UAM FUNDS INC, N-30D, 1997-06-27

UAM FUNDS INC
N-30D, 1997-06-27

Previous: UAM FUNDS INC, NSAR-A, 1997-06-27

Next: WILLIAMSBURG INVESTMENT TRUST, 485APOS, 1997-06-27

<PAGE>

- -------------------------------------------------------------------------------

UAM FUNDS
ACADIAN EMERGING MARKETS PORTFOLIO

- -------------------------------------------------------------------------------
OFFICERS AND DIRECTORS

- -------------------------------------------------------------------------------
INVESTMENT ADVISER
Acadian Asset Management, Inc.
Two International Place
Boston, MA 02110
- -------------------------------------------------------------------------------
ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street Boston, MA 02110
- -------------------------------------------------------------------------------
CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, NY 11245
- -------------------------------------------------------------------------------
LEGAL COUNSEL
Stradley, Ronon, Stevens & Young LLP
2600 One Commerce Square Philadelphia, PA 19103
- -------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
Boston, MA 02110
- -------------------------------------------------------------------------------
DISTRIBUTOR
UAM Fund Distributors, Inc.
211 Congress Street Boston, MA 02110
- -------------------------------------------------------------------------------
This report has been prepared for shareholders and may be distributed to
others only if preceded or accompanied by a current prospectus.

- -------------------------------------------------------------------------------

[LOGO OF UAM FUNDS APPEARS HERE]

ACADIAN

EMERGING

MARKETS

PORTFOLIO

- -------------------------------------------------------------------------------

SEMI-ANNUAL REPORT
APRIL 30, 1997
<PAGE>

Dear Shareholder,

We are pleased to present the semi-annual report for the Acadian Emerging
Markets Portfolio. This commentary covers the six months from November 1, 1996
to April 30, 1997, focusing on the Portfolio's performance and some of the
economic and market conditions that impacted returns.

PORTFOLIO PERFORMANCE REVIEW

For the six months ended April 30, 1997, the Acadian Emerging Markets
Portfolio returned 11.35%, versus 9.56% for the IFC Investable Index (the
"Index"), a widely followed emerging markets benchmark.

ECONOMIC AND MARKET CONDITIONS

The world's emerging equity markets, as represented by the Index, had strong
returns for the six months ended April 30, 1997. Latin American markets
continued to lead the Index, dominated by the robust Brazilian market and
additional double-digit returns in Argentina, Colombia, and Mexico. Emerging
Asia was weaker, as Korea, the Philippines, and Thailand all posted negative
returns. The Europe/Middle East/Africa region surged, with Greece, Hungary,
and Turkey among the Index's best performing markets. In general, the emerging
markets were very upbeat, as the large Latin American economies continued to
come out of recession and the U.S. dollar remained strong.

INVESTMENT STRATEGY USED DURING THE FIRST HALF

Acadian continues to pursue its highly structured and disciplined approach to
the emerging markets, using a database of information on over 60 emerging
markets and 6000 stocks. Our emerging markets process emphasizes country
selection but also examines a variety of factors at the stock level. Using
proprietary dividend-discount models which evaluate each country's market in
aggregate as well as aggregate-market price/earnings and price/book ratios,
Acadian regularly ranks all emerging markets in its universe according to
their relative attractiveness. Acadian's multi-factor valuation process is
also applied at the stock level, identifying the most attractive stocks in
each market.

As a result, the Portfolio was invested in 16 emerging equity markets,
compared with 26 in the Index. Key overweightings were Greece, China, Brazil,
Turkey, Korea, and Thailand, while key underweightings were South Africa,
Taiwan, Mexico, and Malaysia.

The resulting Portfolio had very attractive valuation characteristics, with a
price/book value, price/sales ratio, and price/earnings ratio all
significantly lower than the Index. The Portfolio also had a somewhat smaller
orientation than the Index, with more assets in the mid-size $1-$5 billion
capitalization range, and fewer assets in the larger-size range of $5-$20
billion in capitalization.

COMMENTARY ON THE PORTFOLIO'S INVESTMENT PERFORMANCE

As noted above, the Acadian Emerging Markets Portfolio returned 11.35% for the
six months ended April 30, 1997, versus a return of 9.56% for the Index. While
stock selection was generally negative over the period, detracting 360 basis
points of return relative to the Index, country selection outperformed by 530
basis points, resulting in a net outperformance of 170 basis points.

1
<PAGE>

The Portfolio's performance during the six month period covered was enhanced
by investments in:

. GREECE: Greece was one of the top-performing emerging markets of the period,
as the economy improved, the political situation stabilized, and the
prospects for entering the European monetary union looked brighter. The
Portfolio was overweighted in Greece, with the result that the country
allocation added 80 basis points of benchmark-relative return. Value stock
selection was also helped by the ebullient environment, with the result that
stock selection contributed an additional 30 basis points for a total
outperformance of 110 basis points.

. MALAYSIA: The Portfolio was underweighted in Malaysia, which proved
beneficial as Malaysia underperformed the Index as a whole. At the same
time, Acadian's stock selection frameworks identified good opportunities in
individual securities that performed better than the Malaysian market
itself. The result was that both the country allocation and stock selection
outperformed, adding a total of 180 basis points.

. TURKEY: Turkey was another top-performing market overweighted by the
Portfolio. The country allocation added 180 basis points. Stock selection
underperformed slightly, detracting 110 basis points. Investors concentrated
much of their attention on blue-chip companies, while smaller value stocks
had somewhat lower returns as investors grew cautious over the likelihood of
continued political turmoil in the Islamic-led government. The Turkish
allocation had a net return that was 60 basis points above the benchmark.

The main investments detracting from the Portfolio's performance during the
period covered were the following:

. THAILAND: The Portfolio was moderately overweighted in Thailand, which
detracted 150 basis points from return as this market fell on political
infighting, a weak currency, and pessimistic expectations for 1997 economic
growth. Stock selection also underperformed slightly, for a total impact of
-170 basis points relative to the benchmark.

. KOREA: The small overweighting in South Korea was negative for the
Portfolio, detracting 120 basis points. Stock selection also underperformed
in an atmosphere characterized by political and economic uncertainty, as a
major steel company collapsed and widespread strikes broke out in protest of
new labor laws. The total result was -140 basis points relative to the
benchmark.

. BRAZIL: The overweighting in Brazil was a positive for the Portfolio, adding
160 basis points. However, stock selection underperformed by 230 basis
points. The Portfolio held a number of telecommunications stocks whose
performance was negatively impacted by investor fears about a government
ruling that would delay price increases. The total result was -70 basis
points relative to the benchmark.

CURRENT OUTLOOK

Emerging markets as a group are up comfortably into the double digits year to
date, well ahead of their developed market counterparts. We continue to
advocate the diversification advantages of this asset class, and would stress
that even with recent gains these markets should continue to offer highly
favorable valuation characteristics. While investors should carefully consider
the higher level of volatility and risk in these markets, we strongly believe
the emerging markets remain a critical asset class for investors seeking
optimal portfolio diversification and the potential for strong long-term
excess returns.

If we can provide any further information, please contact me at (617) 946-
3500.

Sincerely,

/s/ Churchill G. Franklin

Churchill G. Franklin
Senior Vice President

2
<PAGE>

DEFINITION OF THE COMPARATIVE INDEX
-----------------------------------

The IFC Investable Index is an unmanaged emerging markets index maintained by
the International Finance Corporation. The index consists of 890 companies in
26 emerging equity markets, and is designed to measure more precisely the
returns portfolio managers might receive from investment in emerging markets
equity securities, by focusing on companies and markets that are legally and
practically accessible to foreign investors.

Comparisons of performance assume reinvestment of dividends.

Please note that one cannot invest in an unmanaged index.

The investment results presented in the Adviser's letter 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. For a complete discussion of the risks associated with
international investing, please refer to the Portfolio's Prospectus.

3
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS (77.7%)
- -------------------------------------------------------------------------------
<S> <C> <C>
ARGENTINA (4.8%)
Astra Cia Argentina de Petro.......................... 178,280 $ 308,471
Banco de Galicia y Buenos Aires S.A., Class B......... 70,069 423,280
*Bansud S.A., Class B................................. 4,201 58,193
Capex S.A., Class A................................... 8,500 84,163
Central Puerto S.A., Class B.......................... 78,000 249,638
Cia Naviera Perez Companc, Class B.................... 108,761 882,184
Citicorp Equity Investments S.A., Class B............. 19,635 105,063
Garovaglio y Zorraquin S.A............................ 26,100 87,448
*Indupa S.A........................................... 66,227 73,523
Juan Minetti S.A...................................... 23,902 111,161
Molinos Rio de la Plata S.A., Class B................. 56,583 211,086
Siderar S.A., Class A................................. 9,316 36,524
Siderca S.A., Class A................................. 232,900 489,163
Telecom Argentina S.A., Class B....................... 23,100 114,362
Transportadora de Gas del Sur S.A., Class B........... 138,200 346,934
YPF S.A., Class D..................................... 22,100 614,472
-----------
4,195,665
- -------------------------------------------------------------------------------
BRAZIL (5.5%)
Albarus S.A........................................... 212,000 159,488
Alparagatas S.A....................................... 980,000 50,686
Banco Itau S.A........................................ 98,000 43,775
Brahma................................................ 305,172 209,494
Brasilit S.A.......................................... 229,250 319,061
*Cia Acos Especiais-Acesita........................... 34,335,000 79,105
Cia Antarctica Paulista-Industria..................... 1,400 164,566
Cia Petroquimica Do Sul............................... 6,600,000 285,499
Cia Siderurgica Nacional.............................. 13,300,000 475,143
Cia Vidraria Santa Marina............................. 37,000 107,862
Cigarros Souza Cruz................................... 11,000 88,960
Eletrobras............................................ 2,000,000 904,645
Light Participacoes S.A............................... 1,015,000 323,571
Light Servicos Electricas............................. 1,000,000 415,648
Mineracao da Trindade-Samitri......................... 4,735,500 146,955
*Sociedade de Participacoes Cimente................... 131,000 --
Santista Alimentos S.A................................ 137,000 328,522
</TABLE>

The accompanying notes are an integral part of the financial statements.

4
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
<S> <C> <C>
BRAZIL--(CONTINUED)
*Serrana S.A.......................................... 131,000 $ 75,146
Telebras.............................................. 1,511,794 162,780
Telecomunicacoes do Rio de Janeiro S.A................ 600,000 95,355
White Martins S.A..................................... 105,919 360,567
-----------
4,796,828
- -------------------------------------------------------------------------------
CHINA (7.7%)
Guangdong Electric Power Development Co., Ltd., Class
B.................................................... 202,000 227,139
*Jilin Chemical Industrial Co., Ltd., Class H......... 1,500,000 222,696
Maanshan Iron & Steel Co., Class H.................... 3,380,000 741,802
Qingling Motors Co., Class H.......................... 1,510,000 828,492
Shanghai Dajiang Group Co., Ltd., Class B............. 180,890 81,762
Shanghai Dazhong Taxi Co., Class B.................... 173,455 296,608
Shanghai Haixing Shipping Co., Class H................ 6,900,000 1,469,791
Shanghai Jinqiao Export Processing Zone Development
Co., Ltd., Class B................................... 281,000 228,172
Shanghai Petrochemical Co., Ltd., Class H............. 2,850,000 706,429
*Shanghai Shangling Electric Appliances Co., Ltd.,
Class B.............................................. 284,000 90,880
*Shanghai Tyre & Rubber Co., Ltd., Class B............ 500,000 313,000
Shanghai Waigaoqiao Free Trade Zone Development Co.,
Ltd., Class B........................................ 353,360 236,044
*Shanghai Yaohua Pilkington Glass Co., Ltd., Class B.. 313,000 157,126
*Shenzhen China Bicycle Co., Ltd., Class B............ 624,000 306,120
Tsingtao Brewing Co., Ltd., Class H................... 992,000 419,417
Yizheng Chemical Fibre Co., Ltd., Class H............. 2,566,000 503,527
-----------
6,829,005
- -------------------------------------------------------------------------------
GREECE (5.7%)
Alpha Credit Bank..................................... 22,487 1,597,341
Alpha Investment S.A.................................. 1,600 24,452
Commercial Bank of Greece S.A......................... 16,440 764,790
Elais Olegiaous Co.................................... 1,000 30,165
Ergo Bank S.A......................................... 13,536 891,905
Hellas Can Packaging Manufacturers.................... 1,000 15,955
Hellenic Bottling Co. S.A............................. 15,000 487,098
Hellenic Technodomiki................................. 1,000 15,064
Heracles General Cement Co. S.A....................... 4,700 75,501
Intracom S.A.......................................... 9,400 405,005
Ionian Bank........................................... 2,616 69,310
</TABLE>

The accompanying notes are an integral part of the financial statements.

5
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
<S> <C> <C>
GREECE--(CONTINUED)
National Bank of Greece............................... 4,840 $ 513,640
Strintzis Lines....................................... 3,600 13,673
Titan Cement Co....................................... 1,600 128,221
-----------
5,032,120
- -------------------------------------------------------------------------------
HUNGARY (1.2%)
*Danubius Hotels Rt................................... 5,300 168,346
EGIS Rt............................................... 5,900 374,808
*Fotex Rt Budapest.................................... 33,000 25,435
Gedeon Richter Ltd. GDS............................... 2,700 203,850
*Pick Szeged Rt GDR................................... 2,100 126,537
Primagaz Rt........................................... 2,475 170,106
-----------
1,069,082
- -------------------------------------------------------------------------------
INDONESIA (3.0%)
Argha Karya Prima Industry (Foreign).................. 55,000 29,436
Argha Karya Prima Industry (Bonus Shares)............. 18,333 9,812
Astra International (Foreign)......................... 43,200 158,287
Bank Dagang Nasional (Foreign)........................ 182,000 181,700
Dharmaal Intiland (Foreign)........................... 41,500 61,080
Gadjah Tunggal (Foreign).............................. 174,000 78,798
Hanjaya Mandala Sampoerna (Foreign)................... 52,500 211,275
Indah Kiat Pulp & Paper Co. (Foreign)................. 356,776 290,092
Indosat (Foreign)..................................... 15,000 41,375
*Inti Indorayon Utama (Foreign)....................... 69,000 49,712
Kalbe Farma (Foreign)................................. 22,000 21,737
Mayora Indah Co. (Foreign)............................ 40,560 15,446
Pabrik Kertas Tjiwi Kimia (Foreign)................... 218,517 224,904
Polysindo Eka Perkasa (Foreign)....................... 108,000 60,025
Putra Surya Perkasa (Foreign)......................... 515,500 509,345
SMART Corp. (Foreign)................................. 48,000 36,064
Telekomunikasi Indonesia.............................. 304,000 441,169
Tempo Scan Pacific (Foreign).......................... 54,000 107,822
United Tractors (Foreign)............................. 20,500 61,188
-----------
2,589,267
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

6
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
<S> <C> <C>
KOREA (5.7%)
Central Investment & Finance.......................... 3,612 $ 45,454
Cheil Industrial, Inc................................. 14,500 190,618
Commercial Bank of Korea.............................. 31,000 145,596
Daewoo Corp........................................... 27,100 177,520
Dongbu Steel Co....................................... 3,960 69,411
Hanjin Shipping Co., Ltd.............................. 4,000 90,337
*Hanjin Transportation Co............................. 2,123 42,460
*Hyundai Engineering & Construction Co................ 5,100 102,573
Keum Kang Development Industries Co................... 14,400 195,775
Korea Electric Power Corp. ADR........................ 18,000 537,978
Korea Exchange Bank................................... 57,000 368,899
Korea Express (The) Co................................ 8,365 201,136
Korea Kumho Petrochemical Co.......................... 16,000 114,157
Korea Long Term Credit Bank........................... 11,550 150,539
LG Electronics........................................ 15,700 186,989
LG International Corp................................. 22,000 153,258
LG Metal.............................................. 11,000 185,393
Mando Machinery Corp.................................. 2,100 68,191
Samsung Corp.......................................... 16,000 183,371
Samsung Display Devices Co............................ 4,000 186,966
Samsung Electro-Mechanics Co.......................... 9,000 182,023
Samsung Electronics................................... 4,212 286,795
Shinhan Investment & Finance.......................... 16,115 371,184
Shinsegae Department Store Co......................... 4,000 150,562
Ssangyong Cement Co., Ltd............................. 12,000 128,090
Ssangyong Oil Refining Co., Ltd....................... 10,300 207,157
Tai Han Electric Wire Co.............................. 6,700 90,337
Tongyang Investment & Finance......................... 2,924 26,612
Yuhan Corp............................................ 1,349 67,450
Yukong Ltd............................................ 5,405 96,561
-----------
5,003,392
- -------------------------------------------------------------------------------
MALAYSIA (10.4%)
Affin Holdings Bhd.................................... 69,000 166,315
Angkasa Marketing Bhd................................. 103,000 130,494
Arab Malaysian Corp. Bhd.............................. 55,000 227,888
</TABLE>

The accompanying notes are an integral part of the financial statements.

7
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
<S> <C> <C>
MALAYSIA--(CONTINUED)
Austral Enterprises Bhd. ............................. 181,000 $ 328,829
Bandar Raya Developments Bhd. ........................ 175,000 257,968
Boustead Holdings Bhd................................. 132,000 289,243
Cement Industries of Malaysia Bhd. ................... 60,000 164,940
Commerce Asset Holding Bhd. .......................... 60,000 358,566
Datuk Keramat Holdings Bhd. .......................... 171,000 264,335
Dunlop Estates Bhd. .................................. 105,000 155,617
Edaran Otomobil Nasional Bhd. ........................ 55,000 519,323
Golden Hope Plantations Bhd. ......................... 173,000 274,319
Guinness Anchor Bhd. ................................. 87,000 192,370
Guthrie Ropel Bhd. .................................. 79,000 142,263
Hicom Holdings Bhd. .................................. 88,000 194,582
Highlands & Lowlands Bhd. ............................ 160,000 253,705
Ho Hup Construction Co. Bhd. ......................... 44,000 131,474
IOI Properties Bhd. .................................. 67,000 160,159
Kuala Lumpur Kepong Bhd. ............................. 51,000 132,072
Kulim (Malaysia) Bhd. ................................ 176,000 354,104
Kwong Yik Bank........................................ 87,000 305,020
LARUT Consolidated Bhd. .............................. 96,000 100,590
Lion Land Bhd. ....................................... 141,000 139,315
MBF Capital Bhd. ..................................... 287,000 425,355
Malaysian Airline System Bhd.......................... 97,000 214,482
Malaysian Industrial Development Finance Bhd.......... 142,000 193,482
Malaysian Oxygen Bhd. ................................ 17,000 83,984
Multi-Purpose Holdings Bhd............................ 193,000 315,259
Negara Properties (Malaysia) Bhd. .................... 36,000 146,295
*Pan Pacific Asia Bhd. ............................... 35,000 83,665
Perlis Plantations Bhd. .............................. 61,750 184,512
Perusahaan Otomobil Nasional Bhd...................... 66,000 394,422
Petronas Dagangan Bhd................................. 101,000 225,339
Petronas Gas Bhd...................................... 35,000 121,315
Pilecon Engineering Bhd............................... 53,000 73,482
Shangri-La Hotels Malaysia Bhd. ...................... 89,000 90,418
Sime Darby Bhd........................................ 141,000 435,358
*Southern Bank Bhd., Class A.......................... 33,500 78,745
</TABLE>

The accompanying notes are an integral part of the financial statements.

8
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
<S> <C> <C>
MALAYSIA--(CONTINUED)
Southern Steel Bhd.................................... 58,000 $ 147,888
Telekom Malaysia Bhd. ................................ 26,000 182,311
Westmont Industries Bhd............................... 214,000 271,123
Wing Tiek Holdings Bhd................................ 94,000 224,701
-----------
9,135,627
- -------------------------------------------------------------------------------
MEXICO (9.0%)
Apasco S.A. de C.V., Class A.......................... 51,000 301,813
Carso Global Telecom, Class A......................... 80,000 248,300
Cemex S.A., Class B................................... 13,837 50,700
Cemex S.A. CPO........................................ 210,000 687,484
Cifra S.A. de C.V., Class A........................... 51,700 77,986
Cifra S.A. de C.V., Class B........................... 202,700 311,375
Cifra S.A. de C.V., Class C........................... 220,000 337,396
Coca-Cola Femsa S.A., Class L......................... 64,000 224,830
Controladora Comercial Mexicana S.A. de C.V........... 358,000 270,461
Empresas ICA Sociedad Controladora.................... 34,800 517,049
Fomenta Economico Mexicano S.A. de C.V., Class B...... 101,800 480,672
Grupo Carso S.A. de C.V., Series A1................... 80,000 461,345
Grupo Casa Autrey S.A. de C.V......................... 110,000 192,244
Grupo Celanese S.A., Class B1......................... 200,000 453,286
Grupo Financiero Inbursa S.A. de C.V., Class B........ 27,791 95,180
*Grupo Industrial Bimbo S.A. de C.V., Class A......... 22,000 138,504
*Grupo Industrial Maseca, Class B..................... 239,000 233,523
*Grupo Mexico S.A., Class B........................... 48,000 166,205
*Grupo Televisa S.A. CPO.............................. 30,600 353,699
*Industrias Penoles S.A............................... 78,000 365,349
Telefonos de Mexico S.A. de C.V., Class L............. 885,300 1,834,807
Transportacion Maritima Mexicana S.A. de C.V., Class
L.................................................... 8,000 41,954
-----------
7,844,162
- -------------------------------------------------------------------------------
PHILIPPINES (1.6%)
First Philippine Holdings Corp., Class B.............. 42,450 74,106
JG Summit Holding, Inc. .............................. 414,700 99,150
Manila Electric Co. .................................. 97,342 605,848
Petron Corp........................................... 806,500 296,890
</TABLE>

The accompanying notes are an integral part of the financial statements.

9
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
<S> <C> <C>
PHILIPPINES--(CONTINUED)
Philippine Long Distance Telephone Co................. 4,600 $ 262,732
San Miguel Corp., Class B............................. 2,600 7,499
SM Prime Holdings, Inc................................ 149,800 39,227
-----------
1,385,452
- -------------------------------------------------------------------------------
PORTUGAL (3.0%)
Banco Comercial Portugues S.A......................... 17,767 270,430
Banco Espirito Santo e Comercial de Lisboa............ 18,840 371,186
Banco Portugues de Investimento (Registered).......... 12,352 186,445
Banco Totta & Acores, Class B (Registered)............ 4,690 65,559
Cimpor Cimentos de Portugal S.A....................... 1,900 40,877
Corticeira Amorim S.A................................. 16,000 156,006
Credito Predial Portugues............................. 9,800 86,646
*Empresa Fabril de Maquinas Electricicas.............. 4,800 37,414
*Estabelecimentos Jeronimo Martins & Filho SGPS S.A. . 7,598 454,551
*Inparsa-Industria e Participacoes SGPS S.A........... 6,000 50,909
*Modelo Continente SGPS S.A........................... 3,200 108,329
*Portugal Telecom S.A. (Registered)................... 11,842 436,309
*Sonae Industria e Investimento....................... 12,000 394,501
-----------
2,659,162
- -------------------------------------------------------------------------------
SOUTH AFRICA (10.3%)
Allied Electronics Corp., Ltd......................... 40,600 70,331
Anglo-American Industrial Corp., Ltd.................. 8,000 348,257
Anglo-American Gold Investment Co., Ltd............... 1,200 80,652
Anglovaal Industries Ltd.............................. 20,467 90,709
*Avgold Ltd........................................... 34,869 56,010
Barlow Ltd............................................ 43,900 483,937
Driefontein Consolidated Ltd.......................... 27,400 229,618
East Rand Gold & Uranium Co., Ltd..................... 17,000 26,963
*Eastvaal Gold Holdings Ltd........................... 136,100 180,038
Edgars Stores Ltd..................................... 2,900 74,865
Ellerine Holdings Ltd................................. 17,510 110,301
Free State Consolidated Gold Mines Ltd................ 10,800 72,891
Foodcorp Ltd.......................................... 4,430 32,193
*Harmony Gold Mining Co., Ltd......................... 9,500 64,651
</TABLE>

The accompanying notes are an integral part of the financial statements.

10
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- --------------------------------------------------------------------------------
<S> <C> <C>
SOUTH AFRICA--(CONTINUED)
Johannesburg Consolidated.............................. 34,000 $ 457,030
Kloof Gold Mining Co., Ltd............................. 29,500 204,409
LibLife Strategic Investments Ltd...................... 121,850 463,277
Liberty Life Association of Africa Ltd................. 9,400 262,756
Malbak Ltd............................................. 39,500 63,982
Murray & Roberts Holdings Ltd.......................... 75,500 235,247
Nedcor Ltd............................................. 49,000 997,638
New Clicks Holdings Ltd................................ 14,916 17,114
Pick'n Pay Stores Ltd.................................. 27,300 37,465
Pick'n Pay Stores Ltd., Class N........................ 54,600 66,331
Polfin Ltd............................................. 46,600 83,870
Premier Group (The) Ltd................................ 101,090 156,923
Randfontein Estates Gold Mining Co., Ltd............... 4,000 14,668
Rembrandt Group Ltd.................................... 61,300 645,408
Safmarine & Rennies Holdings Ltd....................... 39,900 110,409
Sappi Ltd.............................................. 36,100 314,301
Sasol Ltd.............................................. 83,300 1,068,189
South African Breweries Ltd............................ 13,400 394,916
South African Druggists Ltd............................ 6,514 54,585
South African Iron & Steel Industrial Corp., Ltd....... 218,600 151,471
Standard Bank Investment Corp., Ltd.................... 13,400 616,490
Sun International (South Africa) Ltd................... 251,200 158,236
Toyota South Africa Ltd................................ 16,700 98,434
Vaal Reefs Exploration & Mining Co., Ltd............... 1,100 65,332
Western Areas Gold Mining Ltd.......................... 5,200 46,794
Western Deep Levels Ltd................................ 1,300 32,171
Wooltru Ltd., Class N.................................. 49,300 241,232
-----------
8,980,094
- --------------------------------------------------------------------------------
SRI LANKA (0.8%)
*Asian Hotels Ltd...................................... 25,600 6,059
Blue Diamond Jewelry World............................. 152,542 29,658
Development Finance Corp. of Ceylon.................... 48,400 225,021
Hayleys Ltd............................................ 33,000 128,318
John Keells Holdings Ltd............................... 35,525 136,334
</TABLE>

The accompanying notes are an integral part of the financial statements.

11
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
<S> <C> <C>
SRI LANKA--(CONTINUED)
National Development Bank............................. 7,100 $ 28,808
Sampath Bank Ltd...................................... 105,000 117,160
-----------
671,358
- -------------------------------------------------------------------------------
THAILAND (7.1%)
Advanced Info Service Public Co., Ltd. (Foreign)...... 56,200 382,986
Asia Credit Co., Ltd. (Foreign)....................... 32,000 115,773
*Bangchak Petroleum Public Co., Ltd. (Foreign)........ 80,800 54,135
*Bangkok Expressway Public Co., Ltd. (Foreign)........ 284,500 304,977
Bangkok Metropolitan Bank Public Co., Ltd. (Foreign).. 71,600 21,930
Bank of Ayudhya Ltd. (Foreign)........................ 164,650 422,341
BEC World Public Co., Ltd. (Foreign).................. 25,900 237,980
*Ch. Harnchang Public Co., Ltd. (Foreign)............. 48,900 135,729
Dhana Siam Finance & Securities Public Co., Ltd. (For-
eign)................................................ 200,000 235,452
Electricity Generating Public Co., Ltd. (Foreign)..... 58,400 156,508
First Bangkok City Bank Ltd. (Foreign)................ 272,600 226,993
General Finance & Securities Co. plc (Foreign)........ 41,500 38,132
Italian-Thai Development Corp. (Foreign).............. 16,300 54,916
Krung Thai Bank plc (Foreign)......................... 482,730 605,261
Krungthai Thanakit plc (Foreign)...................... 66,200 67,163
Land and House Co., Ltd. (Foreign).................... 42,200 120,364
Multi Credit Corp. (Foreign).......................... 10,800 7,649
National Finance & Securities Co., Ltd. (Foreign)..... 286,900 354,231
Nava Finance & Securities Public Co., Ltd. (Foreign).. 167,300 112,088
*NTS Steel Groups Co., Ltd. (Foreign)................. 48,700 8,017
*PTT Exploration & Production (Foreign)............... 19,800 253,185
Precious Shipping plc (Foreign)....................... 26,700 71,554
Robinson Department Store (Foreign)................... 50,000 47,856
Samart Corp. plc (Foreign)............................ 29,600 112,757
Securities One Public Co., Ltd. (Foreign)............. 24,400 26,156
Shinawatra Satellite Public Co., Ltd. (Foreign)....... 94,600 110,463
Siam City Bank Public Co., Ltd. (Foreign)............. 44,000 35,796
Siam City Cement Co., Ltd. (Foreign).................. 11,700 313,553
Siam Commercial Bank Co., Ltd. (Foreign).............. 86,700 507,852
Siam Makro Public Co., Ltd. (Foreign)................. 41,700 91,798
</TABLE>

The accompanying notes are an integral part of the financial statements.

12
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
<S> <C> <C>
THAILAND--(CONTINUED)
Sitca Investment & Securities Co. (Foreign)........... 700 $ 422
*TelecomAsia Corp. Public Co., Ltd. (Foreign)......... 101,700 154,769
Thai Airways International Ltd........................ 161,200 234,518
*Thai Petrochemical Industry Public Co., Ltd. (For-
eign)................................................ 306,700 302,355
*Thai Telephone & Communication Public Co., Ltd. (For-
eign)................................................ 126,450 77,458
United Communication Industry (Foreign)............... 32,200 200,942
-----------
6,204,059
- -------------------------------------------------------------------------------
TURKEY (0.9%)
Aksa Akrilik Kimya Sanayii AS......................... 466,678 56,824
Altinyildiz Mensucat Ve Konfeksiyon Fabrikalari AS.... 138,000 18,585
Cimentas AS........................................... 481,068 65,676
Eregli Demir Ve Celik Fabrikalari TAS................. 2,370,000 231,736
Finans Bank AS........................................ 3,093,254 36,523
Guney Biracilik Ve Malt Sanayii....................... 197,750 13,426
*Kartonsan Kart Sanayi Ve Ticaret AS.................. 210,000 19,371
Marshall Boya Ve Vernik Sanayii....................... 163,000 22,854
Netas Telekomunik..................................... 646,000 178,769
Tat Konserve Sanayii AS............................... 601,999 107,730
*Turk Hava Yollari A.O................................ 69 16
*Turk Sise Ve Cam Fabrikalari......................... 1 --
Turkiye Tutunculer Bankasi............................ 2 --
-----------
751,510
- -------------------------------------------------------------------------------
VENEZUELA (1.0%)
Electricidad de Caracas............................... 611,688 664,657
*Manufacturas Textiles................................ 91,080 7,394
Siderurgica Venezolana Sivensa........................ 1,528 4,294
Siderurgica Venezolana Sivensa, Class A............... 168,000 49,484
Sudamtex de Venezuela, Class B........................ 236,313 19,430
Venepal S.A., Class B................................. 31,183 5,777
Venezolana de Cementos................................ 45,084 114,962
-----------
865,998
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $65,596,757)................. 68,012,781
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

13
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
PREFERRED STOCKS (13.3%)
- --------------------------------------------------------------------------------
<S> <C> <C>
BRAZIL (13.3%)
Aracruz Celulose S.A., Class B......................... 191,700 $ 360,542
Banco Bradesco......................................... 74,097,003 613,178
Banco Itau............................................. 1,118,000 604,523
Bombril S.A............................................ 26,400,000 384,803
Brahma................................................. 830,909 565,321
Brasmotor S.A.......................................... 1,100,000 263,777
*Cevel Alimentos S.A................................... 20,000,000 204,062
*Cia Acos Especiais Itabira............................ 19,740,000 46,408
Cia Brasil Petroleo Ipiranga........................... 26,700,000 415,540
Cia Brasileira de Frigorificos......................... 272,000 163,701
Cia Brasileira de Petroleo Ipiranga.................... 30,600,000 489,186
Cia Cimento Portland Itau.............................. 1,100,000 387,907
*Cia Energetica de Minas Gerais........................ 15,600,000 711,345
*Cia Energetica de Sao Paulo........................... 3,900,000 207,213
*Cia Siderurgica Paulista-Cosipa, Class B.............. 138,000 94,734
Cia Siderurgica Riograndense S.A....................... 18,836,969 540,274
Cia Siderurgica Tubarao, Class B....................... 12,300,000 172,922
Cia Vale do Rio Doce................................... 19,960 508,667
Copene Petroquimica do Nordeste S.A., Class A.......... 490,000 171,873
Eletrobras, Class B.................................... 945,602 441,056
Fertilizantes Fosfatados............................... 109,300,000 472,804
Globex Utilidades S.A.................................. 6,000 107,203
IKPC--Industrias Klabin de Papel E Celulose S.A........ 201,000 207,918
*Iochpe Maxion S.A..................................... 310,000 25,945
Itausa Investimentos Itau S.A.......................... 800,000 677,074
Mineracao da Trindade-Samitri.......................... 3,003,000 96,297
Petrobras.............................................. 1,358,666 285,557
Petrobras Distribuidora S.A............................ 11,250,000 211,585
Refinaria de Petroleo Ipiranga......................... 16,800,000 142,185
Ripasa S.A............................................. 264,000 79,443
Sadia Concordia S.A.................................... 215,000 183,985
Telebras............................................... 3,680,060 422,165
Telepar................................................ 150,000 102,972
Telesp S.A............................................. 3,309,559 939,897
</TABLE>

The accompanying notes are an integral part of the financial statements.

14
<PAGE>

The accompanying notes are an integral part of the financial statements.

15
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- --------------------------------------------------------------------------------
CONVERTIBLE DEBENTURE (0.1%)
- --------------------------------------------------------------------------------
<S> <C> <C>
MALAYSIA (0.1%)
Multi-Purpose Holdings Bhd., 3.00%, 1/13/02 (COST
$77,566)............................................. MYR 193,000 $ 71,895
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT (7.8%)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT (7.8%)
Chase Securities, Inc. 5.20%, dated 4/30/97, due
5/1/97, to be repurchased at $6,864,991,
collateralized by $6,903,298 of various U.S. Treasury
Notes, 4.75%-6.125% due from 8/31/98-10/31/98, valued
at $6,869,515 (COST $6,864,000)...................... $6,864,000 6,864,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (99.1%) (COST $81,730,353) (a)....... 86,756,951
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.9%).................... 800,446
- --------------------------------------------------------------------------------
NET ASSETS (100%)...................................... $87,557,397
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>
+ See Note A to Financial Statements.
* Non-Income Producing Security.
ADR American Depositary Receipt
GDR Global Depositary Receipt
GDS Global Depositary Shares
MYR Malaysian Ringgit
(a) The cost for federal income tax purposes was $81,730,353. At April 30,
1997, net unrealized appreciation for all securities based on tax cost
was $5,026,598. This consisted of aggregate gross unrealized
appreciation for all securities of $17,343,425 and aggregate gross
unrealized depreciation for all securities of $12,316,827.

The accompanying notes are an integral part of the financial statements.

16
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

At April 30, 1997 sector diversification of the Portfolio was as follows:
<TABLE>
<CAPTION>
% OF
NET MARKET
SECTOR DIVERSIFICATION ASSETS VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
Agriculture................................................ 1.6% $ 1,399,601
Automotive................................................. 2.6 2,305,436
Banks...................................................... 9.7 8,480,579
Beverages, Food & Tobacco.................................. 5.3 4,614,290
Building Materials......................................... 1.4 1,192,493
Building Related........................................... 0.2 204,062
Capital Equipment.......................................... 0.5 424,500
Chemicals.................................................. 4.1 3,569,691
Construction............................................... 3.2 2,824,448
Consumer Durables.......................................... 0.8 715,300
Electronics................................................ 1.3 1,089,618
Energy..................................................... 4.8 4,169,937
Entertainment & Leisure.................................... 0.2 158,236
Financial Services......................................... 8.5 7,453,712
Forest Products & Paper.................................... 0.7 647,903
Holding Company............................................ 7.7 6,773,939
Home Furnishings & Appliances.............................. 0.1 90,880
Industrial................................................. 0.8 677,468
Insurance.................................................. 0.3 262,756
Iron & Steel............................................... 1.3 1,146,163
Lodging & Restaurants...................................... 0.3 264,824
Machinery.................................................. -- 25,945
Manufacturing.............................................. 1.9 1,697,806
Metals..................................................... 2.7 2,370,259
Mining..................................................... 1.2 1,074,197
Multi-Industry............................................. 1.8 1,581,076
Oil & Gas.................................................. 1.7 1,440,189
Paper & Packaging.......................................... 1.1 920,112
Pharmaceuticals............................................ 1.1 1,000,759
Real Estate................................................ 2.2 1,897,969
Repurchase Agreement....................................... 7.8 6,864,000
Retail..................................................... 3.4 2,999,724
Services................................................... 0.5 422,234
Telecommunications......................................... 8.0 7,016,901
Textiles & Apparel......................................... 0.4 345,482
Transportation............................................. 3.4 2,985,801
Utilities.................................................. 6.5 5,648,661
- --------------------------------------------------------------------------------
Total Investments......................................... 99.1% $86,756,951
Other Assets and Liabilities (Net)......................... 0.9 800,446
- --------------------------------------------------------------------------------
Net Assets................................................ 100.0% $87,557,397
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

17
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1997 (Unaudited)

<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at Value (Cost $81,730,353).......................... $86,756,951
Foreign Currency, at Value (Cost $803,400)........................ 781,658
Dividends Receivable.............................................. 364,898
Foreign Withholding Tax Reclaim Receivable........................ 1,231
Interest Receivable............................................... 991
Deferred Organization Costs--Note A............................... 626
Other Assets...................................................... 789
- -------------------------------------------------------------------------------
Total Assets..................................................... 87,907,144
- -------------------------------------------------------------------------------
LIABILITIES
Payable for Custodian Fees--Note D................................ 247,780
Payable for Investment Advisory Fees--Note B...................... 67,070
Payable for Administrative Fees--Note C........................... 12,330
Payable for Shares Redeemed....................................... 5,339
Payable to Custodian.............................................. 3,440
Payable for Directors' Fees--Note G............................... 785
Payable for Account Services Fees--Note F......................... 16
Other Liabilities................................................. 12,987
- -------------------------------------------------------------------------------
Total Liabilities................................................ 349,747
- -------------------------------------------------------------------------------
NET ASSETS......................................................... $87,557,397
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in Capital................................................... $78,997,363
Undistributed Net Investment Income............................... 598,024
Accumulated Net Realized Gain..................................... 2,958,271
Unrealized Appreciation........................................... 5,003,739
- -------------------------------------------------------------------------------
NET ASSETS......................................................... $87,557,397
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
Shares Issued and Outstanding ($0.001 par value) (Authorized
25,000,000)...................................................... 6,574,417
Net Asset Value, Offering and Redemption Price Per Share.......... $13.32
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

18
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1997 (Unaudited)

<TABLE>
- ---------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Dividends........................................................... $1,273,030
Interest............................................................ 76,502
Less Foreign Taxes Withheld......................................... (47,106)
- ---------------------------------------------------------------------------------
Total Income....................................................... 1,302,426
- ---------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees--Note B.................................... 386,646
Custodian Fees--Note D.............................................. 135,260
Administrative Fees--Note C......................................... 64,070
Printing Fees....................................................... 8,317
Registration and Filing Fees........................................ 7,544
Audit Fees.......................................................... 7,434
Legal Fees.......................................................... 1,979
Directors' Fees--Note G............................................. 1,359
Amortization of Organizational Costs--Note A........................ 277
Account Services Fees--Note F....................................... 16
Other Expenses...................................................... 7,667
- ---------------------------------------------------------------------------------
Total Expenses..................................................... 620,569
Expense Offset--Note A.............................................. --
- ---------------------------------------------------------------------------------
Net Expenses....................................................... 620,569
- ---------------------------------------------------------------------------------
NET INVESTMENT INCOME................................................ 681,857
- ---------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON:
Investments......................................................... 3,055,036
Foreign Exchange Transactions....................................... (65,931)
- ---------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN ON INVESTMENTS AND FOREIGN EXCHANGE TRANSAC-
TIONS............................................................... 2,989,105
- ---------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON:
Investments......................................................... 4,236,030
Foreign Exchange Translations....................................... 10,390
- ---------------------------------------------------------------------------------
TOTAL NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION............. 4,246,420
- ---------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS AND FOREIGN EXCHANGE TRANSACTIONS............ 7,235,525
- ---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. $7,917,382
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

19
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
APRIL 30, ENDED
1997 OCTOBER 31,
(UNAUDITED) 1996
- ----------------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS
OPERATIONS:
Net Investment Income................................. $ 681,857 $ 710,560
Net Realized Gain..................................... 2,989,105 62,405
Net Change in Unrealized Appreciation/Depreciation.... 4,246,420 2,004,764
- ----------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations. 7,917,382 2,777,729
- ----------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income................................. (689,960) (60,888)
Net Realized Gain..................................... (195,793) (182,665)
- ----------------------------------------------------------------------------------
Total Distributions.................................. (885,753) (243,553)
- ----------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (1)
Issued--Regular....................................... 11,720,674 36,059,283
--In Lieu of Cash Distributions..................... 855,408 241,843
Redeemed.............................................. (1,699,609) (3,130,062)
- ----------------------------------------------------------------------------------
Net Increase from Capital Share Transactions......... 10,876,473 33,171,064
- ----------------------------------------------------------------------------------
Total Increase........................................ 17,908,102 35,705,240
Net Assets:
Beginning of Period................................... 69,649,295 33,944,055
- ----------------------------------------------------------------------------------
End of Period (including undistributed net investment
income of $598,024
and $606,127, respectively).......................... $87,557,397 $69,649,295
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
(1)Shares Issued and Redeemed:
Shares Issued........................................ 888,958 2,951,393
In Lieu of Cash Distributions........................ 73,049 22,372
Shares Redeemed...................................... (131,967) (251,153)
- ----------------------------------------------------------------------------------
830,040 2,722,612
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

20
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED
APRIL 30, OCTOBER 31, JUNE 17, 1993***
1997 -------------------------- TO OCTOBER 31,
(UNAUDITED) 1996 1995 1994 1993
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 12.12 $ 11.23 $ 14.00 $11.34 $10.00
- ------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income
(Loss)................ 0.11 0.13 0.05 (0.03) (0.01)
Net Realized and
Unrealized Gain
(Loss)................ 1.24 0.84 (2.82) 2.74 1.35
- ------------------------------------------------------------------------------------
Total from Investment
Operations........... 1.35 0.97 (2.77) 2.71 1.34
- ------------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income.. (0.12) (0.02) -- -- --
Net Realized Gain...... (0.03) (0.06) -- (0.05) --
- ------------------------------------------------------------------------------------
Total Distributions... (0.15) (0.08) -- (0.05) --
- ------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD................. $ 13.32 $ 12.12 $ 11.23 $14.00 $11.34
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
TOTAL RETURN............ 11.35%** 8.72% (19.79)%+ 23.97%+ 13.40%+**
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL
DATA
Net Assets, End of Pe-
riod (Thousands)....... $87,557 $69,649 $33,944 $5,558 $3,927
Ratio of Expenses to
Average Net Assets..... 1.60%* 1.79% 1.78% 2.07% 2.43%*
Ratio of Net Investment
Income (Loss) to Aver-
age Net Assets......... 1.76%* 1.29% 0.86% (0.25)% (0.37)%*
Portfolio Turnover Rate. 11% 11% 21% 9% 2%
Average Commission Rate
#...................... $0.0001 $0.0004 N/A N/A N/A
- ------------------------------------------------------------------------------------
Voluntarily Waived Fees
and Expenses Assumed by
the Adviser Per Share.. N/A N/A $ 0.02 $ 0.12 $ 0.04
Ratio of Expenses to Av-
erage Net Assets In-
cluding Expense Off-
sets................... 1.60%* 1.79% 1.77% N/A N/A
- ------------------------------------------------------------------------------------
</TABLE>
* Annualized
** Not Annualized
*** Commencement of Operations.
+ Total return would have been lower had certain fees not been waived during
the periods indicated.
# For fiscal years beginning on or after September 1, 1995, a portfolio is
required to disclose the average commission rate per share it paid for
portfolio trades on which commissions were charged.

The accompanying notes are an integral part of the financial statements.

21
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

UAM Funds, Inc. and UAM Funds Trust (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The Acadian
Emerging Markets Portfolio (the "Portfolio"), a portfolio of UAM Funds, Inc.,
is a diversified, open-end management investment company. At April 30, 1997,
the UAM Funds were composed of forty-two active portfolios. The financial
statements of the remaining portfolios are presented separately. The objective
of the Portfolio is to seek long-term capital appreciation by investing
primarily in common stocks of emerging country issuers.

A. SIGNIFICANT ACCOUNTING POLICIES: The following significant accounting
policies are in conformity with generally accepted accounting principles. Such
policies are consistently followed by the Portfolio in the preparation of its
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: Securities listed on a United States securities
exchange for which market quotations are readily available are valued at
the last quoted sales price as of the close of the exchange on the day the
valuation was made or, if no sale occurred on such day, at the bid price on
such day. Securities listed on a foreign exchange are valued at their
closing price. Price information on listed securities is taken from the
exchange where the security is primarily traded. Over-the-counter and
unlisted securities are valued not exceeding the current asked prices nor
less than the current bid prices. Short-term investments that have
remaining 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 is
determined in good faith at fair value using methods determined by the
Board of Directors.

2. FEDERAL INCOME TAXES: It is the Portfolio'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
Portfolio 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 Portfolio accrues such taxes when the related income is
earned.

3. REPURCHASE AGREEMENTS: In connection with transactions involving
repurchase agreements, the Portfolio's custodian bank takes possession of
the underlying securities, the value of which exceeds the principal amount
of the repurchase transaction, including accrued interest. To the extent
that any repurchase transaction exceeds one business day, the value of the
collateral is monitored on a daily basis to determine the adequacy of the
collateral. In the event of default on the obligation to repurchase, the
Portfolio has the right to liquidate the collateral and apply the proceeds
in satisfaction of the obligation. In the event of default or bankruptcy by
the other party to the agreement, realization and/or retention of the
collateral or proceeds may be subject to legal proceedings.

Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the UAM Funds may transfer their daily uninvested cash balances
into a joint trading account which invests in one or more repurchase
agreements. This joint repurchase agreement is covered by the same
collateral requirements as discussed above.

22
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

U.S. dollars on the date of valuation. The Portfolio 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 gain and loss 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
Portfolio's books and the U.S. dollar equivalent amounts actually received
or paid.

5. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS: The Portfolio 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
Portfolio as unrealized gain or loss. The Portfolio recognizes realized
gain or loss 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 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. Risks may also arise from the
unanticipated movements in the value of a foreign currency relative to the
U.S. dollar.

6. DISTRIBUTIONS TO SHAREHOLDERS: The Portfolio will normally distribute
substantially all of its net investment income annually. Any realized net
capital gains will be distributed annually. All distributions are recorded
on ex-dividend date.

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 for foreign currency
transactions and deferred organization costs.

Permanent book and tax basis differences relating to shareholder
distributions may result in reclassifications to undistributed net
investment income (loss), accumulated net realized gain (loss) and paid in
capital.

Permanent book-tax differences, if any, are not included in ending
undistributed net investment income for the purpose of calculating net
investment income per share in the financial highlights.

7. ORGANIZATION COST: Costs incurred by the Portfolio in connection with
its organization have been deferred and are being amortized on a straight-
line basis over a five year period.

8. OTHER: Security transactions are accounted for on trade date, the date
the trade was 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.
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

23
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

portfolio. Expenses which cannot be directly attributed are apportioned
among the portfolios of the UAM Funds based on their relative net assets.
Custodian fees for the Portfolio have been increased to include expense
offsets for custodian balance credits, if any.

B. ADVISORY SERVICES: Under the terms of an investment advisory agreement,
Acadian Asset Management, Inc. (the "Adviser"), a wholly-owned subsidiary of
United Asset Management Corporation ("UAM"), provides investment advisory
services to the Portfolio at a fee calculated at an annual rate of 1.00% of
average daily net assets. The Adviser has voluntarily agreed to waive a
portion of its advisory fees and to assume expenses, if necessary, in order to
keep the Portfolio's total annual operating expenses, after the effect of
expense offset arrangements, from exceeding 2.50% of average daily net assets.

C. ADMINISTRATION SERVICES: UAM Fund Services, Inc. (the "Administrator"), a
wholly-owned subsidiary of UAM, provides and oversees administrative, fund
accounting, dividend disbursing and transfer agent services to the UAM Funds
under a Fund Administration Agreement (the "Agreement"). Pursuant to the
Agreement, the Administrator is entitled to receive annual fees, computed
daily and payable monthly, of 0.19% of the first $200 million of the combined
aggregate net assets; plus 0.11% of the next $800 million of the combined
aggregate net assets; plus 0.07% of the next $2 billion of the combined
aggregate net assets; plus 0.05% of the combined aggregate net assets in
excess of $3 billion. The fees are allocated among the portfolios of the UAM
Funds on the basis of their relative net assets and are subject to a graduated
minimum fee schedule per portfolio which rises from $2,000 per month, upon
inception of a portfolio, to $70,000 annually after two years. For portfolios
with more than one class of shares, the minimum annual fee increases to
$90,000. In addition, the Administrator receives a Portfolio-specific monthly
fee of 0.06% of average daily net assets of the Portfolio. The Administrator
has entered into a Mutual Funds Service Agreement with Chase Global Funds
Services Company ("CGFSC"), an affiliate of The Chase Manhattan Bank, under
which CGFSC agrees to provide certain services, including but not limited to,
administration, fund accounting, dividend disbursing and transfer agent
services. Pursuant to the Mutual Funds Service Agreement, the Administrator
pays CGFSC a monthly fee. For the six months ended April 30, 1997, UAM Fund
Services, Inc. earned $64,070 from the Portfolio as Administrator of which
$40,871 was paid to CGFSC for its services.

D. CUSTODIAN: The Chase Manhattan Bank, an affiliate of CGFSC, is custodian
for the Portfolio's 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 Portfolio. The
Distributor does not receive any fee or other compensation with respect to the
Portfolio.

24
<PAGE>

ACADIAN EMERGING MARKETS PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

the end of each month, a fee at the annual rate of 0.15% of the average
aggregate daily net asset value of shares of the UAM Funds in the accounts for
which they provide services.

G. DIRECTORS' FEES: Each Director, who is not an officer or affiliated person,
receives $2,000 per meeting attended, which is allocated proportionally among
the active portfolios of the UAM Funds, plus a quarterly retainer of $150 for
each active portfolio of the UAM Funds, and reimbursement of expenses incurred
in attending Board meetings.

H. PURCHASES AND SALES: For the six months ended April 30, 1997, the Portfolio
made purchases of $12,574,749 and sales of $8,736,661 of investment securities
other than long-term U.S. Government and short-term securities. There were no
purchases or sales of long-term U.S. Government securities.

I. LINE OF CREDIT: The Portfolio, along with certain other portfolios of the
UAM Funds, collectively entered into an agreement which enables them to
participate in a $100 million unsecured line of credit with several banks.
Borrowings will be made solely to temporarily finance the repurchase of
Capital shares. Interest is charged to each participating portfolio based on
its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%.
In addition, a commitment fee of 1/8th of 1% per annum, payable at the end of
each calendar quarter, is accrued by each participating portfolio based on its
average daily unused portion of the line of credit. For the six months ended
April 30, 1997, the Portfolio had no borrowings under the agreement.

J. OTHER: At April 30, 1997, 79.3% of total shares outstanding were held by
three record shareholders owning 10% or greater of the aggregate total shares
outstanding.

The Portfolio retains a redemption fee of 1.00% on redemptions of Capital
shares held for less than 90 days in the Portfolio. For the six months ended
April 30, 1997, such redemption fees totaled approximately $6,500.

At April 30, 1997, the net assets of the Portfolio were substantially composed
of foreign denominated securities and/or currency. Changes in currency
exchange rates will affect the value of and investment income from such
securities and currency.

Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of U.S. dollar denominated
transactions as a result of, among other factors, the possibly lower level of
governmental supervision and regulation of foreign securities markets and the
possibility of political or economic instability.

25
<PAGE>

- --------------------------------------------------------------------------------
UAM FUNDS
ACADIAN INTERNATIONAL EQUITY
PORTFOLIO
- --------------------------------------------------------------------------------
OFFICERS AND DIRECTORS

Norton H. Reamer William H. Park
Director, President Vice President
and Chairman

John T. Bennett, Jr. Michael E. DeFao
Director Secretary

Philip D. English Karl O. Hartmann
Director Assistant Secretary

William A. Humenuk Gary L. French
Director Treasurer

Peter M. Whitman, Jr. Robert R. Flaherty
Director Assistant Treasurer

Gordon M. Shone
Assistant Treasurer
- --------------------------------------------------------------------------------
INVESTMENT ADVISER
Acadian Asset Management, Inc.
Two International Place
Boston, MA 02110
- --------------------------------------------------------------------------------
ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street
Boston, MA 02110
- --------------------------------------------------------------------------------
CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, NY 11245
- --------------------------------------------------------------------------------
LEGAL COUNSEL
Stradley, Ronon, Stevens & Young LLP
2600 One Commerce Square
Philadelphia, PA 19103
- --------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
Boston, MA 02110
- --------------------------------------------------------------------------------
DISTRIBUTOR
UAM Fund Distributors, Inc.
211 Congress Street
Boston, MA 02110
- --------------------------------------------------------------------------------
This report has been prepared for shareholders and may be distributed to others
only if preceded or accompanied by a current prospectus.
- --------------------------------------------------------------------------------

[LOGO OF UAM FUNDS APPEARS HERE]

UAM Funds

ACADIAN
INTERNATIONAL
EQUITY PORTFOLIO

- --------------------------------------------------------------------------------

SEMI-ANNUAL REPORT
APRIL 30, 1997
<PAGE>

Dear Shareholder,

We are pleased to present the semi-annual report for the Acadian International
Equity Portfolio. This commentary covers the six months from November 1, 1996
to April 30, 1997, focusing on the Portfolio's performance and some of the
economic and market conditions that impacted returns.

PORTFOLIO PERFORMANCE REVIEW

Total return for the six months ended April 30, 1997 was -1.75% in U.S.
dollars. The benchmark index, the Morgan Stanley Capital International Index
(MSCI) for Europe, Australia, and the Far East (EAFE), returned 1.57%.

ECONOMIC AND MARKET CONDITIONS

The developed international equity markets as represented by the MSCI EAFE
Index were up moderately in dollar terms for the six months ended April 30,
1997. Most of these markets were up more in local terms, but the strength of
the U.S. dollar transformed these into lower dollar-based returns. Europe was
the strongest sector of EAFE, as such markets as Germany, Switzerland, Spain,
the Netherlands, and the United Kingdom all posted double-digit returns.
Continuing the trend of the last two years, Asian markets had generally lower
returns than Europe, pulled down largely by Japan. Asian markets outside of
Japan were also weak, as Singapore, Malaysia, and Hong Kong all had negative
returns. Overall, however, global economic conditions were favorable, in an
environment of low interest rates and rising economic growth and corporate
earnings. An important feature of this environment in terms of world stock
markets was that market returns tended to be dominated by large-cap, growth
oriented stocks. Particularly in Japan, investors focused most of their
attention on the blue chip sector, with the result that smaller stocks often
did not share in the market rallies of the last six months.

INVESTMENT STRATEGY USED DURING THE FIRST HALF

Acadian continued to pursue its disciplined, value-based strategy, using
quantitative valuation frameworks to identify the most attractive companies in
our 20,000+ security database. While these frameworks are tailored to reflect
the unique conditions of each market, some of the key factors used in valuing
companies include price/book ratio, price/earnings ratio, capitalization size,
price momentum, changes in analysts' earnings estimates, and a proprietary
dividend discount model.

While a prediction of overall market return is an explicit input into the
valuation of each stock, Acadian portfolios are built from the bottom up, and
thus country and industry weightings are the result of buying the most
attractive stocks in the investment universe (while maintaining a reasonable
level of benchmark-relative risk). This stock-selection approach led to the
Portfolio being overweighted in several key countries over the six-month
period, including Canada, the United Kingdom, and the Netherlands. The
Portfolio was underweighted in Japan, Australia, Germany and Switzerland.

The resulting Portfolio had very attractive valuation characteristics, with a
price/book value, price/sales ratio, and price/earnings ratio all
significantly lower than the benchmark index. The Portfolio also had a
somewhat smaller orientation than the MSCI EAFE Index, with more assets in the
mid-size $1-$5 billion capitalization range, and somewhat fewer assets in the
larger-size range of $5-$10 billion in capitalization.

1
<PAGE>

COMMENTARY ON THE PORTFOLIO'S INVESTMENT PERFORMANCE

As noted above, the Acadian International Equity Portfolio returned -1.75% for
the six months ended April 30, 1997, versus a return of 1.57% for the MSCI
EAFE Index. Over the period, country selection made a neutral to slightly
negative contribution to the Portfolio's total return, underperforming the
benchmark index by 20 basis points. Stock selection, however, underperformed
more significantly, detracting 320 basis points. Most of this occurred in
Japan, as we explain in more detail below.

The Portfolio's performance during the six month period covered was enhanced
by investments in:

. CANADA: The Canadian stocks identified by Acadian's framework had good
returns in the first period, adding 30 basis points to return. Value-
oriented equities were helped by an environment characterized by strong
earnings growth, low interest rates, and low inflation.

. UNITED KINGDOM: The Portfolio's selections in the U.K. did better than the
market as a whole, adding 20 basis points from stock selection. The
Portfolio's overweighting also added to returns as the U.K. market
outperformed the benchmark index. Total value added was 60 basis points.

. NETHERLANDS: Stock selection and a country overweighting in the Netherlands
were also successful. The Dutch equity market saw moderately good returns
during the period, as investors reacted positively to robust economic
growth and positive earnings revisions. These revisions supported returns
to Acadian's "return reversal" factor, which is one of the stock factors we
use most heavily in the Dutch market. The result was 30 basis points of
value added, split equally between stock selection and country allocation.

. SPAIN: A small underweighting in the Spanish market had a neutral impact on
returns, but individual stock selection added 100 basis points as the
Portfolio's stocks performed significantly better than the market as a
whole. Spanish stocks that scored highly on such Acadian stock selection
factors as price/earnings, return reversal, and trend in analysts' earnings
revisions achieved excess return.

The main investments detracting from the Portfolio's performance during the
period covered were the following:

. HONG KONG: An overweighting in the Hong Kong equity market detracted from
return as investors were unsettled by the rise in U.S. interest rates and
the pending takeover by China. Returns to Acadian's value-oriented stock
selection frameworks were also negative, detracting 50 basis points. The
net performance was 60 basis points below the benchmark index.

. SWITZERLAND AND GERMANY: The Portfolio's underweightings in Switzerland and
Germany detracted 60 basis points each as these markets strongly
outperformed the benchmark index.

. JAPAN: The Portfolio was underweighted in Japan in January when the market
underperformed most severely, which added 40 basis points to returns. This
was offset, however, by underperformance in Japanese stock selection. The
Japanese market continued to be extremely volatile during the period, as
investors remained gloomy over economic prospects. The market rallies that
punctuated this environment tended to be driven by larger, blue-chip
stocks. The return to Acadian's stock selection factors in Japan was not in
line with long-term patterns, as such value-based factors as normalized
earnings yield saw negative returns for the period as a whole. The result
was -280 basis points from stock selection, offsetting the country
selection value added for a net return that was 240 basis points below the
benchmark index.

2
<PAGE>

CURRENT OUTLOOK

We remain very positive in our outlook for the world's developed equity
markets, most of which are experiencing a highly favorable economic
environment characterized by moderate growth, low interest rates, and low
inflation. The robustness of the U.S. dollar, while reducing returns somewhat
for U.S. investors, is having a strong positive effect on many non-U.S.
economies, both in keeping inflation and interest rates under control and in
boosting the profits of export-oriented companies. Acadian will continue to
consistently apply its bottom-up stock valuation approach to constructing a
diversified portfolio with highly attractive value characteristics.

If we can provide any further information, please contact me at (617) 946-
3500.

Sincerely,

/s/ Churchill G. Franklin
Churchill G. Franklin
Senior Vice President

DEFINITION OF THE COMPARATIVE INDEX

The Morgan Stanley Capital International EAFE Index is an unmanaged index
composed of 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.

Comparisons of performance assume reinvestment of dividends.

Please note that one cannot invest in an unmanaged index.

The investment results presented in the Adviser's letter represent past
performance and should not be construed as a guarantee of future results. If
the Adviser did not have temporary fee waivers, and did not assume expenses on
behalf of the Portfolio, total return for the Portfolio would have been lower.
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. For a complete discussion of the risks associated with
international investing, please refer to the Portfolio's Prospectus.

3
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (98.1%)
- -----------------------------------------------------------------------------
AUSTRALIA (9.1%)
Australia & New Zealand Banking Group Ltd. ............. 34,600 $ 220,891
Caltex Australia Ltd.................................... 16,100 54,843
Commonwealth Bank of Australia.......................... 21,100 229,114
David Jones Ltd. ....................................... 86,400 113,146
Email Ltd. ............................................. 22,000 73,569
Foster's Brewing Group Ltd. ............................ 17,000 34,984
National Australia Bank Ltd. ........................... 21,800 298,230
Qantas Airways Ltd. .................................... 58,900 122,357
Rothmans Holdings Ltd. ................................. 7,800 51,134
Santos Ltd. ............................................ 59,600 232,292
Westpac Banking Corp. .................................. 46,700 251,543
-----------
1,682,103
- -----------------------------------------------------------------------------
AUSTRIA (0.6%)
Voest-Alpine Stahl AG................................... 2,900 114,374
- -----------------------------------------------------------------------------
BELGIUM (1.1%)
Electrabel S.A.......................................... 900 204,591
- -----------------------------------------------------------------------------
CANADA (5.8%)
Bank of Nova Scotia..................................... 600 22,775
Canadian Imperial Bank of Commerce...................... 1,600 36,749
Cascades, Inc. ......................................... 14,900 93,285
Magna International, Inc., Class A...................... 800 41,843
Metro-Richeliee, Inc., Class A.......................... 2,650 27,494
National Bank of Canada................................. 21,200 247,252
Onex Corp............................................... 7,800 131,153
Stelco, Inc., Class A................................... 14,000 82,141
TELUS Corp.............................................. 4,400 63,280
Trilon Financial Corp., Class A......................... 30,300 166,936
Westcoast Energy, Inc. ................................. 9,100 156,919
-----------
1,069,827
- -----------------------------------------------------------------------------
FINLAND (0.4%)
Merita Ltd., Class A.................................... 19,200 62,390
- -----------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

4
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- -----------------------------------------------------------------------------
FRANCE (2.5%)
Banque Nationale de Paris............................... 400 $ 17,078
Chargeurs International S.A............................. 250 14,789
Cie Financiere de CIC et de L'Union Europeenne.......... 300 17,489
Compagnie Generale D'Industrie et de Participations..... 637 193,212
De Dietrich et Compagnie S.A............................ 550 25,179
Eridania Beghin-Say S.A................................. 250 37,936
Pernod Ricard........................................... 2,900 149,122
-----------
454,805
- -----------------------------------------------------------------------------
GERMANY (3.6%)
BASF AG................................................. 2,800 107,352
Merck KGaA.............................................. 6,050 238,696
Otto Reichelt AG........................................ 1,850 28,512
Papierwerke Waldhof-Aschaffenburg AG.................... 800 128,839
Viag AG................................................. 100 44,562
Viag AG (New)........................................... 84 36,851
Volkswagen AG........................................... 100 63,380
Wuensche AG............................................. 300 21,231
-----------
669,423
- -----------------------------------------------------------------------------
HONG KONG (8.1%)
Cathay Pacific Airways Ltd.............................. 108,000 168,009
Guoco Group Ltd......................................... 30,000 142,525
Hang Lung Development Co................................ 116,000 214,149
Hong Kong & Shanghai Hotels Ltd......................... 94,000 136,522
Hong Kong Aircraft Engineering Co., Ltd................. 12,000 34,702
Jardine International Motor Holdings Ltd................ 20,000 23,238
Kumagai Gumi Ltd........................................ 177,000 191,944
Lai Sun Garment (International) Ltd..................... 32,000 39,246
Peregrine Investment Holdings Ltd....................... 70,000 107,539
QPL International Holdings Ltd.......................... 80,000 56,804
Semi-Tech (Global) Ltd.................................. 34,000 47,186
Shangri-La Asia Ltd..................................... 26,000 32,391
Swire Pacific Ltd., Class A............................. 22,000 169,701
Tai Cheung Holdings Ltd................................. 72,000 57,165
</TABLE>

The accompanying notes are an integral part of the financial statements.

5
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- -----------------------------------------------------------------------------
HONG KONG--(CONTINUED)
Union Bank of Hong Kong Ltd............................. 26,000 $ 37,761
Wing On Company International Ltd....................... 26,000 30,209
-----------
1,489,091
- -----------------------------------------------------------------------------
JAPAN (24.7%)
Aoki International Co., Ltd............................. 3,000 52,225
Bank of Okinawa Ltd..................................... 1,000 25,207
Cesar Co. .............................................. 4,000 14,840
Chiyoda Fire & Marine Insurance Co., Ltd................ 14,700 52,686
Chuetsu Pulp & Paper Co., Ltd........................... 6,000 17,440
Chugoku Electric Power Co., Ltd......................... 2,000 31,981
Citizen Watch Co., Ltd. ................................ 2,000 14,384
Cosmo Oil Co., Ltd. .................................... 30,000 122,174
Dai-Tokyo Fire & Marine Insurance....................... 6,000 28,121
Daikyo, Inc. ........................................... 24,000 74,675
Daio Paper Corp......................................... 13,000 103,427
Daiwa Kosho Lease Co., Ltd.............................. 12,000 80,252
Dowa Fire & Marine Insurance Co. ....................... 10,000 39,779
Fuji Fire & Marine Insurance............................ 28,000 92,635
Fuji Photo Film Co., Ltd. .............................. 6,000 229,224
Fujita Corp. ........................................... 79,000 121,347
Gunze Ltd. ............................................. 18,000 77,700
Hitachi Ltd............................................. 16,000 144,939
Hokkaido Bank........................................... 35,000 38,046
House Foods Industry.................................... 6,000 87,909
Idec Izumi.............................................. 3,000 21,977
Itochu Fuel Corp........................................ 10,000 47,184
Jaccs................................................... 8,000 43,167
Kamei................................................... 4,000 34,974
Kikkoman Corp........................................... 20,000 105,396
Kirin Beverage Corp. ................................... 5,000 68,137
Kita-Nippon Bank........................................ 550 24,262
Kyudenko Co., Ltd....................................... 6,000 42,536
Lion Corp. ............................................. 22,000 87,861
Matsumura-Gumi.......................................... 13,000 33,793
Matsushita Electric Industrial Co., Ltd. ............... 13,000 207,877
</TABLE>

The accompanying notes are an integral part of the financial statements.

6
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- -----------------------------------------------------------------------------
JAPAN--(CONTINUED)
Mitsubishi Oil.......................................... 41,000 $ 167,940
Mitsui Wood Systems, Inc................................ 2,000 13,391
Nichiei (Fudosan)....................................... 10,000 17,330
Nichimen Corp........................................... 32,000 93,769
Nintendo Corp., Ltd..................................... 500 36,550
Nippon Meat Packers, Inc................................ 12,000 119,102
Nippon Metal Industry................................... 9,000 19,992
Nippon Oil Co., Ltd..................................... 27,000 127,184
Nippon Shinpan Co....................................... 24,000 69,193
Nissan Motor Co., Ltd................................... 37,000 217,716
Nissho Iwai Corp........................................ 1,000 9,059
Orient Corp............................................. 29,000 92,745
Osaka Stadium........................................... 8,000 40,961
Sega Enterprises........................................ 3,000 78,929
Seino Transportation Co., Ltd........................... 19,000 172,115
Seiyo Food Systems...................................... 4,000 28,673
Sekisui House Ltd....................................... 26,000 231,430
Senshukai............................................... 6,000 50,571
Shionogi & Co........................................... 10,000 66,562
Snow Brand Milk Products Co............................. 9,000 40,410
Suntelephone Co., Ltd................................... 2,000 11,816
Takashimaya Co.......................................... 6,000 67,113
Tokyo Construction Co................................... 25,000 46,278
Tonen Corp.............................................. 7,000 65,616
Toyo Seikan Kaisha...................................... 11,000 201,890
Toyota Tsusho Corp...................................... 8,000 35,794
Uchida Yoko............................................. 7,000 26,081
Yamaichi Securities Co.................................. 11,000 28,767
Yasuda Fire & Marine Insurance.......................... 45,000 208,428
-----------
4,551,560
- -----------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

7
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- -----------------------------------------------------------------------------
MALAYSIA (1.2%)
MBF Capital Bhd. ....................................... 13,000 $ 19,267
Multi-Purpose Holdings Bhd. ............................ 43,000 70,239
Oriental Holdings Bhd. ................................. 4,000 30,279
Perlis Plantations Bhd. ................................ 34,750 103,835
-----------
223,620
- -----------------------------------------------------------------------------
NETHERLANDS (9.7%)
ABN Amro Holdings N.V. ................................. 5,000 343,650
Boskalis Westminster N.V. .............................. 4,987 101,112
DSM N.V. ............................................... 2,500 248,948
ING Groep N.V. ......................................... 6,100 239,529
International-Muller N.V. .............................. 3,600 104,404
KLM Royal Dutch Air Lines N.V. ......................... 8,900 263,135
Koninklijke Hoogovens N.V. ............................. 5,700 260,394
Koninklijke Van Ommeren N.V. ........................... 4,200 163,628
Koninklijke Volker Stevin N.V. ......................... 600 68,217
-----------
1,793,017
- -----------------------------------------------------------------------------
NEW ZEALAND (0.9%)
Lion Nathan Ltd. ....................................... 69,900 168,065
- -----------------------------------------------------------------------------
NORWAY (4.1%)
Den Norske Bank A.S. ................................... 33,100 119,465
Elkem ASA............................................... 7,400 141,854
Nera ASA................................................ 15,500 99,042
Norske Skogindustrier ASA, Class A...................... 4,600 152,780
Orkla ASA, Class A...................................... 2,300 192,832
Sparebanken NOR......................................... 1,000 28,789
Unitor ASA.............................................. 2,100 25,658
-----------
760,420
- -----------------------------------------------------------------------------
SINGAPORE (1.7%)
Fraser & Neave Ltd. .................................... 17,000 123,427
Hotel Properties Ltd. .................................. 34,000 54,073
Singapore Land Ltd. .................................... 8,000 37,339
Wing Tai Holdings Ltd. ................................. 40,000 103,443
-----------
318,282
- -----------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

8
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- -----------------------------------------------------------------------------
SPAIN (0.8%)
Tabacalera S.A., Class A................................ 3,000 $ 150,770
- -----------------------------------------------------------------------------
SWEDEN (1.2%)
Hoganas AB, Class B..................................... 1,300 38,954
SSAB Svenkst Stal AB, Class B........................... 6,000 106,726
Sparbanken Sverige AB, Class A.......................... 3,900 69,621
-----------
215,301
- -----------------------------------------------------------------------------
UNITED KINGDOM (22.6%)
APV plc................................................. 44,300 62,444
Allied Domecq plc....................................... 28,600 201,568
Anglian Water plc....................................... 17,300 191,441
B.A.T. Industries plc................................... 39,600 332,989
Bank of Scotland........................................ 40,200 240,336
Bemrose Corp. plc....................................... 7,200 50,161
Bristol Water Holding plc............................... 1,100 20,585
British Airways plc..................................... 9,500 108,512
British Sky Broadcasting Group plc...................... 6,100 56,334
British Steel plc....................................... 96,400 221,785
Cowie Group plc......................................... 21,700 129,734
General Accident plc.................................... 16,000 227,216
Guardian Royal Exchange plc............................. 49,500 220,950
Heywood Williams Group plc.............................. 9,300 36,991
Hyder plc............................................... 3,600 49,986
Invesco plc............................................. 23,700 127,867
Kwik Fit Holdings plc................................... 5,436 21,226
McBride plc............................................. 28,800 58,327
National Grid Group plc................................. 13,527 48,654
National Home Loans Holdings plc........................ 7,800 18,198
Nothern Foods plc....................................... 62,500 210,625
Premier Oil plc......................................... 265,900 170,170
RJB Mining plc.......................................... 11,700 79,806
Severn Trent plc........................................ 18,500 226,301
Southern Electric plc................................... 11,630 82,155
*Southern Electric plc, Class B......................... 12,600 6,124
Sun Alliance Group plc.................................. 35,645 280,674
</TABLE>

The accompanying notes are an integral part of the financial statements.

9
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- ----------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- ----------------------------------------------------------------------------
UNITED KINGDOM--(CONTINUED)
Thames Water plc.................................... 17,700 $ 193,573
Unigate plc......................................... 25,400 191,361
United Utilities plc................................ 17,900 196,050
*Waste Management International plc................. 5,200 20,220
Yorkshire Water plc................................. 11,240 65,560
*Yorkshire Water plc, Class B....................... 22,600 13,182
-----------
4,161,105
- ----------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $18,624,304)............... 18,088,744
- ----------------------------------------------------------------------------
PREFERRED STOCKS (0.3%)
- ----------------------------------------------------------------------------
GERMANY (0.3%)
Villeroy & Boch AG (COST $74,836)................... 450 60,004
- ----------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT
- ----------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE DEBENTURE (0.1%)
- ----------------------------------------------------------------------------
MALAYSIA (0.1%)
Multi-Purpose Holdings Bhd., 3.0%, 1/13/02 (COST
$17,318)........................................... MYR 43,000 16,018
- ----------------------------------------------------------------------------
SHORT-TERM INVESTMENT (0.4%)
- ----------------------------------------------------------------------------
REPURCHASE AGREEMENT (0.4%)
Chase Securities, Inc. 5.20%, dated 4/30/97, due
5/1/97, to be repurchased at $78,011, collateral-
ized by $78,447 of various U.S. Treasury Notes,
4.75%-6.125% due from 8/31/98-10/31/98, valued at
$78,063 (COST $78,000)............................. $78,000 78,000
- ----------------------------------------------------------------------------
TOTAL INVESTMENTS (98.9%) (COST $18,794,458) (a)..... 18,242,766
- ----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (1.1%).................. 207,510
- ----------------------------------------------------------------------------
NET ASSETS (100%).................................... $18,450,276
============================================================================
</TABLE>
+ See Note A to Financial Statements.
* Non-Income Producing Security.
MYR Malaysian Ringgit
(a) The cost for federal income tax purposes was $18,794,458. At April 30,
1997, net unrealized depreciation for all securities based on tax cost
was $551,692. This consisted of aggregate gross unrealized appreciation
for all securities of $1,862,319 and aggregate gross unrealized
depreciation for all securities of $2,414,011.

The accompanying notes are an integral part of the financial statements.

10
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

At April 30, 1997, sector diversification of the Portfolio was as follows:
<TABLE>
<CAPTION>
% OF
NET MARKET
SECTOR DIVERSIFICATION ASSETS VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
Automotive................................................. 2.4% $ 433,475
Banks...................................................... 10.9 2,010,618
Beverages, Food & Tobacco.................................. 8.6 1,585,828
Broadcasting & Publishing.................................. 0.3 56,334
Building Materials......................................... 0.1 13,391
Commercial Services........................................ 0.2 34,702
Capital Equipment.......................................... 0.1 26,081
Chemicals.................................................. 3.4 620,498
Construction............................................... 4.1 761,219
Consumer Durables.......................................... 1.9 351,194
Consumer Non-Durables...................................... 2.0 373,828
Consumer Staples........................................... 0.2 28,673
Electronics................................................ 3.3 603,450
Energy..................................................... 3.2 584,294
Entertainment & Leisure.................................... 0.2 40,961
Financial Services......................................... 6.4 1,176,832
Holding Company............................................ 7.4 1,360,897
Home Furnishings & Appliances.............................. 1.7 304,999
Industrial................................................. 1.4 266,039
Insurance.................................................. 6.2 1,150,490
Iron & Steel............................................... 0.4 82,141
Lodging & Restaurants...................................... 1.0 190,595
Manufacturing.............................................. 1.8 326,189
Metals..................................................... 2.3 421,900
Mining..................................................... 0.4 79,806
Multi-Industry............................................. 1.0 184,489
Oil & Gas.................................................. 3.8 699,003
Paper & Packaging.......................................... 3.8 697,660
Pharmaceuticals............................................ 1.7 305,258
Real Estate................................................ 1.2 230,298
Repurchase Agreement....................................... 0.4 78,000
Services................................................... 2.1 389,625
Technology................................................. 1.1 205,745
Telecommunications......................................... 0.9 174,138
Textiles & Apparel......................................... 1.5 270,767
Transportation............................................. 5.4 997,757
Utilities.................................................. 6.1 1,125,592
- -------------------------------------------------------------------------------
Total Investments........................................ 98.9% $18,242,766
Other Assets and Liabilities (Net)......................... 1.1 207,510
- -------------------------------------------------------------------------------
Net Assets............................................... 100.0% $18,450,276
===============================================================================
</TABLE>

The accompanying notes are an integral part of the financial statements.

11
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1997 (Unaudited)

<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at Value (Cost $18,794,458)......................... $18,242,766
Foreign Currency, at Value (Cost $184,067)....................... 183,122
Cash............................................................. 179
Dividends Receivable............................................. 116,001
Foreign Withholding Tax Reclaim Receivable....................... 16,663
Receivable due from Investment Adviser-Note B.................... 2,589
Deferred Organization Costs-Note A............................... 505
Other Assets..................................................... 208
- -------------------------------------------------------------------------------
Total Assets.................................................... 18,562,033
- -------------------------------------------------------------------------------
LIABILITIES
Payable for Investments Purchased................................ 54,193
Payable for Custodian Fees-Note D................................ 32,961
Payable for Administrative Fees-Note C........................... 9,270
Payable for Directors' Fees-Note G............................... 654
Payable for Account Services Fees--Note F........................ 143
Other Liabilities................................................ 14,536
- -------------------------------------------------------------------------------
Total Liabilities............................................... 111,757
- -------------------------------------------------------------------------------
NET ASSETS........................................................ $18,450,276
===============================================================================
NET ASSETS CONSIST OF:
Paid in Capital.................................................. $18,891,856
Undistributed Net Investment Income.............................. 53,595
Accumulated Net Realized Gain.................................... 58,810
Unrealized Depreciation.......................................... (553,985)
- -------------------------------------------------------------------------------
NET ASSETS........................................................ $18,450,276
===============================================================================
INSTITUTIONAL CLASS SHARES
Shares Issued and Outstanding ($0.001 par value) (Authorized
25,000,000)..................................................... 1,565,071
Net Asset Value, Offering and Redemption Price Per Share......... $ 11.79
===============================================================================
</TABLE>

The accompanying notes are an integral part of the financial statements.

12
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1997 (Unaudited)

<TABLE>
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends.................................................. $ 230,811
Interest................................................... 6,355
Less: Foreign Taxes Withheld............................... (32,754)
- --------------------------------------------------------------------------------
Total Income.............................................. 204,412
- --------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees--Note B
Basic Fees................................................ $68,223
Less: Fees Waived......................................... (68,223) --
-------
Administrative Fees--Note C................................ 51,569
Custodian Fees--Note D..................................... 26,284
Registration and Filing Fees............................... 7,695
Printing Fees.............................................. 7,658
Audit Fees................................................. 6,850
Directors' Fees--Note G.................................... 1,019
Legal Fees................................................. 508
Amortization of Organizational Costs--Note A............... 277
Account Services Fees--Note F.............................. 143
Other Expenses............................................. 1,050
Expenses Assumed by the Investment Adviser--Note B......... (11,821)
- --------------------------------------------------------------------------------
Total Expenses............................................ 91,232
Expense Offset--Note A..................................... --
- --------------------------------------------------------------------------------
Net Expenses.............................................. 91,232
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME....................................... 113,180
- --------------------------------------------------------------------------------
NET REALIZED GAIN ON:
Investments................................................ 356,748
Foreign Exchange Transactions.............................. 14,422
- --------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN ON INVESTMENTS AND FOREIGN EXCHANGE
TRANSACTIONS............................................... 371,170
- --------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON:
Investments................................................ (851,130)
Foreign Exchange Translations.............................. (10,133)
- --------------------------------------------------------------------------------
TOTAL NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION.... (861,263)
- --------------------------------------------------------------------------------
NET LOSS ON INVESTMENTS AND FOREIGN EXCHANGE TRANSACTIONS... (490,093)
- --------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $(376,913)
================================================================================
</TABLE>

The accompanying notes are an integral part of the financial statements.

13
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
APRIL 30, ENDED
1997 OCTOBER 31,
(UNAUDITED) 1996
- ----------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Income................................. $ 113,180 $ 225,677
Net Realized Gain..................................... 371,170 661,922
Net Change in Unrealized Appreciation/Depreciation.... (861,263) 130,947
- ----------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from
Operations.......................................... (376,913) 1,018,546
- ----------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income................................. (410,681) --
Net Realized Gain..................................... (847,856) (45,051)
- ----------------------------------------------------------------------------------
Total Distributions.................................. (1,258,537) (45,051)
- ----------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (1)
Issued--Regular....................................... 2,852,681 15,377,297
--In Lieu of Cash Distributions..................... 1,235,841 45,051
Redeemed.............................................. (1,081,895) (1,791,361)
- ----------------------------------------------------------------------------------
Net Increase from Capital Share Transactions......... 3,006,627 13,630,987
- ----------------------------------------------------------------------------------
Total Increase........................................ 1,371,177 14,604,482
Net Assets:
Beginning of Period................................... 17,079,099 2,474,617
- ----------------------------------------------------------------------------------
End of Period (including undistributed net investment
income of $53,595 and $351,096, respectively)........ $18,450,276 $17,079,099
==================================================================================
(1) Shares Issued and Redeemed:
Shares Issued........................................ 234,540 1,243,285
In Lieu of Cash Distributions........................ 101,883 3,824
Shares Redeemed...................................... (91,245) (141,721)
- ----------------------------------------------------------------------------------
245,178 1,105,388
==================================================================================
</TABLE>

The accompanying notes are an integral part of the financial statements.

14
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
APRIL 30, OCTOBER 31, MARCH 29, 1993***
1997 ------------------------ TO OCTOBER 31,
(UNAUDITED) 1996 1995 1994 1993
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 12.94 $ 11.54 $12.37 $11.77 $10.00
- -------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income
(Loss)................ 0.08 0.17 (0.01) (0.04) (0.04)
Net Realized and
Unrealized Gain
(Loss)................ (0.28) 1.44 (0.56) 0.95 1.81
- -------------------------------------------------------------------------------------
Total from Investment
Operations........... (0.20) 1.61 (0.57) 0.91 1.77
- -------------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income.. (0.31) -- -- -- --
Net Realized Gain...... (0.64) (0.21) (0.26) (0.31) --
- -------------------------------------------------------------------------------------
Total Distributions... (0.95) (0.21) (0.26) (0.31) --
- -------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD................. $ 11.79 $ 12.94 $11.54 $12.37 $11.77
=====================================================================================
TOTAL RETURN+........... (1.75)%** 14.13% (4.58)% 8.02% 17.70%**
=====================================================================================
RATIOS AND SUPPLEMENTAL
DATA
Net Assets, End of Pe-
riod (Thousands)....... $18,450 $17,079 $2,475 $2,427 $2,264
Ratio of Expenses to Av-
erage Net Assets....... 1.00%* 1.06% 2.54% 2.50% 2.50%*
Ratio of Net Investment
Income (Loss) to
Average Net Assets..... 1.24%* 1.87% (0.11)% (0.38)% (0.76)%*
Portfolio Turnover
Rate................... 49% 80% 76% 56% 44%
Average Commission Rate
#...................... $0.0045 $0.0043 N/A N/A N/A
- -------------------------------------------------------------------------------------
Voluntarily Waived Fees
and Expenses Assumed by
the Adviser per share.. $ 0.06 $ 0.11 $ 0.46 $ 0.21 $ 0.14
Ratio of Expenses to
Average Net Assets
Including Expense
Offsets................ 1.00%* 1.05% 2.50% N/A N/A
- -------------------------------------------------------------------------------------
</TABLE>
* Annualized
** Not Annualized
*** Commencement of Operations.
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser during the periods.
# For fiscal years beginning on or after September 1, 1995, a portfolio is
required to disclose the average commission rate per share it paid for
portfolio trades on which commissions were charged.

The accompanying notes are an integral part of the financial statements.

15
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

UAM Funds, Inc. and UAM Funds Trust (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The Acadian
International Equity Portfolio (the "Portfolio"), a portfolio of UAM Funds,
Inc., is a diversified, open-end management investment company. At April 30,
1997, the UAM Funds were composed of forty-two active portfolios. The
financial statements of the remaining portfolios are presented separately. The
objective of the Portfolio is to provide maximum long-term total return
consistent with reasonable risk to principal that is superior over the long
term to the performance of the Benchmark Index (Morgan Stanley Capital
International Index for Europe, Australia and the Far East or "EAFE") by
investing in a diversified portfolio of equity securities of primarily non-
United States issuers.

16
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
repurchase agreements. This joint repurchase agreement is covered by the
same collateral requirements as discussed above.

4. FOREIGN CURRENCY TRANSLATION: The books and records of the Portfolio 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 Portfolio 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 gain and loss 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
Portfolio's books and the U.S. dollar equivalent amounts actually received
or paid.

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, foreign currency
transactions and in-kind transactions.

Permanent book-tax differences, if any, are not included in ending
undistributed net investment income for the purpose of calculating net
investment income per share in the financial highlights.

7. ORGANIZATION COST: Costs incurred by the Portfolio in connection with
its organization have been deferred and are being amortized on a straight-
line basis over a five year period.

17
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
8. OTHER: Security transactions are accounted for on trade date, the date
the trade was 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.
Interest income is recognized on the accrual basis. 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. Custodian fees for the
Portfolio have been increased to include expense offsets for custodian
balance credits, if any.

B. ADVISORY SERVICES: Under the terms of an investment advisory agreement,
Acadian Asset Management, Inc. (the "Adviser"), a wholly-owned subsidiary of
United Asset Management Corporation ("UAM"), provides investment advisory
services to the Portfolio at a fee calculated at an annual rate of 0.75% of
the first $50 million of average daily net assets, 0.65% of the next $50
million of average daily net assets, 0.50% of the next $100 million of average
daily net assets and 0.40% of the average daily net assets in excess of $200
million. The Adviser has voluntarily agreed to waive a portion of its advisory
fees and to assume expenses on behalf of the Portfolio, if necessary, in order
to keep the Portfolio's total annual operating expenses, after the effect of
expense offset arrangements, from exceeding 1.00% of average daily net assets.

C. ADMINISTRATION SERVICES: UAM Fund Services, Inc. (the "Administrator"), a
wholly-owned subsidiary of UAM, provides and oversees administrative, fund
accounting, dividend disbursing and transfer agent services to the UAM Funds
under a Fund Administration Agreement (the "Agreement"). Pursuant to the
Agreement, the Administrator is entitled to receive annual fees, computed
daily and payable monthly, of 0.19% of the first $200 million of the combined
aggregate net assets; plus 0.11% of the next $800 million of the combined
aggregate net assets; plus 0.07% of the next $2 billion of the combined
aggregate net assets; plus 0.05% of the combined aggregate net assets in
excess of $3 billion. The fees are allocated among the portfolios of the UAM
Funds on the basis of their relative net assets and are subject to a graduated
minimum fee schedule per portfolio which rises from $2,000 per month, upon
inception of a portfolio, to $70,000 annually after two years. For portfolios
with more than one class of shares, the minimum annual fee increases to
$90,000. In addition, the Administrator receives a Portfolio-specific monthly
fee of 0.06% of average daily net assets of the Portfolio. The Administrator
has entered into a Mutual Funds Service Agreement with Chase Global Funds
Services Company ("CGFSC"), an affiliate of The Chase Manhattan Bank, under
which CGFSC agrees to provide certain services, including but not limited to,
administration, fund accounting, dividend disbursing and transfer agent
services. Pursuant to the Mutual Funds Service Agreement, the Administrator
pays CGFSC a monthly fee. For the six months ended April 30, 1997, UAM Fund
Services, Inc. earned $51,569 from the Portfolio as Administrator of which
$46,111 was paid to CGFSC for its services.

D. CUSTODIAN: The Chase Manhattan Bank, an affiliate of CGFSC, is custodian
for the Portfolio's assets held in accordance with the custodian agreement.

18
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
wholly-owned subsidiary of UAM. Under the Services Agreement, the Service
Provider agrees to perform certain services for participants in a self-
directed, defined contribution plan, and for whom the Service Provider
provides participant recordkeeping. Pursuant to the Services Agreement, the
Service Provider is entitled to receive, after the end of each month, a fee at
the annual rate of 0.15% of the average aggregate daily net asset value of
shares of the UAM Funds in the accounts for which they provide services.

H. PURCHASES AND SALES: For the six months ended April 30, 1997, the Portfolio
made purchases of $11,551,754 and sales of $8,752,402 of investment securities
other than long-term U.S. Government and short-term securities. There were no
purchases or sales of long-term U.S. Government securities.

J. OTHER: At April 30, 1997, 88.9% of total shares outstanding were held by
two record shareholders owning 10% or greater of the aggregate total shares
outstanding.

19
<PAGE>

ACADIAN INTERNATIONAL EQUITY PORTFOLIO

J. OTHER: At April 30, 1997, 88.9% of total shares outstanding were held by
two record shareholders owning 10% or greater of the aggregate total shares
outstanding.

The Portfolio retains a redemption fee of 1.00% on redemptions of capital
shares held for less than 90 days in the Portfolio. For the six months ended
April 30, 1997, such redemption fees totaled approximately $100.

At April 30, 1997, the net assets of the Portfolio was substantially composed
of foreign denominated securities and/or currency. Changes in currency
exchange rates will affect the value of and investment income from such
securities and currency.

20
<PAGE>

- -------------------------------------------------------------------------------

UAM FUNDS
C & B BALANCED PORTFOLIO

- -------------------------------------------------------------------------------

OFFICERS AND DIRECTORS

Norton H. Reamer William H. Park
Director, President and Chairman Vice President

John T. Bennett, Jr. Michael E. DeFao
Director Secretary

Philip D. English Karl O. Hartmann
Director Assistant Secretary

William A. Humenuk Gary L. French
Director Treasurer

Peter M. Whitman, Jr. Robert R. Flaherty
Director Assistant Treasurer

Gordon M. Shone
Assistant Treasurer

- -------------------------------------------------------------------------------

INVESTMENT ADVISER
Cooke & Bieler, Inc.
1700 Market Street Philadelphia, PA 19103

- -------------------------------------------------------------------------------

ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street
Boston, MA 02110

- -------------------------------------------------------------------------------

CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center Brooklyn, NY 11245

- -------------------------------------------------------------------------------

LEGAL COUNSEL
Stradley, Ronon, Stevens & Young LLP
2600 One Commerce Square Philadelphia, PA 19103

- -------------------------------------------------------------------------------

INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
Boston, MA 02110

- -------------------------------------------------------------------------------

DISTRIBUTOR
UAM Fund Distributors, Inc.
211 Congress Street Boston, MA 02110

- -------------------------------------------------------------------------------

This report has been prepared for shareholders and may be distributed to
others only if preceded or accompanied by a current prospectus.

================================================================================

[LOGO OF UAM Funds APPEARS HERE]

C & B BALANCED
PORTFOLIO

================================================================================

SEMI-ANNUAL REPORT
APRIL 30, 1997
<PAGE>

Dear Shareholder:

The following report provides a detailed description of the securities held
and the statement of operations for the Cooke & Bieler Balanced Portfolio for
the six month period ended April 30, 1997.

For the just completed semi-annual period, the Cooke & Bieler Balanced
Portfolio underperformed its benchmark index. This index consists of a blended
return of 60% of the S&P 500 Index and 40% of the Lehman Brothers
Government/Corporate Index. Over this period, the Cooke & Bieler Balanced
Portfolio appreciated 6.61% versus 9.35% for the benchmark index.
Individually, the S&P 500 Index produced a total return of 14.71% and the
Lehman Brothers Government/Corporate Index produced a total return of 1.30%
for the same time period. Given our "high quality, low risk" philosophy and
given the generous returns for this six month period, these results are not
out of line with the expectations of the Cooke & Bieler style nor inconsistent
with the firm's philosophy.

As of April 30, 1997, common stocks represented approximately 55% of the
Portfolio, bonds were approximately 40% and cash reserves were approximately
5%.

EQUITY ONLY ANALYSIS

Our equity investment philosophy and process is designed to produce
competitive results during rising markets and strong relative results in flat
and down periods. During the last six months, the equity only portion of the
Cooke & Bieler Balanced Portfolio lagged the S&P 500 Index, but remained
competitive in a strong up market.

The strong fundamental characteristics of the companies held in the equity
portion of the Cooke & Bieler Balanced Portfolio should provide downside
protection. These high quality characteristics include (1) balance sheet
strength measured by a relatively low debt to capital ratio, (2) high levels
of return on equity and return on capital, (3) consistent growth in earnings
and dividends, and (4) use of excess cash flow to repurchase stock.

FIXED INCOME ONLY ANALYSIS

Cooke & Bieler's fixed income philosophy is designed to produce the same
pattern of results as our equity philosophy. The past six months were a
difficult period for fixed income investors, however, the return on the fixed
income portion of the Cooke & Bieler Balanced Portfolio somewhat outperformed
the return on the Lehman Brothers Government/Corporate Index. This type of
downside protection is critical if we are to be successful in outperforming
over the long-term while taking less risk than the benchmark index.

Sincerely,

/s/ Peter A. Thompson

Peter A. Thompson

1
<PAGE>

DEFINITIONS OF THE COMPARATIVE INDICES
--------------------------------------

The S&P 500 Index is an unmanaged index composed of 400 industrial, 40
financial, 40 utilities and 20 transportation stocks.

The Lehman Brothers Government/Corporate Index is an unmanaged index composed
of a combination of the Government and Corporate Bond Indices. The Government
Index includes public obligations of the U.S. Treasury, issues of Government
agencies, and corporate debt backed by the U.S. Government. The Corporate Bond
Index includes fixed-rate non-convertible corporate debt. Also included are
Yankee Bonds and non-convertible debt issued by or guaranteed by foreign or
international governments and agencies. All issues are investment grade (BBB)
or higher, with maturities of at least one year and outstanding par value of
at least $100 million for U.S. Government issues and $25 million for others.
Any security downgraded during the month is held in the index until month-end
and then removed. All returns are market value weighted inclusive of accrued
income.

The composite Index, a hypothetical combination of unmanaged indices, reflects
the Portfolios typical mix of 60% stocks and 40% bonds. The index combines
returns from the S&P 500 Index and the Lehman Brothers Government/Corporate
Index.

Comparisons of performance assume reinvestment of dividends.

Please note that one cannot invest in an unmanaged index.

The investment results presented in the Adviser's letter represent past
performance and should not be construed as a guarantee of future results.
Without the Adviser's temporary fee waiver, total return for the Portfolio
would have been lower. 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.

2
<PAGE>

C & B BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>

COMMON STOCKS (55.1%)
- -------------------------------------------------------------------------------
AEROSPACE & DEFENSE (2.6%)
Boeing Co. ............................................ 1,300 $ 128,212
Raytheon Co. .......................................... 10,400 453,700
-----------
581,912
- -------------------------------------------------------------------------------
AUTOMOTIVE (3.2%)
Eaton Corp............................................. 3,100 232,112
Genuine Parts Co. ..................................... 15,000 485,625
-----------
717,737
- -------------------------------------------------------------------------------
BANKS (0.9%)
Wachovia Corp. ........................................ 3,400 198,900
- -------------------------------------------------------------------------------
BROADCASTING & PUBLISHING (2.2%)
McGraw-Hill Cos., Inc.................................. 6,800 345,950
Readers Digest Association, Inc., Class A (Non-Voting). 6,000 138,000
-----------
483,950
- -------------------------------------------------------------------------------
CAPITAL EQUIPMENT (3.1%)
Dover Corp............................................. 10,000 530,000
General Signal Corp. .................................. 3,700 145,225
-----------
675,225
- -------------------------------------------------------------------------------
CHEMICALS (1.9%)
Eastman Chemical Co.................................... 5,000 255,000
Hercules, Inc. ........................................ 4,000 157,500
-----------
412,500
- -------------------------------------------------------------------------------
CONSTRUCTION (2.9%)
Fluor Corp. ........................................... 4,000 220,000
Sherwin-Williams Co. .................................. 14,000 423,500
-----------
643,500
- -------------------------------------------------------------------------------
CONSUMER DURABLES (2.8%)
Corning, Inc........................................... 7,000 337,750
Rubbermaid, Inc. ...................................... 12,000 288,000
-----------
625,750
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

3
<PAGE>

C & B BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
CONSUMER NON-DURABLES (3.0%)
Avon Products, Inc. ................................... 3,400 $ 209,525
Hasbro, Inc............................................ 11,550 288,750
International Flavors & Fragrances, Inc. .............. 4,000 168,500
-----------
666,775
- -------------------------------------------------------------------------------
ELECTRONICS (3.1%)
AMP, Inc. ............................................. 8,500 304,937
Grainger (W.W.), Inc. ................................. 2,600 195,975
Motorola, Inc.......................................... 3,400 194,650
-----------
695,562
- -------------------------------------------------------------------------------
ENERGY (6.6%)
Burlington Resources, Inc. ............................ 11,200 474,600
Exxon Corp. ........................................... 8,000 453,000
Royal Dutch Petroleum Co. ............................. 3,000 540,750
-----------
1,468,350
- -------------------------------------------------------------------------------
FINANCIAL SERVICES (7.4%)
EXEL Ltd............................................... 8,900 347,100
Marsh & McLennan Cos., Inc. ........................... 4,400 530,200
MBIA, Inc. ............................................ 3,100 301,863
State Street Corp. .................................... 5,900 464,625
-----------
1,643,788
- -------------------------------------------------------------------------------
MANUFACTURING (2.4%)
Dana Corp. ............................................ 9,800 312,375
Pall Corp. ............................................ 9,500 219,688
-----------
532,063
- -------------------------------------------------------------------------------
MULTI-INDUSTRY (1.9%)
National Service Industries, Inc. ..................... 1,400 58,975
Whitman Corp. ......................................... 15,400 356,125
-----------
415,100
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

4
<PAGE>

C & B BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- --------------------------------------------------------------------------------
OFFICE EQUIPMENT (6.0%)
International Business Machines Corp. ................. 3,300 $ 530,475
Pitney Bowes, Inc. .................................... 5,900 377,600
Xerox Corp. ........................................... 7,000 430,500
-----------
1,338,575
- --------------------------------------------------------------------------------
PAPER & PACKAGING (0.8%)
Sonoco Products Co. ................................... 1,000 26,875
Union Camp Corp........................................ 3,100 150,738
-----------
177,613
- --------------------------------------------------------------------------------
PHARMACEUTICALS (3.3%)
Bristol-Myers Squibb Co. .............................. 5,000 327,500
Schering-Plough Corp. ................................. 5,000 400,000
-----------
727,500
- --------------------------------------------------------------------------------
SERVICES (1.0%)
Service Corp. International............................ 6,700 229,475
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $9,165,877)................... 12,234,275
- --------------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT
- --------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE OBLIGATIONS (15.0%)
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE (2.2%)
Boeing Co.
6.35%, 6/15/03......................................... $ 500,000 484,320
- --------------------------------------------------------------------------------
BEVERAGES, FOOD & TOBACCO (6.9%)
Coca Cola Co.
7.875%, 9/15/98........................................ 1,000,000 1,019,930
Philip Morris Cos., Inc.
8.75%, 6/15/97......................................... 500,000 501,540
-----------
1,521,470
- --------------------------------------------------------------------------------
CONSUMER NON-DURABLES (4.8%)
Clorox Co.
8.80%, 7/15/01......................................... 1,000,000 1,067,800
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

5
<PAGE>

C & B BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE OBLIGATIONS--(CONTINUED)
- --------------------------------------------------------------------------------
ENERGY (1.1%)
Amoco, Canada
7.25%, 12/1/02......................................... $ 250,000 $ 254,370
- --------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS (COST $3,247,791)........... 3,327,960
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY SECURITIES (25.0%)
- --------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (7.0%)
7.50%, 2/11/02......................................... 1,500,000 1,547,580
- --------------------------------------------------------------------------------
U.S. TREASURY BONDS (6.6%)
8.25%, 5/15/05......................................... 400,000 417,064
7.50%, 11/15/16........................................ 1,000,000 1,048,750
-----------
1,465,814
- --------------------------------------------------------------------------------
U.S. TREASURY NOTES (11.4%)
7.00%, 4/15/99......................................... 1,000,000 1,013,280
7.50%, 11/15/01........................................ 1,000,000 1,036,090
6.50%, 10/15/06........................................ 500,000 491,795
-----------
2,541,165
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY SECURITIES
(COST $5,482,852)...................................... 5,554,559
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT (4.0%)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT (4.0%)
Chase Securities, Inc. 5.20%, dated 4/30/97, due
5/1/97, to be repurchased at $898,130, collateralized
by $903,141 of various U.S. Treasury Notes, 4.75%-
6.125% due from 8/31/98-10/31/98, valued at $898,722
(COST $898,000)....................................... 898,000 898,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (99.1%) (COST $18,794,520)(a)......... 22,014,794
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.9%)..................... 208,568
- --------------------------------------------------------------------------------
NET ASSETS (100%)....................................... $22,223,362
================================================================================

</TABLE>
+ See Note A to Financial Statements.
(a) The cost for federal income tax purposes was $18,794,520. At April 30,
1997, net unrealized appreciation for all securities based on tax cost was
$3,220,274. This consisted of aggregate gross unrealized appreciation for
all securities of $3,489,876 and aggregate gross unrealized depreciation
for all securities of $269,602.

The accompanying notes are an integral part of the financial statements.

6
<PAGE>

C & B BALANCED PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1997 (Unaudited)

<TABLE>

- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at Cost.............................................. $18,794,520
===========
Investments, at Value............................................. $22,014,794
Cash.............................................................. 384
Interest Receivable............................................... 186,080
Receivable for Investments Sold................................... 45,551
Dividends Receivable.............................................. 16,532
Other Assets...................................................... 81
- -------------------------------------------------------------------------------
Total Assets..................................................... 22,263,422
- -------------------------------------------------------------------------------
LIABILITIES
Payable for Investment Advisory Fees--Note B...................... 4,103
Payable for Administrative Fees--Note C........................... 8,159
Payable for Custodian Fees--Note D................................ 5,477
Payable for Directors' Fees--Note G............................... 769
Other Liabilities................................................. 21,552
- -------------------------------------------------------------------------------
Total Liabilities................................................ 40,060
- -------------------------------------------------------------------------------
NET ASSETS......................................................... $22,223,362
===============================================================================
NET ASSETS CONSIST OF:
Paid in Capital................................................... $17,872,336
Undistributed Net Investment Income............................... 85,268
Accumulated Net Realized Gain..................................... 1,045,484
Unrealized Appreciation........................................... 3,220,274
- -------------------------------------------------------------------------------
NET ASSETS......................................................... $22,223,362
===============================================================================
INSTITUTIONAL CLASS SHARES
Shares Issued and Outstanding ($0.001 par value) (Authorized
25,000,000)...................................................... 1,796,807
Net Asset Value, Offering and Redemption Price Per Share.......... $ 12.37
===============================================================================
</TABLE>

The accompanying notes are an integral part of the financial statements.

7
<PAGE>

C & B BALANCED PORTFOLIO
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1997 (Unaudited)

<TABLE>
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest.................................................. $ 349,547
Dividends................................................. 124,289
- --------------------------------------------------------------------------------
Total Income............................................. 473,836
- --------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees--Note B
Basic Fees............................................... $ 68,611
Less: Fees Waived........................................ (34,246) 34,365
--------
Administrative Fees--Note C............................... 45,181
Registration and Filing Fees.............................. 10,497
Audit Fees................................................ 7,549
Printing Fees............................................. 6,852
Custodian Fees--Note D.................................... 2,797
Directors' Fees--Note G................................... 1,150
Other Expenses............................................ 2,337
- --------------------------------------------------------------------------------
Total Expenses.......................................... 110,728
Expense Offset--Note A.................................... --
- --------------------------------------------------------------------------------
Net Expenses............................................ 110,728
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME...................................... 363,108
- --------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS........................... 1,091,276
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON IN-
VESTMENTS................................................. (24,275)
- --------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS.................................... 1,067,001
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....... $1,430,109
================================================================================
</TABLE>

The accompanying notes are an integral part of the financial statements.

8
<PAGE>

C & B BALANCED PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED
1997 OCTOBER 31,
(UNAUDITED) 1996
- ---------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Income................................. $ 363,108 $ 807,161
Net Realized Gain..................................... 1,091,276 1,918,101
Net Change in Unrealized Appreciation/Depreciation.... (24,275) 435,301
- ---------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations. 1,430,109 3,160,563
- ---------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income................................. (380,368) (804,110)
Net Realized Gain..................................... (1,921,313) (2,579,017)
- ---------------------------------------------------------------------------------
Total Distributions.................................. (2,301,681) (3,383,127)
- ---------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (1)
Issued--Regular....................................... 918,243 328,108
--In Lieu of Cash Distributions..................... 2,193,234 3,033,780
Redeemed.............................................. (2,645,184) (4,657,088)
- ---------------------------------------------------------------------------------
Net Increase (Decrease) from Capital Share Transac-
tions............................................... 466,293 (1,295,200)
- ---------------------------------------------------------------------------------
Total Decrease........................................ (405,279) (1,517,764)
Net Assets:
Beginning of Period................................... 22,628,641 24,146,405
- ---------------------------------------------------------------------------------
End of Period (including undistributed net investment
income of $85,268 and $102,528, respectively)........ $22,223,362 $22,628,641
=================================================================================
(1) Shares Issued and Redeemed:
Shares Issued........................................ 71,538 26,277
In Lieu of Cash Distributions........................ 183,717 251,778
Shares Redeemed...................................... (206,795) (368,527)
- ---------------------------------------------------------------------------------
48,460 (90,472)
=================================================================================
</TABLE>

The accompanying notes are an integral part of the financial statements.

9
<PAGE>

C & B BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
SIX MONTHS
ENDED
APRIL 30, YEARS ENDED OCTOBER 31,
1997 ----------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 12.94 $ 13.13 $ 11.86 $ 12.68 $ 12.57 $ 11.88
- --------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income.. 0.21 0.45 0.52 0.48 0.45 0.46
Net Realized and
Unrealized Gain
(Loss)................ 0.59 1.29 1.51 (0.39) 0.40 0.79
- --------------------------------------------------------------------------------------
Total From Investment
Operations........... 0.80 1.74 2.03 0.09 0.85 1.25
- --------------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income.. (0.22) (0.45) (0.52) (0.47) (0.44) (0.46)
Net Realized Gain...... (1.15) (1.48) (0.24) (0.44) (0.30) (0.10)
- --------------------------------------------------------------------------------------
Total Distributions... (1.37) (1.93) (0.76) (0.91) (0.74) (0.56)
- --------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD................. $ 12.37 $ 12.94 $ 13.13 $ 11.86 $ 12.68 $ 12.57
======================================================================================
TOTAL RETURN............ 6.61%+** 14.70%+ 17.83%+ 0.74%+ 7.01% 10.72%
======================================================================================
RATIOS AND SUPPLEMENTAL
DATA
Net Assets, End of Pe-
riod (Thousands)....... $22,223 $22,629 $24,146 $32,077 $42,974 $35,326
Ratio of Expenses to
Average Net Assets..... 1.00%* 1.00% 1.00% 1.00% 0.90% 0.91%
Ratio of Net Investment
Income to Average Net
Assets................. 3.28%* 3.51% 3.80% 3.84% 3.65% 3.78%
Portfolio Turnover Rate. 15% 21% 22% 24% 22% 12%
Average Commission Rate
#...................... $0.0512 $0.0511 N/A N/A N/A N/A
- --------------------------------------------------------------------------------------
Voluntarily Waived Fees
and Expenses Assumed by
the Adviser Per Share.. $0.020 $0.037 $0.004 $0.001 N/A N/A
Ratio of Expenses to
Average Net Assets
Including Expense
Offsets................ 1.00%* 1.00% 1.00% N/A N/A N/A
- --------------------------------------------------------------------------------------
</TABLE>
* Annualized
** Not Annualized
+ Total return would have been lower had certain fees not been waived during
the periods indicated.
# For fiscal years beginning on or after September 1, 1995, a portfolio is
required to disclose the average commission rate per share it paid for
portfolio trades on which commissions were charged.

The accompanying notes are an integral part of the financial statements.

10
<PAGE>

C & B BALANCED PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

UAM Funds, Inc. and UAM Funds Trust (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The C & B
Balanced Portfolio (the "Portfolio"), a portfolio of UAM Funds Inc., is a
diversified, open-end management investment company. At April 30, 1997, the
UAM Funds were composed of forty-two active portfolios. The financial
statements of the remaining portfolios are presented separately. The objective
of the Portfolio is to provide maximum long-term total return with minimal
risk to principal by investing in a combined portfolio of common stocks which
have a consistency and predictability in their earnings growth and investment
grade fixed income securities.

1. SECURITY VALUATION: Equity securities listed on a securities exchange
for which market quotations are readily available are valued at the last
quoted sales price as of the close of the exchange on the day the valuation
is made or, if no sale occurred on such day, at the mean of the bid and
asked prices. Price information on listed securities is taken from the
exchange where the security is primarily traded. Over-the-counter and
unlisted equity securities are valued at the mean of the current bid and
asked prices. 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. Short-term
investments that have remaining 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 is determined in good faith at fair value using methods
determined by the Board of Directors.

11
<PAGE>

C & B BALANCED PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

4. DISTRIBUTIONS TO SHAREHOLDERS: The Portfolio will normally distribute
substantially all of its net investment income quarterly. Any realized net
capital gains will be distributed annually. All distributions are recorded
on ex-dividend date.

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 and in-kind transactions.

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.

5. OTHER: Security transactions are accounted for on trade date, the date
the trade was 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.
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. Custodian fees for the Portfolio have been
increased to include expense offsets for custodian balance credits, if any.

B. ADVISORY SERVICES: Under the terms of an investment advisory agreement,
Cooke & Bieler, Inc. (the "Adviser"), a wholly-owned subsidiary of United
Asset Management Corporation ("UAM"), provides investment advisory services to
the Portfolio at a fee calculated at an annual rate of 0.625% of average daily
net assets. The Adviser has voluntarily agreed to waive a portion of its
advisory fees and to assume expenses, if necessary, in order to keep the
Portfolio's total annual operating expenses, after the effect of expense
offset arrangements, from exceeding 1.00% of average daily net assets.

12
<PAGE>

C & B BALANCED PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
Mutual Funds Service Agreement, the Administrator pays CGFSC a monthly fee.
For the six months ended April 30, 1997, UAM Fund Services, Inc. earned
$45,181 from the Portfolio as Administrator of which $38,650 was paid to CGFSC
for its services as sub-Administrator.

D. CUSTODIAN: The Chase Manhattan Bank, an affiliate of CGFSC, is custodian
for the Portfolio's assets held in accordance with the custodian agreement.

F. ACCOUNT SERVICES: Effective February 28, 1997, the UAM Funds entered into
an Account Services Agreement (the "Services Agreement") with UAM Retirement
Plan Services, Inc. (the "Service Provider"), a wholly-owned subsidiary of
UAM. Under the Services Agreement, the Service Provider agrees to perform
certain services for participants in a self-directed, defined contribution
plan, and for whom the Service Provider provides participant recordkeeping.
Pursuant to the Services Agreement, the Service Provider is entitled to
receive, after the end of each month, a fee at the annual rate of 0.15% of the
average aggregate daily net asset value of shares of the UAM Funds in the
accounts for which they provide services.

H. PURCHASES AND SALES: For the six months ended April 30, 1997, the Portfolio
made purchases of $2,185,802 and sales of $4,279,640 of investment securities
other than long-term U.S. Government and short-term securities. Purchases and
sales of long-term U.S. Government securities were $1,030,703 and $617,531,
respectively.

J. OTHER: At April 30, 1997, 54.3% of total shares outstanding were held by
three record shareholders owning 10% or greater of the aggregate total shares
outstanding.

13
<PAGE>

- -------------------------------------------------------------------------------

UAM FUNDS
C & B EQUITY PORTFOLIO

- -------------------------------------------------------------------------------

OFFICERS AND DIRECTORS

Norton H. Reamer William H. Park
Director, President and Chairman Vice President

John T. Bennett, Jr. Michael E. DeFao
Director Secretary

Philip D. English Karl O. Hartmann
Director Assistant Secretary

William A. Humenuk Gary L. French
Director Treasurer

Peter M. Whitman, Jr. Robert R. Flaherty
Director Assistant Treasurer

Gordon M. Shone
Assistant Treasurer

- -------------------------------------------------------------------------------

INVESTMENT ADVISER
Cooke & Bieler, Inc.
1700 Market Street Philadelphia, PA 19103

- -------------------------------------------------------------------------------

ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street
Boston, MA 02110

- -------------------------------------------------------------------------------

CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, NY 11245

- -------------------------------------------------------------------------------

LEGAL COUNSEL
Stradley, Ronon, Stevens & Young LLP
2600 One Commerce Square Philadelphia, PA 19103

- -------------------------------------------------------------------------------

INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street Boston, MA 02110

- -------------------------------------------------------------------------------

DISTRIBUTOR
UAM Fund Distributors, Inc.
211 Congress Street Boston, MA 02110

- -------------------------------------------------------------------------------

This report has been prepared for shareholders and may be distributed to
others only if preceded or accompanied by a current prospectus.

- -------------------------------------------------------------------------------

[LOGO OF UAM FUNDS APPEARS HERE]

C & B
EQUITY
PORTFOLIO
- -------------------------------------------------------------------------------

SEMI-ANNUAL REPORT
APRIL 30, 1997
<PAGE>

Dear Shareholder:

The following report provides a detailed description of the securities held
and statement of operations for the Cooke & Bieler Equity Portfolio for the
six month period ended April 30, 1997.

For the just completed semi-annual period, the Cooke & Bieler Equity Portfolio
underperformed its benchmark index, the S&P 500 Index. Over this period, the
Cooke & Bieler Equity Portfolio rose 10.84% versus 14.71% for the S&P 500.
Given Cooke & Bieler's "high quality, low risk" philosophy and given the
generous returns for this six month period, these results are not out of line
with the expectations of the Cooke & Bieler style nor inconsistent with the
firm's philosophy.

As of April 30, 1997, common stocks represented approximately 91% of the
Portfolio and cash reserves were approximately 9%.

Cooke & Bieler continues to employ an investment process designed to help
produce above average long-term results, with particularly strong relative
results in flat and down markets. The strong fundamental characteristics of
the companies held in the Cooke & Bieler Equity Portfolio should provide this
downside protection. These high quality characteristics, as compared to the
S&P 500, include (1) balance sheet strength measured by a relatively low debt
to capital ratio, (2) high levels of return on equity and return on capital,
(3) consistent growth in earnings and dividends, and (4) use of excess cash
flow to repurchase stock.

Sincerely,

/s/ Peter A. Thompson

Peter A. Thompson

DEFINITION OF THE COMPARATIVE INDEX
-----------------------------------

The S&P 500 Index is an unmanaged index composed of 400 industrial, 40
financial, 40 utilities and 20 transportation stocks.

Comparisons of performance assume reinvestment of dividends.

Please note that one cannot invest in an unmanaged index.

1
<PAGE>

C & B EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (91.3%)
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE (4.4%)
Boeing Co................................................. 12,000 $ 1,183,500
Raytheon Co. ............................................. 102,000 4,449,750
------------
5,633,250
- --------------------------------------------------------------------------------
AUTOMOTIVE (5.4%)
Eaton Corp................................................ 29,000 2,171,375
Genuine Parts Co.......................................... 147,000 4,759,125
------------
6,930,500
- --------------------------------------------------------------------------------
BANKS (1.7%)
Wachovia Corp............................................. 36,500 2,135,250
- --------------------------------------------------------------------------------
BROADCASTING & PUBLISHING (3.6%)
McGraw-Hill Cos., Inc..................................... 65,000 3,306,875
Readers Digest Association, Inc., Class A (Non-Voting).... 57,600 1,324,800
------------
4,631,675
- --------------------------------------------------------------------------------
CAPITAL EQUIPMENT (4.8%)
Dover Corp................................................ 93,000 4,929,000
General Signal Corp. ..................................... 31,400 1,232,450
------------
6,161,450
- --------------------------------------------------------------------------------
CHEMICALS (3.3%)
Eastman Chemical Co....................................... 47,500 2,422,500
Hercules, Inc............................................. 46,000 1,811,250
------------
4,233,750
- --------------------------------------------------------------------------------
CONSTRUCTION (4.6%)
Fluor Corp................................................ 34,900 1,919,500
Sherwin-Williams Co....................................... 130,000 3,932,500
------------
5,852,000
- --------------------------------------------------------------------------------
CONSUMER DURABLES (4.6%)
Corning, Inc.............................................. 65,600 3,165,200
Rubbermaid, Inc. ......................................... 116,000 2,784,000
------------
5,949,200
- --------------------------------------------------------------------------------
CONSUMER NON-DURABLES (5.1%)
Avon Products, Inc........................................ 32,500 2,002,812
Hasbro, Inc............................................... 111,500 2,787,500
International Flavors & Fragrances, Inc................... 40,500 1,706,063
------------
6,496,375
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

2
<PAGE>

C & B EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- --------------------------------------------------------------------------------
ELECTRONICS (5.0%)
AMP, Inc.................................................. 84,000 $ 3,013,500
Grainger (W.W.), Inc. .................................... 23,000 1,733,625
Motorola, Inc............................................. 29,000 1,660,250
------------
6,407,375
- --------------------------------------------------------------------------------
ENERGY (10.7%)
Burlington Resources, Inc. ............................... 108,000 4,576,500
Exxon Corp. .............................................. 74,000 4,190,250
Royal Dutch Petroleum Co. ................................ 27,300 4,920,825
------------
13,687,575
- --------------------------------------------------------------------------------
FINANCIAL SERVICES (12.5%)
EXEL Ltd.................................................. 81,000 3,159,000
Marsh & McLennan Cos., Inc................................ 43,100 5,193,550
MBIA, Inc................................................. 32,000 3,116,000
State Street Corp......................................... 57,000 4,488,750
------------
15,957,300
- --------------------------------------------------------------------------------
MANUFACTURING (3.8%)
Dana Corp. ............................................... 93,000 2,964,375
Pall Corp. ............................................... 85,000 1,965,625
------------
4,930,000
- --------------------------------------------------------------------------------
MULTI-INDUSTRY (3.0%)
National Service Industries, Inc. ........................ 12,000 505,500
Whitman Corp.............................................. 146,000 3,376,250
------------
3,881,750
- --------------------------------------------------------------------------------
OFFICE EQUIPMENT (10.1%)
International Business Machines Corp...................... 33,200 5,336,900
Pitney Bowes, Inc......................................... 57,000 3,648,000
Xerox Corp. .............................................. 65,000 3,997,500
------------
12,982,400
- --------------------------------------------------------------------------------
PAPER & PACKAGING (1.2%)
Sonoco Products Co........................................ 9,000 241,875
Union Camp Corp........................................... 25,900 1,259,388
------------
1,501,263
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.

3
<PAGE>

C & B EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
PHARMACEUTICALS (5.8%)
Bristol-Myers Squibb Co. ............................ 52,500 $ 3,438,750
Schering-Plough Corp................................. 50,300 4,024,000
------------
7,462,750
- -------------------------------------------------------------------------------
SERVICES (1.7%)
Service Corp. International.......................... 63,000 2,157,750
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $91,766,225)................ 116,991,613
- -------------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT
- -------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT (8.3%)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT (8.3%)
Chase Securities, Inc. 5.20%, dated 4/30/97, due
5/1/97, to be repurchased at $10,655,539,
collateralized by $10,714,997 of various
U.S. Treasury Notes, 4.75%-6.125% due from 8/31/98-
10/31/98,
valued at $10,662,560 (COST $10,654,000)............ $10,654,000 10,654,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (99.6%) (COST $102,420,225) (a)..... 127,645,613
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (0.4%)................... 469,829
- -------------------------------------------------------------------------------
NET ASSETS (100%)..................................... $128,115,442
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
+ See Note A to Financial Statements.
(a) The cost for federal income tax purposes was $102,420,225. At April 30,
1997, net unrealized appreciation for all securities based on tax cost was
$25,225,388. This consisted of aggregate gross unrealized appreciation for
all securities of $27,544,071 and aggregate gross unrealized depreciation
for all securities of $2,318,683.

The accompanying notes are an integral part of the financial statements.

4
<PAGE>

C & B EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1997 (Unaudited)

<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at Cost............................................. $102,420,225
============
Investments, at Value............................................ $127,645,613
Cash............................................................. 237
Receivable for Investments Sold.................................. 758,607
Dividends Receivable............................................. 156,244
Interest Receivable.............................................. 1,539
Other Assets..................................................... 1,275
- -------------------------------------------------------------------------------
Total Assets.................................................... 128,563,515
- -------------------------------------------------------------------------------
LIABILITIES
Payable for Investments Purchased................................ 325,619
Payable for Investment Advisory Fees--Note B..................... 60,747
Payable for Administrative Fees--Note C.......................... 18,898
Payable to Custodian--Note D..................................... 23,175
Payable for Directors' Fees--Note G.............................. 1,704
Other Liabilities................................................ 17,930
- -------------------------------------------------------------------------------
Total Liabilities............................................... 448,073
- -------------------------------------------------------------------------------
NET ASSETS........................................................ $128,115,442
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in Capital.................................................. $ 79,604,685
Undistributed Net Investment Income.............................. 172,394
Accumulated Net Realized Gain.................................... 23,112,975
Unrealized Appreciation.......................................... 25,225,388
- -------------------------------------------------------------------------------
NET ASSETS........................................................ $128,115,442
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
Shares Issued and Outstanding ($0.001 par value) (Authorized
25,000,000)..................................................... 8,960,255
Net Asset Value, Offering and Redemption Price Per Share......... $ 14.30
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

5
<PAGE>

C & B EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1997 (Unaudited)

<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Dividends..................................................... $ 1,301,915
Interest...................................................... 232,390
- --------------------------------------------------------------------------------
Total Income................................................. 1,534,305
- --------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees--Note B.............................. 414,963
Administrative Fees--Note C................................... 97,555
Custodian Fees--Note D........................................ 10,379
Audit Fees.................................................... 8,073
Registration and Filing Fees.................................. 7,234
Printing Fees................................................. 6,204
Insurance Expense............................................. 5,644
Legal Fees.................................................... 5,538
Directors' Fees--Note G....................................... 2,424
Other Expenses................................................ 5,508
- --------------------------------------------------------------------------------
Total Expenses............................................... 563,522
Expense Offset--Note A........................................ --
- --------------------------------------------------------------------------------
Net Expenses................................................. 563,522
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME.......................................... 970,783
- --------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS............................... 23,378,433
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION
ON INVESTMENTS................................................ (9,365,802)
- --------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS........................................ 14,012,631
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........... $14,983,414
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

6
<PAGE>

C & B EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED
1997 OCTOBER 31,
(UNAUDITED) 1996
- --------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Income.............................. $ 970,783 $ 4,139,389
Net Realized Gain.................................. 23,378,433 45,211,776
Net Change in Unrealized Appreciation/Depreciation. (9,365,802) (3,731,843)
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Opera-
tions............................................ 14,983,414 45,619,322
- --------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income.............................. (1,148,429) (4,276,922)
Net Realized Gain.................................. (39,513,464) (11,481,231)
- --------------------------------------------------------------------------------
Total Distributions............................... (40,661,893) (15,758,153)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (1)
Issued--Regular.................................... 19,739,173 16,594,738
--In Lieu of Cash Distributions............... 34,909,668 14,951,054
Redeemed........................................... (69,899,262) (138,175,569)
- --------------------------------------------------------------------------------
Net Decrease from Capital Share Transactions ..... (15,250,421) (106,629,777)
- --------------------------------------------------------------------------------
Total Decrease..................................... (40,928,900) (76,768,608)
Net Assets:
Beginning of Period................................ 169,044,342 245,812,950
- --------------------------------------------------------------------------------
End of Period (including undistributed net invest-
ment income
of $172,394 and $350,040, respectively)........... $128,115,442 $169,044,342
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(1)Shares Issued and Redeemed:
Shares Issued..................................... 1,351,422 987,019
In Lieu of Cash Distributions..................... 2,621,960 944,442
Shares Redeemed................................... (4,462,337) (8,159,088)
- --------------------------------------------------------------------------------
(488,955) (6,227,627)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

7
<PAGE>

C & B EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
SIX MONTHS
ENDED
APRIL 30, YEARS ENDED OCTOBER 31,
1997 ------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 17.89 $ 15.68 $ 13.13 $ 13.06 $ 13.29 $ 12.33
- -----------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income.. 0.12 0.36 0.34 0.31 0.28 0.29
Net Realized and
Unrealized Gain....... 1.42 2.94 2.55 0.28 0.24 1.02
- -----------------------------------------------------------------------------------------
Total From Investment
Operations........... 1.54 3.30 2.89 0.59 0.52 1.31
- -----------------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income.. (0.14) (0.35) (0.34) (0.30) (0.26) (0.30)
Net Realized Gain...... (4.99) (0.74) -- (0.18) (0.49) (0.05)
In Excess of Net Real-
ized Gain............. -- -- -- (0.04) -- --
- -----------------------------------------------------------------------------------------
Total Distributions... (5.13) (1.09) (0.34) (0.52) (0.75) (0.35)
- -----------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD................. $ 14.30 $ 17.89 $ 15.68 $ 13.13 $ 13.06 $ 13.29
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
TOTAL RETURN............ 10.84%** 21.99% 22.28% 4.67% 4.05% 10.68%
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL
DATA
Net Assets, End of Pe-
riod (Thousands)....... $128,115 $169,044 $245,813 $208,937 $209,153 $112,763
Ratio of Expenses to Av-
erage Net Assets....... 0.84%* 0.81% 0.79% 0.82% 0.82% 0.83%
Ratio of Net Investment
Income to Average Net
Assets................. 1.45%* 1.92% 2.35% 2.39% 2.28% 2.27%
Portfolio Turnover Rate. 18% 29% 42% 46% 21% 45%
Average Commission Rate
#...................... $ 0.0507 $ 0.0508 N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------
Ratio of Expenses to Av-
erage Net Assets In-
cluding Expense Off-
sets................... 0.84%* 0.80% 0.78% N/A N/A N/A
- -----------------------------------------------------------------------------------------
</TABLE>
*Annualized
**Not Annualized
# For fiscal years beginning on or after September 1, 1995, a portfolio is
required to disclose the average commission rate per share it paid for
portfolio trades on which commissions were charged.

The accompanying notes are an integral part of the financial statements.

8
<PAGE>

C & B EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

UAM Funds, Inc. and UAM Funds Trust (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The C & B
Equity Portfolio (the "Portfolio"), a portfolio of UAM Funds, Inc., is a
diversified, open-end management investment company. At April 30, 1997, the
UAM Funds were composed of forty-two active portfolios. The financial
statements of the remaining portfolios are presented separately. The objective
of the Portfolio is to provide maximum long-term total return with minimal
risk to principal by investing in common stocks which have a consistency and
predictability in their earnings growth.

1. SECURITY VALUATION: Securities listed on a securities exchange for which
market quotations are readily available are valued at the last quoted sales
price as of the close of the exchange on the day the valuation is made or,
if no sale occurred on such day, at the mean of the bid and asked prices.
Price information on listed securities is taken from the exchange where the
security is primarily traded. Over-the-counter and unlisted securities are
valued at the mean of the current bid and asked prices. Short-term
investments that have remaining 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 is determined in good faith at fair value using methods
determined by the Board of Directors.

9
<PAGE>

C & B EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

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 and in-kind transactions.

C. ADMINISTRATION SERVICES: UAM Fund Services, Inc. (the "Administrator"), a
wholly-owned subsidiary of UAM, provides and oversees administrative, fund
accounting, dividend disbursing and transfer agent services to the UAM Funds
under a Fund Administration Agreement (the "Agreement"). Pursuant to the
Agreement, the Administrator is entitled to receive annual fees, computed
daily and payable monthly, of 0.19% of the first $200 million of the combined
aggregate net assets; plus 0.11% of the next $800 million of the combined
aggregate net assets; plus 0.07% of the next $2 billion of the combined
aggregate net assets; plus 0.05% of the combined aggregate net assets in
excess of $3 billion. The fees are allocated among the portfolios of the UAM
Funds on the basis of their relative net assets and are subject to a graduated
minimum fee schedule per portfolio which rises from $2,000 per month, upon
inception of a portfolio, to $70,000 annually after two years. For portfolios
with more than one class of shares, the minimum annual fee increases to
$90,000. In addition, the Administrator receives a Portfolio-specific monthly
fee of 0.04% of average daily net assets of the Portfolio. The Administrator
has entered into a Mutual Funds Service Agreement with Chase Global Funds
Services Company ("CGFSC"), an affiliate of The Chase Manhattan Bank, under
which CGFSC agrees to provide certain services, including but not limited to,
administration, fund accounting, dividend disbursing and transfer agent
services. Pursuant to the Mutual Funds Service Agreement, the Administrator
pays CGFSC a monthly fee. For the six months ended April 30, 1997, UAM Fund
Services, Inc. earned $97,555 from the Portfolio as Administrator of which
$70,698 was paid to CGFSC for its services as sub-Administrator.

10
<PAGE>

C & B EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

D. CUSTODIAN: The Chase Manhattan Bank, an affiliate of CGFSC, is custodian
for the Portfolio's assets held in accordance with the custodian agreement.

G. DIRECTORS' FEES: Each Director, who is not an officer or affiliated person,
receives $2,000 per meeting attended, 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, and reimbursement of expenses incurred in
attending Board meetings.

H. PURCHASES AND SALES: For the six months ended April 30, 1997, the Portfolio
made purchases of $23,220,862 and sales of $80,741,180 of investment
securities other than long-term U.S. Government and short-term securities.
There were no purchases or sales of long-term U.S. Government securities.

I. LINE OF CREDIT: The Portfolio, along with certain other portfolios of the
UAM Funds, collectively entered into an agreement which enables them to
participate in a $100 million unsecured line of credit with several banks.
Borrowings will be made solely to temporarily finance the repurchase of
Capital shares. Interest is charged to each participating portfolio based on
its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%.
In addition, a commitment fee of 1/8th of 1% per annum, payable at the end of
each calendar quarter, is accrued by each participating portfolio based on its
average daily unused portion of the line of credit. During the six months
ended April 30, 1997, the Portfolio had no borrowings under the agreement.

J. OTHER: At April 30, 1997, 23.9% of total shares outstanding were held by
two record shareholders owning 10% or greater of the aggregate total shares
outstanding.

11
<PAGE>

- -------------------------------------------------------------------------------

UAM FUNDS
C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS

- -------------------------------------------------------------------------------

OFFICERS AND DIRECTORS

Norton H. Reamer William H. Park
Director, President and Chairman Vice President

John T. Bennett, Jr. Michael E. DeFao
Director Secretary

Philip D. English Karl O. Hartmann
Director Assistant Secretary

William A. Humenuk Gary L. French
Director Treasurer

Peter M. Whitman, Jr. Robert R. Flaherty
Director Assistant Treasurer

Gordon M. Shone
Assistant Treasurer

- -------------------------------------------------------------------------------

INVESTMENT ADVISER
Cooke & Bieler, Inc.
1700 Market Street
Philadelphia, PA 19103

- -------------------------------------------------------------------------------

ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street
Boston, MA 02110

- -------------------------------------------------------------------------------

CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, NY 11245

- -------------------------------------------------------------------------------

LEGAL COUNSEL
Stradley, Ronon, Stevens & Young LLP
2600 One Commerce Square
Philadelphia, PA 19103

- -------------------------------------------------------------------------------

INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
Boston, MA 02110

- -------------------------------------------------------------------------------

DISTRIBUTOR
UAM Fund Distributors, Inc.
211 Congress Street
Boston, MA 02110

- -------------------------------------------------------------------------------

This report has been prepared for shareholders and may be distributed to
others only if preceded or accompanied by a current prospectus.

- -------------------------------------------------------------------------------

[LOGO OF UAM FUNDS APPEARS HERE]

C & B EQUITY
PORTFOLIO
FOR TAXABLE
INVESTORS

- -------------------------------------------------------------------------------

SEMI-ANNUAL REPORT
APRIL 30, 1997
<PAGE>

Dear Shareholder:

The following report provides a detailed description of the securities held
and statement of operations for the Cooke & Bieler Equity Portfolio for
Taxable Investors for the interim period from February 12, 1997 (inception) to
April 30, 1997.

For this interim period, the Cooke & Bieler Equity Portfolio for Taxable
Investors underperformed its benchmark index, the S&P 500 Index. Over this
shortened, initial period, the Cooke & Bieler Equity Portfolio for Taxable
Investors declined by 0.39% versus the S&P 500 which rose 2.42%. Due to the
start-up nature of the Portfolio and the "ramping up" of equity investment in
the early months, it makes comparisons at this point difficult and sometimes
misleading.

As of April 30, 1997, common stocks represented approximately 85% of the
Portfolio and cash reserves were approximately 15%.

Cooke & Bieler is employing an investment process designed to help produce
above average long-term results, with particularly strong relative results in
flat and down markets. The strong fundamental characteristics of companies
held in the Cooke & Bieler Equity Portfolio for Taxable Investors should
provide this downside protection. These high quality characteristics, as
compared to the S&P 500, include (1) balance sheet strength measured by a
relatively low debt to capital ratio, (2) high levels of return on equity and
return on capital, (3) consistent growth in earnings and dividends, and (4)
use of excess cash flow to repurchase stock.

Sincerely,

/s/ Peter A. Thompson

Peter A. Thompson

DEFINITION OF THE COMPARATIVE INDEX
-----------------------------------

The S&P 500 Index is an unmanaged index composed of 400 industrial, 40
financial, 40 utilities and 20 transportation stocks.

Comparisons of performance assume reinvestment of dividends.

Please note that one cannot invest in an unmanaged index.

The investment results presented in the Adviser's letter represent past
performance and should not be construed as a guarantee of future results.
Without the Adviser's temporary fee waiver (also expenses assumed by the
Adviser), total return for the Portfolio would have been lower. 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.

1
<PAGE>

C & B EQUITY PORTFOLIO FOR TAXABLE INVESTORS
PORTFOLIO OF INVESTMENTS
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (84.5%)
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE (2.5%)
Raytheon Co. .................................................. 300 $ 13,087
- --------------------------------------------------------------------------------
AUTOMOTIVE (3.6%)
Genuine Parts Co............................................... 600 19,425
- --------------------------------------------------------------------------------
BROADCASTING & PUBLISHING (1.7%)
Readers Digest Association, Inc., Class A (Non-Voting)......... 400 9,200
- --------------------------------------------------------------------------------
CAPITAL EQUIPMENT (5.2%)
Dover Corp. ................................................... 300 15,900
General Signal Corp............................................ 300 11,775
--------
27,675
- --------------------------------------------------------------------------------
CHEMICALS (5.8%)
Eastman Chemical Co............................................ 300 15,300
Hercules, Inc. ................................................ 400 15,750
--------
31,050
- --------------------------------------------------------------------------------
CONSTRUCTION (3.1%)
Fluor Corp. ................................................... 300 16,500
- --------------------------------------------------------------------------------
CONSUMER DURABLES (3.1%)
Rubbermaid, Inc. .............................................. 700 16,800
- --------------------------------------------------------------------------------
CONSUMER NON-DURABLES (6.0%)
Hasbro, Inc.................................................... 600 15,000
International Flavors & Fragrances, Inc. ...................... 400 16,850
--------
31,850
- --------------------------------------------------------------------------------
ELECTRONICS (8.8%)
AMP, Inc. ..................................................... 400 14,350
Grainger (W.W.), Inc. ......................................... 200 15,075
Motorola, Inc.................................................. 300 17,175
--------
46,600
- --------------------------------------------------------------------------------
ENERGY (6.4%)
Burlington Resources, Inc. .................................... 400 16,950
Exxon Corp. ................................................... 300 16,988
--------
33,938
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

2
<PAGE>

C & B EQUITY PORTFOLIO FOR TAXABLE INVESTORS
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

The accompanying notes are an integral part of the financial statements.

3
<PAGE>

C & B EQUITY PORTFOLIO FOR TAXABLE INVESTORS
PORTFOLIO OF INVESTMENTS--(CONTINUED)
April 30, 1997 (Unaudited)

<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT (19.0%)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT (19.0%)
Chase Securities, Inc. 5.20%, dated 4/30/97, due 5/1/97, to
be repurchased at $101,015, collateralized by $101,578 of
various U.S. Treasury Notes,
4.75%-6.125% due from 8/31/98-10/31/98, valued at $101,081
(COST $101,000)........................................... $101,000 $101,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (103.5%) (COST $554,280) (a).............. 551,163
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-3.5%)........................ (18,884)
- -------------------------------------------------------------------------------
NET ASSETS (100%)........................................... $532,279
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
+ See Note A to Financial Statements.
(a) The cost for federal income tax purposes was $554,280. At April 30, 1997,
net unrealized depreciation for all securities based on tax cost was
$3,117. This consisted of aggregate gross unrealized appreciation for all
securities of $17,453 and aggregate gross unrealized depreciation for all
securities of $20,570.

The accompanying notes are an integral part of the financial statements.

4
<PAGE>

C & B EQUITY PORTFOLIO FOR TAXABLE INVESTORS
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1997 (Unaudited)

<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at Cost................................................ $554,280
========
Investments, at Value (including Repurchase Agreement of $101,000).. $551,163
Cash................................................................ 11,296
Receivable due from Investment Adviser--Note B...................... 6,782
Dividends Receivable................................................ 530
Interest Receivable................................................. 14
- -------------------------------------------------------------------------------
Total Assets....................................................... 569,785
- -------------------------------------------------------------------------------
LIABILITIES
Payable for Investments Purchased................................... 17,565
Payable for Administrative Fees--Note C............................. 4,589
Payable for Custodian Fees--Note D.................................. 1,734
Payable for Directors' Fees--Note G................................. 611
Other Liabilities................................................... 13,007
- -------------------------------------------------------------------------------
Total Liabilities.................................................. 37,506
- -------------------------------------------------------------------------------
NET ASSETS........................................................... $532,279
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in Capital..................................................... $534,297
Undistributed Net Investment Income................................. 1,279
Accumulated Net Realized Loss....................................... (180)
Unrealized Depreciation............................................. (3,117)
- -------------------------------------------------------------------------------
NET ASSETS........................................................... $532,279
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
Shares Issued and Outstanding ($0.001 par value) (Authorized
25,000,000)........................................................ 53,578
Net Asset Value, Offering and Redemption Price Per Share............ $ 9.93
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

5
<PAGE>

C & B EQUITY PORTFOLIO FOR TAXABLE INVESTORS
STATEMENT OF OPERATIONS
For the Period from February 12, 1997* to April 30, 1997 (Unaudited)

<TABLE>
- ---------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends...................................................... $ 1,472
Interest....................................................... 2,326
- ---------------------------------------------------------------------------------
Total Income.................................................. 3,798
- ---------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees--Note B...............................
Basic Fees.................................................... $ 606
Less: Fees Waived............................................. (606) --
-----
Administrative Fees--Note C.................................... 8,612
Registration and Filing Fees................................... 5,867
Custodian Fees--Note D......................................... 1,734
Audit Fees..................................................... 4,465
Printing Fees.................................................. 4,126
Directors' Fees--Note G........................................ 611
Legal Fees..................................................... 376
Other Expenses................................................. 298
Expenses Assumed by the Adviser--Note B........................ (25,093)
- ---------------------------------------------------------------------------------
Total Expenses................................................ 996
Expense Offset--Note A......................................... --
- ---------------------------------------------------------------------------------
Net Expenses.................................................. 996
- ---------------------------------------------------------------------------------
NET INVESTMENT INCOME........................................... 2,802
- ---------------------------------------------------------------------------------
NET REALIZED LOSS ON INVESTMENTS................................ (180)
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON INVEST-
MENTS.......................................................... (3,117)
- ---------------------------------------------------------------------------------
NET LOSS ON INVESTMENTS......................................... (3,297)
- ---------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS............ $ (495)
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations

The accompanying notes are an integral part of the financial statements.

6
<PAGE>

C & B EQUITY PORTFOLIO FOR TAXABLE INVESTORS
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FEBRUARY 12,
1997* TO
APRIL 30,
1997
(UNAUDITED)
- ---------------------------------------------------------------------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Income.............................................. $ 2,802
Net Realized Loss.................................................. (180)
Net Change in Unrealized Appreciation/Depreciation................. (3,117)
- ---------------------------------------------------------------------------------
Net Decrease in Net Assets Resulting from Operations.............. (495)
- ---------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income.............................................. (1,523)
- ---------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (1)
Issued--Regular.................................................... 544,887
--In Lieu of Cash Distributions............................... 864
Redeemed........................................................... (11,454)
- ---------------------------------------------------------------------------------
Net Increase from Capital Share Transactions ..................... 534,297
- ---------------------------------------------------------------------------------
Total Increase..................................................... 532,279
Net Assets:
Beginning of Period................................................ --
- ---------------------------------------------------------------------------------
End of Period (including undistributed net investment income
of $1,279)........................................................ $532,279
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
(1)Shares Issued and Redeemed:
Shares Issued..................................................... 54,657
In Lieu of Cash Distributions..................................... 89
Shares Redeemed................................................... (1,168)
- ---------------------------------------------------------------------------------
53,578
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations

The accompanying notes are an integral part of the financial statements.

7
<PAGE>

C & B EQUITY PORTFOLIO FOR TAXABLE INVESTORS
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD

<TABLE>
<CAPTION>
FEBRUARY 12,
1997*** TO
APRIL 30,
1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............................. $ 10.00
- --------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income............................................ 0.05
Net Realized and Unrealized Loss................................. (0.09)
- --------------------------------------------------------------------------------
Total From Investment Operations................................ (0.04)
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income............................................ (0.03)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.................................... $ 9.93
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL RETURN+**................................................... (0.39)%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (Thousands)............................. $ 532
Ratio of Expenses to Average Net Assets........................... 1.00%*
Ratio of Net Investment Income to Average Net Assets.............. 2.81%*
Portfolio Turnover Rate........................................... 3%
Average Commission Rate........................................... $0.0504
- --------------------------------------------------------------------------------
Voluntarily Waived Fees and Expenses Assumed by the Adviser Per
Share............................................................ $ 0.49
Ratio of Expenses to Average Net Assets Including Expense Offsets. 1.00%*
- --------------------------------------------------------------------------------
</TABLE>
* Annualized
** Not Annualized
*** Commencement of Operations
+ Total return would have been lower had certain fees not been waived and
assumed during the period.

The accompanying notes are an integral part of the financial statements.

8
<PAGE>

C & B EQUITY PORTFOLIO FOR TAXABLE INVESTORS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

UAM Funds, Inc. and UAM Funds Trust (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The C & B
Equity Portfolio for Taxable Investors (the "Portfolio"), a portfolio of UAM
Funds, Inc., is a diversified, open-end management investment company. At
April 30, 1997, the UAM Funds were composed of forty-two active portfolios.
The financial statements of the remaining portfolios are presented separately.
The objective of the Portfolio is to provide maximum long-term, after-tax
total return consistent with minimizing risk to principal by investing in
common stocks which have a consistency and predictability in their earnings
growth.

9
<PAGE>

C & B EQUITY PORTFOLIO FOR TAXABLE INVESTORS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

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 and in-kind transactions.

C. ADMINISTRATION SERVICES: UAM Fund Services, Inc. (the "Administrator"), a
wholly-owned subsidiary of UAM, provides and oversees administrative, fund
accounting, dividend disbursing and transfer agent services to the UAM Funds
under a Fund Administration Agreement (the "Agreement"). Pursuant to the
Agreement, the Administrator is entitled to receive annual fees, computed
daily and payable monthly, of 0.19% of the first $200 million of the combined
aggregate net assets; plus 0.11% of the next $800 million of the combined
aggregate net assets; plus 0.07% of the next $2 billion of the combined
aggregate net assets; plus 0.05% of the combined aggregate net assets in
excess of $3 billion. The fees are allocated among the portfolios of the UAM
Funds on the basis of their relative net assets and are subject to a graduated
minimum fee schedule per portfolio which rises from $2,000 per month, upon
inception of a portfolio, to $70,000 annually after two years. For portfolios
with more than one class of shares, the minimum annual fee increases to
$90,000. In addition, the Administrator receives a Portfolio-specific monthly
fee of 0.04% of average daily net assets of the Portfolio. The Administrator
has entered into a Mutual Funds Service Agreement with Chase Global Funds
Services Company ("CGFSC"), an affiliate of The Chase Manhattan Bank, under
which CGFSC agrees to provide certain services, including but not limited to,
administration, fund accounting, dividend disbursing and transfer agent
services. Pursuant to the Mutual Funds Service Agreement, the Administrator
pays CGFSC a monthly fee. For the period from February 12, 1997, to April 30,
1997, UAM Fund Services, Inc. earned $8,612 from the Portfolio as
Administrator of which $8,573 was paid to CGFSC for its services as sub-
Administrator.

10
<PAGE>

C & B EQUITY PORTFOLIO FOR TAXABLE INVESTORS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

D. CUSTODIAN: The Chase Manhattan Bank, an affiliate of CGFSC, is custodian
for the Portfolio's assets held in accordance with the custodian agreement.

G. DIRECTORS' FEES: Each Director, who is not an officer or affiliated person,
receives $2,000 per meeting attended, 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, and reimbursement of expenses incurred in
attending Board meetings.

H. PURCHASERS AND SALES: For the period ended April 30, 1997, the Portfolio
made purchases of $460,488 and sales of $7,029 of investment securities other
than long-term U.S. Government and short-term securities. There were no
purchases or sales of long-term U.S. Government securities.

I. OTHER: At April 30, 1997, 80.5% of total shares outstanding were held by
three record shareholders owning 10% or greater of the aggregate total shares
outstanding.

11
<PAGE>

- -------------------------------------------------------------------------------

UAM FUNDS
DSI PORTFOLIOS

- -------------------------------------------------------------------------------

OFFICERS AND DIRECTORS

- -------------------------------------------------------------------------------

INVESTMENT ADVISER
Dewey Square Investors Corporation
One Financial Center Boston, MA 02111

- -------------------------------------------------------------------------------

ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street Boston, MA 02110