As filed with the Securities and Exchange Commission on February 25, 2005
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file Number: 811-4255
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
------------------------------------------------------
(Exact Name of the Registrant as Specified in Charter)
605 Third Avenue, 2nd Floor
New York, New York 10158-0180
---------------------------------------------------
(Address of Principal Executive Offices - Zip Code)
Registrant's Telephone Number, including area code: (212) 476-8800
Peter E. Sundman, Chief Executive Officer
Neuberger Berman Advisers Management Trust
605 Third Avenue, 2nd Floor
New York, New York 10158-0180
Jeffrey S. Puretz, Esq.
Dechert LLP
1775 I Street, N.W.
Washington, D.C. 20006
-------------------------------------------
(Names and Addresses of agents for service)
Date of fiscal year end: December 31, 2004
Date of reporting period: December 31, 2004
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO SHAREHOLDERS
Annual Report [LOGO]
December 31, 2004 NEUBERGER BERMAN
A Lehman Company
Neuberger Berman
Advisers
Management
Trust
- --------------------------------------------------------------------------------
Balanced
Portfolio (R)
B1014 02/05
1
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Balanced Portfolio Managers' Commentary
- ---------------------------------------
U.S. stocks advanced in 2004, helping the AMT Balanced Portfolio's equity
investments to generate strong gains, while a mixed environment for bonds
limited the portfolio's fixed income investments to a modestly positive return.
For much of 2004, mixed economic signals, record high energy prices, and
uncertainty caused by a close Presidential election restrained stocks. Then,
the clouds over the market began to disperse. Favorable economic data indicated
that the economy had emerged from its summer doldrums, oil prices declined, and
a Republican election victory signaled an extension of current fiscal policies.
Stocks took off and closed 2004 with respectable gains, particularly in the
small- and mid-cap segments of the market.
For bond investors, conflicting economic signals made 2004 an unsteady year.
Doubts about the durability of the recovery kept prices stable early on, but
strong jobs reports in March and April precipitated a fixed income decline.
Later, however, rapidly rising oil prices helped keep the economy in check and,
even with a new monetary tightening campaign by the Federal Reserve, rates
stabilized before rising again during the fourth quarter.
In the equity portion of the Portfolio, our security selection within the
Information Technology (IT), Consumer Discretionary and Industrial sectors
provided the largest contributions to total returns for the year. In Consumer
Discretionary, our emphasis on casinos and gaming was particularly helpful,
while our focus on the services area of Financials also aided results, as did
our Energy holdings. Although, in aggregate, our sector allocation detracted
from the year's results, our overweight in the strong Telecom sector was
additive. On the downside, our stock selection within Health Care was a
negative, as generic pharmaceutical producers suffered from a lack of pricing
power, while our stock selection within Materials also hurt results.
For much of 2004, the fixed income portion of the Portfolio was defensively
postured, reflecting our recognition that low bond yields provided little
cushion for potential price declines should the economy accelerate. Our
relatively low duration helped shield investor capital as bonds retreated in
April and May, and generally enhanced returns for the full year. In the fourth
quarter, we enhanced portfolio yield by reducing our allocation to Treasuries
and increased our exposure to high-credit-quality alternatives including
asset-backed, corporate, and government agency securities. As the spread
between lower and higher rated securities narrowed, we upgraded the credit
quality of our corporate portfolio. We virtually eliminated our holdings in
mortgage-backed securities, since this group tends to underperform amidst
interest rate volatility.
Looking ahead, we believe that 2005 will be favorable for equity investors.
Although economic growth should slow from 2004's 4% pace, it is likely to
remain healthy, aided by ongoing corporate spending. After the strong results
of late 2004, we expect a short-term pullback, followed by further stock market
advances. As a result, we plan to position our equity portfolio more
aggressively than the indices and our competition, in stocks we believe have
more potential upside in a rising market. However, if stocks advance in early
2005, we currently anticipate rotating into more defensive areas, such as
Consumer Staples and Health Care. Currently, we are neutrally weighted in
Materials and Industrials, and underweight in Consumer Staples and Utilities.
Although Information Technology and Energy are both neutrally weighted, we
expect to be sellers of technology and buyers of energy over the longer term.
On the bond side, we believe that the Fed will continue to raise rates at a
"measured pace," with the Fed Funds rate probably reaching 3.5% by year-end
2005 (up from 2.25% in December and 1% in June). In addition, we are closely
watching factors that could influence inflation, including the
1
Balanced Portfolio Managers' Commentary cont'd
- ----------------------------------------------
value of the dollar and the federal budget and current account deficits.
Overall, a healthy economy may continue to pressure bond prices, so we plan to
be cautious and maintain the Portfolio's duration at relatively low levels. And
we are likely to continue attempting to enhance portfolio yield by diversifying
away from Treasuries to other high quality, higher yielding sectors.
Sincerely,
\s\Jon Giuliano \s\John Dugenske
\s\Jon D. Brorson \s\Kenneth J. Turek
TED GIULIANO, JOHN DUGENSKE,
JON D. BRORSON, KENNETH J. TUREK
PORTFOLIO CO-MANAGERS
- --------------------------------------------------------------------------------
Average Annual Total Return(1)
Balanced Merrill Lynch
Portfolio 1-3 Year Russell Midcap(R)
Treasury index(2) Growth(2) S&P 500(2)
1 Year 9.31% 0.91% 15.48% 10.87%
5 Year (2.73%) 4.93% (3.36%) (2.30%)
10 Year 7.50% 5.71% 11.23% 12.07%
Life of Fund 7.90% 6.34% 11.95% 11.97%
- -------------------------------------------------------------------------------
Inception Date 02/28/1989
Performance data quoted represent past performance, which is no quarantee of
future results. The investment return and principal value of an investment will
flucuate so that an investor's shars, when redeemed may be worth more or less
than their original cost. Results are shown on a "total return" basis and
include reinvestment of all dividends and capital gain distributions.
Current performance may be lower or higher then the performance data quoted. For
performace data current to the most recent month end, please visit www.nb.com/
performance.
Comparison of a $10,000 Investment
Merrill Lynch
Balanced 1-3 Year Russell Midcap (R)
Portfolio Treasury Index Growth S&P 500
- --------------------------------------------------------------------------------------------------------
12/31/1994 $ 10,000 $ 10,000 $ 10,000 $ 10,000
- --------------------------------------------------------------------------------------------------------
12/31/1995 $ 12,376 $ 11,100 $ 13,398 $ 13,753
- --------------------------------------------------------------------------------------------------------
12/31/1996 $ 13,228 $ 11,653 $ 15,739 $ 16,909
- --------------------------------------------------------------------------------------------------------
12/31/1997 $ 15,801 $ 12,428 $ 19,287 $ 22,548
- --------------------------------------------------------------------------------------------------------
12/31/1998 $ 17,725 $ 13,298 $ 22,733 $ 28,992
- --------------------------------------------------------------------------------------------------------
12/31/1999 $ 23,675 $ 13,705 $ 34,393 $ 35,091
- --------------------------------------------------------------------------------------------------------
12/31/2000 $ 22,598 $ 14,801 $ 30,352 $ 31,897
- --------------------------------------------------------------------------------------------------------
12/31/2001 $ 19,579 $ 16,029 $ 24,236 $ 28,109
- --------------------------------------------------------------------------------------------------------
12/31/2002 $ 16,221 $ 16,952 $ 17,594 $ 21,899
- --------------------------------------------------------------------------------------------------------
12/31/2003 $ 18,862 $ 17,273 $ 25,109 $ 28,177
- --------------------------------------------------------------------------------------------------------
12/31/2004 $ 20,618 $ 17,430 $ 28,995 $ 31,241
- --------------------------------------------------------------------------------------------------------
The chart shows the value of a hypothetical $10,000 in the Fund over the past 10
fiscal years, or since the Fund's inception, if it has not operated for 10
years. The result is compared with benchmarks, which may include a broad-based
market index and/or a narrower index.please note that market indexes do not
include expenses. All resuslts include the reinvestment of dividends and capital
gain distributions. Results represent past performance and do not indicate
future results. The chart and table do not reflect the deduction of taxes that a
shareholder would pay on Fund distrabution or the redemption of Fund Shares.
Please see Endnotes for additional information
Asset Diversification
(% by Asset Class)
Asset Backed .............................. 5.6%
Corporate Debt ............................ 21.6
Convertible Debt .......................... 0.0
Foreign Government Securities ............. 1.6
U.S. Government Agency Securities ......... 4.2
Mortgage-Backed Securities ................ 0.8
U.S. Treasury Securities .................. 7.9
Preferred Stock ........................... 0.0
Common Stock .............................. 58.5
Other ..................................... 0.0
Liabilities, less cash, receivables and
other assets .......................... (0.2)
2
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Endnotes
- --------
1. 9.31%, (2.73%), and 7.50% were the average annual total
returns for the 1-, 5- and 10-year periods ended December 31,
2004. Neuberger Berman Management Inc. ("NBMI") has agreed to
absorb certain expenses of the AMT Portfolios. Without this
arrangement, which is subject to change, the total returns of
the Portfolios would be less. Total return includes
reinvestment of dividends and capital gain distributions.
Performance data quoted represent past performance and the
investment return and principal value of an investment will
fluctuate so that the shares, when redeemed, may be worth more
or less than original cost. The performance information does
not reflect fees and expenses of the insurance companies.
2. The Russell Midcap[RegTM] Growth Index measures the
performance of those Russell Midcap[RegTM] Index companies with
higher price-to-book ratios and higher forecasted growth
values. The Russell Midcap Index measures the performance of
the 800 smallest companies in the Russell 1000[RegTM] Index,
which represents approximately 26% of the total market
capitalization of the Russell 1000 Index (which, in turn,
consists of the 1,000 largest U.S. companies, based on the
market capitalization). The S&P 500 Index is widely regarded as
the standard for measuring large-cap U.S. stock market
performance and includes a representative sample of leading
companies in leading industries. The Merrill Lynch 1-3 Year
Treasury Index is an unmanaged total return market value index
consisting of all coupon-bearing U.S. Treasury publicly placed
debt securities with maturities between 1 to 3 years. Please
note that indices do not take into account any fees and
expenses of investing in the individual securities that they
track, and that individuals cannot invest directly in any
index. Data about the performance of these indices are prepared
or obtained by NBMI and include reinvestment of all dividends
and capital gain distributions. The Portfolio may invest in
many securities not included in the above-described indices.
The investments for the Portfolio are managed by the same
portfolio manager(s) who manage one or more other mutual funds
that have similar names, investment objectives and investment
styles as the Portfolio. You should be aware that the Portfolio
is likely to differ from the other mutual funds in size, cash
flow pattern and tax matters. Accordingly, the holdings and
performance of the Portfolio can be expected to vary from those
of the other mutual funds.
The composition, industries and holdings of the Portfolio are
subject to change.
Shares of the separate Portfolios of Neuberger Berman Advisers
Management Trust are sold only through the currently effective
prospectus and are not available to the general public. Shares
of this Portfolio may be purchased only by life insurance
companies to be used with their separate accounts that fund
variable annuity and variable life insurance policies and by
certain qualified pension and retirement plans.
(C) 2005 Neuberger Berman Management Inc., distributor. All
rights reserved.
3
Information About Your Fund's Expenses
- --------------------------------------
This table is designed to provide information regarding costs related to your
investments. All mutual funds incur operating expenses, which include
management fees, administrative services and shareholder reports among others.
The following example is based on an investment of $1,000 made at the beginning
of the period shown and held for the entire period. The table illustrates the
fund's costs in two ways:
Actual Expenses: The first section
of the table provides
information about actual
account values and actual
expenses in dollars. You may
use the information in this
line, together with the
amount you invested, to
estimate the expenses you
paid over the period.
Hypothetical Example for Comparison Purposes: The second section of the
table provides information
about hypothetical account
values and hypothetical
expenses based on the Fund's
actual expense ratio and an
assumed rate of return at 5%
per year before expenses.
This return is not the
Fund's actual return. The
hypothetical account values
and expenses may not be used
to estimate the actual
ending account balance or
expenses you paid for the
period. You may use this
information to compare the
ongoing costs of investing
in this Fund versus other
funds. To do so, compare
this 5% hypothetical example
with the 5% hypothetical
examples that appear in the
shareholder reports of other
funds.
Expense Information As of 12/31/04 (Unaudited)
- ----------------------------------------------
Neuberger Berman Advisers Management Trust Balanced Portfolio
- -------------------------------------------------------------
Beginning Ending Expenses Paid
Actual Account Value Account Value During the Period*
Class I $1,000 $ 1,051.90 $ 5.47
Hypothetical (5% annual return before expenses)**
Class I $1,000 $ 1,019.81 $ 5.38
* Expenses are equal to the expense ratio for the class,
multiplied by the average account value over the period,
multiplied by 184/366 (to reflect the one-half year period
shown).
** Hypothetical 5% annual return before expenses is calculated by
multiplying the number of days in the most recent half year
divided by 366.
4
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Balanced Portfolio
- ------------------------------------------
Number of Shares
Market Value+
Common Stocks (58.5%)
Aerospace (0.4%)
7,500 Rockwell Collins $ 295,800
Agriculture (0.3%)
12,500 Archer-Daniels-Midland 278,875
Basic Materials (0.7%)
5,000 Nucor Corp. 261,700
4,000 Peabody Energy 323,640
----------------
585,340
Biotechnology (3.1%)
17,000 Celgene Corp. 451,010*
8,500 Genzyme Corp. 493,595*
20,000 Gilead Sciences 699,800*
8,150 Martek Biosciences 417,280*
21,000 Protein Design Labs 433,860*
----------------
2,495,545
Business Services (5.3%)
25,500 Alliance Data Systems 1,210,740*
14,050 Corporate Executive Board 940,507
9,050 Getty Images 623,093*
13,000 Hewitt Associates 416,130*
5,500 NAVTEQ 254,980*
8,500 Robert Half International 250,155
13,000 Stericycle, Inc. 597,350*
----------------
4,292,955
Communications Equipment (1.2%)
9,000 F5 Networks 438,480*
19,000 Juniper Networks 516,610*
----------------
955,090
Computer Related (0.7%)
9,000 Apple Computer 579,600*
Consumer Cyclicals (0.6%)
14,000 Williams-Sonoma 490,560*
Consumer Discretionary (0.8%)
4,000 Fortune Brands 308,720
9,000 XM Satellite Radio
Holdings 338,580*
----------------
647,300
Defense (0.3%)
4,000 CACI International 272,520*
Diagnostic Equipment (0.6%)
19,000 Cytyc Corp. 523,830*
Distributor (0.5%)
6,000 W.W. Grainger 399,720
Electrical & Electronics (0.3%)
10,500 Jabil Circuit 268,590*
Number of Shares
Market Value+
Energy (2.3%)
8,500 Canadian Natural
Resources $ 363,545
6,500 National-Oilwell 229,385*
9,000 Smith International 489,690*
22,361 XTO Energy 791,132
----------------
1,873,752
Entertainment (1.0%)
14,500 Station Casinos 792,860
Financial Services (5.7%)
2,100 Advance America Cash
Advance Centers 48,090*
27,000 Ameritrade Holding 383,940*
22,000 CapitalSource Inc. 564,740*\P
2,000 Chicago Mercantile
Exchange 457,400
11,500 First Marblehead 646,875*
15,000 Investors Financial
Services 749,700
5,500 Jackson Hewitt Tax Service 138,875
9,000 Legg Mason 659,340\P
8,200 Moody's Corp. 712,170
14,500 Providian Financial 238,815*
----------------
4,599,945
Food & Beverage (1.1%)
4,250 Hershey Foods 236,045
6,500 Whole Foods Market 619,775
----------------
855,820
Health Care (2.6%)
12,000 C. R. Bard 767,760
4,500 Cerner Corp. 239,265*
7,500 Invitrogen Corp. 503,475*
4,500 PacifiCare Health Systems 254,340*
15,400 VCA Antech 301,840*
----------------
2,066,680
Industrial (4.4%)
14,500 Danaher Corp. 832,445\P
15,000 Donaldson Co. 488,700
6,500 Eaton Corp. 470,340
12,500 Fastenal Co. 769,500
5,000 Harman International
Industries 635,000
7,500 Terex Corp. 357,375*
----------------
3,553,360
Instruments (0.7%)
18,000 Thermo Electron 543,420*
Internet (0.4%)
12,500 McAfee Inc. 361,625*
Leisure (2.3%)
9,000 Marriott International 566,820
6,500 MGM Mirage 472,810*
15,500 Royal Caribbean Cruises 843,820\P
----------------
1,883,450
5
See Notes to Schedule of Investments
Schedule of Investments Balanced Portfolio cont'd
- -------------------------------------------------
Number of Shares Market Value+
Media (0.3%)
7,825 Univision Communications $ 229,038*
Medical Equipment (3.4%)
12,000 Kinetic Concepts 915,600*
13,500 Kyphon Inc. 347,760*
9,000 ResMed Inc. 459,900*
13,100 Varian Medical Systems 566,444*
5,500 Zimmer Holdings 440,660*
----------
2,730,364
Oil & Gas (0.2%)
4,500 Quicksilver Resources 165,510*
Packing & Containers (0.7%)
22,600 Pactiv Corp. 571,554*
Retail (4.4%)
2,500 Abercrombie & Fitch 117,375
5,700 Bed Bath & Beyond 227,031*
16,800 Coach, Inc. 947,520*
3,500 Dick's Sporting Goods 123,025*
5,000 Nordstrom, Inc. 233,650
24,000 PETsMART, Inc. 852,720
15,500 Staples, Inc. 522,505
8,500 Starbucks Corp. 530,060*
----------
3,553,886
Semiconductors (2.2%)
7,500 KLA-Tencor 349,350*
10,000 Marvell Technology Group 354,700*
16,500 Microchip Technology 439,890
27,100 Microsemi Corp. 470,456*
3,500 Varian Semiconductor
Equipment 128,975*
----------
1,743,371
Software (2.5%)
4,500 Adobe Systems 282,330
9,500 Cognos, Inc. 418,570*
16,000 Mercury Interactive 728,800*
46,500 TIBCO Software 620,310*
----------
2,050,010
Technology (5.5%)
10,500 Altera Corp. 217,350*
18,000 ATI Technologies 349,020*
9,000 Autodesk, Inc. 341,550
19,000 Check Point Software
Technologies 467,970*
21,000 Cognizant Technology
Solutions 888,930*
2,500 Garmin Ltd. 152,100
8,300 Macromedia, Inc. 258,296*
4,500 NCR Corp. 311,535*
3,500 VeriSign, Inc. 117,320*
24,500 Zebra Technologies 1,378,860*
----------
4,482,931
Number of Shares Market Value+
Telecommunications (2.5%)
15,000 American Tower $ 276,000*
17,000 Avaya Inc. 292,400*
51,000 Nextel Partners 996,540*
17,000 Western Wireless 498,100*
----------
2,063,040
Transportation (1.5%)
8,500 C.H. Robinson Worldwide 471,920
17,400 J. B. Hunt Transport
Services 780,390
----------
1,252,310
----------
Total Common Stocks
(Cost $33,615,371)
47,458,651
6
See Notes to Schedule of Investments
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Balanced Portfolio cont'd
- -------------------------------------------------
Principal Amount Rating[sec] Market Value+
Moody's S&P
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government (7.9%)
$ 70,000 U.S. Treasury Notes, 1.88%, due 11/30/05 TSY TSY $ 69,453
750,000 U.S. Treasury Notes, 1.88%, due 12/31/05 TSY TSY 743,496
3,900,000 U.S. Treasury Notes, 1.88%, due 1/31/06 TSY TSY 3,862,525
575,000 U.S. Treasury Notes, 1.63%, due 2/28/06 TSY TSY 567,206
500,000 U.S. Treasury Notes, 2.50%, due 10/31/06 TSY TSY 495,332
715,000 U.S. Treasury Notes, 3.00%, due 2/15/08 TSY TSY 709,163
----------
Total U.S. Treasury Securities-Backed by the Full Faith
and Credit of the U.S. Government (Cost $6,506,818) 6,447,175
----------
U.S. Government Agency Securities (4.2%)
1,625,000 Federal Home Loan Bank, Bonds, 2.88%, due 8/15/06 AGY AGY 1,617,504
1,750,000 Freddie Mac, Notes, 5.50%, due 7/15/06 AGY AGY 1,810,998
----------
Total U.S. Government Agency Securities
(Cost $3,437,173) 3,428,502
----------
Mortgage-Backed Securities (0.8%)
Fannie Mae
115,197 Collateralized Mortgage Obligations, Planned Amortization
Certificates, Ser. 2003-16, Class PA, 4.50%,
due 11/25/09 AGY AGY 115,682
Freddie Mac
34,625 Collateralized Mortgage Obligations, Planned Amortization
Certificates, Ser. 2592, Class PA, 4.50%,
due 12/15/07 AGY AGY 34,603
79,453 Pass-Through Certificates, 5.00%, due 2/1/07 AGY AGY 81,165
104,437 Pass-Through Certificates, 5.50%, due 2/1/07 AGY AGY 107,033
Government National Mortgage Association
25,234 Pass-Through Certificates, 4.50%, due 8/15/33 AGY AGY 24,647
256,492 Pass-Through Certificates, 6.00%, due 1/15/33 AGY AGY 266,001
----------
Total Mortgage-Backed Securities (Cost $627,202) 629,131
----------
Corporate Debt Securities (21.6%)
400,000 Allstate Corp., Senior Notes, 7.88%, due 5/1/05 A1 A+ 406,392
375,000 American Express Co., Notes, 5.50%, due 9/12/06 A1 A+ 388,404
200,000 AT&T Wireless Services, Inc., Senior Notes, 7.35%,
due 3/1/06 Baa2 A 209,228
200,000 Bank of America Corp., Senior Notes, 3.88%,
due 1/15/08 Aa2 A+ 201,560
335,000 Bank of New York Co., Inc., Senior Notes, 5.20%,
due 7/1/07 Aa3 A+ 348,285
550,000 Bank One Corp., Notes, 6.50%, due 2/1/06 Aa3 A+ 569,344
250,000 BankBoston N.A., Subordinated Notes, 6.50%,
due 12/19/07 Aa2 A+ 269,692
410,000 Bear Stearns Co., Inc., Notes, 6.50%, due 5/1/06 A1 A 426,816
400,000 Berkshire Hathaway Finance, Notes, 3.40%, due 7/2/07 Aaa AAA 399,054**
200,000 Boeing Capital Corp., Senior Notes, 5.65%, due 5/15/06 A3 A 206,232
325,000 British Telecom PLC, Notes, 7.88%, due 12/15/05 Baa1 A- 338,971
190,000 Capital One Bank, Senior Notes, 8.25%, due 6/15/05 Baa2 BBB 194,220
375,000 Caterpillar Financial Services Corp., Medium-Term Notes,
2.59%, due 7/15/06 A2 A 371,450
145,000 Chase Manhattan Corp., Subordinated Notes, 7.25%,
due 6/1/07 A1 A 156,985
400,000 CIT Group, Inc., Senior Notes, 4.13%, due 2/21/06 A2 A 404,065
400,000 Citigroup Global Markets, Notes, 5.88%, due 3/15/06 Aa1 AA- 412,437
7
See Notes to Schedule of Investments
Schedule of Investments Balanced Portfolio cont'd
- -------------------------------------------------
Principal Amount Rating[sec] Market Value+
Moody's S&P
$ 375,000 Coca-Cola Enterprises, Notes, 5.38%, due 8/15/06 A2 A $ 386,876
200,000 Comcast Cable Communications, Senior Notes, 6.38%,
due 1/30/06 Baa3 BBB 206,588
325,000 Credit Suisse First Boston USA, Inc., Notes, 5.88%,
due 8/1/06 Aa3 A+ 337,776
210,000 Daimler Chrysler N.A. Holdings Corp., Guaranteed Notes,
6.40%, due 5/15/06 A3 BBB 218,462
200,000 Deutsche Telekom International Finance, Guaranteed
Notes, 8.25%, due 6/15/05 Baa1 BBB+ 204,661
365,000 Diageo Finance BV, Guaranteed Notes, 3.00%,
due 12/15/06 A2 A 361,906
135,000 Enterprise Products Operating, Senior Notes, 4.00%,
due 10/15/07 Baa3 BB+ 134,670**
170,000 EOP Operating Limited Partnership, Notes, 6.63%,
due 2/15/05 Baa2 BBB+ 170,765
200,000 Everest Reinsurance Holdings, Inc., Senior Notes, 8.50%,
due 3/15/05 A3 A- 201,877
675,000 General Electric Capital Corp., Notes, 3.50%, due 5/1/08 Aaa AAA 669,970
175,000 General Motors Acceptance Corp., Notes, 6.13%,
due 9/15/06 Baa1 BBB- 179,407
450,000 Goldman Sachs Group, Inc., Notes, 4.13%, due 1/15/08 Aa3 A+ 455,656
470,000 Gulf Canada Resources, Senior Notes, 8.38%,
due 11/15/05 A3 488,894
200,000 Hertz Corp., Senior Notes, 8.25%, due 6/1/05 Baa2 203,466
375,000 Hewlett-Packard Co., Notes, 5.50%, due 7/1/07 A3 A- 391,076
360,000 HSBC Finance Corp., Notes, 5.75%, due 1/30/07 A1 A 375,789
200,000 International Lease Finance Corp., Floating Rate Notes,
3.30%, due 1/13/05 A1 AA- 200,034
300,000 John Deere Capital Corp., Notes, 5.13%, due 10/19/06 A3 A- 308,944
110,000 Jones Intercable, Inc., Senior Notes, 7.63%, due 4/15/08 Baa3 BBB 121,709
250,000 Kraft Foods, Inc., Notes, 4.63%, due 11/1/06 A3 BBB+ 255,154
200,000 Lear Corp., Guaranteed Senior Notes, Ser. B, 7.96%,
due 5/15/05 Baa3 BBB- 203,194
190,000 Mallinckrodt Group, Inc., Notes, 6.50%, due 11/15/07 Baa3 BBB 202,990
460,000 Merrill Lynch & Co., Notes, 6.13%, due 5/16/06 Aa3 A+ 477,997
425,000 Morgan Stanley, Bonds, 5.80%, due 4/1/07 Aa3 A+ 445,559
350,000 National Rural Utilities Cooperative Finance Corp.,
Collateral Trust, 6.00%, due 5/15/06 A1 A+ 362,536
61,000 Raytheon Co., Notes, 6.50%, due 7/15/05 Baa3 BBB- 62,090
200,000 Reliant Energy Resources Corp., Notes, Ser. B, 8.13%,
due 7/15/05 Ba1 BBB 205,268
370,000 Sara Lee Corp., Medium-Term Notes, Ser. B, 6.40%,
due 6/9/05 A3 A+ 374,893
420,000 SBC Communications, Inc., Notes, 5.75%, due 5/2/06 A2 A 433,466
200,000 Sprint Capital Corp., Guaranteed Notes, 6.00%,
due 1/15/07 Baa3 BBB- 209,319
375,000 Target Corp., Notes, 3.38%, due 3/1/08 A2 A+ 371,766
350,000 Time Warner, Inc., Notes, 5.63%, due 5/1/05 Baa1 BBB+ 353,223
360,000 U.S. Bank NA, Notes, 2.85%, due 11/15/06 Aa2 AA- 356,969
250,000 Union Bank of Switzerland-NY, Subordinated Notes,
7.25%, due 7/15/06 Aa3 AA 264,476
175,000 Univision Communications, Inc., Guaranteed Notes,
3.50%, due 10/15/07 Baa2 BBB- 172,935
450,000 Verizon Wireless Capital, Notes, 5.38%, due 12/15/06 A3 A+ 466,112
450,000 Wachovia Corporation, Notes, 4.95%, due 11/1/06 Aa3 A 462,530
200,000 Walt Disney Co., Notes, 7.30%, due 2/8/05 Baa1 BBB+ 200,854
8
See Notes to Schedule of Investments
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Balanced Portfolio cont'd
- -------------------------------------------------
Principal Amount Rating[sec] Market Value+
Moody's S&P
$ 400,000 Washington Mutual, Inc., Senior Notes, 5.63%,
due 1/15/07 A3 A- $ 416,563
90,000 Weyerhaeuser Co., Notes, 5.50%, due 3/15/05 Baa2 BBB 90,415
200,000 Weyerhaeuser Co., Notes, 6.00%, due 8/1/06 Baa2 BBB 207,835
----------
Total Corporate Debt Securities
(Cost $17,522,023) 17,517,805
----------
Foreign Government Securities^ (1.6%)
EUR 600,000 Bundesobligation, 3.50%, due 10/10/08 Aaa AAA 830,386
EUR 330,000 Bundesobligation, 3.25%, due 4/17/09 Aaa AAA 452,029
----------
Total Foreign Government Securities
(Cost $1,170,966) 1,282,415
----------
Asset-Backed Securities (5.6%)
550,000 Capital Auto Receivables Asset Trust, Ser. 2004-2,
Class A3, 3.58%, due 1/15/09 Aaa AAA 549,742
350,000 Capital One Prime Auto Receivables Trust, Ser. 2004-3,
Class A3, 3.39%, due 1/15/09 Aaa AAA 349,672
750,000 Chase Manhattan Auto Owner Trust, Ser. 2003-A,
Class A4, 2.06%, due 12/15/09 Aaa AAA 731,202
700,000 Citibank Credit Card Issuance Trust, Ser. 2004-A1,
Class A1, 2.55%, due 1/20/09 Aaa AAA 688,088
750,000 Daimler Chrysler Auto Trust, Ser. 2003-B,
Class A4, 2.86%, due 3/9/09 Aaa AAA 741,729
775,000 Honda Auto Receivables Owner Trust, Ser. 2004-3,
Class A4, 3.28%, due 2/18/10 Aaa AAA 764,774
700,000 MBNA Credit Card Master Note Trust, Ser. 2002-A1,
Class A1, 4.95%, due 6/15/09 Aaa AAA 722,758
----------
Total Asset-Backed Securities
(Cost $4,575,059) 4,547,965
----------
Repurchase Agreements (0.2%)
135,000 State Street Bank and Trust Co. Repurchase Agreement,
1.50%, due 1/3/05, dated 12/31/04, Maturity Value
$135,017, Collateralized by $95,000 U.S. Treasury
Bonds, 8.88%, due 2/15/19
(Collateral Value $139,561)
(Cost $135,000) 135,000#
----------
Short-Term Investments (4.1%)
2,965,200 N&B Securities Lending Quality Fund, LLC 2,965,200++
368,172 Neuberger Berman Prime Money Fund Trust Class 368,172@
----------
Total Short-Term Investments
(Cost $3,333,372) 3,333,372#
----------
Total Investments (104.5%)
(Cost $70,922,984) 84,780,016##
Liabilities, less cash, receivables and other assets [(4.5%)] (3,661,793)
----------
Total Net Assets (100.0%) $ 81,118,223
----------
9
See Notes to Schedule of Investments
Notes to Schedule of Investments Balanced Portfolio
- ---------------------------------------------------
+ Investments in equity securities by Neuberger Berman Advisers
Management Trust Balanced Portfolio (the "Fund") are valued at the
latest sale price where that price is readily available; equity
securities for which no sales were reported, unless otherwise noted,
are valued at the mean between the closing bid and asked prices.
Securities traded primarily on the NASDAQ Stock Market are normally
valued by the Fund at the NASDAQ Official Closing Price ("NOCP")
provided by NASDAQ each business day. The NOCP is the most recently
reported price as of 4:00:02 p.m., Eastern time, unless that price is
outside the range of the "inside" bid and asked prices (i.e., the bid
and asked prices that dealers quote to each other when trading for
their own accounts); in that case, NASDAQ will adjust the price to
equal the inside bid or asked price, whichever is closer. Because of
delays in reporting trades, the NOCP may not be based on the price of
the last trade to occur before the market closes. Investments in debt
securities by the Fund are valued daily by obtaining bid price
quotations from independent pricing services on all securities
available in each service's data base. For all other securities
requiring daily quotations, bid prices are obtained from principal
market makers in those securities. The Fund values all other
securities by a method the Board of Trustees of Neuberger Berman
Advisers Management Trust (the "Board") believes accurately reflects
fair value. Numerous factors may be considered when determining the
fair value of a security, including available analyst, media or other
reports, trading in futures or ADRs and whether the issuer of the
security being fair valued has other securities outstanding. Foreign
security prices are furnished by independent quotation services and
expressed in local currency values. Foreign security prices are
translated from the local currency into U.S. dollars using the
exchange rate as of 12:00 noon, Eastern time. The Board has approved
the use of FT Interactive Data Corporation ("FT Interactive") to
assist in determining the fair value of the Fund's foreign equity
securities in the wake of certain significant events. When changes in
the value of a certain index suggest that the closing prices on the
foreign exchanges may no longer represent the amount that the Fund
could expect to receive for those securities, FT Interactive will
provide adjusted prices for certain foreign equity securities based on
an analysis showing historical correlations between the prices of
those securities and changes in the index. In the absence of precise
information about the market values of these foreign securities as of
the close of the New York Stock Exchange, the Board has determined on
the basis of available data that prices adjusted in this way are
likely to be closer to the prices the Fund could realize on a current
sale than are the prices of those securities established at the close
of the foreign markets in which the securities primarily trade.
However, fair value prices are necessarily estimates, and there is no
assurance that such a price will be at or close to the price at which
the security next trades. Short-term debt securities with less than 60
days until maturity may be valued at cost which, when combined with
interest earned, approximates market value.
# At cost, which approximates market value.
## At December 31, 2004, the cost of investments for U.S. Federal income
tax purposes was $71,298,971. Gross unrealized appreciation of
investments was $14,170,855 and gross unrealized depreciation of
investments was $689,810, resulting in net unrealized appreciation of
$13,481,045, based on cost for U.S. Federal income tax purposes.
* Non-income producing security.
** Security exempt from registration under the Securities Act of 1933.
These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers under Rule
144A and are deemed liquid. At December 31, 2004, these securities
amounted to $533,724 or 0.7% of net assets.
\Pound All or a portion of this security is on loan (see Note A of Notes to
Financial Statements).
@ Neuberger Berman Prime Money Fund ("Prime Money") is also managed by
Neuberger Berman Management Inc. (see Notes A & F of Notes to
Financial Statements) and may be considered an affiliate since it has
the same officers, Board members, and investment manager as the Fund
and because, at times, the Fund may own 5% or more of the outstanding
voting securities of Prime Money.
10
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Schedule of Investments Balanced Portfolio cont'd
- ----------------------------------------------------------
++ The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans. The Fund's shares in
the Quality Fund are non-voting. However, because all shares of the
Quality Fund are held by funds in the related investment management
complex, the Quality Fund may be considered an affiliate of the Fund (see
Notes A & F of Notes to Financial Statements).
^ Principal amount is stated in the currency in which the security is
denominated.
EUR = Euro Currency
[sec] Credit ratings are unaudited.
11
See Notes to Financial Statements
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Assets and Liabilities
- -----------------------------------
Balanced
Neuberger Berman Advisers Management Trust Portfolio
Assets
Investments in securities, at market value*+ (Notes A & F)-see Schedule of Investments:
- ------------------------------------------------------------------------------------------------------
Unaffiliated issuers $ 81,446,644
- ------------------------------------------------------------------------------------------------------
Affiliated issuers 3,333,372
- ------------------------------------------------------------------------------------------------------
84,780,016
- ------------------------------------------------------------------------------------------------------
Cash 7,629
- ------------------------------------------------------------------------------------------------------
Dividends and interest receivable 398,220
- ------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 68,801
- ------------------------------------------------------------------------------------------------------
Prepaid expenses and other assets 2,178
- ------------------------------------------------------------------------------------------------------
Total Assets 85,256,844
- ------------------------------------------------------------------------------------------------------
Liabilities
Payable for collateral on securities loaned (Note A) 2,965,200
- ------------------------------------------------------------------------------------------------------
Payable for forward foreign currency exchange contracts sold (Note C) 13,459
- ------------------------------------------------------------------------------------------------------
Payable for securities purchased 497,641
- ------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 534,825
- ------------------------------------------------------------------------------------------------------
Payable to investment manager-net (Notes A & B) 36,639
- ------------------------------------------------------------------------------------------------------
Payable to administrator (Note B) 19,999
- ------------------------------------------------------------------------------------------------------
Accrued expenses and other payables 70,858
- ------------------------------------------------------------------------------------------------------
Total Liabilities 4,138,621
- ------------------------------------------------------------------------------------------------------
Net Assets at value $ 81,118,223
- ------------------------------------------------------------------------------------------------------
Net Assets consist of:
Paid-in capital $ 107,126,528
- ------------------------------------------------------------------------------------------------------
Undistributed net investment income 396,913
- ------------------------------------------------------------------------------------------------------
Accumulated net realized gains (losses) on investments (40,250,126)
- ------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) in value of investments 13,844,908
- ------------------------------------------------------------------------------------------------------
Net Assets at value $ 81,118,223
- ------------------------------------------------------------------------------------------------------
Shares Outstanding ($.001 par value; unlimited shares authorized) 8,417,015
- ------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share $ 9.64
- ------------------------------------------------------------------------------------------------------
+Securities on loan, at market value:
Unaffiliated issuers $ 2,879,809
- ------------------------------------------------------------------------------------------------------
*Cost of investments:
Unaffiliated issuers $ 67,589,612
- ------------------------------------------------------------------------------------------------------
Affiliated issuers 3,333,372
- ------------------------------------------------------------------------------------------------------
Total cost of investments $ 70,922,984
- ------------------------------------------------------------------------------------------------------
12
See Notes to Financial Statements
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST FOR THE YEAR ENDED DECEMBER 31, 2004
Statement of Operations
- -----------------------
Balanced
Neuberger Berman Advisers Management Trust Portfolio
Investment Income
Income (Note A):
Interest income-unaffiliated issuers $ 1,151,521
- --------------------------------------------------------------------------------------------------
Income from investments in affiliated issuers (Note F) 2,912
- --------------------------------------------------------------------------------------------------
Dividend income-unaffiliated issuers 163,537
- --------------------------------------------------------------------------------------------------
Income from securities loaned-affiliated issuer (Note F) 40,042
- --------------------------------------------------------------------------------------------------
Foreign taxes withheld (976)
- --------------------------------------------------------------------------------------------------
Total income 1,357,036
- --------------------------------------------------------------------------------------------------
Expenses:
Investment management fee (Notes A & B) 452,984
- --------------------------------------------------------------------------------------------------
Administration fee (Note B) 247,081
- --------------------------------------------------------------------------------------------------
Audit fees 38,404
- --------------------------------------------------------------------------------------------------
Custodian fees (Note B) 83,087
- --------------------------------------------------------------------------------------------------
Insurance expense 2,238
- --------------------------------------------------------------------------------------------------
Legal fees 15,015
- --------------------------------------------------------------------------------------------------
Registration and filing fees 21,875
- --------------------------------------------------------------------------------------------------
Shareholder reports 2,455
- --------------------------------------------------------------------------------------------------
Shareholder servicing agent fees 14,167
- --------------------------------------------------------------------------------------------------
Trustees' fees and expenses 24,999
- --------------------------------------------------------------------------------------------------
Miscellaneous 2,649
- --------------------------------------------------------------------------------------------------
Total expenses 904,954
Investment management fee waived (Note A) (302)
Expenses reduced by custodian fee expense offset and commission recapture arrangements (7,539)
- --------------------------------------------------------------------------------------------------
(Note B)
- --------------------------------------------------------------------------------------------------
Total net expenses 897,113
- --------------------------------------------------------------------------------------------------
Net investment income (loss) 459,923
- --------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers 3,440,382
- --------------------------------------------------------------------------------------------------
Financial futures contracts (119,821)
- --------------------------------------------------------------------------------------------------
Foreign currency (80,037)
- --------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities 3,489,579
- --------------------------------------------------------------------------------------------------
Foreign currency (12,124)
- --------------------------------------------------------------------------------------------------
Net gain (loss) on investments 6,717,979
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 7,177,902
- --------------------------------------------------------------------------------------------------
13
See Notes to Financial Statements
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Changes in Net Assets
- ----------------------------------
Balanced Portfolio
Neuberger Berman Advisers Management Trust Year Ended December 31,
2004 2003
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss) $ 459,923 $ 662,413
- --------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 3,240,524 4,370,243
- --------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments 3,477,455 7,209,917
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 7,177,902 12,242,573
- --------------------------------------------------------------------------------------------------------
Distributions to Shareholders From:
Net investment income (989,988) (1,410,014)
- --------------------------------------------------------------------------------------------------------
From Fund Share Transactions (Note D):
Proceeds from shares sold 6,616,445 8,153,281
- --------------------------------------------------------------------------------------------------------
Proceeds from reinvestment of dividends and distributions 989,988 1,410,014
- --------------------------------------------------------------------------------------------------------
Payments for shares redeemed (17,621,711) (15,951,532)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) from Fund share transactions (10,015,278) (6,388,237)
- --------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (3,827,364) 4,444,322
Net Assets:
Beginning of year 84,945,587 80,501,265
- --------------------------------------------------------------------------------------------------------
End of year $ 81,118,223 $ 84,945,587
- --------------------------------------------------------------------------------------------------------
Undistributed net investment income at end of year $ 396,913 $ 677,631
- --------------------------------------------------------------------------------------------------------
14
See Notes to Financial Statements
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Financial Statements Balanced Portfolio
- ------------------------------------------------
Note A--Summary of Significant Accounting Policies:
1 General: Balanced Portfolio (the "Fund") is a separate operating
series of Neuberger Berman Advisers Management Trust (the "Trust"), a
Delaware statutory trust organized pursuant to a Trust Instrument
dated May 23, 1994. The Trust is currently comprised of eleven
separate operating series (each a "Series," collectively, the "Funds")
each of which (except Focus Portfolio) is diversified. The Trust is
registered as an open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act"), and its
shares are registered under the Securities Act of 1933, as amended.
The Fund currently offers only Class I shares. The Board of Trustees
of the Trust (the "Board") may establish additional series or classes
of shares without the approval of shareholders.
The assets of each Series belong only to that Series, and the
liabilities of each Series are borne solely by that Series and no
other.
The preparation of financial statements in accordance with U.S.
generally accepted accounting principles requires Neuberger
Berman Management Inc. ("Management") to make estimates and
assumptions at the date of the financial statements. Actual
results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in
the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars using the exchange rate as of 12:00 noon, Eastern
time, to determine the value of investments, other assets and
liabilities. Purchase and sale prices of securities, and income and
expenses, are translated into U.S. dollars at the prevailing rate of
exchange on the respective dates of such transactions. Net unrealized
foreign currency gain (loss) arises from changes in the value of
assets and liabilities, other than investments in securities, as a
result of changes in exchange rates and is stated separately in the
Statement of Operations.
4 Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the
Fund becomes aware of the dividends. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income, including accretion of original
issue discount, where applicable, and accretion of market discount on
long-term bonds and short-term investments, is recorded on the accrual
basis. Realized gains and losses from securities transactions and
foreign currency transactions, if any, are recorded on the basis of
identified cost and stated separately in the Statement of Operations.
Included in net realized gain (loss) on investments are proceeds from
the settlements of class action litigation in which the Fund
participated as a plaintiff. The amount of such proceeds for the year
ended December 31, 2004 was $21,154.
5 Forward foreign currency contracts: The Fund may enter into forward
foreign currency contracts ("contracts") in connection with planned
purchases or sales of securities to hedge the U.S. dollar value of
portfolio securities denominated in a foreign currency. The gain or
loss arising from the difference between the original contract price
and the closing price of such contract is included in net realized
gains or losses on foreign currency transactions. Fluctuations in the
value of forward foreign currency contracts
15
Notes to Financial Statements Balanced Portfolio cont'd
are recorded for financial reporting purposes as unrealized gains
or losses by the Fund. The Fund has no specific limitation on the
percentage of assets which may be committed to these types of
contracts. The Fund could be exposed to risks if a counter party to a
contract were unable to meet the terms of its contract or if the value
of the foreign currency changes unfavorably. The U.S. dollar value of
foreign currency underlying all contractual commitments held by the
Fund is determined using forward foreign currency exchange rates
supplied by an independent pricing service.
6 Income tax information: The Funds are treated as separate entities for
U.S. Federal income tax purposes. It is the policy of the Fund to
continue to qualify as a regulated investment company by complying
with the requirements of Subchapter M of the Internal Revenue Code
applicable to regulated investment companies and to distribute
substantially all of its earnings to its shareholders. Therefore, no
Federal income or excise tax provision is required.
Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from
generally accepted accounting principles. These differences are
primarily due to differing treatments of income and gains on various
investment securities held by the Fund, timing differences and
differing characterization of distributions made by the Fund as a
whole. The Fund may also utilize earnings and profits distributed to
shareholders on redemption of shares as a part of the dividends paid
deduction for income tax purposes.
As determined on December 31, 2004, permanent differences resulting
primarily from different book and tax accounting for foreign currency
gains and losses, paydown gains and losses, amortization of bond
premium, and mortgage dollar rolls, were reclassified at year end.
These reclassifications had no effect on net income, net assets or net
assets per share of the Fund.
The tax character of distributions paid during the years ended
December 31, 2004 and December 31, 2003 were as follows:
Distributions Paid From:
Ordinary Income Total
2004 2003 2004 2003
$989,988 $1,410,014 $989,988 $1,410,014
As of December 31, 2004, the components of distributable earnings
(accumulated losses) on a U.S. Federal income tax basis were as
follows:
Unrealized Loss
Undistributed Appreciation Carryforwards
Ordinary Income (Depreciation) and Deferrals Total
$711,015 $13,482,384 $(40,201,704) $(26,008,305)
The difference between book basis and tax basis distributable earnings
is attributable primarily to timing differences of wash sales, mark to
market on certain forward foreign currency contracts, and amortization
of bond premium. To the extent the Fund's net realized capital gains,
if any, can be offset by capital loss carryforwards, it is the policy
of the Fund not to distribute such gains. As determined at December
31, 2004, the Fund had unused capital loss carryforwards available for
Federal income tax purposes to offset net realized capital gains, if
any, as follows:
16
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Expiring in
2009 2010
$26,467,694 $13,734,010
During the year ended December 31, 2004, the Fund utilized capital
loss carryforwards of $2,378,120.
7 Dividends and distributions to shareholders: The Fund may earn
income, net of expenses, daily on its investments. Income dividends
and distributions from net realized capital gains, if any, generally
are distributed in October. Income dividends and capital gain
distributions to shareholders are recorded on the ex-dividend date.
8 Foreign taxes: Foreign taxes withheld represent amounts withheld by
foreign tax authorities, net of refunds recoverable.
9 Expense allocation: Certain expenses are applicable to multiple
funds. Expenses directly attributable to a Series are charged to that
Series. Expenses of the Trust that are not directly attributed to a
Series are allocated among the Funds, on the basis of relative net
assets, except where a more appropriate allocation of expenses to each
of the Funds can otherwise be made fairly. Expenses borne by the
complex of related investment companies, which includes open-end and
closed-end investment companies for which Management serves as
investment manager, that are not directly attributed to a Series or
the Trust, are allocated among the Fund and the other investment
companies in the complex or series thereof, on the basis of relative
net assets, except where a more appropriate allocation of expenses to
each investment company in the complex or series thereof can otherwise
be made fairly.
10 Financial futures contracts: The Fund may buy and sell financial
futures contracts to hedge against changes in securities prices
resulting from changes in prevailing interest rates. At the time the
Fund enters into a financial futures contract, it is required to
deposit with its custodian a specified amount of cash or liquid
securities, known as "initial margin," ranging upward from 1.1% of the
value of the financial futures contract being traded. Each day, the
futures contract is valued at the official settlement price of the
board of trade or U.S. commodity exchange on which such futures
contract is traded. Subsequent payments, known as "variation margin,"
to and from the broker are made on a daily basis as the market price
of the financial futures contract fluctuates. Daily variation margin
adjustments, arising from this "mark to market," are recorded by the
Fund as unrealized gains or losses.
Although some financial futures contracts by their terms call for
actual delivery or acceptance of financial instruments, in most cases
the contracts are closed out prior to delivery by offsetting purchases
or sales of matching financial futures contracts. When the contracts
are closed, the Fund recognizes a gain or loss. Risks of entering into
futures contracts include the possibility there may be an illiquid
market and/or a change in the value of the contract may not correlate
with changes in the value of the underlying securities.
For U.S. Federal income tax purposes, the futures transactions
undertaken by the Fund may cause the Fund to recognize gains or losses
from marking to market even though its positions have not been sold or
terminated, may affect the character of the gains or losses recognized
as long-term or short-term, and may
17
Notes to Financial Statements Balanced Portfolio cont'd
- --------------------------------------------------------
affect the timing of some capital gains and losses realized by the
Fund. Also, the Fund's losses on transactions involving futures
contracts may be deferred rather than being taken into account
currently in calculating the Fund's taxable income.
During the year ended December 31, 2004, the Fund entered into various
financial futures contracts. At December 31, 2004, there were no open
positions.
11 Security lending: Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund entered into a Securities
Lending Agreement ("Agreement") with Neuberger Berman, LLC
("Neuberger") on April 17, 2003. Securities loans involve certain
risks in the event a borrower should fail financially, including
delays or inability to recover the lent securities or foreclose
against the collateral. The investment manager, under the general
supervision of the Board, monitors the creditworthiness of the parties
to whom the Fund makes security loans. The Fund will not lend
securities on which covered call options have been written, or lend
securities on terms which would prevent the Fund from qualifying as a
regulated investment company. The Fund receives cash collateral equal
to at least 102% of the current market value of the loaned securities.
The Fund invests the cash collateral in the N&B Securities Lending
Quality Fund, LLC ("Quality Fund"), which is managed by State Street
Bank and Trust Company ("State Street") pursuant to guidelines
approved by the Trust's investment manager. Neuberger guaranteed a
certain amount of revenue to the Fund under the Agreement, and
received a portion of any revenue earned in excess of the guaranteed
amount as a lending agency fee.
The Agreement has been renewed and approved by the Board as of July 1,
2004 with substantially the same terms. Under this current Agreement,
Neuberger guarantees a certain amount of revenue to the Fund and
receives any revenue earned in excess of the guaranteed amount as a
lending agency fee. For the year ended December 31, 2004, Neuberger
did not receive any revenue under the Agreement. Income earned on the
securities loaned, if any, is reflected in the Statement of Operations
under the caption Income from securities loaned-affiliated issuer.
In February of 2005, it is likely that the Fund will change the
collateral investment vehicle from the Quality Fund, managed by State
Street, to a fund managed by Lincoln Capital, an affiliate, as
approved by the Board.
12 Repurchase agreements: The Fund may enter into repurchase
agreements with institutions that the Fund's investment manager has
determined are creditworthy. Each repurchase agreement is recorded at
cost. The Fund requires that the securities purchased in a repurchase
transaction be transferred to the custodian in a manner sufficient to
enable the Fund to assert a perfected security interest in those
securities in the event of a default under the repurchase agreement.
The Fund monitors, on a daily basis, the value of the securities
transferred to ensure that their value, including accrued interest, is
greater than amounts owed to the Fund under each such repurchase
agreement.
13 Transactions with other funds managed by Neuberger Berman
Management Inc.: Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund may invest in the
Neuberger Berman Institutional Cash Fund (the "Cash Fund") and the
Neuberger Berman Prime Money Fund ("Prime Money"), affiliated funds,
which are managed by Management and have the same Board members as the
Fund. The Cash Fund and Prime Money each seeks to provide as high a
level of current
18
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
income as is consistent with the preservation of capital and the
maintenance of liquidity. For any cash that the Fund invests in the
Cash Fund or Prime Money, Management waives a portion of its
management fee equal to the management fee it receives from the Cash
Fund or Prime Money on those assets. For the year ended December 31,
2004, management fees waived amounted to $296 and $6 for the Cash Fund
and Prime Money, respectively. For the year ended December 31, 2004,
income earned on the investments of the Cash Fund and Prime Money
amounted to $2,779 and $133, respectively, and is reflected in the
Statement of Operations under the caption Income from investments in
affiliated issuers.
14 Dollar rolls: The Fund may enter into dollar roll transactions with
respect to mortgage-backed securities. In a dollar roll transaction,
the Fund sells securities for delivery in the current month and
simultaneously agrees to repurchase substantially similar (i.e., same
type and coupon) securities on a specified future date from the same
party. During the period before the repurchase, the Fund foregoes
principal and interest payments on the securities. The Fund is
compensated by the difference between the current sales price and the
forward price for the future purchase (often referred to as the
"drop"), as well as by the interest earned on the cash proceeds of the
initial sale. Dollar rolls may increase fluctuations in the Fund's net
asset value and may be viewed as a form of leverage. There is a risk
that the counter party will be unable or unwilling to complete the
transaction as scheduled, which may result in losses to the Fund.
15 Indemnifications: Like many other companies, the Trust's
organizational documents provide that its officers and trustees are
indemnified against certain liabilities arising out of the performance
of their duties to the Trust. In addition, both in some of its
principal service contracts and in the normal course of its business,
the Trust enters into contracts that provide indemnifications to other
parties for certain types of losses or liabilities. The Trust's
maximum exposure under these arrangements is unknown as this could
involve future claims against the Trust.
Note B--Management Fees, Administration Fees, Distribution
Arrangements, and Other Transactions With Affiliates: Fund shares are
issued and redeemed in connection with investments in and payments
under certain variable annuity contracts and variable life insurance
policies issued through separate accounts of life insurance companies
and are also offered directly to qualified pension and retirement
plans.
The Fund retains Management as its investment manager under a
Management Agreement. For such investment management services, the
Fund pays Management a fee at the annual rate of 0.55% of the first
$250 million of the Fund's average daily net assets, 0.525% of the
next $250 million, 0.50% of the next $250 million, 0.475% of the next
$250 million, 0.45% of the next $500 million, 0.425% of the next $2.5
billion, and 0.40% of average daily net assets in excess of $4
billion.
The Fund retains Management as its administrator under an
Administration Agreement. The Fund pays Management an administration
fee at the annual rate of 0.30% of its average daily net assets under
this agreement. Additionally, Management retains State Street as its
sub-administrator under a Sub-Administration Agreement. Management
pays State Street a fee for all services received under this
agreement.
19
Notes to Financial Statements Balanced Portfolio cont'd
- -------------------------------------------------------
The Board adopted a non-fee distribution plan for the Fund.
Management has contractually undertaken through December 31, 2008 to reimburse
the Fund for its operating expenses (excluding the fees payable to Management,
interest, taxes, brokerage commissions, extraordinary expenses, and transaction
costs) ("Operating Expenses") which exceed, in the aggregate, 1.00% per annum
of the Fund's average daily net assets (the "Expense Limitation"). For the year
ended December 31, 2004, no reimbursement to the Fund was required. The Fund
has agreed to repay Management through December 31, 2011 for its excess
Operating Expenses previously reimbursed by Management, so long as its annual
Operating Expenses during that period do not exceed its Expense Limitation, and
the repayment is made within three years after the year in which Management
issued the reimbursement. During the year ended December 31, 2004, there was no
reimbursement to Management under this agreement. At December 31, 2004, the
Fund has no contingent liability to Management under this agreement.
On October 31, 2003, Management and Neuberger, a member firm of the New York
Stock Exchange and sub-adviser to the Fund, became indirect wholly-owned
subsidiaries of Lehman Brothers Holdings Inc. ("Lehman"), a publicly-owned
holding company. Neuberger is retained by Management to furnish it with
investment recommendations and research information without added cost to the
Fund. Several individuals who are officers and/or Trustees of the Trust are
also employees of Neuberger and/or Management.
On July 1, 2003, the Fund entered into a commission recapture program, which
enables it to pay some of its operational expenses by recouping a portion of
the commissions it pays to a broker that is not a related party of the Fund.
Expenses paid through this program may include costs of custodial, transfer
agency or accounting services. For the year ended December 31, 2004, the impact
of this arrangement was a reduction of expenses of $7,363.
The Fund has an expense offset arrangement in connection with its custodian
contract. For the year ended December 31, 2004, the impact of this arrangement
was a reduction of expenses of $176.
Note C--Securities Transactions:
Cost of purchases and proceeds of sales and maturities of long-term securities
(excluding financial futures contracts and foreign currency contracts) for the
year ended December 31, 2004 were as follows:
Sales and Maturities
Purchases of Purchases excluding Sales and Maturities excluding
U.S. Government U.S. Government of U.S. Government U.S. Government and
and Agency and Agency and Agency Agency
Obligations Obligations Obligations Obligations
$34,627,979 $51,909,040 $32,405,670 $55,795,744
During the year ended December 31, 2004, brokerage commissions on securities
transactions amounted to $117,649, of which Neuberger received $0, Lehman
received $22,978, and other brokers received $94,671.
20
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
During the year ended December 31, 2004, the Fund entered into various
contracts to deliver currencies at specified future dates. At December 31,
2004, open contracts were as follows:
Contracts to In Exchange Settlement Net Unrealized
Sell Deliver For Date Value Depreciation
Euro Dollar 961,000 EUR $1,288,186 2/28/05 $1,301,645 $13,459
Note D--Fund Share Transactions:
Share Activity for the years ended Decemeber 31,2994 and December 31,2003 was as
follows
For the Year Ended December 31,
2004 2003
Shares Sold 728,457 971,681
Shares Issued on Reinvestment of
Dividends and Distributions 110,613 161,699
Shares Redeemed (1,933,718) (1,931,366)
---------- ----------
Total (1,094,648) (797,986)
---------- ----------
Note E--Line of Credit:
At December 31, 2004, the Fund was a participant in a single committed,
unsecured $150,000,000 line of credit with State Street, to be used only for
temporary or emergency purposes. Interest is charged on borrowings under this
agreement at the overnight Federal Funds Rate plus 0.50% per annum. A facility
fee of 0.10% per annum of the available line of credit is charged, of which the
Fund has agreed to pay its pro rata share, based on the ratio of its individual
net assets to the net assets of all participants at the time the fee is due and
payable. The fee is paid quarterly in arrears. No compensating balance is
required. Other investment companies managed by Management also participate in
this line of credit on the same terms. Because several investment companies
participate, there is no assurance that the Fund will have access to all or any
part of the $150,000,000 at any particular time. The Fund had no loans
outstanding pursuant to this line of credit at December 31, 2004, nor had the
Fund utilized this line of credit at any time prior to that date.
21
Notes to Financial Statements Balanced Portfolio cont'd
- -------------------------------------------------------
Note F--Investments in Affiliates*:
Income from
Investments
Balance of Balance of in
Shares Gross Shares Affiliated
Held Gross Sales Held Value Issuers
December 31, Purchases and December 31, December 31, Included in
Name of Issuer 2003 and Additions Reductions 2004 2004 Total Income
N&B Securities Lending
Quality Fund, LLC** 4,260,200 856,602,440 857,897,440 2,965,200 $2,965,200 $40,042
Neuberger Berman
Institutional Cash Fund
Trust Class*** 355,116 14,555,227 14,910,343 - - 2,779
Neuberger Berman Prime
Money Fund Trust
Class*** - 799,580 431,408 368,172 368,172 133
---------- -------
Total $3,333,372 $42,954
---------- -------
* Affiliated issuers, as defined in the 1940 Act, include issuers in which the
Fund held 5% or more of the outstanding voting securities.
** The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans. The Fund's shares in the
Quality Fund are non-voting. However, because all shares of the Quality
Fund are held by funds in the related investment management complex, the
Quality Fund may be considered an affiliate of the Fund.
*** Neuberger Berman Institutional Cash Fund (the "Cash Fund") and Neuberger
Berman Prime Money Fund ("Prime Money") are also managed by Neuberger
Berman Management Inc. and may be considered affiliates since they have the
same officers, Board members, and investment manager as the Fund and
because, at times, the Fund may own 5% or more of the outstanding voting
securities of the Cash Fund or Prime Money, respectively.
22
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Financial Highlights Balanced Portfolio+
- ----------------------------------------
The following table includes selected data for a share outstanding throughout
each year and other performance information derived from the Financial
Statements.++
Year Ended December 31,
-----------------------------------------------------------
2004 2003 2002 2001 2000
Net Asset Value, Beginning of Year $ 8.93 $ 7.81 $ 9.66 $ 17.28 $ 20.89
------- ------- ------- --------- --------
Income From Investment Operations:
Net Investment Income (Loss) .05 .07 .12 .22- .30
Net Gains or Losses on Securities
(both realized and unrealized) .77 1.20 (1.75) ( 2.27)- ( .61)
------- ------- -------- --------- --------
Total From Investment Operations .82 1.27 (1.63) ( 2.05) ( .31)
------- ------- -------- --------- --------
Less Distributions From:
Net Investment Income (.11) ( .15) (.22) ( .28) ( .37)
Net Capital Gains - - - ( 5.29) ( 2.93)
------- -------- -------- --------- --------
Total Distributions (.11) (.15) (.22) ( 5.57) ( 3.30)
------- -------- -------- --------- --------
Net Asset Value, End of Year $ 9.64 $ 8.93 $ 7.81 $ 9.66 $ 17.28
------- -------- -------- --------- --------
Total Return++ +9.31% +16.28% -17.15% -13.36% -4.55%
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $ 81.1 $ 84.9 $ 80.5 $ 112.0 $ 147.6
Ratio of Gross Expenses to Average Net Assets# 1.10% 1.12% 1.12% 1.07% .99%
Ratio of Net Expenses to Average Net Assets[sec] 1.09% 1.11% 1.12% 1.07% .99%
Ratio of Net Investment Income (Loss) to Average Net Assets .56% .82% 1.37% 2.10%- 1.49%
Portfolio Turnover Rate 110% 121% 106% 88% 124%
See Notes to Financial Highlights 23
Notes to Financial Highlights Balanced Portfolio
- ------------------------------------------------
+ The per share amounts and ratios which are shown reflect income and
expenses, including the Fund's proportionate share of AMT Balanced
Investment's income and expenses through April 30, 2000 under the
prior master/feeder fund structure.
++ Total return based on per share net asset value reflects the effects
of changes in net asset value on the performance of the Fund during
each fiscal period and assumes dividends and other distributions, if
any, were reinvested. Results represent past performance and do not
guarantee future results. Current returns may be lower or higher than
the performance data quoted. Investment returns and principal may
fluctuate and shares when redeemed may be worth more or less than
original cost. Total return would have been lower if Management had
not waived certain expenses. The total return information shown does
not reflect charges and other expenses that apply to the separate
account or the related insurance policies, and the inclusion of these
charges and other expenses would reduce the total return for all
fiscal periods shown. Performance data current to the most recent
month-end are available at www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
++ The per share amounts which are shown have been computed based on the
average number of shares outstanding during each fiscal period.
[sec] After waiver of a portion of the investment management fee. Had the
investment manager not undertaken such action, the annualized ratios
of net expenses to average daily net assets would have been:
Year Ended December 31,
2004 2003
1.09% 1.11%
- For fiscal years ended after December 31, 2000, funds are required
by the American Institute of Certified Public Accountants to amortize
premiums and discounts on fixed income securities. Accordingly, for
the year ended December 31, 2001, the per share amounts and ratios
shown decreased or increased as follows:
Year Ended December
31,
2001
Net Investment Income (.004)
Net Gains or Losses on Securities .004
Ratio of Net Investment Income to Average Net Assets (.04%)
24
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Report of Independent Registered Public Accounting Firm
- -------------------------------------------------------
To the Board of Trustees of
Neuberger Berman Advisers Management Trust and
Shareholders of Balanced Portfolio
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Balanced Portfolio, one of the series
constituting the Neuberger Berman Advisers Management Trust (the "Trust"), as
of December 31, 2004, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights. Our procedures included confirmation of securities owned as of
December 31, 2004, by correspondence with the custodian and brokers or other
appropriate auditing procedures where replies from brokers were not received.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Balanced Portfolio of Neuberger Berman Advisers Management Trust at December
31, 2004, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and its
financial highlights for each of the five years in the period then ended, in
conformity with U.S. generally accepted accounting principles.
/s/Ernst & Young LLP
Boston, Massachusetts
February 4, 2005
25
Trustees and Officers (Unaudited)
- ---------------------------------
The following tables set forth information concerning the trustees and officers
of the Trust. All persons named as trustees and officers also serve in similar
capacities for other funds administered or managed by NB Management and
Neuberger Berman. The Statement of Additional Information includes additional
information about fund trustees and is available upon request, without charge,
by calling (800) 877-9700.
Information about the Board of Trustees
- --------------------------------------------------------------------------------
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
John Cannon (74) Trustee since Consultant. Formerly,
2000 Chairman, CDC Investment
Advisers (registered investment
adviser) 1993 to January 1999;
formerly, President and Chief
Executive Officer, AMA
Investment Advisors, an affiliate
of the American Medical
Association.
- --------------------------------------------------------------------------------
Faith Colish (69) Trustee since Counsel, Carter Ledyard &
1984 Millburn LLP (law firm) since
October 2002; formerly,
Attorney-at-Law and President,
Faith Colish, A Professional
Corporation, 1980 to 2002.
- --------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) Trustee since Consultant; Retired President
1989 and Trustee, Teachers Insurance
& Annuity (TIAA) and College
Retirement Equities Fund
(CREF).
- --------------------------------------------------------------------------------
C. Anne Harvey (67) Trustee since Consultant, C. A. Harvey
1998 Associates, since June 2001;
formerly, Director, AARP, 1978
to December 2001.
- -------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- --------------------------------------------------------------------------------
John Cannon (74) 41 Independent Trustee or Director of
three series of Oppenheimer Funds:
Limited Term New York Municipal
Fund, Rochester Fund Municipals,
and Oppenheimer Convertible
Securities Fund, since 1992.
- --------------------------------------------------------------------------------
Faith Colish (69) 41 Director, American Bar Retirement
Association (ABRA) since 1997
(not-for-profit membership
association).
- --------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) 41 None.
- --------------------------------------------------------------------------------
C. Anne Harvey (67) 41 President, Board of Associates to
The National Rehabilitation
Hospital's Board of Directors since
2002; formerly, Member, Individual
Investors Advisory Committee to the
New York Stock Exchange Board
of Directors, 1998 to June 2002;
formerly, Member, American
Savings Education Council's Policy
Board (ASEC), 1998 to 2000;
formerly, Member, Executive
Committee, Crime Prevention
Coalition of America, 1997 to 2000.
- --------------------------------------------------------------------------------
26
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Barry Hirsch (71) Trustee since Attorney-at-Law. Formerly,
2000 Senior Counsel, Loews
Corporation (diversified
financial corporation) May 2002
until April 2003; formerly,
Senior Vice President, Secretary
and General Counsel,
Loews Corporation.
- --------------------------------------------------------------------------------
Robert A. Kavesh (77) Trustee since Marcus Nadler Professor
2000 Emeritus of Finance and
Economics, New York
University Stern School
of Business.
- --------------------------------------------------------------------------------
Howard A. Mileaf (67) Trustee since Retired. Formerly, Vice
1999 President and Special Counsel,
WHX Corporation (holding
company) 1993 to 2001.
- --------------------------------------------------------------------------------
William E. Rulon (72) Trustee since Retired. Formerly, Senior Vice
2000 President, Foodmaker, Inc.
(operator and franchiser of
restaurants) until January 1997.
- --------------------------------------------------------------------------------
Cornelius T. Ryan (73) Trustee since Founding General Partner,
2000 Oxford Partners and Oxford
Bioscience Partners (venture
capital partnerships) and
President, Oxford Venture
Corporation.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- --------------------------------------------------------------------------------
Barry Hirsch (71) 41 None.
- --------------------------------------------------------------------------------
Robert A. Kavesh (77) 41 Director, DEL Laboratories, Inc.
(cosmetics and pharmaceuticals)
since 1978; Director, The Caring
Community (not-for-profit).
- --------------------------------------------------------------------------------
Howard A. Mileaf (67) 41 Director, WHX Corporation
(holding company) since August
2002; Director, Webfinancial
Corporation (holding company)
since December 2002; Director, State
Theatre of New Jersey (not-for-
profit theater) since 2000; formerly,
Director, Kevlin Corporation
(manufacturer of microwave and
other products).
- --------------------------------------------------------------------------------
William E. Rulon (72) 41 Director, Pro-Kids Golf and
Learning Academy (teach golf and
computer usage to "at risk" children)
since 1998; formerly, Director,
Prandium, Inc. (restaurants) from
March 2001 until July 2002.
- --------------------------------------------------------------------------------
Cornelius T. Ryan (73) 41 Director, Capital Cash Management
Trust (money market fund),
Naragansett Insured Tax-Free
Income Fund, Rocky Mountain
Equity Fund, Prime Cash Fund,
several private companies and
QuadraMed Corporation
(NASDAQ).
- --------------------------------------------------------------------------------
27
Trustees and Officers (Unaudited) cont'd
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Tom D. Seip (54) Trustee since General Partner, Seip
2000 Investments LP (a private
investment partnership);
formerly, President and CEO,
Westaff, Inc. (temporary
staffing), May 2001 to January
2002; Senior Executive at the
Charles Schwab Corporation
from 1983 to 1999, including
Chief Executive Officer,
Charles Schwab Investment
Management, Inc. and Trustee,
Schwab Family of Funds and
Schwab Investments from
1997 to 1998 and Executive
Vice President-Retail
Brokerage, Charles Schwab
Investment Management from
1994 to 1997.
- --------------------------------------------------------------------------------
Candace L. Straight (57) Trustee since Private investor and consultant
1999 specializing in the insurance
industry; formerly, Advisory
Director, Securitas Capital
LLC (a global private equity
investment firm dedicated to
making investments in the
insurance sector) 1998 to
December 2002.
- --------------------------------------------------------------------------------
Peter P. Trapp (60) Trustee since Regional Manager for Atlanta
1984 Region, Ford Motor Credit
Company since August 1997;
formerly, President, Ford Life
Insurance Company, April 1995
to August 1997.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- -------------------------------------------------------------------------------
Tom D. Seip (54) 41 Director, H&R Block, Inc. (financial
services company) since May 2001;
Director, Forward Management, Inc.
(asset management) since 2001;
formerly, Director, General Magic
(voice recognition software) 2001
until 2002; formerly, Director,
E-Finance Corporation (credit
decisioning services) 1999 to 2003;
formerly, Director, Save-Daily.com
(micro investing services) 1999 to
2003; Director, Offroad Capital Inc.
(pre-public internet commerce
company).
- --------------------------------------------------------------------------------
Candace L. Straight (57) 41 Director, The Proformance Insurance
Company (personal lines property
and casualty insurance company)
since March 2004; Director,
Providence Washington (property
and casualty insurance company)
since December 1998; Director,
Summit Global Partners (insurance
brokerage firm) since October 2000.
- --------------------------------------------------------------------------------
Peter P. Trapp (60) 41 None.
- --------------------------------------------------------------------------------
28
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Trustees who are Position and
"Interested Persons" Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Edward I. O'Brien* (76) Trustee since Formerly, Member, Investment
2000 Policy Committee, Edward
Jones 1993 to 2001; President,
Securities Industry Association
("SIA") (securities industry's
representative in government
relations and regulatory
matters at the federal and state
levels) 1974 to 1992; Adviser to
SIA, November 1992 to
November 1993.
- --------------------------------------------------------------------------------
Jack L. Rivkin* (64) President and Executive Vice President and
Trustee since Chief Investment Officer,
December Neuberger Berman Inc.
2002 (holding company) since 2002
and 2003, respectively;
Executive Vice President and
Chief Investment Officer,
Neuberger Berman since
December 2002 and 2003,
respectively; Director and
Chairman, NB Management
since December 2002; formerly,
Executive Vice President,
Citigroup Investments, Inc.
from September 1995 to
February 2002; formerly,
Executive Vice President,
Citigroup Inc. from September
1995 to February 2002.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Fund Complex
"Interested Persons" Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- --------------------------------------------------------------------------------
Edward I. O'Brien* (76) 41 Director, Legg Mason, Inc. (financial
services holding company) since
1993; formerly, Director, Boston
Financial Group (real estate and tax
shelters) 1993 to 1999.
- --------------------------------------------------------------------------------
Jack L. Rivkin* (64) 41 Director, Dale Carnegie and
Associates, Inc. (private company)
since 1998; Director, Emagin Corp.
(public company) since 1997;
Director, Solbright, Inc. (private
company) since 1998; Director,
Infogate, Inc. (private company)
since 1997; Director, Broadway
Television Network (private
company) since 2000.
- --------------------------------------------------------------------------------
29
Trustees and Officers (Unaudited) cont'd
Trustees who are Position and
"Interested Persons" Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Peter E. Sundman* (45) Chairman of Executive Vice President,
the Board, Neuberger Berman Inc.
Chief (holding company) since 1999;
Executive Head of Neuberger Berman
Officer and Inc.'s Mutual Funds and
Trustee Institutional Business since
since 2000 1999; President and Director,
President NB Management since 1999;
and Chief Executive Vice President,
Executive Neuberger Berman since 1999;
Officer from formerly, Principal, Neuberger
1999 to 2000 Berman from 1997 until 1999;
formerly, Senior Vice President,
NB Management from 1996
until 1999.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Fund Complex
"Interested Persons" Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- --------------------------------------------------------------------------------
Peter E. Sundman* (45) 41 Director and Vice President,
Neuberger & Berman Agency, Inc.
since 2000; formerly, Director,
Neuberger Berman Inc. (holding
company) from October 1999
through March 2003; Trustee,
Frost Valley YMCA.
- --------------------------------------------------------------------------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the Trust's Trust Instrument, each Trustee shall hold office
for life or until his or her successor is elected or the Trust terminates;
except that (a) any Trustee may resign by delivering a written resignation;
(b) any Trustee may be removed with or without cause at any time by a
written instrument signed by at least two-thirds of the other Trustees; (c)
any Trustee who requests to be retired, or who has become unable to serve,
may be retired by a written instrument signed by a majority of the other
Trustees; and (d) any Trustee may be removed at any shareholder meeting by
a vote of at least two-thirds of the outstanding shares.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
(4) Retired (effective the close of business December 31, 2004).
* Indicates a trustee who is an "interested person" within the meaning of the
1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of the Trust by
virtue of the fact that they are officers and/or directors of NB Management
and Executive Vice Presidents of Neuberger Berman. Mr. O'Brien is an
interested person of the Trust by virtue of the fact that he is a director
of Legg Mason, Inc., a wholly owned subsidiary of which, from time to time,
serves as a broker or dealer to the Funds and other funds for which NB
Management serves as investment manager.
30
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Information about the Officers of the Trust
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------------------------------
Claudia A. Brandon (48) Secretary since 1985 Vice President-Mutual Fund Board Relations,
NB Management since 2000; Vice President, Neuberger
Berman since 2002 and employee since 1999; formerly,
Vice President, NB Management from 1986 to 1999;
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (four since 2002, three since 2003, and four
since 2004).
Philip R. Carroll (70) Chief Compliance Officer Vice President, Neuberger Berman since 2002; Associate
since 2004 General Counsel, Neuberger Berman since 2001; Director-
Mutual Fund Compliance, NB Management since 1995;
Chief Legal Officer, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (ten since 2003 and four since
2004); Chief Compliance Officer, fourteen registered
investment companies for which NB Management acts
as investment manager and administrator (fourteen since
2004) and Lehman Brothers/First Trust Income
Opportunity Fund.
Robert Conti (48) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003,
formerly, Vice President, Neuberger Berman from 1999
until 2003; Senior Vice President, NB Management since
2000; formerly, Controller, NB Management until 1996;
formerly, Treasurer, NB Management from 1996 until
1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Brian J. Gaffney (51) Vice President since 2000 Managing Director, Neuberger Berman since 1999;
Senior Vice President, NB Management since 2000;
formerly, Vice President, NB Management from 1997
until 1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Sheila R. James (39) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1991 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
31
Trustees and Officers (Unaudited) cont'd
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- -------------------------------------------------------------------------------------------------------------------------
Kevin Lyons (49) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1993 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (ten since 2003 and four since 2004).
John M. McGovern (34) Assistant Treasurer since 2002 Vice President, Neuberger Berman since January 2004;
Employee, NB Management since 1993; Assistant
Treasurer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
Barbara Muinos (46) Treasurer and Principal Financial Vice President, Neuberger Berman since 1999; formerly,
and Accounting Officer since 2002; Assistant Vice President, NB Management from 1993 to
prior thereto, Assistant Treasurer 1999; Treasurer and Principal Financial and Accounting
since 1996 Officer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004); formerly, Assistant Treasurer, three registered
investment companies for which NB Management acts
as investment manager and administrator from 1996
until 2002.
Frederic B. Soule (58) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003;
formerly, Vice President, Neuberger Berman from 1999
until 2003; formerly, Vice President, NB Management
from 1995 until 1999; Vice President, fourteen registered
investment companies for which NB Management acts as
investment manager and administrator (three since 2000,
four since 2002, three since 2003, and four since 2004).
- -------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the By-Laws of the Trust, each officer elected by the Trustees
shall hold office until his or her successor shall have been elected and
qualified or until his or her earlier death, inability to serve, or
resignation. Officers serve at the pleasure of the Trustees and may be
removed at any time with or without cause.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
32
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Proxy Voting Policies and Procedures
- ------------------------------------
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available, without
charge, by calling 1-800-877-9700 (toll-free) and on the website of the
Securities and Exchange Commission, at www.sec.gov. Information regarding how
the Trust voted proxies relating to portfolio securities during the most recent
12-month period ended June 30 will also be available without charge, by calling
1-800-877-9700 (toll-free), on the website of the Securities and Exchange
Commission, at www.sec.gov, and on the Trust's website at www.nb.com.
Quarterly Portfolio Schedule
- ----------------------------
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange
Commission's website at www.sec.gov and may be reviewed and copied at the
Securities and Exchange Commission's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The information on Form N-Q is available upon request,
without charge, by calling 1-800-877-9700 (toll-free).
33
Annual Report
December 31, 2004
[NEUBERGER BERMAN]
A Lehman Brothers Company
Neuberger Berman
Advisers
Management
Trust
Fasciano
Portfolio
D0081 02/05
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Fasciano Portfolio Manager's Commentary
- ---------------------------------------
In mid-August, small-cap stocks pulled out of a summer tailspin and rallied for
the rest of 2004. For the year, the small-cap Russell 2000 Index once again
significantly outperformed the large-cap S&P 500.2 The Neuberger Berman AMT
Fasciano Portfolio finished behind its Russell 2000 benchmark, largely due to
underperformance in the Consumer Discretionary and Health Care sectors.
In 2004, our Industrial investments had a strongly positive impact on our
absolute returns. Trucking logistics company Landstar System, pump and valve
manufacturer IDEX Corp., maintenance and repair products distributor MSC
Industrial Direct, and uniform rental company G&K Services were all stellar
performers. Our Information Technology (IT) stocks helped results relative to
the benchmark. Scansource, a distributor of bar code printers, and Plantronics,
a wireless headset manufacturer, both provided gains compared to a small loss
for comparable stocks in the Russell 2000. Although they underperformed, our
Energy holdings provided solid absolute returns. Carbo Ceramics, a manufacturer
of ceramic material used in oil recovery, and Offshore Logistics, whose
helicopters transport workers and supplies to offshore drilling rigs, were
notably strong.
Our Consumer Discretionary investments proved disappointing in 2004, with radio
and television broadcaster Emmis Communications and retailer Sharper Image both
making our "bottom ten" list. For Emmis, weakness in auto ad sales hurt
profits, while listener ratings and cash flows were under pressure at its
alternative rock station in Chicago. Also, excitement about satellite radio has
raised concerns about traditional radio outlets. However, we believe that Emmis
has the "right stuff" to overcome today's challenges. It has kept a tight rein
on expenses and has long been successful at buying and improving poorly
performing properties. With a new radio acquisition, it has an opportunity to
increase sales and realize cost savings. Looking ahead, we believe that higher
corporate confidence may raise ad spending above expectations, and we do not
believe that pay satellite radio will have much impact on free radio stations.
As a result, we continue to hold Emmis Communications and believe it will be a
rewarding long-term investment.
In contrast, we have thrown in the towel on Sharper Image. We bought the
company because it had solid footholds in mailorder, Internet, and traditional
store retailing. Plus, the Sharper Image brand name generated good profit
margins. However, the market for highly discretionary consumer electronics
appears to be weakening, which is restraining the company's sales and eroding
its pricing power.
Among our Health Care stocks, we believe that KV Pharmaceuticals and ICU
Medical--both disappointments in 2004--are currently getting back on track.
KV's stock fell when it changed auditors, alarming shareholders who were
already concerned about a lull in new product releases. However, KV's change of
auditors turned out to be a non-event and the company has since introduced a
promising new product named Clindesse. With the stock well off its low,
investors are beginning to recognize the company's solid progress. ICU Medical,
known for excellent IV-related products and distribution, lowered earnings
guidance when its largest customer decided to work down inventories before
placing new orders. With that one-time event behind it, we anticipate that the
company's sales and earnings will rebound.
Another stock in the group, D&K Healthcare, seems far less promising. With
losses this year, we sold the stock because of lingering profitability issues
and concerns about fierce competition in the wholesale drug distribution
business.
As our longer-term shareholders know, we are not economists or market
forecasters and find it more
1
Fasciano Portfolio Manager's Commentary cont'd
- ----------------------------------------------
productive to focus on bottom-up, company fundamentals. That said, the
consensus outlook for 2005 is for moderate economic growth and relatively low
inflation, which is generally good for equities. Small-caps have had a big run
over the last six years and some observers believe that this cannot continue,
suggesting that perhaps large-caps present better value. As you would expect,
we are always excited about small-cap stocks. We view the group as fertile
ground for new ideas and will remain diligent in finding value among companies
that meet our quality and growth requirements.
Sincerely,
/s/ Michael Fasciano
MICHAEL FASCIANO
PORTFOLIO MANAGER
- --------------------------------------------------------------------------------
Average Annual Total Return(1)
Fasciano Portfolio Russell 2000(R)(2)
1 Year 11.96% 18.33%
Life of Fund 14.19% 21.33%
- --------------------------------------------------------------------------------
Inception Date 07/12/2002
Performance data quoted represent past performance, which is no guarantee of
future results. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed may be worth more or less
than their original cost. Results are shown on a "total return" basis and
include reinvestment of all dividends and capital gain distributions.
Current performance may be lower or higher than the performance data quoted. For
performance data current to the most recent month end, please visit www.nb.com/
performance.
Comparison of a $10,000 Investment
Fasciano
Portfolio Russell 2000 (R)
- ----------------------------------------------------------
7/12/2002 $ 10,000 $ 10,000
- ----------------------------------------------------------
9/30/2002 $ 9,760 $ 8,727
- ----------------------------------------------------------
12/31/2002 $ 9,920 $ 9,264
- ----------------------------------------------------------
3/31/2003 $ 9,030 $ 8,848
- ----------------------------------------------------------
6/30/2003 $ 10,670 $ 10,921
- ----------------------------------------------------------
9/30/2003 $ 11,000 $ 11,912
- ----------------------------------------------------------
12/31/2003 $ 12,406 $ 13,642
- ----------------------------------------------------------
3/31/2004 $ 12,746 $ 14,496
- ----------------------------------------------------------
6/30/2004 $ 13,097 $ 14,565
- ----------------------------------------------------------
9/30/2004 $ 12,937 $ 14,149
- ----------------------------------------------------------
12/31/2004 $ 13,890 $ 16,143
- ----------------------------------------------------------
The chart shows the value of a hypothetical $10,000 investment in the Fund over
the past 10 fiscal years, or since the Fund's inception, if it has not operated
for 10 years. The result is compared with benchmarks, which may include a
broad-based market index and/or a narrower index. Please note that market
indexes do not include expenses. All results include the reinvestment of
dividends and capital gain distributions. Results represent past performance and
do not indicate future results. The chart and table do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
Please see Endnotes for additional information.
- --------------------------------------------------------------------------------
Industry Diversification
(% of Industry Holdings)
Auto/Truck Replacement Parts ......... 1.4%
Banking & Financial .................. 1.7
Basic Materials ...................... 0.5
Biotechnology ........................ 0.9
Business Services .................... 4.9
Commercial Services .................. 3.9
Consumer Products & Services ......... 8.9
Distributor .......................... 4.6
Electrical & Electronics ............. 0.8
Entertainment ........................ 2.4
Filters .............................. 0.7
Financial Services ................... 6.2
Health Care .......................... 3.8
Health Products & Services ........... 9.3
Heavy Industry ....................... 1.3
Insurance ............................ 5.0
Internet ............................. 0.5
Machinery & Equipment ................ 4.7
Oil & Gas ............................ 3.7
Publishing & Broadcasting ............ 10.8
Real Estate .......................... 0.9
Restaurants .......................... 2.7
Retail ............................... 1.8
Semiconductors ....................... 0.6
Technology ........................... 0.7
Transportation ....................... 4.9
Waste Management ..................... 2.7
Short-Term Investments ............... 9.0
Cash, receivables and other assets,
less liabilities ................. 0.7
2
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Endnotes
- --------
1. 11.96% and 14.19% were the average annual total returns for
the 1-year and since inception (07/12/02) periods ended
December 31, 2004. Neuberger Berman Management Inc. ("NBMI")
has agreed to absorb certain expenses of the AMT Portfolios.
Without this arrangement, which is subject to change, the total
returns of the Portfolios would be less. Total return includes
reinvestment of dividends and capital gain distributions.
Performance data quoted represent past performance and the
investment return and principal value of an investment will
fluctuate so that the shares, when redeemed, may be worth more
or less than original cost. The performance information does
not reflect fees and expenses of the insurance companies.
2. The Russell 2000[RegTM] Index is an unmanaged index consisting
of securities of the 2,000 issuers having the smallest
capitalization in the Russell 3000[RegTM] Index (which measures
the performance of the 3,000 largest U.S. companies based on
total market capitalization), representing approximately 8% of
the Russell 3000 total market capitalization. The smallest
company's market capitalization is roughly $128 million. Please
note that indices do not take into account any fees and
expenses of investing in the individual securities that they
track, and that individuals cannot invest directly in any
index. Data about the performance of this index are prepared or
obtained by NBMI and include reinvestment of all dividends and
capital gain distributions. The Portfolio may invest in many
securities not included in the above-described index.
The investments for the Portfolio are managed by the same
portfolio manager(s) who manage one or more other mutual funds
that have similar names, investment objectives and investment
styles as the Portfolio. You should be aware that the Portfolio
is likely to differ from the other mutual funds in size, cash
flow pattern and tax matters. Accordingly, the holdings and
performance of the Portfolio can be expected to vary from those
of the other mutual funds.
The composition, industries and holdings of the Portfolio are
subject to change.
Shares of the separate Portfolios of Neuberger Berman Advisers
Management Trust are sold only through the currently effective
prospectus and are not available to the general public. Shares
of this Portfolio may be purchased only by life insurance
companies to be used with their separate accounts that fund
variable annuity and variable life insurance policies and by
qualified pension and retirement plans.
(C) 2005 Neuberger Berman Management Inc., distributor. All
rights reserved.
3
Information About Your Fund's Expenses
- --------------------------------------
This table is designed to provide information regarding costs related to your
investments. All mutual funds incur operating expenses, which include
management fees, administrative services and shareholder reports among others.
The following example is based on an investment of $1,000 made at the beginning
of the period shown and held for the entire period. The table illustrates the
fund's costs in two ways:
Actual Expenses: The first section of the table provides information about actual account
values and actual expenses in dollars. You may use the information in this line,
together with the amount you invested, to estimate the expenses you paid over the
period.
Hypothetical Example for Comparison Purposes: The second section of the table provides information about hypothetical account values
and hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return at 5% per year before expenses. This return is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate the
actual ending account balance or expenses you paid for the period. You may use this
information to compare the ongoing costs of investing in this Fund versus other funds.
To do so, compare this 5% hypothetical example with the 5% hypothetical examples
that appear in the shareholder reports of other funds.
Expense Information As of 12/31/04 (Unaudited)
- ----------------------------------------------
Neuberger Berman Advisers Management Trust Fasciano Portfolio
- -------------------------------------------------------------
Beginning Ending Expenses Paid
Actual Account Value Account Value During the Period*
Class S $1,000 $1,059.80 $7.20
Hypothetical (5% annual return before expenses)**
Class S $1,000 $1,018.15 $7.05
* Expenses are equal to the expense ratio for the class, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying
the number of days in the most recent half year divided by 366.
4
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Fasciano Portfolio
- ------------------------------------------
Number of Shares Market Value+
Common Stocks (90.3%)
Auto/Truck Replacement Parts (1.4%)
7,270 American Axle &
Manufacturing Holdings $ 222,898
Banking & Financial (1.7%)
5,450 Boston Private Financial
Holdings 153,526
2,060 Wintrust Financial 117,338
----------
270,864
Basic Materials (0.5%)
3,690 AMCOL International 74,132
Biotechnology (0.9%)
3,570 Techne Corp. 138,873*
Business Services (4.9%)
8,720 G & K Services 378,622
3,860 Ritchie Bros. Auctioneers 127,612
5,860 Rollins, Inc. 154,235
4,550 Watson Wyatt & Co. 122,623
----------
783,092
Commercial Services (3.9%)
5,850 Modine Manufacturing 197,554
13,240 OM Group 429,241*
----------
626,795
Consumer Products & Services (8.9%)
8,270 Blyth, Inc. 244,461
7,760 Central Parking 117,564
7,450 Plantronics, Inc. 308,952
7,470 Snap-on 256,669
12,540 Spartech Corp. 339,709
4,237 Tootsie Roll Industries 146,727
----------
1,414,082
Distributor (4.6%)
11,000 MSC Industrial Direct 395,780
5,520 ScanSource, Inc. 343,123*
----------
738,903
Electrical & Electronics (0.8%)
2,720 Daktronics, Inc. 67,701*
4,310 LoJack Corp. 52,280*
----------
119,981
Entertainment (2.4%)
7,390 International Speedway 390,192
Filters (0.7%)
2,040 CLARCOR Inc. 111,731
Financial Services (6.2%)
1,460 FactSet Research Systems 85,322
3,370 Financial Federal 132,104
2,450 Greater Bay Bancorp 68,306
10,700 HCC Insurance Holdings 354,384
4,080 ITLA Capital 239,863*
4,530 W.P. Stewart & Co. 107,180
----------
987,159
Number of Shares Market Value+
Health Care (3.8%)
8,050 Apria Healthcare Group $ 265,248*
4,920 Charles River Laboratories
International 226,369*
1,980 CUNO Inc. 117,612*
----------
609,229
Health Products & Services (9.3%)
24,380 Hooper Holmes 144,330
3,010 ICU Medical 82,293*L
13,510 K-V Pharmaceutical 297,896*
4,910 Landauer, Inc. 224,387
10,760 Priority Healthcare 234,245*
8,510 STERIS Corp. 201,857*
8,880 Young Innovations 299,522
----------
1,484,530
Heavy Industry (1.3%)
5,030 Chicago Bridge & Iron 201,200
Insurance (5.0%)
18,720 Assured Guaranty 368,222
6,560 Direct General 210,576
2,520 Hilb, Rogal and Hamilton 91,325
3,050 RLI Corp. 126,789
----------
796,912
Internet (0.5%)
2,270 j2 Global Communications 78,315*
Machinery & Equipment (4.7%)
7,850 IDEX Corp. 317,925
4,410 Lindsay Manufacturing 114,131
4,930 Regal-Beloit 140,998
7,250 Robbins & Myers 172,767
----------
745,821
Oil & Gas (3.7%)
1,300 Bill Barrett 41,587*
2,545 CARBO Ceramics 175,605
3,910 FMC Technologies 125,902*
5,340 Offshore Logistics 173,390*
2,030 Universal Compression
Holdings 70,867*
----------
587,351
Publishing & Broadcasting (10.8%)
2,530 Courier Corp. 131,358
15,980 Emmis Communications 306,656*
13,350 Journal Communications 241,235
14,140 Journal Register 273,326*
4,160 Lee Enterprises 191,693
5,230 Meredith Corp. 283,466
4,430 Pulitzer Inc. 287,285
----------
1,715,019
Real Estate (0.9%)
1,020 Beazer Homes USA 149,134L
See Notes to Schedule of Investments 5
Schedule of Investments Fasciano Portfolio cont'd
- -------------------------------------------------
Number of Shares Market Value+
Restaurants (2.7%)
6,890 Ruby Tuesday $ 179,691
12,620 Steak n Shake 253,410*
-----------
433,101
Retail (1.8%)
3,790 Christopher & Banks 69,925
4,740 Regis Corp. 218,751
-----------
288,676
Semiconductors (0.6%)
2,310 Cabot Microelectronics 92,516*
Technology (0.7%)
9,210 Methode Electronics 118,349
Transportation (4.9%)
7,565 Heartland Express 169,986
8,300 Landstar System 611,212*
-----------
781,198
Waste Management (2.7%)
5,730 Stericycle, Inc. 263,293*
4,875 Waste Connections 166,969*
-----------
430,262
Total Common Stocks
(Cost $12,343,761) 14,390,315
-----------
Number of Shares Market Value+
Short-Term Investments (9.0%)
$ 211,800 N&B Securities Lending
Quality Fund, LLC $ 211,800++
1,217,013 Neuberger Berman Prime
Money Fund Trust Class 1,217,013@
-----------
Total Short-Term Investments
(Cost $1,428,813) 1,428,813#
-----------
Total Investments (99.3%)
(Cost $13,772,574) 15,819,128##
Cash, receivables and
other assets, less liabilities (0.7%) 111,653
-----------
Total Net Assets (100.0%) $15,930,781
-----------
See Notes to Schedule of Investments 6
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Schedule of Investments Fasciano Portfolio
- ---------------------------------------------------
+ Investments in equity securities by Neuberger Berman Advisers Management
Trust Fasciano Portfolio (the "Fund") are valued at the latest sale price
where that price is readily available; securities for which no sales were
reported, unless otherwise noted, are valued at the mean between the closing
bid and asked prices. Securities traded primarily on the NASDAQ Stock Market
are normally valued by the Fund at the NASDAQ Official Closing Price
("NOCP") provided by NASDAQ each business day. The NOCP is the most recently
reported price as of 4:00:02 p.m., Eastern time, unless that price is
outside the range of the "inside" bid and asked prices (i.e., the bid and
asked prices that dealers quote to each other when trading for their own
accounts); in that case, NASDAQ will adjust the price to equal the inside
bid or asked price, whichever is closer. Because of delays in reporting
trades, the NOCP may not be based on the price of the last trade to occur
before the market closes. The Fund values all other securities by a method
the Board of Trustees of Neuberger Berman Advisers Management Trust (the
"Board") believes accurately reflects fair value. Numerous factors may be
considered when determining the fair value of a security, including
available analyst, media or other reports, trading in futures or ADRs and
whether the issuer of the security being fair valued has other securities
outstanding. Foreign security prices are furnished by independent quotation
services and expressed in local currency values. Foreign security prices are
translated from the local currency into U.S. dollars using the exchange rate
as of 12:00 noon, Eastern time. The Board has approved the use of FT
Interactive Data Corporation ("FT Interactive") to assist in determining the
fair value of the Fund's foreign equity securities in the wake of certain
significant events. When changes in the value of a certain index suggest
that the closing prices on the foreign exchanges may no longer represent the
amount that the Fund could expect to receive for those securities, FT
Interactive will provide adjusted prices for certain foreign equity
securities based on an analysis showing historical correlations between the
prices of those securities and changes in the index. In the absence of
precise information about the market values of these foreign securities as
of the close of the New York Stock Exchange, the Board has determined on the
basis of available data that prices adjusted in this way are likely to be
closer to the prices the Fund could realize on a current sale than are the
prices of those securities established at the close of the foreign markets
in which the securities primarily trade. However, fair value prices are
necessarily estimates, and there is no assurance that such a price will be
at or close to the price at which the security next trades. Short-term debt
securities with less than 60 days until maturity may be valued at cost
which, when combined with interest earned, approximates market value.
# At cost, which approximates market value.
## At December 31, 2004, the cost of investments for U.S. Federal income tax
purposes was $13,813,281. Gross unrealized appreciation of investments was
$2,045,432 and gross unrealized depreciation of investments was $39,585,
resulting in net unrealized appreciation of $2,005,847, based on cost for
U.S. Federal income tax purposes.
* Non-income producing security.
L All or a portion of this security is on loan (see Note A of Notes to
Financial Statements).
@ Neuberger Berman Prime Money Fund ("Prime Money") is also managed by
Neuberger Berman Management Inc. (see Notes A & F of Notes to Financial
Statements) and may be considered an affiliate since it has the same
officers, Board members, and investment manager as the Fund and because, at
times, the Fund may own 5% or more of the outstanding voting securities of
Prime Money.
++ The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans. The Fund's shares in the
Quality Fund are non-voting. However, because all shares of the Quality Fund
are held by funds in the related investment management complex, the Quality
Fund may be considered an affiliate of the Fund (see Notes A & F of Notes to
Financial Statements).
See Notes to Financial Statements 7
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Assets and Liabilities
- -----------------------------------
Fasciano
Neuberger Berman Advisers Management Trust Portfolio
Assets
Investments in securities, at market value*+ (Notes A & F)-see Schedule of Investments:
=========================================================================================================
Unaffiliated issuers $14,390,315
- ---------------------------------------------------------------------------------------------------------
Affiliated issuers 1,428,813
- ---------------------------------------------------------------------------------------------------------
15,819,128
=========================================================================================================
Dividends and interest receivable 8,308
- ---------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 366,714
=========================================================================================================
Receivable from administrator-net (Note B) 4,066
- ---------------------------------------------------------------------------------------------------------
Prepaid expenses and other assets 219
- ---------------------------------------------------------------------------------------------------------
Total Assets 16,198,435
- ---------------------------------------------------------------------------------------------------------
Liabilities
Due to custodian 45
=========================================================================================================
Payable for collateral on securities loaned (Note A) 211,800
- ---------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 436
=========================================================================================================
Payable to investment manager-net (Notes A & B) 10,175
- ---------------------------------------------------------------------------------------------------------
Accrued expenses and other payables 45,198
- ---------------------------------------------------------------------------------------------------------
Total Liabilities 267,654
- ---------------------------------------------------------------------------------------------------------
Net Assets at value $15,930,781
- ---------------------------------------------------------------------------------------------------------
Net Assets consist of:
Paid-in capital $13,842,869
=========================================================================================================
Accumulated net realized gains (losses) on investments 41,358
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) in value of investments 2,046,554
- ---------------------------------------------------------------------------------------------------------
Net Assets at value $15,930,781
- ---------------------------------------------------------------------------------------------------------
Shares Outstanding ($.001 par value; unlimited shares authorized) 1,151,292
- ---------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share $ 13.84
- ---------------------------------------------------------------------------------------------------------
+Securities on loan, at market value:
Unaffiliated issuers $ 206,358
======================================================================================================
*Cost of investments:
Unaffiliated issuers $12,343,761
======================================================================================================
Affiliated issuers 1,428,813
------------------------------------------------------------------------------------------------------
Total cost of investments $13,772,574
- ---------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 8
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST FOR THE YEAR ENDED DECEMBER 31, 2004
Statement of Operations
- -----------------------
Fasciano
Neuberger Berman Advisers Management Trust Portfolio
Investment Income
Income (Note A):
Dividend income-unaffiliated issuers $ 60,841
=========================================================================================================
Income from securities loaned-affiliated issuer (Note F) 1,336
- ---------------------------------------------------------------------------------------------------------
Income from investments in affiliated issuers (Note F) 13,146
=========================================================================================================
Foreign taxes withheld (166)
- ---------------------------------------------------------------------------------------------------------
Total income 75,157
- ---------------------------------------------------------------------------------------------------------
Expenses:
Investment management fee (Notes A & B) 79,762
=========================================================================================================
Administration fee (Note B) 28,152
- ---------------------------------------------------------------------------------------------------------
Distribution fees (Note B) 23,460
=========================================================================================================
Audit fees 38,310
- ---------------------------------------------------------------------------------------------------------
Custodian fees (Note B) 30,106
=========================================================================================================
Insurance expense 168
- ---------------------------------------------------------------------------------------------------------
Legal fees 1,092
=========================================================================================================
Shareholder reports 13,943
- ---------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 24,830
=========================================================================================================
Miscellaneous 1,501
- ---------------------------------------------------------------------------------------------------------
Total expenses 241,324
Expenses reimbursed by administrator (Note B) (108,225)
Investment management fee waived (Note A) (1,116)
Expenses reduced by custodian fee expense offset and commission recapture arrangements (897)
(Note B)
- ---------------------------------------------------------------------------------------------------------
Total net expenses 131,086
- ---------------------------------------------------------------------------------------------------------
Net investment income (loss) (55,929)
- ---------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers 138,488
======================================================================================================
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities 1,210,790
------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 1,349,278
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $1,293,349
=========================================================================================================
See Notes to Financial Statements 9
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Changes in Net Assets
Fasciano Portfolio
---------------------------------
Neuberger Berman Advisers Management Trust Year Ended December 31,
2004 2003
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss) $ (55,929) $ (20,088)
=========================================================================================================
Net realized gain (loss) on investments 138,488 15,201
- ---------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments 1,210,790 836,449
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 1,293,349 831,562
- ---------------------------------------------------------------------------------------------------------
Distributions to Shareholders From:
Net realized gain on investments (36,107) (2,283)
- ---------------------------------------------------------------------------------------------------------
From Fund Share Transactions (Note D):
Proceeds from shares sold 12,465,780 9,153,720
=========================================================================================================
Proceeds from reinvestment of dividends and distributions 36,107 2,283
- ---------------------------------------------------------------------------------------------------------
Payments for shares redeemed (4,020,120) (4,265,714)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) from Fund share transactions 8,481,767 4,890,289
- ---------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 9,739,009 5,719,568
Net Assets:
Beginning of year 6,191,772 472,204
- ---------------------------------------------------------------------------------------------------------
End of year $15,930,781 $ 6,191,772
- ---------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) at end of year $ -- $ --
=========================================================================================================
See Notes to Financial Statements 10
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Financial Statements Fasciano Portfolio
- ------------------------------------------------
Note A--Summary of Significant Accounting Policies:
1 General: Fasciano Portfolio (the "Fund") is a separate operating series of
Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware
statutory trust organized pursuant to a Trust Instrument dated May 23,
1994. The Trust is currently comprised of eleven separate operating series
(each a "Series," collectively, the "Funds") each of which (except Focus
Portfolio) is diversified. The Trust is registered as an open-end
management investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"), and its shares are registered under the
Securities Act of 1933, as amended. The Fund currently offers only Class S
shares. The Board of Trustees of the Trust (the "Board") may establish
additional series or classes of shares without the approval of
shareholders.
The assets of each Series belong only to that Series, and the liabilities
of each Series are borne solely by that Series and no other.
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires Neuberger Berman Management Inc.
("Management") to make estimates and assumptions at the date of the
financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the
notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars using the exchange rate as of 12:00 noon, Eastern time, to
determine the value of investments, other assets and liabilities. Purchase
and sale prices of securities, and income and expenses, are translated into
U.S. dollars at the prevailing rate of exchange on the respective dates of
such transactions. Net unrealized foreign currency gain (loss) arises from
changes in the value of assets and liabilities, other than investments in
securities, as a result of changes in exchange rates and is stated
separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the Fund
becomes aware of the dividends. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, including accretion of original issue discount,
where applicable, and accretion of discount on short-term investments, is
recorded on the accrual basis. Realized gains and losses from securities
transactions and foreign currency transactions, if any, are recorded on the
basis of identified cost and stated separately in the Statement of
Operations.
5 Income tax information: The Funds are treated as separate entities for U.S.
Federal income tax purposes. It is the policy of the Fund to continue to
qualify as a regulated investment company by complying with the
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all of its
earnings to its shareholders. Therefore, no Federal income or excise tax
provision is required.
11
Notes to Financial Statements Fasciano Portfolio cont'd
- -------------------------------------------------------
Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities
held by the Fund, timing differences and differing characterization of
distributions made by the Fund as a whole. The Fund may also utilize
earnings and profits distributed to shareholders on redemption of shares as
a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2004, permanent differences resulting
primarily from different book and tax accounting for net operating losses
were reclassified at year end. These reclassifications had no effect on net
income, net assets or net assets per share of the Fund.
The tax character of distributions paid during the years ended December 31,
2004 and December 31, 2003 were as follows:
Distributions Paid From:
Ordinary Income Long-Term Capital Gain Total
2004 2003 2004 2003 2004 2003
$4,205 $2,283 $31,902 $ -- $36,107 $2,283
As of December 31, 2004, the components of distributable earnings
(accumulated losses) on a U.S. Federal income tax basis were as follows:
Undistributed Unrealized Loss
Undistributed Long-Term Appreciation Carryforwards
Ordinary Income Gain (Depreciation) and Deferrals Total
$44,290 $40,383 $2,005,847 $(2,608) $2,087,912
The difference between book basis and tax basis distributable earnings is
attributable primarily to timing differences of wash sales and post-October
losses.
Under current tax law, certain net capital and net foreign currency losses
realized after October 31 within the taxable year may be deferred and
treated as occurring on the first day of the following tax year. For the
year ended December 31, 2004, the Fund elected to defer $2,608 of net
capital losses arising between November 1, 2004 and December 31, 2004.
To the extent the Fund's net realized capital gains, if any, can be offset
by capital loss carryforwards, it is the policy of the Fund not to
distribute such gains.
6 Dividends and distributions to shareholders: The Fund may earn income, net
of expenses, daily on its investments. Income dividends and distributions
from net realized capital gains, if any, generally are distributed in
October. Income dividends and capital gain distributions to shareholders
are recorded on the ex-dividend date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds.
Expenses directly attributable to a Series are charged to that Series.
Expenses of the Trust that are not directly attributed to a Series are
allocated among the Funds, on the basis of relative net assets, except
where a more appropriate allocation
12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
of expenses to each of the Funds can otherwise be made fairly. Expenses
borne by the complex of related investment companies, which includes
open-end and closed-end investment companies for which Management serves as
investment manager, that are not directly attributed to a Series or the
Trust, are allocated among the Fund and the other investment companies in
the complex or series thereof, on the basis of relative net assets, except
where a more appropriate allocation of expenses to each investment company
in the complex or series thereof can otherwise be made fairly.
9 Security lending: Pursuant to an Exemptive Order issued by the Securities
and Exchange Commission, the Fund entered into a Securities Lending
Agreement ("Agreement") with Neuberger Berman, LLC ("Neuberger") on April
17, 2003. Securities loans involve certain risks in the event a borrower
should fail financially, including delays or inability to recover the lent
securities or foreclose against the collateral. The investment manager,
under the general supervision of the Board, monitors the creditworthiness
of the parties to whom the Fund makes security loans. The Fund will not
lend securities on which covered call options have been written, or lend
securities on terms which would prevent the Fund from qualifying as a
regulated investment company. The Fund receives cash collateral equal to at
least 102% of the current market value of the loaned securities. The Fund
invests the cash collateral in the N&B Securities Lending Quality Fund, LLC
("Quality Fund"), which is managed by State Street Bank and Trust Company
("State Street") pursuant to guidelines approved by the Trust's investment
manager. Neuberger guaranteed a certain amount of revenue to the Fund under
the Agreement, and received a portion of any revenue earned in excess of
the guaranteed amount as a lending agency fee.
The Agreement has been renewed and approved by the Board as of July 1, 2004
with substantially the same terms. Under this current Agreement, Neuberger
guarantees a certain amount of revenue to the Fund and receives any revenue
earned in excess of the guaranteed amount as a lending agency fee. For the
year ended December 31, 2004, Neuberger received $32 under the Agreement.
Income earned on the securities loaned, if any, is reflected in the
Statement of Operations under the caption Income from securities
loaned-affiliated issuer.
In February of 2005, it is likely that the Fund will change the collateral
investment vehicle from the Quality Fund, managed by State Street, to a
fund managed by Lincoln Capital, an affiliate, as approved by the Board.
10 Transactions with other funds managed by Neuberger Berman Management Inc.:
Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the Fund may invest in the Neuberger Berman Institutional Cash
Fund (the "Cash Fund") and the Neuberger Berman Prime Money Fund ("Prime
Money"), affiliated funds, which are managed by Management and have the
same Board members as the Fund. The Cash Fund and Prime Money each seeks to
provide as high a level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. For any cash that
the Fund invests in the Cash Fund or Prime Money, Management waives a
portion of its management fee equal to the management fee it receives from
the Cash Fund or Prime Money on those assets. For the year ended December
31, 2004, management fees waived amounted to $1,094 and $22 for the Cash
Fund and Prime Money, respectively. For the year ended December 31, 2004,
income earned on the investments of the Cash Fund and Prime Money amounted
to $12,617 and $529, respectively, and is reflected in the Statement of
Operations under the caption Income from investments in affiliated issuers.
13
Notes to Financial Statements Fasciano Portfolio cont'd
- -------------------------------------------------------
11 Indemnifications: Like many other companies, the Trust's organizational
documents provide that its officers and trustees are indemnified against
certain liabilities arising out of the performance of their duties to the
Trust. In addition, both in some of its principal service contracts and in
the normal course of its business, the Trust enters into contracts that
provide indemnifications to other parties for certain types of losses or
liabilities. The Trust's maximum exposure under these arrangements is
unknown as this could involve future claims against the Trust.
Note B--Management Fees, Administration Fees, Distribution Arrangements,
and Other Transactions With Affiliates:
Fund shares are issued and redeemed in connection with investments in and
payments under certain variable annuity contracts and variable life
insurance policies issued through separate accounts of life insurance
companies and are also offered directly to qualified pension and retirement
plans.
The Fund retains Management as its investment manager under a Management
Agreement. For such investment management services, the Fund pays
Management a fee at the annual rate of 0.85% of the first $500 million of
the Fund's average daily net assets, 0.825% of the next $500 million, 0.80%
of the next $500 million, 0.775% of the next $500 million, 0.75% of the
next $500 million, and 0.725% of average daily net assets in excess of $2.5
billion.
The Fund retains Management as its administrator under an Administration
Agreement. The Fund pays Management an administration fee at the annual
rate of 0.30% of its average daily net assets under this agreement.
Additionally, Management retains State Street as its sub-administrator
under a Sub-Administration Agreement. Management pays State Street a fee
for all services received under this agreement.
Management acts as agent in arranging for the sale of Fund shares without
commission and bears advertising and promotion expenses. The Board has
adopted a distribution plan (the "Plan") with respect to the Fund, pursuant
to Rule 12b-1 under the 1940 Act. The Plan provides that, as compensation
for administrative and other services provided to the Fund, Management's
activities and expenses related to the sale and distribution of the Fund's
shares, and ongoing services provided to investors in the Fund, Management
receives from the Fund a fee at the annual rate of 0.25% of the Fund's
average daily net assets. Management receives this amount to provide
distribution and shareholder servicing for the Fund and pays a portion of
it to institutions that provide such services. Those institutions may use
the payments for, among other purposes, compensating employees engaged in
sales and/or shareholder servicing. The amount of fees paid by the Fund
during any year may be more or less than the cost of distribution and other
services provided to the Fund. NASD rules limit the amount of annual
distribution fees that may be paid by a mutual fund and impose a ceiling on
the cumulative distribution fees paid. The Trust's Plan complies with those
rules.
Management has contractually undertaken through December 31, 2008 to
reimburse the Fund for its operating expenses (including the fees payable
to Management but excluding interest, taxes, brokerage commissions,
extraordinary expenses, and transaction costs) ("Operating Expenses") which
exceed, in the
14
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
aggregate, 1.40% per annum of the Fund's average daily net assets (the
"Expense Limitation"). For the year ended December 31, 2004, such excess
expenses amounted to $108,225. The Fund has agreed to repay Management
through December 31, 2011 for its excess Operating Expenses previously
reimbursed by Management, so long as its annual Operating Expenses during
that period do not exceed its Expense Limitation, and the repayment is made
within three years after the year in which Management issued the
reimbursement. During the year ended December 31, 2004, there was no
reimbursement to Management under this agreement. At December 31, 2004,
contingent liabilities to Management under this agreement were as follows:
Expiring in
2005 2006 2007 Total
$44,573 $92,031 $108,225 $244,829
On October 31, 2003, Management and Neuberger, a member firm of the New
York Stock Exchange and sub-adviser to the Fund, became indirect
wholly-owned subsidiaries of Lehman Brothers Holdings Inc. ("Lehman"), a
publicly-owned holding company. Neuberger is retained by Management to
furnish it with investment recommendations and research information without
added cost to the Fund. Several individuals who are officers and/or
Trustees of the Trust are also employees of Neuberger and/or Management.
On July 1, 2003, the Fund entered into a commission recapture program,
which enables it to pay some of its operational expenses by recouping a
portion of the commissions it pays to a broker that is not a related party
of the Fund. Expenses paid through this program may include costs of
custodial, transfer agency or accounting services. For the year ended
December 31, 2004, the impact of this arrangement was a reduction of
expenses of $890.
The Fund has an expense offset arrangement in connection with its custodian
contract. For the year ended December 31, 2004, the impact of this
arrangement was a reduction of expenses of $7.
Note C--Securities Transactions:
During the year ended December 31, 2004, there were purchase and sale
transactions (excluding short-term securities) of $8,267,751 and $853,577,
respectively.
During the year ended December 31, 2004, brokerage commissions on
securities transactions amounted to $11,401, of which Neuberger received
$10, Lehman received $2,306, and other brokers received $9,085.
15
Notes to Financial Statements Fasciano Portfolio cont'd
- -------------------------------------------------------
Note D--Fund Share Transactions:
Share activity for the years ended December 31, 2004 and December 31, 2003
was as follows:
For the Year Ended December 31,
2004 2003
Shares Sold 964,058 830,800
Shares Issued on Reinvestment of
Dividends and Distributions 2,821 198
Shares Redeemed (315,110) (379,061)
-------- --------
Total 651,769 451,937
-------- --------
Note E--Line of Credit:
At December 31, 2004, the Fund was a participant in a single committed,
unsecured $150,000,000 line of credit with State Street, to be used only
for temporary or emergency purposes. Interest is charged on borrowings
under this agreement at the overnight Federal Funds Rate plus 0.50% per
annum. A facility fee of 0.10% per annum of the available line of credit is
charged, of which the Fund has agreed to pay its pro rata share, based on
the ratio of its individual net assets to the net assets of all
participants at the time the fee is due and payable. The fee is paid
quarterly in arrears. No compensating balance is required. Other investment
companies managed by Management also participate in this line of credit on
the same terms. Because several investment companies participate, there is
no assurance that the Fund will have access to all or any part of the
$150,000,000 at any particular time. The Fund had no loans outstanding
pursuant to this line of credit at December 31, 2004, nor had the Fund
utilized this line of credit at any time prior to that date.
16
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Note F--Investments in Affiliates*:
Income from
Balance of Balance of Investments
Shares Gross Shares in Affiliated
Held Gross Sales Held Value Issuers
December 31, Purchases and December 31, December 31, Included in
Name of Issuer 2003 and Additions Reductions 2004 2004 Total Income
N&B Securities Lending
Quality Fund, LLC** -- 10,760,900 10,549,100 211,800 $211,800 $1,336
Neuberger Berman
Institutional Cash Fund
Trust Class*** 885,798 9,897,926 10,783,724 -- -- 12,617
Neuberger Berman Prime
Money Fund Trust
Class*** -- 2,746,135 1,529,122 1,217,013 1,217,013 529
---------- -------
Total $1,428,813 $14,482
========== =======
* Affiliated issuers, as defined in the 1940 Act, include issuers in which
the Fund held 5% or more of the outstanding voting securities.
** The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans. The Fund's shares in the
Quality Fund are non-voting. However, because all shares of the Quality
Fund are held by funds in the related investment management complex, the
Quality Fund may be considered an affiliate of the Fund.
*** Neuberger Berman Institutional Cash Fund (the "Cash Fund") and Neuberger
Berman Prime Money Fund ("Prime Money") are also managed by Neuberger
Berman Management Inc. and may be considered affiliates since they have the
same officers, Board members, and investment manager as the Fund and
because, at times, the Fund may own 5% or more of the outstanding voting
securities of the Cash Fund or Prime Money, respectively.
17
Financial Highlights Fasciano Portfolio
- ---------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived
from the Financial Statements.++
Period from
July 12,
2002^
Year Ended December 31, to December 31,
--------------------- -----------
2004 2003 2002
Net Asset Value, Beginning of Period $ 12.40 $ 9.92 $10.00
-------- ------ ------
Income From Investment Operations:
Net Investment Income (Loss) (.08) (.08) (.01)
Net Gains or Losses on Securities (both realized and unrealized) 1.56 2.57 (.07)
-------- ------ ------
Total From Investment Operations 1.48 2.49 (.08)
-------- ------ ------
Less Distributions From:
Net Capital Gains (.04) (.01) --
-------- ------ ------
Net Asset Value, End of Period $ 13.84 $12.40 $ 9.92
-------- ------ ------
Total Return++ +11.96% +25.06% -0.80%**
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 15.9 $ 6.2 $ 0.5
Ratio of Gross Expenses to Average Net Assets# 1.41% 1.42% 1.40%*
Ratio of Net Expenses to Average Net Assets[sec] 1.40% 1.40% 1.40%*
Ratio of Net Investment Income (Loss) to Average Net Assets (.60)% (.69)% (.31)%*
Portfolio Turnover Rate 10% 70% 20%
See Notes to Financial Highlights 18
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Financial Highlights Fasciano Portfolio
- ------------------------------------------------
++ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each
fiscal period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee future
results. Current returns may be lower or higher than the performance data
quoted. Investment returns and principal may fluctuate and shares when
redeemed may be worth more or less than original cost. Total return would
have been lower if Management had not reimbursed and/or waived certain
expenses. The total return information shown does not reflect charges and
other expenses that apply to the separate account or the related insurance
policies, and the inclusion of these charges and other expenses would
reduce the total return for all fiscal periods shown. Performance data
current to the most recent month-end are available at www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
[sec] After reimbursement of expenses by the administrator. Had the
administrator not undertaken such action, the annualized ratio of net
expenses to average daily net assets would have been:
Period from
July 12, 2002 to
December 31,
2002
38.27%
After waiver of a portion of the investment management fee, and
reimbursement of expenses by the administrator. Had Management not
undertaken such actions, the annualized ratios of net expenses to average
daily net assets would have been:
Year Ended December 31,
2004 2003
2.56% 4.58%
^ The date investment operations commenced.
++ The per share amounts which are shown have been computed based on the
average number of shares outstanding during each fiscal period.
* Annualized.
** Not annualized.
19
Report of Independent Registered Public Accounting Firm
- -------------------------------------------------------
To the Board of Trustees of
Neuberger Berman Advisers Management Trust and
Shareholders of Fasciano Portfolio
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Fasciano Portfolio, one of the series
constituting the Neuberger Berman Advisers Management Trust (the "Trust"), as
of December 31, 2004, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights. Our procedures included confirmation of securities owned as of
December 31, 2004, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Fasciano Portfolio of Neuberger Berman Advisers Management Trust at December
31, 2004, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended and its
financial highlights for the periods indicated therein, in conformity with U.S.
generally accepted accounting principles.
/s/ Ernst & Young
Boston, Massachusetts
February 4, 2005
20
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Trustees and Officers (Unaudited)
- ---------------------------------
The following tables set forth information concerning the trustees and officers
of the Trust. All persons named as trustees and officers also serve in similar
capacities for other funds administered or managed by NB Management and
Neuberger Berman. The Statement of Additional Information includes additional
information about fund trustees and is available upon request, without charge,
by calling (800) 877-9700.
Information about the Board of Trustees
- ------------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
John Cannon (74) Trustee since Consultant. Formerly, 41 Independent Trustee or Director of
2000 Chairman, CDC Investment three series of Oppenheimer Funds:
Advisers (registered investment Limited Term New York Municipal
adviser) 1993 to January 1999; Fund, Rochester Fund Municipals,
formerly, President and Chief and Oppenheimer Convertible
Executive Officer, AMA Securities Fund, since 1992.
Investment Advisors, an affiliate
of the American Medical
Association.
- ------------------------------------------------------------------------------------------------------------------------------------
Faith Colish (69) Trustee since Counsel, Carter Ledyard & 41 Director, American Bar Retirement
1984 Millburn LLP (law firm) since Association (ABRA) since 1997
October 2002; formerly, (not-for-profit membership
Attorney-at-Law and President, association).
Faith Colish, A Professional
Corporation, 1980 to 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) Trustee since Consultant; Retired President 41 None.
1989 and Trustee, Teachers Insurance
& Annuity (TIAA) and College
Retirement Equities Fund
(CREF).
- ------------------------------------------------------------------------------------------------------------------------------------
C. Anne Harvey (67) Trustee since Consultant, C. A. Harvey 41 President, Board of Associates to
1998 Associates, since June 2001; The National Rehabilitation
formerly, Director, AARP, 1978 Hospital's Board of Directors since
to December 2001. 2002; formerly, Member, Individual
Investors Advisory Committee to the
New York Stock Exchange Board
of Directors, 1998 to June 2002;
formerly, Member, American
Savings Education Council's Policy
Board (ASEC), 1998 to 2000;
formerly, Member, Executive
Committee, Crime Prevention
Coalition of America, 1997 to 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
21
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Barry Hirsch (71) Trustee since Attorney-at-Law. Formerly, 41 None.
2000 Senior Counsel, Loews
Corporation (diversified
financial corporation) May 2002
until April 2003; formerly,
Senior Vice President, Secretary
and General Counsel,
Loews Corporation.
- ------------------------------------------------------------------------------------------------------------------------------------
Robert A. Kavesh (77) Trustee since Marcus Nadler Professor 41 Director, DEL Laboratories, Inc.
2000 Emeritus of Finance and (cosmetics and pharmaceuticals)
Economics, New York since 1978; Director, The Caring
University Stern School Community (not-for-profit).
of Business.
- ------------------------------------------------------------------------------------------------------------------------------------
Howard A. Mileaf (67) Trustee since Retired. Formerly, Vice 41 Director, WHX Corporation
1999 President and Special Counsel, (holding company) since August
WHX Corporation (holding 2002; Director, Webfinancial
company) 1993 to 2001. Corporation (holding company)
since December 2002; Director, State
Theatre of New Jersey (not-for-
profit theater) since 2000; formerly,
Director, Kevlin Corporation
(manufacturer of microwave and
other products).
- ------------------------------------------------------------------------------------------------------------------------------------
William E. Rulon (72) Trustee since Retired. Formerly, Senior Vice 41 Director, Pro-Kids Golf and
2000 President, Foodmaker, Inc. Learning Academy (teach golf and
(operator and franchiser of computer usage to "at risk" children)
restaurants) until January 1997. since 1998; formerly, Director,
Prandium, Inc. (restaurants) from
March 2001 until July 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
Cornelius T. Ryan (73) Trustee since Founding General Partner, 41 Director, Capital Cash Management
2000 Oxford Partners and Oxford Trust (money market fund),
Bioscience Partners (venture Naragansett Insured Tax-Free
capital partnerships) and Income Fund, Rocky Mountain
President, Oxford Venture Equity Fund, Prime Cash Fund,
Corporation. several private companies and
QuadraMed Corporation
(NASDAQ).
- ------------------------------------------------------------------------------------------------------------------------------------
22
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Tom D. Seip (54) Trustee since General Partner, Seip 41 Director, H&R Block, Inc. (financial
2000 Investments LP (a private services company) since May 2001;
investment partnership); Director, Forward Management, Inc.
formerly, President and CEO, (asset management) since 2001;
Westaff, Inc. (temporary formerly, Director, General Magic
staffing), May 2001 to January (voice recognition software) 2001
2002; Senior Executive at the until 2002; formerly, Director,
Charles Schwab Corporation E-Finance Corporation (credit
from 1983 to 1999, including decisioning services) 1999 to 2003;
Chief Executive Officer, formerly, Director, Save-Daily.com
Charles Schwab Investment (micro investing services) 1999 to
Management, Inc. and Trustee, 2003; Director, Offroad Capital Inc.
Schwab Family of Funds and (pre-public internet commerce
Schwab Investments from company).
1997 to 1998 and Executive
Vice President-Retail
Brokerage, Charles Schwab
Investment Management from
1994 to 1997.
- ------------------------------------------------------------------------------------------------------------------------------------
Candace L. Straight (57) Trustee since Private investor and consultant 41 Director, The Proformance Insurance
1999 specializing in the insurance Company (personal lines property
industry; formerly, Advisory and casualty insurance company)
Director, Securitas Capital since March 2004; Director,
LLC (a global private equity Providence Washington (property
investment firm dedicated to and casualty insurance company)
making investments in the since December 1998; Director,
insurance sector) 1998 to Summit Global Partners (insurance
December 2002. brokerage firm) since October 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Peter P. Trapp (60) Trustee since Regional Manager for Atlanta 41 None.
1984 Region, Ford Motor Credit
Company since August 1997;
formerly, President, Ford Life
Insurance Company, April 1995
to August 1997.
- ------------------------------------------------------------------------------------------------------------------------------------
23
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Number of
Trustees who are Portfolios in
"Interested Persons" Position and Fund Complex
Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Edward I. O'Brien* (76) Trustee since Formerly, Member, Investment 41 Director, Legg Mason, Inc. (financial
2000 Policy Committee, Edward services holding company) since
Jones 1993 to 2001; President, 1993; formerly, Director, Boston
Securities Industry Association Financial Group (real estate and tax
("SIA") (securities industry's shelters) 1993 to 1999.
representative in government
relations and regulatory
matters at the federal and state
levels) 1974 to 1992; Adviser to
SIA, November 1992 to
November 1993.
- ------------------------------------------------------------------------------------------------------------------------------------
Jack L. Rivkin* (64) President and Executive Vice President and 41 Director, Dale Carnegie and
Trustee since Chief Investment Officer, Associates, Inc. (private company)
December Neuberger Berman Inc. since 1998; Director, Emagin Corp.
2002 (holding company) since 2002 (public company) since 1997;
and 2003, respectively; Director, Solbright, Inc. (private
Executive Vice President and company) since 1998; Director,
Chief Investment Officer, Infogate, Inc. (private company)
Neuberger Berman since since 1997; Director, Broadway
December 2002 and 2003, Television Network (private
respectively; Director and company) since 2000.
Chairman, NB Management
since December 2002; formerly,
Executive Vice President,
Citigroup Investments, Inc.
from September 1995 to
February 2002; formerly,
Executive Vice President,
Citigroup Inc. from September
1995 to February 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
24
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Number of
Trustees who are Portfolios in
"Interested Persons" Position and Fund Complex
Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Peter E. Sundman* (45) Chairman of Executive Vice President, 41 Director and Vice President,
the Board, Neuberger Berman Inc. Neuberger & Berman Agency, Inc.
Chief (holding company) since 1999; since 2000; formerly, Director,
Executive Head of Neuberger Berman Neuberger Berman Inc. (holding
Officer and Inc.'s Mutual Funds and company) from October 1999
Trustee Institutional Business since through March 2003; Trustee,
since 2000 1999; President and Director, Frost Valley YMCA.
President NB Management since 1999;
and Chief Executive Vice President,
Executive Neuberger Berman since 1999;
Officer from formerly, Principal, Neuberger
1999 to 2000 Berman from 1997 until 1999;
formerly, Senior Vice President,
NB Management from 1996
until 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the Trust's Trust Instrument, each Trustee shall hold office
for life or until his or her successor is elected or the Trust terminates;
except that (a) any Trustee may resign by delivering a written resignation;
(b) any Trustee may be removed with or without cause at any time by a
written instrument signed by at least two-thirds of the other Trustees; (c)
any Trustee who requests to be retired, or who has become unable to serve,
may be retired by a written instrument signed by a majority of the other
Trustees; and (d) any Trustee may be removed at any shareholder meeting by
a vote of at least two-thirds of the outstanding shares.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
(4) Retired (effective the close of business December 31, 2004).
* Indicates a trustee who is an "interested person" within the meaning of the
1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of the Trust by
virtue of the fact that they are officers and/or directors of NB Management
and Executive Vice Presidents of Neuberger Berman. Mr. O'Brien is an
interested person of the Trust by virtue of the fact that he is a director
of Legg Mason, Inc., a wholly owned subsidiary of which, from time to time,
serves as a broker or dealer to the Funds and other funds for which NB
Management serves as investment manager.
25
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Information about the Officers of the Trust
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- ------------------------------------------------------------------------------------------------------------------------------------
Claudia A. Brandon (48) Secretary since 1985 Vice President-Mutual Fund Board Relations,
NB Management since 2000; Vice President, Neuberger
Berman since 2002 and employee since 1999; formerly,
Vice President, NB Management from 1986 to 1999;
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (four since 2002, three since 2003, and four
since 2004).
Philip R. Carroll (70) Chief Compliance Officer Vice President, Neuberger Berman since 2002; Associate
since 2004 General Counsel, Neuberger Berman since 2001; Director-
Mutual Fund Compliance, NB Management since 1995;
Chief Legal Officer, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (ten since 2003 and four since
2004); Chief Compliance Officer, fourteen registered
investment companies for which NB Management acts
as investment manager and administrator (fourteen since
2004) and Lehman Brothers/First Trust Income
Opportunity Fund.
Robert Conti (48) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003,
formerly, Vice President, Neuberger Berman from 1999
until 2003; Senior Vice President, NB Management since
2000; formerly, Controller, NB Management until 1996;
formerly, Treasurer, NB Management from 1996 until
1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Brian J. Gaffney (51) Vice President since 2000 Managing Director, Neuberger Berman since 1999;
Senior Vice President, NB Management since 2000;
formerly, Vice President, NB Management from 1997
until 1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Sheila R. James (39) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1991 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
26
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- ------------------------------------------------------------------------------------------------------------------------------------
Kevin Lyons (49) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1993 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (ten since 2003 and four since 2004).
John M. McGovern (34) Assistant Treasurer since 2002 Vice President, Neuberger Berman since January 2004;
Employee, NB Management since 1993; Assistant
Treasurer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
Barbara Muinos (46) Treasurer and Principal Financial Vice President, Neuberger Berman since 1999; formerly,
and Accounting Officer since 2002; Assistant Vice President, NB Management from 1993 to
prior thereto, Assistant Treasurer 1999; Treasurer and Principal Financial and Accounting
since 1996 Officer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004); formerly, Assistant Treasurer, three registered
investment companies for which NB Management acts
as investment manager and administrator from 1996
until 2002.
Frederic B. Soule (58) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003;
formerly, Vice President, Neuberger Berman from 1999
until 2003; formerly, Vice President, NB Management
from 1995 until 1999; Vice President, fourteen registered
investment companies for which NB Management acts as
investment manager and administrator (three since 2000,
four since 2002, three since 2003, and four since 2004).
- -------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the By-Laws of the Trust, each officer elected by the Trustees
shall hold office until his or her successor shall have been elected and
qualified or until his or her earlier death, inability to serve, or
resignation. Officers serve at the pleasure of the Trustees and may be
removed at any time with or without cause.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
27
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Proxy Voting Policies and Procedures
- ------------------------------------
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available, without
charge, by calling 1-800-877-9700 (toll-free) and on the website of the
Securities and Exchange Commission, at www.sec.gov. Information regarding how
the Trust voted proxies relating to portfolio securities during the most recent
12-month period ended June 30 will also be available without charge, by calling
1-800-877-9700 (toll-free), on the website of the Securities and Exchange
Commission, at www.sec.gov, and on the Trust's website at www.nb.com.
Quarterly Portfolio Schedule
- ----------------------------
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange
Commission's website at www.sec.gov and may be reviewed and copied at the
Securities and Exchange Commission's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The information on Form N-Q is available upon request,
without charge, by calling 1-800-877-9700 (toll-free).
28
Annual Report
December 31, 2004
[LOGO]
Neuberger Berman
Advisers
Management
Trust
Focus
Portfolio
D0080 02/05
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Focus Portfolio Managers' Commentary
- ------------------------------------
The Neuberger Berman AMT Focus Portfolio generated a positive return for 2004,
but trailed the S&P 500 Index and the Russell 1000 Value Index.(2) Although we
are pleased that our investors gained ground during the reporting period, we
are not pleased about lagging the unmanaged benchmarks.
During the year, we were helped by our positions in truck and construction
equipment seller Rush Enterprises, marketing services provider Vertrue and
credit card companies Capital One and Providian. However, we were hindered by
an overweight position in Information Technology and the fact that two of our
bigger positions in the area--Amkor and International Rectifier--
declined for the period. In terms of relative performance, our lack of Energy
holdings was a negative.
In considering where we stand today, it is worth taking a moment to review our
investment discipline. Basically, we want to own stocks that sell at a discount
to the market (as measured by their price/earnings ratio) but offer superior
growth prospects. Since such stocks are not that plentiful, this strategy
dovetails nicely with our concentrated portfolio approach. We believe that our
holdings reflect our strategy: At year-end, the p/e on the overall portfolio
(based on analysts' consensus earnings estimates for 2005) was 14.3--a 13%
discount to the S&P 500--while our expected long term earnings growth rate was
16.9%, or 42% more than that of the S&P's. (These numbers come from an
independent third party, and we consider them to be objective.)*
The reason for adhering to this discipline is, quite simply, that it makes
sense that buying a superior earnings stream at a discounted price should
generate superior returns over time. Looking at our results in a slightly
longer context (2003-2004) seems to bear this out, as the Fund provided a
return that more than doubled that of the S&P 500.
Employing this discipline had led us to an overweight position in Financials,
since these stocks typically sell at a discount to the market, despite
long-term earnings records that have equaled or surpassed the market averages.
Thus, we still own our credit card stocks, as well as Citigroup, JP Morgan,
Merrill Lynch and Morgan Stanley. We like these companies, their managements,
their prospects and their valuations.
We also maintain a substantial position in Information Technology, and here too
our experience in 2004 is illustrative of our thought process. We have an
investment thesis for every stock we own, but if we come to believe that the
thesis is no longer valid we will eliminate the position. For example, as 2004
progressed, it became apparent to us that Amkor was not executing as
anticipated and was in fact losing market share. While realizing a loss was
painful, we do not retain positions in which our original expectations are not
being met. Conversely, all our expectations for our investment in International
Rectifier were either met or exceeded, yet the stock declined. Since the
stock's retreat coincided with an improvement in its fundamentals, we increased
the position.
*Source: Baseline
1
Focus Portfolio Managers' Commentary cont'd
- -------------------------------------------
In sum, what we do is fairly predictable since we consistently adhere to our
long-held investment strategy. While the current investment backdrop has more
uncertainties than usual--terrorism, the high budget and balance-of-trade
deficits, etc.--we have been able to find stocks that we think have the
superior characteristics we require.
Sincerely,
/s/ Kent Simons
/s/ Robert B. Corman
KENT SIMONS AND ROBERT B. CORMAN
PORTFOLIO CO-MANAGERS
- -------------------------------------------------------------------------------
Average Annual Total Return(1)
Focus Russell 1000(R)
Portfolio Value(2) S&P 500(2)
1 Year 6.21% 16.49% 10.87%
Life of Fund 39.49% 19.85% 16.49%
- -------------------------------------------------------------------------------
Inception Date 08/08/2002
Performance data quoted represent past performance, which is no guarantee of
future results. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed may be worth more or less
than their original cost. Results are shown on a "total return" basis and
include reinvestment of all dividends and capital gain distributions.
Current performance may be lower or higher than the performance data quoted.
For performance data current to the most recent month end, please visit
www.nb.com/performance.
Comparison of a $10,000 Investment
- -----------------------------------------------------------------------------
Focus Russell 1000 (R)
Portfolio Value S&P 500
- -----------------------------------------------------------------------------
8/8/2002 $ 10,000 $ 10,000 $ 10,000
- -----------------------------------------------------------------------------
9/30/2002 $ 9,000 $ 9,340 $ 9,329
- -----------------------------------------------------------------------------
12/31/2002 $ 10,990 $ 10,201 $ 10,115
- -----------------------------------------------------------------------------
3/31/2003 $ 11,070 $ 9,705 $ 9,797
- -----------------------------------------------------------------------------
6/30/2003 $ 15,180 $ 11,381 $ 11,304
- -----------------------------------------------------------------------------
9/30/2003 $ 19,060 $ 11,616 $ 11,603
- -----------------------------------------------------------------------------
12/31/2003 $ 20,946 $ 13,264 $ 13,015
- -----------------------------------------------------------------------------
3/31/2004 $ 22,507 $ 13,666 $ 13,235
- -----------------------------------------------------------------------------
6/30/2004 $ 20,322 $ 13,786 $ 13,463
- -----------------------------------------------------------------------------
9/30/2004 $ 18,943 $ 13,999 $ 13,211
- -----------------------------------------------------------------------------
12/31/2004 $ 22,248 $ 15,452 $ 14,430
- -----------------------------------------------------------------------------
The chart shows the value of a hypothetical $10,000 investment in the Fund over
the past 10 fiscal years, or since the Fund's inception, if it has not operated
for 10 years. The result is compared with benchmarks, which may include a
broad-based market index and/or a narrow index. Please note that market indexes
do not include expenses. All results include the reinvestment of dividends and
capital gain distributions. Results represent past performance and do not
indicate future results. The chart and table do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
Please see Endnotes for additional information.
- -------------------------------------------------------------------------------
Industry Diversification
(% of Industry Holdings)
Auto & Housing ............................ 9.1%
Consumer Goods & Services ................. 7.3
Financial Services ........................ 43.9
Retail .................................... 6.6
Technology ................................ 35.1
Short-Term Investments .................... 0.8
Liabilities, less cash, receivables and
other assets .......................... (2.8)
2
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Endnotes
- --------
1. 6.21% and 39.49% were the average annual total returns for the
1-year and since inception (08/08/02) periods ended December
31, 2004. This performance was attained at a time that the
asset size of the Portfolio was small. The Portfolio's total
net assets as of December 31, 2004 was $1,185,741. Neuberger
Berman Management Inc. ("NBMI") has agreed to absorb certain
expenses of the AMT Portfolios. Without this arrangement, which
is subject to change, the total returns of the Portfolios would
be less. Total return includes reinvestment of dividends and
capital gain distributions. Performance data quoted represent
past performance and the investment return and principal value
of an investment will fluctuate so that the shares, when
redeemed, may be worth more or less than original cost. The
performance information does not reflect fees and expenses of
the insurance companies.
2. The S&P 500 Index is widely regarded as the standard for
measuring large-cap U.S. stock market performance and includes
a representative sample of the leading companies in leading
industries. The Russell 1000[RegTM] Index measures the
performance of the 1,000 largest companies in the Russell
3000[RegTM] Index (which measures performance of the 3,000
largest U.S. companies based on total market capitalization).
The Russell 1000 Index represents approximately 92% of the
total market capitalization of the Russell 3000 Index. The
Russell 1000 Value Index measures the performance of those
Russell 1000 companies with lower price-to-book ratios and
lower forecasted growth values. Please note that indices do not
take into account any fees and expenses of investing in the
individual securities that they track, and that individuals
cannot invest directly in any index. Data about the performance
of these indices are prepared or obtained by NBMI and include
reinvestment of all dividends and capital gain distributions.
The Portfolio many invest in many securities not included in
the above-described indices.
Any ratios or other measurements using a factor of forecasted
earnings of a company discussed herein are based on consensus
estimates, not Neuberger Berman's own projections, and they may
or may not be realized. In addition, any revision to a forecast
could affect the market price of a security. By quoting them
herein, Neuberger Berman does not offer an opinion as to the
accuracy of and does not guarantee these forecasted numbers.
The investments for the Portfolio are managed by the same
portfolio manager(s) who manage one or more other mutual funds
that have similar names, investment objectives and investment
styles as the Portfolio. You should be aware that the Portfolio
is likely to differ from the other mutual funds in size, cash
flow pattern and tax matters. Accordingly, the holdings and
performance of the Portfolio can be expected to vary from those
of the other mutual funds.
The composition, industries and holdings of the Portfolio are
subject to change.
Shares of the separate Portfolios of the Neuberger Berman
Advisers Management Trust are sold only through the currently
effective prospectus and are not available to the general
public. Shares of this Portfolio may be purchased only by life
insurance companies to be used with their separate accounts
that fund variable annuity and variable life insurance policies
and by qualified pension and retirement plans.
(C) 2005 Neuberger Berman Management Inc., distributor. All
rights reserved.
3
Information About Your Fund's Expenses
- --------------------------------------
This table is designed to provide information regarding costs related to your
investments. All mutual funds incur operating expenses, which include
management fees, administrative services and shareholder reports among others.
The following example is based on an investment of $1,000 made at the beginning
of the period shown and held for the entire period. The table illustrates the
fund's costs in two ways:
Actual Expenses: The first section of the table provides information about actual account
values and actual expenses in dollars. You may use the information in this line,
together with the amount you invested, to estimate the expenses you paid over
the period.
Hypothetical Example for Comparison Purposes: The second section of the table provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return at 5% per year before expenses. This
return is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare
the ongoing costs of investing in this Fund versus other funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of other funds.
Expense Information As of 12/31/04 (Unaudited)
- ----------------------------------------------
Neuberger Berman Advisers Management Trust Focus Portfolio
- ----------------------------------------------------------
Beginning Ending Expenses Paid
Actual Account Value Account Value During the Period*
Class S $1,000 $1,094.80 $6.53
Hypothetical (5% annual return before expenses)**
Class S $1,000 $1,018.90 $6.29
* Expenses are equal to the expense ratio for the class, multiplied by
the average account value over the period, multiplied by 184/366 (to
reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by
multiplying the number of days in the most recent half year divided by
366.
4
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Focus Portfolio
- ---------------------------------------
Number of Shares Market Value+
Common Stocks (102.0%)
Autos & Housing (9.1%)
500 Autoliv, Inc. $ 24,150
500 Centex Corp. 29,790
600 Lennar Corp. 34,008
1,200 Rush Enterprises, Class A 19,476*
------------
107,424
Consumer Goods & Services (7.3%)
2,300 Vertrue Inc. 86,871*
Financial Services (43.9%)
1,932 Bank of America 90,785
2,000 Capital One Financial 168,420
1,250 Citigroup Inc. 60,225
1,000 Fifth Third Bancorp 47,280
650 J.P. Morgan Chase 25,356
1,000 Merrill Lynch 59,770
500 Morgan Stanley 27,760
2,500 Providian Financial 41,175*
------------
520,771
Retail (6.6%)
2,000 Select Comfort 35,880*
1,700 TJX Cos. 42,721
------------
78,601
Number of Shares Market Value+
Technology (35.1%)
1,300 Advanced Micro Devices $ 28,626*
1,200 Amdocs Ltd. 31,500*
1,000 Computer Associates 31,060
2,700 Flextronics International 37,314*
3,500 International Rectifier 155,995*
1,400 Jabil Circuit 35,812*
2,000 Nokia Corp. ADR 31,340
1,500 Novell, Inc. 10,125*
5,000 NYFIX, Inc. 30,950*
700 VeriSign, Inc. 23,464*
------------
416,186
Total Common Stocks
(Cost $858,690) 1,209,853
------------
Principal Amount
Short-Term Investments (0.8%)
$9,673 Neuberger Berman Prime
Money Fund Trust Class
(Cost $9,673) 9,673@#
------------
Total Investments (102.8%)
(Cost $868,363)
1,219,526##
Liabilities, less cash, receivables and
other assets [(2.8%)]
(33,785)
------------
Total Net Assets (100.0%)
$ 1,185,741
------------
See Notes to Schedule of Investments 5
Notes to Schedule of Investments Focus Portfolio
- ------------------------------------------------
+ Investments in equity securities by Neuberger Berman Advisers
Management Trust Focus Portfolio (the "Fund") are valued at the latest
sale price where that price is readily available; securities for which
no sales were reported, unless otherwise noted, are valued at the mean
between the closing bid and asked prices. Securities traded primarily
on the NASDAQ Stock Market are normally valued by the Fund at the
NASDAQ Official Closing Price ("NOCP") provided by NASDAQ each
business day. The NOCP is the most recently reported price as of
4:00:02 p.m., Eastern time, unless that price is outside the range of
the "inside" bid and asked prices (i.e., the bid and asked prices that
dealers quote to each other when trading for their own accounts); in
that case, NASDAQ will adjust the price to equal the inside bid or
asked price, whichever is closer. Because of delays in reporting
trades, the NOCP may not be based on the price of the last trade to
occur before the market closes. The Fund values all other securities
by a method the Board of Trustees of Neuberger Berman Advisers
Management Trust (the "Board") believes accurately reflects fair
value. Numerous factors may be considered when determining the fair
value of a security, including available analyst, media or other
reports, trading in futures or ADRs and whether the issuer of the
security being fair valued has other securities outstanding. Foreign
security prices are furnished by independent quotation services and
expressed in local currency values. Foreign security prices are
translated from the local currency into U.S. dollars using the
exchange rate as of 12:00 noon, Eastern time. The Board has approved
the use of FT Interactive Data Corporation ("FT Interactive") to
assist in determining the fair value of the Fund's foreign equity
securities in the wake of certain significant events. When changes in
the value of a certain index suggest that the closing prices on the
foreign exchanges may no longer represent the amount that the Fund
could expect to receive for those securities, FT Interactive will
provide adjusted prices for certain foreign equity securities based on
an analysis showing historical correlations between the prices of
those securities and changes in the index. In the absence of precise
information about the market values of these foreign securities as of
the close of the New York Stock Exchange, the Board has determined on
the basis of available data that prices adjusted in this way are
likely to be closer to the prices the Fund could realize on a current
sale than are the prices of those securities established at the close
of the foreign markets in which the securities primarily trade.
However, fair value prices are necessarily estimates, and there is no
assurance that such a price will be at or close to the price at which
the security next trades. Short-term debt securities with less than 60
days until maturity may be valued at cost which, when combined with
interest earned, approximates market value.
# At cost, which approximates market value.
## At December 31, 2004, the cost of investments for U.S. Federal income
tax purposes was $868,505. Gross unrealized appreciation of
investments was $362,359 and gross unrealized depreciation of
investments was $11,338, resulting in net unrealized appreciation of
$351,021, based on cost for U.S. Federal income tax purposes.
* Non-income producing security.
@ Neuberger Berman Prime Money Fund ("Prime Money") is also managed by
Neuberger Berman Management Inc. (see Notes A & F of Notes to
Financial Statements) and may be considered an affiliate since it has
the same officers, Board members, and investment manager as the Fund
and because, at times, the Fund may own 5% or more of the outstanding
voting securities of Prime Money.
See Notes to Financial Statements 6
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Assets and Liabilities
- -----------------------------------
--------------
Focus
Neuberger Berman Advisers Management Trust Portfolio
Assets
Investments in securities, at market value* (Notes A & F)-see Schedule of Investments:
=======================================================================================================
Unaffiliated issuers $ 1,209,853
- -------------------------------------------------------------------------------------------------------
Affiliated issuers 9,673
- -------------------------------------------------------------------------------------------------------
1,219,526
=======================================================================================================
Dividends and interest receivable 393
- -------------------------------------------------------------------------------------------------------
Receivable from administrator-net (Note B) 7,018
=======================================================================================================
Prepaid expenses and other assets 219
- -------------------------------------------------------------------------------------------------------
Total Assets 1,227,156
- -------------------------------------------------------------------------------------------------------
Liabilities
Payable for Fund shares redeemed 52
=======================================================================================================
Payable to investment manager-net (Notes A & B) 529
=======================================================================================================
Accrued expenses and other payables 40,834
- -------------------------------------------------------------------------------------------------------
Total Liabilities 41,415
- -------------------------------------------------------------------------------------------------------
Net Assets at value $ 1,185,741
- -------------------------------------------------------------------------------------------------------
Net Assets consist of:
Paid-in capital $ 814,909
=======================================================================================================
Accumulated net realized gains (losses) on investments 19,669
- -------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) in value of investments 351,163
- -------------------------------------------------------------------------------------------------------
Net Assets at value $ 1,185,741
- -------------------------------------------------------------------------------------------------------
Shares Outstanding ($.001 par value; unlimited shares authorized) 60,551
- -------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share $ 19.58
- -------------------------------------------------------------------------------------------------------
*Cost of investments:
Unaffiliated issuers $ 858,690
=======================================================================================================
Affiliated issuers 9,673
- -------------------------------------------------------------------------------------------------------
Total cost of investments $ 868,363
- -------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 7
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST FOR THE YEAR ENDED DECEMBER 31, 2004
Statement of Operations
- -----------------------
--------------
Focus
Neuberger Berman Advisers Management Trust Portfolio
Investment Income
Income (Note A):
Dividend income-unaffiliated issuers $ 11,877
=====================================================================================================
Dividend income-affiliated issuers (Note F) 62
- -----------------------------------------------------------------------------------------------------
Interest income 43
=====================================================================================================
Income from securities loaned-affiliated issuer (Note F) 1,260
- -----------------------------------------------------------------------------------------------------
Income from investments in affiliated issuers (Note F) 527
- -----------------------------------------------------------------------------------------------------
Foreign taxes withheld (32)
- -----------------------------------------------------------------------------------------------------
Total income 13,737
- -----------------------------------------------------------------------------------------------------
Expenses:
Investment management fee (Notes A & B) 6,427
=====================================================================================================
Administration fee (Note B) 3,506
- -----------------------------------------------------------------------------------------------------
Distribution fees (Note B) 2,921
=====================================================================================================
Audit fees 38,302
- -----------------------------------------------------------------------------------------------------
Custodian fees (Note B) 10,007
=====================================================================================================
Insurance expense 32
- -----------------------------------------------------------------------------------------------------
Legal fees 218
=====================================================================================================
Shareholder reports 8,210
- -----------------------------------------------------------------------------------------------------
Trustees' fees and expenses 24,820
=====================================================================================================
Miscellaneous 1,422
- -----------------------------------------------------------------------------------------------------
Total expenses 95,865
Expenses reimbursed by administrator (Note B) (80,604)
Investment management fee waived (Note A) (53)
Expenses reduced by custodian fee expense offset and commission recapture arrangements (76)
(Note B)
- -----------------------------------------------------------------------------------------------------
Total net expenses 15,132
- -----------------------------------------------------------------------------------------------------
Net investment income (loss) (1,395)
- -----------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers 17,051
==================================================================================================
Sales of investment securities of affiliated issuers 6,948
--------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities 41,950
--------------------------------------------------------------------------------------------------
Net gain (loss) on investments 65,949
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 64,554
- -----------------------------------------------------------------------------------------------------
See Notes to Financial Statements 8
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Changes in Net Assets
- ----------------------------------
Focus Portfolio
Neuberger Berman Advisers Management Trust Year Ended December 31,
2004 2003
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss) $ (1,395) $ (3,575)
======================================================================================================
Net realized gain (loss) on investments 23,999 123,733
- ------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments 41,950 303,355
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 64,554 423,513
- ------------------------------------------------------------------------------------------------------
Distributions to Shareholders From:
Net realized gain on investments (120,549) (7,067)
- ------------------------------------------------------------------------------------------------------
From Fund Share Transactions (Note D):
Proceeds from shares sold 112,127 745,221
======================================================================================================
Proceeds from reinvestment of dividends and distributions 120,549 7,067
- ------------------------------------------------------------------------------------------------------
Payments for shares redeemed (174,997) (213,704)
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) from Fund share transactions 57,679 538,584
- ------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 1,684 955,030
Net Assets:
Beginning of year 1,184,057 229,027
- ------------------------------------------------------------------------------------------------------
End of year $1,185,741 $1,184,057
- ------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) at end of year (--) (--)
- ------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 9
Notes to Financial Statements Focus Portfolio
- ---------------------------------------------
Note A--Summary of Significant Accounting Policies:
1 General: Focus Portfolio (the "Fund") is a separate operating series
of Neuberger Berman Advisers Management Trust (the "Trust"), a
Delaware statutory trust organized pursuant to a Trust Instrument
dated May 23, 1994. The Trust is currently comprised of eleven
separate operating series (each a "Series," collectively, the "Funds")
each of which (except the Fund) is diversified. The Trust is
registered as an open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act"), and its
shares are registered under the Securities Act of 1933, as amended.
The Fund currently offers only Class S shares. The Board of Trustees
of the Trust (the "Board") may establish additional series or classes
of shares without the approval of shareholders.
The assets of each Series belong only to that Series, and the
liabilities of each Series are borne solely by that Series and no
other.
The preparation of financial statements in accordance with U.S.
generally accepted accounting principles requires Neuberger Berman
Management Inc. ("Management") to make estimates and assumptions at
the date of the financial statements. Actual results could differ from
those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in
the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars using the exchange rate as of 12:00 noon, Eastern
time, to determine the value of investments, other assets and
liabilities. Purchase and sale prices of securities, and income and
expenses, are translated into U.S. dollars at the prevailing rate of
exchange on the respective dates of such transactions. Net unrealized
foreign currency gain (loss) arises from changes in the value of
assets and liabilities, other than investments in securities, as a
result of changes in exchange rates and is stated separately in the
Statement of Operations.
4 Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the
Fund becomes aware of the dividends. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income, including accretion of original
issue discount, where applicable, and accretion of discount on
short-term investments, is recorded on the accrual basis. Realized
gains and losses from securities transactions and foreign currency
transactions, if any, are recorded on the basis of identified cost and
stated separately in the Statement of Operations.
5 Income tax information: The Funds are treated as separate entities for
U.S. Federal income tax purposes. It is the policy of the Fund to
continue to qualify as a regulated investment company by complying
with the requirements of Subchapter M of the Internal Revenue Code
applicable to regulated investment companies and to distribute
substantially all of its earnings to its shareholders. Therefore, no
Federal income or excise tax provision is required.
10
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from
generally accepted accounting principles. These differences are
primarily due to differing treatments of income and gains on various
investment securities held by the Fund, timing differences and
differing characterization of distributions made by the Fund as a
whole. The Fund may also utilize earnings and profits distributed to
shareholders on redemption of shares as a part of the dividends paid
deduction for income tax purposes.
As determined on December 31, 2004, permanent differences resulting
primarily from different book and tax accounting for net operating
losses were reclassified at year end. These reclassifications had no
effect on net income, net assets or net assets per share of the Fund.
The tax character of distributions paid during the years ended
December 31, 2004 and December 31, 2003 were as follows:
Distributions Paid From:
Ordinary Income Long Term Capital Gain Total
2004 2003 2004 2003 2004 2003
$113,929 $7,067 $6,620 $ - $120,549 $7,067
As of December 31, 2004, the components of distributable earnings
(accumulated losses) on a U.S. Federal income tax basis were as
follows:
Loss
Undistributed Undistributed Unrealized Carryforwards
Ordinary Long-Term Appreciation and
Income Gain (Depreciation) Deferrals Total
$ - $19,811 $351,021 $ - $370,832
The difference between book basis and tax basis distributable earnings
is attributable primarily to timing differences of wash sales.
To the extent the Fund's net realized capital gains, if any, can be
offset by capital loss carryforwards, it is the policy of the Fund not
to distribute such gains.
6 Dividends and distributions to shareholders: The Fund may earn income,
net of expenses, daily on its investments. Income dividends and
distributions from net realized capital gains, if any, generally are
distributed in October. Income dividends and capital gain
distributions to shareholders are recorded on the ex-dividend date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by
foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds.
Expenses directly attributable to a Series are charged to that Series.
Expenses of the Trust that are not directly attributed to a Series are
allocated among the Funds, on the basis of relative net assets, except
where a more appropriate allocation of expenses to each of the Funds
can otherwise be made fairly. Expenses borne by the complex of related
investment companies, which includes open-end and closed-end
investment companies for which Management serves as investment
manager, that are not directly attributed to a Series or the Trust,
are allocated among the Fund and the other investment companies in the
complex or series thereof, on the
11
Notes to Financial Statements Focus Portfolio cont'd
- ----------------------------------------------------
basis of relative net assets, except where a more appropriate
allocation of expenses to each investment company in the complex or
series thereof can otherwise be made fairly.
9 Security lending: Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund entered into a Securities
Lending Agreement ("Agreement") with Neuberger Berman, LLC
("Neuberger") on April 17, 2003. Securities loans involve certain
risks in the event a borrower should fail financially, including
delays or inability to recover the lent securities or foreclose
against the collateral. The investment manager, under the general
supervision of the Board, monitors the creditworthiness of the parties
to whom the Fund makes security loans. The Fund will not lend
securities on which covered call options have been written, or lend
securities on terms which would prevent the Fund from qualifying as a
regulated investment company. The Fund receives cash collateral equal
to at least 102% of the current market value of the loaned securities.
The Fund invests the cash collateral in the N&B Securities Lending
Quality Fund, LLC ("Quality Fund"), which is managed by State Street
Bank and Trust Company ("State Street") pursuant to guidelines
approved by the Trust's investment manager. Neuberger guaranteed a
certain amount of revenue to the Fund under the Agreement, and
received a portion of any revenue earned in excess of the guaranteed
amount as a lending agency fee.
The Agreement has been renewed and approved by the Board as of July 1,
2004 with substantially the same terms. Under this current Agreement,
Neuberger guarantees a certain amount of revenue to the Fund and
receives any revenue earned in excess of the guaranteed amount as a
lending agency fee. For the year ended December 31, 2004, Neuberger
did not receive any revenue under the Agreement. Income earned on the
securities loaned, if any, is reflected in the Statement of Operations
under the caption Income from securities loaned-affiliated issuer.
In February of 2005, it is likely that the Fund will change the
collateral investment vehicle from the Quality Fund, managed by State
Street, to a fund managed by Lincoln Capital, an affiliate, as
approved by the Board.
10 Transactions with other funds managed by Neuberger Berman Management
Inc.: Pursuant to an Exemptive Order issued by the Securities and
Exchange Commission, the Fund may invest in the Neuberger Berman
Institutional Cash Fund (the "Cash Fund") and the Neuberger Berman
Prime Money Fund ("Prime Money"), affiliated funds, which are managed
by Management and have the same Board members as the Fund. The Cash
Fund and Prime Money each seeks to provide as high a level of current
income as is consistent with the preservation of capital and the
maintenance of liquidity. For any cash that the Fund invests in the
Cash Fund or Prime Money, Management waives a portion of its
management fee equal to the management fee it receives from the Cash
Fund or Prime Money on those assets. For the year ended December 31,
2004, such waived fees amounted to $53 and $0 for the Cash Fund and
Prime Money, respectively. For the year ended December 31, 2004,
income earned on the investments of the Cash Fund and Prime Money
amounted to $524 and $3, respectively, and is reflected in the
Statement of Operations under the caption Income from investments in
affiliated issuers.
11 Indemnifications: Like many other companies, the Trust's
organizational documents provide that its officers and trustees are
indemnified against certain liabilities arising out of the performance
of their duties to the Trust. In addition, both in some of its
principal service contracts and in the normal course
12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
of its business, the Trust enters into contracts that provide
indemnifications to other parties for certain types of losses or
liabilities. The Trust's maximum exposure under these arrangements is
unknown as this could involve future claims against the Trust.
Note B--Management Fees, Administration Fees, Distribution
Arrangements, and Other Transactions With Affiliates:
Fund shares are issued and redeemed in connection with investments in
and payments under certain variable annuity contracts and variable
life insurance policies issued through separate accounts of life
insurance companies and are also offered directly to qualified pension
and retirement plans.
The Fund retains Management as its investment manager under a
Management Agreement. For such investment management services, the
Fund pays Management a fee at the annual rate of 0.55% of the first
$250 million of the Fund's average daily net assets, 0.525% of the
next $250 million, 0.50% of the next $250 million, 0.475% of the next
$250 million, 0.45% of the next $500 million, 0.425% of the next $2.5
billion, and 0.40% of average daily net assets in excess of $4
billion.
The Fund retains Management as its administrator under an
Administration Agreement. The Fund pays Management an administration
fee at the annual rate of 0.30% of its average daily net assets under
this agreement. Additionally, Management retains State Street as its
sub-administrator under a Sub-Administration Agreement. Management
pays State Street a fee for all services received under this
agreement.
Management acts as agent in arranging for the sale of Fund shares
without commission and bears advertising and promotion expenses. The
Board has adopted a distribution plan (the "Plan") with respect to the
Fund, pursuant to Rule 12b-1 under the 1940 Act. The Plan provides
that, as compensation for administrative and other services provided
to the Fund, Management's activities and expenses related to the sale
and distribution of the Fund's shares, and ongoing services provided
to investors in the Fund, Management receives from the Fund a fee at
the annual rate of 0.25% of the Fund's average daily net assets.
Management receives this amount to provide distribution and
shareholder servicing for the Fund and pays a portion of it to
institutions that provide such services. Those institutions may use
the payments for, among other purposes, compensating employees engaged
in sales and/or shareholder servicing. The amount of fees paid by the
Fund during any year may be more or less than the cost of distribution
and other services provided to the Fund. NASD rules limit the amount
of annual distribution fees that may be paid by a mutual fund and
impose a ceiling on the cumulative distribution fees paid. The Trust's
Plan complies with those rules.
Management has contractually undertaken through December 31, 2008 to
reimburse the Fund for its operating expenses (including the fees
payable to Management but excluding interest, taxes, brokerage
commissions, extraordinary expenses, and transaction costs)
("Operating Expenses") which exceed, in the aggregate, 1.25% per annum
of the Fund's average daily net assets (the "Expense Limitation"). For
the year ended December 31, 2004, such excess expenses amounted to
$80,604. The Fund has agreed to repay Management through December 31,
2011 for its excess Operating Expenses previously reimbursed
13
Notes to Financial Statements Focus Portfolio cont'd
- ----------------------------------------------------
by Management, so long as its annual Operating Expenses during that
period do not exceed its Expense Limitation, and the repayment is made
within three years after the year in which Management issued the
reimbursement. During the year ended December 31, 2004, there was no
reimbursement to Management under this agreement. At December 31,
2004, contingent liabilities to Management under this agreement were
as follows:
Expiring in
2005 2006 2007 Total
$37,435 $77,957 $80,604 $195,996
On October 31, 2003, Management and Neuberger, a member firm of the
New York Stock Exchange and sub-adviser to the Fund, became indirect
wholly-owned subsidiaries of Lehman Brothers Holdings Inc. ("Lehman"),
a publicly-owned holding company. Neuberger is retained by Management
to furnish it with investment recommendations and research information
without added cost to the Fund. Several individuals who are officers
and/or Trustees of the Trust are also employees of Neuberger and/or
Management.
On July 1, 2003, the Fund entered into a commission recapture program,
which enables it to pay some of its operational expenses by recouping
a portion of the commissions it pays to a broker that is not a related
party of the Fund. Expenses paid through this program may include
costs of custodial, transfer agency or accounting services. For the
year ended December 31, 2004, the impact of this arrangement was a
reduction of expenses of $75.
The Fund has an expense offset arrangement in connection with its
custodian contract. For the year ended December 31, 2004, the impact
of this arrangement was a reduction of expenses of $1.
Note C--Securities Transactions:
During the year ended December 31, 2004, there were purchase and sale
transactions (excluding short-term securities) of $426,810 and
$376,587, respectively.
During the year ended December 31, 2004, brokerage commissions on
securities transactions amounted to $1,520, of which Neuberger
received $109, Lehman received $184, and other brokers received
$1,227.
Note D--Fund Share Transactions:
Share activity for the years ended December 31, 2004 and December 31,
2003 was as follows:
For the Year Ended
December 31,
2004 2003
Shares Sold 5,164 49,999
Shares Issued on Reinvestment of Dividends and Distributions 7,275 345
Shares Redeemed (8,787) (14,274)
------ -------
Total 3,652 36,070
------ -------
14
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Note E--Line of Credit:
At December 31, 2004, the Fund was a participant in a single
committed, unsecured $150,000,000 line of credit with State Street, to
be used only for temporary or emergency purposes. Interest is charged
on borrowings under this agreement at the overnight Federal Funds Rate
plus 0.50% per annum. A facility fee of 0.10% per annum of the
available line of credit is charged, of which the Fund has agreed to
pay its pro rata share, based on the ratio of its individual net
assets to the net assets of all participants at the time the fee is
due and payable. The fee is paid quarterly in arrears. No compensating
balance is required. Other investment companies managed by Management
also participate in this line of credit on the same terms. Because
several investment companies participate, there is no assurance that
the Fund will have access to all or any part of the $150,000,000 at
any particular time. The Fund had no loans outstanding pursuant to
this line of credit at December 31, 2004, nor had the Fund utilized
this line of credit at any time prior to that date.
Note F--Investments in Affiliates*:
Income
from
Investments
Balance of Balance of in Afiliated
Shares Gross Gross Shares Issuers
Held Purchases Sales Held Value Included in
December 31, and and December 31, December 31, Total
Name of Issuer 2003 Additions Reductions 2004 2004 Income
Lehman Brothers
Holdings Inc. 390 - 390 - $- $ 62
Neuberger Berman
Institutional Cash Fund
Trust Class** 20,486 615,022 635,508 - - 524
Neuberger Berman Prime
Money Fund Trust Class** - 12,303 2,630 9,673 9,673 3
----- ---
Total $9,673 $589
====== ====
* Affiliated issuers, as defined in the 1940 Act, include issuers in which
the Fund held 5% or more of the outstanding voting securities.
** Neuberger Berman Institutional Cash Fund ("Cash Fund") and Neuberger Berman
Prime Money Fund ("Prime Money") are also managed by Neuberger Berman
Management Inc. and may be considered affiliates since they have the same
officers, Board members, and investment manager as the Fund and because, at
times, the Fund may own 5% or more of the outstanding voting securities of
Cash Fund or Prime Money, respectively.
15
Financial Highlights Focus Portfolio
- ------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.++
Period from
August 8, 2002^
Year Ended December 31, to December 31,
-------------------------- ---------------
2004 2003 2002
Net Asset Value, Beginning of Period $ 20.81 $ 11.00 $ 10.00
------- ------- -------
Income From Investment Operations:
Net Investment Income (Loss) (.02) (.09) (.03)
Net Gains or Losses on Securities (both realized and unrealized) 0.93 10.03 1.03
------- ------- -------
Total From Investment Operations 0.91 9.94 1.00
------- ------- -------
Less Distributions From:
Net Capital Gains (2.14) (.13) --
------- ------- -------
Net Asset Value, End of Period $ 19.58 $ 20.81 $ 11.00
------- ------- -------
Total Return++ +6.21% +90.42% +10.00%**
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 1.2 $ 1.2 $ 0.2
Ratio of Gross Expenses to Average Net Assets# 1.30% 1.32% 1.25%*
Ratio of Net Expenses to Average Net Assets[sec] 1.29% 1.29% 1.25%*
Ratio of Net Investment Income (Loss) to Average Net Assets (.12)% (.51)% (.69)%*
Portfolio Turnover Rate 33% 101% 63%
See Notes to Financial Highlights 16
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Financial Highlights Focus Portfolio
- ---------------------------------------------
++ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each
fiscal period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee future
results. Current returns may be lower or higher than the performance data
quoted. Investment returns and principal may fluctuate and shares when
redeemed may be worth more or less than original cost. Total return would
have been lower if Management had not reimbursed and/or waived certain
expenses. The total return information shown does not reflect charges and
other expenses that apply to the separate account or the related insurance
policies, and the inclusion of these charges and other expenses would
reduce the total return for all fiscal periods shown. Performance data
current to the most recent month-end are available at www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
[sec] After reimbursement of expenses by the administrator. Had the
administrator not undertaken such action, the annualized ratio of net
expenses to average daily net assets would have been:
Period from
August 8, 2002
to December 31,
2002
63.28%
After reimbursement of expenses by the administrator, and waiver of a
portion of the investment management fee. Had Management not undertaken
such actions, the annualized ratios of net expenses to average daily net
assets would have been:
Year Ended December 31,
2004 2003
8.20% 12.48%
^ The date investment operations commenced.
++ The per share amounts which are shown have been computed based on the
average number of shares outstanding during each fiscal period.
* Annualized.
** Not annualized.
17
Report of Independent Registered Public Accounting Firm
- -------------------------------------------------------
To the Board of Trustees of
Neuberger Berman Advisers Management Trust and
Shareholders of Focus Portfolio
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Focus Portfolio, one of the series constituting
the Neuberger Berman Advisers Management Trust (the "Trust"), as of December
31, 2004, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period then
ended and the financial highlights for the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights. Our procedures included confirmation of securities owned as of
December 31, 2004. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Focus
Portfolio of Neuberger Berman Advisers Management Trust at December 31, 2004,
the results of its operations for the year then ended, the changes in its net
assets for each of the years in the period then ended and its financial
highlights for each of the periods indicated herein, in conformity with U.S.
generally accepted accounting principles.
Ernst & Young LLP
Boston, Massachusetts
February 4, 2005
18
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Trustees and Officers (Unaudited)
- ---------------------------------
The following tables set forth information concerning the trustees and officers
of the Trust. All persons named as trustees and officers also serve in similar
capacities for other funds administered or managed by NB Management and
Neuberger Berman. The Statement of Additional Information includes additional
information about fund trustees and is available upon request, without charge,
by calling (800) 877-9700.
Information about the Board of Trustees
- -----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
John Cannon (74) Trustee since Consultant. Formerly, 41 Independent Trustee or Director of
2000 Chairman, CDC Investment three series of Oppenheimer Funds:
Advisers (registered investment Limited Term New York Municipal
adviser) 1993 to January 1999; Fund, Rochester Fund Municipals,
formerly, President and Chief and Oppenheimer Convertible
Executive Officer, AMA Securities Fund, since 1992.
Investment Advisors, an affiliate
of the American Medical
Association.
- -----------------------------------------------------------------------------------------------------------------------------------
Faith Colish (69) Trustee since Counsel, Carter Ledyard & 41 Director, American Bar Retirement
1984 Millburn LLP (law firm) since Association (ABRA) since 1997
October 2002; formerly, (not-for-profit membership
Attorney-at-Law and President, association).
Faith Colish, A Professional
Corporation, 1980 to 2002.
- -----------------------------------------------------------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) Trustee since Consultant; Retired President 41 None.
1989 and Trustee, Teachers Insurance
& Annuity (TIAA) and College
Retirement Equities Fund
(CREF).
- -----------------------------------------------------------------------------------------------------------------------------------
C. Anne Harvey (67) Trustee since Consultant, C. A. Harvey 41 President, Board of Associates to
1998 Associates, since June 2001; The National Rehabilitation
formerly, Director, AARP, 1978 Hospital's Board of Directors since
to December 2001. 2002; formerly, Member, Individual
Investors Advisory Committee to the
New York Stock Exchange Board
of Directors, 1998 to June 2002;
formerly, Member, American
Savings Education Council's Policy
Board (ASEC), 1998 to 2000;
formerly, Member, Executive
Committee, Crime Prevention
Coalition of America, 1997 to 2000.
- -----------------------------------------------------------------------------------------------------------------------------------
19
Trustees and Officers (Unaudited) cont'd
- -----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Barry Hirsch (71) Trustee since Attorney-at-Law. Formerly, 41 None.
2000 Senior Counsel, Loews
Corporation (diversified
financial corporation) May 2002
until April 2003; formerly,
Senior Vice President, Secretary
and General Counsel,
Loews Corporation.
- -----------------------------------------------------------------------------------------------------------------------------------
Robert A. Kavesh (77) Trustee since Marcus Nadler Professor 41 Director, DEL Laboratories, Inc.
2000 Emeritus of Finance and (cosmetics and pharmaceuticals)
Economics, New York since 1978; Director, The Caring
University Stern School Community (not-for-profit).
of Business.
- -----------------------------------------------------------------------------------------------------------------------------------
Howard A. Mileaf (67) Trustee since Retired. Formerly, Vice 41 Director, WHX Corporation
1999 President and Special Counsel, (holding company) since August
WHX Corporation (holding 2002; Director, Webfinancial
company) 1993 to 2001. Corporation (holding company)
since December 2002; Director, State
Theatre of New Jersey (not-for-
profit theater) since 2000; formerly,
Director, Kevlin Corporation
(manufacturer of microwave and
other products).
- -----------------------------------------------------------------------------------------------------------------------------------
William E. Rulon (72) Trustee since Retired. Formerly, Senior Vice 41 Director, Pro-Kids Golf and
2000 President, Foodmaker, Inc. Learning Academy (teach golf and
(operator and franchiser of computer usage to "at risk" children)
restaurants) until January 1997. since 1998; formerly, Director,
Prandium, Inc. (restaurants) from
March 2001 until July 2002.
- -----------------------------------------------------------------------------------------------------------------------------------
Cornelius T. Ryan (73) Trustee since Founding General Partner, 41 Director, Capital Cash Management
2000 Oxford Partners and Oxford Trust (money market fund),
Bioscience Partners (venture Naragansett Insured Tax-Free
capital partnerships) and Income Fund, Rocky Mountain
President, Oxford Venture Equity Fund, Prime Cash Fund,
Corporation. several private companies and
QuadraMed Corporation
- -----------------------------------------------------------------------------------------------------------------------------------
20
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Tom D. Seip (54) Trustee since General Partner, Seip 41 Director, H&R Block, Inc. (financial
2000 Investments LP (a private services company) since May 2001;
investment partnership); Director, Forward Management, Inc.
formerly, President and CEO, (asset management) since 2001;
Westaff, Inc. (temporary formerly, Director, General Magic
staffing), May 2001 to January (voice recognition software) 2001
2002; Senior Executive at the until 2002; formerly, Director,
Charles Schwab Corporation E-Finance Corporation (credit
from 1983 to 1999, including decisioning services) 1999 to 2003;
Chief Executive Officer, formerly, Director, Save-Daily.com
Charles Schwab Investment (micro investing services) 1999 to
Management, Inc. and Trustee, 2003; Director, Offroad Capital Inc.
Schwab Family of Funds and (pre-public internet commerce
Schwab Investments from company).
1997 to 1998 and Executive
Vice President-Retail
Brokerage, Charles Schwab
Investment Management from
1994 to 1997.
- -----------------------------------------------------------------------------------------------------------------------------------
Candace L. Straight (57) Trustee since Private investor and consultant 41 Director, The Proformance Insurance
1999 specializing in the insurance Company (personal lines property
industry; formerly, Advisory and casualty insurance company)
Director, Securitas Capital since March 2004; Director,
LLC (a global private equity Providence Washington (property
investment firm dedicated to and casualty insurance company)
making investments in the since December 1998; Director,
insurance sector) 1998 to Summit Global Partners (insurance
December 2002. brokerage firm) since October 2000.
- -----------------------------------------------------------------------------------------------------------------------------------
Peter P. Trapp (60) Trustee since Regional Manager for Atlanta 41 None.
1984 Region, Ford Motor Credit
Company since August 1997;
formerly, President, Ford Life
Insurance Company, April 1995
to August 1997.
- -----------------------------------------------------------------------------------------------------------------------------------
21
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Position and Fund Complex
"Interested Persons" Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Edward I. O'Brien* (76) Trustee since Formerly, Member, Investment 41 Director, Legg Mason, Inc. (financial
2000 Policy Committee, Edward services holding company) since
Jones 1993 to 2001; President, 1993; formerly, Director, Boston
Securities Industry Association Financial Group (real estate and tax
("SIA") (securities industry's shelters) 1993 to 1999.
representative in government
relations and regulatory
matters at the federal and state
levels) 1974 to 1992; Adviser to
SIA, November 1992 to
November 1993.
- -----------------------------------------------------------------------------------------------------------------------------------
Jack L. Rivkin* (64) President and Executive Vice President and 41 Director, Dale Carnegie and
Trustee since Chief Investment Officer, Associates, Inc. (private company)
December Neuberger Berman Inc. since 1998; Director, Emagin Corp.
2002 (holding company) since 2002 (public company) since 1997;
and 2003, respectively; Director, Solbright, Inc. (private
Executive Vice President and company) since 1998; Director,
Chief Investment Officer, Infogate, Inc. (private company)
Neuberger Berman since since 1997; Director, Broadway
December 2002 and 2003, Television Network (private
respectively; Director and company) since 2000.
Chairman, NB Management
since December 2002; formerly,
Executive Vice President,
Citigroup Investments, Inc.
from September 1995 to
February 2002; formerly,
Executive Vice President,
Citigroup Inc. from September
1995 to February 2002.
- -----------------------------------------------------------------------------------------------------------------------------------
22
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Position and Fund Complex
"Interested Persons" Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Peter E. Sundman* (45) Chairman of Executive Vice President, 41 Director and Vice President,
the Board, Neuberger Berman Inc. Neuberger & Berman Agency, Inc.
Chief (holding company) since 1999; since 2000; formerly, Director,
Executive Head of Neuberger Berman Neuberger Berman Inc. (holding
Officer and Inc.'s Mutual Funds and company) from October 1999
Trustee Institutional Business since through March 2003; Trustee,
since 2000 1999; President and Director, Frost Valley YMCA.
President NB Management since 1999;
and Chief Executive Vice President,
Executive Neuberger Berman since 1999;
Officer from formerly, Principal, Neuberger
1999 to 2000 Berman from 1997 until 1999;
formerly, Senior Vice President,
NB Management from 1996
until 1999.
- -----------------------------------------------------------------------------------------------------------------------------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the Trust's Trust Instrument, each Trustee shall hold office
for life or until his or her successor is elected or the Trust terminates;
except that (a) any Trustee may resign by delivering a written
resignation; (b) any Trustee may be removed with or without cause at any
time by a written instrument signed by at least two-thirds of the other
Trustees; (c) any Trustee who requests to be retired, or who has become
unable to serve, may be retired by a written instrument signed by a
majority of the other Trustees; and (d) any Trustee may be removed at any
shareholder meeting by a vote of at least two-thirds of the outstanding
shares.
(3) Except as otherwise indicated, each individual has held the positions
shown for at least the last five years.
(4) Retired (effective the close of business December 31, 2004).
* Indicates a trustee who is an "interested person" within the meaning of
the 1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of the
Trust by virtue of the fact that they are officers and/or directors of NB
Management and Executive Vice Presidents of Neuberger Berman. Mr. O'Brien
is an interested person of the Trust by virtue of the fact that he is a
director of Legg Mason, Inc., a wholly owned subsidiary of which, from
time to time, serves as a broker or dealer to the Funds and other funds
for which NB Management serves as investment manager.
23
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Information about the Officers of the Trust
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------------------------------------------------------
Claudia A. Brandon (48) Secretary since 1985 Vice President-Mutual Fund Board Relations,
NB Management since 2000; Vice President, Neuberger
Berman since 2002 and employee since 1999; formerly,
Vice President, NB Management from 1986 to 1999;
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (four since 2002, three since 2003, and four
since 2004).
Philip R. Carroll (70) Chief Compliance Officer Vice President, Neuberger Berman since 2002; Associate
since 2004 General Counsel, Neuberger Berman since 2001; Director-
Mutual Fund Compliance, NB Management since 1995;
Chief Legal Officer, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (ten since 2003 and four since
2004); Chief Compliance Officer, fourteen registered
investment companies for which NB Management acts
as investment manager and administrator (fourteen since
2004) and Lehman Brothers/First Trust Income
Opportunity Fund.
Robert Conti (48) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003,
formerly, Vice President, Neuberger Berman from 1999
until 2003; Senior Vice President, NB Management since
2000; formerly, Controller, NB Management until 1996;
formerly, Treasurer, NB Management from 1996 until
1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Brian J. Gaffney (51) Vice President since 2000 Managing Director, Neuberger Berman since 1999;
Senior Vice President, NB Management since 2000;
formerly, Vice President, NB Management from 1997
until 1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Sheila R. James (39) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1991 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
24
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------------------------------------------------------
Kevin Lyons (49) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1993 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (ten since 2003 and four since 2004).
John M. McGovern (34) Assistant Treasurer since 2002 Vice President, Neuberger Berman since January 2004;
Employee, NB Management since 1993; Assistant
Treasurer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
Barbara Muinos (46) Treasurer and Principal Financial Vice President, Neuberger Berman since 1999; formerly,
and Accounting Officer since 2002; Assistant Vice President, NB Management from 1993 to
prior thereto, Assistant Treasurer 1999; Treasurer and Principal Financial and Accounting
since 1996 Officer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004); formerly, Assistant Treasurer, three registered
investment companies for which NB Management acts
as investment manager and administrator from 1996
until 2002.
Frederic B. Soule (58) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003;
formerly, Vice President, Neuberger Berman from 1999
until 2003; formerly, Vice President, NB Management
from 1995 until 1999; Vice President, fourteen registered
investment companies for which NB Management acts as
investment manager and administrator (three since 2000,
four since 2002, three since 2003, and four since 2004).
- -------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the By-Laws of the Trust, each officer elected by the Trustees
shall hold office until his or her successor shall have been elected and
qualified or until his or her earlier death, inability to serve, or
resignation. Officers serve at the pleasure of the Trustees and may be
removed at any time with or without cause.
(3) Except as otherwise indicated, each individual has held the positions
shown for at least the last five years.
25
Proxy Voting Policies and Procedures
- ------------------------------------
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available, without
charge, by calling 1-800-877-9700 (toll-free) and on the website of the
Securities and Exchange Commission, at www.sec.gov. Information regarding how
the Trust voted proxies relating to portfolio securities during the most recent
12-month period ended June 30 will also be available without charge, by calling
1-800-877-9700 (toll-free), on the website of the Securities and Exchange
Commission, at www.sec.gov, and on the Trust's website at www.nb.com.
Quarterly Portfolio Schedule
- ----------------------------
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange
Commission's website at www.sec.gov and may be reviewed and copied at the
Securities and Exchange Commission's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The information on Form N-Q is available upon request,
without charge, by calling 1-800-877-9700 (toll-free).
26
Annual Report
December 31, 2004
[LOGO]
NEUBURGER BERMAN
A Lehman Brothers Company
Neuberger Berman
Advisers
Management
Trust
- --------------------------------------------------------------------------------
Growth
Portfolio[RegTM]
B1015 02/05
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Growth Portfolio Managers' Commentary
- -------------------------------------
The Neuberger Berman AMT Growth Portfolio posted positive returns for calendar
year 2004, outperforming its benchmark, the Russell Midcap Growth Index.(2)
Our security selection within the Information Technology (IT), Consumer
Discretionary and Industrial sectors provided the largest contributions to
total returns for the year. Within IT, names that did well included Alliance
Data Systems (ADS) and Apple Computer Inc (AAPL). In Consumer Discretionary,
our emphasis on casinos and gaming was particularly additive to performance.
Industrial stocks that outperformed included JB Hunt Transport Services (JBHT)
and Corporate Executive Board (EXBD). Our emphasis on the services area of
Financials helped results, with strong performers including First Marblehead
(FMD) and Capitalsource Inc (CSE). Energy was again additive, as companies like
XTO Energy (XTO), with the ability to increase reserves or production of oil
and gas, generated strong returns. Although, in aggregate, our sector
allocation detracted from the year's results, our overweight in Telecom, one of
the strongest performing sectors, was additive.
On the downside, our stock selection within Health Care had the most negative
impact on relative portfolio performance. The environment for generic
pharmaceuticals was particularly weak given the lack of pricing power in the
industry. Our stock selection in Materials, representing 2-3% of the benchmark,
also hurt returns.
Looking ahead to 2005, we believe that economic headwinds should act to slow
economic growth from the 4% pace achieved in 2004. Tighter fiscal and monetary
policies, slowing Asian economies, the need for U.S. consumers to increase
savings, higher energy costs and a normal mid-cycle deceleration all may come
into play. This is not to say that we believe the economy is in much danger of
decline. "Real" (after inflation) interest rates remain historically low, while
the Fed remains on a "measured pace" to raise rates. In addition, corporate
spreads and the yield curve indicate continued economic expansion, and
corporate hiring and investment plans appear intact.
As a result, we believe that 2005 should prove favorable for equity investors.
Although, in our opinion, keeping inflation in check is a key to further equity
market advancement, the equity market's technicals appear healthy in the near
term. After the strong late-year market gains, sparked by the Presidential
election results and drop in crude oil prices, we expect stocks to pull back in
the weeks ahead, before moving higher again. Because we believe that the market
remains in a rally phase, we want to be positioned more aggressively than the
indices and our competition, in stocks we believe have more potential upside in
a rising market.
If the market advances in the first part of 2005, however, we currently
anticipate making rotational changes in the portfolio into more defensive
areas, such as Consumer Staples and Health Care. Currently, we are neutrally
weighted in Materials and Industrials, and underweight in Consumer Staples and
Utilities. Although the Information Technology and Energy sectors are both
neutrally weighted in the portfolio, we expect to be sellers of technology and
buyers of energy over the longer term.
Sincerely,
/s/ Jon D. Brorson
JON D. BRORSON
PORTFOLIO MANAGER AND
GROWTH EQUITY GROUP TEAM LEADER
/s/ Kenneth J. Turek
KENNETH J. TUREK
PORTFOLIO MANAGER
1
Growth Portfolio Managers' Commentary cont'd
- --------------------------------------------
Average Annual Total Return(1)
- ---------------------------------------------------------------------------
Growth Russell Midcap(R)
Portfolio Growth(2) S&P 500(2)
- ---------------------------------------------------------------------------
1 Year 16.60% 15.48% 10.87%
- ---------------------------------------------------------------------------
5 Year (8.29%) (3.36%) (2.30%)
- ---------------------------------------------------------------------------
10 Year 7.66% 11.23% 12.07%
- ---------------------------------------------------------------------------
Life of Fund 9.58% N/A 13.17%
- ---------------------------------------------------------------------------
Inception Date 09/10/1984
- ---------------------------------------------------------------------------
Performance data quoted represent past performance, which is no guarantee of
future results. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed may be worth more or less
than their original cost. Results are shown on a "total return" basis and
include reinvestment of all dividends and capital gain distributions.
Current performance may be lower or higher than the performance data quoted.
For performance data current to the most recent month end, please visit
www.nb.com/performance.
Comparison of a $10,000 Investment
Growth Russell Midcap(R)
Portfolio Growth S&P 500
- -------------------------------------------------------------------
12/31/1994 $10,000 $10,000 $10,000
- -------------------------------------------------------------------
12/31/1995 $13,173 $13,398 $13,753
- -------------------------------------------------------------------
12/31/1996 $14,377 $15,739 $16,909
- -------------------------------------------------------------------
12/31/1997 $18,547 $19,287 $22,548
- -------------------------------------------------------------------
12/31/1998 $21,427 $22,733 $28,992
- -------------------------------------------------------------------
12/31/1999 $32,225 $34,393 $35,091
- -------------------------------------------------------------------
12/31/2000 $28,468 $30,352 $31,897
- -------------------------------------------------------------------
12/31/2001 $19,826 $24,236 $28,109
- -------------------------------------------------------------------
12/31/2002 $13,647 $17,594 $21,899
- -------------------------------------------------------------------
12/31/2003 $17,933 $25,109 $28,177
- -------------------------------------------------------------------
12/31/2004 $20,910 $28,995 $31,241
- -------------------------------------------------------------------
The chart shows the value of a hypothetical $10,000 investment in the Fund over
the past 10 fiscal years, or since the Fund's inception, if it has not operated
or 10 years. The result is compared with benchmarks, which may include a
broad-based market index and/or a narrower index. Please note that market
indexes do not include expenses. All results include the reinvestment of
dividends and capital gain distributions. Results represent past performance and
do not indicate future results. The chart and table do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
Please see Endnotes for additional information.
Industry Diversification
(% of Industry Holdings)
Aerospace ............................. 0.6%
Basic Materials ....................... 0.5
Biotechnology ......................... 5.1
Business Services ..................... 9.0
Capital Equipment ..................... 0.8
Communications Equipment .............. 2.0
Computer Related ...................... 1.2
Defense ............................... 0.5
Diagnostic Equipment .................. 1.1
Electrical & Electronics .............. 0.5
Energy ................................ 4.6
Entertainment ......................... 1.7
Finance ............................... 3.5
Financial Services .................... 6.1
Food & Beverage ....................... 1.1
Food Products ......................... 0.6
Health Care ........................... 7.1
Industrial ............................ 7.5
Industrial Gases ...................... 0.5
Instruments ........................... 1.1
Internet .............................. 0.7
Leisure ............................... 3.9
Media ................................. 0.5
Medical Equipment ..................... 3.6
Oil & Gas ............................. 0.4
Packing & Containers .................. 1.2
Retail ................................ 11.4
Semiconductors ........................ 3.1
Software .............................. 4.6
Technology ............................ 8.6
Telecommunications .................... 5.2
Transportation ........................ 2.7
Short-Term Investments ................ 18.9
Liabilities, less cash, receivables and
other assets ...................... (19.9)
2
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Endnotes
- --------
1. 16.60%, (8.29%) and 7.66% were the average annual total returns for
the 1-, 5- and 10-year periods ended December 31, 2004. Neuberger
Berman Management Inc. ("NBMI") has agreed to absorb certain expenses
of the AMT Portfolios. Without this arrangement, which is subject to
change, the total returns of the Portfolios would be less. Total
return includes reinvestment of dividends and capital gain
distributions. Performance data quoted represent past performance and
the investment return and principal value of an investment will
fluctuate so that the shares, when redeemed, may be worth more or less
than original cost. The performance information does not reflect fees
and expenses of the insurance companies.
2. The Russell Midcap[RegTM] Growth Index measures the performance of
those Russell Midcap[RegTM] Index companies with higher pric%e-to-book
ratios and higher forecasted growth values. The Russell Midcap Index
measures the performance of the 800 smallest companies in the Russell
1000[RegTM] Index, which represents approximately 26% of the total
market capitalization of the Russell 1000 Index (which, in turn,
consists of the 1,000 largest U.S. companies, based on market
capitalization). The S&P 500 Index is widely regarded as the standard
for measuring large-cap U.S. stock market performance and includes a
representative sample of leading companies in leading industries.
Please note that indices do not take into account any fees and
expenses of investing in the individual securities that they track,
and that individuals cannot invest directly in any index. Data about
the performance of these indices are prepared or obtained by NBMI and
include reinvestment of all dividends and capital gain distributions.
The Portfolio may invest in many securities not included in the
above-described indices.
The investments for the Portfolio are managed by the same portfolio
manager(s) who manage one or more other mutual funds that have
similar names, investment objectives and investment styles as the
Portfolio. You should be aware that the Portfolio is likely to
differ from the other mutual funds in size, cash flow pattern and
tax matters. Accordingly, the holdings and performance of the
Portfolio can be expected to vary from those of the other mutual
funds.
The composition, industries and holdings of the Portfolio are subject
to change.
Shares of the separate Portfolios of Neuberger Berman Advisers
Management Trust are sold only through the currently effective
prospectus and are not available to the general public. Shares of
this Portfolio may be purchased only by life insurance companies
to be used with their separate accounts that fund variable
annuity and variable life insurance policies and by qualified
pension and retirement plans.
(C) 2005 Neuberger Berman Management Inc., distributor. All
rights reserved.
3
Information About Your Fund's Expenses
- --------------------------------------
This table is designed to provide information regarding costs related to your
investments. All mutual funds incur operating expenses, which include
management fees, administrative services and shareholder reports among others.
The following example is based on an investment of $1,000 made at the beginning
of the period shown and held for the entire period. The table illustrates the
fund's costs in two ways:
Actual Expenses: The first section
of the table provides
information about actual
account values and actual
expenses in dollars. You may
use the information in this
line, together with the
amount you invested, to
estimate the expenses you
paid over the period.
Hypothetical Example for Comparison Purposes: The second section of the
table provides information
about hypothetical account
values and hypothetical
expenses based on the Fund's
actual expense ratio and an
assumed rate of return at 5%
per year before expenses.
This return is not the
Fund's actual return. The
hypothetical account values
and expenses may not be used
to estimate the actual
ending account balance or
expenses you paid for the
period. You may use this
information to compare the
ongoing costs of investing
in this Fund versus other
funds. To do so, compare
this 5% hypothetical example
with the 5% hypothetical
examples that appear in the
shareholder reports of other
funds.
Expense Information As of 12/31/04 (Unaudited)
- ----------------------------------------------
Neuberger Berman Advisers Management Trust Growth Portfolio
- -----------------------------------------------------------
Beginning Ending Expenses Paid
Actual Account Value Account Value During the Period*
Class I $1,000 $ 1,084.80 $ 4.98
Hypothetical (5% annual return before expenses)**
Class I $1,000 $ 1,020.36 $ 4.82
* Expenses are equal to the expense ratio for the class, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect the
one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying
the number of days in the most recent half year divided by 366.
4
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Growth Portfolio
- ----------------------------------------
Number of Shares Market Value+
Common Stocks (101.0%)
Aerospace (0.6%)
33,000 Rockwell Collins $1,301,520
Basic Materials (0.5%)
20,000 Nucor Corp. 1,046,800
Biotechnology (5.1%)
75,500 Celgene Corp. 2,003,015*
37,000 Genzyme Corp. 2,148,590*
86,000 Gilead Sciences 3,009,140*
30,000 Martek Biosciences 1,536,000*
93,000 Protein Design Labs 1,921,380*\P
-----------
10,618,125
Business Services (9.0%)
113,500 Alliance Data Systems 5,388,980*
62,000 Corporate Executive Board 4,150,280
40,000 Getty Images 2,754,000*
55,000 Hewitt Associates 1,760,550*\P
22,500 NAVTEQ 1,043,100*
35,000 Robert Half International 1,030,050
56,500 Stericycle, Inc. 2,596,175*
-----------
18,723,135
Capital Equipment (0.8%)
33,300 Terex Corp. 1,586,745*
Communications Equipment (2.0%)
39,000 F5 Networks 1,900,080*
83,000 Juniper Networks 2,256,770*
-----------
4,156,850
Computer Related (1.2%)
39,500 Apple Computer 2,543,800*
Defense (0.5%)
16,500 CACI International 1,124,145*
Diagnostic Equipment (1.1%)
82,500 Cytyc Corp. 2,274,525*
Electrical & Electronics (0.5%)
41,000 Jabil Circuit 1,048,780*
Energy (4.6%)
37,500 Canadian Natural
Resources 1,603,875
29,500 National-Oilwell 1,041,055*
16,000 Peabody Energy 1,294,560
39,500 Smith International 2,149,195*
99,716 XTO Energy 3,527,952
-----------
9,616,637
Entertainment (1.7%)
63,000 Station Casinos 3,444,840
Finance (3.5%)
95,500 CapitalSource Inc. 2,451,485*\P
8,500 Chicago Mercantile
Exchange 1,943,950\P
51,000 First Marblehead 2,868,750*\P
-----------
7,264,185
Number of Shares Market Value+
Financial Services (6.1%)
9,200 Advance America Cash
Advance Centers $ 210,680*
117,500 Ameritrade Holding 1,670,850*
64,500 Investors Financial
Services 3,223,710
22,500 Jackson Hewitt Tax Service 568,125
36,750 Legg Mason 2,692,305\P
37,300 Moody's Corp. 3,239,505
64,500 Providian Financial 1,062,315*
------------
12,667,490
Food & Beverage (1.1%)
28,000 Constellation Brands 1,302,280*
18,800 Hershey Foods 1,044,152
------------
2,346,432
Food Products (0.6%)
55,500 Archer-Daniels-Midland 1,238,205
Health Care (7.1%)
16,000 AMERIGROUP Corp. 1,210,560*
55,000 C. R. Bard 3,518,900
20,000 Cerner Corp. 1,063,400*
32,000 Invitrogen Corp. 2,148,160*\P
20,500 PacifiCare Health Systems 1,158,660*
56,500 Varian Medical Systems 2,443,060*
68,000 VCA Antech 1,332,800*
24,300 Zimmer Holdings 1,946,916*
------------
14,822,456
Industrial (7.5%)
63,000 Danaher Corp. 3,616,830\P
65,800 Donaldson Co. 2,143,764
29,500 Eaton Corp. 2,134,620
54,500 Fastenal Co. 3,355,020\P
20,500 Harman International
Industries 2,603,500\P
26,500 W.W. Grainger 1,765,430
------------
15,619,164
Industrial Gases (0.5%)
17,500 Air Products & Chemicals 1,014,475
Instruments (1.1%)
79,000 Thermo Electron 2,385,010*
Leisure (3.9%)
39,500 Marriott International 2,487,710\P
28,000 MGM Mirage 2,036,720*
67,500 Royal Caribbean Cruises 3,674,700\P
------------
8,199,130
Media (0.5%)
34,400 Univision Communications 1,006,888*
Medical Equipment (3.6%)
51,500 Kinetic Concepts 3,929,450*\P
59,500 Kyphon Inc. 1,532,720*
38,800 ResMed Inc. 1,982,680*\P
------------
7,444,850
See Notes to Schedule of Investments 5
Schedule of Investments Growth Portfolio cont'd
- -----------------------------------------------
Number of Shares Market Value+
Oil & Gas (0.4%)
20,000 Quicksilver Resources $ 735,600*\P
Packing & Containers (1.2%)
100,000 Pactiv Corp. 2,529,000*
Retail (11.4%)
35,500 Abercrombie & Fitch 1,666,725
44,500 Bed Bath & Beyond 1,772,435*
75,500 Coach, Inc. 4,258,200*
15,500 Dick's Sporting Goods 544,825*
17,500 Fortune Brands 1,350,650
22,500 Nordstrom, Inc. 1,051,425
105,000 PETsMART, Inc. 3,730,650
67,000 Staples, Inc. 2,258,570
37,000 Starbucks Corp. 2,307,320*
28,000 Whole Foods Market 2,669,800
62,000 Williams-Sonoma 2,172,480*
------------
23,783,080
Semiconductors (3.1%)
45,900 Altera Corp. 950,130*
44,500 Marvell Technology Group 1,578,415*
71,500 Microchip Technology 1,906,190
120,100 Microsemi Corp. 2,084,936*
------------
6,519,671
Software (5.3%)
30,500 Adobe Systems 1,913,570
35,000 Cognos, Inc. 1,542,100*
48,000 McAfee Inc. 1,388,640*
73,500 Mercury Interactive 3,347,925*\P
207,000 TIBCO Software 2,761,380*
------------
10,953,615
Technology (8.6%)
55,500 ATI Technologies 1,076,145*
39,000 Autodesk, Inc. 1,480,050
72,500 Check Point Software
Technologies 1,785,675*
91,500 Cognizant Technology
Solutions 3,873,195*
36,000 Macromedia, Inc. 1,120,320*
18,500 NCR Corp. 1,280,755*
16,000 VeriSign, Inc. 536,320*
118,000 Zebra Technologies 6,641,040*
------------
17,793,500
Number of Shares Market Value+
Telecommunications (5.2%)
70,000 American Tower $ 1,288,000*
76,500 Avaya Inc. 1,315,800*
223,000 Nextel Partners 4,357,420*\P
79,500 Western Wireless 2,329,350*\P
40,000 XM Satellite Radio
Holdings 1,504,800*\P
------------
10,795,370
Transportation (2.7%)
36,500 C.H. Robinson Worldwide 2,026,480
78,400 J.B. Hunt Transport
Services 3,516,240
------------
5,542,720
Total Common Stocks
(Cost $148,275,991)
210,146,743
------------
Principal Amount
Short-Term Investments (18.9%)
$39,393,450 N&B Securities Lending
Quality Fund, LLC 39,393,450++
1 Neuberger Berman Prime
Money Fund Trust Class 1@
------------
Total Short-Term Investments
(Cost $39,393,451) 39,393,451#
------------
Total Investments (119.9%)
(Cost $187,669,442) 249,540,194##
Liabilities, less cash, receivables and
other assets [(19.9%)] (41,401,649)
--------------
Total Net Assets (100.0%) $208,138,545
---------------
See Notes to Schedule of Investments 6
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Schedule of Investments Growth Portfolio
- -------------------------------------------------
+ Investments in equity securities by Neuberger Berman Advisers Management
Trust Growth Portfolio (the "Fund") are valued at the latest sale price
where that price is readily available; securities for which no sales were
reported, unless otherwise noted, are valued at the mean between the
closing bid and asked prices. Securities traded primarily on the NASDAQ
Stock Market are normally valued by the Fund at the NASDAQ Official Closing
Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most
recently reported price as of 4:00:02 p.m., Eastern time, unless that price
is outside the range of the "inside" bid and asked prices (i.e., the bid
and asked prices that dealers quote to each other when trading for their
own accounts); in that case, NASDAQ will adjust the price to equal the
inside bid or asked price, whichever is closer. Because of delays in
reporting trades, the NOCP may not be based on the price of the last trade
to occur before the market closes. The Fund values all other securities by
a method the Board of Trustees of Neuberger Berman Advisers Management
Trust (the "Board") believes accurately reflects fair value. Numerous
factors may be considered when determining the fair value of a security,
including available analyst, media or other reports, trading in futures or
ADRs and whether the issuer of the security being fair valued has other
securities outstanding. Foreign security prices are furnished by
independent quotation services and expressed in local currency values.
Foreign security prices are translated from the local currency into U.S.
dollars using the exchange rate as of 12:00 noon, Eastern time. The Board
has approved the use of FT Interactive Data Corporation ("FT Interactive")
to assist in determining the fair value of the Fund's foreign equity
securities in the wake of certain significant events. When changes in the
value of a certain index suggest that the closing prices on the foreign
exchanges may no longer represent the amount that the Fund could expect to
receive for those securities, FT Interactive will provide adjusted prices
for certain foreign equity securities based on an analysis showing
historical correlations between the prices of those securities and changes
in the index. In the absence of precise information about the market values
of these foreign securities as of the close of the New York Stock Exchange,
the Board has determined on the basis of available data that prices
adjusted in this way are likely to be closer to the prices the Fund could
realize on a current sale than are the prices of those securities
established at the close of the foreign markets in which the securities
primarily trade. However, fair value prices are necessarily estimates, and
there is no assurance that such a price will be at or close to the price at
which the security next trades. Short-term debt securities with less than
60 days until maturity may be valued at cost which, when combined with
interest earned, approximates market value.
# At cost, which approximates market value.
## At December 31, 2004, the cost of investments for U.S. Federal income tax
purposes was $187,982,254. Gross unrealized appreciation of investments was
$62,506,346 and gross unrealized depreciation of investments was $948,406,
resulting in net unrealized appreciation of $61,557,940, based on cost for
U.S. Federal income tax purposes.
* Non-income producing security.
\P All or a portion of this security is on loan (see Note A of Notes to
Financial Statements).
@ Neuberger Berman Prime Money Fund ("Prime Money") is also managed by
Neuberger Berman Management Inc. (see Notes A & F of Notes to Financial
Statements) and may be considered an affiliate since it has the same
officers, Board members, and investment manager as the Fund and because, at
times, the Fund may own 5% or more of the outstanding voting securities of
Prime Money.
++ The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans. The Fund's shares in the
Quality Fund are non-voting. However, because all shares of the Quality
Fund are held by funds in the related investment management complex, the
Quality Fund may be considered an affiliate of the Fund (see Notes A & F of
Notes to Financial Statements).
See Notes to Financial Statements 7
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Assets and Liabilities
- -----------------------------------
------------
Growth
Neuberger Berman Advisers Management Trust Portfolio
Assets
Investments in securities, at market value*+ (Notes A & F)-see Schedule of Investments:
- ----------------------------------------------------------------------------------------
Unaffiliated issuers $ 210,146,743
- ----------------------------------------------------------------------------------------
Affiliated issuers 39,393,451
- ----------------------------------------------------------------------------------------
249,540,194
- ----------------------------------------------------------------------------------------
Dividends and interest receivable 41,181
- ----------------------------------------------------------------------------------------
Receivable for Fund shares sold 190
- ----------------------------------------------------------------------------------------
Prepaid expenses and other assets 11,471
- ----------------------------------------------------------------------------------------
Total Assets 249,593,036
- ----------------------------------------------------------------------------------------
Liabilities
Due to custodian 1,806,072
- ----------------------------------------------------------------------------------------
Payable for collateral on securities loaned (Note A) 39,393,450
- ----------------------------------------------------------------------------------------
Payable for Fund shares redeemed 51,729
- ----------------------------------------------------------------------------------------
Payable to investment manager-net (Notes A & B) 93,341
- ----------------------------------------------------------------------------------------
Payable to administrator (Note B) 50,924
- ----------------------------------------------------------------------------------------
Accrued expenses and other payables 58,975
- ----------------------------------------------------------------------------------------
Total Liabilities 41,454,491
- ----------------------------------------------------------------------------------------
Net Assets at value $ 208,138,545
- ----------------------------------------------------------------------------------------
Net Assets consist of:
Paid-in capital $ 430,606,759
- ----------------------------------------------------------------------------------------
Accumulated net realized gains (losses) on investments (284,339,010)
- ----------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) in value of investments 61,870,796
- ----------------------------------------------------------------------------------------
Net Assets at value $ 208,138,545
- ----------------------------------------------------------------------------------------
Shares Outstanding ($.001 par value; unlimited shares authorized) 17,128,926
- ----------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share $ 12.15
- ----------------------------------------------------------------------------------------
+Securities on loan, at market value:
Unaffiliated issuers $ 38,180,289
- ----------------------------------------------------------------------------------------
*Cost of Investments:
Unaffiliated issuers $ 148,275,991
- ----------------------------------------------------------------------------------------
Affiliated issuers 39,393,451
- ----------------------------------------------------------------------------------------
Total cost of investments $ 187,669,442
- ----------------------------------------------------------------------------------------
See Notes to Financial Statements 8
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST FOR THE YEAR ENDED DECEMBER 31, 2004
Statement of Operations
- -----------------------
------------
Growth
Neuberger Berman Advisers Management Trust Portfolio
Investment Income
Income (Note A):
Dividend income-unaffiliated issuers $ 739,757
- --------------------------------------------------------------------------------------------------------
Income from securities loaned-affiliated issuer (Note F) 138,014
- --------------------------------------------------------------------------------------------------------
Interest income 740
- --------------------------------------------------------------------------------------------------------
Income from investments in affiliated issuers (Note F) 6,436
- --------------------------------------------------------------------------------------------------------
Foreign taxes withheld (4,437)
- --------------------------------------------------------------------------------------------------------
Total income 880,510
- --------------------------------------------------------------------------------------------------------
Expenses:
Investment management fee (Notes A & B) 1,119,345
- --------------------------------------------------------------------------------------------------------
Administration fee (Note B) 610,552
- --------------------------------------------------------------------------------------------------------
Audit fees 38,731
- --------------------------------------------------------------------------------------------------------
Custodian fees (Note B) 114,894
- --------------------------------------------------------------------------------------------------------
Insurance expense 5,623
- --------------------------------------------------------------------------------------------------------
Legal fees 37,346
- --------------------------------------------------------------------------------------------------------
Shareholder reports 840
- --------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 25,266
- --------------------------------------------------------------------------------------------------------
Miscellaneous 4,377
- --------------------------------------------------------------------------------------------------------
Total expenses 1,956,974
Investment management fee waived (Note A) (622)
Expenses reduced by custodian fee expense offset and commission recapture arrangements (34,097)
- --------------------------------------------------------------------------------------------------------
(Note B)
- --------------------------------------------------------------------------------------------------------
Total net expenses 1,922,255
- --------------------------------------------------------------------------------------------------------
Net investment income (loss) (1,041,745)
- --------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers 15,038,329
-----------------------------------------------------------------------------------------------------
Foreign currency (10)
-----------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities 17,202,445
-----------------------------------------------------------------------------------------------------
Foreign currency 44
-----------------------------------------------------------------------------------------------------
Net gain (loss) on investments 32,240,808
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 31,199,063
- --------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 9
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Changes in Net Assets
- ----------------------------------
Growth Portfolio
--------------------------------
Neuberger Berman Advisers Management Trust Year Ended December 31,
2004 2003
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss) $ (1,041,745) $ (1,143,607)
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 15,038,319 19,742,814
- ---------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments 17,202,489 33,843,552
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 31,199,063 52,442,759
- ---------------------------------------------------------------------------------------------------------
From Fund Share Transactions (Note D):
Proceeds from shares sold 8,526,677 54,281,902
- ---------------------------------------------------------------------------------------------------------
Payments for shares redeemed (46,456,630) (77,700,782)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) from Fund share transactions (37,929,953) (23,418,880)
- ---------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets (6,730,890) 29,023,879
Net Assets:
Beginning of year 214,869,435 185,845,556
- ---------------------------------------------------------------------------------------------------------
End of year $ 208,138,545 $ 214,869,435
- ---------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) at end of year $ - $ -
- ---------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 10
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Financial Statements Growth Portfolio
- ----------------------------------------------
Note A--Summary of Significant Accounting Policies:
1 General: Growth Portfolio (the "Fund") is a separate operating series
of Neuberger Berman Advisers Management Trust (the "Trust"), a
Delaware statutory trust organized pursuant to a Trust Instrument
dated May 23, 1994. The Trust is currently comprised of eleven
separate operating series (each a "Series," collectively, the "Funds")
each of which (except Focus Portfolio) is diversified. The Trust is
registered as an open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act"), and its
shares are registered under the Securities Act of 1933, as amended.
The Fund currently offers only Class I shares. The Board of Trustees
of the Trust (the "Board") may establish additional series or classes
of shares without the approval of shareholders.
The assets of each Series belong only to that Series, and the
liabilities of each Series are borne solely by that Series and no
other.
The preparation of financial statements in accordance with U.S.
generally accepted accounting principles requires Neuberger
Berman Management Inc. ("Management") to make estimates and
assumptions at the date of the financial statements. Actual
results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in
the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars using the exchange rate as of 12:00 noon, Eastern
time, to determine the value of investments, other assets and
liabilities. Purchase and sale prices of securities, and income and
expenses, are translated into U.S. dollars at the prevailing rate of
exchange on the respective dates of such transactions. Net unrealized
foreign currency gain (loss) arises from changes in the value of
assets and liabilities, other than investments in securities, as a
result of changes in exchange rates and is stated separately in the
Statement of Operations.
4 Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the
Fund becomes aware of the dividends. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income, including accretion of original
issue discount, where applicable, and accretion of discount on
short-term investments, is recorded on the accrual basis. Realized
gains and losses from securities transactions and foreign currency
transactions, if any, are recorded on the basis of identified cost and
stated separately in the Statement of Operations. Included in net
realized gain (loss) on investment securities sold are proceeds from
the settlements of class action litigation in which the Fund
participated as a plaintiff. The amount of such proceeds for the year
ended December 31, 2004 was $108,002.
5 Income tax information: The Funds are treated as separate entities for
U.S. Federal income tax purposes. It is the policy of the Fund to
continue to qualify as a regulated investment company by complying
with the requirements of Subchapter M of the Internal Revenue Code
applicable to regulated
11
Notes to Financial Statements Growth Portfolio cont'd
- -----------------------------------------------------
investment companies and to distribute substantially all of its
earnings to its shareholders. Therefore, no Federal income or excise
tax provision is required.
Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from
generally accepted accounting principles. These differences are
primarily due to differing treatments of income and gains on various
investment securities held by the Fund, timing differences and
differing characterization of distributions made by the Fund as a
whole. The Fund may also utilize earnings and profits distributed to
shareholders on redemption of shares as a part of the dividends paid
deduction for income tax purposes.
As determined on December 31, 2004, permanent differences resulting
primarily from different book and tax accounting for net operating
losses and foreign currency gains and losses, were reclassified at
year end. These reclassifications had no effect on net income, net
assets or net assets per share of the Fund.
As of December 31, 2004, the components of distributable earnings
(accumulated losses) on a U.S. Federal income tax basis were as
follows:
Undistributed Unrealized Loss
Ordinary Appreciation Carryforwards
Income (Loss) (Depreciation) and Deferrals Total
$ - $61,557,990 $(284,026,204) $(222,468,214)
The difference between book basis and tax basis distributable earnings
is attributable primarily to timing differences on wash sales.
To the extent the Fund's net realized capital gains, if any, can be
offset by capital loss carryforwards, it is the policy of the Fund not
to distribute such gains. As determined at December 31, 2004, the Fund
had unused capital loss carryforwards available for Federal income tax
purposes to offset net realized capital gains, if any, as follows:
Expiring in:
2009 2010
$213,906,407 $70,119,797
6 Dividends and distributions to shareholders: The Fund may earn income,
net of expenses, daily on its investments. Income dividends and
distributions from net realized capital gains, if any, generally are
distributed in October. Income dividends and capital gain
distributions to shareholders are recorded on the ex-dividend date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by
foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds.
Expenses directly attributable to a Series are charged to that Series.
Expenses of the Trust that are not directly attributed to a Series are
allocated among the Funds, on the basis of relative net assets, except
where a more appropriate allocation of expenses to each of the Funds
can otherwise be made fairly. Expenses borne by the complex of related
investment companies, which includes open-end and closed-end
investment companies for which Management serves as investment
manager, that are not directly attributed to a Series or the Trust,
are
12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
allocated among the Fund and the other investment companies in the
complex or series thereof, on the basis of relative net assets, except
where a more appropriate allocation of expenses to each investment
company in the complex or series thereof can otherwise be made fairly.
9 Security lending: Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund entered into a Securities
Lending Agreement ("Agreement") with Neuberger Berman, LLC
("Neuberger") on April 17, 2003. Securities loans involve certain
risks in the event a borrower should fail financially, including
delays or inability to recover the lent securities or foreclose
against the collateral. The investment manager, under the general
supervision of the Board, monitors the creditworthiness of the parties
to whom the Fund makes security loans. The Fund will not lend
securities on which covered call options have been written, or lend
securities on terms which would prevent the Fund from qualifying as a
regulated investment company. The Fund receives cash collateral equal
to at least 102% of the current market value of the loaned securities.
The Fund invests the cash collateral in the N&B Securities Lending
Quality Fund, LLC ("Quality Fund"), which is managed by State Street
Bank and Trust Company ("State Street") pursuant to guidelines
approved by the Trust's investment manager. Neuberger guaranteed a
certain amount of revenue to the Fund under the Agreement, and
received a portion of any revenue earned in excess of the guaranteed
amount as a lending agency fee. For the year ended December 31, 2004,
Neuberger did not receive any revenue under the Agreement.
The Agreement has been renewed and approved by the Board as of July 1,
2004 with substantially the same terms. Under this current Agreement,
Neuberger guarantees a certain amount of revenue to the Fund and
receives any revenue earned in excess of the guaranteed amount as a
lending agency fee. Income earned on the securities loaned, if any, is
reflected in the Statement of Operations under the caption Income from
securities loaned-affiliated issuer.
In February of 2005, it is likely that the Fund will change the
collateral investment vehicle from the Quality Fund, managed by State
Street, to a fund managed by Lincoln Capital, an affiliate, as
approved by the Board.
10 Repurchase agreements: The Fund may enter into repurchase agreements
with institutions that the Fund's investment manager has determined
are creditworthy. Each repurchase agreement is recorded at cost. The
Fund requires that the securities purchased in a repurchase agreement
be transferred to the custodian in a manner sufficient to enable the
Fund to assert a perfected security interest in those securities in
the event of a default under the repurchase agreement. The Fund
monitors, on a daily basis, the value of the securities transferred to
ensure that their value, including accrued interest, is greater than
amounts owed to the Fund under each such repurchase agreement.
11 Transactions with other funds managed by Neuberger Berman Management
Inc.: Pursuant to an Exemptive Order issued by the Securities and
Exchange Commission, the Fund may invest in the Neuberger Berman
Institutional Cash Fund (the "Cash Fund") and the Neuberger Berman
Prime Money Fund ("Prime Money"), affiliated funds, which are managed
by Management and have the same Board members as the Fund. The Cash
Fund and Prime Money each seeks to provide as high a level of current
income as is consistent with the preservation of capital and the
maintenance of liquidity. For any cash that
13
Notes to Financial Statements Growth Portfolio cont'd
- -----------------------------------------------------
the Fund invests in the Cash Fund or Prime Money, Management waives a
portion of its management fee equal to the management fee it receives
from the Cash Fund and Prime Money on those assets. For the year ended
December 31, 2004, such waived fees amounted to $619 and $3 for the
Cash Fund and Prime Money, respectively. For the year ended December
31, 2004, income earned on the investments of the Cash Fund and Prime
Money amounted to $6,356 and $80, respectively, and is reflected in
the Statement of Operations under the caption Income from investments
in affiliated issuers.
12 Indemnifications: Like many other companies, the Trust's
organizational documents provide that its officers and trustees are
indemnified against certain liabilities arising out of the performance
of their duties to the Trust. In addition, both in some of its
principal service contracts and in the normal course of its business,
the Trust enters into contracts that provide indemnifications to other
parties for certain types of losses or liabilities. The Trust's
maximum exposure under these arrangements is unknown as this could
involve future claims against the Trust.
Note B--Management Fees, Administration Fees, Distribution
Arrangements, and Other Transactions With Affiliates:
Fund shares are issued and redeemed in connection with investments in
and payments under certain variable annuity contracts and variable
life insurance policies issued through separate accounts of life
insurance companies and are also offered directly to qualified pension
and retirement plans.
The Fund retains Management as its investment manager under a
Management Agreement. For such investment management services, the
Fund pays Management a fee at the annual rate of 0.55% of the first
$250 million of the Fund's average daily net assets, 0.525% of the
next $250 million, 0.50% of the next $250 million, 0.475% of the next
$250 million, 0.45% of the next $500 million, 0.425% of the next $2.5
billion, and 0.40% of average daily net assets in excess of $4
billion.
The Fund retains Management as its administrator under an
Administration Agreement. The Fund pays Management an administration
fee at the annual rate of 0.30% of its average daily net assets under
this agreement. Additionally, Management retains State Street as its
sub-administrator under a Sub-Administration Agreement. Management
pays State Street a fee for all services received under this
agreement.
The Board adopted a non-fee distribution plan for the Fund.
Management has contractually undertaken through December 31, 2008 to
reimburse the Fund for its operating expenses (excluding the fees
payable to Management, interest, taxes, brokerage commissions,
extraordinary expenses, and transaction costs) ("Operating Expenses")
which exceed, in the aggregate, 1.00% per annum of the Fund's average
daily net assets (the "Expense Limitation"). For the year ended
December 31, 2004, no reimbursement to the Fund was required. The Fund
has agreed to repay Management through December 31, 2011 for its
excess Operating Expenses previously reimbursed by Management, so long
as its annual Operating Expenses during that period do not exceed its
Expense Limitation, and the repayment is made within three years after
the year in which Management issued the reimbursement. During the year
ended December 31, 2004, there was no reimbursement to Management
14
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
under this agreement. At December 31, 2004, the Fund has no contingent
liability to Management under this agreement.
On October 31, 2003, Management and Neuberger, a member firm of the
New York Stock Exchange and sub-adviser to the Fund, became indirect
wholly-owned subsidiaries of Lehman Brothers Holdings Inc. ("Lehman"),
a publicly-owned holding company. Neuberger is retained by Management
to furnish it with investment recommendations and research information
without added cost to the Fund. Several individuals who are officers
and/or Trustees of the Trust are also employees of Neuberger and/or
Management.
On July 1, 2003, the Fund entered into a commission recapture program,
which enables it to pay some of its operational expenses by recouping
a portion of the commissions it pays to a broker that is not a related
party of the Fund. Expenses paid through this program may include
costs of custodial, transfer agency or accounting services. For the
year ended December 31, 2004, the impact of this arrangement was a
reduction of expenses of $34,020.
The Fund has an expense offset arrangement in connection with its
custodian contract. For the year ended December 31, 2004, the impact
of this arrangement was a reduction of expenses of $77.
Note C--Securities Transactions:
During the year ended December 31, 2004, there were purchase and sale
transactions (excluding short-term securities) of $169,583,313 and
$206,145,170, respectively.
During the year ended December 31, 2004, brokerage commissions on
securities transactions amounted to $526,361, of which Neuberger
received $0, Lehman received $96,582, and other brokers received
$429,779.
Note D--Fund Share Transactions:
Share activity for the years ended December 31, 2004, and December 31,
2003 was as follows:
For the Year Ended December 31,
2004 2003
Shares Sold 794,788 5,950,038
Shares Redeemed (4,284,573) (8,765,385)
------------ -------------
Total (3,489,785) (2,815,347)
------------- -------------
15
Notes to Financial Statements Growth Portfolio cont'd
- -----------------------------------------------------
Note E--Line of Credit:
At December 31, 2004, the Fund was a participant in a single
committed, unsecured $150,000,000 line of credit with State Street, to
be used only for temporary or emergency purposes. Interest is charged
on borrowings under this agreement at the overnight Federal Funds Rate
plus 0.50% per annum. A facility fee of 0.10% per annum of the
available line of credit is charged, of which the Fund has agreed to
pay its pro rata share, based on the ratio of its individual net
assets to the net assets of all participants at the time the fee is
due and payable. The fee is paid quarterly in arrears. No compensating
balance is required. Other investment companies managed by Management
also participate in this line of credit on the same terms. Because
several investment companies participate, there is no assurance that
the Fund will have access to all or any part of the $150,000,000 at
any particular time. The Fund had no loans outstanding pursuant to
this line of credit at December 31, 2004, nor had the Fund utilized
this line of credit at any time prior to that date.
Note F--Investments in Affiliates*:
Income from
Investments
Balance of Gross Balance of in Affiliated
Shares Held Purchases Gross Sales Shares Held Value Issuers
December 31, and and December 31, December 31, Included in
Name of Issuer 2003 Additions Reductions 2004 2004 Total Income
N&B Securities Lending
Quality Fund, LLC ** 35,030,500 10,808,815,450 10,804,452,500 39,393,450 $39,393,450 $138,014
Neuberger Berman
Institutional Cash Fund
Trust Class*** 640,497 46,996,895 47,637,392 - - 6,356
Neuberger Berman
Prime Money Fund Trust
Class*** - 743,836 743,835 1 1 80
- --------
Total $39,393,451 $144,450
=========== ========
* Affiliated issuers, as defined in the 1940 Act, include issuers in
which the Fund held 5% or more of the outstanding voting securities.
** The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash
the Fund receives as collateral for securities loans. The Fund's
shares in the Quality Fund are non-voting. However, because all shares
of the Quality Fund are held by funds in the related investment
management complex, the Quality Fund may be considered an affiliate of
the Fund.
*** Neuberger Berman Institutional Cash Fund (the "Cash Fund") and
Neuberger Berman Prime Money Fund ("Prime Money") are also managed by
Neuberger Berman Management Inc. and may be considered affiliates
since they have the same officers, Board members, and investment
manager as the Fund and because, at times, the Fund may own 5% or more
of the outstanding voting securities of the Cash Fund or Prime Money,
respectively.
16
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Financial Highlights Growth Portfolio+
- --------------------------------------
The following table includes selected data for a share outstanding throughout
each year and other performance information derived from the Financial
Statements.++
Year Ended December 31,
-------------------------------------------------------------------
2004 2003 2002 2001 2000
Net Asset Value, Beginning of Year $ 10.42 $ 7.93 $ 11.52 $ 30.65 $ 37.27
------- ------- ------- ------- -------
Income From Investment Operations:
Net Investment Income (Loss) (.06) (.05) (.06) (.07) (.17)
Net Gains or Losses on Securities
(both realized and unrealized) 1.79 2.54 (3.53) (7.41) (3.16)
------- ------- ------- ------- -------
Total From Investment Operations 1.73 2.49 (3.59) (7.48) (3.33)
------- ------- ------- ------- -------
Less Distributions From:
Net Capital Gains - - - (11.65) (3.29)
------- ------- ------- ------- -------
Net Asset Value, End of Year $ 12.15 $ 10.42 $ 7.93 $ 11.52 $ 30.65
------- ------- ------- ------- -------
Total Return++ +16.60% +31.40% -31.16% -30.36% -11.66%
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $ 208.1 $ 214.9 $ 185.8 $ 356.2 $ 640.6
Ratio of Gross Expenses to Average Net Assets# .96% .94% .96% .89% .90%
Ratio of Net Expenses to Average Net Assets .94%[sec] .93%[sec] .96% .89% .90%
Ratio of Net Investment Income (Loss) to Average Net Assets (.51)% (.58)% (.65)% (.50)% (.45)%
Portfolio Turnover Rate 83% 149% 97% 91% 125%
See Notes to Financial Highlights 17
Notes to Financial Highlights Growth Portfolio
- ----------------------------------------------
+ The per share amounts and ratios which are shown reflect income and
expenses, including the Fund's proportionate share of AMT Growth
Investment's income and expenses through April 30, 2000 under the
prior master/feeder fund structure.
++ Total return based on per share net asset value reflects the effects
of changes in net asset value on the performance of the Fund during
each fiscal period and assumes dividends and other distributions, if
any, were reinvested. Results represent past performance and do not
guarantee future results. Current returns may be lower or higher than
the performance data quoted. Investment returns and principal may
fluctuate and shares when redeemed may be worth more or less than
original cost. Total return would have been lower if Management had
not waived certain expenses. The total return information shown does
not reflect charges and other expenses that apply to the separate
account or the related insurance policies, and the inclusion of these
charges and other expenses would reduce the total return for all
fiscal periods shown. Performance data current to the most recent
month-end are available at www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
++ The per share amounts which are shown have been computed based on the
average number of shares outstanding during each fiscal period.
[sec] After waiver of a portion of the investment management fee. Had the
investment manager not undertaken such action, the annualized ratios
of net expenses to average daily net assets would have been:
Year Ended December 31,
2004 2003
0.94% 0.93%
18
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Report of Independent Registered Public Accounting Firm
- -------------------------------------------------------
To the Board of Trustees of
Neuberger Berman Advisers Management Trust and
Shareholders of Growth Portfolio
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Growth Portfolio, one of the series
constituting the Neuberger Berman Advisers Management Trust (the "Trust"), as
of December 31, 2004, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights. Our procedures included confirmation of securities owned as of
December 31, 2004, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Growth Portfolio of Neuberger Berman Advisers Management Trust at December 31,
2004, the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and its
financial highlights for each of the five years in the period then ended, in
conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 4, 2005
19
Trustees and Officers (Unaudited)
- ---------------------------------
The following tables set forth information concerning the trustees and officers
of the Trust. All persons named as trustees and officers also serve in similar
capacities for other funds administered or managed by NB Management and
Neuberger Berman. The Statement of Additional Information includes additional
information about fund trustees and is available upon request, without charge,
by calling (800) 877-9700.
Information about the Board of Trustees
- ----------------------------------------------------------------------------------
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- ----------------------------------------------------------------------------------
John Cannon (74) Trustee since Consultant. Formerly,
2000 Chairman, CDC Investment
Advisers (registered investment
adviser) 1993 to January 1999;
formerly, President and Chief
Executive Officer, AMA
Investment Advisors, an affiliate
of the American Medical
Association.
- ----------------------------------------------------------------------------------
Faith Colish (69) Trustee since Counsel, Carter Ledyard &
1984 Millburn LLP (law firm) since
October 2002; formerly,
Attorney-at-Law and President,
Faith Colish, A Professional
Corporation, 1980 to 2002.
- ----------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) Trustee since Consultant; Retired President
1989 and Trustee, Teachers Insurance
& Annuity (TIAA) and College
Retirement Equities Fund
(CREF).
- ----------------------------------------------------------------------------------
C. Anne Harvey (67) Trustee since Consultant, C. A. Harvey
1998 Associates, since June 2001;
formerly, Director, AARP, 1978
to December 2001.
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- ----------------------------------------------------------------------------------
John Cannon (74) 41 Independent Trustee or Director of
three series of Oppenheimer Funds:
Limited Term New York Municipal
Fund, Rochester Fund Municipals,
and Oppenheimer Convertible
Securities Fund, since 1992.
- ----------------------------------------------------------------------------------
Faith Colish (69) 41 Director, American Bar Retirement
Association (ABRA) since 1997
(not-for-profit membership
association).
- ----------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) 41 None.
- ----------------------------------------------------------------------------------
C. Anne Harvey (67) 41 President, Board of Associates to
The National Rehabilitation
Hospital's Board of Directors since
2002; formerly, Member, Individual
Investors Advisory Committee to the
New York Stock Exchange Board
of Directors, 1998 to June 2002;
formerly, Member, American
Savings Education Council's Policy
Board (ASEC), 1998 to 2000;
formerly, Member, Executive
Committee, Crime Prevention
Coalition of America, 1997 to 2000.
- ----------------------------------------------------------------------------------
20
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- ----------------------------------------------------------------------------------
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- ----------------------------------------------------------------------------------
Barry Hirsch (71) Trustee since Attorney-at-Law. Formerly,
2000 Senior Counsel, Loews
Corporation (diversified
financial corporation) May 2002
until April 2003; formerly,
Senior Vice President, Secretary
and General Counsel,
Loews Corporation.
- ----------------------------------------------------------------------------------
Robert A. Kavesh (77) Trustee since Marcus Nadler Professor
2000 Emeritus of Finance and
Economics, New York
University Stern School
of Business.
- ----------------------------------------------------------------------------------
Howard A. Mileaf (67) Trustee since Retired. Formerly, Vice
1999 President and Special Counsel,
WHX Corporation (holding
company) 1993 to 2001.
- ----------------------------------------------------------------------------------
William E. Rulon (72) Trustee since Retired. Formerly, Senior Vice
2000 President, Foodmaker, Inc.
(operator and franchiser of
restaurants) until January 1997.
- ----------------------------------------------------------------------------------
Cornelius T. Ryan (73) Trustee since Founding General Partner,
2000 Oxford Partners and Oxford
Bioscience Partners (venture
capital partnerships) and
President, Oxford Venture
Corporation.
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- ----------------------------------------------------------------------------------
Barry Hirsch (71) 41 None.
- ----------------------------------------------------------------------------------
Robert A. Kavesh (77) 41 Director, DEL Laboratories, Inc.
(cosmetics and pharmaceuticals)
since 1978; Director, The Caring
Community (not-for-profit).
- ----------------------------------------------------------------------------------
Howard A. Mileaf (67) 41 Director, WHX Corporation
(holding company) since August
2002; Director, Webfinancial
Corporation (holding company)
since December 2002; Director, State
Theatre of New Jersey (not-for-
profit theater) since 2000; formerly,
Director, Kevlin Corporation
(manufacturer of microwave and
other products).
- ----------------------------------------------------------------------------------
William E. Rulon (72) 41 Director, Pro-Kids Golf and
Learning Academy (teach golf and
computer usage to "at risk" children)
since 1998; formerly, Director,
Prandium, Inc. (restaurants) from
March 2001 until July 2002.
- ----------------------------------------------------------------------------------
Cornelius T. Ryan (73) 41 Director, Capital Cash Management
Trust (money market fund),
Naragansett Insured Tax-Free
Income Fund, Rocky Mountain
Equity Fund, Prime Cash Fund,
several private companies and
QuadraMed Corporation
(NASDAQ).
- ----------------------------------------------------------------------------------
21
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
- ----------------------------------------------------------------------------------
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- ----------------------------------------------------------------------------------
Tom D. Seip (54) Trustee since General Partner, Seip
2000 Investments LP (a private
investment partnership);
formerly, President and CEO,
Westaff, Inc. (temporary
staffing), May 2001 to January
2002; Senior Executive at the
Charles Schwab Corporation
from 1983 to 1999, including
Chief Executive Officer,
Charles Schwab Investment
Management, Inc. and Trustee,
Schwab Family of Funds and
Schwab Investments from
1997 to 1998 and Executive
Vice President-Retail
Brokerage, Charles Schwab
Investment Management from
1994 to 1997.
- ----------------------------------------------------------------------------------
Candace L. Straight (57) Trustee since Private investor and consultant
1999 specializing in the insurance
industry; formerly, Advisory
Director, Securitas Capital
LLC (a global private equity
investment firm dedicated to
making investments in the
insurance sector) 1998 to
December 2002.
- ----------------------------------------------------------------------------------
Peter P. Trapp (60) Trustee since Regional Manager for Atlanta
1984 Region, Ford Motor Credit
Company since August 1997;
formerly, President, Ford Life
Insurance Company, April 1995
to August 1997.
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- ----------------------------------------------------------------------------------
Tom D. Seip (54) 41 Director, H&R Block, Inc. (financial
services company) since May 2001;
Director, Forward Management, Inc.
(asset management) since 2001;
formerly, Director, General Magic
(voice recognition software) 2001
until 2002; formerly, Director,
E-Finance Corporation (credit
decisioning services) 1999 to 2003;
formerly, Director, Save-Daily.com
(micro investing services) 1999 to
2003; Director, Offroad Capital Inc.
(pre-public internet commerce
company).
- ----------------------------------------------------------------------------------
Candace L. Straight (57) 41 Director, The Proformance Insurance
Company (personal lines property
and casualty insurance company)
since March 2004; Director,
Providence Washington (property
and casualty insurance company)
since December 1998; Director,
Summit Global Partners (insurance
brokerage firm) since October 2000.
- ---------------------------------------------------------------------------------
Peter P. Trapp (60) 41 None.
- ----------------------------------------------------------------------------------
22
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- ----------------------------------------------------------------------------------
Trustees who are Position and
"Interested Persons" Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- ----------------------------------------------------------------------------------
Edward I. O'Brien* (76) Trustee since Formerly, Member, Investment
2000 Policy Committee, Edward
Jones 1993 to 2001; President,
Securities Industry Association
("SIA") (securities industry's
representative in government
relations and regulatory
matters at the federal and state
levels) 1974 to 1992; Adviser to
SIA, November 1992 to
November 1993.
- ----------------------------------------------------------------------------------
Jack L. Rivkin* (64) President and Executive Vice President and
Trustee since Chief Investment Officer,
December Neuberger Berman Inc.
2002 (holding company) since 2002
and 2003, respectively;
Executive Vice President and
Chief Investment Officer,
Neuberger Berman since
December 2002 and 2003,
respectively; Director and
Chairman, NB Management
since December 2002; formerly,
Executive Vice President,
Citigroup Investments, Inc.
from September 1995 to
February 2002; formerly,
Executive Vice President,
Citigroup Inc. from September
1995 to February 2002.
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Fund Complex
"Interested Persons" Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- ----------------------------------------------------------------------------------
Edward I. O'Brien* (76) 41 Director, Legg Mason, Inc. (financial
services holding company) since
1993; formerly, Director, Boston
Financial Group (real estate and tax
shelters) 1993 to 1999.
- ----------------------------------------------------------------------------------
Jack L. Rivkin* (64) 41 Director, Dale Carnegie and
Associates, Inc. (private company)
since 1998; Director, Emagin Corp.
(public company) since 1997;
Director, Solbright, Inc. (private
company) since 1998; Director,
Infogate, Inc. (private company)
since 1997; Director, Broadway
Television Network (private
company) since 2000.
- ----------------------------------------------------------------------------------
23
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
- ----------------------------------------------------------------------------------
Trustees who are Position and
"Interested Persons" Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- ----------------------------------------------------------------------------------
Peter E. Sundman* (45) Chairman of Executive Vice President,
the Board, Neuberger Berman Inc.
Chief (holding company) since 1999;
Executive Head of Neuberger Berman
Officer and Inc.'s Mutual Funds and
Trustee Institutional Business since
since 2000 1999; President and Director,
President NB Management since 1999;
and Chief Executive Vice President,
Executive Neuberger Berman since 1999;
Officer from formerly, Principal, Neuberger
1999 to 2000 Berman from 1997 until 1999;
formerly, Senior Vice President,
NB Management from 1996
until 1999.
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Fund Complex
"Interested Persons" Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- ----------------------------------------------------------------------------------
Peter E. Sundman* (45) 41 Director and Vice President,
Neuberger & Berman Agency, Inc.
since 2000; formerly, Director,
Neuberger Berman Inc. (holding
company) from October 1999
through March 2003; Trustee,
Frost Valley YMCA.
- ----------------------------------------------------------------------------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the Trust's Trust Instrument, each Trustee shall hold office
for life or until his or her successor is elected or the Trust terminates;
except that (a) any Trustee may resign by delivering a written resignation;
(b) any Trustee may be removed with or without cause at any time by a
written instrument signed by at least two-thirds of the other Trustees; (c)
any Trustee who requests to be retired, or who has become unable to serve,
may be retired by a written instrument signed by a majority of the other
Trustees; and (d) any Trustee may be removed at any shareholder meeting by
a vote of at least two-thirds of the outstanding shares.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
(4) Retired (effective the close of business December 31, 2004).
* Indicates a trustee who is an "interested person" within the meaning of the
1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of the Trust by
virtue of the fact that they are officers and/or directors of NB Management
and Executive Vice Presidents of Neuberger Berman. Mr. O'Brien is an
interested person of the Trust by virtue of the fact that he is a director
of Legg Mason, Inc., a wholly owned subsidiary of which, from time to time,
serves as a broker or dealer to the Funds and other funds for which NB
Management serves as investment manager.
24
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Information about the Officers of the Trust
- -------------------------------------------
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- -------------------------------------------------------------------------------------------------------------------------
Claudia A. Brandon (48) Secretary since 1985 Vice President-Mutual Fund Board Relations,
NB Management since 2000; Vice President, Neuberger
Berman since 2002 and employee since 1999; formerly,
Vice President, NB Management from 1986 to 1999;
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (four since 2002, three since 2003, and four
since 2004).
Philip R. Carroll (70) Chief Compliance Officer Vice President, Neuberger Berman since 2002; Associate
since 2004 General Counsel, Neuberger Berman since 2001; Director-
Mutual Fund Compliance, NB Management since 1995;
Chief Legal Officer, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (ten since 2003 and four since
2004); Chief Compliance Officer, fourteen registered
investment companies for which NB Management acts
as investment manager and administrator (fourteen since
2004) and Lehman Brothers/First Trust Income
Opportunity Fund.
Robert Conti (48) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003,
formerly, Vice President, Neuberger Berman from 1999
until 2003; Senior Vice President, NB Management since
2000; formerly, Controller, NB Management until 1996;
formerly, Treasurer, NB Management from 1996 until
1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Brian J. Gaffney (51) Vice President since 2000 Managing Director, Neuberger Berman since 1999;
Senior Vice President, NB Management since 2000;
formerly, Vice President, NB Management from 1997
until 1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Sheila R. James (39) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1991 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
25
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- -------------------------------------------------------------------------------------------------------------------------------
Kevin Lyons (49) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1993 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (ten since 2003 and four since 2004).
John M. McGovern (34) Assistant Treasurer since 2002 Vice President, Neuberger Berman since January 2004;
Employee, NB Management since 1993; Assistant
Treasurer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
Barbara Muinos (46) Treasurer and Principal Financial Vice President, Neuberger Berman since 1999; formerly,
and Accounting Officer since 2002; Assistant Vice President, NB Management from 1993 to
prior thereto, Assistant Treasurer 1999; Treasurer and Principal Financial and Accounting
since 1996 Officer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004); formerly, Assistant Treasurer, three registered
investment companies for which NB Management acts
as investment manager and administrator from 1996
until 2002.
Frederic B. Soule (58) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003;
formerly, Vice President, Neuberger Berman from 1999
until 2003; formerly, Vice President, NB Management
from 1995 until 1999; Vice President, fourteen registered
investment companies for which NB Management acts as
investment manager and administrator (three since 2000,
four since 2002, three since 2003, and four since 2004).
- -------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the By-Laws of the Trust, each officer elected by the Trustees
shall hold office until his or her successor shall have been elected and
qualified or until his or her earlier death, inability to serve, or
resignation. Officers serve at the pleasure of the Trustees and may be
removed at any time with or without cause.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
26
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Proxy Voting Policies and Procedures
- ------------------------------------
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available, without
charge, by calling 1-800-877-9700 (toll-free) and on the website of the
Securities and Exchange Commission, at www.sec.gov. Information regarding how
the Trust voted proxies relating to portfolio securities during the most recent
12-month period ended June 30 will also be available without charge, by calling
1-800-877-9700 (toll-free), on the website of the Securities and Exchange
Commission, at www.sec.gov, and on the Trust's website at www.nb.com.
Quarterly Portfolio Schedule
- ----------------------------
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange
Commission's website at www.sec.gov and may be reviewed and copied at the
Securities and Exchange Commission's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The information on Form N-Q is available upon request,
without charge, by calling 1-800-877-9700 (toll-free).
27
[LOGO]
Annual Report NEUBERGER BERMAN
December 31, 2004 A Lehman Brothers Company
Neuberger Berman
Advisers
Management
Trust
- --------------------------------------------------------------------------------
Guardian
Portfolio
B1016 02/05
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Guardian Portfolio Manager's Commentary
- ---------------------------------------
For much of 2004, stocks languished as investors ignored the healthy economy
and good corporate earnings growth, but obsessed over Federal Reserve
tightening, high energy prices, global tensions, and a tightly contested
national election. Then, toward the end of October, investors began
accentuating the positive and stocks rallied, as broad-based market indices
closed the year with respectable gains. The Neuberger Berman AMT Guardian
Portfolio slightly underperformed the Russell 1000 Value Index but materially
outperformed the S&P 500 for the year.(2)
In 2004, our Industrial sector investments had the most positive impact on
absolute returns, with defense electronics manufacturer L-3 Communications and
Canadian National Railway among our top performers. Health Care holdings also
helped returns, with managed care bellwether UnitedHealth Group and laboratory
testing company Quest Diagnostics finishing with strong results. Finally,
Energy investments enhanced performance, buoyed by exploration and production
companies Newfield Exploration and EOG Resources.
Energy stocks performed exceptionally well due to strong oil and natural gas
prices. We had found some great Energy bargains and consequently entered the
year with a material overweight in the group. However, late in the year, some of
the factors that had contributed to strong commodity prices--most notably rising
demand due to robust economic growth in the U.S. and China and constrained
supply resulting from supply disruptions in Iraq, Venezuela, and the Gulf of
Mexico--appeared to have run their course. As a result, energy inventories rose
to comfortable levels. Going forward, Japan is likely to reduce its oil
dependency by reopening some nuclear plants, while China has three coal-fired
generating plants coming on line soon. Consequently, we may see oil prices
moderate. As a result, we thought it prudent to sell into strength and by
year-end 2004, Energy had gone from an overweight to a near-neutral weighting
versus the S&P 500 Index.
Information Technology investments, primarily semiconductor and semiconductor
equipment makers such as Altera, Texas Instruments, and Teradyne, were our
Achilles' heel in 2004. These stocks were pressured when the economy stalled
this summer and chip makers were left holding excess inventory. However, with
the strength of end-market demand for technology products, we believe this
inventory imbalance has largely been worked off, and note that Intel has
announced it expects wafer starts to increase in the first quarter. If this
proves to be an industry-wide trend, revenues should recover quickly. With the
enormous operating leverage in this business, 2005 earnings could be far better
than Wall Street is expecting. This should help improve sentiment toward
technology stocks, which turned strongly negative at mid-year.
As is our custom, we will detail a portfolio holding that demonstrates our
investment discipline. Canadian National Railway is what we believe to be the
most efficient railroad in North America. The company pioneered scheduled
freight delivery when its competitors were forcing their customers to wait for
shipments until they booked full loads. The premium price Canadian National's
customers were willing to pay for scheduled delivery more than compensated for
trains going out without full loads. A number of trends favor the company. In
the long term, with manufacturing continuing to migrate overseas to
low-labor-cost nations, businesses that help to efficiently transport goods
from the coasts to the heartland should profit. In the intermediate term,
railroads' favorable cost structure should facilitate market share gains from
truckers. In our opinion, Canadian National's big short-term edge is that it
has steadily invested in its
1
Guardian Portfolio Manager's Commentary cont'd
- ----------------------------------------------
infrastructure and has been able to handle increased demand without
bottlenecks, giving it substantial earnings leverage as the economy has
improved. Despite the stock's excellent performance this year, it still meets
our value parameters and we are still "all aboard."
In closing, we thank AMT Guardian shareholders for their confidence in our
research-driven, value-oriented investment discipline and hope to continue to
earn their trust in the years ahead.
Sincerely,
/S/ Arthur Moretti
ARTHUR MORETTI
PORTFOLIO MANAGER
- -------------------------------------------------------------------------------
Average Annual Total Return(1)
Guardian Guardian Russell 1000(R)
Portfolio Class I Portfolio Class S S&P 500(2) Value(2)
1 Year 15.81% 15.55% 10.87% 16.49%
5 Year 2.26% 2.13% (2.30%) 5.27%
Life of Fund 8.38% 8.28% 5.57% 7.90%
- --------------------------------------------------------------------------------------
Inception Date 11/03/1997
Performance data quoted represent past performance, which is no guarantee of
future results. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed may be worth more or less
than their original cost. Results are shown on a "total return" basis and
include reinvestment of all dividends and capital gain distributions.
Current performance may be lower or higher than the performance data quoted. For
performance data current to the most recent month end, please visit www.nb.com/
performance.
Comparison of a $10,000 Investment
Guardian Russell 1000 (R)
Portfolio Class I S&P 500 Value
- ------------------------------------------------------------------------
11/3/1997 $ 10,000 $ 10,000 $ 10,000
- ------------------------------------------------------------------------
12/31/1997 $ 10,520 $ 10,642 $ 10,747
- ------------------------------------------------------------------------
12/31/1998 $ 13,851 $ 13,683 $ 12,427
- ------------------------------------------------------------------------
12/31/1999 $ 15,920 $ 16,562 $ 13,339
- ------------------------------------------------------------------------
12/31/2000 $ 16,100 $ 15,054 $ 14,275
- ------------------------------------------------------------------------
12/31/2001 $ 15,857 $ 13,267 $ 13,477
- ------------------------------------------------------------------------
12/31/2002 $ 11,663 $ 10,336 $ 11,385
- ------------------------------------------------------------------------
12/31/2003 $ 15,368 $ 13,299 $ 14,804
- ------------------------------------------------------------------------
12/31/2004 $ 17,798 $ 14,745 $ 17,246
- ------------------------------------------------------------------------
The chart shows the value of a hypothetical $10,000 investment in the Fund over
the past 10 fiscal years, or since the Fund's inception, if it has not operated
for 10 years. The graphs are based on Class I shares only; performance of other
classes will vary due to differences in fee structures (see Average Annual Total
Return chart above). The results are compared with benchmarks, which may include
a broad-based market index and/or a narrower index. Please note that market
indexes do not include expenses. All results include the reinvestment of
dividends and capital gain distributions. Results represent past performance and
do not indicate future results. The chart and table do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
Please see Endnotes for additional information.
- -------------------------------------------------------------------------------
Industry Diversification
(% of Industry Holdings)
Banking & Financial ................... 3.8%
Consumer Cyclicals .................... 2.9
Defense ............................... 3.2
Diversified ........................... 3.2
Energy ................................ 2.9
Financial Services .................... 6.9
Health Products & Services ............ 7.7
Industrial Gases ...................... 3.4
Insurance ............................. 7.1
Media ................................. 11.2
Oil & Gas ............................. 4.1
Oil Services .......................... 0.8
Pharmaceutical ........................ 4.9
Real Estate ........................... 3.9
Technology ............................ 6.5
Technology-Semiconductor .............. 6.4
Technology-Semiconductor Capital
Equipment ......................... 3.0
Telecommunications .................... 3.9
Transportation ........................ 4.6
Utilities ............................. 3.2
Waste Management ...................... 3.1
Short-Term Investments ................ 9.9
Liabilities, less cash, receivables and
other assets ...................... (6.6)
2
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Endnotes
1. For Class I, 15.81%, 2.26%, and 8.38% were the average annual total
returns for the 1-, 5-year and since inception (11/03/97) periods
ended December 31, 2004. For Class S, 15.55%, 2.13% and 8.28% were the
average annual total returns for the 1-year, 5-year and since
inception of Class I (11/03/97) periods ended December 31, 2004.
Performance shown prior to August 2002 for the Class S shares is of
the Class I shares, which has lower expenses and typically higher
returns than Class S shares. Neuberger Berman Management Inc. ("NBMI")
has agreed to absorb certain expenses of the AMT Portfolios. Without
this arrangement, which is subject to change, the total returns of the
Portfolios would be less. Total return includes reinvestment of
dividends and capital gain distributions. Performance data quoted
represent past performance and the investment return and principal
value of an investment will fluctuate so that the shares, when
redeemed, may be worth more or less than original cost. The
performance information does not reflect fees and expenses of the
insurance companies.
2. The S&P 500 Index is widely regarded as the standard for measuring
large-cap U.S. stock market performance and includes a representative
sample of leading companies in leading industries. The Russell
1000[RegTM] Index measures the performance of the 1,000 largest
companies in the Russell 3000[RegTM] Index (which measures the
performance of the 3,000 largest U.S. companies based on total market
capitalization). The Russell 1000 Value Index measures the performance
of those Russell 1000 companies with lower price-to-book ratios and
lower forecasted growth values. Please note that indices do not take
into account any fees and expenses of investing in the individual
securities that they track, and that individuals cannot invest
directly in any index. Data about the performance of these indices are
prepared or obtained by NBMI and include reinvestment of all dividends
and capital gain distributions. The Portfolio may invest directly in
many securities not included in the above-described indices.
The investments for the Portfolio are managed by the same portfolio
manager(s) who manage one or more other mutual funds that have similar
names, investment objectives and investment styles as the Portfolio.
You should be aware that the Portfolio is likely to differ from the
other mutual funds in size, cash flow pattern and tax matters.
Accordingly, the holdings and performance of the Portfolio can be
expected to vary from those of the other mutual funds.
The composition, industries and holdings of the Portfolio are subject
to change.
Shares of the separate Portfolios of Neuberger Berman Advisers
Management Trust are sold only through the currently effective
prospectus and are not available to the general public. Shares of this
Portfolio may be purchased only by life insurance companies to be used
with their separate accounts that fund variable annuity and variable
life insurance policies and by qualified pension and retirement plans.
(C) 2005 Neuberger Berman Management Inc., distributor. All rights
reserved.
3
Information About Your Fund's Expenses
- --------------------------------------
This table is designed to provide information regarding costs related to your
investments. All mutual funds incur operating expenses, which include
management fees, administrative services and shareholder reports among others.
The following example is based on an investment of $1,000 made at the beginning
of the period shown and held for the entire period. The table illustrates the
fund's costs in two ways:
Actual Expenses: The first section of the table provides information about
actual account values and actual expenses in dollars. You
may use the information in this line, together with the
amount you invested, to estimate the expenses you paid over
the period.
Hypothetical Example for Comparison Purposes: The second section of the table provides information about
hypothetical account values and hypothetical expenses based
on the Fund's actual expense ratio and an assumed rate of
return at 5% per year before expenses. This return is not
the Fund's actual return. The hypothetical account values
and expenses may not be used to estimate the actual ending
account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of
investing in this Fund versus other funds. To do so, compare
this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of other
funds.
Expense Information As of 12/31/04 (Unaudited)
- ----------------------------------------------
Neuberger Berman Advisers Management Trust Guardian Portfolio
- -------------------------------------------------------------
Beginning Ending Expenses Paid
Actual Account Value Account Value During the Period*
Class I $1,000 $ 1,111.20 $ 5.20
Class S $1,000 $ 1,109.60 $ 6.52
Hypothetical (5% annual return before expenses)**
Class I $1,000 $ 1,020.21 $ 4.98
Class S $1,000 $ 1,018.95 $ 6.24
* For each class of the Fund, expenses are equal to the expense ratio for the
class, multiplied by the average account value over the period, multiplied
by 184/366 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying
the number of days in the most recent half year divided by 366.
4
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Guardian Portfolio
- ------------------------------------------
Number of Shares
Market Value+
Common Stocks (96.7%)
Banking & Financial (3.8%)
136,200 State Street $ 6,690,144
Consumer Cyclicals (2.9%)
98,700 Target Corp. 5,125,491
Defense (3.2%)
76,550 L-3 Communications Holdings 5,606,522
Diversified (3.2%)
99,850 Danaher Corp. 5,732,389\P
Energy (2.9%)
75,850 BP PLC ADR 4,429,640
15,200 ChevronTexaco Corp. 798,152
-------------
5,227,792
Financial Services (6.9%)
43,600 Ambac Financial Group 3,580,868
68,800 Citigroup Inc. 3,314,784
52,300 Goldman Sachs 5,441,292
-------------
12,336,944
Health Products & Services (7.7%)
65,300 Quest Diagnostics 6,239,415\P
85,000 UnitedHealth Group 7,482,550
-------------
13,721,965
Industrial Gases (3.4%)
134,800 Praxair, Inc. 5,951,420
Insurance (7.1%)
600 Berkshire Hathaway Class B 1,761,600*
70,400 RenaissanceRe Holdings 3,666,432
174,300 Willis Group Holdings 7,175,931
-------------
12,603,963
Media (11.2%)
133,850 Comcast Corp. Class A
Special 4,395,634*
784,256 Liberty Media 8,611,131*
107,166 Liberty Media International
Class A 4,954,284*
205,360 UnitedGlobalCom 1,983,778*
-------------
19,944,827
Oil & Gas (4.1%)
124,600 Newfield Exploration 7,357,630*
Oil Services (0.8%)
21,400 Schlumberger Ltd. 1,432,730
Pharmaceutical (4.9%)
42,500 Millipore Corp. 2,116,925*
128,750 Novartis AG ADR 6,507,025
-------------
8,623,950
Real Estate (3.9%)
74,950 AMB Property 3,027,230
108,700 Equity Residential 3,932,766
-------------
6,959,996
Number of Shares Market Value+
Technology (6.5%)
132,250 Dell Inc. $ 5,573,015*
219,650 National Instruments 5,985,462
--------------
11,558,477
Technology-Semiconductor (6.4%)
292,900 Altera Corp. 6,063,030*
216,900 Texas Instruments 5,340,078
--------------
11,403,108
Technology-Semiconductor Capital Equipment (3.0%)
311,500 Teradyne, Inc. 5,317,305*
Telecommunications (3.9%)
249,900 Vodafone Group ADR 6,842,262
Transportation (4.6%)
29,350 Burlington Northern Santa Fe 1,388,549
109,350 Canadian National Railway 6,697,687
-------------
8,086,236
Utilities (3.2%)
574,200 National Grid Transco 5,456,397
6,300 National Grid Transco ADR 302,337\P
-------------
5,758,734
Waste Management (3.1%)
95,000 Republic Services 3,186,300\P
77,250 Waste Management 2,312,865
-------------
5,499,165
Total Common Stocks
(Cost $122,167,792) 171,781,050
-------------
Principal Amount
Short-Term Investments (9.9%)
$12,113,700 N&B Securities Lending
Quality Fund, LLC 12,113,700++
5,483,289 Neuberger Berman
Prime Money Fund
Trust Class 5,483,289@
-------------
Total Short-Term Investments
(Cost $17,596,989) 17,596,989#
-------------
Total Investments (106.6%)
(Cost $139,764,781)
189,378,039##
Liabilities, less cash, receivables and other
assets [(6.6%)]
(11,794,264)
-------------
Total Net Assets (100.0%)
$ 177,583,775
-------------
See Notes to Schedule of Investments
5
Notes to Schedule of Investments Guardian Portfolio
- ---------------------------------------------------
+ Investments in equity securities by Neuberger Berman Advisers Management
Trust Guardian Portfolio (the "Fund") are valued at the latest sale price
where that price is readily available; securities for which no sales were
reported, unless otherwise noted, are valued at the mean between the
closing bid and asked prices. Securities traded primarily on the NASDAQ
Stock Market are normally valued by the Fund at the NASDAQ Official Closing
Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most
recently reported price as of 4:00:02 p.m., Eastern time, unless that price
is outside the range of the "inside" bid and asked prices (i.e., the bid
and asked prices that dealers quote to each other when trading for their
own accounts); in that case, NASDAQ will adjust the price to equal the
inside bid or asked price, whichever is closer. Because of delays in
reporting trades, the NOCP may not be based on the price of the last trade
to occur before the market closes. The Fund values all other securities by
a method the Board of Trustees of Neuberger Berman Advisers Management
Trust (the "Board") believes accurately reflects fair value. Numerous
factors may be considered when determining the fair value of a security,
including available analyst, media or other reports, trading in futures or
ADRs and whether the issuer of the security being fair valued has other
securities outstanding. Foreign security prices are furnished by
independent quotation services and expressed in local currency values.
Foreign security prices are translated from the local currency into U.S.
dollars using the exchange rate as of 12:00 noon, Eastern time. The Board
has approved the use of FT Interactive Data Corporation ("FT Interactive")
to assist in determining the fair value of the Fund's foreign equity
securities in the wake of certain significant events. When changes in the
value of a certain index suggest that the closing prices on the foreign
exchanges may no longer represent the amount that the Fund could expect to
receive for those securities, FT Interactive will provide adjusted prices
for certain foreign equity securities based on an analysis showing
historical correlations between the prices of those securities and changes
in the index. In the absence of precise information about the market values
of these foreign securities as of the close of the New York Stock Exchange,
the Board has determined on the basis of available data that prices
adjusted in this way are likely to be closer to the prices the Fund could
realize on a current sale than are the prices of those securities
established at the close of the foreign markets in which the securities
primarily trade. However, fair value prices are necessarily estimates, and
there is no assurance that such a price will be at or close to the price at
which the security next trades. Short-term debt securities with less than
60 days until maturity may be valued at cost which, when combined with
interest earned, approximates market value.
# At cost, which approximates market value.
## At December 31, 2004, the cost of investments for U.S. Federal income tax
purposes was $140,144,809. Gross unrealized appreciation of investments was
$49,353,289 and gross unrealized depreciation of investments was $120,059,
resulting in net unrealized appreciation of $49,233,230, based on cost for
U.S. Federal income tax purposes.
* Non-income producing security.
\P All or a portion of this security is on loan (see Note A of Notes to
Financial Statements).
@ Neuberger Berman Prime Money Fund ("Prime Money") is also managed by
Neuberger Berman Management Inc. (see Notes A & F of Notes to Financial
Statements) and may be considered an affiliate since it has the same
officers, Board members, and investment manager as the Fund and because, at
times, the Fund may own 5% or more of the outstanding voting securities of
Prime Money.
++ The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans. The Fund's shares in the
Quality Fund are non-voting. However, because all shares of the Quality
Fund are held by funds in the related investment management complex, the
Quality Fund may be considered an affiliate of the Fund (see Notes A & F of
Notes to Financial Statements).
See Notes to Financial Statements 6
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Assets and Liabilities
- -----------------------------------
Guardian
Neuberger Berman Advisers Management Trust Portfolio
Assets
Investments in securities, at market value*+ (Notes A & F)-see Schedule of Investments:
- ---------------------------------------------------------------------------------------------------------
Unaffiliated issuers $ 171,781,050
- ---------------------------------------------------------------------------------------------------------
Affiliated issuers 17,596,989
- ---------------------------------------------------------------------------------------------------------
189,378,039
- ---------------------------------------------------------------------------------------------------------
Foreign currency 79
- ---------------------------------------------------------------------------------------------------------
Dividends and interest receivable 360,075
- ---------------------------------------------------------------------------------------------------------
Receivable for securities sold 441,730
- ---------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 7,805
- ---------------------------------------------------------------------------------------------------------
Prepaid expenses and other assets 2,524
- ---------------------------------------------------------------------------------------------------------
Total Assets 190,190,252
- ---------------------------------------------------------------------------------------------------------
Liabilities
Payable for collateral on securities loaned (Note A) 12,113,700
- ---------------------------------------------------------------------------------------------------------
Payable for securities purchased 263,038
- ---------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 60,163
- ---------------------------------------------------------------------------------------------------------
Payable to investment manager-net (Notes A & B) 78,781
- ---------------------------------------------------------------------------------------------------------
Payable to administrator (Note B) 43,275
- ---------------------------------------------------------------------------------------------------------
Accrued expenses and other payables 47,520
- ---------------------------------------------------------------------------------------------------------
Total Liabilities 12,606,477
- ---------------------------------------------------------------------------------------------------------
Net Assets at value $ 177,583,775
- ---------------------------------------------------------------------------------------------------------
Net Assets consist of:
Paid-in capital $ 173,734,958
- ---------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) 408,415
- ---------------------------------------------------------------------------------------------------------
Accumulated net realized gains (losses) on investments (46,172,470)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) in value of investments 49,612,872
- ---------------------------------------------------------------------------------------------------------
Net Assets at value $ 177,583,775
- ---------------------------------------------------------------------------------------------------------
Net Assets
Class I $ 177,296,111
-------------------------------------------------------------------------------------------------------
Class S 287,664
-------------------------------------------------------------------------------------------------------
Shares Outstanding ($.001 par value; unlimited shares authorized)
Class I 10,964,025
-------------------------------------------------------------------------------------------------------
Class S 17,759
-------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share
Class I $ 16.17
-------------------------------------------------------------------------------------------------------
Class S 16.20
- ---------------------------------------------------------------------------------------------------------
+Securities on loan, at market value:
Unaffiliated issuers $ 11,729,412
- ---------------------------------------------------------------------------------------------------------
*Cost of Investments:
Unaffiliated issuers $ 122,167,792
-------------------------------------------------------------------------------------------------------
Affiliated issuers 17,596,989
- ---------------------------------------------------------------------------------------------------------
Total cost of investments $ 139,764,781
- ---------------------------------------------------------------------------------------------------------
Total cost of foreign currency $ 77
- ---------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 7
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST FOR THE YEAR ENDED DECEMBER 31, 2004
Statement of Operations
- -----------------------
Guardian
Neuberger Berman Advisers Management Trust Portfolio
Investment Income
Income (Note A):
Dividend income-unaffiliated issuers $ 2,019,647
- ---------------------------------------------------------------------------------------------------------
Interest Income 1,366
- ---------------------------------------------------------------------------------------------------------
Income from investments in affiliated issuers (Note F) 39,217
- ---------------------------------------------------------------------------------------------------------
Income from securities loaned-affiliated issuer (Note F) 40,102
- ---------------------------------------------------------------------------------------------------------
Foreign taxes withheld (78,138)
- ---------------------------------------------------------------------------------------------------------
Total income 2,022,194
- ---------------------------------------------------------------------------------------------------------
Expenses:
Investment management fee (Notes A & B) 912,079
- ---------------------------------------------------------------------------------------------------------
Administration fee (Note B):
Class I 496,895
------------------------------------------------------------------------------------------------------
Class S 602
------------------------------------------------------------------------------------------------------
Distribution fees (Note B):
Class S 502
------------------------------------------------------------------------------------------------------
Audit fees 38,643
- ---------------------------------------------------------------------------------------------------------
Custodian fees (Note B) 101,548
- ---------------------------------------------------------------------------------------------------------
Insurance expense 4,468
- ---------------------------------------------------------------------------------------------------------
Legal fees 29,451
- ---------------------------------------------------------------------------------------------------------
Shareholder reports 10,840
- ---------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 25,169
- ---------------------------------------------------------------------------------------------------------
Miscellaneous 3,816
- ---------------------------------------------------------------------------------------------------------
Total expenses 1,624,013
Investment management fee waived (Note A) (3,500)
Expenses reduced by custodian fee expense offset and commission recapture arrangements (9,165)
- ---------------------------------------------------------------------------------------------------------
(Note B)
- ---------------------------------------------------------------------------------------------------------
Total net expenses 1,611,348
- ---------------------------------------------------------------------------------------------------------
Net investment income (loss) 410,846
- ---------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers 10,564,534
------------------------------------------------------------------------------------------------------
Foreign currency (1,977)
------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities 13,248,899
------------------------------------------------------------------------------------------------------
Foreign currency (3,847)
------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 23,807,609
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 24,218,455
- ---------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 8
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Changes in Net Assets
- ----------------------------------
Guardian Portfolio
---------------------
Neuberger Berman Advisers Management Trust Year Ended December 31,
2004 2003
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss) $ 410,846 $ 375,178
- -------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 10,562,557 2,521,652
- -------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments 13,245,052 40,016,655
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 24,218,455 42,913,485
- -------------------------------------------------------------------------------------------------------
Distributions to Shareholders From:
Net investment income:
Class I (201,368) (1,313,767)
----------------------------------------------------------------------------------------------------
Class S - (231)
----------------------------------------------------------------------------------------------------
Total distributions to shareholders (201,368) (1,313,998)
- -------------------------------------------------------------------------------------------------------
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Class I 21,432,013 68,474,538
----------------------------------------------------------------------------------------------------
Class S 120,664 20,926
----------------------------------------------------------------------------------------------------
Proceeds from reinvestment of dividends and distributions:
Class I 201,368 1,313,767
----------------------------------------------------------------------------------------------------
Class S - 231
----------------------------------------------------------------------------------------------------
Payments for shares redeemed:
Class I (37,552,627) (82,374,724)
----------------------------------------------------------------------------------------------------
Class S (14,269) (2,764)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) from Fund share transactions (15,812,851) (12,568,026)
- -------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 8,204,236 29,031,461
Net Assets:
Beginning of year 169,379,539 140,348,078
- -------------------------------------------------------------------------------------------------------
End of year $ 177,583,775 $ 169,379,539
- -------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) at end of year $ 408,415 $ 376,027
- -------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 9
Notes to Financial Statements Guardian Portfolio
- ------------------------------------------------
Note A--Summary of Significant Accounting Policies:
1 General: Guardian Portfolio (the "Fund") is a separate operating
series of Neuberger Berman Advisers Management Trust (the "Trust"), a
Delaware statutory trust organized pursuant to a Trust Instrument
dated May 23, 1994. The Trust is currently comprised of eleven
separate operating series (each a "Series," collectively, the "Funds")
each of which (except Focus Portfolio) is diversified. The Trust is
registered as an open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act"), and its
shares are registered under the Securities Act of 1933, as amended.
The Fund currently offers Class I and Class S shares. The Board of
Trustees of the Trust (the "Board") may establish additional series or
classes of shares without the approval of shareholders.
The assets of each Series belong only to that Series, and the
liabilities of each Series are borne solely by that Series and no
other.
The preparation of financial statements in accordance with U.S.
generally accepted accounting principles requires Neuberger Berman
Management Inc. ("Management") to make estimates and assumptions at
the date of the financial statements. Actual results could differ from
those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in
the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars using the exchange rate as of 12:00 noon, Eastern
time, to determine the value of investments, other assets and
liabilities. Purchase and sale prices of securities, and income and
expenses, are translated into U.S. dollars at the prevailing rate of
exchange on the respective dates of such transactions. Net unrealized
foreign currency gain (loss) arises from changes in the value of
assets and liabilities, other than investments in securities, as a
result of changes in exchange rates and is stated separately in the
Statement of Operations.
4 Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the
Fund becomes aware of the dividends. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income, including accretion of original
issue discount, where applicable, and accretion of discount on
short-term investments, is recorded on the accrual basis. Realized
gains and losses from securities transactions and foreign currency
transactions, if any, are recorded on the basis of identified cost and
stated separately in the Statement of Operations. Included in net
realized gain (loss) on investment securities sold are proceeds from
the settlements of class action litigation in which the Fund
participated as a plaintiff. The amount of such proceeds for the year
ended December 31, 2004 was $98,457.
5 Income tax information: The Funds are treated as separate entities for
U.S. Federal income tax purposes. It is the policy of the Fund to
continue to qualify as a regulated investment company by complying
with the requirements of Subchapter M of the Internal Revenue Code
applicable to regulated
10
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
investment companies and to distribute substantially all of its earnings to its
shareholders. Therefore, no Federal income or excise tax provision is required.
Income dividends and capital gain distributions are determined in accordance
with income tax regulations, which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities held by the
Fund, timing differences and differing characterization of distributions made
by the Fund as a whole. The Fund may also utilize earnings and profits
distributed to shareholders on redemption of shares as a part of the dividends
paid deduction for income tax purposes.
As determined on December 31, 2004, permanent differences resulting primarily
from different book and tax accounting for distributions from real estate
investment trusts and foreign currency gains and losses, were reclassified at
year end. These reclassifications had no effect on net income, net assets or
net assets per share of the Fund.
The tax character of distributions paid during the years ended December 31,
2004 and December 31 2003 were as follows:
Distributions Paid From:
Ordinary Income Total
2004 2003 2004 2003
$201,368 $1,313,998 $201,368 $1,313,998
As of December 31, 2004, the components of distributable earnings (accumulated
losses) on a U.S. Federal income tax basis were as follows:
Unrealized Loss
Undistributed Appreciation Carryforwards
Ordinary Income (Depreciation) and Deferrals Total
$408,415 $49,232,846 $(45,792,444) $3,848,817
The difference between book basis and tax basis distributable earnings is
attributable primarily to timing differences on wash sales, return of capital
distributions from real estate investment trusts, and post-October losses.
Under current tax law, certain net capital and net foreign currency losses
realized after October 31, 2004 within the taxable year may be deferred and
treated as occurring on the first day of the following tax year. For the year
ended December 31, 2004, the fund elected to defer $341,556 net capital losses
arising between November 1, 2004 and December 31, 2004.
To the extent the Fund's net realized capital gains, if any, can be offset by
capital loss carryforwards, it is the policy of the Fund not to distribute such
gains. As determined at December 31, 2004, the Fund had unused capital loss
carryforwards available for Federal income tax purposes to offset net realized
capital gains, if any, as follows:
Expiring in:
2009 2010 2011
$ 852,650 $39,047,105 $5,551,133
11
Notes to Financial Statements Guardian Portfolio cont'd
- -------------------------------------------------------
6 Dividends and distributions to shareholders: The Fund may earn income, net
of expenses, daily on its investments. Income dividends and distributions
from net realized capital gains, if any, generally are distributed in
October. Income dividends and capital gain distributions to shareholders
are recorded on the ex-dividend date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds.
Expenses directly attributable to a Series are charged to that Series.
Expenses of the Trust that are not directly attributed to a Series are
allocated among the Funds, on the basis of relative net assets, except
where a more appropriate allocation of expenses to each of the Funds can
otherwise be made fairly. Expenses borne by the complex of related
investment companies, which includes open-end and closed-end investment
companies for which Management serves as investment manager, that are not
directly attributed to a Series or the Trust, are allocated among the Fund
and the other investment companies in the complex or series thereof, on the
basis of relative net assets, except where a more appropriate allocation of
expenses to each investment company in the complex or series thereof can
otherwise be made fairly. The Fund's expenses (other than those specific to
each class) are allocated proportionally each day between the classes based
upon the relative net assets of each class.
9 Security lending: Pursuant to an Exemptive Order issued by the Securities
and Exchange Commission, the Fund entered into a Securities Lending
Agreement ("Agreement") with Neuberger Berman, LLC ("Neuberger") on April
17, 2003. Securities loans involve certain risks in the event a borrower
should fail financially, including delays or inability to recover the lent
securities or foreclose against the collateral. The investment manager,
under the general supervision of the Board, monitors the creditworthiness
of the parties to whom the Fund makes security loans. The Fund will not
lend securities on which covered call options have been written, or lend
securities on terms which would prevent the Fund from qualifying as a
regulated investment company. The Fund receives cash collateral equal to at
least 102% of the current market value of the loaned securities. The Fund
invests the cash collateral in the N&B Securities Lending Quality Fund, LLC
("Quality Fund"), which is managed by State Street Bank and Trust Company
("State Street") pursuant to guidelines approved by the Trust's investment
manager. Neuberger guaranteed a certain amount of revenue to the Fund under
the Agreement, and received a portion of any revenue earned in excess of
the guaranteed amount as a lending agency fee.
The Agreement has been renewed and approved by the Board as of July 1, 2004
with substantially the same terms. Under this current Agreement, Neuberger
guarantees a certain amount of revenue to the Fund and receives any revenue
earned in excess of the guaranteed amount as a lending agency fee. For the
year ended December 31, 2004, Neuberger did not receive any revenue under
the Agreement. Income earned on the securities loaned, if any, is reflected
in the Statement of Operations under the caption Income from securities
loaned-affiliated issuer.
In February of 2005, it is likely that the Fund will change the collateral
investment vehicle from the Quality Fund, managed by State Street, to a
fund managed by Lincoln Capital, an affiliate, approved by the Board.
12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
10 Repurchase agreements: The Fund may enter into repurchase agreements with
institutions that the Fund's investment manager has determined are
creditworthy. Each repurchase agreement is recorded at cost. The Fund
requires that the securities purchased in a repurchase agreement be
transferred to the custodian in a manner sufficient to enable the Fund to
assert a perfected security interest in those securities in the event of a
default under the repurchase agreement. The Fund monitors, on a daily
basis, the value of the securities transferred to ensure that their value,
including accrued interest, is greater than amounts owed to the Fund under
each such repurchase agreement.
11 Transactions with other funds managed by Neuberger Berman Management Inc.:
Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the Fund may invest in the Neuberger Berman Institutional Cash
Fund (the "Cash Fund") and the Neuberger Berman Prime Money Fund ("Prime
Money"), affiliated funds, which are managed by Management and have the
same Board members as the Fund. The Cash Fund and Prime Money each seeks to
provide as high a level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. For any cash that
the Fund invests in the Cash Fund or Prime Money, Management waives a
portion of its management fee equal to the management fee it receives from
the Cash Fund and Prime Money on those assets. For the year ended December
31, 2004, such waived fees amounted to $3,440 and $60 for the Cash Fund and
Prime Money, respectively. For the year ended December 31, 2004, income
earned on the investments of the Cash Fund and Prime Money amounted to
$37,811 and $1,406, respectively, and is reflected in the Statement of
Operations under the caption Income from investments in affiliated issuers.
12 Indemnifications: Like many other companies, the Trust's organizational
documents provide that its officers and trustees are indemnified against
certain liabilities arising out of the performance of their duties to the
Trust. In addition, both in some of its principal service contracts and in
the normal course of its business, the Trust enters into contracts that
provide indemnifications to other parties for certain types of losses or
liabilities. The Trust's maximum exposure under these arrangements is
unknown as this could involve future claims against the Trust.
13 Other: All net investment income and realized and unrealized capital gains
and losses of the Fund are allocated, on the basis of relative net assets,
pro rata among its respective classes.
Note B--Management Fees, Administration Fees, Distribution Arrangements,
and Other Transactions With Affiliates:
Fund shares are issued and redeemed in connection with investments in and
payments under certain variable annuity contracts and variable life
insurance policies issued through separate accounts of life insurance
companies and are also offered directly to qualified pension and retirement
plans.
The Fund retains Management as its investment manager under a Management
Agreement. For such investment management services, the Fund pays
Management a fee at the annual rate of 0.55% of the first $250 million of
the Fund's average daily net assets, 0.525% of the next $250 million, 0.50%
of the next $250 million, 0.475% of the next $250 million, 0.45% of the
next $500 million, 0.425% of the next $2.5 billion, and 0.40% of average
daily net assets in excess of $4 billion.
13
Notes to Financial Statements Guardian Portfolio cont'd
- -------------------------------------------------------
The Fund retains Management as its administrator under an Administration
Agreement. Each class pays Management an administration fee at the annual
rate of 0.30% of its average daily net assets under this agreement.
Additionally, Management retains State Street as its sub-administrator
under a Sub-Administration Agreement. Management pays State Street a fee
for all services received under this agreement.
The Board adopted a non-fee distribution plan for the Fund's Class I.
For the Fund's Class S, Management acts as agent in arranging for the sale
of class shares without commission and bears advertising and promotion
expenses. The Board has adopted a distribution plan (the "Plan") with
respect to this class, pursuant to Rule 12b-1 under the 1940 Act. The Plan
provides that, as compensation for administrative and other services
provided to this class, Management's activities and expenses related to the
sale and distribution of this class of shares, and ongoing services
provided to investors in this class, Management receives from this class a
fee at the annual rate of 0.25% of Class S's average daily net assets.
Management receives this amount to provide distribution and shareholder
servicing for this class and pays a portion of it to institutions that
provide such services. Those institutions may use the payments for, among
other purposes, compensating employees engaged in sales and/or shareholder
servicing. The amount of fees paid by this class during any year may be
more or less than the cost of distribution and other services provided to
this class. NASD rules limit the amount of annual distribution fees that
may be paid by a mutual fund and impose a ceiling on the cumulative
distribution fees paid. The Trust's Plan complies with those rules.
Management has contractually undertaken through December 31, 2008 to
reimburse the Fund's Class I and Class S shares for their operating
expenses (excluding the fees payable to Management (including the fees
payable to Management with respect to the Fund's Class S shares), interest,
taxes, brokerage commissions, extraordinary expenses, and transaction
costs) ("Operating Expenses") which exceed, in the aggregate, 1.00% and
1.25%, respectively, per annum of their average daily net assets (the
"Expense Limitation"). For the year ended December 31, 2004, no
reimbursement to the Fund's Class I and Class S shares was required. The
Fund's Class I and Class S shares each have agreed to repay Management
through December 31, 2011 for their excess Operating Expenses previously
reimbursed by Management, so long as their annual Operating Expenses during
that period do not exceed their Expense Limitations, and the repayments are
made within three years after the year in which Management issued the
reimbursement. During the year ended December 31, 2004, there was no
reimbursement to Management under these agreements. At December 31, 2004,
the Fund's Class I and Class S shares have no contingent liability to
Management under these agreements.
On October 31, 2003, Management and Neuberger, a member firm of the New
York Stock Exchange and sub-adviser to the Fund, became indirect
wholly-owned subsidiaries of Lehman Brothers Holdings Inc. ("Lehman"), a
publicly-owned holding company. Neuberger is retained by Management to
furnish it with investment recommendations and research information without
added cost to the Fund. Several individuals who are officers and/or
Trustees of the Trust are also employees of Neuberger and/or Management.
14
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
On July 1, 2003, the Fund entered into a commission recapture program,
which enables it to pay some of its operational expenses by recouping a
portion of the commissions it pays to a broker that is not a related party
of the Fund. Expenses paid through this program may include costs of
custodial, transfer agency or accounting services. For the year ended
December 31, 2004, the impact of this arrangement was a reduction of
expenses of $9,114.
The Fund has an expense offset arrangement in connection with its custodian
contract. For the year ended December 31, 2004, the impact of this
arrangement, was a reduction of expenses of $51.
Note C--Securities Transactions:
During the year ended December 31, 2004, there were purchase and sale
transactions (excluding short-term securities) of $39,861,848 and
$54,763,970, respectively.
During the year ended December 31, 2004, brokerage commissions on
securities transactions amounted to $133,229, of which Neuberger received
$0, Lehman received $25,386 and other brokers received $107,843.
Note D--Fund Share Transactions:
Share activity for the years ended December 31, 2004 and December 31, 2003
was as follows:
For the Year Ended December 31, 2004
Shares
Issued on
Reinvestment of
Dividends and
Shares Sold Distributions Shares Redeemed Total
Class I 1,465,738 13,945 (2,616,915) (1,137,232)
Class S 8,295 - (973) 7,322
For the Year Ended December 31, 2003
Shares
Issued on
Reinvestment of
Dividends and
Shares Sold Distributions Shares Redeemed Total
Class I 5,816,296 101,921 (6,922,626) (1,004,409)
Class S 1,657 18 (222) 1,453
15
Notes to Financial Statements Guardian Portfolio cont'd
- -------------------------------------------------------
Note E--Line of Credit:
At December 31, 2004, the Fund was a participant in a single committed,
unsecured $150,000,000 line of credit with State Street, to be used only
for temporary or emergency purposes. Interest is charged on borrowings
under this agreement at the overnight Federal Funds Rate plus 0.50% per
annum. A facility fee of 0.10% per annum of the available line of credit is
charged, of which the Fund has agreed to pay its pro rata share, based on
the ratio of its individual net assets to the net assets of all
participants at the time the fee is due and payable. The fee is paid
quarterly in arrears. No compensating balance is required. Other investment
companies managed by Management also participate in this line of credit on
the same terms. Because several investment companies participate, there is
no assurance that the Fund will have access to all or any part of the
$150,000,000 at any particular time. The Fund had no loans outstanding
pursuant to this line of credit at December 31, 2004, nor had the Fund
utilized this line of credit at any time prior to that date.
Note F--Investments in Affiliates*:
Income from
Investments
Balance of Gross Balance of in Affiliated
Shares Held Purchases Gross Sales Shares Held Value Issuers
December 31, and and December 31, December 31, Included in
Name of Issuer 2003 Additions Reductions 2004 2004 Total Income
N&B Securities Lending
Quality Fund, LLC ** 560,500 3,269,355,820 3,257,802,620 12,113,700 $12,113,700 $40,102
Neuberger Berman
Institutional Cash
Fund Trust Class*** 6,191,373 39,801,746 45,993,119 - - 37,811
Neuberger Berman Prime
Money Fund
Trust Class*** - 5,567,573 84,284 5,483,289 5,483,289 1,406
----------- -------
Total $17,596,989 $79,319
----------- -------
* Affiliated issuers, as defined in the 1940 Act, include issuers in which
the Fund held 5% or more of the outstanding voting securities.
** The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans. The Fund's shares in the
Quality Fund are non-voting. However, because all shares of the Quality
Fund are held by funds in the related investment management complex, the
Quality Fund may be considered an affiliate of the Fund.
*** Neuberger Berman Institutional Cash Fund (the "Cash Fund") and Neuberger
Berman Prime Money Fund ("Prime Money") are also managed by Neuberger
Berman Management Inc. and may be considered affiliates since they have the
same officers, Board members, and investment manager as the Fund and
because, at times, the Fund may own 5% or more of the outstanding voting
securities of the Cash Fund or Prime Money, respectively.
16
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Financial Highlights Guardian Portfolio
- ---------------------------------------
The following tables include selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.++
Year
Ended December 31,
--------------------------------------------------------
Class I+
2004 2003 2002 2001 2000
Net Asset Value, Beginning of Year $ 13.98 $ 10.70 $ 14.64 $ 15.93 $ 15.85
-------- -------- -------- -------- --------
Income From Investment Operations
Net Investment Income (Loss) .04 .03 .10 .11 .09
Net Gains or Losses on Securities (both realized and unrealized) 2.17 3.36 (3.95) (.33) .08\Y
-------- -------- -------- -------- ---------
Total From Investment Operations 2.21 3.39 (3.85) (.22) .17
-------- -------- -------- -------- ---------
Less Distributions From:
Net Investment Income (.02) (.11) (.09) (.07) (.09)
Net Capital Gains - - - (1.00) -
-------- -------- -------- -------- ---------
Total Distributions (.02) (.11) (.09) (1.07) (.09)
-------- -------- -------- -------- ---------
Net Asset Value, End of Year $ 16.17 $ 13.98 $ 10.70 $ 14.64 $ 15.93
-------- -------- -------- -------- ---------
Total Return++ +15.81% +31.76% -26.45% -1.51% +1.13%
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $ 177.3 $ 169.2 $ 140.3 $ 190.8 $ 131.1
Ratio of Gross Expenses to Average Net Assets# .98% .97% .98% .99% 1.00%
Ratio of Net Expenses to Average Net Assets[sec] .97% .97% .98% .99% 1.00%
Ratio of Net Investment Income (Loss) to Average Net Assets .25% .25% .81% .74% .57%
Portfolio Turnover Rate 24% 58% 147% 79% 124%
Period from
August 2,
2002^
Year Ended December 31, to December 31,
----------------------- ---------------
Class S
2004 2003 2002
Net Asset Value, Beginning of Period $ 14.02 $ 10.69 $ 11.23
------- ------- -------
Income From Investment Operations
Net Investment Income (Loss) .00 .00 .03
Net Gains or Losses on Securities (both realized and unrealized) 2.18 3.35 (.57)
------- ------- --------
Total From Investment Operations 2.18 3.35 (.54)
------- ------- --------
Less Distributions From:
Net Investment Income - (.02) -
------- -------- ---------
Net Asset Value, End of Period $ 16.20 $ 14.02 $ 10.69
------- -------- ---------
Total Return++ +15.55% +31.39% -4.81%**
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 0.3 $ 0.1 $ 0.1
Ratio of Gross Expenses to Average Net Assets# 1.23% 1.22% 1.24%*
Ratio of Net Expenses to Average Net Assets[sec] 1.22% 1.22% 1.24%*
Ratio of Net Investment Income (Loss) to Average Net Assets .03% .02% .63%*
Portfolio Turnover Rate 24% 58% 147%
See Notes to Financial Highlights 17
Notes to Financial Highlights Guardian Portfolio
- ------------------------------------------------
+ The per share amounts and ratios which are shown reflect income and
expenses, including the Fund's Class I proportionate share of AMT Guardian
Investment's income and expenses through April 30, 2000 under the prior
master/feeder fund structure.
++ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each
fiscal period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee future
results. Current returns may be lower or higher than the performance data
quoted. Investment returns and principal may fluctuate and shares when
redeemed may be worth more or less than original cost. Total return would
have been lower/higher if Management had not waived/recouped certain
expenses. The total return information shown does not reflect charges and
other expenses that apply to the separate account or the related insurance
policies, and the inclusion of these charges and other expenses would
reduce the total return for all fiscal periods shown. Performance data
current to the most recent month-end are available at www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
[sec] After reimbursement of expenses previously paid by the administrator. Had
the administrator not been reimbursed, the annualized ratios of net
expenses to average daily net assets would have been:
Year Ended December 31,
2001 2000 1999
Guardian Portfolio Class I .97% .99% .98%
After waiver of a portion of the investment management fee. Had the
investment manager not undertaken such action, the annualized ratios of net
expenses to average daily net assets would have been:
Year Ended Year Ended
December 31, 2004 December 31, 2003
Guardian Portfolio Class I .97% .98%
Guardian Portfolio Class S 1.22% 1.22%
^ The date investment operations commenced.
++ The per share amounts which are shown have been computed based on the
average number of shares outstanding during each fiscal period.
* Annualized.
** Not annualized.
\Y The amounts shown at this caption for a share outstanding may not accord
with the change in aggregate gains and losses in securities for the fiscal
period because of the timing of sales and repurchase of class shares in
relation to fluctuating market values for the Fund.
18
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Report of Independent Registered Public Accounting Firm
- -------------------------------------------------------
To the Board of Trustees of
Neuberger Berman Advisers Management Trust and
Shareholders of Guardian Portfolio
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Guardian Portfolio, one of the series
constituting the Neuberger Berman Advisers Management Trust (the "Trust"), as
of December 31, 2004, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights. Our procedures included confirmation of securities owned as of
December 31, 2004, by correspondence with the custodian and brokers or other
appropriate auditing procedures where replies from brokers were not received.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Guardian Portfolio of Neuberger Berman Advisers Management Trust at December
31, 2004, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and its
financial highlights for each of the periods indicated therein, in conformity
with U.S. generally accepted accounting principles.
/s/ Ernest + Young LLP
Boston, Massachusetts
February 4, 2005
19
Trustees and Officers (Unaudited)
- ---------------------------------
The following tables set forth information concerning the trustees and officers
of the Trust. All persons named as trustees and officers also serve in similar
capacities for other funds administered or managed by NB Management and
Neuberger Berman. The Statement of Additional Information includes additional
information about fund trustees and is available upon request, without charge,
by calling (800) 877-9700.
Information about the Board of Trustees
- ----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ----------------------------------------------------------------------------------------------------------------------------------
John Cannon (74) Trustee since Consultant. Formerly, 41 Independent Trustee or Director of
2000 Chairman, CDC Investment three series of Oppenheimer Funds:
Advisers (registered investment Limited Term New York Municipal
adviser) 1993 to January 1999; Fund, Rochester Fund Municipals,
formerly, President and Chief and Oppenheimer Convertible
Executive Officer, AMA Securities Fund, since 1992.
Investment Advisors, an affiliate
of the American Medical
Association.
- ----------------------------------------------------------------------------------------------------------------------------------
Faith Colish (69) Trustee since Counsel, Carter Ledyard & 41 Director, American Bar Retirement
1984 Millburn LLP (law firm) since Association (ABRA) since 1997
October 2002; formerly, (not-for-profit membership
Attorney-at-Law and President, association).
Faith Colish, A Professional
Corporation, 1980 to 2002.
- ----------------------------------------------------------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) Trustee since Consultant; Retired President 41 None.
1989 and Trustee, Teachers Insurance
& Annuity (TIAA) and College
Retirement Equities Fund
(CREF).
- ----------------------------------------------------------------------------------------------------------------------------------
C. Anne Harvey (67) Trustee since Consultant, C. A. Harvey 41 President, Board of Associates to
1998 Associates, since June 2001; The National Rehabilitation
formerly, Director, AARP, 1978 Hospital's Board of Directors since
to December 2001. 2002; formerly, Member, Individual
Investors Advisory Committee to the
New York Stock Exchange Board
of Directors, 1998 to June 2002;
formerly, Member, American
Savings Education Council's Policy
Board (ASEC), 1998 to 2000;
formerly, Member, Executive
Committee, Crime Prevention
Coalition of America, 1997 to 2000.
- ----------------------------------------------------------------------------------------------------------------------------------
20
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- ----------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ---------------------------------------------------------------------------------------------------------------------------------
Barry Hirsch (71) Trustee since Attorney-at-Law. Formerly, 41 None.
2000 Senior Counsel, Loews
Corporation (diversified
financial corporation) May 2002
until April 2003; formerly,
Senior Vice President, Secretary
and General Counsel,
Loews Corporation.
- -------------------------------------------------------------------------------------------------------------------------------
Robert A. Kavesh (77) Trustee since Marcus Nadler Professor 41 Director, DEL Laboratories, Inc.
2000 Emeritus of Finance and (cosmetics and pharmaceuticals)
Economics, New York since 1978; Director, The Caring
University Stern School Community (not-for-profit).
of Business.
- -------------------------------------------------------------------------------------------------------------------------------
Howard A. Mileaf (67) Trustee since Retired. Formerly, Vice 41 Director, WHX Corporation
1999 President and Special Counsel, (holding company) since August
WHX Corporation (holding 2002; Director, Webfinancial
company) 1993 to 2001. Corporation (holding company)
since December 2002; Director, State
Theatre of New Jersey (not-for-
profit theater) since 2000; formerly,
Director, Kevlin Corporation
(manufacturer of microwave and
other products).
- -------------------------------------------------------------------------------------------------------------------------------
William E. Rulon (72) Trustee since Retired. Formerly, Senior Vice 41 Director, Pro-Kids Golf and
2000 President, Foodmaker, Inc. Learning Academy (teach golf and
(operator and franchiser of computer usage to "at risk" children)
restaurants) until January 1997. since 1998; formerly, Director,
Prandium, Inc. (restaurants) from
March 2001 until July 2002.
- -------------------------------------------------------------------------------------------------------------------------------
Cornelius T. Ryan (73) Trustee since Founding General Partner, 41 Director, Capital Cash Management
2000 Oxford Partners and Oxford Trust (money market fund),
Bioscience Partners (venture Naragansett Insured Tax-Free
capital partnerships) and Income Fund, Rocky Mountain
President, Oxford Venture Equity Fund, Prime Cash Fund,
Corporation. several private companies and
QuadraMed Corporation
(NASDAQ).
- -------------------------------------------------------------------------------------------------------------------------------
21
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ---------------------------------------------------------------------------------------------------------------------------------
Tom D. Seip (54) Trustee since General Partner, Seip 41 Director, H&R Block, Inc. (financial
2000 Investments LP (a private services company) since May 2001;
investment partnership); Director, Forward Management, Inc.
formerly, President and CEO, (asset management) since 2001;
Westaff, Inc. (temporary formerly, Director, General Magic
staffing), May 2001 to January (voice recognition software) 2001
2002; Senior Executive at the until 2002; formerly, Director,
Charles Schwab Corporation E-Finance Corporation (credit
from 1983 to 1999, including decisioning services) 1999 to 2003;
Chief Executive Officer, formerly, Director, Save-Daily.com
Charles Schwab Investment (micro investing services) 1999 to
Management, Inc. and Trustee, 2003; Director, Offroad Capital Inc.
Schwab Family of Funds and (pre-public internet commerce
Schwab Investments from company).
1997 to 1998 and Executive
Vice President-Retail
Brokerage, Charles Schwab
Investment Management from
1994 to 1997.
- ---------------------------------------------------------------------------------------------------------------------------------
Candace L. Straight (57) Trustee since Private investor and consultant 41 Director, The Proformance Insurance
1999 specializing in the insurance Company (personal lines property
industry; formerly, Advisory and casualty insurance company)
Director, Securitas Capital since March 2004; Director,
LLC (a global private equity Providence Washington (property
investment firm dedicated to and casualty insurance company)
making investments in the since December 1998; Director,
insurance sector) 1998 to Summit Global Partners (insurance
December 2002. brokerage firm) since October 2000.
- ---------------------------------------------------------------------------------------------------------------------------------
Peter P. Trapp (60) Trustee since Regional Manager for Atlanta 41 None.
1984 Region, Ford Motor Credit
Company since August 1997;
formerly, President, Ford Life
Insurance Company, April 1995
to August 1997.
- ---------------------------------------------------------------------------------------------------------------------------------
22
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- ---------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Position and Fund Complex
"Interested Persons" Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ---------------------------------------------------------------------------------------------------------------------------------
Edward I. O'Brien* (76) Trustee since Formerly, Member, Investment
2000 Policy Committee, Edward 41 Director, Legg Mason, Inc. (financial
Jones 1993 to 2001; President, services holding company) since
Securities Industry Association 1993; formerly, Director, Boston
("SIA") (securities industry's Financial Group (real estate and tax
representative in government shelters) 1993 to 1999.
relations and regulatory
matters at the federal and state
levels) 1974 to 1992; Adviser to
SIA, November 1992 to
November 1993.
- ---------------------------------------------------------------------------------------------------------------------------------
Jack L. Rivkin* (64) President and Executive Vice President and 41 Director, Dale Carnegie and
Trustee since Chief Investment Officer, Associates, Inc. (private company)
December Neuberger Berman Inc. since 1998; Director, Emagin Corp.
2002 (holding company) since 2002 (public company) since 1997;
and 2003, respectively; Director, Solbright, Inc. (private
Executive Vice President and company) since 1998; Director,
Chief Investment Officer, Infogate, Inc. (private company)
Neuberger Berman since since 1997; Director, Broadway
December 2002 and 2003, Television Network (private
respectively; Director and company) since 2000.
Chairman, NB Management
since December 2002; formerly,
Executive Vice President,
Citigroup Investments, Inc.
from September 1995 to
February 2002; formerly,
Executive Vice President,
Citigroup Inc. from September
1995 to February 2002.
- ---------------------------------------------------------------------------------------------------------------------------------
23
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Position and Fund Complex
"Interested Persons" Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ---------------------------------------------------------------------------------------------------------------------------------
Peter E. Sundman* (45) Chairman of Executive Vice President, 41 Director and Vice President,
the Board, Neuberger Berman Inc. Neuberger & Berman Agency, Inc.
Chief (holding company) since 1999; since 2000; formerly, Director,
Executive Head of Neuberger Berman Neuberger Berman Inc. (holding
Officer and Inc.'s Mutual Funds and company) from October 1999
Trustee Institutional Business since through March 2003; Trustee,
since 2000 1999; President and Director, Frost Valley YMCA.
President NB Management since 1999;
and Chief Executive Vice President,
Executive Neuberger Berman since 1999;
Officer from formerly, Principal, Neuberger
1999 to 2000 Berman from 1997 until 1999;
formerly, Senior Vice President,
NB Management from 1996
until 1999.
- ---------------------------------------------------------------------------------------------------------------------------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the Trust's Trust Instrument, each Trustee shall hold office
for life or until his or her successor is elected or the Trust terminates;
except that (a) any Trustee may resign by delivering a written resignation;
(b) any Trustee may be removed with or without cause at any time by a
written instrument signed by at least two-thirds of the other Trustees; (c)
any Trustee who requests to be retired, or who has become unable to serve,
may be retired by a written instrument signed by a majority of the other
Trustees; and (d) any Trustee may be removed at any shareholder meeting by
a vote of at least two-thirds of the outstanding shares.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
(4) Retired (effective the close of business December 31, 2004).
* Indicates a trustee who is an "interested person" within the meaning of the
1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of the Trust by
virtue of the fact that they are officers and/or directors of NB Management
and Executive Vice Presidents of Neuberger Berman. Mr. O'Brien is an
interested person of the Trust by virtue of the fact that he is a director
of Legg Mason, Inc., a wholly owned subsidiary of which, from time to time,
serves as a broker or dealer to the Funds and other funds for which NB
Management serves as investment manager.
24
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Information about the Officers of the Trust
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------------------------------------------------
Claudia A. Brandon (48) Secretary since 1985 Vice President-Mutual Fund Board Relations,
NB Management since 2000; Vice President, Neuberger
Berman since 2002 and employee since 1999; formerly,
Vice President, NB Management from 1986 to 1999;
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (four since 2002, three since 2003, and four
since 2004).
Philip R. Carroll (70) Chief Compliance Officer Vice President, Neuberger Berman since 2002; Associate
since 2004 General Counsel, Neuberger Berman since 2001; Director-
Mutual Fund Compliance, NB Management since 1995;
Chief Legal Officer, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (ten since 2003 and four since
2004); Chief Compliance Officer, fourteen registered
investment companies for which NB Management acts
as investment manager and administrator (fourteen since
2004) and Lehman Brothers/First Trust Income
Opportunity Fund.
Robert Conti (48) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003,
formerly, Vice President, Neuberger Berman from 1999
until 2003; Senior Vice President, NB Management since
2000; formerly, Controller, NB Management until 1996;
formerly, Treasurer, NB Management from 1996 until
1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Brian J. Gaffney (51) Vice President since 2000 Managing Director, Neuberger Berman since 1999;
Senior Vice President, NB Management since 2000;
formerly, Vice President, NB Management from 1997
until 1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Sheila R. James (39) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1991 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
25
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- ---------------------------------------------------------------------------------------------------------------------------
Kevin Lyons (49) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1993 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (ten since 2003 and four since 2004).
John M. McGovern (34) Assistant Treasurer since 2002 Vice President, Neuberger Berman since January 2004;
Employee, NB Management since 1993; Assistant
Treasurer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and
four since 2004).
Barbara Muinos (46) Treasurer and Principal Financial Vice President, Neuberger Berman since 1999; formerly,
and Accounting Officer since 2002; Assistant Vice President, NB Management from 1993 to
prior thereto, Assistant Treasurer 1999; Treasurer and Principal Financial and Accounting
since 1996 Officer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003,
and four since 2004); formerly, Assistant Treasurer,
three registeredinvestment companies for which NB Management
actsas investment manager and administrator from 1996
until 2002.
Frederic B. Soule (58) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003;
formerly, Vice President, Neuberger Berman from 1999
until 2003; formerly, Vice President, NB Management
from 1995 until 1999; Vice President, fourteen registered
investment companies for which NB Management acts as
investment manager and administrator (three since 2000,
four since 2002, three since 2003, and four since 2004).
- -------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the By-Laws of the Trust, each officer elected by the Trustees
shall hold office until his or her successor shall have been elected and
qualified or until his or her earlier death, inability to serve, or
resignation. Officers serve at the pleasure of the Trustees and may be
removed at any time with or without cause.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
26
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Proxy Voting Policies and Procedures
- ------------------------------------
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available, without
charge, by calling 1-800-877-9700 (toll-free) and on the website of the
Securities and Exchange Commission, at www.sec.gov. Information regarding how
the Trust voted proxies relating to portfolio securities during the most recent
12-month period ended June 30 will also be available without charge, by calling
1-800-877-9700 (toll-free), on the website of the Securities and Exchange
Commission, at www.sec.gov, and on the Trust's website at www.nb.com.
Quarterly Portfolio Schedule
- ----------------------------
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange
Commission's website at www.sec.gov and may be reviewed and copied at the
Securities and Exchange Commission's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The information on Form N-Q is available upon request,
without charge, by calling 1-800-877-9700 (toll-free).
27
Annual Report
December 31, 2004
[NEUBERGER BERMAN]
A Lehman Brothers Company
Neuberger Berman
Advisers
Management
Trust
High
Income
Bond
Portfolio
E0633 02/05
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
High Income Bond Portfolio Manager's Commentary
- -----------------------------------------------
From its inception on September 15, 2004 through the end of the reporting
period on December 31, 2004, the Neuberger Berman AMT High Income Bond
Portfolio provided a total return of 2.43%, compared to a gain of 2.82% for its
benchmark, the Lehman Brothers Intermediate Ba U.S. High Yield Index.2 Although
the portfolio has only been open a short time, we are pleased with its results
so far.
I would like to take this opportunity to welcome our shareholders and reiterate
our investment approach to the high-yield market. The portfolio focuses on
higher quality high-yield bonds where we find value versus U.S. Treasury
securities of corresponding maturities. This results in a portfolio that seeks
to maintain an average credit quality of "Ba3" from Moody's or "BB-" from
Standard & Poor's.
In managing the portfolio, we diversify its assets across a broad range of
issuers and industries, and normally expect to maintain an assumed
dollar-weighted average maturity of between five and seven years. We seek to
manage credit risk and minimize interest rate risk through credit analysis,
diversification, and an emphasis on short- to intermediate-term maturities.
Depending on market- and issuer-specific conditions, we generally sell any
bonds within a reasonable period of time after they fall below a rating of "B3"
from Moody's or "B-" from Standard & Poor's.
In general, high-yield bonds generated strong gains over the 12-month reporting
period as their spreads over Treasuries narrowed steadily, reflecting healthy
economic conditions, as well as stronger corporate balance sheets. Over the
last several years, more stringent cost controls have helped many companies
improve profit margins, while low interest rates have allowed them to
restructure their debt and reduce their financing costs. In 2004, the weakening
dollar benefited many industrial issuers: utilities were able to repair their
balance sheets and enjoy credit upgrades, and energy companies capitalized on
high oil prices.
Looking forward, an expanding economy with moderate inflation would provide a
positive backdrop for the high-yield market, even if the Federal Reserve
continues to increase rates. Within this sector, of course, a relatively
cautious approach is always appropriate.
Sincerely,
/s/Wayne C. Plewniak
WAYNE PLEWNIAK
PORTFOLIO MANAGER
1
High Income Bond Portfolio Manager's Commentary cont'd
- ------------------------------------------------------
- --------------------------------------------------------------------------------
Cumulative Total Return(1)
High Income Lehman Intermediate Ba
Bond Portfolio U.S High Yield Index(2)
Life of Fund 2.43% 2.82%
- --------------------------------------------------------------------------------
Inception Date 09/15/2004
Performance data quoted represent past performance, which is no guarantee of
future results. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed may be worth more or less
than their original cost. Results are shown on a "total return" basis and
include reinvestment of all dividends and capital gain distributions.
Current performance may be lower or higher than the performance data quoted. For
performance data current to the most recent month end, please visit www.nb.com/
performance.
Comparison of a $10,000 Investment
- -----------------------------------------------------------------------
High Income Lehman Intermediate Ba
Portfolio US High Yield Index
- -----------------------------------------------------------------------
9/15/2004 $ 10,000 $ 10,000
- -----------------------------------------------------------------------
9/30/2004 $ 9,950 $ 10,039
- -----------------------------------------------------------------------
10/31/2004 $ 10,090 $ 10,170
- -----------------------------------------------------------------------
11/30/2004 $ 10,110 $ 10,191
- -----------------------------------------------------------------------
12/31/2004 $ 10,243 $ 10,282
- -----------------------------------------------------------------------
The chart shows the value of a hypothetical $10,000 investment in the Fund over
the past 10 fiscal years, or since the Fund's inception, if it has not operated
for 10 years. The result is compared with benchmarks, which may include the
reinvestment of dividends and capital gain distributions. Results represent past
performance and do not indicate future results. The chart and table do not
reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares.
Please see Endnotes for additional information.
Rating Diversification
(% by Ratings)
AAA/Government/Government
Agency .............. 0.0%
AA ...................... 0.0
A ....................... 0.0
BBB ..................... 4.3
BB ...................... 47.6
B ....................... 48.1
CCC ..................... 0.0
CC ...................... 0.0
C ....................... 0.0
D ....................... 0.0
Not Rated ............... 0.0
Short Term .............. 0.0
2
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Endnotes
- --------
1. 2.43% was the cumulative total return from September 15, 2004
(its date of inception) through December 31, 2004. Neuberger
Berman Management Inc. ("NBMI") has agreed to absorb certain
expenses of the AMT Portfolios. Without this arrangement, which
is subject to change, the total returns of the Portfolios would
be less. Total return includes reinvestment of dividends and
capital gain distributions. Performance data quoted represent
past performance and the investment return and principal value
of an investment will fluctuate so that the shares, when
redeemed, may be worth more or less than original cost. The
performance information does not reflect fees and expenses of
the insurance companies.
2. Lehman Brothers Intermediate Ba U.S. High Yield Index is an
unmanaged index comprised of BB rated bonds with maturities of
less than 10 years. Please note that indices do not take into
account any fees and expenses of investing in the individual
securities that they track, and that individuals cannot invest
directly in any index. Data about the performance of this index
is prepared or obtained by NBMI and includes reinvestment of
all dividends and capital gain distributions. The Portfolio
many invest in many securities not included in the
above-described index.
The investments for the Portfolio are managed by the same
portfolio manager(s) who manage one or more other mutual funds
that have similar names, investment objectives and investment
styles as the Portfolio. You should be aware that the Portfolio
is likely to differ from the other mutual funds in size, cash
flow pattern and tax matters. Accordingly, the holdings and
performance of the Portfolio can be expected to vary from those
of the other mutual funds.
The composition, industries and holdings of the Portfolio are
subject to change.
Shares of the separate Portfolios of Neuberger Berman Advisers
Management Trust are sold only through the currently effective
prospectus and are not available to the general public. Shares
of this Portfolio may be purchased only by life insurance
companies to be used in their separate accounts that fund
variable annuity and variable life insurance policies and by
qualified pension and retirement plans.
(C) 2005 Neuberger Berman Management Inc., distributor. All
rights reserved.
3
Information About Your Fund's Expenses
- --------------------------------------
This table is designed to provide information regarding costs related to your
investments. All mutual funds incur operating expenses, which include
management fees, administrative services and shareholder reports among others.
The following example is based on an investment of $1,000 made at the beginning
of the period shown and held for the entire period. The table illustrates the
fund's costs in two ways:
Actual Expenses: The first section of the
table provides
information about actual
account values and
actual expenses in
dollars. You may use the
information in this
line, together with the
amount you invested, to
estimate the expenses
you paid over the
period.
Hypothetical Example for Comparison Purposes: The second section of
the table provides
information about
hypothetical account
values and hypothetical
expenses based on the
Fund's actual expense
ratio and an assumed
rate of return at 5% per
year before expenses.
This return is not the
Fund's actual return.
The hypothetical account
values and expenses may
not be used to estimate
the actual ending
account balance or
expenses you paid for
the period. You may use
this information to
compare the ongoing
costs of investing in
this Fund versus other
funds. To do so, compare
this 5% hypothetical
example with the 5%
hypothetical examples
that appear in the
shareholder reports of
other funds.
Expense Information As of 12/31/04 (Unaudited)
- ----------------------------------------------
Neuberger Berman Advisers Management Trust High Income Bond Portfolio
- ---------------------------------------------------------------------
Beginning Ending Expenses Paid
Actual Account Value Account Value During the Period*
Class S $1,000 $ 1,024.30 $ 3.29
Hypothetical (5% annual return before expenses)** $1,000 $ 1,011.51 $ 3.26
Class S
* Expenses are equal to the expense ratio for the class,
multiplied by the average account value over the period,
multiplied by 108/366 (to reflect the period shown of September
15, 2004 to December 31, 2004).
** Hypothetical 5% annual return before expenses is calculated by
multiplying the number of days in the most recent period divided
by 366.
4
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments High Income Bond Portfolio
- --------------------------------------------------
Principal Amount Rating[sec] Market Value+
Moody's S&P
Corporate Debt Securities (90.1%)
$ 125,000 Abitibi-Consolidated, Inc., Guaranteed Notes, 7.88%, due 8/1/09 Ba3 BB- $ 132,188
125,000 Allied Waste North America, Inc., Guaranteed Senior Secured Notes,
Ser. B, 9.25%, due 9/1/12 B2 BB- 135,312
125,000 Aviall, Inc., Senior Notes, 7.63%, due 7/1/11 B1 BB 133,125
125,000 Boise Cascade LLC, Floating Quarterly Senior Notes,
5.01%, due 1/18/05 B1 B+ 129,688*
125,000 Case New Holland, Inc., Senior Notes, 6.00%, due 6/1/09 Ba3 BB- 121,875*
125,000 D. R. Horton, Inc., Guaranteed Senior Unsecured Notes,
5.00%, due 1/15/09 Ba1 BB+ 125,938
125,000 Evergreen Resources, Inc., Senior Subordinated Notes,
5.88%, due 3/15/12 Baa3 BBB- 130,608
125,000 Ferrellgas L.P., Senior Notes, 6.75%, due 5/1/14 Ba3 BB- 128,438
125,000 Lamar Media Corp., Guaranteed Notes, 7.25%, due 1/1/13 Ba3 B 135,000
125,000 Lyondell Chemical Co., Guaranteed Senior Notes,
10.50%, due 6/1/13 B1 B+ 148,750
125,000 MCI, Inc., Senior Notes, 6.69%, due 5/1/09 B2 B+ 129,375
125,000 MGM Mirage, Inc., Senior Notes, 6.00%, due 10/1/09 Ba1 BB+ 128,125
125,000 Nalco Co., Senior Notes, 7.75%, due 11/15/11 B2 B- 135,000
125,000 Norampac, Inc., Senior Notes, 6.75%, due 6/1/13 Ba2 BB+ 131,563
125,000 Norske Skog Canada, Ltd., Guaranteed Senior Notes, Ser. D,
8.63%, due 6/15/11 Ba3 BB- 134,062
125,000 Owens-Brockway Glass Container, Inc., Senior Notes,
8.25%, due 5/15/13 B2 B 137,500
125,000 Salem Communications Holding Corp., Guaranteed Senior
Subordinated Notes, 7.75%, due 12/15/10 B2 B- 135,156
125,000 Service Corp. International, Notes, 6.88%, due 10/1/07 Ba3 BB 130,156
125,000 Smithfield Foods, Inc., Senior Notes, 7.00%, due 8/1/11 Ba2 BB 133,437*
125,000 Tembec Industries, Inc., Guaranteed Notes, 8.63%, due 6/30/09 B2 B 125,625
125,000 Warner Music Group, Senior Subordinated Notes,
7.38%, due 4/15/14 B3 B- 128,125*
-----------
Total Corporate Debt Securities (Cost $2,766,756) 2,769,046
-----------
Convertible Bonds (8.1%)
125,000 Fairchild Semiconductor, Inc., Senior Subordinated Notes, 5.00%,
due 11/1/08 B 126,094
125,000 Nortel Networks Corp., Notes, 4.25%, due 9/1/08 B3 B- 121,562
-----------
Total Convertible Bonds (Cost $244,264) 247,656
-----------
Total Investments (98.2%) (Cost $3,011,020) 3,016,702#
Cash, receivables and other assets, less liabilities (1.8%) 56,423
-----------
Total Net Assets (100.0%) $ 3,073,125
-----------
5
See Notes to Schedule of Investments
Notes to Schedule of Investments High Income Bond Portfolio
- -----------------------------------------------------------
+ Investments in securities by Neuberger Berman Advisers Management Trust High
Income Bond Portfolio (the "Fund") are valued daily by obtaining bid price
quotations from independent pricing services on all securities available in
each service's data base. For all other securities requiring daily
quotations, bid prices are obtained from principal market makers in those
securities or, if quotations are not available, by a method the Board of
Trustees of Neuberger Berman Advisers Management Trust believes accurately
reflects fair value. Numerous factors may be considered when determining the
fair value of a security, including available analyst, media or other
reports, trading in futures or ADRs and whether the issuer of the security
being fair valued has other securities outstanding. Foreign security prices
are furnished by independent quotation services and expressed in local
currency values. Foreign security prices are translated from the local
currency into U.S. dollars using the exchange rate as of 12:00 noon, Eastern
time. Short-term debt securities with less than 60 days until maturity may
be valued at cost which, when combined with interest earned, approximates
market value.
# At December 31, 2004, the cost of investments for U.S. Federal income tax
purposes was $3,011,020. Gross unrealized appreciation of investments was
$27,667 and gross unrealized depreciation of investments was $21,985,
resulting in net unrealized appreciation of $5,682, based on cost for U.S.
Federal income tax purposes.
* Security exempt from registration under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers under Rule 144A and are deemed liquid. At
December 31, 2004, these securities amounted to $513,125 or 16.7% of net
assets.
[sec] Credit ratings are unaudited.
6
See Notes to Financial Statements
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Assets and Liabilities
- ------------------------------------
High Income
Neuberger Berman Advisers Management Trust Bond Portfolio
Assets
Investments in securities, at market value* (Note A)-see Schedule of Investments:
- ---------------------------------------------------------------------------------------------------
Unaffiliated issuers $ 3,016,702
- ---------------------------------------------------------------------------------------------------
Cash 5,076
- ---------------------------------------------------------------------------------------------------
Interest receivable 44,490
- ---------------------------------------------------------------------------------------------------
Receivable from administrator-net (Note B) 9,555
===================================================================================================
Total Assets 3,075,823
===================================================================================================
Liabilities
Payable to investment manager (Note B) 1,207
- ---------------------------------------------------------------------------------------------------
Accrued expenses and other payables 1,491
===================================================================================================
Total Liabilities 2,698
===================================================================================================
Net Assets at value $ 3,073,125
===================================================================================================
Net Assets consist of:
Paid-in capital $ 3,044,087
- ---------------------------------------------------------------------------------------------------
Accumulated net realized gains (losses) on investments 23,356
- ---------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) in value of investments 5,682
===================================================================================================
Net Assets at value $ 3,073,125
===================================================================================================
Shares Outstanding ($.001 par value; unlimited shares authorized) 304,558
===================================================================================================
Net Asset Value, offering and redemption price per share $ 10.09
===================================================================================================
*Cost of investments:
Unaffiliated issuers $ 3,011,020
===================================================================================================
7
See Notes to Financial Statements
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST FOR THE PERIOD FROM SEPTEMBER 15,
2004 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 2004
Statement of Operations
- -----------------------
High Income
Neuberger Berman Advisers Management Trust Bond Portfolio
Investment Income
Interest income-unaffiliated issuers (Note A) $ 49,050
==============================================================================
Expenses:
Investment management fee (Note B) 4,298
- ------------------------------------------------------------------------------
Administration fee (Note B) 2,686
- ------------------------------------------------------------------------------
Audit fees 16,000
- ------------------------------------------------------------------------------
Custodian fees (Note B) 3,229
- ------------------------------------------------------------------------------
Distribution fees (Note B) 2,239
- ------------------------------------------------------------------------------
Legal fees 226
- ------------------------------------------------------------------------------
Shareholder reports 7,000
- ------------------------------------------------------------------------------
Trustees' fees and expenses 5,968
- ------------------------------------------------------------------------------
Miscellaneous 4
==============================================================================
Total expenses 41,650
Expenses reimbursed by administrator (Note B) (31,571)
Expenses reduced by custodian fee expense offset arrangement (Note B) (229)
==============================================================================
Total net expenses 9,850
==============================================================================
Net investment income (loss) 39,200
==============================================================================
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers 28,243
---------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities 5,682
===========================================================================
Net gain (loss) on investments 33,925
==============================================================================
Net increase (decrease) in net assets resulting from operations $ 73,125
==============================================================================
8
See Notes to Financial Statements
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Changes in Net Assets
- ----------------------------------
High Income
Bond Portfolio
Period from
September 15, 2004
(Commencement
of Operations) to
Neuberger Berman Advisers Management Trust December 31, 2004
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss) $ 39,200
- ------------------------------------------------------------------------------
Net realized gain (loss) on investments 28,243
- ------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments 5,682
==============================================================================
Net increase (decrease) in net assets resulting from operations 73,125
==============================================================================
Distributions to Shareholders From:
Net investment income (41,910)
- ------------------------------------------------------------------------------
Net realized gain on investments (4,080)
==============================================================================
Total distributions to shareholders (45,990)
==============================================================================
From Fund Share Transactions (Note D):
Proceeds from shares sold 3,000,000
- ------------------------------------------------------------------------------
Proceeds from reinvestment of dividends and distributions 45,990
==============================================================================
Net increase (decrease) from Fund share transactions 3,045,990
==============================================================================
Net Increase (Decrease) in Net Assets 3,073,125
Net Assets:
Beginning of period -
==============================================================================
End of period $3,073,125
==============================================================================
Undistributed net investment income (loss) at end of period $ -
==============================================================================
9
See Notes to Financial Statements
Notes to Financial Statements High Income Bond Portfolio
- --------------------------------------------------------
Note A--Summary of Significant Accounting Policies:
1 General: High Income Bond Portfolio (the "Fund") is a separate
operating series of Neuberger Berman Advisers Management Trust
(the "Trust"), a Delaware statutory trust organized pursuant to a
Trust Instrument dated May 23, 1994. The Trust is currently
comprised of eleven separate operating series (each a "Series,"
collectively, the "Funds") each of which (except Focus Portfolio)
is diversified. The Trust is registered as an open-end management
investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"), and its shares are registered under the
Securities Act of 1933, as amended (the "1933 Act"). The Fund had
no operations until September 15, 2004, other than matters
relating to its organization and registration of its shares as a
Series of the Trust under the 1933 Act. The Fund currently offers
only Class S shares. The Board of Trustees of the Trust (the
"Board") may establish additional series or classes of shares
without the approval of shareholders.
The assets of each Series belong only to that Series, and the
liabilities of each Series are borne solely by that Series and no
other.
The preparation of financial statements in accordance with U.S.
generally accepted accounting principles requires Neuberger Berman
Management Inc. ("Management") to make estimates and assumptions
at the date of the financial statements. Actual results could
differ from those estimates.
2 Portfolio valuation: Investment securities are valued as
indicated in the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund
are maintained in U.S. dollars. Foreign currency amounts are
translated into U.S. dollars using the exchange rate as of 12:00
noon, Eastern time, to determine the value of investments, other
assets and liabilities. Purchase and sale prices of securities,
and income and expenses, are translated into U.S. dollars at the
prevailing rate of exchange on the respective dates of such
transactions. Net unrealized foreign currency gain (loss) arises
from changes in the value of assets and liabilities, other than
investments in securities, as a result of changes in exchange
rates and is stated separately in the Statement of Operations.
4 Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Interest income,
including accretion of discount (adjusted for original issue
discount, where applicable), and amortization of premium, where
applicable, is recorded on the accrual basis. Realized gains and
losses from securities transactions and foreign currency
transactions, if any, are recorded on the basis of identified cost
and stated separately in the Statement of Operations.
5 Income tax information: The Funds are treated as separate
entities for U.S. Federal income tax purposes. It is the intention
of the Fund to qualify as a regulated investment company by
complying with the requirements of Subchapter M of the Internal
Revenue Code applicable to regulated investment companies and to
distribute substantially all of its earnings to its shareholders.
Therefore, no Federal income or excise tax provision is required.
10
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from
generally accepted accounting principles. These differences are
primarily due to differing treatments of income and gains on
various investment securities held by the Fund, timing differences
and differing characterization of distributions made by the Fund
as a whole. The Fund may also utilize earnings and profits
distributed to shareholders on redemption of shares as a part of
the dividends paid deduction for income tax purposes.
As determined on December 31, 2004, permanent differences
resulting primarily from different book and tax accounting for
characterization of distributions made by the Fund and
non-deductible start-up costs were reclassified at year end. These
reclassifications had no effect on net income, net assets or net
assets per share of the Fund.
The tax character of distributions paid during the period ended
December 31, 2004 was as follows:
Distributions Paid From:
Ordinary Income
$45,990
As of December 31, 2004, the components of distributable earnings (accumulated
losses) on a U.S. Federal income tax basis were as follows:
Unrealized Loss
Undistributed Appreciation Carryforwards
Ordinary Income (Depreciation) and Deferrals Total
$23,356 $5,682 $-- $29,038
There were no differences between book basis and tax basis distributable
earnings.
To the extent the Fund's net realized capital gains, if any, can be offset by
capital loss carryforwards, it is the policy of the Fund not to distribute such
gains.
6 Dividends and distributions to shareholders: The Fund earns
income, net of expenses, daily on its investments. Income
dividends and distributions from net realized capital gains, if
any, generally are distributed in October. Income dividends and
capital gain distributions to shareholders are recorded on the
ex-dividend date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld
by foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple
funds. Expenses directly attributable to a Series are charged to
that Series. Expenses of the Trust that are not directly
attributed to a Series are allocated among the Funds, on the basis
of relative net assets, except where a more appropriate allocation
of expenses to each of the Funds can otherwise be made fairly.
Expenses borne by the complex of related investment companies,
which includes open-end and closed-end investment companies for
which Management serves as investment manager, that are not
directly attributed to a Series or the Trust, are allocated among
the Fund and the other investment companies in the complex or
series thereof, on the basis of relative net assets, except where
a more appropriate allocation of expenses to each investment
company in the complex or series thereof can otherwise be made
fairly.
11
Notes to Financial Statements High Income Bond Portfolio cont'd
- ---------------------------------------------------------------
9 Repurchase agreements: The Fund may enter into repurchase
agreements with institutions that the Fund's investment manager
has determined are creditworthy. Each repurchase agreement is
recorded at cost. The Fund requires that the securities purchased
in a repurchase agreement be transferred to the custodian in a
manner sufficient to enable the Fund to assert a perfected
security interest in those securities in the event of a default
under the repurchase agreement. The Fund monitors, on a daily
basis, the value of the securities transferred to ensure that
their value, including accrued interest, is greater than amounts
owed to the Fund under each such repurchase agreement.
10 Indemnifications: Like many other companies, the Trust's
organizational documents provide that its officers and trustees
are indemnified against certain liabilities arising out of the
performance of their duties to the Trust. In addition, both in
some of its principal service contracts and in the normal course
of its business, the Trust enters into contracts that provide
indemnifications to other parties for certain types of losses or
liabilities. The Trust's maximum exposure under these arrangements
is unknown as this could involve future claims against the Trust.
Note B--Management Fees, Administration Fees, Distribution
Arrangements, and Other Transactions With Affiliates:
Fund shares are issued and redeemed in connection with investments
in and payments under certain variable annuity contracts and
variable life insurance policies issued through separate accounts
of life insurance companies and are also offered directly to
qualified pension and retirement plans.
The Fund retains Management as its investment manager under a
Management Agreement. For such investment management services, the
Fund pays Management a fee at the annual rate of 0.48% of its
average daily net assets.
The Fund retains Management as its administrator under an
Administration Agreement. The Fund pays Management an
administration fee at the annual rate of 0.30% of its average
daily net assets under this agreement. Additionally, Management
retains State Street Bank and Trust Company ("State Street") as
its sub-administrator under a Sub-Administration Agreement.
Management pays State Street a fee for all services received under
this agreement.
Management acts as agent in arranging for the sale of Fund shares
without commission and bears advertising and promotion expenses.
The Board has adopted a distribution plan (the "Plan") with
respect to the Fund, pursuant to Rule 12b-1 under the 1940 Act.
The Plan provides that, as compensation for administrative and
other services provided to the Fund, Management's activities and
expenses related to the sale and distribution of the Fund's
shares, and ongoing services provided to investors in the Fund,
Management receives from the Fund a fee at the annual rate of
0.25% of the Fund's average daily net assets. Management receives
this amount to provide distribution and shareholder servicing for
the Fund and pays a portion of it to institutions that provide
such services. Those institutions may use the payments for, among
other purposes, compensating employees engaged in sales and/or
shareholder servicing. The amount of fees paid by the Fund during
any year may be more or less than the cost of distribution and
other services provided to the Fund. NASD rules limit the amount
of annual distribution fees that may be
12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
paid by a mutual fund and impose a ceiling on the cumulative
distribution fees paid. The Trust's Plan complies with those
rules.
Management has contractually undertaken through December 31, 2008
to reimburse the Fund for its operating expenses (including the
fees payable to Management but excluding interest, taxes,
brokerage commissions, extraordinary expenses, and transaction
costs) ("Operating Expenses") which exceed, in the aggregate,
1.10% per annum of the Fund's average daily net assets (the
"Expense Limitation"). For the period ended December 31, 2004,
such excess expenses amounted to $31,571. The Fund has agreed to
repay Management through December 31, 2011 for its excess
Operating Expenses previously reimbursed by Management, so long as
its annual Operating Expenses during that period do not exceed its
Expense Limitation, and the repayment is made within three years
after the year in which Management issued the reimbursement.
During the period ended December 31, 2004, there was no
reimbursement to Management under this agreement. At December 31,
2004, contingent liabilities to Management under this agreement
were as follows:
Expiring in
2007
$31,571
Management and Neuberger Berman, LLC ("Neuberger"), a member firm of the New
York Stock Exchange and sub-adviser to the Fund, are indirect wholly-owned
subsidiaries of Lehman Brothers Holdings Inc., a publicly-owned holding
company. Neuberger is retained by Management to furnish it with investment
recommendations and research information without added cost to the Fund.
Currently, Neuberger is the Fund's sole shareholder. Several individuals who
are officers and/or Trustees of the Trust are also employees of Neuberger
and/or Management.
The Fund has an expense offset arrangement in connection with its custodian
contract. For the period ended December 31, 2004, the impact of this
arrangement was a reduction of expenses of $229.
Note C--Securities Transactions:
Cost of purchases and proceeds of sales and maturities of long-term securities
for the period ended December 31, 2004 were as follows:
Sales and
Purchases Sales and Maturities
Purchases of U.S. excluding U.S. Maturities of U.S. excluding U.S.
Government and Government and Government and Government and
Agency Agency Agency Agency
Obligations Obligations Obligations Obligations
$-- $5,383,472 $-- $2,396,784
13
Notes to Financial Statements High Income Bond Portfolio cont'd
- ---------------------------------------------------------------
Note D--Fund Share Transactions:
Share activity for the period ended December 31, 2004 was as follows:
For the Period
Ended
December 31, 2004
Shares Sold 300,000
Shares Issued on Reinvestment of
Dividends and Distributions 4,558
Shares Redeemed --
-----
Total 304,558
-------
Note E--Line of Credit:
At December 31, 2004, the Fund was a participant in a single committed,
unsecured $150,000,000 line of credit with State Street, to be used only for
temporary or emergency purposes. Interest is charged on borrowings under this
agreement at the overnight Federal Funds Rate plus 0.50% per annum. A facility
fee of 0.10% per annum of the available line of credit is charged, of which the
Fund has agreed to pay its pro rata share, based on the ratio of its individual
net assets to the net assets of all participants at the time the fee is due and
payable. The fee is paid quarterly in arrears. No compensating balance is
required. Other investment companies managed by Management also participate in
this line of credit on the same terms. Because several investment companies
participate, there is no assurance that the Fund will have access to all or any
part of the $150,000,000 at any particular time. The Fund had no loans
outstanding pursuant to this line of credit at December 31, 2004, nor had the
Fund utilized this line of credit at any time prior to that date.
14
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Financial Highlights High Income Bond Portfolio
- -----------------------------------------------
The following table includes selected data for a share outstanding throughout
the period and other performance information derived from the Financial
Statements.++
Period from
September 15, 2004^
to December 31,
2004
$10.00
Net Asset Value, Beginning of Period ------
Income From Investment Operations:
Net Investment Income (Loss) .13
Net Gains or Losses on Securities (both realized and unrealized) .11
------
Total From Investment Operations .24
------
Less Distributions From:
Net Investment Income (.14)
Net Capital Gains (.01)
------
Total Distributions (.15)
------
Net Asset Value, End of Period $10.09
------
Total Return++ +2.43%**
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 3.1
Ratio of Gross Expenses to Average Net Assets# 1.13% *
Ratio of Net Expenses to Average Net Assets[sec] 1.10%*
Ratio of Net Investment Income (Loss) to Average Net Assets 4.39 %*
Portfolio Turnover Rate 104%**
15
See Notes to Financial Highlights
Notes to Financial Highlights High Income Bond Portfolio
- --------------------------------------------------------
++ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each
fiscal period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee
future results. Current returns may be lower or higher than the
performance data quoted. Investment returns and principal may fluctuate
and shares when redeemed may be worth more or less than original cost.
Total return would have been lower if Management had not reimbursed
certain expenses. The total return information shown does not reflect
charges and other expenses that apply to the separate account or the
related insurance policies, and the inclusion of these charges and other
expenses would reduce the total return for all fiscal periods shown.
Performance data current to the most recent month-end are available at
www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
[sec] After reimbursement of expenses by the administrator. Had the
administrator not undertaken such action, the annualized ratio of net
expenses to average daily net assets would have been:
Period from
September 15, 2004
to December 31,
2004
4.64%
^ The date investment operations commenced.
++ The per share amounts which are shown have been computed based on the
average number of shares outstanding during the fiscal period.
* Annualized.
** Not annualized.
16
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Report of Independent Registered Public Accounting Firm
- -------------------------------------------------------
To the Shareholders and Board of Trustees of
High Income Bond Portfolio, a Series of
Neuberger Berman Advisers Management Trust
New York, New York
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of High Income Bond Portfolio, a series of
Neuberger Berman Advisers Management Trust, as of December 31, 2004, and the
related statement of operations, the statement of changes in net assets, and
the financial highlights for the period from September 15, 2004 (commencement
of operations) to December 31, 2004. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audit.
We conducted our audit in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of December 31, 2004 by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of High
Income Bond Portfolio as of December 31, 2004, the results of its operations,
the changes in its net assets and the financial highlights for the period from
September 15, 2004 to December 31, 2004, in conformity with accounting
principles generally accepted in the United States of America.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
January 21, 2005
17
Trustees and Officers (Unaudited)
- ---------------------------------
The following tables set forth information concerning the trustees and officers
of the Trust. All persons named as trustees and officers also serve in similar
capacities for other funds administered or managed by NB Management and
Neuberger Berman. The Statement of Additional Information includes additional
information about fund trustees and is available upon request, without charge,
by calling (800) 877-9700.
Information about the Board of Trustees
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
John Cannon (74) Trustee since Consultant. Formerly,
2000 Chairman, CDC Investment
Advisers (registered investment
adviser) 1993 to January 1999;
formerly, President and Chief
Executive Officer, AMA
Investment Advisors, an affiliate
of the American Medical
Association.
- --------------------------------------------------------------------------------
Faith Colish (69) Trustee since Counsel, Carter Ledyard &
1984 Millburn LLP (law firm) since
October 2002; formerly,
Attorney-at-Law and President,
Faith Colish, A Professional
Corporation, 1980 to 2002.
- --------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) Trustee since Consultant; Retired President
1989 and Trustee, Teachers Insurance
& Annuity (TIAA) and College
Retirement Equities Fund
(CREF).
- --------------------------------------------------------------------------------
C. Anne Harvey (67) Trustee since Consultant, C. A. Harvey
1998 Associates, since June 2001;
formerly, Director, AARP, 1978
to December 2001.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- --------------------------------------------------------------------------------
John Cannon (74) 41 Independent Trustee or Director of
three series of Oppenheimer Funds:
Limited Term New York Municipal
Fund, Rochester Fund Municipals,
and Oppenheimer Convertible
Securities Fund, since 1992.
- --------------------------------------------------------------------------------
Faith Colish (69) 41 Director, American Bar Retirement
Association (ABRA) since 1997
(not-for-profit membership
association).
- --------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) 41 None.
- --------------------------------------------------------------------------------
C. Anne Harvey (67) 41 President, Board of Associates to
The National Rehabilitation
Hospital's Board of Directors since
2002; formerly, Member, Individual
Investors Advisory Committee to the
New York Stock Exchange Board
of Directors, 1998 to June 2002;
formerly, Member, American
Savings Education Council's Policy
Board (ASEC), 1998 to 2000;
formerly, Member, Executive
Committee, Crime Prevention
Coalition of America, 1997 to 2000.
- --------------------------------------------------------------------------------
18
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Barry Hirsch (71) Trustee since Attorney-at-Law. Formerly,
2000 Senior Counsel, Loews
Corporation (diversified
financial corporation) May 2002
until April 2003; formerly,
Senior Vice President, Secretary
and General Counsel,
Loews Corporation.
- --------------------------------------------------------------------------------
Robert A. Kavesh (77) Trustee since Marcus Nadler Professor
2000 Emeritus of Finance and
Economics, New York
University Stern School
of Business.
- --------------------------------------------------------------------------------
Howard A. Mileaf (67) Trustee since Retired. Formerly, Vice
1999 President and Special Counsel,
WHX Corporation (holding
company) 1993 to 2001.
- --------------------------------------------------------------------------------
William E. Rulon (72) Trustee since Retired. Formerly, Senior Vice
2000 President, Foodmaker, Inc.
(operator and franchiser of
restaurants) until January 1997.
- --------------------------------------------------------------------------------
Cornelius T. Ryan (73) Trustee since Founding General Partner,
2000 Oxford Partners and Oxford
Bioscience Partners (venture
capital partnerships) and
President, Oxford Venture
Corporation.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- -------------------------------------------------------------------------------
Barry Hirsch (71) 41 None.
- -------------------------------------------------------------------------------
Robert A. Kavesh (77) 41 Director, DEL Laboratories, Inc.
(cosmetics and pharmaceuticals)
since 1978; Director, The Caring
Community (not-for-profit).
- --------------------------------------------------------------------------------
Howard A. Mileaf (67) 41 Director, WHX Corporation
(holding company) since August
2002; Director, Webfinancial
Corporation (holding company)
since December 2002; Director, State
Theatre of New Jersey (not-for-
profit theater) since 2000; formerly,
Director, Kevlin Corporation
(manufacturer of microwave and
other products).
- --------------------------------------------------------------------------------
William E. Rulon (72) 41 Director, Pro-Kids Golf and
Learning Academy (teach golf and
computer usage to "at risk" children)
since 1998; formerly, Director,
Prandium, Inc. (restaurants) from
March 2001 until July 2002.
- --------------------------------------------------------------------------------
Cornelius T. Ryan (73) 41 Director, Capital Cash Management
Trust (money market fund),
Naragansett Insured Tax-Free
Income Fund, Rocky Mountain
Equity Fund, Prime Cash Fund,
several private companies and
QuadraMed Corporation
(NASDAQ).
- --------------------------------------------------------------------------------
19
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Tom D. Seip (54) Trustee since General Partner, Seip
2000 Investments LP (a private
investment partnership);
formerly, President and CEO,
Westaff, Inc. (temporary
staffing), May 2001 to January
2002; Senior Executive at the
Charles Schwab Corporation
from 1983 to 1999, including
Chief Executive Officer,
Charles Schwab Investment
Management, Inc. and Trustee,
Schwab Family of Funds and
Schwab Investments from
1997 to 1998 and Executive
Vice President-Retail
Brokerage, Charles Schwab
Investment Management from
1994 to 1997.
- --------------------------------------------------------------------------------
Candace L. Straight (57) Trustee since Private investor and consultant
1999 specializing in the insurance
industry; formerly, Advisory
Director, Securitas Capital
LLC (a global private equity
investment firm dedicated to
making investments in the
insurance sector) 1998 to
December 2002.
- --------------------------------------------------------------------------------
Peter P. Trapp (60) Trustee since Regional Manager for Atlanta
1984 Region, Ford Motor Credit
Company since August 1997;
formerly, President, Ford Life
Insurance Company, April 1995
to August 1997.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- --------------------------------------------------------------------------------
Tom D. Seip (54) 41 Director, H&R Block, Inc. (financial
services company) since May 2001;
Director, Forward Management, Inc.
(asset management) since 2001;
formerly, Director, General Magic
(voice recognition software) 2001
until 2002; formerly, Director,
E-Finance Corporation (credit
decisioning services) 1999 to 2003;
formerly, Director, Save-Daily.com
(micro investing services) 1999 to
2003; Director, Offroad Capital Inc.
(pre-public internet commerce
company).
- --------------------------------------------------------------------------------
Candace L. Straight (57) 41 Director, The Proformance Insurance
Company (personal lines property
and casualty insurance company)
since March 2004; Director,
Providence Washington (property
and casualty insurance company)
since December 1998; Director,
Summit Global Partners (insurance
brokerage firm) since October 2000.
- --------------------------------------------------------------------------------
Peter P. Trapp (60) 41 None.
- --------------------------------------------------------------------------------
20
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Trustees who are Position and
"Interested Persons" Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Edward I. O'Brien* (76) Trustee since Formerly, Member, Investment
2000 Policy Committee, Edward
Jones 1993 to 2001; President,
Securities Industry Association
("SIA") (securities industry's
representative in government
relations and regulatory
matters at the federal and state
levels) 1974 to 1992; Adviser to
SIA, November 1992 to
November 1993.
- --------------------------------------------------------------------------------
Jack L. Rivkin* (64) President and Executive Vice President and
Trustee since Chief Investment Officer,
December Neuberger Berman Inc.
2002 (holding company) since 2002
and 2003, respectively;
Executive Vice President and
Chief Investment Officer,
Neuberger Berman since
December 2002 and 2003,
respectively; Director and
Chairman, NB Management
since December 2002; formerly,
Executive Vice President,
Citigroup Investments, Inc.
from September 1995 to
February 2002; formerly,
Executive Vice President,
Citigroup Inc. from September
1995 to February 2002.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Fund Complex
"Interested Persons" Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- --------------------------------------------------------------------------------
Edward I. O'Brien* (76) 41 Director, Legg Mason, Inc. (financial
services holding company) since
1993; formerly, Director, Boston
Financial Group (real estate and tax
shelters) 1993 to 1999.
- --------------------------------------------------------------------------------
Jack L. Rivkin* (64) 41 Director, Dale Carnegie and
Associates, Inc. (private company)
since 1998; Director, Emagin Corp.
(public company) since 1997;
Director, Solbright, Inc. (private
company) since 1998; Director,
Infogate, Inc. (private company)
since 1997; Director, Broadway
Television Network (private
company) since 2000.
- --------------------------------------------------------------------------------
21
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Trustees who are Position and
"Interested Persons" Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- ---------------------------------------------------------------------------
Peter E. Sundman* (45) Chairman of Executive Vice President,
the Board, Neuberger Berman Inc.
Chief (holding company) since 1999;
Executive Head of Neuberger Berman
Officer and Inc.'s Mutual Funds and
Trustee Institutional Business since
since 2000 1999; President and Director,
President NB Management since 1999;
and Chief Executive Vice President,
Executive Neuberger Berman since 1999;
Officer from formerly, Principal, Neuberger
1999 to 2000 Berman from 1997 until 1999;
formerly, Senior Vice President,
NB Management from 1996
until 1999.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Fund Complex
"Interested Persons" Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- --------------------------------------------------------------------------------
Peter E. Sundman* (45) 41 Director and Vice President,
Neuberger & Berman Agency, Inc.
since 2000; formerly, Director,
Neuberger Berman Inc. (holding
company) from October 1999
through March 2003; Trustee,
Frost Valley YMCA.
- -------------------------------------------------------------------------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the Trust's Trust Instrument, each Trustee shall hold office
for life or until his or her successor is elected or the Trust terminates;
except that (a) any Trustee may resign by delivering a written resignation;
(b) any Trustee may be removed with or without cause at any time by a
written instrument signed by at least two-thirds of the other Trustees; (c)
any Trustee who requests to be retired, or who has become unable to serve,
may be retired by a written instrument signed by a majority of the other
Trustees; and (d) any Trustee may be removed at any shareholder meeting by
a vote of at least two-thirds of the outstanding shares.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
(4) Retired (effective the close of business December 31, 2004).
* Indicates a trustee who is an "interested person" within the meaning of the
1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of the Trust by
virtue of the fact that they are officers and/or directors of NB Management
and Executive Vice Presidents of Neuberger Berman. Mr. O'Brien is an
interested person of the Trust by virtue of the fact that he is a director
of Legg Mason, Inc., a wholly owned subsidiary of which, from time to time,
serves as a broker or dealer to the Funds and other funds for which NB
Management serves as investment manager.
22
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Information about the Officers of the Trust
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- ---------------------------------------------------------------------------------------------------------
Claudia A. Brandon (48) Secretary since 1985 Vice President-Mutual Fund Board Relations,
NB Management since 2000; Vice President, Neuberger
Berman since 2002 and employee since 1999; formerly,
Vice President, NB Management from 1986 to 1999;
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (four since 2002, three since 2003, and four
since 2004).
Philip R. Carroll (70) Chief Compliance Officer Vice President, Neuberger Berman since 2002; Associate
since 2004 General Counsel, Neuberger Berman since 2001; Director-
Mutual Fund Compliance, NB Management since 1995;
Chief Legal Officer, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (ten since 2003 and four since
2004); Chief Compliance Officer, fourteen registered
investment companies for which NB Management acts
as investment manager and administrator (fourteen since
2004) and Lehman Brothers/First Trust Income
Opportunity Fund.
Robert Conti (48) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003,
formerly, Vice President, Neuberger Berman from 1999
until 2003; Senior Vice President, NB Management since
2000; formerly, Controller, NB Management until 1996;
formerly, Treasurer, NB Management from 1996 until
1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Brian J. Gaffney (51) Vice President since 2000 Managing Director, Neuberger Berman since 1999;
Senior Vice President, NB Management since 2000;
formerly, Vice President, NB Management from 1997
until 1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Sheila R. James (39) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1991 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
23
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- -------------------------------------------------------------------------------------------------------------
Kevin Lyons (49) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1993 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (ten since 2003 and four since 2004).
John M. McGovern (34) Assistant Treasurer since 2002 Vice President, Neuberger Berman since January 2004;
Employee, NB Management since 1993; Assistant
Treasurer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
Barbara Muinos (46) Treasurer and Principal Financial Vice President, Neuberger Berman since 1999; formerly,
and Accounting Officer since 2002; Assistant Vice President, NB Management from 1993 to
prior thereto, Assistant Treasurer 1999; Treasurer and Principal Financial and Accounting
since 1996 Officer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004); formerly, Assistant Treasurer, three registered
investment companies for which NB Management acts
as investment manager and administrator from 1996
until 2002.
Frederic B. Soule (58) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003;
formerly, Vice President, Neuberger Berman from 1999
until 2003; formerly, Vice President, NB Management
from 1995 until 1999; Vice President, fourteen registered
investment companies for which NB Management acts as
investment manager and administrator (three since 2000,
four since 2002, three since 2003, and four since 2004).
- -------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the By-Laws of the Trust, each officer elected by the Trustees
shall hold office until his or her successor shall have been elected and
qualified or until his or her earlier death, inability to serve, or
resignation. Officers serve at the pleasure of the Trustees and may be
removed at any time with or without cause.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
24
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Proxy Voting Policies and Procedures
- ------------------------------------
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available, without
charge, by calling 1-800-877-9700 (toll-free) and on the website of the
Securities and Exchange Commission, at www.sec.gov. Information regarding how
the Trust voted proxies relating to portfolio securities during the most recent
12-month period ended June 30 will also be available without charge, by calling
1-800-877-9700 (toll-free), on the website of the Securities and Exchange
Commission, at www.sec.gov, and on the Trust's website at www.nb.com.
Quarterly Portfolio Schedule
- ----------------------------
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange
Commission's website at www.sec.gov and may be reviewed and copied at the
Securities and Exchange Commission's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The information on Form N-Q is available upon request,
without charge, by calling 1-800-877-9700 (toll-free).
25
Annual Report
December 31, 2004
[LOGO}
NEUBURGER BERMAN
A Lehman Brother's Company
Neuberger Berman
Advisers
Management
Trust
- --------------------------------------------------------------------------------
Limited
Maturity
Bond
Portfolio[Reg(TM)]
B1011 02/05
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Limited Maturity Bond Portfolio Managers' Commentary
- ----------------------------------------------------
The Neuberger Berman AMT Limited Maturity Bond Portfolio provided modestly
positive returns in 2004, slightly trailing its benchmark, the Merrill Lynch
1-3 Year Treasury Index.(2)
Mixed economic signals kept bond investors guessing in 2004. In the first
quarter, despite several consecutive quarters of strong Gross Domestic Product
(GDP) growth, investors seemed to doubt that the economic recovery was for
real. As a result, bond prices were quite stable. Then, investors' doubts over
the strength of the economy evaporated with the April 2 release of a
surprisingly strong March jobs report, and bond prices started to fall. A
healthy April jobs report kept the pressure on bond prices. Then in June, with
rapidly rising oil prices and uncertainty spawned by a tight Presidential
election race, economic growth began to slow. Investors came back to bonds,
prices firmed, and yields stabilized. The market then went into wait-and-see
mode for a few months, before yields began to rise again during the fourth
quarter.
We started fiscal 2004 in a defensive posture, with a below benchmark duration
(sensitivity to interest rates) of 1.3 years. Our caution reflected our
recognition that low bond yields provided a thin cushion to offset potential
price declines in an economy that appeared to be gaining momentum. We
maintained a low duration at the end of March, prior to the release of the
strong jobs report. This conservative duration posture helped shield
shareholder capital as bonds retreated in April and May. We ended the year at a
modestly conservative 1.6-year duration. For full-year 2004, our generally
conservative duration management enhanced returns.
Shifts in sector allocation throughout the year were designed to take advantage
of evolving opportunities in the market. Much of our sector realignment came in
the fourth quarter as we enhanced portfolio yield by reducing our allocation to
Treasuries and increased our exposure to high-credit-quality alternatives
including asset-backed, corporate, and government agency securities. As lower
rated credit spreads narrowed versus higher grade alternatives, we upgraded our
corporate portfolio by reducing exposure to relatively less creditworthy
issuers. We also reduced our weighting in mortgage-backed securities to almost
zero, because mortgages tend to underperform during periods of interest rate
volatility.
By year-end 2004, the Federal Reserve had instituted five 25-basis-point rate
hikes and the Fed Funds rate stood at 2.25%. We believe that the Fed will
continue to raise rates at a "measured pace" with the Fed Funds rate probably
reaching 3.5% by year-end 2005. The election is over and President Bush appears
to have a mandate to perpetuate what many investors consider pro-business
policies. Job growth has regained momentum, indicating that the economy has
emerged from the summer doldrums and is now back on a solid footing. A healthy
economy may continue to keep pressure on bond prices. Consequently, we believe
it is prudent to maintain the portfolio's below benchmark duration. We are
likely to continue attempting to enhance portfolio yield by diversifying away
from Treasuries to other high quality, higher yielding sectors.
In closing, we continually monitor economic trends that may affect U.S.
interest rates and bond prices. Among the things we are watching closely are
the valuation of the U.S. dollar, the potential revaluation of the Chinese
currency, and America's federal budget and current account deficits. Moving
forward, the portfolio posture that served our
1
Limited Maturity Bond Portfolio Managers' Commentary cont'd
- -----------------------------------------------------------
investors well in 2004 will remain in place until our view of the economy and
fixed income markets begins to change. Over the long term, we believe that we
can add value through prudent duration management, sector allocation, and
security selection without exposing shareholders to above-market risk.
Sincerely,
/s/ Ted Giuliano /s/ John Dugenske
TED GIULIANO AND JOHN DUGENSKE
PORTFOLIO CO-MANAGERS
Average Annual Total Return(1)
Limited Matturity Merrill Lynch 1-3 Year
Bond Portfolio Treasury Index(2)
1 Year 0.78% 0.91%
5 Year 4.78% 4.93%
10 Year 5.15% 5.71%
Life Fund 6.80% 7.13%
- --------------------------------------------------------------------------------
Inception Date 09/10/1984
Performance data quoted represent past performance, which is no guarantee of
future results. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed may be worth more or less
than their original cost. Results are shown on a "total return" basis and
include reinvestment of all dividends and capital gain distributions.
Current performance may be lower or higher than the performance data quoted. For
performance data current to the most recent month end, please visit www.nb.com/
performance.
- ---------------------------------------------------------------
Comparison of a $10,000 Investment
Merrill Lynch
Limited Maturity 1-3 Year
Bond Portfolio Treasury Index
-------------------------------------
12/31/1994 $ 10,000 $ 10,000
- -----------------------------------------------------
12/31/1995 $ 11,093 $ 11,100
- -----------------------------------------------------
12/31/1996 $ 11,571 $ 11,653
- -----------------------------------------------------
12/31/1997 $ 12,351 $ 12,428
- -----------------------------------------------------
12/31/1998 $ 12,894 $ 13,298
- -----------------------------------------------------
12/31/1999 $ 13,084 $ 13,705
- -----------------------------------------------------
12/31/2000 $ 13,972 $ 14,801
- -----------------------------------------------------
12/31/2001 $ 15,199 $ 16,029
- -----------------------------------------------------
12/31/2002 $ 16,010 $ 16,952
- -----------------------------------------------------
12/31/2003 $ 16,398 $ 17,273
- -----------------------------------------------------
12/31/2004 $ 16,526 $ 17,430
- -----------------------------------------------------
The chart shows the value of a hypothetical $10,000 investment in the Fund over
the past 10 fiscal years, or since the Fund's inception, if it has not operated
for 10 years. The result is compared with benchmarks, which may include a
broad-based market index and/or a narrower index. Please note that market
indexes do not include expenses. All results include the reinvestment of a
dividends and capital gain distributions. Results represent past performance and
do not indicate future results. The chart and table do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
Please see Endnotes for additional information.
Rating Diversification
(% by Ratings)
AAA/Government/Government
Agency .............. 54.3%
AA ...................... 3.3
A ....................... 30.6
BBB ..................... 9.9
BB ...................... 0.4
B ....................... 0.0
CCC ..................... 0.0
CC ...................... 0.0
C ....................... 0.0
D ....................... 0.0
Not Rated ............... 0.0
Short Term .............. 1.5
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Endnotes
- --------
1. 0.78%, 4.78% and 5.15% were the average annual total returns for the
1-, 5- and 10-year periods ended December 31, 2004. Neuberger Berman
Management Inc. ("NBMI") has agreed to absorb certain expenses of the
AMT Portfolios. Without this arrangement, which is subject to change,
the total returns of the Portfolios would be less. Total return
includes reinvestment of dividends and capital gain distributions.
Performance data quoted represent past performance and the investment
return and principal value of an investment will fluctuate so that the
shares, when redeemed, may be worth more or less than original cost.
The performance information does not reflect fees and expenses of the
insurance companies.
2. The Merrill Lynch 1-3 Year Treasury Index is an unmanaged total return
market value index consisting of all coupon-bearing U.S. Treasury
publicly placed debt securities with maturities between 1 to 3 years.
Please note that indices do not take into account any fees and
expenses of investing in the individual securities that they track,
and that individuals cannot invest directly in any index. Data about
the performance of this index are prepared or obtained by NBMI and
include reinvestment of all dividends and capital gain distributions.
The Portfolio may invest in many securities not included in the
above-described index.
The investments for the Portfolio are managed by the same portfolio
manager(s) who manage one or more other mutual funds that have similar
names, investment objectives and investment styles as the Portfolio.
You should be aware that the Portfolio is likely to differ from the
other mutual funds in size, cash flow pattern and tax matters.
Accordingly, the holdings and performance of the Portfolio can be
expected to vary from those of the other mutual funds.
The composition, industries and holdings of the Portfolio are subject
to change.
Shares of the separate Portfolios of Neuberger Berman Advisers
Management Trust are sold only through the currently effective
prospectus and are not available to the general public. Shares of
this Portfolio may be purchased only by life insurance companies
to be used in their separate accounts that fund variable annuity
and variable life insurance policies and by qualified pension and
retirement plans.
(C) 2005 Neuberger Berman Management Inc., distributor. All rights
reserved.
3
Information About Your Fund's Expenses
- --------------------------------------
This table is designed to provide information regarding costs related to your
investments. All mutual funds incur operating expenses, which include
management fees, administrative services and shareholder reports among others.
The following example is based on an investment of $1,000 made at the beginning
of the period shown and held for the entire period. The table illustrates the
fund's costs in two ways:
Actual Expenses: The first section
of the table provides
information about actual
account values and actual
expenses in dollars. You may
use the information in this
line, together with the
amount you invested, to
estimate the expenses you
paid over the period.
Hypothetical Example for Comparison Purposes: The second section
of the table provides
information about
hypothetical account values
and hypothetical expenses
based on the Fund's actual
expense ratio and an assumed
rate of return at 5% per
year before expenses. This
return is not the Fund's
actual return. The
hypothetical account values
and expenses may not be used
to estimate the actual
ending account balance or
expenses you paid for the
period. You may use this
information to compare the
ongoing costs of investing
in this Fund versus other
funds. To do so, compare
this 5% hypothetical example
with the 5% hypothetical
examples that appear in the
shareholder reports of other
funds.
Expense Information As of 12/31/04 (Unaudited)
- ----------------------------------------------
Neuberger Berman Advisers Management Trust Limited Maturity Bond Portfolio
- --------------------------------------------------------------------------
Beginning Ending Expenses Paid
Actual Account Value Account Value During the Period*
Class I $1,000 $ 1,007.80 $ 3.63
Hypothetical (5% annual return before expenses)**
Class I $1,000 $ 1,021.52 $ 3.66
* Expenses are equal to the expense ratio for the class, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect
the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying
the number of days in the most recent half year divided by 366.
4
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Limited Maturity Bond Portfolio
- -------------------------------------------------------
Principal Amount Rating[sec] Market Value+
Moody's S&P
U.S. Treasury Securities-Backed by the Full Faith and Credit of the U.S. Government
(23.4%)
$ 5,475,000 U.S. Treasury Notes, 1.63%, due 3/31/05 TSY TSY $ 5,466,448
985,000 U.S. Treasury Notes, 1.88%, due 11/30/05 TSY TSY 977,305
16,000,000 U.S. Treasury Notes, 1.88%, due 12/31/05 TSY TSY 15,861,248
21,200,000 U.S. Treasury Notes, 1.88%, due 1/31/06 TSY TSY 20,996,289
16,000,000 U.S. Treasury Notes, 1.63%, due 2/28/06 TSY TSY 15,783,120
4,965,000 U.S. Treasury Notes, 2.25%, due 4/30/06 TSY TSY 4,923,885
8,900,000 U.S. Treasury Notes, 2.50%, due 10/31/06 TSY TSY 8,816,910
2,000,000 U.S. Treasury Notes, 3.00%, due 2/15/08 TSY TSY 1,983,672
1,000,000 U.S. Treasury Notes, 3.38%, due 9/15/09 TSY TSY 990,859
------------
Total U.S. Treasury Securities-Backed by the Full Faith and Credit
of the U.S. Government (Cost $76,406,175) 75,799,736
------------
U.S. Government Agency Securities (10.7%)
14,500,000 Federal Home Loan Bank, Bonds, 2.88%, due 8/15/06 AGY AGY 14,433,111
4,000,000 Federal Home Loan Bank, Disc. Notes, 4.13%, due 1/14/05 AGY AGY 4,001,772
15,500,000 Freddie Mac, Notes, 5.50%, due 7/15/06 AGY AGY 16,040,268
------------
Total U.S. Government Agency Securities (Cost $34,551,858) 34,475,151
------------
Mortgage-Backed Securities (1.3%)
Fannie Mae
979,176 Collateralized Mortgage Obligations, Planned Amortization
Certificates, Ser. 2003-16, Class PA, 4.50%, due 11/25/09 AGY AGY 983,294
Freddie Mac
363,566 Collateralized Mortgage Obligations, Planned Amortization
Certificates, Ser. 2592, Class PA, 4.50%, due 12/15/07 AGY AGY 363,331
12,847 Mortgage Participation Certificates, 10.00%, due 4/1/20 AGY AGY 14,310
476,717 Pass-Through Certificates, 5.00%, due 2/1/07 AGY AGY 486,992
Government National Mortgage Association
2,321,656 Pass-Through Certificates, 6.00%, due 1/15/33 AGY AGY 2,407,735
------------
Total Mortgage-Backed Securities (Cost $4,262,774) 4,255,662
------------
Corporate Debt Securities (46.7%)
3,000,000 Allstate Corp., Senior Notes, 7.88%, due 5/1/05 A1 A+ 3,047,943
3,300,000 American Express Co., Notes, 5.50%, due 9/12/06 A1 A+ 3,417,955
1,765,000 AT&T Wireless Services, Inc., Senior Notes, 7.35%, due 3/1/06 Baa2 A 1,846,435
4,100,000 Bank of America Corp., Senior Notes, 3.88%, due 1/15/08 Aa2 A+ 4,131,976
2,990,000 Bank of New York Co., Inc., Senior Notes, 5.20%, due 7/1/07 Aa3 A+ 3,108,574
3,500,000 Bank One Corp., Notes, 6.50%, due 2/1/06 Aa3 A+ 3,623,098
2,650,000 Bear Stearns Co., Inc., Notes, 6.50%, due 5/1/06 A1 A 2,758,687
3,100,000 Berkshire Hathaway Finance, Notes, 3.40%, due 7/2/07 Aaa AAA 3,092,672**
1,900,000 Boeing Capital Corp., Senior Notes, 5.65%, due 5/15/06 A3 A 1,959,206
3,100,000 British Telecom PLC, Notes, 7.88%, due 12/15/05 Baa1 A- 3,233,266
1,550,000 Capital One Bank, Senior Notes, 8.25%, due 6/15/05 Baa2 BBB 1,584,427
3,400,000 Caterpillar Financial Services Corp., Medium-Term Notes,
2.59%, due 7/15/06 A2 A 3,367,812
1,700,000 CBS Corp., Guaranteed Senior Notes, 7.15%, due 5/20/05 A3 A- 1,725,594
1,285,000 Chase Manhattan Corp., Subordinated Notes, 7.25%, due 6/1/07 A1 A 1,391,214
3,200,000 CIT Group, Inc., Senior Notes, 4.13%, due 2/21/06 A2 A 3,232,518
3,400,000 Citigroup Global Markets, Notes, 5.88%, due 3/15/06 Aa1 AA- 3,505,716
3,250,000 Coca-Cola Enterprises, Notes, 5.38%, due 8/15/06 A2 A 3,352,927
1,900,000 Comcast Cable Communications, Senior Notes, 6.38%, due 1/30/06 Baa3 BBB 1,962,588
2,825,000 Credit Suisse First Boston USA, Inc., Notes, 5.88%, due 8/1/06 Aa3 A+ 2,936,054
See Notes to Schedule of Investments 5
Schedule of Investments Limited Maturity Bond Portfolio cont'd
Principal Amount Rating[sec] Market Value+
Moody's S&P
$ 2,800,000 Daimler Chrysler N.A. Holdings Corp., Guaranteed Notes,
6.40%, due 5/15/06 A3 BBB $ 2,912,820
1,600,000 Deutsche Telekom International Finance, Guaranteed Notes,
8.25%, due 6/15/05 Baa1 BBB+ 1,637,286
3,400,000 Diageo Finance BV, Guaranteed Notes, 3.00%, due 12/15/06 A2 A 3,371,175
1,150,000 Enterprise Products Operating, Senior Notes,
4.00%, due 10/15/07 Baa3 BB+ 1,147,193**
1,010,000 EOP Operating Limited Partnership, Notes, 6.63%, due 2/15/05 Baa2 BBB+ 1,014,546
1,300,000 Equitable Life Assurance Society USA, Notes,
6.95%, due 12/1/05 A2 A 1,340,979**
1,550,000 Everest Reinsurance Holdings, Inc., Senior Notes,
8.50%, due 3/15/05 A3 A- 1,564,550
6,200,000 General Electric Capital Corp., Notes, 3.50%, due 5/1/08 Aaa AAA 6,153,798
700,000 General Motors Acceptance Corp., Notes, 6.13%, due 9/15/06 Baa1 BBB- 717,628
710,000 General Motors Acceptance Corp., Notes, 6.13%, due 2/1/07 Baa1 BBB- 729,084
4,100,000 Goldman Sachs Group, Inc., Notes, 4.13%, due 1/15/08 Aa3 A+ 4,151,529
1,600,000 Hertz Corp., Senior Notes, 8.25%, due 6/1/05 Baa2 1,627,730
3,300,000 Hewlett-Packard Co., Notes, 5.50%, due 7/1/07 A3 A- 3,441,471
3,200,000 HSBC Finance Corp., Notes, 5.75%, due 1/30/07 A1 A 3,340,346
1,600,000 International Lease Finance Corp., Floating Rate Notes,
3.30%, due 1/13/05 A1 AA- 1,600,275
1,500,000 J.P. Morgan Chase & Co., Senior Notes, 5.63%, due 8/15/06 Aa3 A+ 1,553,987
2,700,000 John Deere Capital Corp., Notes, 5.13%, due 10/19/06 A3 A- 2,780,495
2,175,000 Kraft Foods, Inc., Notes, 4.63%, due 11/1/06 A3 BBB+ 2,219,844
1,600,000 Lear Corp., Guaranteed Senior Notes, Ser. B, 7.96%, due 5/15/05 Baa3 BBB- 1,625,550
1,550,000 Mallinckrodt Group, Inc., Notes, 6.50%, due 11/15/07 Baa3 BBB 1,655,969
4,100,000 Merrill Lynch & Co., Notes, 6.13%, due 5/16/06 Aa3 A+ 4,260,412
1,500,000 MetLife, Inc., Debentures, 3.91%, due 5/15/05 A2 A 1,506,693
3,850,000 Morgan Stanley, Bonds, 5.80%, due 4/1/07 Aa3 A+ 4,036,236
3,200,000 National Rural Utilities Cooperative Finance Corp.,
Collateral Trust, 6.00%, due 5/15/06 A1 A+ 3,314,618
594,000 Raytheon Co., Notes, 6.50%, due 7/15/05 Baa3 BBB- 604,611
1,600,000 Reliant Energy Resources Corp., Notes, Ser. B, 8.13%, due 7/15/05 Ba1 BBB 1,642,142
1,230,000 Safeway, Inc., Notes, 2.50%, due 11/1/05 Baa2 BBB 1,223,047
1,800,000 Sara Lee Corp., Medium-Term Notes, Ser. B, 6.40%, due 6/9/05 A3 A+ 1,823,801
3,750,000 SBC Communications, Inc., Notes, 5.75%, due 5/2/06 A2 A 3,870,229
1,540,000 Sprint Capital Corp., Guaranteed Notes, 6.00%, due 1/15/07 Baa3 BBB- 1,611,758
3,300,000 Target Corp., Notes, 3.38%, due 3/1/08 A2 A+ 3,271,538
1,400,000 Time Warner, Inc., Notes, 5.63%, due 5/1/05 Baa1 BBB+ 1,412,893
1,770,000 Time Warner, Inc., Notes, 7.75%, due 6/15/05 Baa1 BBB+ 1,803,327
2,150,000 Union Bank of Switzerland-NY, Subordinated Notes,
7.25%, due 7/15/06 Aa3 AA 2,274,494
1,600,000 Univision Communications, Inc., Guaranteed Notes,
3.50%, due 10/15/07 Baa2 BBB- 1,581,122
3,100,000 U.S. Bank NA, Notes, 2.85%, due 11/15/06 Aa2 AA- 3,073,898
3,990,000 Verizon Wireless Capital, Notes, 5.38%, due 12/15/06 A3 A+ 4,132,862
4,100,000 Wachovia Corporation, Notes, 4.95%, due 11/1/06 Aa3 A 4,214,164
1,700,000 Walt Disney Co., Notes, 7.30%, due 2/8/05 Baa1 BBB+ 1,707,259
3,100,000 Washington Mutual, Inc., Senior Notes, 5.63%, due 1/15/07 A3 A- 3,228,362
810,000 Weyerhaeuser Co., Notes, 5.50%, due 3/15/05 Baa2 BBB 813,730
1,600,000 Weyerhaeuser Co., Notes, 6.00%, due 8/1/06 Baa2 BBB 1,662,683
------------
Total Corporate Debt Securities (Cost $151,017,133) 150,934,796
------------
See Notes to Schedule of Investments 6
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Limited Maturity Bond Portfolio
- -------------------------------------------------------
Principal Amount Rating[sec] Market Value+
Moody's S&P
Foreign Government Securities^ (3.1%)
EUR 4,800,000 Bundesobligation, 3.50%, due 10/10/08 Aaa AAA $ 6,643,090
EUR 2,540,000 Bundesobligation, 3.25%, due 4/17/09 Aaa AAA 3,479,250
--------------
Total Foreign Government Securities (Cost $9,246,418) 10,122,340
--------------
Asset-Backed Securities (12.6%)
$ 5,000,000 Capital Auto Receivables Asset Trust, Ser. 2004-2,
Class A3, 3.58%, due 1/15/09 Aaa AAA 4,997,655
3,100,000 Capital One Prime Auto Receivables Trust, Ser. 2004-3,
Class A3, 3.39%, due 1/15/09 Aaa AAA 3,097,095
6,650,000 Chase Manhattan Auto Owner Trust, Ser. 2003-A,
Class A4, 2.06%, due 12/15/09 Aaa AAA 6,483,324
6,400,000 Citibank Credit Card Issuance Trust, Ser. 2004-A1,
Class A1, 2.55%, due 1/20/09 Aaa AAA 6,291,094
6,500,000 Daimler Chrysler Auto Trust, Ser. 2003-B, Class A4,
2.86%, due 3/9/09 Aaa AAA 6,428,315
6,905,000 Honda Auto Receivables Owner Trust, Ser. 2004-3, Class A4,
3.28%, due 2/18/10 Aaa AAA 6,813,887
6,400,000 MBNA Credit Card Master Note Trust, Ser. 2002-A1, Class A1,
4.95%, due 6/15/09 Aaa AAA 6,608,070
--------------
Total Asset-Backed Securities (Cost $40,941,936) 40,719,440
--------------
Repurchase Agreements (1.6%)
5,240,000 State Street Bank and Trust Co. Repurchase Agreement, 1.50%,
due 1/3/05, dated 12/31/04, Maturity Value $5,240,655,
Collateralized by $3,665,000 U.S. Treasury Bonds, 8.75%, due
8/15/20 (Collateral Value $5,403,584)
(Cost $5,240,000) 5,240,000#
--------------
Total Investments (99.4%) (Cost $321,666,294) 321,547,125##
Cash, receivables and other assets, less liabilities (0.6%) 1,807,616
--------------
Total Net Assets (100.0%) $ 323,354,741
--------------
7
See Notes to Schedule of Investments
Notes to Schedule of Investments Limited Maturity Bond Portfolio
- -----------------------------------------------------------------
+ Investments in securities by Neuberger Berman Advisers Management Trust
Limited Maturity Bond Portfolio (the "Fund") are valued daily by obtaining
bid price quotations from independent pricing services on all securities
available in each service's data base. For all other securities requiring
daily quotations, bid prices are obtained from principal market makers in
those securities or, if quotations are not available, by a method the Board
of Trustees of Neuberger Berman Advisers Management Trust believes
accurately reflects fair value. Numerous factors may be considered when
determining the fair value of a security, including available analyst,
media or other reports, trading in futures or ADRs and whether the issuer
of the security being fair valued has other securities outstanding. Foreign
security prices are furnished by independent quotation services and
expressed in local currency values. Foreign security prices are translated
from the local currency into U.S. dollars using the exchange rate as of
12:00 noon, Eastern time. Short-term debt securities with less than 60 days
until maturity may be valued at cost which, when combined with interest
earned, approximates market value.
# At cost, which approximates market value.
## At December 31, 2004, the cost of investments for U.S. Federal income tax
purposes was $324,468,784. Gross unrealized appreciation of investments was
$1,115,978 and gross unrealized depreciation of investments was $4,037,637,
resulting in net unrealized depreciation of $2,921,659 based on cost for
U.S. Federal income tax purposes.
** Security exempt from registration under the Securities Act of 1933. These
securities may be resold in transactions exempt from registration, normally
to qualified institutional buyers under Rule 144A and are deemed liquid. At
December 31, 2004, these securities amounted to $5,580,844 or 1.7% of net
assets.
[sec]Credit ratings are unaudited.
^ Principal amount is stated in the currency in which the security is
denominated.
EUR = Euro Currency
8
See Notes to Financial Statements
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Assets and Liabilities
Limited Maturity
Neuberger Berman Advisers Management Trust Bond Portfolio
Assets
Investments in securities, at market value* (Note A)-see Schedule of Investments:
- ---------------------------------------------------------------------------------------------------
Unaffiliated issuers $ 321,547,125
- ---------------------------------------------------------------------------------------------------
Cash 9,906
- ---------------------------------------------------------------------------------------------------
Interest receivable 3,400,386
- ---------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 840,971
- ---------------------------------------------------------------------------------------------------
Prepaid expenses and other assets 1,898
- ---------------------------------------------------------------------------------------------------
Total Assets 325,800,286
- ---------------------------------------------------------------------------------------------------
Liabilities
Payable for forward foreign currency exchange contracts sold (Note C) 105,361
- ---------------------------------------------------------------------------------------------------
Payable for securities purchased 2,006,844
- ---------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 68,144
- ---------------------------------------------------------------------------------------------------
Payable to investment manager (Note B) 65,854
- ---------------------------------------------------------------------------------------------------
Payable to administrator (Note B) 105,371
- ---------------------------------------------------------------------------------------------------
Accrued expenses and other payables 93,971
- ---------------------------------------------------------------------------------------------------
Total Liabilities 2,445,545
- ---------------------------------------------------------------------------------------------------
Net Assets at value $ 323,354,741
- ---------------------------------------------------------------------------------------------------
Net Assets consist of:
Paid-in capital $ 332,933,113
- ---------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) 6,881,726
- ---------------------------------------------------------------------------------------------------
Accumulated net realized gains (losses) on investments (16,245,834)
- ---------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) in value of investments (214,264)
- ---------------------------------------------------------------------------------------------------
Net Assets at value $ 323,354,741
- ---------------------------------------------------------------------------------------------------
Shares Outstanding ($.001 par value; unlimited shares authorized) 25,215,380
- ---------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share $ 12.82
- ---------------------------------------------------------------------------------------------------
*Cost of Investments:
Unaffiliated issuers $ 321,666,294
- ---------------------------------------------------------------------------------------------------
9
See Notes to Financial Statements
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST FOR THE YEAR ENDED DECEMBER 31, 2004
Statement of Operations
- --------------------------
Limited Maturity
Neuberger Berman Advisers Management Trust Bond Portfolio
Investment Income
Income:
Interest income-unaffiliated issuers (Note A) $ 9,433,300
- ----------------------------------------------------------------------------------------
Expenses:
Investment management fee (Note B) 783,002
- ----------------------------------------------------------------------------------------
Administration fee (Note B) 1,252,806
- ----------------------------------------------------------------------------------------
Audit fees 36,086
- ----------------------------------------------------------------------------------------
Custodian fees (Note B) 123,059
- ----------------------------------------------------------------------------------------
Insurance expense 8,102
- ----------------------------------------------------------------------------------------
Legal fees 54,406
- ----------------------------------------------------------------------------------------
Shareholder reports 1,546
- ----------------------------------------------------------------------------------------
Trustees' fees and expenses 25,325
- ----------------------------------------------------------------------------------------
Miscellaneous 8,610
- ----------------------------------------------------------------------------------------
Total expenses 2,292,942
- ----------------------------------------------------------------------------------------
Expenses reduced by custodian fee expense offset arrangement (Note B) (1,774)
- ----------------------------------------------------------------------------------------
Total net expenses 2,291,168
- ----------------------------------------------------------------------------------------
Net investment income (loss) 7,142,132
- ----------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers 1,029,095
- ----------------------------------------------------------------------------------------
Financial futures contracts (1,110,806)
- ----------------------------------------------------------------------------------------
Foreign currency (621,753)
- ----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities (3,825,197)
- ----------------------------------------------------------------------------------------
Foreign currency (95,095)
- ----------------------------------------------------------------------------------------
Net gain (loss) on investments (4,623,756)
- ----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 2,518,376
- ----------------------------------------------------------------------------------------
10
See Notes to Financial Statements
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Changes in Net Assets
- ----------------------------------
Limited Maturity
Bond Portfolio
---------------------
Neuberger Berman Advisers Management Trust Year Ended December 31,
2004 2003
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss) $ 7,142,132 $ 8,939,346
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (703,464) 3,068,536
- ---------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments (3,920,292) (3,818,388)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 2,518,376 8,189,494
- ---------------------------------------------------------------------------------------------------------
Distributions to Shareholders From:
Net investment income (11,800,669) (14,350,033)
- ----------------------------------------------------------------------------------------------------------
From Fund Share Transactions (Note D):
Proceeds from shares sold 93,280,732 130,774,861
- ---------------------------------------------------------------------------------------------------------
Proceeds from reinvestment of dividends and distributions 11,800,669 14,350,033
- ----------------------------------------------------------------------------------------------------------
Payments for shares redeemed (78,807,440) (205,217,357)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) from Fund share transactions 26,273,961 (60,092,463)
- ---------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 16,991,668 (66,253,002)
Net Assets:
Beginning of year 306,363,073 372,616,075
- ----------------------------------------------------------------------------------------------------------
End of year $ 323,354,741 $ 306,363,073
- ---------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) at end of year $ 6,881,726 $ 9,173,333
- ----------------------------------------------------------------------------------------------------------
11
See Notes to Financial Statements
Notes to Financial Statements Limited Maturity Bond Portfolio
- --------------------------------------------------------------
Note A--Summary of Significant Accounting Policies:
1 General: Limited Maturity Bond Portfolio (the "Fund") is a separate
operating series of Neuberger Berman Advisers Management Trust (the
"Trust"), a Delaware statutory trust organized pursuant to a Trust
Instrument dated May 23, 1994. The Trust is currently comprised of eleven
separate operating series (each a "Series," collectively, the "Funds") each
of which (except Focus Portfolio) is diversified. The Trust is registered
as an open-end management investment company under the Investment Company
Act of 1940, as amended (the "1940 Act"), and its shares are registered
under the Securities Act of 1933, as amended. The Fund currently offers
only Class I shares. The Board of Trustees of the Trust (the "Board") may
establish additional series or classes of shares without the approval of
shareholders.
The assets of each Series belong only to that Series, and the liabilities
of each Series are borne solely by that Series and no other.
operating series of Neuberger Berman Advisers Management Trust (the
accepted accounting principles requires Neuberger Berman Management Inc.
("Management") to make estimates and assumptions at the date of the
financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the
notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars using the exchange rate as of 12:00 noon, Eastern time, to
determine the value of investments, other assets and liabilities. Purchase
and sale prices of securities, and income and expenses, are translated into
U.S. dollars at the prevailing rate of exchange on the respective dates of
such transactions. Net unrealized foreign currency gain (loss) arises from
changes in the value of assets and liabilities, other than investments in
securities, as a result of changes in exchange rates and is stated
separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Interest income, including accretion of
discount (adjusted for original issue discount, where applicable) and
amortization of premium, where applicable, is recorded on the accrual
basis. Realized gains and losses from securities transactions and foreign
currency transactions, if any, are recorded on the basis of identified cost
and stated separately in the Statement of Operations.
5 Forward foreign currency contracts: The Fund may enter into forward foreign
currency contracts ("contracts") in connection with planned purchases or
sales of securities to hedge the U.S. dollar value of portfolio securities
denominated in a foreign currency. The gain or loss arising from the
difference between the original contract price and the closing price of
such contract is included in net realized gains or losses on foreign
currency transactions. Fluctuations in the value of forward foreign
currency contracts are recorded for financial reporting purposes as
unrealized gains or losses by the Fund. The Fund has no specific limitation
on the percentage of assets which may be committed to these types of
contracts, but the Fund may not invest more than 25% of its total assets in
foreign securities denominated in or indexed to
12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
foreign currencies. The Fund could be exposed to risks if a counter party
to a contract were unable to meet the terms of its contract or if the value
of the foreign currency changes unfavorably. The U.S. dollar value of
foreign currency underlying all contractual commitments held by the Fund is
determined using forward foreign currency exchange rates supplied by an
independent pricing service.
6 Financial futures contracts: The Fund may buy and sell financial futures
contracts to hedge against changes in securities prices resulting from
changes in prevailing interest rates. At the time the Fund enters into a
financial futures contract, it is required to deposit with its custodian a
specified amount of cash or liquid securities, known as "initial margin,"
ranging upward from 1.1% of the value of the financial futures contract
being traded. Each day, the futures contract is valued at the official
settlement price of the board of trade or U.S. commodity exchange on which
such futures contract is traded. Subsequent payments, known as "variation
margin," to and from the broker are made on a daily basis as the market
price of the financial futures contract fluctuates. Daily variation margin
adjustments, arising from this "mark to market," are recorded by the Fund
as unrealized gains or losses.
Although some financial futures contracts by their terms call for actual
delivery or acceptance of financial instruments, in most cases the
contracts are closed out prior to delivery by offsetting purchases or sales
of matching financial futures contracts. When the contracts are closed, the
Fund recognizes a gain or loss. Risks of entering into futures contracts
include the possibility there may be an illiquid market and/or a change in
the value of the contract may not correlate with changes in the value of
the underlying securities.
For U.S. Federal income tax purposes, the futures transactions undertaken
by the Fund may cause the Fund to recognize gains or losses from marking to
market even though its positions have not been sold or terminated, may
affect the character of the gains or losses recognized as long-term or
short-term, and may affect the timing of some capital gains and losses
realized by the Fund. Also, the Fund's losses on transactions involving
futures contracts may be deferred rather than being taken into account
currently in calculating the Fund's taxable income.
7 Income tax information: The Funds are treated as separate entities for U.S.
Federal income tax purposes. It is the policy of the Fund to continue to
qualify as a regulated investment company by complying with the
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all of its
earnings to its shareholders. Therefore, no Federal income or excise tax
provision is required.
Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities
held by the Fund, timing differences and differing characterization of
distributions made by the Fund as a whole. The Fund may also utilize
earnings and profits distributed to shareholders on redemption of shares as
a part of the dividends paid deduction for income tax purposes.
13
Notes to Financial Statements Limited Maturity Bond Portfolio cont'd
- --------------------------------------------------------------------
As determined on December 31, 2004, permanent differences resulting
primarily from different book and tax accounting for foreign currency gains
and losses, paydown gains and losses, amortization of bond premium, and
mortgage dollar rolls, were reclassified at year end. These
reclassifications had no effect on net income, net assets or net assets per
share of the Fund.
The tax character of distributions paid during the years ended December 31,
2004 and December 31, 2003 were as follows:
Distributions Paid From:
Ordinary Income Total
2004 2003 2004 2003
$11,800,669 $14,350,033 $11,800,669 $14,350,033
As of December 31, 2004, the components of distributable earnings
(accumulated losses) on a U.S. Federal income tax basis were as follows:
Unrealized Loss
Undistributed Appreciation Carryforwards
Ordinary Income (Depreciation) and Deferrals Total
$9,539,330 $(2,911,393) $(16,206,309) $(9,578,372)
The difference between book basis and tax basis distributable earnings is
attributable primarily to timing differences on wash sales, mark to market
on certain forward foreign currency contracts, amortization of bond
premium, and Post-October losses.
Under current tax law, certain net capital and net foreign currency losses
realized after October 31 within the taxable year may be deferred and
treated as occurring on the first day of the following tax year. For the
year ended December 31, 2004, the fund elected to defer $633,692 net
capital losses arising between November 1, 2004 and December 31, 2004.
To the extent the Fund's net realized capital gains, if any, can be offset
by capital loss carryforwards, it is the policy of the Fund not to
distribute such gains. As determined at December 31, 2004, the Fund had
unused capital loss carryforwards available for Federal income tax purposes
to offset net realized capital gains, if any, as follows:
Expiring in
2005 2006 2007 2008 2012
$21,426 $2,478,607 $3,975,890 $6,386,624 $2,710,070
8 Dividends and distributions to shareholders: The Fund earns income, net of
expenses, daily on its investments. Income dividends and distributions from
net realized capital gains, if any, generally are distributed in October.
Income dividends and capital gain distributions to shareholders are
recorded on the ex-dividend date.
9 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
14
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
10 Expense allocation: Certain expenses are applicable to multiple funds.
Expenses directly attributable to a Series are charged to that Series.
Expenses of the Trust that are not directly attributed to a Series are
allocated among the Funds, on the basis of relative net assets, except
where a more appropriate allocation of expenses to each of the Funds can
otherwise be made fairly. Expenses borne by the complex of related
investment companies, which includes open-end and closed-end investment
companies for which Management serves as investment manager, that are not
directly attributed to a Series or the Trust, are allocated among the Fund
and the other investment companies in the complex or series thereof, on the
basis of relative net assets, except where a more appropriate allocation of
expenses to each investment company in the complex or series thereof can
otherwise be made fairly.
11 Repurchase agreements: The Fund may enter into repurchase agreements with
institutions that the Fund's investment manager has determined are
creditworthy. Each repurchase agreement is recorded at cost. The Fund
requires that the securities purchased in a repurchase agreement be
transferred to the custodian in a manner sufficient to enable the Fund to
assert a perfected security interest in those securities in the event of a
default under the repurchase agreement. The Fund monitors, on a daily
basis, the value of the securities transferred to ensure that their value,
including accrued interest, is greater than amounts owed to the Fund under
each such repurchase agreement.
12 Dollar rolls: The Fund may enter into dollar roll transactions with respect
to mortgage-backed securities. In a dollar roll transaction, the Fund sells
securities for delivery in the current month and simultaneously agrees to
repurchase substantially similar (i.e., same type and coupon) securities on
a specified future date from the same party. During the period before the
repurchase, the Fund foregoes principal and interest payments on the
securities. The Fund is compensated by the difference between the current
sales price and the forward price for the future purchase (often referred
to as the "drop"), as well as by the interest earned on the cash proceeds
of the initial sale. Dollar rolls may increase fluctuations in the Fund's
net asset value and may be viewed as a form of leverage. There is a risk
that the counter party will be unable or unwilling to complete the
transaction as scheduled, which may result in losses to the Fund.
13 Indemnifications: Like many other companies, the Trust's organizational
documents provide that its officers and trustees are indemnified against
certain liabilities arising out of the performance of their duties to the
Trust. In addition, both in some of its principal service contracts and in
the normal course of its business, the Trust enters into contracts that
provide indemnifications to other parties for certain types of losses or
liabilities. The Trust's maximum exposure under these arrangements is
unknown as this could involve future claims against the Trust.
Note B--Management Fees, Administration Fees, Distribution Arrangements,
and Other Transactions With Affiliates: Fund shares are issued and redeemed
in connection with investments in and payments under certain variable
annuity contracts and variable life insurance policies issued through
separate accounts of life insurance companies and are also offered directly
to qualified pension and retirement plans.
The Fund retains Management as its investment manager under a Management
Agreement. For such investment management services, the Fund pays
Management a fee at the annual rate of 0.25% of the first
15
Notes to Financial Statements Limited Maturity Bond Portfolio cont'd
- --------------------------------------------------------------------
$500 million of the Fund's average daily net assets, 0.225% of the next
$500 million, 0.20% of the next $500 million, 0.175% of the next $500
million, and 0.15% of average daily net assets in excess of $2 billion.
The Fund retains Management as its administrator under an Administration
Agreement. The Fund pays Management an administration fee at the annual
rate of 0.40% of its average daily net assets under this agreement.
Additionally, Management retains State Street Bank and Trust Company
("State Street") as its sub-administrator under a Sub-Administration
Agreement. Management pays State Street a fee for all services received
under this agreement.
The Board adopted a non-fee distribution plan for the Fund.
Management has contractually undertaken through December 31, 2008 to
reimburse the Fund for its operating expenses (excluding the fees payable
to Management, interest, taxes, brokerage commissions, extraordinary
expenses, and transaction costs) ("Operating Expenses") which exceed, in
the aggregate, 1.00% per annum of the Fund's average daily net assets (the
"Expense Limitation"). For the year ended December 31, 2004, no
reimbursement to the Fund was required. The Fund has agreed to repay
Management through December 31, 2011 for its excess Operating Expenses
previously reimbursed by Management, so long as its annual Operating
Expenses during that period do not exceed its Expense Limitation, and the
repayment is made within three years after the year in which Management
issued the reimbursement. During the year ended December 31, 2004, there
was no reimbursement to Management under this agreement. At December 31,
2004, the Fund has no contingent liability to Management under this
agreement.
On October 31, 2003, Management and Neuberger Berman, LLC ("Neuberger"), a
member firm of the New York Stock Exchange and sub-adviser to the Fund,
became indirect wholly-owned subsidiaries of Lehman Brothers Holdings Inc.,
a publicly-owned holding company. Neuberger is retained by Management to
furnish it with investment recommendations and research information without
added cost to the Fund. Several individuals who are officers and/or
Trustees of the Trust are also employees of Neuberger and/or Management.
The Fund has an expense offset arrangement in connection with its custodian
contract. For the year ended December 31, 2004, the impact of this
arrangement was a reduction of expenses of $1,774.
Note C--Securities Transactions:
Cost of purchases and proceeds of sales and maturities of long-term
securities (excluding financial futures contracts and foreign currency
contracts) for the year ended December 31, 2004 were as follows:
Sales and
Purchases of U.S. Purchases excluding Sales and Maturities Maturities excluding
Government and Agency U.S. Government and of U.S. Government U.S. Government and
Obligations Agency Obligations and Agency Obligations Agency Obligations
$290,811,541 $145,727,903 $297,034,725 $97,754,004
16
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
During the year ended December 31, 2004, the Fund entered into various
contracts to deliver currencies at specified future dates. At December 31,
2004, open contracts were as follows:
Contracts to Net Unrealized
Sell Deliver In Exchange For Settlement Date Value Depreciation
Euro Dollar 7,525,000 $10,087,020 2/28/05 $10,192,381 $105,361
Note D--Fund Share Transactions:
Share activity for the years ended December 31, 2004 and December 31, 2003
was as follows:
For the Year Ended December 31,
2004 2003
Shares Sold 7,077,380 9,615,524
Shares Issued on Reinvestment of Dividends and Distributions 919,055 1,092,088
Shares Redeemed (5,990,106) (15,104,458)
---------- -----------
Total 2,006,329 (4,396,846)
---------- -----------
Note E--Line of Credit:
At December 31, 2004, the Fund was a participant in a single committed,
unsecured $150,000,000 line of credit with State Street, to be used only
for temporary or emergency purposes. Interest is charged on borrowings
under this agreement at the overnight Federal Funds Rate plus 0.50% per
annum. A facility fee of 0.10% per annum of the available line of credit is
charged, of which the Fund has agreed to pay its pro rata share, based on
the ratio of its individual net assets to the net assets of all
participants at the time the fee is due and payable. The fee is paid
quarterly in arrears. No compensating balance is required. Other investment
companies managed by Management also participate in this line of credit on
the same terms. Because several investment companies participate, there is
no assurance that the Fund will have access to all or any part of the
$150,000,000 at any particular time. The Fund had no loans outstanding
pursuant to this line of credit at December 31, 2004, nor had the Fund
utilized this line of credit at any time prior to that date.
17
Financial Highlights Limited Maturity Bond Portfolio+
The following table includes selected data for a share outstanding
throughout each year and other performance information derived from the
Financial Statements.++
Year Ended December 31,
------------------------------------------
2004 2003
Net Asset Value, Beginning of Year $ 13.20 $ 13.50
-------- --------
Income From Investment Operations:
Net Investment Income (Loss) .30 .37
Net Gains or Losses on Securities (both realized and unrealized) (.20) (.05)
--------- ---------
Total From Investment Operations .10 .32
--------- ---------
Less Distributions From:
Net Investment Income (.48) (.62)
--------- ---------
Net Asset Value, End of Year $ 12.82 $ 13.20
--------- ---------
Total Return++ +0.78% +2.42%
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $ 323.4 $ 306.4
Ratio of Gross Expenses to Average Net Assets# .73% .74%
Ratio of Net Expenses to Average Net Assets .73% .74%
Ratio of Net Investment Income (Loss) to Average Net Assets 2.28% 2.73%
Portfolio Turnover Rate 132% 84%
Year Ended December 31,
------------------------------------------
2002 2001 2000
Net Asset Value, Beginning of Year $ 13.47 $ 13.19 $ 13.24
-------- ---------- --------
Income From Investment Operations:
Net Investment Income (Loss) .53 .74Y .77
Net Gains or Losses on Securities (both realized and unrealized) .16 .37Y .07
-------- ---------- --------
Total From Investment Operations .69 1.11 .84
-------- ---------- --------
Less Distributions From:
Net Investment Income (.66) ( .83) (.89)
--------- ---------- ---------
Net Asset Value, End of Year $ 13.50 $ 13.47 $ 13.19
--------- ---------- ---------
Total Return++ +5.34% +8.78% +6.78%
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $ 372.6 $ 292.8 $ 214.4
Ratio of Gross Expenses to Average Net Assets# .76% .73% .76%
Ratio of Net Expenses to Average Net Assets .76% .73% .76%
Ratio of Net Investment Income (Loss) to Average Net Assets 4.01% 5.63%Y 5.93%
Portfolio Turnover Rate 120% 89% 109%
See Notes to Financial Highlights 18
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Financial Highlights Limited Maturity Bond Portfolio
- -------------------------------------------------------------
+ The per share amounts and ratios which are shown reflect income and
expenses, including the Fund's proportionate share of AMT Limited
Maturity Bond Investment's income and expenses through April 30, 2000
under the prior master-feeder fund structure.
++ Total return based on per share net asset value reflects the effects
of changes in net asset value on the performance of the Fund during
each fiscal period and assumes dividends and other distributions, if
any, were reinvested. Results represent past performance and do not
guarantee future results. Current returns may be lower or higher than
the performance data quoted. Investment returns and principal may
fluctuate and shares when redeemed may be worth more or less than
original cost. The total return information shown does not reflect
charges and other expenses that apply to the separate account or the
related insurance policies, and the inclusion of these charges and
other expenses would reduce the total return for all fiscal periods
shown. Performance data current to the most recent month-end are
available at www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
++ The per share amounts which are shown have been computed based on the
average number of shares outstanding during each fiscal period.
Y For fiscal years ended after December 31, 2000, funds are required by
the American Institute of Certified Public Accountants to amortize
premiums and discounts on fixed income securities. Accordingly, for
the year ended December 31, 2001, the per share amounts and ratios
shown decreased or increased as follows:
Year Ended
December 31, 2001
Net Investment Income (.02)
Net Gains or Losses on Securities .02
Ratio of Net Investment Income to Average Net Assets (.11%)
19
Report of Independent Registered Public Accounting Firm
- -------------------------------------------------------
To the Board of Trustees of
Neuberger Berman Advisers Management Trust and
Shareholders of Limited Maturity Bond Portfolio
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Limited Maturity Bond Portfolio, one of the
series constituting the Neuberger Berman Advisers Management Trust (the
"Trust"), as of December 31, 2004, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights. Our procedures included confirmation of securities owned as of
December 31, 2004, by correspondence with the custodian and brokers or other
appropriate auditing procedures where replies from brokers were not received.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Limited Maturity Bond Portfolio of Neuberger Berman Advisers Management Trust
at December 31, 2004, the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then
ended, and its financial highlights for each of the five years in the period
then ended, in conformity with U.S. generally accepted accounting principles.
/S/ ERNST & YOUNG LLP
Boston, Massachusetts
February 4, 2005
20
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Trustees and Officers (Unaudited)
The following tables set forth information concerning the trustees and officers
of the Trust. All persons named as trustees and officers also serve in similar
capacities for other funds administered or managed by NB Management and
Neuberger Berman. The Statement of Additional Information includes additional
information about fund trustees and is available upon request, without charge,
by calling (800) 877-9700.
Information about the Board of Trustees
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
John Cannon (74) Trustee since Consultant. Formerly, 41 Independent Trustee or Director of
2000 Chairman, CDC Investment three series of Oppenheimer Funds:
Advisers (registered investment Limited Term New York Municipal
adviser) 1993 to January 1999; Fund, Rochester Fund Municipals,
formerly, President and Chief and Oppenheimer Convertible
Executive Officer, AMA Securities Fund, since 1992.
Investment Advisors, an affiliate
of the American Medical
Association.
- ------------------------------------------------------------------------------------------------------------------------------------
Faith Colish (69) Trustee since Counsel, Carter Ledyard & 41 Director, American Bar Retirement
1984 Millburn LLP (law firm) since Association (ABRA) since 1997
October 2002; formerly, (not-for-profit membership
Attorney-at-Law and President, association).
Faith Colish, A Professional
Corporation, 1980 to 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) Trustee since Consultant; Retired President 41 None.
1989 and Trustee, Teachers Insurance
& Annuity (TIAA) and College
Retirement Equities Fund
(CREF).
- ------------------------------------------------------------------------------------------------------------------------------------
C. Anne Harvey (67) Trustee since Consultant, C. A. Harvey 41 President, Board of Associates to
1998 Associates, since June 2001; The National Rehabilitation
formerly, Director, AARP, 1978 Hospital's Board of Directors since
to December 2001. 2002; formerly, Member, Individual
Investors Advisory Committee to the
New York Stock Exchange Board
of Directors, 1998 to June 2002;
formerly, Member, American
Savings Education Council's Policy
Board (ASEC), 1998 to 2000;
formerly, Member, Executive
Committee, Crime Prevention
Coalition of America, 1997 to 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
21
Trustees and Officers (Unaudited) cont'd
- -----------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Barry Hirsch (71) Trustee since Attorney-at-Law. Formerly, 41 None.
2000 Senior Counsel, Loews
Corporation (diversified
financial corporation) May 2002
until April 2003; formerly,
Senior Vice President, Secretary
and General Counsel,
Loews Corporation.
- -----------------------------------------------------------------------------------------------------------------------------------
Robert A. Kavesh (77) Trustee since Marcus Nadler Professor 41 Director, DEL Laboratories, Inc.
2000 Emeritus of Finance and (cosmetics and pharmaceuticals)
Economics, New York since 1978; Director, The Caring
University Stern School Community (not-for-profit).
of Business.
- -----------------------------------------------------------------------------------------------------------------------------------
Howard A. Mileaf (67) Trustee since Retired. Formerly, Vice 41 Director, WHX Corporation
1999 President and Special Counsel, (holding company) since August
WHX Corporation (holding 2002; Director, Webfinancial
company) 1993 to 2001. Corporation (holding company)
since December 2002; Director, State
Theatre of New Jersey (not-for-
profit theater) since 2000; formerly,
Director, Kevlin Corporation
(manufacturer of microwave and
other products).
- -----------------------------------------------------------------------------------------------------------------------------------
William E. Rulon (72) Trustee since Retired. Formerly, Senior Vice 41 Director, Pro-Kids Golf and
2000 President, Foodmaker, Inc. Learning Academy (teach golf and
(operator and franchiser of computer usage to "at risk" children)
restaurants) until January 1997. since 1998; formerly, Director,
Prandium, Inc. (restaurants) from
March 2001 until July 2002.
- -----------------------------------------------------------------------------------------------------------------------------------
Cornelius T. Ryan (73) Trustee since Founding General Partner, 41 Director, Capital Cash Management
2000 Oxford Partners and Oxford Trust (money market fund),
Bioscience Partners (venture Naragansett Insured Tax-Free
capital partnerships) and Income Fund, Rocky Mountain
President, Oxford Venture Equity Fund, Prime Cash Fund,
Corporation. several private companies and
QuadraMed Corporation
(NASDAQ).
- -----------------------------------------------------------------------------------------------------------------------------------
22
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Tom D. Seip (54) Trustee since General Partner, Seip 41 Director, H&R Block, Inc. (financial
2000 Investments LP (a private services company) since May 2001;
investment partnership); Director, Forward Management, Inc.
formerly, President and CEO, (asset management) since 2001;
Westaff, Inc. (temporary formerly, Director, General Magic
staffing), May 2001 to January (voice recognition software) 2001
2002; Senior Executive at the until 2002; formerly, Director,
Charles Schwab Corporation E-Finance Corporation (credit
from 1983 to 1999, including decisioning services) 1999 to 2003;
Chief Executive Officer, formerly, Director, Save-Daily.com
Charles Schwab Investment (micro investing services) 1999 to
Management, Inc. and Trustee, 2003; Director, Offroad Capital Inc.
Schwab Family of Funds and (pre-public internet commerce
Schwab Investments from company).
1997 to 1998 and Executive
Vice President-Retail
Brokerage, Charles Schwab
Investment Management from
1994 to 1997.
- ------------------------------------------------------------------------------------------------------------------------------------
Candace L. Straight (57) Trustee since Private investor and consultant 41 Director, The Proformance Insurance
1999 specializing in the insurance Company (personal lines property
industry; formerly, Advisory and casualty insurance company)
Director, Securitas Capital since March 2004; Director,
LLC (a global private equity Providence Washington (property
investment firm dedicated to and casualty insurance company)
making investments in the since December 1998; Director,
insurance sector) 1998 to Summit Global Partners (insurance
December 2002. brokerage firm) since October 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Peter P. Trapp (60) Trustee since Regional Manager for Atlanta 41 None.
1984 Region, Ford Motor Credit
Company since August 1997;
formerly, President, Ford Life
Insurance Company, April 1995
to August 1997.
- ------------------------------------------------------------------------------------------------------------------------------------
23
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Position and Fund Complex
"Interested Persons" Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Edward I. O'Brien* (76) Trustee since Formerly, Member, Investment 41 Director, Legg Mason, Inc. (financial
2000 Policy Committee, Edward services holding company) since
Jones 1993 to 2001; President, 1993; formerly, Director, Boston
Securities Industry Association Financial Group (real estate and tax
("SIA") (securities industry's shelters) 1993 to 1999.
representative in government
relations and regulatory
matters at the federal and state
levels) 1974 to 1992; Adviser to
SIA, November 1992 to
November 1993.
- ------------------------------------------------------------------------------------------------------------------------------------
Jack L. Rivkin* (64) President and Executive Vice President and 41 Director, Dale Carnegie and
Trustee since Chief Investment Officer, Associates, Inc. (private company)
December Neuberger Berman Inc. since 1998; Director, Emagin Corp.
2002 (holding company) since 2002 (public company) since 1997;
and 2003, respectively; Director, Solbright, Inc. (private
Executive Vice President and company) since 1998; Director,
Chief Investment Officer, Infogate, Inc. (private company)
Neuberger Berman since since 1997; Director, Broadway
December 2002 and 2003, Television Network (private
respectively; Director and company) since 2000.
Chairman, NB Management
since December 2002; formerly,
Executive Vice President,
Citigroup Investments, Inc.
from September 1995 to
February 2002; formerly,
Executive Vice President,
Citigroup Inc. from September
1995 to February 2002.
- ------------------------------------------------------------------------------------------------------------------------------------
24
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Position and Fund Complex
"Interested Persons" Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Peter E. Sundman* (45) Chairman of Executive Vice President, 41 Director and Vice President,
the Board, Neuberger Berman Inc. Neuberger & Berman Agency, Inc.
Chief (holding company) since 1999; since 2000; formerly, Director,
Executive Head of Neuberger Berman Neuberger Berman Inc. (holding
Officer and Inc.'s Mutual Funds and company) from October 1999
Trustee Institutional Business since through March 2003; Trustee,
since 2000 1999; President and Director, Frost Valley YMCA.
President NB Management since 1999;
and Chief Executive Vice President,
Executive Neuberger Berman since 1999;
Officer from formerly, Principal, Neuberger
1999 to 2000 Berman from 1997 until 1999;
formerly, Senior Vice President,
NB Management from 1996
until 1999.
- ------------------------------------------------------------------------------------------------------------------------------------
(1) The business address of each listed person is 605 Third Avenue, New
York, New York 10158.
(2) Pursuant to the Trust's Trust Instrument, each Trustee shall hold
office for life or until his or her successor is elected or the Trust
terminates; except that (a) any Trustee may resign by delivering a
written resignation; (b) any Trustee may be removed with or without
cause at any time by a written instrument signed by at least
two-thirds of the other Trustees; (c) any Trustee who requests to be
retired, or who has become unable to serve, may be retired by a
written instrument signed by a majority of the other Trustees; and (d)
any Trustee may be removed at any shareholder meeting by a vote of at
least two-thirds of the outstanding shares.
(3) Except as otherwise indicated, each individual has held the positions
shown for at least the last five years.
(4) Retired (effective the close of business December 31, 2004).
* Indicates a trustee who is an "interested person" within the meaning
of the 1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of
the Trust by virtue of the fact that they are officers and/or
directors of NB Management and Executive Vice Presidents of Neuberger
Berman. Mr. O'Brien is an interested person of the Trust by virtue of
the fact that he is a director of Legg Mason, Inc., a wholly owned
subsidiary of which, from time to time, serves as a broker or dealer
to the Funds and other funds for which NB Management serves as
investment manager.
25
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Information about the Officers of the Trust
- -------------------------------------------------------------------------------------------------------------------
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- -------------------------------------------------------------------------------------------------------------------
Claudia A. Brandon (48) Secretary since 1985 Vice President-Mutual Fund Board Relations,
NB Management since 2000; Vice President, Neuberger
Berman since 2002 and employee since 1999; formerly,
Vice President, NB Management from 1986 to 1999;
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (four since 2002, three since 2003, and four
since 2004).
Philip R. Carroll (70) Chief Compliance Officer Vice President, Neuberger Berman since 2002; Associate
since 2004 General Counsel, Neuberger Berman since 2001; Director-
Mutual Fund Compliance, NB Management since 1995;
Chief Legal Officer, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (ten since 2003 and four since
2004); Chief Compliance Officer, fourteen registered
investment companies for which NB Management acts
as investment manager and administrator (fourteen since
2004) and Lehman Brothers/First Trust Income
Opportunity Fund.
Robert Conti (48) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003,
formerly, Vice President, Neuberger Berman from 1999
until 2003; Senior Vice President, NB Management since
2000; formerly, Controller, NB Management until 1996;
formerly, Treasurer, NB Management from 1996 until
1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Brian J. Gaffney (51) Vice President since 2000 Managing Director, Neuberger Berman since 1999;
Senior Vice President, NB Management since 2000;
formerly, Vice President, NB Management from 1997
until 1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Sheila R. James (39) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1991 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
26
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- ----------------------------------------------------------------------------------------------------------------------------
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
Kevin Lyons (49) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1993 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (ten since 2003 and four since 2004).
John M. McGovern (34) Assistant Treasurer since 2002 Vice President, Neuberger Berman since January 2004;
Employee, NB Management since 1993; Assistant
Treasurer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
Barbara Muinos (46) Treasurer and Principal Financial Vice President, Neuberger Berman since 1999; formerly,
and Accounting Officer since 2002; Assistant Vice President, NB Management from 1993 to
prior thereto, Assistant Treasurer 1999; Treasurer and Principal Financial and Accounting
since 1996 Officer, fourteen registered investment companies for
which NB Management acts as investment manager and
Employee, Neuberger Berman since 1999; formerly,
since 2004); formerly, Assistant Treasurer, three registered
investment companies for which NB Management acts
as investment manager and administrator from 1996
until 2002.
Frederic B. Soule (58) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003;
formerly, Vice President, Neuberger Berman from 1999
until 2003; formerly, Vice President, NB Management
from 1995 until 1999; Vice President, fourteen registered
investment companies for which NB Management acts as
investment manager and administrator (three since 2000,
four since 2002, three since 2003, and four since 2004).
- -------------
(1) The business address of each listed person is 605 Third Avenue, New
York, New York 10158.
(2) Pursuant to the By-Laws of the Trust, each officer elected by the
Trustees shall hold office until his or her successor shall have been
elected and qualified or until his or her earlier death, inability to
serve, or resignation. Officers serve at the pleasure of the Trustees
and may be removed at any time with or without cause.
(3) Except as otherwise indicated, each individual has held the positions
shown for at least the last five years.
27
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available, without
charge, by calling 1-800-877-9700 (toll-free) and on the website of the
Securities and Exchange Commission, at www.sec.gov. Information regarding how
the Trust voted proxies relating to portfolio securities during the most recent
12-month period ended June 30 will also be available without charge, by calling
1-800-877-9700 (toll-free), on the website of the Securities and Exchange
Commission, at www.sec.gov, and on the Trust's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange
Commission's website at www.sec.gov and may be reviewed and copied at the
Securities and Exchange Commission's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The information on Form N-Q is available upon request,
without charge, by calling 1-800-877-9700 (toll-free).
28
Annual Report
December 31, 2004
[LOGO]
NEUBURGER BERMAN
A Lehman Brothers Company
Neuberger Berman
Advisers
Management
Trust
- --------------------------------------------------------------------------------
Mid-Cap
Growth
Portfolio[RegTM]
B1013 02/05
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Mid-Cap Growth Portfolio Managers' Commentary
- ---------------------------------------------
The Neuberger Berman AMT Mid-Cap Growth Portfolio posted positive returns for
calendar year 2004, outperforming its benchmark, the Russell Midcap Growth
Index.(2)
Our security selection within the Information Technology (IT), Consumer
Discretionary and Industrial sectors provided the largest contributions to
total returns for the year. Within IT, names that did well included Alliance
Data Systems (ADS) and Apple Computer Inc (AAPL). In Consumer Discretionary,
our emphasis on casinos and gaming was particularly additive to performance.
Industrial stocks that outperformed included JB Hunt Transport Services (JBHT)
and Corporate Executive Board (EXBD). Our emphasis on the services area of
Financials helped results, with strong performers including First Marblehead
(FMD) and Capitalsource Inc (CSE). Energy was again additive, as companies like
XTO Energy (XTO), with the ability to increase reserves or production of oil
and gas, generated strong returns. Although, in aggregate, our sector
allocation detracted from the year's results, our overweight in Telecom, one of
the strongest performing sectors, was additive.
On the downside, our stock selection within Health Care had the most negative
impact on relative portfolio performance. The environment for generic
pharmaceuticals was particularly weak given the lack of pricing power in the
industry. Our stock selection within Materials, representing 2-3% of the
benchmark, also hurt returns.
Looking ahead to 2005, we believe that economic headwinds should act to slow
economic growth from the 4% pace achieved in 2004. Tighter fiscal and monetary
policies, slowing Asian economies, the need for U.S. consumers to increase
savings, higher energy costs and a normal mid-cycle deceleration all may come
into play. This is not to say that we believe the economy is in much danger of
decline. "Real" (after inflation) interest rates remain historically low, while
the Fed remains on a "measured pace" to raise rates. In addition, corporate
spreads and the yield curve indicate continued economic expansion, and
corporate hiring and investment plans appear intact.
As a result, we believe that 2005 should prove favorable for equity investors.
Although, in our opinion, keeping inflation in check is a key to further equity
market advancement, the equity market's technicals appear healthy in the near
term. After the strong late-year market gains, sparked by the Presidential
election results and drop in crude oil prices, we expect stocks to pull back in
the weeks ahead, before moving higher again. Because we believe that the market
remains in a rally phase, we want to be positioned more aggressively than the
indices and our competition, in stocks we believe have more potential upside in
a rising market.
However, if the market advances in the first part of 2005, we currently
anticipate making rotational changes in the portfolio into more defensive
areas, such as Consumer Staples and Health Care. Currently, we are neutrally
weighted in Materials and Industrials, and underweight in Consumer Staples and
Utilities. Although Information Technology and Energy sectors are both
neutrally weighted, we expect to be sellers of technology and buyers of energy
over the longer term.
Sincerely,
/s/ JON D. BRORSON
JON D. BRORSON
PORTFOLIO MANAGER AND
GROWTH EQUITY TEAM LEADER
/s/ KENNETH J. TUREK
KENNETH J. TUREK
PORTFOLIO MANAGER
1
Mid-Cap Growth Portfolio Managers' Commentary cont'd
- ----------------------------------------------------
- --------------------------------------------------------------------------------
Average Annual Total Return(1)
Mid-Cap Mid-Cap
Growth Porfolio Growth Porfolio Russell Midcap(R)
Class I Class S Growth(2)
1 Year 16.31% 16.03% 15.48%
5 Year (6.00%) (6.10%) (3.36%)
Life of Fund 8.91% 8.83% 6.20%
- --------------------------------------------------------------------------------
Inception Date 11/03/1997 02/18/2003
Performance data quoted represent past performance, which is no guarantee of
future results. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed may be worth more or less
than their original cost. Results are shown on a "total return" basis and
include reinvestment of all dividends and capital gain distributions.
Current performance may be lower or higher than the performance data quoted. For
performance data current to the moste recent month end, please visit www.nb.com/
performance.
Comparison of a $10,000 Investment
[PLOT POINTS FOR LINE GRAPH]
- ------------------------------------------------------
Mid-Cap
Growth Porfolio Russell Midcap(R)
- ------------------------------------------------------
Class I Growth
- ------------------------------------------------------
11/3/1997 $10,000 $10,000
- ------------------------------------------------------
12/31/1997 $11,720 $10,238
- ------------------------------------------------------
12/31/1998 $16,324 $12,067
- ------------------------------------------------------
12/31/1999 $25,121 $18,256
- ------------------------------------------------------
12/31/2000 $23,247 $16,111
- ------------------------------------------------------
12/31/2001 $17,518 $12,864
- ------------------------------------------------------
12/31/2002 $12,378 $ 9,339
- ------------------------------------------------------
12/31/2003 $15,853 $13,328
- ------------------------------------------------------
12/31/2004 $18,438 $15,391
- ------------------------------------------------------
The chart shows the value of a hypothetical $10,000 investment in the Fund over
the past 10 fiscal years, or since the Fund's inception, if it has not operated
for 10 years. The graphs are based on Class I shares only; performance of other
classes will vary due to differences in fee structures (see Average Annual Total
Return chart above). The results are compared with benchmarks, which may include
a broad-based market index and/or a narrower index. Please note that market
indexes do not include expenses. All results include the reinvestment of
dividends and capital gain distributions. Results represent past performance and
do not indicate future results. The chart and table do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
Please see Endnotes for additional information.
Industry Diversification
(% of Industry Holdings)
Aerospace ............................. 0.6%
Basic Materials ....................... 0.6
Biotechnology ......................... 4.9
Business Services ..................... 7.9
Capital Equipment ..................... 0.7
Communications Equipment .............. 1.7
Computer Related ...................... 1.2
Defense ............................... 0.6
Diagnostic Equipment .................. 1.0
Electrical & Electronics .............. 0.5
Energy ................................ 4.3
Entertainment ......................... 1.5
Finance ............................... 3.1
Financial Services .................... 5.4
Food & Beverage ....................... 1.0
Food Products ......................... 0.6
Health Care ........................... 6.3
Industrial ............................ 7.1
Industrial Gases ...................... 0.5
Instruments ........................... 1.0
Leisure ............................... 3.7
Media ................................. 0.5
Medical Equipment ..................... 3.3
Oil & Gas ............................. 0.4
Packing & Containers .................. 1.0
Retail ................................ 10.5
Semiconductors ........................ 3.9
Software .............................. 5.1
Technology ............................ 8.7
Telecommunications .................... 4.8
Transportation ........................ 2.2
Short-Term Investments ................ 28.1
Liabilities, less cash, receivables and
other assets ...................... (22.7)
2
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Endnotes
- --------
1. For Class I, 16.31%, (6.00%) and 8.91% were the average annual
total returns for the 1-year, 5-year and since inception
(11/03/97) periods ended December 31, 2004. For Class S, 16.03%,
(6.10%) and 8.83% were the average annual total returns for the
1-year, 5-year and since inception of Class I (11/03/97) periods
ended December 31, 2004. Performance shown prior to February 2003
for the Class S shares is of the Class I shares, which has lower
expenses and typically higher returns that the Class S shares.
Neuberger Berman Management Inc. ("NBMI") has agreed to absorb
certain expenses of the AMT Portfolios. Without this arrangement,
which is subject to change, the total returns of the Portfolios
would be less. Total return includes reinvestment of dividends
and capital gain distributions. Performance data quoted represent
past performance and the investment return and principal value of
an investment will fluctuate so that the shares, when redeemed,
may be worth more or less than original cost. The performance
information does not reflect fees and expenses of the insurance
companies.
2. The Russell Midcap[RegTM] Growth Index measures the performance
of those Russell Midcap[RegTM] Index companies with higher
price-to-book ratios and higher forecasted growth values. The
Russell Midcap Index measures the performance of the 800 smallest
companies in the Russell 1000[RegTM] Index, which represents
approximately 26% of the total market capitalization of the
Russell 1000 Index (which, in turn, consists of the 1,000 largest
U.S. companies, based on market capitalization). Please note that
indices do not take into account any fees and expenses of
investing in the individual securities that they track, and that
individuals cannot invest directly in any index. Data about the
performance of these indices are prepared or obtained by NBMI and
include reinvestment of all dividends and capital gain
distributions. The Portfolio may invest in many securities not
included in the above-described indices.
The investments for the Portfolio are managed by the same
portfolio manager(s) who manage one or more other mutual funds
that have similar names, investment objectives and investment
styles as the Portfolio. You should be aware that the Portfolio
is likely to differ from the other mutual funds in size, cash
flow pattern and tax matters. Accordingly, the holdings and
performance of the Portfolio can be expected to vary from those
of the other mutual funds.
The composition, industries and holdings of the Portfolio are
subject to change.
Shares of the separate Portfolios of Neuberger Berman Advisers
Management Trust are sold only through the currently effective
prospectus and are not available to the general public. Shares of
this Portfolio may be purchased only by life insurance companies
to be used with their separate accounts that fund variable
annuity and variable life insurance policies and by qualified
pension and retirement plans.
(C) 2005 Neuberger Berman Management Inc., distributor. All
rights reserved.
3
Information About Your Fund's Expenses
- --------------------------------------
This table is designed to provide information regarding costs related to your
investments. All mutual funds incur operating expenses, which include
management fees, administrative services and shareholder reports among others.
The following example is based on an investment of $1,000 made at the beginning
of the period shown and held for the entire period. The table illustrates the
fund's costs in two ways:
Actual Expenses: The first section of the table
provides information about
actual account values and actual
expenses in dollars. You may use
the information in this line,
together with the amount you
invested, to estimate the
expenses you paid over the
period.
Hypothetical Example for Comparison Purposes: The second section of the table
provides information about
hypothetical account values and
hypothetical expenses based on
the Fund's actual expense ratio
and an assumed rate of return at
5% per year before expenses.
This return is not the Fund's
actual return. The hypothetical
account values and expenses may
not be used to estimate the
actual ending account balance or
expenses you paid for the
period. You may use this
information to compare the
ongoing costs of investing in
this Fund versus other funds. To
do so, compare this 5%
hypothetical example with the 5%
hypothetical examples that
appear in the shareholder
reports of other funds.
Expense Information As of 12/31/04 (Unaudited)
- ----------------------------------------------
Neuberger Berman Advisers Management Trust Mid-Cap Growth Portfolio
Beginning Ending Expenses Paid
Actual Account Value Account Value During the Period*
Class I $1,000 $1,081.90 $4.76
Class S $1,000 $1,080.40 $6.07
Hypothetical (5% annual return before expenses)**
Class I $1,000 $1,020.56 $4.62
Class S $1,000 $1,019.30 $5.89
* For each Class of the Fund, expenses are equal to the expense ratio for the
class, multiplied by the average account value over the period, multiplied
by 184/366 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying
the number of days in the most recent half year divided by 366.
4
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Mid-Cap Growth Portfolio
- ------------------------------------------------
Number of Shares Market Value+
Common Stocks (94.6%)
Aerospace (0.6%)
78,000 Rockwell Collins $ 3,076,320
Basic Materials (0.6%)
58,500 Nucor Corp. 3,061,890\P
Biotechnology (4.9%)
198,500 Celgene Corp. 5,266,205*
92,000 Genzyme Corp. 5,342,440*\P
213,000 Gilead Sciences 7,452,870*
88,500 Martek Biosciences 4,531,200*
225,000 Protein Design Labs 4,648,500*\P
------------
27,241,215
Business Services (7.9%)
262,500 Alliance Data Systems 12,463,500*
144,000 Corporate Executive Board 9,639,360\P
95,000 Getty Images 6,540,750*
140,000 Hewitt Associates 4,481,400*
56,000 NAVTEQ 2,596,160*
90,000 Robert Half International 2,648,700
123,000 Stericycle, Inc. 5,651,850*
------------
44,021,720
Capital Equipment (0.7%)
87,000 Terex Corp. 4,145,550*
Communications Equipment (1.7%)
92,000 F5 Networks 4,482,240*
191,000 Juniper Networks 5,193,290*\P
------------
9,675,530
Computer Related (1.2%)
103,000 Apple Computer 6,633,200*
Defense (0.6%)
45,000 CACI International 3,065,850*
Diagnostic Equipment (1.0%)
206,500 Cytyc Corp. 5,693,205*
Electrical & Electronics (0.5%)
109,000 Jabil Circuit 2,788,220*
Energy (4.3%)
88,500 Canadian Natural
Resources 3,785,145
73,500 National-Oilwell 2,593,815*
40,500 Peabody Energy 3,276,855
92,800 Smith International 5,049,248*
257,150 XTO Energy 9,097,967
------------
23,803,030
Entertainment (1.5%)
156,000 Station Casinos 8,530,080
Finance (3.1%)
225,500 CapitalSource Inc. 5,788,585*
20,500 Chicago Mercantile
Exchange 4,688,350\P
119,000 First Marblehead 6,693,750*
------------
17,170,685
Number of Shares Market Value+
Financial Services (5.4%)
24,100 Advance America Cash
Advance Centers $ 551,890*\P
290,000 Ameritrade Holding 4,123,800*\P
162,800 Investors Financial
Services 8,136,744
58,500 Jackson Hewitt Tax Service 1,477,125
86,250 Legg Mason 6,318,675\P
82,600 Moody's Corp. 7,173,810
159,500 Providian Financial 2,626,965*\P
------------
30,409,009
Food & Beverage (1.0%)
66,500 Constellation Brands 3,092,915*
49,500 Hershey Foods 2,749,230
------------
5,842,145
Food Products (0.6%)
140,500 Archer-Daniels-Midland 3,134,555
Health Care (6.3%)
40,000 AMERIGROUP Corp. 3,026,400*
113,000 C. R. Bard 7,229,740
51,500 Cerner Corp. 2,738,255*\P
74,500 Invitrogen Corp. 5,001,185*\P
52,500 PacifiCare Health Systems 2,967,300*
141,000 Varian Medical Systems 6,096,840*\P
176,000 VCA Antech 3,449,600*
59,100 Zimmer Holdings 4,735,092*\P
------------
35,244,412
Industrial (7.1%)
148,000 Danaher Corp. 8,496,680\P
171,700 Donaldson Co. 5,593,986
75,000 Eaton Corp. 5,427,000
138,300 Fastenal Co. 8,513,748\P
55,000 Harman International
Industries 6,985,000\P
66,000 W.W. Grainger 4,396,920
------------
39,413,334
Industrial Gases (0.5%)
43,500 Air Products & Chemicals 2,521,695
Instruments (1.0%)
193,500 Thermo Electron 5,841,765*
Leisure (3.7%)
98,500 Marriott International 6,203,530
70,000 MGM Mirage 5,091,800*
167,600 Royal Caribbean Cruises 9,124,144\P
------------
20,419,474
Media (0.5%)
90,800 Univision Communications 2,657,716*
Medical Equipment (3.3%)
127,000 Kinetic Concepts 9,690,100*\P
150,500 Kyphon Inc. 3,876,880*
100,300 ResMed Inc. 5,125,330*\P
------------
18,692,310
See Notes to Schedule of Investments 5
Schedule of Investments Mid-Cap Growth Portfolio cont'd
- -------------------------------------------------------
Number of Shares Market Value+
Oil & Gas (0.4%)
55,000 Quicksilver Resources $ 2,022,900*\P
Packing & Containers (1.0%)
223,600 Pactiv Corp. 5,654,844*
Retail (10.5%)
94,000 Abercrombie & Fitch 4,413,300
114,000 Bed Bath & Beyond 4,540,620*
165,600 Coach, Inc. 9,339,840*
40,000 Dick's Sporting Goods 1,406,000*
52,000 Fortune Brands 4,013,360
55,000 Nordstrom, Inc. 2,570,150
260,000 PETsMART, Inc. 9,237,800\P
164,500 Staples, Inc. 5,545,295
95,500 Starbucks Corp. 5,955,380*\P
71,500 Whole Foods Market 6,817,525\P
139,500 Williams-Sonoma 4,888,080*
------------
58,727,350
Semiconductors (3.9%)
120,100 Altera Corp. 2,486,070*
83,500 KLA-Tencor 3,889,430*\P
118,500 Marvell Technology Group 4,203,195*
162,500 Microchip Technology 4,332,250
309,000 Microsemi Corp. 5,364,240*
37,500 Varian Semiconductor
Equipment 1,381,875*
------------
21,657,060
Software (5.1%)
75,500 Adobe Systems 4,736,870
100,000 Cognos, Inc. 4,406,000*
142,000 McAfee Inc. 4,108,060*
182,500 Mercury Interactive 8,312,875*\P
533,000 TIBCO Software 7,110,220*
------------
28,674,025
Technology (8.7%)
206,000 ATI Technologies 3,994,340*\P
97,000 Autodesk, Inc. 3,681,150
214,500 Check Point Software
Technologies 5,283,135*
216,000 Cognizant Technology
Solutions 9,143,280*
30,000 Garmin Ltd. 1,825,200\P
92,000 Macromedia, Inc. 2,863,040*
46,500 NCR Corp. 3,219,195*
43,500 VeriSign, Inc. 1,458,120*
305,500 Zebra Technologies 17,193,540*
------------
48,661,000
Telecommunications (4.8%)
160,000 American Tower 2,944,000*
171,500 Avaya Inc. 2,949,800*
586,500 Nextel Partners 11,460,210*\P
202,500 Western Wireless 5,933,250*\P
100,500 XM Satellite Radio
Holdings 3,780,810*\P
------------
27,068,070
Number of Shares Market Value+
Transportation (2.2%)
86,500 C.H. Robinson Worldwide $ 4,802,480
170,800 J.B. Hunt Transport
Services 7,660,380
------------
12,462,860
Total Common Stocks
(Cost $381,063,792) 528,011,019
------------
Principal Amount
Short-Term Investments (28.1%)
$125,896,400 N&B Securities Lending
Quality Fund, LLC 125,896,400++
30,889,296 Neuberger Berman Prime
Money Fund Trust Class 30,889,296@
------------
Total Short-Term Investments
(Cost $156,785,696) 156,785,696#
------------
Total Investments (122.7%)
(Cost $537,849,488) 684,796,715##
Liabilities, less cash, receivables and
other assets [(22.7%)] (126,470,387)
------------
Total Net Assets (100.0%) $558,326,328
------------
See Notes to Schedule of Investments 6
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Schedule of Investments Mid-Cap Growth Portfolio
- ---------------------------------------------------------
+ Investments in equity securities by Neuberger Berman Advisers
Management Trust Mid-Cap Growth Portfolio (the "Fund") are valued at
the latest sale price where that price is readily available;
securities for which no sales were reported, unless otherwise noted,
are valued at the mean between the closing bid and the asked prices.
Securities traded primarily on the NASDAQ Stock Market are normally
valued by the Fund at the NASDAQ Official Closing Price ("NOCP")
provided by NASDAQ each business day. The NOCP is the most recently
reported price as of 4:00:02 p.m., Eastern time, unless that price is
outside the range of the "inside" bid and asked prices (i.e., the bid
and asked prices that dealers quote to each other when trading for
their own accounts); in that case, NASDAQ will adjust the price to
equal the inside bid or asked price, whichever is closer. Because of
delays in reporting trades, the NOCP may not be based on the price of
the last trade to occur before the market closes. The Fund values all
other securities by a method the Board of Trustees of Neuberger Berman
Advisers Management Trust (the "Board") believes accurately reflects
fair value. Numerous factors may be considered when determining the
fair value of a security, including available analyst, media or other
reports, trading in futures or ADRs and whether the issuer of the
security being fair valued has other securities outstanding. Foreign
security prices are furnished by independent quotation services and
expressed in local currency values. Foreign security prices are
translated from the local currency into U.S. dollars using the
exchange rate as of 12:00 noon, Eastern time. The Board has approved
the use of FT Interactive Data Corporation ("FT Interactive") to
assist in determining the fair value of the Fund's foreign equity
securities in the wake of certain significant events. When changes in
the value of a certain index suggest that the closing prices on the
foreign exchanges may no longer represent the amount that the Fund
could expect to receive for those securities, FT Interactive will
provide adjusted prices for certain foreign equity securities based on
an analysis showing historical correlations between the prices of
those securities and changes in the index. In the absence of precise
information about the market values of these foreign securities as of
the close of the New York Stock Exchange, the Board has determined on
the basis of available data that prices adjusted in this way are
likely to be closer to the prices the Fund could realize on a current
sale than are the prices of those securities established at the close
of the foreign markets in which the securities primarily trade.
However, fair value prices are necessarily estimates, and there is no
assurance that such a price will be at or close to the price at which
the security next trades. Short-term debt securities with less than 60
days until maturity may be valued at cost which, when combined with
interest earned, approximates market value.
# At cost, which approximates market value.
## At December 31, 2004, the cost of investments for U.S. Federal income
tax purposes was $538,322,516. Gross unrealized appreciation of
investments was $148,997,467 and gross unrealized depreciation of
investments was $2,523,268, resulting in net unrealized appreciation
of $146,474,199, based on cost for U.S. Federal income tax purposes.
* Non-income producing security.
\P All or a portion of this security is on loan (see Note A of Notes to
Financial Statements).
@ Neuberger Berman Prime Money Fund ("Prime Money") is also managed by
Neuberger Berman Management Inc. (see Notes A & F of Notes to
Financial Statements) and may be considered an affiliate since it has
the same officers, Board members, and investment manager as the Fund
and because, at times, the Fund may own 5% or more of the outstanding
voting securities of Prime Money.
++ The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash
the Fund receives as collateral for securities loans. The Fund's
shares in the Quality Fund are non-voting. However, because all shares
of the Quality Fund are held by funds in the related investment
management complex, the Quality Fund may be considered an affiliate of
the Fund (see Notes A & F of Notes to Financial Statements).
See Notes to Financial Statements 7
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Assets and Liabilities
- -------------------------------------
------------
Mid-Cap
Growth
Neuberger Berman Advisers Management Trust Portfolio
Assets
Investments in securities, at market value*+ (Notes A & F)-see Schedule of Investments:
- ---------------------------------------------------------------------------------------------------------
Unaffiliated issuers $ 528,011,019
- ---------------------------------------------------------------------------------------------------------
Affiliated issuers 156,785,696
- ---------------------------------------------------------------------------------------------------------
684,796,715
- ---------------------------------------------------------------------------------------------------------
Dividends and interest receivable 91,303
- ---------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 88,316
- ---------------------------------------------------------------------------------------------------------
Prepaid expenses and other assets 19,783
- ---------------------------------------------------------------------------------------------------------
Total Assets 684,996,117
- ---------------------------------------------------------------------------------------------------------
Liabilities
Payable for collateral on securities loaned (Note A) 125,896,400
- ---------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 288,097
- ---------------------------------------------------------------------------------------------------------
Payable to investment manager-net (Notes A & B) 237,814
- ---------------------------------------------------------------------------------------------------------
Payable to administrator (Note B) 136,854
- ---------------------------------------------------------------------------------------------------------
Accrued expenses and other payables 110,624
- ---------------------------------------------------------------------------------------------------------
Total Liabilities 126,669,789
- ---------------------------------------------------------------------------------------------------------
Net Assets at value $ 558,326,328
- ---------------------------------------------------------------------------------------------------------
Net Assets consist of:
Paid-in capital $ 751,105,768
- ---------------------------------------------------------------------------------------------------------
Accumulated net realized gains (losses) on investments (339,726,771)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) in value of investments 146,947,331
- ---------------------------------------------------------------------------------------------------------
Net Assets at value $ 558,326,328
- ---------------------------------------------------------------------------------------------------------
Net Assets
Class I $ 543,333,631
- ---------------------------------------------------------------------------------------------------------
Class S 14,992,697
- ---------------------------------------------------------------------------------------------------------
Shares Outstanding ($.001 par value; unlimited shares authorized)
Class I 30,465,492
- ---------------------------------------------------------------------------------------------------------
Class S 845,402
- ---------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share
Class I $ 17.83
- ---------------------------------------------------------------------------------------------------------
Class S 17.73
- ---------------------------------------------------------------------------------------------------------
+Securities on loan, at market value:
Unaffiliated issuers $ 122,004,874
- ---------------------------------------------------------------------------------------------------------
*Cost of Investments:
Unaffiliated issuers $ 381,063,792
- ---------------------------------------------------------------------------------------------------------
Affiliated issuers 156,785,696
- ---------------------------------------------------------------------------------------------------------
Total cost of investments $ 537,849,488
- ---------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 8
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST FOR THE YEAR ENDED DECEMBER 31, 2004
Statement of Operations
- -----------------------
------------
Mid-Cap
Growth
Neuberger Berman Advisers Management Trust Portfolio
Investment Income
Income (Note A):
Dividend income-unaffiliated issuers $ 1,697,477
- ---------------------------------------------------------------------------------------------------------
Income from securities loaned-affiliated issuer (Note F) 325,925
- ---------------------------------------------------------------------------------------------------------
Interest income 612
- ---------------------------------------------------------------------------------------------------------
Income from investments in affiliated issuers (Note F) 196,718
- ---------------------------------------------------------------------------------------------------------
Foreign taxes withheld (10,009)
- ---------------------------------------------------------------------------------------------------------
Total income 2,210,723
- ---------------------------------------------------------------------------------------------------------
Expenses:
Investment management fee (Notes A & B) 2,614,071
- ---------------------------------------------------------------------------------------------------------
Administration fee (Note B):
Class I 1,428,012
------------------------------------------------------------------------------------------------------
Class S 30,029
------------------------------------------------------------------------------------------------------
Distribution fees (Note B):
Class S 25,024
------------------------------------------------------------------------------------------------------
Audit fees 39,228
- ---------------------------------------------------------------------------------------------------------
Custodian fees (Note B) 154,290
- ---------------------------------------------------------------------------------------------------------
Insurance expense 12,360
- ---------------------------------------------------------------------------------------------------------
Legal fees 84,233
- ---------------------------------------------------------------------------------------------------------
Shareholder reports 79,763
- ---------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 25,808
- ---------------------------------------------------------------------------------------------------------
Miscellaneous 8,401
- ---------------------------------------------------------------------------------------------------------
Total expenses 4,501,219
Investment management fee waived (Note A) (18,427)
Expenses reduced by custodian fee expense offset and commission recapture arrangements (81,899)
(Note B)
- ---------------------------------------------------------------------------------------------------------
Total net expenses 4,400,893
- ---------------------------------------------------------------------------------------------------------
Net investment income (loss) (2,190,170)
- ---------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers 25,635,889
------------------------------------------------------------------------------------------------------
Foreign currency (34)
------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities 53,362,814
------------------------------------------------------------------------------------------------------
Foreign currency 104
------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 78,998,773
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 76,808,603
- ---------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 9
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Changes in Net Assets
Mid-Cap Growth Portfolio
-------------------------------------
Neuberger Berman Advisers Management Trust Year Ended December 31,
2004 2003
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss) $ (2,190,170) $ (2,118,449)
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 25,635,855 4,757,260
- ---------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments 53,362,918 97,758,431
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 76,808,603 100,397,242
- ---------------------------------------------------------------------------------------------------------
From Fund Share Transactions (Note D):
Proceeds from shares sold:
Class I 81,076,473 191,004,176
------------------------------------------------------------------------------------------------------
Class S 10,633,301 15,372,995
------------------------------------------------------------------------------------------------------
Payments for shares redeemed:
Class I (72,473,549) (193,325,218)
------------------------------------------------------------------------------------------------------
Class S (3,741,232) (9,600,281)
------------------------------------------------------------------------------------------------------
Net increase (decrease) from Fund share transactions 15,494,993 3,451,672
- ---------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 92,303,596 103,848,914
Net Assets:
Beginning of year 466,022,732 362,173,818
- ---------------------------------------------------------------------------------------------------------
End of year $ 558,326,328 $ 466,022,732
- ---------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) at end of year $ - $ -
- ---------------------------------------------------------------------------------------------------------
See Notes to Financial Statements 10
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Financial Statements Mid-Cap Growth Portfolio
- ------------------------------------------------------
Note A--Summary of Significant Accounting Policies:
1 General: Mid-Cap Growth Portfolio (the "Fund") is a separate operating
series of Neuberger Berman Advisers Management Trust (the "Trust"), a
Delaware statutory trust organized pursuant to a Trust Instrument dated May
23, 1994. The Trust is currently comprised of eleven separate operating
series (each a "Series," collectively, the "Funds") each of which (except
Focus Portfolio) is diversified. The Trust is registered as an open-end
management investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"), and its shares are registered under the
Securities Act of 1933, as amended (the "1933 Act"). The Fund currently
offers Class I and Class S shares. Class S had no operations until February
18, 2003, other than matters relating to its organization and registration
of its shares under the 1933 Act. The Board of Trustees of the Trust (the
"Board") may establish additional series or classes of shares without the
approval of shareholders.
The assets of each Series belong only to that Series, and the liabilities
of each Series are borne solely by that Series and no other.
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires Neuberger Berman Management Inc.
("Management") to make estimates and assumptions at the date of the
financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the
notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars using the exchange rate as of 12:00 noon, Eastern time, to
determine the value of investments, other assets and liabilities. Purchase
and sale prices of securities, and income and expenses, are translated into
U.S. dollars at the prevailing rate of exchange on the respective dates of
such transactions. Net unrealized foreign currency gain (loss) arises from
changes in the value of assets and liabilities, other than investments in
securities, as a result of changes in exchange rates and is stated
separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the Fund
becomes aware of the dividends. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, including accretion of original issue discount,
where applicable, and accretion of discount on short-term investments, is
recorded on the accrual basis. Realized gains and losses from securities
transactions and foreign currency transactions, if any, are recorded on the
basis of identified cost and stated separately in the Statement of
Operations. Included in net realized gain (loss) on investment securities
sold are proceeds from the settlements of class action litigation in which
the Fund participated as a plaintiff. The amount of such proceeds for the
year ended December 31, 2004 was $7,834.
5 Income tax information: The Funds are treated as separate entities for U.S.
Federal income tax purposes. It is the policy of the Fund to continue to
qualify as a regulated investment company by complying with the
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated
11
Notes to Financial Statements Mid-Cap Growth Portfolio cont'd
- -------------------------------------------------------------
investment companies and to distribute substantially all of its earnings to
its shareholders. Therefore, no Federal income or excise tax provision is
required.
Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities
held by the Fund, timing differences and differing characterization of
distributions made by the Fund as a whole. The Fund may also utilize
earnings and profits distributed to shareholders on redemption of shares as
a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2004, permanent differences resulting
primarily from different book and tax accounting for net operating losses
and foreign currency gains and losses, were reclassified at year end. These
reclassifications had no effect on net income, net assets or net assets per
share of the Fund.
As of December 31, 2004, the components of distributable earnings
(accumulated losses) on a U.S. Federal income tax basis were as follows:
Unrealized Loss
Appreciation Carryforwards
(Depreciation) and Deferrals Total
$146,474,302 $ (339,253,743) $ (192,779,441)
The difference between book basis and tax basis distributable earnings is
attributable primarily to timing differences on wash sales.
To the extent the Fund's net realized capital gains, if any, can be offset
by capital loss carryforwards, it is the policy of the Fund not to
distribute such gains. As determined at December 31, 2004, the Fund had
unused capital loss carryforwards available for Federal income tax purposes
to offset net realized capital gains, if any, as follows:
Expiring in
2009 2010 2011
$214,771,203 $113,423,118 $11,059,422
6 Dividends and distributions to shareholders: The Fund may earn income, net
of expenses, daily on its investments. Income dividends and distributions
from net realized capital gains, if any, generally are distributed in
October. Income dividends and capital gain distributions to shareholders
are recorded on the ex-dividend date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds.
Expenses directly attributable to a Series are charged to that Series.
Expenses of the Trust that are not directly attributed to a Series are
allocated among the Funds, on the basis of relative net assets, except
where a more appropriate allocation of expenses to each of the Funds can
otherwise be made fairly. Expenses borne by the complex of related
investment companies, which includes open-end and closed-end investment
companies for which Management serves as investment manager, that are not
directly attributed to a Series or the Trust, are allocated among the Fund
and the other investment companies in the complex or series thereof, on the
12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
basis of relative net assets, except where a more appropriate allocation of
expenses to each investment company in the complex or series thereof can
otherwise be made fairly. The Fund's expenses (other than those specific to
each class) are allocated proportionally each day between the classes based
upon the relative net assets of each class.
9 Security lending: Pursuant to an Exemptive Order issued by the Securities
and Exchange Commission, the Fund entered into a Securities Lending
Agreement ("Agreement") with Neuberger Berman, LLC ("Neuberger") on April
17, 2003. Securities loans involve certain risks in the event a borrower
should fail financially, including delays or inability to recover the lent
securities or foreclose against the collateral. The investment manager,
under the general supervision of the Board, monitors the creditworthiness
of the parties to whom the Fund makes security loans. The Fund will not
lend securities on which covered call options have been written, or lend
securities on terms which would prevent the Fund from qualifying as a
regulated investment company. The Fund receives cash collateral equal to at
least 102% of the current market value of the loaned securities. The Fund
invests the cash collateral in the N&B Securities Lending Quality Fund, LLC
("Quality Fund"), which is managed by State Street Bank and Trust Company
("State Street") pursuant to guidelines approved by the Trust's investment
manager. Neuberger guaranteed a certain amount of revenue to the Fund under
the Agreement, and received a portion of any revenue earned in excess of
the guaranteed amount as a lending agency fee. For the year ended December
31, 2004, Neuberger did not receive any revenue under the Agreement.
The Agreement has been renewed and approved by the Board as of July 1, 2004
with substantially the same terms. Under this current Agreement, Neuberger
guarantees a certain amount of revenue to the Fund and receives any revenue
earned in excess of the guaranteed amount as a lending agency fee. Income
earned on the securities loaned, if any, is reflected in the Statement of
Operations under the caption Income from securities loaned-affiliated
issuer.
In February of 2005, it is likely that the Fund will change the collateral
investment vehicle from the Quality Fund, managed by State Street, to a
fund managed by Lincoln Capital, an affiliate, as approved by the Board.
10 Repurchase agreements: The Fund may enter into repurchase agreements with
institutions that the Fund's investment manager has determined are
creditworthy. Each repurchase agreement is recorded at cost. The Fund
requires that the securities purchased in a repurchase agreement be
transferred to the custodian in a manner sufficient to enable the Fund to
assert a perfected security interest in those securities in the event of a
default under the repurchase agreement. The Fund monitors, on a daily
basis, the value of the securities transferred to ensure that their value,
including accrued interest, is greater than amounts owed to the Fund under
each such repurchase agreement.
11 Transactions with other funds managed by Neuberger Berman Management Inc.:
Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the Fund may invest in the Neuberger Berman Institutional Cash
Fund (the "Cash Fund") and the Neuberger Berman Prime Money Fund ("Prime
Money"), affiliated funds, which are managed by Management and have the
same Board members as the Fund. The Cash Fund and Prime Money each seeks to
provide as high a level of current
13
Notes to Financial Statements Mid-Cap Growth Portfolio cont'd
- -------------------------------------------------------------
income as is consistent with the preservation of capital and the
maintenance of liquidity. For any cash that the Fund invests in the Cash
Fund or Prime Money, Management waives a portion of its management fee
equal to the management fee it receives from the Cash Fund and Prime Money
on those assets. For the year ended December 31, 2004, such waived fees
amounted to $18,087 and $340 for the Cash Fund and Prime Money,
respectively. For the year ended December 31, 2004, income earned on the
investment of the Cash Fund and Prime Money amounted to $188,700 and
$8,018, respectively, and is reflected in the Statement of Operations under
the caption Income from investments in affiliated issuers.
12 Indemnifications: Like many other companies, the Trust's organizational
documents provide that its officers and trustees are indemnified against
certain liabilities arising out of the performance of their duties to the
Trust. In addition, both in some of its principal service contracts and in
the normal course of its business, the Trust enters into contracts that
provide indemnifications to other parties for certain types of losses or
liabilities. The Trust's maximum exposure under these arrangements is
unknown as this could involve future claims against the Trust.
13 Other: All net investment income and realized and unrealized capital gains
and losses of the Fund are allocated, on the basis of relative net assets,
pro rata among its respective classes.
Note B--Management Fees, Administration Fees, Distribution Arrangements,
and Other Transactions With Affiliates:
Fund shares are issued and redeemed in connection with investments in and
payments under certain variable annuity contracts and variable life
insurance policies issued through separate accounts of life insurance
companies and are also offered directly to qualified pension and retirement
plans.
The Fund retains Management as its investment manager under a Management
Agreement. For such investment management services, the Fund pays
Management a fee at the annual rate of 0.55% of the first $250 million of
the Fund's average daily net assets, 0.525% of the next $250 million, 0.50%
of the next $250 million, 0.475% of the next $250 million, 0.45% of the
next $500 million, 0.425% of the next $2.5 billion, and 0.40% of average
daily net assets in excess of $4 billion.
The Fund retains Management as its administrator under an Administration
Agreement. Each class pays Management an administration fee at the annual
rate of 0.30% of its average daily net assets under this agreement.
Additionally, Management retains State Street as its sub-administrator
under a Sub-Administration Agreement. Management pays State Street a fee
for all services received under this agreement.
The Board adopted a non-fee distribution plan for the Fund's Class I.
For the Fund's Class S, Management acts as agent in arranging for the sale
of class shares without commission and bears advertising and promotion
expenses. The Board has adopted a distribution plan (the "Plan") with
respect to this class, pursuant to Rule 12b-1 under the 1940 Act. The Plan
provides that, as compensation for administrative and other services
provided to this class, Management's activities and expenses related to the
sale and distribution of this class of shares, and ongoing services
provided to
14
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
investors in this class, Management receives from this class a fee at the
annual rate of 0.25% of Class S's average daily net assets. Management
receives this amount to provide distribution and shareholder servicing for
this class and pays a portion of it to institutions that provide such
services. Those institutions may use the payments for, among other
purposes, compensating employees engaged in sales and/or shareholder
servicing. The amount of fees paid by this class during any year may be
more or less than the cost of distribution and other services provided to
this class. NASD rules limit the amount of annual distribution fees that
may be paid by a mutual fund and impose a ceiling on the cumulative
distribution fees paid. The Trust's Plan complies with those rules.
Management has contractually undertaken through December 31, 2008 to
reimburse the Fund's Class I and Class S shares for their operating
expenses (excluding the fees payable to Management (including the fees
payable to Management with respect to the Fund's Class S shares), interest,
taxes, brokerage commissions, extraordinary expenses, and transaction
costs) ("Operating Expenses") which exceed, in the aggregate, 1.00% and
1.25%, respectively, per annum of their average daily net assets (the
"Expense Limitation"). For the year ended December 31, 2004, no
reimbursement to the Fund's Class I and Class S shares was required. The
Fund's Class I and Class S shares each have agreed to repay Management
through December 31, 2011 for their excess Operating Expenses previously
reimbursed by Management, so long as their annual Operating Expenses during
that period do not exceed their Expense Limitations, and the repayments are
made within three years after the year in which Management issued the
reimbursement. During the year ended December 31, 2004, there was no
reimbursement to Management under these agreements. At December 31, 2004,
the Fund's Class I and Class S shares have no contingent liability to
Management under these agreements.
On October 31, 2003, Management and Neuberger, a member firm of the New
York Stock Exchange and sub-adviser to the Fund, became indirect
wholly-owned subsidiaries of Lehman Brothers Holdings Inc. ("Lehman"), a
publicly-owned holding company. Neuberger is retained by Management to
furnish it with investment recommendations and research information without
added cost to the Fund. Several individuals who are officers and/or
Trustees of the Trust are also employees of Neuberger and/or Management.
On July 1, 2003, the Fund entered into a commission recapture program,
which enables it to pay some of its operational expenses by recouping a
portion of the commissions it pays to a broker that is not a related party
of the Fund. Expenses paid through this program may include costs of
custodial, transfer agency or accounting services. For the year ended
December 31, 2004, the impact of this arrangement was a reduction of
expenses of $81,783.
The Fund has an expense offset arrangement in connection with its custodian
contract. For the year ended December 31, 2004, the impact of this
arrangement was a reduction of expenses of $116.
Note C--Securities Transactions:
During the year ended December 31, 2004, there were purchase and sale
transactions (excluding short-term securities) of $432,538,173 and
$443,522,219, respectively.
During the year ended December 31, 2004, brokerage commissions on
securities transactions amounted to $1,229,417, of which Neuberger received
$8, Lehman received $226,575, and other brokers received $1,002,834.
15
Notes to Financial Statements Mid-Cap Growth Portfolio cont'd
- -------------------------------------------------------------
Note D--Fund Share Transactions:
Share activity for the years ended December 31, 2004 and December 31, 2003
was as follows:
For the Year Ended December 31,
2004 2003
Shares Shares Shares Shares
Sold Redeemed Total Sold Redeemed Total
Class I 5,076,695 (4,607,909) 468,786 14,482,662 (14,738,778) (256,116)
Class S 672,353 (237,618) 434,735 1,144,089 (733,422) 410,667
Note E--Line of Credit:
At December 31, 2004, the Fund was a participant in a single committed,
unsecured $150,000,000 line of credit with State Street, to be used only
for temporary or emergency purposes. Interest is charged on borrowings
under this agreement at the overnight Federal Funds Rate plus 0.50% per
annum. A facility fee of 0.10% per annum of the available line of credit is
charged, of which the Fund has agreed to pay its pro rata share, based on
the ratio of its individual net assets to the net assets of all
participants at the time the fee is due and payable. The fee is paid
quarterly in arrears. No compensating balance is required. Other investment
companies managed by Management also participate in this line of credit on
the same terms. Because several investment companies participate, there is
no assurance that the Fund will have access to all or any part of the
$150,000,000 at any particular time. The Fund had no loans outstanding
pursuant to this line of credit at December 31, 2004, nor had the Fund
utilized this line of credit at any time prior to that date.
Note F--Investments in Affiliates*:
Income from
Investments
Balance of Gross Balance of in Affiliated
Shares Held Purchases Gross Sales Shares Held Value Issuers
December 31, and and December 31, December 31, Included in
Name of Issuer 2003 Additions Reductions 2004 2004 Total Income
N&B Securities Lending
Quality Fund, LLC** 107,849,000 30,203,578,600 30,185,531,200 125,896,400 $125,896,400 $325,925
Neuberger Berman
Institutional Cash Fund
Trust Class*** 5,377,389 211,135,293 216,512,682 - - 188,700
Neuberger Berman Prime
Money Fund Trust Class*** - 31,329,556 440,260 30,889,296 30,889,296 8,018
------------ --------
Total $156,785,696 $522,643
------------ --------
* Affiliated issuers, as defined in the 1940 Act, include issuers in which
the Fund held 5% or more of the outstanding voting securities.
** The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans.
16
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
The Fund's shares in the Quality Fund are non-voting. However, because all
shares of the Quality Fund are held by funds in the related investment
management complex, the Quality Fund may be considered an affiliate of the
Fund.
*** Neuberger Berman Institutional Cash Fund (the "Cash Fund") and Neuberger
Berman Prime Money Fund ("Prime Money") are also managed by Neuberger
Berman Management Inc. and may be considered affiliates since they have the
same officers, Board members, and investment manager as the Fund and
because, at times, the Fund may own 5% or more of the outstanding voting
securities of the Cash Fund or Prime Money, respectively.
17
Financial Highlights Mid-Cap Growth Portfolio
The following tables include selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.++
Year Ended December 31,
-------------------------------------------------------------------
Class I+
2004 2003 2002 2001 2000
Net Asset Value, Beginning of Year $ 15.33 $ 11.97 $ 16.94 $ 22.48 $ 24.30
------- ------- ------- ------- -------
Income From Investment Operations:
Net Investment Income (Loss) (.07) (.07) (.08) (.07) (.09)
Net Gains or Losses on Securities (both realized and unrealized) 2.57 3.43 (4.89) (5.47) (1.72)
------- ------- ------- ------- -------
Total From Investment Operations 2.50 3.36 (4.97) (5.54) (.81)
------- ------- ------- ------- -------
Less Distributions From:
Net Capital Gains - - - - (.01)
------- ------- ------- ------- -------
Net Asset Value, End of Year $ 17.83 $ 15.33 $ 11.97 $ 16.94 $ 22.48
------- ------- ------- ------- -------
Total Return++ +16.31% +28.07% -29.34% -24.64% -7.46%
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $543.3 $459.7 $362.2 $ 530.7 $624.1
Ratio of Gross Expenses to Average Net Assets# .92% .89% .95% .91% .98%
Ratio of Net Expenses to Average Net Assets .90% .88%[sec] .95% .91% .98%[sec]
Ratio of Net Investment Income (Loss) to Average Net Assets (.45)% (.52)% (.57)% (.38)% (.34)%
Portfolio Turnover Rate 92% 161% 124% 99% 109%
Period from
Year Ended February 18, 2003^
December 31, to December 31,
----------------- -------------------
Class S 2004 2003
Net Asset Value, Beginning of Period $ 15.28 $ 11.15
------- -------
Income From Investment Operations:
Net Investment Income (Loss) (.11) (.09)
Net Gains or Losses on Securities (both realized and unrealized) 2.56 4.22
------- ---------
Total From Investment Operations 2.45 4.13
------- ---------
Net Asset Value, End of Period $ 17.73 $ 15.28
------- ---------
Total Return++ +16.03% +37.04%* *
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 15.0 $ 6.3
Ratio of Gross Expenses to Average Net Assets# 1.17% 1.13%*
Ratio of Net Expenses to Average Net Assets[sec] 1.15% 1.11%*
Ratio of Net Investment Income (Loss) to Average Net Assets (.70)% (.71)%*
Portfolio Turnover Rate 92% 161%
See Notes to Financial Highlights 18
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Financial Highlights Mid-Cap Growth Portfolio
- ------------------------------------------------------
+ The per share amounts and ratios which are shown reflect income and
expenses, including the Fund's Class I proportionate share of AMT Mid-Cap
Growth Investment's income and expenses through April 30, 2000 under the
prior master/feeder fund structure.
++ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each
fiscal period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee future
results. Current returns may be lower or higher than the performance data
quoted. Investment returns and principal may fluctuate and shares when
redeemed may be worth more or less than original cost. Total return would
have been lower/higher if Management had not reimbursed, waived and/or
recouped certain expenses. The total return information shown does not
reflect charges and other expenses that apply to the separate account or
the related insurance policies, and the inclusion of these charges and
other expenses would reduce the total return for all fiscal periods shown.
Performance data current to the most recent month-end are available at
www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
[sec] After reimbursement of expenses by the administrator. Had the
administrator not undertaken such action, the annualized ratio of net
expenses to average daily net assets would have been:
Year Ended
December 31,
1999
Mid-Cap Growth Portfolio Class I 1.08%
After reimbursement of expenses previously paid by the administrator. Had
the administrator not been reimbursed, the annualized ratio of net expenses
to average daily net assets would have been:
Year Ended
December 31,
2000
Mid-Cap Growth Portfolio Class I 0.95%
After waiver of a portion of the investment management fee. Had the
investment manager not undertaken such action, the annualized ratios of net
expenses to average daily net assets would have been:
Year Ended December 31,
2004 2003
Mid-Cap Growth Portfolio Class I 0.90% 0.89%
Mid-Cap Growth Portfolio Class S 1.16% 1.11%
^ The date investment operations commenced.
++ The per share amounts which are shown have been computed based on the
average number of shares outstanding during each fiscal period.
* Annualized.
** Not annualized.
19
Report of Independent Registered Public Accounting Firm
- -------------------------------------------------------
To the Board of Trustees of
Neuberger Berman Advisers Management Trust and
Shareholders of Mid-Cap Growth Portfolio
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Mid-Cap Growth Portfolio, one of the series
constituting the Neuberger Berman Advisers Management Trust (the "Trust"), as
of December 31, 2004, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights. Our procedures included confirmation of securities owned as of
December 31, 2004, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Mid-Cap Growth Portfolio of Neuberger Berman Advisers Management Trust at
December 31, 2004, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and its financial highlights for each of the periods indicated therein, in
conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 4, 2005
20
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Trustees and Officers (Unaudited)
- ----------------------------------
The following tables set forth information concerning the trustees and officers
of the Trust. All persons named as trustees and officers also serve in similar
capacities for other funds administered or managed by NB Management and
Neuberger Berman. The Statement of Additional Information includes additional
information about fund trustees and is available upon request, without charge,
by calling (800) 877-9700.
Information about the Board of Trustees
- -----------------------------------------------------------------------------------
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- -----------------------------------------------------------------------------------
John Cannon (74) Trustee since Consultant. Formerly,
2000 Chairman, CDC Investment
Advisers (registered investment
adviser) 1993 to January 1999;
formerly, President and Chief
Executive Officer, AMA
Investment Advisors, an affiliate
of the American Medical
Association.
- -----------------------------------------------------------------------------------
Faith Colish (69) Trustee since Counsel, Carter Ledyard &
1984 Millburn LLP (law firm) since
October 2002; formerly,
Attorney-at-Law and President,
Faith Colish, A Professional
Corporation, 1980 to 2002.
- -----------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) Trustee since Consultant; Retired President
1989 and Trustee, Teachers Insurance
& Annuity (TIAA) and College
Retirement Equities Fund
(CREF).
- -----------------------------------------------------------------------------------
C. Anne Harvey (67) Trustee since Consultant, C. A. Harvey
1998 Associates, since June 2001;
formerly, Director, AARP, 1978
to December 2001.
- -----------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- -----------------------------------------------------------------------------------
John Cannon (74) 41 Independent Trustee or Director of
three series of Oppenheimer Funds:
Limited Term New York Municipal
Fund, Rochester Fund Municipals,
and Oppenheimer Convertible
Securities Fund, since 1992.
- -----------------------------------------------------------------------------------
Faith Colish (69) 41 Director, American Bar Retirement
Association (ABRA) since 1997
(not-for-profit membership
association).
- -----------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) 41 None.
- -----------------------------------------------------------------------------------
C. Anne Harvey (67) 41 President, Board of Associates to
The National Rehabilitation
Hospital's Board of Directors since
2002; formerly, Member, Individual
Investors Advisory Committee to the
New York Stock Exchange Board
of Directors, 1998 to June 2002;
formerly, Member, American
Savings Education Council's Policy
Board (ASEC), 1998 to 2000;
formerly, Member, Executive
Committee, Crime Prevention
Coalition of America, 1997 to 2000.
- -----------------------------------------------------------------------------------
21
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
- --------------------------------------------------------------------------------
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Barry Hirsch (71) Trustee since Attorney-at-Law. Formerly,
2000 Senior Counsel, Loews
Corporation (diversified
financial corporation) May 2002
until April 2003; formerly,
Senior Vice President, Secretary
and General Counsel,
Loews Corporation.
- --------------------------------------------------------------------------------
Robert A. Kavesh (77) Trustee since Marcus Nadler Professor
2000 Emeritus of Finance and
Economics, New York
University Stern School
of Business.
- --------------------------------------------------------------------------------
Howard A. Mileaf (67) Trustee since Retired. Formerly, Vice
1999 President and Special Counsel,
WHX Corporation (holding
company) 1993 to 2001.
- --------------------------------------------------------------------------------
William E. Rulon (72) Trustee since Retired. Formerly, Senior Vice
2000 President, Foodmaker, Inc.
(operator and franchiser of
restaurants) until January 1997.
- --------------------------------------------------------------------------------
Cornelius T. Ryan (73) Trustee since Founding General Partner,
2000 Oxford Partners and Oxford
Bioscience Partners (venture
capital partnerships) and
President, Oxford Venture
Corporation.
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- -----------------------------------------------------------------------------------
Barry Hirsch (71) 41 None.
- -----------------------------------------------------------------------------------
Robert A. Kavesh (77) 41 Director, DEL Laboratories, Inc.
(cosmetics and pharmaceuticals)
since 1978; Director, The Caring
Community (not-for-profit).
- -----------------------------------------------------------------------------------
Howard A. Mileaf (67) 41 Director, WHX Corporation
(holding company) since August
2002; Director, Webfinancial
Corporation (holding company)
since December 2002; Director, State
Theatre of New Jersey (not-for-
profit theater) since 2000; formerly,
Director, Kevlin Corporation
(manufacturer of microwave and
other products).
- -----------------------------------------------------------------------------------
William E. Rulon (72) 41 Director, Pro-Kids Golf and
Learning Academy (teach golf and
computer usage to "at risk" children)
since 1998; formerly, Director,
Prandium, Inc. (restaurants) from
March 2001 until July 2002.
- -----------------------------------------------------------------------------------
Cornelius T. Ryan (73) 41 Director, Capital Cash Management
Trust (money market fund),
Naragansett Insured Tax-Free
Income Fund, Rocky Mountain
Equity Fund, Prime Cash Fund,
several private companies and
QuadraMed Corporation
(NASDAQ).
- -----------------------------------------------------------------------------------
22
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- --------------------------------------------------------------------------------
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Tom D. Seip (54) Trustee since General Partner, Seip
2000 Investments LP (a private
investment partnership);
formerly, President and CEO,
Westaff, Inc. (temporary
staffing), May 2001 to January
2002; Senior Executive at the
Charles Schwab Corporation
from 1983 to 1999, including
Chief Executive Officer,
Charles Schwab Investment
Management, Inc. and Trustee,
Schwab Family of Funds and
Schwab Investments from
1997 to 1998 and Executive
Vice President-Retail
Brokerage, Charles Schwab
Investment Management from
1994 to 1997.
- --------------------------------------------------------------------------------
Candace L. Straight (57) Trustee since Private investor and consultant
1999 specializing in the insurance
industry; formerly, Advisory
Director, Securitas Capital
LLC (a global private equity
investment firm dedicated to
making investments in the
insurance sector) 1998 to
December 2002.
- --------------------------------------------------------------------------------
Peter P. Trapp (60) Trustee since Regional Manager for Atlanta
1984 Region, Ford Motor Credit
Company since August 1997;
formerly, President, Ford Life
Insurance Company, April 1995
to August 1997.
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- -----------------------------------------------------------------------------------
Tom D. Seip (54) 41 Director, H&R Block, Inc. (financial
services company) since May 2001;
Director, Forward Management, Inc.
(asset management) since 2001;
formerly, Director, General Magic
(voice recognition software) 2001
until 2002; formerly, Director,
E-Finance Corporation (credit
decisioning services) 1999 to 2003;
formerly, Director, Save-Daily.com
(micro investing services) 1999 to
2003; Director, Offroad Capital Inc.
(pre-public internet commerce
company).
- -----------------------------------------------------------------------------------
Candace L. Straight (57) 41 Director, The Proformance Insurance
Company (personal lines property
and casualty insurance company)
since March 2004; Director,
Providence Washington (property
and casualty insurance company)
since December 1998; Director,
Summit Global Partners (insurance
brokerage firm) since October 2000.
- -----------------------------------------------------------------------------------
Peter P. Trapp (60) 41 None.
- -----------------------------------------------------------------------------------
23
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
- --------------------------------------------------------------------------------
Trustees who are Position and
"Interested Persons" Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Edward I. O'Brien* (76) Trustee since Formerly, Member, Investment
2000 Policy Committee, Edward
Jones 1993 to 2001; President,
Securities Industry Association
("SIA") (securities industry's
representative in government
relations and regulatory
matters at the federal and state
levels) 1974 to 1992; Adviser to
SIA, November 1992 to
November 1993.
- --------------------------------------------------------------------------------
Jack L. Rivkin* (64) President and Executive Vice President and
Trustee since Chief Investment Officer,
December Neuberger Berman Inc.
2002 (holding company) since 2002
and 2003, respectively;
Executive Vice President and
Chief Investment Officer,
Neuberger Berman since
December 2002 and 2003,
respectively; Director and
Chairman, NB Management
since December 2002; formerly,
Executive Vice President,
Citigroup Investments, Inc.
from September 1995 to
February 2002; formerly,
Executive Vice President,
Citigroup Inc. from September
1995 to February 2002.
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Fund Complex
"Interested Persons" Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- -----------------------------------------------------------------------------------
Edward I. O'Brien* (76) 41 Director, Legg Mason, Inc. (financial
services holding company) since
1993; formerly, Director, Boston
Financial Group (real estate and tax
shelters) 1993 to 1999.
- -----------------------------------------------------------------------------------
Jack L. Rivkin* (64) 41 Director, Dale Carnegie and
Associates, Inc. (private company)
since 1998; Director, Emagin Corp.
(public company) since 1997;
Director, Solbright, Inc. (private
company) since 1998; Director,
Infogate, Inc. (private company)
since 1997; Director, Broadway
Television Network (private
company) since 2000.
- -----------------------------------------------------------------------------------
24
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- --------------------------------------------------------------------------------
Trustees who are Position and
"Interested Persons" Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Peter E. Sundman* (45) Chairman of Executive Vice President,
the Board, Neuberger Berman Inc.
Chief (holding company) since 1999;
Executive Head of Neuberger Berman
Officer and Inc.'s Mutual Funds and
Trustee Institutional Business since
since 2000 1999; President and Director,
President NB Management since 1999;
and Chief Executive Vice President,
Executive Neuberger Berman since 1999;
Officer from formerly, Principal, Neuberger
1999 to 2000 Berman from 1997 until 1999;
formerly, Senior Vice President,
NB Management from 1996
until 1999.
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Fund Complex
"Interested Persons" Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- -----------------------------------------------------------------------------------
Peter E. Sundman* (45) 41 Director and Vice President,
Neuberger & Berman Agency, Inc.
since 2000; formerly, Director,
Neuberger Berman Inc. (holding
company) from October 1999
through March 2003; Trustee,
Frost Valley YMCA.
- -----------------------------------------------------------------------------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the Trust's Trust Instrument, each Trustee shall hold office
for life or until his or her successor is elected or the Trust terminates;
except that (a) any Trustee may resign by delivering a written resignation;
(b) any Trustee may be removed with or without cause at any time by a
written instrument signed by at least two-thirds of the other Trustees; (c)
any Trustee who requests to be retired, or who has become unable to serve,
may be retired by a written instrument signed by a majority of the other
Trustees; and (d) any Trustee may be removed at any shareholder meeting by
a vote of at least two-thirds of the outstanding shares.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
(4) Retired (effective the close of business December 31, 2004).
* Indicates a trustee who is an "interested person" within the meaning of the
1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of the Trust by
virtue of the fact that they are officers and/or directors of NB Management
and Executive Vice Presidents of Neuberger Berman. Mr. O'Brien is an
interested person of the Trust by virtue of the fact that he is a director
of Legg Mason, Inc., a wholly owned subsidiary of which, from time to time,
serves as a broker or dealer to the Funds and other funds for which NB
Management serves as investment manager.
25
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Information about the Officers of the Trust
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- ---------------------------------------------------------------------------------------------------------------------------
Claudia A. Brandon (48) Secretary since 1985 Vice President-Mutual Fund Board Relations,
NB Management since 2000; Vice President, Neuberger
Berman since 2002 and employee since 1999; formerly,
Vice President, NB Management from 1986 to 1999;
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (four since 2002, three since 2003, and four
since 2004).
Philip R. Carroll (70) Chief Compliance Officer Vice President, Neuberger Berman since 2002; Associate
since 2004 General Counsel, Neuberger Berman since 2001; Director-
Mutual Fund Compliance, NB Management since 1995;
Chief Legal Officer, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (ten since 2003 and four since
2004); Chief Compliance Officer, fourteen registered
investment companies for which NB Management acts
as investment manager and administrator (fourteen since
2004) and Lehman Brothers/First Trust Income
Opportunity Fund.
Robert Conti (48) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003,
formerly, Vice President, Neuberger Berman from 1999
until 2003; Senior Vice President, NB Management since
2000; formerly, Controller, NB Management until 1996;
formerly, Treasurer, NB Management from 1996 until
1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Brian J. Gaffney (51) Vice President since 2000 Managing Director, Neuberger Berman since 1999;
Senior Vice President, NB Management since 2000;
formerly, Vice President, NB Management from 1997
until 1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Sheila R. James (39) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1991 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
26
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- -------------------------------------------------------------------------------------------------------------------------------
Kevin Lyons (49) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1993 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (ten since 2003 and four since 2004).
John M. McGovern (34) Assistant Treasurer since 2002 Vice President, Neuberger Berman since January 2004;
Employee, NB Management since 1993; Assistant
Treasurer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
Barbara Muinos (46) Treasurer and Principal Financial Vice President, Neuberger Berman since 1999; formerly,
and Accounting Officer since 2002; Assistant Vice President, NB Management from 1993 to
prior thereto, Assistant Treasurer 1999; Treasurer and Principal Financial and Accounting
since 1996 Officer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004); formerly, Assistant Treasurer, three registered
investment companies for which NB Management acts
as investment manager and administrator from 1996
until 2002.
Frederic B. Soule (58) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003;
formerly, Vice President, Neuberger Berman from 1999
until 2003; formerly, Vice President, NB Management
from 1995 until 1999; Vice President, fourteen registered
investment companies for which NB Management acts as
investment manager and administrator (three since 2000,
four since 2002, three since 2003, and four since 2004).
- -------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the By-Laws of the Trust, each officer elected by the Trustees
shall hold office until his or her successor shall have been elected and
qualified or until his or her earlier death, inability to serve, or
resignation. Officers serve at the pleasure of the Trustees and may be
removed at any time with or without cause.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
27
Proxy Voting Policies and Procedures
- -------------------------------------
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available, without
charge, by calling 1-800-877-9700 (toll-free) and on the website of the
Securities and Exchange Commission, at www.sec.gov. Information regarding how
the Trust voted proxies relating to portfolio securities during the most recent
12-month period ended June 30 will also be available without charge, by calling
1-800-877-9700 (toll-free), on the website of the Securities and Exchange
Commission, at www.sec.gov, and on the Trust's website at www.nb.com.
Quarterly Portfolio Schedule
- ----------------------------
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange
Commission's website at www.sec.gov and may be reviewed and copied at the
Securities and Exchange Commission's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The information on Form N-Q is available upon request,
without charge, by calling 1-800-877-9700 (toll-free).
28
Annual Report
December 31, 2004 [Neuberger Berman LOGO]
Neuberger Berman
Advisers
Management
Trust
Partners
Portfolio[RegTM]
B1010 02/05
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Partners Portfolio Manager's Commentary
Mixed economic signals, record high energy prices, and uncertainty caused by a
close Presidential election restrained stocks for much of 2004. Then, the
clouds over the market began to dissipate. Favorable economic data indicated
that the economy had emerged from its summer doldrums, oil prices declined, and
a decisive Republican victory signaled an extension of current fiscal policies.
Stocks took off and closed 2004 with respectable gains. We are pleased to
report that the Neuberger Berman AMT Partners Portfolio outpaced the Russell
1000 Value Index and significantly outperformed the S&P 500 for the year.(2)
During the reporting period, Energy, Health Care, and Consumer Discretionary
investments provided the largest contribution to our returns. We were modestly
underweight in Energy relative to the Russell index, but due to the exceptional
performance of stocks such as oil shipper Teekay Shipping and natural gas
producer EOG Resources, we generated outsized returns. In the Health Care
arena, our bias favoring health maintenance organizations such as Wellpoint and
pharmaceuticals benefits managers like Caremark RX produced excellent returns.
Homebuilders NVR and Centex, motorcycle manufacturer Harley Davidson, and
retailer Abercrombie & Fitch drove strong results in the Consumer Discretionary
sector.
With positive returns in all ten sectors we own, and better-than-benchmark
results in seven of those ten (versus the Russell index), little went wrong in
2004. We were substantially underweight in the buoyant Consumer Staples and
Utilities sectors. Consumer Staples appeared pricey and we thought we would be
better off investing in Health Care, another less economically sensitive sector
that offered better value. With excellent returns from our Health Care
investments, the decision turned out not to hurt our performance. In hindsight,
we wish we had more exposure to Utilities, the second best performing sector in
both our benchmarks. We clearly underestimated investors' appreciation for
higher yielding stocks, the primary reason behind Utilities' strong
performance.
Currently, we are not contemplating any major shifts in sector allocation. We
believe that many of the stocks that performed well this year will continue to
shine in 2005. For example, we believe that global demand for oil will remain
strong and that the Middle East will be the primary source of incremental
supply to be shipped to the U.S. and China. This is very good news for Teekay
Shipping, which is paid on the basis of tons per mile shipped.
Another example is Caremark RX, a leading Pharmacy Benefits Manager (PBM). PBMs
contract with corporations and HMOs to manage pharmaceutical costs. This is a
growth business, given general concerns over the escalating price of health
care, and should get even better as $40 billion in drugs come off patent by
year-end 2007. Since PBMs typically receive a portion of the savings they
achieve for customers, the potentially higher market share of cheaper generics
should leverage earnings.
Finally, in spite of their exceptional performance, homebuilder stocks continue
to be priced as if the housing industry is about to collapse. For example,
Centex is trading at approximately 7 times 2005 earnings forecasts and Lennar
Corp is trading at 8 times next year's profit estimates, compared to the S&P
500's multiple of 16 as of fiscal year end. This is too big a discount for high
quality companies in what should continue to be a very profitable business.
Looking ahead to 2005, we believe that barring a major terrorist event and/or a
big spike in oil prices, the economy will settle into sustainable moderate
1
Partners Portfolio Manager's Commentary cont'd
growth with modest inflation. This should translate into profit growth that
equals or exceeds current consensus estimates. Of course, we maintain our
belief that disciplined investors buying high quality companies trading at
below market multiples can outperform the broad-based stock market indices over
the long term.
Sincerely,
/s/ S. BASU MULLICK
S. BASU MULLICK
PORTFOLIO MANAGER
Average Annual Total Return(1)
Partners Portfolio Russell 1000(R) Value(2) S&P 500(2)
1 Year 18.98% 16.49% 10.87%
5 Year 3.59% 5.27% (2.30)%
10 Year 11.97% 13.83% 12.07%
Life of Fund 10.81% 12.39% 11.18%
- ------------ ----- ----- -----
Inception Date 03/22/1994
Performance data quoted represent past performance, which is no guarantee of
future results. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed may be worth more or less
than their original cost. Results are shown on a "total return" basis and
include reinvestment of all dividends and capital gain distributions.
Current performance may be lower or higher than the performance data quoted. For
performance data current to the most recent month end, please visit
www.nb.com/performance.
- ---------------------------------------------------------------------------
Comparison of a $10,000 Investment
- ---------------------------------------------------------------------------
Partners Russell 1000 (R) S&P 500
- ---------------------------------------------------------------------------
Portfolio Value
- ---------------------------------------------------------------------------
12/31/1994 $ 10,000 $ 10,000 $ 10,000
- ---------------------------------------------------------------------------
12/31/1995 $ 13,647 $ 13,836 $ 13,753
- ---------------------------------------------------------------------------
12/31/1996 $ 17,683 $ 16,830 $ 16,909
- ---------------------------------------------------------------------------
12/31/1997 $ 23,208 $ 22,751 $ 22,548
- ---------------------------------------------------------------------------
12/31/1998 $ 24,185 $ 26,307 $ 28,992
- ---------------------------------------------------------------------------
12/31/1999 $ 25,967 $ 28,240 $ 35,091
- ---------------------------------------------------------------------------
12/31/2000 $ 26,150 $ 30,221 $ 31,897
- ---------------------------------------------------------------------------
12/31/2001 $ 25,410 $ 28,532 $ 28,109
- ---------------------------------------------------------------------------
12/31/2002 $ 19,276 $ 24,102 $ 21,899
- ---------------------------------------------------------------------------
12/31/2003 $ 26,039 $ 31,341 $ 28,177
- ---------------------------------------------------------------------------
12/31/2004 $ 30,980 $ 36,510 $ 31,241
- ---------------------------------------------------------------------------
The chart shows the value of a hypothetical $10,000 investment in the Fund over
the past 10 fiscal years, or since the Fund's inception, if it has not operated
for 10 years. The result is compared with benchmarks, which may include a
broad-based market index and/or a narrower index. Please note that market
indexes do not include expenses. All results include the reinvestment of
dividends and capital gain distributions. Results represent past performance and
do not indicate future results. The chart and table do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
Industry Diversification
(% of Industry Holdings)
Advertising ................................. 1.1%
Banking & Financial ......................... 4.9
Broadcasting ................................ 1.2
Building, Construction & Furnishing ......... 10.1
Communications .............................. 0.9
Communication Services ...................... 1.3
Consumer Cyclicals .......................... 2.0
Consumer Goods & Services ................... 1.8
Consumer Staples ............................ 1.2
Defense & Aerospace ......................... 0.5
Diversified ................................. 1.3
Electrical & Electronics .................... 1.9
Electronics ................................. 0.5
Energy ...................................... 7.4
Financial Services .......................... 17.8
Forest Products & Paper ..................... 0.4
Health Care ................................. 10.6
Insurance ................................... 3.9
Metals ...................................... 3.1
Oil & Gas ................................... 5.8
Pharmaceutical .............................. 3.1
Retail ...................................... 0.7
Semiconductors .............................. 1.7
Software .................................... 5.4
Technology .................................. 2.6
Telecommunications .......................... 1.0
Transportation .............................. 6.6
Short-Term Investments ...................... 17.8
Liabilities, less cash, receivables and
other assets ............................ (16.6)
Please see Endnotes for Additional information 2
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Endnotes
1. 18.98%, 3.59% and 11.97% were the average annual total returns
for the 1-, 5- and 10-year periods ended December 31, 2004.
Neuberger Berman Management Inc. ("NBMI") has agreed to absorb
certain expenses of the AMT Portfolios. Without this
arrangement, which is subject to change, the total returns of
the Portfolios would be less. Total return includes
reinvestment of dividends and capital gain distributions.
Performance data quoted represent past performance and the
investment return and principal value of an investment will
fluctuate so that the shares, when redeemed, may be worth more
or less than original cost. The performance information does
not reflect fees and expenses of the insurance companies.
2. The S&P 500 Index is widely regarded as the standard for
measuring large-cap U.S. stock market performance and includes
a representative sample of the leading companies in leading
industries. The Russell 1000[RegTM] Index measures the
performance of the 1,000 largest companies in the Russell
3000[RegTM] Index (which measures the performance of the 3,000
largest U.S. companies based on total market capitalization).
The Russell 1000 Index represents approximately 92% of the
total market capitalization of the Russell 3000 Index. The
Russell 1000 Value Index measures the performance of those
Russell 1000 companies with lower price-to-book ratios and
lower forecasted growth values. Please note that indices do not
take into account any fees and expenses of investing in the
individual securities that they track, and that individuals
cannot invest directly in any index. Data about the performance
of these indices are prepared or obtained by NBMI and include
reinvestment of all dividends and capital gain distributions.
The Portfolio may invest in many securities not included in the
above-described indices.
The investments for the Portfolio are managed by the same
portfolio manager(s) who manage one or more other mutual funds
that have similar names, investment objectives and investment
styles as the Portfolio. You should be aware that the Portfolio
is likely to differ from the other mutual funds in size, cash
flow pattern and tax matters. Accordingly, the holdings and
performance of the Portfolio can be expected to vary from those
of the other mutual funds.
The composition, industries and holdings of the Portfolio are
subject to change.
Shares of the separate Portfolios of Neuberger Berman Advisers
Management Trust are sold only through currently effective
prospectus and are not available to the general public. Shares
of this Portfolio may be purchased only by life insurance
companies to be used with their separate accounts that fund
variable annuity and variable life insurance policies and by
qualified pension and retirement plans.
(C) 2005 Neuberger Berman Management Inc., distributor. All
rights reserved.
3
Information About Your Fund's Expenses
This table is designed to provide information regarding costs related to your
investments. All mutual funds incur operating expenses, which include
management fees, administrative services and shareholder reports among others.
The following example is based on an investment of $1,000 made at the beginning
of the period shown and held for the entire period. The table illustrates the
fund's costs in two ways:
Actual Expenses: The first section of the
table provides
information about actual
account values and
actual expenses in
dollars. You may use the
information in this
line, together with the
amount you invested, to
estimate the expenses
you paid over the
period.
Hypothetical Example for Comparison Purposes: The second section of
the table provides
information about
hypothetical account
values and hypothetical
expenses based on the
Fund's actual expense
ratio and an assumed
rate of return at 5% per
year before expenses.
This return is not the
Fund's actual return.
The hypothetical account
values and expenses may
not be used to estimate
the actual ending
account balance or
expenses you paid for
the period. You may use
this information to
compare the ongoing
costs of investing in
this Fund versus other
funds. To do so, compare
this 5% hypothetical
example with the 5%
hypothetical examples
that appear in the
shareholder reports of
other funds.
Expense Information As of 12/31/04 (Unaudited)
Neuberger Berman Advisers Management Trust Partners Portfolio
Beginning Ending Expenses Paid
Actual Account Value Account Value During the Period*
Class I $1,000 $ 1,128.90 $ 4.92
Hypothetical (5% annual return before expenses)**
Class I $1,000 $ 1,020.51 $ 4.67
* Expenses are equal to the expense ratio for the class, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect
the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying
the number of days in the most recent half year divided by 366.
4
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Partners Portfolio
Number of Shares Market Value+
Common Stocks (98.8%)
Advertising (1.1%)
75,700 Omnicom Group $ 6,383,024
Banking & Financial (4.9%)
117,900 Fannie Mae 8,395,659
223,400 Merrill Lynch 13,352,618
146,600 State Street 7,200,992
--------------------
28,949,269
Broadcasting (1.2%)
215,500 EchoStar Communications 7,163,220*
Building, Construction & Furnishing (10.1%)
257,900 Centex Corp. 15,365,682L
223,700 Home Depot 9,560,938
251,000 Lennar Corp. 14,226,680L
9,600 NVR, Inc. 7,386,240*L
200,900 Pulte Homes 12,817,420L
--------------------
59,356,960
Communications (0.9%)
222,200 Cablevision Systems 5,532,780*
Communication Services (1.3%)
222,800 Scientific-Atlanta 7,354,628
Consumer Cyclicals (2.0%)
73,500 Best Buy 4,367,370L
197,700 Masco Corp. 7,221,981
--------------------
11,589,351
Consumer Goods & Services (1.8%)
260,200 Cendant Corp. 6,083,476
84,900 Colgate-Palmolive 4,343,484
--------------------
10,426,960
Consumer Staples (1.2%)
197,200 Viacom Inc. Class B 7,176,108
Defense & Aerospace (0.5%)
90,100 Embraer-Empresa
Brasileira
de Aeronautica 3,012,944
Diversified (1.3%)
1,405,300 ABB Ltd. 7,820,907*
Electrical & Electronics (1.9%)
310,100 Tyco International 11,082,974L
Electronics (0.5%)
195,440 AU Optronics 2,798,701L
Energy (7.4%)
105,100 Anadarko Petroleum 6,811,531
194,300 Canadian Natural
Resources 8,310,211
143,600 Cooper Cameron 7,727,116*
106,300 Peabody Energy 8,600,733
258,100 Talisman Energy 6,958,376L
84,400 TXU Corp. 5,448,864
--------------------
43,856,831
Number of Shares Market Value+
Financial Services (17.8%)
125,100 American Express $ 7,051,887L
4,800 Berkshire Hathaway
Class B 14,092,800*
362,400 Citigroup Inc. 17,460,432
338,998 Countrywide Financial 12,546,316L
355,700 General Electric 12,983,050
88,400 Goldman Sachs 9,197,136
155,300 Hartford Financial Services
Group 10,763,843
162,500 MBNA Corp. 4,580,875L
222,600 PMI Group 9,293,550L
90,296 XL Capital 7,011,485
--------------------
104,981,374
Forest Products & Paper (0.4%)
33,600 Weyerhaeuser Co. 2,258,592
Health Care (10.6%)
231,800 Boston Scientific 8,240,490*
177,600 Caremark Rx 7,002,768*
80,300 Forest Laboratories 3,602,258*
258,800 Health Management
Associates 5,879,936L
233,900 NBTY, Inc. 5,615,939*
140,300 PacifiCare Health Systems 7,929,756*
328,500 Teva Pharmaceutical
Industries ADR 9,809,010
67,700 WellPoint Inc. 7,785,500*
157,500 Wyeth 6,707,925
--------------------
62,573,582
Insurance (3.9%)
70,200 Aetna Inc. 8,757,450L
218,100 American International
Group 14,322,627
--------------------
23,080,077
Metals (3.1%)
94,900 Freeport-McMoRan
Copper & Gold 3,628,027L
109,800 Nucor Corp. 5,746,932L
89,400 Phelps Dodge 8,843,448L
--------------------
18,218,407
Oil & Gas (5.8%)
120,400 EOG Resources 8,591,744
153,700 FMC Technologies 4,949,140*L
181,400 National-Oilwell 6,401,606*
179,100 Pioneer Natural Resources 6,286,410
226,700 XTO Energy 8,020,646
--------------------
34,249,546
Pharmaceutical (3.1%)
84,000 Express Scripts 6,420,960*L
87,500 Par Pharmaceutical 3,620,750*
263,400 Shire Pharmaceuticals
Group ADR 8,415,630
--------------------
18,457,340
See Notes to Schedule of Investments 5
Schedule of Investments Partners Portfolio cont'd
Number of Shares Market Value+
Retail (0.7%)
103,200 J.C. Penney $ 4,272,480
Semiconductors (1.7%)
282,300 Applied Materials 4,827,330*L
605,319 Taiwan Semiconductor
Manufacturing ADR 5,139,158
-------------------
9,966,488
Software (5.4%)
229,000 Check Point Software
Technologies 5,640,270*
428,200 Microsoft Corp. 11,437,222
532,800 Oracle Corp. 7,310,016*
269,300 VERITAS Software 7,688,515*L
-------------------
32,076,023
Technology (2.6%)
40,000 Computer Sciences 2,254,800*
242,800 IAC/InterActiveCorp 6,706,136*L
24,200 IBM 2,385,636
164,300 Texas Instruments 4,045,066
-------------------
15,391,638
Telecommunications (1.0%)
104,900 Nextel Communications 3,147,000*
685,600 Nortel Networks 2,392,744*
-------------------
5,539,744
Number of Shares Market Value+
Transportation (6.6%)
293,700 Frontline Ltd. $ 13,012,453
150,000 General Maritime 5,992,500*
809,100 Golden Ocean Group 505,455*
86,400 Overseas Shipholding
Group 4,769,280
77,243 Ship Finance International 1,585,026L
313,500 Teekay Shipping 13,201,485
-------------------
39,066,199
Total Common Stocks
(Cost $453,483,409)
582,636,147
-------------------
Principal Amount
Short-Term Investments (17.8%)
$99,015,450 N&B Securities Lending
Quality Fund, LLC 99,015,450++
5,866,332 Neuberger Berman Prime
Money Fund Trust Class 5,866,332@
-------------------
Total Short-Term Investments
(Cost $104,881,782) 104,881,782#
-------------------
Total Investments (116.6%)
(Cost $558,365,191)
687,517,929##
Liabilities, less cash, receivables and
other assets [(16.6%)]
(97,741,061)
-------------------
Total Net Assets (100.0%)
$ 589,776,868
-------------------
See Notes to Schedule of Investments 6
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Schedule of Investments Partners Portfolio
+ Investments in equity securities by Neuberger Berman Advisers Management
Trust Partners Portfolio (the "Fund") are valued at the latest sale price
where that price is readily available; securities for which no sales were
reported, unless otherwise noted, are valued at the mean between the
closing bid and asked prices. Securities traded primarily on the NASDAQ
Stock Market are normally valued by the Fund at the NASDAQ Official Closing
Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most
recently reported price as of 4:00:02 p.m., Eastern time, unless that price
is outside the range of the "inside" bid and asked prices (i.e., the bid
and asked prices that dealers quote to each other when trading for their
own accounts); in that case, NASDAQ will adjust the price to equal the
inside bid or asked price, whichever is closer. Because of delays in
reporting trades, the NOCP may not be based on the price of the last trade
to occur before the market closes. The Fund values all other securities by
a method the Board of Trustees of Neuberger Berman Advisers Management
Trust (the "Board") believes accurately reflects fair value. Numerous
factors may be considered when determining the fair value of a security,
including available analyst, media or other reports, trading in futures or
ADRs and whether the issuer of the security being fair valued has other
securities outstanding. Foreign security prices are furnished by
independent quotation services and expressed in local currency values.
Foreign security prices are translated from the local currency into U.S.
dollars using the exchange rate as of 12:00 noon, Eastern time. The Board
has approved the use of FT Interactive Data Corporation ("FT Interactive")
to assist in determining the fair value of the Fund's foreign equity
securities in the wake of certain significant events. When changes in the
value of a certain index suggest that the closing prices on the foreign
exchanges may no longer represent the amount that the Fund could expect to
receive for those securities, FT Interactive will provide adjusted prices
for certain foreign equity securities based on an analysis showing
historical correlations between the prices of those securities and changes
in the index. In the absence of precise information about the market values
of these foreign securities as of the close of the New York Stock Exchange,
the Board has determined on the basis of available data that prices
adjusted in this way are likely to be closer to the prices the Fund could
realize on a current sale than are the prices of those securities
established at the close of the foreign markets in which the securities
primarily trade. However, fair value prices are necessarily estimates, and
there is no assurance that such a price will be at or close to the price at
which the security next trades. Short-term debt securities with less than
60 days until maturity may be valued at cost which, when combined with
interest earned, approximates market value.
# At cost, which approximates market value.
## At December 31, 2004, the cost of investments for U.S. Federal income tax
purposes was $560,911,172. Gross unrealized appreciation of investments was
$129,574,530 and gross unrealized depreciation of investments was
$2,967,773, resulting in net unrealized appreciation of $126,606,757, based
on cost for U.S. Federal income tax purposes.
* Non-income producing security.
L All or a portion of this security is on loan (see Note A of Notes to
Financial Statements).
@ Neuberger Berman Prime Money Fund ("Prime Money") is also managed by
Neuberger Berman Management Inc. (see Notes A & F of Notes to Financial
Statements) and may be considered an affiliate since it has the same
officers, Board members, and investment manager as the Fund and because, at
times, the Fund may own 5% or more of the outstanding voting securities of
Prime Money.
++ The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans. The Fund's shares in the
Quality Fund are non-voting. However, because all shares of the Quality
Fund are held by funds in the related investment management complex, the
Quality Fund may be considered an affiliate of the Fund (see Notes A & F of
Notes to Financial Statements).
See Notes to Financial Statements 7
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Assets and Liabilities
Partners
Neuberger Berman Advisers Management Trust Portfolio
Assets
Investments in securities, at market value* + (Notes A & F)-see Schedule of Investments:
==========================================================================================
Unaffiliated issuers $582,636,147
- ------------------------------------------------------------------------------------------ ------------
Affiliated issuers 104,881,782
- ------------------------------------------------------------------------------------------ ------------
687,517,929
========================================================================================== ============
Cash 18,281
- ------------------------------------------------------------------------------------------ ------------
Foreign currency 581,534
========================================================================================== ============
Dividends and interest receivable 358,964
- ------------------------------------------------------------------------------------------ ------------
Receivable for securities sold 5,865,651
========================================================================================== ============
Receivable for Fund shares sold 78,082
- ------------------------------------------------------------------------------------------ ------------
Prepaid expenses and other assets 22,746
- ------------------------------------------------------------------------------------------ ------------
Total Assets 694,443,187
- ------------------------------------------------------------------------------------------ ------------
Liabilities
Payable for collateral on securities loaned (Note A) 99,015,450
========================================================================================== ============
Payable for securities purchased 4,118,802
========================================================================================== ============
Payable for Fund shares redeemed 938,816
- ------------------------------------------------------------------------------------------ ------------
Payable to investment manager-net (Notes A & B) 254,072
========================================================================================== ============
Payable to administrator (Note B) 143,543
- ------------------------------------------------------------------------------------------ ------------
Accrued expenses and other payables 195,636
- ------------------------------------------------------------------------------------------ ------------
Total Liabilities 104,666,319
- ------------------------------------------------------------------------------------------ ------------
Net Assets at value $589,776,868
- ------------------------------------------------------------------------------------------ ------------
Net Assets consist of:
Paid-in capital $456,527,995
========================================================================================== ============
Undistributed net investment income (loss) 6,485,081
- ------------------------------------------------------------------------------------------ ------------
Accumulated net realized gains (losses) on investments (2,398,392)
========================================================================================== ============
Net unrealized appreciation (depreciation) in value of investments 129,162,184
- ------------------------------------------------------------------------------------------ ------------
Net Assets at value $589,776,868
- ------------------------------------------------------------------------------------------ ------------
Shares Outstanding ($.001 par value; unlimited shares authorized) 32,185,016
- ------------------------------------------------------------------------------------------ ------------
Net Asset Value, offering and redemption price per share $ 18.32
- ------------------------------------------------------------------------------------------ ------------
+Securities on loan, at market value:
Unaffiliated issuers $ 96,180,739
- ------------------------------------------------------------------------------------------ ------------
*Cost of investments:
Unaffiliated issuers $453,483,409
========================================================================================== ============
Affiliated issuers 104,881,782
- ------------------------------------------------------------------------------------------ ------------
Total cost of investments $558,365,191
- ------------------------------------------------------------------------------------------ ------------
Total cost of foreign currency $ 572,809
- ------------------------------------------------------------------------------------------ ------------
See Notes to Financial Statements 8
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST FOR THE YEAR ENDED DECEMBER 31, 2004
Statement of Operations
Partners
Neuberger Berman Advisers Management Trust Portfolio
Investment Income
Income (Note A):
Dividend income-unaffiliated issuers $ 11,839,027
========================================================================================== ============
Dividend income-affiliated issuers (Note F) 20,736
- ------------------------------------------------------------------------------------------ ------------
Interest income 823
========================================================================================== ============
Income from securities loaned-affiliated issuer (Note F) 138,687
- ------------------------------------------------------------------------------------------ ------------
Income from investments in affiliated issuers (Note F) 126,658
========================================================================================== ============
Foreign taxes withheld (75,789)
- ------------------------------------------------------------------------------------------ ------------
Total income 12,050,142
- ------------------------------------------------------------------------------------------ ------------
Expenses:
Investment management fee (Notes A & B) 3,280,963
========================================================================================== ============
Administration fee (Note B) 1,856,078
- ------------------------------------------------------------------------------------------ ------------
Audit fees 39,659
========================================================================================== ============
Custodian fees (Note B) 285,436
- ------------------------------------------------------------------------------------------ ------------
Insurance expense 18,057
========================================================================================== ============
Legal fees 123,555
- ------------------------------------------------------------------------------------------ ------------
Shareholder reports 1,490
========================================================================================== ============
Trustees' fees and expenses 26,215
- ------------------------------------------------------------------------------------------ ------------
Miscellaneous 12,248
- ------------------------------------------------------------------------------------------ ------------
Total expenses 5,643,701
Investment management fee waived (Note A) (12,736)
Expenses reduced by custodian fee expense offset and commission recapture arrangements (97,186)
- ------------------------------------------------------------------------------------------ ------------
(Note B)
- ------------------------------------------------------------------------------------------
Total net expenses 5,533,779
- ------------------------------------------------------------------------------------------ ------------
Net investment income (loss) 6,516,363
- ------------------------------------------------------------------------------------------ ------------
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated securities 101,062,037
- ------------------------------------------------------------------------------------------ ------------
Sales of investment securities of affiliated securities 2,950,224
========================================================================================== ============
Foreign currency (28,116)
- ------------------------------------------------------------------------------------------ ------------
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities (8,435,221)
- ------------------------------------------------------------------------------------------ ------------
Foreign currency 9,345
- ------------------------------------------------------------------------------------------ ------------
Net gain (loss) on investments 95,558,269
- ------------------------------------------------------------------------------------------ ------------
Net increase (decrease) in net assets resulting from operations $102,074,632
- ------------------------------------------------------------------------------------------ ------------
See Notes to Financial Statements 9
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Changes in Net Assets
Partners Portfolio
---------------------
Neuberger Berman Advisers Management Trust Year Ended December 31,
2004 2003
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss) $ 6,516,363 $ 59,548
===================================================================== ============== ==============
Net realized gain (loss) on investments 103,984,145 (8,891,337)
- --------------------------------------------------------------------- -------------- --------------
Change in net unrealized appreciation (depreciation) of investments (8,425,876) 186,593,259
- --------------------------------------------------------------------- -------------- --------------
Net increase (decrease) in net assets resulting from operations 102,074,632 177,761,470
- --------------------------------------------------------------------- -------------- --------------
Distributions to Shareholders From:
Net investment income (62,733) -
- --------------------------------------------------------------------- -------------- --------------
From Fund Share Transactions (Note D):
Proceeds from shares sold 69,346,230 253,815,477
===================================================================== ============== ==============
Proceeds from reinvestment of dividends and distributions 62,733 -
- --------------------------------------------------------------------- -------------- --------------
Payments for shares redeemed (251,283,347) (284,495,806)
- --------------------------------------------------------------------- -------------- --------------
Net increase (decrease) from Fund share transactions (181,874,384) (30,680,329)
- --------------------------------------------------------------------- -------------- --------------
Net Increase (Decrease) in Net Assets (79,862,485) 147,081,141
Net Assets:
Beginning of year 669,639,353 522,558,212
- --------------------------------------------------------------------- -------------- --------------
End of year $ 589,776,868 $ 669,639,353
- --------------------------------------------------------------------- -------------- --------------
Undistributed net investment income (loss) at end of year $ 6,485,081 $ 59,567
- --------------------------------------------------------------------- -------------- --------------
See Notes to Financial Statements 10
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Financial Statements Partners Portfolio
Note A--Summary of Significant Accounting Policies:
1 General: Partners Portfolio (the "Fund") is a separate operating series of
Neuberger Berman Advisers Management Trust (the "Trust"), a Delaware
statutory trust organized pursuant to a Trust Instrument dated May 23,
1994. The Trust is currently comprised of eleven separate operating series
(each a "Series," collectively, the "Funds") each of which (except Focus
Portfolio) is diversified. The Trust is registered as an open-end
management investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"), and its shares are registered under the
Securities Act of 1933, as amended. The Fund currently offers only Class I
shares. The Board of Trustees of the Trust (the "Board") may establish
additional series or classes of shares without the approval of
shareholders.
The assets of each Series belong only to that Series, and the liabilities
of each Series are borne solely by that Series and no other.
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires Neuberger Berman Management Inc.
("Management") to make estimates and assumptions at the date of the
financial statements. Actual results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in the
notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars using the exchange rate as of 12:00 noon, Eastern time, to
determine the value of investments, other assets and liabilities. Purchase
and sale prices of securities, and income and expenses, are translated into
U.S. dollars at the prevailing rate of exchange on the respective dates of
such transactions. Net unrealized foreign currency gain (loss) arises from
changes in the value of assets and liabilities, other than investments in
securities, as a result of changes in exchange rates and is stated
separately in the Statement of Operations.
4 Securities transactions and investment income: Securities transactions are
recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the Fund
becomes aware of the dividends. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Interest income, including accretion of original issue discount,
where applicable, and accretion of discount on short-term investments, is
recorded on the accrual basis. Realized gains and losses from securities
transactions and foreign currency transactions, if any, are recorded on the
basis of identified cost and stated separately in the Statement of
Operations. Included in net realized gain (loss) on investment securities
sold are proceeds from the settlements of class action litigation in which
the Fund participated as a plaintiff. The amount of such proceeds for the
year ended December 31, 2004 was $726,010.
5 Income tax information: The Funds are treated as separate entities for U.S.
Federal income tax purposes. It is the policy of the Fund to continue to
qualify as a regulated investment company by complying with the
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated
11
Notes to Financial Statements Partners Portfolio cont'd
investment companies and to distribute substantially all of its earnings to
its shareholders. Therefore, no Federal income or excise tax provision is
required.
Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities
held by the Fund, timing differences and differing characterization of
distributions made by the Fund as a whole. The Fund may also utilize
earnings and profits distributed to shareholders on redemption of shares as
a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2004, permanent differences resulting
primarily from different book and tax accounting for foreign currency gains
and losses were reclassified at year end. These reclassifications had no
effect on net income, net assets or net assets per share of the Fund.
The tax character of distributions paid during the years ended December 31,
2004 and December 31, 2003 were as follows:
Distributions Paid From:
Long-Term Tax Return
Ordinary Income Capital Gain of Capital Total
2004 2003 2004 2003 2004 2003 2004 2003
$62,733 $ - $ - $ - $ - $ - $62,733 $ -
As of December 31, 2004, the components of distributable earnings
(accumulated losses) on a U.S. Federal income tax basis were as follows:
Undistributed Undistributed Unrealized Loss
Ordinary Long Term Appreciation Carryforwards
Income Gain (Depreciation) and Deferrals Total
$6,485,081 $147,586 $126,616,206 $ - $133,248,873
The difference between book basis and tax basis distributable earnings is
attributable primarily to timing differences on wash sales.
To the extent the Fund's net realized capital gains, if any, can be offset
by capital loss carryforwards, it is the policy of the Fund not to
distribute such gains. During the year ended December 31, 2004, the Fund
utilized capital loss carryforwards of $102,078,848.
6 Dividends and distributions to shareholders: The Fund may earn income, net
of expenses, daily on its investments. Income dividends and distributions
from net realized capital gains, if any, generally are distributed in
October. Income dividends and capital gain distributions to shareholders
are recorded on the ex-dividend date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds.
Expenses directly attributable to a Series are charged to that Series.
Expenses of the Trust that are not directly attributed to a Series are
allocated among the Funds, on the basis of relative net assets, except
where a more appropriate allocation
12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
of expenses to each of the Funds can otherwise be made fairly. Expenses
borne by the complex of related investment companies, which includes
open-end and closed-end investment companies for which Management serves as
investment manager, that are not directly attributed to a Series or the
Trust, are allocated among the Fund and the other investment companies in
the complex or series thereof, on the basis of relative net assets, except
where a more appropriate allocation of expenses to each investment company
in the complex or series thereof can otherwise be made fairly.
9 Repurchase agreements: The Fund may enter into repurchase agreements with
institutions that the Fund's investment manager has determined are
creditworthy. Each repurchase agreement is recorded at cost. The Fund
requires that the securities purchased in a repurchase agreement be
transferred to the custodian in a manner sufficient to enable the Fund to
assert a perfected security interest in those securities in the event of a
default under the repurchase agreement. The Fund monitors, on a daily
basis, the value of the securities transferred to ensure that their value,
including accrued interest, is greater than amounts owed to the Fund under
each such repurchase agreement.
10 Security lending: Pursuant to an Exemptive Order issued by the Securities
and Exchange Commission, the Fund entered into a Securities Lending
Agreement ("Agreement") with Neuberger Berman, LLC ("Neuberger") on April
17, 2003. Securities loans involve certain risks in the event a borrower
should fail financially, including delays or inability to recover the lent
securities or foreclose against the collateral. The investment manager,
under the general supervision of the Board, monitors the creditworthiness
of the parties to whom the Fund makes security loans. The Fund will not
lend securities on which covered call options have been written, or lend
securities on terms which would prevent the Fund from qualifying as a
regulated investment company. The Fund receives cash collateral equal to at
least 102% of the current market value of the loaned securities. The Fund
invests the cash collateral in the N&B Securities Lending Quality Fund, LLC
("Quality Fund"), which is managed by State Street Bank and Trust Company
("State Street") pursuant to guidelines approved by the Trust's investment
manager. Neuberger guaranteed a certain amount of revenue to the Fund under
the Agreement, and received a portion of any revenue earned in excess of
the guaranteed amount as a lending agency fee.
The Agreement has been renewed and approved by the Board as of July 1, 2004
with substantially the same terms. Under this current Agreement, Neuberger
guarantees a certain amount of revenue to the Fund and receives any revenue
earned in excess of the guaranteed amount as a lending agency fee. For the
year ended December 31, 2004, Neuberger received $77,865 under the
Agreement. Income earned on the securities loaned, if any, is reflected in
the Statement of Operations under the caption Income from securities
loaned-affiliated issuer.
In February of 2005, it is likely that the Fund will change the collateral
investment vehicle from the Quality Fund, managed by State Street, to a
fund managed by Lincoln Capital, an affiliate, as approved by the Board.
11 Transactions with other funds managed by Neuberger Berman Management Inc.:
Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the Fund may invest in the Neuberger Berman Institutional Cash
Fund (the "Cash Fund") and the Neuberger Berman Prime Money
13
Notes to Financial Statements Partners Portfolio cont'd
Fund ("Prime Money"), affiliated funds, which are managed by Management and
have the same Board members as the Fund. The Cash Fund and Prime Money each
seeks to provide as high a level of current income as is consistent with
the preservation of capital and the maintenance of liquidity. For any cash
that the Fund invests in the Cash Fund or Prime Money, Management waives a
portion of its management fee equal to the management fee it receives from
the Cash Fund or Prime Money on those assets. For the year ended December
31, 2004, such waived fees amounted to $12,665 and $71 for the Cash Fund
and Prime Money, respectively. For the year ended December 31, 2004, income
earned on the investments of the Cash Fund and Prime Money amounted to
$124,986 and $1,672, respectively, and is reflected in the Statement of
Operations under the caption Income from investments in affiliated issuers.
12 Indemnifications: Like many other companies, the Trust's organizational
documents provide that its officers and trustees are indemnified against
certain liabilities arising out of the performance of their duties to the
Trust. In addition, both in some of its principal service contracts and in
the normal course of its business, the Trust enters into contracts that
provide indemnifications to other parties for certain types of losses or
liabilities. The Trust's maximum exposure under these arrangements is
unknown as this could involve future claims against the Trust.
Note B--Management Fees, Administration Fees, Distribution Arrangements,
and Other Transactions With Affiliates:
Fund shares are issued and redeemed in connection with investments in and
payments under certain variable annuity contracts and variable life
insurance policies issued through separate accounts of life insurance
companies and are also offered directly to qualified pension and retirement
plans.
The Fund retains Management as its investment manager under a Management
Agreement. For such investment management services, the Fund pays
Management a fee at the annual rate of 0.55% of the first $250 million of
the Fund's average daily net assets, 0.525% of the next $250 million, 0.50%
of the next $250 million, 0.475% of the next $250 million, 0.45% of the
next $500 million, 0.425% of the next $2.5 billion, and 0.40% of average
daily net assets in excess of $4 billion.
The Fund retains Management as its administrator under an Administration
Agreement. The Fund pays Management an administration fee at the annual
rate of 0.30% of its average daily net assets under this agreement.
Additionally, Management retains State Street as its sub-administrator
under a Sub-Administration Agreement. Management pays State Street a fee
for all services received under this agreement.
The Board adopted a non-fee distribution plan for the Fund.
Management has contractually undertaken through December 31, 2008 to
reimburse the Fund for its operating expenses (excluding fees payable to
Management, interest, taxes, brokerage commissions, extraordinary expenses,
and transaction costs) ("Operating Expenses") which exceed, in the
aggregate, 1.00% per annum of the Fund's average daily net assets (the
"Expense Limitation"). For the year ended December 31, 2004, no
reimbursement to the Fund was required. The Fund has agreed to repay
Management through December 31, 2011 for its excess Operating Expenses
previously reimbursed by
14
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Management, so long as its annual Operating Expenses during that period do
not exceed its Expense Limitation, and the repayment is made within three
years after the year in which Management issued the reimbursement. During
the year ended December 31, 2004, there was no reimbursement to Management
under this agreement. At December 31, 2004, the Fund has no contingent
liability to Management under this agreement.
On October 31, 2003, Management and Neuberger, a member firm of the New
York Stock Exchange and sub-adviser to the Fund, became indirect
wholly-owned subsidiaries of Lehman Brothers Holdings Inc. ("Lehman"), a
publicly-owned holding company. Neuberger is retained by Management to
furnish it with investment recommendations and research information without
added cost to the Fund. Several individuals who are officers and/or
Trustees of the Trust are also employees of Neuberger and/or Management.
On July 1, 2003, the Fund entered into a commission recapture program,
which enables it to pay some of its operational expenses by recouping a
portion of the commissions it pays to a broker that is not a related party
of the Fund. Expenses paid through this program may include costs of
custodial, transfer agency or accounting services. For the year ended
December 31, 2004, the impact of this arrangement was a reduction of
expenses of $96,866.
The Fund has an expense offset arrangement in connection with its custodian
contract. For the year ended December 31, 2004, the impact of this
arrangement was a reduction of expenses of $320.
Note C--Securities Transactions:
During the year ended December 31, 2004, there were purchase and sale
transactions (excluding short-term securities) of $432,697,248 and
$601,508,647, respectively.
During the year ended December 31, 2004, brokerage commissions on
securities transactions amounted to $1,443,750, of which Neuberger received
$10, Lehman received $274,479, and other brokers received $1,169,261.
Note D--Fund Share Transactions:
Share activity for the years ended December 31, 2004 and December 31, 2003
was as follows:
For the Year Ended December 31,
2004 2003
Shares Sold 4,246,276 20,169,797
Shares Issued on Reinvestment of Dividends and
Distributions 3,906 -
Shares Redeemed (15,536,771) (22,548,108)
----------- -----------
Total (11,286,589) (2,378,311)
----------- -----------
15
Notes to Financial Statements Partners Portfolio cont'd
Note E--Line of Credit:
At December 31, 2004, the Fund was a participant in a single committed,
unsecured $150,000,000 line of credit with State Street, to be used only
for temporary or emergency purposes. Interest is charged on borrowings
under this agreement at the overnight Federal Funds Rate plus 0.50% per
annum. A facility fee of 0.10% per annum of the available line of credit is
charged, of which the Fund has agreed to pay its pro rata share, based on
the ratio of its individual net assets to the net assets of all
participants at the time the fee is due and payable. The fee is paid
quarterly in arrears. No compensating balance is required. Other investment
companies managed by Management also participate in this line of credit on
the same terms. Because several investment companies participate, there is
no assurance that the Fund will have access to all or any part of the
$150,000,000 at any particular time. The Fund had no loans outstanding
pursuant to this line of credit at December 31, 2004, nor had the Fund
utilized this line of credit at any time prior to that date.
Note F--Investments in Affiliates*:
Income
from
Investments
Balance of Balance of in Affiliated
Shares Gross Gross Shares Issuers
Held Purchases Sales Held Value Included in
December 31, and and December 31, December 31, Total
Name of Issuer 2003 Additions Reductions 2004 2004 Income
Lehman Brothers
Holdings 154,600 - 154,600 - $- $20,736
N&B Securities Lending
Quality Fund, LLC ** 29,135,300 20,978,732,288 20,908,852,138 99,015,450 99,015,450 138,687
Neuberger Berman
Institutional Cash Fund
Trust Class*** 14,346,455 207,136,097 221,482,552 - - 124,986
Neuberger Berman
Prime Money Fund
Trust Class*** - 8,323,936 2,457,604 5,866,332 5,866,332 1,672
---------- -------
Total $104,881,782 $286,081
============ ========
* Affiliated issuers, as defined in the 1940 Act, include issuers in which
the Fund held 5% or more of the outstanding voting securities.
** The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans. The Fund's shares in the
Quality Fund are non-voting. However, because all shares of the Quality
Fund are held by funds in the related investment management complex, the
Quality Fund may be considered an affiliate of the Fund.
*** Neuberger Berman Institutional Cash Fund (the "Cash Fund") and Neuberger
Berman Prime Money Fund ("Prime Money") are also managed by Neuberger
Berman Management Inc. and may be considered affiliates since they have the
same officers, Board members, and investment manager as the Fund and
because, at times, the Fund may own 5% or more of the outstanding voting
securities of the Cash Fund or Prime Money, respectively.
16
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Financial Highlights Partners Portfolio+
The following table includes selected data for a share outstanding throughout
each year and other performance information derived from the Financial
Statements.++
Year Ended December 31,
2004 2003 2002 2001 2000
--------------------------------------------------------
Net Asset Value, Beginning of Year $ 15.40 $ 11.40 $ 15.10 $ 16.17 $ 19.64
-------- -------- -------- -------- --------
Income From Investment Operations
Net Investment Income (Loss) .17 .00 .01 .06 .07
Net Gains or Losses on Securities (both realized and unrealized) 2.75 4.00 (3.64) (.50) (.20)
-------- -------- -------- -------- --------
Total From Investment Operations 2.92 4.00 (3.63) (.44) (.13)
-------- -------- -------- -------- --------
Less Distributions From:
Net Investment Income (.00) - (.07) (.06) (.15)
Net Capital Gains - - - (.57) ( 3.19)
-------- -------- -------- -------- --------
Total Distributions (.00) - (.07) (.63) (3.34)
-------- -------- -------- -------- --------
Net Asset Value, End of Year $ 18.32 $ 15.40 $ 11.40 $ 15.10 $ 16.17
-------- -------- -------- -------- --------
Total Return++ +18.98% +35.09% -24.14% -2.83% +0.70%
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $ 589.8 $ 669.6 $ 522.6 $ 795.4 808.3
Ratio of Gross Expenses to Average Net Assets# .91% .91% .91% .87% .92%
Ratio of Net Expenses to Average Net Assets[sec] .89% .90% .91% .87% .92%
Ratio of Net Investment Income (Loss) to Average Net Assets 1.05% .01% .05% .43% .42%
Portfolio Turnover Rate 71% 76% 53% 74% 97%
See Notes to Financial Highlights 17
Notes to Financial Highlights Partners Portfolio
+ The per share amounts and ratios which are shown reflect income and
expenses, including the Fund's proportionate share of AMT Partners
Investment's income and expenses through April 30, 2000 under the prior
master/feeder fund structure.
++ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each
fiscal period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee future
results. Current returns may be lower or higher than the performance data
quoted. Investment returns and principal may fluctuate and shares when
redeemed may be worth more or less than original cost. Total return would
have been lower if Management had not waived certain expenses. The total
return information shown does not reflect charges and other expenses that
apply to the separate account or the related insurance policies, and the
inclusion of these charges and other expenses would reduce the total return
for all fiscal periods shown. Performance data current to the most recent
month-end are available at www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
++ The per share amounts which are shown have been computed based on the
average number of shares outstanding during each fiscal period.
[sec]After waiver of a portion of the investment management fee. Had the
investment manager not undertaken such action, the annualized ratios of net
expenses to average daily net assets would have been:
Year Ended Year Ended
December 31, December 31,
2004 2003
0.90% 0.90%
18
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of
Neuberger Berman Advisers Management Trust and
Shareholders of Partners Portfolio
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Partners Portfolio, one of the series
constituting the Neuberger Berman Advisers Management Trust (the "Trust"), as
of December 31, 2004, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights. Our procedures included confirmation of securities owned as of
December 31, 2004, by correspondence with the custodian and brokers or other
appropriate auditing procedures where replies from brokers were not received.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Partners Portfolio of Neuberger Berman Advisers Management Trust at December
31, 2004, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and its
financial highlights for each of the five years in the period then ended, in
conformity with U.S. generally accepted accounting principles.
/s/ Ernest + Young
Boston, Massachusetts
February 4, 2005
19
Trustees and Officers (Unaudited)
The following tables set forth information concerning the trustees and officers
of the Trust. All persons named as trustees and officers also serve in similar
capacities for other funds administered or managed by NB Management and
Neuberger Berman. The Statement of Additional Information includes additional
information about fund trustees and is available upon request, without charge,
by calling (800) 877-9700.
Information about the Board of Trustees
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ---------------------------------------------------------------------------------------------------------------------------------
John Cannon (74) Trustee since Consultant. Formerly, 41 Independent Trustee or Director of
2000 Chairman, CDC Investment three series of Oppenheimer Funds:
Advisers (registered investment Limited Term New York Municipal
adviser) 1993 to January 1999; Fund, Rochester Fund Municipals,
formerly, President and Chief and Oppenheimer Convertible
Executive Officer, AMA Securities Fund, since 1992.
Investment Advisors, an affiliate
of the American Medical
Association.
- ----------------------------------------------------------------------------------------------------------------------------------
Faith Colish (69) Trustee since Counsel, Carter Ledyard & 41 Director, American Bar Retirement
1984 Millburn LLP (law firm) since Association (ABRA) since 1997
October 2002; formerly, (not-for-profit membership
Attorney-at-Law and President, association).
Faith Colish, A Professional
Corporation, 1980 to 2002.
- ----------------------------------------------------------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) Trustee since Consultant; Retired President 41 None.
1989 and Trustee, Teachers Insurance
& Annuity (TIAA) and College
Retirement Equities Fund
(CREF).
- ----------------------------------------------------------------------------------------------------------------------------------
C. Anne Harvey (67) Trustee since Consultant, C. A. Harvey 41 President, Board of Associates to
1998 Associates, since June 2001; The National Rehabilitation
formerly, Director, AARP, 1978 Hospital's Board of Directors since
to December 2001. 2002; formerly, Member, Individual
Investors Advisory Committee to the
New York Stock Exchange Board
of Directors, 1998 to June 2002;
formerly, Member, American
Savings Education Council's Policy
Board (ASEC), 1998 to 2000;
formerly, Member, Executive
Committee, Crime Prevention
Coalition of America, 1997 to 2000.
- ----------------------------------------------------------------------------------------------------------------------------------
20
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ----------------------------------------------------------------------------------------------------------------------------------
Barry Hirsch (71) Trustee since Attorney-at-Law. Formerly, 41 None.
2000 Senior Counsel, Loews
Corporation (diversified
financial corporation) May 2002
until April 2003; formerly,
Senior Vice President, Secretary
and General Counsel,
Loews Corporation.
- ----------------------------------------------------------------------------------------------------------------------------------
Robert A. Kavesh (77) Trustee since Marcus Nadler Professor 41 Director, DEL Laboratories, Inc.
2000 Emeritus of Finance and (cosmetics and pharmaceuticals)
Economics, New York since 1978; Director, The Caring
University Stern School Community (not-for-profit).
of Business.
- ----------------------------------------------------------------------------------------------------------------------------------
Howard A. Mileaf (67) Trustee since Retired. Formerly, Vice 41 Director, WHX Corporation
1999 President and Special Counsel, (holding company) since August
WHX Corporation (holding 2002; Director, Webfinancial
company) 1993 to 2001. Corporation (holding company)
since December 2002; Director, State
Theatre of New Jersey (not-for-
profit theater) since 2000; formerly,
Director, Kevlin Corporation
(manufacturer of microwave and
other products).
since December 2002; Director, State
- ----------------------------------------------------------------------------------------------------------------------------------
William E. Rulon (72) Trustee since Retired. Formerly, Senior Vice 41 Director, Pro-Kids Golf and
2000 President, Foodmaker, Inc. Learning Academy (teach golf and
(operator and franchiser of computer usage to "at risk" children)
restaurants) until January 1997. since 1998; formerly, Director,
Prandium, Inc. (restaurants) from
March 2001 until July 2002.
- ----------------------------------------------------------------------------------------------------------------------------------
Cornelius T. Ryan (73) Trustee since Founding General Partner, 41 Director, Capital Cash Management
2000 Oxford Partners and Oxford Trust (money market fund),
Bioscience Partners (venture Naragansett Insured Tax-Free
capital partnerships) and Income Fund, Rocky Mountain
President, Oxford Venture Equity Fund, Prime Cash Fund,
Corporation. several private companies and
QuadraMed Corporation
(NASDAQ).
- ----------------------------------------------------------------------------------------------------------------------------------
21
Trustees and Officers (Unaudited) cont'd
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ----------------------------------------------------------------------------------------------------------------------------------
Tom D. Seip (54) Trustee since General Partner, Seip 41 Director, H&R Block, Inc. (financial
2000 Investments LP (a private services company) since May 2001;
investment partnership); Director, Forward Management, Inc.
formerly, President and CEO, (asset management) since 2001;
Westaff, Inc. (temporary formerly, Director, General Magic
staffing), May 2001 to January (voice recognition software) 2001
2002; Senior Executive at the until 2002; formerly, Director,
Charles Schwab Corporation E-Finance Corporation (credit
from 1983 to 1999, including decisioning services) 1999 to 2003;
Chief Executive Officer, formerly, Director, Save-Daily.com
Charles Schwab Investment (micro investing services) 1999 to
Management, Inc. and Trustee, 2003; Director, Offroad Capital Inc.
Schwab Family of Funds and (pre-public internet commerce
Schwab Investments from company).
1997 to 1998 and Executive
Vice President-Retail
Brokerage, Charles Schwab
Investment Management from
1994 to 1997.
- ----------------------------------------------------------------------------------------------------------------------------------
Candace L. Straight (57) Trustee since Private investor and consultant 41 Director, The Proformance Insurance
1999 specializing in the insurance Company (personal lines property
industry; formerly, Advisory and casualty insurance company)
Director, Securitas Capital since March 2004; Director,
LLC (a global private equity Providence Washington (property
investment firm dedicated to and casualty insurance company)
making investments in the since December 1998; Director,
insurance sector) 1998 to Summit Global Partners (insurance
December 2002. brokerage firm) since October 2000.
- ----------------------------------------------------------------------------------------------------------------------------------
Peter P. Trapp (60) Trustee since Regional Manager for Atlanta 41 None.
1984 Region, Ford Motor Credit
Company since August 1997;
formerly, President, Ford Life
Insurance Company, April 1995
to August 1997.
- ----------------------------------------------------------------------------------------------------------------------------------
22
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Number of
Portfolios in
Trustees who are Position and Fund Complex
"Interested Persons" Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ----------------------------------------------------------------------------------------------------------------------------------
Edward I. O'Brien* (76) Trustee since Formerly, Member, Investment 41 Director, Legg Mason, Inc. (financial
2000 Policy Committee, Edward services holding company) since
Jones 1993 to 2001; President, 1993; formerly, Director, Boston
Securities Industry Association Financial Group (real estate and tax
("SIA") (securities industry's shelters) 1993 to 1999.
representative in government
relations and regulatory
matters at the federal and state
levels) 1974 to 1992; Adviser to
SIA, November 1992 to
November 1993.
- ----------------------------------------------------------------------------------------------------------------------------------
Jack L. Rivkin* (64) President and Executive Vice President and 41 Director, Dale Carnegie and
Trustee since Chief Investment Officer, Associates, Inc. (private company)
December Neuberger Berman Inc. since 1998; Director, Emagin Corp.
2002 (holding company) since 2002 (public company) since 1997;
and 2003, respectively; Director, Solbright, Inc. (private
Executive Vice President and company) since 1998; Director,
Chief Investment Officer, Infogate, Inc. (private company)
Neuberger Berman since since 1997; Director, Broadway
December 2002 and 2003, Television Network (private
respectively; Director and company) since 2000.
Chairman, NB Management
since December 2002; formerly,
Executive Vice President,
Citigroup Investments, Inc.
from September 1995 to
February 2002; formerly,
Executive Vice President,
Citigroup Inc. from September
1995 to February 2002.
- ----------------------------------------------------------------------------------------------------------------------------------
23
Trustees and Officers (Unaudited) cont'd
Number of
Portfolios in
Trustees who are Position and Fund Complex
"Interested Persons" Length of Time Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Complex by Trustee
- ----------------------------------------------------------------------------------------------------------------------------------
Peter E. Sundman* (45) Chairman of Executive Vice President, 41 Director and Vice President,
the Board, Neuberger Berman Inc. Neuberger & Berman Agency, Inc.
Chief (holding company) since 1999; since 2000; formerly, Director,
Executive Head of Neuberger Berman Neuberger Berman Inc. (holding
Officer and Inc.'s Mutual Funds and company) from October 1999
Trustee Institutional Business since through March 2003; Trustee,
since 2000 1999; President and Director, Frost Valley YMCA.
President NB Management since 1999;
and Chief Executive Vice President,
Executive Neuberger Berman since 1999;
Officer from formerly, Principal, Neuberger
1999 to 2000 Berman from 1997 until 1999;
formerly, Senior Vice President,
NB Management from 1996
until 1999.
- ----------------------------------------------------------------------------------------------------------------------------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the Trust's Trust Instrument, each Trustee shall hold office
for life or until his or her successor is elected or the Trust terminates;
except that (a) any Trustee may resign by delivering a written resignation;
(b) any Trustee may be removed with or without cause at any time by a
written instrument signed by at least two-thirds of the other Trustees; (c)
any Trustee who requests to be retired, or who has become unable to serve,
may be retired by a written instrument signed by a majority of the other
Trustees; and (d) any Trustee may be removed at any shareholder meeting by
a vote of at least two-thirds of the outstanding shares.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
(4) Retired (effective the close of business December 31, 2004).
* Indicates a trustee who is an "interested person" within the meaning of the
1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of the Trust by
virtue of the fact that they are officers and/or directors of NB Management
and Executive Vice Presidents of Neuberger Berman. Mr. O'Brien is an
interested person of the Trust by virtue of the fact that he is a director
of Legg Mason, Inc., a wholly owned subsidiary of which, from time to time,
serves as a broker or dealer to the Funds and other funds for which NB
Management serves as investment manager.
24
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Information about the Officers of the Trust
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- ---------------------------------------------------------------------------------------------------------------------
Claudia A. Brandon (48) Secretary since 1985 Vice President-Mutual Fund Board Relations,
NB Management since 2000; Vice President, Neuberger
Berman since 2002 and employee since 1999; formerly,
Vice President, NB Management from 1986 to 1999;
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (four since 2002, three since 2003, and four
since 2004).
Philip R. Carroll (70) Chief Compliance Officer Vice President, Neuberger Berman since 2002; Associate
since 2004 General Counsel, Neuberger Berman since 2001; Director-
Mutual Fund Compliance, NB Management since 1995;
Chief Legal Officer, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (ten since 2003 and four since
2004); Chief Compliance Officer, fourteen registered
investment companies for which NB Management acts
as investment manager and administrator (fourteen since
2004) and Lehman Brothers/First Trust Income
Opportunity Fund.
Robert Conti (48) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003,
formerly, Vice President, Neuberger Berman from 1999
until 2003; Senior Vice President, NB Management since
2000; formerly, Controller, NB Management until 1996;
formerly, Treasurer, NB Management from 1996 until
1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Brian J. Gaffney (51) Vice President since 2000 Managing Director, Neuberger Berman since 1999;
Senior Vice President, NB Management since 2000;
formerly, Vice President, NB Management from 1997
until 1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Sheila R. James (39) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1991 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
25
Trustees and Officers (Unaudited) cont'd
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- ----------------------------------------------------------------------------------------------------------------------------
Kevin Lyons (49) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1993 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (ten since 2003 and four since 2004).
John M. McGovern (34) Assistant Treasurer since 2002 Vice President, Neuberger Berman since January 2004;
Employee, NB Management since 1993; Assistant
Treasurer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
Barbara Muinos (46) Treasurer and Principal Financial Vice President, Neuberger Berman since 1999; formerly,
and Accounting Officer since 2002; Assistant Vice President, NB Management from 1993 to
prior thereto, Assistant Treasurer 1999; Treasurer and Principal Financial and Accounting
since 1996 Officer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004); formerly, Assistant Treasurer, three registered
investment companies for which NB Management acts
as investment manager and administrator from 1996
until 2002.
Frederic B. Soule (58) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003;
formerly, Vice President, Neuberger Berman from 1999
until 2003; formerly, Vice President, NB Management
from 1995 until 1999; Vice President, fourteen registered
investment companies for which NB Management acts as
investment manager and administrator (three since 2000,
four since 2002, three since 2003, and four since 2004).
- -------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the By-Laws of the Trust, each officer elected by the Trustees
shall hold office until his or her successor shall have been elected and
qualified or until his or her earlier death, inability to serve, or
resignation. Officers serve at the pleasure of the Trustees and may be
removed at any time with or without cause.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
26
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available, without
charge, by calling 1-800-877-9700 (toll-free) and on the website of the
Securities and Exchange Commission, at www.sec.gov. Information regarding how
the Trust voted proxies relating to portfolio securities during the most recent
12-month period ended June 30 will also be available without charge, by calling
1-800-877-9700 (toll-free), on the website of the Securities and Exchange
Commission, at www.sec.gov, and on the Trust's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange
Commission's website at www.sec.gov and may be reviewed and copied at the
Securities and Exchange Commission's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The information on Form N-Q is available upon request,
without charge, by calling 1-800-877-9700 (toll-free).
27
[Logo]
Annual Report NEUBERGER BERMAN
December 31, 2004 A Lehman Brothers Company
Neuberger Berman
Advisers
Management
Trust
Regency
Portfolio
B1012 02/05
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Regency Portfolio Manager's Commentary
- --------------------------------------
Mid-cap value stocks were in the market's sweet spot in 2004, as the Russell
Midcap Value Index outperformed other major domestic equity indices as tracked
by Russell. The Neuberger Berman AMT Regency Portfolio provided strong returns
for the period, slightly trailing this top performing benchmark.(2)
Consumer Discretionary investments provided the greatest contribution to the
portfolio's absolute returns, with toolmaker Black & Decker among our top
performers. Financial holdings also helped results, with regional bank Charter
One Financial and investment banker/broker Bear Stearns providing substantial
returns. The Energy sector also augmented total returns, with natural gas
production company XTO Energy and refiner/ gasoline retailer/chemicals producer
Sunoco delivering our best stock performances. Health Care investments, most
notably HMOs WellPoint (formerly Anthem), Oxford Health Plans (acquired by
UnitedHealth Group) and Wellchoice, had a favorable impact on returns relative
to the benchmark, with our holdings more than tripling benchmark component
returns.
Although we still see some opportunities in Energy and Health Care, our
valuation discipline has prompted us to reduce our exposure in both. We began
accumulating Energy stocks because we believed they were inexpensive relative
to earnings potential. However, the Energy group has performed so well that
most of its stocks now appear fairly valued. At year's end, our Energy
portfolio included just three names--XTO Energy, Sunoco, and Pioneer Natural
Resources--which we think are bargains even if energy prices decline. We have
reduced our Health Care exposure as well. At mid-year, economic growth was
slowing and investors returned to this and other less economically sensitive
industries. As a result, several of our Health Care holdings, such as Davita,
an operator of kidney dialysis centers, appreciated and were sold. Although we
continue to like select Health Care stocks, we are not finding as much value as
we were a year ago.
Our Industrial holdings were poor performers in 2004, largely due to the sharp
decline of one stock, diversified manufacturer SPX Corp. SPX experienced
operational problems, the worst being its inability to pass on spiraling raw
material costs to customers. While SPX's issues are not trivial, we think that
the new CEO will be able to fix them, and we applaud his strategy of shedding
assets in a "seller's market" for industrial businesses. We plan to be patient
with SPX and hope to capitalize on the turnaround we anticipate in the years
ahead.
Relative to the benchmark, portfolio results were restrained more by what we
didn't own than by what we did. For example, although Real Estate Investment
Trusts (REITs) comprise about 9% of the benchmark, we don't own any of these
strongly performing stocks, since we consider them to be a separate asset
class. We also did not own any Materials stocks, which also did well, since the
group contains very few attractively valued companies that meet our quality
standards. While we missed the run-up in Materials stocks this year, we also
expect to miss the inevitable sell-off.
We think that the portfolio's strong results in 2004 are a testament to the
benefits of bottom-up stock picking. To wit, the composition of our top-ten
performance list had little correlation with the market sectors that posted the
strongest performance. Although our two best performers came from the red-hot
energy sector, the balance of our top ten included three HMOs, a tool company,
a beverage company, a regional bank, an auto parts maker, and an investment
bank/broker.
Looking forward, we think that the economy will grow this year and that
corporate earnings will be good, but uninspiring. We do not see convincing
1
Regency Portfolio Manager's Commentary cont'd
- ---------------------------------------------
reasons for stocks to go up or down significantly. Even if we did, however, we
do not spend much time focusing on macroeconomics. Instead, we devote our
energy to looking for high-quality companies trading at opportunistic
prices--in our view the best way to achieve superior risk-adjusted investment
returns over the long term.
Sincerely,
/S/ ANDREW WELLINGTON
ANDREW WELLINGTON
PORTFOLIO MANAGER
- -------------------------------------------------------------------------------
Average Annual Total Return(1)
Regency Russell Midcap(R)
Portfolio Value(2) Russell Midcap(R)(2)
1 Year 22.36% 23.70% 20.22%
Life of Fund 12.41% 13.85% 11.68%
- -------------------------------------------------------------------------------
Inception Date 08/22/2001
Performance data quoted represent past performance, which is no guarantee of
future results. The investment return and principal value of an investment will
fluctuate so the an investor's shares, when redeemed may be worth more or less
than their original cost. Results are shown on a "total return" basis and
include reinvestment of all dividends and capital gain distributions.
Current performance may be lower or higher than the performance data quoted.
For performance data current to the most recent month end, please visit
www.nb.com/ performance.
Comparison of a $10,000 Investment
- ------------------------------------------------------------------------------------
Regency Russell Midcap (R)
Portfolio Value Russell Midcap (R)
- ------------------------------------------------------------------------------------
8/22/2001 $ 10,000 $ 10,000 $ 10,000
- ------------------------------------------------------------------------------------
12/31/2001 $ 9,970 $ 10,025 $ 10,275
- ------------------------------------------------------------------------------------
6/30/2002 $ 10,040 $ 10,312 $ 9,689
- ------------------------------------------------------------------------------------
12/31/2002 $ 8,918 $ 9,058 $ 8,612
- ------------------------------------------------------------------------------------
6/30/2003 $ 9,980 $ 10,246 $ 9,944
- ------------------------------------------------------------------------------------
12/31/2003 $ 12,114 $ 12,507 $ 12,062
- ------------------------------------------------------------------------------------
6/30/2004 $ 13,066 $ 13,403 $ 12,866
- ------------------------------------------------------------------------------------
12/31/2004 $ 14,823 $ 15,471 $ 14,500
- ------------------------------------------------------------------------------------
The chart shows the value of a hypothetical $10,000 investment in the Fund
over the past 10 fiscal years, or since the Fund's inception, if it has not
operated for 10 years. The result is compared with benchmarks, which may include
a broad-based market index and/or a narrower index.Please note that market
indexes do not include expenses. All results include the reinvestment of
dividends and capital gain distributions. Results represent past performance and
do not indicate future results. The chart and table do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
Please see Endnotes for additional information.
Industry Diversification
(% of Industry Holdings)
Auto Related .......................... 12.4%
Banking & Financial ................... 10.3
Business Services ..................... 2.2
Consumer Cyclicals .................... 5.5
Energy ................................ 5.8
Financial Services .................... 8.4
Food & Beverage ....................... 3.9
Health Care ........................... 13.1
Insurance ............................. 11.2
Manufacturing ......................... 4.4
Restaurants ........................... 3.2
Retail ................................ 11.6
Technology ............................ 4.5
Short-Term Investments ................ 21.2
Liabilities, less cash, receivables and
other assets ...................... (17.7)
2
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Endnotes
- --------
1. 22.36% and 12.41% were the average annual total returns for
the 1-year and since inception (08/22/01) periods ended
December 31, 2004. Neuberger Berman Management Inc. ("NBMI")
has agreed to absorb certain expenses of the AMT Portfolios.
Without this arrangement, which is subject to change, the
total returns of the Portfolios would be less. Total return
includes reinvestment of dividends and capital gain
distributions. Performance data quoted represent past
performance and the investment return and principal value of
an investment will fluctuate so that the shares, when
redeemed, may be worth more or less than original cost. The
performance information does not reflect fees and expenses
of the insurance companies.
2. The Russell Midcap[RegTM] Value Index measures the
performance of those Russell Midcap[RegTM] Index companies
with lower price-to-book ratios and lower forecasted growth
values. The Russell Midcap Index measures the performance of
the 800 smallest companies in the Russell 1000[RegTM] Index,
which represents approximately 26% of the total market
capitalization of the Russell 1000 Index (which, in turn,
consists of the 1,000 largest U.S. companies, based on
market capitalization). Please note that indices do not take
into account any fees and expenses of investing in the
individual securities that they track, and that individuals
cannot invest directly in any index. Data about the
performance of these indices are prepared or obtained by
NBMI and include reinvestment of all dividends and capital
gain distributions. The Portfolio may invest in many
securities not included in the above-described indices.
The investments for the Portfolio are managed by the same
portfolio manager(s) who manage one or more other mutual
funds that have similar names, investment objectives and
investment styles as the Portfolio. You should be aware that
the Portfolio is likely to differ from the other mutual
funds in size, cash flow pattern and tax matters.
Accordingly, the holdings and performance of the Portfolio
can be expected to vary from those of the other mutual
funds.
The composition, industries and holdings of the Portfolio
are subject to change.
Shares of the separate Portfolios of Neuberger Berman
Advisers Management Trust are sold only through the
currently effective prospectus and are not available to the
general public. Shares of this Portfolio may be purchased
only by life insurance companies to be used with their
separate accounts that fund variable annuity and variable
life insurance policies and by qualified pension and
retirement plans.
(C) 2005 Neuberger Berman Management Inc., distributor. All
rights reserved.
3
Information About Your Fund's Expenses
- --------------------------------------
This table is designed to provide information regarding costs related to your
investments. All mutual funds incur operating expenses, which include
management fees, administrative services and shareholder reports among others.
The following example is based on an investment of $1,000 made at the beginning
of the period shown and held for the entire period. The table illustrates the
fund's costs in two ways:
Actual Expenses: The first section of the table provides
information about actual account values and actual
expenses in dollars. You may use the information
in this line, together with the amount you
invested, to estimate the expenses you paid over
the period.
Hypothetical Example for Comparison Purposes: The second section of the table provides
information about hypothetical account values and
hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return at
5% per year before expenses. This return is not the
Fund's actual return. The hypothetical account values
andexpenses may not be used to estimate the actual
ending account balance or expenses you paid for the
period. You may use this information to compare the
ongoing costs of investing in this Fund versus other
funds. To do so, compare this 5% hypothetical example
with the 5%hypothetical examples that appear in the
shareholder reports of otherfunds.
Expense Information As of 12/31/04 (Unaudited)
- ----------------------------------------------
Neuberger Berman Advisers Management Trust Regency Portfolio
Beginning Ending Expenses Paid
Actual Account Value Account Value During the Period*
Class I $1,000 $ 1,134.53 $ 5.58
Hypothetical (5% annual return before expenses)**
Class I $1,000 $ 1,019.91 $ 5.28
* Expenses are equal to the expense ratio for the class, multiplied by
the average account value over the period, multiplied by 184/366 (to
reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by
multiplying the number of days in the most recent half year divided by
366.
4
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Regency Portfolio
- -----------------------------------------
Number of Shares Market Value+
Common Stocks (96.5%)
Auto Related (12.4%)
64,100 Advance Auto Parts $ 2,799,888*
47,000 AutoNation, Inc. 902,870*
37,400 AutoZone, Inc. 3,414,994*\(Pound)
64,400 Borg-Warner Automotive 3,488,548
48,500 Johnson Controls 3,076,840
57,500 Lear Corp. 3,508,075\(Pound)
------------------
17,191,215
Banking & Financial (10.3%)
50,900 Astoria Financial 2,034,473
38,600 Commerce Bancorp 2,485,840\(Pound)
78,400 First Horizon National 3,379,824\(Pound)
89,100 IndyMac Bancorp 3,069,495
114,465 North Fork Bancorp 3,302,315
------------------
14,271,947
Business Services (2.2%)
63,900 Manpower Inc. 3,086,370
Consumer Cyclicals (5.5%)
20,000 Black & Decker 1,766,600
24,900 Mohawk Industries 2,272,125*
51,900 Whirlpool Corp. 3,591,999\(Pound)
------------------
7,630,724
Energy (5.8%)
58,400 Pioneer Natural Resources 2,049,840
29,300 Sunoco, Inc. 2,394,103
100,157 XTO Energy 3,543,555
------------------
7,987,498
Financial Services (8.4%)
38,900 Ambac Financial Group 3,194,857
31,400 Bear Stearns 3,212,534\(Pound)
69,800 CIT Group 3,198,236
85,400 Waddell & Reed Financial 2,040,206
------------------
11,645,833
Food & Beverage (3.9%)
48,400 Constellation Brands 2,251,084*
56,600 Del Monte Foods 623,732*
84,200 Fresh Del Monte Produce 2,493,162\(Pound)
------------------
5,367,978
Health Care (13.1%)
68,800 Coventry Health Care 3,651,904*\(Pound)
103,100 NBTY, Inc. 2,475,431*
98,700 Omnicare, Inc. 3,416,994
90,700 Triad Hospitals 3,374,947*
33,500 Universal Health Services
Class B 1,490,750
25,500 WellChoice Inc. 1,361,700*
20,500 WellPoint Inc. 2,357,500*
------------------
18,129,226
Number of Shares Market Value+
Insurance (11.2%)
48,600 Arch Capital Group $ 1,880,820*
30,400 Endurance Specialty
Holdings 1,039,680
6,300 Jefferson-Pilot 327,348
43,800 PartnerRe Ltd. 2,712,972
72,900 PMI Group 3,043,575
62,700 Radian Group 3,338,148
61,100 RenaissanceRe Holdings 3,182,088
------------------
15,524,631
Manufacturing (4.4%)
8,300 Briggs & Stratton 345,114
30,900 Ingersoll-Rand 2,481,270
83,400 SPX Corp. 3,341,004\(Pound)
------------------
6,167,388
Restaurants (3.2%)
68,200 Darden Restaurants 1,891,868
95,400 Ruby Tuesday 2,488,032
------------------
4,379,900
Retail (11.6%)
35,600 Dollar Tree Stores 1,021,008*
122,600 Foot Locker 3,301,618
58,100 Liz Claiborne 2,452,401
164,200 Pier 1 Imports 3,234,740\(Pound)
76,300 Reebok International 3,357,200
50,100 V. F. Corp. 2,774,538
------------------
16,141,505
Technology (4.5%)
84,700 Computer Associates 2,630,782\(Pound)
328,600 Western Digital 3,562,024*\(Pound)
------------------
6,192,806
Total Common Stocks
(Cost $115,283,686)
133,717,021
------------------
Principal Amount
Short-Term Investments (21.2%)
$24,052,200 N&B Securities Lending
Quality Fund, LLC 24,052,200++
5,303,851 Neuberger Berman Prime
Money Fund Trust Class 5,303,851@
------------------
Total Short-Term Investments
(Cost $29,356,051) 29,356,051#
------------------
Total Investments (117.7%)
(Cost $144,639,737)
163,073,072##
Liabilities, less cash, receivables and other
assets [(17.7%)]
(24,530,513)
------------------
Total Net Assets (100.0%)
$ 138,542,559
------------------
See Notes to Schedule of Investments
5
Notes to Schedule of Investments Regency Portfolio
- --------------------------------------------------
+ Investments in equity securities by Neuberger Berman Advisers Management
Trust Regency Portfolio (the "Fund") are valued at the latest sale price
where that price is readily available; securities for which no sales were
reported, unless otherwise noted, are valued at the mean between the
closing bid and asked prices. Securities traded primarily on the NASDAQ
Stock Market are normally valued by the Fund at the NASDAQ Official Closing
Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most
recently reported price as of 4:00:02 p.m., Eastern time, unless that price
is outside the range of the "inside" bid and asked prices (i.e., the bid
and asked prices that dealers quote to each other when trading for their
own accounts); in that case, NASDAQ will adjust the price to equal the
inside bid or asked price, whichever is closer. Because of delays in
reporting trades, the NOCP may not be based on the price of the last trade
to occur before the market closes. The Fund values all other securities by
a method the Board of Trustees of Neuberger Berman Advisers Management
Trust (the "Board") believes accurately reflects fair value. Numerous
factors may be considered when determining the fair value of a security,
including available analyst, media or other reports, trading in futures or
ADRs and whether the issuer of the security being fair valued has other
securities outstanding. Foreign security prices are furnished by
independent quotation services and expressed in local currency values.
Foreign security prices are translated from the local currency into U.S.
dollars using the exchange rate as of 12:00 noon, Eastern time. The Board
has approved the use of FT Interactive Data Corporation ("FT Interactive")
to assist in determining the fair value of the Fund's foreign equity
securities in the wake of certain significant events. When changes in the
value of a certain index suggest that the closing prices on the foreign
exchanges may no longer represent the amount that the Fund could expect to
receive for those securities, FT Interactive will provide adjusted prices
for certain foreign equity securities based on an analysis showing
historical correlations between the prices of those securities and changes
in the index. In the absence of precise information about the market values
of these foreign securities as of the close of the New York Stock Exchange,
the Board has determined on the basis of available data that prices
adjusted in this way are likely to be closer to the prices the Fund could
realize on a current sale than are the prices of those securities
established at the close of the foreign markets in which the securities
primarily trade. However, fair value prices are necessarily estimates, and
there is no assurance that such a price will be at or close to the price at
which the security next trades. Short-term debt securities with less than
60 days until maturity may be valued at cost which, when combined with
interest earned, approximates market value.
# At cost, which approximates market value.
## At December 31, 2004, the cost of investments for U.S. Federal income tax
purposes was $145,504,687. Gross unrealized appreciation of investments was
$17,757,363 and gross unrealized depreciation of investments was $188,978,
resulting in net unrealized appreciation of $17,568,385, based on cost for
U.S. Federal income tax purposes.
* Non-income producing security.
\P All or a portion of this security is on loan (see Note A of Notes to
Financial Statements).
@ Neuberger Berman Prime Money Fund ("Prime Money") is also managed by
Neuberger Berman Management Inc. (see Notes A & F of Notes to Financial
Statements) and may be considered an affiliate since it has the same
officers, Board members, and investment manager as the Fund and because, at
times, the Fund may own 5% or more of the outstanding voting securities of
Prime Money.
++ The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans. The Fund's shares in the
Quality Fund are non-voting. However, because all shares of the Quality
Fund are held by funds in the related investment management complex, the
Quality Fund may be considered an affiliate of the Fund (see Notes A & F of
Notes to Financial Statements).
See Notes to Financial Statements
6
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Assets and Liabilities
- -----------------------------------
Regency
Neuberger Berman Advisers Management Trust Portfolio
Assets
Investments in securities, at market value*+ (Notes A & F)-see Schedule of Investments:
- ---------------------------------------------------------------------------------------------------------
Unaffiliated issuers $ 133,717,021
- ---------------------------------------------------------------------------------------------------------
Affiliated issuers 29,356,051
- ---------------------------------------------------------------------------------------------------------
163,073,072
- ---------------------------------------------------------------------------------------------------------
Dividends and interest receivable 72,135
- ---------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 286,518
- ---------------------------------------------------------------------------------------------------------
Prepaid expenses and other assets 1,748
- ---------------------------------------------------------------------------------------------------------
Total Assets 163,433,473
- ---------------------------------------------------------------------------------------------------------
Liabilities
Payable for collateral on securities loaned (Note A) 24,052,200
- ---------------------------------------------------------------------------------------------------------
Payable for securities purchased 542,348
- ---------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 166,518
- ---------------------------------------------------------------------------------------------------------
Payable to investment manager-net (Notes A & B) 58,623
- ---------------------------------------------------------------------------------------------------------
Payable to administrator (Note B) 32,211
- ---------------------------------------------------------------------------------------------------------
Accrued expenses and other payables 39,014
- ---------------------------------------------------------------------------------------------------------
Total Liabilities 24,890,914
- ---------------------------------------------------------------------------------------------------------
Net Assets at value $ 138,542,559
- ---------------------------------------------------------------------------------------------------------
Net Assets consist of:
Paid-in capital $ 108,315,631
- ---------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) 168,517
- ---------------------------------------------------------------------------------------------------------
Accumulated net realized gains (losses) on investments 11,625,076
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) in value of investments 18,433,335
- ---------------------------------------------------------------------------------------------------------
Net Assets at value $ 138,542,559
- ---------------------------------------------------------------------------------------------------------
Shares Outstanding ($.001 par value; unlimited shares authorized) 9,367,666
- ---------------------------------------------------------------------------------------------------------
Net Asset Value, offering and redemption price per share $ 14.79
- ---------------------------------------------------------------------------------------------------------
+Securities on loan, at market value:
Unaffiliated issuers $ 23,339,705
- ---------------------------------------------------------------------------------------------------------
*Cost of investments:
Unaffiliated issuers $ 115,283,686
- ---------------------------------------------------------------------------------------------------------
Affiliated issuers 29,356,051
- ---------------------------------------------------------------------------------------------------------
Total cost of investments $ 144,639,737
- ---------------------------------------------------------------------------------------------------------
See Notes to Financial Statements
7
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST FOR THE YEAR ENDED DECEMBER 31, 2004
Statement of Operations
- -----------------------
Regency
Neuberger Berman Advisers Management Trust Portfolio
Investment Income
Income (Note A):
Dividend income-unaffiliated issuers $ 1,035,833
- ---------------------------------------------------------------------------------------------------------
Interest income-unaffiliated issuers 468
- ---------------------------------------------------------------------------------------------------------
Income from securities loaned-affiliated issuer (Note F) 16,614
- ---------------------------------------------------------------------------------------------------------
Income from investments in affiliated issuers (Note F) 47,334
- ---------------------------------------------------------------------------------------------------------
Foreign taxes withheld (1,622)
- ---------------------------------------------------------------------------------------------------------
Total income 1,098,627
- ---------------------------------------------------------------------------------------------------------
Expenses:
Investment management fee (Notes A & B) 501,314
- ---------------------------------------------------------------------------------------------------------
Administration fee (Note B) 273,445
- ---------------------------------------------------------------------------------------------------------
Audit fees 38,406
- ---------------------------------------------------------------------------------------------------------
Custodian fees (Note B) 68,588
- ---------------------------------------------------------------------------------------------------------
Insurance expense 1,712
- ---------------------------------------------------------------------------------------------------------
Legal fees 12,303
- ---------------------------------------------------------------------------------------------------------
Shareholder reports 25,994
- ---------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 24,944
- ---------------------------------------------------------------------------------------------------------
Miscellaneous 1,803
- ---------------------------------------------------------------------------------------------------------
Total expenses 948,509
Investment management fee waived (Note A) (4,060)
Expenses reduced by custodian fee expense offset and commission recapture arrangements (14,910)
- ---------------------------------------------------------------------------------------------------------
(Note B)
- ---------------------------------------------------------------------------------------------------------
Total net expenses 929,539
- ---------------------------------------------------------------------------------------------------------
Net investment income (loss) 169,088
- ---------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers 11,806,350
Foreign currency (141)
- ---------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities 8,698,079
- ---------------------------------------------------------------------------------------------------------
Foreign currency (17)
- ---------------------------------------------------------------------------------------------------------
Net gain (loss) on investments 20,504,271
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations $ 20,673,359
- ---------------------------------------------------------------------------------------------------------
See Notes to Financial Statements
8
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Changes in Net Assets
- ----------------------------------
Regency Portfolio
Neuberger Berman Advisers Management Trust Year Ended December 31,
2004 2003
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss) $ 169,088 $ 27,008
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 11,806,209 1,919,313
- ---------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments 8,698,062 10,999,097
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 20,673,359 12,945,418
- ---------------------------------------------------------------------------------------------------------
Distributions to Shareholders From:
Net investment income (27,438) -
- ---------------------------------------------------------------------------------------------------------
From Fund Share Transactions (Note D):
Proceeds from shares sold 84,655,239 19,790,809
- ---------------------------------------------------------------------------------------------------------
Proceeds from reinvestment of dividends and distributions 27,438 -
- ---------------------------------------------------------------------------------------------------------
Payments for shares redeemed (26,642,845) (1,956,147)
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) from Fund share transactions 58,039,832 17,834,662
- ---------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 78,685,753 30,780,080
Net Assets:
Beginning of year 59,856,806 29,076,726
- ---------------------------------------------------------------------------------------------------------
End of year $ 138,542,559 $ 59,856,806
- ---------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) at end of year $ 168,517 $ 27,008
- ---------------------------------------------------------------------------------------------------------
See Notes to Financial Statements
9
Notes to Financial Statements Regency Portfolio
- -----------------------------------------------
Note A--Summary of Significant Accounting Policies:
1 General: Regency Portfolio (the "Fund") is a separate operating
series of Neuberger Berman Advisers Management Trust (the
"Trust"), a Delaware statutory trust organized pursuant to a
Trust Instrument dated May 23, 1994. The Trust is currently
comprised of eleven separate operating series (each a "Series,"
collectively, the "Funds") each of which (except Focus Portfolio)
is diversified. The Trust is registered as an open-end management
investment company under the Investment Company Act of 1940, as
amended (the "1940 Act"), and its shares are registered under the
Securities Act of 1933, as amended. The Fund currently offers
only Class I shares. The Board of Trustees of the Trust (the
"Board") may establish additional series or classes of shares
without the approval of shareholders.
The assets of each Series belong only to that Series, and the
liabilities of each Series are borne solely by that Series and no
other.
The preparation of financial statements in accordance with U.S.
generally accepted accounting principles requires Neuberger
Berman Management Inc. ("Management") to make estimates and
assumptions at the date of the financial statements. Actual
results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as
indicated in the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund
are maintained in U.S. dollars. Foreign currency amounts are
translated into U.S. dollars using the exchange rate as of 12:00
noon, Eastern time, to determine the value of investments, other
assets and liabilities. Purchase and sale prices of securities,
and income and expenses, are translated into U.S. dollars at the
prevailing rate of exchange on the respective dates of such
transactions. Net unrealized foreign currency gain (loss) arises
from changes in the value of assets and liabilities, other than
investments in securities, as a result of changes in exchange
rates and is stated separately in the Statement of Operations.
4 Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Dividend income
is recorded on the ex-dividend date or, for certain foreign
dividends, as soon as the Fund becomes aware of the dividends.
Non-cash dividends included in dividend income, if any, are
recorded at the fair market value of the securities received.
Interest income, including accretion of original issue discount,
where applicable, and accretion of discount on short-term
investments, is recorded on the accrual basis. Realized gains and
losses from securities transactions and foreign currency
transactions, if any, are recorded on the basis of identified
cost and stated separately in the Statement of Operations.
5 Income tax information: The Funds are treated as separate
entities for U.S. Federal income tax purposes. It is the policy
of the Fund to continue to qualify as a regulated investment
company by complying with the requirements of Subchapter M of the
Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its earnings to
its shareholders. Therefore, no Federal income or excise tax
provision is required.
10
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities
held by the Fund, timing differences and differing characterization of
distributions made by the Fund as a whole. The Fund may also utilize
earnings and profits distributed to shareholders on redemption of shares as
a part of the dividends paid deduction for income tax purposes.
As determined on December 31, 2004, permanent differences resulting
primarily from different book and tax accounting for foreign currency gains
and losses were reclassified at year end. These reclassifications had no
effect on net income, net assets or net assets per share of the Fund.
The tax character of distributions paid during the years ended December 31,
2004 and December 31, 2003 were as follows:
Distributions Paid From:
Ordinary Income Tax Return of Capital Total
2004 2003 2004 2003 2004 2003
$27,438 $- $- $- $27,438 $-
As of December 31, 2004, the components of distributable earnings
(accumulated losses) on a U.S. Federal income tax basis were as follows:
Undistributed Undistributed Unrealized Loss
Ordinary Long Term Appreciation Carryforwards
Income Gain (Depreciation) and Deferrals Total
$4,449,542 $8,209,001 $17,568,385 $- $30,226,928
The difference between book basis and tax basis distributable earnings is
attributable primarily to timing differences of wash sales.
To the extent the Fund's net realized capital gains, if any, can be offset
by capital loss carryforwards, it is the policy of the Fund not to
distribute such gains. During the year ended December 31, 2004, the Fund
utilized capital loss carryforwards of $65,315.
6 Dividends and distributions to shareholders: The Fund may earn income, net
of expenses, daily on its investments. Income dividends and distributions
from net realized capital gains, if any, generally are distributed in
October. Income dividends and capital gain distributions to shareholders
are recorded on the ex-dividend date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by foreign
tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds.
Expenses directly attributable to a Series are charged to that Series.
Expenses of the Trust that are not directly attributed to a Series are
allocated among the Funds, on the basis of relative net assets, except
where a more appropriate allocation of expenses to each of the Funds can
otherwise be made fairly. Expenses borne by the complex of related
investment companies, which includes open-end and closed-end investment
companies for which Management serves as investment manager, that are not
directly attributed to a Series or the Trust, are allocated among the Fund
and the other investment companies in the complex or series thereof, on the
basis of relative net assets, except where a more appropriate allocation of
expenses to each investment company in the complex or series thereof can
otherwise be made fairly.
11
Notes to Financial Statements Regency Portfolio cont'd
- ------------------------------------------------------
9 Security lending: Pursuant to an Exemptive Order issued by the Securities
and Exchange Commission, the Fund entered into a Securities Lending
Agreement ("Agreement") with Neuberger Berman, LLC ("Neuberger") on April
17, 2003. Securities loans involve certain risks in the event a borrower
should fail financially, including delays or inability to recover the lent
securities or foreclose against the collateral. The investment manager,
under the general supervision of the Board, monitors the creditworthiness
of the parties to whom the Fund makes security loans. The Fund will not
lend securities on which covered call options have been written, or lend
securities on terms which would prevent the Fund from qualifying as a
regulated investment company. The Fund receives cash collateral equal to at
least 102% of the current market value of the loaned securities. The Fund
invests the cash collateral in the N&B Securities Lending Quality Fund, LLC
("Quality Fund"), which is managed by State Street Bank and Trust Company
("State Street") pursuant to guidelines approved by the Trust's investment
manager. Neuberger guaranteed a certain amount of revenue to the Fund under
the Agreement, and received a portion of any revenue earned in excess of
the guaranteed amount as a lending agency fee.
The Agreement has been renewed and approved by the Board as of July 1, 2004
with substantially the same terms. Under this current Agreement, Neuberger
guarantees a certain amount of revenue to the Fund and receives any revenue
earned in excess of the guaranteed amount as a lending agency fee. For the
year ended December 31, 2004, Neuberger received $10,765 under the
Agreement. Income earned on the securities loaned, if any, is reflected in
the Statement of Operations under the caption Income from securities
loaned-affiliated issuer.
In February of 2005, it is likely that the Fund will change the collateral
investment vehicle from the Quality Fund, managed by State Street, to a
fund managed by Lincoln Capital, an affiliate, as approved by the Board.
10 Repurchase agreements: The Fund may enter into repurchase agreements with
institutions that the Fund's investment manager has determined are
creditworthy. Each repurchase agreement is recorded at cost. The Fund
requires that the securities purchased in a repurchase agreement be
transferred to the custodian in a manner sufficient to enable the Fund to
assert a perfected security interest in those securities in the event of a
default under the repurchase agreement. The Fund monitors, on a daily
basis, the value of the securities transferred to ensure that their value,
including accrued interest, is greater than amounts owed to the Fund under
each such repurchase agreement.
11 Transactions with other funds managed by Neuberger Berman Management Inc.:
Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the Fund may invest in the Neuberger Berman Institutional Cash
Fund (the "Cash Fund") and the Neuberger Berman Prime Money Fund ("Prime
Money"), affiliated funds, which are managed by Management and have the
same Board members as the Fund. The Cash Fund and Prime Money each seeks to
provide as high a level of current income as is consistent with the
preservation of capital and the maintenance of liquidity. For any cash that
the Fund invests in the Cash Fund or Prime Money, Management waives a
portion of its management fee equal to the management fee it receives from
the Cash Fund or Prime Money on those assets. For the year ended December
31, 2004, management fees waived amounted to $4,000 and $60 for the Cash
Fund and Prime Money, respectively. For the year ended December 31, 2004,
income earned on the investments of
6 12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
the Cash Fund and Prime Money amounted to $45,933 and $1,401, respectively,
and is reflected in the Statement of Operations under the caption Income
from investments in affiliated issuers.
12 Indemnifications: Like many other companies, the Trust's organizational
documents provide that its officers and trustees are indemnified against
certain liabilities arising out of the performance of their duties to the
Trust. In addition, both in some of its principal service contracts and in
the normal course of its business, the Trust enters into contracts that
provide indemnifications to other parties for certain types of losses or
liabilities. The Trust's maximum exposure under these arrangements is
unknown as this could involve future claims against the Trust.
Note B--Management Fees, Administration Fees, Distribution Arrangements,
and Other Transactions With Affiliates:
Fund shares are issued and redeemed in connection with investments in and
payments under certain variable annuity contracts and variable life
insurance policies issued through separate accounts of life insurance
companies and are also offered directly to qualified pension and retirement
plans.
The Fund retains Management as its investment manager under a Management
Agreement. For such investment management services, the Fund pays
Management a fee at the annual rate of 0.55% of the first $250 million of
the Fund's average daily net assets, 0.525% of the next $250 million, 0.50%
of the next $250 million, 0.475% of the next $250 million, 0.45% of the
next $500 million, 0.425% of the next $2.5 billion, and 0.40% of average
daily net assets in excess of $4 billion.
The Fund retains Management as its administrator under an Administration
Agreement. The Fund pays Management an administration fee at the annual
rate of 0.30% of its average daily net assets under this agreement.
Additionally, Management retains State Street as its sub-administrator
under a Sub-Administration Agreement. Management pays State Street a fee
for all services received under this agreement.
The Board adopted a non-fee distribution plan for the Fund.
Management has contractually undertaken through December 31, 2008 to
reimburse the Fund for its operating expenses (including the fees payable
to Management but excluding interest, taxes, brokerage commissions,
extraordinary expenses, and transaction costs) ("Operating Expenses") which
exceed, in the aggregate, 1.50% per annum of the Fund's average daily net
assets (the "Expense Limitation"). For the year ended December 31, 2004, no
reimbursement to the Fund was required. The Fund has agreed to repay
Management through December 31, 2011 for its excess Operating Expenses
previously reimbursed by Management, so long as its annual Operating
Expenses during that period do not exceed its Expense Limitation, and the
repayment is made within three years after the year in which Management
issued the reimbursement. During the year ended December 31, 2004, there
was no reimbursement to Management under this agreement. At December 31,
2004, the Fund has no contingent liability to Management under this
agreement.
13
Notes to Financial Statements Regency Portfolio cont'd
- ------------------------------------------------------
On October 31, 2003, Management and Neuberger, a member firm of the New
York Stock Exchange and sub-adviser to the Fund, became indirect
wholly-owned subsidiaries of Lehman Brothers Holdings Inc. ("Lehman"), a
publicly-owned holding company. Neuberger is retained by Management to
furnish it with investment recommendations and research information without
added cost to the Fund. Several individuals who are officers and/or
Trustees of the Trust are also employees of Neuberger and/or Management.
On July 1, 2003, the Fund entered into a commission recapture program,
which enables it to pay some of its operational expenses by recouping a
portion of the commissions it pays to a broker that is not a related party
of the Fund. Expenses paid through this program may include costs of
custodial, transfer agency or accounting services. For the year ended
December 31, 2004, the impact of this arrangement was a reduction of
expenses of $14,584.
The Fund has an expense offset arrangement in connection with its custodian
contract. For the year ended December 31, 2004, the impact of this
arrangement was a reduction of expenses of $326.
Note C--Securities Transactions:
During the year ended December 31, 2004, there were purchase and sale
transactions (excluding short-term securities) of $116,985,606 and
$60,794,331, respectively.
During the year ended December 31, 2004, brokerage commissions on
securities transactions amounted to $243,004, of which Neuberger received
$95, Lehman received $44,878, and other brokers received $198,031.
Note D--Fund Share Transactions:
Share activity for the years ended December 31, 2004 and December 31, 2003
was as follows:
For the Year Ended December 31,
2004 2003
Shares Sold 6,495,897 1,897,693
Shares Issued on Reinvestment of
Dividends and Distributions 2,128 -
Shares Redeemed (2,081,049) (214,566)
---------- ---------
Total 4,416,976 1,683,127
---------- ---------
14
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Note E--Line of Credit:
At December 31, 2004, the Fund was a participant in a single committed,
unsecured $150,000,000 line of credit with State Street, to be used only
for temporary or emergency purposes. Interest is charged on borrowings
under this agreement at the overnight Federal Funds Rate plus 0.50% per
annum. A facility fee of 0.10% per annum of the available line of credit is
charged, of which the Fund has agreed to pay its pro rata share, based on
the ratio of its individual net assets to the net assets of all
participants at the time the fee is due and payable. The fee is paid
quarterly in arrears. No compensating balance is required. Other investment
companies managed by Management also participate in this line of credit on
the same terms. Because several investment companies participate, there is
no assurance that the Fund will have access to all or any part of the
$150,000,000 at any particular time. The Fund had no loans outstanding
pursuant to this line of credit at December 31, 2004, nor had the Fund
utilized this line of credit at any time prior to that date.
Note F--Investments in Affiliates*:
Income from
Investments
Balance of Gross Balance of in Affiliated
Shares Held Purchases Gross Shares Held Value Issuers
December 31, and Sales and December 31, December 31, Included in
Name of Issuer 2003 Additions Reductions 2004 2004 Total Income
N&B Securities Lending
Quality Fund, LLC** 2,773,000 3,021,908,300 3,000,629,100 24,052,200 $24,052,200 $16,614
Neuberger Berman
Institutional Cash Fund
Trust Class*** 3,176,667 68,227,148 71,403,815 - - 45,933
Neuberger Berman
Prime Money Fund
Trust Class*** - 6,144,287 840,436 5,303,851 5,303,851 1,401
--------- ------
Total $29,356,051 $63,948
=========== =======
* Affiliated issuers, as defined in the 1940 Act, include issuers in which
the Fund held 5% or more of the outstanding voting securities.
** The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans. The Fund's shares in the
Quality Fund are non-voting. However, because all shares of the Quality
Fund are held by funds in the related investment management complex, the
Quality Fund may be considered an affiliate of the Fund.
*** Neuberger Berman Institutional Cash Fund (the "Cash Fund") and Neuberger
Berman Prime Money Fund ("Prime Money") are also managed by Neuberger
Berman Management Inc. and may be considered affiliates since they have the
same officers, Board members, and investment manager as the Fund and
because, at times, the Fund may own 5% or more of the outstanding voting
securities of the Cash Fund or Prime Money, respectively.
15
Financial Highlights Regency Portfolio
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the Financial
Statements.++
Period from
August 22, 2001^
Year Ended December 31, to December 31,
------------------------------------------------------
2004 2003 2002 2001
Net Asset Value, Beginning of Year $ 12.09 $ 8.90 $ 9.97 $ 10.00
-------- ------- ------- -------
Income From Investment Operations:
Net Investment Income (Loss) .02 .01 (.00) .01
Net Gains or Losses on Securities (both realized and unrealized) 2.68 3.18 (1.05) (.04)
-------- ------- ------- -------
Total From Investment Operations 2.70 3.19 (1.05) (.03)
-------- ------- ------- -------
Less Distributions From:
Net Investment Income (.00) - (.01) -
Tax Return of Capital - - (.01) -
-------- ------- ------- -------
Total Distributions (.00) - (.02) -
-------- ------- ------- -------
Net Asset Value, End of Period $ 14.79 $ 12.09 $ 8.90 $ 9.97
-------- ------- ------- -------
Total Return++ +22.36% +35.84% -10.56% -0.30%**
Ratios/Supplemental Data
Net Assets, End of Period (in millions) $ 138.5 $ 59.9 $ 29.1 $ 23.8
Ratio of Gross Expenses to Average Net Assets# 1.04% 1.16% 1.28% 1.50%*
Ratio of Net Expenses to Average Net Assets[sec] 1.02% 1.16% 1.28% 1.50%*
Ratio of Net Investment Income (Loss) to Average Net Assets .19% .07% (.02)% .36%*
Portfolio Turnover Rate 68% 55% 81% 71%
See Notes to Financial Highlights
16
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Financial Highlights Regency Portfolio
++ Total return based on per share net asset value reflects the effects of
changes in net asset value on the performance of the Fund during each
fiscal period and assumes dividends and other distributions, if any, were
reinvested. Results represent past performance and do not guarantee future
results. Current returns may be lower or higher than the performance data
quoted. Investment returns and principal may fluctuate and shares when
redeemed may be worth more or less than original cost. Total return would
have been lower if Management had not reimbursed and/or waived certain
expenses. Total return would have been higher if Management had not
recouped previously reimbursed expenses. The total return information shown
does not reflect charges and other expenses that apply to the separate
account or the related insurance policies, and the inclusion of these
charges and other expenses would reduce the total return for all fiscal
periods shown. Performance data current to the most recent month-end are
available at www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
[sec]After reimbursement of expenses by the administrator. Had the
administrator not undertaken such action, the annualized ratio of net
expenses to average daily net assets would have been:
Period from
August 22, 2001 to
December 31, 2001
1.69%
After reimbursement of expenses previously paid by the administrator. Had
the administrator not been reimbursed, the annualized ratio of net expenses
to average daily net assets would have been:
Year Ended
December 31, 2002
1.23%
After waiver of a portion of the investment management fee. Had the
investment manager not undertaken such action, the annualized ratios of net
expenses to average daily net assets would have been:
Year Ended December 31,
2004 2003
1.02% 1.17%
^ The date investment operations commenced.
++ The per share amounts which are shown have been computed based on the
average number of shares outstanding during each fiscal period.
* Annualized.
** Not annualized.
17
Report of Independent Registered Public Accounting Firm
- -------------------------------------------------------
To the Board of Trustees of
Neuberger Berman Advisers Management Trust and
Shareholders of Regency Portfolio
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Regency Portfolio, one of the series
constituting the Neuberger Berman Advisers Management Trust (the "Trust"), as
of December 31, 2004, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements and financial
highlights. Our procedures included confirmation of securities owned as of
December 31, 2004, by correspondence with the custodian and brokers or other
appropriate auditing procedures where replies from brokers were not received.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Regency Portfolio of Neuberger Berman Advisers Management Trust at December 31,
2004, the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and its
financial highlights for each of the periods indicated therein, in conformity
with U.S. generally accepted accounting principles.
/S/ Ernest + Young LLP
Boston, Massachusetts
February 4, 2005
18
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Trustees and Officers (Unaudited)
- ---------------------------------
The following tables set forth information concerning the trustees and officers
of the Trust. All persons named as trustees and officers also serve in similar
capacities for other funds administered or managed by NB Management and
Neuberger Berman. The Statement of Additional Information includes additional
information about fund trustees and is available upon request, without charge,
by calling (800) 877-9700.
Information about the Board of Trustees
- --------------------------------------------------------------------------------
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
John Cannon (74) Trustee since Consultant. Formerly,
2000 Chairman, CDC Investment
Advisers (registered investment
adviser) 1993 to January 1999;
formerly, President and Chief
Executive Officer, AMA
Investment Advisors, an affiliate
of the American Medical
Association.
- --------------------------------------------------------------------------------
Faith Colish (69) Trustee since Counsel, Carter Ledyard &
1984 Millburn LLP (law firm) since
October 2002; formerly,
Attorney-at-Law and President,
Faith Colish, A Professional
Corporation, 1980 to 2002.
- --------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) Trustee since Consultant; Retired President
1989 and Trustee, Teachers Insurance
& Annuity (TIAA) and College
Retirement Equities Fund
(CREF).
- --------------------------------------------------------------------------------
C. Anne Harvey (67) Trustee since Consultant, C. A. Harvey
1998 Associates, since June 2001;
formerly, Director, AARP, 1978
to December 2001.
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside
Name, Age, and Address(1) Trustee Fund Complex by Trustee
- --------------------------------------------------------------------------------
John Cannon (74) 41 Independent Trustee or Director of
three series of Oppenheimer Funds:
Limited Term New York Municipal
Fund, Rochester Fund Municipals,
and Oppenheimer Convertible
Securities Fund, since 1992.
- --------------------------------------------------------------------------------
Faith Colish (69) 41 Director, American Bar Retirement
Association (ABRA) since 1997
(not-for-profit membership
association).
- --------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) 41 None.
- --------------------------------------------------------------------------------
C. Anne Harvey (67) 41 President, Board of Associates to
The National Rehabilitation
Hospital's Board of Directors since
2002; formerly, Member, Individual
Investors Advisory Committee to the
New York Stock Exchange Board
of Directors, 1998 to June 2002;
formerly, Member, American
Savings Education Council's Policy
Board (ASEC), 1998 to 2000;
formerly, Member, Executive
Committee, Crime Prevention
Coalition of America, 1997 to 2000.
- --------------------------------------------------------------------------------
19
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Barry Hirsch (71) Trustee since Attorney-at-Law. Formerly,
2000 Senior Counsel, Loews
Corporation (diversified
financial corporation) May 2002
until April 2003; formerly,
Senior Vice President, Secretary
and General Counsel,
Loews Corporation.
- --------------------------------------------------------------------------------
Robert A. Kavesh (77) Trustee since Marcus Nadler Professor
2000 Emeritus of Finance and
Economics, New York
University Stern School
of Business.
- --------------------------------------------------------------------------------
Howard A. Mileaf (67) Trustee since Retired. Formerly, Vice
1999 President and Special Counsel,
WHX Corporation (holding
company) 1993 to 2001.
- --------------------------------------------------------------------------------
William E. Rulon (72) Trustee since Retired. Formerly, Senior Vice
2000 President, Foodmaker, Inc.
(operator and franchiser of
restaurants) until January 1997.
- --------------------------------------------------------------------------------
Cornelius T. Ryan (73) Trustee since Founding General Partner,
2000 Oxford Partners and Oxford
Bioscience Partners (venture
capital partnerships) and
President, Oxford Venture
Corporation.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- --------------------------------------------------------------------------------
Barry Hirsch (71) 41 None.
- --------------------------------------------------------------------------------
Robert A. Kavesh (77) 41 Director, DEL Laboratories, Inc.
(cosmetics and pharmaceuticals)
since 1978; Director, The Caring
Community (not-for-profit).
- --------------------------------------------------------------------------------
Howard A. Mileaf (67) 41 Director, WHX Corporation
(holding company) since August
2002; Director, Webfinancial
Corporation (holding company)
since December 2002; Director, State
Theatre of New Jersey (not-for-
profit theater) since 2000; formerly,
Director, Kevlin Corporation
(manufacturer of microwave and
other products).
- --------------------------------------------------------------------------------
William E. Rulon (72) 41 Director, Pro-Kids Golf and
Learning Academy (teach golf and
computer usage to "at risk" children)
since 1998; formerly, Director,
Prandium, Inc. (restaurants) from
March 2001 until July 2002.
- --------------------------------------------------------------------------------
Cornelius T. Ryan (73) 41 Director, Capital Cash Management
Trust (money market fund),
Naragansett Insured Tax-Free
Income Fund, Rocky Mountain
Equity Fund, Prime Cash Fund,
several private companies and
QuadraMed Corporation
(NASDAQ).
- --------------------------------------------------------------------------------
20
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Position and
Independent Trustees Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Tom D. Seip (54) Trustee since General Partner, Seip
2000 Investments LP (a private
investment partnership);
formerly, President and CEO,
Westaff, Inc. (temporary
staffing), May 2001 to January
2002; Senior Executive at the
Charles Schwab Corporation
from 1983 to 1999, including
Chief Executive Officer,
Charles Schwab Investment
Management, Inc. and Trustee,
Schwab Family of Funds and
Schwab Investments from
1997 to 1998 and Executive
Vice President-Retail
Brokerage, Charles Schwab
Investment Management from
1994 to 1997.
- --------------------------------------------------------------------------------
Candace L. Straight (57) Trustee since Private investor and consultant
1999 specializing in the insurance
industry; formerly, Advisory
Director, Securitas Capital
LLC (a global private equity
investment firm dedicated to
making investments in the
insurance sector) 1998 to
December 2002.
- --------------------------------------------------------------------------------
Peter P. Trapp (60) Trustee since Regional Manager for Atlanta
1984 Region, Ford Motor Credit
Company since August 1997;
formerly, President, Ford Life
Insurance Company, April 1995
to August 1997.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Fund Complex
Independent Trustees Overseen by Other Directorships Held Outside
Name, Age, and Address(1) Trustee Fund Complex by Trustee
- --------------------------------------------------------------------------------
Tom D. Seip (54) 41 Director, H&R Block, Inc. (financial
services company) since May 2001;
Director, Forward Management, Inc.
(asset management) since 2001;
formerly, Director, General Magic
(voice recognition software) 2001
until 2002; formerly, Director,
E-Finance Corporation (credit
decisioning services) 1999 to 2003;
formerly, Director, Save-Daily.com
(micro investing services) 1999 to
2003; Director, Offroad Capital Inc.
(pre-public internet commerce
company).
- --------------------------------------------------------------------------------
Candace L. Straight (57) 41 Director, The Proformance Insurance
Company (personal lines property
and casualty insurance company)
since March 2004; Director,
Providence Washington (property
and casualty insurance company)
since December 1998; Director,
Summit Global Partners (insurance
brokerage firm) since October 2000.
- --------------------------------------------------------------------------------
Peter P. Trapp (60) 41 None.
- --------------------------------------------------------------------------------
21
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Trustees who are Position and
"Interested Persons" Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Edward I. O'Brien* (76) Trustee since Formerly, Member, Investment
2000 Policy Committee, Edward
Jones 1993 to 2001; President,
Securities Industry Association
("SIA") (securities industry's
representative in government
relations and regulatory
matters at the federal and state
levels) 1974 to 1992; Adviser to
SIA, November 1992 to
November 1993.
- --------------------------------------------------------------------------------
Jack L. Rivkin* (64) President and Executive Vice President and
Trustee since Chief Investment Officer,
December Neuberger Berman Inc.
2002 (holding company) since 2002
and 2003, respectively;
Executive Vice President and
Chief Investment Officer,
Neuberger Berman since
December 2002 and 2003,
respectively; Director and
Chairman, NB Management
since December 2002; formerly,
Executive Vice President,
Citigroup Investments, Inc.
from September 1995 to
February 2002; formerly,
Executive Vice President,
Citigroup Inc. from September
1995 to February 2002.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Fund Complex
"Interested Persons" Overseen by Other Directorships Held Outside
Name, Age, and Address(1) Trustee Fund Complex by Trustee
- --------------------------------------------------------------------------------
Edward I. O'Brien* (76) 41 Director, Legg Mason, Inc. (financial
services holding company) since
1993; formerly, Director, Boston
Financial Group (real estate and tax
shelters) 1993 to 1999.
- --------------------------------------------------------------------------------
Jack L. Rivkin* (64) 41 Director, Dale Carnegie and
Associates, Inc. (private company)
since 1998; Director, Emagin Corp.
(public company) since 1997;
Director, Solbright, Inc. (private
company) since 1998; Director,
Infogate, Inc. (private company)
since 1997; Director, Broadway
Television Network (private
company) since 2000.
- --------------------------------------------------------------------------------
22
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Trustees who are Position and
"Interested Persons" Length of Time
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------
Peter E. Sundman* (45) Chairman of Executive Vice President,
the Board, Neuberger Berman Inc.
Chief (holding company) since 1999;
Executive Head of Neuberger Berman
Officer and Inc.'s Mutual Funds and
Trustee Institutional Business since
since 2000 1999; President and Director,
President NB Management since 1999;
and Chief Executive Vice President,
Executive Neuberger Berman since 1999;
Officer from formerly, Principal, Neuberger
1999 to 2000 Berman from 1997 until 1999;
formerly, Senior Vice President,
NB Management from 1996
until 1999.
- --------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Fund Complex
"Interested Persons" Overseen by Other Directorships Held Outside Fund
Name, Age, and Address(1) Trustee Complex by Trustee
- --------------------------------------------------------------------------------
Peter E. Sundman* (45) 41 Director and Vice President,
Neuberger & Berman Agency, Inc.
since 2000; formerly, Director,
Neuberger Berman Inc. (holding
company) from October 1999
through March 2003; Trustee,
Frost Valley YMCA.
- --------------------------------------------------------------------------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the Trust's Trust Instrument, each Trustee shall hold office
for life or until his or her successor is elected or the Trust terminates;
except that (a) any Trustee may resign by delivering a written resignation;
(b) any Trustee may be removed with or without cause at any time by a
written instrument signed by at least two-thirds of the other Trustees; (c)
any Trustee who requests to be retired, or who has become unable to serve,
may be retired by a written instrument signed by a majority of the other
Trustees; and (d) any Trustee may be removed at any shareholder meeting by
a vote of at least two-thirds of the outstanding shares.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
(4) Retired (effective the close of business December 31, 2004).
* Indicates a trustee who is an "interested person" within the meaning of the
1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of the Trust by
virtue of the fact that they are officers and/or directors of NB Management
and Executive Vice Presidents of Neuberger Berman. Mr. O'Brien is an
interested person of the Trust by virtue of the fact that he is a director
of Legg Mason, Inc., a wholly owned subsidiary of which, from time to time,
serves as a broker or dealer to the Funds and other funds for which NB
Management serves as investment manager.
23
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Information about the Officers of the Trust
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- -----------------------------------------------------------------------------------------------------------------------
Claudia A. Brandon (48) Secretary since 1985 Vice President-Mutual Fund Board Relations,
NB Management since 2000; Vice President, Neuberger
Berman since 2002 and employee since 1999; formerly,
Vice President, NB Management from 1986 to 1999;
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (four since 2002, three since 2003, and four
since 2004).
Philip R. Carroll (70) Chief Compliance Officer Vice President, Neuberger Berman since 2002; Associate
since 2004 General Counsel, Neuberger Berman since 2001; Director-
Mutual Fund Compliance, NB Management since 1995;
Chief Legal Officer, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (ten since 2003 and four since
2004); Chief Compliance Officer, fourteen registered
investment companies for which NB Management acts
as investment manager and administrator (fourteen since
2004) and Lehman Brothers/First Trust Income
Opportunity Fund.
Robert Conti (48) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003,
formerly, Vice President, Neuberger Berman from 1999
until 2003; Senior Vice President, NB Management since
2000; formerly, Controller, NB Management until 1996;
formerly, Treasurer, NB Management from 1996 until
1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Brian J. Gaffney (51) Vice President since 2000 Managing Director, Neuberger Berman since 1999;
Senior Vice President, NB Management since 2000;
formerly, Vice President, NB Management from 1997
until 1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Sheila R. James (39) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1991 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
24
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- --------------------------------------------------------------------------------------------------------------------------
Kevin Lyons (49) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1993 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (ten since 2003 and four since 2004).
John M. McGovern (34) Assistant Treasurer since 2002 Vice President, Neuberger Berman since January 2004;
Employee, NB Management since 1993; Assistant
Treasurer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
Barbara Muinos (46) Treasurer and Principal Financial Vice President, Neuberger Berman since 1999; formerly,
and Accounting Officer since 2002; Assistant Vice President, NB Management from 1993 to
prior thereto, Assistant Treasurer 1999; Treasurer and Principal Financial and Accounting
since 1996 Officer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004); formerly, Assistant Treasurer, three registered
investment companies for which NB Management acts
as investment manager and administrator from 1996
until 2002.
Frederic B. Soule (58) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003;
formerly, Vice President, Neuberger Berman from 1999
until 2003; formerly, Vice President, NB Management
from 1995 until 1999; Vice President, fourteen registered
investment companies for which NB Management acts as
investment manager and administrator (three since 2000,
four since 2002, three since 2003, and four since 2004).
- -------------
(1) The business address of each listed person is 605 Third Avenue, New York,
New York 10158.
(2) Pursuant to the By-Laws of the Trust, each officer elected by the Trustees
shall hold office until his or her successor shall have been elected and
qualified or until his or her earlier death, inability to serve, or
resignation. Officers serve at the pleasure of the Trustees and may be
removed at any time with or without cause.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
25
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available, without
charge, by calling 1-800-877-9700 (toll-free) and on the website of the
Securities and Exchange Commission, at www.sec.gov. Information regarding how
the Trust voted proxies relating to portfolio securities during the most recent
12-month period ended June 30 will also be available without charge, by calling
1-800-877-9700 (toll-free), on the website of the Securities and Exchange
Commission, at www.sec.gov, and on the Trust's website at www.nb.com.
Quarterly Portfolio Schedule
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange
Commission's website at www.sec.gov and may be reviewed and copied at the
Securities and Exchange Commission's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The information on Form N-Q is available upon request,
without charge, by calling 1-800-877-9700 (toll-free).
26
Annual Report
December 31, 2004
[LOGO]
NEUBERGER BERMAN
A Lehman Brothers Company
Neuberger Berman
Advisers
Management
Trust
- --------------------------------------------------------------------------------
Socially
Responsive
Portfolio[RegTM]
B1017 02/05
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Socially Responsive Portfolio Managers' Commentary
- --------------------------------------------------
Through much of 2004, investors focused on the negatives (Federal Reserve rate
hikes, high oil prices, Iraq, and divisive political rhetoric) instead of the
positives (a healthy economy and strong corporate earnings growth). Then, in
late October investor sentiment abruptly changed. Stocks took off and the
broad-based market indices closed the year with respectable gains. For the year,
the Neuberger Berman AMT Socially Responsive Portfolio outperformed the S&P 500,
but trailed the Russell 1000 Value Index.2
Energy sector holdings had a positive impact on the portfolio's absolute
returns, with exploration and production companies Newfield Exploration and
Cimarex Energy heading our top-ten performance list. Health Care investments
also contributed to returns, with managed care bellwether UnitedHealth Group and
laboratory testing company Quest Diagnostics providing impressive results.
Industrial stocks, including Canadian National Railway and diversified
manufacturer Danaher Group, also excelled. However, Information Technology
holdings including Teradyne, Synopsys, National Instruments and Altera were a
drag on returns.
Our investment approach was evident in 2004, as we reduced our overweight in
Energy, the market's single best performing sector, and increased our exposure
to Information Technology (IT), one of the weaker sectors. We have been cutting
our Energy commitment because we believe that oil and natural gas prices could
weaken more than is generally anticipated. In 2004, energy prices soared as
demand increased due to strong global economic growth and supply disruptions in
Iraq, Venezuela, and the U.S. Japan is reducing its oil dependency by reopening
nuclear plants, and China has three major coal-powered generating plants coming
on line in 2005. Also, drilling activity has finally picked up. Barring
unforeseen events, supply and demand for energy should come into better balance.
As a result, we thought it prudent to sell into strength, and we now have a near
neutral weighting in Energy versus the S&P 500.
In contrast to Energy, the IT sector is once again viewed with dismay by
investors. The perception is that after an exceptional 2003, tech stocks are
once again overpriced and ready for a fall. We disagree. Let's consider the
semiconductor and semiconductor equipment stocks, which declined sharply when
the economy stalled this summer, leaving chip makers with excess inventory. We
believe that this inventory imbalance has largely been worked off due to strong
end-market demand and we note that Intel has announced that it expects wafer
starts to increase in first quarter 2005. If this proves to be an industry-wide
phenomenon, revenues should recover quickly. With the enormous operating
leverage in this business, 2005 earnings could be considerably better than Wall
Street is expecting.
As is our custom, we will detail a portfolio holding that both demonstrates our
investment discipline and is a good corporate citizen. Canadian National Railway
is the most efficient railroad in North America, and is favored by a number of
important developments. For example, as manufacturing continues to move
overseas, the demand for long haul shipping (from the coasts to the heartland)
is likely to increase, helping the railroads. In the shorter term, their
relatively low fuel costs should help railroads gain market share from truckers
vulnerable to currently high energy prices. In addition, Canadian National has
steadily invested in its infrastructure, and has been able to handle increased
demand with few problems, giving it a further pricing advantage. Despite the
stock's excellent performance this year, however, we think there is plenty more
upside. From a socially responsible perspective, we consider railroads
environmentally friendly because they are nearly four times more fuel efficient
than trucks. And Canadian National continues to upgrade its
1
Socially Responsive Portfolio Managers' Commentary cont'd
- ---------------------------------------------------------
fleet to the most fuel efficient models and is deploying "smart" technology to
shut down idling engines.
In closing, we thank our shareholders for sharing our enthusiasm for seeking out
attractive returns by investing in socially responsive companies.
Sincerely,
/s/ARTHUR MORETTI /s/INGRID DYOTT
ARTHUR MORETTI AND INGRID DYOTT
PORTFOLIO CO-MANAGERS
- ---------------------------------------------------------------------------------------
Average Annual Total Return(1)
Socially Responsive Russell 1000 (R)
- ---------------------------------------------------------------------------------------
Portfolio S&P 500(2) Value(2)
- ---------------------------------------------------------------------------------------
1 Year 13.28% 10.87% 16.49%
- ---------------------------------------------------------------------------------------
5 Year 4.25% (2.30%) 5.27%
- ---------------------------------------------------------------------------------------
Life of Fund 6.16% 1.34% 6.05%
- ---------------------------------------------------------------------------------------
Inception Date 02/18/1999
Performance data quoted represent past performance, which is no guarantee of
future results. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed may be worth more or less
than their original cost. Results are shown on a "total return" basis and
include reinvestment of all dividends and capital gain distributions.
Current performance may be lower or higher than the performance data quoted. For
performance data current to the most recent month end, please visit www.nb.com/
performance.
Comparison of a $10,000 Investment
Socially Responsive Russell 1000 (R)
- -------------------------------------------------------------------------------------
Portfolio S&P 500 Value
- -------------------------------------------------------------------------------------
2/18/1999 $ 10,000 $ 10,000 $ 10,000
- -------------------------------------------------------------------------------------
12/31/1999 $ 11,540 $ 12,146 $ 10,925
- -------------------------------------------------------------------------------------
12/31/2000 $ 11,355 $ 11,041 $ 11,691
- -------------------------------------------------------------------------------------
12/31/2001 $ 10,948 $ 9,729 $ 11,038
- -------------------------------------------------------------------------------------
12/31/2002 $ 9,333 $ 7,580 $ 9,324
- -------------------------------------------------------------------------------------
12/31/2003 $ 12,543 $ 9,753 $ 12,124
- -------------------------------------------------------------------------------------
12/31/2004 $ 14,208 $ 10,813 $ 14,124
- -------------------------------------------------------------------------------------
The chart shows the value of a hypothetical $10,000 investment in the Fund over
the past 10 fiscal years, or since the Fund's inception, if it has not operated
for 10 years. The result is compared with benchmarks, which may include a
broad-based market index and/or a narrower index. Please note that market
indexes do not include expenses. All results include the reinvestment of
dividends and capital gain distributions. Results represent past performance and
do not indicate future results. The chart and table do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or the redemption of
Fund shares.
Industry Diversification
(% of Industry Holdings)
Banking & Financial ....................... 3.4%
Business Services ......................... 3.1
Consumer Cyclicals ........................ 2.6
Diversified ............................... 3.2
Energy .................................... 2.2
Financial Services ........................ 6.4
Health Products & Services ................ 7.0
Industrial Gases .......................... 3.4
Insurance ................................. 6.2
Media ..................................... 9.6
Oil & Gas ................................. 5.1
Pharmaceutical ............................ 4.3
Real Estate ............................... 4.0
Technology ................................ 5.9
Technology-Semiconductor .................. 5.7
Technology-Semiconductor Capital
Equipment ............................. 2.6
Telecommunications ........................ 3.4
Transportation ............................ 4.2
Utilities ................................. 2.8
Repurchase Agreements ..................... 14.7
Short-Term Investments .................... 2.9
Liabilities, less cash, receivables and
other assets .......................... (2.7)
Please see Endnotes for additional information.
2
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Endnotes
- --------
1. 13.28%, 4.25% and 6.16% were the average annual total returns for the
1-year, 5-year and since inception (02/18/99) periods ended December
31, 2004. Neuberger Berman Management Inc. ("NBMI") has agreed to
absorb certain expenses of the AMT Portfolios. Without this
arrangement, which is subject to change, the total returns of the
Portfolios would be less. Total return includes reinvestment of
dividends and capital gain distributions. Performance data quoted
represent past performance and the investment return and principal
value of an investment will fluctuate so that the shares, when
redeemed, may be worth more or less than original cost. The
performance information does not reflect fees and expenses of the
insurance companies.
2. The S&P 500 Index is widely regarded as the standard for measuring
large-cap U.S. stock market performance and includes a representative
sample of leading companies in leading industries. The Russell
1000[RegTM] Index measures the performance of the 1,000 largest
companies in the Russell 3000[RegTM] Index (which measures the
performance of the 3,000 largest U.S. companies based on total market
capitalization). The Russell 1000 Index represents approximately 92%
of the total market capitalization of the Russell 3000 Index. The
Russell 1000 Value Index measures the performance of those Russell
1000 companies with lower price-to-book ratios and lower forecasted
growth values. Please note that indices do not take into account any
fees and expenses of investing in the individual securities that they
track, and that individuals cannot invest directly in any index. Data
about the performance of these indices are prepared or obtained by
NBMI and include reinvestment of all dividends and capital gain
distributions. The Portfolio may invest directly in many securities
not included in the above-described indices.
The investments for the Portfolio are managed by the same portfolio
manager(s) who manage one or more other mutual funds that have similar
names, investment objectives and investment styles as the Portfolio.
You should be aware that the Portfolio is likely to differ from the
other mutual funds in size, cash flow pattern and tax matters.
Accordingly, the holdings and performance of the Portfolio can be
expected to vary from those of the other mutual funds.
The composition, industries and holdings of the Portfolio are subject
to change.
Shares of the separate Portfolios of Neuberger Berman Advisers
Management Trust are sold only through the currently effective
prospectus and are not available to the general public. Shares of this
Portfolio may be purchased only by life insurance companies to be used
with their separate accounts that fund variable annuity and variable
life insurance policies and by qualified pension and retirement plans.
(C) 2005 Neuberger Berman Management Inc., distributor. All rights
reserved.
3
Information About Your Fund's Expenses
- --------------------------------------
This table is designed to provide information regarding costs related to your
investments. All mutual funds incur operating expenses, which include management
fees, administrative services and shareholder reports among others. The
following example is based on an investment of $1,000 made at the beginning of
the period shown and held for the entire period. The table illustrates the
fund's costs in two ways:
Actual Expenses: The first section
of the table provides
information about actual
account values and actual
expenses in dollars. You
may use the information in
this line, together with
the amount you invested, to
estimate the expenses you
paid over the period.
Hypothetical Example for Comparison Purposes: The second
section of the table
provides information about
hypothetical account values
and hypothetical expenses
based on the Fund's actual
expense ratio and an
assumed rate of return at
5% per year before
expenses. This return is
not the Fund's actual
return. The hypothetical
account values and expenses
may not be used to estimate
the actual ending account
balance or expenses you
paid for the period. You
may use this information to
compare the ongoing costs
of investing in this Fund
versus other funds.
To do so, compare this 5%
hypothetical example with
the 5% hypothetical
examples that appear in the
shareholder reports of
other funds.
Expense Information As of 12/31/04 (Unaudited)
- ----------------------------------------------
Neuberger Berman Advisers Management Trust Socially Responsive Portfolio
- ------------------------------------------------------------------------
Beginning Ending Expenses Paid
Actual Account Value Account Value During the Period*
Class I $1,000 $ 1,111.20 $ 6.85
Hypothetical (5% annual return before expenses)**
Class I $1,000 $ 1,018.65 $ 6.55
* Expenses are equal to the expense ratio for the class, multiplied by the
average account value over the period, multiplied by 184/366 (to reflect
the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying
the number of days in the most recent half year divided by 366.
4
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Schedule of Investments Socially Responsive Portfolio
- -----------------------------------------------------
Number of Shares Market Value+
Common Stocks (85.1%)
Banking & Financial (3.4%)
15,025 State Street $ 738,028
Business Services (3.1%)
13,835 Manpower Inc. 668,231
Consumer Cyclicals (2.6%)
10,875 Target Corp. 564,739
Diversified (3.2%)
11,950 Danaher Corp. 686,049\P
Energy (2.2%)
8,060 BP PLC ADR 470,704
Financial Services (6.4%)
4,775 Ambac Financial Group 392,171
7,885 Citigroup Inc. 379,899
5,950 Goldman Sachs 619,038
------------
1,391,108
Health Products & Services (7.0%)
7,325 Quest Diagnostics 699,904
9,395 UnitedHealth Group 827,042
------------
1,526,946
Industrial Gases (3.4%)
16,700 Praxair, Inc. 737,305
Insurance (6.2%)
1,930 Progressive Corp. 163,741
7,800 RenaissanceRe Holdings 406,224
18,650 Willis Group Holdings 767,821
------------
1,337,786
Media (9.6%)
14,325 Comcast Corp. Class A
Special 470,433*
83,632 Liberty Media 918,279*
10,526 Liberty Media International
Class A 486,617*
21,193 UnitedGlobalCom 204,725*
------------
2,080,054
Oil & Gas (5.1%)
9,150 Cimarex Energy 346,785*
12,915 Newfield Exploration 762,631*
------------
1,109,416
Pharmaceutical (4.3%)
4,750 Millipore Corp. 236,598*
13,875 Novartis AG ADR 701,242
------------
937,840
Real Estate (4.0%)
10,625 AMB Property 429,144
12,125 Equity Residential 438,682
------------
867,826
Number of Shares Market Value+
Technology (5.9%)
14,850 Dell Inc. $ 625,779*
23,837 National Instruments 649,558
------------
1,275,337
Technology-Semiconductor (5.7%)
32,300 Altera Corp. 668,610*
23,500 Texas Instruments 578,570
------------
1,247,180
Technology-Semiconductor Capital Equipment (2.6%)
33,500 Teradyne, Inc. 571,845*
Telecommunications (3.4%)
27,200 Vodafone Group ADR 744,736
Transportation (4.2%)
14,837 Canadian National Railway 908,766
Utilities (2.8%)
5,050 National Grid Transco 242,349
39,000 National Grid Transco ADR 370,602
------------
612,951
Total Common Stocks
(Cost $15,237,561) 18,476,847
------------
Principal Amount
Repurchase Agreements (14.7%)
$3,203,000 State Street Bank and Trust
Co., Repurchase Agreement,
1.50%, due 1/3/05, dated
12/31/04, Maturity
Value $3,203,400,
Collateralized by $2,250,000
U.S. Treasury Bonds, 8.88%,
due 2/15/19 (Collateral
Value $3,305,392)
(Cost $3,203,000) 3,203,000#
------------
Short-Term Investments (2.9%)
631,300 N&B Securities Lending
Quality Fund, LLC
(Cost $631,300) 631,300++
------------
Total Investments (102.7%)
(Cost $19,071,861) 22,311,147##
Liabilities, less cash, receivables and
other assets [(2.7%)] (587,452)
------------
Total Net Assets (100.0%) $ 21,723,695
------------
See Notes to Schedule of Investments 5
Notes to Schedule of Investments Socially Responsive Portfolio
- --------------------------------------------------------------
+ Investments in equity securities by Neuberger Berman Advisers Management
Trust Socially Responsive Portfolio (the "Fund") are valued at the latest
sale price where that price is readily available; securities for which no
sales were reported, unless otherwise noted, are valued at the mean between
the closing bid and asked prices. Securities traded primarily on the NASDAQ
Stock Market are normally valued by the Fund at the NASDAQ Official Closing
Price ("NOCP") provided by NASDAQ each business day. The NOCP is the most
recently reported price as of 4:00:02 p.m., Eastern time, unless that price
is outside the range of the "inside" bid and asked prices (i.e., the bid
and asked prices that dealers quote to each other when trading for their
own accounts); in that case, NASDAQ will adjust the price to equal the
inside bid or asked price, whichever is closer. Because of delays in
reporting trades, the NOCP may not be based on the price of the last trade
to occur before the market closes. The Fund values all other securities by
a method the Board of Trustees of Neuberger Berman Advisers Management
Trust (the "Board") believes accurately reflects fair value. Numerous
factors may be considered when determining the fair value of a security,
including available analyst, media or other reports, trading in futures or
ADRs and whether the issuer of the security being fair valued has other
securities outstanding. Foreign security prices are furnished by
independent quotation services and expressed in local currency values.
Foreign security prices are translated from the local currency into U.S.
dollars using the exchange rate as of 12:00 noon, Eastern time. The Board
has approved the use of FT Interactive Data Corporation ("FT Interactive")
to assist in determining the fair value of the Fund's foreign equity
securities in the wake of certain significant events. When changes in the
value of a certain index suggest that the closing prices on the foreign
exchanges may no longer represent the amount that the Fund could expect to
receive for those securities, FT Interactive will provide adjusted prices
for certain foreign equity securities based on an analysis showing
historical correlations between the prices of those securities and changes
in the index. In the absence of precise information about the market values
of these foreign securities as of the close of the New York Stock Exchange,
the Board has determined on the basis of available data that prices
adjusted in this way are likely to be closer to the prices the Fund could
realize on a current sale than are the prices of those securities
established at the close of the foreign markets in which the securities
primarily trade. However, fair value prices are necessarily estimates, and
there is no assurance that such a price will be at or close to the price at
which the security next trades. Short-term debt securities with less than
60 days until maturity may be valued at cost which, when combined with
interest earned, approximates market value.
# At cost, which approximates market value.
## At December 31, 2004, the cost of investments for U.S. Federal income tax
purposes was $19,113,035. Gross unrealized appreciation of investments was
$3,201,177 and gross unrealized depreciation of investments was $3,065,
resulting in net unrealized appreciation of $3,198,112, based on cost for
U.S. Federal income tax purposes.
* Non-income producing security.
\P All or a portion of this security is on loan (see Note A of Notes to
Financial Statements).
++ The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash the
Fund receives as collateral for securities loans. The Fund's shares in the
Quality Fund are non-voting. However, because all shares of the Quality
Fund are held by funds in the related investment management complex, the
Quality Fund may be considered an affiliate of the Fund (see Notes A & F of
Notes to Financial Statements).
See Notes to Financial Statements 6
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Assets and Liabilities
- -----------------------------------
------------
Socially
Responsive
Neuberger Berman Advisers Management Trust Portfolio
Assets
Investments in securities, at market value*+ (Notes A & F)-see
Schedule of Investments:
- -------------------------------------------------------------------------------------------------
Unaffiliated issuers $ 18,476,847
- -------------------------------------------------------------------------------------------------
Affiliated issuers 631,300
- -------------------------------------------------------------------------------------------------
Repurchase agreements 3,203,000
=================================================================================================
22,311,147
- -------------------------------------------------------------------------------------------------
Cash 972
- -------------------------------------------------------------------------------------------------
Dividends and interest receivable 35,950
- -------------------------------------------------------------------------------------------------
Receivable for securities sold 43,467
- -------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 41,829
- -------------------------------------------------------------------------------------------------
Prepaid expenses and other assets 219
=================================================================================================
Total Assets 22,433,584
=================================================================================================
Liabilities
Payable for collateral on securities loaned (Note A) 631,300
- -------------------------------------------------------------------------------------------------
Payable for securities purchased 24,641
- -------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed 908
- -------------------------------------------------------------------------------------------------
Payable to investment manager (Note B) 8,166
- -------------------------------------------------------------------------------------------------
Payable to administrator (Note B) 2,828
- -------------------------------------------------------------------------------------------------
Accrued expenses and other payables 42,046
=================================================================================================
Total Liabilities 709,889
=================================================================================================
Net Assets at value $ 21,723,695
- -------------------------------------------------------------------------------------------------
Net Assets consist of:
Paid-in capital $ 18,439,310
- -------------------------------------------------------------------------------------------------
Accumulated net realized gains (losses) on investments 45,109
- -------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) in value of investments 3,239,276
=================================================================================================
Net Assets at value $ 21,723,695
=================================================================================================
Shares Outstanding ($.001 par value; unlimited shares authorized) 1,552,920
=================================================================================================
Net Asset Value, offering and redemption price per share $ 13.99
=================================================================================================
+Securities on loan, at market value:
Unaffiliated issuers $ 614,287
===============================================================================================
*Cost of Investments:
Unaffiliated issuers $ 18,440,561
-----------------------------------------------------------------------------------------------
Affiliated issuers 631,300
===============================================================================================
Total cost of investments $ 19,071,861
=================================================================================================
See Notes to Financial Statements 7
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST FOR THE YEAR ENDED DECEMBER 31, 2004
Statement of Operations
- -----------------------
------------
Socially
Responsive
Neuberger Berman Advisers Management Trust Portfolio
Investment Income
Income (Note A):
Dividend income-unaffiliated issuers $ 152,117
- ---------------------------------------------------------------------------------------------------
Interest income 8,660
- ---------------------------------------------------------------------------------------------------
Income from securities loaned-affiliated issues (Note F) 1,216
- ---------------------------------------------------------------------------------------------------
Foreign taxes withheld (6,051)
===================================================================================================
Total income 155,942
===================================================================================================
Expenses:
Investment management fee (Note B) 67,776
- ---------------------------------------------------------------------------------------------------
Administration fee (Note B) 36,968
- ---------------------------------------------------------------------------------------------------
Audit fees 38,315
- ---------------------------------------------------------------------------------------------------
Custodian fees (Note B) 33,872
- ---------------------------------------------------------------------------------------------------
Insurance expense 225
- ---------------------------------------------------------------------------------------------------
Legal fees 1,637
- ---------------------------------------------------------------------------------------------------
Shareholder reports 9,697
- ---------------------------------------------------------------------------------------------------
Trustees' fees and expenses 24,836
- ---------------------------------------------------------------------------------------------------
Miscellaneous 1,555
===================================================================================================
Total expenses 214,881
Expenses reimbursed by administrator (Note B) (54,057)
Expenses reduced by custodian fee expense offset and commission recapture arrangements (1,298)
(Note B)
===================================================================================================
Total net expenses 159,526
===================================================================================================
Net investment income (loss) (3,584)
===================================================================================================
Realized and Unrealized Gain (Loss) on Investments (Note A)
Net realized gain (loss) on:
Sales of investment securities of unaffiliated issuers 237,187
------------------------------------------------------------------------------------------------
Foreign currency (135)
================================================================================================
Change in net unrealized appreciation (depreciation) in value of:
Unaffiliated investment securities 1,747,617
------------------------------------------------------------------------------------------------
Foreign currency (191)
================================================================================================
Net gain (loss) on investments 1,984,478
===================================================================================================
Net increase (decrease) in net assets resulting from operations $1,980,894
===================================================================================================
See Notes to Financial Statements 8
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Statement of Changes in Net Assets
- ----------------------------------
Socially Responsive Portfolio
-----------------------------
Neuberger Berman Advisers Management Trust Year Ended December 31,
2004 2003
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss) $ (3,584) $ (4,833)
- ------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 237,052 75,287
- ------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) of investments 1,747,426 1,736,081
======================================================================================================
Net increase (decrease) in net assets resulting from operations 1,980,894 1,806,535
======================================================================================================
From Fund Share Transactions (Note D):
Proceeds from shares sold 14,077,820 3,210,506
- ------------------------------------------------------------------------------------------------------
Payments for shares redeemed (2,077,105) (2,247,312)
======================================================================================================
Net increase (decrease) from Fund share transactions 12,000,715 963,194
======================================================================================================
Net Increase (Decrease) in Net Assets 13,981,609 2,769,729
Net Assets:
Beginning of year 7,742,086 4,972,357
======================================================================================================
End of year $ 21,723,695 $ 7,742,086
======================================================================================================
Undistributed net investment income (loss) at end of year $ - $ -
======================================================================================================
See Notes to Financial Statements 9
Notes to Financial Statements Socially Responsive Portfolio
- -----------------------------------------------------------
Note A--Summary of Significant Accounting Policies:
1 General: Socially Responsive Portfolio (the "Fund") is a separate
operating series of Neuberger Berman Advisers Management Trust (the
"Trust"), a Delaware statutory trust organized pursuant to a Trust
Instrument dated May 23, 1994. The Trust is currently comprised of
eleven separate operating series (each a "Series," collectively, the
"Funds") each of which (except Focus Portfolio) is diversified. The
Trust is registered as an open-end management investment company under
the Investment Company Act of 1940, as amended (the "1940 Act"), and
its shares are registered under the Securities Act of 1933, as
amended. The Fund currently offers only Class I shares. The Board of
Trustees of the Trust (the "Board") may establish additional series or
classes of shares without the approval of shareholders.
The assets of each Series belong only to that Series, and the
liabilities of each Series are borne solely by that Series and no
other.
The preparation of financial statements in accordance with U.S.
generally accepted accounting principles requires Neuberger
Berman Management Inc. ("Management") to make estimates and
assumptions at the date of the financial statements. Actual
results could differ from those estimates.
2 Portfolio valuation: Investment securities are valued as indicated in
the notes following the Schedule of Investments.
3 Foreign currency translation: The accounting records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars using the exchange rate as of 12:00 noon, Eastern
time, to determine the value of investments, other assets and
liabilities. Purchase and sale prices of securities, and income and
expenses, are translated into U.S. dollars at the prevailing rate of
exchange on the respective dates of such transactions. Net unrealized
foreign currency gain (loss) arises from changes in the value of
assets and liabilities, other than investments in securities, as a
result of changes in exchange rates and is stated separately in the
Statement of Operations.
4 Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Dividend income is recorded on the
ex-dividend date or, for certain foreign dividends, as soon as the
Fund becomes aware of the dividends. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income, including accretion of original
issue discount, where applicable, and accretion of discount on
short-term investments, is recorded on the accrual basis. Realized
gains and losses from securities transactions and foreign currency
transactions, if any, are recorded on the basis of identified cost and
stated separately in the Statement of Operations.
5 Income tax information: The Funds are treated as separate entities for
U.S. Federal income tax purposes. It is the policy of the Fund to
continue to qualify as a regulated investment company by complying
with the requirements of Subchapter M of the Internal Revenue Code
applicable to regulated investment companies and to distribute
substantially all of its earnings to its shareholders. Therefore, no
Federal income or excise tax provision is required.
10
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from
generally accepted accounting principles. These differences are
primarily due to differing treatments of income and gains on various
investment securities held by the Fund, timing differences and
differing characterization of distributions made by the Fund as a
whole. The Fund may also utilize earnings and profits distributed to
shareholders on redemption of shares as a part of the dividends paid
deduction for income tax purposes.
As determined on December 31, 2004, permanent differences resulting
primarily from different book and tax accounting for distributions
from real estate investment trusts, net operating losses and foreign
currency gains and losses, were reclassified at year end. These
reclassifications had no effect on net income, net assets or net
assets per share of the Fund.
As of December 31, 2004, the components of distributable earnings
(accumulated losses) on a U.S. Federal income tax basis were as
follows:
Undistributed Undistributed Unrealized
Ordinary Long Term Appreciation Loss Carryforwards
Income Gain (Depreciation) and Deferrals Total
$ - $93,081 $3,198,101 $(6,797) $3,284,385
The difference between book basis and tax basis distributable earnings
is attributable primarily to timing differences on wash sales, return
of capital distributions from real estate investment trusts, and
post-October losses.
Under current tax law, certain net capital and net foreign currency
losses realized after October 31, 2004 within the taxable year may be
deferred and treated as occurring on the first day of the following
tax year. For the year ended December 31, 2004, the fund elected to
defer $6,797 net capital losses arising between November 1, 2004 and
December 31, 2004.
To the extent the Fund's net realized capital gains, if any, can be
offset by capital loss carryforwards, it is the policy of the Fund not
to distribute such gains.
6 Dividends and distributions to shareholders: The Fund may earn income,
net of expenses, daily on its investments. Income dividends and
distributions from net realized capital gains, if any, generally are
distributed in October. Income dividends and capital gain
distributions to shareholders are recorded on the ex-dividend date.
7 Foreign taxes: Foreign taxes withheld represent amounts withheld by
foreign tax authorities, net of refunds recoverable.
8 Expense allocation: Certain expenses are applicable to multiple funds.
Expenses directly attributable to a Series are charged to that Series.
Expenses of the Trust that are not directly attributed to a Series are
allocated among the Funds, on the basis of relative net assets, except
where a more appropriate allocation of expenses to each of the Funds
can otherwise be made fairly. Expenses borne by the complex of related
investment companies, which includes open-end and closed-end
investment companies for which Management serves as investment
manager, that are not directly attributed to a Series or the Trust,
are allocated among the Fund and the other investment companies in the
complex or series thereof, on the
11
Notes to Financial Statements Socially Responsive Portfolio cont'd
- ------------------------------------------------------------------
basis of relative net assets, except where a more appropriate
allocation of expenses to each investment company in the complex or
series thereof can otherwise be made fairly.
9 Security lending: Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund entered into a Securities
Lending Agreement ("Agreement") with Neuberger Berman, LLC
("Neuberger") on April 17, 2003. Securities loans involve certain
risks in the event a borrower should fail financially, including
delays or inability to recover the lent securities or foreclose
against the collateral. The investment manager, under the general
supervision of the Board, monitors the creditworthiness of the parties
to whom the Fund makes security loans. The Fund will not lend
securities on which covered call options have been written, or lend
securities on terms which would prevent the Fund from qualifying as a
regulated investment company. The Fund receives cash collateral equal
to at least 102% of the current market value of the loaned securities.
The Fund invests the cash collateral in the N&B Securities Lending
Quality Fund, LLC ("Quality Fund"), which is managed by State Street
Bank and Trust Company ("State Street") pursuant to guidelines
approved by the Trust's investment manager. Neuberger guaranteed a
certain amount of revenue to the Fund under the Agreement, and
received a portion of any revenue earned in excess of the guaranteed
amount as a lending agency fee.
The Agreement has been renewed and approved by the Board as of July 1,
2004 with substantially the same terms. Under this current Agreement,
Neuberger guarantees a certain amount of revenue to the Fund and
receives any revenue earned in excess of the guaranteed amount as a
lending agency fee. For the year ended December 31, 2004, Neuberger
received $202 under the Agreement. Income earned on the securities
loaned, if any, is reflected in the Statement of Operations under the
caption Income from securities loaned-affiliated issuer.
In February of 2005, it is likely that the Fund will change the
collateral investment vehicle from the Quality Fund, managed by State
Street, to a fund managed by Lincoln Capital, an affiliate, as
approved by the Board.
10 Repurchase agreements: The Fund may enter into repurchase agreements
with institutions that the Fund's investment manager has determined
are creditworthy. Each repurchase agreement is recorded at cost. The
Fund requires that the securities purchased in a repurchase agreement
be transferred to the custodian in a manner sufficient to enable the
Fund to assert a perfected security interest in those securities in
the event of a default under the repurchase agreement. The Fund
monitors, on a daily basis, the value of the securities transferred to
ensure that their value, including accrued interest, is greater than
amounts owed to the Fund under each such repurchase agreement.
11 Indemnifications: Like many other companies, the Trust's
organizational documents provide that its officers and trustees are
indemnified against certain liabilities arising out of the performance
of their duties to the Trust. In addition, both in some of its
principal service contracts and in the normal course of its business,
the Trust enters into contracts that provide indemnifications to other
parties for certain types of losses or liabilities. The Trust's
maximum exposure under these arrangements is unknown as this could
involve future claims against the Trust.
12
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Note B--Management Fees, Administration Fees, Distribution
Arrangements, and Other Transactions With Affiliates:
Fund shares are issued and redeemed in connection with investments in
and payments under certain variable annuity contracts and variable
life insurance policies issued through separate accounts of life
insurance companies and are also offered directly to qualified pension
and retirement plans.
The Fund retains Management as its investment manager under a
Management Agreement. For such investment management services, the
Fund pays Management a fee at the annual rate of 0.55% of the first
$250 million of the Fund's average daily net assets, 0.525% of the
next $250 million, 0.50% of the next $250 million, 0.475% of the next
$250 million, 0.45% of the next $500 million, 0.425% of the next $2.5
billion, and 0.40% of average daily net assets in excess of $4
billion.
The Fund retains Management as its administrator under an
Administration Agreement. The Fund pays Management an administration
fee at the annual rate of 0.30% of its average daily net assets under
this agreement. Additionally, Management retains State Street as its
sub-administrator under a Sub-Administration Agreement. Management
pays State Street a fee for all services received under this
agreement.
The Board adopted a non-fee distribution plan for the Fund.
Management has contractually undertaken through December 31, 2008 to
reimburse the Fund for its operating expenses (including the fees
payable to Management but excluding interest, taxes, brokerage
commissions, extraordinary expenses, and transaction costs)
("Operating Expenses") which exceed, in the aggregate, 1.50% per annum
of the Fund's average daily net assets (the "Expense Limitation").
Moreover, Management has voluntarily committed to reimburse certain
expenses, as stated above, for an additional 0.20% per annum of the
Fund's average daily net assets to maintain the Fund's Operating
Expenses at 1.30%. Management may, at its sole discretion, terminate
this additional voluntary reimbursement commitment without notice. For
the year ended December 31, 2004, such excess expenses amounted to
$54,057. The Fund has agreed to repay Management through December 31,
2011 for its excess Operating Expenses previously reimbursed by
Management, so long as its annual Operating Expenses during that
period do not exceed its Expense Limitation, and the repayment is made
within three years after the year in which Management issued the
reimbursement. During the year ended December 31, 2004, there was no
reimbursement to Management under this agreement. At December 31,
2004, contingent liabilities to Management under this agreement were
as follows:
Expiring in
2005 2006 2007 Total
$54,400 $57,506 $54,057 $165,963
On October 31, 2003, Management and Neuberger, a member firm of the
New York Stock Exchange and sub-adviser to the Fund, became indirect
wholly-owned subsidiaries of Lehman Brothers Holdings Inc. ("Lehman"),
a publicly-owned holding company. Neuberger is retained by Management
to furnish it with investment recommendations and research information
without added cost to the Fund. Several individuals who are officers
and/or Trustees of the Trust are also employees of Neuberger and/or
Management.
13
Notes to Financial Statements Socially Responsive Portfolio cont'd
- -------------------------------------------------------------------
On July 1, 2003, the Fund entered into a commission recapture program,
which enables it to pay some of its operational expenses by recouping
a portion of the commissions it pays to a broker that is not a related
party of the Fund. Expenses paid through this program may include
costs of custodial, transfer agency or accounting services. For the
year ended December 31, 2004, the impact of this arrangement was a
reduction of expenses of $1,269.
The Fund has an expense offset arrangement in connection with its
custodian contract. For the year ended December 31, 2004, the impact
of this arrangement was a reduction of expenses of $29.
Note C--Securities Transactions:
During the year ended December 31, 2004, there were purchase and sale
transactions (excluding short-term securities) of $11,641,963 and
$2,490,359, respectively.
During the year ended December 31, 2004, brokerage commissions on
securities transactions amounted to $18,896, of which Neuberger
received $0, Lehman received $3,946, and other brokers received
$14,950.
Note D--Fund Share Transactions:
Share activity for the years ended December 31, 2004 and December 31,
2003 was as follows:
For the Year Ended December 31,
2004 2003
Shares Sold 1,089,692 298,458
Shares Redeemed (163,804) (212,199)
---------- ---------
Total 925,888 86,259
---------- ---------
Note E--Line of Credit:
At December 31, 2004, the Fund was a participant in a single
committed, unsecured $150,000,000 line of credit with State Street, to
be used only for temporary or emergency purposes. Interest is charged
on borrowings under this agreement at the overnight Federal Funds Rate
plus 0.50% per annum. A facility fee of 0.10% per annum of the
available line of credit is charged, of which the Fund has agreed to
pay its pro rata share, based on the ratio of its individual net
assets to the net assets of all participants at the time the fee is
due and payable. The fee is paid quarterly in arrears. No compensating
balance is required. Other investment companies managed by Management
also participate in this line of credit on the same terms. Because
several investment companies participate, there is no assurance that
the Fund will have access to all or any part of the $150,000,000 at
any particular time. The Fund had no loans outstanding pursuant to
this line of credit at December 31, 2004, nor had the Fund utilized
this line of credit at any time prior to that date.
14
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Note F--Investments in Affiliates*:
Income
from
Investments
in
Balance of Balance of Affiliated
Shares Shares Issuers
Held Gross Gross Held Value Included
December Purchases Sales and December December in Total
Name of Issuer 31, 2003 and Additions Reductions 31, 2004 31, 2004 Income
N&B Securities Lending
Quality Fund, LLC** 126,900 37,082,915 36,578,515 631,300 $631,300 $1,216
* Affiliated issuers, as defined in the 1940 Act, include issuers in
which the Fund held 5% or more of the outstanding voting securities.
** The N&B Securities Lending Quality Fund, LLC ("Quality Fund") is an
investment vehicle established by the Fund's custodian to invest cash
the Fund receives as collateral for securities loans. The Fund's
shares in the Quality Fund are non-voting. However, because all shares
of the Quality Fund are held by funds in the related investment
management complex, the Quality Fund may be considered an affiliate of
the Fund.
15
Financial Highlights Socially Responsive Portfolio+
- ---------------------------------------------------
The following table includes selected data for a share outstanding throughout
each year and other performance information derived from the Financial
Statements.++
Year Ended December 31,
-----------------------
2004 2003
Net Asset Value, Beginning of Year $ 12.35 $ 9.19
--------- ---------
Income From Investment Operations:
Net Investment Income (Loss) (.00) (.01)
Net Gains or Losses on Securities (both realized and unrealized) 1.64 3.17
--------- ---------
Total From Investment Operations 1.64 3.16
--------- ---------
Less Distributions From:
Net Investment Income - -
Net Capital Gains - -
--------- ---------
Total Distributions - -
--------- ---------
Net Asset Value, End of Year $ 13.99 $ 12.35
--------- ---------
Total Return++ +13.28% +34.39%
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $ 21.7 $ 7.7
Ratio of Gross Expenses to Average Net Assets# 1.31% 1.35%
Ratio of Net Expenses to Average Net Assets[sec] 1.29% 1.34%
Ratio of Net Investment Income (Loss) to Average Net Assets (.03)% (.08)%
Portfolio Turnover Rate 21% 45%
2002 2001 2000
Net Asset Value, Beginning of Year $ 10.78 $ 11.17 $ 11.54
-------- -------- --------
Income From Investment Operations:
Net Investment Income (Loss) (.01) - (.04)
Net Gains or Losses on Securities (both realized and unrealized) (1.58) (.39) (.17)
-------- --------- --------
Total From Investment Operations (1.59) (.39) (.21)
-------- --------- --------
Less Distributions From:
Net Investment Income - - (.03)
Net Capital Gains - - (.13)
-------- --------- --------
Total Distributions - - (.16)
-------- --------- --------
Net Asset Value, End of Year $ 9.19 $ 10.78 $ 11.17
-------- --------- --------
Total Return++ -14.75% -3.58% -1.61%
Ratios/Supplemental Data
Net Assets, End of Year (in millions) $ 5.0 $ 3.6 $ 2.2
Ratio of Gross Expenses to Average Net Assets# 1.52% 1.59% 1.68%
Ratio of Net Expenses to Average Net Assets[sec] 1.51% 1.53% 1.54%
Ratio of Net Investment Income (Loss) to Average Net Assets (.07)% .04% (.33)%
Portfolio Turnover Rate 38% 277% 92%
See Notes to Financial Highlights 16
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Notes to Financial Highlights Socially Responsive Portfolio
- -----------------------------------------------------------
+ The per share amounts and ratios which are shown reflect income and
expenses, including the Fund's proportionate share of AMT Socially
Responsive Investment's income and expenses through April 30, 2000
under the prior master/feeder fund structure.
++ Total return based on per share net asset value reflects the effects
of changes in net asset value on the performance of the Fund during
each fiscal period and assumes dividends and other distributions, if
any, were reinvested. Results represent past performance and do not
guarantee future results. Current returns may be lower or higher
than the performance data quoted. Investment returns and principal
may fluctuate and shares when redeemed may be worth more or less
than original cost. Total return would have been lower if Management
had not reimbursed certain expenses. The total return information
shown does not reflect charges and other expenses that apply to the
separate account or the related insurance policies, and the
inclusion of these charges and other expenses would reduce the total
return for all fiscal periods shown. Performance data current to the
most recent month-end are available at www.nb.com.
# The Fund is required to calculate an expense ratio without taking into
consideration any expense reductions related to expense offset
arrangements.
[sec] After reimbursement of expenses by the administrator. Had the
administrator not undertaken such action, the annualized ratios of net
expenses to average daily net assets would have been:
Year Ended December 31,
2004 2003 2002 2001 2000
1.73% 2.30% 2.87% 4.33% 2.40%
++ The per share amounts which are shown have been computed based
on the average number of shares outstanding during each
fiscal period.
17
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Report of Independent Registered Public Accounting Firm
- -------------------------------------------------------
To the Board of Trustees of
Neuberger Berman Advisers Management Trust and
Shareholders of Socially Responsive Portfolio
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Socially Responsive Portfolio, one of the series
constituting the Neuberger Berman Advisers Management Trust (the "Trust"), as of
December 31, 2004, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of December 31, 2004, by
correspondence with the custodian and brokers or other appropriate auditing
procedures where replies from brokers were not received. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Socially Responsive Portfolio of Neuberger Berman Advisers Management Trust at
December 31, 2004, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then ended,
and its financial highlights for each of the five years in the period then
ended, in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & young LLP
Boston, Massachusetts
February 4, 2005
18
Trustees and Officers (Unaudited)
- ---------------------------------
The following tables set forth information concerning the trustees and officers
of the Trust. All persons named as trustees and officers also serve in similar
capacities for other funds administered or managed by NB Management and
Neuberger Berman. The Statement of Additional Information includes additional
information about fund trustees and is available upon request, without charge,
by calling (800) 877-9700.
Information about the Board of Trustees
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Fund Complex by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
John Cannon (74) Trustee since Consultant. Formerly, 41 Independent Trustee or Director of
2000 Chairman, CDC Investment three series of Oppenheimer Funds:
Advisers (registered investment Limited Term New York Municipal
adviser) 1993 to January 1999; Fund, Rochester Fund Municipals,
formerly, President and Chief and Oppenheimer Convertible
Executive Officer, AMA Investment Securities Fund, since 1992.
Advisors, an affiliate of the
American Medical Association.
- -----------------------------------------------------------------------------------------------------------------------------------
Faith Colish (69) Trustee since Counsel, Carter Ledyard & 41 Director, American Bar Retirement
1984 Millburn LLP (law firm) since Association (ABRA) since 1997
October 2002; formerly, (not-for-profit membership
Attorney-at-Law and President, association).
Faith Colish, A Professional
Corporation, 1980 to 2002.
- -----------------------------------------------------------------------------------------------------------------------------------
Walter G. Ehlers(4) (71) Trustee since Consultant; Retired President 41 None.
1989 and Trustee, Teachers Insurance
& Annuity (TIAA) and College
Retirement Equities Fund
(CREF).
- -----------------------------------------------------------------------------------------------------------------------------------
C.Anne Harvey (67) Trustee since Consultant, C. A. 41 President, Board of Associates to
Harvey 1998 Associates, since June 2001; The National Rehabilitation
formerly, Director, AARP, 1978 to Hospital's Board of Directors since
December 2001. 2002; formerly, Member, Individual
Investors Advisory Committee to the
New York Stock Exchange Board
of Directors, 1998 to June 2002;
formerly, Member, American
Savings Education Council's Policy
Board (ASEC), 1998 to 2000;
formerly, Member, Executive
Committee, Crime Prevention
Coalition of America, 1997 to 2000.
- -----------------------------------------------------------------------------------------------------------------------------------
19
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Fund Complex by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Barry Hirsch (71) Trustee since Attorney-at-Law. Formerly, 41 None.
2000 Senior Counsel, Loews
Corporation (diversified financial
corporation) May 2002 until April
2003; formerly, Senior Vice
President, Secretary and General
Counsel, Loews Corporation.
- -----------------------------------------------------------------------------------------------------------------------------------
Robert A. Kavesh (77) Trustee since Marcus Nadler Professor 41 Director, DEL Laboratories, Inc.
2000 Emeritus of Finance and (cosmetics and pharmaceuticals)
Economics, New York since 1978; Director, The Caring
University Stern School Community (not-for-profit).
of Business.
- -----------------------------------------------------------------------------------------------------------------------------------
Howard A. Mileaf (67) Trustee since Retired. Formerly, Vice 41 Director, WHX Corporation
1999 President and Special Counsel, (holding company) since August
WHX Corporation (holding company) 2002; Director, Webfinancial
1993 to 2001. Corporation (holding company)
since December 2002; Director, State
Theatre of New Jersey (not-for-
profit theater) since 2000; formerly
Director, Kevlin Corporation
(manufacturer of microwave and
other products).
- -----------------------------------------------------------------------------------------------------------------------------------
William E. Rulon (72) Trustee since Retired. Formerly, Senior Vice 41 Director, Pro-Kids Golf and
2000 President, Foodmaker, Inc. Learning Academy (teach golf and
(operator and franchiser of computer usage to "at risk"
restaurants) until January 1997. children) since 1998; formerly,
PDirector, randium, Inc.
(restaurants) from March 2001 until
July 2002.
- -----------------------------------------------------------------------------------------------------------------------------------
Cornelius T. Ryan (73) Trustee since Founding General Partner, 41 Director, Capital Cash Management
2000 Oxford Partners and Oxford Trust (money market fund),
Bioscience Partners (venture Naragansett Insured Tax-Free
capital partnerships) and Income Fund, Rocky Mountain
President, Oxford Venture Equity Fund, Prime Cash Fund,
Corporation. several private companies and
QuadraMed Corporation
(NASDAQ).
- -----------------------------------------------------------------------------------------------------------------------------------
20
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Position and Fund Complex
Independent Trustees Length of Time Overseen by Other Directorships Held Outside
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Fund Complex by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Tom D. Seip (54) Trustee since General Partner, Seip 41 Director, H&R Block, Inc. (financial
2000 Investments LP (a private services company) since May 2001;
investment partnership); formerly, Director, Forward Management, Inc.
President and CEO, Westaff, Inc. (asset management) since 2001;
(temporary staffing), May 2001 to formerly, Director, General Magic
January 2002; Senior Executive at (voice recognition software) 2001
the Charles Schwab Corporation until 2002; formerly, Director,
from 1983 to 1999, including Chief E-Finance Corporation (credit
Executive Officer, Charles Schwab decisioning services) 1999 to 2003;
Investment Management, Inc. and formerly, Director, Save-Daily.com
Trustee, Schwab Family of Funds (micro investing services) 1999 to
and Schwab Investments from 1997 2003; Director, Offroad Capital Inc.
to 1998 and Executive Vice (pre-public internet commerce
President-Retail Brokerage, company).
Charles Schwab Investment
Management from 1994 to 1997.
- -----------------------------------------------------------------------------------------------------------------------------------
Candace L. Straight (57) Trustee since Private investor and consultant 41 Director, The Proformance Insurance
1999 specializing in the insurance Company (personal lines property
industry; formerly, Advisory and casualty insurance company)
Director, Securitas Capital LLC (a since March 2004; Director,
global private equity investment Providence Washington (property
firm dedicated to making and casualty insurance company)
investments in the insurance since December 1998; Director,
sector) 1998 to December 2002. Summit Global Partners (insurance
brokerage firm) since October 2000.
- -----------------------------------------------------------------------------------------------------------------------------------
Peter P. Trapp (60) Trustee since Regional Manager for Atlanta 41 None.
1984 Region, Ford Motor Credit
Company since August 1997;
formerly, President, Ford Life
Insurance Company, April 1995 to
August 1997.
- -----------------------------------------------------------------------------------------------------------------------------------
21
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Position and Fund Complex
"Interested Persons" Length of Time Overseen by Other Directorships Held Outside
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Fund Complex by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Edward I. O'Brien* (76) Trustee since Formerly, Member, Investment 41 Director, Legg Mason, Inc.
2000 Policy Committee, Edward (financial services holding
Jones 1993 to 2001; President, company) since 1993; formerly,
Securities Industry Association Director, Boston Financial Group
("SIA") (securities industry's (real estate and tax shelters)
representative in government 1993 to 1999.
relations and regulatory matters at
the federal and state levels) 1974
to 1992; Adviser to SIA, November
1992 to November 1993.
- -----------------------------------------------------------------------------------------------------------------------------------
Jack L. Rivkin* (64) President and Executive Vice President and 41 Director, Dale Carnegie and
Trustee since Chief Investment Officer, Associates, Inc. (private
December Neuberger Berman Inc. company) since 1998; Director,
2002 (holding company) since 2002 Emagin Corp. (public company)
and 2003, respectively; Executive since 1997; Director, Solbright,
Vice President and Chief Investment Inc. (private company) since
Officer, Neuberger Berman since 1998; Director, Infogate, Inc.
December 2002 and 2003, (private company) since 1997;
respectively; Director and Director, Broadway Television
Chairman, NB Management since Network (private company) since
December 2002; formerly, Executive 2000.
Vice President, Citigroup
Investments, Inc. from September
1995 to February 2002; formerly,
Executive Vice President, Citigroup
Inc. from September 1995 to
February 2002.
- -----------------------------------------------------------------------------------------------------------------------------------
22
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
- -----------------------------------------------------------------------------------------------------------------------------------
Number of
Portfolios in
Trustees who are Position and Fund Complex
"Interested Persons" Length of Time Overseen by Other Directorships Held Outside
Name, Age, and Address(1) Served(2) Principal Occupation(s)(3) Trustee Fund Complex by Trustee
- -----------------------------------------------------------------------------------------------------------------------------------
Peter E. Sundman* (45) Chairman of Executive Vice President, 41 Director and Vice President,
the Board, Neuberger Berman Inc. Neuberger & Berman Agency, Inc.
Chief (holding company) since 1999; since 2000; formerly, Director,
Executive Head of Neuberger Berman Neuberger Berman Inc. (holding
Officer and Inc.'s Mutual Funds and company) from October 1999
Trustee Institutional Business since through March 2003; Trustee,
since 2000 1999; President and Director, Frost Valley YMCA.
President NB Management since 1999;
and Chief Executive Vice President,
Executive Neuberger Berman since 1999;
Officer from formerly, Principal, Neuberger
1999 to 2000 Berman from 1997 until 1999;
formerly, Senior Vice President, NB
Management from 1996 until 1999.
- -----------------------------------------------------------------------------------------------------------------------------------
(1) The business address of each listed person is 605 Third Avenue, New
York, New York 10158.
(2) Pursuant to the Trust's Trust Instrument, each Trustee shall hold
office for life or until his or her successor is elected or the
Trust terminates; except that (a) any Trustee may resign by
delivering a written resignation; (b) any Trustee may be removed
with or without cause at any time by a written instrument signed by
at least two-thirds of the other Trustees; (c) any Trustee who
requests to be retired, or who has become unable to serve, may be
retired by a written instrument signed by a majority of the other
Trustees; and (d) any Trustee may be removed at any shareholder
meeting by a vote of at least two-thirds of the outstanding shares.
(3) Except as otherwise indicated, each individual has held the positions
shown for at least the last five years.
(4) Retired (effective the close of business December 31, 2004).
* Indicates a trustee who is an "interested person" within the meaning
of the 1940 Act. Mr. Sundman and Mr. Rivkin are interested persons of
the Trust by virtue of the fact that they are officers and/or
directors of NB Management and Executive Vice Presidents of Neuberger
Berman. Mr. O'Brien is an interested person of the Trust by virtue of
the fact that he is a director of Legg Mason, Inc., a wholly owned
subsidiary of which, from time to time, serves as a broker or dealer
to the Funds and other funds for which NB Management serves as
investment manager.
23
Trustees and Officers (Unaudited) cont'd
- ----------------------------------------
Information about the Officers of the Trust
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- ----------------------------------------------------------------------------------------------------------------
Claudia A. Brandon (48) Secretary since 1985 Vice President-Mutual Fund Board Relations,
NB Management since 2000; Vice President, Neuberger
Berman since 2002 and employee since 1999; formerly,
Vice President, NB Management from 1986 to 1999;
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (four since 2002, three since 2003, and four
since 2004).
Philip R. Carroll (70) Chief Compliance Officer Vice President, Neuberger Berman since 2002; Associate
since 2004 General Counsel, Neuberger Berman since 2001; Director-
Mutual Fund Compliance, NB Management since 1995; Chief Legal
Officer, fourteen registere dinvestment companies for which
NB Management act as investment manager and administrator (ten
since 2003 and four since 2004); Chief Compliance Officer,
fourteen registered investment companies for which NB Management
acts as investment administrator (fourteen since 2004) and Lehman
Brothers/First Trust Income Opportunity Fund Opportunity Fund.
Robert Conti (48) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003,
formerly, Vice President, Neuberger Berman from 1999
until 2003; Senior Vice President, NB Management since
2000; formerly, Controller, NB Management until 1996;
formerly, Treasurer, NB Management from 1996 until
1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Brian J. Gaffney (51) Vice President since 2000 Managing Director, Neuberger Berman since 1999;
Senior Vice President, NB Management since 2000;
formerly, Vice President, NB Management from 1997
until 1999; Vice President, fourteen registered investment
companies for which NB Management acts as investment
manager and administrator (three since 2000, four since
2002, three since 2003, and four since 2004).
Sheila R. James (39) Assistant Secretary since 2002 Employee, Neuberger Berman since 1999; formerly,
Employee, NB Management from 1991 to 1999; Assistant
Secretary, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
24
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST DECEMBER 31, 2004
Position and
Name, Age, and Address(1) Length of Time Served(2) Principal Occupation(s)(3)
- ----------------------------------------------------------------------------------------------------------------
Kevin Lyons (49) Assistant Secretary since 2003 Employee, Neuberger Berman since 1999; formerly, Employee, NB
Management from 1993 to 1999; Assistant Secretary, fourteen
registered investment companies for which NB Management acts as
investment manager and administrator (ten since 2003 and four since
2004).
John M. McGovern (34) Assistant Treasurer since 2002 Vice President, Neuberger Berman since January 2004;
Employee, NB Management since 1993; Assistant
Treasurer, fourteen registered investment companies for
which NB Management acts as investment manager and
administrator (seven since 2002, three since 2003, and four
since 2004).
Barbara Muinos (46) Treasurer and Principal Financial Vice President, Neuberger Berman since 1999; formerly,
and Accounting Officer since 2002; Assistant Vice President, NB Management from 1993 to
prior thereto,Assistant Treasurer 1999; Treasurer and Principal Financial and Accounting
since 1996 Officer,fourteen registered investment companies for
which NB Management acts as investment
manager and administrator (seven since 2002, three since
2003, and four since 2004); formerly, Assistant
Treasurer, three registered investment companies for
which NB Management acts as investment manager and
administrator from 1996 until 2002.
Frederic B. Soule (58) Vice President since 2000 Senior Vice President, Neuberger Berman since 2003;
formerly, Vice President, Neuberger Berman from 1999
until 2003; formerly, Vice President, NB Management
from 1995 until 1999; Vice President, fourteen registered
investment companies for which NB Management acts as
investment manager and administrator (three since 2000,
four since 2002, three since 2003, and four since 2004).
- -------------
(1) The business address of each listed person is 605 Third Avenue, New
York, New York 10158.
(2) Pursuant to the By-Laws of the Trust, each officer elected by the Trustees
shall hold office until his or her successor shall have been elected and
qualified or until his or her earlier death, inability to serve, or
resignation. Officers serve at the pleasure of the Trustees and may be
removed at any time with or without cause.
(3) Except as otherwise indicated, each individual has held the positions shown
for at least the last five years.
25
Proxy Voting Policies and Procedures
- ------------------------------------
A description of the policies and procedures that the Trust uses to determine
how to vote proxies relating to portfolio securities is available, without
charge, by calling 1-800-877-9700 (toll-free) and on the website of the
Securities and Exchange Commission, at www.sec.gov. Information regarding how
the Trust voted proxies relating to portfolio securities during the most recent
12-month period ended June 30 will also be available without charge, by calling
1-800-877-9700 (toll-free), on the website of the Securities and Exchange
Commission, at www.sec.gov, and on the Trust's website at www.nb.com.
Quarterly Portfolio Schedule
- ----------------------------
The Trust files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. The Trust's Forms N-Q are available on the Securities and Exchange
Commission's website at www.sec.gov and may be reviewed and copied at the
Securities and Exchange Commission's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The information on Form N-Q is available upon request,
without charge, by calling 1-800-877-9700 (toll-free).
26
ITEM 2. CODE OF ETHICS
The Registrant's Board of Trustees ("Board") has adopted a code of ethics that
applies to the Registrant's principal executive officer, principal financial
officer, principal accounting officer or controller, or persons performing
similar functions ("Code of Ethics"). For the period covered by this Form N-CSR,
there were no amendments to the Code of Ethics and there were no waivers from
the Code of Ethics granted to the Registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions.
A copy of the Code of Ethics was included as an exhibit to Registrant's Form
N-CSR filed on February 27, 2004. The Code of Ethics is also available, without
charge, by calling 1-800-877-9700 (toll-free).
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board has determined that the Registrant has two audit committee financial
experts serving on its audit committee. The Registrant's audit committee
financial experts are John Cannon and Walter G. Ehlers. Mr. Cannon and Mr.
Ehlers are both independent trustees as defined by Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) - (d) Aggregate fees billed to the Registrant for the last two fiscal years
for professional services rendered by the Registrant's principal accountants are
listed below. Ernst & Young, LLP ("E&Y") served as the principal accountant for
all series of the Registrant except the High Income Yield Portfolio. Tait,
Weller & Baker ("Tait Weller") served as the principal accountant for the High
Income Yield Portfolio.
For all series of the Registrant except High Income Bond Portfolio (provided by
E&Y):
2004 2003
---------------- ----------------
Audit Fees $312,800 $240,400
Audit-Related Fees 25,000 29,000
Tax Fees 68,000 62,500
All Other Fees -- --
For the High Income Bond Portfolio (provided by Tait Weller):
2004 2003*
------------------ ----------------
Audit Fees $17,500 n/a
Audit-Related Fees -- n/a
Tax Fees 2,500 n/a
All Other Fees -- n/a
* The High Income Bond Portfolio commenced operations on September 15, 2004.
Audit Fees include amounts related to the audit of the Registrant's annual
financial statements and services normally provided by the principal accountant
in connection with statutory and regulatory filings. Audit-Related Fees include
amounts for attest services not required by statute or regulation. Tax Fees
include amounts related to tax compliance, tax planning, and tax advice. All
Other Fees include amounts for products and services not reported in Audit Fees,
Audit-Related Fees and Tax Fees.
(e)(1) The Audit Committee's pre-approval policies and procedures for the
Registrant to engage an accountant to render audit and non-audit services
delegate to the Chair of the Audit Committee the power to pre-approve services
between meetings of the Audit Committee.
(2) No services included in (b) - (d) above were approved pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the preceding
fiscal year by the Registrant's principal accountants for non-audit services
rendered to the Registrant, its investment adviser, and Adviser Affiliate that
provides ongoing services to the Registrant were $260,550 and $353,750,
respectively, for E&Y, and $2,500 and $0, respectively, for Tait
Weller.
(h) All non-audit services rendered in (g) above were pre-approved by the
Registrant's audit committee. Accordingly, non-audit services rendered to the
Registrant's investment adviser and any Adviser Affiliate that were not
pre-approved pursuant to Paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X were considered by the Registrant's audit committee as to whether
they were compatible with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable to the Registrant.
ITEM 6. SCHEDULE OF INVESTMENTS
The complete schedule of investments for each series is disclosed in the
Registrant's Annual Report, which is included as Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-ENDMANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the Registrant.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no changes to the procedures by which shareholders may recommend
nominees to the Board.
ITEM 10. CONTROLS AND PROCEDURES
(a) Based on an evaluation of the disclosure controls and procedures (as
defined in rule 30a-2(c) under the Act) as of a date within 90 days of
the filing date of this report, the Chief Executive Officer and
Treasurer and Principal Financial and Accounting Officer of the
Registrant have concluded that such disclosure controls and procedures
are effectively designed to ensure that information required to be
disclosed by the Registrant is accumulated and communicated to the
Registrant's management to allow timely decisions regarding required
disclosure.
(b) There were no significant changes in the Registrant's internal controls
over financial reporting (as defined in rule 30a-3(d) under the Act)
that occurred during the Registrant's second fiscal half-year that have
materially affected, or are reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 11. EXHIBITS
(a) A copy of the Code of Ethics was included as an exhibit to Registrant's
Form N-CSR filed on February 27, 2004 (Investment Company Act file
number 811-4255) and is incorporated herein by reference.
(a)(2) The certifications required by Rule 30a-2(a) of the Act and Section 302
of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act") are attached
hereto.
(a)(3) Not applicable to the Registrant.
(b) The certification required by Rule 30a-2(b) of the Act and Section 906
of the Sarbanes-Oxley Act is attached hereto.
The certifications provided pursuant to Section 906 of the Sarbanes-Oxley Act
are not deemed "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934 ("Exchange Act"), or otherwise subject to the liability of that section.
Such certifications will not be deemed to be incorporated by reference into any
filing under the Securities Act of 1933 or the Exchange Act, except to the
extent that the Registrant specifically incorporates them by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Neuberger Berman Advisers Management Trust
By: /s/ Peter E. Sundman
------------------------------
Peter E. Sundman
Chief Executive Officer
Date: February 25, 2005
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 E. Sundman
------------------------------
Peter E. Sundman
Chief Executive Officer
Date: February 25, 2005
By: /s/ Barbara Muinos
------------------------------
Barbara Muinos
Treasurer, Principal Financial
and Accounting Officer
Date: February 25, 2005