | 2.43 | | | | (6.64 | ) | | | .30 | | |
| Total From Investment Operations | | | .43 | | | | (1.25 | ) | | | 2.03 | | | | 2.52 | | | | (6.32 | ) | | | .43 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.64 | ) | | | (1.20 | ) | | | (.30 | ) | | | — | | | | (.24 | ) | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (.87 | ) | |
| Total Distributions | | | — | | | | (.64 | ) | | | (1.20 | ) | | | (.30 | ) | | | — | | | | (1.11 | ) | |
Redemption FeesØØ | | | — | | | | .00 | | | | .00 | | | | .00 | | | | .00 | | | | .00 | | |
| Net Asset Value, End of Period | | $ | 8.88 | | | $ | 8.45 | | | $ | 10.34 | | | $ | 9.51 | | | $ | 7.29 | | | $ | 13.61 | | |
Total Return†† | | | 5.09 | %** | | | (12.33 | )% | | | 22.01 | % | | | 34.51 | % | | | (46.44 | )% | | | 3.21 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 19.3 | | | $ | 19.9 | | | $ | 24.8 | | | $ | 330.1 | | | $ | 246.9 | | | $ | 653.7 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 2.49 | %* | | | 2.89 | % | | | 1.65 | % | | | 1.66 | % | | | 1.59 | % | | | 1.53 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.51 | %* | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % | | | 1.53 | % | | | 1.50 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | 2.28 | %* | | | 1.09 | % | | | 1.42 | % | | | 1.13 | % | | | 2.78 | % | | | .85 | % | |
| Portfolio Turnover Rate | | | 17 | %** | | | 45 | % | | | 61 | % | | | 80 | % | | | 149 | % | | | 43 | % | |
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 indicate 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.
# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.
‡ Calculated based on the average number of shares outstanding during each fiscal period.
ØØ Prior to May 1, 2011, redemption fees were charged on the Fund. 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. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, the annualized ratios of net expenses to average daily net assets would have been:
Six Months Ended June 30, | | Year Ended December 31, | |
| 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | 1.51 | % | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % | | | 1.53 | % | | | 1.51 | % | |
* 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
Large Cap Value Portfolio
I Class Shares
Semi-Annual Report
June 30, 2012
B0737 08/12
Large Cap Value Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Large Cap Value Portfolio (formerly Neuberger Berman AMT Partners Portfolio) Class I generated a 4.90% total return for the six months ended June 30, 2012, underperforming its benchmarks, the Russell 1000® Value Index and the S&P 500 Index, which returned 8.68% and 9.49%, respectively, for the period.
Looking back to the start of the year, the equity markets appeared to be retracing its moves from the first half of 2011 when stocks rose on optimism about the U.S. economy and corporate earnings but then began to fall as conditions in Europe deteriorated. Similarly, thus far in 2012, the market started off strong on positive economic statistics, a strong earnings season as well as other factors, such as the release of the Federal Reserve "stress test" results. However, as we entered the second half of the reporting period, equities quickly faltered as the U.S. economy seemed to be losing its positive momentum and the economic issues in Europe returned to the forefront. Key indicators such as U.S. employment and regional manufacturing showed signs of weakening, and economic data out of Europe signaled an imminent recession for some European countries. Moreover, the threat of a Greek debt default and a departure from the euro currency became a real possibility once again, while Spanish bond yields surged as the country's sovereign debt crisis deepened. Back in the U.S., earnings season was once again full of upside surprises but expectations were generally lowered for the rest of 2012 in light of global macro uncertainty. Domestic stocks fell precipitously during the second quarter yet remained in positive territory for the semi-annual period, with more recent strength coming from defensive sectors as investors shifted their exposure towards lower-risk prospects.
Though the U.S. market as a whole displayed resilience over the past six months, sector favoritism shifted as investor optimism waxed and waned. During the first few months of the year, confidence grew and cyclical areas of the market did well, making the Consumer Discretionary and Financials sectors among the top three performance leaders for the semi-annual period. The risk-off trade in the latter few months of the period made the more defensive Telecommunication Services sector the strongest performing segment for the period. The change in sentiment also gave a boost to Utilities and Consumer Staples, but these areas still trailed the Russell 1000 Value Index as a whole. The worst performing segment of the market was Energy, which was the only sector to post a negative overall return for the last six months due mainly to falling oil prices.
For the Large Cap Value Portfolio, performance in absolute terms was driven largely by positive returns in the Financials sector, while Consumer Discretionary and Telecommunication Services provided secondary contributions. Performance relative to the Russell 1000 Value Index benefited from a slightly heavier allocation to Financials as well as superior stock returns versus the Index. An underweight allocation (on average) to Utilities, one of the softer areas of the market over the period, also helped relative results. Within Financials, our superior performance was mainly attributable to Commercial Banks, where we were overweighted in several strong names including Wells Fargo, which rose over 20% during the period. Wells Fargo and its peers outperformed the market as a whole due mostly to gains garnered in the first half of the period when the improving economic environment as well as the release of the Federal Reserve "stress test" results boosted sentiment toward the industry. The banks in general also rose on greater confidence that the industry could potentially withstand, or even benefit from, a deteriorating financial system in Europe. Although these stocks retreated a bit over the following months as the credit situation in Europe deteriorated, we continue to see value among our holdings and anticipate they should do well over the long term driven by strength in their core businesses as well as their ability to gain market share as capacity from abroad exits the industry. With regard to Utilities, although the relative benefit to the Portfolio stemmed mainly from an underweight allocation, one of our holdings in this area, Sempra Energy, an electric and gas holding company, contributed significantly to performance during the period. Sempra Energy rose substantially as management stepped up efforts to publicize the company's potential to export liquid natural gas (LNG) and form a master limited partnership to finance the endeavor. The strategy could be a significant source of long term growth for Sempra, and investors gained confidence during the period that the company is headed down this path.
The greatest drag on both absolute and relative Portfolio performance stemmed from the Energy and Information Technology sectors, both of which produced negative returns for the period. General weakness within Energy was due in
1
part to our oil-levered Exploration and Production ("E&P") names, which fell in response to declining oil prices. One such holding was Anadarko Petroleum, an oil and gas E&P stock that posted a double-digit decline and was the greatest detractor from absolute and relative performance within that group. The price of oil dropped in the second half of the period as many feared that the economic slowdown in Europe and signs of softening in the U.S. could lead to a fall-off in energy demand. In addition, tensions with Iran abated somewhat, which removed an element of price support for the commodity. Though oil prices may remain volatile as the economic and geopolitical situations unfold, we believe that, should economies recover and emerging markets expand, the supply-demand picture for oil will tighten and prices will rise over the long term. Within Information Technology, our hardware and Internet-related names were the main drawbacks, with Hewlett-Packard producing the biggest loss among our sector holdings. While Hewlett-Packard was weak for the period as a whole, we initiated a position in the stock at an even less favorable price point, which exacerbated its decline in the Portfolio. However, we believe the stock is attractively valued based on its core assets and, although its business is challenged, we believe this is adequately reflected in the stock price and see a potential upside materializing as the turnaround story progresses.
As we look ahead, we believe that macro factors at home and abroad will continue to play a large role in stock market movement. While our domestic economy had been holding up rather well despite the debacle in Europe, more recent data has shown that a recovery in the U.S. may be farther off than we thought. Still, the recent decline in energy prices may provide some relief to consumers, and the Federal Reserve's determination to maintain accommodative financial conditions could keep the economy afloat for a time. Furthermore, equity multiples on the whole are attractive in our opinion, particularly among the more economically sensitive areas of the market that have taken a hit over the last few months. Within these segments we are seeing a great deal of value among stocks that have solid core businesses and catalysts that we believe can sustain them through this difficult period. By investing in these companies, we believe we have created a Portfolio that has the potential to produce favorable risk-adjusted returns throughout this economic cycle, and as always we continue to monitor the correlation between holdings in order to maintain a positive risk-reward balance.
Sincerely,
ELI M. SALZMANN
PORTFOLIO MANAGER
Information about the principal risks of investing in the Portfolio is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Portfolio are subject to change.
2
Large Cap Value Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 7.5 | % | |
| Consumer Staples | | | 5.1 | | |
| Energy | | | 12.9 | | |
| Financials | | | 30.5 | | |
| Health Care | | | 12.9 | | |
| Industrials | | | 11.3 | | |
| Information Technology | | | 6.1 | | |
| Materials | | | 5.8 | | |
| Telecommunication Services | | | 2.3 | | |
| Utilities | | | 3.3 | | |
| Short-Term Investments | | | 2.3 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 6/30/2012 | |
| | | Date | | 6/30/2012 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund1 | |
Large Cap Value Portfolio | | | 03/22/1994 | | | | 4.90 | % | | | –10.58 | % | | | –4.30 | % | | | 4.58 | % | | | 7.10 | % | |
Russell 1000® Value Index2 | | | | | | | 8.68 | % | | | 3.01 | % | | | –2.19 | % | | | 5.28 | % | | | 8.44 | % | |
S&P 500 Index2 | | | | | | | 9.49 | % | | | 5.45 | % | | | 0.22 | % | | | 5.33 | % | | | 8.04 | % | |
The performance data quoted represent past performance and do not indicate future results. 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.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares. The results do 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.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2011 was 1.13% for Class I shares (before expense reimbursements and/or fee waivers, if any).
3
Endnotes
1 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.
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, expenses or tax consequences of investing in the individual securities that they track, and that individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions. The Portfolio may invest in securities not included in a described index and/or may not invest in all securities included in a described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not Management'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, Management 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) the investments for one or more other registered funds that have names, investment objectives, and investment styles similar to those of the Portfolio. You should be aware that the Portfolio is likely to differ from the other mutual fund(s) 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 fund(s).
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 name in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2012 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses (Unaudited)
As a Fund shareholder, you incur two types of costs: (1) transaction costs such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and compare these costs with the ongoing costs of investing in other mutual funds.
This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2012 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 and 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 6/30/12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST LARGE CAP VALUE PORTFOLIO
| Actual | | Beginning Account Value 1/1/12 | | Ending Account Value 6/30/12 | | Expenses Paid During the Period* 1/1/12 – 6/30/12 | |
| Class I | | $ | 1,000.00 | | | $ | 1,049.00 | | | $ | 5.76 | | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,019.24 | | | $ | 5.67 | | |
* Expenses are equal to the annualized expense ratio of 1.13%, multiplied by the average account value over the period, multiplied by 182/366 (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 366.
5
Schedule of Investments Large Cap Value Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (97.5%) | | | |
| Aerospace & Defense (0.5%) | | | |
| | 3,783 | | | Boeing Co. | | $ | 281,077 | | |
| Air Freight & Logistics (2.3%) | | | |
| | 5,849 | | | FedEx Corp. | | | 535,827 | | |
| | 11,041 | | | United Parcel Service, Inc. Class B | | | 869,589 | | |
| | | | 1,405,416 | | |
| Airlines (1.0%) | | | |
| | 67,355 | | | Southwest Airlines Co. | | | 621,013 | | |
| Automobiles (0.9%) | | | |
| | 60,741 | | | Ford Motor Co. | | | 582,506 | | |
| Beverages (1.5%) | | | |
| | 7,231 | | | Dr. Pepper Snapple Group, Inc. | | | 316,356 | | |
| | 8,925 | | | PepsiCo, Inc. | | | 630,641 | | |
| | | | 946,997 | | |
| Biotechnology (1.2%) | | | |
| | 10,201 | | | Amgen, Inc. | | | 745,081 | | |
| Capital Markets (5.6%) | | | |
| | 29,267 | | | Bank of New York Mellon Corp. | | | 642,411 | | |
| | 19,487 | | | Charles Schwab Corp. | | | 251,967 | | |
| | 18,835 | | | Goldman Sachs Group, Inc. | | | 1,805,523 | | |
| | 14,032 | | | Invesco Ltd. | | | 317,123 | | |
| | 10,383 | | | State Street Corp. | | | 463,497 | | |
| | | | 3,480,521 | | |
| Chemicals (2.6%) | | | |
| | 17,692 | | | LyondellBasell Industries NV Class A | | | 712,457 | | |
| | 11,117 | | | Monsanto Co. | | | 920,265 | | |
| | | | 1,632,722 | | |
| Commercial Banks (7.6%) | | | |
| | 8,381 | | | PNC Financial Services Group, Inc. | | | 512,163 | | |
| | 99,425 | | | Regions Financial Corp. | | | 671,119 | | |
| | 27,192 | | | U.S. Bancorp | | | 874,495 | | |
| | 69,972 | | | Wells Fargo & Co. | | | 2,339,863 | | |
| | 19,248 | | | Zions Bancorporation | | | 373,796 | | |
| | | | 4,771,436 | | |
| Communications Equipment (1.4%) | | | |
| | 50,784 | | | Cisco Systems, Inc. | | | 871,961 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Computers & Peripherals (1.6%) | | | |
| | 35,670 | | | Hewlett-Packard Co. | | $ | 717,324 | | |
| | 8,481 | | | SanDisk Corp. | | | 309,387 | * | |
| | | | 1,026,711 | | |
| Consumer Finance (0.3%) | | | |
| | 4,861 | | | Discover Financial Services | | | 168,093 | | |
| Diversified Financial Services (10.2%) | | | |
| | 96,891 | | | Bank of America Corp. | | | 792,568 | | |
| | 70,459 | | | Citigroup, Inc. | | | 1,931,281 | | |
| | 3,081 | | | CME Group, Inc. | | | 826,047 | | |
| | 64,475 | | | J.P. Morgan Chase & Co. | | | 2,303,692 | | |
| | 14,720 | | | Moody's Corp. | | | 538,016 | | |
| | | | 6,391,604 | | |
Diversified Telecommunication Services (2.0%) | | | |
| | 35,418 | | | AT&T, Inc. | | | 1,263,006 | | |
| Electric Utilities (1.8%) | | | |
| | 21,878 | | | Exelon Corp. | | | 823,050 | | |
| | 6,435 | | | FirstEnergy Corp. | | | 316,538 | | |
| | | | 1,139,588 | | |
| Energy Equipment & Services (2.3%) | | | |
| | 7,253 | | | Diamond Offshore Drilling, Inc. | | | 428,870 | | |
| | 15,285 | | | Schlumberger Ltd. | | | 992,149 | | |
| | | | 1,421,019 | | |
| Food & Staples Retailing (1.1%) | | | |
| | 30,436 | | | Kroger Co. | | | 705,811 | | |
| Food Products (0.5%) | | | |
| | 10,984 | | | Archer-Daniels-Midland Co. | | | 324,248 | | |
| Health Care Equipment & Supplies (2.4%) | | | |
| | 160,777 | | | Boston Scientific Corp. | | | 911,606 | * | |
| | 8,897 | | | Zimmer Holdings, Inc. | | | 572,611 | | |
| | | | 1,484,217 | | |
| Health Care Providers & Services (2.1%) | | | |
| | 17,860 | | | Aetna, Inc. | | | 692,432 | | |
| | 3,697 | | | Cardinal Health, Inc. | | | 155,274 | | |
| | 15,199 | | | Coventry Health Care, Inc. | | | 483,177 | | |
| | | | 1,330,883 | | |
| Hotels, Restaurants & Leisure (1.7%) | | | |
| | 30,705 | | | Carnival Corp. | | | 1,052,260 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| Household Durables (0.4%) | | | |
| | 14,451 | | | D.R. Horton, Inc. | | $ | 265,609 | | |
| Household Products (2.0%) | | | |
| | 5,765 | | | Colgate-Palmolive Co. | | | 600,137 | | |
| | 10,133 | | | Procter & Gamble Co. | | | 620,646 | | |
| | | | 1,220,783 | | |
| Industrial Conglomerates (3.1%) | | | |
| | 3,592 | | | Danaher Corp. | | | 187,071 | | |
| | 84,683 | | | General Electric Co. | | | 1,764,794 | | |
| | | | 1,951,865 | | |
| Insurance (6.7%) | | | |
| | 7,218 | | | AFLAC, Inc. | | | 307,415 | | |
| | 48,564 | | | American International Group, Inc. | | | 1,558,419 | * | |
| | 9,571 | | | Berkshire Hathaway, Inc. Class B | | | 797,551 | * | |
| | 17,657 | | | Lincoln National Corp. | | | 386,158 | | |
| | 5,135 | | | MetLife, Inc. | | | 158,415 | | |
| | 9,910 | | | Reinsurance Group of America, Inc. | | | 527,311 | | |
| | 6,750 | | | Travelers Cos., Inc. | | | 430,920 | | |
| | | | 4,166,189 | | |
| Machinery (3.8%) | | | |
| | 6,740 | | | Caterpillar, Inc. | | | 572,293 | | |
| | 5,846 | | | Cummins, Inc. | | | 566,536 | | |
| | 7,559 | | | Dover Corp. | | | 405,238 | | |
| | 14,056 | | | Joy Global, Inc. | | | 797,397 | | |
| | | | 2,341,464 | | |
| Media (2.4%) | | | |
| | 23,021 | | | Comcast Corp. Class A | | | 735,981 | | |
| | 13,743 | | | News Corp. Class B | | | 309,492 | | |
| | 9,601 | | | Walt Disney Co. | | | 465,649 | | |
| | | | 1,511,122 | | |
| Metals & Mining (3.3%) | | | |
| | 7,342 | | | Agnico-Eagle Mines Ltd. | | | 297,058 | | |
| | 5,951 | | | BHP Billiton Ltd. ADR | | | 388,600 | | |
| | 11,002 | | | Freeport-McMoRan Copper & Gold, Inc. | | | 374,838 | | |
| | 21,235 | | | Newmont Mining Corp. | | | 1,030,110 | | |
| | | | 2,090,606 | | |
| Multi-Utilities (1.5%) | | | |
| | 22,388 | | | CenterPoint Energy, Inc. | | | 462,760 | | |
| | 6,706 | | | Sempra Energy | | | 461,909 | | |
| | | | 924,669 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Multiline Retail (2.0%) | | | |
| | 16,397 | | | J.C. Penney Co., Inc. | | $ | 382,214 | | |
| | 14,885 | | | Target Corp. | | | 866,158 | | |
| | | | 1,248,372 | | |
| Oil, Gas & Consumable Fuels (10.6%) | | | |
| | 9,628 | | | Anadarko Petroleum Corp. | | | 637,374 | | |
| | 9,306 | | | Chevron Corp. | | | 981,783 | | |
| | 10,672 | | | Devon Energy Corp. | | | 618,869 | | |
| | 2,845 | | | EOG Resources, Inc. | | | 256,363 | | |
| | 23,650 | | | Exxon Mobil Corp. | | | 2,023,731 | | |
| | 7,092 | | | Hess Corp. | | | 308,147 | | |
| | 28,471 | | | Range Resources Corp. | | | 1,761,501 | | |
| | | | 6,587,768 | | |
| Pharmaceuticals (7.1%) | | | |
| | 28,327 | | | Johnson & Johnson | | | 1,913,772 | | |
| | 11,309 | | | Merck & Co., Inc. | | | 472,151 | | |
| | 89,898 | | | Pfizer, Inc. | | | 2,067,654 | | |
| | | | 4,453,577 | | |
| Road & Rail (0.7%) | | | |
| | 11,097 | | | CSX Corp. | | | 248,129 | | |
| | 12,872 | | | Heartland Express, Inc. | | | 184,198 | | |
| | | | 432,327 | | |
Semiconductors & Semiconductor Equipment (1.4%) | | | |
| | 32,541 | | | Intel Corp. | | | 867,218 | | |
| Software (1.7%) | | | |
| | 34,467 | | | Microsoft Corp. | | | 1,054,346 | | |
Wireless Telecommunication Services (0.2%) | | | |
| | 44,532 | | | Sprint Nextel Corp. | | | 145,174 | * | |
| | | | | Total Common Stocks (Cost $57,001,620) | | | 60,907,259 | | |
| Short-Term Investments (2.3%) | | | |
| | 1,420,960 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $1,420,960) | | | 1,420,960 | | |
| | | | | Total Investments (99.8%) (Cost $58,422,580) | | | 62,328,219 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (0.2%) | | | 127,138 | | |
| | | | | Total Net Assets (100.0%) | | $ | 62,455,357 | | |
See Notes to Schedule of Investments
7
Notes to Schedule of Investments Large Cap Value 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 Large Cap Value Portfolio (formerly, 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 and exchange traded funds, 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 on a principal exchange or market for that security (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 (Level 2 inputs).
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
See Notes to Financial Statements
8
Notes to Schedule of Investments Large Cap Value Portfolio (Unaudited) (cont'd)
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 or on days when foreign markets are closed and U.S. markets are open. In each of these events, 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, 2012:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 60,907,259 | | | $ | — | | | $ | — | | | $ | 60,907,259 | | |
| Short-Term Investments | | | — | | | | 1,420,960 | | | | — | | | | 1,420,960 | | |
| Total Investments | | $ | 60,907,259 | | | $ | 1,420,960 | | | $ | — | | | $ | 62,328,219 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no transfers between Levels 1 and 2 during the six months ended June 30, 2012.
## At June 30, 2012, the cost of investments for U.S. federal income tax purposes was $58,975,888. Gross unrealized appreciation of investments was $5,199,227 and gross unrealized depreciation of investments was $1,846,896, resulting in net unrealized appreciation of $3,352,331, 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
| | | LARGE CAP VALUE PORTFOLIO | |
| | | June 30, 2012 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 62,328,219 | | |
| Foreign currency | | | 35,347 | | |
| Dividends and interest receivable | | | 54,824 | | |
| Receivable for securities sold | | | 2,694,518 | | |
| Receivable for Fund shares sold | | | 100,311 | | |
| Prepaid expenses and other assets | | | 16,423 | | |
| Total Assets | | | 65,229,642 | | |
| Liabilities | |
| Payable for securities purchased | | | 2,596,249 | | |
| Payable for Fund shares redeemed | | | 85,975 | | |
| Payable to investment manager (Note B) | | | 27,550 | | |
| Payable to administrator (Note B) | | | 15,027 | | |
| Accrued expenses and other payables | | | 49,484 | | |
| Total Liabilities | | | 2,774,285 | | |
| Net Assets at value | | $ | 62,455,357 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 77,406,120 | | |
| Undistributed net investment income (loss) | | | 641,216 | | |
| Accumulated net realized gains (losses) on investments | | | (19,502,864 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 3,910,885 | | |
| Net Assets at value | | $ | 62,455,357 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 5,958,155 | | |
| Net Asset Value, offering and redemption price per share | | $ | 10.48 | | |
| *Cost of Investments | | $ | 58,422,580 | | |
| Total cost of foreign currency | | $ | 30,101 | | |
See Notes to Financial Statements
10
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | LARGE CAP VALUE PORTFOLIO | |
| | | For the Six Months Ended June 30, 2012 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 785,061 | | |
| Interest income—unaffiliated issuers | | | 3,301 | | |
| Foreign taxes withheld | | | (1,199 | ) | |
| Total income | | $ | 787,163 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 195,070 | | |
| Administration fees (Note B) | | | 106,402 | | |
| Audit fees | | | 20,854 | | |
| Custodian fees (Note A) | | | 17,067 | | |
| Insurance expense | | | 2,581 | | |
| Legal fees | | | 18,357 | | |
| Shareholder reports | | | 10,763 | | |
| Trustees' fees and expenses | | | 26,566 | | |
| Miscellaneous | | | 2,975 | | |
| Total expenses | | | 400,635 | | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (6 | ) | |
| Total net expenses | | | 400,629 | | |
| Net investment income (loss) | | $ | 386,534 | | |
| Realized and Unrealized Gain (Loss) on Investments (Note A): | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 3,962,477 | | |
| Foreign currency | | | 101 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | (105,134 | ) | |
| Foreign currency | | | (424 | ) | |
| Net gain (loss) on investments | | | 3,857,020 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 4,243,554 | | |
See Notes to Financial Statements
11
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | LARGE CAP VALUE PORTFOLIO | |
| | | Six Months Ended June 30, 2012 (Unaudited) | | Year Ended December 31, 2011 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | 386,534 | | | $ | 262,123 | | |
| Net realized gain (loss) on investments | | | 3,962,578 | | | | 16,246,799 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | (105,558 | ) | | | (26,555,817 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | 4,243,554 | | | | (10,046,895 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold | | | 2,552,220 | | | | 14,160,515 | | |
| Payments for shares redeemed | | | (19,624,574 | ) | | | (25,985,207 | ) | |
| Net increase (decrease) from Fund share transactions | | | (17,072,354 | ) | | | (11,824,692 | ) | |
| Net Increase (Decrease) in Net Assets | | | (12,828,800 | ) | | | (21,871,587 | ) | |
| Net Assets: | |
| Beginning of period | | | 75,284,157 | | | | 97,155,744 | | |
| End of period | | $ | 62,455,357 | | | $ | 75,284,157 | | |
| Undistributed net investment income (loss) at end of period | | $ | 641,216 | | | $ | 254,682 | | |
See Notes to Financial Statements
12
Notes to Financial Statements Large Cap Value Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: Neuberger Berman Advisers Management Trust (the "Trust") is 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 ("GAAP") 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 rate 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, 2012 was $2,263.
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 2008—2010. As of June 30, 2012, 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 GAAP. 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, 2011, permanent differences resulting primarily from different book and tax accounting for foreign currency gains and losses and non-taxable dividend adjustments to income 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. For the year ended December 31, 2011, the Fund recorded the following permanent reclassifications:
Paid-in Capital | | Undistributed Net Investment Income (Loss) | | Accumulated Net Realized Gains (Losses) on Investments | |
| $ | — | | | $ | (6,851 | ) | | $ | 6,851 | | |
For tax purposes, short-term gains are considered ordinary income.
The tax character of distributions paid during the years ended December 31, 2011 and December 31, 2010 was as follows:
| | | Distributions Paid From: | | | |
| Ordinary Income | | Long- Term Capital Gain | | Total | |
| 2011 | | 2010 | | 2011 | | 2010 | | 2011 | | 2010 | |
| $ | — | | | $ | 618,077 | | | $ | — | | | $ | — | | | $ | — | | | $ | 618,077 | | |
As of December 31, 2011, 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 | | Other Temporary Differences | | Total | |
| $ | 254,682 | | | $ | — | | | $ | 3,490,824 | | | $ | (22,939,823 | ) | | $ | — | | | $ | (19,194,317 | ) | |
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. The Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") became effective for the Fund on January 1, 2011. The Act modernizes several of the federal income and excise tax provisions related to RICs. 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 ("Post-Enactment"). Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character ("Pre-Enactment"). As determined at December 31, 2011, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| Pre-Enactment | | Post-Enactment (No Expiration Date) | |
Expiring in: 2017 | | Long-Term | | Short-Term | |
| $ | 22,939,823 | | | $ | — | | | $ | — | | |
14
Post-Enactment capital loss carryforwards must be fully used before Pre-Enactment capital loss carryforwards; therefore, under certain circumstances, Pre-Enactment capital loss carryforwards available as of the report date may expire unused.
During the year ended December 31, 2011, the Fund utilized capital loss carryforwards of $16,035,732.
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 of the investment companies 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, 2012, the impact of this arrangement was a reduction of expenses of $6.
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
15
in excess of $4 billion. Accordingly, for the six months ended June 30, 2012, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.55% of the Fund's average daily net assets.
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, 2015 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, transaction costs and dividend expense on short sales, if any) ("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, 2012, no reimbursement to the Fund was required. The Fund has agreed to repay Management through December 31, 2018 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 in place at the time the fees and expenses were foregone or reimbursed, 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, 2012, there was no repayment to Management under its contractual expense limitation. At June 30, 2012, 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")). NBSH Acquisition, LLC ("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 55% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 45% of such common units. Pursuant to agreements among NBG, NBSH and the LBHI Parties, NBG is entitled to acquire the remaining common units not owned by NBSH through a process that is expected to end in 2017. In April 2012, NBG committed to and began payments for equity purchases from the LBHI parties, which are expected to raise employee ownership to approximately 64% by year end.
Note C—Securities Transactions:
During the six months ended June 30, 2012, there were purchase and sale transactions (excluding short-term securities) of $42,792,031 and $57,373,201, respectively.
During the six months ended June 30, 2012, 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, 2012 and for the year ended December 31, 2011 was as follows:
| | | For the Six Months Ended June 30, 2012 | | For the Year Ended December 31, 2011 | |
| Shares Sold | | | 241,780 | | | | 1,276,805 | | |
| Shares Redeemed | | | (1,821,216 | ) | | | (2,359,718 | ) | |
| Total | | | (1,579,436 | ) | | | (1,082,913 | ) | |
Note E—Line of Credit:
At June 30, 2012, 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 0.10% 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, 2012. During the six months ended June 30, 2012, the Fund did not utilize this line of credit.
Note F—Recent Accounting Pronouncement:
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements.
Note G—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
Large Cap Value Portfolio
The following table includes selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. Per share amounts that round to less than $.01 or $(.01) per share are presented as $.00 or $(.00), respectively.
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 9.99 | | | $ | 11.27 | | | $ | 9.82 | | | $ | 7.11 | | | $ | 20.76 | | | $ | 21.16 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .06 | | | | .03 | | | | (.00 | ) | | | .03 | | | | .08 | | | | .07 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .43 | | | | (1.31 | ) | | | 1.52 | | | | 3.98 | | | | (10.78 | ) | | | 1.95 | | |
| Total From Investment Operations | | | .49 | | | | (1.28 | ) | | | 1.52 | | | | 4.01 | | | | (10.70 | ) | | | 2.02 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | — | | | | (.07 | ) | | | (.24 | ) | | | (.09 | ) | | | (.15 | ) | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | (1.06 | ) | | | (2.86 | ) | | | (2.27 | ) | |
| Total Distributions | | | — | | | | — | | | | (.07 | ) | | | (1.30 | ) | | | (2.95 | ) | | | (2.42 | ) | |
| Net Asset Value, End of Period | | $ | 10.48 | | | $ | 9.99 | | | $ | 11.27 | | | $ | 9.82 | | | $ | 7.11 | | | $ | 20.76 | | |
Total Return†† | | | 4.90 | %** | | | (11.36 | )% | | | 15.55 | % | | | 56.23 | % | | | (52.37 | )% | | | 9.28 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 62.5 | | | $ | 75.3 | | | $ | 97.2 | | | $ | 96.7 | | | $ | 217.9 | | | $ | 526.7 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.13 | %* | | | 1.13 | % | | | 1.11 | % | | | 1.06 | % | | | .94 | % | | | .90 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.13 | %* | | | 1.13 | % | | | 1.11 | % | | | 1.05 | % | | | .94 | % | | | .90 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | 1.09 | %* | | | .29 | % | | | (.02 | )% | | | .34 | % | | | .53 | % | | | .33 | % | |
| Portfolio Turnover Rate | | | 64 | %** | | | 102 | % | | | 43 | % | | | 41 | % | | | 38 | % | | | 43 | % | |
See Notes to Financial Highlights
18
Notes to Financial Highlights Large Cap Value 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 indicate 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 class actions proceeds listed in Note A-4 had no impact on total return.
# Represents the annualized ratios of net expenses to average daily net assets if the Fund had not utilized the Line of Credit (2007) and if Management had not waived a portion of the investment management fee.
‡ 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. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, and the Fund had not utilized the Line of Credit the annualized ratios of net expenses to average daily net assets would have been:
Six Months Ended June 30, | | Year Ended December 31, | |
| 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | 1.13 | % | | | 1.13 | % | | | 1.11 | % | | | 1.05 | % | | | .95 | % | | | .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
Mid Cap Growth Portfolio
I Class Shares
S Class Shares
Semi-Annual Report
June 30, 2012
B0736 08/12
Mid Cap Growth Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Mid Cap Growth Portfolio Class I generated a 9.00% total return for the six months ended June 30, 2012 and outperformed its benchmark, the Russell Midcap® Growth Index, which returned 8.10% for the period. Returns for the Portfolio's Class I and Class S shares are provided on page 3.
Fueled by macro and political headlines, the first six months of 2012 continued to be a roller-coaster ride of risk-on/risk-off investor sentiment. Our domestic "wall of worry" has been less onerous than the challenges facing other markets due to a U.S. economy that maintained its moderately paced growth and potential signs of stability in the housing market. However, politically driven economic uncertainty continued to mute corporate confidence and, as a result, the appetite for hiring, capital expenditures and M&A activity remained subdued. Despite the U.S. economy's relative stability, the markets have not been immune to the issues beyond our borders, such as the ongoing European debt saga and questions around China's growth engine, which have continued to create headline volatility and weigh on U.S. companies with meaningful foreign exposure. Despite the aforementioned headwinds and challenges, corporate earnings continued to be strong, margins were solid and guidance realistic, with a cautious tone reflecting a challenging environment.
The Supreme Court decision on the Affordable Care Act was a surprise, but we anticipate it will be mostly a non-event for our holdings. With our theme of companies that save the health care system money and focus on superior medicine and technology, we've had a fairly politically agnostic approach to health care. The market craves clarity so, from an investment standpoint, reaching an outcome on the health care spending mandate was in itself a positive as the market can now move forward and on to the next pressing issues, such as a contentious U.S. presidential election in November and the looming tax cuts/fiscal cliff negotiations and deadlines.
During the reporting period, every sector represented in our Portfolio, with the exception of Energy, posted positive returns. Broadly looking at sector positioning, our overweight allocations relative to the benchmark in Health Care and Telecommunication Services and underweight to Consumer Discretionary proved additive and offset the negative impact of our underweight to Consumer Staples. For the period, the Portfolio delivered strong stock selection, led by our Health Care names. Catalyst Health Solutions and SXC Health Solutions, both pharmacy benefit management companies, agreed to merge in a positively received deal. Alexion Pharmaceuticals, with therapeutic products aimed at rare, life-threatening diseases, continued to successfully execute their international rollout and Cerner Corp., a health care information technology company, benefited from health care organizations striving to bring efficiency to their systems and processes.
Another top contributor was SBA Communications, an operator of wireless communication towers. SBA benefited from strong execution and positive reaction to several recent acquisitions.
The Portfolio also had strong contributions from Consumer-related names such as Dollar Tree, an operator of discount variety stores, Ross Stores, an operator of off-price retail apparel and home fashion stores, and Whole Foods Market, a chain of natural and organic foods supermarkets. Dollar Tree and Ross Stores both continued to benefit from budget-conscience consumers trading down from more expensive retail options, while Whole Foods delivered strong sales and customer metrics. These positive contributions offset underperformance from Vera Bradley, a designer of handbags and accessories for women, which suffered channel and inventory issues, and Warnaco Group, a designer of various brand-name apparel products, with international sales pressured by the ongoing European debt crisis.
Leading detractors also included SM Energy, a company engaged in the exploration and production of oil and natural gas, and Carbo Ceramics, a manufacturer of proppants used in extracting oil and gas from shale. Both were pressured by declining energy prices and demand and we sold Carbo Ceramics. Other leading detractors included Gentex, a supplier of advanced mirror systems for automobiles, which was negatively impacted by government delays in implementing a mandate requiring back-up assist cameras, and HEICO, a manufacturer of aircraft replacement parts, pulled back over uncertainty regarding its acquisition strategy and airline industry consolidation fears.
Based on our expectations for the balance of 2012, at present we anticipate remaining overweighted in Industrials, Information Technology, Health Care and Telecommunication Services and underweighted in Materials, Financials and Consumer Staples and Consumer Discretionary. Our overweight positions reflect our belief that innovative and unique
1
products and services can be catalysts for outperformance in a tough environment. High cyclicality and inconsistent earnings lead us to be underweighted in Materials and concerns over the fragile state of the consumer has us underweight in both Consumer Discretionary and Consumer Staples. While we value companies with effective global footprints, given the continued uncertainty around Europe and China, our current view is that we are likely to remain tilted in favor of names that are predominantly domestically focused.
We continue to find attractive investment opportunities and remain cautiously optimistic that the U.S.'s measured and consistent economic recovery can continue with the potential for a positive finish for equities in 2012.
Sincerely,
KENNETH J. TUREK
PORTFOLIO MANAGER
Information about the principal risks of investing in the Portfolio is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Portfolio are subject to change.
2
Mid Cap Growth Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 16.9 | % | |
| Consumer Staples | | | 4.5 | | |
| Energy | | | 6.5 | | |
| Financials | | | 4.2 | | |
| Health Care | | | 17.0 | | |
| Industrials | | | 19.9 | | |
| Information Technology | | | 21.0 | | |
| Materials | | | 3.7 | | |
| Telecommunication Services | | | 3.6 | | |
| Short-Term Investments | | | 2.7 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2012 | |
| | | Date | | 06/30/2012 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund1 | |
Mid Cap Growth Portfolio Class I | | | 11/03/1997 | | | | 9.00 | % | | | –0.13 | % | | | 2.09 | % | | | 7.91 | % | | | 8.03 | % | |
Mid Cap Growth Portfolio Class S2 | | | 02/18/2003 | | | | 8.87 | % | | | –0.37 | % | | | 1.84 | % | | | 7.65 | % | | | 7.86 | % | |
Russell Midcap® Growth Index3 | | | | | | | 8.10 | % | | | –2.99 | % | | | 1.90 | % | | | 8.47 | % | | | 5.93 | % | |
Russell Midcap® Index3 | | | | | | | 7.97 | % | | | –1.65 | % | | | 1.06 | % | | | 8.45 | % | | | 7.70 | % | |
The performance data quoted represent past performance and do not indicate future results. 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.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares. The results do 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.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class' returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.01% and 1.26% for Class I and Class S shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratio was 1.25% for Class S after expense reimbursements and/or fee waivers.
3
Endnotes
1 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.
2 Performance shown prior to February 18, 2003 for Class S shares is that of Class I shares, which have 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, expenses or tax consequences of investing in the individual securities that they track, and that individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions. The Portfolio may invest in securities not included in a described index and/or may not invest in all securities included in a described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not Management'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, Management 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) the investments for one or more other registered funds that have names, investment objectives, and investment styles similar to those of the Portfolio. You should be aware that the Portfolio is likely to differ from the other mutual fund(s) 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 fund(s).
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 name in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2012 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses (Unaudited)
As a Fund shareholder, you incur two types of costs: (1) transaction costs such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and compare these costs with the ongoing costs of investing in other mutual funds.
This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2012 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 and 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 6/30/12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST MID CAP GROWTH PORTFOLIO
| Actual | | Beginning Account Value 1/1/12 | | Ending Account Value 6/30/12 | | Expenses Paid During the Period* 1/1/12 – 6/30/12 | | Expense Ratio | |
| Class I | | $ | 1,000.00 | | | $ | 1,090.00 | | | $ | 5.09 | | | | .98 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,088.70 | | | $ | 6.49 | | | | 1.25 | % | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,019.99 | | | $ | 4.92 | | | | .98 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,018.65 | | | $ | 6.27 | | | | 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 182/366 (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 366.
5
Schedule of Investments Mid Cap Growth Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (97.2%) | | | |
| Aerospace & Defense (3.0%) | | | |
| | 75,000 | | | BE Aerospace, Inc. | | $ | 3,274,500 | * | |
| | 81,250 | | | HEICO Corp. | | | 3,211,000 | | |
| | 20,000 | | | Precision Castparts Corp. | | | 3,289,800 | | |
| | | | 9,775,300 | | |
| Auto Components (1.0%) | | | |
| | 21,500 | | | BorgWarner, Inc. | | | 1,410,185 | * | |
| | 80,000 | | | Gentex Corp. | | | 1,669,600 | | |
| | | | 3,079,785 | | |
| Beverages (0.5%) | | | |
| | 26,500 | | | Beam, Inc. | | | 1,655,985 | | |
| Biotechnology (3.6%) | | | |
| | 72,500 | | | Alexion Pharmaceuticals, Inc. | | | 7,199,250 | * | |
| | 60,000 | | | Cepheid, Inc. | | | 2,685,000 | * | |
| | 42,500 | | | Cubist Pharmaceuticals, Inc. | | | 1,611,175 | * | |
| | | | 11,495,425 | | |
| Building Products (0.6%) | | | |
| | 90,000 | | | Fortune Brands Home & Security, Inc. | | | 2,004,300 | * | |
| Capital Markets (1.9%) | | | |
| | 37,900 | | | Affiliated Managers Group, Inc. | | | 4,148,155 | * | |
| | 60,000 | | | Raymond James Financial, Inc. | | | 2,054,400 | | |
| | | | 6,202,555 | | |
| Chemicals (3.2%) | | | |
| | 60,000 | | | Airgas, Inc. | | | 5,040,600 | | |
| | 47,500 | | | Ashland, Inc. | | | 3,292,225 | | |
| | 27,300 | | | Sigma-Aldrich Corp. | | | 2,018,289 | | |
| | | | 10,351,114 | | |
| Commercial Services & Supplies (2.0%) | | | |
| | 70,000 | | | Stericycle, Inc. | | | 6,416,900 | * | |
| Communications Equipment (1.2%) | | | |
| | 26,500 | | | F5 Networks, Inc. | | | 2,638,340 | * | |
| | 75,000 | | | Finisar Corp. | | | 1,122,000 | * | |
| | | | 3,760,340 | | |
| Containers & Packaging (0.5%) | | | |
| | 32,500 | | | Rock-Tenn Co. Class A | | | 1,772,875 | | |
| Diversified Financial Services (1.2%) | | | |
| | 29,400 | | | IntercontinentalExchange, Inc. | | | 3,997,812 | * | |
| NUMBER OF SHARES | | | | VALUE† | |
Diversified Telecommunication Services (0.4%) | | | |
| | 47,500 | | | tw telecom, Inc. | | $ | 1,218,850 | * | |
| Electrical Equipment (3.9%) | | | |
| | 100,900 | | | AMETEK, Inc. | | | 5,035,919 | | |
| | 51,500 | | | Roper Industries, Inc. | | | 5,076,870 | | |
| | 100,000 | | | Sensata Technologies Holding NV | | | 2,678,000 | * | |
| | | | 12,790,789 | | |
Electronic Equipment, Instruments & Components (2.0%) | | | |
| | 50,000 | | | National Instruments Corp. | | | 1,343,000 | | |
| | 110,500 | | | Trimble Navigation Ltd. | | | 5,084,105 | * | |
| | | | 6,427,105 | | |
| Energy Equipment & Services (3.0%) | | | |
| | 35,000 | | | Cameron International Corp. | | | 1,494,850 | * | |
| | 26,000 | | | Core Laboratories NV | | | 3,013,400 | | |
| | 30,000 | | | Oceaneering International, Inc. | | | 1,435,800 | | |
| | 57,500 | | | Oil States International, Inc. | | | 3,806,500 | * | |
| | | | 9,750,550 | | |
| Food & Staples Retailing (1.7%) | | | |
| | 27,500 | | | PriceSmart, Inc. | | | 1,856,525 | | |
| | 36,800 | | | Whole Foods Market, Inc. | | | 3,507,776 | | |
| | | | 5,364,301 | | |
| Food Products (1.1%) | | | |
| | 45,000 | | | Mead Johnson Nutrition Co. | | | 3,622,950 | | |
| Health Care Equipment & Supplies (3.6%) | | | |
| | 25,000 | | | Edwards Lifesciences Corp. | | | 2,582,500 | * | |
| | 6,000 | | | Intuitive Surgical, Inc. | | | 3,322,740 | * | |
| | 30,000 | | | MAKO Surgical Corp. | | | 768,300 | * | |
| | 60,000 | | | Masimo Corp. | | | 1,342,800 | * | |
| | 50,000 | | | NxStage Medical, Inc. | | | 838,000 | * | |
| | 100,000 | | | Volcano Corp. | | | 2,865,000 | * | |
| | | | 11,719,340 | | |
| Health Care Providers & Services (3.7%) | | | |
| | 55,000 | | | Catalyst Health Solutions, Inc. | | | 5,139,200 | * | |
| | 32,000 | | | DaVita, Inc. | | | 3,142,720 | * | |
| | 114,500 | | | HMS Holdings Corp. | | | 3,813,995 | * | |
| | | | 12,095,915 | | |
| Health Care Technology (3.0%) | | | |
| | 75,000 | | | Cerner Corp. | | | 6,199,500 | * | |
| | 35,000 | | | SXC Health Solutions Corp. | | | 3,472,350 | * | |
| | | | 9,671,850 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| Hotels, Restaurants & Leisure (1.6%) | | | |
| | 8,000 | | | Chipotle Mexican Grill, Inc. | | $ | 3,039,600 | * | |
| | 40,000 | | | Starwood Hotels & Resorts Worldwide, Inc. | | | 2,121,600 | | |
| | | | 5,161,200 | | |
| Household Products (1.2%) | | | |
| | 70,000 | | | Church & Dwight Co., Inc. | | | 3,882,900 | | |
| Internet Software & Services (1.9%) | | | |
| | 50,000 | | | Liquidity Services, Inc. | | | 2,559,500 | * | |
| | 80,000 | | | Rackspace Hosting, Inc. | | | 3,515,200 | * | |
| | | | 6,074,700 | | |
| IT Services (3.0%) | | | |
| | 27,500 | | | Alliance Data Systems Corp. | | | 3,712,500 | * | |
| | 52,500 | | | Cognizant Technology Solutions Corp. Class A | | | 3,150,000 | * | |
| | 90,000 | | | VeriFone Systems, Inc. | | | 2,978,100 | * | |
| | | | 9,840,600 | | |
| Life Sciences Tools & Services (0.4%) | | | |
| | 32,500 | | | Illumina, Inc. | | | 1,312,675 | * | |
| Machinery (3.2%) | | | |
| | 16,000 | | | Cummins, Inc. | | | 1,550,560 | | |
| | 120,000 | | | Donaldson Co., Inc. | | | 4,004,400 | | |
| | 24,000 | | | Joy Global, Inc. | | | 1,361,520 | | |
| | 65,000 | | | Pall Corp. | | | 3,562,650 | | |
| | | | 10,479,130 | | |
| Media (1.4%) | | | |
| | 65,000 | | | AMC Networks, Inc. Class A | | | 2,310,750 | * | |
| | 40,000 | | | Discovery Communications, Inc. Class A | | | 2,160,000 | * | |
| | | | 4,470,750 | | |
| Multiline Retail (2.2%) | | | |
| | 130,000 | | | Dollar Tree, Inc. | | | 6,994,000 | * | |
| Oil, Gas & Consumable Fuels (3.5%) | | | |
| | 105,000 | | | Cabot Oil & Gas Corp. | | | 4,137,000 | | |
| | 35,000 | | | Concho Resources, Inc. | | | 2,979,200 | * | |
| | 125,000 | | | Denbury Resources, Inc. | | | 1,888,750 | * | |
| | 47,500 | | | SM Energy Co. | | | 2,332,725 | | |
| | | | 11,337,675 | | |
| Pharmaceuticals (2.7%) | | | |
| | 41,500 | | | Medicis Pharmaceutical Corp. Class A | | | 1,417,225 | | |
| | 36,000 | | | Perrigo Co. | | | 4,245,480 | | |
| | 55,000 | | | Salix Pharmaceuticals Ltd. | | | 2,994,200 | * | |
| | | | 8,656,905 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Professional Services (2.2%) | | | |
| | 45,000 | | | Advisory Board Co. | | $ | 2,231,550 | * | |
| | 96,100 | | | Verisk Analytics, Inc. Class A | | | 4,733,886 | * | |
| | | | 6,965,436 | | |
Real Estate Management & Development (1.0%) | | | |
| | 47,500 | | | Jones Lang LaSalle, Inc. | | | 3,342,575 | | |
| Road & Rail (2.4%) | | | |
| | 21,500 | | | Canadian Pacific Railway Ltd. | | | 1,575,090 | | |
| | 75,000 | | | J.B. Hunt Transport Services, Inc. | | | 4,470,000 | | |
| | 26,000 | | | Kansas City Southern | | | 1,808,560 | | |
| | | | 7,853,650 | | |
Semiconductors & Semiconductor Equipment (3.4%) | | | |
| | 80,000 | | | Altera Corp. | | | 2,707,200 | | |
| | 140,300 | | | Avago Technologies Ltd. | | | 5,036,770 | | |
| | 60,000 | | | Cavium, Inc. | | | 1,680,000 | * | |
| | 50,000 | | | Microchip Technology, Inc. | | | 1,654,000 | | |
| | | | 11,077,970 | | |
| Software (9.5%) | | | |
| | 65,000 | | | ANSYS, Inc. | | | 4,102,150 | * | |
| | 36,500 | | | Ariba, Inc. | | | 1,633,740 | * | |
| | 70,000 | | | Aspen Technology, Inc. | | | 1,620,500 | * | |
| | 57,600 | | | Check Point Software Technologies Ltd. | | | 2,856,384 | * | |
| | 52,800 | | | Citrix Systems, Inc. | | | 4,432,032 | * | |
| | 12,000 | | | Concur Technologies, Inc. | | | 817,200 | * | |
| | 65,000 | | | Informatica Corp. | | | 2,753,400 | * | |
| | 65,000 | | | MICROS Systems, Inc. | | | 3,328,000 | * | |
| | 100,000 | | | QLIK Technologies, Inc. | | | 2,212,000 | * | |
| | 60,000 | | | Red Hat, Inc. | | | 3,388,800 | * | |
| | 20,000 | | | Salesforce.com, Inc. | | | 2,765,200 | * | |
| | 9,500 | | | Ultimate Software Group, Inc. | | | 846,640 | * | |
| | | | 30,756,046 | | |
| Specialty Retail (8.0%) | | | |
| | 55,000 | | | Bed Bath & Beyond, Inc. | | | 3,399,000 | * | |
| | 86,700 | | | Dick's Sporting Goods, Inc. | | | 4,161,600 | | |
| | 42,500 | | | DSW, Inc. Class A | | | 2,312,000 | | |
| | 53,900 | | | O'Reilly Automotive, Inc. | | | 4,515,203 | * | |
| | 105,600 | | | Ross Stores, Inc. | | | 6,596,832 | | |
| | 40,000 | | | Tractor Supply Co. | | | 3,322,400 | | |
| | 60,000 | | | Urban Outfitters, Inc. | | | 1,655,400 | * | |
| | | | 25,962,435 | | |
| Textiles, Apparel & Luxury Goods (2.8%) | | | |
| | 50,000 | | | Coach, Inc. | | | 2,924,000 | | |
| | 42,500 | | | PVH Corp. | | | 3,306,075 | | |
| | 60,000 | | | Vera Bradley, Inc. | | | 1,264,800 | * | |
| | 37,500 | | | Warnaco Group, Inc. | | | 1,596,750 | * | |
| | | | 9,091,625 | | |
See Notes to Schedule of Investments
7
| NUMBER OF SHARES | | | | VALUE† | |
| Trading Companies & Distributors (2.5%) | | | |
| | 135,000 | | | Fastenal Co. | | $ | 5,441,850 | | |
| | 39,200 | | | MSC Industrial Direct Co., Inc. Class A | | | 2,569,560 | | |
| | | | 8,011,410 | | |
| Wireless Telecommunication Services (3.2%) | | | |
| | 65,000 | | | Crown Castle International Corp. | | | 3,812,900 | * | |
| | 117,100 | | | SBA Communications Corp. Class A | | | 6,680,555 | * | |
| | | | 10,493,455 | | |
| | | | | Total Common Stocks (Cost $211,819,147) | | | 314,939,178 | | |
| Short-Term Investments (2.7%) | | | |
| | 8,793,653 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $8,793,653) | | | 8,793,653 | | |
| | | | | Total Investments (99.9%) (Cost $220,612,800) | | | 323,732,831 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (0.1%) | | | 277,451 | | |
| | | | | Total Net Assets (100.0%) | | $ | 324,010,282 | | |
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 and exchange traded funds, 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 on a principal exchange or market for that security (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 (Level 2 inputs).
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
See Notes to Financial Statements
9
Notes to Schedule of Investments Mid Cap Growth Portfolio (Unaudited) (cont'd)
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 or on days when foreign markets are closed and U.S. markets are open. In each of these events, 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, 2012:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 314,939,178 | | | $ | — | | | $ | — | | | $ | 314,939,178 | | |
| Short-Term Investments | | | — | | | | 8,793,653 | | | | — | | | | 8,793,653 | | |
| Total Investments | | $ | 314,939,178 | | | $ | 8,793,653 | | | $ | — | | | $ | 323,732,831 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no transfers between Levels 1 and 2 during the six months ended June 30, 2012.
## At June 30, 2012, the cost of investments for U.S. federal income tax purposes was $221,213,418. Gross unrealized appreciation of investments was $109,795,703 and gross unrealized depreciation of investments was $7,276,290, resulting in net unrealized appreciation of $102,519,413, 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, 2012 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 323,732,831 | | |
| Dividends and interest receivable | | | 58,463 | | |
| Receivable for securities sold | | | 423,990 | | |
| Receivable for Fund shares sold | | | 164,912 | | |
| Prepaid expenses and other assets | | | 14,264 | | |
| Total Assets | | | 324,394,460 | | |
| Liabilities | |
| Payable for Fund shares redeemed | | | 23,769 | | |
| Payable to investment manager (Note B) | | | 142,217 | | |
| Payable to administrator—net (Note B) | | | 98,560 | | |
| Accrued expenses and other payables | | | 119,632 | | |
| Total Liabilities | | | 384,178 | | |
| Net Assets at value | | $ | 324,010,282 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 250,338,189 | | |
| Undistributed net investment income (loss) | | | (978,216 | ) | |
| Accumulated net realized gains (losses) on investments | | | (28,469,724 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 103,120,033 | | |
| Net Assets at value | | $ | 324,010,282 | | |
| Net Assets | |
| Class I | | $ | 239,825,934 | | |
| Class S | | | 84,184,348 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | |
| Class I | | | 7,985,772 | | |
| Class S | | | 2,870,585 | | |
| Net Asset Value, offering and redemption price per share | |
| Class I | | $ | 30.03 | | |
| Class S | | | 29.33 | | |
| * Cost of Investments | | $ | 220,612,800 | | |
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, 2012 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 730,482 | | |
| Interest income—unaffiliated issuers | | | 4,943 | | |
| Foreign taxes withheld | | | (3,964 | ) | |
| Total income | | $ | 731,461 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 891,880 | | |
| Administration fees (Note B): | |
| Class I | | | 373,811 | | |
| Class S | | | 118,075 | | |
| Distribution fees (Note B): | |
| Class S | | | 98,396 | | |
| Audit fees | | | 20,854 | | |
| Custodian fees (Note A) | | | 52,894 | | |
| Insurance expense | | | 8,881 | | |
| Legal fees | | | 73,465 | | |
| Reimbursement of expenses previously assumed by Management (Note B) | | | 8,959 | | |
| Shareholder reports | | | 28,590 | | |
| Trustees' fees and expenses | | | 26,797 | | |
| Miscellaneous | | | 7,080 | | |
| Total expenses | | | 1,709,682 | | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (5 | ) | |
| Total net expenses | | | 1,709,677 | | |
| Net investment income (loss) | | $ | (978,216 | ) | |
| Realized and Unrealized Gain (Loss) on Investments (Note A): | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 13,858,225 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 14,240,033 | | |
| Foreign currency | | | 2 | | |
| Net gain (loss) on investments | | | 28,098,260 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 27,120,044 | | |
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, 2012 (Unaudited) | | Year Ended December 31, 2011 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | (978,216 | ) | | $ | (1,857,518 | ) | |
| Net realized gain (loss) on investments | | | 13,858,225 | | | | 40,544,868 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 14,240,035 | | | | (37,234,254 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | 27,120,044 | | | | 1,453,096 | | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold: | |
| Class I | | | 8,899,284 | | | | 13,672,447 | | |
| Class S | | | 17,219,775 | | | | 16,391,288 | | |
| Payments for shares redeemed: | |
| Class I | | | (23,638,411 | ) | | | (48,218,175 | ) | |
| Class S | | | (3,030,919 | ) | | | (11,075,136 | ) | |
| Net increase (decrease) from Fund share transactions | | | (550,271 | ) | | | (29,229,576 | ) | |
| Net Increase (Decrease) in Net Assets | | | 26,569,773 | | | | (27,776,480 | ) | |
| Net Assets: | |
| Beginning of period | | | 297,440,509 | | | | 325,216,989 | | |
| End of period | | $ | 324,010,282 | | | $ | 297,440,509 | | |
| Undistributed net investment income (loss) at end of period | | $ | (978,216 | ) | | $ | — | | |
See Notes to Financial Statements
13
Notes to Financial Statements Mid Cap Growth Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: Neuberger Berman Advisers Management Trust (the "Trust") is 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 ("GAAP") 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 rate 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, 2012 was $29,044.
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 2008 - 2010. As of June 30, 2012, 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 GAAP. 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, 2011, permanent differences resulting primarily from different book and tax accounting for net operating losses and non-taxable dividend adjustments to income 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. For the year ended December 31, 2011, the Fund recorded the following permanent reclassifications:
| Paid-in Capital | | Undistributed Net Investment Income (Loss) | | Accumulated Net Realized Gains (Losses) on Investments | |
| | $(1,937,514) | | | $ | 1,857,518 | | | $ | 79,996 | | |
As of December 31, 2011, 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 | | Other Temporary Differences | | Total | |
| $ | 88,268,569 | | | $ | (41,716,520 | ) | | $ | — | | | $ | 46,552,049 | | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales, capital loss carryforwards and return of capital adjustments for securities sold.
To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of the Fund not to distribute such gains. The Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") became effective for the Fund on January 1, 2011. The Act modernizes several of the federal income and excise tax provisions related to RICs. 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 ("Post-Enactment"). Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character ("Pre-Enactment"). As determined at December 31, 2011, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| | | Pre-Enactment | | Post-Enactment (No Expiration Date) | |
| | | Expiring in: 2017 | | Long-Term | | Short-Term | |
| | | | | $ | 41,716,520 | | | $ | — | | | $ | — | | |
Post-Enactment capital loss carryforwards must be fully used before Pre-Enactment capital loss carryforwards; therefore, under certain circumstances, Pre-Enactment capital loss carryforwards available as of the report date may expire unused.
During the year ended December 31, 2011, the Fund utilized capital loss carryforwards of $39,993,273.
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.
15
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 of the investment companies 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, 2012, the impact of this arrangement was a reduction of expenses of $5.
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. Accordingly, for the six months ended June 30, 2012, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.54% of the Fund's average daily net assets.
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.
16
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 may be 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, transaction costs and dividend expense on short sales, if any) ("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, 2012 | |
| Class I | | | 1.00 | % | | 12/31/15 | | $ | — | | |
| Class S | | | 1.25 | % | | 12/31/15 | | | — | | |
(1) Expense limitation per annum of the respective class' average daily net assets.
Each respective class has agreed to repay Management through December 31, 2018 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 in place at the time the fees and expenses were foregone or reimbursed, 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, 2012, the Fund's Class S shares reimbursed Management $8,959, under its contractual expense limitation. At June 30, 2012, the Fund's Class I shares had no contingent liability to Management under its contractual expense limitation. At June 30, 2012, the Fund's Class S shares contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | | | |
| | | 2013 | | 2014 | | Total | |
| Class S | | $ | 4,770 | | | $ | 4,506 | | | $ | 9,276 | | |
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")). NBSH Acquisition, LLC ("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 55% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 45% of such common units. Pursuant to agreements among NBG, NBSH and the LBHI Parties, NBG is entitled to acquire the remaining common units not owned by NBSH through a process that is expected to end in 2017. In April 2012, NBG committed to and
17
began payments for equity purchases from the LBHI parties, which are expected to raise employee ownership to approximately 64% by year end.
Note C—Securities Transactions:
During the six months ended June 30, 2012, there were purchase and sale transactions (excluding short-term securities) of $61,222,429 and $67,675,150, respectively.
During the six months ended June 30, 2012, 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, 2012 and for the year ended December 31, 2011 was as follows:
For the Six Months Ended June 30, 2012
| | | Shares Sold | | Shares Redeemed | | Total | |
| Class I | | | 300,565 | | | | (780,269 | ) | | | (479,704 | ) | |
| Class S | | | 588,931 | | | | (101,544 | ) | | | 487,387 | | |
For the Year Ended December 31, 2011
| | | Shares Sold | | Shares Redeemed | | Total | |
| Class I | | | 478,220 | | | | (1,714,503 | ) | | | (1,236,283 | ) | |
| Class S | | | 587,530 | | | | (408,330 | ) | | | 179,200 | | |
Note E—Line of Credit:
At June 30, 2012, 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 0.10% 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, 2012. During the six months ended June 30, 2012, the Fund did not utilize this line of credit.
Note F—Recent Accounting Pronouncement:
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements.
Note G—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. Per share amounts that round to less than $.01 or $(.01) per share are presented as $.00 or $(.00), respectively.
| Class I | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 27.55 | | | $ | 27.42 | | | $ | 21.25 | | | $ | 16.14 | | | $ | 28.50 | | | $ | 23.26 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | (.08 | ) | | | (.15 | ) | | | (.11 | ) | | | (.03 | ) | | | (.12 | ) | | | (.05 | ) | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 2.56 | | | | .28 | | | | 6.28 | | | | 5.14 | | | | (12.24 | ) | | | 5.29 | | |
| Total From Investment Operations | | | 2.48 | | | | .13 | | | | 6.17 | | | | 5.11 | | | | (12.36 | ) | | | 5.24 | | |
| Net Asset Value, End of Period | | $ | 30.03 | | | $ | 27.55 | | | $ | 27.42 | | | $ | 21.25 | | | $ | 16.14 | | | $ | 28.50 | | |
Total Return†† | | | 9.00 | %** | | | .47 | % | | | 29.04 | % | | | 31.66 | % | | | (43.37 | )% | | | 22.53 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 239.8 | | | $ | 233.2 | | | $ | 266.0 | | | $ | 234.1 | | | $ | 345.1 | | | $ | 819.0 | | |
Ratio of Gross Expenses to Average Net Assets# | | | .98 | %* | | | 1.01 | % | | | 1.02 | % | | | 1.01 | % | | | .92 | % | | | .88 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | .98 | %* | | | 1.01 | % | | | 1.02 | % | | | 1.01 | % | | | .92 | % | | | .88 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | (.53 | )%* | | | (.54 | )% | | | (.49 | )% | | | (.16 | )% | | | (.51 | )% | | | (.20 | )% | |
| Portfolio Turnover Rate | | | 19 | %** | | | 35 | % | | | 46 | % | | | 67 | % | | | 62 | % | | | 56 | % | |
See Notes to Financial Highlights
19
Financial Highlights (cont'd)
| Class S | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 26.94 | | | $ | 26.87 | | | $ | 20.87 | | | $ | 15.89 | | | $ | 28.13 | | | $ | 23.02 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | (.12 | ) | | | (.21 | ) | | | (.16 | ) | | | (.08 | ) | | | (.17 | ) | | | (.12 | ) | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 2.51 | | | | .28 | | | | 6.16 | | | | 5.06 | | | | (12.07 | ) | | | 5.23 | | |
| Total From Investment Operations | | | 2.39 | | | | .07 | | | | 6.00 | | | | 4.98 | | | | (12.24 | ) | | | 5.11 | | |
| Net Asset Value, End of Period | | $ | 29.33 | | | $ | 26.94 | | | $ | 26.87 | | | $ | 20.87 | | | $ | 15.89 | | | $ | 28.13 | | |
Total Return†† | | | 8.87 | %** | | | .26 | % | | | 28.75 | % | | | 31.34 | % | | | (43.51 | )% | | | 22.20 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 84.2 | | | $ | 64.2 | | | $ | 59.2 | | | $ | 43.2 | | | $ | 38.7 | | | $ | 68.9 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.25 | %* | | | 1.26 | % | | | 1.27 | % | | | 1.27 | % | | | 1.17 | % | | | 1.13 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.25 | %* | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.17 | % | | | 1.13 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | (.80 | )%* | | | (.78 | )% | | | (.73 | )% | | | (.44 | )% | | | (.77 | )% | | | (.47 | )% | |
| Portfolio Turnover Rate | | | 19 | %** | | | 35 | % | | | 46 | % | | | 67 | % | | | 62 | % | | | 56 | % | |
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 indicate 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 class actions proceeds listed in Note A-4 had no impact on total return.
# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.
‡ 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. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, the annualized ratios of net expenses to average daily net assets would have been:
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| Mid Cap Growth Portfolio Class I | | | .98 | % | | | 1.01 | % | | | 1.02 | % | | | 1.01 | % | | | .92 | % | | | .88 | % | |
| Mid Cap Growth Portfolio Class S | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.18 | % | | | 1.14 | % | |
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, 2012 | |
| Mid Cap Growth Portfolio Class S | | | 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
Mid Cap Intrinsic Value Portfolio
I Class Shares
S Class Shares
Semi-Annual Report
June 30, 2012
C0244 08/12
Mid Cap Intrinsic Value Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Mid Cap Intrinsic Value Portfolio (formerly Neuberger Berman AMT Regency Portfolio) Class I generated a 7.01% total return for the six months ended June 30, 2012, but underperformed its benchmark, the Russell Midcap® Value Index, which returned 7.78% for the period. Returns for the Portfolio's Class I and Class S shares are provided on page three.
The bull market that started in the fourth quarter of 2011 continued into 2012, with the broad market averages up around 30% from the October lows at the end of the first calendar quarter. The first quarter rally was fueled by better economic data in the U.S., the second round of the European Central Bank's (ECB) Long Term Refunding Operation (LTRO), and a short-term solution to the Greek sovereign debt issue. Investor sentiment turned negative for most of the second quarter with continued financial turmoil in Europe and a slowdown in global economic growth. The market continued with its risk-on/risk-off investor sentiment and volatility increased. While stocks were down significantly in April and May, they rallied in June on hopes that the Federal Reserve and the ECB would once again step in with increased liquidity.
After outperforming the benchmark in the first quarter, the Portfolio underperformed during the second quarter, which resulted in slight underperformance for the first half of the year. In general, we attribute the underperformance during the second quarter to investor disdain for companies in contrarian/turnaround situations, of which we own many in the Portfolio. In fact, despite several of these companies selling at compelling valuations and very large discounts to our estimates of intrinsic value, these stocks declined more than the market during the downdrafts. In many cases, we have used the market volatility to add to positions where the investment case is still intact.
While the macroeconomic environment remains challenging, Portfolio valuations, in our opinion, are favorable. We continue to hold and identify companies selling at substantial discounts to our intrinsic value estimates. Additionally, we have been emphasizing companies that generate substantial free cash flow that is being shared with stockholders through share repurchase programs and dividend payments. We also continue to purchase stock of franchise companies where we feel transitory, short-term negative issues are putting pressure on the stock and are already appropriately factored into the price. While we believe we are identifying attractive investment opportunities, recently we have seen macroeconomic and geopolitical forces creating a high degree of correlation among stocks, thus negating our stock selection.
In the first half of the year, the Portfolio benefitted most from individual stocks where strategic events were announced. Our top three performers were all involved in corporate restructuring activity. Sunoco accepted an offer to sell the company at a premium to Energy Transfer Partners; Constellation Brands agreed to acquire the remaining 50% of Crown Imports, which is highly accretive; and Corrections Corp. announced it was exploring creating a REIT structure. In addition, Avon, which we sold, benefited from an unsolicited takeover offer from Coty, Inc., and BMC Software's stock reacted favorably to the news that Elliott Management, an activist investor, is pressuring management to sell the company.
Detracting from performance was our underweight in Financial Services (despite positive contributions from most of our holdings in this sector) and the significant price pressure that was placed on our Producer Durables holdings, where in several cases (e.g., Navistar International, our top detractor, Brink's, Akzo Nobel, ITT and KBR) stock-specific issues surfaced. A few of our contrarian Consumer names, including Safeway and Staples (two of our leading underperformers from this sector), as well as Best Buy, came under pressure despite what we view as compelling valuation levels. Additionally, overseas sales and the perceived risks of recessions abroad hurt our Technology stock Freescale Semiconductor, another significant detractor which was eliminated from the Porfolio.
As stocks moved up during the first quarter, we actively attempted to improve the Portfolio's risk/reward characteristics. We eliminated positions such as Nuance, Seaspan, Air Products, Torchmark and Advance Auto Parts, as they approached our intrinsic value estimates. We also eliminated Wendy's, where the investment thesis changed. We initiated new positions which are diversified across several different industries. These purchases included BankUnited, BMC Software, Cardinal Health and Staples.
1
In the second quarter we initiated several new positions including Willis Group (a major insurance broker with takeover possibilities), Lear Corp. (a leading global supplier of automotive seating and electrical distribution systems) and Cameron International (a leading manufacturer of oil and gas industry equipment). On the sell side, we eliminated positions in Avon Products, Dresser-Rand Group Inc., and Freescale Semiconductor.
As we begin the second half of the year, considerable uncertainty remains including the fiscal cliff in the U.S., the forthcoming U.S. presidential election and general gridlock in Washington, a decelerating profit growth outlook, financial instability and turmoil in Europe, and a slowdown in economic growth in China. While this macro economic backdrop is concerning, Portfolio valuations remain very attractive and discount a large part of this uncertainty, in our opinion. We strongly believe that over time the true value of an enterprise gets reflected in its stock price and that volatility in the market creates opportunity for value investors. We continue to feel that our cash-generating franchises are selling at material discounts to our estimates of intrinsic value. As a result, we think the Portfolio is positioned to benefit when the macro environment improves.
We look forward to continuing to serve your investment needs.
Sincerely,
MICHAEL C. GREENE
PORTFOLIO MANAGER
Information about the principal risks of investing in the Portfolio is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Portfolio are subject to change.
2
Mid Cap Intrinsic Value Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 15.2 | % | |
| Consumer Staples | | | 8.7 | | |
| Energy | | | 5.8 | | |
| Financial Services | | | 16.9 | | |
| Health Care | | | 10.7 | | |
| Producer Durables | | | 26.2 | | |
| Technology | | | 10.0 | | |
| Utilities | | | 6.1 | | |
| Short-Term Investments | | | 0.4 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2012 | |
| | | Date | | 06/30/2012 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund1 | |
Mid Cap Intrinsic Value Portfolio Class I | | 08/22/2001 | | | 7.01 | % | | | –5.48 | % | | | –1.08 | % | | | 6.65 | % | | | 6.14 | % | |
Mid Cap Intrinsic Value Portfolio Class S2 | | 04/29/2005 | | | 6.94 | % | | | –5.68 | % | | | –1.28 | % | | | 6.50 | % | | | 6.00 | % | |
Russell Midcap® Value Index3 | | | | | | | 7.78 | % | | | –0.37 | % | | | –0.13 | % | | | 8.17 | % | | | 7.80 | % | |
Russell Midcap® Index3 | | | | | | | 7.97 | % | | | –1.65 | % | | | 1.06 | % | | | 8.45 | % | | | 7.43 | % | |
The performance data quoted represent past performance and do not indicate future results. 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.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares. The results do 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.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2011 was 1.07% and 1.33% for Class I and Class S shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratio was 1.25% for Class S after expense reimbursements and/or fee waivers.
3
Endnotes
1 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.
2 Performance shown prior to April 29, 2005 for Class S shares is that of Class I shares, which have 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, expenses or tax consequences of investing in the individual securities that they track, and that individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions. The Portfolio may invest in securities not included in a described index and/or may not invest in all securities included in a described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not Management'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, Management 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) the investments for one or more other registered funds that have names, investment objectives, and investment styles similar to those of the Portfolio. You should be aware that the Portfolio is likely to differ from the other mutual fund(s) 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 fund(s).
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 name in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2012 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses (Unaudited)
As a Fund shareholder, you incur two types of costs: (1) transaction costs such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and compare these costs with the ongoing costs of investing in other mutual funds.
This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2012 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 and 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 6/30/12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST MID CAP INTRINSIC VALUE PORTFOLIO
| Actual | | Beginning Account Value 1/1/12 | | Ending Account Value 6/30/12 | | Expenses Paid During the Period* 1/1/12 – 6/30/12 | | Expense Ratio | |
| Class I | | $ | 1,000.00 | | | $ | 1,070.10 | | | $ | 5.51 | | | | 1.07 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,069.40 | | | $ | 6.43 | | | | 1.25 | % | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,019.54 | | | $ | 5.37 | | | | 1.07 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,018.65 | | | $ | 6.27 | | | | 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 182/366 (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 366.
5
Schedule of Investments Mid Cap Intrinsic Value Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (99.6%) | | | |
| Aerospace & Defense (4.6%) | | | |
| | 45,900 | | | General Dynamics Corp. | | $ | 3,027,564 | | |
| | 51,400 | | | Rockwell Collins, Inc. | | | 2,536,590 | | |
| | | | 5,564,154 | | |
| Auto Components (1.0%) | | | |
| | 30,300 | | | Lear Corp. | | | 1,143,219 | | |
| Beverages (3.0%) | | | |
| | 131,900 | | | Constellation Brands, Inc. Class A | | | 3,569,214 | * | |
| Capital Markets (2.2%) | | | |
| | 60,200 | | | State Street Corp. | | | 2,687,328 | | |
| Chemicals (2.2%) | | | |
| | 170,700 | | | Akzo Nobel NV ADR | | | 2,673,162 | | |
| Commercial Banks (4.5%) | | | |
| | 52,800 | | | BB&T Corp. | | | 1,628,880 | | |
| | 53,400 | | | Comerica, Inc. | | | 1,639,914 | | |
| | 335,200 | | | Huntington Bancshares, Inc. | | | 2,145,280 | | |
| | | | 5,414,074 | | |
| Commercial Services & Supplies (10.4%) | | | |
| | 98,900 | | | Avery Dennison Corp. | | | 2,703,926 | | |
| | 95,400 | | | Brink`s Co. | | | 2,211,372 | | |
| | 89,700 | | | Corrections Corporation of America | | | 2,641,665 | | |
| | 139,500 | | | Covanta Holding Corp. | | | 2,392,425 | | |
| | 93,100 | | | Republic Services, Inc. | | | 2,463,426 | | |
| | | | 12,412,814 | | |
| Communications Equipment (2.2%) | | | |
| | 55,000 | | | Motorola Solutions, Inc. | | | 2,646,050 | | |
| Construction & Engineering (1.9%) | | | |
| | 94,400 | | | KBR, Inc. | | | 2,332,624 | | |
| Electric Utilities (2.0%) | | | |
| | 134,100 | | | NV Energy, Inc. | | | 2,357,478 | | |
Electronic Equipment, Instruments & Components (2.5%) | | | |
| | 27,000 | | | Dolby Laboratories, Inc. Class A | | | 1,115,100 | * | |
| | 294,300 | | | Flextronics International Ltd. | | | 1,824,660 | * | |
| | | | 2,939,760 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Energy Equipment & Services (1.4%) | | | |
| | 38,300 | | | Cameron International Corp. | | $ | 1,635,793 | * | |
| Food & Staples Retailing (5.7%) | | | |
| | 64,600 | | | CVS Caremark Corp. | | | 3,018,758 | | |
| | 210,200 | | | Safeway, Inc. | | | 3,815,130 | | |
| | | | 6,833,888 | | |
| Health Care Equipment & Supplies (5.3%) | | | |
| | 49,800 | | | Covidien PLC | | | 2,664,300 | | |
| | 57,100 | | | Zimmer Holdings, Inc. | | | 3,674,956 | | |
| | | | 6,339,256 | | |
| Health Care Providers & Services (3.0%) | | | |
| | 42,100 | | | Cardinal Health, Inc. | | | 1,768,200 | | |
| | 60,100 | | | Omnicare, Inc. | | | 1,876,923 | | |
| | | | 3,645,123 | | |
| Hotels, Restaurants & Leisure (1.0%) | | | |
| | 23,500 | | | Wyndham Worldwide Corp. | | | 1,239,390 | | |
| Industrial Conglomerates (2.6%) | | | |
| | 58,800 | | | Tyco International Ltd. | | | 3,107,580 | | |
| Insurance (1.6%) | | | |
| | 53,000 | | | Willis Group Holdings PLC | | | 1,933,970 | | |
| IT Services (6.3%) | | | |
| | 80,300 | | | Amdocs Ltd. | | | 2,386,516 | * | |
| | 72,600 | | | Fidelity National Information Services, Inc. | | | 2,474,208 | | |
| | 160,300 | | | Western Union Co. | | | 2,699,452 | | |
| | | | 7,560,176 | | |
| Machinery (4.4%) | | | |
| | 39,500 | | | Ingersoll-Rand PLC | | | 1,666,110 | | |
| | 108,300 | | | ITT Corp. | | | 1,906,080 | | |
| | 61,500 | | | Navistar International Corp. | | | 1,744,755 | * | |
| | | | 5,316,945 | | |
| Media (4.6%) | | | |
| | 182,900 | | | Cablevision Systems Corp. Class A | | | 2,430,741 | | |
| | 125,100 | | | Virgin Media, Inc. | | | 3,051,189 | | |
| | | | 5,481,930 | | |
| Metals & Mining (0.6%) | | | |
| | 48,378 | | | SunCoke Energy, Inc. | | | 708,738 | * | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| Multi-Utilities (4.1%) | | | |
| | 114,000 | | | CenterPoint Energy, Inc. | | $ | 2,356,380 | | |
| | 37,000 | | | Sempra Energy | | | 2,548,560 | | |
| | | | 4,904,940 | | |
| Multiline Retail (1.9%) | | | |
| | 48,900 | | | Kohl's Corp. | | | 2,224,461 | | |
| Oil, Gas & Consumable Fuels (3.8%) | | | |
| | 93,200 | | | Southwestern Energy Co. | | | 2,975,876 | * | |
| | 33,700 | | | Sunoco, Inc. | | | 1,600,750 | | |
| | | | 4,576,626 | | |
| Pharmaceuticals (2.4%) | | | |
| | 81,600 | | | Hospira, Inc. | | | 2,854,368 | * | |
| Real Estate Investment Trusts (1.2%) | | | |
| | 67,500 | | | Starwood Property Trust, Inc. | | | 1,438,425 | | |
| Software (3.4%) | | | |
| | 39,400 | | | BMC Software, Inc. | | | 1,681,592 | * | |
| | 163,200 | | | Symantec Corp. | | | 2,384,352 | * | |
| | | | 4,065,944 | | |
| Specialty Retail (6.8%) | | | |
| | 152,800 | | | Best Buy Co., Inc. | | | 3,202,688 | | |
| | 176,900 | | | Chico's FAS, Inc. | | | 2,625,196 | | |
| | 175,800 | | | Staples, Inc. | | | 2,294,190 | | |
| | | | 8,122,074 | | |
| Thrifts & Mortgage Finance (3.0%) | | | |
| | 57,900 | | | BankUnited, Inc. | | | 1,365,282 | | |
| | 195,900 | | | People's United Financial, Inc. | | | 2,274,398 | | |
| | | | 3,639,680 | | |
| | | | | Total Common Stocks (Cost $112,305,303) | | | 119,369,184 | | |
| Short-Term Investments (0.4%) | | | |
| | 488,947 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $488,947) | | | 488,947 | | |
| | | | | Total Investments (100.0%) (Cost $112,794,250) | | | 119,858,131 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (0.0%) | | | 48,515 | | |
| | | | | Total Net Assets (100.0%) | | $ | 119,906,646 | | |
See Notes to Schedule of Investments
7
Notes to Schedule of Investments Mid Cap Intrinsic
Value 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 Intrinsic Value Portfolio (formerly, 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 and exchange traded funds, 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 on a principal exchange or market for that security (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 (Level 2 inputs).
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
See Notes to Financial Statements
8
Notes to Schedule of Investments Mid Cap Intrinsic
Value Portfolio (Unaudited) (cont'd)
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 or on days when foreign markets are closed and U.S. markets are open. In each of these events, 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, 2012:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 119,369,184 | | | $ | — | | | $ | — | | | $ | 119,369,184 | | |
| Short-Term Investments | | | — | | | | 488,947 | | | | — | | | | 488,947 | | |
| Total Investments | | $ | 119,369,184 | | | $ | 488,947 | | | $ | — | | | $ | 119,858,131 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no transfers between Levels 1 and 2 during the six months ended June 30, 2012.
## At June 30, 2012, the cost of investments for U.S. federal income tax purposes was $112,815,853. Gross unrealized appreciation of investments was $12,191,405 and gross unrealized depreciation of investments was $5,149,127, resulting in net unrealized appreciation of $7,042,278, 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
| | | MID CAP INTRINSIC VALUE PORTFOLIO | |
| | | June 30, 2012 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 119,858,131 | | |
| Dividends and interest receivable | | | 280,954 | | |
| Receivable for Fund shares sold | | | 25,764 | | |
| Prepaid expenses and other assets | | | 4,458 | | |
| Total Assets | | | 120,169,307 | | |
| Liabilities | |
| Payable for Fund shares redeemed | | | 98,990 | | |
| Payable to investment manager (Note B) | | | 52,316 | | |
| Payable to administrator—net (Note B) | | | 38,701 | | |
| Accrued expenses and other payables | | | 72,654 | | |
| Total Liabilities | | | 262,661 | | |
| Net Assets at value | | $ | 119,906,646 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 122,265,410 | | |
| Undistributed net investment income (loss) | | | 1,153,880 | | |
| Accumulated net realized gains (losses) on investments | | | (10,576,525 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 7,063,881 | | |
| Net Assets at value | | $ | 119,906,646 | | |
| Net Assets | |
| Class I | | $ | 67,948,356 | | |
| Class S | | | 51,958,290 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | |
| Class I | | | 4,453,126 | | |
| Class S | | | 3,153,120 | | |
| Net Asset Value, offering and redemption price per share | |
| Class I | | $ | 15.26 | | |
| Class S | | | 16.48 | | |
| *Cost of Investments | | $ | 112,794,250 | | |
See Notes to Financial Statements
10
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | MID CAP INTRINSIC VALUE PORTFOLIO | |
| | | For the Six Months Ended June 30, 2012 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 1,280,400 | | |
| Interest income—unaffiliated issuers | | | 1,824 | | |
| Foreign taxes withheld | | | (13,724 | ) | |
| Total income | | $ | 1,268,500 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 345,092 | | |
| Administration fees (Note B): | |
| Class I | | | 106,594 | | |
| Class S | | | 81,638 | | |
| Distribution fees (Note B): | |
| Class S | | | 68,032 | | |
| Audit fees | | | 20,854 | | |
| Custodian fees (Note A) | | | 27,309 | | |
| Insurance expense | | | 5,827 | | |
| Legal fees | | | 32,331 | | |
| Shareholder reports | | | 19,518 | | |
| Trustees' fees and expenses | | | 26,616 | | |
| Miscellaneous | | | 3,056 | | |
| Total expenses | | | 736,867 | | |
| Expenses reimbursed by Management (Note B) | | | (17,928 | ) | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (15 | ) | |
| Total net expenses | | | 718,924 | | |
| Net investment income (loss) | | $ | 549,576 | | |
| Realized and Unrealized Gain (Loss) on Investments (Note A): | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 3,091,968 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 5,071,315 | | |
| Net gain (loss) on investments | | | 8,163,283 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 8,712,859 | | |
See Notes to Financial Statements
11
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | MID CAP INTRINSIC VALUE PORTFOLIO | |
| | | Six Months Ended June 30, 2012 (Unaudited) | | Year Ended December 31, 2011 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | 549,576 | | | $ | 620,133 | | |
| Net realized gain (loss) on investments | | | 3,091,968 | | | | 50,071,971 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 5,071,315 | | | | (56,616,746 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | 8,712,859 | | | | (5,924,642 | ) | |
| Distributions to Shareholders From (Note A): | |
| Net investment income: | |
| Class I | | | — | | | | (495,806 | ) | |
| Class S | | | — | | | | (233,831 | ) | |
| Total distributions to shareholders | | | — | | | | (729,637 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold: | |
| Class I | | | 1,960,423 | | | | 9,740,700 | | |
| Class S | | | 2,033,963 | | | | 11,448,964 | | |
| Proceeds from reinvestment of dividends and distributions: | |
| Class I | | | — | | | | 495,806 | | |
| Class S | | | — | | | | 233,831 | | |
| Payments for shares redeemed: | |
| Class I | | | (8,972,599 | ) | | | (71,547,917 | ) | |
| Class S | | | (9,029,927 | ) | | | (15,624,875 | ) | |
| Net increase (decrease) from Fund share transactions | | | (14,008,140 | ) | | | (65,253,491 | ) | |
| Net Increase (Decrease) in Net Assets | | | (5,295,281 | ) | | | (71,907,770 | ) | |
| Net Assets: | |
| Beginning of period | | | 125,201,927 | | | | 197,109,697 | | |
| End of period | | $ | 119,906,646 | | | $ | 125,201,927 | | |
| Undistributed net investment income (loss) at end of period | | $ | 1,153,880 | | | $ | 604,304 | | |
See Notes to Financial Statements
12
Notes to Financial Statements Mid Cap Intrinsic Value Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: Neuberger Berman Advisers Management Trust (the "Trust") is 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 ("GAAP") 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 rate 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, 2012 was $5,371.
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 2008 - 2010. As of June 30, 2012, 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 GAAP. 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, 2011, permanent differences resulting primarily from different book and tax accounting for foreign currency gains and losses and return of capital non-taxable dividend adjustments to income 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. For the year ended December 31, 2011, the Fund recorded the following permanent reclassifications:
| Paid-in Capital | | Undistributed Net Investment Income (Loss) | | Accumulated Net Realized Gains (Losses) on Investments | |
| $ | — | | | $ | 37,878 | | | $ | (37,878 | ) | |
For tax purposes, short-term gains are considered ordinary income.
The tax character of distributions paid during the years ended December 31, 2011 and December 31, 2010 was as follows:
| | | Distributions Paid From: | |
| | | Ordinary Income | | Long-Term Capital Gain | | Total | |
| | | 2011 | | 2010 | | 2011 | | 2010 | | 2011 | | 2010 | |
| | | | | $ | 729,637 | | | $ | 1,086,457 | | | $ | — | | | $ | — | | | $ | 729,637 | | | $ | 1,086,457 | | |
As of December 31, 2011, 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 | | Other Temporary Differences | | Total | |
| $ | 604,304 | | | $ | 30,612,792 | | | $ | 1,970,963 | | | $ | (44,259,682 | ) | | $ | — | | | $ | (11,071,623 | ) | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of wash sales, capital loss carryforwards, and non-real estate investment trusts return of capital basis adjustments.
To the extent the Fund's net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of the Fund not to distribute such gains. The Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") became effective for the Fund on January 1, 2011. The Act modernizes several of the federal income and excise tax provisions related to RICs. 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 ("Post-Enactment"). Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character ("Pre-Enactment"). As determined at December 31, 2011, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| Pre-Enactment | | Post-Enactment (No Expiration Date) | |
Expiring in: 2017 | | Long-Term | | Short-Term | |
| $ | 44,259,682 | | | $ | — | | | $ | — | | |
14
Post-Enactment capital loss carryforwards must be fully used before Pre-Enactment capital loss carryforwards; therefore, under certain circumstances, Pre-Enactment capital loss carryforwards available as of the report date may expire unused.
During the year ended December 31, 2011, the Fund utilized capital loss carryforwards of $15,451,623.
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 income, capital gains, and/or return of capital, but the REITs do not report this information to the Fund until the following calendar year. At December 31, 2011, the Fund estimated these amounts within the financial statements since the information is not available from the REITs until after the Fund's fiscal year-end. At June 30, 2012, the Fund estimated these amounts for the period January 1, 2012 to June 30, 2012 within the financial statements since the 2012 information is not available from the REITs until after the Fund's fiscal period. For the year ended December 31, 2011, the character of distributions paid to shareholders disclosed within the Statements of Changes in Net Assets is based on estimates made at the time. All estimates are based upon REIT information sources available to the Fund together with actual IRS Forms 1099DIV received to date. Based on past experience, it is possible that a portion of the Fund's distributions during the current fiscal year 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 year-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 1099DIV.
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 of the investment companies 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.
15
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, 2012, the impact of this arrangement was a reduction of expenses of $15.
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. Accordingly, for the six months ended June 30, 2012, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.55% of the Fund's average daily net assets.
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 may be 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,
16
brokerage commissions, extraordinary expenses, transaction costs and dividend expense on short sales, if any) ("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, 2012 | |
| Class I | | | 1.50 | % | | 12/31/15 | | $ | — | | |
| Class S | | | 1.25 | % | | 12/31/20 | | | 17,928 | | |
(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 in place at the time the fees and expenses were foregone or reimbursed, 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, 2012, there was no repayment to Management under its contractual expense limitation. At June 30, 2012, the Fund's Class I shares had no contingent liability to Management under its contractual expense limitation. At June 30, 2012, the Fund's Class S shares contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | | | |
| | | 2012 | | 2013 | | 2014 | | 2015 | | Total | |
| Class S | | $ | 32,214 | | | $ | 31,454 | | | $ | 41,438 | | | $ | 17,928 | | | $ | 123,034 | | |
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")). NBSH Acquisition, LLC ("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 55% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 45% of such common units. Pursuant to agreements among NBG, NBSH and the LBHI Parties, NBG is entitled to acquire the remaining common units not owned by NBSH through a process that is expected to end in 2017. In April 2012, NBG committed to and began payments for equity purchases from the LBHI parties, which are expected to raise employee ownership to approximately 64% by year end.
Note C—Securities Transactions:
During the six months ended June 30, 2012, there were purchase and sale transactions (excluding short-term securities) of $22,136,758 and $28,479,370, respectively.
During the six months ended June 30, 2012, no brokerage commissions on securities transactions were paid to affiliated brokers.
17
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2012 and for the year ended December 31, 2011 was as follows:
For the Six Months Ended June 30, 2012
| | | Shares Sold | | Shares Issued on Reinvestment of Dividends and Distributions | | Shares Redeemed | | Total | |
| Class I | | | 129,447 | | | | — | | | | (587,730 | ) | | | (458,283 | ) | |
| Class S | | | 123,431 | | | | — | | | | (550,880 | ) | | | (427,449 | ) | |
For the Year Ended December 31, 2011
| | | Shares Sold | | Shares Issued on Reinvestment of Dividends and Distributions | | Shares Redeemed | | Total | |
| Class I | | | 632,083 | | | | 36,296 | | | | (4,520,876 | ) | | | (3,852,497 | ) | |
| Class S | | | 736,152 | | | | 15,821 | | | | (941,055 | ) | | | (189,082 | ) | |
Note E—Line of Credit:
At June 30, 2012, 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 0.10% 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, 2012. During the six months ended June 30, 2012, the Fund did not utilize this line of credit.
Note F—Recent Accounting Pronouncement:
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements.
Note G—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 Intrinsic Value Portfolio
The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. Per share amounts that round to less than $.01 or $(.01) per share are presented as $.00 or $(.00), respectively.
| Class I | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 14.26 | | | $ | 15.36 | | | $ | 12.26 | | | $ | 8.60 | | | $ | 16.23 | | | $ | 16.21 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .07 | | | | .06 | | | | .07 | | | | .07 | | | | .10 | | | | .17 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .93 | | | | (1.06 | ) | | | 3.13 | | | | 3.93 | | | | (7.53 | ) | | | .39 | | |
| Total From Investment Operations | | | 1.00 | | | | (1.00 | ) | | | 3.20 | | | | 4.00 | | | | (7.43 | ) | | | .56 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.10 | ) | | | (.10 | ) | | | (.18 | ) | | | (.17 | ) | | | (.08 | ) | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | (.16 | ) | | | (.03 | ) | | | (.46 | ) | |
| Total Distributions | | | — | | | | (.10 | ) | | | (.10 | ) | | | (.34 | ) | | | (.20 | ) | | | (.54 | ) | |
| Net Asset Value, End of Period | | $ | 15.26 | | | $ | 14.26 | | | $ | 15.36 | | | $ | 12.26 | | | $ | 8.60 | | | $ | 16.23 | | |
Total Return†† | | | 7.01 | %** | | | (6.50 | )% | | | 26.18 | % | | | 46.56 | % | | | (45.82 | )% | | | 3.30 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 67.9 | | | $ | 70.0 | | | $ | 134.6 | | | $ | 86.1 | | | $ | 74.8 | | | $ | 217.3 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.07 | %* | | | 1.07 | % | | | 1.06 | % | | | 1.06 | % | | | .96 | % | | | .93 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.07 | %* | | | 1.07 | % | | | 1.06 | % | | | 1.06 | % | | | .96 | % | | | .92 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .96 | %* | | | .42 | % | | | .54 | % | | | .67 | % | | | .76 | % | | | 1.03 | % | |
| Portfolio Turnover Rate | | | 18 | %** | | | 95 | % | | | 39 | % | | | 51 | % | | | 66 | % | | | 58 | % | |
See Notes to Financial Highlights
19
Financial Highlights (cont'd)
| Class S | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 15.41 | | | $ | 16.59 | | | $ | 13.21 | | | $ | 9.22 | | | $ | 17.37 | | | $ | 17.35 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .06 | | | | .05 | | | | .04 | | | | .06 | | | | .08 | | | | .14 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 1.01 | | | | (1.16 | ) | | | 3.39 | | | | 4.20 | | | | (8.06 | ) | | | .41 | | |
| Total From Investment Operations | | | 1.07 | | | | (1.11 | ) | | | 3.43 | | | | 4.26 | | | | (7.98 | ) | | | .55 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.07 | ) | | | (.05 | ) | | | (.11 | ) | | | (.14 | ) | | | (.07 | ) | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | (.16 | ) | | | (.03 | ) | | | (.46 | ) | |
| Total Distributions | | | — | | | | (.07 | ) | | | (.05 | ) | | | (.27 | ) | | | (.17 | ) | | | (.53 | ) | |
| Net Asset Value, End of Period | | $ | 16.48 | | | $ | 15.41 | | | $ | 16.59 | | | $ | 13.21 | | | $ | 9.22 | | | $ | 17.37 | | |
Total Return†† | | | 6.94 | %** | | | (6.70 | )% | | | 25.99 | % | | | 46.16 | % | | | (45.95 | )% | | | 3.05 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 52.0 | | | $ | 55.2 | | | $ | 62.5 | | | $ | 57.8 | | | $ | 119.7 | | | $ | 151.3 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.32 | %* | | | 1.32 | % | | | 1.30 | % | | | 1.29 | % | | | 1.22 | % | | | 1.18 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.25 | %* | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.22 | % | | | 1.18 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .77 | %* | | | .32 | % | | | .30 | % | | | .61 | % | | | .58 | % | | | .80 | % | |
| Portfolio Turnover Rate | | | 18 | %** | | | 95 | % | | | 39 | % | | | 51 | % | | | 66 | % | | | 58 | % | |
See Notes to Financial Highlights
20
Notes to Financial Highlights Mid Cap Intrinsic Value 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 indicate 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 class actions proceeds listed in Note A-4 had no impact on total return.
# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.
‡ 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. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, the annualized ratios of net expenses to average daily net assets would have been:
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| Mid Cap Intrinsic Value Portfolio Class I | | | 1.07 | % | | | 1.07 | % | | | 1.06 | % | | | 1.06 | % | | | .97 | % | | | .93 | % | |
| Mid Cap Intrinsic Value Portfolio Class S | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.23 | % | | | 1.19 | % | |
* 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, 2012
B0374 08/12
Short Duration Bond Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Short Duration Bond Portfolio Class I posted a 2.69% return for the six months ended June 30, 2012 and outperformed its benchmark, the Barclays 1-3 Year U.S. Government/Credit Index, which returned 0.58% for the same period.
There was a significant shift in investor sentiment during the six-month reporting period. Investors who assumed greater risk were generally rewarded during the first half of the period. While the global financial markets in 2011 were often driven by macro concerns and bouts of extreme risk aversion, investor risk appetite was typically robust over the first three months of 2012. Triggering the change was overall positive economic data. In addition, fears of contagion from the European sovereign debt crisis were put on the back burner for the time being.
Risk aversion was then elevated during much of the second half of the reporting period. In particular, investor sentiment was negative in April and May, given renewed fears of contagion from Europe, signs that U.S. economic growth was decelerating and concerns that China's economy may experience a hard landing. Risk appetite then returned in June due to some progress in addressing the European debt crisis and expectations that the Federal Reserve Board may take additional actions to support the economy. All told, non-Treasuries generated positive absolute returns during the six-month period and typically outperformed equal-duration Treasuries.
Throughout the reporting period, the Portfolio maintained an overweight, relative to the benchmark, to non-Treasuries. While this was detrimental during periods of increased risk aversion, overall it was positive for performance. In particular, the Portfolio's allocations to non-agency mortgage-backed securities (MBS), commercial mortgage-backed securities and investment grade corporate bonds were rewarded. Demand for these sectors was generally solid as investors looked to generate incremental yield. In addition, our defensive duration posture was a positive, as short-term rates moved higher during the six-month period. There were no meaningful detractors from performance during the reporting period.
A number of adjustments were made to the Portfolio during the reporting period. For our investment grade corporate bond allocation, we participated in the new issue market and emphasized higher-quality industrial securities. Within the investment grade corporate bond sector, we pared our exposure to some higher beta (risk) holdings to reduce the Portfolio's overall risk exposure. We added to the Portfolio's Treasury exposure. Elsewhere, our allocation to agency Federal Deposit Insurance Corporation (FDIC) insured paper was eliminated as these short-term instruments matured.
Treasury futures were used during a portion of the period to assist in managing our duration positioning. We closed this position in February 2012 and it did not have a meaningful impact on performance.
Despite recent deceleration in economic data, we feel the U.S. economy has enough momentum to continue growing. While the pace of the expansion may be disappointing, we believe that growth in the U.S. will continue to exceed most other developed countries. Given still elevated unemployment and potential contagion from Europe, we anticipate the Fed will be true to its word and provide further policy accommodation if necessary.
Looking at the fixed income market, periods of volatility are likely during the second half of the year. However, given our anticipation of ongoing economic growth and benign inflation, our current view is that demand for the spread sectors will generally remain solid as investors search for yield in an extremely low interest rate environment.
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 portfolio composition, industries and holdings of the Portfolio are subject to change.
1
Short Duration Bond Portfolio
PORTFOLIO BY TYPE OF SECURITY
| (as a % of Total Net Assets) | |
| Asset-Backed Securities | | | 13.4 | % | |
| Corporate Debt Securities | | | 37.5 | | |
| Mortgage-Backed Securities | | | 35.3 | | |
| U.S. Treasury Securities | | | 12.2 | | |
| Short-Term Investments | | | 2.6 | | |
Liabilities, less cash, receivables and other assets | | | (1.0 | ) | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2012 | |
| | | Date | | 06/30/2012 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund1 | |
Short Duration Bond Portfolio Class I | | | 09/10/1984 | | | | 2.69 | % | | | 1.80 | % | | | 1.78 | % | | | 2.30 | % | | | 5.54 | % | |
Barclays 1-3 Year U.S. Government/ Credit Index2 | | | | | | | 0.58 | % | | | 1.12 | % | | | 3.67 | % | | | 3.43 | % | | | 6.26 | % | |
The performance data quoted represent past performance and do not indicate future results. 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.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares. The results do 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.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2011 was 0.82% for Class I shares (before expense reimbursements and/or fee waivers, if any).
2
Endnotes
1 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.
2 The Barclays 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, expenses or tax consequences of investing in the individual securities that they track, and individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions. The Portfolio may invest in securities not included in a described index and/or may not invest in all securities included in a described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not Management'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, Management 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) the investments for one or more other registered funds that have names, investment objectives, and investment styles similar to those of the Portfolio. You should be aware that the Portfolio is likely to differ from the other mutual fund(s) 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 fund(s).
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.
© 2012 Neuberger Berman Management LLC distributor. All rights reserved.
3
Information About Your Fund's Expenses (Unaudited)
As a Fund shareholder, you incur two types of costs: (1) transaction costs such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and compare these costs with the ongoing costs of investing in other mutual funds.
This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2012 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 and 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 6/30/12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SHORT DURATION BOND PORTFOLIO
| Actual | | Beginning Account Value 1/1/12 | | Ending Account Value 6/30/12 | | Expenses Paid During the Period* 1/1/12 – 6/30/12 | |
| Class I | | $ | 1,000.00 | | | $ | 1,026.90 | | | $ | 4.03 | | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,020.89 | | | $ | 4.02 | | |
* Expenses are equal to the annualized expense ratio of .80%, multiplied by the average account value over the period, multiplied by 182/366 (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 366.
4
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 (12.2%) | | | |
| $ | 6,875,000 | | | U.S. Treasury Notes, 0.38%, due 8/31/12 | | $ | 6,877,956 | | |
| | 17,180,000 | | | U.S. Treasury Notes, 2.13%, due 11/30/14 | | | 17,903,433 | | |
| | 4,990,000 | | | U.S. Treasury Notes, 1.25%, due 8/31/15 | | | 5,114,361 | | |
| | | | | Total U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (Cost $29,890,192) | | | 29,895,750 | | |
| Mortgage-Backed Securities (35.3%) | | | |
| Adjustable Alt-B Mixed Balance (0.4%) | | | |
| | 1,159,470 | | | Lehman XS Trust, Floating Rate, Ser. 2005-1, Class 2A1, 1.75%, due 7/25/35 | | | 929,085 | µ | |
| Adjustable Jumbo Balance (1.9%) | | | |
| | 3,257,046 | | | GMAC Mortgage Corp. Loan Trust, Ser. 2006-AR1, Class 1A1, 3.09%, due 4/19/36 | | | 2,239,874 | µ | |
| | 2,531,366 | | | Merrill Lynch Mortgage Investors Trust, Ser. 2005-A1, Class 2A1, 2.55%, due 12/25/34 | | | 2,519,213 | µ | |
| | | | 4,759,087 | | |
| Adjustable Mixed Balance (2.3%) | | | |
| | 3,144,024 | | | Countrywide Home Loan Mortgage Pass-Through Trust, Ser. 2006-HYB5, Class 2A1, 2.87%, due 9/20/36 | | | 1,561,637 | µ | |
| | 2,016,229 | | | Credit Suisse First Boston Mortgage Securities Corp., Ser. 2004-AR4, Class 2A1, 3.02%, due 5/25/34 | | | 1,712,584 | µ | |
| | 2,568,753 | | | First Horizon Mortgage Pass-Through Trust, Ser. 2005-AR5, Class 2A1, 2.62%, due 11/25/35 | | | 1,909,572 | µ | |
| | 518,516 | | | Harborview Mortgage Loan Trust, Ser. 2004-4, Class 3A, 1.36%, due 6/19/34 | | | 428,294 | µ | |
| | | | 5,612,087 | | |
| Commercial Mortgage-Backed (20.6%) | | | |
| | 5,736,164 | | | Bear Stearns Commercial Mortgage Securities, Inc., Ser. 2005-PWR8, Class AAB, 4.58%, due 6/11/41 | | | 5,803,948 | | |
| | 2,449,286 | | | Citigroup Commercial Mortgage Trust, Ser. 2006-C4, Class A2, 5.73%, due 3/15/49 | | | 2,508,862 | µ | |
| | 569,694 | | | Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser. 2006-CD2, Class AAB, 5.33%, due 1/15/46 | | | 583,730 | µ | |
| | 4,650,000 | | | Commercial Mortgage Pass-Through Certificates, Ser. 2003-LB1A, Class C, 4.23%, due 6/10/38 | | | 4,671,771 | | |
| | 2,496,934 | | | GMAC Commercial Mortgage Securities, Inc., Ser. 2004-C3, Class AAB, 4.70%, due 12/10/41 | | | 2,579,682 | | |
| | 4,451,100 | | | JP Morgan Chase Commercial Mortgage Securities Corp., Ser. 2011-C3, Class A1, 1.87%, due 2/15/46 | | | 4,490,733 | ñ | |
| | 4,225,000 | | | LB-UBS Commercial Mortgage Trust, Ser. 2003-C7, Class C, 5.02%, due 7/15/37 | | | 4,388,001 | µ | |
| | 2,648,895 | | | Morgan Stanley Capital I, Ser. 2011-C1, Class A1, 2.60%, due 9/15/47 | | | 2,715,681 | ñ | |
| | 4,860,235 | | | Morgan Stanley Capital I, Ser. 2011-C3, Class A1, 2.18%, due 7/15/49 | | | 4,977,503 | | |
| | 1,999,000 | | | Prudential Commercial Mortgage Trust, Ser. 2003-PWR1, Class A2, 4.49%, due 2/11/36 | | | 2,031,482 | | |
| | 7,250,000 | | | Wachovia Bank Commercial Mortgage Trust, Ser. 2003-C6, Class D, 5.13%, due 8/15/35 | | | 7,445,025 | | |
| | 1,151,298 | | | Wachovia Bank Commercial Mortgage Trust, Ser. 2003-C7, Class A1, 4.24%, due 10/15/35 | | | 1,159,533 | ñ | |
| | 4,190,224 | | | Wachovia Bank Commercial Mortgage Trust, Ser. 2005-C22, Class A3, 5.29%, due 12/15/44 | | | 4,195,026 | µ | |
| | 2,967,288 | | | WF-RBS Commercial Mortgage Trust, Ser. 2011-C2, Class A1, 2.50%, due 2/15/44 | | | 3,029,311 | ñ | |
| | | | 50,580,288 | | |
| Mortgage-Backed Non-Agency (1.9%) | | | |
| | 1,080,400 | | | Countrywide Home Loans, Ser. 2005-R2, Class 2A4, 8.50%, due 6/25/35 | | | 1,117,938 | ñ | |
| | 2,771,164 | | | GSMPS Mortgage Loan Trust, Ser. 2005-RP2, Class 1A4, 8.50%, due 3/25/35 | | | 2,886,547 | ñ | |
| | 565,434 | | | GSMPS Mortgage Loan Trust, Ser. 2005-RP3, Class 1A4, 8.50%, due 9/25/35 | | | 606,236 | ñ | |
| | | | 4,610,721 | | |
See Notes to Schedule of Investments
5
| PRINCIPAL AMOUNT | | | | VALUE† | |
| Fannie Mae (5.7%) | | | |
| $ | 757,441 | | | Fannie Mae Grantor Trust, Ser. 2003-T4, Class 1A, 0.47%, due 9/26/33 | | $ | 746,757 | µ | |
| | 6,160,169 | | | Pass-Through Certificates, 5.00%, due 10/1/35 | | | 6,699,288 | | |
| | 6,135,018 | | | Pass-Through Certificates, 4.50%, due 5/1/41 | | | 6,602,846 | | |
| | | | 14,048,891 | | |
| Freddie Mac (2.5%) | | | |
| | 9,077 | | | Pass-Through Certificates, 10.00%, due 4/1/20 | | | 9,107 | | |
| | 5,619,799 | | | Pass-Through Certificates, 4.50%, due 11/1/39 | | | 6,004,434 | | |
| | | | 6,013,541 | | |
| | | | | Total Mortgage-Backed Securities (Cost $90,497,307) | | | 86,553,700 | | |
| Corporate Debt Securities (37.5%) | | | |
| Aerospace & Defense (0.2%) | | | |
| | 445,000 | | | United Technologies Corp., Senior Unsecured Notes, 1.20%, due 6/1/15 | | | 450,178 | | |
| Auto Manufacturers (1.7%) | | | |
| | 2,215,000 | | | Daimler Finance N.A. LLC, Guaranteed Notes, 1.65%, due 4/10/15 | | | 2,223,705 | ñ | |
| | 1,980,000 | | | Toyota Motor Credit Corp., Senior Unsecured Medium-Term Notes, 1.00%, due 2/17/15 | | | 1,982,344 | | |
| | | | 4,206,049 | | |
| Banks (11.4%) | | | |
| | 3,130,000 | | | Citigroup, Inc., Senior Unsecured Notes, 2.65%, due 3/2/15 | | | 3,129,618 | | |
| | 4,250,000 | | | Goldman Sachs Group, Inc., Senior Unsecured Notes, 5.25%, due 10/15/13 | | | 4,419,643 | | |
| | 6,300,000 | | | JPMorgan Chase & Co., Unsecured Medium-Term Notes, 1.88%, due 3/20/15 | | | 6,295,130 | | |
| | 2,975,000 | | | Morgan Stanley, Senior Unsecured Global Medium-Term Notes, 6.00%, due 5/13/14 | | | 3,083,671 | | |
| | 4,875,000 | | | Wells Fargo & Co., Senior Notes, 1.50%, due 7/1/15 | | | 4,878,686 | | |
| | 6,000,000 | | | Westpac Banking Corp., Senior Unsecured Notes, 1.85%, due 12/9/13 | | | 6,059,142 | | |
| | | | 27,865,890 | | |
| Beverages (1.6%) | | | |
| | 3,350,000 | | | Anheuser-Busch Cos., LLC, Guaranteed Unsecured Notes, 4.95%, due 1/15/14 | | | 3,531,952 | | |
| | 475,000 | | | Anheuser-Busch Inbev Worldwide, Inc., Guaranteed Notes, 1.50%, due 7/14/14 | | | 481,512 | | |
| | | | 4,013,464 | | |
| Commercial Services (0.7%) | | | |
| | 1,760,000 | | | ERAC USA Finance Co., Guaranteed Notes, 2.25%, due 1/10/14 | | | 1,770,565 | ñ | |
| Computers (2.1%) | | | |
| | 5,050,000 | | | IBM Corp., Senior Unsecured Notes, 0.88%, due 10/31/14 | | | 5,074,245 | | |
| Diversified Financial Services (8.4%) | | | |
| | 4,240,000 | | | American Express Credit Corp., Senior Unsecured Medium-Term Notes, Ser. C, 5.88%, due 5/2/13 | | | 4,416,766 | | |
| | 2,165,000 | | | Caterpillar Financial Services Corp., Senior Unsecured Notes, 1.65%, due 4/1/14 | | | 2,199,874 | | |
| | 875,000 | | | Caterpillar Financial Services Corp., Senior Unsecured Medium-Term Notes, 1.13%, due 12/15/14 | | | 882,592 | | |
| | 6,500,000 | | | General Electric Capital Corp., Senior Unsecured Notes, 5.90%, due 5/13/14 | | | 7,060,592 | | |
| | 1,900,000 | | | John Deere Capital Corp., Senior Unsecured Notes, 0.88%, due 4/17/15 | | | 1,902,134 | | |
| | 4,075,000 | | | Merrill Lynch & Co., Inc., Senior Unsecured Medium-Term Notes, Ser. C, 6.05%, due 8/15/12 | | | 4,097,412 | | |
| | | | 20,559,370 | | |
| Food (0.3%) | | | |
| | 660,000 | | | Kraft Foods Group, Inc., Guaranteed Notes, 1.63%, due 6/4/15 | | | 666,982 | ñ | |
See Notes to Schedule of Investments
6
| PRINCIPAL AMOUNT | | | | VALUE† | |
| Insurance (0.5%) | | | |
| $ | 1,310,000 | | | Berkshire Hathaway Finance Corp., Guaranteed Notes, 1.50%, due 1/10/14 | | $ | 1,328,816 | | |
| Media (4.6%) | | | |
| | 3,250,000 | | | DIRECTV Holdings LLC, Guaranteed Notes, 4.75%, due 10/1/14 | | | 3,488,641 | | |
| | 3,430,000 | | | NBC Universal Media LLC, Senior Unsecured Notes, 2.10%, due 4/1/14 | | | 3,490,920 | | |
| | 4,240,000 | | | Time Warner Cable, Inc., Guaranteed Notes, 5.40%, due 7/2/12 | | | 4,240,000 | | |
| | | | 11,219,561 | | |
| Mining (1.3%) | | | |
| | 1,280,000 | | | BHP Billiton Finance USA Ltd., Guaranteed Notes, 1.13%, due 11/21/14 | | | 1,287,480 | | |
| | 1,995,000 | | | Freeport-McMoRan Copper & Gold, Inc., Senior Unsecured Notes, 1.40%, due 2/13/15 | | | 1,988,189 | | |
| | | | 3,275,669 | | |
| Pharmaceuticals (0.6%) | | | |
| | 1,555,000 | | | Express Scripts Holding Co., Guaranteed Notes, 2.10%, due 2/12/15 | | | 1,570,203 | ñ | |
| Pipelines (0.4%) | | | |
| | 875,000 | | | Trans-Canada PipeLines Ltd., Senior Unsecured Notes, 0.88%, due 3/2/15 | | | 873,417 | | |
| Retail (1.4%) | | | |
| | 3,100,000 | | | Home Depot, Inc., Senior Unsecured Notes, 5.25%, due 12/16/13 | | | 3,306,646 | | |
| Telecommunications (2.3%) | | | |
| | 2,135,000 | | | AT&T, Inc., Senior Unsecured Notes, 0.88%, due 2/13/15 | | | 2,133,405 | | |
| | 3,380,000 | | | Verizon Communications, Inc., Senior Unsecured Notes, 1.95%, due 3/28/14 | | | 3,454,536 | | |
| | | | 5,587,941 | | |
| | | | | Total Corporate Debt Securities (Cost $90,950,688) | | | 91,768,996 | | |
| Asset-Backed Securities (13.4%) | | | |
| | 1,762,659 | | | ACE Securities Corp. Home Equity Loan Trust, Ser. 2006-OP1, Class A2C, 0.40%, due 4/25/36 | | | 1,175,017 | µ | |
| | 2,310,739 | | | ACE Securities Corp. Home Equity Loan Trust, Ser. 2006-ASP5, Class A2B, 0.38%, due 10/25/36 | | | 776,711 | µ | |
| | 2,599,915 | | | Ally Auto Receivables Trust, Ser. 2010-4, Class A3, 0.91%, due 11/17/14 | | | 2,606,114 | | |
| | 3,300,000 | | | Ally Auto Receivables Trust, Ser. 2011-1, Class A3, 1.38%, due 1/15/15 | | | 3,321,137 | | |
| | 1,753,000 | | | Bear Stearns Asset Backed Securities Trust, Ser. 2006-HE9, Class 1A2, 0.40%, due 11/25/36 | | | 779,978 | µ | |
| | 1,870,396 | | | Carrington Mortgage Loan Trust, Ser. 2006-OPT1, Class A3, 0.43%, due 2/25/36 | | | 1,647,736 | µ | |
| | 4,000,000 | | | Carrington Mortgage Loan Trust, Ser. 2007-FRE1, Class A3, 0.51%, due 2/25/37 | | | 1,536,016 | µ | |
| | 1,500,618 | | | Countrywide Asset-Backed Certificates Trust, Ser. 2006-3, Class 2A2, 0.43%, due 6/25/36 | | | 1,374,565 | µ | |
| | 946,450 | | | Countrywide Asset-Backed Certificates Trust, Ser. 2006-5, Class 2A2, 0.43%, due 8/25/36 | | | 866,948 | µ | |
| | 7,903,586 | | | Ford Credit Auto Owner Trust, Ser. 2011-A, Class A3, 0.97%, due 1/15/15 | | | 7,925,329 | | |
| | 5,885,000 | | | Hyundai Auto Receivables Trust, Ser. 2011-A, Class A3, 1.16%, due 4/15/15 | | | 5,915,702 | | |
| | 2,042,761 | | | Knollwood CDO Ltd., Ser. 2006-2A, Class A2J, 0.89%, due 7/13/46 | | | 0 | aµ* | |
| | 1,900,000 | | | Mercedes-Benz Auto Receivables Trust, Ser. 2011-1, Class A3, 0.85%, due 3/16/15 | | | 1,905,668 | | |
| | 4,332,707 | | | Soundview Home Equity Loan Trust, Ser. 2006-OPT3, Class 2A3, 0.42%, due 6/25/36 | | | 3,089,190 | µ | |
| | | | | Total Asset-Backed Securities (Cost $40,965,720) | | | 32,920,111 | | |
| NUMBER OF SHARES | | | | | |
| Short-Term Investments (2.6%) | | | |
| | 6,477,079 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $6,477,079) | | | 6,477,079 | | |
| | | | | Total Investments (101.0%) (Cost $258,780,986) | | | 247,615,636 | ## | |
| | | | | Liabilities, less cash, receivables and other assets [(1.0%)] | | | (2,489,237 | ) | |
| | | | | Total Net Assets (100.0%) | | $ | 245,126,399 | | |
See Notes to Schedule of Investments
7
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.
Financial futures contracts are determined by obtaining valuations from independent pricing services at the settlement price at the market close (Level 1 inputs).
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 (Level 2 inputs).
See Notes to Financial Statements
8
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, 2012:
| 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 | | $ | — | | | $ | 29,895,750 | | | $ | — | | | $ | 29,895,750 | | |
| Mortgage-Backed Securities^ | | | — | | | | 86,553,700 | | | | — | | | | 86,553,700 | | |
| Corporate Debt Securities^ | | | — | | | | 91,768,996 | | | | — | | | | 91,768,996 | | |
| Asset-Backed Securities | | | — | | | | 32,920,111 | | | | 0 | | | | 32,920,111 | | |
| Short-Term Investments | | | — | | | | 6,477,079 | | | | — | | | | 6,477,079 | | |
| Total Investments | | $ | — | | | $ | 247,615,636 | | | $ | 0 | | | $ | 247,615,636 | | |
^ 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 1/1/12 | | Accrued discounts/ (premiums) | | Realized gain/loss | | Change in unrealized appreciation/ (depreciation) | | Purchases | | Sales | | Transfers in to Level 3 | | Transfers out of Level 3 | | Balance, as of 6/30/12 | | Net change in unrealized appreciation/ (depreciation) from investments still held as of 6/30/12 | |
Asset-Backed Securities | | $ | 0 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 0 | | | $ | — | | |
The Fund had no transfers between Levels 1 and 2 during the six months ended June 30, 2012.
## At June 30, 2012, the cost of investments for U.S. federal income tax purposes was $260,733,833. Gross unrealized appreciation of investments was $998,137 and gross unrealized depreciation of investments was $14,116,334, resulting in net unrealized depreciation of $13,118,197, based on cost for U.S. federal income tax purposes.
a 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
See Notes to Financial Statements
9
Notes to Schedule of Investments Short Duration Bond Portfolio (Unaudited) (cont'd)
Securities Act of 1933, as amended (the "1933 Act"), and have been deemed by the investment manager to be illiquid.
At June 30, 2012, these securities amounted to approximately $0 or 0.0% of net assets for the Fund.
| Restricted Security | | Acquisition Date | | Acquisition Cost | | Acquisition Cost Percentage of Net Assets as of Acquisition Date | | Value as of June 30, 2012 | | Fair Value Percentage of Net Assets as of June 30, 2012 | |
Knollwood CDO Ltd., Ser. 2006-2A, Class A2J, 0.89%, due 7/13/46 | | 9/14/07 | | $ | 1,123,518 | | | | 0.2 | % | | $ | 0 | | | | 0.0 | % | |
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, 2012 and their final maturity dates.
ñ Securities were purchased under Rule 144A of the 1933 Act or are private placements and, unless registered under the 1933 Act or exempted from registration, may only be sold to qualified institutional investors. These securities have been deemed by the investment manager to be liquid. At June 30, 2012, these securities amounted to $22,237,434 or 9.1% of net assets for the Fund.
* 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
| | | SHORT DURATION BOND PORTFOLIO | |
| | | June 30, 2012 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 247,615,636 | | |
| Interest receivable | | | 1,641,745 | | |
| Receivable for securities sold | | | 1,643,108 | | |
| Receivable for Fund shares sold | | | 126,785 | | |
| Prepaid expenses and other assets | | | 12,304 | | |
| Total Assets | | | 251,039,578 | | |
| Liabilities | |
| Payable for securities purchased | | | 3,602,390 | | |
| Payable for Fund shares redeemed | | | 2,091,359 | | |
| Payable to investment manager (Note B) | | | 50,766 | | |
| Payable to administrator (Note B) | | | 81,226 | | |
| Accrued expenses and other payables | | | 87,438 | | |
| Total Liabilities | | | 5,913,179 | | |
| Net Assets at value | | $ | 245,126,399 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 324,245,398 | | |
| Undistributed net investment income (loss) | | | 8,947,386 | | |
| Accumulated net realized gains (losses) on investments | | | (76,901,035 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | (11,165,350 | ) | |
| Net Assets at value | | $ | 245,126,399 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 22,127,083 | | |
| Net Asset Value, offering and redemption price per share | | $ | 11.08 | | |
| *Cost of Investments | | | $258,780,986 | | |
See Notes to Financial Statements
11
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | SHORT DURATION BOND PORTFOLIO | |
| | | For the Six Months Ended June 30, 2012 | |
| Investment Income: | |
| Income (Note A): | |
| Interest income—unaffiliated issuers | | $ | 2,895,422 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 312,208 | | |
| Administration fees (Note B) | | | 499,533 | | |
| Audit fees | | | 21,873 | | |
| Custodian fees (Note A) | | | 45,309 | | |
| Insurance expense | | | 6,371 | | |
| Legal fees | | | 59,029 | | |
| Shareholder reports | | | 11,713 | | |
| Trustees' fees and expenses | | | 26,746 | | |
| Miscellaneous | | | 10,304 | | |
| Total expenses | | | 993,086 | | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (19 | ) | |
| Total net expenses | | | 993,067 | | |
| Net investment income (loss) | | $ | 1,902,355 | | |
| Realized and Unrealized Gain (Loss) on Investments (Note A): | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | (2,003,423 | ) | |
| Financial futures contracts | | | (4,306 | ) | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 6,619,053 | | |
| Financial futures contracts | | | (2,109 | ) | |
| Net gain (loss) on investments | | | 4,609,215 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 6,511,570 | | |
See Notes to Financial Statements
12
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | SHORT DURATION BOND PORTFOLIO | |
| | | Six Months Ended June 30, 2012 (Unaudited) | | Year Ended December 31, 2011 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | 1,902,355 | | | $ | 4,712,102 | | |
| Net realized gain (loss) on investments | | | (2,007,729 | ) | | | (3,412,879 | ) | |
| Change in net unrealized appreciation (depreciation) of investments | | | 6,616,944 | | | | (350,022 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | 6,511,570 | | | | 949,201 | | |
| Distributions to Shareholders From (Note A): | |
| Net investment income | | | — | | | | (9,927,354 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold | | | 20,071,403 | | | | 23,227,502 | | |
| Proceeds from reinvestment of dividends and distributions | | | — | | | | 9,927,354 | | |
| Payments for shares redeemed | | | (27,021,330 | ) | | | (65,920,504 | ) | |
| Net increase (decrease) from Fund share transactions | | | (6,949,927 | ) | | | (32,765,648 | ) | |
| Net Increase (Decrease) in Net Assets | | | (438,357 | ) | | | (41,743,801 | ) | |
| Net Assets: | |
| Beginning of period | | | 245,564,756 | | | | 287,308,557 | | |
| End of period | | $ | 245,126,399 | | | $ | 245,564,756 | | |
| Undistributed net investment income (loss) at end of period | | $ | 8,947,386 | | | $ | 7,045,031 | | |
See Notes to Financial Statements
13
Notes to Financial Statements Short Duration Bond Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: Neuberger Berman Advisers Management Trust (the "Trust") is 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 1933 Act. 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 ("GAAP") 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 rate 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 2008 - 2010. As of June 30, 2012, 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 GAAP. 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.
14
As determined on December 31, 2011, 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. For the year ended December 31, 2011, the Fund recorded the following permanent reclassifications:
Paid-in Capital | | Undistributed Net Investment Income (Loss) | | Accumulated Net Realized Gains (Losses) on Investments | |
| $ | — | | | $ | 2,333,987 | | | $ | (2,333,987 | ) | |
For tax purposes, short-term gains are considered ordinary income.
The tax character of distributions paid during the years ended December 31, 2011 and December 31, 2010 was as follows:
| | | Distributions Paid From: | |
| | | Ordinary Income | | Total | |
| | | 2011 | | 2010 | | 2011 | | 2010 | |
| | | | | $ | 9,927,354 | | | $ | 16,456,190 | | | $ | 9,927,354 | | | $ | 16,456,190 | | |
As of December 31, 2011, 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 | | Other Temporary Differences | | Total | |
| $ | 7,045,031 | | | $ | (19,700,655 | ) | | $ | (72,974,945 | ) | | $ | — | | | $ | (85,630,569 | ) | |
The difference between book basis and tax basis distributable earnings is attributable primarily to timing differences of amortization of bond premium, futures contracts mark to market 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. The Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") became effective for the Fund on January 1, 2011. The Act modernizes several of the federal income and excise tax provisions related to RICs. 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 ("Post-Enactment"). Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character ("Pre-Enactment"). As determined at December 31, 2011, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| | | Pre-Enactment | |
| | | 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 | | |
| | | Post-Enactment (No Expiration Date) | |
| | | Long-Term | | Short-Term | |
| | | | | $ | 7,193,871 | | | $ | 664,432 | | |
15
Post-Enactment capital loss carryforwards must be fully used before Pre-Enactment capital loss carryforwards; therefore, under certain circumstances, Pre-Enactment capital loss carryforwards available as of the report date 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 complex or series thereof, on the basis of relative net assets, except where a more appropriate allocation of expenses to each of the investment companies 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, 2012, 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: During the six months ended June 30, 2012, the Fund entered into financial futures contracts for economic hedging purposes, including as a maturity or duration management device. There were no financial futures contracts outstanding at June 30, 2012.
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
16
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, or as needed, 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 acquisition of the underlying securities or currency, 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, 2012, the average notional value of financial futures contracts for long positions was $2,833,393.
The impact of the use of these derivative instruments on the Statement of Operations during the six months ended June 30, 2012, was as follows:
Realized Gain (Loss)
| | | Interest Rate Risk | | Statement of Operations Location | |
| Futures Contracts | | $ | (4,306 | ) | | Net realized | |
| Total Realized Gain (Loss) | | $ | (4,306 | ) | | gain (loss) on: financial futures contracts | |
Change in Appreciation (Depreciation)
| | | Interest Rate Risk | | | |
| Futures Contracts | | $ | (2,109 | ) | | Change in net unrealized | |
Total Change in Appreciation (Depreciation) | | $ | (2,109 | ) | | 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 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, 2012, the impact of this arrangement was a reduction of expenses of $19.
17
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. Accordingly, for the six months ended June 30, 2012, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.25% of the Fund's average daily net assets. 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, 2015 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, transaction costs and dividend expense on short sales, if any) ("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, 2012, no reimbursement to the Fund was required. The Fund has agreed to repay Management through December 31, 2018 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 in place at the time the fees and expenses were foregone or reimbursed, 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, 2012, there was no repayment to Management under its contractual expense limitation. At June 30, 2012, the Fund had no contingent liability to Management under its contractual expense limitation.
NBFI, as the 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")). NBSH Acquisition, LLC ("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 55% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 45% of such common units. Pursuant to agreements among NBG, NBSH and the LBHI Parties, NBG is entitled to acquire the remaining common units not owned by NBSH through a process that is expected to end in 2017. In April 2012, NBG committed to and began payments for equity purchases from the LBHI parties, which are expected to raise employee ownership to approximately 64% by year end.
18
Note C—Securities Transactions:
Cost of purchases and proceeds of sales and maturities of long-term securities (excluding financial futures contracts) for the six months ended June 30, 2012 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 | |
| $ | 52,173,755 | | | $ | 31,670,575 | | | $ | 25,879,778 | | | $ | 67,698,583 | | |
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2012 and for the year ended December 31, 2011 was as follows:
| | | For the Six Months Ended June 30, 2012 | | For the Year Ended December 31, 2011 | |
| Shares Sold | | | 1,836,906 | | | | 2,071,645 | | |
| Shares Issued on Reinvestment of Dividends and Distributions | | | — | | | | 924,335 | | |
| Shares Redeemed | | | (2,457,907 | ) | | | (5,895,200 | ) | |
| Total | | | (621,001 | ) | | | (2,899,220 | ) | |
Note E—Line of Credit:
At June 30, 2012, 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 0.10% 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, 2012. During the six months ended June 30, 2012, the Fund did not utilize this line of credit.
Note F—Recent Accounting Pronouncement:
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements.
Note G—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
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. Per share amounts that round to less than $.01 or $(.01) per share are presented as $.00 or $(.00), respectively.
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 10.79 | | | $ | 11.20 | | | $ | 11.22 | | | $ | 10.71 | | | $ | 13.00 | | | $ | 12.76 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .08 | | | | .19 | | | | .24 | | | | .43 | | | | .53 | | | | .59 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .21 | | | | (.16 | ) | | | .36 | | | | .98 | | | | (2.23 | ) | | | .02 | | |
| Total From Investment Operations | | | .29 | | | | .03 | | | | .60 | | | | 1.41 | | | | (1.70 | ) | | | .61 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.44 | ) | | | (.62 | ) | | | (.90 | ) | | | (.59 | ) | | | (.37 | ) | |
| Net Asset Value, End of Period | | $ | 11.08 | | | $ | 10.79 | | | $ | 11.20 | | | $ | 11.22 | | | $ | 10.71 | | | $ | 13.00 | | |
Total Return†† | | | 2.69 | %** | | | .29 | % | | | 5.28 | % | | | 13.33 | % | | | (13.43 | )% | | | 4.77 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 245.1 | | | $ | 245.6 | | | $ | 287.3 | | | $ | 350.0 | | | $ | 445.5 | | | $ | 623.0 | | |
Ratio of Gross Expenses to Average Net Assets# | | | .80 | %* | | | .81 | % | | | .81 | % | | | .79 | % | | | .74 | % | | | .73 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | .80 | %* | | | .81 | % | | | .81 | % | | | .79 | % | | | .74 | % | | | .73 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | 1.52 | %* | | | 1.73 | % | | | 2.07 | % | | | 3.87 | % | | | 4.35 | % | | | 4.51 | % | |
| Portfolio Turnover Rate | | | 35 | %** | | | 74 | % | | | 70 | % | | | 47 | % | | | 46 | % | | | 69 | % | |
See Notes to Financial Highlights
20
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 indicate 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.
# Represents the annualized ratios of net expenses to average daily net assets if Management had not waived a portion of the investment management fee.
‡ Calculated based on the average number of shares outstanding during each fiscal period.
§ After waiver of a portion of the investment management fee by Management. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, the annualized ratios of net expenses to average daily net assets would have been:
Six Months Ended June 30, | | Year Ended December 31, | |
| 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | .80 | % | | | .81 | % | | | .81 | % | | | .79 | % | | | .74 | % | | | .73 | % | |
* 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
Small Cap Growth Portfolio
S Class Shares
Semi-Annual Report
June 30, 2012
D0312 08/12
Small Cap Growth Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Small Cap Growth Portfolio generated an 8.49% total return for the six months ended June 30, 2012, underperforming its benchmark, the Russell 2000® Growth Index, which returned 8.81% for the period.
Fueled by macroeconomic and political headlines, the first six months of 2012 continued to be a roller-coaster ride of risk-on/risk-off investor sentiment. Our domestic "wall of worry" has been less onerous than the challenges facing other markets due to a U.S. economy that maintained its moderately paced growth and potential signs of stability in the housing market. However, politically driven economic uncertainty continued to mute corporate confidence and, as a result, the appetite for hiring, capital expenditures and M&A activity remained subdued. Despite the U.S. economy's relative stability, the markets have not been immune to the issues beyond our borders, such as the ongoing European debt saga and questions around China's growth engine, which have continued to create headline volatility and weigh on U.S. companies with meaningful foreign exposure. Despite the aforementioned headwinds and challenges, corporate earnings continued to be strong, margins were solid and guidance realistic, with a cautious tone reflecting a challenging environment.
The Supreme Court decision on the Affordable Care Act was a surprise, but we anticipate it will be mostly a non-event for our holdings. With our theme of companies that save the health care system money and focus on superior medicine and technology, we've had a fairly politically agnostic approach to health care. The market craves clarity so, from an investment standpoint, reaching an outcome on the health care spending mandate was in itself a positive as the market can now move forward and on to the next pressing issues, such as a contentious presidential election November and the looming tax cuts/fiscal cliff negotiations and deadlines.
During the reporting period, the Portfolio had sector overweight allocations relative to the benchmark in the Consumer Discretionary and Information Technology (IT) sectors and underweight allocations to the Materials and Financials sectors. Our quality-driven stylistic biases, which typically lead us to more seasoned, lower beta holdings with market capitalizations above $1 billion, proved beneficial in a mostly "risk-off" environment, as the market has been unforgiving on fundamentals. Drilling down to our holdings, positive stock selection in IT and Consumer Discretionary overcame poor selection in Energy and Materials.
Top contributors to performance included Ultimate Software Group, a provider of unified human capital management and employment software-as-a-service (SaaS) solutions, which continued to benefit from a successful up-market push to large clients and the market's interest in SaaS's offerings. In addition, Ariba, a provider of collaborative business commerce solutions, received and accepted an offer to be acquired by SAP, while Ulta Salon, an operator of specialty retail stores focused on cosmetic, hair and skin care products, continued to benefit as consumers traded down from higher-end retail options.
The market reacted positively to pharmacy benefit manager SXC Health Solutions' acquisition of Catalyst Health Solutions, while Zoll Medical, primarily a developer of cardiopulmonary resuscitation devices, received and accepted an offer to be acquired by Ashai Kasei Corporation. Detractors within Health Care were HMS Holdings, a provider of cost containment and audit services to health care payers and sponsors, such as Medicare and Medicaid, and Mako Surgical, a medical device company marketing robotic arm solutions for minimally invasive orthopedic implant procedures. The uncertainty leading up to the Supreme Court's decision on the health care spending mandate negatively impacted HMS, while Mako saw new equipment placement fall short of expectations, as hospital capital expenditures tightened.
Finally, Energy XXI, Oasis Petroleum and Rosetta Resources, all on-shore natural gas and oil exploration and production companies, were pressured by declining energy prices and softening demand. To realize the buy-out premiums, we sold Zoll Medical and Ariba and also exited our positions in Mako Surgical, Energy XXI, Oasis Petroleum, Rosetta Resources and HMS Holdings prior to the period end in favor of new ideas.
We enter the second half of 2012 overweighted in IT, Health Care, Consumer Discretionary and Consumer Staples and underweighted in Materials, Industrials, Energy and Financials. We believe innovation and unique products and services
1
can be catalysts for outperformance in a tough environment and our sector overweight positions reflect that belief. Concerns over earnings growth potential and high cyclicality has led us to our underweight positions. While we value companies that can effectively establish profitable global footprints, given the continued uncertainty around Europe and China, our current view is that we are likely to remain tilted more in favor of names that are predominantly domestically focused.
We continue to find attractive investment opportunities and remain cautiously optimistic that the U.S.'s measured and consistent economic recovery can continue with the potential for a positive finish for equities in 2012.
Sincerely,
DAVID H. BURSHTAN
PORTFOLIO MANAGER
Information about the principal risks of Investing in the Portfolio is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Portfolio are subject to change.
2
Small Cap Growth Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 17.9 | % | |
| Consumer Staples | | | 5.6 | | |
| Energy | | | 5.7 | | |
| Financials | | | 6.3 | | |
| Health Care | | | 22.8 | | |
| Industrials | | | 13.6 | | |
| Information Technology | | | 23.8 | | |
| Materials | | | 1.2 | | |
| Short-Term Investments | | | 3.1 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2012 | |
| | | Date | | 06/30/2012 | | 1 Year | | 5 Years | | Life of Fund1 | |
Small Cap Growth Portfolio Class S | | | 07/12/2002 | | | | 8.49 | % | | | –3.31 | % | | | –2.72 | % | | | 3.73 | % | |
Russell 2000® Growth Index2 | | | | | | | 8.81 | % | | | –2.71 | % | | | 1.99 | % | | | 8.65 | % | |
Russell 2000® Index2 | | | | | | | 8.53 | % | | | –2.08 | % | | | 0.54 | % | | | 8.14 | % | |
The performance data quoted represent past performance and do not indicate future results. 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.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares. The results do 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.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratio for fiscal year 2011 was 2.20% for Class S shares (before expense reimbursements and/or fee waivers, if any). This expense ratio was 1.42% after expense reimbursements and/or fee waivers.
3
Endnotes
1 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.
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 $101 million. Please note that indices do not take into account any fees, expenses or tax consequences of investing in the individual securities that they track, and that individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions. The Portfolio may invest in securities not included in a described index and/or may not invest in all securities included in a described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not Management'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, Management 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) the investments for one or more other registered funds that have names, investment objectives, and investment styles similar to those of the Portfolio. You should be aware that the Portfolio is likely to differ from the other mutual fund(s) 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 fund(s).
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 name in this piece are either service marks or registered service marks of Neuberger Berman Management LLC.
© 2012 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses (Unaudited)
As a Fund shareholder, you incur two types of costs: (1) transaction costs such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and compare these costs with the ongoing costs of investing in other mutual funds.
This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2012 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 and 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 6/30/12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SMALL CAP GROWTH PORTFOLIO
| Actual | | Beginning Account Value 1/1/12 | | Ending Account Value 6/30/12 | | Expenses Paid During the Period* 1/1/12 – 6/30/12 | |
| Class S | | $ | 1,000.00 | | | $ | 1,084.90 | | | $ | 7.26 | | |
| Hypothetical (5% annual return before expenses)** | |
| Class S | | $ | 1,000.00 | | | $ | 1,017.90 | | | $ | 7.02 | | |
* Expenses are equal to the annualized expense ratio of 1.40%, multiplied by the average account value over the period, multiplied by 182/366 (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 366.
5
Schedule of Investments Small Cap Growth Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (99.9%) | | | |
| Aerospace & Defense (1.0%) | | | |
| | 3,953 | | | HEICO Corp. | | $ | 156,223 | | |
| Air Freight & Logistics (2.8%) | | | |
| | 13,200 | | | Echo Global Logistics, Inc. | | | 251,592 | * | |
| | 5,200 | | | Hub Group, Inc. Class A | | | 188,240 | * | |
| | | | 439,832 | | |
| Biotechnology (2.4%) | | | |
| | 5,000 | | | Cepheid, Inc. | | | 223,750 | * | |
| | 3,900 | | | Cubist Pharmaceuticals, Inc. | | | 147,849 | * | |
| | | | 371,599 | | |
| Chemicals (1.3%) | | | |
| | 7,500 | | | American Vanguard Corp. | | | 199,425 | | |
| Commercial Banks (4.2%) | | | |
| | 5,400 | | | Prosperity Bancshares, Inc. | | | 226,962 | | |
| | 3,100 | | | Signature Bank | | | 189,007 | * | |
| | 5,900 | | | Texas Capital Bancshares, Inc. | | | 238,301 | * | |
| | | | 654,270 | | |
| Commercial Services & Supplies (4.7%) | | | |
| | 32,400 | | | ACCO Brands Corp. | | | 335,016 | * | |
| | 7,900 | | | Healthcare Services Group, Inc. | | | 153,102 | | |
| | 18,500 | | | InnerWorkings, Inc. | | | 250,305 | * | |
| | | | 738,423 | | |
| Communications Equipment (1.3%) | | | |
| | 8,300 | | | Procera Networks, Inc. | | | 201,773 | * | |
| Distributors (1.0%) | | | |
| | 4,000 | | | Pool Corp. | | | 161,840 | | |
| Diversified Consumer Services (1.2%) | | | |
| | 4,000 | | | Steiner Leisure Ltd. | | | 185,640 | * | |
| Electrical Equipment (1.6%) | | | |
| | 4,100 | | | Regal-Beloit Corp. | | | 255,266 | | |
| Energy Equipment & Services (3.5%) | | | |
| | 2,700 | | | Dril-Quip, Inc. | | | 177,093 | * | |
| | 7,900 | | | Forum Energy Technologies, Inc. | | | 155,551 | * | |
| | 5,300 | | | Hornbeck Offshore Services, Inc. | | | 205,534 | * | |
| | | | 538,178 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Food & Staples Retailing (3.7%) | | | |
| | 4,600 | | | Fresh Market, Inc. | | $ | 246,698 | * | |
| | 2,200 | | | PriceSmart, Inc. | | | 148,522 | | |
| | 3,300 | | | United Natural Foods, Inc. | | | 181,038 | * | |
| | | | 576,258 | | |
| Food Products (2.1%) | | | |
| | 2,800 | | | Hain Celestial Group, Inc. | | | 154,112 | * | |
| | 17,600 | | | Smart Balance, Inc. | | | 165,264 | * | |
| | | | 319,376 | | |
| Health Care Equipment & Supplies (10.7%) | | | |
| | 4,400 | | | Abaxis, Inc. | | | 162,800 | * | |
| | 9,700 | | | ABIOMED, Inc. | | | 221,354 | * | |
| | 7,100 | | | Align Technology, Inc. | | | 237,566 | * | |
| | 4,800 | | | Cyberonics, Inc. | | | 215,712 | * | |
| | 3,400 | | | ICU Medical, Inc. | | | 181,492 | * | |
| | 16,500 | | | NuVasive, Inc. | | | 418,440 | * | |
| | 7,900 | | | Volcano Corp. | | | 226,335 | * | |
| | | | 1,663,699 | | |
| Health Care Providers & Services (6.5%) | | | |
| | 2,100 | | | Air Methods Corp. | | | 206,325 | * | |
| | 5,300 | | | IPC The Hospitalist Co., Inc. | | | 240,196 | * | |
| | 2,300 | | | MWI Veterinary Supply, Inc. | | | 236,371 | * | |
| | 7,500 | | | U.S. Physical Therapy, Inc. | | | 190,725 | | |
| | 6,500 | | | VCA Antech, Inc. | | | 142,870 | * | |
| | | | 1,016,487 | | |
| Health Care Technology (1.2%) | | | |
| | 1,800 | | | SXC Health Solutions Corp. | | | 178,578 | * | |
| Hotels, Restaurants & Leisure (6.1%) | | | |
| | 4,300 | | | Bally Technologies, Inc. | | | 200,638 | * | |
| | 5,000 | | | BJ's Restaurants, Inc. | | | 190,000 | * | |
| | 25,900 | | | Orient-Express Hotels Ltd. Class A | | | 216,783 | * | |
| | 16,600 | | | Sonic Corp. | | | 166,332 | * | |
| | 9,800 | | | Texas Roadhouse, Inc. | | | 180,614 | | |
| | | | 954,367 | | |
| Internet & Catalog Retail (1.6%) | | | |
| | 6,300 | | | HSN, Inc. | | | 254,205 | | |
| Internet Software & Services (3.9%) | | | |
| | 2,400 | | | CoStar Group, Inc. | | | 194,880 | * | |
| | 6,700 | | | DealerTrack Holdings, Inc. | | | 201,737 | * | |
| | 11,300 | | | LivePerson, Inc. | | | 215,378 | * | |
| | | | 611,995 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| IT Services (4.8%) | | | |
| | 8,400 | | | Cardtronics, Inc. | | $ | 253,764 | * | |
| | 14,600 | | | CoreLogic, Inc. | | | 267,326 | * | |
| | 12,200 | | | InterXion Holding NV | | | 220,942 | * | |
| | | | 742,032 | | |
| Machinery (1.2%) | | | |
| | 6,900 | | | Actuant Corp. Class A | | | 187,404 | | |
| Oil, Gas & Consumable Fuels (2.4%) | | | |
| | 8,600 | | | Carrizo Oil & Gas, Inc. | | | 202,186 | * | |
| | 7,700 | | | Ultra Petroleum Corp. | | | 177,639 | * | |
| | | | 379,825 | | |
| Pharmaceuticals (2.8%) | | | |
| | 13,100 | | | Akorn, Inc. | | | 206,587 | * | |
| | 4,400 | | | Questcor Pharmaceuticals, Inc. | | | 234,256 | * | |
| | | | 440,843 | | |
Real Estate Management & Development (2.3%) | | | |
| | 2,000 | | | Jones Lang LaSalle, Inc. | | | 140,740 | | |
| | 5,700 | | | Zillow, Inc. Class A | | | 220,191 | * | |
| | | | 360,931 | | |
| Road & Rail (1.2%) | | | |
| | 4,200 | | | Old Dominion Freight Line, Inc. | | | 181,818 | * | |
Semiconductors & Semiconductor Equipment (2.3%) | | | |
| | 5,700 | | | Cavium, Inc. | | | 159,600 | * | |
| | 2,900 | | | Mellanox Technologies Ltd. | | | 205,436 | * | |
| | | | 365,036 | | |
| Software (12.2%) | | | |
| | 4,700 | | | ACI Worldwide, Inc. | | | 207,787 | * | |
| | 6,200 | | | Allot Communications Ltd. | | | 172,732 | * | |
| | 9,300 | | | Aspen Technology, Inc. | | | 215,295 | * | |
| | 3,500 | | | CommVault Systems, Inc. | | | 173,495 | * | |
| | 4,900 | | | Concur Technologies, Inc. | | | 333,690 | * | |
| | 5,200 | | | NetSuite, Inc. | | | 284,804 | * | |
| | 3,400 | | | Tangoe, Inc. | | | 72,454 | * | |
| | 4,900 | | | Ultimate Software Group, Inc. | | | 436,688 | * | |
| | | | 1,896,945 | | |
| Specialty Retail (7.5%) | | | |
| | 5,700 | | | Cabela's, Inc. | | | 215,517 | * | |
| | 3,300 | | | Hibbett Sports, Inc. | | | 190,443 | * | |
| | 3,100 | | | Tractor Supply Co. | | | 257,486 | | |
| | 2,700 | | | Ulta Salon Cosmetics & Fragrance, Inc. | | | 252,126 | | |
| | 4,700 | | | Vitamin Shoppe, Inc. | | | 258,171 | * | |
| | | | 1,173,743 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Textiles, Apparel & Luxury Goods (1.0%) | | | |
| | 3,300 | | | Oxford Industries, Inc. | | $ | 147,510 | | |
| Trading Companies & Distributors (1.4%) | | | |
| | 3,000 | | | Watsco, Inc. | | | 221,400 | | |
| | | | | Total Common Stocks (Cost $14,295,246) | | | 15,574,921 | | |
| Short-Term Investments (3.2%) | | | |
| | 491,613 | | | State Street Institutional Liquid Reserves Fund Institutional Class (Cost $491,613) | | | 491,613 | | |
| | | | | Total Investments (103.1%) (Cost $14,786,859) | | | 16,066,534 | ## | |
| | | | | Liabilities, less cash, receivables and other assets [(3.1%)] | | | (488,715 | ) | |
| | | | | Total Net Assets (100.0%) | | $ | 15,577,819 | | |
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 and exchange traded funds, 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 on a principal exchange or market for that security (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 (Level 2 inputs).
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
See Notes to Financial Statements
8
Notes to Schedule of Investments Small Cap Growth Portfolio (Unaudited) (cont'd)
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 or on days when foreign markets are closed and U.S. markets are open. In each of these events, 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, 2012:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks^ | | $ | 15,574,921 | | | $ | — | | | $ | — | | | $ | 15,574,921 | | |
| Short-Term Investments | | | — | | | | 491,613 | | | | — | | | | 491,613 | | |
| Total Investments | | $ | 15,574,921 | | | $ | 491,613 | | | $ | — | | | $ | 16,066,534 | | |
^ The Schedule of Investments provides information on the industry categorization for the portfolio.
The Fund had no transfers between Levels 1 and 2 during the six months ended June 30, 2012.
## At June 30, 2012, the cost of investments for U.S. federal income tax purposes was $14,900,129. Gross unrealized appreciation of investments was $1,388,982 and gross unrealized depreciation of investments was $222,577, resulting in net unrealized appreciation of $1,166,405, 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, 2012 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 16,066,534 | | |
| Dividends and interest receivable | | | 1,902 | | |
| Receivable for securities sold | | | 698,857 | | |
| Receivable for Fund shares sold | | | 4,839 | | |
| Receivable from Management—net (Note B) | | | 2,606 | | |
| Prepaid expenses and other assets | | | 607 | | |
| Total Assets | | | 16,775,345 | | |
| Liabilities | |
| Payable for securities purchased | | | 1,127,151 | | |
| Payable for Fund shares redeemed | | | 26,656 | | |
| Payable to investment manager (Note B) | | | 10,547 | | |
| Accrued expenses and other payables | | | 33,172 | | |
| Total Liabilities | | | 1,197,526 | | |
| Net Assets at value | | $ | 15,577,819 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 17,703,198 | | |
| Undistributed net investment income (loss) | | | (97,022 | ) | |
| Accumulated net realized gains (losses) on investments | | | (3,308,032 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 1,279,675 | | |
| Net Assets at value | | $ | 15,577,819 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 1,183,352 | | |
| Net Asset Value, offering and redemption price per share | | $ | 13.16 | | |
| *Cost of Investments | | $ | 14,786,859 | | |
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, 2012 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 19,246 | | |
| Interest income—unaffiliated issuers | | | 267 | | |
| Foreign taxes withheld | | | (128 | ) | |
| Total income | | $ | 19,385 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 70,569 | | |
| Administration fees (Note B) | | | 24,907 | | |
| Distribution fees (Note B) | | | 20,756 | | |
| Audit fees | | | 20,854 | | |
| Custodian fees (Note A) | | | 8,577 | | |
| Insurance expense | | | 697 | | |
| Legal fees | | | 4,242 | | |
| Shareholder reports | | | 5,488 | | |
| Trustees' fees and expenses | | | 26,507 | | |
| Miscellaneous | | | 615 | | |
| Total expenses | | | 183,212 | | |
| Expenses reimbursed by Management (Note B) | | | (66,804 | ) | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (1 | ) | |
| Total net expenses | | | 116,407 | | |
| Net investment income (loss) | | $ | (97,022 | ) | |
| Realized and Unrealized Gain (Loss) on Investments (Note A): | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 905,955 | | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 604,415 | | |
| Net gain (loss) on investments | | | 1,510,370 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 1,413,348 | | |
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, 2012 (Unaudited) | | Year Ended December 31, 2011 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | (97,022 | ) | | $ | (217,898 | ) | |
| Net realized gain (loss) on investments | | | 905,955 | | | | 2,755,275 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 604,415 | | | | (3,317,347 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | 1,413,348 | | | | (779,970 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold | | | 1,599,810 | | | | 16,549,002 | | |
| Payments for shares redeemed | | | (3,863,711 | ) | | | (20,324,016 | ) | |
| Net increase (decrease) from Fund share transactions | | | (2,263,901 | ) | | | (3,775,014 | ) | |
| Net Increase (Decrease) in Net Assets | | | (850,553 | ) | | | (4,554,984 | ) | |
| Net Assets: | |
| Beginning of period | | | 16,428,372 | | | | 20,983,356 | | |
| End of period | | $ | 15,577,819 | | | $ | 16,428,372 | | |
| Undistributed net investment income (loss) at end of period | | $ | (97,022 | ) | | $ | — | | |
See Notes to Financial Statements
12
Notes to Financial Statements Small Cap Growth Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: Neuberger Berman Advisers Management Trust (the "Trust") is 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 ("GAAP") 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 rate 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 2008 - 2010. As of June 30, 2012, 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 GAAP. These differences are primarily due to differing treatments of income and gains on
13
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, 2011, permanent differences resulting primarily from different book and tax accounting for net operating losses and non-taxable dividend adjustments to income 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. For the year ended December 31, 2011, the Fund recorded the following permanent reclassifications:
Paid-in Capital | | Undistributed Net Investment Income (Loss) | | Accumulated Net Realized Gains (Losses) on Investments | |
| $ | (218,193 | ) | | $ | 217,898 | | | $ | 295 | | |
For tax purposes, short-term gains are considered ordinary income.
As of December 31, 2011, 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 | | Other Temporary Differences | | Total | |
| $ | — | | | $ | 551,022 | | | $ | (4,089,749 | ) | | $ | — | | | $ | (3,538,727 | ) | |
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. The Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") became effective for the Fund on January 1, 2011. The Act modernizes several of the federal income and excise tax provisions related to RICs. 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 ("Post-Enactment"). Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character ("Pre-Enactment"). As determined at December 31, 2011, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| Pre-Enactment | | Post-Enactment (No Expiration Date) | |
| Expiring in: | | Long-Term | | Short-Term | |
| 2016 | | 2017 | | | | | |
| $ | 47,947 | | | $ | 4,041,802 | | | $ | — | | | $ | — | | |
Post-Enactment capital loss carryforwards must be fully used before Pre-Enactment capital loss carryforwards; therefore, under certain circumstances, Pre-Enactment capital loss carryforwards available as of the report date may expire unused.
During the year ended December 31, 2011, the Fund utilized capital loss carryforwards of $2,771,478.
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 of the investment companies 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, 2012, 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 0.85% 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. Accordingly, for the six months ended June 30, 2012, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.85% of the Fund's average daily net assets.
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
15
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 may be 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, 2015 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, transaction costs and dividend expense on short sales, if any) ("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, 2012, such excess expenses amounted to $66,804. The Fund has agreed to repay Management through December 31, 2018 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 in place at the time the fees and expenses were foregone or reimbursed, 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, 2012, there was no repayment to Management under its contractual expense limitation. At June 30, 2012, contingent liabilities to Management under its contractual expense limitation were as follows:
| Expiring in: | | | |
| 2012 | | 2013 | | 2014 | | 2015 | | Total | |
| $ | 142,078 | | | $ | 137,598 | | | $ | 153,311 | | | $ | 66,804 | | | $ | 499,791 | | |
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")). NBSH Acquisition, LLC ("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 55% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 45% of such common units. Pursuant to agreements among NBG, NBSH and the LBHI Parties, NBG is entitled to acquire the remaining common units not owned by NBSH through a process that is expected to end in 2017. In April 2012, NBG committed to and began payments for equity purchases from the LBHI parties, which are expected to raise employee ownership to approximately 64% by year end.
Note C—Securities Transactions:
During the six months ended June 30, 2012, there were purchase and sale transactions (excluding short-term securities) of $25,429,502 and $27,767,113, respectively.
During the six months ended June 30, 2012, 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, 2012 and for the year ended December 31, 2011 was as follows:
| | | For the Six Months Ended June 30, 2012 | | For the Year Ended December 31, 2011 | |
| Shares Sold | | | 123,782 | | | | 1,265,572 | | |
| Shares Redeemed | | | (295,150 | ) | | | (1,621,981 | ) | |
| Total | | | (171,368 | ) | | | (356,409 | ) | |
Note E—Line of Credit:
At June 30, 2012, 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 0.10% 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, 2012. During the six months ended June 30, 2012, the Fund did not utilize this line of credit.
Note F—Recent Accounting Pronouncement:
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements.
Note G—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. Per share amounts that round to less than $.01 or $(.01) per share are presented as $.00 or $(.00), respectively.
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 12.13 | | | $ | 12.26 | | | $ | 10.25 | | | $ | 8.35 | | | $ | 14.50 | | | $ | 14.53 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | (.08 | ) | | | (.14 | ) | | | (.12 | ) | | | (.09 | ) | | | (.11 | ) | | | (.06 | ) | |
Net Gains or Losses on Securities (both realized and unrealized) | | | 1.11 | | | | .01 | | | | 2.13 | | | | 1.99 | | | | (5.60 | )§§ | | | .14 | | |
| Total From Investment Operations | | | 1.03 | | | | (.13 | ) | | | 2.01 | | | | 1.90 | | | | (5.71 | ) | | | .08 | | |
| Less Distributions From: | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | — | | | | (.44 | ) | | | (.11 | ) | |
| Tax Return of Capital | | | — | | | | — | | | | — | | | | — | | | | (.00 | ) | | | — | | |
| Total Distributions | | | — | | | | — | | | | — | | | | — | | | | (.44 | ) | | | (.11 | ) | |
| Net Asset Value, End of Period | | $ | 13.16 | | | $ | 12.13 | | | $ | 12.26 | | | $ | 10.25 | | | $ | 8.35 | | | $ | 14.50 | | |
Total Return†† | | | 8.49 | %** | | | (1.06 | )% | | | 19.61 | % | | | 22.75 | % | | | (39.47 | )% | | | .52 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 15.6 | | | $ | 16.4 | | | $ | 21.0 | | | $ | 16.0 | | | $ | 12.6 | | | $ | 26.7 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 2.21 | %* | | | 2.20 | % | | | 2.27 | % | | | 2.46 | % | | | 1.97 | % | | | 1.87 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.40 | %* | | | 1.41 | % | | | 1.40 | % | | | 1.42 | % | | | 1.42 | % | | | 1.39 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | (1.17 | )%* | | | (1.11 | )% | | | (1.15 | )% | | | (1.08 | )% | | | (.92 | )% | | | (.42 | )% | |
| Portfolio Turnover Rate | | | 155 | %** | | | 279 | % | | | 243 | % | | | 300 | % | | | 323 | % | | | 38 | % | |
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 indicate 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.
# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses and/or waived a portion of the investment management fee.
‡ 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. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, the annualized ratios of net expenses to average daily net assets would have been:
Six Months Ended June 30, | | Year Ended December 31, | |
| 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | 1.40 | % | | | 1.41 | % | | | 1.40 | % | | | 1.42 | % | | | 1.43 | % | | | 1.40 | % | |
§§ 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, 2012
B0738 08/12
Socially Responsive Portfolio Commentary
The Neuberger Berman Advisers Management Trust (AMT) Socially Responsive Portfolio Class I generated a total return of 3.62% for the six months ended June 30, 2012, but underperformed its benchmark, the S&P 500 Index, which returned 9.49% for the period. Returns for the Portfolio's Class I and Class S shares are provided on page 3.
Macroeconomic concerns were the key drivers of the financial markets this period, as investor sentiment rotated between worries and relief. The European debt crisis was the key factor again this period, responsible initially for a strong first quarter as anxiety about Europe remained at bay as governments in the region negotiated plans to avert a financial meltdown. However, as the year progressed, European worries returned due to a barrage of news that pointed to an imminent sovereign debt default by Greece and deepening financial woes in Spain. In addition, we saw data suggesting the growth rate in both the U.S. and China had slowed. As such, volatility increased and the market declined in the second quarter.
Our Portfolio has been positioned for a slow growth environment since the onset of the global financial crisis. We had anticipated periods of heightened market volatility related to divergent debt-related issues and have used such volatility to build and maintain what we believe is a portfolio of very high quality businesses—businesses we think should perform well through economic uncertainty and outperform their peers. The businesses in our portfolio largely performed as we had anticipated this period—with few surprises, they appear to be holding up against a weak and uncertain backdrop, maintaining earnings, and positioning themselves well for the future.
In addition to the resilience of our businesses, the quality attributes of our current portfolio are strong. We are quite pleased with the financial strength, free cash flow characteristics, debt to capitalization ratios, industry leading positions, and management skill and experience of our holdings. This period, quality attributes did not drive returns as they have during previous periods of weakness due to macroeconomic distractions.
From a sector perspective, the Portfolio's underperformance was largely driven by Information Technology ("IT") and Energy. Within IT, the absence of Apple from the portfolio's holdings was a headwind to relative performance. There are a number of reasons we don't own Apple, but its strong performance has been a disproportionate driver of IT sector—and benchmark—returns. Our semiconductor holdings also underperformed on worries about the durability of the macro economy, even despite the strong secular positioning of our companies and their relatively lean inventory positions.
Energy holdings were broadly impacted by commodity weakness. As fear and loathing around Europe ebbed and flowed, commodity prices and commodity-sensitive stocks followed suit. Our energy-related stocks were somewhat more commodity price sensitive than the sector as a whole, and underperformed as a result.
The Portfolio also experienced modest underperformance, relative to the benchmark, within Financials. In the first quarter, credit-sensitive financials—an area where, by design, we have very little exposure—performed particularly well. That trend reversed itself in the second quarter, but the shift was not enough to completely offset our relative underperformance from earlier in the year. By contrast, strong stock selection within the Consumer Discretionary, Consumer Staples, and Health Care sectors allowed the Portfolio to outperform the index in those areas.
During the reporting period, we continued to trim holdings on strong performance and to add to high conviction positions on volatility-driven buying opportunities. One of our complete sales this period was Novo Nordisk. One of the leaders in diabetes care, Novo Nordisk has been a long-term core holding and a significant contributor to Portfolio returns for approximately seven years. While we believe in the prospects for the business and the company's management, in our opinion, the valuation of the stock had begun to reflect a lot of the fundamental opportunity.
Looking forward, we anticipate the continuation of a slow growth environment with significant uncertainty, vacillating between periods of fear and relief. During periods of relief, we would expect growth in industrial production, and in periods of fear, draw downs against inventories that are already very lean. We have seen this cycle repeat several times since 2008, and expect it will be the norm for some time. Uncertainty may increase toward the end of the year with the upcoming U.S. presidential election and possible "fiscal cliff."
1
Against this uncertainty, however, some positive factors differentiate the U.S. economy from its global peers. First is the likelihood that the housing market in the U.S. may have found a bottom, changing a meaningful headwind to GDP into a neutral-to-incrementally positive factor. Second is the North American energy renaissance, which has important implications for our trade balance as it could position the U.S. as an exporter of petroleum products and, potentially, liquefied natural gas. Implied energy cost advantages could also potentially support a broader industrial renaissance here. We are seeing early evidence of this impact now and believe that longer-term this could have a profound effect on North American economic activity.
With expectations that the market will continue to turn on the perceived ebb and flow of macroeconomic news for at least the remainder of the year, we remain focused on company fundamentals. We continue to manage a portfolio of high quality businesses in leadership positions that we believe can achieve advantaged secular growth within a difficult environment.
Sincerely,
ARTHUR MORETTI AND INGRID DYOTT
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 portfolio composition, industries and holdings of the Portfolio are subject to change.
2
Socially Responsive Portfolio
SECTOR ALLOCATION
| (as a % of Total Investments) | |
| Consumer Discretionary | | | 8.6 | % | |
| Consumer Staples | | | 13.0 | | |
| Energy | | | 12.6 | | |
| Financials | | | 14.9 | | |
| Health Care | | | 9.4 | | |
| Industrials | | | 14.7 | | |
| Information Technology | | | 17.7 | | |
| Materials | | | 4.6 | | |
| Short-Term Investments | | | 4.5 | | |
| Total | | | 100.0 | % | |
PERFORMANCE HIGHLIGHTS
| | | Inception | | Six Month Period Ended | | Average Annual Total Return Ended 06/30/2012 | |
| | | Date | | 06/30/2012 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund1 | |
Socially Responsive Portfolio Class I | | | 02/18/1999 | | | | 3.62 | % | | | –5.48 | % | | | –0.82 | % | | | 6.01 | % | | | 4.60 | % | |
Socially Responsive Portfolio Class S2 | | | 05/01/2006 | | | | 3.47 | % | | | –5.67 | % | | | –0.92 | % | | | 5.94 | % | | | 4.54 | % | |
S&P 500 Index3 | | | | | | | 9.49 | % | | | 5.45 | % | | | 0.22 | % | | | 5.33 | % | | | 2.65 | % | |
The performance data quoted represent past performance and do not indicate future results. 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.
The results shown in the table reflect the reinvestment of income dividends and other distributions, if any. The results do not reflect the effect of taxes a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares. The results do 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.
The investment return and principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost.
Returns would have been lower if Neuberger Berman Management LLC ("Management") had not reimbursed certain expenses and/or waived a portion of the investment management fees during certain of the periods shown. Repayment by a class (of expenses previously reimbursed and/or fees previously waived by Management) will decrease the class's returns. Please see Note B in the Notes to Financial Statements for specific information regarding expense reimbursement and/or fee waiver arrangements.
As stated in the Portfolio's most recent prospectus, the total annual operating expense ratios for fiscal year 2011 were 1.06% and 1.31% for Class I and Class S shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratio was 1.17% for Class S after expense reimbursements and/or fee waivers.
3
Endnotes
1 The date used to calculate Life of Fund performance for the index is the inception date of the oldest share class.
2 Performance shown prior to May 1, 2006 for the Class S shares is that of the Class I shares, which have 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, expenses or tax consequences of investing in the individual securities that they track, and individuals cannot invest directly in any index. Data about the performance of an index is prepared or obtained by Neuberger Berman Management LLC ("Management") and reflects the reinvestment of income dividends and other distributions. The Portfolio may invest in securities not included in a described index or may not invest in all securities included in a described index.
Any ratios or other measurements using a factor of forecasted earnings of a company discussed herein are based on consensus estimates, not Management'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, Management 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) the investments for one or more other registered funds that have names, investment objectives, and investment styles similar to those of the Portfolio. You should be aware that the Portfolio is likely to differ from the other mutual fund(s) 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 fund(s).
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.
©2012 Neuberger Berman Management LLC distributor. All rights reserved.
4
Information About Your Fund's Expenses (Unaudited)
As a Fund shareholder, you incur two types of costs: (1) transaction costs such as fees and expenses that are, or may be, imposed under your variable contract or qualified pension plan; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees (if applicable); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and compare these costs with the ongoing costs of investing in other mutual funds.
This table is designed to provide information regarding costs related to your investments. The following examples are based on an investment of $1,000 made at the beginning of the six month period ended June 30, 2012 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 and 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 6/30/12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO
| Actual | | Beginning Account Value 1/1/12 | | Ending Account Value 6/30/12 | | Expenses Paid During the Period* 1/1/12 – 6/30/12 | | Expense Ratio | |
| Class I | | $ | 1,000.00 | | | $ | 1,036.20 | | | $ | 5.27 | | | | 1.04 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,034.70 | | | $ | 5.92 | | | | 1.17 | % | |
| Hypothetical (5% annual return before expenses)** | |
| Class I | | $ | 1,000.00 | | | $ | 1,019.69 | | | $ | 5.22 | | | | 1.04 | % | |
| Class S | | $ | 1,000.00 | | | $ | 1,019.05 | | | $ | 5.87 | | | | 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 182/366 (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 366.
5
Schedule of Investments Socially Responsive Portfolio
(Unaudited)
| NUMBER OF SHARES | | | | VALUE† | |
| Common Stocks (94.3%) | | | |
| Capital Markets (5.4%) | | | |
| | 19,970 | | | BlackRock, Inc. | | $ | 3,391,305 | | |
| | 264,284 | | | Charles Schwab Corp. | | | 3,417,192 | | |
| | 154,740 | | | Lazard Ltd. Class A | | | 4,021,693 | | |
| | | | 10,830,190 | | |
| Chemicals (2.0%) | | | |
| | 58,160 | | | Ecolab, Inc. | | | 3,985,705 | | |
| Commercial Services & Supplies (1.5%) | | | |
| | 158,135 | | | Herman Miller, Inc. | | | 2,928,660 | | |
| Consumer Finance (2.2%) | | | |
| | 74,640 | | | American Express Co. | | | 4,344,794 | | |
| Diversified Financial Services (3.2%) | | | |
| | 11,263 | | | CME Group, Inc. | | | 3,019,723 | | |
| | 24,488 | | | IntercontinentalExchange, Inc. | | | 3,329,878 | * | |
| | | | 6,349,601 | | |
Electronic Equipment, Instruments & Components (3.9%) | | | |
| | 35,220 | | | Anixter International, Inc. | | | 1,868,421 | | |
| | 216,840 | | | National Instruments Corp. | | | 5,824,322 | | |
| | | | 7,692,743 | | |
| Food Products (9.4%) | | | |
| | 63,055 | | | J.M. Smucker Co. | | | 4,761,914 | | |
| | 112,500 | | | McCormick & Co., Inc. | | | 6,823,125 | | |
| | 214,560 | | | Unilever NV | | | 7,155,576 | | |
| | | | 18,740,615 | | |
| Health Care Equipment & Supplies (6.1%) | | | |
| | 79,945 | | | Becton, Dickinson & Co. | | | 5,975,889 | | |
| | 116,470 | | | Covidien PLC | | | 6,231,145 | | |
| | | | 12,207,034 | | |
| Household Products (3.4%) | | | |
| | 111,325 | | | Procter & Gamble Co. | | | 6,818,656 | | |
| Industrial Conglomerates (7.7%) | | | |
| | 70,650 | | | 3M Co. | | | 6,330,240 | | |
| | 173,960 | | | Danaher Corp. | | | 9,059,837 | | |
| | | | 15,390,077 | | |
| Industrial Gases (1.9%) | | | |
| | 34,505 | | | Praxair, Inc. | | | 3,751,729 | | |
| NUMBER OF SHARES | | | | VALUE† | |
| Insurance (3.9%) | | | |
| | 375,095 | | | Progressive Corp. | | $ | 7,813,229 | | |
| Internet Software & Services (3.9%) | | | |
| | 13,465 | | | Google, Inc. Class A | | | 7,810,642 | * | |
| IT Services (1.7%) | | | |
| | 7,697 | | | MasterCard, Inc. Class A | | | 3,310,557 | | |
| Machinery (2.5%) | | | |
| | 92,000 | | | Pall Corp. | | | 5,042,520 | | |
| Media (5.7%) | | | |
| | 129,327 | | | Comcast Corp. Class A Special | | | 4,060,868 | | |
| | 127,805 | | | Scripps Networks Interactive, Inc. Class A | | | 7,266,992 | | |
| | | | 11,327,860 | | |
| Multiline Retail (2.8%) | | | |
| | 96,645 | | | Target Corp. | | | 5,623,772 | | |
| Oil, Gas & Consumable Fuels (12.5%) | | | |
| | 383,687 | | | BG Group PLC | | | 7,854,639 | | |
| | 96,520 | | | Cimarex Energy Co. | | | 5,320,183 | | |
| | 231,020 | | | Newfield Exploration Co. | | | 6,771,196 | * | |
| | 57,550 | | | Noble Energy, Inc. | | | 4,881,391 | | |
| | | | 24,827,409 | | |
| Pharmaceuticals (3.1%) | | | |
| | 36,164 | | | Roche Holding AG | | | 6,246,713 | | |
| Professional Services (1.0%) | | | |
| | 80,955 | | | ICF International, Inc. | | | 1,929,967 | * | |
Semiconductors & Semiconductor Equipment (8.0%) | | | |
| | 234,515 | | | Altera Corp. | | | 7,935,988 | | |
| | 279,460 | | | Texas Instruments, Inc. | | | 8,017,707 | | |
| | | | 15,953,695 | | |
| Specialty Chemicals (0.7%) | | | |
| | 49,425 | | | Novozymes A/S B Shares | | | 1,281,659 | | |
| Trading Companies & Distributors (1.8%) | | | |
| | 18,790 | | | W.W. Grainger, Inc. | | | 3,593,400 | | |
| | | | | Total Common Stocks (Cost $167,048,351) | | | 187,801,227 | | |
See Notes to Schedule of Investments
6
| NUMBER OF SHARES | | | | VALUE† | |
| Short-Term Investments (4.4%) | | | |
| | 8,742,644 | | | State Street Institutional Treasury Money Market Fund Institutional Class (Cost $8,742,644) | | $ | 8,742,644 | | |
| PRINCIPAL AMOUNT | | | | | |
| Certificates of Deposit (0.1%) | | | |
| $ | 200,000 | | | Self Help Credit Union, 0.50%, due 7/29/12 (Cost $200,000) | | | 200,000 | # | |
| | | | | Total Investments (98.8%) (Cost $175,990,995) | | | 196,743,871 | ## | |
| | | | | Cash, receivables and other assets, less liabilities (1.2%) | | | 2,436,554 | | |
| | | | | Total Net Assets (100.0%) | | $ | 199,180,425 | | |
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 and exchange traded funds, 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 on a principal exchange or market for that security (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.
Certificates of Deposit are valued at amortized cost. Investments in State Street Institutional Treasury Money Market Fund Institutional Class are valued using the fund's daily calculated net asset value per share (Level 2 inputs).
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 Board has approved the use of Interactive Data Pricing and Reference Data, Inc. ("Interactive") to assist in
See Notes to Schedule of Investments
8
Notes to Schedule of Investments Socially Responsive 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 or on days when foreign markets are closed and U.S. markets are open. In each of these events, 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, 2012:
| Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Investments: | |
| Common Stocks | |
| Capital Markets | | $ | 10,830,190 | | | $ | — | | | $ | — | | | $ | 10,830,190 | | |
| Chemicals | | | 3,985,705 | | | | — | | | | — | | | | 3,985,705 | | |
| Commercial Services & Supplies | | | 2,928,660 | | | | — | | | | — | | | | 2,928,660 | | |
| Consumer Finance | | | 4,344,794 | | | | — | | | | — | | | | 4,344,794 | | |
| Diversified Financial Services | | | 6,349,601 | | | | — | | | | — | | | | 6,349,601 | | |
| Electronic Equipment, Instruments & Components | | | 7,692,743 | | | | — | | | | — | | | | 7,692,743 | | |
| Food Products | | | 18,740,615 | | | | — | | | | — | | | | 18,740,615 | | |
| Health Care Equipment & Supplies | | | 12,207,034 | | | | — | | | | — | | | | 12,207,034 | | |
| Household Products | | | 6,818,656 | | | | — | | | | — | | | | 6,818,656 | | |
| Industrial Conglomerates | | | 15,390,077 | | | | — | | | | — | | | | 15,390,077 | | |
| Industrial Gases | | | 3,751,729 | | | | — | | | | — | | | | 3,751,729 | | |
| Insurance | | | 7,813,229 | | | | — | | | | — | | | | 7,813,229 | | |
| Internet Software & Services | | | 7,810,642 | | | | — | | | | — | | | | 7,810,642 | | |
| IT Services | | | 3,310,557 | | | | — | | | | — | | | | 3,310,557 | | |
| Machinery | | | 5,042,520 | | | | — | | | | — | | | | 5,042,520 | | |
| Media | | | 11,327,860 | | | | — | | | | — | | | | 11,327,860 | | |
| Multiline Retail | | | 5,623,772 | | | | — | | | | — | | | | 5,623,772 | | |
| Oil, Gas & Consumable Fuels | | | 16,972,770 | | | | 7,854,639 | | | | — | | | | 24,827,409 | | |
| Pharmaceuticals | | | — | | | | 6,246,713 | | | | — | | | | 6,246,713 | | |
| Professional Services | | | 1,929,967 | | | | — | | | | — | | | | 1,929,967 | | |
| Semiconductors & Semiconductor Equipment | | | 15,953,695 | | | | — | | | | — | | | | 15,953,695 | | |
| Specialty Chemicals | | | — | | | | 1,281,659 | | | | — | | | | 1,281,659 | | |
| Trading Companies & Distributors | | | 3,593,400 | | | | — | | | | — | | | | 3,593,400 | | |
| Total Common Stocks | | | 172,418,216 | | | | 15,383,011 | | | | — | | | | 187,801,227 | | |
| Short-Term Investments | | | — | | | | 8,742,644 | | | | — | | | | 8,742,644 | | |
| Certificates of Deposit | | | — | | | | 200,000 | | | | — | | | | 200,000 | | |
| Total Investments | | $ | 172,418,216 | | | $ | 24,325,655 | | | $ | — | | | $ | 196,743,871 | | |
See Notes to Schedule of Investments
9
Notes to Schedule of Investments Socially Responsive Portfolio (Unaudited) (cont'd)
As of the six months ending June 30, 2012, certain foreign equity securities were transferred from Level 1 to Level 2 as a result of the Fund's procedures for valuing securities, as stated in the description of the valuation methods of foreign equity securities above. Based on beginning of period market values as of December 31, 2011, $13,987,518 was transferred from Level 1 to Level 2.
# At cost, which approximates market value.
## At June 30, 2012, the cost of investments for U.S. federal income tax purposes was $176,436,161. Gross unrealized appreciation of investments was $25,815,144 and gross unrealized depreciation of investments was $5,507,434, resulting in net unrealized appreciation of $20,307,710, based on cost for U.S. federal income tax purposes.
* Security did not produce income during the last twelve months.
See Notes to Schedule of Investments
10
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | SOCIALLY RESPONSIVE PORTFOLIO | |
| | | June 30, 2012 | |
| Assets | |
| Investments in securities, at value* (Note A)—see Schedule of Investments: | |
| Unaffiliated issuers | | $ | 196,743,871 | | |
| Dividends and interest receivable | | | 133,119 | | |
| Receivable for securities sold | | | 563,001 | | |
| Receivable for Fund shares sold | | | 2,050,495 | | |
| Prepaid expenses and other assets | | | 8,452 | | |
| Total Assets | | | 199,498,938 | | |
| Liabilities | |
| Payable for Fund shares redeemed | | | 95,596 | | |
| Payable to investment manager (Note B) | | | 85,904 | | |
| Payable to administrator—net (Note B) | | | 50,474 | | |
| Accrued expenses and other payables | | | 86,539 | | |
| Total Liabilities | | | 318,513 | | |
| Net Assets at value | | $ | 199,180,425 | | |
| Net Assets consist of: | |
| Paid-in capital | | $ | 198,231,968 | | |
| Undistributed net investment income (loss) | | | 1,268,472 | | |
| Accumulated net realized gains (losses) on investments | | | (21,070,002 | ) | |
| Net unrealized appreciation (depreciation) in value of investments | | | 20,749,987 | | |
| Net Assets at value | | $ | 199,180,425 | | |
| Net Assets | |
| Class I | | $ | 126,988,149 | | |
| Class S | | | 72,192,276 | | |
| Shares Outstanding ($.001 par value; unlimited shares authorized) | |
| Class I | | | 8,539,094 | | |
| Class S | | | 4,846,866 | | |
| Net Asset Value, offering and redemption price per share | |
| Class I | | $ | 14.87 | | |
| Class S | | | 14.89 | | |
| *Cost of Investments | | $ | 175,990,995 | | |
See Notes to Financial Statements
11
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | SOCIALLY RESPONSIVE PORTFOLIO | |
| | | For the Six Months Ended June 30, 2012 | |
| Investment Income: | |
| Income (Note A): | |
| Dividend income—unaffiliated issuers | | $ | 2,003,205 | | |
| Interest income—unaffiliated issuers | | | 1,576 | | |
| Foreign taxes withheld | | | (67,722 | ) | |
| Total income | | $ | 1,937,059 | | |
| Expenses: | |
| Investment management fees (Note B) | | | 532,219 | | |
| Administration fees (Note B): | |
| Class I | | | 180,558 | | |
| Class S | | | 109,744 | | |
| Distribution fees (Note B): | |
| Class S | | | 91,453 | | |
| Audit fees | | | 20,854 | | |
| Custodian fees (Note A) | | | 41,197 | | |
| Insurance expense | | | 4,930 | | |
| Legal fees | | | 41,986 | | |
| Shareholder reports | | | 41,977 | | |
| Trustees' fees and expenses | | | 26,669 | | |
| Miscellaneous | | | 4,044 | | |
| Total expenses | | | 1,095,631 | | |
| Expenses reimbursed by Management (Note B) | | | (42,606 | ) | |
| Expenses reduced by custodian fee expense offset arrangement (Note A) | | | (1 | ) | |
| Total net expenses | | | 1,053,024 | | |
| Net investment income (loss) | | $ | 884,035 | | |
| Realized and Unrealized Gain (Loss) on Investments (Note A): | |
| Net realized gain (loss) on: | |
| Sales of investment securities of unaffiliated issuers | | | 2,082,075 | | |
| Foreign currency | | | (10,024 | ) | |
| Change in net unrealized appreciation (depreciation) in value of: | |
| Unaffiliated investment securities | | | 3,174,077 | | |
| Foreign currency | | | (2,452 | ) | |
| Net gain (loss) on investments | | | 5,243,676 | | |
| Net increase (decrease) in net assets resulting from operations | | $ | 6,127,711 | | |
See Notes to Financial Statements
12
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | SOCIALLY RESPONSIVE PORTFOLIO | |
| | | Six Months Ended June 30, 2012 (Unaudited) | | Year Ended December 31, 2011 | |
| Increase (Decrease) in Net Assets: | |
| From Operations (Note A): | |
| Net investment income (loss) | | $ | 884,035 | | | $ | 434,659 | | |
| Net realized gain (loss) on investments | | | 2,072,051 | | | | 2,435,202 | | |
| Change in net unrealized appreciation (depreciation) of investments | | | 3,171,625 | | | | (9,287,434 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | 6,127,711 | | | | (6,417,573 | ) | |
| Distributions to Shareholders From (Note A): | |
| Net investment income: | |
| Class I | | | — | | | | (361,073 | ) | |
| Class S | | | — | | | | (194,031 | ) | |
| Total distributions to shareholders | | | — | | | | (555,104 | ) | |
| From Fund Share Transactions (Note D): | |
| Proceeds from shares sold: | |
| Class I | | | 24,504,635 | | | | 47,741,592 | | |
| Class S | | | 5,989,311 | | | | 15,494,093 | | |
| Proceeds from reinvestment of dividends and distributions: | |
| Class I | | | — | | | | 361,073 | | |
| Class S | | | — | | | | 194,031 | | |
| Payments for shares redeemed: | |
| Class I | | | (9,611,506 | ) | | | (18,963,501 | ) | |
| Class S | | | (6,862,447 | ) | | | (14,940,554 | ) | |
| Net increase (decrease) from Fund share transactions | | | 14,019,993 | | | | 29,886,734 | | |
| Net Increase (Decrease) in Net Assets | | | 20,147,704 | | | | 22,914,057 | | |
| Net Assets: | |
| Beginning of period | | | 179,032,721 | | | | 156,118,664 | | |
| End of period | | $ | 199,180,425 | | | $ | 179,032,721 | | |
| Undistributed net investment income (loss) at end of period | | $ | 1,268,472 | | | $ | 384,437 | | |
See Notes to Financial Statements
13
Notes to Financial Statements Socially Responsive Portfolio (Unaudited)
Note A—Summary of Significant Accounting Policies:
1 General: Neuberger Berman Advisers Management Trust (the "Trust") is 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 ("GAAP") 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 rate 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, 2012 was $8,105.
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 2008 - 2010. As of June 30, 2012, 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 GAAP. 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, 2011, 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. For the year ended December 31, 2011, the Fund recorded the following permanent reclassifications:
Paid-in Capital | | Undistributed Net Investment Income (Loss) | | Accumulated Net Realized Gains (Losses) on Investments | |
| $ | — | | | $ | (49,867 | ) | | $ | 49,867 | | |
For tax purposes, short-term gains are considered ordinary income.
The tax character of distributions paid during the years ended December 31, 2011 and December 31, 2010 was as follows:
| | | Distributions Paid From: | | | |
| Ordinary Income | | Long-Term Capital Gain | | Total | |
| 2011 | | 2010 | | 2011 | | 2010 | | 2011 | | 2010 | |
| $ | 555,104 | | | $ | 37,677 | | | $ | — | | | $ | — | | | $ | 555,104 | | | $ | 37,677 | | |
As of December 31, 2011, 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 | | Other Temporary Differences | | Total | |
| $ | 384,437 | | | $ | 17,119,641 | | | $ | (22,683,332 | ) | | $ | — | | | $ | (5,179,254 | ) | |
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. The Regulated Investment Company ("RIC") Modernization Act of 2010 (the "Act") became effective for the Fund on January 1, 2011. The Act modernizes several of the federal income and excise tax provisions related to RICs. 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 ("Post-Enactment"). Rules in effect previously limited the carryforward period to eight years and all carryforwards were considered short-term in character ("Pre-Enactment"). As determined at December 31, 2011, the Fund had unused capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
| Pre-Enactment | | Post-Enactment (No Expiration Date) | |
| Expiring in: | | Long-Term | | Short-Term | |
| 2016 | | 2017 | | | | | |
| $ | 3,706,201 | | | $ | 18,977,131 | | | $ | — | | | $ | — | | |
15
Post-Enactment capital loss carryforwards must be fully used before Pre-Enactment capital loss carryforwards; therefore, under certain circumstances, Pre-Enactment capital loss carryforwards available as of the report date may expire unused.
During the year ended December 31, 2011, the Fund utilized capital loss carryforwards of $2,482,112.
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 of the investment companies 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, 2012, 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.
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
16
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. Accordingly, for the six months ended June 30, 2012, the management fee pursuant to the Management Agreement was equivalent to an annual effective rate of 0.55% of the Fund's average daily net assets.
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 may be 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, transaction costs and dividend expense on short sales, if any) ("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, 2012 | |
| Class I | | | 1.30 | % | | 12/31/15 | | $ | — | | |
| Class S | | | 1.17 | % | | 12/31/15 | | | 42,606 | | |
(1) Expense limitation per annum of the respective class' average daily net assets.
Each respective class has agreed to repay Management through December 31, 2018 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 in place at the time the fees and expenses were foregone or reimbursed, 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, 2012, there was no repayment to Management under its contractual expense limitation. At June 30, 2012, the Fund's Class I shares had no contingent liability to Management under its contractual expense limitation. At June 30, 2012, the Fund's Class S shares contingent liabilities to Management under its contractual expense limitation were as follows:
| | | Expiring in: | | | |
| | | 2012 | | 2013 | | 2014 | | 2015 | | Total | |
| Class S | | $ | 117,793 | | | $ | 99,087 | | | $ | 99,870 | | | $ | 42,606 | | | $ | 359,356 | | |
17
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")). NBSH Acquisition, LLC ("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 55% of NBG's common units, and Lehman Brothers Holdings Inc. ("LBHI") and certain of its subsidiaries (collectively the "LBHI Parties") own the remaining 45% of such common units. Pursuant to agreements among NBG, NBSH and the LBHI Parties, NBG is entitled to acquire the remaining common units not owned by NBSH through a process that is expected to end in 2017. In April 2012, NBG committed to and began payments for equity purchases from the LBHI parties, which are expected to raise employee ownership to approximately 64% by year end.
Note C—Securities Transactions:
During the six months ended June 30, 2012, there were purchase and sale transactions (excluding short-term securities) of $36,174,573 and $26,349,999, respectively.
During the six months ended June 30, 2012, 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, 2012 and for the year ended December 31, 2011 was as follows:
For the Six Months Ended June 30, 2012
| | | Shares Sold | | Shares Issued on Reinvestment of Dividends and Distributions | | Shares Redeemed | | Total | |
| Class I | | | 1,620,522 | | | | — | | | | (632,044 | ) | | | 988,478 | | |
| Class S | | | 390,621 | | | | — | | | | (454,299 | ) | | | (63,678 | ) | |
For the Year Ended December 31, 2011
| | | Shares Sold | | Shares Issued on Reinvestment of Dividends and Distributions | | Shares Redeemed | | Total | |
| Class I | | | 3,225,244 | | | | 25,791 | | | | (1,301,064 | ) | | | 1,949,971 | | |
| Class S | | | 1,021,698 | | | | 13,820 | | | | (1,019,325 | ) | | | 16,193 | | |
Note E—Line of Credit:
At June 30, 2012, 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 0.10% 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
18
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, 2012. During the six months ended June 30, 2012, the Fund did not utilize this line of credit.
Note F—Recent Accounting Pronouncement:
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). Effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. At this time, Management is evaluating the implications of ASU 2011-11 and its impact on the financial statements.
Note G—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
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. Per share amounts that round to less than $.01 or $(.01) per share are presented as $.00 or $(.00), respectively.
| Class I | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 14.35 | | | $ | 14.86 | | | $ | 12.10 | | | $ | 9.39 | | | $ | 17.91 | | | $ | 16.71 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .07 | | | | .04 | | | | .06 | | | | .01 | | | | .11 | | | | .12 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .45 | | | | (.50 | ) | | | 2.70 | | | | 2.93 | | | | (7.13 | ) | | | 1.16 | | |
| Total From Investment Operations | | | .52 | | | | (.46 | ) | | | 2.76 | | | | 2.94 | | | | (7.02 | ) | | | 1.28 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.05 | ) | | | (.00 | ) | | | (.23 | ) | | | (.34 | ) | | | (.02 | ) | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | — | | | �� | (1.16 | ) | | | (.06 | ) | |
| Total Distributions | | | — | | | | (.05 | ) | | | (.00 | ) | | | (.23 | ) | | | (1.50 | ) | | | (.08 | ) | |
| Net Asset Value, End of Period | | $ | 14.87 | | | $ | 14.35 | | | $ | 14.86 | | | $ | 12.10 | | | $ | 9.39 | | | $ | 17.91 | | |
Total Return†† | | | 3.62 | %** | | | (3.08 | )% | | | 22.85 | % | | | 31.43 | % | | | (39.44 | )% | | | 7.61 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 127.0 | | | $ | 108.4 | | | $ | 83.2 | | | $ | 64.5 | | | $ | 51.6 | | | $ | 557.9 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.04 | %* | | | 1.06 | % | | | 1.08 | % | | | 1.15 | % | | | .92 | % | | | .91 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.04 | %* | | | 1.06 | % | | | 1.08 | % | | | 1.15 | % | | | .92 | % | | | .91 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .96 | %* | | | .29 | % | | | .48 | % | | | .06 | % | | | .70 | % | | | .65 | % | |
| Portfolio Turnover Rate | | | 14 | %** | | | 20 | % | | | 41 | % | | | 34 | % | | | 41 | % | | | 26 | % | |
See Notes to Financial Highlights
20
Financial Highlights (cont'd)
| Class S | |
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| | | (Unaudited) | | | | | | | | | | | |
| Net Asset Value, Beginning of Period | | $ | 14.39 | | | $ | 14.90 | | | $ | 12.14 | | | $ | 9.41 | | | $ | 17.86 | | | $ | 16.69 | | |
| Income From Investment Operations: | |
Net Investment Income (Loss)‡ | | | .06 | | | | .03 | | | | .05 | | | | .00 | | | | .06 | | | | .06 | | |
Net Gains or Losses on Securities (both realized and unrealized) | | | .44 | | | | (.50 | ) | | | 2.71 | | | | 2.94 | | | | (7.06 | ) | | | 1.17 | | |
| Total From Investment Operations | | | .50 | | | | (.47 | ) | | | 2.76 | | | | 2.94 | | | | (7.00 | ) | | | 1.23 | | |
| Less Distributions From: | |
| Net Investment Income | | | — | | | | (.04 | ) | | | (.00 | ) | | | (.21 | ) | | | (.29 | ) | | | (.00 | ) | |
| Net Capital Gains | | | — | | | | — | | | | — | | | | — | | | | (1.16 | ) | | | (.06 | ) | |
| Total Distributions | | | — | | | | (.04 | ) | | | (.00 | ) | | | (.21 | ) | | | (1.45 | ) | | | (.06 | ) | |
| Net Asset Value, End of Period | | $ | 14.89 | | | $ | 14.39 | | | $ | 14.90 | | | $ | 12.14 | | | $ | 9.41 | | | $ | 17.86 | | |
Total Return†† | | | 3.47 | %** | | | (3.15 | )% | | | 22.76 | % | | | 31.31 | % | | | (39.43 | )% | | | 7.37 | % | |
| Ratios/Supplemental Data | |
| Net Assets, End of Period (in millions) | | $ | 72.2 | | | $ | 70.6 | | | $ | 72.9 | | | $ | 58.2 | | | $ | 50.1 | | | $ | 90.2 | | |
Ratio of Gross Expenses to Average Net Assets# | | | 1.29 | %* | | | 1.31 | % | | | 1.33 | % | | | 1.40 | % | | | 1.26 | % | | | 1.16 | % | |
Ratio of Net Expenses to Average Net Assets§ | | | 1.17 | %* | | | 1.17 | % | | | 1.17 | % | | | 1.18 | % | | | 1.17 | % | | | 1.16 | % | |
Ratio of Net Investment Income (Loss) to Average Net Assets | | | .83 | %* | | | .20 | % | | | .39 | % | | | .05 | % | | | .40 | % | | | .37 | % | |
| Portfolio Turnover Rate | | | 14 | %** | | | 20 | % | | | 41 | % | | | 34 | % | | | 41 | % | | | 26 | % | |
See Notes to Financial Highlights
21
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 indicate 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 class actions proceeds listed in Note A-4 had no impact on total return.
# Represents the annualized ratios of net expenses to average daily net assets if Management had not reimbursed certain expenses.
‡ Calculated based on the average number of shares outstanding during each fiscal period.
§ After reimbursement of expenses by Management. The Fund is required to calculate an expense ratio without taking into consideration any expense reductions related to expense offset arrangements. Had the Fund not received expense reductions related to expense offset arrangements, the annualized ratios of net expenses to average daily net assets would have been:
| | | Six Months Ended June 30, | | Year Ended December 31, | |
| | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
| Socially Responsive Portfolio Class I | | | 1.04 | % | | | 1.06 | % | | | 1.08 | % | | | 1.15 | % | | | .92 | % | | | .92 | % | |
| Socially Responsive Portfolio Class S | | | 1.17 | % | | | 1.17 | % | | | 1.17 | % | | | 1.18 | % | | | 1.17 | % | | | 1.17 | % | |
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 | |
| Socially Responsive Portfolio Class S | | | 1.16 | % | |
* 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
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 6, 2012
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 6, 2012
| By: | /s/ John M. McGovern | |
| | John M. McGovern |
| | Treasurer, Principal Financial |
| | and Accounting Officer |
| | |
Date: September 6, 2012
