Arthur C. Delibert, Esq.
1601 K Street, N.W.
Washington, D.C. 20006-1600
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, as amended (“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 the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549 0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. §3507.
Item 1. Report to Shareholders.
Following are copies of the semi-annual reports transmitted to shareholders pursuant to Rule 30e-1 under the Act.
Neuberger Berman
Advisers Management Trust
Guardian Portfolio
I Class Shares
S Class Shares
Semi-Annual Report
June 30, 2017
Guardian Portfolio Commentary
The Neuberger Berman Advisers Management Trust Guardian Portfolio Class I generated a total return of 12.69% for the six months ended June 30, 2017, outperforming the 9.34% return of its benchmark, the S&P 500® Index (Index), for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
Despite periods of volatility, the U.S. stock market generated strong results during the reporting period. Investor sentiment was buoyed by solid corporate profits and improving global fundamentals. These factors eclipsed concerns whether the Trump administration's growth initiatives would be scaled back or delayed. In addition, the market overcame a number of potential headwinds, including two interest rate hikes by the U.S. Federal Reserve (Fed) and several geopolitical events. The overall U.S. stock market, as measured by the Index, gained 9.34% for the six months ended June 30, 2017. This marked the Index's best first half of the year advance since 2013.
The Fund's outperformance during the reporting period was largely driven by stock selection. The Fund posted positive relative returns in 10 of the 11 sectors within the Index during the period. In particular, holdings in the Industrials, Telecommunication Services and Energy sectors added the most relative value. Individual stocks that contributed the most to the Fund's performance included Whole Foods Market, Inc., Brookfield Infrastructure Partners L.P., Apple, Inc., IHS Markit Ltd. and Amazon.com, Inc. The Fund's holdings in the Health Care sector detracted from relative results. The Fund's positions in Tractor Supply Co., Schlumberger NV, Kroger Co. (position was sold prior to the period end), TripAdvisor, Inc. and Conagra Brands, Inc. were the largest headwinds for performance.
Sector allocation, overall, also contributed to relative performance during the period. Underweights to the Telecommunication Services and Energy sectors were the most additive for relative performance. In contrast, underweights in Information Technology and Health Care detracted from relative results.
With the market currently acting as though it anticipates positive earnings growth, our long term outlook for U.S. equities remains constructive. Despite near term uncertainty as to the implementation of the Trump administration's policies, we believe the net impact should be positive over the long-term. The corporate environment has continued to be supported by solid cash flow generation, strong balance sheets and attractive returns on capital. While the cadence of growth is uncertain in the near term, we believe that the prospect of higher after-tax returns, coupled with less regulation and pronounced fiscal measures, could lead to greater earnings growth in 2018. In our opinion, a key to the cyclical upswing will be the confidence of households and firms in their future prospects.
We remain mindful that our constructive view for U.S. equities is not without risks. Despite generally positive U.S. and global economic data, we believe that the Fed's shift from highly transparent to hazy fiscal policy may present headline risks and spikes in volatility. We believe there may be disconnect between the Fed's policy, rhetoric and implementation. We will be closely watching the administration's actions on global trade as protectionist policies may impede economic growth or spur a trade war, both of which would hurt risk assets. Ultimately, we remain vigilant and continue to monitor key data points as we assess whether any geopolitical disruption, however small, could spill over into global markets.
Sincerely,
CHARLES KANTOR
PORTFOLIO MANAGER
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund's portfolio manager. The opinions are as of the date of this report, and are subject to change without notice.
1
SECTOR ALLOCATION
(as a % of Total Investments*) | |
Consumer Discretionary | | | 15.9 | % | |
Consumer Staples | | | 9.4 | | |
Energy | | | 5.7 | | |
Financials | | | 10.1 | | |
Health Care | | | 12.7 | | |
Industrials | | | 16.6 | | |
Information Technology | | | 20.6 | | |
Materials | | | 2.8 | | |
Real Estate | | | 1.8 | | |
Utilities | | | 4.3 | | |
Short-Term Investment | | | 0.0 | | |
Total | | | 99.9 | % | |
* Derivatives, if any, are excluded from this chart.
PERFORMANCE HIGHLIGHTS4
| | Inception | | Six Month
Period Ended | | Average Annual Total Return
Ended 06/30/2017 | |
| | Date | | 06/30/2017 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund | |
Guardian Portfolio
Class I | | 11/03/1997 | | | 12.69 | % | | | 19.25 | % | | | 13.37 | % | | | 6.24 | % | | | 7.81 | % | |
Guardian Portfolio
Class S2 | | 08/02/2002 | | | 12.15 | % | | | 18.74 | % | | | 13.16 | % | | | 6.05 | % | | | 7.65 | % | |
| S&P 500® Index1,3 | | | | | 9.34 | % | | | 17.90 | % | | | 14.63 | % | | | 7.18 | % | | | 7.07 | % | |
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 http://www.nb.com/amtportfolios/performance.
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 Fund distributions or on the redemption of Fund 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 Fund.
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 Investment Advisers 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 Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2016 were 1.22% and 1.47% for Class I and Class S shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratio was 1.26% for Class S shares after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended June 30, 2017 can be found in the Financial Highlights section of this report.
2
1 The date used to calculate Life of Fund performance for the index is November 3, 1997, the inception date of the oldest share class.
2 Performance shown prior to August 2, 2002 for Class S shares is that of Class I shares, which has lower expenses and correspondingly higher returns than Class S shares.
3 The S&P 500® Index is a float-adjusted market capitalization-weighted index that focuses on the large-cap segment of the U.S. equity market, and includes a significant portion of the total value of the market. Please note that the index described in this report does not take into account any fees, expenses or tax consequences of investing in the individual securities that it tracks, and that individuals cannot invest directly in any index. Data about the performance of an index are prepared or obtained by Neuberger Berman Investment Advisers LLC* ("Management") and reflect the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and generally does not invest in all securities included in a described index.
4 The Fund had a policy of investing mainly in large-cap stocks prior to December 2002. Its performance prior to that date might have been different if current policies had been in effect.
* On January 1, 2016, Neuberger Berman Management LLC ("NBM") transferred to Neuberger Berman Fixed Income LLC ("NBFI") its rights and obligations pertaining to all services it provided to any Fund under any investment management, investment sub-advisory, and/or administration agreement, as applicable (the "Agreements"). Following such transfer, NBFI was renamed Neuberger Berman Investment Advisers LLC ("NBIA" or "Management"). Following the consolidation, the investment professionals of NBM who provided services to the Fund under the Agreements continue to provide the same services, except that they provide those services in their new capacities as investment professionals of NBIA. Further, the consolidation did not result in any change in the investment processes employed by the Fund, the nature or level of services provided to the Fund, or the fees the Fund pays under its Agreements.
On July 1, 2016, NBM was reorganized into Neuberger Berman LLC ("Neuberger Berman") (the "Reorganization"). Upon the completion of the Reorganization, Neuberger Berman assumed all rights and obligations pertaining to all services NBM provided to the Fund under any distribution agreement or distribution and services agreement (the "Agreements") or plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, (the "Plans"). Accordingly, after the Reorganization, Neuberger Berman became the Fund's distributor and the services previously provided by NBM under the Agreements and Plans are provided by Neuberger Berman.
Following the Reorganization, the employees of NBM provide the same services to the Fund under the Agreements and Plans, except that they provide those services in their capacities as employees of Neuberger Berman. Further, the Reorganization did not result in any change in the nature or level of services provided to the Fund, or the fees, if any, the Fund pays under the Agreements or the Plans.
On January 1, 2017, the Fund's distributor, Neuberger Berman, changed its name to Neuberger Berman BD LLC.
The investments for the Fund are managed by the same portfolio manager(s) who manage(s) one or more other registered funds that have names, investment objectives and investment styles that are similar to those of the Fund. You should be aware that the Fund is likely to differ from those other mutual fund(s) in size, cash flow pattern and tax matters. Accordingly, the holdings and performance of the Fund can be expected to vary from those of the other mutual fund(s).
Shares of the separate Neuberger Berman Advisers Management Trust Portfolios, including the Fund, are not available to the general public. Shares of the Fund may be purchased only by life insurance companies to be held in their separate accounts, which 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 Fund. This report is prepared for the general information of shareholders and is not an offer of shares of the Fund. Shares are sold only through the currently effective prospectus, which must precede or accompany this report.
The "Neuberger Berman" name and logo and "Neuberger Berman Investment Advisers LLC" name are registered service marks of Neuberger Berman Group LLC. The individual Fund name in this piece is either a service marks or a registered service mark of Neuberger Berman Investment Advisers LLC, an affiliate of Neuberger Berman BD LLC, distributor, member FINRA.
© 2017 Neuberger Berman BD 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 U.S. 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, 2017 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 indicated. 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.
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST GUARDIAN PORTFOLIO
Actual | | Beginning Account
Value
1/1/17 | | Ending Account
Value
6/30/17 | | Expenses Paid
During the Period
1/1/17-6/30/17 | | Expense
Ratio*** | |
Class I | | $ | 1,000.00 | | | $ | 1,126.90 | | | $ | 4.22 | * | | | 0.80 | % | |
Class S | | $ | 1,000.00 | | | $ | 1,121.50 | | | $ | 6.63 | * | | | 1.26 | % | |
Hypothetical (5% annual return before expenses) | |
Class I | | $ | 1,000.00 | | | $ | 1,020.83 | | | $ | 4.01 | ** | | | 0.80 | % | |
Class S | | $ | 1,000.00 | | | $ | 1,018.55 | | | $ | 6.31 | ** | | | 1.26 | % | |
* For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical expenses are equal to the annualized expense ratios for each class, multiplied by the average account value over the period (assuming a 5% annual return), multiplied by 181/365 (to reflect the one-half year period shown).
*** Had the Fund not received the Custodian Out-of-Pocket Expenses Refunded (see Note F of Notes to Financial Statements), the expense ratio would have been 1.18% and 1.26% for Class I and Class S, respectively. Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in these ratios on a non-annualized basis.
4
Schedule of Investments Guardian Portfolio (Unaudited) June 30, 2017
NUMBER OF SHARES | | | | VALUE | |
Common Stocks 99.0% | | | |
Aerospace & Defense 4.5% | | | |
| | 7,960 | | | General Dynamics Corp. | | $ | 1,576,876 | | |
| | 6,650 | | | Raytheon Co. | | | 1,073,842 | | |
| | | | 2,650,718 | | |
Airlines 2.1% | | | |
| | 22,800 | | | Delta Air Lines, Inc. | | | 1,225,272 | | |
Banks 4.4% | | | |
| | 16,620 | | | JPMorgan Chase & Co. | | | 1,519,068 | | |
| | 20,430 | | | U.S. Bancorp | | | 1,060,726 | | |
| | | | 2,579,794 | | |
Beverages 1.8% | | | |
| | 9,100 | | | PepsiCo, Inc. | | | 1,050,959 | | |
Biotechnology 3.3% | | | |
| | 8,510 | | | Celgene Corp. | | | 1,105,194 | * | |
| | 11,785 | | | Gilead Sciences, Inc. | | | 834,142 | | |
| | | | 1,939,336 | | |
Capital Markets 5.7% | | | |
| | 1,955 | | | BlackRock, Inc. | | | 825,811 | | |
| | 36,600 |
| | Brookfield Asset
Management, Inc. Class A | | | 1,435,086
| | |
| | 8,925 | | | CME Group, Inc. | | | 1,117,767 | | |
| | | | 3,378,664 | | |
Chemicals 2.8% | | | |
| | 11,075 | | | Ashland Global Holdings, Inc. | | | 729,953 | | |
| | 2,400 | | | PPG Industries, Inc. | | | 263,904 | | |
| | 27,630 | | | Valvoline, Inc. | | | 655,384 | | |
| | | | 1,649,241 | | |
Electric Utilities 3.0% | | | |
| | 42,990 |
| | Brookfield Infrastructure
Partners LP | | | 1,758,721
| | |
Electronic Equipment, Instruments &
Components 2.5% | | | |
| | 23,400 | | | CDW Corp. | | | 1,463,202 | | |
Energy Equipment & Services 1.3% | | | |
| | 11,400 | | | Schlumberger Ltd. | | | 750,576 | | |
Equity Real Estate Investment Trust 1.8% | | | |
| | 4,610 | | | SBA Communications Corp. | | | 621,889 | * | |
| | 13,500 | | | Weyerhaeuser Co. | | | 452,250 | | |
| | | | 1,074,139 | | |
NUMBER OF SHARES | | | | VALUE | |
Food & Staples Retailing 5.9% | | | |
| | 5,500 | | | Costco Wholesale Corp. | | $ | 879,615 | | |
| | 14,195 | | | CVS Health Corp. | | | 1,142,130 | | |
| | 35,400 | | | Whole Foods Market, Inc. | | | 1,490,694 | | |
| | | | 3,512,439 | | |
Food Products 1.7% | | | |
| | 27,460 | | | Conagra Brands, Inc. | | | 981,970 | | |
Health Care Equipment & Supplies 3.0% | | | |
| | 27,250 | | | Dentsply Sirona, Inc. | | | 1,766,890 | | |
Health Care Providers & Services 4.9% | | | |
| | 24,590 | | | DaVita, Inc. | | | 1,592,449 | * | |
| | 7,120 | | | UnitedHealth Group, Inc. | | | 1,320,190 | | |
| | | | 2,912,639 | | |
Hotels, Restaurants & Leisure 2.7% | | | |
| | 6,850 | | | McDonald's Corp. | | | 1,049,146 | | |
| | 9,600 | | | Starbucks Corp. | | | 559,776 | | |
| | | | 1,608,922 | | |
Industrial Conglomerates 1.5% | | | |
| | 4,300 | | | 3M Co. | | | 895,217 | | |
| Insurance 0.0%(a) | | | |
| | 1 | | | Trisura Group Ltd. | | | 16 | * | |
Internet & Catalog Retail 5.9% | | | |
| | 1,365 | | | Amazon.com, Inc. | | | 1,321,320 | * | |
| | 10,825 | | | Expedia, Inc. | | | 1,612,383 | | |
| | 290 | | | Priceline Group, Inc. | | | 542,451 | * | |
| | | | 3,476,154 | | |
Internet & Direct Marketing Retail 0.6% | | | |
| | 9,770 | | | TripAdvisor, Inc. | | | 373,214 | * | |
Internet Software & Services 8.0% | | | |
| | 2,150 | | | Alphabet, Inc. Class A | | | 1,998,812 | * | |
| | 40,995 | | | eBay, Inc. | | | 1,431,546 | * | |
| | 8,735 | | | Facebook, Inc. Class A | | | 1,318,810 | * | |
| | | | 4,749,168 | | |
IT Services 2.4% | | | |
| | 14,950 | | | Visa, Inc. Class A | | | 1,402,011 | | |
Machinery 1.7% | | | |
| | 27,130 | | | Allison Transmission
Holdings, Inc. | | | 1,017,646 | | |
See Notes to Financial Statements
5
Schedule of Investments Guardian Portfolio (Unaudited) (cont'd)
NUMBER OF SHARES | | | | VALUE | |
Multi-Utilities 1.3% | | | |
| | 12,805 | | | WEC Energy Group, Inc. | | $ | 785,971 | | |
Oil, Gas & Consumable Fuels 4.5% | | | |
| | 36,930 | | | Cabot Oil & Gas Corp. | | | 926,204 | | |
| | 43,000 | | | Enbridge, Inc. | | | 1,711,830 | | |
| | | | 2,638,034 | | |
Pharmaceuticals 0.6% | | | |
| | 6,740 | | | Bristol-Myers Squibb Co. | | | 375,553 | | |
Professional Services 4.7% | | | |
| | 32,000 | | | IHS Markit Ltd. | | | 1,409,280 | * | |
| | 16,140 | | | Verisk Analytics, Inc. | | | 1,361,732 | * | |
| | | | 2,771,012 | | |
Road & Rail 2.0% | | | |
| | 8,895 | | | CSX Corp. | | | 485,311 | | |
| | 6,000 | | | Norfolk Southern Corp. | | | 730,200 | | |
| | | | 1,215,511 | | |
Software 4.8% | | | |
| | 27,200 | | | Microsoft Corp. | | | 1,874,896 | | |
| | 11,015 | | | salesforce.com, inc. | | | 953,899 | * | |
| | | | 2,828,795 | | |
Specialty Retail 4.9% | | | |
| | 9,700 | | | Home Depot, Inc. | | | 1,487,980 | | |
| | 8,650 | | | TJX Cos., Inc. | | | 624,270 | | |
| | 14,000 | | | Tractor Supply Co. | | | 758,940 | | |
| | | | 2,871,190 | | |
NUMBER OF SHARES | | | | VALUE | |
Technology Hardware, Storage &
Peripherals 2.9% | | | |
| | 12,030 | | | Apple, Inc. | | $ | 1,732,561 | | |
Textiles, Apparel & Luxury Goods 1.8% | | | |
| | 9,400 | | | PVH Corp. | | | 1,076,300 | | |
| | | | | Total Common Stocks
(Cost $47,870,683) | | | 58,511,835
| | |
Preferred Stock 0.8% | | | |
Health Care 0.8% | | | |
| 54,100
| | | Moderna Therapeutics Ser. F
(Cost $474,998) | | | 474,998
| (b)(d) | |
| Short-Term Investment 0.0%(a) | | | |
| Investment Company 0.0%(a) | | | |
| 1
| | | State Street Institutional
Treasury Money Market Fund | | | 1
| (c) | |
| | | | | Premier Class, 0.83% (Cost $1) | | | | | |
| | | | | Total Investments 99.8%
(Cost $48,345,682) | | | 58,986,834
| | |
| | | | | Other Assets Less Liabilities 0.2% | | | 139,995 | | |
| | | | | Net Assets 100.0% | | $ | 59,126,829 | | |
* Non-income producing security.
(a) Represents less than 0.05% of net assets.
(b) Security fair valued as of June 30, 2017 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at June 30, 2017, amounted to $474,998, which represents 0.8% of net assets of the Fund.
(c) Represents 7-day effective yield as of June 30, 2017.
(d) This security has been deemed by the investment manager to be illiquid, and is subject to restrictions on resale. At June 30, 2017, this security amounted to $474,998, which represents 0.8% of net assets of the Fund.
See Notes to Financial Statements
6
Schedule of Investments Guardian Portfolio (Unaudited) (cont'd)
Restricted Security | | Acquisition
Date | | Acquisition
Cost | | Acquisition Cost
Percentage of
Net Assets | | Value as of
6/30/2017 | | Fair Value
Percentage of
Net Assets as
of 6/30/2017 | |
Moderna Therapeutics (Ser. F
Preferred Shares) | | 8/10/2016 | | $ | 474,998 | | | | 0.8 | % | | $ | 474,998 | | | | 0.8 | % | |
Derivative Instruments
Written option contracts ("options written") | |
At June 30, 2017, the Fund did not have any outstanding options written.
Options written for the Fund for the six months ended June 30, 2017 were as follows:
| | | Number of
Contracts | | Premium
Received | |
Outstanding 12/31/2016 | | | 30 | | | $ | 2,651 | | |
Options written | | | — | | | | — | | |
Options expired | | | (30 | ) | | | (2,651 | ) | |
Options exercised | | | — | | | | — | | |
Options closed | | | — | | | | — | | |
Outstanding 6/30/2017 | | | — | | | $ | — | | |
For the six months ended June 30, 2017, the Fund had an average market value of $1,474 in options purchased contracts, and $(396) in options written, respectively.
See Notes to Financial Statements
7
Schedule of Investments Guardian Portfolio (Unaudited) (cont'd)
The following is a summary, categorized by Level (see Note A of Notes to Financial Statements), of inputs used to value the Fund's investments as of June 30, 2017:
Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3(b) | | Total | |
Investments: | |
Common Stocks(a) | | $ | 58,511,835 | | | $ | — | | | $ | — | | | $ | 58,511,835 | | |
Preferred Stock(a) | | | — | | | | — | | | | 474,998 | | | | 474,998 | | |
Short-Term Investment | | | — | | | | 1 | | | | — | | | | 1 | | |
Total Investments | | $ | 58,511,835 | | | $ | 1 | | | $ | 474,998 | | | $ | 58,986,834 | | |
(a) The Schedule of Investments provides information on the industry categorization for the portfolio.
(b) The following is a reconciliation between the beginning and ending balances of investments in which unobservable inputs (Level 3) were used in determining value:
(000's omitted) | | Beginning
balance,
as of
1/1/2017 | | Accrued
discounts/
(premiums) | | Realized
gain/(loss) | | Change in
unrealized
appreciation/
(depreciation) | | Purchases | | Sales | | Transfers into
Level 3 | | Transfers out
of Level 3 | | Balance,
as of
6/30/2017 | | Net change in
unrealized
appreciation/
(depreciation)
from
investments
still held as of
6/30/2017 | |
Investments in
Securities: | |
Preferred Stock
Health Care | | $ | 474,998 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 474,998 | | | $ | — | | |
Total | | $ | 474,998 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 474,998 | | | $ | — | | |
The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of June 30, 2017:
Asset class | | Fair value
at 6/30/2017 | | Valuation
techniques | | Unobservable
input | | Amount or
range
per unit | | Input value
per unit | | Impact to
valuation
from
decrease
in input(a) | |
Preferred Stock | | $ | 474,998 | | | Market Transaction Method | | Transaction Price | | $ | 8.78 | | | $ | 8.78 | | | Decrease | |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from a decrease in the corresponding input. An increase to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
As of the six months ended June 30, 2017, no securities were transferred from one level (as of December 31, 2016) to another.
See Notes to Financial Statements
8
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | GUARDIAN
PORTFOLIO | |
| | | June 30, 2017 | |
Assets | |
Investments in securities, at value* (Note A)—see Schedule of Investments: | |
Unaffiliated issuers | | $ | 58,986,834 | | |
Dividends and interest receivable | | | 54,862 | | |
Receivable for securities sold | | | 670,060 | | |
Receivable for Fund shares sold | | | 400 | | |
Prepaid expenses and other assets | | | 2,003 | | |
Total Assets | | | 59,714,159 | | |
Liabilities | |
Payable to investment manager (Note B) | | | 26,997 | | |
Due to custodian | | | 433,619 | | |
Payable for Fund shares redeemed | | | 51,743 | | |
Payable to administrator—net (Note B) | | | 22,039 | | |
Payable to trustees | | | 10,365 | | |
Accrued expenses and other payables | | | 42,567 | | |
Total Liabilities | | | 587,330 | | |
Net Assets | | $ | 59,126,829 | | |
Net Assets consist of: | |
Paid-in capital | | $ | 38,309,365 | | |
Undistributed net investment income/(loss) | | | 371,283 | | |
Accumulated net realized gains/(losses) on investments | | | 9,806,151 | | |
Net unrealized appreciation/(depreciation) in value of investments | | | 10,640,030 | | |
Net Assets | | $ | 59,126,829 | | |
Net Assets | |
Class I | | $ | 11,685,282 | | |
Class S | | | 47,441,547 | | |
Shares Outstanding ($.001 par value; unlimited shares authorized) | |
Class I | | | 707,310 | | |
Class S | | | 2,903,823 | | |
Net Asset Value, offering and redemption price per share | |
Class I | | $ | 16.52 | | |
Class S | | | 16.34 | | |
*Cost of Investments | | | $48,345,682 | | |
See Notes to Financial Statements
9
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | GUARDIAN
PORTFOLIO | |
| | | For the
Six Months Ended
June 30, 2017 | |
Investment Income: | |
Income (Note A): | |
Dividend income—unaffiliated issuers | | $ | 505,218 | | |
Interest income—unaffiliated issuers | | | 7,314 | | |
Foreign taxes withheld (Note A) | | | (9,978 | ) | |
Total income | | $ | 502,554 | | |
Expenses: | |
Investment management fees (Note B) | | | 161,987 | | |
Administration fees (Note B): | |
Class I | | | 17,909 | | |
Class S | | | 70,448 | | |
Distribution fees (Note B): | |
Class S | | | 58,708 | | |
Audit fees | | | 23,088 | | |
Custodian and accounting fees | | | 20,532 | | |
Insurance expense | | | 1,070 | | |
Legal fees | | | 11,268 | | |
Shareholder reports | | | 17,499 | | |
Trustees' fees and expenses | | | 21,506 | | |
Interest expense | | | 675 | | |
Miscellaneous | | | 1,533 | | |
Total expenses | | | 406,223 | | |
Expenses reimbursed by Management (Note B) | | | (40,673 | ) | |
Custodian out-of-pocket expenses refunded (Note F) | | | (45,887 | ) | |
Total net expenses | | | 319,663 | | |
Net investment income/(loss) | | $ | 182,891 | | |
Realized and Unrealized Gain/(Loss) on Investments (Note A): | |
Net realized gain/(loss) on: | |
Sales of investment securities of unaffiliated issuers | | | 2,780,665 | | |
Foreign currency | | | (1,135 | ) | |
Option contracts written | | | 2,651 | | |
Change in net unrealized appreciation/(depreciation) in value of: | |
Unaffiliated investment securities | | | 3,877,603 | | |
Foreign currency | | | 2,915 | | |
Option contracts written | | | (1,976 | ) | |
Net gain/(loss) on investments | | | 6,660,723 | | |
Net increase/(decrease) in net assets resulting from operations | | $ | 6,843,614 | | |
See Notes to Financial Statements
10
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | GUARDIAN PORTFOLIO | |
| | | Six Months Ended
June 30,
2017
(Unaudited) | | Year Ended
December 31,
2016
| |
Increase/(Decrease) in Net Assets: | |
From Operations (Note A): | |
Net investment income/(loss) | | $ | 182,891 | | | $ | 191,331 | | |
Net realized gain/(loss) on investments | | | 2,782,181 | | | | 7,499,191 | | |
Change in net unrealized appreciation/(depreciation) of investments | | | 3,878,542 | | | | (2,784,762 | ) | |
Net increase/(decrease) in net assets resulting from operations | | | 6,843,614 | | | | 4,905,760 | | |
Distributions to Shareholders From (Note A): | |
Net investment income: | |
Class I | | | — | | | | (61,819 | ) | |
Class S | | | — | | | | (181,616 | ) | |
Net realized gain on investments: | |
Class I | | | — | | | | (2,128,017 | ) | |
Class S | | | — | | | | (8,809,885 | ) | |
Total distributions to shareholders | | | — | | | | (11,181,337 | ) | |
From Fund Share Transactions (Note D): | |
Proceeds from shares sold: | |
Class I | | | 833,378 | | | | 1,079,417 | | |
Class S | | | 147,855 | | | | 351,280 | | |
Proceeds from reinvestment of dividends and distributions: | |
Class I | | | — | | | | 2,189,836 | | |
Class S | | | — | | | | 8,991,501 | | |
Payments for shares redeemed: | |
Class I | | | (1,991,510 | ) | | | (2,430,602 | ) | |
Class S | | | (4,314,435 | ) | | | (9,412,883 | ) | |
Net increase/(decrease) from Fund share transactions | | | (5,324,712 | ) | | | 768,549 | | |
Net Increase/(Decrease) in Net Assets | | | 1,518,902 | | | | (5,507,028 | ) | |
Net Assets: | |
Beginning of period | | | 57,607,927 | | | | 63,114,955 | | |
End of period | | $ | 59,126,829 | | | $ | 57,607,927 | | |
Undistributed net investment income/(loss) at end of period | | $ | 371,283 | | | $ | 188,392 | | |
See Notes to Financial Statements
11
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 an Amended and Restated Trust Instrument dated March 27, 2014. The Trust is currently comprised of eight separate operating series (each individually a "Fund," 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. Neuberger Berman Advisers Management Trust Guardian Portfolio (the "Fund") currently offers Class I and Class S shares. The Trust's Board of Trustees (the "Board") may establish additional series or classes of shares without the approval of shareholders.
The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946 "Financial Services—Investment Companies."
The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires Neuberger Berman Investment Advisers LLC ("NBIA" or "Management") to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Shares of the Fund are not available to the general public and may be purchased only by life insurance companies to serve as an investment vehicle for premiums paid under their variable annuity and variable life insurance contracts and to certain qualified pension and other retirement plans.
2 Portfolio valuation: In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurement" ("ASC 820"), all investments held by the Fund are carried at the value that 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 observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3—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 preferred stocks, for which market quotations are readily available, is generally determined by Management by obtaining valuations from independent pricing services 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 at the NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most recently reported price as of
12
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 sale of a security on a particular day, the independent pricing services may value the security based on market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in non-exchange traded investment companies are valued using the respective 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, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not readily available, the security is valued using methods the Board has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Numerous factors may be considered when determining the fair value of a security based on Level 2 or Level 3 inputs, including available analyst, media or other reports, securities within the same industry with recent highly correlated performance, trading in futures or American Depositary Receipts ("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.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are normally translated into U.S. dollars using the exchange rate as of 4:00 p.m. Eastern Time, on days the NYSE is open for business 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, 2017 was $10,463.
5 Income tax information: The Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of the Fund to continue to qualify for treatment as a regulated investment company ("RIC") by complying with the requirements of the U.S. Internal Revenue Code applicable to RICs and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent the Fund distributes substantially all of its net investment income and net realized capital gains 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
13
filed for the tax years for which the applicable statutes of limitations have not yet expired. As of June 30, 2017, the Fund did not have any unrecognized tax positions.
At June 30, 2017, the cost of investments on a U.S. federal income tax basis was $48,401,957. Gross unrealized appreciation of investments was $11,628,288 and gross unrealized depreciation of investments was $1,043,411 resulting in net unrealized appreciation of $10,584,877 based on cost for U.S. federal income tax purposes.
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. The Fund may also utilize earnings and profits distributed to shareholders on redemption of their shares as a part of the dividends-paid deduction for income tax purposes.
As determined on December 31, 2016, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences are attributed to the tax treatment of foreign currency gains and losses. 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, 2016, the Fund recorded the following permanent reclassifications:
| Paid-in Capital | | Undistributed
Net Investment
Income/(Loss) | | Accumulated
Net Realized
Gains/(Losses)
on Investments | |
| $ | — | | | $ | (2,873 | ) | | $ | 2,873 | | |
The tax character of distributions paid during the years ended December 31, 2016 and December 31, 2015 was as follows:
Distributions Paid From: | |
Ordinary Income | | Long-Term Capital Gain | | Total | |
| 2016 | | 2015 | | 2016 | | 2015 | | 2016 | | 2015 | |
| $ | 243,435 | | | $ | 634,403 | | | $ | 10,937,902 | | | $ | 17,210,541 | | | $ | 11,181,337 | | | $ | 17,844,944 | | |
As of December 31, 2016, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed
Ordinary
Income | | Undistributed
Long-Term
Capital Gain | | Unrealized
Appreciation/
(Depreciation) | | Loss
Carryforwards
and Deferrals | | Other
Temporary
Differences | | Total | |
| $ | 394,653 | | | $ | 6,890,385 | | | $ | 6,688,812 | | | $ | — | | | $ | — | | | $ | 13,973,850 | | |
The temporary differences between book basis and tax basis distributable earnings are primarily due to losses disallowed and recognized on wash sales.
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, are generally 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 real estate investment trust ("REIT") distributions and other income it receives, less operating expenses. The distributions the Fund receives from REITs are generally composed of income, capital gains, and/or return of REIT capital, but the REITs do not report this information to the Fund until the following calendar year. At June 30, 2017, the Fund estimated these amounts for the period January 1, 2017 to June 30, 2017 within the financial statements because the 2017 information is not available from the REITs until after the Fund's fiscal year-end. All estimates are based upon REIT information sources available to the Fund together with actual IRS Forms 1099-DIV received to date. For the year ended December 31, 2016, the character of distributions paid to shareholders disclosed within the Statements of Changes
14
in Net Assets is based on estimates made at that time. 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 re-characterized as return of capital and/or capital gain. After all applicable REITs have informed the Fund of the actual breakdown of distributions paid to the Fund during its fiscal year, estimates previously recorded are adjusted on the books of the Fund to reflect actual results. As a result, the composition of the Fund's distributions as reported herein may differ from the final composition determined after calendar year-end and reported to Fund shareholders on IRS Form 1099-DIV.
7 Foreign taxes: Foreign taxes withheld, if any, represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds within the complex of related investment companies. Expenses directly attributable to a Fund are charged to that Fund. 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 among the classes based upon the relative net assets of each class.
9 Investments in foreign securities: Investing in foreign securities may involve 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 Unaffiliated investment company securities and exchange-traded funds: The Fund may invest in shares of other registered investment companies, including exchange-traded funds ("ETFs"), within the limitations prescribed by the 1940 Act or pursuant to an exemptive order from the U.S. Securities and Exchange Commission ("SEC") that permits the Fund to invest in both affiliated and unaffiliated investment companies, including exchange-traded funds, in excess of the limits in Section 12(d)(1)(A) of the 1940 Act, as amended, subject to the terms and conditions of such order. Some ETFs seek to track the performance of a particular market index. These indices include both broad-based market indices and more narrowly-based indices, including those relating to particular sectors, markets, regions or industries. However, some ETFs have an actively-managed investment objective. ETF shares are traded like traditional equity securities on a national securities exchange or NASDAQ. A Fund will indirectly bear its proportionate share of any management fees and other expenses paid by such other investment companies, which will increase expenses and decrease returns.
11 Derivative instruments: The Fund's use of derivatives during the six months ended June 30, 2017, is described below. Please see the Schedule of Investments for the Fund's open position in derivatives at June 30, 2017. 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.
15
Options: During the six months ended June 30, 2017, the Fund used options written to generate incremental returns and to reduce risks.
Premiums received by the Fund upon writing a call option or a put option are recorded in the liability section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the liability is eliminated.
When the Fund writes a call option on an underlying asset it does not own, its exposure on such an option is theoretically unlimited. When writing a covered call option, the Fund, in return for the premium, gives up the opportunity for profit from a price increase in the underlying security above the exercise price, but conversely retains the risk of loss should the price of the security decline. When writing a put option, the Fund, in return for the premium, takes the risk that it must purchase the underlying security at a price that may be higher than the current market price of the security. If a covered call or put option that the Fund has written expires unexercised, the Fund will realize a gain in the amount of the premium. All securities covering outstanding written options are held in escrow by the custodian bank.
Premiums paid by the Fund upon purchasing a call or put option are recorded in the asset section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, a Fund realizes a gain or loss and the asset is eliminated.
For purchased call options, the Fund's loss is limited to the amount of the option premium paid.
During the six months ended June 30, 2017, the Fund used purchased option contracts "options purchased" to gain exposure more efficiently than through a direct purchase of the underlying security, to gain exposure to securities, markets, sectors or geographical areas, or to manage or adjust the risk profile of the Fund or the risk of individual positions.
The impact of the use of these derivative instruments on the Statement of Operations during the six months ended June 30, 2017, was as follows:
Realized Gain/(Loss)
Derivative Type | | Statement of
Operations Location | | Equity Risk | | Total | |
Options purchased | | Net realized gain/(loss) on:
sales of investment securities
of unaffiliated issuers | | $ | (1,894 | ) | | $ | (1,894 | ) | |
Options written | | Net realized gain/(loss) on:
option contracts written | | | 2,651 | | | | 2,651 | | |
Total Realized Gain/(Loss) | | | | $ | 757 | | | $ | 757 | | |
Change in Appreciation/(Depreciation)
Derivative Type | | Statement of
Operations Location | | Equity Risk | | Total | |
Options purchased | | Change in net unrealized
appreciation/(depreciation)
in value of:
unaffiliated investment
securities | | $ | (11 | ) | | $ | (11 | ) | |
Options written | | Change in net unrealized
appreciation/(depreciation)
in value of:
option contracts written | | | (1,976 | ) | | | (1,976 | ) | |
Total Change in
Appreciation/(Depreciation) | | | | $ | (1,987 | ) | | $ | (1,987 | ) | |
16
The Fund adopted the provisions of Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. Pursuant to ASU 2011-11, an entity is required to disclose both gross and net information for assets and liabilities related to derivatives, repurchase and reverse repurchase agreements, and securities lending and securities borrowing transactions that are eligible for offset or subject to an enforceable master netting or similar agreement. At June 30, 2017, the Fund had no derivatives eligible for offset or subject to an enforceable master netting or similar agreement.
12 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers ("Officers") and trustees ("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 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—Investment Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:
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, 2017, the investment 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.
Neuberger Berman BD LLC (the "Distributor") is the Fund's "principal underwriter" within the meaning of the 1940 Act. It acts as agent in arranging for the sale of the Fund's Class I shares without sales commission or other compensation and bears all advertising and promotion expenses incurred in the sale of those shares. The Board adopted a non-fee distribution plan for the Fund's Class I. The Board has adopted a distribution and shareholder services plan (the "Plan") for Class S shares pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that, as compensation for administrative and other services related to the sale and distribution of Class S, and ongoing services provided to investors in the class, the Distributor receives from Class S a fee at the annual rate of 0.25% of Class S's average daily net assets. Distributor may pay a portion of the proceeds from the 12b-1 fee to institutions that provide such services, including insurance companies or their affiliates and qualified plan administrators ("intermediaries") for services they provide respecting the Fund to current and prospective variable contract owners and qualified plan participants that invest in the Fund through the intermediaries. 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 class during any year may be more or less than the cost of distribution and other services provided to the 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 Plan complies with those rules.
17
Management has contractually agreed to waive fees and/or reimburse the Fund's Class I and Class S shares so that the total annual operating expenses of those classes do not exceed the expense limitations as detailed in the following table. These undertakings include fees payable to Management for the Fund's Class S shares but exclude such fees payable for the Fund's Class I shares and exclude, for each class, interest (commitment fees relating to borrowings are treated as interest for purposes of this exclusion), taxes, transaction costs, brokerage commissions, dividend and interest expenses relating to short sales, acquired fund fees and expenses, and extraordinary expenses, if any; consequently, net expenses may exceed the contractual expense limitations. The Fund has agreed that each of its classes will repay Management for fees and expenses waived or reimbursed for that class provided that repayment does not cause that class's annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were waived or reimbursed, or the expense limitation in place at the time the Fund repays Management, whichever is lower. Any such repayment must be made within three years after the year in which Management incurred the expense.
During the six months ended June 30, 2017, there was no repayment to Management under its contractual expense limitation.
At June 30, 2017, the Fund's contingent liabilities to Management under its contractual expense limitation were as follows:
| | | | | | | Expenses Reimbursed in
Year Ending December 31, | |
| | | | | | | 2014 | | 2015 | | 2016 | | 2017 | |
| | | | | | | Subject to Repayment until December 31, | |
Class | | Contractual
Expense
Limitation(a) | | Expiration | | 2017 | | 2018 | | 2019 | | 2020 | |
Class I | | | 1.00 | % | | 12/31/20 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | |
Class S | | | 1.25 | % | | 12/31/20 | | | 59,623 | | | | 84,149 | | | | 99,487 | | | | 40,673 | | |
(a) Expense limitation per annum of the respective class' average daily net assets.
Neuberger Berman LLC ("Neuberger") was retained by Management through December 31, 2015, pursuant to a Sub-Advisory Agreement 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. As a result of the entity consolidation described on page 3 of this Semi-Annual Report, the services previously provided by Neuberger under the Sub-Advisory Agreement are now provided by NBIA as of January 1, 2016.
Note C—Securities Transactions:
During the six months ended June 30, 2017, there were purchase and sale transactions of long-term securities (excluding option contracts) of $10,211,274 and $14,891,372, respectively.
During the six months ended June 30, 2017, no brokerage commissions on securities transactions were paid to affiliated brokers.
18
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2017 and for the year ended December 31, 2016 was as follows:
For the Six Months Ended June 30, 2017
| | | Shares Sold | | Shares Issued on
Reinvestment of
Dividends and
Distributions | | Shares
Redeemed | | Total | |
Class I | | | 54,308 | | | | — | | | | (125,159 | ) | | | (70,851 | ) | |
Class S | | | 9,514 | | | | — | | | | (276,427 | ) | | | (266,913 | ) | |
For the Year Ended December 31, 2016
| | | Shares Sold | | Shares Issued on
Reinvestment of
Dividends and
Distributions | | Shares
Redeemed | | Total | |
Class I | | | 65,395 | | | | 154,649 | | | | (149,815 | ) | | | 70,229 | | |
Class S | | | 21,659 | | | | 639,055 | | | | (581,821 | ) | | | 78,893 | | |
Note E—Line of Credit:
At June 30, 2017, the Fund was a participant in a syndicated committed, unsecured $700,000,000 line of credit (the "Credit Facility"), to be used only for temporary or emergency purposes. Series of other investment companies managed by Management also participate in this line of credit on substantially the same terms except that some do not have access to the full amount of the Credit Facility. Interest is charged on borrowings under this Credit Facility at the highest of (a) a federal funds effective rate plus 1.00% per annum, (b) a Eurodollar rate for a one-month period plus 1.00% per annum, and (c) an overnight bank funding rate plus 1.00% per annum. The Credit Facility has an annual commitment fee of 0.15% per annum of the available line of credit, which is paid quarterly. The Fund has agreed to pay its pro rata share of the annual commitment fee, 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 and the level of its access to the Credit Facility, and interest charged on any borrowing made by the Fund and other costs incurred by such Fund. Because several mutual funds participate in the Credit Facility, there is no assurance that an individual Fund will have access to all or any part of the $700,000,000 at any particular time. There were no loans outstanding under the Credit Facility at June 30 2017. During the period ended June 30, 2017, the Fund did not utilize the Credit Facility.
Note F—Custodian Out-of-Pocket Expenses Refunded:
In May 2016, the Fund's custodian, State Street, announced that it had identified inconsistencies in the way in which the Fund was invoiced for categories of expenses, particularly those deemed "out-of-pocket" costs, from 1998 through November 2015. The amounts in the table below represent the refunded expenses and interest determined to be payable to the Fund for the period in question. These amounts were refunded to the Fund by State Street during the period ended June 30, 2017.
Expenses
Refunded | | Interest Paid
to the Fund | |
| $ | 45,887 | | | $ | 6,488 | | |
19
Note G—Recent Accounting Pronouncement:
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017, for reports with a period-end date after that date. Management is currently evaluating the impact, if any, that the adoption of the amendments to Regulation S-X will have on the Fund's financial statements and related disclosures.
Note H—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
20
Guardian Portfolio
The following tables include selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. Amounts that do not round to $0.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Ratios that do not round to 0.01% or (0.01)% are presented as 0.00% or (0.00)%, respectively. A "—" indicates that the line item was not applicable in the corresponding period.
Class I | |
| | | Six Months
Ended
June 30, | | Year Ended December 31, | |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| | | (Unaudited) | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | $ | 14.66 | | | $ | 16.70 | | | $ | 24.09 | | | $ | 26.69 | | | $ | 20.40 | | | $ | 18.29 | | |
Income From Investment Operations: | |
| Net Investment Income/(Loss)@ | | | 0.11 | | | | 0.06 | | | | 0.09 | | | | 0.16 | | | | 0.09 | | | | 0.17 | | |
Net Gains or Losses on Securities
(both realized and unrealized) | | | 1.75 | | | | 1.28 | | | | (1.28 | ) | | | 1.79 | | | | 7.70 | | | | 2.16 | | |
Total From Investment Operations | | | 1.86 | | | | 1.34 | | | | (1.19 | ) | | | 1.95 | | | | 7.79 | | | | 2.33 | | |
Less Distributions From: | |
Net Investment Income | | | — | | | | (0.10 | ) | | | (0.17 | ) | | | (0.13 | ) | | | (0.20 | ) | | | (0.06 | ) | |
Net Realized Capital Gains | | | — | | | | (3.28 | ) | | | (6.03 | ) | | | (4.42 | ) | | | (1.30 | ) | | | (0.16 | ) | |
Total Distributions | | | — | | | | (3.38 | ) | | | (6.20 | ) | | | (4.55 | ) | | | (1.50 | ) | | | (0.22 | ) | |
Voluntary Contribution from Management | | | — | | | | — | | | | — | | | | 0.00 | | | | — | | | | — | | |
Net Asset Value, End of Period | | $ | 16.52 | | | $ | 14.66 | | | $ | 16.70 | | | $ | 24.09 | | | $ | 26.69 | | | $ | 20.40 | | |
| Total Return† | | | 12.69 | %*^‡ | | | 8.73 | %^ | | | (4.97 | )%^ | | | 9.03 | %^µ | | | 38.81 | % | | | 12.73 | % | |
Ratios/Supplemental Data | |
Net Assets, End of Period (in millions) | | $ | 11.7 | | | $ | 11.4 | | | $ | 11.8 | | | $ | 14.0 | | | $ | 15.3 | | | $ | 13.3 | | |
Ratio of Gross Expenses to
Average Net Assets# | | | 1.18 | %** | | | 1.21 | % | | | 1.15 | % | | | 1.08 | % | | | 1.11 | % | | | 1.11 | % | |
Ratio of Net Expenses to Average Net Assets | | | 0.80 | %**ß | | | 1.21 | % | | | 1.15 | % | | | 1.08 | % | | | 1.11 | % | | | 1.11 | %Ø | |
Ratio of Net Investment Income/(Loss)
to Average Net Assets | | | 0.94 | %**ß | | | 0.36 | % | | | 0.42 | % | | | 0.60 | % | | | 0.38 | % | | | 0.87 | % | |
Portfolio Turnover Rate | | | 17 | %* | | | 72 | % | | | 51 | % | | | 37 | % | | | 31 | % | | | 32 | % | |
See Notes to Financial Highlights
21
Financial Highlights (cont'd)
Class S | |
| | | Six Months
Ended
June 30, | | Year Ended December 31, | |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| | | (Unaudited) | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | $ | 14.57 | | | $ | 16.59 | | | $ | 23.94 | | | $ | 26.53 | | | $ | 20.29 | | | $ | 18.19 | | |
Income From Investment Operations: | |
| Net Investment Income/(Loss)@ | | | 0.03 | | | | 0.05 | | | | 0.07 | | | | 0.12 | | | | 0.06 | | | | 0.14 | | |
Net Gains or Losses on Securities
(both realized and unrealized) | | | 1.74 | | | | 1.28 | | | | (1.28 | ) | | | 1.78 | | | | 7.65 | | | | 2.15 | | |
Total From Investment Operations | | | 1.77 | | | | 1.33 | | | | (1.21 | ) | | | 1.90 | | | | 7.71 | | | | 2.29 | | |
Less Distributions From: | |
Net Investment Income | | | — | | | | (0.07 | ) | | | (0.11 | ) | | | (0.07 | ) | | | (0.17 | ) | | | (0.03 | ) | |
Net Realized Capital Gains | | | — | | | | (3.28 | ) | | | (6.03 | ) | | | (4.42 | ) | | | (1.30 | ) | | | (0.16 | ) | |
Total Distributions | | | — | | | | (3.35 | ) | | | (6.14 | ) | | | (4.49 | ) | | | (1.47 | ) | | | (0.19 | ) | |
Voluntary Contribution from Management | | | — | | | | — | | | | — | | | | 0.00 | | | | — | | | | — | | |
Net Asset Value, End of Period | | $ | 16.34 | | | $ | 14.57 | | | $ | 16.59 | | | $ | 23.94 | | | $ | 26.53 | | | $ | 20.29 | | |
| Total Return† | | | 12.15 | %*^‡ | | | 8.75 | %^ | | | (5.12 | )%^ | | | 8.89 | %^µ | | | 38.60 | % | | | 12.60 | % | |
Ratios/Supplemental Data | |
Net Assets, End of Period (in millions) | | $ | 47.4 | | | $ | 46.2 | | | $ | 51.3 | | | $ | 67.8 | | | $ | 79.9 | | | $ | 69.0 | | |
Ratio of Gross Expenses to
Average Net Assets# | | | 1.43 | %** | | | 1.46 | % | | | 1.39 | % | | | 1.33 | % | | | 1.36 | % | | | 1.36 | % | |
Ratio of Net Expenses to Average Net Assets | | | 1.26 | %**ß | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | %Ø | |
Ratio of Net Investment Income/(Loss)
to Average Net Assets | | | 0.43 | %**ß | | | 0.31 | % | | | 0.33 | % | | | 0.44 | % | | | 0.26 | % | | | 0.73 | % | |
Portfolio Turnover Rate | | | 17 | %* | | | 72 | % | | | 51 | % | | | 37 | % | | | 31 | % | | | 32 | % | |
See Notes to Financial Highlights
22
Notes to Financial Highlights Guardian Portfolio (Unaudited)
@ Calculated based on the average number of shares outstanding during each fiscal period.
† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period. Returns assume 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 accounts or the related insurance policies or other qualified pension or retirement plans, and the inclusion of these charges and other expenses would reduce the total return for all fiscal periods shown.
^ The class action proceeds listed in Note A of the Notes to Financial Statements had no impact on the Fund's total return for the six months ended June 30, 2017. The class action proceeds received in 2016 had no impact on the Fund's total return for the year ended December 31, 2016. Had the Fund not received class action proceeds in 2015, total return based on per share NAV for the year ended December 31, 2015 would have been (5.02)% and (5.17)% for Class I and Class S, respectively. Had the Fund not received class action proceeds in 2014, total return based on per share NAV for the year ended December 31, 2014 would have been 8.98% and 8.84% for Class I and Class S, respectively.
* Not annualized.
µ The voluntary contribution received in 2014 had no impact on the Fund's total return for the year ended December 31, 2014.
# 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. Management did not reimburse or waive fees during the fiscal periods shown for Class I.
** Annualized.
ß Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in these ratios on a non-annualized basis. Had the Funds not received the refund the annualized ratios of net expenses to average net assets and net investment income/(loss) to average net assets would have been:
| | | Ratio of Net
Expenses to
Average Net
Assets
Six Months
Ended June 30,
2017 | | Ratio of Net
Investment
Income/
(Loss) to
Average Net
Assets
Six Months
Ended June 30,
2017 | |
Class I | | | 1.18 | % | | | 0.50 | % | |
Class S | | | 1.26 | % | | | 0.43 | % | |
Ø Prior to January 1, 2013, the Fund had an expense offset arrangement in connection with its custodian contract. The impact of expense reductions related to expense offset arrangements, if any, was less than 0.01%.
‡ The Custodian Out-of-Pocket Expenses Refunded listed in Note F of the Notes to Financial Statements had no impact on Class S's total return for the six months ended June 30, 2017. Had the Fund not received the Custodian Out-of-Pocket Expenses Refunded listed in Note F of the Notes to Financial Statements, the total return for Class I would have been 12.21%.
23
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 800-877-9700 (toll-free) and on the Securities and Exchange Commission's website 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 upon request, without charge, by calling 800-877-9700 (toll-free), on the Securities and Exchange Commission's website 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 800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 800-877-9700 (toll free).
24
Neuberger Berman
Advisers Management Trust
International Equity Portfolio
S Class Shares
Semi-Annual Report
June 30, 2017
International Equity Portfolio Commentary
The Neuberger Berman Advisers Management Trust International Equity Portfolio Class S posted a total return of 14.97% for the six months ended June 30, 2017, outperforming the 13.81% return of its benchmark, the MSCI EAFE® Index (Net) (Index), for the same period.
Global equity markets have advanced sharply year-to-date, with the Index closing ahead of the S&P 500® Index (returned 9.3%) but lagging the MSCI Emerging Markets Index (Net) (returned 18.4%). European equities were particularly strong, as elections in France relieved investor uncertainty.
Within the Index, the Information Technology (IT) sector outperformed most, even as nearly every sector saw double-digit positive returns. The only real underperformer was Energy, posting a small loss. Energy price weakness continued with investors disappointed with projected production cuts by OPEC members and others, aimed at reducing global oil supply. By country, Austria, Spain, and Denmark outperformed. Weaker markets included Norway (on oil pricing), Ireland, and Australia.
Within the Fund, relative returns benefited from both stock selection and sector allocation during the period, with an overweight to IT stocks, plus strong stock selection within Consumer Discretionary and Financials having the largest positive impacts. By country, UK, Japan and Swiss holdings outperformed.
Standout individual contributors included Alibaba, a Chinese e-commerce giant, which raised future revenue expectations; Keyence, a Japanese factory automation equipment manufacturer, which reported stronger-than-expected sales growth; and SPIE, a French engineering services business, which benefitted as analysts revised earnings expectations upward.
The portfolio lagged the Index in Consumer Staples, with niche retail names trailing larger names in the Index, and also in Energy, where the Fund's energy price-sensitive upstream holdings underperformed the Index. By country, holdings based in Canada and the Netherlands, and foreign multinationals listed on U.S. exchanges lagged.
Detractors for the period included Peyto Exploration & Development Corp., a Canadian unconventional gas producer, which underperformed due to weak gas prices and softer production than forecasted. Home Capital, a Canadian specialty mortgage lender, struggled with regulatory issues. A change of management and an investment from Berkshire Hathaway helped the shares rebound somewhat. The Fund exited the position. We reduced our investment in Toyota based on concerns that U.S. auto sales have peaked.
We made some incremental changes to the portfolio in the second quarter including reducing exposure to Energy. Despite continued growth in demand, we believe low cost supply could constrain prices. In our opinion, new technology—especially in North America—is stimulating profitable supply growth, even with prices below $50 per barrel. IT exposure was also reduced but primarily due to M&A activity.
We believe political risk is subsiding in the Eurozone and the European economic recovery is gathering momentum, and equity markets have reacted very positively so far in 2017. While valuations do not look particularly cheap, we believe they look reasonable relative to U.S. peers. After several years of lackluster earnings, we think we are beginning to see the signs of a significant rebound in European profits.
Given the lower risk profile of the Fund relative to the Index, it is gratifying that our stock selection has been rewarded and the portfolio has been outpacing a fast-rising market year-to-date. We continue to look for opportunities across countries, sectors and the market cap spectrum.
Given higher overall valuations, we must retain discipline around the prices we are paying for stocks. However, we continue to find companies that appear to us to have attractive secular growth drivers, stable demand and profit profiles, and proven management teams that appear underappreciated and, we believe, offer investors attractive risk/return characteristics.
Sincerely,
BENJAMIN SEGAL
PORTFOLIO MANAGER
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund's portfolio manager. The opinions are as of the date of this report, and are subject to change without notice.
1
International Equity Portfolio
PERFORMANCE HIGHLIGHTS
| | Inception | | Six Month
Period Ended | | Average Annual Total Return
Ended 06/30/2017 | |
| | Date | | 06/30/2017 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund | |
International Equity Portfolio
Class S | | 04/29/2005 | | | 14.97 | % | | | 17.74 | % | | | 8.05 | % | | | 1.16 | % | | | 4.88 | % | |
| MSCI EAFE® Index (Net)1,2,3 | | | | | 13.81 | % | | | 20.27 | % | | | 8.69 | % | | | 1.03 | % | | | 4.99 | % | |
| MSCI EAFE® Index1,2,3 | | | | | 14.23 | % | | | 20.83 | % | | | 9.18 | % | | | 1.50 | % | | | 5.48 | % | |
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 http://www.nb.com/amtportfolios/performance.
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 Fund distributions or on the redemption of Fund 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 Fund.
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 Investment Advisers 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 Fund's most recent prospectus, the total annual operating expense ratio for fiscal year 2016 was 1.78% for Class S shares (before expense reimbursements and/or fee waivers, if any). The expense ratio was 1.51% after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended June 30, 2017 can be found in the Financial Highlights section of this report.
2
1 The date used to calculate Life of Fund performance for the index is April 29, 2005, the Fund's commencement of operations.
2 The MSCI EAFE® Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets excluding the United States and Canada. The index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. Gross total return indexes reinvest as much as possible of a company's dividend distributions, regardless of withholding taxes that a nonresident may experience. Please note that the index described in this report does not take into account any fees, expenses or tax consequences of investing in the individual securities that it tracks, and that individuals cannot invest directly in any index. Data about the performance of an index are prepared or obtained by Neuberger Berman Investment Advisers LLC* ("Management") and reflect the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and generally does not invest in all securities included in a described index.
3 Effective September 30, 2016, the Board approved a change in the benchmark of AMT International Equity Portfolio so that the Fund will use the version of its current benchmark that is net of foreign tax withholdings rather than gross of foreign tax withholdings, which is a more appropriate benchmark for the Fund.
* On January 1, 2016, Neuberger Berman Management LLC ("NBM") transferred to Neuberger Berman Fixed Income LLC ("NBFI") its rights and obligations pertaining to all services it provided to any Fund under any investment management, investment sub-advisory, and/or administration agreement, as applicable (the "Agreements"). Following such transfer, NBFI was renamed Neuberger Berman Investment Advisers LLC ("NBIA" or "Management"). Following the consolidation, the investment professionals of NBM who provided services to the Fund under the Agreements continue to provide the same services, except that they provide those services in their new capacities as investment professionals of NBIA. Further, the consolidation did not result in any change in the investment processes employed by the Fund, the nature or level of services provided to the Fund, or the fees the Fund pays under its Agreements.
On July 1, 2016, NBM was reorganized into Neuberger Berman LLC ("Neuberger Berman") (the "Reorganization"). Upon the completion of the Reorganization, Neuberger Berman assumed all rights and obligations pertaining to all services NBM provided to the Fund under any distribution agreement or distribution and services agreement (the "Agreements") or plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, (the "Plans"). Accordingly, after the Reorganization, Neuberger Berman became the Fund's distributor and the services previously provided by NBM under the Agreements and Plans are provided by Neuberger Berman.
Following the Reorganization, the employees of NBM provide the same services to the Fund under the Agreements and Plans, except that they provide those services in their capacities as employees of Neuberger Berman. Further, the Reorganization did not result in any change in the nature or level of services provided to the Fund, or the fees, if any, the Fund pays under the Agreements or the Plans.
On January 1, 2017, the Fund's distributor, Neuberger Berman, changed its name to Neuberger Berman BD LLC.
The investments for the Fund are managed by the same portfolio manager(s) who manage(s) one or more other registered funds that have names, investment objectives and investment styles that are similar to those of the Fund. You should be aware that the Fund is likely to differ from those other mutual fund(s) in size, cash flow pattern and tax matters. Accordingly, the holdings and performance of the Fund can be expected to vary from those of the other mutual fund(s).
3
Shares of the separate Neuberger Berman Advisers Management Trust Portfolios, including the Fund, are not available to the general public. Shares of the Fund may be purchased only by life insurance companies to be held in their separate accounts, which 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 Fund. This report is prepared for the general information of shareholders and is not an offer of shares of the Fund. Shares are sold only through the currently effective prospectus, which must precede or accompany this report.
The "Neuberger Berman" name and logo and "Neuberger Berman Investment Advisers LLC" are registered service marks of Neuberger Berman Group LLC. The individual Fund name in this piece is either a service mark or registered service mark of Neuberger Berman Investment Advisers LLC , an affiliate of Neuberger Berman BD LLC, distributor, member FINRA.
© 2017 Neuberger Berman BD 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 U.S. 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, 2017 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 indicated. 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.
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL EQUITY PORTFOLIO
Actual | | Beginning Account
Value
1/1/17 | | Ending Account
Value
6/30/17 | | Expenses Paid
During the Period
1/1/17 – 6/30/17 | |
Class S | | $ | 1,000.00 | | | $ | 1,149.70 | | | $ | 8.00 | * | |
Hypothetical (5% annual return before expenses) | |
Class S | | $ | 1,000.00 | | | $ | 1,017.36 | | | $ | 7.50 | ** | |
* Expenses are equal to the annualized expense ratio of 1.50%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical expenses are equal to the annualized expense ratio of 1.50%, multiplied by the average account value over the period (assuming a 5% annual return), multiplied by 181/365 (to reflect the one-half year period shown).
5
Schedule of Investments International Equity Portfolio (Unaudited)
June 30, 2017
NUMBER OF SHARES | | | | VALUE | |
Common Stocks 96.5% | | | |
Australia 2.2% | | | |
| | 266,591 | | | Insurance Australia Group Ltd. | | $ | 1,389,234 | | |
| | 182,085 | | | Reliance Worldwide Corp. Ltd. | | | 467,435 | | |
| | | | 1,856,669 | | |
Austria 1.2% | | | |
| | 17,405 | | | Andritz AG | | | 1,048,425 | | |
Belgium 1.3% | | | |
| | 4,151 | | | KBC Groep NV | | | 314,854 | | |
| | 21,725 | | | Ontex Group NV | | | 771,939 | | |
| | | | 1,086,793 | | |
Canada 5.6% | | | |
| 26,268 | | | Alimentation Couche-Tard, Inc.
Class B | | | 1,259,114 | | |
| 54,715 | | | ATS Automation Tooling
Systems, Inc. | | | 560,736 | * | |
| | 10,095 | | | Kinaxis, Inc. | | | 628,524 | * | |
| 8,028 | | | MacDonald, Dettwiler &
Associates Ltd. | | | 417,743 | | |
| 26,020 | | | Peyto Exploration &
Development Corp. | | | 471,924 | | |
| | 59,035 | | | Raging River Exploration, Inc. | | | 368,286 | * | |
| | 32,493 | | | Suncor Energy, Inc. | | | 949,383 | | |
| | | | 4,655,710 | | |
China 3.0% | | | |
| 10,980 | | | Alibaba Group Holding Ltd.
ADR | | | 1,547,082 | * | |
| | 5,380 | | | Baidu, Inc. ADR | | | 962,267 | * | |
| | | | 2,509,349 | | |
Denmark 1.7% | | | |
| | 37,995 | | | Nets A/S | | | 755,774 | *(a) | |
| | 18,285 | | | Sydbank A/S | | | 689,231 | | |
| | | | 1,445,005 | | |
Finland 0.5% | | | |
| | 10,920 | | | Huhtamaki OYJ | | | 430,293 | | |
France 10.5% | | | |
| | 7,153 | | | Air Liquide SA | | | 883,972 | | |
| | 10,165 | | | Arkema SA | | | 1,084,718 | | |
| | 21,610 | | | Elior Group | | | 627,906 | (a) | |
| | 8,505 | | | Pernod-Ricard SA | | | 1,138,965 | | |
| | 7,181 | | | Sodexo SA | | | 928,441 | | |
| | 39,345 | | | SPIE SA | | | 1,181,866 | | |
| | 21,943 | | | TOTAL SA | | | 1,084,817 | | |
NUMBER OF SHARES | | | | VALUE | |
| | 18,200 | | | Valeo SA | | $ | 1,226,232 | | |
| | 4,040 | | | Virbac SA | | | 648,307 | * | |
| | | | 8,805,224 | | |
Germany 8.1% | | | |
| | 13,615 | | | Brenntag AG | | | 788,093 | | |
| | 3,800 | | | Continental AG | | | 820,075 | | |
| | 13,040 | | | CTS Eventim AG & Co. KGaA | | | 576,681 | | |
| | 6,246 | | | Deutsche Boerse AG | | | 659,312 | | |
| | 11,565 | | | GEA Group AG | | | 473,277 | | |
| | 9,653 | | | Gerresheimer AG | | | 776,503 | | |
| 7,905 | | | Henkel AG & Co. KGaA,
Preference Shares | | | 1,087,958 | | |
| | 15,690 | | | SAP SE ADR | | | 1,642,272 | | |
| | | | 6,824,171 | | |
Hong Kong 1.8% | | | |
| | 934,400 | | | HKBN Ltd. | | | 937,099 | | |
| | 124,000 | | | Techtronic Industries Co. Ltd. | | | 570,173 | | |
| | | | 1,507,272 | | |
Ireland 1.0% | | | |
| | 254,380 | | | Greencore Group PLC | | | 815,040 | | |
Israel 2.6% | | | |
| 414,515 | | | Bezeq Israeli Telecommunication
Corp. Ltd. | | | 687,593 | | |
| 13,485 | | | Check Point Software
Technologies Ltd. | | | 1,470,944 | * | |
| | | | 2,158,537 | | |
Italy 1.0% | | | |
| | 40,390 | | | Azimut Holding SpA | | | 809,606 | | |
Japan 12.0% | | | |
| | 14,500 | | | Bridgestone Corp. | | | 623,961 | | |
| | 12,400 | | | Daikin Industries Ltd. | | | 1,264,530 | | |
| | 8,100 | | | Hoya Corp. | | | 420,069 | | |
| | 45,500 | | | Kansai Paint Co. Ltd. | | | 1,045,721 | | |
| | 10,800 | | | Kao Corp. | | | 640,654 | | |
| | 4,200 | | | Keyence Corp. | | | 1,842,436 | | |
| | 4,100 | | | Kose Corp. | | | 447,273 | | |
| | 17,000 | | | Nabtesco Corp. | | | 493,488 | | |
| | 48,900 | | | Santen Pharmaceutical Co. Ltd. | | | 662,579 | | |
| | 16,400 | | | Shionogi & Co. Ltd. | | | 912,626 | | |
| | 3,400 | | | SMC Corp. | | | 1,032,318 | | |
| | 12,000 | | | Toyota Motor Corp. | | | 628,727 | | |
| | | | 10,014,382 | | |
Netherlands 5.0% | | | |
| | 22,040 | | | AerCap Holdings NV | | | 1,023,317 | * | |
| | 14,110 | | | ASML Holding NV | | | 1,838,805 | | |
See Notes to Financial Statements
6
Schedule of Investments International Equity Portfolio (Unaudited) (cont'd)
NUMBER OF SHARES | | | | VALUE | |
| | 4,660 | | | Heineken NV | | $ | 453,098 | | |
| | 20,676 | | | Intertrust NV | | | 419,286 | (a) | |
| | 22,771 | | | Koninklijke Ahold Delhaize NV | | | 435,372 | | |
| | | | 4,169,878 | | |
Norway 1.0% | | | |
| | 88,103 | | | Skandiabanken ASA | | | 833,674 | (a) | |
Spain 1.4% | | | |
| 55,571 | | | Banco Bilbao Vizcaya
Argentaria SA | | | 461,113 | | |
| | 68,710 | | | Euskaltel SA | | | 731,014 | (a) | |
| | | | 1,192,127 | | |
Sweden 0.9% | | | |
| | 59,740 | | | Nordea Bank AB | | | 760,161 | | |
Switzerland 13.3% | | | |
| | 2,866 | | | Bucher Industries AG | | | 901,883 | | |
| | 8,345 | | | Cie Financiere Richemont SA | | | 687,512 | | |
| | 619 | | | Givaudan SA | | | 1,238,129 | | |
| | 21,880 | | | Julius Baer Group Ltd. | | | 1,151,159 | * | |
| | 9,080 | | | Novartis AG | | | 755,641 | | |
| | 1,930 | | | Partners Group Holding AG | | | 1,196,564 | | |
| | 4,081 | | | Roche Holding AG | | | 1,039,295 | | |
| | 442 | | | SGS SA | | | 1,070,314 | | |
| | 4,610 | | | Sonova Holding AG | | | 748,542 | | |
| | 7,925 | | | Tecan Group AG | | | 1,490,121 | | |
| | 48,555 | | | UBS Group AG | | | 822,331 | * | |
| | | | 11,101,491 | | |
United Kingdom 18.3% | | | |
| | 9,820 | | | Aon PLC | | | 1,305,569 | | |
| | 302,630 | | | Barclays PLC | | | 799,160 | | |
| | 149,555 | | | Biffa PLC | | | 430,481 | *(a) | |
| | 36,597 | | | Bunzl PLC | | | 1,090,592 | | |
| | 94,795 | | | Clinigen Group PLC | | | 1,063,040 | | |
NUMBER OF SHARES | | | | VALUE | |
| | 41,147 | | | Compass Group PLC | | $ | 868,191 | | |
| | 8,715 | | | DCC PLC | | | 793,424 | | |
| | 65,035 | | | Howden Joinery Group PLC | | | 344,833 | | |
| | 1,335,047 | | | Lloyds Banking Group PLC | | | 1,150,237 | | |
| | 54,408 | | | Prudential PLC | | | 1,247,910 | | |
| | 57,679 | | | RELX PLC | | | 1,247,058 | | |
| | 149,670 | | | RPS Group PLC | | | 510,737 | | |
| | 28,775 | | | Spectris PLC | | | 945,570 | | |
| | 63,462 | | | St. James's Place PLC | | | 976,995 | | |
| | 40,912 | | | Travis Perkins PLC | | | 775,309 | | |
| | 12,208 | | | Unilever NV | | | 673,743 | | |
| | 257,405 | | | Worldpay Group PLC | | | 1,055,389 | (a) | |
| | | | 15,278,238 | | |
United States 4.1% | | | |
| | 3,300 | | | Core Laboratories NV | | | 334,191 | | |
| | 20,855 | | | Nielsen Holdings PLC | | | 806,254 | | |
| | 244,800 | | | Samsonite International SA | | | 1,022,162 | | |
| 18,700 | | | Sensata Technologies Holding
NV | | | 798,864 | * | |
| | 5,800 | | | TE Connectivity Ltd. | | | 456,344 | | |
| | | | 3,417,815 | | |
| | | | Total Common Stocks
(Cost $70,613,005) | | | 80,719,860 | | |
Short-Term Investment 3.8% | | | |
Investment Company 3.8% | | | |
| 3,209,883 | | | State Street Institutional
Treasury Money Market
Fund Premier Class, 0.83%
(Cost $3,209,883) | | | 3,209,883 | (b) | |
| | | | Total Investments 100.3%
(Cost $73,822,888) | | | 83,929,743 | | |
| | | | | Other Assets Less Liabilities (0.3)% | | | (229,712 | ) | |
| | | | | Net Assets 100.0% | | $ | 83,700,031 | | |
* Non-income producing security.
(a) Securities were purchased under Rule 144A of the Securities Act of 1933, as amended (the "1933 Act"), or are otherwise restricted and, unless registered under the 1933 Act or exempted from registration, may only be sold to qualified institutional investors or may have other restrictions on resale. At June 30, 2017, these securities amounted to $4,853,524 or 5.8% of net assets of the Fund. These securities have been deemed by the investment manager to be liquid.
(b) Represents 7-day effective yield as of June 30, 2017.
See Notes to Financial Statements
7
Schedule of Investments International Equity Portfolio (Unaudited) (cont'd)
The following is a summary, categorized by Level (see Note A of Notes to Financial Statements), of inputs used to value the Fund's investments as of June 30, 2017:
Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
Investments: | |
Common Stocks | |
Israel | | $ | 1,470,944 | | | $ | 687,593 | | | $ | — | | | $ | 2,158,537 | | |
| Other Common Stocks(a) | | | 78,561,323 | | | | — | | | | — | | | | 78,561,323 | | |
Total Common Stocks | | | 80,032,267 | | | | 687,593 | | | | — | | | | 80,719,860 | | |
Short-Term Investment | | | — | | | | 3,209,883 | | | | — | | | | 3,209,883 | | |
Total Investments | | $ | 80,032,267 | | | $ | 3,897,476 | | | $ | — | | | $ | 83,929,743 | | |
(a) The Schedule of Investments provides a geographic categorization as well as a Positions by Industry summary.
As of the six months ended June 30, 2017, certain securities were transferred from one level (as of December 31, 2016) to another. Based on beginning of period market values as of January 1, 2017, $10,662,295 was transferred from Level 2 to Level 1 due to active market activity on recognized exchanges as of June 30, 2017. These securities had been categorized as Level 2 as of December 31, 2016, due to the use of Interactive Data Pricing and Reference Data LLC ("Interactive") adjusted prices, as stated in the description of the valuation methods of foreign equity securities in Note A of the Notes to Financial Statements.
See Notes to Financial Statements
8
Schedule of Investments International Equity Portfolio (Unaudited) (cont'd)
POSITIONS BY INDUSTRY
Industry | | Investments
at Value | | Percentage of
Net Assets | |
Banks | | $ | 5,008,430 | | | | 6.0 | % | |
Insurance | | | 4,919,708 | | | | 5.9 | % | |
Capital Markets | | | 4,638,972 | | | | 5.5 | % | |
Machinery | | | 4,510,127 | | | | 5.4 | % | |
Chemicals | | | 4,252,540 | | | | 5.1 | % | |
Trading Companies & Distributors | | | 4,022,144 | | | | 4.8 | % | |
Pharmaceuticals | | | 4,018,448 | | | | 4.8 | % | |
Software | | | 3,741,740 | | | | 4.5 | % | |
Professional Services | | | 3,542,912 | | | | 4.2 | % | |
Life Sciences Tools & Services | | | 3,329,664 | | | | 4.0 | % | |
Electronic Equipment, Instruments & Components | | | 3,244,350 | | | | 3.9 | % | |
Oil, Gas & Consumable Fuels | | | 2,874,410 | | | | 3.4 | % | |
Auto Components | | | 2,670,268 | | | | 3.2 | % | |
Personal Products | | | 2,533,609 | | | | 3.0 | % | |
Internet Software & Services | | | 2,509,349 | | | | 3.0 | % | |
Hotels, Restaurants & Leisure | | | 2,424,538 | | | | 2.9 | % | |
Diversified Telecommunication Services | | | 2,355,706 | | | | 2.8 | % | |
Commercial Services & Supplies | | | 2,123,084 | | | | 2.5 | % | |
Semiconductors & Semiconductor Equipment | | | 1,838,805 | | | | 2.2 | % | |
IT Services | | | 1,811,163 | | | | 2.2 | % | |
Building Products | | | 1,731,965 | | | | 2.1 | % | |
Textiles, Apparel & Luxury Goods | | | 1,709,674 | | | | 2.0 | % | |
Food & Staples Retailing | | | 1,694,486 | | | | 2.0 | % | |
Beverages | | | 1,592,063 | | | | 1.9 | % | |
Health Care Equipment & Supplies | | | 1,168,611 | | | | 1.4 | % | |
Household Products | | | 1,087,958 | | | | 1.3 | % | |
Food Products | | | 815,040 | | | | 1.0 | % | |
Electrical Equipment | | | 798,864 | | | | 1.0 | % | |
Industrial Conglomerates | | | 793,424 | | | | 0.9 | % | |
Automobiles | | | 628,727 | | | | 0.8 | % | |
Media | | | 576,681 | | | | 0.7 | % | |
Household Durables | | | 570,173 | | | | 0.7 | % | |
Containers & Packaging | | | 430,293 | | | | 0.5 | % | |
Aerospace & Defense | | | 417,743 | | | | 0.5 | % | |
Energy Equipment & Services | | | 334,191 | | | | 0.4 | % | |
Short-Term Investment and Other Assets—Net | | | 2,980,171 | | | | 3.5 | % | |
| | | $ | 83,700,031 | | | | 100.0 | % | |
See Notes to Financial Statements
9
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | INTERNATIONAL
EQUITY
PORTFOLIO | |
| | | June 30, 2017 | |
Assets | |
Investments in securities, at value* (Note A)—see Schedule of Investments: | |
Unaffiliated issuers | | $ | 83,929,743 | | |
Foreign currency* | | | 13,858 | | |
Dividends and interest receivable | | | 331,031 | | |
Receivable for Fund shares sold | | | 17 | | |
Prepaid expenses and other assets | | | 2,315 | | |
Total Assets | | | 84,276,964 | | |
Liabilities | |
Payable to investment manager (Note B) | | | 58,855 | | |
Payable for securities purchased | | | 351,659 | | |
Payable for Fund shares redeemed | | | 32,127 | | |
Payable to administrator—net (Note B) | | | 47,672 | | |
Payable to trustees | | | 10,345 | | |
Accrued expenses and other payables | | | 76,275 | | |
Total Liabilities | | | 576,933 | | |
Net Assets | | $ | 83,700,031 | | |
Net Assets consist of: | |
Paid-in capital | | $ | 136,600,937 | | |
Undistributed net investment income/(loss) | | | 1,094,367 | | |
Accumulated net realized gains/(losses) on investments | | | (64,103,663 | ) | |
Net unrealized appreciation/(depreciation) in value of investments | | | 10,108,390 | | |
Net Assets | | $ | 83,700,031 | | |
Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 6,727,278 | | |
Net Asset Value, offering and redemption price per share | | $ | 12.44 | | |
*Cost of Investments: | | | |
Unaffiliated issuers | | $ | 73,822,888 | | |
Total cost of foreign currency | | $ | 13,895 | | |
See Notes to Financial Statements
10
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | INTERNATIONAL
EQUITY
PORTFOLIO | |
| | | For the
Six Months Ended
June 30, 2017 | |
Investment Income: | |
Income (Note A): | |
Dividend income—unaffiliated issuers | | $ | 1,292,519 | | |
Interest income—unaffiliated issuers | | | 4,917 | | |
Foreign taxes withheld (Note A) | | | (136,944 | ) | |
Total income | | $ | 1,160,492 | | |
Expenses: | |
Investment management fees (Note B) | | | 337,257 | | |
Administration fees (Note B) | | | 119,032 | | |
Distribution fees (Note B) | | | 99,193 | | |
Audit fees | | | 23,088 | | |
Custodian and accounting fees | | | 34,705 | | |
Insurance expense | | | 1,345 | | |
Legal fees | | | 14,428 | | |
Shareholder reports | | | 6,292 | | |
Trustees' fees and expenses | | | 21,516 | | |
Miscellaneous | | | 2,891 | | |
Total expenses | | | 659,747 | | |
Expenses reimbursed by Management (Note B) | | | (63,023 | ) | |
Total net expenses | | | 596,724 | | |
Net investment income/(loss) | | $ | 563,768 | | |
Realized and Unrealized Gain/(Loss) on Investments (Note A): | |
Net realized gain/(loss) on: | |
Sales of investment securities of unaffiliated issuers | | | (191,279 | ) | |
Foreign currency | | | 2,126 | | |
Change in net unrealized appreciation/(depreciation) in value of: | |
Unaffiliated investment securities | | | 10,667,489 | | |
Foreign currency | | | 13,787 | | |
Net gain/(loss) on investments | | | 10,492,123 | | |
Net increase/(decrease) in net assets resulting from operations | | $ | 11,055,891 | | |
See Notes to Financial Statements
11
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | INTERNATIONAL EQUITY PORTFOLIO | |
| | | Six Months Ended
June 30,
2017
(Unaudited) | | Year Ended
December 31,
2016
| |
Increase/(Decrease) in Net Assets: | |
From Operations (Note A): | |
Net investment income/(loss) | | $ | 563,768 | | | $ | 557,434 | | |
Net realized gain/(loss) on investments | | | (189,153 | ) | | | (235,846 | ) | |
Change in net unrealized appreciation/(depreciation) of investments | | | 10,681,276 | | | | (1,645,755 | ) | |
Net increase/(decrease) in net assets resulting from operations | | | 11,055,891 | | | | (1,324,167 | ) | |
Distributions to Shareholders From (Note A): | |
Net investment income | | | — | | | | (464,264 | ) | |
Net realized gain on investments | | | — | | | | (392,634 | ) | |
Total distributions to shareholders | | | — | | | | (856,898 | ) | |
From Fund Share Transactions (Note D): | |
Proceeds from shares sold | | | 672,492 | | | | 4,895,197 | | |
Proceeds from reinvestment of dividends and distributions | | | — | | | | 856,898 | | |
Payments for shares redeemed | | | (2,873,545 | ) | | | (5,195,263 | ) | |
Net increase/(decrease) from Fund share transactions | | | (2,201,053 | ) | | | 556,832 | | |
Net Increase/(Decrease) in Net Assets | | | 8,854,838 | | | | (1,624,233 | ) | |
Net Assets: | |
Beginning of period | | | 74,845,193 | | | | 76,469,426 | | |
End of period | | $ | 83,700,031 | | | $ | 74,845,193 | | |
Undistributed net investment income/(loss) at end of period | | $ | 1,094,367 | | | $ | 530,599 | | |
See Notes to Financial Statements
12
Notes to Financial Statements International Equity 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 an Amended and Restated Trust Instrument dated March 27, 2014. The Trust is currently comprised of eight separate operating series (each individually a "Fund," 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. Neuberger Berman Advisers Management Trust International Equity Portfolio (the "Fund") currently offers only Class S shares. The Trust's Board of Trustees (the "Board") may establish additional series or classes of shares without the approval of shareholders.
The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946 "Financial Services—Investment Companies."
The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires Neuberger Berman Investment Advisers LLC ("NBIA" or "Management") to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Shares of the Fund are not available to the general public and may be purchased only by life insurance companies to serve as an investment vehicle for premiums paid under their variable annuity and variable life insurance contracts and to certain qualified pension and other retirement plans.
2 Portfolio valuation: In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurement" ("ASC 820"), all investments held by the Fund are carried at the value that 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 observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3—unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in equity securities, for which market quotations are readily available, is generally determined by Management by obtaining valuations from independent pricing services 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 at the NASDAQ Official Closing Price ("NOCP")
13
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 sale of a security on a particular day, the independent pricing services may value the security based on market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in non-exchange traded investment companies are valued using the respective 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, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not readily available, the security is valued using methods the Board has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Numerous factors may be considered when determining the fair value of a security based on Level 2 or Level 3 inputs, including available analyst, media or other reports, securities within the same industry with recent highly correlated performance, trading in futures or American Depositary Receipts ("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 normally translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m. Eastern Time on days the New York Stock Exchange ("NYSE") is open for business. The Board has approved the use of 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 time as of which a Fund's share price is calculated, 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.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are normally translated into U.S. dollars using the exchange rate as of 4:00 p.m. Eastern Time, on days the NYSE is open for business 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.
14
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 Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of the Fund to continue to qualify for treatment as a regulated investment company ("RIC") by complying with the requirements of the U.S. Internal Revenue Code applicable to RICs and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent the Fund distributes substantially all of its net investment income and net realized capital gains 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 tax years for which the applicable statutes of limitations have not yet expired. As of June 30, 2017, the Fund did not have any unrecognized tax positions.
At June 30, 2017, the cost of investments on a U.S. federal income tax basis was $73,918,325. Gross unrealized appreciation of investments was $13,518,302 and gross unrealized depreciation of investments was $3,506,884 resulting in net unrealized appreciation of $10,011,418 based on cost for U.S. federal income tax purposes.
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. The Fund may also utilize earnings and profits distributed to shareholders on redemption of their shares as a part of the dividends-paid deduction for income tax purposes.
As determined on December 31, 2016, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences are attributed to the tax treatment of: foreign currency gains and losses, gains and losses from passive foreign investment companies (PFICs), expiration of capital loss carryforwards and distributions in excess. 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, 2016, the Fund recorded the following permanent reclassifications:
| Paid-in Capital | | Undistributed
Net Investment
Income/(Loss) | | Accumulated
Net Realized
Gains/(Losses)
on Investments | |
| $ | (67,038,387 | ) | | $ | (20,128 | ) | | $ | 67,058,515 | | |
The tax character of distributions paid during the years ended December 31, 2016 and December 31, 2015 was as follows:
Distributions Paid From: | |
Ordinary Income | | Long-Term
Capital Gain | | Total | |
| 2016 | | 2015 | | 2016 | | 2015 | | 2016 | | 2015 | |
| $ | 464,454 | | | $ | 743,251 | | | $ | 392,444 | | | $ | 215,188 | | | $ | 856,898 | | | $ | 958,439 | | |
15
As of December 31, 2016, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed
Ordinary
Income | | Undistributed
Long-Term
Capital Gain | | Unrealized
Appreciation/
(Depreciation) | | Loss
Carryforwards
and Deferrals | | Other
Temporary
Differences | | Total | |
| $ | 534,833 | | | $ | — | | | $ | (751,393 | ) | | $ | (63,740,239 | ) | | $ | 2 | | | $ | (63,956,797 | ) | |
The temporary differences between book basis and tax basis distributable earnings are primarily due to: losses disallowed and recognized on wash sales, mark-to-market adjustments on forwards, PFIC adjustments 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 Modernization Act of 2010 (the "Act") made 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, 2016, 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:
2017 | |
| $ | 63,586,748 | | |
Post-Enactment (No Expiration Date) | |
| Long-Term | | Short-Term | |
| $ | 153,491 | | | $ | — | | |
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, 2016, the Fund had capital loss carryforwards expire of $67,038,387.
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, are generally 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, if any, represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds within the complex of related investment companies. Expenses directly attributable to a Fund are charged to that Fund. 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 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,
16
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 Unaffiliated investment company securities and exchange-traded funds: The Fund may invest in shares of other registered investment companies, including exchange-traded funds ("ETFs"), within the limitations prescribed by the 1940 Act or pursuant to an exemptive order from the U.S. Securities and Exchange Commission ("SEC") that permits the Fund to invest in both affiliated and unaffiliated investment companies, including exchange-traded funds, in excess of the limits in Section 12(d)(1)(A) of the 1940 Act, as amended, subject to the terms and conditions of such order. Some ETFs seek to track the performance of a particular market index. These indices include both broad-based market indices and more narrowly-based indices, including those relating to particular sectors, markets, regions or industries. However, some ETFs have an actively-managed investment objective. ETF shares are traded like traditional equity securities on a national securities exchange or NASDAQ. A Fund will indirectly bear its proportionate share of any management fees and other expenses paid by such other investment companies, which will increase expenses and decrease returns.
11 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers ("Officers") and trustees ("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.
Note B—Investment Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:
The Fund retains Management as its investment manager under a Management Agreement. For such investment management services, the Fund pays Management a fee at the annual rate of 0.85% of the first $250 million of the Fund's average daily net assets, 0.825% of the next $250 million, 0.80% of the next $250 million, 0.775% of the next $250 million, 0.75% of the next $500 million, 0.725% of the next $1 billion, and 0.70% of average daily net assets in excess of $2.5 billion. Accordingly, for the six months ended June 30, 2017, the investment 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.
Neuberger Berman BD LLC (the "Distributor") is the Fund's "principal underwriter" within the meaning of the 1940 Act. It acts as agent in arranging for the sale of the Fund's Class S shares. The Board has adopted a distribution and shareholder services plan (the "Plan") for Class S shares pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that, as compensation for administrative and other services related to the sale and distribution of Class S, and ongoing services provided to investors in the class, the Distributor receives from Class S a fee at the annual rate of 0.25% of Class S's average daily net assets. Distributor may pay a portion of the proceeds from the 12b-1 fee to institutions that provide such services, including insurance companies or their affiliates and qualified plan administrators ("intermediaries") for services they provide respecting the Fund to current and prospective variable contract owners and qualified plan participants that invest in the Fund through the intermediaries. Those
17
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 class during any year may be more or less than the cost of distribution and other services provided to the 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 Plan complies with those rules.
Management has contractually agreed to waive fees and/or reimburse the Fund so that the total annual operating expenses do not exceed the expense limitations as detailed in the following table. These undertakings include fees payable to Management but exclude interest (commitment fees relating to borrowings are treated as interest for purposes of this exclusion), taxes, transaction costs, brokerage commissions, dividend and interest expenses relating to short sales, acquired fund fees and expenses and extraordinary expenses, if any; consequently, net expenses may exceed the contractual expense limitation. The Fund has agreed that it will repay Management for fees and expenses waived or reimbursed provided that repayment does not cause the annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were waived or reimbursed, or the expense limitation in place at the time the Fund repays Management, whichever is lower. Any such repayment must be made within three years after the year in which Management incurred the expense.
During the six months ended June 30, 2017, there was no repayment to Management under its contractual expense limitation.
At June 30, 2017, the Fund's contingent liabilities to Management under its contractual expense limitation were as follows:
| | | | | | | Expenses Reimbursed in
Year Ending December 31, | |
| | | | | | | 2014 | | 2015 | | 2016 | | 2017 | |
| | | | | | | Subject to Repayment until December 31, | |
Class | | Contractual
Expense
Limitation(a) | | Expiration | | 2017 | | 2018 | | 2019 | | 2020 | |
Class S | | | 1.50 | % | | 12/31/20 | | $ | 186,119 | | | $ | 177,317 | | | $ | 201,256 | | | $ | 63,023 | | |
(a) Expense limitation per annum of the Fund's average daily net assets.
Neuberger Berman LLC ("Neuberger") was retained by Management through December 31, 2015, pursuant to a Sub-Advisory Agreement 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. As a result of the entity consolidation described on page 3 of this Semi-Annual Report, the services previously provided by Neuberger under the Sub-Advisory Agreement are now provided by NBIA as of January 1, 2016.
Note C—Securities Transactions:
During the six months ended June 30, 2017, there were purchase and sale transactions of long-term securities of $9,052,794 and $9,891,178, respectively.
During the six months ended June 30, 2017, no brokerage commissions on securities transactions were paid to affiliated brokers.
18
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2017 and for the year ended December 31, 2016 was as follows:
| | | For the
Six Months Ended
June 30,
2017 | | For the
Year Ended
December 31,
2016 | |
Shares Sold | | | 56,906 | | | | 453,196 | | |
Shares Issued on Reinvestment of Dividends and Distributions | | | — | | | | 78,184 | | |
Shares Redeemed | | | (245,024 | ) | | | (475,991 | ) | |
Total | | | (188,118 | ) | | | 55,389 | | |
Note E—Line of Credit:
At June 30, 2017, the Fund was a participant in a syndicated committed, unsecured $700,000,000 line of credit (the "Credit Facility"), to be used only for temporary or emergency purposes. Series of other investment companies managed by Management also participate in this line of credit on substantially the same terms except that some do not have access to the full amount of the Credit Facility. Interest is charged on borrowings under this Credit Facility at the highest of (a) a federal funds effective rate plus 1.00% per annum, (b) a Eurodollar rate for a one-month period plus 1.00% per annum, and (c) an overnight bank funding rate plus 1.00% per annum. The Credit Facility has an annual commitment fee of 0.15% per annum of the available line of credit, which is paid quarterly. The Fund has agreed to pay its pro rata share of the annual commitment fee, 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 and the level of its access to the Credit Facility, and interest charged on any borrowing made by the Fund and other costs incurred by such Fund. Because several mutual funds participate in the Credit Facility, there is no assurance that an individual Fund will have access to all or any part of the $700,000,000 at any particular time. There were no loans outstanding under the Credit Facility at June 30 2017. During the period ended June 30, 2017, the Fund did not utilize the Credit Facility.
Note F—Recent Accounting Pronouncement:
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017, for reports with a period-end date after that date. Management is currently evaluating the impact, if any, that the adoption of the amendments to Regulation S-X will have on the Fund's financial statements and related disclosures.
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
International Equity Portfolio
The following table includes selected data for a share outstanding throughout each period and other performance information derived from the Financial Statements. Amounts that do not round to $0.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Ratios that do not round to 0.01% or (0.01)% are presented as 0.00% or (0.00)%, respectively. A "—" indicates that the line item was not applicable in the corresponding period.
Class S | |
| | | Six Months
Ended
June 30, | | Year Ended December 31, | |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| | | (Unaudited) | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | $ | 10.82 | | | $ | 11.15 | | | $ | 11.12 | | | $ | 11.54 | | | $ | 9.93 | | | $ | 8.45 | | |
Income From Investment Operations: | |
| Net Investment Income/(Loss)@ | | | 0.08 | | | | 0.08 | | | | 0.07 | | | | 0.10 | | | | 0.09 | | | | 0.10 | | |
Net Gains or Losses on Securities
(both realized and unrealized) | | | 1.54 | | | | (0.28 | ) | | | 0.10 | | | | (0.48 | ) | | | 1.67 | | | | 1.46 | | |
Total From Investment Operations | | | 1.62 | | | | (0.20 | ) | | | 0.17 | | | | (0.38 | ) | | | 1.76 | | | | 1.56 | | |
Less Distributions From: | |
Net Investment Income | | | — | | | | (0.07 | ) | | | (0.11 | ) | | | (0.04 | ) | | | (0.15 | ) | | | (0.08 | ) | |
Net Realized Capital Gains | | | — | | | | (0.06 | ) | | | (0.03 | ) | | | — | | | | — | | | | — | | |
Total Distributions | | | — | | | | (0.13 | ) | | | (0.14 | ) | | | (0.04 | ) | | | (0.15 | ) | | | (0.08 | ) | |
Voluntary Contribution from Management | | | — | | | | — | | | | — | | | | 0.00 | | | | — | | | | — | | |
Net Asset Value, End of Period | | $ | 12.44 | | | $ | 10.82 | | | $ | 11.15 | | | $ | 11.12 | | | $ | 11.54 | | | $ | 9.93 | | |
| Total Return† | | | 14.97 | %* | | | (1.82 | )% | | | 1.53 | %^ | | | (3.27 | )%µ | | | 17.83 | % | | | 18.48 | % | |
Ratios/Supplemental Data | |
Net Assets, End of Period (in millions) | | $ | 83.7 | | | $ | 74.8 | | | $ | 76.5 | | | $ | 77.3 | | | $ | 22.0 | | | $ | 19.7 | | |
Ratio of Gross Expenses to
Average Net Assets# | | | 1.66 | %** | | | 1.78 | % | | | 1.73 | % | | | 1.77 | % | | | 2.48 | % | | | 2.55 | % | |
Ratio of Net Expenses
to Average Net Assets | | | 1.50 | %** | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % | | | 1.50 | % | | | 1.51 | %Ø | |
Ratio of Net Investment Income/(Loss)
to Average Net Assets | | | 1.42 | %** | | | 0.76 | % | | | 0.61 | % | | | 0.90 | % | | | 0.88 | % | | | 1.11 | % | |
Portfolio Turnover Rate | | | 12 | %* | | | 28 | % | | | 27 | % | | | 35 | % | | | 33 | % | | | 33 | % | |
See Notes to Financial Highlights
20
Notes to Financial Highlights International Equity Portfolio
(Unaudited)
@ Calculated based on the average number of shares outstanding during each fiscal period.
† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period. Returns assume 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 accounts or the related insurance policies or other qualified pension or retirement plans, and the inclusion of these charges and other expenses would reduce the total return for all fiscal periods shown.
* Not annualized.
^ The class action proceeds received in 2015 had no impact on the Fund's total return for the year ended December 31, 2015.
µ The voluntary contribution received in 2014 had no impact on the Fund's total return for the year ended December 31, 2014.
# 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.
** Annualized.
Ø Prior to January 1, 2013, the Fund had an expense offset arrangement in connection with its custodian contract. The impact of expense reductions related to expense offset arrangements, if any, was less than 0.01%.
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 800-877-9700 (toll-free) and on the Securities and Exchange Commission's website 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 upon request, without charge, by calling 800-877-9700 (toll-free), on the Securities and Exchange Commission's website 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 800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 800-877-9700 (toll free).
22
Neuberger Berman
Advisers Management Trust
Large Cap Value Portfolio
I Class Shares
Semi-Annual Report
June 30, 2017
Large Cap Value Portfolio Commentary
The Neuberger Berman Advisers Management Trust Large Cap Value Portfolio Class I posted a total return of 4.53% for the six months ended June 30, 2017, underperforming the 4.66% return of its benchmark, the Russell 1000® Value Index (Index), for the same period.
In the first two months of the year equities rose rather steadily as companies positioned to benefit from the President's pledges to cut taxes and ease financial regulations led the market upwards. A rebound in oil prices in the wake of OPEC's decision to curb production further bolstered the market during the period. Stocks wavered at times, however, as news fueled skepticism about the stability of the Trump administration and its ability to implement policy changes. In addition, a downward move in oil prices and geopolitical events including the Presidential elections in France and escalating tensions with North Korea caused some dips in the market. Yet the U.S. Federal Reserve (Fed) grew more upbeat on the economy, raising interest rates twice during the period, and stocks gained significant ground driven mainly by strong corporate profits and a recovering global economy.
Within the Index, Health Care and Information Technology have been performance leaders over the past six months. The more defensive Consumer Staples and Utilities sectors also outperformed as investors sought to safeguard against risk amidst rising equity valuations. The Energy sector tumbled during the period as oil supplies remained elevated and crude prices fell, and the Telecommunication Services sector declined as well owing in part to escalating price competition among the companies in the sector.
In terms of the Fund, an underweight allocation and superior stock selection within Energy provided the largest lift to performance relative to the Index, as the Fund's holdings generally held up far better than those in the Index's sector. Consumer Discretionary was also an area of relative strength owing mainly to the Fund's sizeable exposure to the Hotels, Restaurants & Leisure industry, which has outperformed alongside the improving global economy. Industrials further lifted relative results due mainly to the Electrical Equipment industry, where an investment rose markedly over the period owing to positive company-specific developments.
Health Care was the largest detractor from relative performance during the period. The Fund's Health Care stocks in aggregate produced solid returns yet fell short of the Index constituents as we were underweight certain industries, such as Health Care Providers & Services, that did especially well in the Index. Our relative underweight to the outperforming Utilities sector also detracted from relative returns, as did weaker stock returns in Materials, where the shortfall was mainly due to our overweight in the declining Metals & Mining industry.
If, as we expect, the global economy continues to improve, we believe that corporate earnings growth could remain on an upward trend and promote further appreciation in stocks. However, economic progress has been slow and the Fed and central banks around the world are beginning to tighten rates and reduce their balance sheets, which we believe could cause some upheaval for the macro environment. Furthermore, we believe equity valuations are elevated making it increasingly challenging for companies to generate enough profits to justify their stock prices. With these factors in mind we continue to evaluate all market dislocations for investment opportunities. Our portfolio construction strategy entails looking to identify underappreciated stocks with hidden value that can be realized if specific catalysts play out over time. We believe that this approach is fundamental to generating favorable returns over the long term.
Sincerely,
ELI M. SALZMANN
PORTFOLIO MANAGER
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund's portfolio manager. The opinions are as of the date of this report, and are subject to change without notice.
1
Large Cap Value Portfolio
SECTOR ALLOCATION
(as a % of Total Investments*) | |
Consumer Discretionary | | | 7.7 | % | |
Consumer Staples | | | 11.9 | | |
Energy | | | 10.2 | | |
Financials | | | 21.6 | | |
Health Care | | | 13.4 | | |
Industrials | | | 5.5 | | |
Information Technology | | | 1.7 | | |
Materials | | | 6.8 | | |
Telecommunication Services | | | 2.3 | | |
Ulilities | | | 5.1 | | |
Short-Term Investment | | | 13.8 | | |
Total | | | 100.0 | % | |
* Derivatives, if any, are excluded from this chart.
PERFORMANCE HIGHLIGHTS
| | Inception | | Six Month
Period Ended | | Average Annual Total Return
Ended 06/30/2017 | |
| | Date | | 06/30/2017 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund | |
Large Cap Value
Portolio Class I | | |
03/22/1994 | | | | 4.53 | % | | | 22.29 | % | | | 13.46 | % | | | 4.20 | % | | | 8.43 | % | |
Russell 1000®
Value Index1,2 | | | | | | | 4.66 | % | | | 15.53 | % | | | 13.94 | % | | | 5.57 | % | | | 9.58 | % | |
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 http://www.nb.com/amtportfolios/performance.
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 Fund distributions or on the redemption of Fund 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 Fund.
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 Investment Advisers 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 Fund's most recent prospectus, the total annual operating expense ratio for fiscal year 2016 was 1.19% for Class I shares (before expense reimbursements and/or fee waivers, if any). The expense ratios for the semi-annual period ended June 30, 2017 can be found in the Financial Highlights section of this report.
2
1 The date used to calculate Life of Fund performance for the index is March 22, 1994, the Fund's commencement of operations.
2 The Russell 1000® Value Index is a float-adjusted market capitalization-weighted index that measures the performance of the large-cap value segment of the U.S. equity market. It includes those Russell 1000® Index companies with lower price-to-book ratios and lower forecasted growth rates. The index is rebalanced annually in June. The Russell 1000 Index is a float-adjusted market capitalization-weighted index that measures the performance of the large-cap segment of the U.S. equity market, and includes approximately 1,000 of the largest securities in the Russell 3000® Index (which measures the performance of the 3,000 largest U.S. public companies based on total market capitalization). The index is rebalanced annually in June. Please note that the indices described in this report 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 are prepared or obtained by Neuberger Berman Investment Advisers LLC* ("Management") and reflect the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and generally does not invest in all securities included in a described index.
* On January 1, 2016, Neuberger Berman Management LLC ("NBM") transferred to Neuberger Berman Fixed Income LLC ("NBFI") its rights and obligations pertaining to all services it provided to any Fund under any investment management, investment sub-advisory, and/or administration agreement, as applicable (the "Agreements"). Following such transfer, NBFI was renamed Neuberger Berman Investment Advisers LLC ("NBIA" or "Management"). Following the consolidation, the investment professionals of NBM who provided services to the Fund under the Agreements continue to provide the same services, except that they provide those services in their new capacities as investment professionals of NBIA. Further, the consolidation did not result in any change in the investment processes employed by the Fund, the nature or level of services provided to the Fund, or the fees the Fund pays under its Agreements.
On July 1, 2016, NBM was reorganized into Neuberger Berman LLC ("Neuberger Berman") (the "Reorganization"). Upon the completion of the Reorganization, Neuberger Berman assumed all rights and obligations pertaining to all services NBM provided to the Fund under any distribution agreement or distribution and services agreement (the "Agreements") or plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, (the "Plans"). Accordingly, after the Reorganization, Neuberger Berman became the Fund's distributor and the services previously provided by NBM under the Agreements and Plans are provided by Neuberger Berman.
Following the Reorganization, the employees of NBM provide the same services to the Fund under the Agreements and Plans, except that they provide those services in their capacities as employees of Neuberger Berman. Further, the Reorganization did not result in any change in the nature or level of services provided to the Fund, or the fees, if any, the Fund pays under the Agreements or the Plans.
On January 1, 2017, the Fund's distributor, Neuberger Berman, changed its name to Neuberger Berman BD LLC.
The investments for the Fund are managed by the same portfolio manager(s) who manage(s) one or more other registered funds that have names, investment objectives and investment styles that are similar to those of the Fund. You should be aware that the Fund is likely to differ from those other mutual fund(s) in size, cash flow pattern and tax matters. Accordingly, the holdings and performance of the Fund can be expected to vary from those of the other mutual fund(s).
Shares of the separate Neuberger Berman Advisers Management Trust Portfolios, including the Fund, are not available to the general public. Shares of the Fund may be purchased only by life insurance companies to be held in their separate accounts, which 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 Fund. This report is prepared for the general information of shareholders and is not an offer of shares of the Fund. Shares are sold only through the currently effective prospectus, which must precede or accompany this report.
The "Neuberger Berman" name and logo and "Neuberger Berman Investment Advisers LLC" are registered service marks of Neuberger Berman Group LLC. The individual Fund name in this piece is either a service mark or registered service mark of Neuberger Berman Investment Advisers LLC , an affiliate of Neuberger Berman BD LLC, distributor, member FINRA.
© 2017 Neuberger Berman BD 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 U.S. 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, 2017 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 indicated. 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 Example
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST LARGE CAP VALUE PORTFOLIO
Actual | | Beginning Account
Value
1/1/17 | | Ending Account
Value
6/30/17 | | Expenses Paid During
the Period
1/1/17 – 6/30/17 | |
Class I | | $ | 1,000.00 | | | $ | 1,045.30 | | | $ | 4.92 | *^ | |
Hypothetical (5% annual return before expenses) | |
Class I | | $ | 1,000.00 | | | $ | 1,019.98 | | | $ | 4.86 | **^ | |
* Expenses are equal to the annualized expense ratio of 0.97%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in this ratio on a non-annualized basis.
** Hypothetical expenses are equal to the annualized expense ratio of 0.97%, multiplied by the average account value over the period (assuming a 5% annual return), multiplied by 181/365 (to reflect the one-half year period shown).
^ Had the Fund not received the Custodian Out-of-Pocket Expenses Refunded (see Note F of Notes to Financial Statements), the expense ratio would have been 1.09%.
4
Schedule of Investments Large Cap Value Portfolio (Unaudited) June 30, 2017
NUMBER OF SHARES | | | | VALUE | |
Common Stocks 86.4% | | | |
Airlines 0.8% | | | |
| | 10,857 | | | Delta Air Lines, Inc. | | $ | 583,455 | | |
Banks 17.0% | | | |
| | 28,956 | | | Bank of America Corp. | | | 702,472 | | |
| | 42,665 | | | Citigroup, Inc. | | | 2,853,435 | | |
| | 41,524 | | | JPMorgan Chase & Co. | | | 3,795,294 | | |
| | 14,816 | | | KeyCorp | | | 277,652 | | |
| | 9,106 | | | M&T Bank Corp. | | | 1,474,717 | | |
| | 13,926 | | | PNC Financial Services Group, Inc. | | | 1,738,940 | | |
| | 12,737 | | | U.S. Bancorp | | | 661,305 | | |
| | 14,561 | | | Wells Fargo & Co. | | | 806,825 | | |
| | | | 12,310,640 | | |
Beverages 0.9% | | | |
| | 14,299 | | | Coca-Cola Co. | | | 641,310 | | |
Capital Markets 1.5% | | | |
| | 8,554 | | | CME Group, Inc. | | | 1,071,303 | | |
Chemicals 1.3% | | | |
| | 3,740 | | | Praxair, Inc. | | | 495,737 | | |
| | 6,015 | | | WR Grace & Co. | | | 433,140 | | |
| | | | 928,877 | | |
Containers & Packaging 0.7% | | | |
| | 8,880 | | | Crown Holdings, Inc. | | | 529,781 | * | |
Diversified Telecommunication Services 2.3% | | | |
| | 17,866 | | | AT&T, Inc. | | | 674,084 | | |
| | 22,418 | | | Verizon Communications, Inc. | | | 1,001,188 | | |
| | | | 1,675,272 | | |
Electric Utilities 4.2% | | | |
| | 8,834 | | | Alliant Energy Corp. | | | 354,862 | | |
| | 10,126 | | | American Electric Power Co., Inc. | | | 703,453 | | |
| | 50,656 | | | Exelon Corp. | | | 1,827,162 | | |
| | 1,078 | | | NextEra Energy, Inc. | | | 151,060 | | |
| | | | 3,036,537 | | |
Electrical Equipment 2.3% | | | |
| | 21,601 | | | Eaton Corp. PLC | | | 1,681,206 | | |
Energy Equipment & Services 1.1% | | | |
| | 12,222 | | | Schlumberger Ltd. | | | 804,696 | | |
NUMBER OF SHARES | | | | VALUE | |
Food & Staples Retailing 4.6% | | | |
| | 37,766 | | | Wal-Mart Stores, Inc. | | $ | 2,858,131 | | |
| | 10,872 | | | Whole Foods Market, Inc. | | | 457,820 | | |
| | | | 3,315,951 | | |
Food Products 2.3% | | | |
| | 3,387 | | | Kraft Heinz Co. | | | 290,063 | | |
| 32,064 | | | Mondelez International, Inc.
Class A | | | 1,384,844 | | |
| | | | 1,674,907 | | |
Health Care Equipment & Supplies 3.5% | | | |
| | 16,805 | | | Abbott Laboratories | | | 816,891 | (a) | |
| | 7,121 | | | Medtronic PLC | | | 631,989 | | |
| | 8,481 | | | Zimmer Biomet Holdings, Inc. | | | 1,088,960 | | |
| | | | 2,537,840 | | |
Health Care Providers & Services 0.3% | | | |
| | 784 | | | AmerisourceBergen Corp. | | | 74,111 | | |
| | 1,284 | | | HCA Holdings, Inc. | | | 111,965 | * | |
| | | | 186,076 | | |
Hotels, Restaurants & Leisure 5.4% | | | |
| | 49,894 | | | Carnival Corp. | | | 3,271,550 | | |
| | 4,409 | | | McDonald's Corp. | | | 675,282 | | |
| | | | 3,946,832 | | |
Household Durables 0.7% | | | |
| | 2,671 | | | Whirlpool Corp. | | | 511,817 | | |
Household Products 3.2% | | | |
| | 26,922 | | | Procter & Gamble Co. | | | 2,346,252 | | |
Industrial Conglomerates 0.6% | | | |
| | 2,099 | | | 3M Co. | | | 436,991 | | |
Insurance 3.2% | | | |
| | 9,255 | | | American International Group, Inc. | | | 578,622 | | |
| | 18,426 | | | Athene Holding Ltd. Class A | | | 914,114 | * | |
| | 2,005 | | | Chubb Ltd. | | | 291,487 | | |
| | 8,357 | | | Lincoln National Corp. | | | 564,766 | | |
| | | | 2,348,989 | | |
Machinery 1.6% | | | |
| | 7,628 | | | Caterpillar, Inc. | | | 819,705 | | |
| | 2,613 | | | WABCO Holdings, Inc. | | | 333,184 | * | |
| | | | 1,152,889 | | |
See Notes to Financial Statements
5
Schedule of Investments Large Cap Value Portfolio (Unaudited) (cont'd)
NUMBER OF SHARES | | | | VALUE | |
Metals & Mining 4.8% | | | |
| | 2,072 | | | Agnico Eagle Mines Ltd. | | $ | 93,489 | | |
| | 104,726 | | | Newmont Mining Corp. | | | 3,392,075 | | |
| | | | 3,485,564 | | |
Multi-Utilities 1.0% | | | |
| | 27,294 | | | NiSource, Inc. | | | 692,176 | | |
Oil, Gas & Consumable Fuels 9.1% | | | |
| | 79,819 | | | Cabot Oil & Gas Corp. | | | 2,001,861 | | |
| | 3,737 | | | EOG Resources, Inc. | | | 338,273 | | |
| | 39,176 | | | Exxon Mobil Corp. | | | 3,162,678 | | |
| | 5,482 | | | Phillips 66 | | | 453,307 | | |
| | 24,861 | | | Rice Energy, Inc. | | | 662,048 | * | |
| | | | 6,618,167 | | |
Personal Products 0.9% | | | |
| | 7,174 | | | Estee Lauder Cos., Inc. Class A | | | 688,561 | | |
Pharmaceuticals 9.7% | | | |
| | 6,462 | | | Eli Lilly & Co. | | | 531,822 | | |
| | 18,879 | | | Johnson & Johnson | | | 2,497,503 | | |
| | 22,670 | | | Merck & Co., Inc. | | | 1,452,920 | | |
| | 957 | | | Perrigo Co. PLC | | | 72,273 | | |
| | 73,018 | | | Pfizer, Inc. | | | 2,452,675 | | |
| | | | 7,007,193 | | |
Road & Rail 0.2% | | | |
| | 913 | | | Canadian Pacific Railway Ltd. | | | 146,820 | | |
NUMBER OF SHARES | | | | VALUE | |
Semiconductors & Semiconductor Equipment 1.1% | | | |
| | 7,585 | | | NXP Semiconductors NV | | $ | 830,178 | * | |
Specialty Retail 0.6% | | | |
| | 17,123 | | | Gap, Inc. | | | 376,535 | | |
| | 1,340 | | | L Brands, Inc. | | | 72,212 | | |
| | | | 448,747 | | |
Technology Hardware, Storage & Peripherals 0.6% | | | |
| | 4,617 | | | Western Digital Corp. | | | 409,066 | | |
Textiles, Apparel & Luxury Goods 0.9% | | | |
| | 5,372 | | | Coach, Inc. | | | 254,311 | | |
| | 7,529 | | | VF Corp. | | | 433,670 | | |
| | | | 687,981 | | |
| | | | Total Common Stocks
(Cost $55,670,487) | | | 62,736,074 | | |
Short-Term Investment 13.9% | | | |
Investment Company 13.9% | | | |
| 10,085,529
| | | State Street Institutional
U.S. Government Money
Market Fund Premier
Class, 0.88%
(Cost $10,085,529) | | | 10,085,529
| (b)(c) | |
| | | | Total Investments 100.3%
(Cost $65,756,016) | | | 72,821,603 | | |
| | | | | Other Assets Less Liabilities (0.3)% | | | (213,284 | )(d) | |
| | | | | Net Assets 100.0% | | $ | 72,608,319 | | |
* Non-income producing security.
(a) All or a portion of the security is pledged as collateral for options written.
(b) Represents 7-day effective yield as of June 30, 2017.
(c) All or a portion of this security is segregated in connection with obligations for options written with a total value of $10,085,529.
(d) Includes the impact of the Fund's open positions in derivatives at June 30, 2017.
See Notes to Financial Statements
6
Schedule of Investments Large Cap Value Portfolio (Unaudited) (cont'd)
Derivative Instruments
Written option contracts ("options written") | |
At June 30, 2017, the Fund had outstanding options written as follows:
Name of Issuer | | Contracts | | Exercise
Price | | Expiration
Date | | Market Value
of Options | |
Bank of America Corp., Call | | | 140 | | | $ | 25 | | | 8/18/2017 | | $ | (7,630 | ) | |
Caterpillar, Inc., Call | | | 38 | | | | 115 | | | 9/15/2017 | | | (5,434 | ) | |
Western Digital Corp., Call | | | 46 | | | | 105 | | | 9/15/2017 | | | (5,658 | ) | |
Total (premium received: $22,583) | | | | | | | | $ | (18,722 | ) | |
Options written for the Fund for the six months ended June 30, 2017 were as follows:
| | | Number of
Contracts | | Premium
Received | |
Outstanding 12/31/2016 | | | — | | | $ | — | | |
Options written | | | 224 | | | | 22,583 | | |
Options expired | | | — | | | | — | | |
Options exercised | | | — | | | | — | | |
Options closed | | | — | | | | — | | |
Outstanding 6/30/2017 | | | 224 | | | $ | 22,583 | | |
For the six months ended June 30, 2017, the Fund had an average market value of $(18,722) in options written. At June 30, 2017, the Fund had securities pledged in the amount of $194,440 to cover collateral requirements for options written.
The following is a summary, categorized by Level (see Note A of Notes to Financial Statements), of inputs used to value the Fund's investments as of June 30, 2017:
Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
Investments: | |
| Common Stocks(a) | | $ | 62,736,074 | | | $ | — | | | $ | — | | | $ | 62,736,074 | | |
Short-Term Investment | | | — | | | | 10,085,529 | | | | — | | | | 10,085,529 | | |
Total Investments | | $ | 62,736,074 | | | $ | 10,085,529 | | | $ | — | | | $ | 72,821,603 | | |
(a) The Schedule of Investments provides information on the industry categorization for the portfolio.
As of the six months ended June 30, 2017, no securities were transferred from one level (as of December 31, 2016) to another.
The following is a summary, categorized by Level (see Note A of Notes to Financial Statements), of inputs used to value the Fund's derivatives as of June 30, 2017:
Other Financial Instruments | | Level 1 | | Level 2 | | Level 3 | | Total | |
Options Written | |
Liabilities | | $ | (18,722 | ) | | $ | — | | | $ | — | | | $ | (18,722 | ) | |
Total | | $ | (18,722 | ) | | $ | — | | | $ | — | | | $ | (18,722 | ) | |
See Notes to Financial Statements
7
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | LARGE CAP VALUE
PORTFOLIO | |
| | | June 30, 2017 | |
Assets | |
Investments in securities, at value* (Note A)—see Schedule of Investments: | |
Unaffiliated issuers | | $ | 72,821,603 | | |
Dividends and interest receivable | | | 52,447 | | |
Receivable for securities sold | | | 278,214 | | |
Receivable for Fund shares sold | | | 3,683 | | |
Receivable from broker | | | 22,591 | | |
Prepaid expenses and other assets | | | 16,064 | | |
Total Assets | | | 73,194,602 | | |
Liabilities | |
Payable to investment manager (Note B) | | | 32,762 | | |
Option contracts written, at value** (Note A) | | | 18,722 | | |
Due to custodian | | | 39,850 | | |
Payable for securities purchased | | | 363,345 | | |
Payable for Fund shares redeemed | | | 52,994 | | |
Payable to administrator (Note B) | | | 17,870 | | |
Payable to trustees | | | 10,348 | | |
Accrued expenses and other payables | | | 50,392 | | |
Total Liabilities | | | 586,283 | | |
Net Assets | | $ | 72,608,319 | | |
Net Assets consist of: | |
Paid-in capital | | $ | 58,238,562 | | |
Undistributed net investment income/(loss) | | | 913,113 | | |
Accumulated net realized gains/(losses) on investments | | | 6,387,193 | | |
Net unrealized appreciation/(depreciation) in value of investments | | | 7,069,451 | | |
Net Assets | | $ | 72,608,319 | | |
Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 4,558,519 | | |
Net Asset Value, offering and redemption price per share | | $ | 15.93 | | |
*Cost of Investments | | | $65,756,016 | | |
**Premium received from option contracts written | | | $22,583 | | |
See Notes to Financial Statements
8
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | LARGE CAP VALUE
PORTFOLIO | |
| | | For the
Six Months Ended
June 30, 2017 | |
Investment Income: | |
Income (Note A): | |
Dividend income—unaffiliated issuers | | $ | 773,147 | | |
Interest income—unaffiliated issuers | | | 33,615 | | |
Foreign taxes withheld (Note A) | | | (59 | ) | |
Total income | | $ | 806,703 | | |
Expenses: | |
Investment management fees (Note B) | | | 201,151 | | |
Administration fees (Note B) | | | 109,719 | | |
Audit fees | | | 23,088 | | |
Custodian and accounting fees | | | 15,438 | | |
Insurance expense | | | 1,017 | | |
Legal fees | | | 12,976 | | |
Shareholder reports | | | 11,909 | | |
Trustees' fees and expenses | | | 21,514 | | |
Miscellaneous | | | 1,920 | | |
Total expenses | | | 398,732 | | |
Custodian out-of-pocket expenses refunded (Note F) | | | (90,198 | ) | |
Total net expenses | | | 308,534 | | |
Net investment income/(loss) | | $ | 498,169 | | |
Realized and Unrealized Gain/(Loss) on Investments (Note A): | |
Net realized gain/(loss) on: | |
Sales of investment securities of unaffiliated issuers | | | 5,387,595 | | |
Change in net unrealized appreciation/(depreciation) in value of: | |
Unaffiliated investment securities | | | (2,594,941 | ) | |
Foreign currency | | | 3 | | |
Option contracts written | | | 3,861 | | |
Net gain/(loss) on investments | | | 2,796,518 | | |
Net increase/(decrease) in net assets resulting from operations | | $ | 3,294,687 | | |
See Notes to Financial Statements
9
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | LARGE CAP VALUE PORTFOLIO | |
| | | Six Months Ended
June 30,
2017
(Unaudited) | | Year Ended
December 31,
2016 | |
Increase/(Decrease) in Net Assets: | |
From Operations (Note A): | |
Net investment income/(loss) | | $ | 498,169 | | | $ | 528,833 | | |
Net realized gain/(loss) on investments | | | 5,387,595 | | | | 2,210,949 | | |
Change in net unrealized appreciation/(depreciation) of investments | | | (2,591,077 | ) | | | 12,260,639 | | |
Net increase/(decrease) in net assets resulting from operations | | | 3,294,687 | | | | 15,000,421 | | |
Distributions to Shareholders From (Note A): | |
Net investment income | | | — | | | | (470,886 | ) | |
Net realized gain on investments | | | — | | | | (5,161,853 | ) | |
Total distributions to shareholders | | | — | | | | (5,632,739 | ) | |
From Fund Share Transactions (Note D): | |
Proceeds from shares sold | | | 5,328,620 | | | | 26,374,250 | | |
Proceeds from reinvestment of dividends and distributions | | | — | | | | 5,632,739 | | |
Payments for shares redeemed | | | (14,636,948 | ) | | | (16,092,373 | ) | |
Net increase/(decrease) from Fund share transactions | | | (9,308,328 | ) | | | 15,914,616 | | |
Net Increase/(Decrease) in Net Assets | | | (6,013,641 | ) | | | 25,282,298 | | |
Net Assets: | |
Beginning of period | | | 78,621,960 | | | | 53,339,662 | | |
End of period | | $ | 72,608,319 | | | $ | 78,621,960 | | |
Undistributed net investment income/(loss) at end of period | | $ | 913,113 | | | $ | 414,944 | | |
See Notes to Financial Statements
10
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 an Amended and Restated Trust Instrument dated March 27, 2014. The Trust is currently comprised of eight separate operating series (each individually a "Fund," 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. Neuberger Berman Advisers Management Trust Large Cap Value Portfolio (the "Fund") currently offers only Class I shares. The Trust's Board of Trustees (the "Board") may establish additional series or classes of shares without the approval of shareholders.
The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946 "Financial Services—Investment Companies."
The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires Neuberger Berman Investment Advisers LLC ("NBIA" or "Management") to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Shares of the Fund are not available to the general public and may be purchased only by life insurance companies to serve as an investment vehicle for premiums paid under their variable annuity and variable life insurance contracts and to certain qualified pension and other retirement plans.
2 Portfolio valuation: In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurement" ("ASC 820"), all investments held by the Fund are carried at the value that 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 observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3—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 options written, for which market quotations are readily available, is generally determined by Management by obtaining valuations from independent pricing services 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 at the NASDAQ Official
11
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 sale of a security on a particular day, the independent pricing services may value the security based on market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in non-exchange traded investment companies are valued using the respective 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, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not readily available, the security is valued using methods the Board has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Numerous factors may be considered when determining the fair value of a security based on Level 2 or Level 3 inputs, including available analyst, media or other reports, securities within the same industry with recent highly correlated performance, trading in futures or American Depositary Receipts ("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.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are normally translated into U.S. dollars using the exchange rate as of 4:00 p.m. Eastern Time, on days the NYSE is open for business 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, 2017 was $13,366.
5 Income tax information: The Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of the Fund to continue to qualify for treatment as a regulated investment company ("RIC") by complying with the requirements of the U.S. Internal Revenue Code applicable to RICs and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent the Fund distributes substantially all of its net investment income and net realized capital gains 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
12
Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the tax years for which the applicable statutes of limitations have not yet expired. As of June 30, 2017, the Fund did not have any unrecognized tax positions.
At June 30, 2017, the cost of investments on a U.S. federal income tax basis was $65,815,263. Gross unrealized appreciation of investments was $7,652,981 and gross unrealized depreciation of investments was $646,641 resulting in net unrealized appreciation of $7,006,340 based on cost for U.S. federal income tax purposes.
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. The Fund may also utilize earnings and profits distributed to shareholders on redemption of their shares as a part of the dividends-paid deduction for income tax purposes.
As determined on December 31, 2016, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences are attributed to the tax treatment of: prior year partnership adjustments and non-taxable adjustments to income. 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, 2016, the Fund recorded the following permanent reclassifications:
| Paid-in Capital | | Undistributed
Net Investment
Income/(Loss) | | Accumulated
Net Realized
Gains/(Losses)
on Investments | |
| $ | — | | | $ | (190,477 | ) | | $ | 190,477 | | |
The tax character of distributions paid during the years ended December 31, 2016 and December 31, 2015 was as follows:
Distributions Paid From: | |
Ordinary Income | | Long-Term Capital Gain | | Total | |
| 2016 | | 2015 | | 2016 | | 2015 | | 2016 | | 2015 | |
| $ | 470,886 | | | $ | 455,286 | | | $ | 5,161,853 | | | $ | 4,600,984 | | | $ | 5,632,739 | | | $ | 5,056,270 | | |
As of December 31, 2016, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed
Ordinary
Income | | Undistributed
Long-Term
Capital Gain | | Unrealized
Appreciation/
(Depreciation) | | Loss
Carryforwards
and Deferrals | | Other
Temporary
Differences | | Total | |
| $ | 1,951,559 | | | $ | 403,786 | | | $ | 8,719,725 | | | $ | — | | | $ | — | | | $ | 11,075,070 | | |
The temporary differences between book basis and tax basis distributable earnings are primarily due to losses disallowed and recognized on wash sales and return of capital adjustments.
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, are generally 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, if any, represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds within the complex of related investment companies. Expenses directly attributable to a Fund are charged to that Fund. 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
13
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 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 Unaffiliated investment company securities and exchange-traded funds: The Fund may invest in shares of other registered investment companies, including exchange-traded funds ("ETFs"), within the limitations prescribed by the 1940 Act or pursuant to an exemptive order from the U.S. Securities and Exchange Commission ("SEC") that permits the Fund to invest in both affiliated and unaffiliated investment companies, including exchange-traded funds, in excess of the limits in Section 12(d)(1)(A) of the 1940 Act, as amended, subject to the terms and conditions of such order. Some ETFs seek to track the performance of a particular market index. These indices include both broad-based market indices and more narrowly-based indices, including those relating to particular sectors, markets, regions or industries. However, some ETFs have an actively-managed investment objective. ETF shares are traded like traditional equity securities on a national securities exchange or NASDAQ. A Fund will indirectly bear its proportionate share of any management fees and other expenses paid by such other investment companies, which will increase expenses and decrease returns.
11 Derivative instruments: The Fund's use of derivatives during the six months ended June 30, 2017, is described below. Please see the Schedule of Investments for the Fund's open position in derivatives at June 30, 2017. 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.
Options: During the six months ended June 30, 2017, the Fund used options written to enhance returns.
Premiums received by the Fund upon writing a call option or a put option are recorded in the liability section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, the Fund realizes a gain or loss and the liability is eliminated.
When the Fund writes a call option on an underlying asset it does not own, its exposure on such an option is theoretically unlimited. When writing a covered call option, the Fund, in return for the premium, gives up the opportunity for profit from a price increase in the underlying security above the exercise price, but conversely retains the risk of loss should the price of the security decline. When writing a put option, the Fund, in return for the premium, takes the risk that it must purchase the underlying security at a price that may be higher than the current market price of the security. If a covered call or put option that the Fund has written expires unexercised, the Fund will realize a gain in the amount of the premium. All securities covering outstanding written options are held in escrow by the custodian bank.
14
Premiums paid by the Fund upon purchasing a call or put option are recorded in the asset section of the Fund's Statement of Assets and Liabilities and are subsequently adjusted to the current market value. When an option is exercised, closed, or expired, a Fund realizes a gain or loss and the asset is eliminated.
For purchased call options, the Fund's loss is limited to the amount of the option premium paid.
At June 30, 2017, the Fund had the following derivatives (which did not qualify as hedging instruments under ASC 815), grouped by primary risk exposure:
Liability Derivatives
Derivative Type | | Statement of
Assets and
Liabilities
Location | | Equity Risk | | Total | |
Options written
| | Option contracts
written, at value | | $ | (18,722
| ) | | $ | (18,722
| ) | |
Total Value-Liabilities | | | | $ | (18,722 | ) | | $ | (18,722 | ) | |
The impact of the use of these derivative instruments on the Statement of Operations during the six months ended June 30, 2017, was as follows:
Change in Appreciation/(Depreciation)
| Derivative Type Statement of | | Operations
Location | | Equity Risk | | Total | |
Options written
| | Change in net unrealized
appreciation/(depreciation)
in value of: option
contracts written | | $ | 3,861
| | | $ | 3,861
| | |
Total Change in
Appreciation/(Depreciation) | | | | $ | 3,861 | | | $ | 3,861 | | |
The Fund adopted the provisions of Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. Pursuant to ASU 2011-11, an entity is required to disclose both gross and net information for assets and liabilities related to derivatives, repurchase and reverse repurchase agreements, and securities lending and securities borrowing transactions that are eligible for offset or subject to an enforceable master netting or similar agreement. At June 30, 2017, the Fund had no derivatives eligible for offset or subject to an enforceable master netting or similar agreement.
12 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers ("Officers") and trustees ("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.
15
Note B—Investment Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:
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, 2017, the investment 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.
Neuberger Berman BD LLC is the Fund's "principal underwriter" within the meaning of the 1940 Act. It acts as agent in arranging for the sale of the Fund's Class I shares without sales commission or other compensation and bears all advertising and promotion expenses incurred in the sale of those shares. The Board adopted a non-fee distribution plan for the Fund's Class I.
Management has contractually agreed to waive fees and/or reimburse the Fund so that the total annual operating expenses do not exceed the expense limitation as detailed in the following table. This undertaking excludes fees payable to Management, interest (commitment fees relating to borrowings are treated as interest for purposes of this exclusion), taxes, transaction costs, brokerage commissions, dividend and interest expenses relating to short sales, acquired fund fees and expenses and extraordinary expenses, if any; consequently, net expenses may exceed the contractual expense limitation. The Fund has agreed that it will repay Management for fees and expenses waived or reimbursed provided that repayment does not cause the annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were waived or reimbursed, or the expense limitation in place at the time the Fund repays Management, whichever is lower. Any such repayment must be made within three years after the year in which Management incurred the expense.
During the six months ended June 30, 2017, there was no repayment to Management under its contractual expense limitation.
At June 30, 2017, the Fund had no contingent liability to Management under its contractual expense limitation.
| | | | | | | Expenses Reimbursed in
Year Ending December 31, | |
| | | | | | | 2014 | | 2015 | | 2016 | | 2017 | |
| | | | | | | Subject to Repayment until December 31, | |
Class | | Contractual
Expense
Limitation(a) | | Expiration | | 2017 | | 2018 | | 2019 | | 2020 | |
Class I | | | 1.00 | % | | 12/31/20 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | |
(a) Expense limitation per annum of the Fund's average daily net assets.
Neuberger Berman LLC ("Neuberger") was retained by Management through December 31, 2015, pursuant to a Sub-Advisory Agreement 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. As a result of the entity consolidation described on page 3 of this Semi-Annual Report, the services previously provided by Neuberger under the Sub-Advisory Agreement are now provided by NBIA as of January 1, 2016.
16
Note C—Securities Transactions:
During the six months ended June 30, 2017, there were purchase and sale transactions of long-term securities (excluding written options) of $27,762,288 and $41,763,692, respectively.
During the six months ended June 30, 2017, 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, 2017 and for the year ended December 31, 2016 was as follows:
| | | For the Six
Months Ended
June 30,
2017 | | For the Year
Ended
December 31,
2016 | |
Shares Sold | | | 342,531 | | | | 1,832,266 | | |
Shares Issued on Reinvestment of Dividends and Distributions | | | — | | | | 406,990 | | |
Shares Redeemed | | | (943,091 | ) | | | (1,125,032 | ) | |
Total | | | (600,560 | ) | | | 1,114,224 | | |
Note E—Line of Credit:
At June 30, 2017, the Fund was a participant in a syndicated committed, unsecured $700,000,000 line of credit (the "Credit Facility"), to be used only for temporary or emergency purposes. Series of other investment companies managed by Management also participate in this line of credit on substantially the same terms except that some do not have access to the full amount of the Credit Facility. Interest is charged on borrowings under this Credit Facility at the highest of (a) a federal funds effective rate plus 1.00% per annum, (b) a Eurodollar rate for a one-month period plus 1.00% per annum, and (c) an overnight bank funding rate plus 1.00% per annum. The Credit Facility has an annual commitment fee of 0.15% per annum of the available line of credit, which is paid quarterly. The Fund has agreed to pay its pro rata share of the annual commitment fee, 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 and the level of its access to the Credit Facility, and interest charged on any borrowing made by the Fund and other costs incurred by such Fund. Because several mutual funds participate in the Credit Facility, there is no assurance that an individual Fund will have access to all or any part of the $700,000,000 at any particular time. There were no loans outstanding under the Credit Facility at June 30 2017. During the period ended June 30, 2017, the Fund did not utilize the Credit Facility.
Note F—Custodian Out-of-Pocket Expenses Refunded:
In May 2016, the Fund's custodian, State Street, announced that it had identified inconsistencies in the way in which the Fund was invoiced for categories of expenses, particularly those deemed "out-of-pocket" costs, from 1998 through November 2015. The amounts in the table below represent the refunded expenses and interest determined to be payable to the Fund for the period in question. These amounts were refunded to the Fund by State Street during the period ended June 30, 2017.
Expenses
Refunded | | Interest Paid
to the Fund | |
| $ | 90,198 | | | $ | 9,969 | | |
17
Note G—Recent Accounting Pronouncement:
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017, for reports with a period-end date after that date. Management is currently evaluating the impact, if any, that the adoption of the amendments to Regulation S-X will have on the Fund's financial statements and related disclosures.
Note H—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
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. Amounts that do not round to $0.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Ratios that do not round to 0.01% or (0.01)% are presented as 0.00% or (0.00)%, respectively. A "—" indicates that the line item was not applicable in the corresponding period.
Class I | |
| | | Six Months
Ended
June 30, | | Year Ended December 31, | |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| | | (Unaudited) | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | $ | 15.24 | | | $ | 13.19 | | | $ | 16.39 | | | $ | 15.04 | | | $ | 11.60 | | | $ | 9.99 | | |
Income From Investment Operations: | |
| Net Investment Income/(Loss)@ | | | 0.11 | | | | 0.13 | | | | 0.14 | | | | 0.11 | | | | 0.10 | | | | 0.12 | | |
Net Gains or Losses on Securities
(both realized and unrealized) | | | 0.58 | | | | 3.34 | | | | (2.00 | ) | | | 1.36 | | | | 3.50 | | | | 1.54 | | |
Total From Investment Operations | | | 0.69 | | | | 3.47 | | | | (1.86 | ) | | | 1.47 | | | | 3.60 | | | | 1.66 | | |
Less Distributions From: | |
Net Investment Income | | | — | | | | (0.12 | ) | | | (0.12 | ) | | | (0.12 | ) | | | (0.16 | ) | | | (0.05 | ) | |
Net Realized Capital Gains | | | — | | | | (1.30 | ) | | | (1.22 | ) | | | — | | | | — | | | | — | | |
Total Distributions | | | — | | | | (1.42 | ) | | | (1.34 | ) | | | (0.12 | ) | | | (0.16 | ) | | | (0.05 | ) | |
Voluntary Contribution from Management | | | — | | | | — | | | | — | | | | 0.00 | | | | — | | | | — | | |
Net Asset Value, End of Period | | $ | 15.93 | | | $ | 15.24 | | | $ | 13.19 | | | $ | 16.39 | | | $ | 15.04 | | | $ | 11.60 | | |
| Total Return† | | | 4.53 | %*^‡ | | | 27.37 | %^ | | | (11.80 | )%^ | | | 9.85 | %^µ | | | 31.14 | %^ | | | 16.60 | % | |
Ratios/Supplemental Data | |
Net Assets, End of Period (in millions) | | $ | 72.6 | | | $ | 78.6 | | | $ | 53.3 | | | $ | 70.3 | | | $ | 69.9 | | | $ | 61.9 | | |
Ratio of Gross Expenses to
Average Net Assets# | | | 1.09 | %** | | | 1.18 | % | | | 1.14 | % | | | 1.10 | % | | | 1.13 | % | | | 1.15 | % | |
Ratio of Net Expenses to
Average Net Assets | | | 0.97 | %**ß | | | 1.18 | % | | | 1.14 | % | | | 1.10 | % | | | 1.13 | % | | | 1.15 | %Ø | |
Ratio of Net Investment Income/(Loss)
to Average Net Assets | | | 1.23 | %**ß | | | 0.89 | % | | | 0.89 | % | | | 0.71 | % | | | 0.78 | % | | | 1.15 | % | |
Portfolio Turnover Rate | | | 42 | %* | | | 93 | % | | | 153 | % | | | 130 | % | | | 165 | % | | | 124 | % | |
See Notes to Financial Highlights
19
Notes to Financial Highlights Large Cap Value Portfolio
(Unaudited)
@ Calculated based on the average number of shares outstanding during each fiscal period.
† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period. Returns assume 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 accounts or the related insurance policies or other qualified pension or retirement plans, and the inclusion of these charges and other expenses would reduce the total return for all fiscal periods shown.
^ The class action proceeds listed in Note A of the Notes to Financial Statements had no impact on the Fund's total return for the six months ended June 30, 2017. The class action proceeds received in 2016 had no impact on the Fund's total return for the year ended December 31, 2016. Had the Fund not received class action proceeds in 2015, total return based on per share NAV for the year ended December 31, 2015 would have been (11.94)%. Had the Fund not received class action proceeds in 2014, total return based on per share NAV for the year ended December 31, 2014 would have been 9.72%. Had the Fund not received class action proceeds in 2013, total return based on per share NAV for the year ended December 31, 2013 would have been 30.61%.
µ The voluntary contribution received in 2014 had no impact on the Fund's total return for the year ended December 31, 2014.
* Not annualized.
# 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. Management did not reimburse or waive fees during the fiscal periods shown.
** Annualized.
ß Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in these ratios on a non-annualized basis. Had the Funds not received the refund the annualized ratios of net expenses to average net assets and net investment income/(loss) to average net assets would have been:
Ratio of Net
Expenses to
Average Net
Assets
Six Months
Ended
June 30, 2017 | | Ratio of Net
Investment
Income/(Loss)
to Average
Net Assets
Six Months
Ended
June 30, 2017 | |
| | 1.09 | % | | | 1.09 | % | |
Ø Prior to January 1, 2013, the Fund had an expense offset arrangement in connection with its custodian contract. The impact of expense reductions related to expense offset arrangements, if any, was less than 0.01%.
‡ Had the Fund not received the Custodian Out-of-Pocket Expenses Refunded listed in Note F of the Notes to Financial Statements, the total return would have been 4.40%.
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 800-877-9700 (toll-free) and on the Securities and Exchange Commission's website 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 upon request, without charge, by calling 800-877-9700 (toll-free), on the Securities and Exchange Commission's website 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 800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 800-877-9700 (toll free).
21
Neuberger Berman
Advisers Management Trust
Mid Cap Growth Portfolio
I Class Shares
S Class Shares
Semi-Annual Report
June 30, 2017
Mid Cap Growth Portfolio Commentary
The Neuberger Berman Advisers Management Trust Mid Cap Growth Portfolio Class I generated a total return of 12.07% for the six months ended June 30, 2017, outperforming the 11.40% return of its benchmark, the Russell Midcap® Growth Index (Index), for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
Over the six month period the highly resilient market has continued its upward trajectory, but not without challenges to that positive momentum. The Republican-controlled legislature discovered that the cohesive power of being the minority opposition can quickly dissipate in a majority leadership, as long-simmering ideological differences surface and fracture what were once unified views. Fortunately, this bull market has largely turned a deaf ear to the political gridlock and maintained the embedded optimism that has been a big part of this post-election surge. The U.S. Federal Reserve continued on its hawkish-leaning path to monetary tightening and while some may worry about an approach that is in anticipation of wage growth and inflation that may not fully materialize, we remain in the camp that believes liquidity normalization will be a long-term positive. Lastly, it appears that equity valuations have become elevated, especially with growth handily outpacing value, but we believe that generally strong corporate earnings continue to provide the necessary counterbalance to prices.
On average during the six month period, the Fund was overweight Information Technology (IT), Health Care, Financials, Energy and Telecommunication Services and underweight Real Estate, Consumer Discretionary, Consumer Staples, Materials and Industrials. IT and Health Care were the Fund's two biggest overweight positions. Our confidence in IT and Health Care is predicated on what we view as a compelling universe of diverse catalysts, pent-up demand, expanding new markets and top-line growth potential. Conversely, we continued to broadly underweight the consumer segments, as the dismal state of retail remains a meaningful headwind. Drilling down to the Fund's holdings, Activision Blizzard and O'Reilly Automotive were the leading contributor and detractor for the period, respectively. Activision, a developer of interactive entertainment/gaming content, continued to deliver strong earnings and margin improvement. Due to its sustained outperformance, Activision meaningfully exceeded our upper threshold for capitalization and we subsequently exited the position. O'Reilly Automotive, a specialty retailer and supplier of automotive aftermarket parts, tools and supplies, fell short of expectations for the most recent quarter. Rumors around the potential for increased competition from Amazon have also weighed on the stock.
Looking ahead, we remain reasonably confident that the balance of 2017 can be an environment conducive for active growth managers, as fundamentals and consistent corporate execution continue to regain relevancy. That said, the big unknown centers on how much positive sentiment, related to anticipated pro-growth policies, is embedded in the post-election market returns and what happens if that optimism wanes or suddenly evaporates in the face of continued political missteps and policy delays. While the market has remained largely detached from the fits and starts associated with the attempt to repeal and replace the Affordable Care Act, potential fiscal storm clouds are looming as Congress will need to address the debt ceiling and kick-start their tax reform agenda. Since we don't hold much sway over Washington and we're not confident we can consistently predict the market's reaction to the current administration's governance style, we will instead remain focused on seeking higher qualitative growth companies capable of consistently delivering compelling fundamentals, as earnings will be the one highly visible and critical driver of this current bull market that we can measure objectively.
Sincerely,
KENNETH J. TUREK
PORTFOLIO MANAGER
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund's portfolio manager. The opinions are as of the date of this report, and are subject to change without notice.
1
SECTOR ALLOCATION
(as a % of Total Investments*) | |
Consumer Discretionary | | | 16.7 | % | |
Consumer Staples | | | 2 | | |
Energy | | | 1.3 | | |
Financials | | | 7.2 | | |
Health Care | | | 18.8 | | |
Industrials | | | 14.4 | | |
Information Technology | | | 27.0 | | |
Materials | | | 2.9 | | |
Telecommunication Services | | | 0.4 | | |
Short-Term Investment | | | 9.3 | | |
Total | | | 100.0 | % | |
* Derivatives, if any, are excluded from this chart.
PERFORMANCE HIGHLIGHTS
| | Inception | | Six Month
Period Ended | | Average Annual Total Return
Ended 06/30/2017 | |
| | Date | | 06/30/2017 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund | |
Mid Cap Growth
Portfolio Class I | | 11/03/1997 | | 12.07% | | 19.74% | | 11.76% | | 6.81% | | 8.97% | |
Mid Cap Growth
Portfolio Class S2 | | 02/18/2003 | | 11.55% | | 19.04% | | 11.40% | | 6.51% | | 8.75% | |
Russell Midcap®
Growth Index1,3 | | | | 11.40% | | 17.05% | | 14.19% | | 7.87% | | 7.97% | |
Russell Midcap®
Index1,3 | | | | 7.99% | | 16.48% | | 14.72% | | 7.67% | | 9.44% | |
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 http://www.nb.com/amtportfolios/performance.
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 Fund distributions or on the redemption of Fund 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 Fund.
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 Investment Advisers 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 Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2016 were 1.00% and 1.25% for Class I and Class S shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratios for the semi-annual period ended June 30, 2017 can be found in the Financial Highlights section of this report.
2
1 The date used to calculate Life of Fund performance for the index is November 3, 1997, 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 has lower expenses and correspondingly higher returns than Class S shares.
3 The Russell Midcap® Growth Index is a float-adjusted market capitalization-weighted index that measures the performance of the mid-cap growth segment of the U.S. equity market. It includes those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth rates. The index is rebalanced annually in June. The Russell Midcap Index is a float-adjusted market capitalization-weighted index that measures the performance of the mid-cap segment of the U.S. equity market. It includes approximately 800 of the smallest securities in the Russell 1000® Index. The index is rebalanced annually in June. Please note that the indices described in this report 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 are prepared or obtained by Neuberger Berman Investment Advisers LLC* ("Management") and reflect the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and generally does not invest in all securities included in a described index.
* On January 1, 2016, Neuberger Berman Management LLC ("NBM") transferred to Neuberger Berman Fixed Income LLC ("NBFI") its rights and obligations pertaining to all services it provided to any Fund under any investment management, investment sub-advisory, and/or administration agreement, as applicable (the "Agreements"). Following such transfer, NBFI was renamed Neuberger Berman Investment Advisers LLC ("NBIA" or "Management"). Following the consolidation, the investment professionals of NBM who provided services to the Fund under the Agreements continue to provide the same services, except that they provide those services in their new capacities as investment professionals of NBIA. Further, the consolidation did not result in any change in the investment processes employed by the Fund, the nature or level of services provided to the Fund, or the fees the Fund pays under its Agreements.
On July 1, 2016, NBM was reorganized into Neuberger Berman LLC ("Neuberger Berman") (the "Reorganization"). Upon the completion of the Reorganization, Neuberger Berman assumed all rights and obligations pertaining to all services NBM provided to the Fund under any distribution agreement or distribution and services agreement (the "Agreements") or plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, (the "Plans"). Accordingly, after the Reorganization, Neuberger Berman became the Fund's distributor and the services previously provided by NBM under the Agreements and Plans are provided by Neuberger Berman.
Following the Reorganization, the employees of NBM provide the same services to the Fund under the Agreements and Plans, except that they provide those services in their capacities as employees of Neuberger Berman. Further, the Reorganization did not result in any change in the nature or level of services provided to the Fund, or the fees, if any, the Fund pays under the Agreements or the Plans.
On January 1, 2017, the Fund's distributor, Neuberger Berman, changed its name to Neuberger Berman BD LLC.
The investments for the Fund are managed by the same portfolio manager(s) who manage(s) one or more other registered funds that have names, investment objectives and investment styles that are similar to those of the Fund. You should be aware that the Fund is likely to differ from those other mutual fund(s) in size, cash flow pattern and tax matters. Accordingly, the holdings and performance of the Fund can be expected to vary from those of the other mutual fund(s).
Shares of the separate Neuberger Berman Advisers Management Trust Portfolios, including the Fund, are not available to the general public. Shares of the Fund may be purchased only by life insurance companies to be held in their separate accounts, which 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 Fund. This report is prepared for the general information of shareholders and is not an offer of shares of the Fund. Shares are sold only through the currently effective prospectus, which must precede or accompany this report.
The "Neuberger Berman" name and logo and "Neuberger Berman Investment Advisers LLC" are registered service marks of Neuberger Berman Group LLC. The individual Fund name in this piece is either a service mark or registered service mark of Neuberger Berman Investment Advisers LLC , an affiliate of Neuberger Berman BD LLC, distributor, member FINRA.
© 2017 Neuberger Berman BD 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 U.S. 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, 2017 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 indicated. 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.
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST MID CAP GROWTH PORTFOLIO
Actual | | Beginning Account
Value
1/1/17 | | Ending Account
Value
6/30/17 | | Expenses Paid
During the Period
1/1/17 – 6/30/17 | | Expense
Ratio*** | |
Class I | | $ | 1,000.00 | | | $ | 1,120.70 | | | $ | 3.47 | * | | | 0.66 | % | |
Class S | | $ | 1,000.00 | | | $ | 1,115.50 | | | $ | 6.35 | * | | | 1.21 | % | |
Hypothetical (5% annual return before expenses) | |
Class I | | $ | 1,000.00 | | | $ | 1,021.52 | | | $ | 3.31 | ** | | | 0.66 | % | |
Class S | | $ | 1,000.00 | | | $ | 1,018.79 | | | $ | 6.06 | ** | | | 1.21 | % | |
* For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical expenses are equal to the annualized expense ratios for each class, multiplied by the average account value over the period (assuming a 5% annual return), multiplied by 181/365 (to reflect the one-half year period shown).
*** Had the Fund not received the Custodian Out-of-Pocket Expenses Refunded (see Note F of Notes to Financial Statements), the expense ratio would have been 0.96% and 1.21% for Class I and Class S, respectively. Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in these ratios on a non-annualized basis.
4
Schedule of Investments Mid Cap Growth Portfolio (Unaudited) June 30, 2017
NUMBER OF SHARES | | | | VALUE | |
Common Stocks 92.4% | | | |
Aerospace & Defense 0.4% | | | |
| | 32,500 | | | KLX, Inc. | | $ | 1,625,000 | * | |
Airlines 1.0% | | | |
| | 41,000 | | | Alaska Air Group, Inc. | | | 3,680,160 | | |
Auto Components 0.7% | | | |
| | 30,000 | | | Delphi Automotive PLC | | | 2,629,500 | | |
Automobiles 0.8% | | | |
| | 30,000 | | | Thor Industries, Inc. | | | 3,135,600 | | |
Banks 2.2% | | | |
| | 35,000 | | | East West Bancorp, Inc. | | | 2,050,300 | | |
| | 12,500 | | | Signature Bank | | | 1,794,125 | * | |
| | 25,000 | | | SVB Financial Group | | | 4,394,750 | * | |
| | | | 8,239,175 | | |
Biotechnology 4.2% | | | |
| | 23,100 | | | BioMarin Pharmaceutical, Inc. | | | 2,097,942 | * | |
| | 100,000 | | | Exact Sciences Corp. | | | 3,537,000 | * | |
| | 22,500 | | | Incyte Corp. | | | 2,832,975 | * | |
| | 86,500 | | | Neurocrine Biosciences, Inc. | | | 3,979,000 | * | |
| | 23,500 | | | TESARO, Inc. | | | 3,286,710 | * | |
| | | | 15,733,627 | | |
Capital Markets 3.3% | | | |
| | 15,750 | | | Affiliated Managers Group, Inc. | | | 2,612,295 | | |
| | 52,550 | | | CBOE Holdings, Inc. | | | 4,803,070 | | |
| | 62,000 | | | Raymond James Financial, Inc. | | | 4,973,640 | | |
| | | | 12,389,005 | | |
Chemicals 2.9% | | | |
| | 59,000 | | | RPM International, Inc. | | | 3,218,450 | | |
| | 40,000 | | | Scotts Miracle-Gro Co. | | | 3,578,400 | | |
| | 52,250 | | | Sensient Technologies Corp. | | | 4,207,693 | | |
| | | | 11,004,543 | | |
Commercial Services & Supplies 2.3% | | | |
| | 31,500 | | | Cintas Corp. | | | 3,970,260 | | |
| | 72,750 | | | Waste Connections, Inc. | | | 4,686,555 | | |
| | | | 8,656,815 | | |
Communications Equipment 2.3% | | | |
| | 25,000 | | | Harris Corp. | | | 2,727,000 | | |
| | 52,500 | | | Lumentum Holdings, Inc. | | | 2,995,125 | * | |
| | 36,000 | | | Motorola Solutions, Inc. | | | 3,122,640 | | |
| | | | 8,844,765 | | |
NUMBER OF SHARES | | | | VALUE | |
Distributors 0.9% | | | |
| | 107,500 | | | LKQ Corp. | | $ | 3,542,125 | * | |
Diversified Consumer Services 2.0% | | | |
| 51,050 | | | Bright Horizons Family
Solutions, Inc. | | | 3,941,570 | * | |
| | 108,250 | | | Service Corp. International | | | 3,620,963 | | |
| | | | 7,562,533 | | |
Diversified Telecommunication
Services 0.4% | | | |
| | 55,000 | | | Zayo Group Holdings, Inc. | | | 1,699,500 | * | |
Electrical Equipment 1.3% | | | |
| | 40,000 | | | AMETEK, Inc. | | | 2,422,800 | | |
| | 16,000 | | | Rockwell Automation, Inc. | | | 2,591,360 | | |
| | | | 5,014,160 | | |
Electronic Equipment, Instruments &
Components 4.1% | | | |
| | 68,500 | | | Amphenol Corp. Class A | | | 5,056,670 | | |
| | 84,000 | | | CDW Corp. | | | 5,252,520 | | |
| | 29,500 | | | Cognex Corp. | | | 2,504,550 | | |
| | 74,500 | | | Trimble, Inc. | | | 2,657,415 | * | |
| | | | 15,471,155 | | |
Food Products 2.0% | | | |
| | 42,500 | | | Conagra Brands, Inc. | | | 1,519,800 | | |
| | 42,500 | | | Lamb Weston Holdings, Inc. | | | 1,871,700 | | |
| | 73,500 | | | Pinnacle Foods, Inc. | | | 4,365,900 | | |
| | | | 7,757,400 | | |
Health Care Equipment & Supplies 8.1% | | | |
| | 26,000 | | | ABIOMED, Inc. | | | 3,725,800 | * | |
| | 24,100 | | | Edwards Lifesciences Corp. | | | 2,849,584 | * | |
| | 52,500 | | | Hill-Rom Holdings, Inc. | | | 4,179,525 | | |
| | 71,500 | | | Hologic, Inc. | | | 3,244,670 | * | |
| | 40,000 | | | Nevro Corp. | | | 2,977,200 | * | |
| | 80,000 | | | NuVasive, Inc. | | | 6,153,600 | * | |
| | 46,000 | | | Penumbra, Inc. | | | 4,036,500 | * | |
| | 122,500 | | | Wright Medical Group NV | | | 3,367,525 | * | |
| | | | 30,534,404 | | |
Health Care Providers & Services 3.4% | | | |
| | 70,000 | | | Acadia Healthcare Co., Inc. | | | 3,456,600 | * | |
| | 25,000 | | | Centene Corp. | | | 1,997,000 | * | |
| | 55,000 | | | Envision Healthcare Corp. | | | 3,446,850 | * | |
| | 82,000 | | | HealthSouth Corp. | | | 3,968,800 | | |
| | | | 12,869,250 | | |
See Notes to Financial Statements
5
Schedule of Investments Mid Cap Growth Portfolio (Unaudited) (cont'd)
NUMBER OF SHARES | | | | VALUE | |
Hotels, Restaurants & Leisure 3.6% | | | |
| | 94,500 | | | Aramark | | $ | 3,872,610 | | |
| | 127,500 | | | MGM Resorts International | | | 3,989,475 | | |
| | 112,500 | | | Red Rock Resorts, Inc. Class A | | | 2,649,375 | | |
| | 16,000 | | | Vail Resorts, Inc. | �� | | 3,245,280 | | |
| | | | 13,756,740 | | |
Household Durables 1.2% | | | |
| | 82,500 | | | Newell Brands, Inc. | | | 4,423,650 | | |
Industrial Conglomerates 1.4% | | | |
| | 22,500 | | | Roper Technologies, Inc. | | | 5,209,425 | | |
Insurance 1.9% | | | |
| | 38,500 | | | Assurant, Inc. | | | 3,992,065 | | |
| | 61,500 | | | Athene Holding Ltd. Class A | | | 3,051,015 | * | |
| | | | 7,043,080 | | |
Internet & Catalog Retail 1.1% | | | |
| | 28,500 | | | Expedia, Inc. | | | 4,245,075 | | |
Internet Software & Services 3.7% | | | |
| | 26,000 | | | CoStar Group, Inc. | | | 6,853,600 | * | |
| | 37,500 | | | LogMeIn, Inc. | | | 3,918,750 | | |
| | 13,000 | | | MercadoLibre, Inc. | | | 3,261,440 | | |
| | | | 14,033,790 | | |
IT Services 4.9% | | | |
| | 32,500 | | | DXC Technology Co. | | | 2,493,400 | | |
| | 48,500 | | | Euronet Worldwide, Inc. | | | 4,237,445 | * | |
| | 35,750 | | | Fiserv, Inc. | | | 4,373,655 | * | |
| | 60,000 | | | Global Payments, Inc. | | | 5,419,200 | | |
| | 32,500 | | | Total System Services, Inc. | | | 1,893,125 | | |
| | | | 18,416,825 | | |
Life Sciences Tools & Services 1.2% | | | |
| 20,000 | | | Bio-Rad Laboratories, Inc.
Class A | | | 4,526,200 | * | |
Machinery 4.7% | | | |
| | 65,000 | | | Fortive Corp. | | | 4,117,750 | | |
| | 74,100 | | | Gardner Denver Holdings, Inc. | | | 1,601,301 | * | |
| | 42,500 | | | IDEX Corp. | | | 4,802,925 | | |
| | 136,750 | | | Milacron Holdings Corp. | | | 2,405,432 | * | |
| | 33,500 | | | Stanley Black & Decker, Inc. | | | 4,714,455 | | |
| | | | 17,641,863 | | |
Media 1.1% | | | |
| | 41,000 | | | DISH Network Corp. Class A | | | 2,573,160 | * | |
| | 95,000 | | | WideOpenWest, Inc. | | | 1,653,000 | * | |
| | | | 4,226,160 | | |
NUMBER OF SHARES | | | | VALUE | |
Multiline Retail 0.5% | | | |
| | 30,000 | | | Dollar Tree, Inc. | | $ | 2,097,600 | * | |
Oil, Gas & Consumable Fuels 1.3% | | | |
| | 25,000 | | | Concho Resources, Inc. | | | 3,038,250 | * | |
| | 22,000 | | | Diamondback Energy, Inc. | | | 1,953,820 | * | |
| | | | 4,992,070 | | |
Pharmaceuticals 2.4% | | | |
| | 17,500 | | | Jazz Pharmaceuticals PLC | | | 2,721,250 | * | |
| | 99,450 | | | Zoetis, Inc. | | | 6,203,691 | | |
| | | | 8,924,941 | | |
Professional Services 1.2% | | | |
| | 67,000 | | | WageWorks, Inc. | | | 4,502,400 | * | |
Road & Rail 1.6% | | | |
| 41,050 | | | J.B. Hunt Transport
Services, Inc. | | | 3,751,149 | | |
| 25,000 | | | Old Dominion
Freight Line, Inc. | | | 2,381,000 | | |
| | | | 6,132,149 | | |
Semiconductors & Semiconductor
Equipment 6.4% | | | |
| | 35,000 | | | Cavium, Inc. | | | 2,174,550 | * | |
| | 31,000 | | | Lam Research Corp. | | | 4,384,330 | | |
| 70,000 | | | MACOM Technology Solutions
Holdings, Inc. | | | 3,903,900 | * | |
| | 62,500 | | | Microchip Technology, Inc. | | | 4,823,750 | | |
| | 74,500 | | | Microsemi Corp. | | | 3,486,600 | * | |
| | 55,000 | | | Monolithic Power Systems, Inc. | | | 5,302,000 | | |
| | | | 24,075,130 | | |
Software 6.1% | | | |
| | 46,000 | | | Electronic Arts, Inc. | | | 4,863,120 | * | |
| | 54,000 | | | Proofpoint, Inc. | | | 4,688,820 | * | |
| | 44,000 | | | ServiceNow, Inc. | | | 4,664,000 | * | |
| 40,000 | | | Take-Two Interactive
Software, Inc. | | | 2,935,200 | * | |
| | 15,000 | | | Tyler Technologies, Inc. | | | 2,635,050 | * | |
| | 16,500 | | | Ultimate Software Group, Inc. | | | 3,465,990 | * | |
| | | | 23,252,180 | | |
Specialty Retail 5.0% | | | |
| | 45,000 | | | Burlington Stores, Inc. | | | 4,139,550 | * | |
| | 61,500 | | | Five Below, Inc. | | | 3,036,255 | * | |
| | 12,000 | | | O'Reilly Automotive, Inc. | | | 2,624,880 | * | |
| | 70,000 | | | Ross Stores, Inc. | | | 4,041,100 | | |
| | 35,000 | | | Tractor Supply Co. | | | 1,897,350 | | |
| 10,500 | | | Ulta Salon Cosmetics &
Fragrance, Inc. | | | 3,017,070 | * | |
| | | | 18,756,205 | | |
See Notes to Financial Statements
6
Schedule of Investments Mid Cap Growth Portfolio (Unaudited) (cont'd)
NUMBER OF SHARES | | | | VALUE | |
Trading Companies & Distributors 0.8% | | | |
| | 26,000 | | | United Rentals, Inc. | | $ | 2,930,460 | * | |
| | | | | Total Common Stocks
(Cost $275,140,663) | | | 349,574,660 | | |
Short-Term Investment 9.5% | | | |
Investment Company 9.5% | | | |
| 35,920,206 | | | State Street Institutional
U.S. Government Money
Market Fund Premier Class,
0.88% (Cost $35,920,206) | | | 35,920,206 | (a) | |
| | | | | Total Investments 101.9%
(Cost $311,060,869) | | | 385,494,866
| | |
| | | | | Other Assets Less Liabilities (1.9)% | | | (7,015,594 | ) | |
| | | | | Net Assets 100.0% | | $ | 378,479,272 | | |
* Non-income producing security.
(a) Represents 7-day effective yield as of June 30, 2017.
The following is a summary, categorized by Level (see Note A of Notes to Financial Statements), of inputs used to value the Fund's investments as of June 30, 2017:
Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
Investments: | |
| Common Stocks(a) | | $ | 349,574,660 | | | $ | — | | | $ | — | | | $ | 349,574,660 | | |
Short-Term Investment | | | — | | | | 35,920,206 | | | | — | | | | 35,920,206 | | |
Total Investments | | $ | 349,574,660 | | | $ | 35,920,206 | | | $ | — | | | $ | 385,494,866 | | |
(a) The Schedule of Investments provides information on the industry categorization for the portfolio.
As of the six months ended June 30, 2017, no securities were transferred from one level (as of December 31, 2016) to another.
See Notes to Financial Statements
7
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | MID CAP
GROWTH
PORTFOLIO | |
| | | June 30, 2017 | |
Assets | |
Investments in securities, at value* (Note A)—see Schedule of Investments: | |
Unaffiliated issuers | | $ | 385,494,866 | | |
Dividends and interest receivable | | | 151,509 | | |
Receivable for Fund shares sold | | | 186,326 | | |
Prepaid expenses and other assets | | | 16,311 | | |
Total Assets | | | 385,849,012 | | |
Liabilities | |
Payable to investment manager (Note B) | | | 169,347 | | |
Payable for securities purchased | | | 6,853,129 | | |
Payable for Fund shares redeemed | | | 43,710 | | |
Payable to administrator (Note B) | | | 151,875 | | |
Payable to trustees | | | 10,037 | | |
Accrued expenses and other payables | | | 141,642 | | |
Total Liabilities | | | 7,369,740 | | |
Net Assets | | $ | 378,479,272 | | |
Net Assets consist of: | |
Paid-in capital | | $ | 275,645,605 | | |
Undistributed net investment income/(loss) | | | (566,896 | ) | |
Accumulated net realized gains/(losses) on investments | | | 28,966,566 | | |
Net unrealized appreciation/(depreciation) in value of investments | | | 74,433,997 | | |
Net Assets | | $ | 378,479,272 | | |
Net Assets | |
Class I | | $ | 97,273,432 | | |
Class S | | | 281,205,840 | | |
Shares Outstanding ($.001 par value; unlimited shares authorized) | |
Class I | | | 3,838,279 | | |
Class S | | | 11,933,704 | | |
Net Asset Value, offering and redemption price per share | |
Class I | | $ | 25.34 | | |
Class S | | | 23.56 | | |
*Cost of Investments | | $ | 311,060,869 | | |
See Notes to Financial Statements
8
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | MID CAP
GROWTH
PORTFOLIO | |
| | | For the
Six Months Ended
June 30, 2017 | |
Investment Income: | |
Income (Note A): | |
Dividend income—unaffiliated issuers | | $ | 1,074,299 | | |
Interest income—unaffiliated issuers | | | 101,459 | | |
Foreign taxes withheld (Note A) | | | (2,579 | ) | |
Total income | | $ | 1,173,179 | | |
Expenses: | |
Investment management fees (Note B) | | | 960,027 | | |
Administration fees (Note B): | |
Class I | | | 138,773 | | |
Class S | | | 392,104 | | |
Distribution fees (Note B): | |
Class S | | | 326,753 | | |
Audit fees | | | 23,088 | | |
Custodian and accounting fees | | | 53,516 | | |
Insurance expense | | | 6,138 | | |
Legal fees | | | 82,121 | | |
Shareholder reports | | | 13,161 | | |
Trustees' fees and expenses | | | 21,662 | | |
Miscellaneous | | | 9,327 | | |
Total expenses | | | 2,026,670 | | |
Custodian out-of-pocket expenses refunded (Note F) | | | (286,595 | ) | |
Total net expenses | | | 1,740,075 | | |
Net investment income/(loss) | | $ | (566,896 | ) | |
Realized and Unrealized Gain/(Loss) on Investments (Note A): | |
Net realized gain/(loss) on: | |
Sales of investment securities of unaffiliated issuers | | | 21,101,955 | | |
Change in net unrealized appreciation/(depreciation) in value of: | |
Unaffiliated investment securities | | | 18,275,053 | | |
Net gain/(loss) on investments | | | 39,377,008 | | |
Net increase/(decrease) in net assets resulting from operations | | $ | 38,810,112 | | |
See Notes to Financial Statements
9
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | MID CAP GROWTH PORTFOLIO | |
| | | Six Months Ended
June 30,
2017
(Unaudited) | | Year Ended
December 31,
2016 | |
Increase/(Decrease) in Net Assets: | |
From Operations (Note A): | |
Net investment income/(loss) | | $ | (566,896 | ) | | $ | (1,711,608 | ) | |
Net realized gain/(loss) on investments | | | 21,101,955 | | | | 8,819,154 | | |
Change in net unrealized appreciation/(depreciation) of investments | | | 18,275,053 | | | | 6,724,225 | | |
Net increase/(decrease) in net assets resulting from operations | | | 38,810,112 | | | | 13,831,771 | | |
Distributions to Shareholders From (Note A): | |
Net realized gain on investments: | |
Class I | | | — | | | | (3,945,881 | ) | |
Class S | | | — | | | | (11,953,217 | ) | |
Total distributions to shareholders | | | — | | | | (15,899,098 | ) | |
From Fund Share Transactions (Note D): | |
Proceeds from shares sold: | |
Class I | | | 7,220,563 | | | | 7,360,678 | | |
Class S | | | 14,410,088 | | | | 22,554,951 | | |
Proceeds from reinvestment of dividends and distributions: | |
Class I | | | — | | | | 3,945,881 | | |
Class S | | | — | | | | 11,953,217 | | |
Payments for shares redeemed: | |
Class I | | | (6,211,331 | ) | | | (36,959,521 | ) | |
Class S | | | (5,971,681 | ) | | | (25,710,083 | ) | |
Net increase/(decrease) from Fund share transactions | | | 9,447,639 | | | | (16,854,877 | ) | |
Net Increase/(Decrease) in Net Assets | | | 48,257,751 | | | | (18,922,204 | ) | |
Net Assets: | |
Beginning of period | | | 330,221,521 | | | | 349,143,725 | | |
End of period | | $ | 378,479,272 | | | $ | 330,221,521 | | |
Undistributed net investment income/(loss) at end of period | | $ | (566,896 | ) | | $ | — | | |
See Notes to Financial Statements
10
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 an Amended and Restated Trust Instrument dated March 27, 2014. The Trust is currently comprised of eight separate operating series (each individually a "Fund," 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. Neuberger Berman Advisers Management Trust Mid Cap Growth Portfolio (the "Fund") currently offers Class I and Class S shares. The Trust's Board of Trustees (the "Board") may establish additional series or classes of shares without the approval of shareholders.
The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946 "Financial Services—Investment Companies."
The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires Neuberger Berman Investment Advisers LLC ("NBIA" or "Management") to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Shares of the Fund are not available to the general public and may be purchased only by life insurance companies to serve as an investment vehicle for premiums paid under their variable annuity and variable life insurance contracts and to certain qualified pension and other retirement plans.
2 Portfolio valuation: In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurement" ("ASC 820"), all investments held by the Fund are carried at the value that 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 observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3—unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in equity securities for which market quotations are readily available, is generally determined by Management by obtaining valuations from independent pricing services 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 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
11
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 sale of a security on a particular day, the independent pricing services may value the security based on market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in non-exchange traded investment companies are valued using the respective 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, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not readily available, the security is valued using methods the Board has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Numerous factors may be considered when determining the fair value of a security based on Level 2 or Level 3 inputs, including available analyst, media or other reports, securities within the same industry with recent highly correlated performance, trading in futures or American Depositary Receipts ("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.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are normally translated into U.S. dollars using the exchange rate as of 4:00 p.m. Eastern Time, on days the NYSE is open for business 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, 2017 was $1,503.
5 Income tax information: The Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of the Fund to continue to qualify for treatment as a regulated investment company ("RIC") by complying with the requirements of the U.S. Internal Revenue Code applicable to RICs and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent the Fund distributes substantially all of its net investment income and net realized capital gains 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
12
filed for the tax years for which the applicable statutes of limitations have not yet expired. As of June 30, 2017, the Fund did not have any unrecognized tax positions.
At June 30, 2017, the cost of investments on a U.S. federal income tax basis was $311,222,926. Gross unrealized appreciation of investments was $75,146,820 and gross unrealized depreciation of investments was $874,880 resulting in net unrealized appreciation of $74,271,940 based on cost for U.S. federal income tax purposes.
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. The Fund may also utilize earnings and profits distributed to shareholders on redemption of their shares as a part of the dividends-paid deduction for income tax purposes.
As determined on December 31, 2016, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences are attributed to the tax treatment of: net operating losses, adjustments related to real estate investment trusts ("REITs"), non-taxable adjustments to income, foreign currency gains and losses and prior year partnership adjustments. 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, 2016, the Fund recorded the following permanent reclassifications:
| Paid-in Capital | | Undistributed
Net Investment
Income/(Loss) | | Accumulated
Net Realized
Gains/(Losses)
on Investments | |
| $ | (1,762,246 | ) | | $ | 1,711,608 | | | $ | 50,638 | | |
The tax character of distributions paid during the years ended December 31, 2016 and December 31, 2015 was as follows:
Distributions Paid From: | |
Ordinary Income | | Long-Term Capital Gain | | Total | |
| 2016 | | 2015 | | 2016 | | 2015 | | 2016 | | 2015 | |
| $ | — | | | $ | — | | | $ | 15,899,098 | | | $ | 26,472,577 | | | $ | 15,899,098 | | | $ | 26,472,577 | | |
As of December 31, 2016, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed
Ordinary
Income | | Undistributed
Long-Term
Capital Gain | | Unrealized
Appreciation/
(Depreciation) | | Loss
Carryforwards
and Deferrals | | Other
Temporary
Differences | | Total | |
| $ | — | | | $ | 8,064,207 | | | $ | 55,959,347 | | | $ | — | | | $ | 1 | | | $ | 64,023,555 | | |
The temporary difference between book basis and tax basis distributable earnings is primarily due to losses disallowed and recognized on wash sales and tax adjustments related to REITs.
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 Modernization Act of 2010 (the "Act") made 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").
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. As of December 31, 2016, the Fund had no Post-Enactment capital loss carryforwards.
13
During the year ended December 31, 2016, the Fund utilized capital loss carryforwards of $868,370.
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, are generally 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, if any, represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds within the complex of related investment companies. Expenses directly attributable to a Fund are charged to that Fund. 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 among the classes based upon the relative net assets of each class.
9 Investments in foreign securities: Investing in foreign securities may involve 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 Unaffiliated investment company securities and exchange-traded funds: The Fund may invest in shares of other registered investment companies, including exchange-traded funds ("ETFs"), within the limitations prescribed by the 1940 Act or pursuant to an exemptive order from the U.S. Securities and Exchange Commission ("SEC") that permits the Fund to invest in both affiliated and unaffiliated investment companies, including exchange-traded funds, in excess of the limits in Section 12(d)(1)(A) of the 1940 Act, as amended, subject to the terms and conditions of such order. Some ETFs seek to track the performance of a particular market index. These indices include both broad-based market indices and more narrowly-based indices, including those relating to particular sectors, markets, regions or industries. However, some ETFs have an actively-managed investment objective. ETF shares are traded like traditional equity securities on a national securities exchange or NASDAQ. A Fund will indirectly bear its proportionate share of any management fees and other expenses paid by such other investment companies, which will increase expenses and decrease returns.
11 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers ("Officers") and trustees ("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 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.
14
Note B—Investment Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:
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, 2017, the investment 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.
Neuberger Berman BD LLC (the "Distributor") is the Fund's "principal underwriter" within the meaning of the 1940 Act. It acts as agent in arranging for the sale of the Fund's Class I shares without sales commission or other compensation and bears all advertising and promotion expenses incurred in the sale of those shares. The Board adopted a non-fee distribution plan for the Fund's Class I. The Board has adopted a distribution and shareholder services plan (the "Plan") for Class S shares pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that, as compensation for administrative and other services related to the sale and distribution of Class S, and ongoing services provided to investors in the class, the Distributor receives from Class S a fee at the annual rate of 0.25% of Class S's average daily net assets. Distributor may pay a portion of the proceeds from the 12b-1 fee to institutions that provide such services, including insurance companies or their affiliates and qualified plan administrators ("intermediaries") for services they provide respecting the Fund to current and prospective variable contract owners and qualified plan participants that invest in the Fund through the intermediaries. 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 class during any year may be more or less than the cost of distribution and other services provided to the 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 Plan complies with those rules.
Management has contractually agreed to waive fees and/or reimburse the Fund's Class I and Class S shares so that the total annual operating expenses of those classes do not exceed the expense limitations as detailed in the following table. These undertakings include fees payable to Management for the Fund's Class S shares but exclude such fees payable for the Fund's Class I shares and exclude, for each class, interest (commitment fees relating to borrowings are treated as interest for purposes of this exclusion), taxes, transaction costs, brokerage commissions, dividend and interest expenses relating to short sales, acquired fund fees and expenses, and extraordinary expenses, if any; consequently, net expenses may exceed the contractual expense limitations. The Fund has agreed that each of its classes will repay Management for fees and expenses waived or reimbursed for that class provided that repayment does not cause that class's annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were waived or reimbursed, or the expense limitation in place at the time the Fund repays Management, whichever is lower. Any such repayment must be made within three years after the year in which Management incurred the expense.
During the six months ended June 30, 2017, there was no repayment to Management under its contractual expense limitation.
15
At June 30, 2017, the Fund's contingent liabilities to Management under its contractual expense limitation were as follows:
| | | | | | | Expenses Reimbursed in
Year Ending December 31, | |
| | | | | | | 2014 | | 2015 | | 2016 | | 2017 | |
| | | | | | | Subject to Repayment until December 31, | |
Class | | Contractual
Expense
Limitation(a) | | Expiration | | 2017 | | 2018 | | 2019 | | 2020 | |
Class I | | | 1.00 | % | | 12/31/20 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | |
Class S | | | 1.25 | % | | 12/31/20 | | | — | | | | — | | | | — | | | | — | | |
(a) Expense limitation per annum of the respective class' average daily net assets.
Neuberger Berman LLC ("Neuberger") was retained by Management through December 31, 2015, pursuant to a Sub-Advisory Agreement 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. As a result of the entity consolidation described on page 3 of this Semi-Annual Report, the services previously provided by Neuberger under the Sub-Advisory Agreement are now provided by NBIA as of January 1, 2016.
Note C—Securities Transactions:
During the six months ended June 30, 2017, there were purchase and sale transactions of long-term securities of $92,518,917 and $95,545,892, respectively.
During the six months ended June 30, 2017, 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, 2017 and for the year ended December 31, 2016 was as follows:
For the Six Months Ended June 30, 2017
| | | Shares Sold | | Shares Issued on
Reinvestment of
Dividends and
Distributions | | Shares
Redeemed | | Total | |
Class I | | | 299,144 | | | | — | | | | (254,927 | ) | | | 44,217 | | |
Class S | | | 628,043 | | | | — | | | | (266,814 | ) | | | 361,229 | | |
For the Year Ended December 31, 2016
| | | Shares Sold | | Shares Issued on
Reinvestment of
Dividends and
Distributions | | Shares
Redeemed | | Total | |
Class I | | | 336,199 | | | | 180,672 | | | | (1,676,622 | ) | | | (1,159,751 | ) | |
Class S | | | 1,126,637 | | | | 585,655 | | | | (1,219,712 | ) | | | 492,580 | | |
16
Note E—Line of Credit:
At June 30, 2017, the Fund was a participant in a syndicated committed, unsecured $700,000,000 line of credit (the "Credit Facility"), to be used only for temporary or emergency purposes. Series of other investment companies managed by Management also participate in this line of credit on substantially the same terms except that some do not have access to the full amount of the Credit Facility. Interest is charged on borrowings under this Credit Facility at the highest of (a) a federal funds effective rate plus 1.00% per annum, (b) a Eurodollar rate for a one-month period plus 1.00% per annum, and (c) an overnight bank funding rate plus 1.00% per annum. The Credit Facility has an annual commitment fee of 0.15% per annum of the available line of credit, which is paid quarterly. The Fund has agreed to pay its pro rata share of the annual commitment fee, 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 and the level of its access to the Credit Facility, and interest charged on any borrowing made by the Fund and other costs incurred by such Fund. Because several mutual funds participate in the Credit Facility, there is no assurance that an individual Fund will have access to all or any part of the $700,000,000 at any particular time. There were no loans outstanding under the Credit Facility at June 30 2017. During the period ended June 30, 2017, the Fund did not utilize the Credit Facility.
Note F—Custodian Out-of-Pocket Expenses Refunded:
In May 2016, the Fund's custodian, State Street, announced that it had identified inconsistencies in the way in which the Fund was invoiced for categories of expenses, particularly those deemed "out-of-pocket" costs, from 1998 through November 2015. The amounts in the table below represent the refunded expenses and interest determined to be payable to the Fund for the period in question. These amounts were refunded to the Fund by State Street during the period ended June 30, 2017.
Expenses
Refunded | | Interest Paid
to the Fund | |
| $ | 286,595 | | | $ | 34,329 | | |
Note G—Recent Accounting Pronouncement:
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017, for reports with a period-end date after that date. Management is currently evaluating the impact, if any, that the adoption of the amendments to Regulation S-X will have on the Fund's financial statements and related disclosures.
Note H—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
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. Amounts that do not round to $0.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Ratios that do not round to 0.01% or (0.01)% are presented as 0.00% or (0.00)%, respectively. A "—" indicates that the line item was not applicable in the corresponding period.
Class I | |
| | | Six Months
Ended
June 30, | | Year Ended December 31, | |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| | | (Unaudited) | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | $ | 22.61 | | | $ | 22.73 | | | $ | 24.50 | | | $ | 41.07 | | | $ | 30.97 | | | $ | 27.55 | | |
Income From Investment Operations: | |
| Net Investment Income/(Loss)@ | | | 0.04 | | | | (0.08 | ) | | | (0.14 | ) | | | (0.19 | ) | | | (0.19 | ) | | | (0.10 | ) | |
Net Gains or Losses on Securities
(both realized and unrealized) | | | 2.69 | | | | 1.04 | | | | 0.49 | | | | 1.08 | | | | 10.29 | | | | 3.52 | | |
Total From Investment Operations | | | 2.73 | | | | 0.96 | | | | 0.35 | | | | 0.89 | | | | 10.10 | | | | 3.42 | | |
Less Distributions From: | |
Net Realized Capital Gains | | | — | | | | (1.08 | ) | | | (2.14 | ) | | | (17.46 | ) | | | — | | | | — | | |
Voluntary Contribution from Management | | | — | | | | — | | | | 0.02 | | | | 0.00 | | | | — | | | | — | | |
Net Asset Value, End of Period | | $ | 25.34 | | | $ | 22.61 | | | $ | 22.73 | | | $ | 24.50 | | | $ | 41.07 | | | $ | 30.97 | | |
| Total Return† | | | 12.07 | %*^‡ | | | 4.40 | %^ | | | 1.28 | %^µ | | | 7.58 | %µ | | | 32.61 | %^ | | | 12.41 | %^ | |
Ratios/Supplemental Data | |
Net Assets, End of Period (in millions) | | $ | 97.3 | | | $ | 85.8 | | | $ | 112.6 | | | $ | 69.6 | | | $ | 68.6 | | | $ | 229.0 | | |
Ratio of Gross Expenses to
Average Net Assets# | | | 0.96 | %** | | | 0.99 | % | | | 0.98 | % | | | 1.00 | % | | | 0.99 | % | | | 0.99 | % | |
Ratio of Net Expenses to Average Net Assets | | | 0.66 | %**ß | | | 0.99 | % | | | 0.98 | % | | | 1.00 | % | | | 0.99 | % | | | 0.99 | %Ø | |
Ratio of Net Investment Income/(Loss)
to Average Net Assets | | | 0.02 | %**ß | | | (0.35 | )% | | | (0.54 | )% | | | (0.53 | )% | | | (0.57 | )% | | | (0.34 | )% | |
Portfolio Turnover Rate | | | 28 | %* | | | 54 | % | | | 58 | %ñ | | | 64 | % | | | 43 | % | | | 38 | % | |
See Notes to Financial Highlights
18
Financial Highlights (cont'd)
Class S | |
| | | Six Months
Ended June 30, | | Year Ended December 31, | |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| | | (Unaudited) | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | $ | 21.12 | | | $ | 21.35 | | | $ | 23.20 | | | $ | 39.95 | | | $ | 30.21 | | | $ | 26.94 | | |
Income From Investment Operations: | |
| Net investment income/(loss)@ | | | (0.06 | ) | | | (0.12 | ) | | | (0.19 | ) | | | (0.27 | ) | | | (0.26 | ) | | | (0.17 | ) | |
Net Gains or Losses on Securities
(both realized and unrealized) | | | 2.50 | | | | 0.97 | | | | 0.46 | | | | 0.98 | | | | 10.00 | | | | 3.44 | | |
Total From Investment Operations | | | 2.44 | | | | 0.85 | | | | 0.27 | | | | 0.71 | | | | 9.74 | | | | 3.27 | | |
Less Distributions From: | |
Net Realized Capital Gains | | | — | | | | (1.08 | ) | | | (2.14 | ) | | | (17.46 | ) | | | — | | | | — | | |
Voluntary Contribution from Management | | | — | | | | — | | | | 0.02 | | | | 0.00 | | | | — | | | | — | | |
Net Asset Value, End of Period | | $ | 23.56 | | | $ | 21.12 | | | $ | 21.35 | | | $ | 23.20 | | | $ | 39.95 | | | $ | 30.21 | | |
| Total Return† | | | 11.55 | %*^‡ | | | 4.16 | %^ | | | 1.00 | %^µ | | | 7.31 | %µ | | | 32.24 | % | | | 12.14 | %^ | |
Ratios/Supplemental Data | |
Net Assets, End of Period (in millions) | | $ | 281.2 | | | $ | 244.4 | | | $ | 236.6 | | | $ | 149.3 | | | $ | 127.8 | | | $ | 88.2 | | |
Ratio of Gross Expenses to Average Net Assets | | | 1.21 | %** | | | 1.24 | % | | | 1.24 | % | | | 1.25 | % | | | 1.26 | %# | | | 1.24 | % | |
Ratio of Net Expenses to Average Net Assets | | | 1.21 | %**ß | | | 1.24 | % | | | 1.24 | %§ | | | 1.25 | %§ | | | 1.25 | % | | | 1.25 | %ا | |
Ratio of Net Investment Income/(Loss)
to Average Net Assets | | | (0.56 | )%**ß | | | (0.59 | )% | | | (0.80 | )% | | | (0.78 | )% | | | (0.76 | )% | | | (0.57 | )% | |
Portfolio Turnover Rate | | | 28 | %* | | | 54 | % | | | 58 | %ñ | | | 64 | % | | | 43 | % | | | 38 | % | |
See Notes to Financial Highlights
19
Notes to Financial Highlights Mid Cap Growth Portfolio (Unaudited)
@ Calculated based on the average number of shares outstanding during each fiscal period.
† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period. Returns assume 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 accounts or the related insurance policies or other qualified pension or retirement plans, and the inclusion of these charges and other expenses would reduce the total return for all fiscal periods shown.
* Not annualized.
^ The class action proceeds listed in Note A of the Notes to Financial Statements had no impact on the Fund's total return for the six months ended June 30, 2017. Had the Fund not received class action proceeds in 2016, total return based on per share NAV for the year ended December 31, 2016 would have been 4.35% and 4.11% for Class I and Class S, respectively. The class action proceeds received in 2015 had no impact on the Fund's total return for the year ended December 31, 2015. Had the Fund not received class action proceeds in 2013, total return based on per share NAV for the year ended December 31, 2013 would have been 32.58% for Class I. Had the Fund not received class action proceeds in 2012, total return based on per share NAV for the year ended December 31, 2012 would have been 12.34% and 12.06% for Class I and Class S, respectively.
µ Had the Fund not received a voluntary contribution, total return based on per share NAV for the year ended December 31, 2015 would have been 1.23% and 0.95% for Class I and Class S, respectively. The voluntary contribution received in 2014 had no impact on the Fund's total return for the year ended December 31, 2014.
# 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. Management did not reimburse or waive fees during the fiscal periods shown.
** Annualized.
ß Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in these ratios on a non-annualized basis. Had the Funds not received the refund the annualized ratios of net expenses to average net assets and net investment income/(loss) to average net assets would have been:
| | | Ratio of Net
Expenses to
Average Net
Assets
Six Months
Ended June 30,
2017 | | Ratio of Net
Investment
Income/
(Loss) to
Average Net
Assets
Six Months
Ended June 30,
2017 | |
Class I | | | 0.96 | % | | | (0.32 | )% | |
Class S | | | 1.21 | % | | | (0.57 | )% | |
20
Notes to Financial Highlights Mid Cap Growth Portfolio (Unaudited) (cont'd)
Ø Prior to January 1, 2013, the Fund had an expense offset arrangement in connection with its custodian contract. The impact of expense reductions related to expense offset arrangements, if any, was less than 0.01%.
‡ The Custodian Out-of-Pocket Expenses Refunded listed in Note F of the Notes to Financial Statements had no impact on Class S's total return for the six months ended June 30, 2017. Had the Fund not received the Custodian Out-of-Pocket Expenses Refunded listed in Note F of the Notes to Financial Statements, the total return for Class I would have been 11.72%.
ñ On November 6, 2015, Mid Cap Growth acquired all of the net assets of Balanced, Growth and Small Cap Growth pursuant to a Plan of Reorganization and Dissolution. Portfolio turnover excludes purchases and sales of securities by Balanced, Growth and Small Cap Growth (acquired funds) prior to the merger date.
§ After repayment of expenses previously reimbursed and/or fees previously waived by Management, as applicable. Had the Fund not made such repayments, the annualized ratios of net expenses to average net assets would have been:
| | | Year Ended December 31, | |
| | | 2015 | | 2014 | | 2013 | | 2012 | |
Class S | | | 1.24 | % | | | 1.25 | % | | | — | | | | 1.24 | % | |
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 800-877-9700 (toll-free) and on the Securities and Exchange Commission's website, 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 upon request, without charge, by calling 800-877-9700 (toll-free), on the Securities and Exchange Commission's website 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 800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 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, 2017
Mid Cap Intrinsic Value Portfolio Commentary
For the six months ended June 30, 2017, the Neuberger Berman Advisers Management Trust Mid Cap Intrinsic Value Portfolio Class I shares generated a total return of 9.40%, outperforming the Russell Midcap® Value Index (Index), which posted a return of 5.18% for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
Stocks continued to rally during the period, and many indexes reached new highs. Surprisingly, bond yields decreased during the 2nd quarter; the 10-year U.S. Treasury yield ended the period near the year's earlier lows. Investors became increasingly concerned with President Trump's ability to move his agenda through Congress. With the U.S. Federal Reserve (Fed) continuing to tighten monetary policy and sluggish first quarter GDP growth, the "Trump trade" gave way to a "risk off" trade, which favored the defensive sectors of the market. Bond and stock markets were sending contradictory messages; the bond market was signaling a slow growth economy with little concern for a pick-up in inflation, while the stock market, with the S&P 500® Index having a current fiscal year P/E ratio of 18.8 (based on analyst consensus estimates), anticipated an acceleration in earnings growth.
The Fund benefited from its overweight in Technology. We believe the Fund's Technology holdings have strong growth prospects while selling at value multiples. Two strong Technology performers were Western Digital and Check Point Software. Over the last year we have increased our exposure to the Health Care sector as many stocks in this area came under pressure due to the new administration's concerns about pharmaceutical pricing and the potential disruption if Obamacare is repealed. Performance was helped by Quintiles and Zimmer Biomet, which both rebounded from overly depressed levels. In Consumer Staples, Whole Foods Market agreed to be purchased by Amazon for $42 per share in cash, which was a substantial premium to the Fund's cost.
Detracting from relative performance was the Fund's underweight in the Utilities sector, which did well as interest rates declined. Also, the Fund has very little real estate investment trust exposure and this area of the financial sector did well as it is particularly sensitive to interest rates. On an individual stock basis, Devon Energy came under pressure as oil prices collapsed. Given our negative outlook for oil prices we eliminated this position. BankUnited declined as its loan growth came in below very aggressive targets; however, we still believe it is a very valuable franchise. Avis Budget Group underperformed as used car prices dropped more than expected and investors questioned the business model. With the stock selling at an estimated 20% free cash flow yield, we believe the company remains an attractive investment.
We were somewhat active in the portfolio, adding to positions where prices became more attractive and initiating several new ideas. We eliminated positions—a couple of which achieved their intrinsic value(1) targets and another couple where our investment thesis for the companies changed. Lastly, we trimmed several positions mostly after significant market appreciation.
Since the presidential election on November 8, 2016, the Index is up over 13%, with the Fund strongly outperforming the Index by about 300 basis points through the end of June. We believe the post-election rally was based on a pro-growth platform of less regulation, infrastructure spending, and tax reform. While regulatory changes are being implemented by the Trump Administration, it remains cloudy as to whether the main agenda will be realized. Without fiscal stimulus and with the Fed tightening, we believe economic growth could slow further and with valuation levels significantly above historical averages investors should be cautious moving forward. With that said, in our opinion, the Fund's portfolio of high quality, cash generating investments continue to sell at what we think is an attractive discount to intrinsic value and we believe that it is positioned to generate solid returns over time.
Sincerely,
MICHAEL C. GREENE
PORTFOLIO MANAGER
1Intrinsic value reflects the portfolio management team's analysis and estimates of a company's value. There is no guarantee that any intrinsic values will be realized; security prices may decrease regardless of intrinsic values.
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund's portfolio manager. The opinions are as of the date of this report, and are subject to change without notice.
1
Mid Cap Intrinsic Value Portfolio
SECTOR ALLOCATION
(as a % of Total Investments*) | |
Consumer Discretionary | | | 12.7 | % | |
Consumer Staples | | | 3.2 | | |
Energy | | | 8.4 | | |
Financial Services | | | 15.1 | | |
Health Care | | | 11.1 | | |
Materials & Processing | | | 3.1 | | |
Producer Durables | | | 18.8 | | |
Technology | | | 16.8 | | |
Utilities | | | 5.5 | | |
Short-Term Investment | | | 5.3 | | |
Total | | | 100.0 | % | |
* Derivatives, if any, are excluded from this chart.
PERFORMANCE HIGHLIGHTS
| | Inception | | Six Month
Period Ended | | Average Annual Total Return
Ended 06/30/2017 | |
| | Date | | 06/30/2017 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund | |
Mid Cap Intrinsic
Value Portfolio
Class I | | 08/22/2001 | | 9.40% | | 20.84% | | 14.43% | | 6.39% | | 8.69% | |
Mid Cap Intrinsic
Value Portfolio
Class S2 | | 04/29/2005 | | 9.22% | | 20.58% | | 14.18% | | 6.17% | | 8.51% | |
Russell Midcap®
Value Index1,3 | | | | 5.18% | | 15.93% | | 15.14% | | 7.23% | | 10.06% | |
Russell Midcap®
Index1,3 | | | | 7.99% | | 16.48% | | 14.72% | | 7.67% | | 9.67% | |
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 http://www.nb.com/amtportfolios/performance.
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 Fund distributions or on the redemption of Fund 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 Fund.
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 Investment Advisers 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 Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2016 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 1.26% for Class S shares after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended June 30, 2017 can be found in the Financial Highlights section of this report.
2
1 The date used to calculate Life of Fund performance for the index is August 22, 2001, 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 has lower expenses and correspondingly higher returns than Class S shares.
3 The Russell Midcap® Value Index is a float-adjusted market capitalization-weighted index that measures the performance of the mid-cap value segment of the U.S. equity market. It includes those Russell Midcap® Index companies with lower price-to-book ratios and lower forecasted growth rates. The index is rebalanced annually in June. The Russell Midcap Index is a float-adjusted market capitalization-weighted index that measures the performance of the mid-cap segment of the U.S. equity market. It includes approximately 800 of the smallest securities in the Russell 1000® Index. The index is rebalanced annually in June. Please note that the indices described in this report 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 are prepared or obtained by Neuberger Berman Investment Advisers LLC* ("Management") and reflect the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and generally does not invest in all securities included in a described index.
* On January 1, 2016, Neuberger Berman Management LLC ("NBM") transferred to Neuberger Berman Fixed Income LLC ("NBFI") its rights and obligations pertaining to all services it provided to any Fund under any investment management, investment sub-advisory, and/or administration agreement, as applicable (the "Agreements"). Following such transfer, NBFI was renamed Neuberger Berman Investment Advisers LLC ("NBIA" or "Management"). Following the consolidation, the investment professionals of NBM who provided services to the Fund under the Agreements continue to provide the same services, except that they provide those services in their new capacities as investment professionals of NBIA. Further, the consolidation did not result in any change in the investment processes employed by the Fund, the nature or level of services provided to the Fund, or the fees the Fund pays under its Agreements.
On July 1, 2016, NBM was reorganized into Neuberger Berman LLC ("Neuberger Berman") (the "Reorganization"). Upon the completion of the Reorganization, Neuberger Berman assumed all rights and obligations pertaining to all services NBM provided to the Fund under any distribution agreement or distribution and services agreement (the "Agreements") or plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, (the "Plans"). Accordingly, after the Reorganization, Neuberger Berman became the Fund's distributor and the services previously provided by NBM under the Agreements and Plans are provided by Neuberger Berman.
Following the Reorganization, the employees of NBM provide the same services to the Fund under the Agreements and Plans, except that they provide those services in their capacities as employees of Neuberger Berman. Further, the Reorganization did not result in any change in the nature or level of services provided to the Fund, or the fees, if any, the Fund pays under the Agreements or the Plans.
On January 1, 2017, the Fund's distributor, Neuberger Berman, changed its name to Neuberger Berman BD LLC.
The investments for the Fund are managed by the same portfolio manager(s) who manage(s) one or more other registered funds that have names, investment objectives and investment styles that are similar to those of the Fund. You should be aware that the Fund is likely to differ from those other mutual fund(s) in size, cash flow pattern and tax matters. Accordingly, the holdings and performance of the Fund can be expected to vary from those of the other mutual fund(s).
Shares of the separate Neuberger Berman Advisers Management Trust Portfolios, including the Fund, are not available to the general public. Shares of the Fund may be purchased only by life insurance companies to be held in their separate accounts, which 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 Fund. This report is prepared for the general information of shareholders and is not an offer of shares of the Fund. Shares are sold only through the currently effective prospectus, which must precede or accompany this report.
The "Neuberger Berman" name and logo and "Neuberger Berman Investment Advisers LLC" are registered service marks of Neuberger Berman Group LLC. The individual Fund name in this piece is either a service mark or registered service mark of Neuberger Berman Investment Advisers LLC , an affiliate of Neuberger Berman BD LLC, distributor, member FINRA.
© 2017 Neuberger Berman BD 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 U.S. 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, 2017 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 indicated. 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.
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST MID CAP INTRINSIC VALUE PORTFOLIO
Actual | | Beginning Account
Value 1/1/17 | | Ending Account
Value 6/30/17 | | Expenses Paid During
the Period
1/1/17 – 6/30/17 | | Expense
Ratio*** | |
Class I | | $ | 1,000.00 | | | $ | 1,094.00 | | | $ | 5.19 | * | | | 1.00 | % | |
Class S | | $ | 1,000.00 | | | $ | 1,092.20 | | | $ | 6.48 | * | | | 1.25 | % | |
Hypothetical (5% annual return before expenses) | |
Class I | | $ | 1,000.00 | | | $ | 1,019.84 | | | $ | 5.01 | ** | | | 1.00 | % | |
Class S | | $ | 1,000.00 | | | $ | 1,018.60 | | | $ | 6.26 | ** | | | 1.25 | % | |
* For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical expenses are equal to the annualized expense ratios for each class, multiplied by the average account value over the period (assuming a 5% annual return), multiplied by 181/365 (to reflect the one-half year period shown).
*** Had the Fund not received the Custodian Out-of-Pocket Expenses Refunded (see Note F of Notes to Financial Statements), the expense ratios for Class I and Class S would have been 1.02% and 1.25%, respectively. Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in these ratios on a non-annualized basis.
4
Schedule of Investments Mid Cap Intrinsic Value Portfolio (Unaudited) June 30, 2017
NUMBER OF SHARES | | | | VALUE | |
Common Stocks 96.5% | | | |
Aerospace & Defense 8.2% | | | |
| | 27,550 | | | General Dynamics Corp. | | $ | 5,457,655 | | |
| | 43,300 | | | Orbital ATK, Inc. | | | 4,258,988 | | |
| | 19,846 | | | Rockwell Collins, Inc. | | | 2,085,418 | | |
| 40,800 | | | Spirit AeroSystems
Holdings, Inc. Class A | | | 2,363,952 | | |
| | | | 14,166,013 | | |
Airlines 2.3% | | | |
| | 78,300 | | | American Airlines Group, Inc. | | | 3,940,056 | | |
Banks 6.1% | | | |
| | 131,800 | | | BankUnited, Inc. | | | 4,442,978 | | |
| | 56,800 | | | BB&T Corp. | | | 2,579,288 | | |
| | 49,100 | | | Comerica, Inc. | | | 3,596,084 | | |
| | | | 10,618,350 | | |
Building Products 2.4% | | | |
| 95,610 | | | Johnson Controls
International PLC | | | 4,145,650 | | |
Capital Markets 2.2% | | | |
| | 42,600 | | | State Street Corp. | | | 3,822,498 | | |
Chemicals 4.2% | | | |
| | 34,400 | | | Ashland Global Holdings, Inc. | | | 2,267,304 | | |
| | 215,439 | | | Valvoline, Inc. | | | 5,110,213 | | |
| | | | 7,377,517 | | |
Commercial Services & Supplies 1.8% | | | |
| | 243,000 | | | Covanta Holding Corp. | | | 3,207,600 | | |
Construction & Engineering 1.9% | | | |
| | 21,700 | | | Valmont Industries, Inc. | | | 3,246,320 | | |
Containers & Packaging 1.9% | | | |
| | 37,200 | | | Avery Dennison Corp. | | | 3,287,364 | | |
Electric Utilities 1.8% | | | |
| | 40,900 | | | Edison International | | | 3,197,971 | | |
Electronic Equipment, Instruments &
Components 2.5% | | | |
| | 147,700 | | | Flex Ltd. | | | 2,408,987 | * | |
| | 27,900 | | | Itron, Inc. | | | 1,890,225 | * | |
| | | | 4,299,212 | | |
NUMBER OF SHARES | | | | VALUE | |
Equity Real Estate Investment Trust 2.1% | | | |
| | 108,040 | | | Colony Starwood Homes | | $ | 3,706,852 | | |
Food & Staples Retailing 2.0% | | | |
| | 82,100 | | | Whole Foods Market, Inc. | | | 3,457,231 | | |
Food Products 1.2% | | | |
| | 26,000 | | | TreeHouse Foods, Inc. | | | 2,123,940 | * | |
Health Care Equipment & Supplies 3.5% | | | |
| | 47,000 | | | Zimmer Biomet Holdings, Inc. | | | 6,034,800 | | |
Health Care Providers & Services 2.0% | | | |
| | 55,300 | | | Envision Healthcare Corp. | | | 3,465,651 | * | |
Hotels, Restaurants & Leisure 0.7% | | | |
| | 12,700 | | | Wyndham Worldwide Corp. | | | 1,275,207 | | |
Household Durables 2.2% | | | |
| | 19,600 | | | Whirlpool Corp. | | | 3,755,752 | | |
Independent Power and Renewable
Electricity Producers 1.6% | | | |
| | 250,400 | | | AES Corp. | | | 2,781,944 | | |
IT Services 4.4% | | | |
| | 26,600 | | | Amdocs Ltd. | | | 1,714,636 | | |
| | 165,900 | | | Conduent, Inc. | | | 2,644,446 | * | |
| | 109,600 | | | Teradata Corp. | | | 3,232,104 | * | |
| | | | 7,591,186 | | |
Life Sciences Tools & Services 2.1% | | | |
| | 40,700 | | | Quintiles IMS Holdings, Inc. | | | 3,642,650 | * | |
Media 4.1% | | | |
| | 36,600 | | | CBS Corp. Class B | | | 2,334,348 | | |
| 38,150 | | | Lions Gate Entertainment
Corp. Class A | | | 1,076,593 | * | |
| 38,150 | | | Lions Gate Entertainment
Corp. Class B | | | 1,002,582 | * | |
| | 121,100 | | | MSG Networks, Inc. Class A | | | 2,718,695 | * | |
| | | | 7,132,218 | | |
Mortgage Real Estate Investment
Trust 1.9% | | | |
| | 147,200 | | | Starwood Property Trust, Inc. | | | 3,295,808 | | |
Multi-Utilities 2.1% | | | |
| | 134,700 | | | CenterPoint Energy, Inc. | | | 3,688,086 | | |
See Notes to Financial Statements
5
Schedule of Investments Mid Cap Intrinsic Value Portfolio (Unaudited) (cont'd)
NUMBER OF SHARES | | | | VALUE | |
Multiline Retail 1.4% | | | |
| | 108,200 | | | Macy's, Inc. | | $ | 2,514,568 | | |
Oil, Gas & Consumable Fuels 5.6% | | | |
| | 148,400 | | | Cabot Oil & Gas Corp. | | | 3,721,872 | | |
| | 64,500 | | | ONEOK, Inc. | | | 3,364,320 | | |
| | 85,400 | | | Williams Cos., Inc. | | | 2,585,912 | | |
| | | | 9,672,104 | | |
Pharmaceuticals 3.8% | | | |
| | 47,200 | | | Perrigo Co. PLC | | | 3,564,544 | | |
| 90,000 | | | Teva Pharmaceutical
Industries Ltd. ADR | | | 2,989,800 | | |
| | | | 6,554,344 | | |
Road & Rail 2.3% | | | |
| | 144,900 | | | Avis Budget Group, Inc. | | | 3,951,423 | * | |
Semiconductors & Semiconductor
Equipment 5.1% | | | |
| | 271,400 | | | ON Semiconductor Corp. | | | 3,810,456 | * | |
| | 52,300 | | | Skyworks Solutions, Inc. | | | 5,018,185 | | |
| | | | 8,828,641 | | |
Software 4.9% | | | |
| 42,700 | | | Check Point Software
Technologies Ltd. | | | 4,657,716 | * | |
| | 222,500 | | | Nuance Communications, Inc. | | | 3,873,725 | * | |
| | | | 8,531,441 | | |
Specialty Retail 2.3% | | | |
| | 34,700 | | | Best Buy Co., Inc. | | | 1,989,351 | | |
| | 359,100 | | | Office Depot, Inc. | | | 2,025,324 | | |
| | | | 4,014,675 | | |
NUMBER OF SHARES | | | | VALUE | |
Technology Hardware, Storage &
Peripherals 2.9% | | | |
| | 56,321 | | | Western Digital Corp. | | $ | 4,990,040 | | |
Trading Companies & Distributors 3.0% | | | |
| | 112,400 | | | AerCap Holdings NV | | | 5,218,732 | * | |
| | | | Total Common Stocks
(Cost $129,950,542) | | | 167,535,844 | | |
| Rights 0.0%(a) | | | |
| Food & Staples Retailing 0.0%(a) | | | |
| | 39,450 | | | Safeway, Inc. (Casa Ley) | | | 9,863 | *(b) | |
| 39,450 | | | Safeway, Inc. (Property
Development Centers) | | | 0 | *(b)(c) | |
| | | | Total Rights
(Cost $41,147) | | | 9,863 | | |
Short-Term Investment 5.4% | | | |
Investment Company 5.4% | | | |
| 9,310,520 | | | State Street Institutional
U.S. Government Money
Market Fund Premier Class,
0.88% (Cost $9,310,520) | | | 9,310,520 | (d) | |
| | | | Total Investments 101.9%
(Cost $139,302,209) | | | 176,856,227 | | |
| | | | | Other Assets Less Liabilities (1.9)% | | | (3,233,884 | ) | |
| | | | | Net Assets 100.0% | | $ | 173,622,343 | | |
* Non-income producing security.
(a) Represents less than 0.05% of net assets.
(b) Illiquid security.
(c) Security fair valued as of June 30, 2017 in accordance with procedures approved by the Board of Trustees. Total value of all such securities at June 30, 2017, amounted to $0, which represents 0.0% of net assets of the Fund.
(d) Represents 7-day effective yield as of June 30, 2017.
See Notes to Financial Statements
6
Schedule of Investments Mid Cap Intrinsic Value Portfolio (Unaudited) (cont'd)
The following is a summary, categorized by Level (see Note A of Notes to Financial Statements), of inputs used to value the Fund's investments as of June 30, 2017:
Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3(b) | | Total | |
Investments: | |
Common Stocks(a) | | $ | 167,535,844 | | | $ | — | | | $ | — | | | $ | 167,535,844 | | |
Rights(a) | | | — | | | | — | | | | 9,863 | | | | 9,863 | | |
Short-Term Investment | | | — | | | | 9,310,520 | | | | — | | | | 9,310,520 | | |
Total Investments | | $ | 167,535,844 | | | $ | 9,310,520 | | | $ | 9,863 | | | $ | 176,856,227 | | |
(a) The Schedule of Investments provides information on the industry categorization for the portfolio.
(b) The following is a reconciliation between the beginning and ending balances of investments in which unobservable inputs (Level 3) were used in determining value:
Investments in
Securities: | | Beginning
balance, as
of 1/1/2017 | | Accrued
discounts/
(premiums) | | Realized
gain/(loss) | | Change in
unrealized
appreciation/
(depreciation) | | Purchases | | Sales | | Transfers
into
Level 3 | | Transfers
out of
Level 3 | | Balance,
as of
6/30/2017 | | Net change
in unrealized
appreciation/
(depreciation)
from
investments
still held as of
6/30/2017 | |
| Rights(c) | |
Food & Staples
Retailing | | $ | 10,652 | | | $ | — | | | $ | — | | | $ | (789 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 9,863 | | | $ | (789 | ) | |
Total | | $ | 10,652 | | | $ | — | | | $ | — | | | $ | (789 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 9,863 | | | $ | (789 | ) | |
(c) As of the six months ended June 30, 2017, this security was valued based on a single quotation obtained from a dealer. The Fund does not have access to unofbservable inputs and therefore cannot disclose such inputs used in formulating such quotation.
As of the six months ended June 30, 2017, no securities were transferred from one level (as of December 31, 2016) to another.
See Notes to Financial Statements
7
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | MID CAP
INTRINSIC
VALUE
PORTFOLIO | |
| | | June 30, 2017 | |
Assets | |
Investments in securities, at value* (Note A)—see Schedule of Investments: | |
Unaffiliated issuers | | $ | 176,856,227 | | |
Dividends and interest receivable | | | 365,570 | | |
Receivable for Fund shares sold | | | 88,432 | | |
Prepaid expenses and other assets | | | 4,847 | | |
Total Assets | | | 177,315,076 | | |
Liabilities | |
Payable to investment manager (Note B) | | | 77,973 | | |
Payable for securities purchased | | | 3,211,421 | | |
Payable for Fund shares redeemed | | | 242,900 | | |
Payable to administrator—net (Note B) | | | 54,276 | | |
Payable to trustees | | | 9,635 | | |
Accrued expenses and other payables | | | 96,528 | | |
Total Liabilities | | | 3,692,733 | | |
Net Assets | | $ | 173,622,343 | | |
Net Assets consist of: | |
Paid-in capital | | $ | 135,344,412 | | |
Undistributed net investment income/(loss) | | | 1,857,568 | | |
Accumulated net realized gains/(losses) on investments | | | (1,133,655 | ) | |
Net unrealized appreciation/(depreciation) in value of investments | | | 37,554,018 | | |
Net Assets | | $ | 173,622,343 | | |
Net Assets | |
Class I | | $ | 113,679,953 | | |
Class S | | | 59,942,390 | | |
Shares Outstanding ($.001 par value; unlimited shares authorized) | |
Class I | | | 6,145,455 | | |
Class S | | | 2,860,423 | | |
Net Asset Value, offering and redemption price per share | |
Class I | | $ | 18.50 | | |
Class S | | | 20.96 | | |
*Cost of Investments | | $ | 139,302,209 | | |
See Notes to Financial Statements
8
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | MID CAP
INTRINSIC
VALUE
PORTFOLIO | |
| | | For the
Six Months Ended
June 30, 2017 | |
Investment Income: | |
Income (Note A): | |
Dividend income—unaffiliated issuers | | $ | 1,500,034 | | |
Interest income—unaffiliated issuers | | | 20,389 | | |
Foreign taxes withheld (Note A) | | | (9,180 | ) | |
Total income | | $ | 1,511,243 | | |
Expenses: | |
Investment management fees (Note B) | | | 459,551 | | |
Administration fees (Note B): | |
Class I | | | 163,905 | | |
Class S | | | 86,759 | | |
Distribution fees (Note B): | |
Class S | | | 72,299 | | |
Audit fees | | | 23,088 | | |
Custodian and accounting fees | | | 32,643 | | |
Insurance expense | | | 2,646 | | |
Legal fees | | | 48,430 | | |
Shareholder reports | | | 12,710 | | |
Trustees' fees and expenses | | | 20,960 | | |
Miscellaneous | | | 3,630 | | |
Total expenses | | | 926,621 | | |
Expenses reimbursed by Management (Note B) | | | (5,178 | ) | |
Custodian out-of-pocket expenses refunded (Note F) | | | (29,788 | ) | |
Total net expenses | | | 891,655 | | |
Net investment income/(loss) | | $ | 619,588 | | |
Realized and Unrealized Gain/(Loss) on Investments (Note A): | |
Net realized gain/(loss) on: | |
Sales of investment securities of unaffiliated issuers | | | 8,328,686 | | |
Change in net unrealized appreciation/(depreciation) in value of: | |
Unaffiliated investment securities | | | 5,981,801 | | |
Net gain/(loss) on investments | | | 14,310,487 | | |
Net increase/(decrease) in net assets resulting from operations | | $ | 14,930,075 | | |
See Notes to Financial Statements
9
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | MID CAP INTRINSIC VALUE PORTFOLIO | |
| | | Six Months Ended
June 30,
2017
(Unaudited) | | Year Ended
December 31,
2016
| |
Increase/(Decrease) in Net Assets: | |
From Operations (Note A): | |
Net investment income/(loss) | | $ | 619,588 | | | $ | 1,562,437 | | |
Net realized gain/(loss) on investments | | | 8,328,686 | | | | (6,405,396 | ) | |
Change in net unrealized appreciation/(depreciation) of investments | | | 5,981,801 | | | | 27,638,506 | | |
Net increase/(decrease) in net assets resulting from operations | | | 14,930,075 | | | | 22,795,547 | | |
Distributions to Shareholders From (Note A): | |
Net investment income: | |
Class I | | | — | | | | (635,017 | ) | |
Class S | | | — | | | | (130,629 | ) | |
Net realized gain on investments: | |
Class I | | | — | | | | (7,219,441 | ) | |
Class S | | | — | | | | (3,562,341 | ) | |
Total distributions to shareholders | | | — | | | | (11,547,428 | ) | |
From Fund Share Transactions (Note D): | |
Proceeds from shares sold: | |
Class I | | | 11,880,756 | | | | 20,771,315 | | |
Class S | | | 7,591,850 | | | | 6,119,027 | | |
Proceeds from reinvestment of dividends and distributions: | |
Class I | | | — | | | | 7,854,458 | | |
Class S | | | — | | | | 3,692,970 | | |
Payments for shares redeemed: | |
Class I | | | (12,731,056 | ) | | | (21,510,721 | ) | |
Class S | | | (9,696,079 | ) | | | (12,774,496 | ) | |
Net increase/(decrease) from Fund share transactions | | | (2,954,529 | ) | | | 4,152,553 | | |
Net Increase/(Decrease) in Net Assets | | | 11,975,546 | | | | 15,400,672 | | |
Net Assets: | |
Beginning of period | | | 161,646,797 | | | | 146,246,125 | | |
End of period | | $ | 173,622,343 | | | $ | 161,646,797 | | |
Undistributed net investment income/(loss) at end of period | | $ | 1,857,568 | | | $ | 1,237,980 | | |
See Notes to Financial Statements
10
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 an Amended and Restated Trust Instrument dated March 27, 2014. The Trust is currently comprised of eight separate operating series (each individually a "Fund," 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. Neuberger Berman Advisers Management Trust Mid Cap Intrinsic Value Portfolio (the "Fund") currently offers Class I and Class S shares. The Trust's Board of Trustees (the "Board") may establish additional series or classes of shares without the approval of shareholders.
The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946 "Financial Services—Investment Companies."
The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires Neuberger Berman Investment Advisers LLC ("NBIA" or "Management") to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Shares of the Fund are not available to the general public and may be purchased only by life insurance companies to serve as an investment vehicle for premiums paid under their variable annuity and variable life insurance contracts and to certain qualified pension and other retirement plans.
2 Portfolio valuation: In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurement" ("ASC 820"), all investments held by the Fund are carried at the value that 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 observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3—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 rights, for which market quotations are readily available, is generally determined by Management by obtaining valuations from independent pricing services 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 at the NASDAQ Official Closing Price ("NOCP")
11
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 sale of a security on a particular day, the independent pricing services may value the security based on market quotations.
Management has developed a process to periodically review information provided by independent pricing services for all types of securities.
Investments in non-exchange traded investment companies are valued using the respective 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, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not readily available, the security is valued using methods the Board has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Numerous factors may be considered when determining the fair value of a security based on Level 2 or Level 3 inputs, including available analyst, media or other reports, securities within the same industry with recent highly correlated performance, trading in futures or American Depositary Receipts ("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.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are normally translated into U.S. dollars using the exchange rate as of 4:00 p.m. Eastern Time, on days the NYSE is open for business 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, 2017 was $6.
5 Income tax information: The Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of the Fund to continue to qualify for treatment as a regulated investment company ("RIC") by complying with the requirements of the U.S. Internal Revenue Code applicable to RICs and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent the Fund distributes substantially all of its net investment income and net realized capital gains 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
12
Statement of Operations. The Fund is subject to examination by U.S. federal and state tax authorities for returns filed for the tax years for which the applicable statutes of limitations have not yet expired. As of June 30, 2017, the Fund did not have any unrecognized tax positions.
At June 30, 2017, the cost of investments on a U.S. federal income tax basis was $138,866,382. Gross unrealized appreciation of investments was $42,801,036 and gross unrealized depreciation of investments was $4,811,191 resulting in net unrealized appreciation of $37,989,845 based on cost for U.S. federal income tax purposes.
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. The Fund may also utilize earnings and profits distributed to shareholders on redemption of their shares as a part of the dividends-paid deduction for income tax purposes.
As determined on December 31, 2016, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences are attributed to the tax treatment of: prior year adjustments, distributions re-designated, partnership basis adjustments, non-deductible expense, return of capital distributions from real estate investment trusts ("REITs") and capital gain distributions from REITs. 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, 2016, the Fund recorded the following permanent reclassifications:
| Paid-in Capital | | Undistributed
Net Investment
Income/(Loss) | | Accumulated
Net Realized
Gains/(Losses)
on Investments | |
| $ | (289 | ) | | $ | (635,750 | ) | | $ | 636,039 | | |
The tax character of distributions paid during the years ended December 31, 2016 and December 31, 2015 was as follows:
Distributions Paid From: | |
Ordinary Income | | Long-Term Capital Gain | | Total | |
| 2016 | | 2015 | | 2016 | | 2015 | | 2016 | | 2015 | |
| $ | 766,176 | | | $ | 1,001,284 | | | $ | 10,781,252 | | | $ | 3,551,777 | | | $ | 11,547,428 | | | $ | 4,553,061 | | |
As of December 31, 2016, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed
Ordinary
Income | | Undistributed
Long-Term
Capital Gain | | Unrealized
Appreciation/
(Depreciation) | | Loss
Carryforwards
and Deferrals | | Other
Temporary
Differences | | Total | |
| $ | 1,237,980 | | | $ | — | | | $ | 31,789,388 | | | $ | (9,679,512 | ) | | $ | — | | | $ | 23,347,856 | | |
The temporary differences between book basis and tax basis distributable earnings are primarily due to losses disallowed and recognized on wash sales and return of capital 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 Modernization Act of 2010 (the "Act") made 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, 2016, the Fund had unused
13
capital loss carryforwards available for federal income tax purposes to offset net realized capital gains, if any, as follows:
Pre-Enactment | |
Expiring in:
2017 | |
| $ | 3,818,173 | | |
Post-Enactment (No Expiration Date) | |
| Long-Term | | Short-Term | |
| $ | 2,840,658 | | | $ | 3,020,681 | | |
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, are generally 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 real estate investment trust ("REIT") distributions and other income it receives, less operating expenses. The distributions the Fund receives from REITs are generally composed of income, capital gains, and/or return of REIT capital, but the REITs do not report this information to the Fund until the following calendar year. At June 30, 2017, the Fund estimated these amounts for the period January 1, 2017 to June 30, 2017 within the financial statements because the 2017 information is not available from the REITs until after the Fund's fiscal year-end. All estimates are based upon REIT information sources available to the Fund together with actual IRS Forms 1099-DIV received to date. For the year ended December 31, 2016, the character of distributions paid to shareholders disclosed within the Statements of Changes in Net Assets is based on estimates made at that time. 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 re-characterized as return of capital and/or capital gain. After all applicable REITs have informed the Fund of the actual breakdown of distributions paid to the Fund during its fiscal year, estimates previously recorded are adjusted on the books of the Fund to reflect actual results. As a result, the composition of the Fund's distributions as reported herein may differ from the final composition determined after calendar year-end and reported to Fund shareholders on IRS Form 1099-DIV.
7 Foreign taxes: Foreign taxes withheld, if any, represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds within the complex of related investment companies. Expenses directly attributable to a Fund are charged to that Fund. 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 among the classes based upon the relative net assets of each class.
14
9 Investments in foreign securities: Investing in foreign securities may involve 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 Unaffiliated investment company securities and exchange-traded funds: The Fund may invest in shares of other registered investment companies, including exchange-traded funds ("ETFs"), within the limitations prescribed by the 1940 Act or pursuant to an exemptive order from the U.S. Securities and Exchange Commission ("SEC") that permits the Fund to invest in both affiliated and unaffiliated investment companies, including exchange-traded funds, in excess of the limits in Section 12(d)(1)(A) of the 1940 Act, as amended, subject to the terms and conditions of such order. Some ETFs seek to track the performance of a particular market index. These indices include both broad-based market indices and more narrowly-based indices, including those relating to particular sectors, markets, regions or industries. However, some ETFs have an actively-managed investment objective. ETF shares are traded like traditional equity securities on a national securities exchange or NASDAQ. A Fund will indirectly bear its proportionate share of any management fees and other expenses paid by such other investment companies, which will increase expenses and decrease returns.
11 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers ("Officers") and trustees ("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 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—Investment Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:
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, 2017, the investment 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.
Neuberger Berman BD LLC (the "Distributor") is the Fund's "principal underwriter" within the meaning of the 1940 Act. It acts as agent in arranging for the sale of the Fund's Class I shares without sales commission or other compensation and bears all advertising and promotion expenses incurred in the sale of those shares. The Board adopted a non-fee distribution plan for the Fund's Class I. The Board has adopted a distribution and shareholder
15
services plan (the "Plan") for Class S shares pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that, as compensation for administrative and other services related to the sale and distribution of Class S, and ongoing services provided to investors in the class, the Distributor receives from Class S a fee at the annual rate of 0.25% of Class S's average daily net assets. Distributor may pay a portion of the proceeds from the 12b-1 fee to institutions that provide such services, including insurance companies or their affiliates and qualified plan administrators ("intermediaries") for services they provide respecting the Fund to current and prospective variable contract owners and qualified plan participants that invest in the Fund through the intermediaries. 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 class during any year may be more or less than the cost of distribution and other services provided to the 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 Plan complies with those rules.
Management has contractually agreed to waive fees and/or reimburse the Fund's Class I and Class S shares so that the total annual operating expenses of those classes do not exceed the expense limitations as detailed in the following table. These undertakings include fees payable to Management but exclude interest (commitment fees relating to borrowings are treated as interest for purposes of this exclusion), taxes, transaction costs, brokerage commissions, dividend and interest expenses relating to short sales, acquired fund fees and expenses and extraordinary expenses, if any; consequently, net expenses may exceed the contractual expense limitations. The Fund has agreed that each of its classes will repay Management for fees and expenses waived or reimbursed for that class provided that repayment does not cause that class's annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were waived or reimbursed, or the expense limitation in place at the time the Fund repays Management, whichever is lower. Any such repayment must be made within three years after the year in which Management incurred the expense.
During the six months ended June 30, 2017, there was no repayment to Management under its contractual expense limitation.
At June 30, 2017, the Fund's contingent liabilities to Management under its contractual expense limitation were as follows:
| | | | | | | Expenses Reimbursed in
Year Ending December 31, | |
| | | | | | | 2014 | | 2015 | | 2016 | | 2017 | |
| | | | | | | Subject to Repayment until December 31, | |
Class | | Contractual
Expense
Limitation(a) | | Expiration | | 2017 | | 2018 | | 2019 | | 2020 | |
Class I | | | 1.50 | % | | 12/31/20 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | |
Class S | | | 1.25 | % | | 12/31/21 | | | 11,815 | | | | 16,463 | | | | 23,969 | | | | 5,178 | | |
(a) Expense limitation per annum of the respective class' average daily net assets.
Neuberger Berman LLC ("Neuberger") was retained by Management through December 31, 2015, pursuant to a Sub-Advisory Agreement 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. As a result of the entity consolidation described on page 3 of this Semi-Annual Report, the services previously provided by Neuberger under the Sub-Advisory Agreement are now provided by NBIA as of January 1, 2016.
Note C—Securities Transactions:
During the six months ended June 30, 2017, there were purchase and sale transactions of long-term securities of $31,804,565 and $22,540,622, respectively.
16
During the six months ended June 30, 2017, 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, 2017 and for the year ended December 31, 2016 was as follows:
For the Six Months Ended June 30, 2017
| | | Shares Sold | | Shares Issued on
Reinvestment of
Dividends and
Distributions | | Shares
Redeemed | | Total | |
Class I | | | 670,344 | | | | — | | | | (715,116 | ) | | | (44,772 | ) | |
Class S | | | 376,783 | | | | — | | | | (483,933 | ) | | | (107,150 | ) | |
For the Year Ended December 31, 2016
| | | Shares Sold | | Shares Issued on
Reinvestment of
Dividends and
Distributions | | Shares
Redeemed | | Total | |
Class I | | | 1,283,423 | | | | 501,562 | | | | (1,316,975 | ) | | | 468,010 | | |
Class S | | | 330,018 | | | | 207,820 | | | | (696,761 | ) | | | (158,923 | ) | |
Note E—Line of Credit:
At June 30, 2017, the Fund was a participant in a syndicated committed, unsecured $700,000,000 line of credit (the "Credit Facility"), to be used only for temporary or emergency purposes. Series of other investment companies managed by Management also participate in this line of credit on substantially the same terms except that some do not have access to the full amount of the Credit Facility. Interest is charged on borrowings under this Credit Facility at the highest of (a) a federal funds effective rate plus 1.00% per annum, (b) a Eurodollar rate for a one-month period plus 1.00% per annum, and (c) an overnight bank funding rate plus 1.00% per annum. The Credit Facility has an annual commitment fee of 0.15% per annum of the available line of credit, which is paid quarterly. The Fund has agreed to pay its pro rata share of the annual commitment fee, 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 and the level of its access to the Credit Facility, and interest charged on any borrowing made by the Fund and other costs incurred by such Fund. Because several mutual funds participate in the Credit Facility, there is no assurance that an individual Fund will have access to all or any part of the $700,000,000 at any particular time. There were no loans outstanding under the Credit Facility at June 30 2017. During the period ended June 30, 2017, the Fund did not utilize the Credit Facility.
Note F—Custodian Out-of-Pocket Expenses Refunded:
In May 2016, the Fund's custodian, State Street, announced that it had identified inconsistencies in the way in which the Fund was invoiced for categories of expenses, particularly those deemed "out-of-pocket" costs, from 1998 through November 2015. The amounts in the table below represent the refunded expenses and interest determined to be payable to the Fund for the period in question. These amounts were refunded to the Fund by State Street during the period ended June 30, 2017.
Expenses
Refunded | | Interest Paid
to the Fund | |
| $ | 29,788 | | | $ | 2,504 | | |
17
Note G—Recent Accounting Pronouncement:
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017 for reports with a period-end date after that date. Management is currently evaluating the impact, if any, that the adoption of the amendments to Regulation S-X will have on the Fund's financial statements and related disclosures.
Note H—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
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. Amounts that do not round to $0.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Ratios that do not round to 0.01% or (0.01)% are presented as 0.00% or (0.00)%, respectively. A "—" indicates that the line item was not applicable in the corresponding period.
Class I | |
| | | Six Months
Ended
June 30, | | Year Ended December 31, | |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| | | (Unaudited) | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | $ | 16.91 | | | $ | 15.85 | | | $ | 17.87 | | | $ | 16.38 | | | $ | 12.09 | | | $ | 14.26 | | |
Income From Investment Operations: | |
| Net Investment Income/(Loss)@ | | | 0.07 | | | | 0.18 | | | | 0.07 | | | | 0.20 | | | | 0.17 | | | | 0.18 | | |
Net Gains or Losses on Securities
(both realized and unrealized) | | | 1.52 | | | | 2.27 | | | | (1.53 | ) | | | 1.98 | | | | 4.30 | | | | 1.94 | | |
Total From Investment Operations | | | 1.59 | | | | 2.45 | | | | (1.46 | ) | | | 2.18 | | | | 4.47 | | | | 2.12 | | |
Less Distributions From: | |
Net Investment Income | | | — | | | | (0.11 | ) | | | (0.14 | ) | | | (0.19 | ) | | | (0.18 | ) | | | (0.10 | ) | |
Net Realized Capital Gains | | | — | | | | (1.28 | ) | | | (0.42 | ) | | | (0.50 | ) | | | — | | | | (4.19 | ) | |
Total Distributions | | | — | | | | (1.39 | ) | | | (0.56 | ) | | | (0.69 | ) | | | (0.18 | ) | | | (4.29 | ) | |
Voluntary Contribution from Management | | | — | | | | — | | | | — | | | | 0.00 | | | | — | | | | — | | |
Net Asset Value, End of Period | | $ | 18.50 | | | $ | 16.91 | | | $ | 15.85 | | | $ | 17.87 | | | $ | 16.38 | | | $ | 12.09 | | |
| Total Return† | | | 9.40 | %*‡ | | | 16.17 | %^ | | | (8.34 | )%^ | | | 13.84 | %µ | | | 37.05 | %^ | | | 15.53 | % | |
Ratios/Supplemental Data | |
Net Assets, End of Period (in millions) | | $ | 113.7 | | | $ | 104.7 | | | $ | 90.7 | | | $ | 92.4 | | | $ | 84.1 | | | $ | 68.0 | | |
Ratio of Gross Expenses to
Average Net Assets# | | | 1.02 | %** | | | 1.05 | % | | | 1.03 | % | | | 1.02 | % | | | 1.03 | % | | | 1.07 | % | |
Ratio of Net Expenses to
Average Net Assets | | | 1.00 | %**ß | | | 1.05 | % | | | 1.03 | % | | | 1.02 | % | | | 1.03 | % | | | 1.07 | %Ø | |
Ratio of Net Investment Income/(Loss)
to Average Net Assets | | | 0.81 | %**ß | | | 1.12 | % | | | 0.42 | % | | | 1.20 | % | | | 1.16 | % | | | 1.27 | % | |
Portfolio Turnover Rate | | | 14 | %* | | | 36 | % | | | 41 | % | | | 30 | % | | | 35 | % | | | 29 | % | |
See Notes to Financial Highlights
19
Financial Highlights (cont'd)
Class S | |
| | | Six Months
Ended
June 30, | | Year Ended December 31, | |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| | | (Unaudited) | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | $ | 19.19 | | | $ | 17.78 | | | $ | 19.95 | | | $ | 18.20 | | | $ | 13.43 | | | $ | 15.41 | | |
Income From Investment Operations: | |
| Net Investment Income/(Loss)@ | | | 0.06 | | | | 0.17 | | | | 0.04 | | | | 0.18 | | | | 0.15 | | | | 0.17 | | |
Net Gains or Losses on Securities
(both realized and unrealized) | | | 1.71 | | | | 2.57 | | | | (1.72 | ) | | | 2.21 | | | | 4.77 | | | | 2.10 | | |
Total From Investment Operations | | | 1.77 | | | | 2.74 | | | | (1.68 | ) | | | 2.39 | | | | 4.92 | | | | 2.27 | | |
Less Distributions From: | |
Net Investment Income | | | — | | | | (0.05 | ) | | | (0.07 | ) | | | (0.14 | ) | | | (0.15 | ) | | | (0.06 | ) | |
Net Realized Capital Gains | | | — | | | | (1.28 | ) | | | (0.42 | ) | | | (0.50 | ) | | | — | | | | (4.19 | ) | |
Total Distributions | | | — | | | | (1.33 | ) | | | (0.49 | ) | | | (0.64 | ) | | | (0.15 | ) | | | (4.25 | ) | |
Voluntary Contribution from Management | | | — | | | | — | | | | — | | | | 0.00 | | | | — | | | | — | | |
Net Asset Value, End of Period | | $ | 20.96 | | | $ | 19.19 | | | $ | 17.78 | | | $ | 19.95 | | | $ | 18.20 | | | $ | 13.43 | | |
| Total Return† | | | 9.22 | %*‡ | | | 15.98 | %^ | | | (8.52 | )%^ | | | 13.56 | %µ | | | 36.71 | %^ | | | 15.37 | % | |
Ratios/Supplemental Data | |
Net Assets, End of Period (in millions) | | $ | 59.9 | | | $ | 56.9 | | | $ | 55.6 | | | $ | 62.9 | | | $ | 62.5 | | | $ | 53.5 | | |
Ratio of Gross Expenses to
Average Net Assets# | | | 1.27 | %** | | | 1.30 | % | | | 1.28 | % | | | 1.27 | % | | | 1.28 | % | | | 1.32 | % | |
Ratio of Net Expenses to
Average Net Assets | | | 1.25 | %**ß | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.25 | %Ø | |
Ratio of Net Investment Income/(Loss)
to Average Net Assets | | | 0.56 | %**ß | | | 0.91 | % | | | 0.18 | % | | | 0.97 | % | | | 0.95 | % | | | 1.09 | % | |
Portfolio Turnover Rate | | | 14 | %* | | | 36 | % | | | 41 | % | | | 30 | % | | | 35 | % | | | 29 | % | |
See Notes to Financial Highlights
20
Notes to Financial Highlights Mid Cap Intrinsic Value
Portfolio (Unaudited)
@ Calculated based on the average number of shares outstanding during each fiscal period.
† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period. Returns assume 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 accounts or the related insurance policies or other qualified pension or retirement plans, and the inclusion of these charges and other expenses would reduce the total return for all fiscal periods shown.
µ The voluntary contribution received in 2014 had no impact on the Fund's total return for the year ended December 31, 2014.
^ The class action proceeds listed in Note A of the Notes to Financial Statements had no impact on the Fund's total return for the six months ended June 30, 2017. The class action proceeds received in 2016 had no impact on the Fund's total return for the year ended December 31, 2016. The class action proceeds received in 2015 had no impact on the Fund's total return for the year ended December 31, 2015. Had the Fund not received class action proceeds in 2013, total return based on per share NAV for the year ended December 31, 2013 would have been 36.88% and 36.56% for Class I and Class S, respectively.
* Not annualized.
# 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. Management did not reimburse or waive fees during the fiscal periods shown for Class I.
** Annualized.
ß Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in these ratios on a non-annualized basis. Had the Funds not received the refund the annualized ratios of net expenses to average net assets and net investment income/(loss) to average net assets would have been:
| | | Ratio of Net
Expenses to
Average Net
Assets
Six Months
Ended
June 30, 2017 | | Ratio of Net
Investment
Income/(Loss)
to Average
Net Assets
Six Months
Ended
June 30, 2017 | |
Class I | | | 1.02 | % | | | 0.78 | % | |
Class S | | | 1.25 | % | | | 0.55 | % | |
Ø Prior to January 1, 2013, the Fund had an expense offset arrangement in connection with its custodian contract. The impact of expense reductions related to expense offset arrangements, if any, was less than 0.01%.
‡ The Custodian Out-of-Pocket Expenses Refund listed in Note F of the Notes to Financial Statements had no impact on the Fund's total return for the six months ended June 30, 2017.
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 800-877-9700 (toll-free) and on the Securities and Exchange Commission's website 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 upon request, without charge, by calling 800-877-9700 (toll-free), on the Securities and Exchange Commission's website 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 800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 800-877-9700 (toll free).
22
Neuberger Berman
Advisers Management Trust
Short Duration Bond Portfolio
I Class Shares
Semi-Annual Report
June 30, 2017
Short Duration Bond Portfolio Commentary
The Neuberger Berman Advisers Management Trust Short Duration Bond Portfolio Class I posted a 0.86% total return for the six months ended June 30, 2017, outperforming its benchmark, the Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index (Index), which returned 0.72% for the same period.
The U.S. Treasury yield curve flattened during the reporting period, as short-term rates moved higher and longer-term rates declined. Short-term rates rose against a backdrop of the U.S. Federal Reserve (Fed) interest rate hikes in March and June 2017. In addition, the Fed indicated that it would begin reducing its holdings in mortgage-backed securities and agency debt later in the year. Meanwhile, longer-term rates declined as certain economic data moderated and questions arose whether the Trump administration's growth initiatives would be delayed or scaled back. For the six months ended June 30, 2017, the yield on the two-year U.S. Treasury Note moved 18 basis points (bps) higher, whereas the 10-year U.S Treasury Bond yield declined 14 bps. The spread sectors (non-Treasury securities) largely generated positive, albeit modest, returns during the reporting period.
The primary contributor to the Fund's performance during the reporting period was its significant overweight to investment grade corporate bonds. Their spreads narrowed against a backdrop of generally strong corporate earnings and solid investor demand. An out-of-benchmark allocation to asset-backed securities (ABS) was also a meaningful contributor to performance. The Fund's overweight to commercial mortgage-backed securities was also additive for results. Elsewhere, the Fund maintained a defensive duration position relative to the Index, with an underweight to the shorter end of the yield curve. This positioning was beneficial as short-term rates rose amid the Fed's interest rate hikes. Detracting from performance was the Fund's underweight to agency debt.
The Fund maintained an overweight to the spread sectors and an underweight to Treasuries during the reporting period. However, several adjustments were made to the Fund, including increasing its overweight to investment grade corporate bonds. This was funded by reducing its allocations to Treasuries and non-agency mortgage-backed securities. The Fund also reinvested ABS paydowns into investment grade corporate bonds.
Looking ahead, we anticipate the U.S. economy to continue improving, albeit at a relatively modest pace. Turning to the Fed, we believe there could be one additional interest rate hike in 2017. The Fed has also indicated that it intends to begin reducing its sizable balance sheet later this year. While this could potentially trigger some volatility, we do not anticipate it to dramatically impact the market, as the Fed has telegraphed this policy change and capped the amount it plans to reduce its balance sheet on a monthly basis. As in the past, we would view periods of volatility as opportunities to selectively purchase securities that we think are attractively valued, as well as manage the Fund's duration and yield curve positioning.
Sincerely,
THOMAS SONTAG, MICHAEL FOSTER AND MATTHEW MCGINNIS
PORTFOLIO MANAGERS
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund's portfolio managers. The opinions are as of the date of this report, and are subject to change without notice.
1
Short Duration Bond Portfolio
PORTFOLIO BY TYPE OF SECURITY
(as a % of Total Net Assets) | |
Asset-Backed Securities | | | 13.7 | % | |
Corporate Bonds | | | 46.8 | | |
Mortgage-Backed Securities | | | 29.3 | | |
U.S. Treasury Obligations | | | 8.0 | | |
Short-Term Investment | | | 2.9 | | |
Other Assets Less Liabilities | | | (0.7 | )* | |
Total | | | 100.0 | % | |
* Percentage includes appreciation/depreciation from derivatives, if any.
PERFORMANCE HIGHLIGHTS
| | Inception | | Six Month
Period Ended | | Average Annual Total Return
Ended 06/30/2017 | |
| | Date | | 06/30/2017 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund | |
Short Duration
Bond Portfolio
Class I | | 09/10/1984 | | | 0.86 | % | | | 0.84 | % | | | 1.07 | % | | | 1.42 | % | | | 4.85 | % | |
Bloomberg
Barclays 1-3 Year | | | | | | | | | | | | | |
U.S. Government/ | | | | | | | | | | | | | |
Credit Bond | | | | | | | | | | | | | |
| Index1,2 | | | | | 0.72 | % | | | 0.35 | % | | | 0.95 | % | | | 2.30 | % | | | 5.44 | % | |
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 http://www.nb.com/amtportfolios/performance.
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 Fund distributions or on the redemption of Fund 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 Fund.
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 Investment Advisers 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.
For the period ended June 30, 2017, the 30-day SEC yield was 0.92% for Class I shares.
As stated in the Fund's most recent prospectus, the total annual operating expense ratio for fiscal year 2016 was 0.88% for Class I shares (before expense reimbursements and/ or fee waivers, if any). The expense ratios for the semi-annual period ended June 30, 2017 can be found in the Financial Highlights section of this report.
2
1 The date used to calculate Life of Fund performance for the index is September 10, 1984, the Fund's commencement of operations.
2 The Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index is the 1-3 year component of the Barclays U.S. Government/Credit Index. The Bloomberg Barclays U.S. Government/Credit Index is the non-securitized component of the Bloomberg Barclays U.S. Aggregate Bond Index and includes Treasuries and government-related (agency, sovereign, supranational, and local authority debt) and corporate securities. On August 24, 2016, Bloomberg acquired the Barclays fixed income benchmark indices from Barclays. Barclays and Bloomberg have agreed to co-brand the indices as the Bloomberg Barclays Indices for an initial term of five years. For more information, please visit www.bloombergindices.com/. Please note that the indices described in this report 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 are prepared or obtained by Neuberger Berman Investment Advisers LLC* ("Management") and reflect the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and generally does not invest in all securities included in a described index.
* On January 1, 2016, Neuberger Berman Management LLC ("NBM") transferred to Neuberger Berman Fixed Income LLC ("NBFI") its rights and obligations pertaining to all services it provided to the Fund under any investment management, investment sub-advisory, and/or administration agreement, as applicable (the "Agreements"). Following such transfer, NBFI was renamed Neuberger Berman Investment Advisers LLC ("NBIA" or "Management"). Following the consolidation, the investment professionals of NBM who provided services to the Fund under the Agreements continue to provide the same services, except that they provide those services in their new capacities as investment professionals of NBIA. Further, the consolidation did not result in any change in the investment processes employed by the Fund, the nature or level of services provided to the Fund, or the fees the Fund pays under its Agreements.
On July 1, 2016, NBM was reorganized into Neuberger Berman LLC ("Neuberger Berman") (the "Reorganization"). Upon the completion of the Reorganization, Neuberger Berman assumed all rights and obligations pertaining to all services NBM provided to the Fund under any distribution agreement or distribution and services agreement (the "Agreements") or plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, (the "Plans"). Accordingly, after the Reorganization, Neuberger Berman became the Fund's distributor and the services previously provided by NBM under the Agreements and Plans are provided by Neuberger Berman.
Following the Reorganization, the employees of NBM provide the same services to the Fund under the Agreements and Plans, except that they provide those services in their capacities as employees of Neuberger Berman. Further, the Reorganization did not result in any change in the nature or level of services provided to the Fund, or the fees, if any, the Fund pays under the Agreements or the Plans.
On January 1, 2017, the Fund's distributor, Neuberger Berman, changed its name to Neuberger Berman BD LLC.
The investments for the Fund are managed by the same portfolio manager(s) who manage(s) one or more other registered funds that have names, investment objectives and investment styles that are similar to those of the Fund. You should be aware that the Fund is likely to differ from those other mutual fund(s) in size, cash flow pattern and tax matters. Accordingly, the holdings and performance of the Fund can be expected to vary from those of the other mutual fund(s).
Shares of the separate Neuberger Berman Advisers Management Trust Portfolios, including the Fund, are not available to the general public. Shares of the Fund may be purchased only by life insurance companies to be held in their separate accounts, which 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 Fund. This report is prepared for the general information of shareholders and is not an offer of shares of the Fund. Shares are sold only through the currently effective prospectus, which must precede or accompany this report.
The "Neuberger Berman" name and logo and "Neuberger Berman Investment Advisers LLC" are registered service marks of Neuberger Berman Group LLC. The individual Fund name in this piece is either a service mark or registered service mark of Neuberger Berman Investment Advisers LLC , an affiliate of Neuberger Berman BD LLC, distributor, member FINRA.
© 2017 Neuberger Berman BD 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 U.S. 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, 2017 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 indicated. 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.
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SHORT DURATION BOND PORTFOLIO
Actual | | Beginning Account
Value
1/1/17 | | Ending Account
Value
6/30/17 | | Expenses Paid During
the Period
1/1/17 – 6/30/17 | |
Class I | | $ | 1,000.00 | | | $ | 1,008.60 | | | $ | 3.78 | *^ | |
Hypothetical (5% annual return before expenses) | |
Class I | | $ | 1,000.00 | | | $ | 1,021.03 | | | $ | 3.81 | **^ | |
* Expenses are equal to the annualized expense ratio of 0.76%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in this ratio on a non-annualized basis.
** Hypothetical expenses are equal to the annualized expense ratio of 0.76%, multiplied by the average account value over the period (assuming a 5% annual return), multiplied by 181/365 (to reflect the one-half year period shown). Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in this ratio on a non-annualized basis.
^ Had the Fund not received the Custodian Out-of-Pocket Expenses Refunded (see Note F of Notes to Financial Statements), the expense ratio would have been 0.87%.
4
Schedule of Investments Short Duration Bond Portfolio (Unaudited)
June 30, 2017
U.S. Treasury Obligations 8.0% | | | |
| | | | | U.S. Treasury Notes | | | | | |
$ | 1,435,000 | | | 1.00%, due 11/15/19 | | $ | 1,419,865 | | |
| | 70,000 | | | 1.63%, due 3/15/20 | | | 70,216 | | |
| | 9,445,000 | | | 1.50%, due 4/15/20 & 6/15/20 | | | 9,435,989 | | |
| | | | | Total U.S. Treasury Obligations (Cost $10,957,758) | | | 10,926,070 | | |
Mortgage-Backed Securities 29.3% | | | |
Adjustable Mixed Balance 0.7% | | | |
| | 259,187 | | | Harborview Mortgage Loan Trust, Ser. 2004-4, Class 3A, 2.18%, due 6/19/34 | | | 251,032 | (a) | |
| | 736,132 | | | Merrill Lynch Mortgage Investors Trust, Ser. 2005-A1, Class 2A1, 3.07%, due 12/25/34 | | | 750,162 | (a) | |
| | | | 1,001,194 | | |
Commercial Mortgage-Backed 20.8% | | | |
| | 1,150,198 | | | BBCMS Mortgage Trust, Ser. 2017-C1, Class A1, 2.01%, due 2/15/50 | | | 1,148,903 | | |
| | 785,648 | | | CD Mortgage Trust, Ser. 2017-CD3, Class A1, 1.97%, due 2/10/50 | | | 783,951 | | |
| | | | | Citigroup Commercial Mortgage Trust | | | | | |
| | 5,889 | | | Ser. 2013-GC15, Class A1, 1.38%, due 9/10/46 | | | 5,887 | | |
| | 2,030,873 | | | Ser. 2016-P6, Class A1, 1.88%, due 12/10/49 | | | 2,022,898 | | |
| | | | | Commercial Mortgage Pass-Through Certificates | | | | | |
| | 2,437,917 | | | Ser. 2014-LC15, Class A1, 1.26%, due 4/10/47 | | | 2,430,008 | | |
| | 491,335 | | | Ser. 2014-CR16, Class A1, 1.45%, due 4/10/47 | | | 490,431 | | |
| | 1,110,240 | | | Ser. 2014-UBS3, Class A1, 1.40%, due 6/10/47 | | | 1,108,036 | | |
| | 1,072,263 | | | Ser. 2014-UBS4, Class A1, 1.31%, due 8/10/47 | | | 1,068,932 | | |
| | 212,212 | | | Ser. 2014-UBS5, Class A1, 1.37%, due 9/10/47 | | | 212,082 | | |
| | 977,354 | | | Ser. 2015-CR25, Class A1, 1.74%, due 8/10/48 | | | 975,580 | | |
| | 1,047,505 | | | Ser. 2016-CR28, Class A1, 1.77%, due 2/10/49 | | | 1,046,385 | | |
| | 1,306,896 | | | Ser. 2015-PC1, Class A1, 1.67%, due 7/10/50 | | | 1,306,474 | | |
| | 1,542,926 | | | DBJPM Mortgage Trust, Ser. 2016-C3, Class A1, 1.50%, due 9/10/49 | | | 1,527,412 | | |
| | 650,330 | | | GS Mortgage Securities Trust, Ser. 2015-GS1, Class A1, 1.94%, due 11/10/48 | | | 650,712 | | |
| | 1,000,000 | | | Ladder Capital Commercial Mortgage Securities LLC, Ser. 2017-LC26, Class A1, | | | 998,033 | (b) | |
| | | | | 1.98%, due 7/12/50 | | | | | |
| | | | | Morgan Stanley Bank of America Merrill Lynch Trust | | | | | |
| | 1,537,458 | | | Ser. 2016-C28, Class A1, 1.53%, due 1/15/49 | | | 1,522,291 | | |
| | 1,485,968 | | | Ser. 2017-C33, Class A1, 2.03%, due 5/15/50 | | | 1,487,348 | | |
| | 1,291,240 | | | SG Commercial Mortgage Securities Trust, Ser. 2016-C5, Class A1, 1.35%, due 10/10/48 | | | 1,275,489 | | |
| | | | | Wells Fargo Commercial Mortgage Trust | | | | | |
| | 645,946 | | | Ser. 2015-P2, Class A1, 1.97%, due 12/15/48 | | | 646,855 | | |
| | 1,899,764 | | | Ser. 2016-NXS6, Class A1, 1.42%, due 11/15/49 | | | 1,878,015 | | |
| | 2,162,393 | | | Ser. 2016-NXS5, Class A1, 1.56%, due 1/15/59 | | | 2,151,481 | | |
| | 1,520,461 | | | Ser. 2016-C32, Class A1, 1.58%, due 1/15/59 | | | 1,512,450 | | |
| | 2,031,712 | | | WF-RBS Commercial Mortgage Trust, Ser. 2014-C21, Class A1, 1.41%, due 8/15/47 | | | 2,024,612 | | |
| | | | 28,274,265 | | |
Fannie Mae 4.6% | | | |
| | | | | Pass-Through Certificates | | | | | |
| | 1,089,234 | | | 3.50%, due 10/1/25 | | | 1,133,893 | | |
| | 2,278,296 | | | 3.00%, due 9/1/27 | | | 2,344,637 | | |
| | 2,536,180 | | | 4.50%, due 5/1/41 – 5/1/44 | | | 2,735,828 | | |
| | | | 6,214,358 | | |
See Notes to Financial Statements
5
Schedule of Investments Short Duration Bond Portfolio (Unaudited)
(cont'd)
PRINCIPAL AMOUNT | | | | VALUE | |
Freddie Mac 3.2% | | | |
| | | | | Pass-Through Certificates | | | | | |
$ | 1,227,185 | | | 3.50%, due 5/1/26 | | $ | 1,278,878 | | |
| | 1,624,780 | | | 3.00%, due 1/1/27 | | | 1,669,571 | | |
| | 1,276,605 | | | 4.50%, due 11/1/39 | | | 1,372,066 | | |
| | | | 4,320,515 | | |
| | | | | Total Mortgage-Backed Securities (Cost $39,960,893) | | | 39,810,332 | | |
Corporate Bonds 46.8% | | | |
Aerospace & Defense 0.5% | | | |
| | 665,000 | | | Rockwell Collins, Inc., 1.95%, due 7/15/19 | | | 666,003 | | |
Auto Manufacturers 4.3% | | | |
| | 885,000 | | | Daimler Finance N.A. LLC, 1.50%, due 7/5/19 | | | 876,608 | (b) | |
| | 2,000,000 | | | Ford Motor Credit Co. LLC, 2.02%, due 5/3/19 | | | 1,996,974 | | |
| | 2,035,000 | | | General Motors Financial Co., Inc., 2.40%, due 5/9/19 | | | 2,040,519 | | |
| | 915,000 | | | Toyota Motor Credit Corp., 1.95%, due 4/17/20 | | | 914,650 | | |
| | | | 5,828,751 | | |
Banks 15.8% | | | |
| | | | | Bank of America Corp. | | | | | |
| | 2,600,000 | | | 2.00%, due 1/11/18 | | | 2,604,004 | | |
| | 620,000 | | | Ser. L, 2.60%, due 1/15/19 | | | 625,858 | | |
| | 1,125,000 | | | Capital One Financial Corp., 2.50%, due 5/12/20 | | | 1,129,792 | | |
| | 1,125,000 | | | Capital One N.A., 2.35%, due 8/17/18 | | | 1,129,551 | | |
| | 1,985,000 | | | Citigroup, Inc., 2.05%, due 6/7/19 | | | 1,986,360 | | |
| | 2,240,000 | | | Goldman Sachs Group, Inc., 2.90%, due 7/19/18 | | | 2,265,464 | | |
| | 2,180,000 | | | JPMorgan Chase & Co., 2.25%, due 1/23/20 | | | 2,186,618 | | |
| | 2,545,000 | | | Morgan Stanley, 2.45%, due 2/1/19 | | | 2,562,079 | | |
| | 605,000 | | | MUFG Americas Holdings Corp., 1.63%, due 2/9/18 | | | 604,946 | | |
| | 1,985,000 | | | National Australia Bank Ltd., 1.38%, due 7/12/19 | | | 1,961,811 | | |
| | 1,550,000 | | | Wells Fargo & Co., 2.15%, due 1/30/20 | | | 1,555,645 | | |
| | 2,795,000 | | | Westpac Banking Corp., 2.15%, due 3/6/20 | | | 2,800,269 | | |
| | | | 21,412,397 | | |
Beverages 2.9% | | | |
| | 2,115,000 | | | Anheuser-Busch InBev Finance, Inc., 1.90%, due 2/1/19 | | | 2,119,799 | | |
| | 1,770,000 | | | Anheuser-Busch InBev Worldwide, Inc., 1.38%, due 7/15/17 | | | 1,769,848 | | |
| | | | 3,889,647 | | |
Commercial Services 1.3% | | | |
| | 1,675,000 | | | ERAC USA Finance LLC, 6.38%, due 10/15/17 | | | 1,696,681 | (b) | |
Computers 3.1% | | | |
| | 1,510,000 | | | Apple, Inc., 1.55%, due 2/8/19 | | | 1,509,611 | | |
| | 800,000 | | | Diamond 1 Finance Corp./Diamond 2 Finance Corp., 3.48%, due 6/1/19 | | | 818,732 | (b) | |
| | | | | HP Enterprise Co. | | | | | |
| | 472,000 | | | 2.45%, due 10/5/17 | | | 473,246 | | |
| | 1,320,000 | | | 2.85%, due 10/5/18 | | | 1,331,328 | | |
| | | | 4,132,917 | | |
See Notes to Financial Statements
6
Schedule of Investments Short Duration Bond Portfolio (Unaudited)
(cont'd)
PRINCIPAL AMOUNT | | | | VALUE | |
Diversified Financial Services 0.6% | | | |
$ | 850,000 | | | AIG Global Funding, 2.15%, due 7/2/20 | | $ | 849,328 | (b)(c)(d) | |
Electric 1.3% | | | |
| | 865,000 | | | Dominion Energy, Inc., 2.58%, due 7/1/20 | | | 869,401 | | |
| | 500,000 | | | Dominion Resources, Inc., Ser. B , 1.60%, due 8/15/19 | | | 495,787 | | |
| | 370,000 | | | Southern Co., 1.55%, due 7/1/18 | | | 369,034 | | |
| | | | 1,734,222 | | |
Food 0.7% | | | |
| | 995,000 | | | Tyson Foods, Inc., 1.65%, due 5/30/19 | | | 997,183 | (a) | |
Household Products—Wares 0.9% | | | |
| | 1,250,000 | | | Reckitt Benckiser Treasury Services PLC, 2.13%, due 9/21/18 | | | 1,255,131 | (b) | |
Machinery—Construction & Mining 1.1% | | | |
| | 1,540,000 | | | Caterpillar Financial Services Corp., 2.10%, due 1/10/20 | | | 1,550,129 | | |
Media 0.3% | | | |
| | 415,000 | | | Thomson Reuters Corp., 1.65%, due 9/29/17 | | | 415,097 | | |
Miscellaneous Manufacturer 1.1% | | | |
| | 1,420,000 | | | Siemens Financieringsmaatschappij NV, 1.59%, due 3/16/20 | | | 1,423,429 | (a)(b) | |
Oil & Gas 1.7% | | | |
| | | | | BP Capital Markets PLC | | | | | |
| | 805,000 | | | 1.68%, due 5/3/19 | | | 802,322 | | |
| | 1,515,000 | | | 2.52%, due 1/15/20 | | | 1,535,996 | | |
| | | | 2,338,318 | | |
Pharmaceuticals 1.9% | | | |
| | 555,000 | | | AbbVie, Inc., 1.80%, due 5/14/18 | | | 555,706 | | |
| | 900,000 | | | Mylan NV, 2.50%, due 6/7/19 | | | 907,226 | | |
| | 1,080,000 | | | Shire Acquisitions Investments Ireland DAC, 1.90%, due 9/23/19 | | | 1,075,033 | | |
| | | | 2,537,965 | | |
Pipelines 1.4% | | | |
| | | | | Enterprise Products Operating LLC | | | | | |
| | 390,000 | | | 1.65%, due 5/7/18 | | | 389,676 | | |
| | 1,525,000 | | | 2.55%, due 10/15/19 | | | 1,538,236 | | |
| | | | 1,927,912 | | |
Real Estate Investment Trusts 1.4% | | | |
| | 1,945,000 | | | Simon Property Group LP, 1.50%, due 2/1/18 | | | 1,943,568 | (b) | |
Retail 1.5% | | | |
| | 2,065,000 | | | CVS Health Corp., 1.90%, due 7/20/18 | | | 2,070,385 | | |
Semiconductors 0.3% | | | |
| | 455,000 | | | QUALCOMM, Inc., 2.10%, due 5/20/20 | | | 457,062 | | |
See Notes to Financial Statements
7
Schedule of Investments Short Duration Bond Portfolio (Unaudited)
(cont'd)
PRINCIPAL AMOUNT | | | | VALUE | |
Telecommunications 4.7% | | | |
| | | | | AT&T, Inc. | | | | | |
$ | 1,860,000 | | | 1.40%, due 12/1/17 | | $ | 1,858,479 | | |
| | 1,250,000 | | | 2.30%, due 3/11/19 | | | 1,257,457 | | |
| | | | | Verizon Communications, Inc. | | | | | |
| | 1,250,000 | | | 3.65%, due 9/14/18 | | | 1,277,732 | | |
| | 2,040,000 | | | 1.38%, due 8/15/19 | | | 2,021,985 | | |
| | | | 6,415,653 | | |
| | | | | Total Corporate Bonds (Cost $63,469,836) | | | 63,541,778 | | |
Asset-Backed Securities 13.7% | | | |
| | 1,273,510 | | | Ally Auto Receivables Trust, Ser. 2014-2, Class A3, 1.25%, due 4/15/19 | | | 1,273,150 | | |
| | 800,000 | | | Bank of America Credit Card Trust, Ser. 2017-A1, Class A1, 1.95%, due 8/15/22 | | | 802,644 | | |
| | 2,800,000 | | | Capital One Multi-Asset Execution Trust, Ser. 2016-A3, Class A3, 1.34%, due 4/15/22 | | | 2,778,816 | | |
| | 4,200,000 | | | Chase Issuance Trust, Ser. 2016-A5, Class A5, 1.27%, due 7/15/21 | | | 4,161,721 | | |
| | | | | Citibank Credit Card Issuance Trust | | | | | |
| | 1,870,000 | | | Ser. 2016-A1, Class A1, 1.75%, due 11/19/21 | | | 1,868,342 | | |
| | 1,400,000 | | | Ser. 2017-A3, Class A3, 1.92%, due 4/7/22 | | | 1,401,486 | | |
| | 597,865 | | | Fannie Mae Grantor Trust, Ser. 2003-T4, Class 1A, 1.25%, due 9/26/33 | | | 594,451 | (a) | |
| | 1,400,000 | | | Ford Credit Auto Owner Trust, Ser. 2017-A, Class A3, 1.67%, due 6/15/21 | | | 1,398,954 | | |
| | 991,420 | | | Honda Auto Receivables Owner Trust, Ser. 2015-2, Class A3, 1.04%, due 2/21/19 | | | 990,055 | | |
| | 904,352 | | | SLM Student Loan Trust, Ser. 2013-2, Class A, 1.67%, due 6/25/43 | | | 901,252 | (a) | |
| | 1,011,265 | | | Toyota Auto Receivables Owner Trust, Ser. 2015-A, Class A3, 1.12%, due 2/15/19 | | | 1,010,257 | | |
| | 1,425,000 | | | Verizon Owner Trust, Ser. 2016-1A, Class A, 1.42%, due 1/20/21 | | | 1,417,943 | (b) | |
| | | | | Total Asset-Backed Securities (Cost $18,585,165) | | | 18,599,071 | | |
NUMBER OF SHARES | |
Short-Term Investment 2.9% | | | |
Investment Company 2.9% | | | |
| 3,879,699 | | | State Street Institutional U.S. Government Money Market Fund Premier Class,
0.88% (Cost $3,879,699) | | | 3,879,699 | (e)(f) | |
| | | | | Total Investments 100.7% (Cost $136,853,351) | | | 136,756,950 | | |
| | | | | Other Assets Less Liabilities (0.7)% | | | (914,749 | )(g) | |
| | | | | Net Assets 100.0% | | $ | 135,842,201 | | |
(a) Variable or floating rate security. The interest rate shown was the current rate as of June 30, 2017 and changes periodically.
(b) Securities were purchased under Rule 144A of the Securities Act of 1933, as amended (the "1933 Act"), or are otherwise restricted and, unless registered under the 1933 Act or exempted from registration, may only be sold to qualified institutional investors or may have other restrictions on resale. At June 30, 2017, these securities amounted to $11,279,453 or 8.3% of net assets of the Fund. Securities denoted with (b) but without (e) have been deemed by the investment manager to be liquid.
(c) When-issued security. Total value of all such securities at June 30, 2017, amounted to approximately $849,328, which represents 0.6% of net assets of the Fund.
(d) Illiquid security.
(e) Represents 7-day effective yield as of June 30, 2017.
See Notes to Financial Statements
8
Schedule of Investments Short Duration Bond Portfolio (Unaudited)
(cont'd)
(f) All or a portion of this security is segregated in connection with obligations for when-issued securities and/or futures with a total value of $3,879,699.
(g) Includes the impact of the Fund's open positions in derivatives at June 30, 2017.
Derivative Instruments
Futures contracts ("futures")
At June 30, 2017, open positions in futures for the Fund were as follows:
Expiration | | Open Contracts | | Position | | Unrealized
Appreciation/
(Depreciation) | |
9/29/2017 | | 25 U.S. Treasury Note, 2 Year | | Long | | $ | (7,470 | ) | |
Total | | | | | | $ | (7,470 | ) | |
At June 30, 2017, the notional value of futures for the Fund was $5,402,734 for long positions. At June 30, 2017, the Fund had $11,550 deposited in a segregated account to cover margin requirements on open futures.
For the six months ended June 30, 2017, the average notional value of futures for the Fund was $5,474,594 for long positions.
The following is a summary, categorized by Level (see Note A of Notes to Financial Statements), of inputs used to value the Fund's investments as of June 30, 2017:
Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
Investments: | |
U.S. Treasury Obligations | | $ | — | | | $ | 10,926,070 | | | $ | — | | | $ | 10,926,070 | | |
| Mortgage-Backed Securities(a) | | | — | | | | 39,810,332 | | | | — | | | | 39,810,332 | | |
| Corporate Bonds(a) | | | — | | | | 63,541,778 | | | | — | | | | 63,541,778 | | |
Asset-Backed Securities | | | — | | | | 18,599,071 | | | | — | | | | 18,599,071 | | |
Short-Term Investment | | | — | | | | 3,879,699 | | | | — | | | | 3,879,699 | | |
Total Investments | | $ | — | | | $ | 136,756,950 | | | $ | — | | | $ | 136,756,950 | | |
(a) The Schedule of Investments provides information on the industry or sector categorization for the portfolio.
See Notes to Financial Statements
9
Schedule of Investments Short Duration Bond Portfolio (Unaudited)
(cont'd)
As of the six months ended June 30, 2017, no securities were transferred from one level (as of December 31, 2016) to another.
The following is a summary, categorized by Level (see Note A of Notes to Financial Statements), of inputs used to value the Fund's derivatives as of June 30, 2017:
Other Financial Instruments | | Level 1 | | Level 2 | | Level 3 | | Total | |
| Futures(a) | |
Liabilities | | $ | (7,470 | ) | | $ | — | | | $ | — | | | $ | (7,470 | ) | |
Total | | $ | (7,470 | ) | | $ | — | | | $ | — | | | $ | (7,470 | ) | |
(a) Futures are reported at the cumulative unrealized appreciation/(depreciation) of the instrument.
See Notes to Financial Statements
10
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust | |
| | | SHORT DURATION
BOND PORTFOLIO | |
| | June 30, 2017 | |
Assets | |
Investments in securities, at value* (Note A)—see Schedule of Investments: | |
Unaffiliated issuers | | $ | 136,756,950 | | |
Cash collateral segregated for futures contracts (Note A) | | | 11,550 | | |
Interest receivable | | | 532,731 | | |
Receivable for variation margin on futures contracts (Note A) | | | 5,411 | | |
Receivable for Fund shares sold | | | 48,149 | | |
Prepaid expenses and other assets | | | 5,591 | | |
Total Assets | | | 137,360,382 | | |
Liabilities | |
Payable to investment manager (Note B) | | | 28,027 | | |
Payable for securities purchased | | | 1,257,070 | | |
Payable for Fund shares redeemed | | | 78,946 | | |
Payable to administrator (Note B) | | | 44,843 | | |
Payable to trustees | | | 10,273 | | |
Accrued expenses and other payables | | | 99,022 | | |
Total Liabilities | | | 1,518,181 | | |
Net Assets | | $ | 135,842,201 | | |
Net Assets consist of: | |
Paid-in capital | | $ | 211,946,357 | | |
Undistributed net investment income/(loss) | | | 2,832,153 | | |
Accumulated net realized gains/(losses) on investments | | | (78,832,438 | ) | |
Net unrealized appreciation/(depreciation) in value of investments | | | (103,871 | ) | |
Net Assets | | $ | 135,842,201 | | |
Shares Outstanding ($.001 par value; unlimited shares authorized) | | | 12,805,356 | | |
Net Asset Value, offering and redemption price per share | | $ | 10.61 | | |
*Cost of Investments | | $ | 136,853,351 | | |
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, 2017 | |
Investment Income: | |
Income (Note A): | |
Interest income—unaffiliated issuers | | $ | 1,324,236 | | |
Expenses: | |
Investment management fees (Note B) | | | 173,587 | | |
Administration fees (Note B) | | | 277,740 | | |
Audit fees | | | 28,350 | | |
Custodian and accounting fees | | | 37,322 | | |
Insurance expense | | | 3,015 | | |
Legal fees | | | 40,102 | | |
Shareholder reports | | | 17,100 | | |
Trustees' fees and expenses | | | 21,551 | | |
Interest expense | | | 389 | | |
Miscellaneous | | | 2,181 | | |
Total expenses | | | 601,337 | | |
Custodian out-of-pocket expenses refunded (Note F) | | | (143,479 | ) | |
Total net expenses | | | 457,858 | | |
Net investment income/(loss) | | $ | 866,378 | | |
Realized and Unrealized Gain/(Loss) on Investments (Note A): | |
Net realized gain/(loss) on: | |
Sales of investment securities of unaffiliated issuers | | | (280,145 | ) | |
Futures contracts | | | 9,196 | | |
Change in net unrealized appreciation/(depreciation) in value of: | |
Unaffiliated investment securities | | | 584,240 | | |
Futures contracts | | | (3,358 | ) | |
Net gain/(loss) on investments | | | 309,933 | | |
Net increase/(decrease) in net assets resulting from operations | | $ | 1,176,311 | | |
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,
2017
(Unaudited) | | Year Ended
December 31,
2016 | |
Increase/(Decrease) in Net Assets: | |
From Operations (Note A): | |
Net investment income/(loss) | | $ | 866,378 | | | $ | 1,087,133 | | |
Net realized gain/(loss) on investments | | | (270,949 | ) | | | 902,001 | | |
Change in net unrealized appreciation/(depreciation) of investments | | | 580,882 | | | | (28,117 | ) | |
Net increase/(decrease) in net assets resulting from operations | | | 1,176,311 | | | | 1,961,017 | | |
Distributions to Shareholders From (Note A): | |
Net investment income | | | — | | | | (1,778,567 | ) | |
From Fund Share Transactions (Note D): | |
Proceeds from shares sold | | | 4,195,087 | | | | 32,335,688 | | |
Proceeds from reinvestment of dividends and distributions | | | — | | | | 1,778,567 | | |
Payments for shares redeemed | | | (12,530,351 | ) | | | (51,307,740 | ) | |
Net increase/(decrease) from Fund share transactions | | | (8,335,264 | ) | | | (17,193,485 | ) | |
Net Increase/(Decrease) in Net Assets | | | (7,158,953 | ) | | | (17,011,035 | ) | |
Net Assets: | |
Beginning of period | | | 143,001,154 | | | | 160,012,189 | | |
End of period | | $ | 135,842,201 | | | $ | 143,001,154 | | |
Undistributed net investment income/(loss) at end of period | | $ | 2,832,153 | | | $ | 1,965,775 | | |
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 an Amended and Restated Trust Instrument dated March 27, 2014. The Trust is currently comprised of eight separate operating series (each individually a "Fund," 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. Neuberger Berman Advisers Management Trust Short Duration Bond Portfolio (the "Fund") currently offers only Class I shares. The Trust's Board of Trustees (the "Board") may establish additional series or classes of shares without the approval of shareholders.
The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946 "Financial Services—Investment Companies."
The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires Neuberger Berman Investment Advisers LLC ("NBIA" or "Management") to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Shares of the Fund are not available to the general public and may be purchased only by life insurance companies to serve as an investment vehicle for premiums paid under their variable annuity and variable life insurance contracts and to certain qualified pension and other retirement plans.
2 Portfolio valuation: In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurement" ("ASC 820"), all investments held by the Fund are carried at the value that 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 observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3—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 or offer 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,
14
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 independent pricing services to value certain types of debt securities held by the Fund:
Corporate Bonds. Inputs used to value corporate debt securities generally include relative credit information, observed market movements, sector news, U.S. Treasury yield curve or relevant benchmark curve, 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 Obligations. 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.
The value of futures is determined by Management 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 non-exchange traded investment companies are valued using the respective 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, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not readily available, the security is valued using methods the Board has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Numerous factors may be considered when determining the fair value of a security based on Level 2 or Level 3 inputs, including available analyst, media or other reports, securities within the same industry with recent highly correlated performance, trading in futures or American Depositary Receipts ("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.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are normally translated into U.S. dollars using the exchange rate as of 4:00 p.m. Eastern Time, on days the NYSE is open for business 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 Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of the Fund to continue to qualify for treatment as a regulated investment company ("RIC") by complying with the requirements of the U.S. Internal Revenue Code applicable to RICs and to distribute substantially all of its
15
net investment income and net realized capital gains to its shareholders. To the extent the Fund distributes substantially all of its net investment income and net realized capital gains 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 tax years for which the applicable statutes of limitations have not yet expired. As of June 30, 2017, the Fund did not have any unrecognized tax positions.
At June 30, 2017, the cost of investments on a U.S. federal income tax basis was $136,990,993. Gross unrealized appreciation of investments was $296,773 and gross unrealized depreciation of investments was $530,816 resulting in net unrealized depreciation of $234,043 based on cost for U.S. federal income tax purposes.
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. The Fund may also utilize earnings and profits distributed to shareholders on redemption of their shares as a part of the dividends-paid deduction for income tax purposes.
As determined on December 31, 2016, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences are attributed to the tax treatment of: paydown gains and losses and amortization of bond premium. 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, 2016, the Fund recorded the following permanent reclassifications:
| Paid-in Capital | | Undistributed
Net Investment
Income/(Loss) | | Accumulated
Net Realized
Gains/(Losses)
on Investments | |
| $ | — | | | $ | 878,962 | | | $ | (878,962 | ) | |
The tax character of distributions paid during the years ended December 31, 2016 and December 31, 2015 was as follows:
Distributions Paid From: | |
Ordinary Income | | Total | |
| 2016 | | 2015 | | 2016 | | 2015 | |
| $ | 1,778,567 | | | $ | 2,479,442 | | | $ | 1,778,567 | | | $ | 2,479,442 | | |
As of December 31, 2016, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed
Ordinary
Income | | Undistributed
Long-Term
Capital Gain | | Unrealized
Appreciation/
(Depreciation) | | Loss
Carryforwards
and Deferrals | | Other
Temporary
Differences | | Total | |
| $ | 1,965,775 | | | $ | — | | | $ | (1,099,108 | ) | | $ | (78,147,134 | ) | | $ | — | | | $ | (77,280,467 | ) | |
The temporary differences between book basis and tax basis distributable earnings are primarily due to: amortization of bond premium and mark-to-market adjustments on futures.
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 Modernization Act of 2010 (the "Act") made changes to the capital loss carryforward rules allowing for RICs to carry forward capital losses
16
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, 2016, 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: | |
| 2017 | | 2018 | |
| $ | 45,541,698 | | | $ | 7,896,656 | | |
Post-Enactment (No Expiration Date) | |
| Long-Term | | Short-Term | |
| $ | 22,865,846 | | | $ | 1,842,934 | | |
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, are generally 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, if any, represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds within the complex of related investment companies. Expenses directly attributable to a Fund are charged to that Fund. 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 forgoes 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 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
17
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 Unaffiliated investment company securities and exchange-traded funds: The Fund may invest in shares of other registered investment companies, including exchange-traded funds ("ETFs"), within the limitations prescribed by the 1940 Act or pursuant to an exemptive order from the U.S. Securities and Exchange Commission ("SEC") that permits the Fund to invest in both affiliated and unaffiliated investment companies, including exchange-traded funds, in excess of the limits in Section 12(d)(1)(A) of the 1940 Act, as amended, subject to the terms and conditions of such order. Some ETFs seek to track the performance of a particular market index. These indices include both broad-based market indices and more narrowly-based indices, including those relating to particular sectors, markets, regions or industries. However, some ETFs have an actively-managed investment objective. ETF shares are traded like traditional equity securities on a national securities exchange or NASDAQ. A Fund will indirectly bear its proportionate share of any management fees and other expenses paid by such other investment companies, which will increase expenses and decrease returns.
12 Derivative instruments: The Fund's use of derivatives during the six months ended June 30, 2017, is described below. Please see the Schedule of Investments for the Fund's open position in derivatives at June 30, 2017. 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.
Futures contracts: During the six months ended June 30, 2017, the Fund used U.S. Treasury futures to manage the duration of the Fund.
At the time the Fund enters into a 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 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 futures contract fluctuates. Daily variation margin adjustments, arising from this "mark to market," are recorded by a Fund as unrealized gains or losses.
Although some futures 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 futures. When the contracts are closed, a 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 executed on regulated futures exchanges have minimal counterparty risk to a Fund because the exchange's clearinghouse assumes the position of the counterparty in each transaction. Thus, the Fund is exposed to risk only in connection with the clearinghouse and not in connection with the original counterparty to the transaction.
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.
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At June 30, 2017, the Fund had the following derivatives (which did not qualify as hedging instruments under ASC 815), grouped by primary risk exposure:
Liability Derivatives
Derivative Type | | Statement of
Assets and
Liabilities
Location | | Interest
Rate Risk | | Total | |
Futures | | Receivable/Payable
for variation margin on
futures contracts(a) | | $ | (7,470
| ) | | $ | (7,470
| ) | |
Total Value—Liabilities | | | | | | $ | (7,470 | ) | | $ | (7,470 | ) | |
(a) "Futures" reflects the cumulative unrealized appreciation/(depreciation) of futures as of June 30, 2017, which is reflected in the Statement of Assets and Liabilities under the caption "Net unrealized appreciation/(depreciation) in value of investments." The current day's variation margin as of June 30, 2017, if any, is reflected in the Statement of Assets and Liabilities under the caption "Receivable/Payable for variation margin on futures contracts."
The impact of the use of these derivative instruments on the Statement of Operations during the six months ended June 30, 2017, was as follows:
Realized Gain/(Loss)
| Derivative Type | | Statement of
Operations
Location | | Interest
Rate Risk | | Total | |
| Futures | | Net realized
gain/(loss) on:
futures contracts | | $ | 9,196
| | | $ | 9,196
| | |
Total Realized Gain/(Loss) | | | | $ | 9,196 | | | $ | 9,196 | | |
Change in Appreciation/(Depreciation)
Derivative Type | | Statement of
Operations
Location | | Interest
Rate Risk | | Total | |
| Futures | | Change in net unrealized
appreciation/(depreciation)
in value of: futures contracts | | $ | (3,358
| ) | | $ | (3,358
| ) | |
Total Change in Appreciation/(Depreciation) | | | | $ | (3,358 | ) | | $ | (3,358 | ) | |
The Fund adopted the provisions of Accounting Standards Update 2011-11 Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). ASU 2011-11 is intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. Pursuant to ASU 2011-11, an entity is required to disclose both gross and net information for assets and liabilities related to derivatives, repurchase and reverse repurchase agreements, and securities lending and securities borrowing transactions that are eligible for offset or subject to an enforceable master netting or similar agreement. At June 30, 2017, the Fund had no derivatives eligible for offset or subject to an enforceable master netting or similar agreement.
13 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers ("Officers") and trustees ("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.
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Note B—Investment Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:
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, 2017, the investment 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.
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.
Neuberger Berman BD LLC is the Fund's "principal underwriter" within the meaning of the 1940 Act. It acts as agent in arranging for the sale of the Fund's Class I shares without sales commission or other compensation and bears all advertising and promotion expenses incurred in the sale of those shares. The Board adopted a non-fee distribution plan for the Fund's Class I.
Management has contractually agreed to waive fees and/or reimburse the Fund so that the total annual operating expenses do not exceed the expense limitation as detailed in the following table. This undertaking excludes fees payable to Management, interest (commitment fees relating to borrowings are treated as interest for purposes of this exclusion), taxes, transaction costs, brokerage commissions, dividend and interest expenses relating to short sales, acquired fund fees and expenses and extraordinary expenses, if any; consequently, net expenses may exceed the contractual expense limitation. The Fund has agreed that it will repay Management for fees and expenses waived or reimbursed provided that repayment does not cause the annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were waived or reimbursed, or the expense limitation in place at the time the Fund repays Management, whichever is lower. Any such repayment must be made within three years after the year in which Management incurred the expense.
During the six months ended June 30, 2017, there was no repayment to Management under its contractual expense limitation.
At June 30, 2017, the Fund had no contingent liability to Management under its contractual expense limitation.
| | | | | | | Expenses Reimbursed in
Year Ending December 31, | |
| | | | | | | 2014 | | 2015 | | 2016 | | 2017 | |
| | | | | | | Subject to Repayment until December 31, | |
Class | | Contractual
Expense
Limitation(a) | | Expiration | | 2017 | | 2018 | | 2019 | | 2020 | |
Class I | | | 1.00 | % | | 12/31/20 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | |
(a) Expense limitation per annum of the respective Fund's average daily net assets.
Neuberger Berman Fixed Income LLC ("NBFI"), as the sub-adviser to the Fund, was retained by Management through December 31, 2015, 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. As a result of the entity consolidation described on page 3 of this Semi-Annual Report, the services previously provided by NBFI under the Sub-Advisory Agreement are now provided by NBIA as of January 1, 2016.
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Note C—Securities Transactions:
Cost of purchases and proceeds of sales and maturities of long-term securities (excluding futures) for the six months ended June 30, 2017 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 | |
| $ | 14,028,237 | | | $ | 39,241,801 | | | $ | 19,568,502 | | | $ | 42,135,497 | | |
Note D—Fund Share Transactions:
Share activity for the six months ended June 30, 2017 and for the year ended December 31, 2016 was as follows:
| | | For the Six Months
Ended June 30,
2017 | | For the Year Ended
December 31,
2016 | |
Shares Sold | | | 397,327 | | | | 3,059,430 | | |
Shares Issued on Reinvestment of Dividends and Distributions | | | — | | | | 168,745 | | |
Shares Redeemed | | | (1,185,454 | ) | | | (4,838,177 | ) | |
Total | | | (788,127 | ) | | | (1,610,002 | ) | |
Note E—Line of Credit:
At June 30, 2017, the Fund was a participant in a syndicated committed, unsecured $700,000,000 line of credit (the "Credit Facility"), to be used only for temporary or emergency purposes. Series of other investment companies managed by Management also participate in this line of credit on substantially the same terms except that some do not have access to the full amount of the Credit Facility. Interest is charged on borrowings under this Credit Facility at the highest of (a) a federal funds effective rate plus 1.00% per annum, (b) a Eurodollar rate for a one-month period plus 1.00% per annum, and (c) an overnight bank funding rate plus 1.00% per annum. The Credit Facility has an annual commitment fee of 0.15% per annum of the available line of credit, which is paid quarterly. The Fund has agreed to pay its pro rata share of the annual commitment fee, 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 and the level of its access to the Credit Facility, and interest charged on any borrowing made by the Fund and other costs incurred by such Fund. Because several mutual funds participate in the Credit Facility, there is no assurance that an individual Fund will have access to all or any part of the $700,000,000 at any particular time. There were no loans outstanding under the Credit Facility at June 30 2017. During the period ended June 30, 2017, the Fund did not utilize the Credit Facility.
Note F—Custodian Out-of-Pocket Expenses Refunded:
In May 2016, the Fund's custodian, State Street, announced that it had identified inconsistencies in the way in which the Fund was invoiced for categories of expenses, particularly those deemed "out-of-pocket" costs, from 1998 through November 2015. The amounts in the table below represent the refunded expenses and interest determined to be payable to the Fund for the period in question. These amounts were refunded to the Fund by State Street during the period ended June 30, 2017.
Expenses
Refunded | | Interest Paid
to the Fund | |
| $ | 143,479 | | | $ | 15,861 | | |
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Note G—Recent Accounting Pronouncements:
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017 for reports with a period-end date after that date. Management is currently evaluating the impact, if any, that the adoption of the amendments to Regulation S-X will have on the Fund's financial statements and related disclosures.
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"). ASU 2017-08 shortens the amortization period to the earliest call date for certain purchased callable debt securities held at a premium. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the impact of applying this guidance.
Note H—Unaudited Financial Information:
The financial information included in this interim report is taken from the records of the Fund without audit by an independent registered public accounting firm. Annual reports contain audited financial statements.
22
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. Amounts that do not round to $0.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Ratios that do not round to 0.01% or (0.01)% are presented as 0.00% or (0.00)%, respectively. A "—" indicates that the line item was not applicable in the corresponding period.
Class I | |
| | | Six Months
Ended
June 30, | | Year Ended December 31, | |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| | | (Unaudited) | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | $ | 10.52 | | | $ | 10.52 | | | $ | 10.66 | | | $ | 10.78 | | | $ | 10.95 | | | $ | 10.79 | | |
Income From Investment Operations: | |
| Net Investment Income/(Loss)@ | | | 0.07 | | | | 0.07 | | | | 0.02 | | | | 0.07 | | | | 0.07 | | | | 0.13 | | |
Net Gains or Losses on Securities
(both realized and unrealized) | | | 0.02 | | | | 0.06 | | | | 0.00 | | | | 0.00 | | | | (0.00 | ) | | | 0.37 | | |
Total From Investment Operations | | | 0.09 | | | | 0.13 | | | | 0.02 | | | | 0.07 | | | | 0.07 | | | | 0.50 | | |
Less Distributions From: | |
Net Investment Income | | | — | | | | (0.13 | ) | | | (0.16 | ) | | | (0.19 | ) | | | (0.24 | ) | | | (0.34 | ) | |
Voluntary Contribution from Management | | | — | | | | — | | | | — | | | | 0.00 | | | | — | | | | — | | |
Net Asset Value, End of Period | | $ | 10.61 | | | $ | 10.52 | | | $ | 10.52 | | | $ | 10.66 | | | $ | 10.78 | | | $ | 10.95 | | |
| Total Return† | | | 0.86 | %*‡ | | | 1.22 | %^ | | | 0.18 | %^ | | | 0.61 | %µ | | | 0.62 | % | | | 4.61 | % | |
Ratios/Supplemental Data | |
Net Assets, End of Period (in millions) | | $ | 135.8 | | | $ | 143.0 | | | $ | 160.0 | | | $ | 184.6 | | | $ | 227.7 | | | $ | 226.6 | | |
Ratio of Gross Expenses to
Average Net Assets# | | | 0.87 | %** | | | 0.88 | % | | | 0.84 | % | | | 0.82 | % | | | 0.80 | % | | | 0.82 | % | |
Ratio of Net Expenses to
Average Net Assets | | | 0.76 | %**ß | | | 0.88 | % | | | 0.84 | % | | | 0.82 | % | | | 0.80 | % | | | 0.82 | %Ø | |
Ratio of Net Investment Income/(Loss)
to Average Net Assets | | | 1.13 | %**ß | | | 0.68 | % | | | 0.19 | % | | | 0.69 | % | | | 0.64 | % | | | 1.20 | % | |
Portfolio Turnover Rate | | | 40 | %* | | | 79 | % | | | 65 | % | | | 58 | % | | | 72 | % | | | 67 | % | |
See Notes to Financial Highlights
23
Notes to Financial Highlights Short Duration Bond Portfolio
(Unaudited)
@ Calculated based on the average number of shares outstanding during each fiscal period.
† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period. Returns assume 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 accounts or the related insurance policies or other qualified pension or retirement plans, and the inclusion of these charges and other expenses would reduce the total return for all fiscal periods shown.
* Not annualized.
^ Had the Fund not received the class action proceeds in 2016, total return based on per share NAV for the year ended December 31, 2016 would have been 0.64%. Had the Fund not received class action proceeds in 2015, total return based on per share NAV for the year ended December 31, 2015 would have been 0.09%.
µ The voluntary contribution received in 2014 had no impact on the Fund's total return for the year ended December 31, 2014.
# 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. Management did not reimburse or waive fees during the fiscal periods shown.
** Annualized.
ß Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in these ratios on a non-annualized basis. Had the Funds not received the refund the annualized ratios of net expenses to average net assets and net investment income/(loss) to average net assets would have been:
Ratio of Net
Expenses to
Average Net
Assets
Six Months
Ended
June 30, 2017 | | Ratio of Net
Investment
Income/(Loss)
to Average
Net Assets
Six Months
Ended
June 30, 2017 | |
| | 0.87 | % | | | 1.02 | % | |
Ø Prior to January 1, 2013, the Fund had an expense offset arrangement in connection with its custodian contract. The impact of expense reductions related to expense offset arrangements, if any, was less than 0.01%.
‡ Had the Fund not received the Custodian Out-of-Pocket Expenses Refunded listed in Note F of the Notes to Financial Statements, the total return would have been 0.76%.
24
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available, without charge, by calling 800-877-9700 (toll-free) and on the Securities and Exchange Commission's website, 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 upon request, without charge, by calling 800-877-9700 (toll-free), on the Securities and Exchange Commission's website 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 800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 800-877-9700 (toll free).
25
Neuberger Berman
Advisers Management Trust
Socially Responsive Portfolio
I Class Shares
S Class Shares
Semi-Annual Report
June 30, 2017
Socially Responsive Portfolio Commentary
The Neuberger Berman Advisers Management Trust Socially Responsive Portfolio Class I generated a total return of 9.35% for the six months ended June 30, 2017, outperforming the 9.34% return of its benchmark, the S&P 500® Index (Index), for the same period. (Performance for all share classes is provided in the table immediately following this letter.)
U.S. markets continued their upward trajectory this year, partially driven by ongoing expectations of potential tax reform, regulatory relief, and infrastructure spending. Returns have been narrow, with mega-capitalization stocks driving significant returns.
On the economic front, the U.S. economy continued on its slow growth path, allowing the U.S. Federal Reserve (Fed) to raise interest rates twice, in line with expectations—even though increased business and consumer confidence has not yet resulted in a pickup in economic growth. In the near term, we anticipate strong consumer balance sheets, moderate wage inflation, and energy price declines to have a favorable impact on consumer spending, and believe overall business and economic conditions are suggestive of a stable, slow growth U.S. economy, absent any external shock.
The Fund's outperformance was driven by stock selection, primarily within the Financials, Consumer Discretionary and Materials sectors. Unilever, Progressive Corp., and Delphi Automotive were among top contributors. Unilever benefited from investor focus following its rejection of an unsolicited acquisition offer. Progressive continued its positive growth trajectory, and so did Delphi, benefitting from the secular trend towards vehicle safety, electrification and fuel efficiency improvements in the auto industry. Energy, Information Technology and Industrials allocations were a drag on the Fund relative to the Index, with Kroger, Noble Energy, and W.W. Grainger among individual detractors. Kroger and W.W. Grainger lowered earnings guidance for the year. Investors attributed the cut in guidance primarily to the impact of Amazon's entry into the industrial distribution and grocery end-markets, resulting in an outsized reaction to these stocks and compressed valuation multiples. Noble underperformed largely due to energy price declines. The Fund continues to hold all three positions.
Looking ahead, we anticipate the slow, positive growth trend in the U.S. to continue, based on ongoing strength in consumer spending and a lack of visible excesses in the economy. Actions by the Fed are likely to result in gradually rising interest rates, but, in our view, rates should remain in a range that is still supportive of growth.
Our primary concerns continue to be geopolitical. Domestically, the new administration's ability to negotiate with Congress on the framework for trade, tax, healthcare and immigration policies continues to be a risk and a likely source of equity volatility.
Outside the U.S., geopolitical volatility, especially in the Middle East, ongoing tensions with Russia, and the continued uncertainty created by Brexit could likely be sources of market volatility. Further, China's continuing efforts to strike a balance toward sustainable long-term growth will likely continue to mask visibility into the true state of their markets.
The narrowness of the market, in our view, has created potential longer-term opportunity. We continue to buy into businesses we believe demonstrate advantaged growth potential at attractive valuations, and to trim positions in line with our portfolio discipline.
We believe the businesses we own can translate top-line growth into stronger, advantaged bottom-line growth in a variety of economic environments, supported by competitive advantages, attractive return on capital profiles, and demonstrated leadership practices in environmental, social and governance (ESG) practices. We believe the Fund's holdings also have the balance sheet strength and free cash flow generation that could enable them to weather some degree of global economic turmoil, should it occur.
Sincerely,
INGRID S. DYOTT AND SAJJAD S. LADIWALA
CO-PORTFOLIO MANAGERS
Information about principal risks of investing in the Fund is set forth in the prospectus and statement of additional information.
The portfolio composition, industries and holdings of the Fund are subject to change without notice.
The opinions expressed are those of the Fund's portfolio managers. The opinions are as of the date of this report, and are subject to change without notice.
1
Socially Responsive Portfolio
SECTOR ALLOCATION
(as a % of Total Investments*) | |
Consumer Discretionary | | | 13.9 | % | |
Consumer Staples | | | 5.8 | | |
Energy | | | 7.5 | | |
Financials | | | 15.9 | | |
Health Care | | | 15.7 | | |
Industrials | | | 11.1 | | |
Information Technology | | | 21.7 | | |
Materials | | | 2.6 | | |
Real Estate | | | 2.4 | | |
Telecommunication Services | |
Utilities | | | 1.5 | | |
Short-Term Investments | | | 1.9 | | |
Total | | | 100.0 | % | |
* Derivatives, if any, are excluded from this chart.
PERFORMANCE HIGHLIGHTS
| | | | Six Month | | Average Annual Total Return | |
| | Inception | | Period Ended | | Ended 06/30/2017 | |
| | Date | | 06/30/2017 | | 1 Year | | 5 Years | | 10 Years | | Life of Fund | |
Socially Responsive
Portfolio Class I | |
02/18/1999 | | | 9.35 | % | | | 18.53 | % | | | 14.23 | % | | | 6.44 | % | | | 7.13 | % | |
Socially Responsive
Portfolio Class S2 | |
05/01/2006 | | | 9.22 | % | | | 18.32 | % | | | 14.03 | % | | | 6.29 | % | | | 7.04 | % | |
| S&P 500® Index1,3 | | | | | 9.34 | % | | | 17.90 | % | | | 14.63 | % | | | 7.18 | % | | | 5.78 | % | |
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 http://www.nb.com/amtportfolios/performance.
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 Fund distributions or on the redemption of Fund 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 Fund.
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 Investment Advisers 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 Fund's most recent prospectus, the total annual operating expense ratios for fiscal year 2016 were 1.00% and 1.26% for Class I and Class S shares, respectively (before expense reimbursements and/or fee waivers, if any). The expense ratio was 1.18% for Class S shares after expense reimbursements and/or fee waivers. The expense ratios for the semi-annual period ended June 30, 2017 can be found in the Financial Highlights section of this report.
2
1 The date used to calculate Life of Fund performance for the index is February 18, 1999, the inception date of the oldest share class.
2 Performance shown prior to May 1, 2006 for Class S shares is that of Class I shares, which has lower expenses and correspondingly higher returns than Class S shares.
3 The S&P 500® Index is a float-adjusted market capitalization-weighted index that focuses on the large-cap segment of the U.S. equity market, and includes a significant portion of the total value of the market. Please note that the index described in this report does not take into account any fees, expenses or tax consequences of investing in the individual securities that it tracks, and that individuals cannot invest directly in any index. Data about the performance of an index are prepared or obtained by Neuberger Berman Investment Advisers LLC* ("Management") and reflect the reinvestment of income dividends and other distributions, if any. The Fund may invest in securities not included in a described index and generally does not invest in all securities included in a described index.
* On January 1, 2016, Neuberger Berman Management LLC ("NBM") transferred to Neuberger Berman Fixed Income LLC ("NBFI") its rights and obligations pertaining to all services it provided to any Fund under any investment management, investment sub-advisory, and/or administration agreement, as applicable (the "Agreements"). Following such transfer, NBFI was renamed Neuberger Berman Investment Advisers LLC ("NBIA" or "Management"). Following the consolidation, the investment professionals of NBM who provided services to the Fund under the Agreements continue to provide the same services, except that they provide those services in their new capacities as investment professionals of NBIA. Further, the consolidation did not result in any change in the investment processes employed by the Fund, the nature or level of services provided to the Fund, or the fees the Fund pays under its Agreements.
On July 1, 2016, NBM was reorganized into Neuberger Berman LLC ("Neuberger Berman") (the "Reorganization"). Upon the completion of the Reorganization, Neuberger Berman assumed all rights and obligations pertaining to all services NBM provided to the Fund under any distribution agreement or distribution and services agreement (the "Agreements") or plan adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, (the "Plans"). Accordingly, after the Reorganization, Neuberger Berman became the Fund's distributor and the services previously provided by NBM under the Agreements and Plans are provided by Neuberger Berman.
Following the Reorganization, the employees of NBM provide the same services to the Fund under the Agreements and Plans, except that they provide those services in their capacities as employees of Neuberger Berman. Further, the Reorganization did not result in any change in the nature or level of services provided to the Fund, or the fees, if any, the Fund pays under the Agreements or the Plans.
On January 1, 2017, the Fund's distributor, Neuberger Berman, changed its name to Neuberger Berman BD LLC.
The investments for the Fund are managed by the same portfolio manager(s) who manage(s) one or more other registered funds that have names, investment objectives and investment styles that are similar to those of the Fund. You should be aware that the Fund is likely to differ from those other mutual fund(s) in size, cash flow pattern and tax matters. Accordingly, the holdings and performance of the Fund can be expected to vary from those of the other mutual fund(s).
Shares of the separate Neuberger Berman Advisers Management Trust Portfolios, including the Fund, are not available to the general public. Shares of the Fund may be purchased only by life insurance companies to be held in their separate accounts, which 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 Fund. This report is prepared for the general information of shareholders and is not an offer of shares of the Fund. Shares are sold only through the currently effective prospectus, which must precede or accompany this report.
The "Neuberger Berman" name and logo and "Neuberger Berman Investment Advisers LLC" are registered service marks of Neuberger Berman Group LLC. The individual Fund name in this piece is either a service mark or registered service mark of Neuberger Berman Investment Advisers LLC , an affiliate of Neuberger Berman BD LLC, distributor, member FINRA.
© 2017 Neuberger Berman BD 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 U.S. 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, 2017 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 indicated. 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.
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO
Actual | | Beginning Account
Value 1/1/17 | | Ending Account
Value 6/30/17 | | Expenses Paid During
the Period
1/1/17 – 6/30/17 | | Expense
Ratio*** | |
Class I | | $ | 1,000.00 | | | $ | 1,093.50 | | | $ | 4.98 | * | | | 0.96 | % | |
Class S | | $ | 1,000.00 | | | $ | 1,092.20 | | | $ | 6.07 | * | | | 1.17 | % | |
Hypothetical (5% annual return before expenses) | |
Class I | | $ | 1,000.00 | | | $ | 1,020.03 | | | $ | 4.81 | ** | | | 0.96 | % | |
Class S | | $ | 1,000.00 | | | $ | 1,018.99 | | | $ | 5.86 | ** | | | 1.17 | % | |
* For each class, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical expenses are equal to the annualized expense ratios for each class, multiplied by the average account value over the period (assuming a 5% annual return), multiplied by 181/365 (to reflect the one-half year period shown).
*** Had the Fund not received the Custodian Out-of-Pocket Expenses Refunded (see Note F of Notes to Financial Statements), the expense ratio would have been 0.97% and 1.17% for Class I and Class S, respectively. Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in these ratios on a non-annualized basis.
4
Schedule of Investments Socially Responsive Portfolio (Unaudited) June 30, 2017
NUMBER OF SHARES | | | | VALUE | |
Common Stocks 98.1% | | | |
Airlines 2.6% | | | |
| | 107,232 | | | Ryanair Holdings PLC ADR | | $ | 11,539,235 | * | |
Auto Components 3.1% | | | |
| | 152,299 | | | Delphi Automotive PLC | | | 13,349,007 | | |
Banks 5.3% | | | |
| | 119,429 | | | JPMorgan Chase & Co. | | | 10,915,810 | | |
| | 232,601 | | | U.S. Bancorp | | | 12,076,644 | | |
| | | | 22,992,454 | | |
Capital Markets 3.3% | | | |
| 214,908 | | | Intercontinental
Exchange, Inc. | | | 14,166,735 | | |
Communications Equipment 3.2% | | | |
| | 80,351 | | | Motorola Solutions, Inc. | | | 6,969,646 | | |
| | 198,452 | | | NetScout Systems, Inc. | | | 6,826,749 | * | |
| | | | 13,796,395 | | |
Consumer Finance 2.6% | | | |
| | 134,784 | | | American Express Co. | | | 11,354,204 | | |
Electric Utilities 1.5% | | | |
| | 107,020 | | | Eversource Energy | | | 6,497,184 | | |
Energy Equipment & Services 2.1% | | | |
| | 136,384 | | | Schlumberger Ltd. | | | 8,979,523 | | |
Equity Real Estate Investment Trust 2.4% | | | |
| | 306,376 | | | Weyerhaeuser Co. | | | 10,263,596 | | |
Food & Staples Retailing 2.3% | | | |
| | 433,253 | | | Kroger Co. | | | 10,103,460 | | |
Health Care Equipment & Supplies 8.5% | | | |
| | 68,627 | | | Becton, Dickinson & Co. | | | 13,389,814 | | |
| | 150,095 | | | Danaher Corp. | | | 12,666,517 | | |
| | 124,465 | | | Medtronic PLC | | | 11,046,269 | | |
| | | | 37,102,600 | | |
Health Care Providers & Services 5.1% | | | |
| | 160,803 | | | AmerisourceBergen Corp. | | | 15,200,708 | | |
| | 200,557 | | | Premier, Inc. Class A | | | 7,220,052 | * | |
| | | | 22,420,760 | | |
NUMBER OF SHARES | | | | VALUE | |
Household Durables 4.0% | | | |
| | 327,929 | | | Newell Brands, Inc. | | $ | 17,583,553 | | |
Industrial Conglomerates 2.2% | | | |
| | 45,816 | | | 3M Co. | | | 9,538,433 | | |
Insurance 4.8% | | | |
| | 471,145 | | | Progressive Corp. | | | 20,772,783 | | |
Internet Software & Services 5.8% | | | |
| | 12,926 | | | Alphabet, Inc. Class A | | | 12,017,044 | * | |
| | 383,698 | | | eBay, Inc. | | | 13,398,734 | * | |
| | | | 25,415,778 | | |
IT Services 5.1% | | | |
| 182,675 | | | Cognizant Technology
Solutions Corp. Class A | | | 12,129,620 | | |
| | 82,902 | | | MasterCard, Inc. Class A | | | 10,068,448 | | |
| | | | 22,198,068 | | |
Media 3.6% | | | |
| | 399,393 | | | Comcast Corp. Class A | | | 15,544,376 | | |
Oil, Gas & Consumable Fuels 5.4% | | | |
| | 34,285 | | | Cimarex Energy Co. | | | 3,223,133 | | |
| | 184,603 | | | EQT Corp. | | | 10,815,890 | | |
| | 333,462 | | | Noble Energy, Inc. | | | 9,436,974 | | |
| | | | 23,475,997 | | |
Personal Products 3.5% | | | |
| | 274,834 | | | Unilever NV | | | 15,190,075 | | |
Pharmaceuticals 2.0% | | | |
| | 35,079 | | | Roche Holding AG | | | 8,933,457 | | |
Professional Services 1.6% | | | |
| | 62,066 | | | ManpowerGroup, Inc. | | | 6,929,669 | | |
Road & Rail 1.8% | | | |
| 85,890 | | | J.B. Hunt Transport
Services, Inc. | | | 7,848,628 | | |
Semiconductors & Semiconductor
Equipment 4.6% | | | |
| | 258,561 | | | Texas Instruments, Inc. | | | 19,891,098 | | |
Software 3.0% | | | |
| | 98,950 | | | Intuit, Inc. | | | 13,141,549 | | |
See Notes to Financial Statements
5
Schedule of Investments Socially Responsive Portfolio (Unaudited) (cont'd)
NUMBER OF SHARES | | | | VALUE | |
Specialty Chemicals 2.6% | | | |
| | 258,754 | | | Novozymes A/S B Shares | | $ | 11,323,357 | | |
Specialty Retail 1.8% | | | |
| | 68,040 | | | Advance Auto Parts, Inc. | | | 7,932,784 | | |
Textiles, Apparel & Luxury Goods 1.5% | | | |
| | 212,170 | | | Gildan Activewear, Inc. | | | 6,519,984 | | |
Trading Companies & Distributors 2.8% | | | |
| | 68,595 | | | W.W. Grainger, Inc. | | | 12,383,455 | | |
| | | | Total Common Stocks
(Cost $306,148,925) | | | 427,188,197 | | |
Short-Term Investments 1.9% | | | |
PRINCIPAL AMOUNT | | | | | |
| Certificates of Deposit 0.0%(a) | | | |
$ | 100,000 | | | Self Help Credit Union, | | | 100,000 | | |
| | | | | 0.25%, due 7/2/17 | | | | | |
| | 100,000 | | | Self Help Federal Credit | | | 100,000 | | |
| | | | | Union, 0.25%, due 7/29/17 | | | | | |
| | | | 200,000 | | |
NUMBER OF SHARES | | | | | |
Investment Company 1.9% | | | |
| 8,112,372 | | | State Street Institutional
Treasury Money Market Fund
Premier Class, 0.83% | | | 8,112,372 | (b) | |
| | | | Total Short-Term Investments
(Cost $8,312,372) | | | 8,312,372 | | |
| | | | Total Investments 100.0%
(Cost $314,461,297) | | | 435,500,569 | | |
| | | | | Other Assets Less Liabilities (0.0)%(a) | | | (37,460 | ) | |
| | | | | Net Assets 100.0% | | $ | 435,463,109 | | |
* Non-income producing security.
(a) Represents less than 0.05% of net assets.
(b) Represents 7-day effective yield as of June 30, 2017.
See Notes to Financial Statements
6
Schedule of Investments Socially Responsive Portfolio (Unaudited) (cont'd)
The following is a summary, categorized by Level (see Note A of Notes to Financial Statements), of inputs used to value the Fund's investments as of June 30, 2017:
Asset Valuation Inputs | | Level 1 | | Level 2 | | Level 3 | | Total | |
Investments: | |
| Common Stocks(a) | | $ | 427,188,197 | | | $ | — | | | $ | — | | | $ | 427,188,197 | | |
Short-Term Investments | | | — | | | | 8,312,372 | | | | — | | | | 8,312,372 | | |
Total Investments | | $ | 427,188,197 | | | $ | 8,312,372 | | | $ | — | | | $ | 435,500,569 | | |
(a) The Schedule of Investments provides information on the industry categorization for the portfolio.
As of the six months ended June 30, 2017, no securities were transferred from one level (as of December 31, 2016) to another.
See Notes to Financial Statements
7
Statement of Assets and Liabilities (Unaudited)
Neuberger Berman Advisers Management Trust
| | | SOCIALLY
RESPONSIVE
PORTFOLIO | |
| | | June 30, 2017 | |
Assets | |
Investments in securities, at value* (Note A)—see Schedule of Investments: | |
Unaffiliated issuers | | $ | 435,500,569 | | |
Dividends and interest receivable | | | 507,242 | | |
Receivable for Fund shares sold | | | 16,446 | | |
Prepaid expenses and other assets | | | 12,181 | | |
Total Assets | | | 436,036,438 | | |
Liabilities | |
Payable to investment manager (Note B) | | | 194,636 | | |
Payable for Fund shares redeemed | | | 61,400 | | |
Payable to administrator—net (Note B) | | | 125,102 | | |
Payable to trustees | | | 9,947 | | |
Accrued expenses and other payables | | | 182,244 | | |
Total Liabilities | | | 573,329 | | |
Net Assets | | $ | 435,463,109 | | |
Net Assets consist of: | |
Paid-in capital | | $ | 285,518,507 | | |
Undistributed net investment income/(loss) | | | 3,519,232 | | |
Accumulated net realized gains/(losses) on investments | | | 25,384,849 | | |
Net unrealized appreciation/(depreciation) in value of investments | | | 121,040,521 | | |
Net Assets | | $ | 435,463,109 | | |
Net Assets | |
Class I | | $ | 352,956,985 | | |
Class S | | | 82,506,124 | | |
Shares Outstanding ($.001 par value; unlimited shares authorized) | |
Class I | | | 14,301,962 | | |
Class S | | | 3,333,677 | | |
Net Asset Value, offering and redemption price per share | |
Class I | | $ | 24.68 | | |
Class S | | | 24.75 | | |
*Cost of Investments | | | $314,461,297 | | |
See Notes to Financial Statements
8
Statement of Operations (Unaudited)
Neuberger Berman Advisers Management Trust
| | | SOCIALLY
RESPONSIVE
PORTFOLIO | |
| | | For the
Six Months Ended
June 30, 2017 | |
Investment Income: | |
Income (Note A): | |
Dividend income—unaffiliated issuers | | $ | 3,524,721 | | |
Interest income—unaffiliated issuers | | | 23,310 | | |
Foreign taxes withheld (Note A) | | | (106,731 | ) | |
Total income | | $ | 3,441,300 | | |
Expenses: | |
Investment management fees (Note B) | | | 1,145,090 | | |
Administration fees (Note B): | |
Class I | | | 515,125 | | |
Class S | | | 121,502 | | |
Distribution fees (Note B): | |
Class S | | | 101,252 | | |
Audit fees | | | 23,088 | | |
Custodian and accounting fees | | | 61,114 | | |
Insurance expense | | | 6,745 | | |
Legal fees | | | 98,835 | | |
Shareholder reports | | | 61,638 | | |
Trustees' fees and expenses | | | 21,705 | | |
Interest expense | | | 7 | | |
Miscellaneous | | | 10,986 | | |
Total expenses | | | 2,167,087 | | |
Expenses reimbursed by Management (Note B) | | | (19,983 | ) | |
Custodian out-of-pocket expenses refunded (Note F) | | | (48,363 | ) | |
Total net expenses | | | 2,098,741 | | |
Net investment income/(loss) | | $ | 1,342,559 | | |
Realized and Unrealized Gain/(Loss) on Investments (Note A): | |
Net realized gain/(loss) on: | |
Sales of investment securities of unaffiliated issuers | | | 9,340,180 | | |
Foreign currency | | | (3,831 | ) | |
Change in net unrealized appreciation/(depreciation) in value of: | |
Unaffiliated investment securities | | | 26,981,080 | | |
Foreign currency | | | 16,995 | | |
Net gain/(loss) on investments | | | 36,334,424 | | |
Net increase/(decrease) in net assets resulting from operations | | $ | 37,676,983 | | |
See Notes to Financial Statements
9
Statements of Changes in Net Assets
Neuberger Berman Advisers Management Trust
| | | SOCIALLY RESPONSIVE PORTFOLIO | |
| | | Six Months Ended
June 30,
2017
(Unaudited) | | Year Ended
December 31,
2016 | |
Increase/(Decrease) in Net Assets: | |
From Operations (Note A): | |
Net investment income/(loss) | | $ | 1,342,559 | | | $ | 2,159,877 | | |
Net realized gain/(loss) on investments | | | 9,336,349 | | | | 16,771,457 | | |
Change in net unrealized appreciation/(depreciation) of investments | | | 26,998,075 | | | | 17,719,467 | | |
Net increase/(decrease) in net assets resulting from operations | | | 37,676,983 | | | | 36,650,801 | | |
Distributions to Shareholders From (Note A): | |
Net investment income: | |
Class I | | | — | | | | (2,189,849 | ) | |
Class S | | | — | | | | (369,048 | ) | |
Net realized gain on investments: | |
Class I | | | — | | | | (11,244,225 | ) | |
Class S | | | — | | | | (2,715,281 | ) | |
Total distributions to shareholders | | | — | | | | (16,518,403 | ) | |
From Fund Share Transactions (Note D): | |
Proceeds from shares sold: | |
Class I | | | 5,837,006 | | | | 12,634,893 | | |
Class S | | | 2,223,672 | | | | 7,310,759 | | |
Proceeds from reinvestment of dividends and distributions: | |
Class I | | | — | | | | 13,434,074 | | |
Class S | | | — | | | | 3,084,329 | | |
Payments for shares redeemed: | |
Class I | | | (12,491,333 | ) | | | (21,038,136 | ) | |
Class S | | | (5,031,119 | ) | | | (10,854,996 | ) | |
Net increase/(decrease) from Fund share transactions | | | (9,461,774 | ) | | | 4,570,923 | | |
Net Increase/(Decrease) in Net Assets | | | 28,215,209 | | | | 24,703,321 | | |
Net Assets: | |
Beginning of period | | | 407,247,900 | | | | 382,544,579 | | |
End of period | | $ | 435,463,109 | | | $ | 407,247,900 | | |
Undistributed net investment income/(loss) at end of period | | $ | 3,519,232 | | | $ | 2,176,673 | | |
See Notes to Financial Statements
10
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 an Amended and Restated Trust Instrument dated March 27, 2014. The Trust is currently comprised of eight separate operating series (each individually a "Fund," 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. Neuberger Berman Advisers Management Trust Socially Responsive Portfolio (the "Fund") currently offers Class I and Class S shares. The Trust's Board of Trustees (the "Board") may establish additional series or classes of shares without the approval of shareholders.
The assets of each Fund belong only to that Fund, and the liabilities of each Fund are borne solely by that Fund and no other.
The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 946 "Financial Services—Investment Companies."
The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires Neuberger Berman Investment Advisers LLC ("NBIA" or "Management") to make estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates.
Shares of the Fund are not available to the general public and may be purchased only by life insurance companies to serve as an investment vehicle for premiums paid under their variable annuity and variable life insurance contracts and to certain qualified pension and other retirement plans.
2 Portfolio valuation: In accordance with Accounting Standards Codification ("ASC") 820 "Fair Value Measurement" ("ASC 820"), all investments held by the Fund are carried at the value that 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 observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, amortized cost, etc.)
• Level 3—unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
The value of the Fund's investments in equity securities, for which market quotations are readily available, is generally determined by Management by obtaining valuations from independent pricing services 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 at the NASDAQ Official Closing Price ("NOCP")
11
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 sale of a security on a particular day, the independent pricing services may value the security based on 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 non-exchange traded investment companies are valued using the respective 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, Management seeks to obtain quotations from brokers or dealers (generally considered Level 2 or Level 3 inputs depending on the number of quotes available). If such quotations are not readily available, the security is valued using methods the Board has approved in the good-faith belief that the resulting valuation will reflect the fair value of the security. Numerous factors may be considered when determining the fair value of a security based on Level 2 or Level 3 inputs, including available analyst, media or other reports, securities within the same industry with recent highly correlated performance, trading in futures or American Depositary Receipts ("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 normally translated from the local currency into U.S. dollars using the exchange rates as of 4:00 p.m. Eastern Time on days the New York Stock Exchange ("NYSE") is open for business. The Board has approved the use of Interactive Data Pricing and Reference Data LLC ("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 time as of which a Fund's share price is calculated, 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.
3 Foreign currency translation: The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are normally translated into U.S. dollars using the exchange rate as of 4:00 p.m. Eastern Time, on days the NYSE is open for business 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.
12
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, 2017 was $19,838.
5 Income tax information: The Fund is treated as a separate entity for U.S. federal income tax purposes. It is the policy of the Fund to continue to qualify for treatment as a regulated investment company ("RIC") by complying with the requirements of the U.S. Internal Revenue Code applicable to RICs and to distribute substantially all of its net investment income and net realized capital gains to its shareholders. To the extent the Fund distributes substantially all of its net investment income and net realized capital gains 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 tax years for which the applicable statutes of limitations have not yet expired. As of June 30, 2017, the Fund did not have any unrecognized tax positions.
At June 30, 2017, the cost of investments on a U.S. federal income tax basis was $314,819,912. Gross unrealized appreciation of investments was $134,516,173 and gross unrealized depreciation of investments was $13,835,516 resulting in net unrealized appreciation of $120,680,657 based on cost for U.S. federal income tax purposes.
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. The Fund may also utilize earnings and profits distributed to shareholders on redemption of their shares as a part of the dividends-paid deduction for income tax purposes.
As determined on December 31, 2016, permanent differences resulting primarily from different book and tax accounting were reclassified at year end. Such differences are attributed to the tax treatment of foreign currency gains and losses. 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, 2016, the Fund recorded the following permanent reclassifications:
| Paid-in Capital | | Undistributed
Net Investment
Income/(Loss) | | Accumulated
Net Realized
Gains/(Losses)
on Investments | |
| $ | — | | | $ | 18,178 | | | $ | (18,178 | ) | |
The tax character of distributions paid during the years ended December 31, 2016 and December 31, 2015 was as follows:
Distributions Paid From: | |
Ordinary Income | | Long-Term Capital Gain | | Total | |
| 2016 | | 2015 | | 2016 | | 2015 | | 2016 | | 2015 | |
| $ | 2,558,897 | | | $ | 2,028,376 | | | $ | 13,959,506 | | | $ | 35,106,348 | | | $ | 16,518,403 | | | $ | 37,134,724 | | |
As of December 31, 2016, the components of distributable earnings (accumulated losses) on a U.S. federal income tax basis were as follows:
Undistributed
Ordinary
Income | | Undistributed
Long-Term
Capital Gain | | Unrealized
Appreciation/
(Depreciation) | | Loss
Carryforwards
and Deferrals | | Other
Temporary
Differences | | Total | |
| $ | 3,250,827 | | | $ | 15,361,774 | | | $ | 93,655,018 | | | $ | — | | | $ | — | | | $ | 112,267,619 | | |
13
The temporary differences between book basis and tax basis distributable earnings are primarily due to losses disallowed and recognized on wash sales.
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, are generally 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 real estate investment trust ("REIT") distributions and other income it receives, less operating expenses. The distributions the Fund receives from REITs are generally composed of income, capital gains, and/or return of REIT capital, but the REITs do not report this information to the Fund until the following calendar year. At June 30, 2017, the Fund estimated these amounts for the period January 1, 2017 to June 30, 2017 within the financial statements because the 2017 information is not available from the REITs until after the Fund's fiscal year-end. All estimates are based upon REIT information sources available to the Fund together with actual IRS Forms 1099-DIV received to date. For the year ended December 31, 2016, the character of distributions paid to shareholders disclosed within the Statements of Changes in Net Assets is based on estimates made at that time. 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 re-characterized as return of capital and/or capital gain. After all applicable REITs have informed the Fund of the actual breakdown of distributions paid to the Fund during its fiscal year, estimates previously recorded are adjusted on the books of the Fund to reflect actual results. As a result, the composition of the Fund's distributions as reported herein may differ from the final composition determined after calendar year-end and reported to Fund shareholders on IRS Form 1099-DIV.
7 Foreign taxes: Foreign taxes withheld, if any, represent amounts withheld by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds within the complex of related investment companies. Expenses directly attributable to a Fund are charged to that Fund. 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 among the classes based upon the relative net assets of each class.
9 Investments in foreign securities: Investing in foreign securities may involve 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 Unaffiliated investment company securities and exchange-traded funds: The Fund may invest in shares of other registered investment companies, including exchange-traded funds ("ETFs"), within the limitations prescribed by the 1940 Act or pursuant to an exemptive order from the U.S. Securities and Exchange Commission ("SEC") that permits the Fund to invest in both affiliated and unaffiliated investment companies, including exchange-traded funds, in excess of the limits in Section 12(d)(1)(A) of the 1940 Act, as amended, subject to the terms and
14
conditions of such order. Some ETFs seek to track the performance of a particular market index. These indices include both broad-based market indices and more narrowly-based indices, including those relating to particular sectors, markets, regions or industries. However, some ETFs have an actively-managed investment objective. ETF shares are traded like traditional equity securities on a national securities exchange or NASDAQ. A Fund will indirectly bear its proportionate share of any management fees and other expenses paid by such other investment companies, which will increase expenses and decrease returns.
11 Indemnifications: Like many other companies, the Trust's organizational documents provide that its officers ("Officers") and trustees ("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 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—Investment Management Fees, Administration Fees, Distribution Arrangements, and Other Transactions with Affiliates:
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, 2017, the investment 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.
Neuberger Berman BD LLC (the "Distributor") is the Fund's "principal underwriter" within the meaning of the 1940 Act. It acts as agent in arranging for the sale of the Fund's Class I shares without sales commission or other compensation and bears all advertising and promotion expenses incurred in the sale of those shares. The Board adopted a non-fee distribution plan for the Fund's Class I. The Board has adopted a distribution and shareholder services plan (the "Plan") for Class S shares pursuant to Rule 12b-1 under the 1940 Act. The Plan provides that, as compensation for administrative and other services related to the sale and distribution of Class S, and ongoing services provided to investors in the class, the Distributor receives from Class S a fee at the annual rate of 0.25% of Class S's average daily net assets. Distributor may pay a portion of the proceeds from the 12b-1 fee to institutions that provide such services, including insurance companies or their affiliates and qualified plan administrators ("intermediaries") for services they provide respecting the Fund to current and prospective variable contract owners and qualified plan participants that invest in the Fund through the intermediaries. 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 class during any year may be more or less than the cost of distribution and other services provided to the 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 Plan complies with those rules.
Management has contractually agreed to waive fees and/or reimburse the Fund's Class I and Class S shares so that the total annual operating expenses of those classes do not exceed the expense limitations as detailed in the following table. These undertakings exclude interest (commitment fees relating to borrowings are treated as interest
15
for purposes of this exclusion), taxes, transaction costs, brokerage commissions, dividend and interest expenses relating to short sales, acquired fund fees and expenses and extraordinary expenses, if any; consequently, net expenses may exceed the contractual expense limitations. The Fund has agreed that each of its classes will repay Management for fees and expenses waived or reimbursed for that class provided that repayment does not cause that class's annual operating expenses to exceed its contractual expense limitation in place at the time the fees and expenses were waived or reimbursed, or the expense limitation in place at the time the Fund repays Management, whichever is lower. Any such repayment must be made within three years after the year in which Management incurred the expense.
During the six months ended June 30, 2017, there was no repayment to Management under its contractual expense limitation.
At June 30, 2017, the Fund's contingent liabilities to Management under its contractual expense limitation were as follows:
| | | | | | | Expenses Reimbursed in
Year Ending December 31, | |
| | | | | | | 2014 | | 2015 | | 2016 | | 2017 | |
| | | | | | | Subject to Repayment until December 31, | |
Class | | Contractual
Expense
Limitation(a) | | Expiration | | 2017 | | 2018 | | 2019 | | 2020 | |
Class I | | | 1.30 | % | | 12/31/20 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | |
Class S | | | 1.17 | % | | 12/31/20 | | | 44,917 | | | | 46,277 | | | | 54,583 | | | | 19,983 | | |
(a) Expense limitation per annum of the respective class' average daily net assets.
Neuberger Berman LLC ("Neuberger") was retained by Management through December 31, 2015, pursuant to a Sub-Advisory Agreement 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. As a result of the entity consolidation described on page 3 of this Semi-Annual Report, the services previously provided by Neuberger under the Sub-Advisory Agreement are now provided by NBIA as of January 1, 2016.
Note C—Securities Transactions:
During the six months ended June 30, 2017, there were purchase and sale transactions of long-term securities of $48,398,515 and $54,903,825, respectively.
During the six months ended June 30, 2017, 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, 2017 and for the year ended December 31, 2016 was as follows:
For the Six Months Ended June 30, 2017
| | | Shares Sold | | Shares Issued on
Reinvestment of
Dividends and
Distributions | | Shares
Redeemed | | Total | |
Class I | | | 243,621 | | | | — | | | | (523,191 | ) | | | (279,570 | ) | |
Class S | | | 92,261 | | | | — | | | | (209,177 | ) | | | (116,916 | ) | |
16
For the Year Ended December 31, 2016
| | | Shares Sold | | Shares Issued on
Reinvestment of
Dividends and
Distributions | | Shares
Redeemed | | Total | |
Class I | | | 588,560 | | | | 626,297 | | | | (967,764 | ) | | | 247,093 | | |
Class S | | | 327,963 | | | | 143,191 | | | | (498,504 | ) | | | (27,350 | ) | |
Note E—Line of Credit:
At June 30, 2017, the Fund was a participant in a syndicated committed, unsecured $700,000,000 line of credit (the "Credit Facility"), to be used only for temporary or emergency purposes. Series of other investment companies managed by Management also participate in this line of credit on substantially the same terms except that some do not have access to the full amount of the Credit Facility. Interest is charged on borrowings under this Credit Facility at the highest of (a) a federal funds effective rate plus 1.00% per annum, (b) a Eurodollar rate for a one-month period plus 1.00% per annum, and (c) an overnight bank funding rate plus 1.00% per annum. The Credit Facility has an annual commitment fee of 0.15% per annum of the available line of credit, which is paid quarterly. The Fund has agreed to pay its pro rata share of the annual commitment fee, 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 and the level of its access to the Credit Facility, and interest charged on any borrowing made by the Fund and other costs incurred by such Fund. Because several mutual funds participate in the Credit Facility, there is no assurance that an individual Fund will have access to all or any part of the $700,000,000 at any particular time. There were no loans outstanding under the Credit Facility at June 30 2017. During the period ended June 30, 2017, the Fund did not utilize the Credit Facility.
Note F—Custodian Out-of-Pocket Expenses Refunded:
In May 2016, the Fund's custodian, State Street, announced that it had identified inconsistencies in the way in which the Fund was invoiced for categories of expenses, particularly those deemed "out-of-pocket" costs, from 1998 through November 2015. The amounts in the table below represent the refunded expenses and interest determined to be payable to the Fund for the period in question. These amounts were refunded to the Fund by State Street during the period ended June 30, 2017.
Expenses
Refunded | | Interest Paid
to the Fund | |
| $ | 48,363 | | | $ | 4,855 | | |
Note G—Recent Accounting Pronouncement:
In October 2016, the SEC adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017, for reports with a period-end date after that date. Management is currently evaluating the impact, if any, that the adoption of the amendments to Regulation S-X will have on the Fund's financial statements and related disclosures.
Note H—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
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. Amounts that do not round to $0.01 or $(0.01) per share are presented as $0.00 or $(0.00), respectively. Ratios that do not round to 0.01% or (0.01)% are presented as 0.00% or (0.00)%, respectively. A "—" indicates that the line item was not applicable in the corresponding period.
Class I | |
| | | Six Months
Ended
June 30, | | Year Ended December 31, | |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| | | (Unaudited) | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | $ | 22.57 | | | $ | 21.46 | | | $ | 23.88 | | | $ | 21.72 | | | $ | 15.89 | | | $ | 14.35 | | |
Income From Investment Operations: | |
| Net Investment Income/(Loss)@ | | | 0.08 | | | | 0.13 | | | | 0.16 | | | | 0.15 | | | | 0.09 | | | | 0.15 | | |
Net Gains or Losses on Securities
(both realized and unrealized) | | | 2.03 | | | | 1.94 | | | | (0.28 | ) | | | 2.10 | | | | 5.87 | | | | 1.43 | | |
Total From Investment Operations | | | 2.11 | | | | 2.07 | | | | (0.12 | ) | | | 2.25 | | | | 5.96 | | | | 1.58 | | |
Less Distributions From: | |
Net Investment Income | | | — | | | | (0.16 | ) | | | (0.14 | ) | | | (0.09 | ) | | | (0.13 | ) | | | (0.04 | ) | |
Net Realized Capital Gains | | | — | | | | (0.80 | ) | | | (2.16 | ) | | | — | | | | — | | | | — | | |
Total Distributions | | | — | | | | (0.96 | ) | | | (2.30 | ) | | | (0.09 | ) | | | (0.13 | ) | | | (0.04 | ) | |
Voluntary Contribution from Management | | | — | | | | — | | | | — | | | | 0.00 | | | | — | | | | — | | |
Net Asset Value, End of Period | | $ | 24.68 | | | $ | 22.57 | | | $ | 21.46 | | | $ | 23.88 | | | $ | 21.72 | | | $ | 15.89 | | |
| Total Return† | | | 9.35 | %*^‡ | | | 9.86 | % | | | (0.46 | )%^ | | | 10.38 | %µ | | | 37.60 | % | | | 10.98 | % | |
Ratios/Supplemental Data | |
Net Assets, End of Period (in millions) | | $ | 353.0 | | | $ | 329.1 | | | $ | 307.6 | | | $ | 301.3 | | | $ | 244.2 | | | $ | 148.7 | | |
Ratio of Gross Expenses to
Average Net Assets# | | | 0.97 | %** | | | 1.00 | % | | | 0.98 | % | | | 0.98 | % | | | 0.99 | % | | | 1.03 | % | |
Ratio of Net Expenses to Average Net Assets | | | 0.96 | %**ß | | | 1.00 | % | | | 0.98 | % | | | 0.98 | % | | | 0.99 | % | | | 1.03 | %Ø | |
Ratio of Net Investment Income/(Loss)
to Average Net Assets | | | 0.66 | %**ß | | | 0.59 | % | | | 0.70 | % | | | 0.68 | % | | | 0.49 | % | | | 0.98 | % | |
Portfolio Turnover Rate | | | 12 | %* | | | 31 | % | | | 24 | % | | | 37 | % | | | 29 | % | | | 30 | % | |
See Notes to Financial Highlights
18
Financial Highlights (cont'd)
Class S | |
| | | Six Months
Ended
June 30, | | Year Ended December 31, | |
| | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| | | (Unaudited) | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | $ | 22.66 | | | $ | 21.54 | | | $ | 23.93 | | | $ | 21.76 | | | $ | 15.92 | | | $ | 14.39 | | |
Income From Investment Operations: | |
| Net Investment Income/(Loss)@ | | | 0.05 | | | | 0.09 | | | | 0.12 | | | | 0.12 | | | | 0.06 | | | | 0.13 | | |
Net Gains or Losses on Securities
(both realized and unrealized) | | | 2.04 | | | | 1.94 | | | | (0.27 | ) | | | 2.08 | | | | 5.89 | | | | 1.42 | | |
Total From Investment Operations | | | 2.09 | | | | 2.03 | | | | (0.15 | ) | | | 2.20 | | | | 5.95 | | | | 1.55 | | |
Less Distributions From: | |
Net Investment Income | | | — | | | | (0.11 | ) | | | (0.08 | ) | | | (0.03 | ) | | | (0.11 | ) | | | (0.02 | ) | |
Net Realized Capital Gains | | | — | | | | (0.80 | ) | | | (2.16 | ) | | | — | | | | — | | | | — | | |
Total Distributions | | | — | | | | (0.91 | ) | | | (2.24 | ) | | | (0.03 | ) | | | (0.11 | ) | | | (0.02 | ) | |
Voluntary Contribution from Management | | | — | | | | — | | | | — | | | | 0.00 | | | | — | | | | — | | |
Net Asset Value, End of Period | | $ | 24.75 | | | $ | 22.66 | | | $ | 21.54 | | | $ | 23.93 | | | $ | 21.76 | | | $ | 15.92 | | |
| Total Return† | | | 9.22 | %*^‡ | | | 9.64 | % | | | (0.59 | )%^ | | | 10.11 | %µ | | | 37.41 | % | | | 10.74 | % | |
Ratios/Supplemental Data | |
Net Assets, End of Period (in millions) | | $ | 82.5 | | | $ | 78.2 | | | $ | 74.9 | | | $ | 81.1 | | | $ | 80.7 | | | $ | 66.7 | | |
Ratio of Gross Expenses to
Average Net Assets# | | | 1.22 | %** | | | 1.25 | % | | | 1.23 | % | | | 1.23 | % | | | 1.24 | % | | | 1.28 | % | |
Ratio of Net Expenses to Average Net Assets | | | 1.17 | %**ß | | | 1.17 | % | | | 1.17 | % | | | 1.17 | % | | | 1.17 | % | | | 1.17 | %Ø | |
Ratio of Net Investment Income/(Loss)
to Average Net Assets | | | 0.45 | %**ß | | | 0.42 | % | | | 0.52 | % | | | 0.52 | % | | | 0.32 | % | | | 0.82 | % | |
Portfolio Turnover Rate | | | 12 | %* | | | 31 | % | | | 24 | % | | | 37 | % | | | 29 | % | | | 30 | % | |
See Notes to Financial Highlights
19
Notes to Financial Highlights Socially Responsive Portfolio
(Unaudited)
@ Calculated based on the average number of shares outstanding during each fiscal period.
† Total return based on per share NAV reflects the effects of changes in NAV on the performance of the Fund during each fiscal period. Returns assume 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 accounts or the related insurance policies or other qualified pension or retirement plans, and the inclusion of these charges and other expenses would reduce the total return for all fiscal periods shown.
^ The class action proceeds listed in Note A of the Notes to Financial Statements had no impact on the Fund's total return for the six months ended June 30, 2017. The class action proceeds received in 2015 had no impact on the Fund's total return for the year ended December 31, 2015.
* Not annualized.
µ The voluntary contribution received in 2014 had no impact on the Fund's total return for the year ended December 31, 2014.
# 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. Management did not reimburse or waive fees during the fiscal periods shown for Class I.
** Annualized.
ß Custodian Out-of-Pocket Expenses Refunded, as listed in Note F of the Notes to Financial Statements, which is non-recurring, is included in these ratios on a non-annualized basis. Had the Fund not received the refund the annualized ratios of net expenses to average net assets and net investment income/(loss) to average net assets would have been:
| | | Ratio of Net
Expenses to
Average Net
Assets
Six Months
Ended June 30,
2017 | | Ratio of Net
Investment
Income/
(Loss) to
Average Net
Assets
Six Months
Ended June 30,
2017 | |
Class I | | | 0.97 | % | | | 0.65 | % | |
Class S | | | 1.17 | % | | | 0.44 | % | |
Ø Prior to January 1, 2013, the Fund had an expense offset arrangement in connection with its custodian contract. The impact of expense reductions related to expense offset arrangements, if any, was less than 0.01%.
‡ The Custodian Out-of-Pocket Expenses Refunded listed in Note F of the Notes to Financial Statements had no impact on the Fund's total return for the six months ended June 30, 2017.
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 800-877-9700 (toll-free) and on the Securities and Exchange Commission's website 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 upon request, without charge, by calling 800-877-9700 (toll-free), on the Securities and Exchange Commission's website 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 800-SEC-0330. The information on Form N-Q is available upon request, without charge, by calling 800-877-9700 (toll free).
21
Item 2. Code of Ethics.
The Board of Trustees (“Board”) of Neuberger Berman Advisers Management Trust (“Registrant”) has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (“Code of Ethics”). During the period covered by this Form N-CSR, there were no substantive amendments to the Code of Ethics and there were no waivers from the Code of Ethics granted to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
A copy of the Code of Ethics is incorporated by reference to Neuberger Berman Advisers Management Trust’s Form N-CSRS, Investment Company Act file number 811-04255 (filed August 25, 2016). The Code of Ethics is also available, without charge, by calling 1-800-877-9700 (toll-free).
Item 3. Audit Committee Financial Expert.
Not applicable to semi-annual reports on Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Not applicable to semi-annual reports on Form N-CSR.
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 applicable semi-annual reports, 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 the 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.
Item 12. Exhibits.
The certification furnished pursuant to Rule 30a-2(b) under the Act and Section 906 of the Sarbanes-Oxley Act will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.
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.
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.
