UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-3752
THE MANAGERS FUNDS
- ------------------------------------------------------
(Exact name of registrant as specified in charter)
40 Richards Avenue, Norwalk, Connecticut 06854
(Address of principal executive offices) (Zip code)
The Managers Funds LLC
40 Richards Avenue, Norwalk, Connecticut 06854
- ------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (203) 857-5321
Date of fiscal year end: DECEMBER 31
Date of reporting period: DECEMBER 1, 2002 - MAY 31, 2003
(Semi-Annual)
Item 1. REPORT TO SHAREHOLDERS
====================================================================
Managers
- --------
Semi-Annual Report
[Managers Funds logo omitted]
The Managers Funds:
Value Fund ^ Capital Appreciation Fund ^ Small Company Fund
Special Equity Fund ^ International Equity Fund ^ Emerging
Markets Equity Fund ^ Intermediate Bond Fund ^ Bond Fund ^
Global Bond Fund
Dated June 30,2003
access to excellence
<Page>
Table of Contents
-----------------
<Table>
Letter to Shareholders 1
The Managers Funds Performance 2
Complete performance table for all of The Managers Funds and
Managers AMG Funds as of June 30,2003
Fund Snapshots 4
Equity funds 'top ten holdings,industry weightings and country
breakdown at June 30,2003
Schedules of Portfolio Investments 7
Detailed portfolio listings by security type and industry
sector,as valued at June 30,2003
Financial Statements
Statements of Assets and Liabilities 23
Funds' balance sheet,net asset value (NAV)per share
computation and cumulative undistributed amount
Statements of Operations 25
Detail of sources of income,Fund expenses,and realized and
unrealized gains (losses)during the period
Statements of Changes in Net Assets 27
Detail of changes in Fund assets for the past two periods
Financial Highlights 31
Historical net asset values per share,distributions,total
returns,expense ratios,turnover ratios and net assets for
each fund
Notes to Financial Statements 36
Accounting and distribution policies,details of agreements and
transactions with Fund management and description of certain
investment risks
</Table>
Founded in 1983,The Managers Funds offers individual and
institutional investors the experience and discipline of
some of the world's most highly regarded investment
professionals.
<Page>
Letter to Shareholders
- ------------------------------------------------------------------
Dear Fellow Shareholder:
Much has changed in the world over the past six months,and the
acute movements of the financial markets in response,although not
predictable,have been unsurprising. Early in the year investors
seemed to have been torn between guarded optimism,based upon the
hope that the stock market could not go down for a fourth
consecutive year,particularly given the aggressive fiscal stimulus,
and pessimism driven by uneven economic growth and the huge weight
of uncertainty building in the Middle-East. During the first quarter
investors were appropriately pre-occupied with the political climate
among the U.S.,Iraq,the United Nations and its other member
countries. Day by day,the markets moved as a result of changing
perceptions about the likelihood, duration and outcome of military
conflict. While this was understandable, it obscured many of
the other important factors that typically drive investment and
business decisions. As a result, the economy, while growing,
remained rather sluggish, the unemployment rate remained near
6%, and consumer confidence fell to new lows.In an effort to
revive the economy, the Bush administration, along with Congress
passed an aggressive tax cut plan, and the Federal Reserve
Board lowered the Fed Funds rate to 1%, its lowest level since
1958.
As military operations commenced in Iraq and proceeded rather
quickly to a perceived resolution, at least one large
block of uncertainty was lifted. The stock market rose markedly
beginning in mid-March and continuing throughout the second
quarter, despite the fact that the economy had yet to show
significant evidence of improvement. Indeed, the best performing
shares, during the second quarter rally, were those that had little
good news other than what investors considered cheap share
prices. Of the 250 best performing stocks in the Russell 3000, 213
had a starting share price below $10 and 152 had a price
below $5. Additionally, most of these were small unprofitable
companies: 207 of these best performing companies had market
caps below $500 million and only 75 had positive earnings over
the prior 12 months. This is not to suggest that share gains
were exclusively valuation/price driven. The breadth of the gains
argues, for an expectation of improving profitability supported
by aggressive monetary and fiscal policy measures. Every
major market index rose by at least 15%, every sector within
the broad market rose, and only one industry (Leisure Equipment
& Products) fell. For similar reasons, including monetary
stimulus, almost all foreign stock markets also finished higher
for the six-month period, after a strong "post-war "rally.
Bonds also rallied during the period as interest rates continued
to fall across the maturity spectrum. Notably, credit
spreads continued a tightening trend started in late 2002 as
investors have become more constructive on the credit outlooks of
corporate borrowers. Given the lack of evidence, however, this may
be looked at as similar to the equity market, where the
price increases may have been driven more by perceived valuations
than by a surge in credit quality. One sector that did not
fully participate in this rally was the mortgage securities
sector which, as rates achieve historic lows, contains an
increasing risk that prepayment rates will severely slow down,
given any back-up in interest rates.
Throughout this period,the Funds covered within this report
performed satisfactorily. The domestic stock funds each
returned in excess of 10% for the six-months ended June
30,2003. Although they each modestly lagged their primary bench-mark
over this short period, we believe that this is partially due
to the aforementioned rally in unprofitable companies. With a
few exceptions we were pleased with the fundamental results of
the companies within the portfolios and optimistic about the
positioning and prospects of the portfolios going forward. Within
these funds, we made one subadvisor change during the
period, hiring Elizabeth Bramwell, who heads Bramwell Capital
Management, to manage a portion of Managers Capital Appreciation
Fund. Ms. Bramwell focuses on companies that have new products and
services and that are positioned to benefit from the long-term payoff
on research as well as plant and market development and expansion. She
makes investment decisions based on fundamental research, bottom-up
earnings forecasts and company valuations relative to their respective
industries, projected future growth rates and the overall equity market.
More detailed descriptions of the investment philosophy and process of
Bramwell and all of the subadvisors of these Funds are available on our
website at www.managersfunds.com. The International Equity and Emerging
Markets Equity Funds also performed satisfactorily in the strong
market.Emerging Markets Equity Fund returned in excess of 15% for the
period after rebounding more than 25% during the second quarter.
Given the strong credit rally and the drop in interest rates, the
bond funds performed quite well. Bond Fund and Global Bond Fund
benefited from significant corporate bond allocations, returning 8.59%
and 12.88%, respectively, for the six-month period. With rates currently
at historic lows and credit spreads having tightened significantly, we
should not expect returns to continue at that pace. Intermediate Bond
Fund was positioned more for liquidity and thus did not benefit from the
corporate rally. The Fund will be discontinued as of the end of
July.
Page 3 of this report contains a table with the performance of
all of the Funds within The Managers Funds family. As always, we
post any news or other pertinent information about the Funds as soon
as applicable on our website at www.managersfunds.com. Should you have
any questions about the Funds or this report, please feel free to
contact us at 1-800-835-3879, or visit the website. We thank you for
your investment in The Managers Funds.
/s/ Peter M. Lebovitz
- ---------------------
Peter M.Lebovitz
President & CEO
The Managers Funds LLC
/s/ Thomas G. Hoffman
- ---------------------
Thomas G.Hoffman,CFA
Director of Research
The Managers Funds LLC
1
<Page>
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The Managers Funds and
Managers AMG Funds Performance (unaudited)
All periods ended June 30,2003
- ----------------------------------------------------------------
<Table>
Average Annual Total Returns (1)
-----------------------------------------------------------------
The Managers Funds: Six 1 3 5 10 Since Inception
Equity Funds: Months Year Years Years Years Inception Date
===================
Value 10.58% (5.43)% (1.55)% (0.03)% 9.01% 11.30% Oct.'84
Capital Appreciation 11.35% (4.63)% (25.58)%(0.26)% 9.41% 12.18% Jun.'84
Small Company (2) 14.38% 0.41% (9.82)% - - (9.78)% Jun.'00
Special Equity 13.04% (2.72)% (11.18)% 2.88% 10.60% 13.00% Jun.'84
International Equity 7.30% (10.01)% (13.38)%(5.18)% 4.96% 8.75% Dec.'85
Emerging Markets
Equity (2) 15.34% 5.62% (5.54)% 6.14% - 2.43% Feb.'98
U.S.Stock Market
Plus (2) 13.46% (0.24)% (11.23)% (2.35)% 9.70% 10.44% Jun.'92
Income Funds:
=============
Money Market (2) 0.40% 1.04% 2.93% 3.83% 4.24% 5.36% Jun.'84
Bond (2) 8.59% 15.42% 11.27% 8.11% 8.58% 10.38% Jun.'84
Global Bond (2) 12.88% 24.14% 9.27% 5.77% - 5.67% Mar.'94
Intermediate Duration
Government (2) 2.04% 5.80% 8.68% 6.51% 6.68% 7.59% Mar.'92
Intermediate Bond (2) 1.55% 0.28% 3.90% 3.74% 4.04% 7.03% Jun.'84
Short Duration
Government (2) 1.55% 3.13% 5.54% 4.85% 5.19% 5.26% Mar.'92
Total Return Bond (2) 3.92% - - - - 3.92% Dec.'02
- ------------------------------------------------------------------------------------------
Managers AMG Funds:
===================
Essex Aggressive Growth
Institutional Class 18.88% 6.31% - - - (0.54)% Mar.'02
Essex Aggressive Growth
Investor Class (2) 18.67% 5.94% (20.79)% - - (5.27)% Nov.'99
Frontier Growth (2,3) 15.45% (0.92)% (18.37)% (0.37)% 7.70% 12.11% Mar.'88
Frontier Small Company
Value (2) 9.17% (9.26)% - - - 3.15% Feb.'01
Rorer Large-Cap (2) 9.19% (5.56)% - - - (8.90)% Dec.'01
Rorer Mid-Cap (2) 17.67% 2.77% - - - 2.53% Dec.'01
Systematic Value (2) 14.83% 3.69% - - - (3.04)% Apr.'02
Burridge Small Cap
Growth (2,4) 25.63% 6.06% - - - 8.25% Sep.'00
First Quadrant Tax-Managed Equity (2,5)
Before Taxes 12.19% (1.23)% - - - (5.64)% Dec.'00
After Taxes on
Distributions 12.19% (1.55)% - - - (5.76)%
After Taxes on
Distributions and
Sale of Fund Shares 7.48% (0.78)% - - - (4.83)%
- ------------------------------------------------------------------------------------------
</Table>
See the Notes to the Performance Table on the following page.
2
<Page>
- ----------------------------------------------------------------
The Managers Funds and
Managers AMG Funds Performance
Notes to the Performance Table
- ----------------------------------------------------------------
Past performan e is not a guarantee of future results.The
investment return and prin ipal value of an investment will
fluctuate so that an investor's shares, when redeemed,may be worth
more or less than the original cost.An investment in Managers Money
Market Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the
Money Market Fund seeks to preserve the value of your investment at
$1.00 per share,it is possible to lose money by investing in the
Fund. Additional risks are associated with investing in
international and emerging markets,and such securities may be
considered speculative. There are also risks associated with
investing in small-cap companies,such as increased volatility. For
more information regarding The Managers Funds and Managers AMG Funds,
including fees,expenses and risks,please all (800)835-3879 or visit
our website at www.managersfunds.com for a Prospectus. Please read
the Prospectus carefully before you invest or send money.The
Prospectus is not an offer to sell shares in the Funds.Distributed
by Managers Distributors, Inc., member NASD.
(1) Total return equals income yield plus share price change and
assumes reinvestment of all dividends and capital gain
distributions. Returns are net of fees and may reflect offsets of
Fund expenses as described in the Prospectus. No adjustment has been
made for taxes payable by shareholders on their reinvested dividends
and capital gain distributions. Returns for periods greater than one
year are annualized. Year to date total returns are based on
calendar year.
(2) From time to time,the Fund's advisor has waived its fees and/or
absorbed Fund expenses,which has resulted in higher returns.
(3) The "Since Inception"return,and returns for all periods beginning
prior to 10/1/00,for the Frontier Growth Fund reflect performance
linked with the Frontier Growth predecessor fund which began operations
on March 7, 1988. Only quarterly returns are available prior to 10/1/00
and thus not all returns are available for "intra-quarter" periods.
The predecessor fund's objectives, policies, guidelines and restrictions
were, in all material respects, the same as the Fund's. The predecessor
fund was not registered as a mutual fund and therefore was not subject
to certain restrictions that are imposed upon mutual funds. If the
predecessor fund had been registered as a mutual fund, the predecessor
fund's performance may have been adversely affected. The performance of
the predecessor fund was calculated according to the standardized SEC
method,except that quarterly rather than daily fund values were used.
(4) The "Since Inception"return,and returns for all periods beginning
prior to 6/25/02, for the Burridge Small Cap Growth Fund reflect
performance linked with a "Predecessor Account"which began operations
on September 27, 2000. The Predecessor Account's objectives, policies,
guidelines and restrictions were, in all material respects, the
same as the Fund's. The Predecessor Account was not registered as
a mutual fund and therefore was not subject to certain investment
restrictions that are imposed upon mutual funds. If the Predecessor
Account had been registered as a mutual fund, the Account's
performance may have been adversely affected. The performance of the
Predecessor Account was calculated according to the standardized
SEC method.
(5) After-tax returns are calculated by Lipper using the historical
highest individual federal marginal income tax rates and
do not reflect the impact of state and local taxes. Actual after-
tax returns depend on an investor's tax situation and
may differ from those shown, and after-tax returns are not
relevant to investors who hold their Fund shares through
tax-deferred arrangements, such as 401(k) plans or individual
retirement accounts.
3
<Page>
- ----------------------------------------------------------------
Fund Snapshots (unaudited)
As of June 30,2003
- ----------------------------------------------------------------
Managers Value Fund
===================
<Table>
Top Ten Holdings
(out of 65 securities) % Fund Industry Weightings
- -------------------------------------------- ---------------------------------
Citigroup,Inc.* 3.6% Financials 30.1%
CVS Corp.* 3.1 Consumer Discretionary 13.4
Fannie Mae 3.0 Industrials 11.1
Merck & Co.,Inc.* 2.9 Health Care 10.5
ChevronTexaco Corp.* 2.7 Energy 9.5
Merrill Lynch & Co., Inc. 2.2 Consumer Staples 8.0
Emerson Electric Co.* 2.2 Materials 5.1
Cendant Corp. 2.1 Telecommunication
Services 2.1
Oxford Health Plans,Inc. 2.0 Information Technology 1.5
Allstate Corp.,The 1.9 Utilities 1.5
Top Ten as a Group 25.7% Other 7.2
</Table>
Managers Capital Appreciation Fund
==================================
<Table>
Top Ten Holdings
(out of 73 securities) % Fund Industry Weightings
- -------------------------------------------- ---------------------------------
Dell Computer Corp.* 4.8% Information Technology 25.9%
American International
Group,Inc.* 3.6 Health Care 20.9
Pfizer,Inc. 3.3 Financials 15.9
Citigroup,Inc. 3.2 Consumer Discretionary 13.4
Wal-Mart Stores,Inc. 3.1 Consumer Staples 6.7
Cardinal Health,Inc.* 2.8 Industrials 5.7
3M Co. 2.6 Energy 4.0
Microsoft Corp. 2.6 Telecommunication
Services 1.2
WellPoint Health Networks,Inc. 2.4 Other 6.3
Amgen,Inc. 2.3
Top Ten as a Group 30.7%
</Table>
Managers Small Company Fund
===========================
<Table>
Top Ten Holdings
(out of 84 securities) % Fund Industry Weightings
- -------------------------------------------- ---------------------------------
Cost Plus,Inc.* 2.8% Consumer Discretionary 27.7%
Pentair,Inc.* 2.5 Information Technology 23.3
PETsMART,Inc.* 2.3 Industrials 18.8
Ultra Petroleum Corp. 2.2 Health Care 13.5
Michaels Stores,Inc. 2.1 Energy 6.4
Acxiom Corp.* 2.1 Consumer Staples 5.3
Performance Food Group Co. 2.1 Financials 1.9
Barr Laboratories,Inc.* 2.1 Materials 1.6
Fair Isaac Corp. 2.0 Other 1.5
Christopher & Banks Corp. 2.0
Top Ten as a Group 22.2%
</Table>
*Top Ten Holding at December 31,2002
4
<Page>
Managers Special Equity Fund
============================
<Table>
Top Ten Holdings
(out of 327 securities) % Fund Industry Weightings
- -------------------------------------------- ---------------------------------
ITT Educational Services,Inc.* 1.8% Consumer Discretionary 24.4%
Emmis Broadcasting Corp.,
Class A* 1.2 Information Technology 19.9
Dillard's Inc.,Class A* 1.1 Industrials 12.8
Getty Images,Inc.* 1.0 Financials 12.1
Reliant Resources,Inc. 1.0 Health Care 10.7
United States Steel Corp.* 1.0 Materials 4.9
Overseas Shipholding Group,Inc. 1.0 Energy 3.4
Ruby Tuesday,Inc. 0.9 Utilities 2.7
Pogo Producing Co.* 0.9 Consumer Staples 1.6
Select Medical Corp. 0.9 Telecommunication
Services 0.4
Top Ten as a Group Other 10.8% Other 7.1
</Table>
Managers International Equity Fund
==================================
<Table>
Top Ten Holdings
(out of 155 securities) % Fund Industry Weightings
- -------------------------------------------- ---------------------------------
Canon,Inc.* 3.1% Financials 19.8%
Vodafone Group PLC* 2.2 Consumer Discretionary 19.2
DSM NV* 1.7 Materials 15.4
Nissan Motor Co.,Ltd. 1.6 Industrials 8.5
Bank of Nova Scotia* 1.5 Energy 8.3
Arcelor 1.5 Information Technology 7.5
ENI SpA* 1.5 Telecommunication
Services 6.0
Assurances Generales de France 1.4 Health Care 5.5
News Corp.,Ltd.,The 1.4 Consumer Staples 2.5
Compal Electronics,Inc. 1.3 Utilities 0.7
Top Ten as a Group Other 17.2% Other 6.6
</Table>
Managers Emerging Markets Equity Fund
=====================================
<Table>
Top Ten Holdings
(out of 43 securities) % Fund Industry Weightings
- -------------------------------------------- ---------------------------------
Samsung Electronics,Ltd.,GDR
representing 1/2 voting shares* 3.9% Financials 22.1%
POSCO,ADR 3.5 Materials 12.7
SK Telecom Co.,Ltd.,ADR 3.3 Telecommunication
Services 11.2
Siam Cement Public Co.,Ltd.,The 3.2 Information Technology 10.8
ABSA Group,Ltd.* 3.1 Consumer Staples 10.6
Sanlam,Ltd.* 3.0 Consumer Discretionary 9.7
Vestel Elektronik Sanayi 2.9 Industrials 6.4
Empresa Brasileira de
Aeronautica SA 2.9 Health Care 4.5
Fountain Set Holdings,Ltd. 2.7 Energy 4.2
Kookmin Bank,Sponsored ADR 2.5 Other 7.8
Top Ten as a Group 31.0%
</Table>
*Top Ten Holding at December 31, 2002
5
<Page>
Fund Snapshots (continued)
- ---------------------------------------------------------
<Table>
Managers
Managers MSCI Emerging MSCI
International EAFE Markets Equity EMF
Country Equity Fund* Index Country Fund Index
- -------------- --------------- --------- -------------- --------------- ---------
Japan 17.5% 20.5% South Korea 15.5% 19.5%
United Kingdom 16.9 27.1 Brazil 9.8 7.7
France 10.5 9.8 Taiwan 9.0 12.5
Canada 9.3 0.0 Hong Kong 7.5 0.0
Germany 7.3 6.4 India 7.2 4.5
Switzerland 4.0 7.5 Mexico 6.5 7.7
Australia 4.0 5.2 South Africa 6.4 13.5
Sweden 3.9 2.1 Indonesia 5.4 1.4
Hong Kong 3.7 1.5 Thailand 5.2 2.2
United States 3.3 0.0 Turkey 4.7 1.2
Netherlands 2.8 5.2 Malaysia 4.6 5.3
Italy 2.6 3.9 United States 3.0 0.0
Spain 2.3 3.8 China 2.8 6.8
South Korea 1.9 0.0 Poland 2.4 1.3
Brazil 1.6 0.0 Israel 2.3 4.3
South Africa 1.5 0.0 Russia 2.1 5.8
Luxembourg 1.4 0.0 Hungary 1.6 1.0
Taiwan 1.3 0.0 Philippines 1.4 0.6
Mexico 0.9 0.0 Chile 1.4 1.9
Denmark 0.9 0.8 United Kingdom 1.2 0.0
Singapore 0.8 0.8 Croatia 0.0 0.0
Peru 0.5 0.0 Peru 0.0 0.5
Ireland 0.4 0.8 Venezuela 0.0 0.2
Russia 0.2 0.0 Argentina 0.0 0.6
Norway 0.0 0.4 Czech Republic 0.0 0.5
Belgium 0.0 1.1 Morocco 0.0 0.3
Finland 0.0 1.9 Pakistan 0.0 0.2
Greece 0.0 0.4 Egypt 0.0 0.2
Portugal 0.0 0.4 Jordan 0.0 0.2
New Zealand 0.0 0.2 Colombia 0.0 0.1
Austria 0.0 0.2
Cash 0.5 0.0
</Table>
*As a pecent of total market value of common stocks on
June 30, 2003.
6
<Page>
Managers Value Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (unaudited)
<Table>
Security Description Shares Value
- ---------------------------------------------------------
Common Stocks -92.8%
Consumer Discretionary - 13.4%
Clear Channel
Communications,Inc.* 20,600 $ 873,234
Comcast Corp.,Special Class A*36,600 (2) 1,055,178
Darden Restaurants,Inc. 18,700 354,926
Gannett Co.,Inc. 11,750 902,518
Jones Apparel Group,Inc.* 26,700 781,242
Liberty Media Corp.* 92,300 1,066,988
McDonald 's Corp. 38,500 849,310
Office Depot,Inc.* 65,100 944,601
RadioShack Corp. 27,800 731,418
Whirlpool Corp. 17,600 1,121,120
Yum!Brands,Inc.* 37,900 1,120,324
Total Consumer Discretionary 9,800,859
Consumer Staples -8.0%
CVS Corp. 81,100 2,273,233
Kimberly-Clark Corp. 23,055 1,202,088
Pepsi Bottling Group,Inc. 43,400 868,868
Safeway,Inc.* 27,600 564,696
Supervalu,Inc. 43,900 935,948
Total Consumer Staples 5,844,833
Energy -9.5%
BP,PLC.Sponsored ADR 21,400 (2) 899,228
ChevronTexaco Corp. 26,900 1,942,180
ConocoPhillips 20,474 1,121,975
Devon Energy Corp. 15,800 (2) 843,720
Kerr-McGee Corp. 23,000 1,030,400
Transocean,Inc. 51,400 1,129,258
Total Energy 6,966,761
Financials -30.1%
ACE,Ltd. 27,300 936,116
Allstate Corp.,The 39,700 1,415,305
American Express Co. 27,300 1,141,412
American International
Group,Inc. 15,000 827,700
Chubb Corp. 18,900 1,134,000
Citigroup,Inc. 60,668 2,596,590
Fannie Mae 32,100 2,164,824
FleetBoston Financial Corp. 35,777 1,062,935
Goldman Sachs Group,Inc. 8,400 (2) 703,500
Hartford Financial Services
Group,Inc. 23,800 1,198,568
John Hancock Financial
Services,Inc. 27,800 854,294
MBIA,Inc. 17,500 (2) 853,125
MBNA Corp. 34,907 727,462
Mellon Financial Corp. 26,100 724,275
Merrill Lynch &Co.,Inc. 33,800 1,577,784
MGIC Investment Corp. 21,800 (2) 1,016,752
Regions Financial Corp. 32,300 1,091,094
Travelers Property Casualty
Corp.Class B* 2,044 32,234
Travelers Property Casualty
Corp.,Class A 54,094 (2) 860,095
Wells Fargo & Co. 22,449 1,131,430
Total Financials 22,049,495
Health Care -10.5%
Abbott Laboratories 23,800 1,041,488
Beckman Coulter,Inc. 19,500 (2) 792,480
HCA,Inc. 32,100 (2) 1,028,484
McKesson Corp. 35,200 1,258,048
Merck &Co.,Inc. 35,500 2,149,525
Oxford Health Plans,Inc.* 33,900 1,424,817
Total Health Care 7,694,842
Industrials - 11.1%
Cendant Corp.* 82,100 (2) 1,504,072
CNF,Inc. 25,900 (2) 657,342
Emerson Electric Co. 30,800 1,573,880
General Dynamics Corp. 14,500 1,051,250
General Electric Co. 37,300 1,069,764
Honeywell International,Inc. 26,700 716,895
Pitney Bowes,Inc. 28,400 1,090,844
Textron,Inc. 11,400 444,828
Total Industrials 8,108,875
Information Technology -1.5%
Hewlett-Packard Co. 52,526 1,118,804
Materials -5.1%
Alcoa,Inc. 30,900 787,950
Dow Chemical Co. 21,800 (2) 674,928
E.I.du Pont de
Nemours & Co.,Inc. 24,550 1,022,262
Engelhard Corp. 26,500 656,405
Rio Tinto PLC. Sponsored ADR 7,500 (2) 574,125
Total Materials 3,715,670
Telecommunication Services -2.1%
Alltel Corp. 14,000 675,080
Verizon Communications,Inc. 21,585 851,528
Total Telecommunication Services 1,526,608
Utilities -1.5%
Exelon Corp. 18,100 1,082,561
Total Common Stocks
(cost $62,163,855) 67,909,308
--------------
Other Investment Companies -13.5% (1)
Bank of New York Institutional
Cash Reserves Fund,1.25% (3) 5,578,191 5,578,191
JPMorgan Prime Money Market
Fund,Institutional Class
Shares, 1.03% 4,321,688 4,321,688
Total Other Investment Companies
(cost $9,899,879) 9,899,879
Total Investments -106.3%
(cost $72,063,734) 77,809,187
--------------
Other Assets,less Liabilities -(6.3)% (4,652,313)
--------------
Net Assets -100.0% $ 73,156,874
==============
</Table>
The accompanying notes are an integral part of these financial
statements.
7
<Page>
Managers Capital Appreciation Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (unaudited)
<Table>
Security Description Shares Value
- ---------------------------------------------------------
Common Stocks -93.7%
Consumer Discretionary -13.4%
Applebee 's International,Inc.25,000 $ 785,750
Best Buy Co.,Inc.* 40,000 (2) 1,756,800
Cheesecake Factory,The* 15,000 538,350
Clear Channel Communications,
Inc.* 18,000 763,020
Comcast Corp.,Special Class A*47,300 (2) 1,363,659
COX Communications,Inc.* 33,000 (2) 1,052,700
Family Dollar Stores 15,000 572,250
Fox Entertainment Group,Inc.* 48,700 (2) 1,401,586
Kohl 's Corp.* 35,000 1,798,300
Lowe 's Cos.,Inc. 30,000 1,288,500
Staples,Inc.* 50,000 917,500
Viacom,Inc.,Class B* 33,400 (2) 1,458,244
Total Consumer Discretionary 13,696,659
Consumer Staples -6.7%
Colgate-Palmolive Co. 10,000 579,500
Sysco Corp. 30,000 901,200
Walgreen Co. 70,000 (2) 2,107,000
Wal-Mart Stores,Inc. 59,600 3,198,732
Total Consumer Staples 6,786,432
Energy -4.0%
Apache Corp. 18,445 1,200,032
Baker Hughes,Inc. 27,100 909,747
Burlington Resources,Inc. 10,000 540,700
Devon Energy Corp. 10,000 (2) 534,000
Schlumberger,Ltd. 19,500 927,615
Total Energy 4,112,094
Financials -15.9%
Allstate Corp.,The 20,000 713,000
American Express Co. 30,000 1,254,300
American International
Group,Inc. 66,100 3,647,398
Citigroup,Inc. 77,100 3,299,880
Fannie Mae 12,600 849,744
Goldman Sachs Group,Inc. 18,600 (2) 1,557,750
US Bancorp 30,000 735,000
Washington Mutual,Inc. 20,000 826,000
Wells Fargo &Co. 36,900 1,859,760
Willis Group Holdings,Ltd.* 20,000 615,000
XL Capital Ltd. 10,200 846,600
Total Financials 16,204,432
Health Care - 20.9%
Amgen,Inc.* 35,900 2,385,196
Anthem,Inc.* 15,000 1,157,250
Boston Scientific Corp.* 20,100 (2) 1,228,110
Cardinal Health,Inc. 45,000 2,893,500
Forest Laboratories,Inc.* 20,900 1,144,275
Genentech,Inc.* 6,600 475,992
Gilead Sciences,Inc.* 9,300 516,894
Martek Biosciences Corp.* 11,100 476,634
Medtronic,Inc. 34,500 1,654,965
Pfizer,Inc. 97,900 3,343,285
Stryker Corp. 5,000 346,850
Teva Pharmaceutical Ind.,
Ltd.,Sponsored ADR 31,000 (2) 1,764,830
UnitedHealth Group,Inc. 10,000 502,500
WellPoint Health
Networks, Inc.* 29,500 2,486,850
Zimmer Holdings,Inc.* 22,000 991,100
Total Health Care 21,368,231
Industrials -5.7%
3MCo. 20,300 (2) 2,618,294
American Power Conversion
Corp.* 38,500 600,215
General Electric Co. 50,000 1,434,000
United Parcel Service,
Inc.,Class B 18,900 1,203,930
Total Industrials 5,856,439
Information Technology -25.9%
Analog Devices,Inc.* 13,000 452,660
Broadcom Corp.,Class A* 48,900 (2) 1,218,099
Cisco Systems,Inc.* 64,900 1,083,181
Dell Computer Corp.* 153,600 4,909,056
Diebold,Inc. 19,200 830,400
EMC Corp.* 68,900 721,383
First Data Corp. 12,600 522,144
Fiserv,Inc.* 45,000 1,602,450
Intel Corp. 60,500 1,257,432
International Business
Machines Corp. 15,500 1,278,750
Intuit,Inc.* 17,000 757,010
Linear Technology Corp. 14,000 450,940
Maxim Integrated
Products,Inc.* 30,200 1,032,538
McData Corp.,Class A* 90,000 (2) 1,320,300
Microchip Technology,Inc. 40,000 (2) 985,200
Microsoft Corp.* 101,800 2,607,098
Nokia Corp.,Sponsored ADR 59,100 971,013
QLogic Corp.* 11,500 (2) 555,795
Symantec Corp.* 20,200 885,972
Texas Instruments,Inc. 47,800 841,280
Zebra Technologies,Corp.* 29,000 (2) 2,180,510
Total Information Technology 26,463,211
Telecommunication Services -1.2%
China Telecom Corp.,Ltd. 54,700 (2) 1,243,878
Total Common Stocks
(cost $90,400,314) 95,731,376
--------------
Other Investment Companies -23.0% (1)
Bank of New York Institutional
Cash Reserves Fund, 1.25% (3) 17,403,596 17,403,596
JPMorgan Prime Money Market
Fund,Institutional Class
Shares, 1.03% 5,587,444 5,587,444
Bank of America Master Trust (3) 500,804 500,804
Total Other Investment Companies
(cost $23,491,844) 23,491,844
Total Investments -116.7%
(cost $113,892,158) 119,223,220
--------------
Other Assets,less Liabilities -(16.7)% (17,050,537)
--------------
Net Assets -100.0% $ 102,172,683
==============
</Table>
The accompanying notes are an integral part of these financial
statements.
8
<Page>
Managers Small Company Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (unaudited)
<Table>
Security Description Shares Value
- ---------------------------------------------------------
Common Stocks -98.5%
Consumer Discretionary -27.7%
Christopher & Banks Corp.* 7,725 $ 285,748
Cost Plus,Inc.* 11,650 415,438
Fred 's,Inc. 6,230 231,630
Garmin,Ltd.* 6,150 (2) 245,200
Gentex Corp.* 9,150 280,082
Getty Images,Inc.* 1,850 76,405
Harman International
Industries,Inc. 1,700 (2) 134,538
Hibbett Sporting Goods,Inc.* 2,100 69,174
Insight Enterprises,Inc.* 24,375 245,213
Michaels Stores,Inc.* 8,050 306,383
O'Reilly Automotive,Inc.* 4,850 161,942
PETsMART,Inc.* 20,000 333,400
Radio One,Inc.* 8,350 (2) 148,380
Rare Hospitality
International,Inc.* 7,350 240,198
Red Robin Gourmet Burgers* 4,300 81,528
Ruby Tuesday,Inc. 11,200 276,976
Select Comfort Corp.* 10,200 167,076
Tractor Supply Co.* 5,300 253,075
Whitehall Jewellers,Inc.* 5,000 45,350
Total Consumer Discretionary 3,997,736
Consumer Staples -5.3%
American Italian Pasta Co.* 3,500 145,775
Constellation Brands,Inc.* 5,650 177,410
Performance Food Group Co.* 8,150 (2) 301,550
Sensient Technologies Corp. 5,950 136,791
Total Consumer Staples 761,526
Energy -6.4%
Evergreen Resources,Inc.* 3,850 (2) 209,094
National-Oilwell,Inc.* 5,100 112,200
Niko Resources,Ltd. 3,350 65,995
Offshore Logistics,Inc.* 6,800 147,900
Ultra Petroleum Corp.* 24,900 321,459
XTO Energy,Inc. 3,266 65,679
Total Energy 922,327
Financials -1.9%
Asta Funding,Inc.* 3,500 84,000
Sterling Bancshares,Inc. 7,400 96,792
Umpqua Holdings Corp. 4,450 84,506
Total Financials 265,298
Health Care -13.5%
Amsurg Corp.* 4,550 (2) 138,775
Barr Laboratories,Inc.* 4,575 299,663
Charles River Laboratories
International,Inc.* 1,700 54,706
Community Health Systems,Inc.* 9,250 (2) 178,433
Computer Programs &
Systems,Inc.* 2,600 (2) 52,026
Covance,Inc.* 8,500 153,850
Haemonetics Corp.* 8,300 155,210
PSS World Medical,Inc.* 13,450 77,338
Resmed,Inc.* 5,650 221,480
Respironics,Inc.* 5,600 210,112
Select Medical Corp.* 6,100 151,462
SICOR,Inc.* 12,750 259,335
Total Health Care 1,952,390
Industrials -18.8%
Actuant Corp.,Class A* 5,130 242,752
Chicago Bridge & Iron Co. N.V. 3,350 75,978
ChoicePoint,Inc.* 7,950 274,434
Donaldson Co.,Inc. 4,700 208,915
EDO Corp. 2,750 48,675
ElkCorp 8,850 199,125
EMCOR Group,Inc.* 2,550 125,868
First Consulting Group,Inc.* 12,250 57,208
Lydall,Inc.* 5,400 57,780
Mobile Mini,Inc.* 8,300 (2) 135,538
MSC Industrial Direct
Co.,Class A* 10,250 183,475
Navigant Consulting,Inc.* 12,150 143,978
NCI Building Systems,Inc.* 9,700 161,990
P.A.M.Transportation
Services,Inc.* 4,150 104,248
Pentair,Inc. 9,250 361,305
Sylvan Learning Systems,Inc.* 6,750 154,170
UTI Worldwide,Inc. 5,600 174,664
Total Industrials 2,710,103
Information Technology -23.3%
Acxiom Corp.* 20,150 304,064
Adtran,Inc.* 3,500 (2) 179,515
Alliance Data Systems Corp.* 5,500 128,700
Avocent Corp.* 6,900 206,516
Benchmark Electronics,Inc.* 7,500 230,700
Ceridian Corp.* 13,150 223,156
Digitas,Inc.* 11,200 55,552
ebookers PLC,Sponsored ADR* 5,150 (2) 82,668
Excel Technology,Inc.* 5,700 130,130
Fair Isaac Corp. 5,662 291,310
FEI Co.* 8,850 166,026
Intrado,Inc.* 3,650 57,634
Keane,Inc.* 13,950 190,139
Macromedia,Inc.* 7,500 157,800
MAXIMUS,Inc.* 5,150 (2) 142,295
Pinnacle Systems,Inc.* 7,200 77,040
Polycom,Inc.* 12,650 175,329
Progress Software Corp.* 5,850 121,270
Rogers Corp.* 6,650 221,445
Symantec Corp.* 1,550 67,982
Tekelec* 10,150 114,695
WatchGuard Technologies,Inc.* 7,350 33,810
Total Information Technology 3,357,776
Materials -1.6%
MacDermid,Inc. 8,950 235,385
Total Common Stocks
(cost $12,030,182) 14,202,541
----------
Other Investment Companies -13.7%(1)
Bank of New York Institutional Cash
Reserves Fund,1.25% (3) 1,616,055 1,616,055
JPMorgan Prime Money Market
Fund,Institutional Class
Shares, 1.03% 357,514 357,514
Total Other Investment Companies
(cost $1,973,569) 1,973,569 1,973,569
Total Investments -112.2%
(cost $14,003,751) 16,176,110
----------
Other Assets,less Liabilities -(12.2)% (1,754,808)
----------
Net Assets -100.0% $ 14,421,302
============
</Table>
The accompanying notes are an integral part of these financial
statements.
9
<Page>
Managers Special Equity Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (unaudited)
<Table>
Security Description Shares Value
- ---------------------------------------------------------
Common Stocks -92.8%
Consumer Discretionary -24.4%
1-800-FLOWERS.COM,Inc.* 99,100 $ 816,584
Aaron Rents,Inc. 186,700 (2) 4,816,860
Acres Gaming,Inc. (5)* 492,100 (2) 5,541,046
Alliance Gaming Corp.* 673,400 (2) 12,733,994
American Eagle
Outfitters,Inc.* 631,700 (2) 11,585,378
Applebee's International,Inc. 258,750 (2) 8,132,513
Barnes & Noble,Inc.* 201,600 4,646,880
Beasley Broadcasting
Group,Inc.* 237,000 3,242,160
Bebe Stores,Inc.* 215,500 (2) 4,122,515
Big Lots,Inc.* 465,252 6,997,390
Borders Group,Inc.* 287,600 5,064,636
California Pizza
Kitchen, Inc.* 193,100 (2) 4,151,650
CEC Entertainment,Inc.* 152,200 (2) 5,620,746
Cheesecake Factory,The* 111,600 (2) 4,005,324
Copart,Inc.* 434,900 4,109,805
COX Radio,Inc.,Class A* 368,600 8,518,346
Crown Media Holdings,Inc.,
Class A* 752,200 (2) 3,106,586
Dick's Sporting Goods,Inc.* 141,600 5,193,888
Dillard 's,Inc.,Class A 1,895,500 25,532,385
DR Horton,Inc. 162,250 (2) 4,559,225
Duckwall-ALCO Stores,Inc.5 * 247,800 2,688,878
Electronics Boutique
Holdings Corp.* 161,200 (2) 3,725,332
Emmis Communications Corp.,
Class A* 1,203,600 (2) 27,622,620
Fred 's,Inc. 161,600 6,008,288
Furniture Brands International,
Inc.* 442,300 11,544,030
Gart Sports Co.* 178,000 (2) 5,048,080
Gaylord Entertainment Co.,
Class A* 226,233 4,427,380
Genesco,Inc.* 524,000 9,274,800
Getty Images,Inc.* 590,800 (2) 24,400,040
Guitar Center,Inc.* 150,900 (2) 4,376,100
Gymboree Corp.* 247,600 (2) 4,154,728
Hancock Fabrics,Inc.298,900 4,827,235
Harman International
Industries,Inc. 182,200 (2) 14,419,308
Hughes Supply,Inc. 168,600 5,850,420
IMPCO Technologies,Inc.* 100,800 (2) 620,928
Insight Communications Co.,
Inc.,Class A* 680,400 8,967,672
Insight Enterprises,Inc.* 293,100 (2) 2,948,586
International Speedway Corp.,
Class A 446,700 17,649,116
Jill Group,Inc.,The* 291,700 4,912,228
JOS A Bank Clothiers,Inc.* 190,900 (2) 6,381,787
Kenneth Cole Productions,Inc.* 42,550 829,300
Kerzner International,Ltd.* 271,100 8,732,131
Krispy Kreme Doughnuts,Inc.* 238,300 (2) 9,813,194
La Quinta Corp.* 845,000 3,641,950
Leapfrog Enterprises,Inc.* 115,700 (2) 3,680,417
Linens 'N Things,Inc.* 466,900 (2) 11,023,509
Michaels Stores,Inc.* 298,900 11,376,134
Monaco Coach Corp.* 403,200 (2) 6,181,056
NetFlix,Inc.* 169,600 (2) 4,333,280
P.F.Chang 's China
Bistro,Inc.* 310,900 (2) 15,299,389
Panera Bread Co.,Class A* 139,500 (2) 5,580,000
Penn National Gaming,Inc.* 345,000 7,089,750
PETCO Animal Supplies,Inc.* 164,500 (2) 3,576,230
Pier 1 Imports,Inc. 776,000 15,830,400
Polaris Industries,Inc. 152,300 (2) 9,351,220
Proquest Co.* 170,500 (2) 4,398,900
Quiksilver,Inc.* 175,400 (2) 2,892,346
Ross Stores,Inc. 390,000 16,668,600
Ruby Tuesday,Inc. 894,800 (2) 22,128,404
Saks,Inc.* 1,023,000 9,923,100
Salem Communications Corp.,
Class A* 482,900 9,663,312
School Specialty,Inc.* 386,003 (2) 10,985,645
Stage Stores,Inc.* 164,794 (2) 3,872,659
Standard-Pacific Corp. 200,000 6,632,000
TJX Cos.,Inc. 160,000 3,014,400
Too,Inc.* 658,300 13,330,575
Toro Co. 235,600 9,365,100
Toys "R "Us,Inc.* 965,800 (2) 11,705,496
Tractor Supply Co.* 160,500 7,663,875
United Rentals,Inc.* 417,500 5,799,075
Urban Outfitters,Inc.* 172,200 (2) 6,181,980
Visteon Corp. 2,688,600 (2) 18,470,682
West Marine,Inc.* 177,400 3,106,274
Total Consumer Discretionary 584,485,850
Consumer Staples -1.6%
BJ 's Wholesale Club,Inc.* 504,000 (2) 7,590,240
Del Monte Foods Co.* 750,200 6,631,768
Duane Reade,Inc.* 589,200 (2) 8,690,700
Pathmark Stores,Inc.* 428,500 3,278,025
Sensient Technologies Corp. 241,000 5,540,590
Stake Technology,Ltd.* 346,400 (2) 2,445,584
Whole Foods Market,Inc.* 57,200 (2) 2,718,716
Wild Oats Markets Inc* 193,700 2,111,330
Total Consumer Staples 39,006,953
Energy -3.4%
Berry Petroleum Co.,Class A 297,600 5,341,920
ConocoPhillips 60,000 3,288,000
Global Industries,Ltd.* 1,320,400 6,364,328
Houston Exploration Co.* 97,900 3,397,130
Key Energy Services,Inc.* 590,900 (2) 6,334,448
Newfield Exploration Co.* 121,500 4,562,325
OMI Corp.* 499,000 3,073,840
Overseas Shipholding
Group,Inc. 1,040,000 22,890,400
Pogo Producing Co. 484,200 20,699,550
Remington Oil & Gas Corp.* 246,900 4,538,022
Total Energy 80,489,963
Financials -12.1%
Alabama National Bancorp 64,400 3,122,112
AMB Property Corp. 203,000 5,718,510
American Financial
Realty Trust 32,100 478,611
American National Insurance Co.25,750 2,224,620
American Physicians Cap.,Inc.* 26,600 645,050
Bank of Hawaii Corp. 203,600 6,749,340
Banknorth Group,Inc. 355,482 9,071,901
Banner Corp. 210,540 4,313,965
Brandywine Realty Trust 206,500 5,084,030
Brown &Brown,Inc. 265,100 (2) 8,615,750
Charter One Financial,Inc. 227,946 7,107,356
Chittenden Corp. 396,500 10,844,275
Commerce Bancshares,Inc. 299,159 11,652,242
Delphi Financial Group,Inc.,
Class A 242,500 11,349,000
Downey Financial Corp. 390,880 16,143,344
Equity Inns,Inc. 1,028,500 7,096,650
FelCor Lodging Trust,Inc. 2,413,000 18,942,050
First Niagara Financial
Group,Inc. 514,350 7,180,326
Harbor Florida Bancshares,Inc.224,900 5,388,604
HCC Insurance Holdings,Inc. 244,800 7,238,736
Hibernia Corp.,Class A 866,500 15,735,640
Hilb,Rogal &Hamilton Co. 305,500 10,399,220
Infinity Property &Casualty
Corp.* 398,989 9,432,100
IPC Holdings,Ltd.* 206,600 6,921,100
iStar Financial,Inc. 389,700 14,224,050
MCG Capital Corp. 413,128 (2) 5,990,356
Meristar Hospitality Corp. 2,250,000 11,565,000
National Western Life Insurance
Co.,Class A* 12,000 1,325,160
Peoples Bank 48,200 1,397,318
Provident Financial Group,Inc.281,000 (2) 7,202,030
</Table>
The accompanying notes are an integral part of these financial
statements.
10
<Page>
Managers Special Equity Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (continued)
<Table>
Security Description Shares Value
- ---------------------------------------------------------
Financials (continued)
Raymond James Financial,Inc. 159,400 $5,268,170
Reinsurance Group Of America 172,200 (2) 5,527,620
Riverview Bancorp,Inc. 100,000 1,829,000
Scottish Annuity & Life
Holdings,Ltd. 436,900 (2) 8,829,749
Seacoast Financial
Services Corp. 327,500 6,484,500
Selective Insurance Group,Inc.233,774 5,856,039
St.Joe Co.,The 111,500 3,478,800
Sterling Financial Corp.* 260,902 6,355,573
Timberland Bancorp,Inc. 95,400 2,156,994
Triad Guaranty,Inc.* 12,864 488,189
Webster Financial Corp. 279,800 10,576,440
Total Financials 290,009,520
Health Care -10.6%
Advanced Neuromodulation
Systems,Inc.* 254,400 13,170,288
Advisory Board Co.,The* 169,700 6,876,244
American Healthways,Inc.* 235,500 (2) 8,506,260
American Pharmaceutical
Partners, Inc.* 162,200 5,498,580
Angiotech Pharmaceuticals,
Inc.* 117,000 (2) 4,766,580
Apria Healthcare Group,Inc.* 217,500 5,411,400
Arthrocare Corp.* 612,900 10,272,204
Atherogenics,Inc.* 320,800 4,789,544
Biosite,Inc.* 183,500 (2) 8,826,350
Cardinal Health,Inc. 164,842 10,599,341
CIMA Labs,Inc.* 242,400 6,518,136
DaVita,Inc.* 273,800 7,332,364
Eclipsys Corp.* 575,300 6,006,132
Exact Sciences Corp.* 164,800 (2) 1,806,208
Exelixis,Inc.* 1,049,600 7,284,224
Gene Logic,Inc.* 490,400 2,927,688
Gen-Probe,Inc. 147,900 6,044,673
Harvard Bioscience,Inc.* 1,067,100 (2) 4,054,980
Health Net,Inc.* 398,700 13,137,165
IMS Health,Inc. 820,081 (2) 14,753,257
Integra LifeSciences Holdings
Corp.* 196,700 (2) 5,188,946
Inveresk Research Group,Inc.* 114,500 2,059,855
LabOne,Inc.* 136,400 2,940,784
Lincare Holdings,Inc.* 62,100 (2) 1,956,771
Martek Biosciences Corp.* 114,800 (2) 4,929,512
Medcath Corp.* 245,800 (2) 1,437,930
Medicines Co.* 177,500 3,494,975
Myriad Genetics,Inc.* 231,300 3,147,993
Odyssey HealthCare,Inc.* 191,000 (2) 7,067,000
Owens & Minor,Inc. 213,300 4,767,255
Pharmaceutical Resources,Inc.*319,900 15,566,334
Priority Healthcare
Corp.,Class B* 229,122 4,250,213
Quidel Corp.* 449,200 2,794,024
Select Medical Corp.* 815,700 20,253,831
SurModics,Inc.* 131,100 (2) 3,998,550
Triad Hospitals,Inc.* 371,564 9,222,218
United Surgical Partners
International,Inc.* 138,600 (2) 3,130,974
Universal Health Services,Inc.,
Class B* 120,000 4,754,400
Zoll Medical Corp.* 164,800 5,530,688
Total Health Care 255,073,871
Industrials -12.8%
AAR Corp. 259,200 1,829,952
Airborne,Inc. 643,200 13,442,880
Albany International Corp. 273,700 7,499,380
Axsys Technologies,Inc.(5) * 466,000 4,492,240
Brink 's Co.,The 420,241 6,122,911
Career Education Corp.* 201,100 (2) 13,759,262
CNF,Inc. 68,100 1,728,378
Corporate Executive Board Co.*347,100 (2) 14,067,963
CoStar Group,Inc.* 346,500 10,346,490
Crane Co. 273,600 6,191,568
EGL,Inc.* 163,500 (2) 2,485,200
Engineered Support
Systems,Inc. 119,700 5,009,445
First Consulting Group,Inc.* 498,400 2,327,528
Florida East Coast
Industries,Inc., Class B 25,760 641,424
Flowserve Corp.* 407,900 8,023,393
FTI Consulting,Inc.* 100,100 (2) 2,499,497
Genesee & Wyoming,Inc.,
Class A* 204,800 4,212,736
IDEX Corp. 197,500 7,157,400
Interpool,Inc. 336,200 5,520,404
Ionics,Inc.* 558,500 (2) 12,493,645
ITT Educational
Services,Inc.* 1,493,600 43,687,800
JLG Industries,Inc. 388,600 642,480
Kennametal,Inc. 233,800 7,911,792
Kroll,Inc.* 537,300 (2) 14,539,338
Labor Ready, Inc.* 454,000 3,255,180
Landstar System, Inc.* 47,236 2,968,783
Lydall,Inc.* 234,000 2,503,800
Michael Baker Corp.* 305,400 3,267,780
Mobile Mini,Inc.* 120,000 (2) 1,959,600
Moore Wallace,Inc.* 502,000 7,369,360
MSC Industrial Direct
Co.,Class A* 362,300 6,485,170
Nuco2,Inc.* 301,300 (2) 2,835,232
Portfolio Recovery
Associates,Inc.* 131,000 (2) 4,085,890
Reliance Steel & Aluminum Co. 195,800 4,053,060
Sea Containers, Ltd., Class A 137,000 (2) 1,560,430
Sea Containers,Ltd.,Class B* 13,890 163,902
Sequa Corp.,Class A* 99,600 3,416,280
Sequa Corp.,Class B* 38,300 1,584,088
Skywest,Inc. 474,800 9,049,688
Sourcecorp,Inc.* 39,000 842,400
Stericycle,Inc.* 167,400 (2) 6,441,552
Stewart &Stevenson
Services, Inc. 537,400 8,464,050
Tecumseh Products Co.,Class B 101,000 3,734,980
TeleTech Holdings,Inc.* 485,400 2,053,242
Thomas &Betts Corp.* 552,400 7,982,180
United Stationers, Inc.* 206,600 7,472,722
Volt Information
Sciences, Inc.* 69,350 946,628
Waste Connections,Inc.* 212,200 (2) 7,437,610
Werner Enterprises,Inc. 265,378 5,626,014
World Fuel Services Corp. 86,600 2,129,494
Total Industrials 306,322,221
Information Technology -19.9%
Adtran,Inc.* 149,300 (2) 7,657,597
Advanced Fibre Communications,
Inc.* 124,900 2,032,123
Advanced Micro
Devices, Inc.* 2,770,500 (2) 17,758,905
American Management Systems,
Inc.* 404,800 5,780,544
Anaren Microwave, Inc.* 879,600 8,241,852
Applied Films Corp.* 119,300 3,087,484
Artisan Components,Inc.* 190,000 4,295,900
ATMI,Inc.* 424,500 (2) 10,599,765
Avid Technology,Inc.* 192,200 (2) 6,740,454
BearingPoint,Inc.* 1,004,200 (2) 9,690,530
Benchmark Electronics,Inc.* 135,200 (2) 4,158,752
Borland Software Corp.* 719,200 7,026,584
Cabot Microelectronics Corp.* 172,500 (2) 8,706,075
Centra Software,Inc.* 548,300 (2) 1,699,730
Ceridian Corp.* 366,200 6,214,414
CheckFree Corp.* 80,700 (2) 2,246,688
Checkpoint Systems,Inc.* 359,900 5,092,585
Cognex Corp.* 167,200 (2) 3,736,920
Cognizant Technology Solutions
Corp.* 389,793 (2) 9,495,357
Cree,Inc.* 257,600 (2) 4,193,728
Cymer,Inc.* 186,600 (2) 5,889,096
Digital River,Inc.* 143,000 (2) 2,759,900
Documentum,Inc.* 739,600 (2) 14,547,932
</Table>
The accompanying notes are an integral part of these financial
statements.
11
<Page>
Managers Special Equity Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (continued)
<Table>
Security Description Shares Value
- ---------------------------------------------------------
Information Technology
(continued)
Dupont Photomasks,Inc.* 202,000 (2) $3,803,660
Electronics for Imaging,Inc.* 387,700 7,866,433
Emulex Corp.* 325,200 (2) 7,404,804
Entegris,Inc.* 180,200 2,421,888
Exar Corp.* 35,000 554,050
F5 Networks,Inc.* 260,200 (2) 4,384,370
Fairchild Semiconductor
International,Inc.* 968,000 (2) 12,380,720
Formfactor,Inc. 20,900 (2) 369,930
Forrester Research,Inc.* 58,700 960,332
Foundry Networks,Inc.* 548,000 7,891,200
Henry (Jack) & Associates,Inc.292,000 5,194,680
Hyperion Solutions Corp.* 270,800 (2) 9,142,208
Infocrossing,Inc.* 103,300 (2) 727,232
International Rectifier Corp.*233,800 6,270,516
Intersil Corp.,Class A* 189,832 (2) 5,051,430
Inter-Tel, Inc. 72,700 1,542,694
Itron,Inc.* 180,000 3,880,800
Ixia* 2,177,700 14,002,611
IXYS Corp.* 660,600 5,264,982
Kemet Corp.* 489,300 4,941,930
Kulicke & Soffa
Industries,Inc.* 347,900 (2) 2,223,081
LTX Corp.* 271,700 2,342,054
Macromedia,Inc.* 214,700 4,517,288
Manhattan Associates,Inc.* 323,200 (2) 8,393,504
Mantech International Corp.,
Class A* 181,200 3,475,416
Marvell Technology Group Ltd.*291,200 (2) 10,008,544
McData Corp.* 463,400 (2) 6,719,300
Mercury Interactive Corp.* 227,900 (2) 8,799,219
Mettler Toledo
International,Inc.* 110,500 4,049,825
Micrel,Inc.* 762,100 (2) 7,918,219
Micromuse,Inc.* 401,400 3,207,186
Neoware Systems,Inc.* 269,100 (2) 4,127,994
NetScreen Technologies,Inc.* 280,000 (2) 6,314,000
Newport Corp.* 103,300 1,528,840
O2Micro International,Ltd.* 173,900 (2) 2,801,529
Omnivision Technologies,Inc.* 201,300 (2) 6,280,560
OSI Systems,Inc.* 625,300 (2) 10,042,318
Parametric Technology Corp.* 1,100,200 3,355,610
Park Electrochemical Corp. 243,000 4,847,850
Pemstar,Inc.* 299,600 (2) 1,255,324
Photon Dynamics,Inc.* 160,000 (2) 4,420,800
Photronics,Inc.* 134,200 2,341,790
Planar Systems,Inc.* 205,700 4,023,492
PMC -Sierra,Inc.* 505,100 5,924,823
Power Integrations,Inc.* 222,200 (2) 5,403,904
Primus Knowledge
Solutions,Inc.* 223,300 292,523
Reynolds & Reynolds Co.,The,
Class A 150,000 4,284,000
Riverstone Networks,Inc.* 1,772,706 2,091,793
Rogers Corp.* 153,400 5,108,220
SafeNet,Inc.* 152,800 (2) 4,275,344
Sanchez Computer Associates,
Inc.* 538,400 2,799,680
Sandisk Corp.* 377,600 (2) 15,236,160
Silicon Laboratories,Inc.* 271,900 (2) 7,243,416
Skyworks Solutions,Inc.* 763,169 (2) 5,166,654
Sohu.com,Inc.* 115,000 3,928,400
Synopsys,Inc.* 215,000 (2) 13,297,750
Tech Data Corp.* 215,700 (2) 5,761,347
Tier Technologies,Inc.* 396,900 3,075,975
Tollgrade Communications,Inc.*250,900 4,679,285
Ultratech Stepper,Inc.* 328,100 6,066,569
Varian Semiconductor Equipment
Associates,Inc.* 151,000 4,493,760
Verint Systems,Inc.* 165,100 4,195,191
Vishay Intertechnology,Inc.* 250,000 3,300,000
Total Information Technology 475,327,922
Materials -4.9%
Airgas,Inc.* 635,800 10,649,650
AK Steel Holding Corp.* 4,066,800 (2) 14,721,816
Longview Fibre Co. 1,026,900 8,420,580
Martin Marietta
Materials,Inc. 52,100 (2) 1,751,081
Massey Energy Co. 1,500,000 19,725,000
Minerals Technologies,Inc. 204,800 9,965,568
RTI International Metals,Inc.*397,030 4,299,835
Scotts Co.,The,Class A* 143,300 7,093,350
Spartech Corp. 293,500 6,225,135
Stillwater Mining Co.* 1,592,300 8,184,422
United States Steel Corp. 1,425,100 (2) 23,328,887
USEC,Inc. 505,000 3,545,100
Total Materials 117,910,424
Telecommunication Services -0.4%
At Road,Inc.* 87,000 (2) 950,040
General Communication,Inc.,
Class A* 878,100 7,604,346
Total Telecommunication Services 8,554,386
Utilities -2.7%
Avista Corp. 1,202,200 17,011,130
El Paso Electric Co.* 808,900 9,973,737
PNM Resources,Inc. 31,000 829,250
Reliant Resources,Inc.* 3,849,300 23,596,209
Sierra Pacific Resources 2,096,800 (2) 12,454,992
Texas Genco Holdings,Inc.* 75,900 1,764,675
Total Utilities 65,629,993
Total Common Stocks
(cost $1,897,833,097) 2,222,811,103
--------------
Short-Term Investments -26.5%1
Other Investment Companies -20.4%
AIM Liquid Assets, 1.15% 27,166 27,166
Bank of New York
Institutional Cash Reserves
Fund, 1.25% (3) 309,874,978 309,874,978
JPMorgan Liquid Assets Money
Market Fund, Institutional
Class shares, 1.10% 24,959,350 24,959,350
JPMorgan Prime Money Market
Fund,Institutional Class
Shares, 1.03% 154,539,889 154,539,889
Total Other Investment Companies 489,401,383
------------
Principal
Amount
------------
Other Short-Term Investments -6.1% (3)
due 07/01/03 to 08/15/03,
1.02% to 1.43% $ 145,223,684 145,223,684
Total Short-Term Investments
(cost $634,625,067) 634,625,067
Total Investments -119.3%
(cost $2,532,458,164) 2,857,436,170
--------------
Other Assets, less Liabilities -(19.3)% (462,884,022)
--------------
Net Assets -100.0% $2,394,552,148
==============
</Table>
The accompanying notes are an integral part of these financial
statements.
12
<Page>
Managers International Equity Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (unaudited)
<Table>
Security Description Shares Value
- ---------------------------------------------------------
Common Stocks -93.4%
Consumer Discretionary -19.2%
Autoliv,Inc.(Sweden) 93,700 $ 2,522,483
British Sky Broadcasting PLC
(United Kingdom) 219,405 2,431,156
DaimlerChrylser Ag (Germany) 30,800 1,075,229
Electrolux AB,
Series B (Sweden) 47,600 939,519
EMI Group
PLC (United Kingdom) 766,800 1,543,697
Eniro AB (Sweden) 158,800 1,358,884
George Wimpey PLC
(United Kingdom) 154,000 749,658
GUS PLC (United Kingdom) 135,501 1,518,212
Honda Motor Co.,Ltd.(Japan) 70,000 2,652,509
Intercontinental Hotels Group
PLC (United Kingdom) 128,135 909,194
Magna International,
Inc.(Canada) 34,000 2,270,337
Medion AG (Germany) 31,600 (2) 1,373,866
Modern Times
Group AB (Sweden) 163,000 2,504,575
News Corp.,Ltd.,The
(Australia) 478,700 3,595,652
Nissan Motor Co.,Ltd.(Japan) 438,000 4,187,583
Pearson PLC (United Kingdom) 172,176 1,608,086
Persimmon PLC (United Kingdom) 94,800 746,186
Peugeot SA (France) 46,900 2,278,189
Pioneer Corp.(Japan) 39,300 883,698
Porsche AG pfd (Germany) 5,400 2,288,214
Reed Elsevier PLC
(United Kingdom) 117,476 977,497
Societe Television
Francaise 1 (France) 53,000 1,631,125
Sogecable,S.A.(Spain) 93,900 (2) 1,770,579
Toyota Motor Corp.(Japan) 78,700 2,038,368
Volkswagen AG (Germany) 72,500 3,064,647
Whitbread PLC (United Kingdom)210,000 2,349,466
Yamaha Corp.(Japan) 44,300 607,268
Total Consumer Discretionary 49,875,877
Consumer Staples -2.5%
Diageo PLC (United Kingdom) 130,817 1,396,654
Foster's Group,
Ltd.(Australia) 471,600 1,331,533
Molson, Inc. (Canada) 65,300 1,753,668
Nippon Meat Packers,
Inc.(Japan) 67,000 632,755
Unilever PLC (United Kingdom) 168,568 1,342,124
Total Consumer Staples 6,456,734
Energy -8.3%
CNOOC,Ltd.(Hong Kong) 1,444,000 2,129,479
EnCana Corp.(Canada) 53,434 2,033,146
Eni SpA (Italy) 250,700 (2) 3,791,549
Frontline,Ltd.(Bermuda) 88,500 1,262,814
Lukoil, Sponsored
ADR (Russia)(a) 5,800 458,200
Petro-Canada (Canada) 52,000 2,065,075
Petroleo Brasileiro SA,
Sponsored ADR (Brazil) 121,000 2,148,960
Saipem SpA (Italy) 169,900 1,272,089
Shell Transport & Trading Co.,
PLC (United Kingdom) 287,784 1,899,533
Talisman Energy,Inc.(Canada) 61,800 2,784,645
Total SA (France) 12,136 1,834,037
Total Energy 21,679,527
Financials -19.8%
Allied Irish Banks
PLC (Ireland) 36,600 550,171
AMB Generali Holding AG
(Germany) 15,400 1,009,795
Assurances Generales de France
(France) 90,400 (2) 3,723,715
Axa (France) 126,600 1,964,109
Bank of East Asia
Ltd.(Hong Kong) 542,000 1,070,356
Bank of Ireland (Ireland) 46,100 556,391
Bank of Nova Scotia (Canada) 89,964 3,979,272
Barclays PLC (United Kingdom) 408,300 3,031,881
BNP Paribas (France) 35,900 1,824,250
Credit Agricole SA (France) 16,400 311,687
Daiwa Securities
Group, Inc.(Japan) 66,000 379,263
DBS Group Holdings,Ltd.
(Singapore) 159,000 929,983
Deutsche Boerse AG (Germany) 36,270 (2) 1,921,355
Great-West Lifeco,Inc.(Canada) 42,600 1,222,741
Hang Seng Bank Ltd.(Hong Kong) 85,800 907,715
Hannover Rueckversicherungs -
AG (Germany) 7,300 188,617
HSBC Holdings PLC (Hong Kong) 7,224 85,690
Kookmin Bank (South Korea) 69,074 2,081,761
Mitsubishi Estate
Co., Ltd. (Japan) 200,000 1,354,154
Mitsui Fudosan
Co., Ltd. (Japan) 183,000 1,168,944
Nikko Cordial Corp.(Japan) 125,000 501,770
Nomura Holdings,Inc.(Japan) 118,000 1,497,664
Promise Co.,Ltd.(Japan) 37,500 1,402,249
QBE Insurance Group,Ltd.
(Australia) 147,600 922,568
Royal & Sun Alliance Insurance
Group PLC (United Kingdom) 1,229,300 2,814,564
Royal Bank of Canada (Canada) 44,000 1,858,120
Royal Bank of Scotland Group
PLC (United Kingdom) 63,530 1,782,165
Shinhan Financial Group Co.,
Ltd.(South Korea) 161,000 1,678,066
Societe Generale (France) 29,300 1,857,305
Sun Hung Kai Properties,Ltd.
(Hong Kong) 196,000 990,286
Swiss Reinsurance
(Switzerland) 20,895 1,157,705
Takefuji Corp. (Japan) 41,800 2,168,761
UBS AG (Switzerland) 47,000 2,614,485
Willis Group Holdings,Ltd.
(United Kingdom) 62,400 1,918,800
Total Financials 51,426,358
Health Care -5.5%
Alcon, Inc. (Switzerland)* 20,400 932,280
Amersham PLC (United Kingdom) 157,500 1,181,880
Aventis SA (France) 22,164 1,218,650
Aventis SA (France) 30,900 1,700,048
Cochlear Ltd.(Australia) 4,800 103,978
GlaxoSmithKline PLC
(United Kingdom) 112,005 2,260,394
Novartis AG (Switzerland) 29,757 1,177,495
Schering AG (Germany) 23,879 (2) 1,167,612
Serono SA (Switzerland) 3,580 2,103,784
Smith & Nephew PLC
(United Kingdom) 179,300 1,030,366
Yamanouchi Pharmaceutical
Co., Ltd. (Japan) 59,000 1,537,955
Total Health Care 14,414,442
Industrials -8.5%
Adecco SA (Switzerland) 20,500 844,487
Amadeus Global Travel
Distribution SA,
Class A (Spain) 225,800 1,293,901
Autoroutes du sud de la
France (France) 45,905 1,341,604
BAA PLC (United Kingdom) 17,432 141,093
Canadian National Railway Co.
(Canada) 12,900 622,554
Capita Group PLC
(United Kingdom) 258,300 963,281
Dai Nippon Printing Co.,Ltd.
(Japan) 142,900 1,511,414
Empresa Brasileira de
Aeronautica SA (Brazil) 41,000 783,100
FANUC,Ltd.(Japan) 34,800 1,724,422
Grupo Dragados SA (Spain) 146,958 2,958,365
Hutchison Whampoa,Ltd.
(Hong Kong) 314,000 1,912,633
</Table>
The accompanying notes are an integral part of these financial
statements.
13
<Page>
Managers International Equity Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (continued)
<Table>
Security Description Shares Value
- ---------------------------------------------------------
Financials (continued)
Konica Corp.(Japan) 205,700 $2,341,802
Qantas Airways,Ltd.
(Australia) 209,649 459,766
RT Group PLC (United Kingdom) 360,539 309,368
Singapore Airlines Ltd.
(Singapore) 43,000 253,947
Technip-Coflexip sp
ADR (France) 18,600 1,627,588
Thk Co.,Ltd.(Japan) 10,900 146,695
TPG NV (Netherlands) 39,700 689,317
Vinci SA (France) 22,960 1,549,018
Volvo Ab,Class B (Sweden) 20,600 452,920
Total Industrials 21,927,275
Information Technology -7.5%
Canon,Inc.(Japan) 175,500 8,053,342
Compal Electronics,
Inc. (Taiwan) 512,120 (2) 3,432,894
Flextronics International, Ltd.
(Singapore)* 98,700 1,025,493
Fuji Photo Film Co.,
Ltd. (Japan) 49,000 1,416,032
Infineon Technologies AG
(Germany) 151,300 1,462,944
Omron Corp. (Japan) 20,000 337,289
STMicroelectronics
NV (Switzerland) 34,162 (2) 716,342
TDK Corp.(Japan) 21,200 1,046,979
Yahoo Japan Corp. (Japan) 115 1,867,582
Total Information Technology 19,358,897
Materials -15.4%
Alcan,Inc.(Canada) 10,804 334,039
Alumina, Ltd. (Australia) 359,700 981,818
Anglo American Platinum Corp.,
Ltd.,ADR (South Africa) 24,976 786,527
Aracruz Celulose SA (Brazil) 59,300 (2) 1,248,858
Arcelor (Luxembourg) 326,300 (2) 3,799,545
Barrick Gold Corp.(Canada) 23,900 421,977
Bayer AG (Germany) 96,740 2,241,836
BHP Billiton,Ltd.(Australia) 404,200 2,342,104
BOC Group PLC (United Kingdom)110,739 1,420,762
Cemex SA de CV (Mexico) 111,618 (2) 2,487,965
Cia de Minas Buenaventura
SA (Peru) 42,100 1,266,789
DSM NV (Netherlands) 101,200 4,267,365
Gold Fields,
Ltd. (South Africa) 153,300 1,828,373
Goldcorp, Inc. (Canada) 90,500 1,079,006
Harmony Gold Mining Co.,Ltd.
(South Africa) 44,100 578,409
HeidelbergCement AG (Germany) 25,312 558,671
Impala Platinum Holdings,Ltd.
(South Africa) 24,400 (2) 724,526
Inco,Ltd.(Canada) 38,600 810,493
Meridian Gold, Inc. (Canada) 63,400 718,572
Placer Dome, Inc. (Canada) 174,300 2,116,615
POSCO (South Korea) 12,000 1,245,710
Rio Tinto PLC (United Kingdom) 81,089 1,525,411
Shin-Etsu Chemical Co. ,
Ltd. (Japan) 40,800 1,393,129
Stillwater Mining
Co. (United States)* 94,300 484,702
Svenska Cellulosa AB (Sweden) 71,300 2,436,061
Syngenta AG (Switzerland) 20,378 1,021,495
Teijin,Ltd.(Japan) 381,000 951,905
WMC Resources,Ltd. (Australia 359,700 846,728
Total Materials 39,919,391
Telecommunication Services -6.0%
Cable &Wireless PLC
(United Kingdom) 867,101 1,616,845
China Mobile Ltd.(Hong Kong) 369,000 870,668
NTT DoCoMo, Inc. (Japan) 1,262 2,732,625
Orange SA (France) 67,000 594,745
TDC A/S (Denmark) 75,487 2,257,575
Telecom Italia Mobile
SpA (Italy) 342,900 1,689,279
Vodafone Group PLC
(United Kingdom) 2,913,412 5,696,925
Total Telecommunication Services 15,458,662
Utilities -0.7%
CLP Holdings Ltd. (Hong Kong) 329,000 1,438,662
E.ON AG (Germany) 5,410 278,138
Total Utilities 1,716,800
Total Common Stocks
(cost $232,335,500) 242,233,963
-----------
-----------
Convertible Bonds - 2.0% Principal
ASM Lithography Holding NV, Amount
4.250%, 11/30/04 -----------
(Netherlands)(a) 800,000 (2) 791,040
Carlton Communications,PLC,
2.250%, 01/04/07
(United Kingdom) 706,000 787,228
France Telecom SA, 2.000%,
01/01/04 (France) 344,822 398,730
France Telecom SA, 4.000%,
11/29/05 (France) 325,000 379,281
Havas,4.000%, 12/01/08 (France) 73,460 927,941
Royal KPN NV, 3.500%,
11/24/05 (Netherlands) 693,000 797,959
Verenigd Bezit VNU NV,
1.750%, 11/15/04 (a) 610,000 771,423
Vivendi Universal SA,1.000%,
07/05/03 (France) 235,661 281,785
Total Convertible Bonds
(cost $3,921,748) 5,135,387
Short-Term Investments -9.4% (1)
Other Investment Companies -7.8% -------
Bank of New York Institutional Shares
Cash Reserves -------
Fund, 1.25% (3) 15,423,528 15,423,528
JPMorgan Liquid Assets Money
Market Fund,Institutional Class
Shares, 1.10% 294 294
JPMorgan Prime Money Market
Fund, Institutional Class
Shares, 1.03% 4,828,574 4,828,574
Total Other Investment Companies 20,252,396
Other Short-Term Investments -1.6% (3)
due 07/01/03 to 08/15/03,
1.18% to 1.43% 4,246,720 4,246,720
Total Short-Term Investments
(cost $24,499,116) 24,499,116
Total Investments -104.8%
(cost $260,756,364) 271,868,466
------------
Other Assets,less Liabilities -(4.8)% (12,495,194)
------------
Net Assets -100.0% $259,373,272
============
</Table>
The accompanying notes are an integral part of these financial
statements.
14
Managers Emerging Markets Equity Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (unaudited)
<Table>
Security Description Shares Value
- ---------------------------------------------------------
Common Stocks -92.2%
Consumer Discretionary -9.7%
Consorcio ARA SA de
CV (Mexico) 266,000 $ 529,499
Fountain Set Holdings,Ltd.
(Hong Kong) 778,313 693,661
Genting Berhad (Malaysia) 124,600 491,842
Vestel Elektronik Sanayi
(Turkey) 294,100,000 741,603
Total Consumer Discretionary 2,456,605
Consumer Staples -10.6%
Coca-Cola Femsa,S.A.de C.V.,
Sponsored ADR (Mexico) 22,880 491,920
Companhia de Bebidas das
Americas, pr ADR (Brazil) 24,800 504,680
Indofood Sukses Makmur Tbk PT
(Indonesia) 6,060,000 624,364
IOI Corp., Berhad (Malaysia) 416,000 624,000
LG Household & Health Care,Ltd.
(South Korea) 16,500 426,141
Palmco Holdings,
Berhad (Malaysia) 416 651
Total Consumer Staples 2,671,756
Energy -4.2%
Petroleo Brasileiro S.A.-
ADR (Brazil) 28,400 561,184
YUKOS,ADR (Russia) 9,125 (2) 511,000
Total Energy 1,072,184
Financials -22.1%
ABSA Group,Ltd.(South Africa) 170,000 795,446
Bangkok Bank Pcl.(Thailand) 301,700 484,414
Cheung Kong Holdings,Ltd.
(Hong Kong) 85,000 511,211
Fubon Financial Holding Co.,Ltd.
(Taiwan) 590,000 472,205
Grupo Financiero BBVA Bancomer,
S.A.de C.V.,Class B 680,000 576,017
HDFC Bank,Ltd.(India)* 28,000 525,000
Kookmin Bank,Sponsored ADR
(South Korea) 21,257 (2) 643,024
OTP Bank Rt.(Hungary) 40,000 386,432
PT Bank Mandiri (Indonesia) 1,113,000 91,064
Sanlam,Ltd.(South Africa) 820,000 764,314
SM Prime Holdings,Inc.
(Philippines) 3,000,000 331,182
Total Financials 5,580,309
Health Care -4.5%
Ranbaxy Laboratories,Ltd.,GDR,
(India) 24,560 414,804
Ranbaxy Laboratories,Ltd., GDR,
(India) (a) 10,440 176,325
Teva Pharmaceutical Ind., Ltd.,
Sponsored ADR (Israel) 9,800 (2) 557,914
Total Health Care 1,149,043
Industrials -6.4%
China Merchants Holdings International
Co., Ltd. (Hong Kong) 694,000 618,518
China Southern Airlines Co.,Ltd.
(China) 1,096,000 (2) 288,120
Empresa Brasileira de Aeronautica
SA (Brazil) 37,850 722,935
Total Industrials 1,629,573
Information Technology -10.8%
Hon Hai Precision Ind.(Taiwan)155,000 562,049
Mediatek,Inc.(Taiwan) 58,000 581,508
Samsung Electronics Co.,Ltd.,GDR,
(South Korea)(a) 6,670 (2) 991,146
Taiwan Semiconductor Manufacturing
Co., Ltd. (Taiwan) 360,000 592,892
Total Information Technology 2,727,595
Materials -12.7%
Anglo American PLC
(United Kingdom) 20,000 305,275
Hindalco Ind., Ltd., Sponsored
GDR, (India) (a) 40,000 641,232
KGHM Polska Miedz SA (Poland) 157,000 577,139
POSCO,ADR (South Korea) 34,200 895,698
Siam Cement Public Co., Ltd.,
The (Thailand) 200,000 (2) 799,239
Total Materials 3,218,583
Telecommunication Services -11.2%
Brasil Telecom Participacoes SA
(Brazil) 16,950 (2) 634,778
Compania de Telecomunicaciones
de Chile S.A.,Sponsored ADR 30,000 356,313
SK Telecom Co.,Ltd.,ADR
(South Korea) 44,000 (2) 829,840
Telekomunikasi Indonesia Tbk
PT (Indonesia) 55,000 (2) 616,000
Turkcell Iletisim Hizmetleri A.S.
(Turkey) 60,000,000 402,045
Total Telecommunication Services 2,838,976
Total Common Stocks
(cost $19,620,644) 23,344,624
------------
Other Investment Companies -23.0% (1)
Bank of New York Institutional Cash
Reserves Fund, 1.25% (3) 5,106,487 5,106,487
JPMorgan Prime Money Market
Fund,Institutional Class
Shares, 1.03% 725,532 725,532
Total Other Investment Companies
(cost $5,832,019) 5,832,019
Total Investments -123.2%
(cost $25,452,663) 29,176,643
------------
Other Assets,less Liabilities -(23.2)% (5,484,849)
------------
Net Assets -100.0% $ 23,691,794
============
</Table>
The accompanying notes are an integral part of these financial
statements.
15
<Page>
Managers Intermediate Bond Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (unaudited)
<Table>
Principal
Security Description Amount Value
- ---------------------------------------------------------------
U.S.Government and Agency Obligations -105.9%
U.S.Government Agency Obligations -54.5%
FNMA, 2.875%, 10/15/05 775,000 $ 798,138
FNMA, 3.250%, 01/15/08 750,000 (2) 775,154
FNMA, 4.375%, 10/15/06 200,000 (2) 215,495
Total U.S.Government Agency Obligations 1,788,787
U.S.Treasury Notes -51.4%
USTN, 3.000%, 02/15/08 750,000 (2) 771,767
USTN, 3.500%, 11/15/06 425,000 (2) 447,993
USTN, 5.750%, 11/15/05 425,000 467,749
Total U.S.Treasury Notes 1,687,509
Total U.S.Government and Agency
Obligations (cost $3,431,448) 3,476,296
Other Investment Company -62.4% (1) ---------
Bank of New York Institutional Cash Shares
Reserves Fund, 1.25% (3) ---------
2,048,070 2,048,070
Total Investments -168.3%
(cost $5,479,518) 5,524,366
-----------
Other Assets,less Liabilities - (68.3)% (2,241,059)
-----------
Net Assets -100.0% $ 3,283,307
===========
</Table>
The accompanying notes are an integral part of these financial
statements.
16
<Page>
Managers Bond Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (unaudited)
<Table>
Principal
Security Description Amount Value
- ---------------------------------------------------------------
Corporate Bonds -41.5%
Asset-Backed Security -2.4%
Bank of America-First Union National
Bank Commercial Mortgage,Series 2001-3,
Class A2, 5.464%, 04/11/37 $1,500,000 $1,657,766
Community Program Loan Trust,
Series 87-A, Class
A4, 4.500%, 10/01/18 266,494 273,330
Community Program Loan Trust, Series
87-A, Class A5, 4.500%, 04/01/29 2,475,000 2,171,535
Total Asset-Backed Security 4,102,631
Convertible Bonds -4.7%
Analog Devices,Inc., 4.750%, 10/01/05 3,064,000 (2) 3,117,620
Devon Energy Corp., 4.900%, 08/15/08 1,250,000 1,275,000
Devon Energy Corp., 4.950%, 08/15/08 1,692,000 1,719,495
Loews Corp.,
3.125%, 09/15/07 1,920,000 1,800,000
Total convertible Bonds 7,912,115
Finance -9.8%
AON Corp. 7.375%, 12/14/12 600,000 723,767
Capital One Bank, 6.700%, 05/15/08 982,000 1,063,330
EOP Operating LP, 6.750%, 02/15/12 500,000 569,499
First Industrial L.P.,7.600%, 07/15/28 1,750,000 1,930,450
First Industrial LP.,
Medium Term, 7.500%, 12/01/17 1,145,000 1,367,603
Ford Motor Credit Co.,
5.800%, 01/12/09 150,000 (2) 149,079
Ford Motor Credit Co., 7.250%,
02/22/05 GBP 650,000 1,091,467
General Motors Acceptance Corp.,
6.875% , 08/15/11 250,000 250,834
General Motors Acceptance Corp.,
7.000%, 12/07/05 GBP 250,000 419,547
General Motors Acceptance Corp.,
7.500%, 12/01/06 NZD 1,000,000 581,819
General Motors Acceptance International
Finance BV, 8.000%, 03/14/07 NZD 950,000 561,433
Highwoods Properties,Inc.,
7.500%, 04/15/18 2,250,000 2,168,084
KeyCorp Capital II, 6.875%, 03/17/29 500,000 (2) 555,703
Loews Corp., 7.000%, 10/15/23 150,000 153,230
New Plan Excel Realty Trust,
5.875%, 06/15/07 1,250,000 1,339,511
NiSource Finance Corp., 6.150%,
03/01/13 1,250,000 1,341,768
Provident Co.,Inc., 7.250%, 03/15/28 250,000 246,250
Spieker Properties, Inc.,
7.350%, 12/01/17 250,000 302,443
Trinet Corporate Realty Trust,
7.700%, 07/15/17 500,000 516,250
UnumProvident Corp., 6.750%, 12/15/28 1,000,000 950,000
UnumProvident Corp., 7.375%, 06/15/32 300,000 297,000
Total Finance 16,579,067
Industrials -21.3%
American Airline, Series 01-2,
6.978%, 04/01/11 2,373,755 (2) 2,331,653
American Airlines, Inc., 8.608%,
04/01/11 125,000 (2) 87,338
Anthem,Inc., 6.800%, 08/01/12 1,000,000 1,167,458
American President, Ltd., 8.000%,
01/15/24 250,000 160,000
Arrow Electronics,Inc., 6.875%, 07/01/13 500,000 495,192
Bausch &Lomb,Inc., 7.125%, 08/01/28 500,000 (2) 479,375
Clear Channel Communications,
4.250%, 05/15/09 1,500,000 1,518,749
Clear Channel Communications,
5.750%, 01/15/13 500,000 540,757
Continental Airlines Inc.,
Series 991A, 6.545%, 02/02/19 326,644 316,394
Continental Airlines, Inc., Series
01-1, 6.703%, 06/15/21 465,578 451,324
Dell Computer Corp., 7.100%, 04/15/28 850,000 1,044,705
Delphi Corp., 7.125%, 05/01/29 1,950,000 (2) 1,950,872
Delta Airlines, 8.300%, 12/15/29 500,000 352,500
Foot Locker, Inc., 8.500%, 01/15/22 570,000 593,513
Ford Motor Co., 6.375%, 02/01/29 2,500,000 2,021,365
General Motors Corp., 6.750%, 05/01/28 500,000 422,609
Georgia-Pacific Corp., 7.250%, 06/01/28 500,000 437,500
Georgia-Pacific Corp., 7.750%, 11/15/29 925,000 837,125
HCA,Inc., 6.250%, 02/15/13 1,690,000 (2) 1,722,857
HCA,Inc., 7.050%, 12/01/27 900,000 872,459
HCA,Inc., 7.580%, 09/15/25 125,000 130,175
Health Care Property, Inc.,
6.000%, 03/01/15 1,500,000 1,555,044
International Telecom Satellite,
7.625%,04/15/12 1,000,000 1,132,924
JC Penney Co.,Inc., 8.250%, 08/15/22 150,000 147,000
Kellwood Co., 7.625%, 10/15/17 250,000 241,250
Lowe's Co., Inc., 6.875%, 02/15/28 500,000 586,807
Motorola,Inc., 5.800%, 10/15/08 250,000 268,125
Motorola,Inc., 7.625%, 11/15/10 375,000 440,625
Motorola,Inc., 8.000%, 11/01/11 1,075,000 (2) 1,281,938
Pulte Homes, Inc., 7.625%, 10/15/17 500,000 616,618
</Table>
The accompanying notes are an integral part of these financial
statements.
17
<Page>
Managers Bond Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (continued)
<Table>
Principal
Security Description Amount Value
- ---------------------------------------------------------------
Industrials (continued)
Raytheon Co., 6.400%, 12/15/18 $ 400,000 $ 450,010
Raytheon Co., 7.000%, 11/01/28 1,500,000 1,706,726
Raytheon Co., 7.200%, 08/15/27 800,000 931,683
Sears Roebuck Acceptance
Corp.,6.500%, 12/01/28 2,100,000 2,188,187
Sears Roebuck Acceptance Corp.,
6.700%, 04/15/12 200,000 (2) 225,713
Sears Roebuck Acceptance Corp., 6.875%,
10/15/17 750,000 (2) 853,856
Sprint Capital Corp., 6.875%,
11/15/28 2,300,000 2,307,441
Sprint Capital Corp., 6.900%, 05/01/19 500,000 523,724
Time Warner,Inc., 6.625%, 05/15/29 1,750,000 1,804,462
Westvaco Corp., 7.000%, 08/15/23 350,000 359,636
Weyerhaeuser Co., 6.950%, 10/01/27 250,000 272,578
Total Industrials 35,828,263
Utility -3.3%
Constellation Energy Group Inc.,
4.550%, 06/15/15 175,000 (2) 167,064
Constellation Energy Group, Inc.,
6.125%, 09/01/09 1,100,000 1,237,093
EL Paso Corp., 6.750%, 05/15/09 250,000 (2) 228,750
El Paso Corp., 6.950%, 06/01/28 300,000 238,500
EL Paso Corp., 7.000%, 05/15/11 500,000 (2) 455,000
Global Marine,Inc., 7.000%, 06/01/28 250,000 283,151
KN Capital Trust III, 7.630%, 04/15/28 250,000 282,271
MidAmerican Energy Holdings,
5.875%, 10/01/12 750,000 822,540
Southern Natural Gas Co., 7.350%,
02/15/31 1,000,000 1,017,500
Tennessee Gas Pipeline Co.,
7.500%, 04/01/17 250,000 (2) 256,875
Transocean,Inc., 7.375%, 04/15/18 500,000 626,985
Total Utility 5,615,728
Total Corporate Bonds (cost $64,009,544) 70,037,804
Foreign Corporate Obligations -8.4%
AT&T Corp., 6.000%, 11/21/06 EUR 200,000 244,026
Cerro Negro Finance Ltd.,
7.900%, 12/01/20 (a) 500,000 407,500
Empresa Nacional de Electricidad,
Yankee, 7.875%, 02/01/27 1,150,000 1,035,460
Enersis SA, 6.900%, 12/01/06 500,000 (2) 510,460
Enersis SA, Yankee, 7.400%, 12/01/16 225,000 (2) 221,618
International Bank for Reconstruction
& Development, 0.000%,
08/20/07 (4) NZD 4,800,000 2,265,829
Macmillan Bloedel Ltd.,
7.700%, 02/15/26 1,350,000 1,494,658
Petroleos Mexicanos, 8.625%,
12/01/23 (a) 950,000 1,087,750
PDVSA Finance Ltd., Series 98-1,
7.400%, 08/15/16 300,000 244,500
PDVSA Finance Ltd., Series 98-1,
7.500%, 11/15/28 1,000,000 785,000
Pf Export Rec Master Trust, 6.436%,
06/01/15 (a) 1,000,000 (2) 1,016,000
Samsung Electronics Co., Ltd., 7.700%,
10/01/27 (a) 1,800,000 1,950,656
Teck Cominco Ltd., 7.000%, 09/15/12 1,000,000 1,071,250
Telekom Malaysia Berhad, 7.875%,
08/01/25 (a) 250,000 282,648
Tenaga Nasional Berhad, 7.500%,
11/01/25 (a) 1,500,000 1,628,603
Total Foreign Corporate Obligations
(cost $12,705,406) 14,245,958
Foreign Government and Agency Obligations -6.9%
British Columbia Province, General Residual,
0.000%, 06/18/29 CAD 2,500,000 416,118
British Columbia Province, General Residual,
0.000%, 08/23/24 CAD 7,425,000 1,636,642
Canadian Government, 4.500%,
09/01/07 CAD 665,000 506,061
Kingdom of Norway, 6.750%,
01/15/07 NOK 21,160,000 3,209,880
Kommunekredit, 5.000%, 06/07/06 NOK 1,600,000 228,483
Mexico Government, 7.500%, 01/14/12 1,250,000 (2) 1,431,250
New Zealand Government, 6.000%,
11/15/11 NZD 500,000 305,925
Ontario Hydro, 0.000%,
10/15/21 (4) CAD 1,700,000 447,286
Province of Alberta, Series CS,
Sinking Fund, 5.930%, 09/16/16 CAD 224,551 178,656
Province of Manitoba, 6.500%,
09/22/17 CAD 1,800,000 1,519,233
Republic of South Africa,
10.000%, 02/28/08 ZAR 2,500,000 347,732
Republic of South Africa, Yankee,
8.500%, 06/23/17 1,175,000 1,452,594
Total Foreign Government and Agency
(cost $9,598,210) 11,679,860
U.S.Government and Agency Obligations -36.8%
U.S.Government Agency Obligations -35.1%
FHLMC,4.625%,02/15/07 EUR 1,750,000 2,140,476
FHLMC,5.500%,09/15/11 5,090,000 2 5,770,691
FHLMC,5.750%01/15/12 3,000,000 3,451,698
FHLMC,5.750%,03/15/09 10,200,000 2 11,715,853
FHLMC,6.000%,11/15/28 1,060,000 1,078,082
</Table>
The accompanying notes are an integral part of these financial
statements.
18
<Page>
Managers Bond Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (continued)
<Table>
Principal
Security Description Amount Value
- ---------------------------------------------------------------
U.S.Government Agency Obligations (continued)
FNMA, 3.250%, 01/15/08 $ 3,000,000 (2) $ 3,100,614
FNMA, 4.250%, 07/15/07 3,000,000 (2) 3,228,264
FNMA, 5.250%, 01/15/09 9,940,000 (2) 11,160,841
FNMA, 5.375%, 11/15/11 4,050,000 (2) 4,555,152
FNMA, 5.500%, 03/15/11 2,500,000 (2) 2,836,337
FNMA, 5.750%, 02/15/08 8,350,000 9,527,083
FNMA, 6.000%, 07/01/29 100,785 104,926
GNMA, Gold, 5.000%, 12/01/31 443,632 451,446
Total U.S.Government Agency Obligations 59,121,463
U.S.Treasury Notes -1.7%
USTN, 5.750%, 08/15/10 2,500,000 (2) 2,926,270
Total U.S.Government and Agency Obligations
(cost $59,285,993) _______ 62,047,733
Shares
Preferred Stocks -4.1% -------
Entergy Louisiana, Inc., 4.440% 226 13,821
Entergy New Orleans,Inc., 4.750% 482 31,601
Equity Residential Properties, 7.250% 18,300 466,467
International Paper Co., 5.250%, (a) 100,000 (2) 4,900,000
Newell Financial Trust I, 5.250% 25,000 (2) 1,184,375
Union Electric Co., 3.500% 350 25,900
Wisconsin Electric Power Co., 3.600% 3,746 219,141
Total Preferred Stocks (cost $6,641,133) 6,841,305
Common Stock -0.3%
Magna International, Inc.
(cost $476,933) 6,732 (2) 452,862
Short-Term Investments -28.4%1
Other Investment Companies -20.2%
Bank of New York Institutional Cash
Reserves Fund,1.25% (3) 31,412,075 31,412,075
JPMorgan Liquid Assets Money Market
Fund, Institutional Class
Shares, 1.10% 1,740 1,740
JPMorgan Prime Money Market Fund,
Institutional Class Shares, 1.03% 2,567,964 2,567,964
Total Other Investment Companies 33,981,779
----------
Principal
Amount
Other Short-Term Investments -8.2% (3) ----------
Due 07/08/03 to 05/17/04,1.15% to 1.43% $ 13,906,131 13,906,131
Total Short-Term Investments (cost $47,887,910) 47,887,910
Total Investments -126.4% (cost $200,605,129) 213,193,432
------------
Other Assets,less Liabilities -(26.4)% (44,593,449)
------------
Net Assets -100.0% $168,599,983
============
</Table>
The accompanying notes are an integral part of these financial
statements.
19
<Page>
Managers Global Bond Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (unaudited)
<Table>
Principal
Security Description Amount Value
- -------------------------------------------------------------------------
Foreign Government and Agency Obligations -44.6%
Belgium Government Bond,
3.750%, 03/28/09 EUR $ 630,000 $ 744,300
Bundes Immobil, 4.625%, 09/27/12 EUR 525,000 631,909
Dominican Republic, 9.040%,
01/23/13 (a) USD 160,000 144,800
Federal Republic of Brazil,
10.000%, 01/16/07 USD 100,000 (2) 102,750
Irish Government, 4.600%, 04/18/16 EUR 780,000 935,691
Italy Buoni Poliennali Del Tesoro,
4.500%,03/01/07 EUR 415,000 507,068
Kingdom of Denmark, 4.000%, 08/15/08 DKK 3,800,000 609,870
Kingdom of Denmark, 5.000%, 08/15/05 DKK 750,000 122,061
Kingdom of Norway, 5.500%, 05/15/2009 NOK 3,675,000 540,980
Kingdom of Norway, 6.750%, 01/15/07 NOK 530,000 80,399
Mexico Government, 8.375%, 01/14/11 USD 300,000 359,400
Netherlands Government, 5.000%,
07/15/11 EUR 350,000 440,509
Ontario Province, 5.700%, 12/01/08 CAD 535,000 425,358
Ontario Province, 5.900%, 03/08/06 CAD 100,000 78,438
Queensland Treasury Corp., 8.000%,
09/14/07 AUD 1,175,000 894,357
Republic of Austria, 5.000%, 07/15/12 EUR 870,000 1,089,386
Republic of South Africa, 5.250%,
05/16/13 EUR 350,000 387,355
Republic of South Africa, Yankee,
8.500%, 06/23/17 USD 200,000 247,250
Republic of Trinidad & Tobago, 9.750%,
07/01/20 (a) USD 175,000 222,250
Saskatchewan Province, 5.750%,
03/05/29 CAD 500,000 380,044
Swedish Government, 5.250%, 03/15/11 SEK 3,640,000 488,550
Swedish Government, 6.500%, 05/05/08 SEK 1,860,000 261,749
U.K.Treasury, 6.250%, 11/25/10 GBP 190,000 357,220
U.K.Treaury, 5.000%, 03/07/12 GBP 300,000 525,239
United Mexican States,5.375%, 06/10/13 EUR 250,000 277,041
Total Foreign Government and Agency Obligations
(cost $10,083,954) 10,853,974
Corporate Bonds -47.6%
Convertible Bonds -3.6%
Corning, Inc., 3.500%, 11/01/08 USD 45,000 (2) 48,319
Genzyme Corp-General Division, cv,
3.000%, 05/15/21 USD 100,000 (2) 99,750
LSI Logic Corp., 4.000%, 11/01/06 USD 80,000 (2) 74,400
Nextel Communications Convertible,
5.250%, 01/15/10 USD 70,000 65,800
Nortel Networks, 4.250%, 09/01/08 USD 95,000 80,037
Royal KPN NV, 3.500%, 11/24/05 EUR 125,000 143,932
Samsung Electronics Co., Ltd.,
7.700%, 10/01/27 (a) USD 325,000 352,202
Total Convertible Bonds 864,440
Finance -18.0%
Bangkok Bank Public Co. Hong Kong,
9.025%, 03/15/29 (a) USD 125,000 143,591
Eurofima, 6.500%, 08/22/11 AUD 330,000 239,336
First Industrial L.P.,7.600%, 07/15/28 USD 100,000 110,311
Ford Credit Canada, 7.163%, 04/23/07 CAD 150,000 111,685
Ford Motor Credit Co.,7.250%, 02/22/05 GBP 100,000 167,918
General Motors Acceptance Corp.,
7.000%, 12/07/05 GBP 50,000 83,910
General Motors Acceptance International
Finance BV, 8.000%, 03/14/07 NZD 400,000 236,393
Household Finanancial,4.500%, 07/02/08 CAD 100,000 73,727
Household Finance Corp.,
5.125%, 06/24/09 EUR 225,000 275,304
Istar Financial,Inc., 8.750%, 08/15/08 USD 50,000 54,500
Kreditanstalt fuer Wiederaufbau,
5.250%, 01/04/10 EUR 795,000 1,007,752
Moore North American Finance,
7.875%, 01/15/11 (a) USD 130,000 135,525
Muenchener Hypothekenbank eG,
5.000%, 01/16/12 EUR 635,000 790,982
National Rural Utilities Cooperative
Finance Corp., 4.125%, 02/24/06 EUR 250,000 294,741
Nordic Investment Bank, 5.250%,
04/20/06 SEK 2,000,000 262,510
Permanent Financing PLC, 5.100%,
06/11/07 EUR 275,000 341,062
Trinet Corporate Realty Trust,
7.700%, 07/15/17 USD 50,000 51,625
Total Finance 4,380,872
Industrials -21.0%
Alcan,Inc., 5.500%, 05/02/06 EUR 140,000 171,907
Alliance Pipeline LP, 6.996%,
12/31/19 (a) USD 252,878 296,431
Allied Waste North America,
8.500%, 12/01/08 USD 100,000 (2) 107,500
American Standard, Inc., 7.125%,
06/01/06 EUR 75,000 89,197
American Standard, Inc.,
8.250%, 06/01/09 GBP 50,000 87,045
Arrow Electronics,Inc.,
6.875%, 07/01/13 USD 100,000 99,038
AT&T Corp., 6.000%, 11/21/06 EUR 50,000 61,006
Bausch & Lomb, Inc., 7.125%, 08/01/28 USD 100,000 95,875
Boise Cascade Corp., 7.350%, 02/01/16 USD 100,000 106,071
</Table>
The accompanying notes are an integral part of these financial
statements.
20
<Page>
Managers Global Bond Fund
June 30,2003
- ---------------------------------------------------------------
Schedule of Portfolio Investments (continued)
<Table>
Principal
Security Description Amount Value
- -------------------------------------------------------------------------
Industrials (continued)
Brascan Corp., 7.125%, 06/15/12 USD 125,000 $ 141,277
Canadian Pacific Railroad, 4.900%,
06/15/10 (a) CAD 50,000 36,516
CITGO Petroleum Corp., 11.375%,
02/01/11 (a) USD 90,000 100,350
Corning Glass, 7.000%, 03/15/07 USD 100,000 100,125
Corning Inc., 6.750%, 09/15/13 USD 25,000 26,281
Dana Corp., 9.000%, 08/15/11 EUR 100,000 120,577
Dean Foods Co., 6.625%, 05/15/09 USD 75,000 78,000
Equistar Chemical LP,6.500%, 02/15/06 USD 80,000 76,400
Falconbridge Ltd., 7.350%, 06/05/12 USD 150,000 169,014
Flextronics International, Ltd.,
9.750%, 07/01/10 EUR 50,000 62,011
Georgia-Pacific Corp., 7.250%,
06/01/28 USD 160,000 140,000
Gruma SA de CV, 7.625%, 10/15/07 USD 150,000 163,875
Grupo Tranportacion Ferroviaria
Mexicana S.A.de C.V.,
11.750%, 06/15/09 USD 70,000 71,400
Hasbro,Inc., 6.600%, 07/15/28 USD 140,000 136,150
IMC Global, Inc., 10.875%, 06/01/08 USD 45,000 46,800
Inco,Ltd., 7.200%, 09/15/32 USD 135,000 148,792
Lam Research Corp., 4.000%, 06/01/06 USD 75,000 72,844
Methanex Corp., 7.750%, 08/15/05 USD 100,000 105,000
MGM Mirage, 8.375%, 02/01/11 USD 140,000 (2) 159,250
Motorola,Inc., 8.000%, 11/01/11 USD 75,000 89,438
News America Holdings,8.625%,02/07/14 AUD 350,000 234,838
Noranda,Inc., 7.250%, 07/15/12 USD 125,000 133,259
Ocean Energy,Inc., 7.500%, 09/15/27 USD 100,000 118,719
Park Place Entertainment, 7.875%,
03/15/10 USD 50,000 (2) 53,750
Philippine Long Distance Telephone,
11.375%, 05/15/12 USD 50,000 56,614
Premcor Refining Premco, 7.500%,
06/15/15 (a) USD 75,000 73,875
Raytheon Co., 6.400%, 12/15/18 USD 75,000 84,377
Repsol International Finance, 5.750%,
12/04/06 EUR 100,000 123,638
Rogers Cablesystems, 9.650%, 01/15/14 CAD 250,000 193,192
Shaw Communications, Inc., 7.400%,
10/17/07 CAD 175,000 131,995
Sprint Capital Corp.,6.875%, 11/15/28 USD 200,000 200,647
Starwood Hotels & Resorts, 7.875%,
05/01/12 USD 80,000 87,600
Teck Cominco Ltd., 7.000%, 09/15/12 USD 100,000 107,125
Telekom Malaysia Berhad, 7.875%,
08/01/25 (a) USD 200,000 226,118
Tembec Industries, Inc., 8.500%,
02/01/11 USD 130,000 128,700
Total Industrials 5,112,617
Utility -5.0%
Enersis SA, Yankee, 7.400%, 12/01/16 USD 275,000 (2) 270,867
Petroleos Mexicanos, 8.625%,
12/01/23 (a) USD 200,000 229,000
Petroleos Mexicanos, 9.500%, 09/15/27 USD 325,000 401,375
Pioneer Natural Resources Co.,
7.200%, 01/15/28 USD 65,000 70,989
Tenaga Nasional Berhad, 7.500%,
11/01/25 (a) USD 225,000 244,290
Total Utility 1,216,521
Total Corporate Bonds (cost $10,031,405) 11,574,450
U.S.Government and Agency Obligations -6.6%
FHLMC, 5.000%, 04/01/18 USD 717,947 742,170
FHLMC, 5.500%, 04/01/33 USD 743,161 767,735
FNMA, 6.375%, 08/15/07 AUD 155,000 109,385
Total U.S.Government and Agency Obligations
(cost $1,594,290) 1,619,290
______
Other Investment Companies -3.5% (1) Shares
Bank of New York Institutional Cash ------
Reserves Fund, 1.25% (3) 854,029 854,029
JPMorgan Prime Money Market Fund, Institutional
Class Shares, 1.03% 3,001 3,001
Total Other Investment Companies
(cost $857,030) 857,030
Total Investments -102.3%
(cost $22,566,679) 24,904,744
-----------
Other Assets,less Liabilities -(2.3)% (570,572)
-----------
Net Assets -100.0% $24,334,172
===========
</Table>
The accompanying notes are an integral part of these financial
statements.
21
<Page>
Notes to Schedules of Portfolio Investments
- ---------------------------------------------------------------
The following footnotes and abbreviations should be read in
conjunction with each of the Schedule of Portfolio Investments
previously presented in the report.
At June 30,2003,the cost of securities for Federal income tax
purposes and the gross aggregate unrealized appreciation and/or
depreciation based on tax cost were approximately:
<Table>
Fund Cost Appreciation Depreciatioon Net
- --------------------- ------------- ------------- ------------- ------------
Value $ 72,063,734 $ 7,580,343 $ (1,834,890) $ 5,745,453
Capital Appreciation 113,892,158 9,008,394 (3,677,332) 5,331,062
Small Company 14,003,751 2,846,761 (674,402) 2,172,359
Special Equity 2,532,458,164 487,076,056 (162,098,050) 324,978,006
International Equity 260,756,364 28,811,860 (17,699,758) 11,112,102
Emerging Markets 25,452,663 4,194,083 (470,103) 3,723,980
Intermediate Bond 5,479,518 44,848 0 44,848
Bond 200,605,129 13,495,351 (907,048) 12,588,303
Global Bond 22,566,679 2,411,750 (73,685) 2,338,065
</Table>
*Non-income-producing security
(a)Security exempt from registration under Rule 144A of the
Securities Act of 1933. This security may be resold in
transactions exempt from registration,normally to qualified
buyers.At June 30, 2003, the value of these securities
amounted to the following:
<Table>
Fund Market Value % of Net Assets
- --------------------- -------------- ---------------
International Equity $ 2,020,663 0.8%
Emerging Markets 1,808,703 7.1%
Bond 6,373,157 3.8%
Global Bond 2,204,948 9.1%
</Table>
(1) Yield shown for each investment company represents its June
30, 2003, seven-day average yield, which refers to the sum of
the previous seven days 'dividends paid,expressed as an annual
percentage.
(2) Some or all of these shares were out on loan to various brokers
as of June 30,2003,amounting to:
<Table>
Fund Market Value % of Net Assets
- --------------------- -------------- ---------------
Value $ 5,437,863 7.4%
Capital Appreciation 17,417,627 17.0%
Small Company 1,557,495 10.8%
Special Equity 440,474,398 18.4%
International Equity 18,990,112 7.3%
Emerging Markets 4,876,897 19.3%
Intermediate Bond 2,004,049 61.0%
Bond 44,511,441 26.4%
Global Bond 837,133 3.4%
</Table>
(3) Collateral received from brokers for securities lending were
invested in these short-term investments.
(4) Zero coupon security.
(5) Affiliated Company -See Note 9 in the Notes to Financial
Statements.
Investments Definitions and Abbreviations:
- ------------------------------------------
ADR/GDR: ADR after the name of a holding stands for American
Depositary Receipt, representing ownership of foreign securities
on deposit with a domestic custodian bank; a GDR (Global
Depositary Receipt) is comparable, but foreign
securities are held on deposit in a non-U.S. bank. The value
of the ADR/GDR securities is determined or significantly
influenced by trading on exchanges not located in the
United States or Canada. Sponsored ADR/GDRs are
initiated by the underlying foreign company.
FHLMC: Federal Home Loan Mortgage Corp.
USTB: United States Treasury Bond
FNMA: Federal National Mortgage Association
USTN: United States Treasury Note
GNMA: Government National Mortgage Association
Registered shares: A security whose owner has been recorded with
its issuer or issuer's registrar.
Abbreviations have been used throughout the portfolios to
indicate amounts shown in currencies other than the U.S. dollar
(USD):
AUD: Australian Dollar
JPY: Japanese Yen
CAD: Canadian Dollar
SEK: Swedish Krona
DKK: Danish Krone
NZD: New Zealand Dollar
EUR: euro
NOK: Norwegian Krone
GBP: British Pound
22
<Page>
Statements of Assets and Liabilities (unaudited)
June 30, 2003
- --------------------------------------------------------------
<Table>
Managers Managers
Managers Capital Small
Value Appreciation Company
Fund Fund Fund
------------- ------------- -------------
Assets:
- -------
Investments at value* $ 77,809,187 $ 119,223,220 $ 16,176,110
Cash - 13,853 60
Foreign currency** - - -
Receivable for investments sold - 1,381,312 -
Receivable for Fund shares sold 2,041,116 193,653 119,627
Receivable for open forward
foreign currency contracts - - -
Dividends, interest and
other receivables 113,091 42,713 802
Prepaid expenses 11,906 12,928 9,673
------------ ------------- ------------
Total assets 79,975,300 120,867,679 16,306,272
------------ ------------- ------------
Liabilities:
- ------------
Payable to Custodian 36,401 - -
Payable for Fund shares repurchased 67,624 131,491 66,320
Payable upon return of securities
loaned 5,578,191 17,904,400 1,616,055
Payable for investments purchased 1,032,897 449,466 153,137
Payable for open forward foreign
currency contracts - - -
Accrued expenses:
Investment advisory and
management fees 43,863 72,805 9,519
Administrative fees 14,621 22,751 2,935
Other 44,829 114,083 37,004
Total liabilities 6,818,426 18,694,996 1,884,970
------------ ------------- ------------
Net Assets $ 73,156,874 $ 102,172,683 $ 14,421,302
============ ============= ============
Shares outstanding 3,198,157 4,507,500 1,969,857
------------ ------------- ------------
Net asset value, offering and
redemption price per share $ 22.87 $ 22.67 $ 7.32
========= ========== =========
Net Assets Represent:
- ---------------------
Paid-in capital $ 75,904,915 $ 267,656,032 $ 22,222,961
Undistributed net investment
income (loss) 169,527 (549,748) (77,615)
Accumulated net realized gain
(loss)from investments and
foreign currency transactions (8,663,021) (170,264,663) (9,896,403)
Net unrealized appreciation
(depreciation)of investments and
foreign currency contracts and
translations 5,745,453 5,331,062 2,172,359
------------ ------------- ------------
Net Assets $ 73,156,874 $ 102,172,683 $ 14,421,302
============ ============= ============
*Investments at cost $ 72,063,734 $ 113,892,158 $ 14,003,751
------------ ------------- ------------
**Foreign currency at cost - - -
</Table>
23
<Page>
<Table>
Managers
Managers Managers Emerging Managers Managers
Special International Markets Intermediate Managers Global
Equity Equity Equity Bond Bond Bond
Fund Fund Fund Fund Fund Fund
- --------------- ------------- ------------ ----------- ------------- ------------
$ 2,857,436,170 $ 271,868,466 $ 29,176,643 $ 5,524,366 $ 213,193,432 $ 24,904,744
- - 512 56,485 101,592 -
- 870,091 96,378 - 12 19,654
17,364,788 11,018,285 451,824 - - 1,061,104
5,557,539 8,245,596 605,997 2,883 1,475,647 119,038
- 20,366,447 - - - 651,520
960,616 1,117,962 101,549 35,153 2,482,177 459,159
79,879 28,254 13,041 1,917 24,772 9,851
-------------- ------------ ----------- ---------- ------------ -----------
2,881,398,992 313,515,101 30,445,944 5,620,804 217,277,632 27,225,070
-------------- ------------ ----------- ---------- ------------ -----------
344,339 6,331,597 - - - 454,501
3,361,820 4,846,201 1,486,088 268,509 1,073,362 549,948
455,098,662 19,670,248 5,106,487 2,048,070 45,318,206 854,029
25,098,563 2,251,416 91,974 - 2,152,609 336,782
- 20,358,368 - - - 651,270
1,759,293 204,737 23,961 2,124 79,951 16,017
488,693 56,871 5,085 1,062 34,980 4,576
695,474 422,391 40,555 17,732 18,541 23,775
-------------- ------------ ----------- ---------- ------------ -----------
486,846,844 54,141,829 6,754,150 2,337,497 48,677,649 2,890,898
-------------- ------------ ----------- ---------- ------------ -----------
$ 2,394,552,148 $ 259,373,272 $ 23,691,794 $ 3,283,307 $ 168,599,983 $ 24,334,172
============== ============ =========== ========== ============ ===========
38,457,822 7,739,018 2,332,465 180,486 6,776,797 1,047,577
-------------- ------------ ----------- ---------- ------------ -----------
$62.26 $33.52 $10.16 $18.19 $24.88 $23.23
======= ======== ======== ======= ======== ========
$ 2,684,034,270 $ 421,646,744 $ 25,814,569 $13,224,667 $ 154,786,185 $ 19,503,419
(5,955,820) 2,957,099 142,247 (1,948) 15,994 886,816
(608,504,308) (176,503,499) (5,983,425) (9,984,260) 1,205,918 1,595,569
324,978,006 11,272,928 3,718,403 44,848 12,591,886 2,348,368
-------------- ------------ ----------- ---------- ------------ -----------
$ 2,394,552,148 $ 259,373,272 $ 23,691,794 $ 3,283,307 $ 168,599,983 $ 24,334,172
============== ============ =========== ========== ============ ===========
2,532,458,164 $ 260,756,364 $ 25,452,663 $ 5,479,518 $ 200,605,129 $ 22,566,679
-------------- ------------ ----------- ---------- ------------ -----------
- 873,962 96,557 - 12 -
-------------- ------------ ----------- ---------- ------------ -----------
</Table>
The accompanying notes are an integral part of these financial
statements.
24
<Page>
Statements of Operations (unaudited)
For the six months ended June 30,2003
- --------------------------------------------------------------
<Table>
Managers Managers
Managers Capital Small
Value Appreciation Company
Fund Fund Fund
---------- ------------ ---------
Investment Income:
- ------------------
Dividend income $ 522,044 $ 214,654 $ 11,008
Interest income 20,348 20,424 2,905
Foreign withholding tax (1,434) (4,355) (56)
Securities lending fees 199 2,883 668
----------- ----------- ----------
Total investment income 541,157 233,606 14,525
----------- ----------- ----------
Expenses:
- ---------
Investment advisory and management
fees 214,169 418,246 57,149
Administrative fees 71,390 130,702 15,875
Transfer agent 57,274 154,556 3,639
Custodian 33,654 57,233 10,192
Professional fees 19,071 25,641 12,143
Registration fees 7,642 8,502 4,176
Trustees fees and expenses 1,633 3,905 491
Insurance 883 1,967 325
Amortization of organization expense - - -
Miscellaneous 4,529 12,890 1,279
----------- ----------- ----------
Total expenses before offsets 410,245 813,642 105,269
Less: Expense reimbursement - - (8,223)
Expense reductions (19,750) (30,288) (4,906)
----------- ----------- ----------
Net expenses 390,495 783,354 92,140
----------- ----------- ----------
Net investment income (loss) 150,662 (549,748) (77,615)
=========== =========== ==========
Net Realized and Unrealized Gain (Loss):
- ----------------------------------------
Net realized gain (loss) on
investment transactions (1,698,813) (16,147,144) (164,177)
Net realized gain (loss) on foreign
currency contracts and transactions - - -
Net unrealized appreciation
(depreciation) of investments 8,624,401 28,231,054 2,046,924
Net unrealized appreciation
(depreciation)of foreign currency
contracts and translations - - -
Net realized and unrealized gain
(loss) 6,925,588 12,083,910 1,882,747
---------- ----------- ----------
Net Increase (Decrease)in Net Assets
Resulting from Operations $7,076,250 $11,534,162 $1,805,132
========== =========== ==========
</Table>
25
<Page>
<Table>
Managers
Managers Managers Emerging Managers Managers
Special International Markets Intermediate Managers Global
Equity Equity Equity Bond Bond Bond
Fund Fund Fund Fund Fund Fund
- --------------- ------------- ------------ ----------- ------------- ------------
$ 5,967,514 $ 5,347,021 $ 308,292 $ - $ 118,758 $ -
1,108,174 314,601 2,778 71,080 4,014,125 666,902
- (615,476) (26,742) - (687) (382)
401,223 172,243 4,889 1,790 18,690 679
- ------------ ------------ ---------- ----------- ----------- -----------
7,476,911 5,218,389 289,217 72,870 4,150,886 667,199
- ------------ ------------ ---------- ----------- ----------- -----------
9,228,731 1,408,211 121,968 17,668 464,183 90,014
2,563,536 391,170 26,515 8,834 185,673 25,718
1,534,954 436,239 17,598 7,954 27,801 24,692
670,596 348,658 23,942 3,709 27,749 21,534
172,842 56,592 14,182 8,367 23,776 19,839
50,452 22,758 8,485 11,264 11,962 5,783
66,941 11,444 873 334 3,514 867
34,171 10,505 499 909 1,980 535
- - 1,503 - - -
166,545 42,890 5,857 4,988 10,154 1,360
- ------------ ------------ ---------- ----------- ----------- -----------
14,488,768 2,728,467 221,422 64,027 756,792 190,342
- - (5,945) (16,962) (21,346) -
(328,625) (6,879) (13) (71) (18) (6)
- ------------ ------------ ---------- ----------- ----------- -----------
14,160,143 2,721,588 215,464 46,994 735,428 190,336
- ------------ ------------ ---------- ----------- ----------- -----------
(6,683,232) 2,496,801 73,753 25,876 3,415,458 476,863
============ ============ ========== =========== =========== ===========
(91,340,895) (22,149,222) (277,543) 53,758 1,522,815 1,627,978
- (112,188) (7,178) - 25,807 53,355
368,727,609 41,628,009 3,756,764 47,986 7,959,584 903,858
- 235,472 4,588 - 2,332 (10,562)
- ------------ ------------ ---------- ----------- ----------- -----------
277,386,714 19,602,071 3,476,631 101,744 9,510,538 2,574,629
- ------------ ------------ ---------- ----------- ----------- -----------
$270,703,482 $22,098,872 $3,550,384 $ 127,620 $12,925,996 $3,051,492
============ ============ ========== =========== =========== ===========
</Table>
The accompanying notes are an integral part of these financial
statements.
26
<Page>
Statements of Changes in Net Assets
For the six months ended June 30, 2003, (unaudited)
and for the fiscal year ended December 31, 2002
- -----------------------------------------------------
<Table>
Managers Capital
Managers Value Fund Appreciation Fund
----------------------------- ----------------------------
June 30, 2003 2002 June 30, 2003 2002
-------------- ------------- -------------- ------------
Increase (Decrease) in
Net Assets
From Operations:
- ------------------------
Net investment income
(loss) $ 150,662 $ 334,172 $ (549,748) $ (1,497,152)
Net realized gain (loss)
on investments and foreign
currency transactions (1,698,813) (6,225,158) (16,147,144) (30,321,712)
Net unrealized appreciation
(depreciation)
of investments and foreign
currency translations 8,624,401 (9,422,689) 28,231,054 (22,222,488)
------------ ------------ ------------- --------------
Net increase (decrease)
in net assets resulting
from operations 7,076,250 (15,313,675) 11,534,162 (54,041,352)
------------ ------------ ------------- --------------
Distributions to Shareholders:
- ------------------------------
From net investment income - (362,134) - -
From net realized gain on
investments - (230,982) - -
------------ ------------ ------------- --------------
Total distributions to
shareholders - (593,116) - -
------------ ------------ ------------- --------------
From Capital Share
transactions:
- ---------------------
Proceeds from sale of
shares 26,291,286 21,685,373 11,619,501 41,555,483
Reinvestment of
distributions - 582,405 - -
Cost of shares
repurchased (8,211,440) (21,988,663) (28,525,939) (66,844,887)
Net increase (decrease)
from capital share
transactions 18,079,846 279,115 (16,906,438) (25,289,404)
------------ ------------ ------------- --------------
Total increase (decrease)
in net assets 25,156,096 (15,627,676) (5,372,276) (79,330,756)
------------ ------------ ------------- --------------
Net Assets:
- ----------------------
Beginning of period 48,000,778 63,628,454 107,544,959 186,875,715
------------ ------------ ------------- --------------
End of period $73,156,874 $48,000,778 $102,172,683 $107,544,959
============ ============ ============= ==============
End of period undistributed
net investment
income (loss) $ 169,527 $ 18,865 $ (549,748) $ -
------------ ------------ ------------- --------------
Share transactions:
- ---------------------
Sale of shares 1,270,367 917,781 551,422 1,709,407
Reinvested shares - 24,916 - -
Shares repurchased (392,209) (940,479) (1,325,891) (2,808,321)
------------ ------------ ------------- --------------
Net increase (decrease)
in shares 878,158 2,218 (774,469) (1,098,914)
------------ ------------ ------------- --------------
</Table>
27
<Page>
<Table>
Managers Small Company Managers International Equity
Fund Managers Special Equity Fund Fund
- ----------------------------- ---------------------------- ----------------------------
June 30, 2003 2002 June 30, 2003 2002 June 30, 2003 2002
- -------------- ------------- -------------- ------------ -------------- ------------
$ (77,615) $ (255,176) $ (6,683,232) $ (12,143,233) $ 2,496,801 $ 2,392,602
$ (164,177) (2,115,708) (91,340,895) (253,372,972) (22,261,410) (69,703,532)
2,046,924 (3,562,952) 368,727,609 (283,156,757) 41,863,481 (7,735,248)
- -------------- ------------- -------------- ------------ -------------- -------------
1,805,132 (5,933,836) 270,703,482 (548,672,962) 22,098,872 (75,046,178)
- -------------- ------------- -------------- ------------ -------------- -------------
- - - - - (1,120,045)
- - - - - -
- -------------- ------------- -------------- ------------ -------------- -------------
- - - - - (1,120,045)
- -------------- ------------- -------------- ------------ -------------- -------------
2,000,351 9,073,336 417,046,578 1,149,374,210 559,454,483 871,905,009
- - - - - 871,895
(1,993,796) (17,294,049) (314,018,565) (875,114,615) (684,741,430) (994,651,635)
6,555 (8,220,713) 103,028,013 274,259,595 (125,286,947) (121,874,731)
- -------------- ------------- -------------- ------------ -------------- -------------
1,811,687 (14,154,549) 373,731,495 (274,413,367) (103,188,075) (198,040,954)
- -------------- ------------- -------------- ------------ -------------- -------------
12,609,615 26,764,164 2,020,820,653 2,295,234,020 362,561,347 560,602,301
- -------------- ------------- -------------- ------------- -------------- -------------
$14,421,302 $12,609,615 $2,394,552,148 $2,020,820,653 $259,373,272 $362,561,347
============== ============= ============== ============= ============== =============
$ (77,615) $ - $ (5,955,820) $ 727,412 $2,957,099 $460,298
- -------------- ------------- -------------- ------------ -------------- -------------
301,706 1,235,450 7,449,672 18,231,988 18,253,323 25,336,017
- - - - - 27,968
(302,871) (2,544,247) (5,679,713) (14,059,826) (22,128,916) (28,655,040)
- -------------- ------------- -------------- ------------ -------------- -------------
(1,165) (1,308,797) 1,769,959 4,172,162 (3,875,593) (3,291,055)
- -------------- ------------- -------------- ------------ -------------- -------------
</Table>
The accompanying notes are an integral part of these financial
statements.
28
<Page>
Statements of Changes in Net Assets (continued)
For the six months ended June 30, 2003, (unaudited)
and for the fiscal year ended December 31, 2002
- -----------------------------------------------------
<Table>
Managers Emerging Managers Intermediate
Markets Equity Fund Bond Fund
----------------------------- ----------------------------
June 30, 2003 2002 June 30, 2003 2002
-------------- ------------- -------------- ------------
Increase (Decrease) in
Net Assets
- -----------------------
From Operations:
Net investment income
(loss) $ 73,753 $ 75,611 $ 25,876 $ 945,029
Net realized gain (loss)
on investments and foreign
currency transactions (284,721) (3,724,194) 53,758 (1,345,911)
Net unrealized appreciation
(depreciation) of
investments and foreign
currency translations 3,761,352 134,712 47,986 (14,499)
-------------- ------------- -------------- -------------
Net increase (decrease)in
net assets resulting
from operations 3,550,384 (3,513,871) 127,620 (415,381)
-------------- ------------- -------------- -------------
Distributions to Shareholders:
- -------------------------------
From net investment income - - (96,697) (1,059,253)
From net realized gain
on investments - - - -
-------------- ------------- -------------- -------------
Total distributions
to shareholders - - (96,697) (1,059,253)
-------------- ------------- -------------- -------------
From Capital Share
Transactions:
- -----------------------
Proceeds from sale
of shares 59,389,038 65,785,537 10,663,327 16,376,920
Reinvestment of
distributions - - 85,743 1,018,163
Cost of shares
repurchased (61,458,875) (55,262,191) (15,170,440) (28,998,989)
-------------- ------------- -------------- ------------
Net increase (decrease)
from capital share
transactions (2,069,837) 10,523,346 (4,421,370) (11,603,906)
-------------- ------------- -------------- -------------
Total increase (decrease)
in net assets 1,480,547 7,009,475 (4,390,447) (13,078,540)
-------------- ------------- -------------- -------------
Net Assets:
- --------------------
Beginning of period 22,211,247 15,201,772 7,673,754 20,752,294
-------------- ------------- -------------- ------------
End of period $23,691,794 $22,211,247 $3,283,307 $7,673,754
============== ============= ============== ============
End of period undistributed
net investment
income (loss) $142,247 $68,494 $(1,948) $68,873
-------------- ------------- -------------- -------------
Share Transactions:
- -------------------
Sale of shares 6,607,390 6,863,890 588,298 872,851
Reinvested shares - - 4,725 54,124
Shares repurchased (6,799,222) (5,929,474) (835,287) (1,573,378)
-------------- ------------- -------------- -------------
Net increase (decrease)
in shares (191,832) 934,416 (242,264) (646,403)
-------------- ------------- -------------- -------------
</Table>
29
<Page>
<Table>
Managers Global Bond
Managers Bond Fund Fund
- ----------------------------- ----------------------------
June 30, 2003 2002 June 30, 2003 2002
- -------------- ------------- -------------- ------------
$ 3,415,458 $ 5,195,981 $ 476,863 $ 790,401
1,548,622 (137,200) 1,681,333 268,818
7,961,916 5,423,065 893,296 2,196,080
- -------------- ------------- -------------- ------------
12,925,996 10,481,846 3,051,492 3,255,299
- -------------- ------------- -------------- ------------
(3,519,992) (5,176,925) - (517,386)
- - - (202,091)
- -------------- ------------- -------------- ------------
(3,519,992) (5,176,925) - (719,477)
- -------------- ------------- -------------- ------------
82,334,264 107,397,740 39,490,686 15,879,478
3,165,613 4,840,905 - 717,129
(54,646,492) (56,020,017) (37,953,978) (19,283,886)
- -------------- ------------- -------------- ------------
30,853,385 56,218,628 1,536,708 (2,669,279)
- -------------- ------------- -------------- ------------
40,259,389 61,523,549 4,588,200 (133,457)
- -------------- ------------- -------------- ------------
128,340,594 66,817,045 19,745,972 19,879,429
- -------------- ------------- -------------- ------------
$168,599,983 $128,340,594 $24,334,172 $19,745,972
============== ============= ============== ============
$ 15,994 $ 120,528 $ 886,816 $ 409,953
- -------------- ------------- -------------- ------------
3,420,442 4,739,162 1,797,162 822,185
131,441 213,942 - 35,233
(2,249,728) (2,471,701) (1,708,966) (1,004,342)
- -------------- ------------- -------------- ------------
1,302,155 2,481,403 88,196 (146,924)
- -------------- ------------- -------------- ------------
</Table>
The accompanying notes are an integral part of these financial
statements.
30
<Page>
Financial Highlights
For a share outstanding throughout the six months ended
June 30, 2003, (unaudited) and each fiscal year ended
December 31,
- ---------------------------------------------------------
<Table>
Managers Value Fund
-------------------------------------------------------------------------
June 30,
2003 2002 2001 2000 1999 1998
--------- ---------- ---------- ---------- ----------- -------------
Net Asset Value, Beginning of
Period $ 20.69 $ 27.45 $ 27.73 $ 27.50 $ 30.67 $ 31.06
--------- ---------- ---------- ---------- ----------- ----------
Income from Investment
Operations:
- -----------------------------
Net investment income 0.04 0.15 0.09 0.17 0.30 0.41
Net realized and unrealized
gain (loss) on investments 2.14 (6.65) 0.70 2.45 0.91 3.10
--------- ---------- ---------- ---------- ----------- ----------
Total from investment operations 2.18 (6.50) 0.79 2.62 1.21 3.51
--------- ---------- ---------- ---------- ----------- ----------
Less Distributions to Shareholders
from:
- ----------------------------
Net investment income - (0.16) (0.08) (0.17) (0.29) (0.41)
Net realized gain on investments - (0.10) (0.99) (2.22) (4.09) (3.49)
--------- ---------- ---------- ---------- ----------- ----------
Total distributions to shareholders - (0.26) (1.07) (2.39) (4.38) (3.90)
--------- ---------- ---------- ---------- ----------- ----------
Net Asset Value, End of Period $22.87 $20.69 $27.45 $27.73 $27.50 $30.67
========= ========== ========== ========== =========== ==========
Total Return (1) 10.58% (2) (23.79)% 2.92% 9.80% 4.15% 11.77%
Ratio of net expenses to average
net assets (1) 1.37% (3) 1.28% 1.25% 1.30% 1.35% 1.28%
Ratio of total expenses to
average net assets (1) 1.44% (3,5) 1.35% 1.35% 1.38% 1.35% 1.32%
Ratio of net investment income
to average net assets 0.53% (3) 0.60% 0.43% 0.61% 0.92% 1.26%
Portfolio turnover 19% (2) 53% 147% 153% 94% 84%
Net assets at end of period
(000's omitted) $73,157 $48,001 $63,628 $57,300 $42,471 $69,391
========= ========== ========== ========== =========== ==========
</Table>
<Table>
Managers Capital Appreciation Fund
-------------------------------------------------------------------------
June 30,
2003 2002 2001 2000 1999 1998
--------- ---------- ---------- ---------- ----------- -------------
Net Asset Value, Beginning
of Period $ 20.36 $ 29.29 $ 42.79 $ 61.12 $ 33.78 $ 24.24
--------- ---------- ---------- ---------- ----------- ------------
Income from Investment Operations:
- ----------------------------------
Net investment loss (0.12) (0.28) (0.25) (0.42) (0.27) (0.23)
Net realized and unrealized gain
(loss) on investments 2.43 (8.65) (13.25) (13.25) 34.81 14.18
--------- ---------- ---------- ---------- ----------- ------------
Total from investment operations 2.31 (8.93) (13.50) (13.67) 34.54 13.95
--------- ---------- ---------- ---------- ----------- ------------
Less Distributions to Shareholders from:
- ----------------------------------------
Net realized gain on investments - - - (4.66) (7.20) (4.41)
--------- ---------- ---------- ---------- ----------- ------------
Net Asset Value, End of Period $ 22.67 $ 20.36 $ 29.29 $ 42.79 $ 61.12 $ 33.78
========= ========== ========== ========== =========== ============
Total Return (1) 11.35% (2) (30.49)% (31.55)% (22.20)% 103.02% 57.41%
Ratio of net expenses to average
net assets (1) 1.50% (3) 1.39% 1.34% 1.23% 1.26% 1.29%
Ratio of total expenses to
average net assets (1) 1.56% (3,5) 1.43% 1.40% 1.26% 1.30% 1.36%
Ratio of net investment loss
to average net assets (1.05)% (3) (1.07)% (0.75)% (0.82)% (0.86)% (0.80)%
Portfolio turnover 56% (2) 141% 265% 306% 200% 252%
Net assets at end of period
(000's omitted) $ 102,173 $ 107,545 $ 186,876 $ 286,515 $ 248,487 $ 88,191
========= ========== ========== ========== =========== ============
</Table>
31
<Page>
Financial Highlights
For a share outstanding throughout the six months ended
June 30, 2003, (unaudited) and each fiscal year ended
December 31,
- ---------------------------------------------------------
<Table>
Managers Small Company Fund
---------------------------------------------
June 30,
2003 2002 2001 2000*
--------- ---------- ---------- ----------
Net Asset Value, Beginning of
Period $ 6.40 $ 8.16 $ 9.29 $ 10.00
--------- ---------- ---------- ----------
Income from Investment
Operations:
- ----------------------------
Net investment loss (0.04) (0.13) (0.07) (0.01)
Net realized and unrealized
gain (loss) on investments 0.96 (1.63) (1.06) (0.70)
--------- ---------- ---------- ----------
Total from investment operations 0.92 (1.76) (1.13) (0.71)
--------- ---------- ---------- ----------
Net Asset Value, End of Period $ 7.32 $ 6.40 $ 8.16 $ 9.29
========= ========== ========== ==========
Total Return (1) 14.38% (2) (21.57)% (12.16)% (7.10)% (2)
Ratio of net expenses to average
net assets (1) 1.45% (3) 1.40% 1.30% 1.30% (3)
Ratio of total expenses to
average net assets (1) 1.66% (3,5) 1.70% 1.71% 1.72% (3)
Ratio of net investment loss
to average net assets (1.22)% (3) (1.17)% (0.92)% (0.45)% (3)
Portfolio turnover 19% (2) 134% 95% 55% (2)
Net assets at end of period
(000's omitted) $ 14,421 $ 12,610 $ 26,764 $ 25,705
========= ========== ========== ==========
</Table>
*Commencement of operations was June 19, 2000.
<Table>
Managers Special Equity Fund
-------------------------------------------------------------------------
June 30,
2003 2002 2001 2000 1999 1998
--------- ---------- ---------- ---------- ----------- -------------
Net Asset Value, Beginning of
Period $ 55.08 $ 70.59 $ 76.82 $ 91.42 $ 61.23 $ 61.18
--------- ---------- ---------- ---------- ----------- -----------
Income from Investment Operations:
- ----------------------------------
Net investment loss (0.17) (0.34) (0.18) (0.12) (0.29) (0.14)
Net realized and unrealized
gain (loss) on investments 7.35 (15.17) (6.05) (2.71) 33.30 0.26
--------- ---------- ---------- ---------- ----------- -----------
Total from investment operations 7.18 (15.51) (6.23) (2.83) 33.01 0.12
--------- ---------- ---------- ---------- ----------- -----------
Less Distributions to Shareholders
from:
- ----------------------------------
Net realized gain on investments - - - (11.77) (2.82) (0.07)
--------- ---------- ---------- ---------- ----------- -----------
Net Asset Value, End of Period $ 62.26 $ 55.08 $ 70.59 $ 76.82 $ 91.42 $ 61.23
========= ========== ========== =========== =========== ===========
Total Return (1) 13.04% (2) (21.98)% (8.07)% (2.56)% 54.11% 0.20%
Ratio of net expenses to average
net assets (1) 1.38% (3) 1.31% 1.29% 1.26% 1.31% 1.34%
Ratio of total expenses to
average net assets (1) 1.41% (3,5) 1.32% 1.30% 1.26% 1.31% 1.34%
Ratio of net investment loss
to average net assets (0.65)% (3) (0.56)% (0.27)% (0.16)% (0.47)% (0.26)%
Portfolio turnover 26% (2) 67% 62% 69% 89% 64%
Net assets at end of period
(000's omitted) $2,394,552 $ 2,020,821 $ 2,295,234 $ 2,132,376 $ 1,543,150 $ 959,939
========== =========== ========== =========== =========== ===========
</Table>
32
<Page>
Financial Highlights
For a share outstanding throughout the six months ended
June 30, 2003, (unaudited) and each fiscal year ended
December 31,
- ---------------------------------------------------------
<Table>
Managers International Equity Fund
-------------------------------------------------------------------------
June 30,
2003 2002 2001 2000 1999 1998
--------- ---------- ---------- ---------- ----------- -------------
Net Asset Value, Beginning of
Period $ 31.22 $ 37.61 $ 49.38 $ 58.71 $ 48.85 $ 45.58
--------- ---------- ---------- ---------- ---------- ----------
Income from Investment Operations:
- ----------------------------------
Net investment income 0.34 0.19 0.20 (4) 0.27 0.35 0.54
Net realized and unrealized gain
(loss) on investments 1.96 (6.48) (11.72) (4) (5.38) 11.96 6.06
--------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 2.30 (6.29) (11.52) (5.11) 12.31 6.60
--------- ---------- ---------- ---------- ---------- ----------
Less Distributions to
Shareholders from:
- ------------------------------
Net investment income - (0.10) (0.25) (0.24) (0.35) (0.37)
Net realized gain on investments - - - (3.98) (2.10) (2.96)
--------- ---------- ---------- ---------- ---------- ----------
Total distributions to shareholders - (0.10) (0.25) (4.22) (2.45) (3.33)
--------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period $ 33.52 $ 31.22 $ 37.61 $ 49.38 $ 58.71 $ 48.85
========= ========== ========== ========== ========== ==========
Total Return (1) 7.30% (2) (16.71)% (23.35)% (8.46)% 25.28% 14.54%
Ratio of net expenses to
average net assets (1) 1.74% 31.54% 1.45% 1.41% 1.40% 1.41%
Ratio of total expenses to
average net assets (1) 1.74% (3) 1.56% 1.46% 1.42% 1.41% 1.42%
Ratio of net investment income
to average net assets 1.60% (3) 0.54% 0.46% (4) 0.42% 0.66% 1.05%
Portfolio turnover 41% (2) 132% 108% 99% 43% 56%
Net assets at end of period
(000's omitted) $259,373 $362,561 $560,602 $656,630 $704,209 $552,826
========= ========== ========== ========== ========== ==========
</Table>
<Table>
Managers Emerging Markets Equity Fund
-------------------------------------------------------------------------
June 30,
2003 2002 2001 2000 1999 1998*
--------- ---------- ---------- ---------- ----------- -------------
Net Asset Value, Beginning
of Period $ 8.80 $ 9.56 $ 9.63 $ 14.67 $ 7.74 $ 10.00
--------- ---------- ---------- ---------- --------- ----------
Income from Investment Operations:
- ----------------------------------
Net investment income (loss) 0.03 0.03 (0.01) (0.04) 0.03 (0.01)
Net realized and unrealized
gain (loss) on investments 1.33 (0.79) (0.04) (3.90) 6.93 (2.25)
--------- ---------- ---------- ---------- --------- ----------
Total from investment operations 1.36 (0.76) (0.05) (3.94) 6.96 (2.26)
--------- ---------- ---------- ---------- --------- ----------
Less Distributions to
Shareholders from:
- --------------------------------
Net investment income - - - - (0.03) -
Net realized gain on investments - - (0.02) (1.10) - -
--------- ---------- ---------- ---------- --------- ----------
Total distributions to shareholders - - (0.02) (1.10) (0.03) -
--------- ---------- ---------- ---------- --------- ----------
Net Asset Value, End of Period $ 10.16 $ 8.80 $ 9.56 $ 9.63 $ 14.67 $ 7.74
========= ========== ========== ========== ========= ==========
Total Return (1) 15.34% (2) (7.95)% (0.57)% (26.69)% 90.06% (22.60)%
Ratio of net expenses to average
net assets (1) 1.99% (3) 1.97% 1.94% 1.98% 1.85% 2.54%
Ratio of total expenses to
average net assets (1) 2.09% (3,5) 2.18% 2.36% 2.48% 2.52% 3.57%
Ratio of net investment income
(loss) to average net assets 0.64% (3) 0.32% (0.09)% (0.34)% 0.37% (0.09)%
Portfolio turnover 38% (2) 68% 69% 40% 119% 89%
Net assets at end of period
(000's omitted) $ 23,692 $ 22,211 $ 15,202 $ 12,390 $ 12,434 $ 4,677
========= ========== ========== ========== ========= ==========
</Table>
*Commencement of operations was February 9, 1998.
33
<Page>
Financial Highlights
For a share outstanding throughout the six months ended
June 30, 2003, (unaudited) and each fiscal year ended
December 31,
- ---------------------------------------------------------
<Table>
Managers Intermediate Bond Fund
-------------------------------------------------------------------------
June 30,
2003 2002 2001 2000 1999 1998
--------- ---------- ---------- ---------- ----------- -------------
Net Asset Value, Beginning
of Period $ 18.15 $ 19.41 $ 19.20 $ 18.90 $ 19.49 $ 19.51
--------- ---------- ---------- ---------- ---------- -----------
Income from Investment Operations:
- --------------------------------
Net investment income 0.08 0.70 0.98 (4) 1.05 1.00 1.02
Net realized and unrealized
gain (loss) on investments 0.21 (0.99) 0.25 (4) 0.31 (0.59) 0.00
--------- ---------- ---------- ---------- ---------- -----------
Total from investment operations 0.29 (0.29) 1.23 1.36 0.41 1.02
--------- ---------- ---------- ---------- ---------- -----------
Less Distributions to
Shareholders from:
- ------------------------------
Net investment income (0.25) (0.97) (1.02) (1.06) (1.00) (1.04)
--------- ---------- ---------- ---------- ---------- -----------
Net Asset Value, End of Period $ 18.19 $ 18.15 $ 19.41 $ 19.20 $ 18.90 $ 19.49
========= ========== ========== ========== ========== ===========
Total Return (1) 1.55% (2) (1.51)% 6.50% 7.40% 2.21% 5.36%
Ratio of net expenses to
average net assets (1) 1.26% (3) 1.26% 1.26% 1.26% 1.29% 1.32%
Ratio of total expenses to
average net assets (1) 1.81% (3,5) 1.26% 1.26% 1.26% 1.29% 1.33%
Ratio of net investment income
to average net assets 0.73% (3) 4.59% 4.90% (4) 5.57% 5.20% 5.22%
Portfolio turnover 40% (2) 222% 153% 90% 92% 115%
Net assets at end of
period (000's omitted) $ 3,283 $ 7,674 $ 20,752 $ 20,690 $ 17,866 $ 18,408
========= ========== ========== ========== ========== ===========
</Table>
<Table>
Managers Bond Fund
-------------------------------------------------------------------------
June 30,
2003 2002 2001 2000 1999 1998
--------- ---------- ---------- ---------- ----------- -------------
Net Asset Value, Beginning
of Period $ 23.44 $ 22.32 $ 21.75 $ 21.45 $ 22.19 $ 23.72
--------- ---------- ---------- ---------- ----------- ----------
Income from Investment Operations:
- ----------------------------------
Net investment income 0.54 1.24 1.44 1.49 1.45 1.46
Net realized and unrealized
gain (loss) on investments 1.46 1.12 0.60 0.48 (0.65) (0.69)
--------- ---------- ---------- ---------- ----------- ----------
Total from investment operations 2.00 2.36 2.04 1.97 0.80 0.77
--------- ---------- ---------- ---------- ----------- ----------
Less Distributions to
Shareholders from:
- ------------------------------
Net investment income (0.56) (1.24) (1.45) (1.50) (1.45) (1.45)
Net realized gain on investments - - (0.02) (0.17) (0.09) (0.85)
--------- ---------- ---------- ---------- ----------- ----------
Total distributions to shareholders (0.56) (1.24) (1.47) (1.67) (1.54) (2.30)
--------- ---------- ---------- ---------- ----------- ----------
Net Asset Value, End of Period $ 24.88 $ 23.44 $ 22.32 $ 21.75 $ 21.45 $ 22.19
========= ========== ========== ========== =========== ==========
Total Return (1) 8.59% (2) 10.98% 9.64% 9.44% 3.66% 3.34%
Ratio of net expenses to average
net assets (1) 0.99% (3) 1.00% 1.18% 1.19% 1.25% 1.21%
Ratio of total expenses to
average net assets (1) 1.17% (3,5) 1.17% 1.18% 1.20% 1.26% 1.21%
Ratio of net investment income
to average net assets 4.60% (3) 5.55% 6.45% 6.91% 6.52% 6.18%
Portfolio turnover 31% (2) 24% 16% 10% 39% 55%
Net assets at end of period
(000's omitted) $ 168,600 $ 128,341 $ 66,817 $ 51,383 $ 33,389 $ 42,730
========= ========== ========== ========== =========== ==========
</Table>
34
<Page>
Financial Highlights
For a share outstanding throughout the six months ended
June 30, 2003, (unaudited) and each fiscal year ended
December 31,
- ---------------------------------------------------------
<Table>
Managers Global Bond Fund
-------------------------------------------------------------------------
June 30,
2003 2002 2001 2000 1999 1998
--------- ---------- ---------- ---------- ----------- -------------
Net Asset Value, Beginning
of Period $ 20.58 $ 17.97 $ 18.98 $ 19.44 $ 22.38 $ 20.93
--------- ---------- ---------- ---------- ---------- -----------
Income from Investment Operations:
- ----------------------------------
Net investment income 0.42 0.81 0.57 (4) 0.72 0.82 0.92
Net realized and unrealized
gain (loss) on investments 2.23 2.57 (1.33) (4) (1.06) (3.05) 3.08
--------- ---------- ---------- ---------- ---------- -----------
Total from investment operations 2.65 3.38 (0.76) (0.34) (2.23) 4.00
--------- ---------- ---------- ---------- ---------- -----------
Less Distributions to
Shareholders from:
- ------------------------------
Net investment income - (0.55) - (0.12) (0.49) (1.16)
Net realized gain on investments - (0.22) (0.25) - (0.22) (1.39)
--------- ---------- ---------- ---------- ---------- -----------
Total distributions to shareholders - (0.77) (0.25) (0.12) (0.71) (2.55)
--------- ---------- ---------- ---------- ---------- -----------
Net Asset Value, End of Period $ 23.23 $ 20.58 $ 17.97 $ 18.98 $ 19.44 $ 22.38
========= ========== ========== ========== ========== ===========
Total Return (1) 12.88% (2) 18.85% (4.10)% (1.62)% (9.97)% 19.27%
Ratio of net expenses to
average net assets (1) 1.48% (3) 1.55% 1.45% 1.47% 1.54% 1.53%
Ratio of total expenses to average
net assets (1) 1.48% (3) 1.56% 1.46% 1.50% 1.54% 1.56%
Ratio of net investment income
to average net assets 3.71% (3) 4.01% 2.87% (4) 4.07% 3.77% 4.14%
Portfolio turnover 117% (2) 220% 244% 176% 171% 232%
Net assets at end of period
(000's omitted) $ 24,334 $ 19,746 $ 19,879 $ 22,723 $ 19,073 $ 22,067
========= ========== ========== ========== ========== ===========
</Table>
The following notes should be read in conjunction with the
Financial Highlights of the Funds presented on the preceding
pages.
(1) See Note 1(c)of "Notes to Financial Statements."
(2) Not Annualized.
(3) Annualized.
(4) Effective January 1,2001, the Trust adopted the provisions of
the AICPA Audit and Accounting Guide for Investment
Companies and began amortizing premium and discount on all debt
securities, as required. The effect of this change
during the year ended December 31, 2001 on International
Equity, Intermediate Bond and Global Bond was to decrease
net investment income and increase net realized and unrealized
gain (loss) per share by $0.01, $0.04 and $0.04,
respectively. The effect of this change on the remaining Funds was
not significant. Without this change the ratio of net
investment income to average net assets for the year ended
December 31, 2001 for International Equity, Intermediate
Bond and Global Bond would have been 0.46%, 5.22% and
3.08%, respectively. Per share data, ratios and supplemental
data for prior periods have not been restated to reflect this
change.
(5) Excludes the impact of expense reimbursements and expense offsets
such as brokerage credits,but includes non-reimbursable expenses
such as interest and taxes. (See Note 1c to the Notes to Financial
Statements.)
35
<Page>
Notes to Financial Statements (unaudited)
June 30,2003
- -----------------------------------------------------------------
(1) Summary of Significant Accounting Policies
==============================================
The Managers Funds (the "Trust") is a no-load, open-end, management
investment company, organized as a Massachusetts business trust,
and registered under the Investment Company Act of 1940, as amended
(the "1940 Act "). Currently, the Trust is comprised of 10
investment series. Included in this report are six equity funds,
Managers Value Fund ("Value "), Managers Capital Appreciation Fund
("Capital Appreciation "), Managers Small Company Fund ("Small
Company"), Managers Special Equity Fund ("Special Equity"),
Managers International Equity Fund ("International Equity") and
Managers Emerging Markets Equity Fund ("Emerging Markets Equity")
(collectively the "Equity Funds") and three fixed-income funds,
Managers Intermediate Bond Fund ("Intermediate Bond"), Managers
Bond Fund ("Bond"), and Managers Global Bond Fund ("Global Bond")
(collectively the "Fixed-Income Funds"), collectively the
"Funds." The Funds' financial statements are prepared in
accordance with accounting principles generally accepted in
the United States of America, which require management to make
estimates and assumptions that affect the reported amount of assets
and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of
income and expenses during the reporting periods. Actual results
could differ from those estimates. The following is a summary of
significant accounting policies followed by the Funds in the
preparation of their financial statements:
(a) Valuation of Investments
============================
Equity securities traded on a domestic or international
securities exchange and over-the-counter securities are valued
at the last quoted sale price, or, lacking any sales, at the last
quoted bid price. Fixed-income securities are valued
based on valuations furnished by independent pricing services
that utilize matrix systems, which reflect such factors
as security prices, yields, maturities and ratings, and are
supplemented by dealer and exchange quotations. Short-term
investments having a remaining maturity of 60 days or less
are valued at amortized cost, which approximates market value.
Investments in other regulated investment companies are valued at
their end of day net asset value per share except iShares which
are valued the same as equity securities. Securities (including
derivatives) for which market quotations are not readily
available are valued at fair value, as determined in good faith,
and pursuant to procedures adopted by the Board of Trustees of the
Trust.
Investments in certain mortgage-backed, stripped mortgage-
backed, preferred stocks, convertible securities and other
debt securities not traded on an organized market, are valued on
the basis of valuations provided by dealers or by a pricing
service which uses information with respect to transactions in
such securities, various relationships between securities and
yield to maturity in determining value.
(b) Security Transactions
========================
Security transactions are accounted for as of trade date. Realized
gains and losses on securities sold are determined on the basis of
identified cost.
(c) Investment Income and Expenses
=================================
Dividend income is recorded on the ex-dividend date, except
certain dividends from foreign securities where the ex-dividend
date may have passed.These dividends are recorded as soon as the
Trust is informed of the ex-dividend date. Dividend income on
foreign securities is recorded net of anywithholding tax. Interest
income, which includes amortization of premium and accretion of
discount on debt securities is accrued as earned. Non-cash dividends
included in dividend income, if any, are reported at the fair
market value of the securities received. Other income and expenses
are recorded on an accrual basis. Expenses that cannot be directly
attributed to a fund are apportioned among the Funds in the Trust
and in some cases other affiliated funds based upon their relative
average net assets or number of shareholders. The following Funds
had certain portfolio trades directed to various brokers who paid a
portion of such Fund's expenses. For the six months ended June
30, 2003, under these arrangements the amount by which the Funds'
expenses were reduced and the impact on the expense ratio was as
follows: Value - $19,705 or 0.07% ;Capital Appreciation - $30,055
or 0.06% ; Special Equity - $326,141 or 0.03% ; Small Company - $4,903
or 0.08%; and International Equity - $6,413 or less than 0.01% . In
addition, each of the Funds have a "balance credit" arrangement
with Bank of New York ("BNY"), the Funds' custodian, whereby each
Fund is credited with an interest factor equal to 1% below the
effective 90 day T-Bill rate for account balances left uninvested
overnight. These credits serve to reduce custody expenses that
would otherwise be charged to each Fund. For the six months ended
June 30, 2003, the custodian expense was reduced under this
arrangement as follows: Value - $45; Capital Appreciation - $233;
Small Company - $3; Special Equity - $2,484; International Equity -
$466; Emerging Markets Equity - $13; Intermediate Bond - $71; Bond -
$18; and Global Bond - $6. In each case the reduction in the Fund's
expense ratio was less than 0.01%. The Managers Funds LLC (the
"Investment Manager"), a subsidiary of Affiliated Managers Group, Inc.
("AMG"), has contractually agreed, through at least May 1, 2004, to
waive fees and pay or reimburse Small Company, Emerging Market Equity,
Intermediate Bond, and Bond to the extent that the total operating
expenses (exclusive of brokerage,
36
<Page>
Notes to Financial Statements (continued)
- -----------------------------------------------------------------
interest,taxes and extraordinary expenses)of the Fund exceed
1.45%, 1.99%, 1.26% effective January 1, 2003, and 0.99%,
respectively, of each Fund's average daily net assets. Each Fund
is obligated to repay the Investment Manager such amount waived,
paid or reimbursed in future years provided that the repayment
occurs within three (3) years after the waiver or reimbursement
and that such repayment would not cause the Fund's expenses in
any such year to exceed 1.45%, 1.99%, and 0.99%, respectively, of
the Fund's average daily net assets. For the six months ended June
30, 2003, the reduction in the expense ratio due to these
reimbursements was 0.13%, 0.06%, 0.048%, and 0.03% for Small
Company, Emerging Markets Equity, Intermediate Bond, and Bond,
respectively. At June 30,2003,the cumulative amount of the
reimbursement for Small Company, Emerging Markets Equity,
Intermediate Bond and Bond was $8,223, $5,945, $16,962 and
$21,346, respectively. Total returns and net investment income
for the Funds would have been lower had certain expenses not
been offset.
(d) Dividends and Distributions
===============================
Dividends resulting from net investment income, if any, normally
will be declared and paid annually for Global Bond and the Equity
Funds, except for Value. Dividends resulting from net investment
income, if any, normally will be declared and paid quarterly for
Value and monthly for Bond and Intermediate Bond. Distributions
of capital gains, if any, will be made on an annual basis and
when required for federal excise tax purposes. Income and capital
gain distributions are determined in accordance with Federal income
tax regulations, which may differ from generally accepted accounting
principles. These differences are primarily due to differing
treatments for losses deferred due to wash sales, equalization
accounting for tax purposes, foreign currency and market discount
transactions. Permanent book and tax basis differences, if any,
relating to shareholder distributions will result in
reclassifications to paid-in-capital.
(e) Federal Taxes
=================
Each Fund intends to comply with the requirements under Subchapter M
of the Internal Revenue Code of 1986, as amended; to distribute
substantially all of its taxable income and gains to its shareholders
and to meet certain diversification and income requirements with
respect to investment companies. Therefore, no provision for Federal
income or excise tax is included in the accompanying financial
statements.
(f) Capital Loss Carryovers
==========================
As of June 30, 2003, the following Funds had accumulated net
realized capital loss carryovers from securities transactions for
Federal income tax purposes as shown in the following chart. These
amounts may be used to offset realized capital gains, if any, through
December 31, 2010.
<Table>
Capital Loss
Fund Carryover Amount Expires Dec.31,
- ---------------------- ---------------------- -------------------
Value $ 5,881,884 2010
Capital Appreciation 122,787,551 2009
30,988,593 2010
Small Company 1,266,755 2008
6,267,133 2009
1,700,278 2010
Special Equity 207,747,048 2009
241,655,063 2010
International Equity 52,865,926 2009
92,266,533 2010
Emerging Markets 1,758,199 2009
3,645,752 2010
Intermediate Bond 7,662,253 2003
70,508 2004
179,401 2005
212,653 2007
165,024 2008
1,220,529 2010
Bond 19,346 2009
Global Bond 82,421 2010
</Table>
37
<Page>
Notes to Financial Statements (continued)
- -----------------------------------------------------------------
(g) Capital Stock
=================
The Trust's Declaration of Trust authorizes for each series the
issuance of an unlimited number of shares of beneficial
interest, without par value. Each Fund records sales and
repurchases of its capital stock on the trade date. Dividends
and distributions to shareholders are recorded on the ex-dividend
date.
At June 30, 2003, certain unaffiliated shareholders, specifically
omnibus accounts, individually held greater than 10% of the outstanding
shares of the following Funds: Value - one owns 40%; Capital
Appreciation - one owns 21%; Special Equity - two own 34%; International
Equity - two own 34%; Emerging Markets Equity - two own 45%;
Intermediate Bond - one owns 26%; and Bond - three own 57%.
(h) Repurchase Agreements
=========================
Each Fund may enter into repurchase agreements provided that the
value of the underlying collateral, including accrued interest, will be
equal to or exceed the value of the repurchase agreement during the
term of the agreement. The underlying collateral for all repurchase
agreements is held in safekeeping by the Fund's custodian or at the
Federal Reserve Bank.
If the seller defaults and the value of the collateral declines, or
if bankruptcy proceedings commence with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or
limited.
(i) Foreign Currency Translation
================================
The books and records of the Funds are maintained in U.S. dollars. The
value of investments, assets and liabilities denominated in currencies
other than U.S. dollars are translated into U.S. dollars based upon
current foreign ex-change rates. Purchases and sales of foreign
investments, income and expenses are converted into U.S. dollars based
on currency exchange rates prevailing on the respective dates of such
transactions. Net realized and unrealized gain (loss) on foreign currency
transactions represent: (1) foreign exchange gains and losses from the
sale and holdings of foreign currencies; (2) gains and losses between
trade date and settlement date on investment securities transactions
and forward foreign currency exchange contracts;and (3)gains and
losses from the difference between amounts of interest and dividends
recorded and the amounts actually received.
In addition, the Funds do not isolate the net realized and unrealized
gain or loss resulting from changes in exchange rates from the
fluctuations resulting from changes in market prices of securities held.
Such fluctuations are included with the net realized and unrealized gain
or loss on investments.
(2) Agreements and Transactions with Affiliates
===============================================
The Trust has entered into a Fund Management Agreement under which the
Investment Manager provides or oversees investment advisory and management
services to the Funds. The Investment Manager selects portfolio managers for
each Fund (subject to Trustee approval), allocates assets among portfolio
managers and monitors the portfolio managers' investment programs and
results. Each Fund's investment portfolio is managed by portfolio managers
who serve pursuant to Portfolio Management Agreements with the Investment
Manager and the Fund.The Funds are distributed by Managers Distributors,
Inc. ("MDI"), a wholly-owned subsidiary of The Managers Funds LLC. Certain
Trustees and Officers of the Funds are Officers and/or Directors of the
Investment Manager, AMG and/or MDI.
Investment advisory and management fees are paid directly by each Fund to
the Investment Manager based on average daily net assets. The annual
investment advisory and management fee rates, as a percentage of average daily
net assets for the six months ended June 30, 2003, were as follows:
<Table>
Investment Advisory
Fund and Management Fee
- ----------------------- ---------------------
Value 0.75%
Capital Appreciation 0.80%
Small Company 0.90%
Special Equity 0.90%
International Equity 0.90%
Emerging Markets Equity 1.15%
Bond 0.625%
Global Bond 0.70%
Intermediate Bond 0.50%
</Table>
The Trust has entered into a Administration and Shareholder
Servicing Agreement under which The Managers Funds LLC serves as
each Fund's administrator (the "Administrator ")and is responsible
for all aspects of managing the Funds' operations, including
administration and shareholder services to each Fund, its
shareholders, and certain
38
<Page>
Notes to Financial Statements (continued)
- -----------------------------------------------------------------
institutions, such as bank trust departments, broker-dealers and
registered investment advisers, that advise or act as an intermediary
with the Funds' shareholders. During the six months ended June 30,
2003,each of the Funds, except Global Bond, paid a fee to the
Administrator at the rate of 0.25% per annum of the Fund's average
daily net assets. Global Bond paid a fee to the Administrator at the
rate of 0.20% per annum of the Fund's average daily net assets.
The aggregate annual fee paid to each outside Trustee for serving
as a Trustee of the Trust is $20,000. In addition, the in-person and
telephonic meeting fees the Trustees receive are $1,000 and $500 per
meeting, respectively. The Trustee fee expense shown in the financial
statements represents each Fund's allocated portion of the total fees
and expenses paid by the Trust and other affiliated funds in the
complex.
(3) Purchases and Sales of Securities
=====================================
Purchases and sales of securities,excluding short-term
securities, for the six months ended June 30, 2003, were as
follows:
<Table>
Long-Term Securities U.S.Government Securities
------------------------------ -------------------------------
Fund Purchases Sales Purchases Sales
- ---------------------- ------------- -------------- -------------- ---------------
Value $ 24,903,798 $ 10,504,767 N/A N/A
Capital Appreciation 57,377,850 78,000,070 N/A N/A
Small Company 2,436,291 2,852,875 N/A N/A
Special Equity 623,403,117 534,173,060 N/A N/A
International Equity 121,279,474 245,098,909 N/A N/A
Emerging Markets Equity 7,876,413 7,993,414 N/A N/A
Bond 24,390,987 14,836,358 $52,179,283 $30,668,207
Global Bond 21,809,365 20,683,355 10,297,007 9,103,268
Intermediate Bond N/A N/A 3,313,144 5,891,250
</Table>
(4) Portfolio Securities Loaned
===============================
The Funds may participate in a securities lending program providing
for the lending of equities, corporate bonds and government
securities to qualified brokers. Collateral on all securities
loaned are accepted in cash and/or government securities. Collateral
is maintained at a minimum level of 102% of the market value, plus
interest, if applicable, of investments on loan. Collateral received
in the form of cash is invested temporarily in institutional money
market funds or other short-term investments by the custodian.
Earnings of such temporary cash investments are divided between the
custodian, as a fee for its services under the program, and the Fund
loaning the security, according to agreed-upon rates.
(5) Risks Associated with Collateral Mortgage Obligations ("CMOs")
==================================================================
The net asset value of Funds may be sensitive to interest rate
fluctuations because the Funds may hold several instruments, including
CMOs and other derivatives, whose values can be significantly impacted
by interest rate movements. CMOs are obligations collateralized by a
portfolio of mortgages or mortgage-related securities. Payments of
principal and interest on the mortgage are passed through to the holder
of the CMOs on the same schedule as they are received, although certain
classes of CMOs have priority over others with respect to the receipt
of prepayments on the mortgages.
Therefore, the investment in CMOs may be subject to a greater or
lesser risk of prepayment than other types of mortgage-related
securities. CMOs may have a fixed or variable rate of interest.
(6) Forward Commitments
=======================
Certain transactions, such as futures and forward transactions, dollar
roll agreements, or purchases of when-issued or delayed delivery
securities may have a similar effect on a Fund's net asset value as
if the Fund had created a degree of leverage in its portfolio. However,
if a Fund enters into such a transaction, the Fund will establish a
segregated account with its custodian in which it will maintain cash,
U.S.government securities or other liquid securities equal in value to
its obligations in respect to such transaction. Securities and other
assets held in the segregated account may not be sold while the
transaction is outstanding, unless other suitable assets are
substituted.
(7) Forward Foreign Currency Contracts
======================================
During the six months ended June 30, 2003, International Equity and
Global Bond invested in forward foreign currency exchange contracts
to manage currency exposure. These investments may involve greater
market risk than the amounts disclosed in the Funds' financial
statements.
A forward foreign currency exchange contract is an agreement
between a Fund and another party to buy or sell a currency at a set
price at a future date. The market value of the contract will fluctuate
with changes in currency exchange rates. The contract is marked-to-
market daily, and the change in market value is recorded as an
unrealized
39
<Page>
Notes to Financial Statements (continued)
- -----------------------------------------------------------------
gain or loss. Gain or loss on the purchase or sale of contracts
having the same settlement date, amount and counter party is
realized on the date of offset, otherwise gain or loss is
realized on settlement date.
The Funds, except Value, Capital Appreciation, Small Company and
Special Equity may invest in non-U.S. dollar denominated
instruments subject to limitations, and enter into forward foreign
currency exchange contracts to facilitate transactions in foreign
securities and to protect against a possible loss resulting from
an adverse change in the relationship between the U.S. dollar and
such foreign currency. Risks may arise upon entering into these
contracts from the potential inability of counter parties to meet
the terms of their contracts and from unanticipated movements
in the value of a foreign currency relative to the U.S. dollar.
Open forward foreign currency exchange contracts at June 30, 2003,
were as follows:
<Table>
International Equity
--------------------
Foreign Currency Settlement Date Current Value Unrealized Gain/Loss
- ---------------------- --------------- --------------- --------------------
Buy Contracts
Australian Dollars 07/03/03 $ (497,693) $ 3,720
British Pounds 07/03/03 (142,559) (324)
Canadian Dollars 07/03/03 (257,594) (952)
euro 07/03/03 (356,524) 1,955
Japanese Yen 07/02/03 (462,691) (2,570)
Swedish Krona 07/02/03 (534,355) 743
------------ -----------
Total Buy Contracts
(Payable Amount $2,248,844) $(2,251,416) $ 2,572
============ ===========
Foreign Currency
- ----------------------
Sell Contracts
British Pounds 07/03/03 $ 1,284,374 $ 4,617
Hong Kong Dollars 07/03/03 5,213,223 (6,565)
euro 07/03/03 3,490,960 (17,713)
Japanese Yen 07/03/03 5,602,290 123,380
------------ ----------
Total Sell Contracts
(Receivable Amount $15,694,566) $ 15,590,847 $ 103,719
============ ==========
</Table>
<Table>
Global Bond
--------------------
Current Value Unrealized Gain/Loss
Foreign Currency Settlement Date (in U.S.Dollars) (in U.S.Dollars)
- ---------------------- --------------- --------------- --------------------
Buy Contract
Canadian Dollar
(Payable Amount $36,728) 07/02/03 $ (36,739) $ 12
========== ==========
Sell Contracts
British Pounds 07/01/03 28,318 $ 238
Canadian Dollars 07/07/03 81,978 421
Danish Krona 07/03/03 263,172 179
euro 07/02/03 148,270 (596)
New Zealand Dollars 07/03/03 92,805 (3)
---------- ----------
Total Sell Contracts
(Receivable Amount $614,781) $ 614,543 $ 238
========== ==========
</Table>
40
<Page>
Notes to Financial Statements (continued)
- --------------------------------------------------------------------
(8) Futures Contracts Held or Issued for Purposes other than Trading
====================================================================
International Equity uses interest-rate futures contracts
for risk management purposes in order to reduce fluctuations
in net asset value relative to the Fund's targeted option-
adjusted duration. On entering into a futures contract, either
cash or securities in an amount equal to a certain percentage of
the contract value (initial margin) must be deposited with the
futures broker. Subsequent payments (variation margin) are made or
received each day. The variation margin payments equal the daily
changes in the contract value and are recorded as unrealized gains
or losses. The Fund recognizes a realized gain or loss when the
contract is closed or expires equal to the difference between the
value of the contract at the time it was opened and the value at the
time it was closed. The Fund had no open futures contracts as of June
30, 2003.
(9) Transactions with Affiliated Companies
==========================================
An affiliated company is a company in which a fund has ownership of at
least 5% of the voting securities. Transactions during the year ended
June 30,2003, with companies which are or were affiliates are as follows:
Summary of Transactions with Affiliated Companies - Special Equity
<Table>
Purchase Sales Dividend Market
Affiliate Cost Cost Income Value
- ------------------- ------------ ------ ------------ -----------
Acres Gaming,Inc. $ 3,172,999 $ - $ - $ 5,541,046
Axsys Technologies,Inc. - - - 4,492,240
Duckwall-ALCO Stores,Inc. - - - 2,688,878
------------ ------ ------------ -----------
Totals $ 3,172,999 $ - $ - $12,722,164
============ ====== ============ ===========
</Table>
(10) Subsequent Event
=====================
At a meeting held on June 4, 2003, the Fund's Board of Trustees
approved a plan to liquidate Managers Intermediate Bond Fund and
terminate the Fund as of July 31,2003. It is expected that the
cash proceeds of the liquidation will be distributed to
shareholders on or before July 31,2003.
- -------------------------------------------------------------------
Supplemental Data
=================
Proxy Result Information (unaudited)
- ------------------------------------
At the Special Meeting of Shareholders of the Trust held on April
22, 2003, the following votes were recorded for Managers Value
Fund ("Value"), Managers Capital Appreciation Fund ("Capital
Appreciation"), Managers Small Company Fund ("Small Company"),
Managers Special Equity Fund ("Special Equity"), Managers
International Equity Fund ("International Equity"), Managers
Emerging Markets Equity Fund ("Emerging Markets"), Managers
Intermediate Bond Fund ("Intermediate"), Managers Bond Fund
("Bond")and Managers Global Bond Fund ("Global Bond"). The
proposals, which shareholders were asked to vote on, are explained
in further detail in the proxy statement dated March 10, 2003:
Proposal 1 - To amend the Declaration of Trust to permit the creation
of multiple classes of shares for any Fund
<Table>
Fund Shares For Shares Against Shares Abstained
- ----------------- -------------- --------------- -----------------
Value 1,533,644 122,999 98,795
Capital Appreciation 3,062,855 266,191 94,741
Small Company 1,544,793 141,690 79,686
Special Equity 21,527,942 1,062,869 505,229
International Equity 7,126,192 242,695 97,484
Emerging Markets 1,384,406 82,572 33,931
Intermediate 248,283 18,788 21,054
Bond 4,528,425 191,246 65,037
Global Bond 1,087,760 57,645 32,974
</Table>
41
<Page>
Notes to Financial Statements (continued)
- -----------------------------------------------------------------
Proposal 2 - To elect Peter M. Lebovitz as a Trustee of the Trust
<Table>
Fund Shares For Shares Against Shares Abstained
- ----------------- -------------- --------------- -----------------
Value 1,591,852 73,503 90,082
Capital Appreciation 3,178,799 90,735 254,252
Small Company 1,681,482 30,481 54,207
Special Equity 19,473,034 2,152,630 1,470,376
International Equity 6,897,963 462,385 106,023
Emerging Markets 1,434,106 45,189 21,614
Intermediate 278,150 4,720 5,255
Bond 4,650,000 62,083 72,624
Global Bond 1,134,618 8,499 35,262
</Table>
Pursuant to Article III, Section 1 of the By-Laws of the Trust and
the Securities Exchange Act of 1940, such total votes on each
proposal represented a quorum of the outstanding shares of the Funds.
42
<Page>
MANAGERS
- --------
Investment Manager
and Administrator
- ------------------
The Managers Funds LLC
40 Richards Avenue
Norwalk,Connecticut 06854-2325
(203)857-5321 or (800)835-3879
Distributor
- -----------
Managers Distributors, Inc.
40 Richards Avenue
Norwalk, Connecticut 06854-2325
(203)857-5321 or (800)835-3879
Custodian
- ---------
The Bank of New York
101 Barclay Street, 13th Floor
New York, New York 10286
Legal Counsel
- -------------
Goodwin Procter LLP
Exchange Place
Boston, Massachusetts 02109
Transfer Agent
- --------------
Boston Financial Data Services, Inc.
Attn: The Managers Funds
P.O. Box 8517
Boston, Massachusetts 02266-8517
(800)252-0682
For ManagersChoice Only
- -----------------------
PFPC Brokerage Services, Inc.
P.O. Box 61487
King of Prussia, Pennsylvania 19406-0897
(800)358-7668.
<Page>
Managers
- --------
The Managers Funds
==================
Equity Funds:
- -------------
VALUE FUND
Armstrong Shaw Associates Inc.
Osprey Partners Investment Management, LLC
CAPITAL APPRECIATION FUND
Essex Investment Management Co., LLC
Bramwell Capital Management, Inc.
SMALL COMPANY FUND
Kalmar Investment Advisers, Inc.
SPECIAL EQUITY FUND
Donald Smith & Co., Inc.
Pilgrim Baxter & Associates, Ltd.
Westport Asset Management, Inc.
Kern Capital Management LLC
Skyline Asset Management, L.P.
INTERNATIONAL EQUITY FUND
Deutsche Asset Management
Bernstein Investment Research and Management
Mastholm Asset Management, L.L.C.
EMERGING MARKETS EQUITY FUND
Rexiter Capital Management Limited
Income Funds:
- -------------
MONEY MARKET FUND
J.P.Morgan Fleming Asset Management (USA),Inc.
SHORT DURATION
GOVERNMENT FUND
Smith Breeden Associates, Inc.
TOTAL RETURN BOND FUND
Merganser Capital Management LP
INTERMEDIATE DURATION
GOVERNMENT FUND
Smith Breeden Associates, Inc.
BOND FUND
Loomis, Sayles & Co., L.P.
GLOBAL BOND FUND
Loomis,Sayles & Co., L.P.
Managers AMG Funds
==================
Equity Funds:
- -------------
ESSEX AGGRESSIVE GROWTH FUND
ESSEX LARGE CAP GROWTH FUND
Essex Investment Management Company, LLC
FRONTIER GROWTH FUND
FRONTIER SMALL COMPANY VALUE FUND
Frontier Capital Management Co., LLC
FIRST QUADRANT TAX-MANAGED EQUITY FUND
First Quadrant, L.P.
RORER LARGE-CAP FUND
RORER MID-CAP FUND
Rorer Asset Management, LLC
SYSTEMATIC VALUE FUND
Systematic Financial Management, LLP
BURRIDGE SMALL CAP GROWTH FUND
The Burridge Group LLC
This report is prepared for the information of shareholders. It is
authorized for distribution to prospective investors only when
preceded or accompanied by an effective prospectus, which is
available by calling 1-800-835-3879. Distributed by Managers
Distributors, Inc., member NASD.
www.managersfunds.com
www.managersamg.com
www.managerschoice.com
<Page>
Item 2. CODE OF ETHICS
=======================
Not applicable.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT
=========================================
Not applicable.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
==============================================
Not applicable.
Item 5. [RESERVED]
==================
Item 6. [RESERVED]
==================
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-
END MANAGEMENT INVESTMENT COMPANIES
======================================================================
Not applicable.
Item 8. [RESERVED]
==================
Item 9. CONTROLS AND PROCEDURES
================================
(a) Disclosure Controls and Procedures. The Principal Executive
and Financial Officers concluded that the Registrant's
Disclosure Controls and Procedures are effective based on
their evaluation of the Disclosure Controls and Procedures as
of a date within 90 days of the filing of this report.
(b) Internal Controls. There were no significant changes in the
Registrant's internal controls or in other factors that could
significantly affect these controls subsequent to the date of
our evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
Item 10. EXHIBITS
==================
(a) Not applicable.
(b) Certifications of principal executive officer and principal
financial officer as required by Rule 30a-2 under the
Investment Company Act of 1940.
<Page>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
THE MANAGERS FUNDS
By: /s/ Peter M. Lebovitz
----------------------------
Peter M. Lebovitz, President
Date: August 26, 2003
---------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below
by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.
By: /s/ Peter M. Lebovitz
----------------------------
Peter M. Lebovitz, President
Date: August 26, 2003
---------------
By: /s/ Galan G. Daukas
----------------------------------------
Galan G. Daukas, Chief Financial Officer
Date: August 26, 2003
---------------
<Page>