UAM FUNDS
FUNDS FOR THE INFORMED INVESTORSM
Analytic Funds
Semi-Annual Report June 30, 1999
Analytic Defensive Equity Fund
Analytic Enhanced Equity Fund
Analytic Master Fixed Income Fund
Analytic Short-Term Government Fund
[UAM Logo Omitted]
<PAGE>
UAM FUNDS ANALYTIC FUNDS
June 30, 1999
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Shareholders Letter .................................................... 1
Portfolios of Investments .............................................. 4
Statements of Assets and Liabilities ................................... 19
Statements of Operations ............................................... 20
Statements of Changes in Net Assets .................................... 22
Financial Highlights ................................................... 24
Notes to Financial Statements .......................................... 28
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
JUNE 30, 1999
DEAR FELLOW SHAREHOLDERS:
We are pleased to send you The UAM Analytic Funds Semi-Annual report for
the six-month period ended June 30, 1999. We appreciate your loyalty and
continuing support.
UAM ANALYTIC FUNDS PERFORMANCE
Our two equity mutual funds continued to perform well in the first half of 1999.
The Defensive Equity Fund was up 12.49% for the second quarter, far surpassing
the S&P 500 Index's return of 7.05% and the 9.20% return for the Lipper Equity
Income Funds Average. These strong returns bring the year-to-date return for
the Fund up to 17.08%, again easily beating the S&P 500's 12.38% return and the
Lipper Equity Income Funds Average return of 9.0%.
The Enhanced Equity Fund was nearly as impressive, earning 12.07% for the second
quarter. This also surpassed the S&P 500 Index's return of 7.05% and the
7.10% return for the Lipper Growth Funds Average. These strong returns
bring the year-to-date return for this Fund up to 15.87%, again easily
beating the S&P 500's 12.38% return and the Lipper Growth Funds Average return
of 11.6%.
We believe that the primary reason for the strong performance has been the
resurgence of valuation measures as a determining factor in security prices.
In all three months of the second quarter, measures such as cash flow-to-price
and sales-to-price had great predictive ability in differentiating high
performing stocks from low performing stocks, while measures such as a stock's
price momentum fell out of favor. Since our process currently relies heavily on
these valuation measures and less on the momentum characteristics, we benefited
tremendously from this shift.
We are pleased that both equity funds continue to garner widespread recognition
in the media, including positive articles and high rankings in the Wall Street
Journal, the Boston Globe and Kiplinger, as well as recognition on popular
investment websites such as FOX Market Wire and Microsoft Investor, to name
a few.
Our fixed income funds remain competitive despite continued increases in
interest rates. The Master Fixed Income Fund returned -0.92% for the second
quarter, surpassing the Lehman Government/Corporate Bond Index ("Lehman Index")
return of -1.02%. Year-to-date, the Master Fixed Income Fund returned
- -2.21% vs. -2.27% for the Lehman Index.
The performance of the Master Fixed Income Fund can be attributed to two
factors. First, we believe that corporate bonds will outperform all other bond
sectors over a full market cycle, as they have done historically. To this end,
we have struc-
1
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
tured the Fund to have greater exposure to corporate bonds. Second, through
Analytic's proprietary security selection and optimization process, we believe
we can find and purchase more attractively valued fixed income securities
relative to the market in general.
The Short-Term Government Fund returned -0.17% for the second quarter,
underperforming the Merrill Lynch 1-3 Year Treasury Index return of 0.57%.
Year-to-date the results were mixed, with the Short-Term Government Fund
returning 0.85% vs. 1.18% for the Merrill Lynch 1-3 Year Treasury Index.
The performance of the Short-Term Government Fund can be attributed to the
recent volatility of interest rates. Analytic's investment process involves
forecasting changes in the shape of the yield curve. Over the most recent
periods, these forecasts did not fully anticipate the impact of the Federal
Reserve Board action to increase interest rates during the second quarter of
1999. Despite this short-term deviation, we feel that our process has added
value since its inception and we are confident in our ability to do so
going forward.
We are excited about the potential for growth in the Funds and we thank you
for your continued interest and support in the UAM Analytic Funds.
Sincerely,
/s/ Signature omitted /s/ Signature omitted
Harindra de Silva, Ph.D, CFA Greg McMurran
President/Co-Portfolio Manager Chief Investment Officer
/s/ Signature omitted /s/ Signature omitted /s/ Signature omitted
Bob Bannon, CFA Dennis Bein, CFA Scott Barker
Portfolio Manager Portfolio Manager Portfolio Manager
The investment results presented in the Adviser's letter represent past
performance and should not be construed as a guarantee of future results. A
Portfolio's performance assumes the reinvestment of all dividends and
distributions. There are no assurances that a Portfolio will meet its stated
objectives. 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. A Portfolio's holdings are
subject to change because it is actively managed. Portfolio changes should not
be considered recommendations for action by individual investors.
2
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
DEFINITION OF THE COMPARATIVE INDICES
LEHMAN GOVERNMENT/CORPORATE BOND INDEX is an unmanaged fixed income market
value-weighted index that combines the LEHMAN GOVERNMENT BOND INDEX (an
unmanaged treasury bond index including all public obligations of the U.S.
Treasury, U.S. government agencies and quasi-federal corporation, and corporate
debt guaranteed by the U.S. government, excluding flower bonds and foreign-
targeted issues) and LEHMAN CORPORATE BOND INDEX (an unmanaged index of all
publicly issues, fixed-rate, nonconvertible investment grade domestic corporate
debt.). All issues are investment grade (BBB) or higher, with maturities of
at least one year and outstanding par value of at least $100 million of U.S.
government issues and $25 million for others.
LIPPER EQUITY INCOME FUND AVERAGE is an equally-weighted benchmark composed of
mutual funds, each of which limits its investments to companies that generally
pay regular dividends.
LIPPER GROWTH FUNDS AVERAGE is an equally-weighted benchmark composed of mutual
funds which normally invest in companies whose long-term earnings are expected
to grow significantly faster than the earnings of the stocks represented in the
major unmanaged stock indices.
MERRILL LYNCH 1-3 YEAR TREASURY INDEX is an unmanaged index composed of
U.S. treasuries with an outstanding par of at least $25 million, a fixed
rate coupon greater than 4 1/4, and a maturity ranging between one and
three years.
S&P 500 INDEX is an unmanaged index composed of 400 industrial, 40 financial,
40 utility and 20 transportation stocks.
The comparative indices assume reinvestment of dividends and, unlike a
Portfolio's returns, do not reflect any fees or expenses. If such fees were
reflected in the comparative indices' returns, the performance would have
been lower. Please note that one cannot invest directly in an unmanaged index.
3
<PAGE>
UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 94.0%
MARKET
SHARES VALUE
---------- ----------
AIRLINES -- 0.6%
Delta Air Lines ........................ 7,490 $ 431,611
----------
ALCOHOL -- 0.3%
Anheuser Busch ......................... 2,675 189,758
----------
BANKS -- 5.3%
Citigroup .............................. 38,841 1,844,947
J.P. Morgan ............................ 1,284 180,402
Wells Fargo ............................ 35,524 1,518,651
----------
3,544,000
----------
CHEMICALS -- 3.2%
Dow .................................... 9,202 1,167,504
Monsanto ............................... 24,182 953,678
----------
2,121,182
----------
CLOTHING -- 1.0%
Limited ................................ 14,980 679,717
----------
COMMUNICATIONS/TELEPHONE -- 7.8%
Bell Atlantic .......................... 21,079 1,378,040
BellSouth .............................. 21,186 993,094
GTE .................................... 15,836 1,199,577
MCI WorldCom* .......................... 749 64,461
SBC Communications ..................... 12,412 719,896
US West ................................ 14,980 880,075
----------
5,235,143
----------
COMPUTER HARDWARE -- 5.4%
Cisco Systems* ......................... 11,770 758,429
Dell Computer* ......................... 29,853 1,104,561
EMC* ................................... 3,103 170,665
Gateway* ............................... 9,416 555,544
International Business Machines ....... 3,317 428,722
Sun Microsystems* ...................... 8,132 560,091
----------
3,578,012
----------
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
UAM FUNDS ANALYTIC FUNDS
Defensive Equity Fund
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
MARKET
SHARES VALUE
--------- ----------
COMPUTER SOFTWARE -- 6.9%
Computer Associates International ...... 15,515 $ 853,325
Compuware* ............................. 18,511 588,881
Microsoft* ............................. 23,112 2,084,413
Oracle Systems* ........................ 29,104 1,080,486
----------
4,607,105
----------
DEFENSE AND AEROSPACE -- 0.8%
General Dynamics ....................... 6,206 425,111
TRW .................................... 1,712 93,946
----------
519,057
----------
DEPARTMENT STORES -- 2.8%
Kmart* ................................. 37,129 610,308
Wal-Mart Stores ........................ 25,894 1,249,385
----------
1,859,693
----------
ELECTRIC UTILITIES -- 2.9%
Edison International ................... 35,203 941,680
Pacific Gas & Electric ................. 29,746 966,745
----------
1,908,425
----------
ELECTRICAL EQUIPMENT -- 2.7%
KLA-Tencor* ............................ 8,988 583,096
Lucent Technologies .................... 17,762 1,197,825
----------
1,780,921
----------
ENERGY RESOURCES -- 5.0%
Exxon .................................. 15,301 1,180,090
Mobil .................................. 11,877 1,175,823
Phillips Petroleum ..................... 19,688 990,553
----------
3,346,466
----------
ENTERTAINMENT -- 1.0%
CBS .................................... 15,836 687,876
----------
FINANCIAL SERVICES -- 8.7%
Federal National Mortgage Association . 21,400 1,463,225
General Electric ....................... 28,997 3,276,661
Household International ................ 23,112 1,094,931
----------
5,834,817
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
5
<PAGE>
UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
MARKET
SHARES VALUE
---------- -----------
FOOD & BEVERAGES -- 3.5%
Coca-Cola .............................. 11,663 $ 728,938
General Mills .......................... 10,165 817,012
H.J. Heinz ............................. 3,210 160,901
Unilever NV* (ADR) ..................... 8,774 611,987
----------
2,318,838
----------
FOREST PRODUCTS -- 0.6%
Georgia-Pacific ........................ 8,346 395,392
----------
GAS UTILITIES -- 0.5%
Sempra Energy* ......................... 14,445 326,818
----------
GOLD -- 0.2%
Freeport-McMoran Copper & Gold, Cl B 7,169 128,594
----------
HEAVY MACHINERY -- 0.5%
NACCO Industries, Cl A ................. 4,280 314,580
----------
HOME PRODUCTS -- 2.8%
Corning ................................ 13,803 967,935
Newell Rubbermaid ...................... 18,725 870,713
----------
1,838,648
----------
INDUSTRIAL PARTS -- 1.9%
United Technologies .................... 17,334 1,242,631
----------
INDUSTRIAL SERVICES -- 1.1%
Ryder System ........................... 29,318 762,268
----------
INFORMATION SERVICES -- 0.3%
America Online* ........................ 2,033 224,647
----------
LEISURE & LUXURY -- 0.3%
Eastman Kodak .......................... 3,317 224,727
----------
LIFE INSURANCE -- 3.2%
American General ....................... 15,087 1,137,183
Transamerica ........................... 13,375 1,003,125
----------
2,140,308
----------
MEDIA -- 1.3%
Mediaone Group* ........................ 11,449 851,519
----------
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
MARKET
SHARES VALUE
---------- -----------
MEDICAL PRODUCTS -- 5.1%
Abbott Laboratories .................... 31,886 $ 1,450,813
C.R. Bard .............................. 2,354 112,551
Johnson & Johnson ...................... 18,832 1,845,536
-----------
3,408,900
-----------
MOTOR VEHICLES -- 3.7%
Ford Motor ............................. 24,931 1,407,043
General Motors ......................... 16,371 1,080,486
-----------
2,487,529
-----------
PHARMACEUTICALS -- 6.1%
American Home Products ................. 5,136 295,320
Merck .................................. 18,725 1,385,650
Schering Plough ........................ 20,330 1,077,490
Warner-Lambert ......................... 18,725 1,299,047
-----------
4,057,507
-----------
PROPERTY INSURANCE -- 1.1%
Hartford Financial Services Group ...... 12,091 705,056
-----------
RAILROADS -- 1.3%
Kansas City Southern Industries ........ 12,840 819,353
Union Pacific .......................... 1,284 74,873
-----------
894,226
-----------
RESTAURANTS -- 2.1%
McDonald's ............................. 28,141 1,162,575
Tricon Global Restaurants* ............. 3,959 214,281
-----------
1,376,856
-----------
SEMI CONDUCTORS -- 1.9%
Applied Materials* ..................... 11,770 869,509
Intel .................................. 6,527 388,357
-----------
1,257,866
-----------
SPECIALTY RETAIL -- 0.7%
Home Depot ............................. 7,704 496,427
-----------
TOBACCO -- 1.4%
Philip Morris .......................... 22,791 915,913
-----------
Total Common Stocks
(Cost $55,781,080) .................. 62,693,033
-----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
7
<PAGE>
UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. TREASURY OBLIGATION -- 0.3%
FACE MARKET
AMOUNT VALUE
---------- -----------
<S> <C> <C>
U.S. TREASURY BILL (B) (C)
4.550%, 10/14/99 ............................................. $ 200,000 $ 197,292
-----------
Total U.S. Treasury Obligation
(Cost $197,404) .............................................. 197,292
-----------
SHORT-TERM INVESTMENT -- 7.1%
REPURCHASE AGREEMENT -- 7.1%
J.P. Morgan, 4.95%, Dated 06/30/99, Matures 07/01/99,
Repurchase Price $4,731,853 (Collateralized By U.S. Government
Agency Instruments: Total Market Value $4,825,836)
(Cost $4,731,211) (A) ........................................ 4,731,211 4,731,211
-----------
TOTAL INVESTMENTS -- 101.4%
(Cost $60,709,695) ........................................... 67,621,536
-----------
OTHER ASSETS AND LIABILITIES (NET) -- (1.4%) .................... (931,420)
-----------
NET ASSETS -- 100% .............................................. $66,690,116
===========
INDEX OPTIONS WRITTEN
CONTRACTS
----------
S&P 100 Index July 1999, 685 Call ............................... (50) $ (110,000)
S&P 100 Index September 1999, 700 Call .......................... (25) (75,000)
S&P 500 Index July 1999, 1330 Call .............................. (25) (122,500)
S&P 500 Index July 1999, 1325 Call .............................. (25) (130,000)
S&P 500 Index July 1999, 1350 Call .............................. (50) (170,000)
S&P 500 Index September 1999, 1375 Call ......................... (50) (270,000)
S&P 500 Index September 1999, 1425 Call ......................... (50) (131,250)
-----------
Total Index Options
(Premiums received ($607,281)) ............................... $(1,008,750)
-----------
<FN>
- --------------------------------------------------------------------------------------------
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
(B) THE RATE REFLECTED ON THE PORTFOLIO OF INVESTMENTS REPRESENTS THE SECURITY'S DISCOUNT RATE AT PURCHASE.
(C) SECURITY HAS BEEN PLEDGED AS COLLATERAL FOR OPEN FUTURES POSITIONS.
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8
<PAGE>
UAM FUNDS ANALYTIC FUNDS
ENHANCED EQUITY FUND
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 91.5%
MARKET
SHARES VALUE
---------- ----------
AIRLINES -- 0.7%
Delta Air Lines ............................ 6,337 $ 365,170
----------
ALCOHOL -- 0.2%
Anheuser Busch ............................. 1,574 111,656
----------
BANKS -- 6.7%
Chase Manhattan Bank ....................... 1,781 154,279
Citigroup .................................. 28,117 1,335,557
J.P. Morgan ................................ 5,272 740,716
Wells Fargo ................................ 25,678 1,097,734
----------
3,328,286
----------
CHEMICALS -- 2.8%
Dow ........................................ 5,930 752,369
Monsanto ................................... 15,384 606,706
----------
1,359,075
----------
CLOTHING -- 1.0%
Limited .................................... 10,866 493,045
----------
COMMUNICATIONS/TELEPHONE -- 7.6%
Bell Atlantic .............................. 12,288 803,328
BellSouth .................................. 19,681 922,547
GTE ........................................ 9,360 709,020
MCI WorldCom* .............................. 556 47,851
SBC Communications ......................... 11,459 664,622
US West .................................... 10,010 588,088
----------
3,735,456
----------
COMPUTER HARDWARE -- 5.8%
Cisco Systems* ............................. 6,478 417,426
Dell Computer* ............................. 21,989 813,593
EMC* ....................................... 5,507 302,885
Gateway* ................................... 6,773 399,607
Hewlett Packard ............................ 392 39,396
International Business Machines ........... 2,417 312,397
Sun Microsystems* .......................... 8,147 561,125
----------
2,846,429
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
9
<PAGE>
UAM FUNDS ANALYTIC FUNDS
ENHANCED EQUITY FUND
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
MARKET
SHARES VALUE
---------- ------------
COMPUTER SOFTWARE -- 6.1%
Computer Associates International .......... 11,215 $ 616,825
Compuware* ................................. 13,359 424,983
Microsoft* ................................. 13,353 1,204,274
Oracle Systems* ............................ 21,065 782,038
----------
3,028,120
----------
DEFENSE AND AEROSPACE -- 0.9%
General Dynamics ........................... 5,385 368,872
TRW ........................................ 1,556 85,385
----------
454,257
----------
DEPARTMENT STORES -- 3.5%
Kmart* ..................................... 20,603 338,662
Wal-Mart Stores ............................ 29,195 1,408,659
----------
1,747,321
----------
ELECTRIC UTILITIES -- 2.5%
Edison International ....................... 25,489 681,831
Pacific Gas & Electric ..................... 17,184 558,480
----------
1,240,311
----------
ELECTRICAL EQUIPMENT -- 2.5%
KLA-Tencor* ................................ 902 58,517
Lucent Technologies ........................ 17,501 1,180,224
----------
1,238,741
----------
ENERGY RESOURCES -- 4.8%
Exxon ...................................... 13,324 1,027,613
Mobil ...................................... 7,594 751,806
Phillips Petroleum ......................... 12,151 611,347
----------
2,390,766
----------
ENTERTAINMENT -- 1.1%
CBS ........................................ 12,884 559,649
----------
FINANCIAL SERVICES -- 7.3%
Federal National Mortgage Association ..... 10,036 686,211
General Electric ........................... 18,533 2,094,229
Household International .................... 16,961 803,527
----------
3,583,967
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10
<PAGE>
UAM FUNDS ANALYTIC FUNDS
ENHANCED EQUITY FUND
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
MARKET
SHARES VALUE
---------- ----------
FOOD & BEVERAGES -- 3.9%
Coca-Cola ................................... 5,520 $ 345,000
General Mills ............................... 8,994 722,893
Unilever NV* ................................ 11,978 835,465
----------
1,903,358
----------
FOREST PRODUCTS -- 0.5%
Georgia-Pacific ............................. 4,686 221,999
----------
GAS UTILITIES -- 0.7%
Sempra Energy* .............................. 14,339 324,420
----------
HEAVY MACHINERY -- 0.3%
NACCO Industries, Cl A ...................... 1,862 136,857
----------
HOME PRODUCTS -- 2.7%
Corning ..................................... 9,000 631,125
Newell Rubbermaid ........................... 15,504 720,936
----------
1,352,061
----------
INDUSTRIAL PARTS -- 1.8%
United Technologies ......................... 12,516 897,241
----------
INDUSTRIAL SERVICES -- 1.1%
Ryder System ................................ 21,295 553,670
----------
INFORMATION SERVICES -- 0.4%
America Online* ............................. 1,449 160,114
IMS Health .................................. 1,628 50,875
----------
210,989
----------
LEISURE & LUXURY -- 0.5%
Eastman Kodak ............................... 3,393 229,876
----------
LIFE INSURANCE -- 2.6%
American General ............................ 9,329 703,173
Transamerica ................................ 7,818 586,350
----------
1,289,523
----------
MEDIA -- 1.4%
Mediaone Group* ............................. 9,168 681,870
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
11
<PAGE>
UAM FUNDS ANALYTIC FUNDS
ENHANCED EQUITY FUND
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCKS - CONTINUED
MARKET
SHARES VALUE
---------- --------
MEDICAL PRODUCTS -- 3.9%
Abbott Laboratories ......................... 23,042 $1,048,411
C.R. Bard ................................... 3,564 170,404
Johnson & Johnson ........................... 7,418 726,964
----------
1,945,779
----------
MOTOR VEHICLES -- 3.6%
Ford Motor .................................. 18,056 1,019,035
General Motors .............................. 11,823 780,318
----------
1,799,353
----------
OIL SERVICES -- 0.2%
Royal Dutch Petroleum (ADR) ................. 1,951 117,548
----------
PHARMACEUTICALS -- 7.0%
American Home Products ...................... 20,082 1,154,715
Merck ....................................... 13,913 1,029,562
Schering Plough ............................. 14,419 764,207
Warner-Lambert .............................. 7,055 489,441
----------
3,437,925
----------
PROPERTY INSURANCE -- 1.0%
Hartford Financial Services Group ........... 8,820 514,316
----------
RAILROADS -- 1.7%
Kansas City Southern Industries ............. 9,286 592,563
Union Pacific ............................... 4,234 246,895
----------
839,458
----------
RESTAURANTS -- 1.6%
McDonald's .................................. 14,732 608,616
Tricon Global Restaurants* .................. 3,502 189,546
----------
798,162
----------
SEMI CONDUCTORS -- 1.8%
Applied Materials* .......................... 8,547 631,410
Intel ....................................... 4,429 263,526
----------
894,936
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12
<PAGE>
UAM FUNDS ANALYTIC FUNDS
ENHANCED EQUITY FUND
JUNE 30, 1999 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS - CONTINUED
MARKET
SHARES VALUE
-------- ----------
TOBACCO -- 1.3%
<S> <C> <C>
Philip Morris 15,959 $ 641,352
-----------
TOTAL COMMON STOCKS
(Cost $41,100,787) 45,272,942
-----------
U.S. TREASURY OBLIGATION -- 0.5%
FACE MARKET
AMOUNT VALUE
-------- -----------
U.S. Treasury Bill (B) (C)
4.660%, 10/14/99 .............................................. $ 250,0000 246,615
-----------
TOTAL U.S. TREASURY OBLIGATION
(Cost $246,863) ............................................... 246,615
-----------
SHORT-TERM INVESTMENT -- 7.5%
REPURCHASE AGREEMENT -- 7.5%
J.P. Morgan, 4.95%, Dated 06/30/99, Matures 07/01/99,
Repurchase Price $3,740,270 (Collateralized By U.S. Government
Agency Instruments: Total Market Value $3,814,558)
(Cost $3,739,763) (A) ......................................... 3,739,763 3,739,763
-----------
Total Investments -- 99.5%
(Cost $45,087,413) ............................................ 49,259,320
-----------
OTHER ASSETS AND LIABILITIES (NET) -- 0.5% ....................... 241,801
-----------
NET ASSETS -- 100% ............................................... $49,501,121
===========
- -------------
<FN>
* NON-INCOME PRODUCING SECURITY
(A) TRI-PARTY REPURCHASE AGREEMENT
(B) THE RATE REFLECTED ON THE PORTFOLIO OF INVESTMENTS REPRESENTS THE SECURITY'S DISCOUNT
RATE AT PURCHASE.
(C) SECURITY HAS BEEN PLEDGED AS COLLATERAL FOR OPEN FUTURES POSITIONS.
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
UAM FUNDS ANALYTIC FUNDS
MASTER FIXED INCOME FUND
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
CORPORATE BONDS - 15.6%
FACE MARKET
AMOUNT VALUE
---------- ----------
American Home Products
7.900%, 02/15/05 ............................. $200,000 $ 210,750
First Chicago NBD
6.125%, 02/15/06 ............................. 250,000 238,438
Gillette Company
5.750%, 10/15/05 ............................. 300,000 288,000
GTE California
5.500%, 01/15/09 ............................. 175,000 158,375
----------
(Cost $923,434) ............................ 895,563
----------
INDEX OPTION -- 0.0%
Contracts
----------
S&P 100 Index July 1999, 615 Puts .............. 24 750
----------
TOTAL INDEX OPTION
(Cost $5,196) ............................... 750
----------
U.S. GOVERNMENT AGENCY OBLIGATION -- 8.3%
Face
Amount
----------
Federal National Mortgage Association
6.640%, 07/02/07 ............................. $ 470,000 $ 475,837
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION
(Cost $512,765) .............................. 475,837
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14
<PAGE>
UAM FUNDS ANALYTIC FUNDS
MASTER FIXED INCOME FUND
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 74.9%
<TABLE>
<CAPTION>
FACE MARKET
AMOUNT VALUE
---------- ----------
<S> <C> <C>
U.S. Treasury Bonds
7.250%, 05/15/16 ............................. $ 575,000 $ 632,098
8.875%, 02/15/19 ............................. 150,000 193,046
8.125%, 08/15/19 ............................. 300,000 361,737
U.S. Treasury Notes
7.500%, 02/15/05 ............................. 400,000 429,568
6.500%, 05/15/05 ............................. 100,000 102,819
5.625%, 02/15/06 ............................. 300,000 294,672
6.875%, 05/15/06 ............................. 175,000 184,196
5.625%, 05/15/08 ............................. 200,000 195,830
U.S. Treasury Bills (B)(C)
4.320%, 10/14/99 ............................. 40,000 39,458
4.530%, 03/30/00 ............................. 1,940,000 1,870,839
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $4,440,001) ........................... 4,304,263
-----------
SHORT-TERM INVESTMENT -- 0.5%
REPURCHASE AGREEMENT -- 0.5%
Morgan Stanley, 4.50%, Dated 06/30/99, Matures 07/01/99,
Repurchase Price $32,756 (Collateralized By U.S. Treasury Instruments:
Total Market Value $33,573) (Cost $32,751) (A) 32,751 32,751
-----------
TOTAL INVESTMENTS -- 99.3%
(Cost $5,914,147) ........................... 5,709,164
-----------
OTHER ASSETS AND LIABILITIES (NET) -- 0.7% ..... 39,627
-----------
NET ASSETS -- 100% $ 5,748,791
===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
15
<PAGE>
UAM FUNDS ANALYTIC FUNDS
MASTER FIXED INCOME FUND
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY OPTIONS WRITTEN
MARKET
CONTRACTS VALUE
--------- ---------
Amgen July 1999, 52.5 Puts .......................... (4) $ (100)
Marsh and McLennan July 1999, 75 Puts ............... (7) (1,050)
Monsanto July 1999, 40 Puts ......................... (10) (2,188)
Schlumberger Ltd. Aug 1999, 60 Puts ................. (9) (2,081)
Xerox July 1999, 55 Puts ............................ (5) (437)
--------
TOTAL EQUITY OPTIONS
(Premiums received ($6,031)) ..................... (5,856)
--------
INDEX OPTIONS WRITTEN
GSTI Composite Index July 1999, 280 Puts ............ (3) (563)
Interactive Week Net Index August 1999, 270 Puts .... (2) (2,000)
Morgan Stanley Commodity Index July 1999, 210 Puts .. (10) (2,625)
NYSE Composite Index July 1999, 615 Puts ............ (5) (781)
PHLX OTC Index July 1999, 370 Puts .................. (2) (550)
SEC Broker Dealer Index July 1999, 380 Puts ......... (2) (213)
S&P 100 Index July 1999, 670 Puts ................... (5) (1,281)
S&P 100 Index August 1999, 660 Puts ................. (6) (4,800)
--------
TOTAL INDEX OPTIONS
(Premiums received ($39,137)) .................... $ 12,813)
--------
TOTAL OPTIONS
(Premiums received ($45,168) ..................... $(18,669)
--------
- --------------------------------------------------------------------------------
(A) Tri-Party Repurchase Agreement
(B) THE RATE REFLECTED ON THE PORTFOLIO OF INVESTMENTS REPRESENTS THE
SECURITY'S DISCOUNT RATE AT PURCHASE.
(C) SECURITY HAS BEEN PLEDGED AS COLLATERAL FOR OPEN FUTURE POSITIONS.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
<TABLE>
<CAPTION>
UAM FUNDS ANALYTIC FUNDS
SHORT-TERM GOVERNMENT FUND
JUNE 30, 1999 (UNAUDITED)
- ------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
CORPORATE OBLIGATIONS - 4.3%
FACE MARKET
AMOUNT VALUE
---------- ----------
<S> <C> <C>
Nippon Telephone & Telegraph
6.000%, 06/30/00 ................................... $200,000 $ 200,050
----------
Total Corporate Obligations
(Cost $200,060) ................................... 200,050
----------
FOREIGN BOND -- 6.2%
Shell Canada
8.875%, 01/14/01 ................................... 275,000 287,215
----------
TOTAL FOREIGN BOND
(Cost $296,574) ................................... 287,215
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 34.2%
Federal National Mortgage Association
5.375%, 03/15/02 ................................... 750,000 739,687
Federal National Mortgage Association Medium Term Note
6.180%, 03/15/01 ................................... 750,000 754,357
6.670%, 08/01/01 ................................... 100,000 101,560
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,597,351) ................................. 1,595,604
----------
U.S. TREASURY OBLIGATIONS -- 53.5%
U.S. Treasury Notes
6.000%, 08/15/00 ................................... 100,000 100,671
5.625%, 11/30/00 ................................... 900,000 902,430
5.500%, 12/31/00 ................................... 275,000 275,193
5.375%, 02/15/01 ................................... 400,000 399,448
6.375%, 03/31/01 ................................... 525,000 532,502
6.250%, 01/31/02 ................................... 150,000 152,090
6.625%, 03/31/02 ................................... 100,000 102,311
U.S. Treasury Bill (B)(C)
4.320%, 10/14/99 ................................... 30,000 29,594
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $2,523,332) ................................. 2,494,239
----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</TABLE>
17
<PAGE>
UAM FUNDS ANALYTIC FUNDS
SHORT-TERM GOVERNMENT FUND
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENT -- 1.0%
Face Market
Amount Value
---------- ----------
REPURCHASE AGREEMENT-- 1.0%
<S> <C> <C>
Morgan Stanley, 4.50%, Dated 06/30/99, Matures 07/01/99, Repurchase Price
$48,757 (Collateralized By U.S. Treasury Instruments:
Total Market Value $49,974) (Cost $48,751) (A) .................... $48,751 $ 48,751
-----------
Total Investments -- 99.2%
(Cost $4,666,068) ................................................. 4,625,859
-----------
OTHER ASSETS AND LIABILITIES (NET) -- 0.8% ........................... 38,723
-----------
NET ASSETS -- 100% ................................................... $ 4,664,582
===========
- ---------------------------------------------------------------------------------------------------
<FN>
(A) Tri-Party Repurchase Agreement
(B) The rate reflected on the Portfolio of Investments represents the security's discount rate
at purchase.
(C) Security has been pledged as collateral for open future positions.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18
<PAGE>
UAM FUNDS ANALYTIC FUNDS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS & LIABILITIES
Defensive Enhanced Master Short-Term
Equity Equity Fixed Income Government
Fund Fund Fund Fund
----------- ----------- ------------ --------------
ASSETS
<S> <C> <C> <C> <C>
Investments, at Cost ................. $60,709,695 $45,087,413 $ 5,914,147 $ 4,666,068
----------- ----------- ----------- -----------
Investments, at Value ................ 67,621,536 49,259,320 5,709,164 4,625,859
Dividends and Interest Receivable .... 69,951 53,192 76,173 68,997
Receivable from Advisor .............. -- -- 10,467 12,858
Receivable for Portfolio Shares Sold . 86,819 217,314 23,651 21,863
Receivable for Daily Variation on
Futures Contracts ................. 62,500 81,250 -- --
----------- ----------- ----------- -----------
TOTAL ASSETS ...................... 67,840,806 49,611,076 5,819,455 4,729,577
----------- ----------- ----------- -----------
LIABILITIES
Written Options Outstanding at
Market Value (premiums
received $607,281, $0, $45,168
and $0 respectively) .............. 1,008,750 -- 18,669 --
Payable for Investment Advisory Fees . 31,644 22,882 -- --
Payable for Administration Fees ...... 8,824 6,734 4,398 4,337
Payable for Directors' Fees .......... 3,900 1,574 943 396
Payable for Portfolio Shares Redeemed -- 8,753 549 --
Payable for Daily Variation on
Futures Contracts ................. -- -- 2,594 3,183
Other Liabilities .................... 97,572 70,012 43,511 57,079
----------- ----------- ----------- -----------
TOTAL LIABILITIES ................. 1,150,690 109,955 70,664 64,995
----------- ----------- ----------- -----------
NET ASSETS ........................... 66,690,116 49,501,121 5,748,791 4,664,582
=========== =========== =========== ===========
NET ASSETS CONSIST OF:
Paid-in-Capital ................... 50,485,000 40,311,872 6,143,395 5,514,465
Undistributed Net Investment
Income .......................... 191,697 182,091 1,349 2,908
Accumulated Net Realized
Gain/(Loss) ..................... 9,408,822 4,704,601 (217,403) (806,888)
Unrealized Appreciation/
(Depreciation) .................. 6,604,597 4,302,557 (178,550) (45,903)
----------- ----------- ----------- -----------
NET ASSETS ........................... 66,690,116 $49,501,121 5,748,791 4,664,582
=========== =========== =========== ===========
NET ASSET VALUE Offering and
Redemption Price Per Share
4,841,252, 3,918,684, 613,992
and 470,518, shares outstanding,
respectively (authorized 100 million
shares -- $0.001 par value) ....... $ 13.78 $ 12.63 $ 9.36 $ 9.91
=========== =========== =========== ===========
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
UAM FUNDS ANALYTIC FUNDS
FOR THE SIX MONTHS ENDED
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
DEFENSIVE ENHANCED MASTER SHORT-TERM
EQUITY EQUITY FIXED INCOME GOVERNMENT
FUND FUND FUND FUND
----------- ----------- ------------- -----------
INVESTMENT INCOME
<S> <C> <C> <C> <C>
Dividends ..................................................... $ 487,853 $ 322,774 $ -- $ --
Interest ...................................................... 55,607 84,417 163,111 155,286
----------- ----------- --------- ---------
TOTAL INCOME ............................................... 543,460 407,191 163,111 155,286
----------- ----------- --------- ---------
Expenses
Investment Advisory Fees ...................................... 178,603 116,196 12,435 7,113
Administration Fees ........................................... 47,508 33,136 14,791 15,616
Custodian Fees ................................................ 7,683 9,994 4,303 1,095
Professional Fees 26,615 9,365 4,601 4,692
Transfer Agent Fees ........................................... 35,653 28,250 8,197 8,759
Printing Fees ................................................. 12,286 10,162 843 2,218
Directors' Fees ............................................... 18,824 10,452 2,129 1,599
Registration and Filing Fees .................................. 21,459 16,936 3,436 7,847
Insurance and Other Expenses .................................. 25,591 18,145 11,488 12,651
Distribution Fees ............................................. 9,298 5,697 809 868
----------- ----------- --------- ---------
Total Expenses ............................................. 383,520 258,333 63,032 62,458
----------- ----------- --------- ---------
Waiver of Investment Advisory Fees ............................ (53,895) (45,237) (12,435) (7,113)
Reimbursement of Other Expenses by Advisor .................... -- -- (24,762) (36,936)
----------- ----------- --------- ---------
Net Expenses ............................................... 329,625 213,096 25,835 18,409
----------- ----------- --------- ---------
NET INVESTMENT INCOME ......................................... 213,835 194,095 137,276 136,877
----------- ----------- --------- ---------
NET REALIZED GAIN (LOSS) ON:
Investments ................................................ 10,095,200 4,985,655 (9,282) (57,992)
Written options ............................................ 438,239 -- 36,717 --
Futures .................................................... (35,996) 123,397 10,658 44,177
----------- ----------- --------- ---------
Total Net Realized Gain (Loss) ................................ 10,497,443 5,109,052 38,093 (13,815)
----------- ----------- --------- ---------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION):
Investments ................................................ (1,052,119) 627,842 (297,168) (71,299)
Written options ............................................ (166,823) -- 13,605 --
Futures .................................................... 94,225 (43,475) (11,302) (9,609)
----------- ----------- --------- ---------
Net Change in Unrealized Appreciation (Depreciation) .......... (1,124,717) 584,367 (294,865) (80,908)
----------- ----------- --------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ...................... 9,372,726 5,693,419 (256,772) (94,723)
----------- ----------- --------- ---------
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .. $ 9,586,561 $ 5,887,514 $(119,496) $ 42,154
=========== =========== ========= =========
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20 & 21
<PAGE>
<TABLE>
<CAPTION>
UAM FUNDS
- -----------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
DEFENSIVE ENHANCED
EQUITY EQUITY
FUND FUND
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
--------------------------------- ------------------------------
INVESTMENT ACTIVITIES
<S> <C> <C> <C> <C>
Net Investment Income $ 213,835 $ 202,592 $ 194,095 $ 139,106
Net Realized Gain (Loss) from Security Transactions .... 10,497,443 12,959,836 5,109,052 1,160,166
Net Change in Unrealized Appreciation (Depreciation)
on Investments ....................................... (1,124,717) (955,197) 584,367 3,219,958
------------ ------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... 9,586,561 12,207,231 5,887,514 4,519,230
------------ ------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income .................................. -- (202,592) -- (139,106)
In Excess of Net Investment Income ..................... -- (16,547) -- (11,348)
Net Realized Gains from Security Transactions .......... -- (14,197,773) -- (1,552,303)
------------ ------------- ------------ ------------
TOTAL DISTRIBUTIONS .................................... -- (14,416,912) -- (1,702,757)
------------ ------------- ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares Issued .......................................... 12,062,304 23,440,046 18,514,292 37,872,222
Shares Issued upon Reinvestment of Distributions ....... -- 14,214,749 -- 1,625,000
Shares Redeemed ........................................ (10,979,798) (25,709,722) (8,789,203) (15,756,019)
------------ ------------- ------------ ------------
Increase (Decrease) in Net Assets Derived from
Capital Share Transactions ........................... 1,082,506 11,945,073 9,725,089 23,741,203
------------ ------------- ------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ................ 10,669,067 9,735,392 15,612,603 26,557,676
------------ ------------- ------------ ------------
NET ASSETS
Beginning of Period .................................... 56,021,049 46,285,657 33,888,518 7,330,842
------------ ------------- ------------ ------------
End of Period .......................................... $ 66,690,116 $ 56,021,049 $ 49,501,121 $ 33,888,518
============ ============= ============ ============
SHARES ISSUED AND REDEEMED:
Shares Issued .......................................... 966,516 1,712,065 1,586,300 3,775,473
Shares Issued upon Reinvestment of Distributions ....... -- 1,359,489 -- 161,494
Shares Redeemed ........................................ (886,095) (2,040,891) (775,582) (1,698,955)
------------ ------------- ------------ ------------
Net Increase in Shares Outstanding ..................... 80,421 1,030,663 810,718 2,238,012
============ ============= ============ ============
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
<TABLE>
<CAPTION>
ANALYTIC FUNDS
JUNE 30, 1999 (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------
MASTER SHORT-TERM
FIXED INCOME GOVERNMENT
FUND FUND
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
---------------------------- ------------------------------
INVESTMENT ACTIVITIES
<S> <C> <C> <C> <C>
Net Investment Income $ 137,276 $ 250,162 $ 136,877 $ 192,522
Net Realized Gain (Loss) from Security Transactions .... 38,093 (177,416) (13,815) 4,700
Net Change in Unrealized Appreciation (Depreciation)
on Investments ....................................... (294,865) 99,705 (80,908) 40,380
------------ ------------ ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... (119,496) 172,451 42,154 237,602
------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net Investment Income .................................. (137,031) (250,162) (130,857) (192,522)
In Excess of Net Investment Income ..................... -- (302) -- (3,485)
Net Realized Gains from Security Transactions .......... -- (30,480) -- --
------------ ------------ ------------ -----------
Total Distributions .................................... (137,031) (280,944) (130,857) (196,007)
------------ ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Shares Issued .......................................... 1,608,325 2,574,096 305,243 2,550,601
Shares Issued upon Reinvestment of Distributions ....... 148,887 245,226 151,044 174,351
Shares Redeemed ........................................ (706,111) (3,468,172) (962,233) (484,860)
------------ ------------ ------------ -----------
Increase (Decrease) in Net Assets Derived from
Capital Share Transactions ........................... 1,051,101 (648,850) (505,946) 2,240,092
------------ ------------ ------------ -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS ................ 794,574 (757,343) (594,649) 2,281,687
------------ ------------ ------------ -----------
NET ASSETS
Beginning of Period .................................... 4,954,217 5,711,560 5,259,231 2,977,544
------------ ------------ ------------ -----------
End of Period .......................................... $ 5,748,791 $ 4,954,217 $ 4,664,582 $ 5,259,231
============ ============ ============ ===========
SHARES ISSUED AND REDEEMED:
Shares Issued .......................................... 166,994 257,174 30,345 253,112
Shares Issued upon Reinvestment of Distributions ....... 15,603 24,619 15,043 17,334
Shares Redeemed ........................................ (73,439) (347,983) (95,597) (48,498)
------------ ------------ ------------ -----------
Net Increase in Shares Outstanding ..................... 109,158 (66,190) (50,209) 221,948
============ ============ ============ ===========
</TABLE>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
23
<PAGE>
<TABLE>
<CAPTION>
UAM FUNDS DEFENSIVE EQUITY FUND
- -------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
SIX MONTHS
ENDED
JUNE 30, YEARS ENDED DECEMBER 31,
1999 ----------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
--------- ------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .. $11.77 $12.41 $13.71 $12.64 $10.60 $11.40
Income from Investment Operations
Net Investment Income (Loss) ....... 0.04 0.05 0.12 0.19 0.23 0.30
Net Realized and Unrealized Gains
(Losses) on Securities ........... 1.97 3.05 2.49 1.78 2.04 (0.02)
------- ------ ------- ------- -------- -------
Total from Investment Operations ... 2.01 3.10 2.61 1.97 2.27 0.28
------- ------ ------- ------- -------- -------
Distributions:
Net Investment Income .............. -- (0.05) (0.12) (0.19) (0.23) (0.30)
In Excess of Net Investment Income . -- -- -- -- -- --
Capital Gains ...................... -- (3.69) (3.79) (0.71) -- (0.78)
------- ------ ------- ------- -------- -------
Total Distributions ................ -- (3.74) (3.91) (0.90) (0.23) (1.08)
------- ------ ------- ------- -------- -------
Net Asset Value, End of Period ........ $13.78 $11.77 $12.41 $13.71 $12.64 $10.60
======= ======= ======= ======= ======== =======
TOTAL RETURN .......................... 17.08%** 28.89% 19.11% 15.66% 21.52% 2.47%
======= ======= ======= ======= ======== =======
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000) .... $66,690 $56,021 $46,286 $52,484 $42,648 $48,254
Ratio of Expenses to Average
Net Assets ......................... 1.11%* 1.38% 1.30% 1.23% 1.22% 1.10%
Ratio of Net Investment Income
(Loss) to Average Net Assets ....... 0.72%* 0.40% 0.75% 1.43% 1.87% 3.45%
Ratio of Expenses to Average Net
Assets (Excluding Waivers) ......... 1.29%* 1.60% 1.30% 1.34% 1.38% 1.10%
Ratio of Net Investment Income
(Loss) to Average Net Assets
(Excluding Waivers) ................ 0.54%* 0.18% 0.75% 1.32% 1.71% 3.45%
Portfolio Turnover Rate ............... 161% 299% 75% 43% 32% 49%
<FN>
* ANNUALIZED
** NOT ANNUALIZED
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE INFORMATION SET FORTH IN THIS TABLE FOR THE PERIODS PRIOR TO AUGUST 31, 1998 IS THE FINANCIAL DATA OF
THE DEFENSIVE EQUITY PORTFOLIO OF ANALYTIC OPTIONED EQUITY FUND, INC. ANALYTIC DEFENSIVE EQUITY FUND
ACQUIRED THE ASSETS AND ASSUMED THE LIABILITIES OF THE DEFENSIVE EQUITY PORTFOLIO OF ANALYTIC OPTIONED
EQUITY FUND, INC. ON AUGUST 31, 1998. THE NET ASSET VALUES AT THE BEGINNING OF EACH PERIOD AND THE
CHANGES IN NET ASSET VALUES INCLUDING THE NET ASSET VALUES AT THE END OF EACH PERIOD THROUGH THE DATE OF
REORGANIZATION HAVE BEEN RESTATED TO REFLECT THE CONVERSION RATIO OF 0.95328 USED ON THE DATE OF
REORGANIZATION.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24
<PAGE>
<TABLE>
<CAPTION>
UAM FUNDS ENHANCED EQUITY FUND
- -------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
SIX MONTHS
ENDED
JUNE 30, YEARS ENDED DECEMBER 31,
1999 ----------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .. $10.90 $ 8.43 $ 7.43 $ 7.95 $ 6.04 $ 6.23
Income from Investment Operations
Net Investment Income (Loss) ....... 0.05 0.06 0.09 0.13 0.14 0.17
Net Realized and Unrealized Gains
(Losses) on Securities ........... 1.68 3.07 2.12 1.69 1.98 (0.19)
------- ------- ------- ------- -------- -------
Total from Investment Operations ... 1.73 3.13 2.21 1.82 2.12 (0.02)
------- ------- ------- ------- -------- -------
Distributions:
Net Investment Income .............. -- (0.06) (0.09) (0.13) (0.14) (0.17)
Excess of Net Investment Income .... -- (0.01) (0.01) -- -- --
Capital Gains ...................... -- (0.59) (1.10) (2.20) (0.07) --
Excess of Net Capital Gains ........ -- -- (0.01) (0.01) -- --
------- ------- ------- ------- -------- -------
Total Distributions ................ -- (0.66) (1.21) (2.34) (0.21) (0.17)
------- ------- ------- ------- -------- -------
Net Asset Value, End of Period ........ $12.63 $10.90 $ 8.43 $ 7.43 $ 7.95 $ 6.04
======= ======= ======= ======= ======== =======
TOTAL RETURN .......................... 15.87%** 37.82% 29.86% 22.95% 35.36% (0.37)%
======= ======= ======= ======= ======== =======
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000) .... $49,501 $33,889 $ 7,331 $ 3,519 $ 2,318 $ 1,511
Ratio of Expenses to Average
Net Assets ......................... 1.10%* 1.26% 1.00% 0.91% 0.50% 0.24%
Ratio of Net Investment Income
(Loss) to Average Net Assets ....... 1.00%* 0.78% 1.17% 1.53% 2.02% 3.24%
Ratio of Expenses to Average Net
Assets (Excluding Waivers) ......... 1.33%* 2.25% 2.24% 1.51% 1.33% 1.35%
Ratio of Net Investment Income
(Loss) to Average Net Assets
(Excluding Waivers) ................ 0.77%* (0.21)% (0.07)% 0.93% 1.19% 2.13%
Portfolio Turnover Rate ............... 149% 297% 189% 179% 10% 25%
<FN>
* ANNUALIZED
** NOT ANNUALIZED
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE INFORMATION SET FORTH IN THIS TABLE FOR THE PERIODS PRIOR TO JULY 27, 1998 IS THE FINANCIAL DATA OF
THE ENHANCED EQUITY FUND, SERIES OF A PREDECESSOR COMPANY, THE ANALYTIC SERIES FUND, INC. ANALYTIC
ENHANCED EQUITY FUND ACQUIRED THE ASSETS AND ASSUMED THE LIABILITIES OF THE ENHANCED EQUITY FUND OF THE
ANALYTIC SERIES FUND, INC. ON JULY 27, 1998. THE NET ASSET VALUES AT THE BEGINNING OF EACH PERIOD AND
THE CHANGES IN NET ASSET VALUES INCLUDING THE NET ASSET VALUES AT THE END OF EACH PERIOD THROUGH THE
DATE OF REORGANIZATION HAVE BEEN RESTATED TO REFLECT THE CONVERSION RATIO OF 0.61425 USED ON THE DATE OF
REORGANIZATION.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
UAM FUNDS MASTER FIXED INCOME FUND
- -------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
SIX MONTHS
ENDED
JUNE 30, YEARS ENDED DECEMBER 31,
1999 ----------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
---------- ------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .. $ 9.81 $10.00 $11.62 $11.78 $10.75 $11.61
Income from Investment Operations
Net Investment Income (Loss) ....... 0.23 0.51 0.67 0.66 0.69 0.72
Net Realized and Unrealized Gains
(Losses) on Securities ........... (0.45) (0.14) 0.46 (0.01) 1.03 (0.85)
------- ------- ------- ------- -------- -------
Total from Investment Operations ... (0.22) 0.37 1.13 0.65 1.72 (0.13)
------- ------- ------- ------- -------- -------
Distributions:
Net Investment Income .............. (0.23) (0.51) (0.67) (0.66) (0.69) (0.72)
Excess of Net Investment Income .... -- -- -- -- -- --
Capital Gains ...................... -- (0.05) (1.98) (0.14) -- (0.01)
Excess of Net Capital Gains ........ -- -- (0.10) (0.01) -- --
------- ------- ------- ------- -------- -------
Total Distributions ................ (0.23) (0.56) (2.75) (0.81) (0.69) (0.73)
------- ------- ------- ------- -------- -------
Net Asset Value, End of Period ........ $ 9.36 $ 9.81 $10.00 $11.62 $11.78 $10.75
======= ======= ======= ======= ======== =======
TOTAL RETURN .......................... (2.21)%** 3.80% 10.04% 5.69% 16.43% (1.04)%
======= ======= ======= ======= ======== =======
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000) .... $5,749 $ 4,954 $ 5,712 $28,926 $24,868 $ 6,155
Ratio of Expenses to Average
Net Assets ......................... 0.93%* 1.07% 0.90% 0.72% 0.69% 0.60%
Ratio of Net Investment Income
(Loss) to Average Net Assets ....... 4.97%* 5.06% 5.60% 5.66% 5.99% 7.16%
Ratio of Expenses to Average Net
Assets (Excluding Waivers) ......... 2.28%* 3.29% 1.09% 0.97% 1.03% 1.17%
Ratio of Net Investment Income
(Loss) to Average Net Assets
(Excluding Waivers) ................ 3.62%* 2.84% 5.41% 5.41% 5.65% 6.59%
Portfolio Turnover Rate ............... 10% 98% 40% 22% 32% 44%
<FN>
* ANNUALIZED
** NOT ANNUALIZED
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE INFORMATION SET FORTH IN THIS TABLE FOR THE PERIODS PRIOR TO JULY 27, 1998 IS THE FINANCIAL DATA OF
THE MASTER FIXED INCOME FUND, SERIES OF A PREDECESSOR COMPANY, THE ANALYTIC SERIES FUND, INC.
ANALYTIC MASTER FIXED INCOME FUND ACQUIRED THE ASSETS AND ASSUMED THE LIABILITIES OF THE MASTER FIXED
INCOME FUND OF THE ANALYTIC SERIES FUND, INC. ON JULY 27, 1998. THE NET ASSET VALUES AT THE BEGINNING
OF EACH PERIOD AND THE CHANGES IN NET ASSET VALUES INCLUDING THE NET ASSET VALUES AT THE END OF EACH
PERIOD THROUGH THE DATE OF REORGANIZATION HAVE BEEN RESTATED TO REFLECT THE CONVERSION RATIO OF
1.1312 USED ON THE DATE OF REORGANIZATION.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
UAM FUNDS SHORT-TERM GOVERNMENT FUND
- -------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
SIX MONTHS
ENDED
JUNE 30, YEARS ENDED DECEMBER 31,
1999 ----------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
---------- ------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $10.10 $ 9.97 $ 9.99 $10.14 $ 9.70 $10.19
Income from Investment Operations
Net Investment Income (Loss) ... 0.29 0.56 0.56 0.63 0.57 0.49
Net Realized and Unrealized Gains
(Losses) on Securities ....... (0.20) 0.14 (0.02) (0.10) 0.44 (0.49)
------- ------- ------- ------- -------- -------
Total from Investment Operations 0.09 0.70 0.54 0.53 1.01 --
------- ------- ------- ------- -------- -------
Distributions:
Net Investment Income .......... (0.28) (0.56) (0.56) (0.67) (0.57) (0.49)
Excess of Net Investment Income -- (0.01) -- -- -- --
Return of Capital .............. -- -- -- (0.01) -- --
------- ------- ------- ------- -------- -------
Total Distributions ............ (0.28) (0.57) (0.56) (0.68) (0.57) (0.49)
------- ------- ------- ------- -------- =======
Net Asset Value, End of Period .... $ 9.91 $10.10 $ 9.97 $ 9.99 $10.14 $ 9.70
======= ======= ======= ======= ======== =======
TOTAL RETURN ...................... 0.85%** 7.10% 5.54% 5.28% 10.65% 0.00%
======= ======= ======= ======= ======== =======
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (000) $4,665 $ 5,259 $ 2,978 $1,008 $27,880 $24,481
Ratio of Expenses to Average
Net Assets ..................... 0.78%* 0.84% 0.60% 0.56% 0.50% 0.45%
Ratio of Net Investment Income
(Loss) to Average Net Assets ... 5.77%* 5.43% 5.57% 5.99% 5.76% 5.37%
Ratio of Expenses to Average Net
Assets (Excluding Waivers) ..... 2.63%* 3.73% 7.78% 0.76% 0.82% 0.85%
Ratio of Net Investment Income
(Loss) to Average Net Assets
(Excluding Waivers) ............ 3.92%* 2.54% (1.61)% 5.79% 5.44% 4.97%
Portfolio Turnover Rate ........... 37% 25% 34% 31% 10% 3%
<FN>
* ANNUALIZED
** NOT ANNUALIZED
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE INFORMATION SET FORTH IN THIS TABLE FOR THE PERIODS PRIOR TO JULY 27, 1998 IS THE FINANCIAL DATA OF
THE SHORT-TERM GOVERNMENT FUND, SERIES OF A PREDECESSOR COMPANY, THE ANALYTIC SERIES FUND, INC.
ANALYTIC SHORT-TERM GOVERNMENT FUND ACQUIRED THE ASSETS AND ASSUMED THE LIABILITIES OF THE SHORT-TERM
GOVERNMENT FUND OF THE ANALYTIC SERIES FUND, INC. ON JULY 27, 1998. THE NET ASSET VALUES AT THE
BEGINNING OF EACH PERIOD AND THE CHANGES IN NET ASSET VALUES INCLUDING THE NET ASSET VALUES AT THE END
OF EACH PERIOD THROUGH THE DATE OF REORGANIZATION HAVE BEEN RESTATED TO REFLECT THE CONVERSION RATIO
OF 1.0162 USED ON THE DATE OF REORGANIZATION.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
27
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION
UAM Funds, Inc. II (the Company), formerly PBHG Advisor Funds, Inc., a Maryland
corporation, is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company with four series: the
Analytic Defensive Equity Fund (the "Defensive Equity Fund"), the Analytic
Enhanced Equity Fund (the "Enhanced Equity Fund"), the Analytic Master Fixed
Income Fund (the "Master Fixed Income Fund") and the Analytic Short-Term
Government Fund (the "Short-Term Government Fund"). Each of the Funds has
distinct investment objectives and policies that are described in the
prospectus. The assets of each fund are segregated, and a shareholder's
interest is limited to the fund in which shares
are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by
the Funds.
SECURITY VALUATION -- Investment securities of the Equity Funds that are listed
on a securities exchange, and for which market quotations are readily available,
are valued at the last quoted sales price at the close of the primary exchange
(currently 4:00 p.m. Eastern time). If there is no such reported sale, these
securities and unlisted securities for which market quotations are readily
available, are valued at the last bid price. However, debt securities (other
than short-term obligations), including listed issues, are valued on the basis
of valuations furnished by a pricing service which utilizes electronic data
processing techniques to determine valuations for normal institutional size
trading units of debt securities, without exclusive reliance upon exchange or
over-the-counter prices. Short-term investments may be valued at amortized cost
which approximates market value. Foreign securities are valued based upon
quotations from the primary market in which they are traded, and are translated
from the local currency into U.S. dollars using current exchange rates. The
value of other assets and securities for which no quotations are readily
available is determined in good faith at fair value using methods determined by
the Board of Directors.
FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a regulated
investment company for federal income tax purposes, and to distribute all of its
taxable income and net capital gains. Accordingly, no provision has been made
for Federal income taxes.
At April 30, 1999, the Funds' tax year end, the Analytic Funds had the following
unused capital loss carryforwards. These realized losses are intended to be used
to offset future net capital gains, to the extent provided by regulations
through the following expiration dates:
2003 2004 2005 2006 2007
-------- -------- -------- -------- --------
Master Fixed Income Fund $ -- $ -- $ -- $ -- $208,911
Short-Term Government Fund 46,629 257,536 444,657 3,860 --
REPURCHASE AGREEMENTS -- The collateral for repurchase agreements are held by a
third party custodian bank until the respective agreements mature. Provisions of
the repurchase agreements and procedures adopted by the Company ensure that the
market value of the collateral, including accrued interest thereon, is
sufficient in the event of default by the counterparty. If the counterparty
defaults and the value of the collateral declines, or if the counterparty enters
into insolvency proceedings, realization of the collateral by a fund may be
delayed or limited.
28
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
DIVIDENDS -- Dividends from net investment income for the Defensive Equity and
Enhanced Equity Funds are declared quarterly, if available. Dividends from net
investment income for the Master Fixed Income Fund and the Short-Term Government
Fund are declared daily and paid monthly. Distributions of net realized capital
gains, for all funds, are generally made to shareholders annually. Dividends
from net investment income and distributions from net realized capital gains are
determined in accordance with U.S. Federal income tax regulations, which may
differ from those amounts determined under generally accepted accounting
principles. These book/tax differences are either temporary or permanent in
nature. To the extent these differences are permanent, they are charged or
credited to paid-in-capital or accumulated net realized gain, as appropriate, in
the period that the differences arise.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the date the securities are purchased or sold (trade date).
Dividend income and distributions to shareholders are recognized on the
ex-dividend date; interest income is recognized on the accrual basis. Costs used
in determining realized capital gains and losses on the sale of investment
securities are those of the specific securities sold adjusted for the accretion
and amortization of acquisition discounts and premiums during the respective
holding periods. Acquisition discounts and premiums are accreted and amortized
to maturity using a method which approximates the effective interest method.
DERIVATIVE FINANCIAL INSTRUMENTS -- Each fund may utilize various call option,
put option and financial futures strategies in pursuit of its objective. These
techniques will be used to hedge against changes in securities prices, interest
rates, or foreign currency exchange rates on securities held or intended to be
acquired by the fund to reduce the volatility of the currency exposure
associated with foreign securities, or as an efficient means of adjusting
exposure to stock and bond markets, and not for speculation. The portfolios will
only write covered call and cash secured put options on common stock or stock
indices.
WRITTEN OPTION ACCOUNTING PRINCIPLES -- When a covered put or call option is
written in a fund, an amount equal to the premium received by the fund is
included in the fund's statement of assets and liabilities as an asset and an
equivalent liability. The amount of the liability will be subsequently
marked-to-market to reflect the current market value of the option written.
When a covered written call expires on its stipulated expiration date, or if the
fund enters into a closing purchase transaction, the fund will realize a gain
(or loss if the cost of the closing purchase transaction exceeds the premium
received when the call option was written) without regard to any unrealized gain
or loss on the underlying security, and the liability related to such option
will be extinguished. When a covered written call option is exercised, the fund
will realize a gain or loss from the sale of the underlying security and the
proceeds of the sale are increased by the premium originally received.
When a fund writes a covered put option, U.S. Treasury Securities equal in value
to the exercise price are placed in an escrow account to collateralize the
outstanding put option. When a put option expires, or if the fund enters into a
closing purchase transaction, the fund will realize a gain or loss on the option
transaction, the cash is released from escrow, and the liability related to such
option is extinguished. When a put option is exercised, the fund uses the cash
in escrow to purchase the security, the cost of the security is reduced by the
premium originally received, and no gain or loss is recognized.
OTHER -- Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses are prorated to the Funds on the
basis of relative net assets.
29
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS -- The preparation
of financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reported period. Actual results could
differ from those estimates.
(3) INVESTMENT ADVISORY FEES, ADMINISTRATIVE FEES AND OTHER TRANSACTIONS WITH
AFFILIATES
The Funds and Analytic Investors, Inc. (the Adviser) are parties to an
Investment Advisory Agreement (the "Advisory Agreement"). Under the terms of the
Advisory Agreement, the Adviser is entitled to a fee, which is calculated daily
and paid monthly, at an annual rate of 0.60% of the average net assets of the
Enhanced Equity and Defensive Equity Funds; 0.45% of the average net assets of
the Master Fixed Income Fund; and 0.30% of the average net assets of the
Short-Term GovernmentFund.
Prior to April 5, 1999, the Funds were party to an Investment Advisory Agreement
with Pilgrim Baxter and Associates, Ltd. (PBA). PBA was entitled to a fee, which
was calculated daily and paid monthly, at an annual rate of 0.60% of the average
net assets of the Enhanced Equity and Defensive Equity Funds; 0.45% of the
average net assets of the Master Fixed Income Fund and 0.30% of the average net
assets of the Short-Term Government Fund.
Analytic Investors, Inc. served as the sub-adviser to the Enhanced Equity,
Defensive Equity, Master Fixed Income and Short-Term Government Funds. For its
services provided pursuant to its Investment Sub-Advisory Agreement with the
Adviser and the Funds, Analytic Investors, Inc. received from the amounts
received by the Adviser, a sub-advisory fee with respect to the average daily
net assets of each fund at annual rates of 0.40%, 0.40%, 0.25% and 0.10%,
respectively.
Effective April 6, 1999 the Adviser has agreed to waive or limit its advisory
fees or assume other expenses in an amount that operates to limit the aggregate
annual total of certain operating expenses of each Analytic fund as follows:
0.99% of the Defensive Equity and the Enhanced Equity Funds; 0.80% of the Master
Fixed Income Fund; and 0.60% of the Short-Term Government Fund. The fee
waiver/expense reimbursement arrangement for each fund is expected to remain in
effect for the current fiscal year and can be terminated at any time at the
option of the Adviser.
UAM Fund Services, Inc. (the "Administrator"), a wholly-owned subsidiary of UAM,
provides the Funds with administrative services, including regulatory reporting
and all necessary office space, equipment, personnel and facilities. For these
administrative services, the Administrator is entitled to receive a two part
fee, which is calculated daily and paid monthly, at an annual rate of 0.06% of
the average daily net assets of the Defensive Equity Fund and 0.04% of the
average daily net assets of the Enhanced Equity, Master Fixed Income and
Short-Term Government Funds, plus $14,500 per each of the Funds.
Prior to April 5, 1999, PBHG Fund Services provided the Funds with
administrative services. For these administrative services, PBHG Fund Services
received a fee, which was calculated daily and paid monthly at an annual rate of
0.15% of the average daily net assets of the Funds. For its services, PBHG Fund
Services received $40,441 for the period January 1, 1999 through April 5, 1999.
30
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
SEI Investments Management Corporation, a wholly-owned subsidiary of SEI
Investments Corporation, is the owner of all beneficial interest in SEI
Investments Mutual Fund Services (the "Sub-Administrator").The Sub-Administrator
assists the Administrator in providing administrative services
to the Funds.
UAM Fund Distributors, Inc., a wholly-owned subsidiary of UAM, distributes the
shares of the Funds. The Distributor does not receive any fee or other
compensation with respect to the Funds.
DST Systems, Inc. serves as the transfer agent and dividend disbursing agent for
the Funds under a transfer agent agreement with the Administrator. UAM Fund
Services, Inc. provides shareholder support and other shareholder
account-related services with assistance from UAM Shareholder Service Center,
Inc., an affiliate of UAM. First Union National Bank serves as the custodian for
the Funds.
Certain officers and directors of the Fund who are or were officers of the
Adviser, Administrator, Sub-Administrator and the Distributor receive no
compensation from the Fund for their services.
Shareholder Meetings
A special meeting of shareholders of PBHG Advisor Funds, Inc. was held on April
5, 1999 to vote on the following matters:
1.) To approve a new investment advisory agreement between each of the Analytic
Defensive Equity Fund, the Analytic Enhanced Equity Fund, the Analytic
Master Fixed Income Fund and the Analytic Short-Term Government Fund and
Analytic Investors, Inc. The following were the results of the vote.
---------------- -------------- ---------------- ----------------
Defensive Equity Enhanced Master Fixed Short-Term
Fund Equity Fund Income Fund Government Fund
Shares Voted: Shares Voted: Shares Voted: Shares Voted:
---------------- -------------- ---------------- ----------------
For 2,399,453 1,602,427 361,993 390,536
Against 46,394 6,860 -- 2,631
Abstain 55,771 9,751 1,093 519
---------------- -------------- ---------------- ----------------
Total 2,501,618 1,619,038 363,086 393,686
2.) To elect John T. Bennett, Jr., Phillip D. English, William A. Humenuk,
Norton H. Reamer, Peter M. Whitman, Jr., Nancy J. Dunn and James P. Pappas
to the Board of Directors of the Company. The following were the results
of the vote.
---------------- -------------- ---------------- ----------------
Defensive Equity Enhanced Master Fixed Short-Term
Fund Equity Fund Income Fund Government Fund
Shares Voted: Shares Voted: Shares Voted: Shares Voted:
---------------- -------------- ---------------- ----------------
For 2,437,110 1,607,320 357,859 388,425
Withheld 64,510 11,720 5,227 5,262
---------------- -------------- ---------------- ----------------
Total 2,501,620 1,619,040 363,086 393,687
31
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
3.) To ratify or reject the selection by the Board of Directors of
PricewaterhouseCoopers LLP as independent public accountants to the
company for the fiscal year ending December 31, 1999. The following were
the results of the
vote.
<TABLE>
<CAPTION>
---------------- -------------- ---------------- ---------------
Defensive Equity Enhanced Master Fixed Short-Term
Fund Equity Fund Income Fund Government Fund
Shares Voted: Shares Voted: Shares Voted: Shares Voted:
---------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
For 2,444,696 1,590,735 359,138 391,056
Against 18,335 17,371 3,442 --
Abstain 38,587 10,933 506 2,631
----------- --------- ---------- ---------
Total 2,501,618 1,619,039 363,086 393,687
</TABLE>
(4) INVESTMENT TRANSACTIONS
The cost of securities purchased and the proceeds from securities sold, other
than short-term investments and options for the funds for the year ended June
30, 1999 were as follows:
Purchases Sales
-------------- --------------
Defensive Equity Fund $94,111,547 $96,016,425
Enhanced Equity Fund 61,494,041 53,610,799
Master Fixed Income Fund 1,160,548 353,899
Short-Term Government Fund 1,750,750 2,249,781
The aggregate gross unrealized appreciation and depreciation of securities held
by the Funds and the total cost of securities for Federal income tax purposes at
June 30, 1999 are as follows:
Total Cost
Net of Securities
Unrealized for Federal
Unrealized Unrealized Appreciation/ Income Tax
Appreciation Depreciation (Depreciation) Purposes
---------- ------------- -------------- -----------
Defensive Equity Fund $8,155,234 $(1,644,862) $6,510,372 $60,102,414
Enhanced Equity Fund 5,076,036 (904,129) 4,171,907 45,087,414
Master Fixed
Income Fund 29,433 (207,917) (178,484) 5,868,979
Short-Term
Government Fund 2,405 (42,614) (40,209) 4,666,068
32
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
(5) Written Option Contracts
The Funds trade written option contracts with off-balance sheet risk in the
normal course of its investment activities in order to manage exposure to market
risks such as interest rates. The contractual amounts of these instruments
represent the investment the Fund has in particular classes of financial
instruments and does not necessarily represent the amounts potentially subject
to risk. The measurement of the risks associated with these instruments is
meaningful only when all related and offsetting transactions are considered.
Transactions in option contracts written in the Defensive Equity Fund were as
follows:
Number of
Contracts Premiums
------------- -------------
Outstanding at December 31, 1998 405 $ 769,509
Options written 2,145 3,324,126
Options terminated in closing purchase transactions (1,150) (2,090,713)
Options expired (1,125) (1,395,641)
---------- -----------
Outstanding at June 30, 1999 275 $ 607,281
========== ===========
Transactions in option contracts written in the Master Fixed Income Fund were as
follows:
Number of
Contracts Premiums
---------- ------------
Outstanding at December 31, 1998 423 $ 46,286
Options written 1,927 345,792
Options terminated in closing purchase transactions (1,871) (276,668)
Options expired (393) (67,265)
Options exercised (16) (2,977)
---------- -----------
Outstanding at June 30, 1999 70 $ 45,168
========== ===========
33
<PAGE>
UAM FUNDS ANALYTIC FUNDS
(UNAUDITED)
- --------------------------------------------------------------------------
(6) FUTURES CONTRACTS
Each Fund may enter into futures contracts to the extent permitted by its
investment policies and objectives. Upon entering into a futures contract,
a fund is required to make a deposit of a portion of the initial margin
with its custodian in a segregated account. In addition, the fund will
deposit securities with the broker for the remainder of the margin
requirement. Subsequent payments, which are dependent on the daily
fluctuations in the value of the underlying instrument, are made or
received by a fund each day (daily variation margin) and are recorded as
unrealized gains or losses until the contracts are closed When the
contract is closed, a fund records a realized gain or loss equal
to the difference between the proceeds from (or cost of) the closing
transactions and a fund's basis in the contract. Risks of entering into
futures contracts include the possibility that a change in the value of
the contract may not correlate with the changes in the value of the
underlying instruments. Second, it is possible that a lack of liquidity
for futures contracts could exist in the secondary market, resulting in
an inability to close a futures position prior to its maturity date.
Third, the purchase of a futures contract involves the risk that a fund
could lose more than the original margin deposit required to initiate a
futures transaction.
The following Funds had futures contracts open as of June 30, 1998.
<TABLE>
<CAPTION>
Number
Contract of Trade Settlement Unrealized
Description Contracts Price Month Gain/(Loss)
- ------------ --------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
DEFENSIVE EQUITY FUND
S&P 500 10 $1,344.01 September 1999 $ 94,225
========
ENHANCED EQUITY FUND
S&P 500 13 $1,341.50 September 1999 $130,650
========
MASTER FIXED
INCOME FUND
U.S. Long Bond 5 $116.07 September 1999 $ (831)
U.S. 10 Year Note (19) 110.71 September 1999 (9,096)
U.S. 5 Year Note 26 108.43 September 1999 14,771
U.S. 2 Year Note (16) 103.82 September 1999 (4,910)
-------
$ (66)
=======
SHORT-TERM
GOVERNMENT FUND
U.S. Long Bond 2 $116.07 September 199 $ (333)
U.S. 10 Year Note (7) 110.71 September 1999 (3,351)
U.S. 5 Year Note 9 108.43 September 1999 5,113
U.S. 2 Year Note (6) 103.82 September 1999 (1,841)
Australian Dollar (4) 64.82 September 1999 (7,200)
Canadian Dollar 3 67.73 September 1999 1,740
Deutsche Mark (1) 53.32 September 1999 178
------
$(5,694)
=======
</TABLE>
34
<PAGE>
NOTES
- --------------------------------------------------------------------------
<PAGE>
NOTES
- --------------------------------------------------------------------------
<PAGE>
NOTES
- --------------------------------------------------------------------------
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------
OFFICERS AND DIRECTORS
Norton H. Reamer William H. Park
Director, President and Chairman Vice President
John T. Bennett, Jr. Michael E. DeFao
Director Secretary
Nancy J. Dunn Gary L. French
Director Treasurer
Philip D. English Robert R. Flaherty
Director Assistant Treasurer
William A. Humenuk Robert J. Dellacroce
Director Assistant Treasurer
James P. Pappas
Director
Peter M. Whitman, Jr.
Director
- --------------------------------------------------------------------------
UAM FUNDS
P.O. Box 419081
Kansas City, MO 64141-6081
(toll free)
1-877-UAM-LINK (826-5465)
www.uam.com
INVESTMENT ADVISER
Analytic Investors, Inc.
700 South Flower Street
Suite 2400
Los Angeles, CA 90017
DISTRIBUTOR This report has been prepared for
UAM Fund Distributors, Inc. shareholders and may be distributed
211 Congress Street to others only if preceded or
Boston, MA 02110 accompanied by a current prospectus.
