<PAGE>
Rice, Hall, James Portfolios
Semi-Annual Report April 30, 1999
[LOGO OF UAM FUNDS APPEARS HERE]
<PAGE>
UAM FUNDS THE RHJ PORTFOLIOS
APRIL 30, 1999
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Shareholders' Letter........................................................ 1
Portfolio of Investments
Small Cap................................................................. 5
Small/MidCap.............................................................. 9
Statement of Assets and Liabilities......................................... 12
Statement of Operations..................................................... 13
Statement of Changes in Net Assets
Small Cap................................................................. 14
Small/MidCap.............................................................. 15
Financial Highlights
Small Cap................................................................. 16
Small/MidCap.............................................................. 17
Notes to Financial Statements............................................... 18
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
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April 30, 1999
Dear Shareholders:
Rice, Hall, James Small/Mid Cap Portfolio
The performance of the UAM Rice, Hall, James Small/Mid Cap Portfolio as of
April 30, 1999 is presented below. Two indices are provided for comparative
purposes, the S&P 500 Index and a custom index created by averaging the re-
turns of the Russell 2000 and the Russell Mid-Cap Indices. This 50/50 Blended
Russell Index is the appropriate benchmark for the RHJ Small/Mid Cap Portfo-
lio. Returns are shown for the most recent quarter, fiscal year-to-date and
inception to date.
<TABLE>
<CAPTION>
Fiscal Inception Average
Quarter Year to to Date Annual
Ended Date 11/1/96 to 11/1/96 to
4/30/99 4/30/99 4/30/99 4/30/99
------- ------- ---------- ----------
<S> <C> <C> <C> <C>
RHJ Small/Mid Cap Portfolio............... -4.01% 7.20% 40.42% 14.57%
50/50 Blended Russell Index............... 4.39% 16.88% 45.36% 16.14%
S&P 500 Index............................. 4.67% 22.27% 97.14% 31.19%
</TABLE>
The Rice Hall James Small/Mid Portfolio was down 4.01% for the quarter ended
April 30, 1999, but up 7.20% for the fiscal year-to-date period. For the quar-
ter and the six months the Portfolio has significantly under-performed both
the benchmark index and the S&P 500. The shortfall in the last three months
has led to the Portfolio's now sub-par return from inception-to-date.
This was a tough quarter, the toughest for Rice, Hall, James in eight years.
RHJ uses a GARP (growth at a reasonable price) strategy, investing only in
those stocks where the price/earnings ratio (P/Es) are less than the projected
three year earnings growth rates. Value and GARP investment styles trailed the
pack last quarter. Screening the Russell 2500 Index (an index of small and mid
cap stocks) by P/Es to growth rates, we found that the average performance of
those 1,042 stocks with P/Es less than 1x the growth rate at year end 1998 was
a -7.9% in the first calendar quarter. Momentum was the place to be.
Having said that, the Portfolio's -14.7% first calendar quarter return still
fell far short of the performance of the above mentioned universe. Healthcare,
over-weighted at 18% of the Portfolio, and technology, under-weighted at 7%,
had poor performance relative to the benchmark. Beyond that a handful of
stocks had particularly problematic performance. The Portfolio's only other
sector concentrations were in services (13%), consumer non-durables (13%) and
retail (11%). No other sector accounted for more than 10% of the Portfolio.
1
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UAM FUNDS RHJ PORTFOLIOS
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The UAM RHJ Small/Mid Cap Portfolio is designed to replicate the Rice, Hall,
James core equity style in which the overwhelming majority of RHJ separate ac-
counts have been successfully managed for many years. The market value of the
Small/Mid Cap Portfolio was $22.6 million as of April 30, 1999. Capital appre-
ciation is the portfolio objective, dividend yield is not a consideration in
equity selection and no derivative investments are used.
It is not unusual to have a couple sectors and/or a few stocks with lagging
performance in any given quarter. What is unusual is to have so few strong
performing issues to offset the damage. Our investment style was out of favor
and our stock picking was well below our long-term experience. This was a
quarter for Rice, Hall, James that defines the tail end of the normal distri-
bution curve.
Rice Hall James Small Cap Portfolio
The performance of the UAM Rice Hall James Small Cap Portfolio as of April 30,
1999 is presented below:
<TABLE>
<CAPTION>
Inception Average
Fiscal to Date Annual
Quarter Year to 7/01/94 7/01/94
Ended Date to to
4/30/99 4/30/99 4/30/99 4/30/99
------- ------- --------- -------
<S> <C> <C> <C> <C>
RHJ Small Cap Portfolio....................... -1.66% 14.54% 126.04% 18.37%
Russell 2000 Index............................ 1.70% 15.17% 93.02% 14.58%
S&P 500 Index................................. 4.67% 22.27% 231.57% 28.15%
Value Line Composite Index.................... 3.33% 9.08% 62.05% 10.50%
</TABLE>
The latest three and six month periods have been disappointing for the Portfo-
lio. While the fiscal year-to-date return of 14.54% is impressive in an abso-
lute sense, this return fell short of the Russell 2000 Index return of 15.17%
for the same period. Inception-to-date performance is very good as the Portfo-
lio return exceeded that of the Russell 2000 by 33%.
In the nearly five years since this Portfolio started, small cap has not been
the place to be. The compound average annual rate of return over the last 4
year 10 month period has been 28.15% for the S&P 500 Index (large caps) and
only 14.58% for the Russell 2000 Index (small caps). This has been an extraor-
dinarily unusual period in the financial markets.
The market value of the Portfolio on April 30, 1999 was $42.8 million. The
Portfolio had high concentrations in three sectors; technology (14%), services
(18%) and consumer related (collectively nondurable goods, durable goods and
retail) (22%). No other broad sector within the Portfolio exceeded a 10% port-
folio weight.
2
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
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Sector weightings do not drive our fundamentally based stock selection process
and we do not expect any dramatic changes in sector exposures this quarter.
Maximum capital appreciation is the primary objective of the Portfolio, cur-
rent income generation is not a consideration and volatility and turnover may
be high. No derivative investments are used.
While we do very little top down work, none in our stock selection process,
the economy looks healthy. Consumer demand, fueled partly by greater tax re-
funds this year than last, remains strong and inflation remains modest. The
Fed looks like it is adopting a tighter stance and the rise in bond rates last
quarter certainly spooked some interest sensitive issues, but no increase in
rates by the Fed as of yet.
Corporate earnings estimates are still "back end loaded." The first half esti-
mates for the S&P 500 are roughly 6%, while the second half estimates are up
10-12% over year ago depressed numbers. This can also be seen in small and mid
cap company estimates. In addition, S&P 500 (large cap) earnings have deceler-
ated from what was a 5 year compound annual growth rate of 16% at the end of
1995 to a down 1% year last year and a 3 year earnings forecast of 6-8%. Large
cap P/Es rising as they have against a backdrop of deteriorating earnings is a
red flag. There is little room for error in the S&P 500 with a P/E of 28x 1999
estimates and a 7% expected earnings growth rate. Of course, if large cap
stocks take a hit, small and mid cap stocks generally fall with them.
Outlook
Long term, the rules of the game have not changed. When a stock is purchased,
investors are buying a stream of income. What they pay is based on the abso-
lute amount of that income stream, its expected growth and its consistency.
Small and mid cap stocks are trading at 1x their projected 18-20% growth rate;
one-fourth the valuation of large caps. The reward to risk in the Rice, Hall,
James Small/Mid and Small Cap Portfolios appears to us superior to that found
in the S&P 500.
There are a great number of good quality, attractive ideas in the small and
mid cap sectors where valuations have not reached the historically high levels
of the big caps and we will continue to construct what we think is the most
attractive portfolio of these names. Our area of focus will continue to be on
fundamentally strong growth companies with market capitalizations between $300
million and $2.5 billion for the Small/Mid Cap Portfolio and capitalizations
between $40 million and $500 million in the Small Cap Portfolio. We will not
try to time the market, but instead will remain fully invested in the most at-
tractively priced small and mid
3
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- -------------------------------------------------------------------------------
capitalization growth stocks where positive change is present, regardless of
the industry or sector represented.
Sincerely,
Rice, Hall, James & Associates
The investment results presented in the Adviser's letter represent past
performance and should not be construed as a guarantee of future results. A
Portfolio's performance assumes the reinvestment of all dividends and
distributions.
There are no assurances that a Portfolio will meet its stated objectives.
The investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost.
A Portfolio's holdings are subject to change because it is actively managed.
Portfolio changes should not be considered recommendations for action by
individual investors.
Definition of the Comparative Indices
Russell 2000 Index is an unmanaged index composed of the 2,000 smallest stocks
in the Russell 3000 Index.
Russell 2500 Index is an unmanaged index composed of the 2,500 smallest stocks
in the Russell 3000 Index.
Russell Mid-Cap Index is composed of the 800 smallest stocks in the Russell
1000 Index, with an average capitalization of $1.96 billion.
S&P 500 Index is an unmanaged index composed of 400 industrial stocks, 40 fi-
nancial stocks, 40 utility stocks and 20 transportation stocks.
Value Line Composite Index is composed of over 1,600 stocks in the Value Line
Investment Survey.
The comparative indices assume reinvestment of dividends, unlike a Portfolio's
returns, do not reflect any fees or expenses. If such fees were reflected in
the comparative indices' returns, the performance would have been lower.
Please note that one cannot invest directly in an unmanaged index.
4
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 93.8%
Shares Value+
-------- -----------
<S> <C> <C>
BANKS - 6.2%
*AmeriCredit Corp....................................... 30,000 $ 496,875
BancFirst Corp.......................................... 20,000 710,000
TriCo Bancshares........................................ 40,000 680,000
*Willis Lease Finance Corp.............................. 50,000 771,875
-----------
2,658,750
-----------
BASIC INDUSTRIES - 2.9%
*Holophane Corp. ....................................... 20,000 516,250
*Northwest Pipe Co. .................................... 30,000 420,000
*Thermo Sentron, Inc.................................... 30,000 307,500
-----------
1,243,750
-----------
CONSTRUCTION - 2.4%
*IONICS, Inc............................................ 30,000 1,023,750
-----------
CONSUMER DURABLES - 3.0%
Cavalier Homes, Inc..................................... 135,000 1,274,063
-----------
CONSUMER NON-DURABLES - 14.6%
*Craig Corp............................................. 30,000 221,250
*Eidos plc ADR.......................................... 20,000 752,500
*Home Products International, Inc. ..................... 70,000 595,000
*O'Charleys, Inc........................................ 80,000 1,115,000
*RARE Hospitality International, Inc.................... 75,000 1,340,625
*Schlotzsky, Inc. ...................................... 75,000 853,125
*The 3DO Co. ........................................... 110,000 715,000
The First Years, Inc. .................................. 42,500 645,469
-----------
6,237,969
-----------
ENERGY RELATED - 6.2%
*Superior Energy Services, Inc.......................... 280,000 1,400,000
*Unit Corp.............................................. 185,000 1,248,750
-----------
2,648,750
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS - continued
Shares Value+
-------- -----------
<S> <C> <C>
HEALTH CARE - 9.2%
*Andrx Corp. ........................................... 16,000 $ 1,260,000
*Cygnus, Inc. .......................................... 50,000 450,000
*IGEN International, Inc. .............................. 25,000 628,125
*LifeCell Corp.......................................... 50,000 206,250
*National Research Corp. ............................... 40,000 90,000
*Nitinol Medical Technologies .......................... 55,000 137,500
*PAREXEL International Corp............................. 20,000 478,750
*ResMed, Inc............................................ 25,000 660,937
-----------
3,911,562
-----------
INSURANCE - 2.9%
Argonaut Group, Inc..................................... 16,500 412,500
*Superior National Insurance Group, Inc................. 45,000 832,500
-----------
1,245,000
-----------
RETAIL - 3.8%
*Elder-Beerman Stores Corp.............................. 70,000 590,625
*Stein Mart, Inc........................................ 50,000 500,000
*Tropical Sportswear International Corp. ............... 25,000 548,438
-----------
1,639,063
-----------
SERVICES - 18.2%
*Butler International, Inc. ............................ 30,000 570,000
*Daisytek International Corp............................ 44,000 726,000
*e4L, Inc............................................... 65,000 483,437
*Extended Systems, Inc. ................................ 150,000 675,000
*F.Y.I., Inc............................................ 25,000 775,000
*FirstService Corp...................................... 15,000 215,625
*Group Maintenance America Corp. ....................... 65,000 869,375
*Hoenig Group, Inc. .................................... 80,000 740,000
*Mac-Gray Corp. ........................................ 45,000 351,563
*Metro Information Services, Inc. ...................... 30,000 646,875
*Quest Education Corp................................... 90,000 765,000
*ResortQuest International, Inc......................... 30,000 502,500
*Service Experts, Inc. ................................. 30,000 485,625
-----------
7,806,000
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS - continued
Shares Value+
------- ----------
<S> <C> <C>
TECHNOLOGY - 14.1%
*Datastream Systems, Inc.................................. 90,000 $ 759,375
*Deltek Systems, Inc...................................... 45,000 382,500
*FEI Co. ................................................. 30,000 225,000
*JDA Software Group, Inc.................................. 120,000 952,500
Newport Corp. ............................................ 35,000 433,125
*Marshall Industries...................................... 50,000 806,250
*Pomeroy Computer Resources, Inc.......................... 40,000 565,000
*Sapiens International Corp. N.V. ........................ 60,000 600,000
*Symmetricom, Inc......................................... 60,000 420,000
*Viagrafix Corp........................................... 144,000 900,000
----------
6,043,750
----------
TELECOMMUNICATIONS - 7.4%
*Alpha Industries, Inc.................................... 15,000 528,750
*Datum, Inc. ............................................. 140,000 962,500
*Microwave Power Devices, Inc............................. 50,000 631,250
*P-COM, Inc. ............................................. 50,000 292,187
*Premisys Communications, Inc. ........................... 90,000 765,000
----------
3,179,687
----------
TRANSPORTATION - 1.4%
*Hub Group, Inc. ......................................... 25,000 568,750
*Jevic Transportation, Inc. .............................. 5,000 42,500
----------
611,250
----------
UTILITIES - 1.5%
*Independent Energy Holdings plc ADR...................... 60,000 641,250
----------
TOTAL COMMON STOCKS (Cost $38,305,473).................... 40,164,594
----------
PREFERRED STOCKS - 0.7%
CONSUMER NON-DURABLES - 0.7%
*Craig Corp. (Cost $316,309).............................. 40,000 282,500
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENT - 5.4%
Face
Amount Value+
---------- -----------
<S> <C> <C>
REPURCHASE AGREEMENT - 5.4%
Chase Securities, Inc. 4.87%, dated 04/30/99, due
05/03/99, to be repurchased at $2,311,938,
collateralized by $2,137,196 of various U.S.
Treasury Notes, 5.50%-7.00%, due 5/15/06-5/15/08,
valued at $2,312,218 (Cost $2,311,000).............. $2,311,000 $ 2,311,000
-----------
Total Investments - 99.9% (Cost $40,932,782) (a)..... 42,758,094
-----------
OTHER ASSETS AND LIABILITIES (NET) - 0.1%............ 62,346
-----------
NET ASSETS - 100%.................................... $42,820,440
===========
</TABLE>
+ See Note A to Financial Statements.
* Non-Income Producing Security
ADR American Depositary Reciept
(a) The cost for federal income tax purposes was $40,932,782. At April 30,
1999, net unrealized appreciation for all securities based on tax cost was
$1,825,312. This consisted of aggregate gross unrealized appreciation for
all securities of $6,225,735 and aggregate gross unrealized depreciation
for all securities of $4,400,423.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 94.0%
Shares Value+
------- ----------
<S> <C> <C>
BANKS - 5.3%
Metris Companies, Inc..................................... 8,300 $ 507,338
Peoples Heritage Financial Group, Inc..................... 34,700 672,312
----------
1,179,650
----------
BASIC INDUSTRIES - 7.7%
Dexter Corp............................................... 18,000 739,125
OM Group, Inc............................................. 17,000 618,375
*SPX Corp................................................. 5,459 356,541
----------
1,714,041
----------
CONSTRUCTION - 4.1%
*IONICS, Inc.............................................. 15,700 535,763
*Jacobs Engineering Group, Inc............................ 9,500 374,656
----------
910,419
----------
CONSUMER DURABLES - 4.1%
Clayton Homes, Inc........................................ 30,125 335,141
International Game Technology............................. 32,400 575,100
----------
910,241
----------
CONSUMER NON-DURABLES - 12.8%
CBRL Group, Inc........................................... 34,600 698,487
*Cheesecake Factory, Inc. (The)........................... 28,100 786,800
*Suiza Foods Corp......................................... 17,600 661,100
*Valassis Communications, Inc............................. 12,900 722,400
----------
2,868,787
----------
HEALTH CARE - 17.5%
*Alternative Living Services, Inc......................... 21,300 473,925
*Alza Corp................................................ 13,200 443,025
*Henry Schein, Inc........................................ 22,500 589,219
*IDEXX Laboratories, Inc.................................. 20,100 454,762
*Shire Pharmaceuticals Group plc ADR...................... 19,500 419,250
Teva Pharmaceutical Industries Ltd. ADR................... 17,000 775,625
*Universal Health Services, Inc., Class B................. 14,800 766,825
----------
3,922,631
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS - continued
Shares Value+
------ -----------
<S> <C> <C>
INSURANCE - 3.5%
LandAmerica Financial Group, Inc. ........................ 12,000 $ 336,000
Mutual Risk Management Ltd. .............................. 11,500 447,063
-----------
783,063
-----------
MISCELLANEOUS - 2.0%
Standard Register Co. .................................... 15,000 457,500
-----------
NATURAL RESOURCES - 1.7%
Minerals Technologies, Inc. .............................. 6,900 372,600
-----------
RETAIL - 10.6%
Kellwood Co. ............................................. 24,000 618,000
Pep Boys-Manny, Moe & Jack................................ 35,200 503,800
*PETsMART, Inc. .......................................... 59,000 545,750
*Zale Corp. .............................................. 18,800 710,875
-----------
2,378,425
-----------
SERVICES - 13.0%
*HA-LO Industries, Inc. .................................. 24,000 282,000
Nielsen Media Research, Inc. ............................. 20,700 566,663
R. H. Donnelly Corp. ..................................... 31,600 521,400
*Rental Service Corp. .................................... 34,400 776,150
Stewart Enterprises, Inc., Class A........................ 38,700 759,487
-----------
2,905,700
-----------
TECHNOLOGY - 6.7%
*Check Point Software Technologies Ltd. .................. 10,500 367,500
*Hyperion Solutions Corp. ................................ 22,200 335,775
MacDermid, Inc. .......................................... 8,800 369,050
*Network Appliance, Inc. ................................. 8,600 432,687
-----------
1,505,012
-----------
TELECOMMUNICATIONS - 1.5%
Comsat Corp. ............................................. 10,000 325,000
-----------
TRANSPORTATION - 3.5%
*Dura Automotive Systems, Inc. ........................... 11,000 314,875
Interpool, Inc. .......................................... 31,900 468,531
-----------
783,406
-----------
TOTAL COMMON STOCKS (Cost $19,060,602)........................... 21,016,475
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
APRIL 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENT - 7.3%
Face
Amount Value+
---------- -----------
<S> <C> <C>
REPURCHASE AGREEMENT - 7.3%
Chase Securities, Inc. 4.87%, dated 04/30/99,
due 05/03/99, to be repurchased at $1,633,663,
collateralized by $1,510,186 of various U.S.
Treasury Notes, 5.50%-7.00%, due 5/15/06-
5/15/08, valued at $1,633,861 (Cost $1,633,000).... $1,633,000 $ 1,633,000
-----------
TOTAL INVESTMENTS - 101.3% (Cost $20,693,602)(a)................ 22,649,475
-----------
OTHER ASSETS AND LIABILITIES (NET) - (1.3)%..................... (288,810)
-----------
NET ASSETS (100%)............................................... $22,360,665
===========
</TABLE>
+ See Note A to Financial Statements.
* Non-Income Producing Security
ADR American Depositary Receipt
(a) The cost for federal income tax purposes was $20,693,602. At April 30,
1999, net unrealized appreciation for all securities based on tax cost was
$1,955,873. This consisted of aggregate gross unrealized appreciation for
all securities of $2,917,584 and aggregate gross unrealized depreciation
for all securities of $961,711.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
Small Cap Small/Mid Cap
Portfolio Portfolio
----------- -------------
<S> <C> <C>
Assets
Investments, at Cost............................... $40,932,782 $20,693,602
=========== ===========
Investments, at Value - Note A..................... 42,758,094 22,649,475
Cash............................................... 265 819
Receivable for Investments Sold.................... 555,888 --
Receivable for Portfolio Shares Sold............... 1,903 --
Dividends Receivable............................... 5,400 --
Interest Receivable................................ 312 221
Other Assets....................................... 361 161
----------- -----------
Total Assets...................................... 43,322,223 22,650,676
----------- -----------
Liabilities
Payable for Investments Purchased.................. 460,125 253,553
Payable for Investment Advisory Fees - Note B...... 19,927 6,693
Payable for Administrative Fees - Note C........... 9,372 8,037
Payable for Custodian Fees - Note D................ -- 1,943
Payable for Account Service Fees - Note F.......... 416 148
Payable for Directors' Fees - Note G............... 1,339 1,443
Other Liabilities.................................. 10,604 18,194
----------- -----------
Total Liabilities................................. 501,783 290,011
----------- -----------
Net Assets......................................... $42,820,440 $22,360,665
=========== ===========
Net Assets Consist Of:
Paid in Capital.................................... $38,828,299 $19,885,986
Undistributed Net Investment Loss.................. (141,375) (50,104)
Accumulated Net Realized Gain...................... 2,308,204 568,910
Unrealized Appreciation............................ 1,825,312 1,955,873
----------- -----------
Net Assets......................................... $42,820,440 $22,360,665
=========== ===========
Institutional Class Shares
Shares Issued and Outstanding ($0.001 par value)
(Authorized 25,000,000)........................... 2,891,248 1,639,440
Net Asset Value, Offering and Redemption Price Per
Share............................................. $14.81 $13.64
====== ======
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
FOR THE SIX MONTHS ENDED APRIL 30,
1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Small Cap Small/Mid Cap
Portfolio Portfolio
---------- -------------
<S> <C> <C>
Investment Income
Interest............................................ $ 37,882 $ 36,377
Dividends........................................... 96,111 53,026
---------- ----------
Total Income....................................... 133,993 89,403
---------- ----------
Expenses
Investment Advisory Fees - Note B................... 161,915 89,408
Administrative Fees - Note C........................ 65,681 50,651
Registration and Filing Fees........................ 10,101 12,164
Custodian Fees - Note D............................. 4,242 3,433
Directors' Fees - Note G............................ 2,227 2,197
Audit Fees.......................................... 7,154 6,975
Legal Fees.......................................... 1,745 1,239
Printing Fees....................................... 6,199 6,199
Shareholder Servicing Fees.......................... 12,763 934
Other Expenses...................................... 3,612 2,470
Account Services Fees - Note F...................... 50 1,061
Account Services Fees Waived - Note F............... -- (1,061)
Investment Advisory Fees Waived - Note B............ -- (36,163)
---------- ----------
Net Expenses Before Expense Offset................. 275,689 139,507
Expense Offset - Note A............................. (321) --
---------- ----------
Net Expenses After Expense Offset.................. 275,368 139,507
---------- ----------
Net Investment Loss................................. (141,375) (50,104)
---------- ----------
Net Realized Gain on Investments.................... 2,808,936 568,289
Net Change in Unrealized Appreciation/Depreciation
on Investments..................................... 3,200,999 1,170,010
---------- ----------
Total Net Gain...................................... 6,009,935 1,738,299
---------- ----------
Net Increase in Net Assets Resulting from
Operations......................................... $5,868,560 $1,688,195
========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, Year Ended
1999 October 31,
(Unaudited) 1998
---------------- ------------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Loss........................... $ (141,375) $ (234,059)
Net Realized Gain (Loss)...................... 2,808,936 (470,760)
Net Change in Unrealized
Appreciation/Depreciation.................... 3,200,999 (10,327,282)
------------ ------------
Net Increase/Decrease in Net Assets Resulting
from Operations.............................. 5,868,560 (11,032,101)
------------ ------------
Distributions:
Net Realized Gain............................. -- (5,978,687)
------------ ------------
Capital Share Transactions: (1)
Issued........................................ 11,853,245 43,148,322
In Lieu of Cash Distributions................. -- 5,699,557
Redeemed...................................... (17,119,999) (41,390,608)
------------ ------------
Net Increase/Decrease from Capital Share
Transactions................................. (5,266,754) 7,457,271
------------ ------------
Total Increase/Decrease....................... 601,806 (9,553,517)
Net Assets:
Beginning of Period........................... 42,218,634 51,772,151
------------ ------------
End of Period (including undistributed net
investment income (loss) of $(141,375) and
$0, respectively)............................ $ 42,820,440 $ 42,218,634
============ ============
(1) Shares Issued and Redeemed:
Issued........................................ 840,867 2,774,792
In Lieu of Cash Distributions................. -- 369,621
Redeemed...................................... (1,212,629) (2,640,417)
------------ ------------
(371,762) 503,996
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, Year Ended
1999 October 31,
(Unaudited) 1998
---------------- -----------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Loss............................ $ (50,104) $ (24,006)
Net Realized Gain.............................. 568,289 327,208
Net Change in Unrealized
Appreciation/Depreciation..................... 1,170,010 (86,200)
----------- -----------
Net Increase in Net Assets Resulting from
Operations.................................... 1,688,195 217,002
----------- -----------
Distributions:
Net Investment Income.......................... -- (4,105)
Net Realized Gain.............................. (320,931) (164,220)
----------- -----------
Total Distributions............................ (320,931) (168,325)
----------- -----------
Capital Share Transactions: (1)
Issued......................................... 5,110,428 13,529,061
In Lieu of Cash Distributions.................. 290,243 153,289
Redeemed....................................... (6,187,396) (4,908,362)
----------- -----------
Net Increase/Decrease from Capital Share
Transactions.................................. (786,725) 8,773,988
----------- -----------
Total Increase................................. 580,539 8,822,665
Net Assets:
Beginning of Period............................ 21,780,126 12,957,461
----------- -----------
End of Period (including undistributed net
investment income (loss) of $(50,104) and $0,
respectively)................................. $22,360,665 $21,780,126
=========== ===========
(1) Shares Issued and Redeemed:
Issued......................................... 376,213 1,032,302
In Lieu of Cash Distributions.................. 21,774 12,422
Redeemed....................................... (448,231) (380,344)
----------- -----------
(50,244) 664,380
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
Six Months
Ended July 1,
April 30, Years Ended October 31, 1994*** to
1999 ------------------------------------- October 31,
(Unaudited) 1998 1997 1996 1995 1994
----------- ------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period........ $ 12.94 $ 18.76 $ 15.73 $ 15.87 $ 11.14 $10.00
------- ------- ------- ------- ------- ------
Income From Investment
Operations
Net Investment Income
(Loss)................ (0.05) (0.06) (0.08) (0.10) (0.07) 0.01
Net Realized and
Unrealized Gain
(Loss)................ 1.92 (3.47) 4.59 2.73 4.81 1.13
------- ------- ------- ------- ------- ------
Total From Investment
Operations............ 1.87 (3.53) 4.51 2.63 4.74 1.14
------- ------- ------- ------- ------- ------
Distributions
Net Investment Income.. -- -- -- -- (0.01) --
In Excess of Net
Investment Income..... -- -- -- -- 0.00# --
Net Realized Gain...... -- (2.29) (1.48) (2.77) -- --
------- ------- ------- ------- ------- ------
Total Distributions.... -- (2.29) (1.48) (2.77) (0.01) --
------- ------- ------- ------- ------- ------
Net Asset Value, End of
Period................. $ 14.81 $ 12.94 $ 18.76 $ 15.73 $ 15.87 $11.14
======= ======= ======= ======= ======= ======
Total Return............ 14.54%** (20.86)% 31.44% 19.43% 42.59%+ 11.40%**+
======= ======= ======= ======= ======= ======
Ratios and Supplemental
Data
Net Assets, End of
Period (Thousands)..... $42,820 $42,219 $51,772 $33,488 $18,910 $8,287
Ratio of Expenses to
Average Net Assets..... 1.28 %* 1.16 % 1.21 % 1.37 % 1.40 % 1.40%*
Ratio of Net Investment
Income (Loss) to
Average Net Assets..... (0.66)%* (0.48)% (0.53)% (0.78)% (0.63)% 0.30%*
Portfolio Turnover
Rate................... 52 % 120 % 158 % 181 % 180 % 5%
Ratio of Voluntarily
Waived Fees and
Expenses Assumed by
Affiliates to Average
Net Assets............. N/A N/A N/A N/A 0.11 % 2.38%*
Ratio of Expenses to
Average Net Assets
Including Expense
Offsets................ 1.28 %* 1.16 % 1.21 % 1.37 % 1.40 % 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 Affiliates during the periods indicated.
# Value is less than $0.01 per share.
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
Six Months Ended
April 30, Year Ended
1999 October 31, November 1, 1996***
(Unaudited) 1998 to October 31, 1997
---------------- ----------- -------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period...................... $ 12.89 $ 12.64 $ 10.00
------- ------- -------
Income From Investment
Operations
Net Investment Income
(Loss)..................... (0.03) (0.01) 0.03
Net Realized and Unrealized
Gain....................... 0.95 0.42 2.64
------- ------- -------
Total From Investment
Operations................. 0.92 0.41 2.67
------- ------- -------
Distributions
Net Investment Income....... -- (0.00)# (0.03)
Net Realized Gain........... (0.17) (0.16) --
------- ------- -------
Total Distributions......... (0.17) (0.16) (0.03)
------- ------- -------
Net Asset Value, End of
Period...................... $13.64 $ 12.89 $ 12.64
======= ======= =======
Total Return+................ 7.20%** 3.33% 26.76%
======= ======= =======
Ratios and Supplemental Data
Net Assets, End of Period
(Thousands)................. $22,361 $21,780 $12,957
Ratio of Expenses to Average
Net Assets.................. 1.25%* 1.25% 1.25%
Ratio of Net Investment
Income (Loss) to Average Net
Assets...................... (0.45)%* (0.12)% 0.24%
Portfolio Turnover Rate...... 43% 83% 56%
Ratio of Voluntarily Waived
Fees and Expenses Assumed by
Affiliates to Average Net
Assets...................... 0.33%* 0.33% 1.29%
Ratio of Expenses to Average
Net Assets Including Expense
Offsets..................... 1.25%* 1.25% 1.25%
</TABLE>
* Annualized
** Not Annualized
*** Commencement of Operations
+ Total return would have been lower had certain fees not been waived and
expenses assumed by Affiliates during the period.
# Value is less than $0.01 per share
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
UAM Funds, Inc. and UAM Funds Trust (collectively the "UAM Funds") are reg-
istered under the Investment Company Act of 1940, as amended. The Rice, Hall,
James Small Cap Portfolio and Rice, Hall, James Small/Mid Cap Portfolio (the
"Portfolios"), portfolios of UAM Funds, Inc., are diversified, open-end man-
agement investment companies. At April 30, 1999, the UAM Funds were comprised
of 44 active portfolios. The information presented in the financial statements
pertains only to the Portfolios. The objectives of the Portfolios are as fol-
lows:
Rice, Hall, James Small Cap Portfolio seeks to provide maximum capital ap-
preciation, consistent with reasonable risk to principal by investing primar-
ily in small market capitalization companies.
Rice, Hall, James Small/Mid Cap Portfolio seeks to provide maximum capital
appreciation, consistent with reasonable risk to principal by investing pri-
marily in small/mid market capitalization companies.
A. Significant Accounting Policies: The following significant accounting
policies are in conformity with generally accepted accounting principles. Such
policies are consistently followed by the Portfolios in the preparation of
their financial statements. Generally accepted accounting principles may re-
quire Management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results may differ
from those estimates.
1. Security Valuation: Investments for which market quotations are read-
ily available are stated at market value, which is determined using the
last reported sale price from the exchange where the security is primarily
traded. If no sales are reported, as in the case of some securities traded
over-the-counter, the market value is determined by using the average be-
tween the last reported bid and last reported offer prices quoted on such
day. Fixed income securities are stated on the basis of valuation provided
by brokers and/or a pricing service which uses information with respect to
transactions in fixed income securities, quotations from dealers, market
transactions in comparable securities and various relationships between
securities in determining value. Securities quoted in foreign currencies
are translated into U.S. dollars at the current exchange rate. Short-term
investments 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 read-
ily available is determined in good faith at fair value following proce-
dures approved by the Board of Directors.
18
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- -------------------------------------------------------------------------------
2. Federal Income Taxes: It is the Portfolios' 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 provi-
sion for Federal income taxes is required in the financial statements.
3. Repurchase Agreements: In connection with transactions involving re-
purchase agreements, the Portfolios' custodian bank takes possession of
the underlying securities ("collateral"), the value of which exceeds the
principal amount of the repurchase transaction, including accrued inter-
est. To the extent that any repurchase transaction exceeds one business
day, the value of the collateral is monitored on a daily basis to deter-
mine the adequacy of the collateral. In the event of default on the obli-
gation to repurchase, each Portfolio has the right to liquidate the col-
lateral and apply the proceeds in satisfaction of the obligation. In the
event of default or bankruptcy by the counterparty to the agreement, real-
ization 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 bal-
ances into a joint trading account which invests in one or more repurchase
agreements. This joint repurchase agreement is covered by the same collat-
eral requirements as discussed above.
4. Distributions to Shareholders: Each Portfolio will distribute sub-
stantially all of its net investment income quarterly. Any realized net
capital gains will be distributed at least 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 dif-
ferences are primarily due to differing book and tax treatments of net op-
erating losses.
Permanent book differences relating to shareholder distributions may re-
sult 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 un-
distributed 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 is executed. Costs used in determining realized gains or
losses
19
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- -------------------------------------------------------------------------------
on the sale of investment securities are based on the specific identifica-
tion 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 can-
not be directly attributed are apportioned among the portfolios of the UAM
Funds based on their relative net assets. Custodian fees for the Portfo-
lios are shown gross of expense offsets, if any, for custodian balance
credits.
B. Investment Advisory Services: Under the terms of an investment advisory
agreement, Rice, Hall, James & Associates (the "Adviser"), a subsidiary of
United Asset Management Corporation ("UAM"), provides investment advisory
services to the Rice, Hall, James Small Cap Portfolio and the Rice, Hall,
James Small/Mid Cap Portfolio at a fee calculated at an annual rate of 0.75%
and 0.80% of the average daily net assets, respectively. The Adviser has vol-
untarily agreed to waive a portion of its advisory fees and to assume ex-
penses, if necessary, in order to keep the Rice, Hall, James Small Cap Portfo-
lio and the Rice, Hall, James Small/Mid Cap Portfolio total annual operating
expenses, after the effect of expense offset arrangements, from exceeding
1.40% and 1.25% of average daily net assets, respectively.
C. Administrative Services: UAM Fund Services, Inc. (the "Administrator"), a
wholly-owned subsidiary of UAM, provides and oversees administrative, fund ac-
counting, dividend disbursing, shareholder servicing and transfer agent serv-
ices to the Portfolio under a Fund Administration Agreement. The Administrator
has entered into a Mutual Funds Service Agreement with Chase Global Funds
Services Company ("CGFSC"), a corporate affiliate of The Chase Manhattan Bank,
under which CGFSC provides certain services including administrative and fund
accounting services. The Administrator has entered into an Agency Agreement
with DST Systems, Inc. ("DST"), under which DST provides transfer agent and
dividend-disbursing services. The Administrator has also entered into an
agreement with UAM Shareholder Service Center, Inc. ("UAMSSC"), an affiliate
of UAM, to serve as the shareholder-servicing agent for the UAM Funds.
In exchange for administrative services, each Portfolio pays a five-part fee
to the Administrator as follows:
--Effective April 15, 1999, an annual base fee, which is retained by the
administrator, calculated at an annual rate equal to $14,500 for the
first operational share class.
--A portfolio-specific monthly fee of 0.04% per annum of the average daily
net assets of each Portfolio, which is retained by the Administrator.
20
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- -------------------------------------------------------------------------------
--An annual base fee that the Administrator pays to CGFSC for its adminis-
trative and fund accounting services calculated at the annual rate of no
more than $52,500 for the first operational share class; plus 0.039% of
their pro rata share of the combined average net assets of the UAM
Funds.
--An annual base fee that the Administrator pays to DST for its services
as transfer agent and dividend-disbursing agent equal to $10,500 for
each operational share class.
--An annual base fee that the Administrator pays to UAMSSC for its serv-
ices as shareholder-servicing agent equal to $7,500 for the first opera-
tional share class.
The Portfolios also pay certain account and transaction fees and out-of-
pocket expenses that may be based on the number of open and closed accounts,
the type of account or the services provided to the account.
For the six months ended April 30, 1999, the Administrator earned the fol-
lowing amounts from the Portfolios and paid the following to CGFSC and UAMSSC
for their services:
<TABLE>
<CAPTION>
Portion Portion
Administration paid to paid to
Rice, Hall, James Portfolios Fees CGFSC UAMSSC
- ---------------------------- -------------- ------- ---------
<S> <C> <C> <C>
Small Cap..................................... $65,681 $37,224 $9,149.02
Small/Mid Cap................................. 50,651 32,054 5,979.48
</TABLE>
D. Custodian: The Chase Manhattan Bank is custodian for the Portfolios' as-
sets 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 Portfolios. The
Distributor does not receive any fee or other compensation with respect to the
Portfolios.
F. Account Services: The UAM Funds entered into an Account Services Agree-
ment (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 partic-
ipants in a self-directed, defined contribution plan, and for whom the Service
Provider provides participant recordkeeping. Pursuant to the Services Agree-
ment, 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 provides
services. The Service provider has
21
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- -------------------------------------------------------------------------------
voluntarily agreed to waive its fees in order to keep the Portfolio's total
annual operating expenses, after the effect of expense offset arrangements,
from exceeding 1.40% and 1.25% of average daily net assets for the month for
the Rice, Hall, James Small Cap Portfolio and the Rice, Hall, James Small/Mid
Cap Portfolio respectively. The service Agreement has been terminated effec-
tive January 1, 1999.
G. Directors' Fees: Each Director, who is not an officer or affiliated per-
son, receives $2,000 per meeting attended plus reimbursement of expenses in-
curred in attending Board Meetings, which is allocated proportionally among
the active portfolios of UAM Funds, plus a quarterly retainer of $150 for each
active portfolio of the UAM Funds.
H. Purchases and Sales: For the six months ended April 30, 1999, the Rice,
Hall, James Small Cap Portfolio and the Rice, Hall, James Small/Mid Cap Port-
folio made purchases of $20,916,725 and $8,907,450 and sales of $25,455,691
and $10,015,342 of investment securities other than long-term U.S. Government
and short-term securities, respectively. There were no purchases or sales of
long-term U.S. Government securities.
I. Line of Credit: The Portfolios, along with certain other portfolios of
UAM Funds, collectively entered into an agreement which enables them to par-
ticipate in a $100 million unsecured line of credit with several banks.
Borrowings will be made solely to temporarily finance the repurchase of capi-
tal 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 0.08% per annum, payable at the end of each cal-
endar 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,
1999, the Portfolios had no borrowings under the agreement.
J. Other: At April 30, 1999, the percentage of total shares outstanding held
by record shareholders owning 10% or greater of the aggregate total shares
outstanding for each Portfolio was as follows:
<TABLE>
<CAPTION>
No. of %
Rice, Hall, James Portfolios Shareholders Ownership
- ---------------------------- ------------ ---------
<S> <C> <C>
Small Cap................................................ 1 37%
Small/Mid Cap............................................ 3 45%
</TABLE>
22
<PAGE>
UAM FUNDS THE RICE, HALL, JAMES PORTFOLIOS
- --------------------------------------------------------------------------------
Officers and Directors
Norton H. Reamer William H. Park
Director, President and Chairman Vice President
John T. Bennett, Jr. Michael E. DeFao
Director Secretary
Nancy J. Dunn Gary L. French
Director Treasurer
Philip D. English Robert R. Flaherty
Director Assistant Treasurer
William A. Humenuk Michael J. Leary
Director Assistant Treasurer
James P. Pappas Michelle Azrialy
Director Assistant Secretary
Peter M. Whitman, Jr.
Director
- --------------------------------------------------------------------------------
UAM Funds
P.O. Box 419081
Kansas City, MO 64141-6081
(toll free)
1-877-UAM-LINK (826-5465)
www.uam.com
Investment Adviser
Rice, Hall, James & Associates
600 West Broadway, Suite 1000
San Diego, CA 92101
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.
