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UAM Funds
Funds for the Informed Investor(sm)
Analytic Funds
Annual Report December 31, 1999
[LOGO OF UAM]
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UAM FUNDS ANALYTIC FUNDS
DECEMBER 31, 1999
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TABLE OF CONTENTS
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Shareholders' Letter ...................................................... 1
Portfolios of Investments
Defensive Equity ....................................................... 8
Enhanced Equity ........................................................ 13
Master Fixed Income .................................................... 18
Short-Term Government .................................................. 20
International .......................................................... 22
Statements of Assets and Liabilities ...................................... 30
Statements of Operations .................................................. 32
Statements of Changes in Net Assets ....................................... 34
Financial Highlights
Defensive Equity ....................................................... 36
Enhanced Equity ........................................................ 37
Master Fixed Income .................................................... 38
Short-Term Government .................................................. 39
International .......................................................... 40
Notes to Financial Statements ............................................. 41
Report of Independent Accountants ......................................... 51
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UAM FUNDS ANALYTIC FUNDS
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December 31, 1999
Dear Fellow Shareholders:
We are pleased to send you The UAM Analytic Funds Annual Report for the year
ended December 31, 1999. We appreciate your loyalty and continuing support.
This past year was a wild ride in the equity markets. Individual stocks were led
by the 2,619% price return of Qualcomm and the more than 300% returns of Sprint
Corp, Nextel Communication and LSI Logic Corp. Meanwhile, there were big losers
such as Service Corp, Rite Aid and McKesson HBOC that were all down more than
70%. For the year, only 1,006 of the 2,701 stocks (37%) traded on the New York
Stock Exchange were up while 1,695 (63%) were down. This same pattern held
within the S&P 500 Index, as the median stock price was actually down about
0.75% for the year.
This near chaotic individual stock performance translated into a world of "Have
and Have Nots" for industries as well. For example, Electronic Instruments and
Communication Equipment were up 138% and 121% respectively. Even less glamorous
industries such as Aluminum and Miscellaneous Mining were each up more than 85%.
However, Pollution Control, Tobacco, and Office Equipment were all down more
than 50%.
Despite this challenging investment environment, our two U.S. equity mutual
funds continued to perform well. The Analytic Defensive Equity Fund beat its
benchmark, a blended average comprised of 60% S&P 500 Index and 40% Lehman
Government/Corporate Bond Index ("LGC") and its peer group for the year,
returning 21.3% versus 11.4% for its benchmark and the 3.3% for the Lipper
Equity Income Funds Average. During the same period the S&P 500 returned 21.0%
and the LGC returned -2.2%. Although the Defensive Equity Fund invests primarily
in equity securities, the Fund will generally write call options in an effort to
reduce market exposure and generate income for the Fund.
The Analytic Enhanced Equity Fund also performed solidly earning 20.1% for the
year, nearly matching the 21.0% return for the S&P 500 Index and the 22.4%
return for the Lipper Large Cap Core Funds Average.
We are also pleased to report the first full quarter of operation for the
Analytic International Fund. From the inception of the fund on September 30,
1999 to the end of 1999, the Fund returned 12.7% versus 16.6% for the Morgan
Stanley Capital International EAFE Index. The Fund uses a quantitative stock
selection process similar to the model used in our two U.S. equity funds. We
believe that our investment process will allow us to add value and limit risk
relative to broad-based international equity benchmarks.
For the first time in five years, the U.S. fixed income market posted negative
returns in a year marked by rising interest rates and fears of inflation. The
broad
1
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UAM FUNDS ANALYTIC FUNDS
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bond market, as measured by the LGC, returned -2.15% for 1999. Within this
index, the Treasury bond sector suffered the most, posting a return of -2.56%.
The Corporate bond sector faired slightly better, returning -1.96%. Bonds issued
by Government Agencies performed the best on a relative basis, returning -0.94%.
The performance of the fixed income funds was mixed throughout the rising rate
environment. The Analytic Master Fixed Income Fund returned -2.00% for the year,
surpassing the LGC Index return of -2.15% but underperforming the Lipper
Intermediate Investment Grade Debt Funds Average return of -1.31%.
The Analytic Master Fixed Income Fund performance may be attributed to two
factors. First, we maintained greater exposure to corporate bonds than the LGC
Index and this sector outperformed the broad bond market. Second, our
proprietary model helped us purchase securities at attractive prices relative to
the market in general.
The Analytic Short-Term Government Fund returned 2.54% for the year,
underperforming the Merrill Lynch 1-3 Year Treasury Index return of 3.07% but
outperforming the Lipper Short U.S. Government Funds Average return of 2.50%.
The Analytic Short-Term Government Fund performance may be attributed primarily
to security selection.
We are pleased that our funds continue to garner widespread recognition in the
media, including positive articles and high rankings in Individual Investor, The
Financial Times and Barron's, as well as recognition on popular investment
websites such as SmartMoney.com, Bloomberg.com and DenverPost.com to name a few.
We thank you for your continued interest and support in the UAM Analytic Funds.
Sincerely,
/s/ Harindra de Silva /s/ Greg McMurran /s/ Dennis Bein
Harindra de Silva, Ph.D, CFA Greg McMurran Dennis Bein, CFA
President/Co-Portfolio Manager Chief Investment Officer Portfolio Manager
/s/ Scott Barker /s/ Doug Savarese /s/ Robert Murdock
Scott Barker, CFA Doug Savarese Robert Murdock, Ph.D.
Portfolio Manager Portfolio Manager Portfolio Manager
2
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UAM FUNDS ANALYTIC FUNDS
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The investment results presented in this report 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.
Definition of the Comparative Indices
-------------------------------------
Blended S&P 500 Index/Lehman Government/Corporate Bond Index is a customized
index which consists of 60% S&P 500 Index and 40% Lehman Government/Corporate
Bond Index.
Lehman Government/Corporate Bond Index is an unmanaged fixed income market
value-weighted index of U.S. government treasury securities, corporate and
yankee bonds. 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 Mutual Fund Averages are equally-weighted benchmarks composed of mutual
funds with similar objectives.
Merrill Lynch 1-3 Year Treasury Index is an unmanaged index composed of U.S.
treasury securities with an outstanding par value of at least $25 million, a
fixed coupon greater than 4.25% and a maturity ranging between one to three
years.
Morgan Stanley Capital International EAFE Index is an arithmetic, market
value-weighted averages of the performance of over 900 securities listed on the
stock exchanges of countries in Europe, Australia and the Far East.
S&P 500 Index is an unmanaged index composed of 400 industrial stocks, 40
financial stocks, 40 utility stocks 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
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UAM FUNDS ANALYTIC
DEFENSIVE EQUITY FUND
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[GRAPH]
Growth of a $10,000 Investment
AVERAGE ANNUAL TOTAL RETURN*
FOR PERIOD ENDED DECEMBER 31, 1999
1 Year 5 Years 10 Years
21.35% 21.24% 13.34%
ANALYTIC S&P BLENDED LEHMAN GOV
$ 10,000 $ 10,000 $ 10,000 $ 10,000
$ 10,154 $ 9,690 $ 10,156 $ 10,829
$ 11,501 $ 12,642 $ 12,676 $ 12,575
$ 12,217 $ 13,604 $ 13,646 $ 13,527
$ 13,038 $ 14,969 $ 15,077 $ 15,023
$ 13,360 $ 15,165 $ 14,991 $ 14,496
$ 16,239 $ 20,859 $ 19,484 $ 17,284
$ 18,790 $ 25,644 $ 22,337 $ 17,787
$ 22,375 $ 34,196 $ 27,620 $ 19,522
$ 28,839 $ 43,976 $ 33,520 $ 21,369
$ 34,996 $ 53,228 $ 37,340 $ 20,910
Periods ended on December 31st
* If the adviser and/or portfolio service providers had not limited certain
expenses, the portfolio's total return would have been lower.
+ Beginning with this report, the portfolio's performance will be compared to a
blended average comprised of 60% S&P 500 Index and 40% Lehman
Government/Corporate Bond Index. The adviser has concluded that the blended
average is a more appropriate benchmark for this portfolio than the S&P 500
Index.
The investment results represent past performance and should not be
construed as a 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.
The comparative index assumes reinvestment of dividends and, unlike a
portfolio's returns, does not reflect any fees or expenses. If such
fees were reflected in the comparative index's returns, the
performance would have been lower.
See definition of comparative indices on page 3.
4
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UAM FUNDS ANALYTIC
ENHANCED EQUITY FUND
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[GRAPH]
Growth of a $10,000 Investment
AVERAGE ANNUAL TOTAL RETURN**
FOR PERIOD ENDED DECEMBER 31, 1999
Since
1 Year 5 Years 7/1/93*
20.06% 29.02% 22.33%
ANALYTIC S&P LIPPER
7/31/93 $ 10,000 $ 10,000 $ 10,000
Dec-93 $ 10,401 $ 10,494 $ 10,565
Dec-94 $ 10,375 $ 10,632 $ 10,553
Dec-95 $ 14,042 $ 14,623 $ 14,011
Dec-96 $ 17,268 $ 17,977 $ 16,977
Dec-97 $ 22,419 $ 23,973 $ 21,756
Dec-98 $ 30,898 $ 30,829 $ 25,851
Dec-99 $ 37,097 $ 37,315 $ 28,738
Periods ended on December 31st
* Beginning of operations. Index comparisons begin on 6/30/93.
** If the adviser and/or portfolio service providers had not limited certain
expenses, the portfolio's total return would have been lower.
The investment results represent past performance and should not be
construed as a 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.
The comparative index assumes reinvestment of dividends and, unlike a
portfolio's returns, does not reflect any fees or expenses. If such
fees were reflected in the comparative index's returns, the
performance would have been lower.
See definition of comparative indices on page 3.
5
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UAM FUNDS ANALYTIC
MASTER FIXED INCOME FUND
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[GRAPH]
Growth of a $10,000 Investment
AVERAGE ANNUAL TOTAL RETURN**
FOR PERIOD ENDED DECEMBER 31, 1999
Since
1 Year 5 Years 7/1/93*
-2.00% 6.61% 5.45%
ANALYTIC LEHMAN LIPPER
7/31/93 $ 10,000 $ 10,000 $ 10,000
Dec-93 $ 10,363 $ 10,302 $ 10,232
Dec-94 $ 10,256 $ 9,940 $ 10,004
Dec-95 $ 11,941 $ 11,853 $ 11,309
Dec-96 $ 12,618 $ 12,198 $ 11,780
Dec-97 $ 13,882 $ 13,387 $ 12,575
Dec-98 $ 14,410 $ 14,655 $ 13,408
Dec-99 $ 14,122 $ 14,340 $ 13,527
Periods ended on December 31st
* Beginning of operations. Index comparisons begin on 6/30/93.
** If the adviser and/or portfolio service providers had not limited certain
expenses, the portfolio's total return would have been lower.
The investment results represent past performance and should not be
construed as a 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.
The comparative index assumes reinvestment of dividends and, unlike a
portfolio's returns, does not reflect any fees or expenses. If such
fees were reflected in the comparative index's returns, the
performance would have been lower.
See definition of comparative indices on page 3.
6
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UAM FUNDS ANALYTIC
SHORT-TERM GOVERNMENT FUND
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[GRAPH]
Growth of a $10,000 Investment
AVERAGE ANNUAL TOTAL RETURN**
FOR PERIOD ENDED DECEMBER 31, 1999
Since
1 Year 5 Years 7/1/93*
2.54% 6.18% 5.07%
ANALYTIC MERRILL LIPPER
7/31/93 $ 10,000 $ 10,000 $ 10,000
Dec-93 $ 10,211 $ 10,204 $ 10,228
Dec-94 $ 10,220 $ 10,262 $ 10,211
Dec-95 $ 11,300 $ 11,388 $ 11,294
Dec-96 $ 11,899 $ 11,956 $ 11,807
Dec-97 $ 12,559 $ 12,752 $ 12,546
Dec-98 $ 13,451 $ 13,644 $ 13,283
Dec-99 $ 13,792 $ 14,062 $ 13,657
Periods ended on December 31st
* Beginning of operations. Index comparisons begin on 6/30/93.
** If the adviser and/or portfolio service providers had not limited certain
expenses, the portfolio's total return would have been lower.
The investment results represent past performance and should not be
construed as a 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.
The comparative index assumes reinvestment of dividends and, unlike a
portfolio's returns, does not reflect any fees or expenses. If such
fees were reflected in the comparative index's returns, the
performance would have been lower.
See definition of comparative indices on page 3.
7
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UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
DECEMBER 31, 1999
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PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 98.3%
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Shares Value
-------- ----------
AIRLINES -- 1.2%
Delta Air Lines..................................... 16,530 $ 823,401
----------
ALCOHOL -- 2.0%
Anheuser Busch+..................................... 19,950 1,413,956
----------
BANKS -- 5.3%
Chase Manhattan Bank+............................... 20,064 1,558,722
Firstar+............................................ 38,532 813,988
J.P. Morgan+........................................ 5,016 635,151
PNC Bank............................................ 16,644 740,658
----------
3,748,519
----------
BUILDING & CONSTRUCTION -- 0.4%
Owens-Corning Fiberglass............................ 14,820 286,211
----------
CHEMICALS -- 0.9%
Dow................................................. 1,254 167,566
Honeywell International............................. 4,446 256,479
Occidental Petroleum................................ 9,006 194,755
----------
618,800
----------
CLOTHING -- 1.8%
Limited+............................................ 29,640 1,283,782
----------
COMPUTER HARDWARE -- 10.1%
Cisco Systems*...................................... 7,410 793,796
Dell Computer*...................................... 28,500 1,453,500
Hewlett Packard+.................................... 15,960 1,818,442
International Business Machines+.................... 20,520 2,216,160
Lexmark International Group, Cl A*.................. 2,280 206,340
Pitney Bowes........................................ 13,908 671,930
----------
7,160,168
----------
COMPUTER SOFTWARE -- 10.3%
Computer Associates International................... 16,302 1,140,121
Microsoft*+......................................... 40,926 4,778,110
Novell*............................................. 35,226 1,406,838
----------
7,325,069
----------
The accompanying notes are an integral part of the financial statements.
8
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UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
DECEMBER 31, 1999
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- --------------------------------------------------------------------------------
COMMON STOCKS - continued
- --------------------------------------------------------------------------------
Shares Value
-------- ----------
DEPARTMENT STORES -- 0.4%
Wal-Mart Stores..................................... 4,218 $ 291,569
----------
ELECTRIC UTILITIES -- 1.0%
Edison International................................ 25,536 668,724
----------
ELECTRICAL EQUIPMENT -- 2.6%
Lucent Technologies+................................ 24,624 1,842,183
----------
ENERGY RESOURCES -- 4.4%
Atlantic Richfield+................................. 15,618 1,350,957
Exxon Mobil+........................................ 9,804 789,835
Phillips Petroleum.................................. 14,364 675,108
Union Pacific Resources Group+...................... 24,168 308,142
----------
3,124,042
----------
ENTERTAINMENT -- 0.3%
Viacom, Cl B*....................................... 3,990 241,146
----------
FINANCIAL SERVICES -- 4.9%
Dun & Bradstreet+................................... 4,218 124,431
General Electric+................................... 17,328 2,681,508
Providian Financial................................. 7,410 674,773
----------
3,480,712
----------
FOOD & BEVERAGES -- 2.2%
Coca-Cola+.......................................... 19,494 1,135,526
General Mills+...................................... 6,726 240,455
Unilever ADR*....................................... 3,762 204,794
----------
1,580,775
----------
FOREST PRODUCTS -- 1.0%
Georgia-Pacific..................................... 14,022 711,617
----------
GOLD -- 1.0%
Freeport-McMoran Copper & Gold, Cl B+............... 33,972 717,659
----------
GROCERY RETAILING -- 1.0%
Great Atlantic & Pacific Tea+....................... 25,992 724,527
----------
The accompanying notes are an integral part of the financial statements.
9
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UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
DECEMBER 31, 1999
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COMMON STOCKS - continued
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Shares Value
-------- ----------
HEAVY MACHINERY -- 0.3%
Cummins Engine+..................................... 4,788 $ 231,320
----------
INFORMATION SERVICES -- 4.0%
America Online*..................................... 4,674 352,595
Electronic Data Systems+............................ 7,752 518,900
First Data.......................................... 13,338 657,730
Yahoo!*+............................................ 2,964 1,282,486
----------
2,811,711
----------
INVESTMENT SERVICES -- 0.5%
Schwab (Charles)+................................... 9,690 371,854
----------
LEISURE & LUXURY -- 0.9%
Brunswick+.......................................... 28,956 644,271
----------
LIFE INSURANCE -- 2.0%
CIGNA+.............................................. 17,670 1,423,539
----------
MEDIA -- 4.8%
CBS................................................. 4,332 276,977
Comcast, Special, Cl A+............................. 23,826 1,204,702
Mediaone Group*+.................................... 14,478 1,112,091
Tribune............................................. 14,592 803,472
----------
3,397,242
----------
MEDICAL PRODUCTS -- 2.8%
Johnson & Johnson+.................................. 21,546 2,006,471
----------
MINING -- 1.8%
INCO................................................ 54,606 1,283,241
----------
MOTOR VEHICLES -- 5.4%
Ford Motor+......................................... 29,754 1,589,979
General Motors+..................................... 22,116 1,607,557
Navistar International*+............................ 3,534 167,423
Paccar+............................................. 10,374 459,698
----------
3,824,657
----------
The accompanying notes are an integral part of the financial statements.
10
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UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
DECEMBER 31, 1999
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- --------------------------------------------------------------------------------
COMMON STOCKS - continued
- --------------------------------------------------------------------------------
Shares Value
-------- ----------
PHARMACEUTICALS -- 8.2%
Amgen*+............................................. 19,152 $ 1,150,317
Bristol-Myers Squibb+............................... 18,012 1,156,145
Lilly (Eli)......................................... 4,788 318,402
Merck............................................... 13,452 902,125
Pfizer.............................................. 22,230 721,086
Schering Plough+.................................... 27,132 1,144,631
Warner-Lambert...................................... 4,788 392,317
------------
5,785,023
------------
PROPERTY INSURANCE -- 3.3%
American International Group+....................... 21,888 2,366,640
------------
SEMICONDUCTORS -- 4.8%
Intel+.............................................. 31,464 2,589,881
Micron Technology................................... 10,032 779,988
------------
3,369,869
------------
TELEPHONE -- 8.3%
Bell Atlantic+...................................... 27,930 1,719,441
BellSouth+.......................................... 36,936 1,729,067
GTE................................................. 5,586 394,162
MCI WorldCom*....................................... 16,074 852,927
Sprint.............................................. 14,250 959,203
US West+............................................ 2,736 196,992
------------
5,851,792
------------
WIRELESS TECHNOLOGY -- 0.4%
Sprint PCS Group*................................... 2,508 257,070
------------
TOTAL COMMON STOCKS
(Cost $60,983,989)............................... $69,667,560
------------
The accompanying notes are an integral part of the financial statements.
11
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UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
DECEMBER 31, 1999
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U.S. TREASURY OBLIGATIONS -- 0.5%
- --------------------------------------------------------------------------------
Face
Amount Value
---------- ----------
United States Treasury Bill (B) (C)
5.320%, 03/16/00 (Cost $351,276)................. $ 355,000 $ 351,347
----------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT -- 3.3%
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REPURCHASE AGREEMENT -- 3.3%
JP Morgan, 3.20%, dated 12/31/99, matures 01/03/00,
repurchase price $2,345,113 (Collateralized by
U.S. Government Agency Instruments:
total market value $2,392,273)
(Cost $2,344,496) (A)............................ 2,344,496 2,344,496
----------
TOTAL INVESTMENTS -- 102.1%
(Cost $63,679,761) (D)........................... 72,363,403
----------
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INDEX OPTIONS WRITTEN (2.3%)
- --------------------------------------------------------------------------------
Contracts
---------
Amex Institutional Index January 2000, 900 Call..... (110) (224,125)
Amex Oil Index January 2000, 510 Call............... (25) (23,750)
Amex Utility Index January 2000, 270 Call........... (25) (19,688)
Phlx K B W Bank Index January 2000, 775 Call........ (30) (68,625)
Phlx US Top 100 Index February 2000, 1440 Call...... (25) (326,875)
S&P 100 Index February 2000, 750 Call............... (50) (303,750)
S&P 500 Index February 2000, 1500 Call.............. (25) (85,313)
S&P 500 Index February 2000, 1600 Call.............. (30) (15,375)
S&P 500 Index January 2000, 1400 Call............... (30) (247,500)
S&P 500 Index January 2000, 1425 Call............... (50) (313,125)
S&P 500 Index January 2000, 1550 Call............... (50) (17,500)
------------
TOTAL INDEX OPTIONS
(Premiums received ($1,136,424))................. (1,645,626)
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.2%........... 123,973
------------
TOTAL NET ASSETS -- 100.0%.......................... $70,841,750
============
- --------------------------------------------------------------------------------
* Non-Income Producing Security
+ Security has been pledged as collateral for open written option contracts.
ADR American Depository Receipt
Cl Class
(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.
(D) The cost for federal income tax purposes was $64,120,045. At December 31,
1999, net unrealized appreciation for all securities based on tax cost was
$8,243,358. This consisted of aggregate gross unrealized appreciation for
all securities of $10,230,794 and aggregate gross unrealized depreciation
for all securities of $1,987,436.
The accompanying notes are an integral part of the financial statements.
12
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UAM FUNDS ANALYTIC FUNDS
ENHANCED EQUITY FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 90.1%
- --------------------------------------------------------------------------------
Shares Value
---------- ----------
AIRLINES -- 0.7%
AMR*................................................. 5,483 $ 367,361
Delta Air Lines...................................... 13,535 674,212
----------
1,041,573
----------
ALCOHOL -- 0.8%
Anheuser Busch....................................... 16,050 1,137,544
----------
BANKS -- 4.6%
Bank of America...................................... 13,287 666,841
Chase Manhattan Bank................................. 38,604 2,999,048
Fifth Third Bancorp.................................. 2,772 203,395
First Union.......................................... 27,091 888,923
J.P. Morgan.......................................... 11,461 1,451,249
PNC Bank............................................. 11,443 509,213
----------
6,718,669
----------
CHEMICALS -- 1.1%
Dow.................................................. 2,334 311,881
Honeywell International.............................. 8,508 490,805
Occidental Petroleum................................. 39,127 846,121
----------
1,648,807
----------
CLOTHING -- 1.2%
Limited.............................................. 40,574 1,757,361
----------
COMPUTER HARDWARE -- 7.9%
Cisco Systems*....................................... 14,181 1,519,140
Compaq Computer...................................... 5,212 141,050
Dell Computer*....................................... 64,435 3,286,185
Hewlett Packard...................................... 16,485 1,878,260
International Business Machines..................... 30,318 3,274,344
Pitney Bowes......................................... 15,399 743,964
Seagate Technology*.................................. 14,153 658,999
----------
11,501,942
----------
COMPUTER SOFTWARE -- 8.1%
Computer Associates International.................... 24,584 1,719,343
Compuware*........................................... 18,346 683,388
Microsoft*........................................... 79,716 9,306,843
----------
11,709,574
----------
The accompanying notes are an integral part of the financial statements.
13
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UAM FUNDS ANALYTIC FUNDS
ENHANCED EQUITY FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
- --------------------------------------------------------------------------------
Shares Value
-------- -----------
DEPARTMENT STORES -- 1.8%
Dayton Hudson......................................... 29,161 $ 2,141,511
Wal-Mart Stores....................................... 6,008 415,303
-----------
2,556,814
-----------
ELECTRIC UTILITIES -- 0.2%
Ameren................................................ 6,919 226,597
-----------
ELECTRICAL EQUIPMENT -- 3.6%
Lucent Technologies................................... 58,509 4,377,205
Tellabs*.............................................. 13,477 865,055
-----------
5,242,260
-----------
ENERGY RESOURCES -- 3.1%
Atlantic Richfield.................................... 12,103 1,046,909
Exxon Mobil........................................... 34,499 2,779,326
Phillips Petroleum.................................... 11,539 542,333
Texaco................................................ 3,150 171,084
-----------
4,539,652
-----------
ENTERTAINMENT -- 0.3%
Viacom, Cl B*......................................... 7,514 454,127
-----------
FINANCIAL SERVICES -- 7.1%
American Express...................................... 14,638 2,433,568
Dun & Bradstreet...................................... 23,569 695,286
Freddie Mac........................................... 3,760 176,955
General Electric...................................... 39,267 6,076,568
Providian Financial................................... 9,672 880,757
-----------
10,263,134
-----------
FOOD & BEVERAGES -- 3.4%
Coca-Cola............................................. 35,842 2,087,797
General Mills......................................... 42,995 1,537,071
Unilever ADR*......................................... 24,903 1,355,657
-----------
4,980,525
-----------
FOREST PRODUCTS -- 1.3%
Georgia-Pacific....................................... 36,994 1,877,446
-----------
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
- --------------------------------------------------------------------------------
Shares Value
-------- -----------
GAS UTILITIES -- 0.3%
Peoples Energy........................................ 13,720 $ 459,620
-----------
GOLD -- 0.5%
Freeport-McMoran Copper & Gold, Cl B.................. 34,088 720,109
-----------
HEAVY ELECTRICAL -- 0.8%
Thomas & Betts........................................ 37,760 1,203,600
-----------
HEAVY MACHINERY -- 0.2%
Caterpillar........................................... 7,304 343,745
-----------
HOME PRODUCTS -- 0.7%
Tupperware............................................ 61,662 1,044,400
-----------
INDUSTRIAL SERVICES -- 0.4%
Ryder System.......................................... 22,936 560,499
-----------
INFORMATION SERVICES -- 4.0%
America Online*....................................... 9,065 683,841
Electronic Data Systems............................... 7,604 508,993
First Data............................................ 54,344 2,679,839
Yahoo!*............................................... 4,345 1,880,027
-----------
5,752,700
-----------
INVESTMENT SERVICES -- 0.3%
Schwab (Charles)...................................... 13,288 509,927
-----------
LEISURE & LUXURY -- 1.1%
Brunswick............................................. 71,887 1,599,486
-----------
MEDIA -- 4.2%
CBS................................................... 8,259 528,060
Comcast, Special, Cl A................................ 45,781 2,314,802
Mediaone Group*....................................... 20,003 1,536,480
Tribune............................................... 31,220 1,719,051
-----------
6,098,393
-----------
MEDICAL PRODUCTS -- 2.9%
Johnson & Johnson..................................... 21,767 2,027,052
Tyco International.................................... 57,015 2,216,458
-----------
4,243,510
-----------
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
UAM FUNDS ANALYTIC FUNDS
ENHANCED EQUITY FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
- --------------------------------------------------------------------------------
Shares Value
-------- -----------
MINING -- 0.7%
INCO.................................................. 41,705 $ 980,068
-----------
MOTOR VEHICLES -- 3.8%
Ford Motor............................................ 39,046 2,086,521
General Motors........................................ 32,691 2,376,227
Paccar................................................ 23,332 1,033,899
-----------
5,496,647
-----------
OIL REFINING -- 0.6%
Conoco, Cl B.......................................... 34,912 868,436
-----------
PHARMACEUTICALS -- 7.6%
Amgen*................................................ 9,908 595,099
Bristol-Myers Squibb.................................. 42,867 2,751,526
Merck................................................. 65,432 4,388,034
Pfizer................................................ 42,732 1,386,119
Schering Plough....................................... 26,956 1,137,206
Warner-Lambert........................................ 9,310 762,838
-----------
11,020,822
-----------
PROPERTY INSURANCE -- 3.1%
American International Group.......................... 23,386 2,528,611
Loews................................................. 31,611 1,918,393
-----------
4,447,004
-----------
SEMICONDUCTORS -- 5.0%
Advanced Micro Devices*............................... 34,664 1,003,090
Intel................................................. 41,231 3,393,827
Micron Technology..................................... 14,217 1,105,372
Texas Instruments..................................... 17,661 1,710,909
-----------
7,213,198
-----------
SPECIALTY RETAIL -- 0.6%
Lowe's................................................ 13,433 802,622
-----------
TELEPHONE -- 7.8%
AT&T.................................................. 12,503 634,527
Bell Atlantic......................................... 44,532 2,741,501
BellSouth............................................. 41,938 1,963,223
GTE................................................... 10,771 760,029
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
- --------------------------------------------------------------------------------
Shares/
Face Amount Value
----------- ------------
TELEPHONE -- continued
MCI WorldCom*....................................... 21,592 $ 1,145,752
Sprint.............................................. 42,977 2,892,889
US West............................................. 16,716 1,203,552
------------
11,341,473
------------
WIRELESS TECHNOLOGY -- 0.3%
Sprint PCS Group*................................... 4,584 469,860
------------
TOTAL COMMON STOCKS
(Cost $122,530,651).............................. 130,832,144
------------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 0.6%
- --------------------------------------------------------------------------------
United States Treasury Bill (B) (C)
5.020%, 03/16/00 (Cost $846,339)................. $ 855,000 846,202
------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 8.7%
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS -- 8.7%
JP Morgan, 3.14%, dated 12/31/99, matures 01/03/00,
repurchase price $10,557,424 (Collateralized by
U.S. Government Agency Instruments:
total market value $10,765,748) (A).............. 10,554,700 10,554,700
Morgan Stanley, 3.14%, dated 12/31/99, matures
01/03/00, repurchase price $2,152,027
(Collateralized by U.S. Government Agency
Instruments:
total market value $2,205,575) (A)............... 2,151,472 2,151,472
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $12,706,172)............................... 12,706,172
------------
TOTAL INVESTMENTS -- 99.4%
(Cost $136,083,162) (D).......................... 144,384,518
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.6%........... 800,537
------------
TOTAL NET ASSETS -- 100.0%.......................... $145,185,055
============
- --------------------------------------------------------------------------------
* Non-Income Producing Security
ADR American Depository Receipt
Cl Class
(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.
(D) The cost for federal income tax purposes was $136,503,710. At December 31,
1999, net unrealized appreciation for all securities based on tax cost was
$7,880,808. This consisted of aggregate gross unrealized appreciation for
all securities of $12,456,486 and aggregate gross unrealized depreciation
for all securities of $4,575,678.
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
UAM FUNDS ANALYTIC FUNDS
MASTER FIXED INCOME FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
CORPORATE BONDS -- 19.2%
- --------------------------------------------------------------------------------
Face
Amount Value
---------- ----------
American Home Products
7.900%, 02/15/05................................. $ 200,000 $ 201,750
First Chicago NBD
6.125%, 02/15/06................................. 250,000 230,625
Gillette Company
5.750%, 10/15/05................................. 300,000 281,250
GTE California
5.500%, 01/15/09................................. 175,000 152,688
----------
TOTAL CORPORATE BONDS
(Cost $924,843).................................. 866,313
----------
- --------------------------------------------------------------------------------
INDEX OPTION -- 0.0%
- --------------------------------------------------------------------------------
S&P 100 Index January 2000, 700 Puts (Cost $3,627).. 9 1,800
----------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 10.2%
- --------------------------------------------------------------------------------
Federal National Mortgage Association
6.640%, 07/02/07 (Cost $512,765)................. 470,000 459,124
----------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 68.8%
- --------------------------------------------------------------------------------
U.S. Treasury Bill
4.810%, 03/16/00 (B) (C)......................... 40,000 39,588
5.060%, 03/30/00 (B)+............................ 1,740,000 1,718,302
U.S. Treasury Bond
12.375%, 05/15/04................................. 310,000 377,614
8.875%, 02/15/19................................. 150,000 182,541
8.125%, 08/15/19................................. 300,000 341,775
U.S. Treasury Notes
6.500%, 05/31/02................................. 160,000 160,762
7.500%, 02/15/05................................. 100,000 104,264
5.625%, 05/15/08................................. 200,000 188,084
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $3,232,719)................................ 3,112,930
----------
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
UAM FUNDS ANALYTIC FUNDS
MASTER FIXED INCOME FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- continued
- --------------------------------------------------------------------------------
Value
------------
TOTAL INVESTMENTS -- 98.2%
(Cost $4,673,954) (D)................................ $ 4,440,167
------------
- --------------------------------------------------------------------------------
INDEX OPTIONS WRITTEN (0.3%)
- --------------------------------------------------------------------------------
Contracts
---------
Interactive Week Internet Index January 2000, 480 Puts.. (5) (3,750)
Morgan Stanley Cyclical Index January 2000, 540 Puts.... (5) (1,625)
Nasdaq 100 Trust Series I Index January 2000, 158 Puts.. (10) (2,000)
Phlx Forest/Paper Index January 2000, 325 Puts.......... (5) (469)
S&P 100 Index January 2000, 740 Puts.................... (10) (4,500)
------------
Total Index Options (Premiums received ($27,706))....... (12,344)
------------
OTHER ASSETS AND LIABILITIES, NET -- 2.1%............... 95,142
------------
TOTAL NET ASSETS -- 100.0%.............................. $ 4,522,965
============
- --------------------------------------------------------------------------------
+ Security has been pledged as collateral for open written option contracts.
(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 position contracts.
(D) The cost for federal income tax purposes was $4,674,155. At December 31,
1999, net unrealized depreciation for all securities based on tax cost was
$233,988. This consisted of aggregate gross unrealized appreciation for all
securities of $0 and aggregate gross unrealized depreciation for all
securities of $233,988.
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
CORPORATE OBLIGATIONS -- 5.3%
- --------------------------------------------------------------------------------
Face
Amount Value
-------- ----------
Nippon Telephone & Telegraph
6.000%, 06/30/00 (Cost $200,060)................ $200,000 $ 199,480
----------
- --------------------------------------------------------------------------------
FOREIGN BONDS -- 7.5%
- --------------------------------------------------------------------------------
Shell Canada
8.875%, 01/14/01 (Cost $296,574)................ 275,000 280,742
----------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 42.4%
- --------------------------------------------------------------------------------
Federal National Mortgage Association
5.375%, 03/15/02................................ 750,000 732,187
Federal National Mortgage Association Medium Term Note
6.180%, 03/15/01................................ 750,000 747,788
6.670%, 08/01/01................................ 100,000 100,228
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,599,305)............................... 1,580,203
----------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 41.0%
- --------------------------------------------------------------------------------
United States Treasury Bill (B) (C)
4.910%, 03/16/00................................ 30,000 29,691
U.S. Treasury Notes
6.375%, 03/31/01................................ 325,000 325,744
6.250%, 01/31/02................................ 150,000 149,933
6.625%, 03/31/02................................ 100,000 100,718
6.500%, 05/31/02................................ 100,000 100,476
6.250%, 06/30/02................................ 300,000 299,793
6.375%, 08/15/02................................ 100,000 100,193
6.250%, 08/31/02................................ 75,000 74,901
5.875%, 09/30/02................................ 350,000 346,353
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,555,259)............................... 1,527,802
----------
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT -- 3.2%
- --------------------------------------------------------------------------------
Face
Amount Value
-------- -----------
REPURCHASE AGREEMENT -- 3.2%
Morgan Stanley 5.25%, Dated 12/31/99, Matures 01/03/00,
repurchase price $118,235, (collateralized by U.S.
Government Agency Instruments: total market value
$121,702) (Cost $118,184) (A)....................... $118,184 $ 118,184
-----------
TOTAL INVESTMENTS -- 99.4%
(Cost $3,769,382) (D)............................... 3,706,411
-----------
OTHER ASSETS AND LIABILITIES, NET -- 0.6%.............. 22,909
-----------
TOTAL NET ASSETS -- 100.0%............................. $ 3,729,320
===========
- --------------------------------------------------------------------------------
(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.
(D) The cost for federal income tax purposes was $3,769,382. At December 31,
1999, net unrealized depreciation for all securities based on tax cost was
$62,971. This consisted of aggregate gross unrealized appreciation for all
securities of $0 and aggregate gross unrealized depreciation for all
securities of $62,971.
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
UAM FUNDS ANALYTIC FUNDS
INTERNATIONAL FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 88.6%
- --------------------------------------------------------------------------------
Shares Value
---------- ----------
AUSTRALIA -- 2.7%
Coles Myer ADR....................................... 778 $ 31,898
Westpac Banking ADR.................................. 367 12,616
----------
44,514
----------
DENMARK -- 1.3%
Novo-Nordisk ADR..................................... 328 21,197
----------
FINLAND -- 2.1%
Metso ADR*........................................... 496 6,696
Nokia ADR............................................ 103 19,570
UPM-Kymmene ADR...................................... 223 9,533
----------
35,799
----------
FRANCE -- 8.4%
Axa ADR.............................................. 400 28,400
France Telecom ADR................................... 374 49,929
LVMH ADR............................................. 158 14,378
Pechiney ADR......................................... 403 14,634
Rhodia ADR........................................... 90 2,126
Scor ADR............................................. 69 3,053
Total Fina ADR....................................... 381 26,385
----------
138,905
----------
GERMANY -- 8.8%
Allianz, Registered.................................. 36 12,090
Deutsche Bank ADR.................................... 126 10,710
Deutsche Telekom ADR................................. 771 54,741
SAP ADR.............................................. 501 26,083
Siemens ADR.......................................... 134 17,085
Veba ADR............................................. 502 25,131
----------
145,840
----------
HONG KONG -- 1.6%
Cable & Wireless HKT ADR............................. 897 26,125
----------
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
UAM FUNDS ANALYTIC FUNDS
INTERNATIONAL FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS -- continued
- --------------------------------------------------------------------------------
Shares Value
---------- ----------
IRELAND -- 0.3%
Allied Irish Banks ADR................................ 79 $ 1,669
Waterford Wedgwood ADR................................ 376 3,666
----------
5,335
----------
ITALY -- 2.6%
Benetton Group ADR.................................... 121 5,498
Fiat ADR.............................................. 396 11,930
INA ADR............................................... 431 10,613
Luxottica Group ADR................................... 147 2,582
Montedison ADR........................................ 417 6,776
San Paolo-IMI ADR..................................... 211 5,776
----------
43,175
----------
JAPAN -- 20.8%
Bank of Tokyo-Mitsubishi.............................. 1,000 13,932
Chubu Electric Power.................................. 500 8,145
Chugai Pharmaceutical................................. 1,000 10,811
Citizen Watch......................................... 1,000 6,359
Dai-Ichi Kangyo Bank.................................. 1,000 9,344
Fanuc................................................. 100 12,729
Hankyu................................................ 1,000 3,571
Heiwa................................................. 200 3,912
Hitachi............................................... 1,000 16,045
Kajima................................................ 1,000 2,984
Kawasaki Steel*....................................... 3,000 5,371
Kirin Brewery......................................... 1,000 10,518
Kyowa Hakko Kogyo..................................... 1,000 5,997
Maeda................................................. 1,000 2,945
Matsushita Electric Works............................. 1,000 9,882
Mitsubishi............................................ 1,000 7,719
Mitsubishi Electric................................... 1,000 6,457
Mitsubishi Motors*.................................... 1,000 3,415
Mitsui Soko........................................... 1,000 2,064
Mitsukoshi*........................................... 1,000 3,522
Nippon Express........................................ 1,000 5,528
Nippon Paper Industries............................... 1,000 5,508
Nippon Steel.......................................... 2,000 4,677
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
UAM FUNDS ANALYTIC FUNDS
INTERNATIONAL FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS -- continued
- --------------------------------------------------------------------------------
Shares Value
---------- ----------
JAPAN -- continued
Nippon Telegraph & Telephone......................... 1 $ 17,122
Nissan Motor*........................................ 1,000 3,933
NTT Data............................................. 1 22,992
Promise.............................................. 100 5,088
Sakura Bank.......................................... 1,000 5,792
Sanyo Electric....................................... 1,000 4,060
Sharp................................................ 1,000 25,585
Sony................................................. 100 29,645
Sumitomo Bank........................................ 1,000 13,687
Sumitomo Electric Industries......................... 1,000 11,555
Sumitomo Rubber Industries........................... 1,000 4,422
Taiheiyo Cement...................................... 1,000 1,908
Tokio Marine & Fire Insurance........................ 1,000 11,692
Tokyo Electric Power................................. 200 5,361
Tokyu................................................ 1,000 2,436
Toppan Printing...................................... 1,000 9,979
Toshiba.............................................. 1,000 7,631
----------
344,323
----------
LUXEMBOURG -- 0.4%
Espirito Santo Financial Group ADR................... 461 7,261
----------
NETHERLANDS -- 6.7%
Aegon ARS............................................ 310 29,605
Ahold ADR............................................ 246 7,365
Elsevier ADR......................................... 647 15,447
ING Groep ADR........................................ 178 10,858
Philips Electronics ADR.............................. 46 6,210
Royal Dutch Petroleum ADR............................ 538 32,515
TNT Post Group ADR................................... 342 9,790
----------
111,790
----------
NEW ZEALAND -- 0.1%
Sky Network Television ADR*.......................... 118 1,888
----------
NORWAY -- 0.3%
Stolt-Nielsen ADR.................................... 311 4,432
----------
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS -- continued
- --------------------------------------------------------------------------------
Shares Value
---------- ----------
SINGAPORE -- 0.3%
Creative Technology.................................. 251 $ 4,361
----------
SPAIN -- 1.7%
Argentaria ADR....................................... 433 20,134
Endesa ADR........................................... 414 8,358
----------
28,492
----------
SWEDEN -- 2.7%
Ericsson ADR......................................... 519 34,092
Swedish Match ADR.................................... 105 3,649
Volvo ADR............................................ 258 6,514
----------
44,255
----------
SWITZERLAND -- 4.9%
Credit Suisse Group ADR.............................. 138 6,865
Nestle ADR........................................... 352 32,032
Novartis ADR......................................... 428 31,084
Swisscom ADR......................................... 289 11,705
----------
81,686
----------
UNITED KINGDOM -- 22.9%
Abbey National....................................... 61 977
Allied Zurich........................................ 503 5,936
Anglo American....................................... 11 732
AstraZeneca Group.................................... 307 12,753
Barclays............................................. 325 9,368
Billiton............................................. 1,000 5,908
BOC Group............................................ 252 5,422
BP Amoco............................................. 2,979 29,997
British Aerospace.................................... 39 259
British Aerospace Loan Stock......................... 12 19
British Sky Broadcasting Group....................... 67 1,080
British Telecommunications........................... 1,229 30,079
Cable & Wireless..................................... 93 1,578
Capital Radio........................................ 67 1,626
Centrica............................................. 2,034 5,774
Colt Telecom Group*.................................. 153 7,843
Cookson Group........................................ 615 2,487
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
UAM FUNDS ANALYTIC FUNDS
DEFENSIVE EQUITY FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS -- continued
- --------------------------------------------------------------------------------
Shares Value
---------- ----------
UNITED KINGDOM -- continued
Countrywide Assured Group............................ 1,042 $ 2,562
Diageo............................................... 170 1,369
Dixons Group......................................... 193 4,649
Energis*............................................. 99 4,763
Enterprise Inns...................................... 418 2,757
Eurotunnel Rights*................................... 1,466 21
Eurotunnel UTS*...................................... 1,466 1,672
First Choice Holidays................................ 865 1,819
Glaxo Wellcome....................................... 409 11,578
Granada Group........................................ 149 1,512
GWR Group............................................ 243 2,543
Halifax.............................................. 172 1,910
HSBC Holdings........................................ 1,675 23,383
HSBC Holdings ADR.................................... 280 19,985
Imperial Tobacco Group............................... 350 2,887
Invensys............................................. 1,199 6,536
Lloyds TSB Group..................................... 1,096 13,731
London Bridge Software Holdings...................... 28 1,914
Marconi.............................................. 92 1,630
Matalan.............................................. 102 2,807
Millennium & Copthorne Hotels........................ 327 2,002
Millennium & Copthorne Hotels RFD*................... 57 323
National Westminster Bank............................ 391 8,412
Next................................................. 240 2,306
NFC.................................................. 382 1,514
Norwich Union........................................ 148 1,098
Ocean Group.......................................... 156 2,915
Peninsular and Oriental Steam Navigation............. 296 4,922
Photo-Me International............................... 380 1,967
Premier Farnell...................................... 329 2,451
Prudential........................................... 578 11,407
Reuters Group........................................ 247 3,394
Royal Bank of Scotland Group......................... 282 5,009
Sage Group........................................... 460 5,622
Scottish Power....................................... 578 4,385
Serco Group.......................................... 10 314
Shell Transport & Trading............................ 2,277 18,950
Smith & Nephew....................................... 831 2,796
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
UAM FUNDS ANALYTIC FUNDS
INTERNATIONAL FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMON STOCKS -- continued
- --------------------------------------------------------------------------------
Shares/
Face Amount Value
----------- -----------
UNITED KINGDOM -- continued
SmithKline Beecham................................. 1,060 $ 13,546
Standard Chartered................................. 341 5,301
Tate & Lyle........................................ 359 2,311
Taylor Nelson Sorfres.............................. 552 2,429
Tesco.............................................. 2,173 6,617
Trinity Mirror..................................... 108 1,156
Unilever........................................... 851 6,270
Vodafone AirTouch.................................. 5,092 25,266
WPP Group.......................................... 301 4,776
-----------
379,325
-----------
TOTAL COMMON STOCKS
(Cost $1,326,506)............................... 1,468,703
-----------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 1.2%
- --------------------------------------------------------------------------------
U.S. Treasury Bill (A) (B)
4.700%, 03/16/00 (Cost $19,804)................. $20,000 19,792
-----------
TOTAL INVESTMENTS -- 89.8%
(Cost $1,346,310) (C)........................... 1,488,495
-----------
OTHER ASSETS AND LIABILITIES, NET -- 10.2%......... 169,666
-----------
TOTAL NET ASSETS -- 100.0%......................... $ 1,658,161
===========
- --------------------------------------------------------------------------------
* Non-income producing security.
ADR -- American Depository Receipts
ARS -- American Registered Shares
RFD -- Rank For Dividends
UTS -- Units
(A) The rate reflected on the Portfolio of Investments represents the
securities discount rate at purchase.
(B) Security has been pledged as collateral for open future positions.
(C) The cost for federal income tax purposes was $1,346,310. At December 31,
1999, net unrealized appreciation for all securities based on tax cost was
$142,185. This consisted of aggregate gross unrealized appreciation for all
securities of $205,154 and aggregate gross unrealized depreciation for all
securities of $62,969.
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
UAM FUNDS ANALYTIC FUNDS
INTERNATIONAL FUND
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
At December 31, 1999, sector diversification of the Fund was as follows
(Unaudited):
% of
Industry Net Assets Value
-------- ---------- ----------
COMMON STOCK
Telecommunications.................................. 18.54% $ 307,434
Financial Services.................................. 12.82 212,540
Insurance........................................... 6.87 113,893
Oil and Gas......................................... 6.85 113,622
Pharmaceuticals..................................... 6.45 106,965
Electronic Equipment................................ 5.86 97,084
Food and Beverages.................................. 4.88 80,860
Manufacturing....................................... 4.32 71,692
Retail.............................................. 3.28 54,298
Consumer Products................................... 2.58 42,720
Transportation...................................... 2.22 36,800
Software............................................ 2.03 33,619
Metals and Mining................................... 1.84 30,590
Automotive.......................................... 1.82 30,214
Commercial Services................................. 1.74 28,824
Media............................................... 1.64 27,135
Electric Utilities.................................. 1.58 26,249
Paper and Related Products.......................... 0.91 15,042
Chemicals........................................... 0.86 14,324
Distribution/Wholesale.............................. 0.47 7,719
Tobacco............................................. 0.39 6,536
Medical Products.................................... 0.32 5,378
Real Estate......................................... 0.15 2,562
Lodging............................................. 0.14 2,325
Aerospace/Defense................................... 0.02 278
------ ----------
TOTAL COMMON STOCK.................................. 88.58% $1,468,703
U.S. TREASURY INSTRUMENTS........................... 1.19 19,792
------ ----------
TOTAL INVESTMENTS................................... 89.77% $1,488,495
OTHER ASSETS AND LIABILITIES, NET................... 10.23 169,666
------ ----------
NET ASSETS.......................................... 100.00% $1,658,161
====== ==========
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
[This Page Left Intentionally Blank]
<PAGE>
UAM FUNDS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS & LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Defensive Equity Fund Enhanced Equity Fund
--------------------- --------------------
<S> <C> <C>
Assets
Investments, at Cost .................................. $63,679,761 $136,083,162
----------- ------------
Investments, at Value ................................. $72,363,403 $144,384,518
Cash .................................................. -- --
Receivable for Investment Securities Sold ............. 95,457 --
Dividends and Interest Receivable ..................... 61,463 137,989
Receivable from Adviser ............................... -- --
Receivable for Portfolio Shares Sold .................. 234,727 929,455
Receivable for Daily Variation on
Futures Contracts .................................. 15,300 37,500
Foreign Withholding Tax Reclaim Receivable ............ -- --
----------- ------------
Total Assets ....................................... 72,770,350 145,489,462
----------- ------------
Liabilities
Written Options Outstanding at
Market Value (premium
received $1,136,424, $0, $27,706,
$0 and $0, respectively) ........................... 1,645,626 --
Payable to Custodian Bank ............................. -- --
Payable for Investment Advisory Fees .................. 29,577 52,184
Payable for Administration Fees ....................... 10,320 13,671
Payable for Directors' Fees ........................... 2,857 706
Payable for Portfolio Shares Redeemed ................. 147,368 201,333
Payable for Daily Variation on
Futures Contracts .................................. -- --
Other Liabilities ..................................... 92,852 36,513
----------- ------------
Total Liabilities .................................. 1,928,600 304,407
----------- ------------
Net Assets ............................................ $70,841,750 $145,185,055
=========== ============
Net Assets Consist of:
Paid in Capital ....................................... $64,770,741 $137,122,885
Undistributed Net Investment Income (Loss) ............ 45,146 --
Accumulated Net Realized Gain (Loss) .................. (2,381,539) (807,961)
Unrealized Appreciation (Depreciation) ................ 8,407,402 8,870,131
----------- ------------
Net Assets ............................................ $70,841,750 $145,185,055
=========== ============
Institutional Class Shares:
Shares Issued and Outstanding (authorized
100 million shares-- $0.001 par value) ........... 5,992,886 11,794,337
----------- ------------
Net Asset Value, Offering and
Redemption Price Per Share ............................ $ 11.82 $ 12.31
=========== ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
ANALYTIC FUNDS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Master Fixed Income Fund Short-Term Government Fund International Fund
------------------------ -------------------------- ------------------
$4,673,954 $3,769,382 $ 1,346,310
---------- ---------- -----------
$4,440,167 $3,706,411 $ 1,488,495
-- -- 162,299
100,469 -- --
60,593 66,562 2,638
8,953 9,332 18,490
-- -- --
9,031 3,468 --
-- -- 58
---------- ---------- -----------
4,619,213 3,785,773 1,671,980
---------- ---------- -----------
12,344 -- --
32,086 -- --
-- -- --
5,003 6,127 5,495
816 289 44
810 18 --
9,687 3,991 617
35,502 46,028 7,663
---------- ---------- -----------
96,248 56,453 13,819
---------- ---------- -----------
$4,522,965 $3,729,320 $ 1,658,161
========== ========== ===========
$5,006,628 $4,630,219 $ 1,476,350
(1,745) (631) (1,068)
(250,933) (831,182) 31,199
(230,985) (69,086) 151,680
---------- ---------- -----------
$4,522,965 $3,729,320 $ 1,658,161
========== ========== ===========
495,589 381,058 147,362
---------- ---------- -----------
$ 9.13 $ 9.79 $ 11.25
========== ========== ===========
31
<PAGE>
UAM FUNDS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
Enhanced
Defensive Equity Fund Equity Fund
--------------------- -------------
Investment Income
Dividends ................................. $ 984,981 $ 853,993
Interest .................................. 193,702 387,778
Less: Foreign Taxes Withheld .............. (2,898) (2,713)
----------- -----------
Total Investment Income ................ 1,175,785 1,239,058
----------- -----------
Expenses
Investment Advisory Fees .................. 396,366 359,313
Administration Fees ....................... 186,052 128,501
Custodian Fees ............................ 13,985 8,779
Audit Fees ................................ 19,053 14,870
Legal Fees ................................ 14,045 7,005
Shareholder Servicing Fees ................ 22,590 37,674
Printing Fees ............................. 17,688 4,983
Directors' Fees ........................... 20,437 11,914
Registration and Filing Fees .............. 35,430 34,684
Other Expenses ............................ 48,217 51,615
Distribution Fees ......................... 9,298 5,697
----------- -----------
Total Expenses ......................... 783,161 665,035
----------- -----------
Waiver of Investment Advisory Fees ........ (94,228) (70,227)
Reimbursement of Other Expenses by
Adviser ................................ -- --
----------- -----------
Net Expenses ........................... 688,933 594,808
----------- -----------
Net Investment Income ..................... 486,852 644,250
----------- -----------
Net Realized Gain (Loss) on:
Investments ............................ 11,581,898 5,518,217
Written Options ........................ (725,482) --
Foreign Currency Transactions .......... -- --
Futures ................................ 176,451 1,193,190
----------- -----------
Total Net Realized Gain (Loss) ............ 11,032,867 6,711,407
----------- -----------
Change in Unrealized Appreciation
(Depreciation):
Investments ............................ 719,680 4,757,291
Written Options ........................ (274,554) --
Foreign Currency Transactions .......... -- --
Futures ................................ 232,962 394,650
----------- -----------
Net Change in Unrealized Appreciation
(Depreciation) ......................... 678,088 5,151,941
----------- -----------
Net Realized and Unrealized Gain (Loss) .. 11,710,955 11,863,348
----------- -----------
Increase (Decrease) in Net Assets Resulting
from Operations ........................ $12,197,807 $12,507,598
=========== ===========
* The Analytic International Fund commenced operations on September 30, 1999.
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
ANALYTIC FUNDS
FOR THE YEAR ENDED
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Short-Term
Master Fixed Income Fund Government Fund International Fund*
------------------------ --------------- -------------------
$ -- $ -- $ 3,613
317,062 281,480 3,749
-- -- (204)
--------- --------- ---------
317,062 281,480 7,158
--------- --------- ---------
23,789 13,250 3,652
60,894 62,048 19,672
8,552 2,771 8,097
15,477 15,456 8,500
2,857 2,568 2,052
766 711 366
2,283 5,311 2,309
3,389 2,859 811
8,098 10,310 4,112
18,477 18,586 2,070
809 868 --
--------- --------- ---------
145,391 134,738 51,641
--------- --------- ---------
(23,789) (13,250) (3,652)
(75,581) (90,806) (43,241)
--------- --------- ---------
46,021 30,682 4,748
--------- --------- ---------
271,041 250,798 2,410
--------- --------- ---------
(101,662) (88,513) 4,281
78,917 -- --
-- -- (3,155)
(11,246) 50,404 28,928
--------- --------- ---------
(33,991) (38,109) 30,054
--------- --------- ---------
(328,592) (94,061) 142,185
5,088 -- --
-- -- 2
(23,796) (10,030) 9,493
--------- --------- ---------
(347,300) (104,091) 151,680
--------- --------- ---------
(381,291) (142,200) 181,734
--------- --------- ---------
$(110,250) $ 108,598 $ 184,144
========= ========= =========
33
<PAGE>
UAM FUNDS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Defensive Equity Fund Enhanced Equity Fund
----------------------------- -----------------------------
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
----------------------------- -----------------------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income ........................... $ 486,852 $ 202,592 $ 644,250 $ 139,106
Net Realized Gain (Loss) from
Security Transactions ......................... 11,032,867 12,959,836 6,711,407 1,160,166
Net Change in Unrealized
Appreciation (Depreciation) ................... 678,088 (955,197) 5,151,941 3,219,958
------------ ------------ ------------ ------------
Net Increase (Decrease) in Net
Assets Resulting from
Operations .................................... 12,197,807 12,207,231 12,507,598 4,519,230
------------ ------------ ------------ ------------
Distributions:
Net Investment Income ........................... (426,622) (202,592) (644,250) (139,106)
In Excess of Net Investment Income .............. -- (16,547) (400) (11,348)
Net Realized Gain ............................... (11,032,867) (14,197,773) (6,711,407) (1,552,303)
In Excess of Net Realized Gain .................. (907,335) -- (409,193) --
------------ ------------ ------------ ------------
Total Distributions ............................. (12,366,824) (14,416,912) (7,765,250) (1,702,757)
------------ ------------ ------------ ------------
Capital Share Transactions (1):
Issued .......................................... 38,394,761 23,440,046 123,588,384 37,872,222
In Lieu of Cash Distributions ................... 12,012,217 14,214,749 7,609,964 1,625,000
Redeemed ........................................ (35,417,260) (25,709,722) (24,644,159) (15,756,019)
------------ ------------ ------------ ------------
Net Increase (Decrease) from Capital
Share Transactions ............................ 14,989,718 11,945,073 106,554,189 23,741,203
------------ ------------ ------------ ------------
Total Increase (Decrease) in
Net Assets .................................... 14,820,701 9,735,392 111,296,537 26,557,676
------------ ------------ ------------ ------------
Net Assets:
Beginning of Period ............................. 56,021,049 46,285,657 33,888,518 7,330,842
------------ ------------ ------------ ------------
End of Period ................................... $ 70,841,750 $ 56,021,049 $145,185,055 $ 33,888,518
============ ============ ============ ============
(1)Shares Issued and Redeemed:
Issued .......................................... 2,928,264 1,712,065 10,118,879 3,775,473
In Lieu of Cash Distributions ................... 1,044,605 1,359,489 635,075 161,494
Redeemed ........................................ (2,740,814) (2,040,891) (2,067,583) (1,698,955)
------------ ------------ ------------ ------------
Net Increase in Shares Outstanding .............. 1,232,055 1,030,663 8,686,371 2,238,012
============ ============ ============ ============
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
ANALYTIC FUNDS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Short-Term
Master Fixed Income Fund Government Fund International Fund
-------------------------------- ------------------------------- -------------------
Year Ended Year Ended Year Ended Year Ended September 30, 1999*
December 31, December 31, December 31, December 31, to
1999 1998 1999 1998 December 31, 1999
-------------------------------- ------------------------------- -------------------
<S> <C> <C> <C> <C>
$ 271,041 $ 250,162 $ 250,798 $ 192,522 $ 2,410
(33,991) (177,416) (38,109) 4,700 30,054
(347,300) 99,705 (104,091) 40,380 151,680
----------- ------------ ----------- ------------ ------------
(110,250) 172,451 108,598 237,602 184,144
----------- ------------ ----------- ------------ ------------
(271,041) (250,162) (247,686) (192,522) (323)
(1,104) (302) -- (3,485) --
-- (30,480) -- -- (2,010)
-- -- -- -- --
----------- ------------ ----------- ------------ ------------
(272,145) (280,944) (247,686) (196,007) (2,333)
----------- ------------ ----------- ------------ ------------
1,954,031 2,574,096 1,158,772 2,550,601 1,474,017
255,148 245,226 246,484 174,351 2,333
(2,258,036) (3,468,172) (2,796,079) (484,860) --
----------- ------------ ----------- ------------ ------------
(48,857) (648,850) (1,390,823) 2,240,092 1,476,350
----------- ------------ ----------- ------------ ------------
(431,252) (757,343) (1,529,911) 2,281,687 1,658,161
----------- ------------ ----------- ------------ ------------
4,954,217 5,711,560 5,259,231 2,977,544 --
----------- ------------ ----------- ------------ ------------
$ 4,522,965 $ 4,954,217 $ 3,729,320 $ 5,259,231 $ 1,658,161
=========== ============ =========== ============ ============
204,226 257,174 116,714 253,112 147,144
27,073 24,619 24,703 17,334 218
(240,544) (347,983) (281,086) (48,498) --
----------- ------------ ----------- ------------ ------------
(9,245) (66,190) (139,669) 221,948 147,362
=========== ============ =========== ============ ============
</TABLE>
35
<PAGE>
UAM FUNDS DEFENSIVE EQUITY FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Years Ended December 31,
-------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period .. $11.77 $12.41 $13.71 $12.64 $10.60
Income from Investment Operations
Net Investment Income .............. 0.10 0.05 0.12 0.19 0.23
Net Realized and Unrealized Gain ... 2.33 3.05 2.49 1.78 2.04
------ ------ ------ ------ ------
Total from Investment Operations ... 2.43 3.10 2.61 1.97 2.27
------ ------ ------ ------ ------
Distributions:
Net Investment Income .............. (0.08) (0.05) (0.12) (0.19) (0.23)
Net Realized Gain .................. (2.13) (3.69) (3.79) (0.71) --
In Excess of Realized Gain ......... (0.17) -- -- -- --
------ ------ ------ ------ ------
Total Distributions ................ (2.38) (3.74) (3.91) (0.90) (0.23)
------ ------ ------ ------ ------
Net Asset Value, End of Period ........ $11.82 $11.77 $12.41 $13.71 $12.64
====== ====== ====== ====== ======
Total Return .......................... 21.35% 28.89% 19.11% 15.66% 21.52%
====== ====== ====== ====== ======
Ratios and Supplemental Data
Net Assets, End of Period (000) ....... $70,842 $56,021 $46,286 $52,484 $42,648
Ratio of Expenses to Average
Net Assets ......................... 1.04% 1.38% 1.30% 1.23% 1.22%
Ratio of Net Investment Income
to Average Net Assets .............. 0.74% 0.40% 0.75% 1.43% 1.87%
Portfolio Turnover Rate ............... 360% 299% 75% 43% 32%
</TABLE>
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.
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
UAM FUNDS ENHANCED EQUITY FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Years Ended December 31,
------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period. $10.90 $ 8.43 $ 7.43 $ 7.95 $ 6.04
Income from Investment Operations
Net Investment Income............. 0.10 0.06 0.09 0.13 0.14
Net Realized and Unrealized Gain.. 2.06 3.07 2.12 1.69 1.98
----- ----- ----- ----- -----
Total from Investment Operations.. 2.16 3.13 2.21 1.82 2.12
----- ----- ----- ----- -----
Distributions:
Net Investment Income............. (0.10) (0.06) (0.09) (0.13) (0.14)
In Excess of Net Investment
Income.......................... -- (0.01) (0.01) -- --
Net Realized Gain................. (0.61) (0.59) (1.10) (2.20) (0.07)
In Excess of Net Realized Gain.... (0.04) -- (0.01) (0.01) --
----- ----- ----- ----- -----
Total Distributions............... (0.75) (0.66) (1.21) (2.34) (0.21)
----- ----- ----- ----- -----
Net Asset Value, End of Period....... $12.31 $10.90 $ 8.43 $ 7.43 $ 7.95
====== ====== ====== ====== ======
Total Return......................... 20.06% 37.82% 29.86% 22.95% 35.36%
====== ====== ====== ====== ======
Ratios and Supplemental Data
Net Assets, End of Period (000)...... $145,185 $33,889 $ 7,331 $ 3,519 $ 2,318
Ratio of Expenses to Average
Net Assets........................ 0.99% 1.26% 1.00% 0.91% 0.50%
Ratio of Net Investment Income
to Average Net Assets............. 1.08% 0.78% 1.17% 1.53% 2.02%
Portfolio Turnover Rate.............. 261% 297% 189% 179% 10%
</TABLE>
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.
37
<PAGE>
UAM FUNDS MASTER FIXED INCOME FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Years Ended December 31,
------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.. $ 9.81 $10.00 $11.62 $11.78 $10.75
Income from Investment Operations
Net Investment Income.............. 0.48 0.51 0.67 0.66 0.69
Net Realized and Unrealized Gain
(Loss)........................... (0.67) (0.14) 0.46 (0.01) 1.03
----- ----- ----- ----- -----
Total from Investment Operations... (0.19) 0.37 1.13 0.65 1.72
----- ----- ----- ----- -----
Distributions:
Net Investment Income.............. (0.48) (0.51) (0.67) (0.66) (0.69)
In Excess of Net Investment
Income........................... (0.01) -- -- -- --
Net Realized Gain.................. -- (0.05) (1.98) (0.14) --
In Excess of Net Realized Gain..... -- -- (0.10) (0.01) --
----- ----- ----- ----- -----
Total Distributions................ (0.49) (0.56) (2.75) (0.81) (0.69)
----- ----- ----- ----- -----
Net Asset Value, End of Period........ $ 9.13 $ 9.81 $10.00 $11.62 $11.78
====== ====== ====== ====== ======
Total Return.......................... (2.00)% 3.80% 10.04% 5.69% 16.43%
====== ====== ====== ====== ======
Ratios and Supplemental Data
Net Assets, End of Period (000)....... $4,523 $ 4,954 $ 5,712 $28,926 $24,868
Ratio of Expenses to Average
Net Assets......................... 0.87% 1.07% 0.90% 0.72% 0.69%
Ratio of Net Investment Income
to Average Net Assets.............. 5.13% 5.06% 5.60% 5.66% 5.99%
Portfolio Turnover Rate............... 81% 98% 40% 22% 32%
</TABLE>
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.
38
<PAGE>
UAM FUNDS SHORT-TERM GOVERNMENT FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Years Ended December 31,
------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.. $10.10 $ 9.97 $ 9.99 $10.14 $ 9.70
Income from Investment Operations
Net Investment Income.............. 0.56 0.56 0.56 0.63 0.57
Net Realized and Unrealized Gain
(Loss)........................... (0.31) 0.14 (0.02) (0.10) 0.44
----- ----- ----- ----- -----
Total from Investment Operations... 0.25 0.70 0.54 0.53 1.01
----- ----- ----- ----- -----
Distributions:
Net Investment Income.............. (0.56) (0.56) (0.56) (0.67) (0.57)
In Excess of Net Investment Income. -- (0.01) -- -- --
Return of Capital.................. -- -- -- (0.01) --
----- ----- ----- ----- -----
Total Distributions................ (0.56) (0.57) (0.56) (0.68) (0.57)
----- ----- ----- ----- -----
Net Asset Value, End of Period........ $ 9.79 $10.10 $ 9.97 $ 9.99 $10.14
====== ====== ====== ====== ======
Total Return.......................... 2.54% 7.10% 5.54% 5.28% 10.65%
====== ====== ====== ====== ======
Ratios and Supplemental Data
Net Assets, End of Period (000)....... $3,729 $ 5,259 $ 2,978 $1,008 $27,880
Ratio of Expenses to Average
Net Assets......................... 0.69% 0.84% 0.60% 0.56% 0.50%
Ratio of Net Investment Income
to Average Net Assets.............. 5.68% 5.43% 5.57% 5.99% 5.76%
Portfolio Turnover Rate............... 62% 25% 34% 31% 10%
</TABLE>
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.
39
<PAGE>
UAM FUNDS INTERNATIONAL FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
September 30, 1999***
to December 31,
1999
---------------------
Net Asset Value, Beginning of Period...................... $10.00
Income from Investment Operations
Net Investment Income.................................. 0.01
Net Realized and Unrealized Gain (Loss)................ 1.25
-------
Total from Investment Operations....................... 1.26
-------
Distributions:
Net Investment Income.................................. --
Net Realized Gain...................................... (0.01)
-------
Total Distributions.................................... (0.01)
-------
Net Asset Value, End of Period............................ $11.25
=======
Total Return.............................................. 12.67%**
=======
Ratios and Supplemental Data
Net Assets, End of Period (000)........................... $1,658
Ratio of Expenses to Average
Net Assets............................................. 1.30%*
Ratio of Net Investment Income
to Average Net Assets.................................. 0.66%*
Portfolio Turnover Rate................................... 5%**
* Annualized
** Not annualized
*** Commencement of operations.
The accompanying notes are an integral part of the financial statements.
40
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. Organization
UAM Funds Inc., UAM Funds, Inc. II and UAM Funds Trust (collectively the
"UAM Funds") are registered under the Investment Company Act of 1940, as
amended. Analytic Defensive Equity Fund, Analytic Enhanced Equity Fund, Analytic
Master Fixed Income Fund, Analytic Short-Term Government Fund and Analytic
International Fund (the "Funds") are funds of UAM Funds, Inc. II, formerly PBHG
Advisor Funds, Inc. which are diversified, open-end management investment
companies. At December 31, 1999, the UAM Funds were comprised of 49 active
portfolios. The information presented in the financial statements pertains only
to the Funds. The Funds have distinct investment objectives and policies that
are described in the prospectus.
A. Significant Accounting Policies:
The following significant accounting policies are in conformity with
generally accepted accounting principles. Such policies are consistently
followed by the Funds in the preparation of their financial statements.
Generally accepted accounting principles may require management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results may differ from those estimates.
1. Security Valuation: Investments for which market quotations are
readily available, are stated at market value, which is determined using
the last reported sale price from the exchange where the security is
primarily traded. If no sales are reported, as in the case of some
securities traded over-the-counter, the market value is determined using
the last reported bid price. Fixed income securities are stated on the
basis of valuations provided by brokers and/or a pricing service which uses
information with respect to transactions in fixed income securities,
quotations from dealers, market transactions in comparable securities and
various relationships between securities in determining value. Securities
quoted in foreign currencies are translated into U.S. dollars at the
current exchange rate. Short-term investments with maturities of sixty days
or less at time of purchase are valued at amortized cost, if it
approximates market value. The value of other assets and securities for
which no quotations are readily available are stated at fair value
following procedures approved by the Board of Directors.
41
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
2. Federal Income Taxes: It is each Fund's intention to qualify as a
regulated investment company under Subchapter M of the Internal Revenue
Code and to distribute all of its taxable income. Accordingly, no provision
for Federal income taxes is required in the financial statements.
The Analytic International Fund may be subject to taxes imposed by
countries in which it invests. Such taxes are generally based on either
income or gains earned or repatriated. The Analytic International Fund
accrues and applies such taxes to net investment income, net realized gains
and net unrealized gains as income and/or capital gains are earned.
3. 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
Analytic Investors, Inc. (the "Adviser"), 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.
4. Foreign Currency Translation: The books and records of the Analytic
International Fund are maintained in U.S. dollars. Investment securities
and other assets and liabilities denominated in a foreign currency are
translated into U.S. dollars on the date of valuation. The Analytic
International Fund does not isolate that portion of realized or unrealized
gains and losses resulting from changes in the foreign exchange rate from
fluctuations arising from changes in the market prices of the securities.
These gains and losses are included in net realized and unrealized gains
and losses on investments on the statement of operations. Net realized and
unrealized gains and losses on foreign currency transactions represent net
foreign exchange gains or losses from forward foreign currency exchange
contracts, disposition of foreign currencies, currency gains or losses
realized between trade and settlement dates on securities transactions and
the difference between the amount of the investment income and foreign
withholding taxes recorded on the Analytic International Equity Fund's
books and the U.S. dollar equivalent amounts actually received or paid.
5. Distributions to Shareholders: Distributions from net investment
income for the Defensive Equity and Enhanced Equity Funds are declared and
paid quarterly, if available. Distributions from net investment income for
the Master Fixed Income Fund and the Short-Term Government Fund are
declared daily and paid monthly. Distributions from net investment income
for the
42
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
International Fund are declared and paid annually. Distributions of net
realized capital gains, for all funds, will be distributed annually.
The amount and character of income and capital gain distributions to
be paid are determined in accordance with Federal income tax regulations,
which may differ from generally accepted accounting principles. These
differences are primarily due to differing book and tax treatments in the
timing of the recognition of gains or losses on investments.
Permanent book and tax basis differences resulted in reclassifications
as follows:
Undistributed Undistributed Paid in
Analytic Funds Net Income Capital Gain Capital
-------------------- ------------- ------------- -------
Defensive Equity $7,053 $(385,582) $378,529
Enhanced Equity $12,404 $5,683 $(18,087)
Master Fixed Income $(1,745) $38,554 $(36,809)
Short-Term Government $(631) -- $631
International (3,155) 3,155 --
Permanent book-tax differences, if any, are not included in ending
undistributed net investment income (loss) for the purpose of calculating
net investment income (loss) per share in the financial highlights.
6. Other: Security transactions are accounted for on trade date, the
date the trade is executed. Costs used in determining realized gains and
losses on the sale of investment securities are based on the specific
identification method. Dividend income is recorded on the ex-dividend date,
except that certain dividends from foreign securities are recorded as soon
as the Funds are informed of the ex-dividend date. Interest income is
recognized on the accrual basis. Discounts and premiums on securities
purchased are amortized using the effective yield basis over their
respective lives. Most expenses of the UAM Funds can be directly attributed
to a particular portfolio. Expenses which cannot be directly attributed are
apportioned among the portfolios of the UAM Funds based on their relative
net assets.
7. 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 primarily 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. The
portfolios will only write covered call and put options on common stock or
stock indices.
43
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
8. Forward Foreign Currency Exchange Contracts: The Analytic
International Fund may enter into forward foreign currency exchange
contracts to protect the value of securities held and related receivables
and payables against changes in future foreign exchange rates. A forward
currency contract is an agreement between two parties to buy and sell
currency at a set price on a future date. The market value of the contract
will fluctuate with changes in currency exchange rates. The contract is
marked-to-market daily using the current forward rate and the change in
market value is recorded by the Analytic International Fund as unrealized
gain or loss. The Analytic International Fund recognizes realized gains or
losses when the contract is closed, equal to the difference between the
value of the contract at the time it was opened and the value at the time
it was closed. Risks may arise from the unanticipated movements in the
value of a foreign currency relative to the U.S. dollar. Risks may also
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and are generally
limited to the amount of unrealized gain on the contracts, if any, at the
date of default. The Analytic International Fund had no outstanding forward
foreign currency exchange contracts at December 31, 1999.
9. 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 fund writes a covered option, securities equal in
value to the exercise price are placed in a segregated account to
collateralize the outstanding option.
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 covered written put expires, or if the fund enters into a
closing purchase transaction, the fund will realize a gain or loss on the
option transaction
44
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
and the liability related to such option is extinguished. When a put option
is exercised, the fund purchases the security, the cost of the security is
reduced by the premium originally received, and no gain or loss is
recognized.
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.
10. 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 will deposit securities for the
initial margin with its custodian in a segregated account. 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.
B. Investment Advisory Services:
The Funds and 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
45
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
Funds; 0.45% of the average net assets of the Master Fixed Income Fund; 0.30% of
the average net assets of the Short-Term Government Fund; and 1.00% of the
average net assets of the International Fund.
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 PBA and
the Funds, Analytic Investors, Inc. received from the amounts received by PBA, 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.
The Adviser has also 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 the Analytic International Fund to 1.30%. The fee
waiver/expense reimbursement arrangement for the Fund is expected to remain in
effect for the current fiscal year and can be terminated at anytime at the
option of the Adviser.
C. Administrative Services:
UAM Fund Services, Inc. (the "Administrator"), a wholly-owned subsidiary of
United Asset Management Corporation ("UAM"), provides and oversees
administrative, fund accounting, dividend disbursing, shareholder servicing and
transfer agent services to the Funds under a Fund Administration Agreement (the
"Agreement"). The Administrator has entered into separate Service Agreements
with SEI Investments Mutual Fund Services ("SEI"), a wholly owned subsidiary of
46
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
SEI Investments Company, DST Systems, Inc., ("DST") and UAM Shareholder Service
Center ("UAMSSC"), an affiliate of UAM, to assist in providing certain services
to the Funds.
Pursuant to the Agreement, the Funds pay the Administrator 0.093% per annum
of the average daily net assets of Analytic Defensive Equity, Analytic Enhanced
Equity and Analytic International Funds; and 0.073% per annum of the average
daily net assets of Analytic Master Fixed Income and Analytic Short-Term
Government Funds. Each fund also pays an annual base fee of $72,500 per fund and
a fee based on the number of active shareholder accounts.
For the year ended December 31, 1999, the Administrator earned the
following amounts from the Funds and paid the following to SEI, DST and UAMSSC
for their services:
Portion Portion Portion
Administration Paid to Paid to Paid to
Analytic Funds Fees SEI DST UAMSSC
- -------------- -------------- ------- ------- --------
Defensive Equity........... $163,437 $37,555 $41,513 $28,920
Enhanced Equity............ 114,671 37,882 22,382 12,554
Master Fixed Income........ 58,810 24,539 11,185 6,531
Short-Term Government...... 60,135 26,067 12,222 6,102
International.............. 19,672 8,931 2,949 2,647
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 the period January 1, 1999 through April 5, 1999, PBHG Fund Services
earned the following amounts from the Funds for their services:
Defensive Equity.................... $22,615
Enhanced Equity..................... 13,830
Master Fixed Income................. 2,084
Short-Term Government............... 1,913
D. Custodian:
The First Union National Bank is custodian for the Funds' assets held in
accordance with the custodian agreement.
E. Distribution Services:
UAM Fund Distributors, Inc. (the "Distributor"), 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.
47
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
For the period January 1, 1999 through January 25, 1999, PBHG Fund Distributors,
a wholly owned subsidiary of PBA, provided the Defensive Equity, Enhanced
Equity, Master Fixed Income and Short-Term Government Funds with distribution
services. For its services PBHG Fund Distributors received a fee of 0.25% of the
average daily net assets of the Funds.
F. Directors' Fees:
Each Director, who is not an officer or affiliated person, receives $2,000 per
meeting attended plus reimbursement of expenses incurred in attending Board
meetings, which is allocated proportionally among the active portfolios of UAM
Funds, plus a quarterly retainer of $150 for each active portfolio of the UAM
Funds.
G. Purchases and Sales:
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
December 31, 1999 were as follows:
Purchases Sales
-------------- --------------
Defensive Equity $227,397,032 $225,586,113
Enhanced Equity 228,386,765 139,607,816
Master Fixed Income 2,745,591 2,894,199
Short-Term Government 2,686,335 4,123,055
International 1,388,742 66,538
There were no purchases or sales of long-term U.S. Government securities.
Transactions in option contracts written in the Defensive Equity Fund were as
follows:
<TABLE>
<CAPTION>
Number of
Contracts Premiums
----------- -----------
<S> <C> <C>
Outstanding at December 31, 1998 405 $ 769,509
Options written 5,290 9,703,787
Options terminated in closing purchase transactions (3,105) (6,713,099)
Options expired (2,140) (2,623,773)
----------- -----------
Outstanding at December 31, 1999 450 $ 1,136,424
=========== ===========
</TABLE>
48
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
Transactions in option contracts written in the Master Fixed Income Fund were as
follows:
<TABLE>
<CAPTION>
Number of
Contracts Premiums
--------- ---------
<S> <C> <C>
Outstanding at December 31, 1998 423 $ 46,286
Options written 2,193 538,810
Options terminated in closing purchase transactions (1,960) (396,078)
Options expired (575) (152,424)
Options exercised (46) (8,887)
--------- ---------
Outstanding at December 31, 1999 35 $ 27,707
========= =========
</TABLE>
The following Funds had futures contracts open as of December 31, 1999.
Number
Contract of Trade Settlement Unrealized
Description Contracts Price Month Gain/(Loss)
- ----------- ----------- --------- ---------- -----------
Defensive Equity
S&P 500 18 $1,433.00 March 2000 $232,962
========
Enhanced Equity
S&P 500 44 $1,480.70 March 2000 $568,775
========
Master Fixed Income
U.S. Long Bond 8 $ 93.54 March 2000 $(20,893)
U.S. 10 Year Note 14 97.73 March 2000 (26,390)
U.S. 2 Year Note (34) 99.82 March 2000 34,723
-------
$(12,560)
========
Short-Term Government
U.S. Long Bond 1 $ 93.54 March 2000 $ (2,612)
U.S. 10 Year Note 5 97.73 March 2000 (9,425)
U.S. 2 Year Note (12) 99.82 March 2000 12,255
Australian Dollar (3) 63.42 March 2000 (7,300)
Canadian Dollar 1 67.77 March 2000 1,440
Japanese Yen (1) 98.55 March 2000 (473)
-------
$ (6,115)
========
49
<PAGE>
UAM FUNDS ANALYTIC FUNDS
- --------------------------------------------------------------------------------
Number
Contract of Trade Settlement Unrealized
Description Contracts Price Month Gain/(Loss)
- ----------- ----------- --------- ---------- -----------
International
Australia Ords Index (1) 3,125.00 March 2000 $ (211)
Australian Dollar (2) 63.36 March 2000 (4,940)
CAC 40 Index 1 5,579.00 March 2000 4,490
Euro 1 1.01 March 2000 900
Nikkei 300 Index 4 309.60 March 2000 5,000
OMX Index 5 1,133.70 January 2000 4,267
Swiss Franc (1) 63.46 March 2000 (13)
-------
$ 9,493
=======
H. Other:
At December 31, 1999, the percentage of total shares outstanding held by record
shareholders owning 10% or greater of the aggregate total shares outstanding for
each Fund was as follows:
Analytic Funds No of Shareholders % Ownership
------------------ -----------
Defensive Equity 1 38.6%
Enhanced Equity 3 72.5
Master Fixed Income 3 42.4
Short-Term Government 2 77.3
International Equity 1 85.8
At December 31, 1999, the following Funds had available the following capital
loss carryovers for Federal income tax purposes, which will expire on the dates
indicated:
<TABLE>
<CAPTION>
2002 2003 2004 2005 2006 2007
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Master-Fixed Income -- -- -- -- $208,911 $ 14,131
Short-Term Government $ 46,629 $257,536 $444,657 $ 3,860 -- 70,796
</TABLE>
The accompanying notes are an integral part of the financial statements.
50
<PAGE>
UAM FUNDS ANALYTIC FUNDS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Directors of
UAM Funds, Inc. II and Shareholders of
Analytic Funds
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Analytic Defensive Equity Fund,
Analytic Enhanced Equity Fund, Analytic Master Fixed Income Fund, Analytic
Short-Term Government Fund and Analytic International Fund, (each a portfolio of
the UAM Funds, Inc. II, hereafter referred to as the "Funds") at December 31,
1999, the results of each of their operations, the changes in each of their net
assets and the financial highlights for each of the periods indicated, in
conformity with accounting principles generally accepted in the United States.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States, which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at December 31, 1999 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 15, 2000
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UAM FUNDS ANALYTIC FUNDS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
Federal Income Tax Information (Unaudited):
Analytic Funds changed their tax year end from April 30 to December 31,
effective December 31, 1999. For the short fiscal year ended December 31, 1999,
each portfolio hereby designates the following amount as long-term capital gain
dividends for the purposes of the dividend paid deduction on its federal income
tax return.
Analytic Funds Long Term
-------------- ---------
Defensive Equity 1,955,536
Enhanced Equity 1,022,367
For the short period ended December 31, 1999, the percentage of dividends that
qualify for the 70% dividend received deduction for corporate shareholders for
the Analytic Funds - Defensive Equity and Enhanced Equity was 11.31% and 13.72%
respectively.
For the calendar year ended December 31, 1999, the percentage of income earned
from direct U.S. government obligations for Analytic Funds - Defensive Equity,
Enhanced Equity, Master Fixed Income, Short-Term Government and International
Equity was 0.04%, 0.18%, 68.99%, 44.94% and 0.66% respectively.
52
<PAGE>
UAM FUNDS ANALYTIC FUNDS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
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. Della Croce
Director Assistant Treasurer
James P. Pappas
Director
Peter M. Whitman, Jr.
Director
- --------------------------------------------------------------------------------
UAM Funds
P.O. Box 219081
Kansas City, MO 64121
(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 to
211 Congress Street others only if preceded or accompanied by a
Boston, MA 02110 current prospectus.
--------------------------------------------
