<PAGE>
UAM Funds
Funds for the Informed Investor(SM)
The NWQ Portfolios
Semi-Annual Report April 30, 1999
[LOGO OF UAM FUNDS APPEARS HERE]
<PAGE>
UAM FUNDS THE NWQ PORTFOLIOS
APRIL 30, 1999
(Unaudited)
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Shareholders' Letter........................................................ 1
Portfolio of Investments
Balanced.................................................................. 5
Special Equity............................................................ 9
Statement of Assets and Liabilities......................................... 12
Statement of Operations..................................................... 13
Statement of Changes in Net Assets
Balanced.................................................................. 14
Special Equity............................................................ 15
Financial Highlights
Balanced.................................................................. 16
Special Equity............................................................ 18
Notes to Financial Statements............................................... 19
</TABLE>
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<PAGE>
UAM FUNDS THE NWQ PORTFOLIOS
- -------------------------------------------------------------------------------
May 1999
Dear Shareholders:
During the six months ended April 30, 1999, U.S. financial markets recovered
strongly from last summer's nearly 20% decline, reaching and surpassing the
milestone of 10000 on the Dow Jones Average. This performance reflects in-
creased investor confidence that 1998's emerging economy crisis is over and
that stronger world growth will likely resume in the period ahead.
NWQ Balanced Portfolio
During the six months ended April 30, 1999, the NWQ Balanced Portfolio Insti-
tutional Class Shares gained 5.33% and Institutional Service Class Shares
gained 5.15% versus the Lipper Balanced Funds Index return of 12.79% and
13.57% for the composite balanced index composed of 60% S&P 500 Index, 30%
Lehman Brothers Government/Corporate Index, and 10% Salomon Brothers 3-Month
Treasury Bills Average. The individual benchmark returns were 22.31% S&P 500
Index, (0.12)% Lehman Brothers Government/Corporate Index, and 2.23% Salomon
Brothers 3-Month Treasury Bills Average.
Performance for the NWQ Balanced Portfolio, while behind its benchmark, has
recently improved strongly, reflecting the beginning of a stock market rota-
tion from large growth oriented stocks to value and cyclical companies. During
1998 growth stocks outperformed value stocks by the largest margin on record
which pushed the valuation disparity between growth and value stocks to an ex-
treme. This set the stage for a dramatic recovery of value stocks once the
necessary catalysts were present. As investors became increasingly confident
of a recovery for the rest of the world and saw signs of corporate profits
strengthening, a dramatic rotation into value stocks started in March and
April of 1999.
Within the Portfolio, many of the strongest performers were those holdings
most negatively impacted by Asian Flu concerns. These include energy service,
machinery, and banks. The undervaluation of many of the portfolio's holdings
was also reflected in three announced takeovers at substantial premiums to
trading levels prior to the announced bids. Bond holdings, which are U.S.
Treasuries and Agencies, while strong performers last year, have been under
pressure as interest rates have risen in 1999. We believe U.S. Treasuries near
6% are very attractive and expect interest rates to decline in the second half
of 1999.
As of April 30, 1999 the Portfolio held (as a percent of market value) 50.4%
equities, 47.4% fixed income, and 2.2% cash equivalents.
1
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UAM FUNDS THE NWQ PORTFOLIOS
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NWQ Special Equity Portfolio
Notwithstanding a market environment that favored growth and large capitaliza-
tion technology stocks, the NWQ Special Equity Portfolio performed strongly
for the six months ended April 30, 1999, with Institutional Class shares gain-
ing 23.97% and Institutional Service Class Shares gaining 23.63%. Results com-
pared favorably with the overall market (S&P 500 Index) return of 22.31%,
while significantly outperforming the S&P MidCap 400 Index return of 18.84%.
Calendar year-to-date, with a return of 16.22% for the Service Class and
16.46% for the Institutional Class, the Special Equity Portfolio substantially
outperformed the S&P 500 Index return of 9.04% and S&P MidCap 400 Index of
1.00%.
The Portfolio's performance was driven by strong individual stock selection as
well as a concentration in certain selective areas, particularly telecommuni-
cations and media. Consolidation in the cable industry continued unabated as
witnessed by Comcast Corp. and AT&T's competing bids for MediaOne Group, one
of the largest holdings in the Portfolio. Olivetti and Mannesman also took
over Cellular Communications International during the period. Since the begin-
ning of 1998, this stock had appreciated nearly 160 percent in the Portfolio.
Our investments in NTL Inc., CoreComm, Inc., Cellular Communications of Puerto
Rico, Telephone & Data Systems, and AT&T Liberty Media have appreciated hand-
somely as some of the catalysts we had identified early on continued to propel
their valuations higher. The financial services sector outperformed given sta-
ble interest rates, consolidation savings and continued merger activity. High-
lighted holdings in this area include BankAmerica Corp., Chase Manhattan Corp.
and Provident Companies, which is awaiting regulatory approval for its planned
merger with UNUM Corp.
Other notable investments include Circus Circus Enterprises, Case Corp., Lear
Corp., and Hasbro, which continues to benefit from their broad product line
including Furbies and Star Wars merchandise. Our energy investments have con-
tributed to performance recently as oil prices have rebounded due to OPEC pro-
duction cutbacks and lower inventory levels. Our holdings in Philip Morris and
Loews Corp. performed poorly given some negative judgments regarding tobacco
liability. However, we feel both companies offer absolutely compelling valua-
tions.
The NWQ Special Equity Portfolio strategy continues to focus on undervalued
securities where there are catalysts present or developing, such as management
restructuring or industry consolidation, to improve profitability and recog-
nize value. As of April 30, 1999 the portfolio held (as a percent of market
value) 89.9% equities and 10.1% cash equivalents.
2
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UAM FUNDS THE NWQ PORTFOLIOS
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Market Outlook
As a value manager, NWQ recognizes that there will be periods when the "value
style" does not attract the marginal dollars flowing into the market. Value
investing, by its very nature, does not offer instant excitement. While we
have just been through one of the worst periods for value investors in the
last quarter century, there are some signs that the pendulum may be swinging
back in favor of value. During 1998, growth stocks outperformed value stocks
by the largest margin on record, which pushed the valuation disparity between
growth and value stocks to an extreme. This set the stage for a dramatic re-
covery of value stocks once the necessary catalysts were present. As investors
became increasingly confident of a recovery for the rest of the world and saw
signs of corporate profits strengthening, a dramatic rotation into value
stocks started in March and April of 1999.
Is this change in stock market leadership temporary or the beginning of a pe-
riod of better performance for the value style? Over the last several business
cycles growth has outperformed value during periods when economic conditions
deteriorate. The global crisis environment that prevailed in 1998 clearly fed
investors' appetite for mega-cap growth stocks. What will be the catalyst for
a shift back to value? In past cycles, investors have gravitated towards value
stocks 6-12 months ahead of an anticipated turn in earnings growth. Today,
such a turn would very likely come with an improved outlook for world growth
and corporate pricing power. The unprecedented number of central bank interest
rate easings (i.e. over 137 easings since last October, including 32 in April
alone) has contributed to global stability, creating liquidity and eventually,
an environment for increased global growth and earnings. Also, history has
shown that periods of investment style outperformance have frequently ended
with an acceleration or blow-off in relative performance. Given the record
relative performance for growth stocks in 1998 and the recent gains in value
stocks, it is becoming more probable that value investing is coming back into
favor.
As a value manager, we place great emphasis on the valuation measures of the
stocks in which we invest--measures that historically have provided a safety
margin with less risk than the growth style. Nevertheless, as long-term value
investors we recognize that it is not uncommon to experience periods when our
value style underperforms. Hopefully this period of underperformance is coming
to an end.
Sincerely,
NWQ Investment Management Co.
3
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UAM FUNDS THE NWQ PORTFOLIOS
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The investment results presented in the Adviser's letter represent past per-
formance and should not be construed as a guarantee of future results. A Port-
folio's performance assumes the reinvestment of all dividends and distribu-
tions.
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 indi-
vidual investors.
Definition of the Comparative Indices
Lehman Government/Corporate Index is an unmanaged fixed income market value-
weighted index that combines the Government and Corporate Bond Indices, in-
cluding U.S. government treasury securities, corporate and yankee bonds. All
issues are investment grade (BBB) or higher, with maturities of at least one
year and outstanding par value of at least $100 million of U.S. government is-
sues 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.
Lipper Balanced Fund Index is an unmanaged index of open-end equity funds
whose primary objective is to conserve principal by maintaining at all time a
balanced portfolio of both stocks and bonds. Typically, the stock/bond ratio
ranges around 60%/40%.
Salomon Smith Barney Three-Month T-Bill Average is the average for all trea-
sury bills for the previous three-month period.
Salomon Smith Barney Three-Month U.S. Treasury Bill Index is a return equiva-
lent yield average based on the last three 3-month Treasury bill issues.
Standard & Poors' MidCap 400 Index consists of 400 domestic stocks chosen for
market size (medium market capitalization of approximately $700 million), li-
quidity, and industry group representation. It is a market-value weighted in-
dex with each stock affecting the index in proportion to its market value.
Standard & Poors' 500 Stock Index is an unmanaged index composed of 400 indus-
trial stocks, 40 financial stocks, 40 utilities stocks and 20 transportation
stocks.
The comparative indices assume reinvestment of dividends and, unlike a
Portfolio's returns, do not reflect any fees or expenses. If such fees were
reflected in the comparative indices' return, the performance would have been
lower.
Please note that one cannot invest directly in an unmanaged index.
4
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UAM FUNDS NWQ BALANCED PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 50.2%
<TABLE>
<CAPTION>
Shares Value+
----------- ------------
<S> <C> <C>
AEROSPACE & DEFENSE - 2.5%
Lockheed Martin Corp. ............................... 6,400 $ 275,600
Sundstrand Corp. .................................... 3,800 272,650
------------
548,250
------------
AUTOMOTIVE - 0.5%
*Delphi Automotive Systems Corp. .................... 6,000 116,625
------------
BASIC MATERIALS - 2.1%
Air Products & Chemical, Inc. ....................... 3,300 155,100
Praxair, Inc. ....................................... 6,000 310,500
------------
465,600
------------
CAPITAL EQUIPMENT - 3.5%
Case Corp. .......................................... 6,100 211,213
Deere & Co. ......................................... 3,000 129,000
Foster Wheeler Corp. ................................ 3,200 43,200
Ingersoll-Rand Co. .................................. 4,550 314,803
Kennametal, Inc. .................................... 2,500 66,406
------------
764,622
------------
CONSUMER DISCRETIONARY - 7.1%
American Greetings Corp., Class A.................... 4,500 117,844
*Federated Department Stores, Inc. .................. 5,000 233,437
Fortune Brands, Inc. ................................ 5,800 229,100
Maytag Corp. ........................................ 2,200 150,425
*MediaOne Group, Inc. ............................... 6,500 530,156
Time Warner, Inc. ................................... 4,100 287,000
------------
1,547,962
------------
CONSUMER STAPLES - 2.5%
Philip Morris Cos., Inc. ............................ 9,200 322,575
RJR Nabisco Holdings Corp. .......................... 8,000 206,000
------------
528,575
------------
ELECTRONICS - 3.0%
Emerson Electric Co. ................................ 5,000 322,500
Grainger (W.W.), Inc. ............................... 6,500 326,219
------------
648,719
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
UAM FUNDS NWQ BALANCED PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS - continued
Shares Value+
----------- ------------
<S> <C> <C>
ENERGY - 6.1%
Halliburton Co. .................................... 11,600 $ 494,450
*Noble Drilling Corp. .............................. 13,200 259,050
*Ocean Energy, Inc. ................................ 17,930 166,973
Transocean Offshore, Inc. .......................... 3,000 89,062
*Weatherford International, Inc. ................... 9,000 304,875
------------
1,314,410
------------
ENVIRONMENT CONTROLS - 1.6%
Waste Management, Inc. ............................. 6,000 339,000
------------
FINANCIAL SERVICES - 10.5%
Allstate Corp. ..................................... 6,500 236,438
BankAmerica Corp. .................................. 3,000 216,000
Bear Stearns Cos., Inc. ............................ 3,221 150,179
Chase Manhattan Corp. .............................. 3,000 248,250
Citigroup, Inc. .................................... 1,500 112,875
First Union Corp. .................................. 9,000 498,375
*Highlands Insurance Group, Inc. ................... 145 1,595
Household International, Inc. ...................... 4,800 241,500
Provident Cos., Inc. ............................... 3,000 118,125
Wells Fargo Co. .................................... 11,000 475,062
------------
2,298,399
------------
HEALTH CARE - 3.8%
Aetna, Inc. ........................................ 3,800 333,212
CIGNA Corp. ........................................ 3,000 261,563
Columbia/HCA Healthcare Corp. ...................... 9,800 241,938
------------
836,713
------------
MULTI-INDUSTRY - 1.4%
Loews Corp. ........................................ 4,300 314,706
------------
TECHNOLOGY - 3.8%
Texas Instruments, Inc. ............................ 4,000 408,500
Thomas & Betts Corp. ............................... 3,500 147,000
Xerox Corp. ........................................ 4,800 282,000
------------
837,500
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
UAM FUNDS NWQ BALANCED PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS - continued
Shares Value+
----------- ------------
<S> <C> <C>
TRANSPORTATION - 0.7%
Delta Air Lines, Inc. .............................. 2,500 $ 158,594
------------
UTILITIES - 1.1%
Unicom Corp. ....................................... 6,000 232,875
------------
TOTAL COMMON STOCKS (Cost $9,023,248)........................... 10,952,550
------------
PREFERRED STOCKS - 0.0%
HEALTH CARE - 0.0%
*Fresenius Medical Care AG, Class D (Cost $79)...... 800 23
------------
U.S. GOVERNMENT SECURITIES - 47.3%
<CAPTION>
Face
Amount
-----------
<S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 13.9%
6.00%, 5/15/08...................................... $ 3,000,000 3,023,307
------------
U.S. TREASURY BONDS - 25.3%
10.375%, 11/15/12................................... 3,400,000 4,477,375
6.25%, 8/15/23...................................... 1,000,000 1,041,250
------------
5,518,625
------------
U.S. TREASURY NOTES - 8.1%
8.00%, 8/15/99...................................... 25,000 25,234
6.375%, 8/15/02..................................... 200,000 206,750
5.875%, 2/15/04..................................... 500,000 512,813
6.00%, 2/15/26...................................... 1,000,000 1,012,813
------------
1,757,610
------------
TOTAL U.S. GOVERNMENT SECURITIES (Cost $10,315,769)............. 10,299,542
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
UAM FUNDS NWQ BALANCED PORTFOLIO
APRIL 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENT - 2.2%
Face
Amount Value+
----------- ------------
<S> <C> <C>
REPURCHASE AGREEMENT - 2.2%
Chase Securities, Inc. 4.87%, dated 4/30/99, due
5/3/99, to be repurchased at $485,197,
collateralized by $448,524 of various U.S.
Treasury Notes, 5.50%-7.00%, due 5/15/06- 5/15/08,
valued at $485,018 (Cost $485,000)................ $ 485,000 $ 485,000
------------
TOTAL INVESTMENTS - 99.7% (Cost $19,824,096)(a)................ 21,737,115
------------
OTHER ASSETS AND LIABILITIES (NET) - 0.3%...................... 63,881
------------
NET ASSETS - 100%.............................................. $ 21,800,996
============
</TABLE>
+ See Note A to Financial Statements.
* Non-Income Producing Security
(a) The cost for Federal income tax purposes was $19,824,096. At April 30,
1999, net unrealized appreciation for all securities based on tax cost was
$1,913,019. This consisted of aggregate gross unrealized appreciation for
all securities of $2,997,819, and gross unrealized depreciation for all
securities of $1,084,800.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
UAM FUNDS NWQ SPECIAL EQUITY PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 89.9%
Shares Value+
----------- ------------
<S> <C> <C>
BASIC MATERIALS - 3.0%
Praxair, Inc......................................... 14,000 $ 724,500
----------
BROADCASTING & PUBLISHING - 3.0%
* @Entertainment, Inc................................ 17,000 151,937
E.W. Scripps Co., Class A (The)...................... 11,500 575,000
----------
726,937
----------
CAPITAL EQUIPMENT - 1.9%
Case Corp. .......................................... 13,000 450,125
----------
CONSUMER DISCRETIONARY - 20.2%
Alberto-Culver Co., Class A.......................... 9,500 214,938
*AT&T Corp. - Liberty Media Group, Class A........... 15,619 997,664
*Circus Circus Enterprises, Inc. .................... 17,500 368,594
*Cox Communications, Inc., Class A................... 8,000 635,000
Ford Motor Co. ...................................... 8,800 562,650
Hasbro, Inc. ........................................ 18,500 631,312
*Lear Corp. ......................................... 14,000 642,250
*MediaOne Group, Inc. ............................... 10,000 815,625
----------
4,868,033
----------
CONSUMER STAPLES - 2.7%
Philip Morris Cos., Inc. ............................ 18,800 659,175
----------
ENERGY - 5.9%
*BJ Services Co. .................................... 18,000 481,500
*Ocean Energy, Inc. ................................. 28,319 263,721
Tosco Corp. ......................................... 16,400 438,700
Transocean Offshore, Inc. ........................... 8,075 239,726
----------
1,423,647
----------
ENVIRONMENT CONTROLS - 3.3%
Waste Management, Inc. .............................. 14,000 791,000
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
UAM FUNDS NWQ SPECIAL EQUITY PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS - continued
Shares Value+
----------- ------------
<S> <C> <C>
FINANCIAL SERVICES - 25.6%
BankAmerica Corp. .................................. 8,667 $ 624,024
Bank One Corp. ..................................... 10,500 619,500
Chase Manhattan Corp. .............................. 6,800 562,700
First Union Corp. .................................. 9,500 526,063
Hartford Financial Services Group, Inc. ............ 8,900 524,544
Heller Financial, Inc. ............................. 18,000 488,250
IndyMac Mortgage Holdings, Inc. .................... 26,000 429,000
MGIC Investment Corp. .............................. 9,900 480,769
Provident Cos., Inc. ............................... 17,400 685,125
Torchmark Corp. .................................... 14,000 478,625
UnionBanCal Corp. .................................. 12,000 409,500
Waddell & Reed Financial, Inc., Class A............. 15,654 353,193
------------
6,181,293
------------
HEALTH CARE - 6.0%
Aetna, Inc. ........................................ 8,800 771,650
Columbia/HCA Healthcare Corp. ...................... 27,000 666,562
------------
1,438,212
------------
MULTI-INDUSTRY - 2.9%
Loews Corp. ........................................ 9,700 709,919
------------
TECHNOLOGY - 2.4%
*Quantum Corp. ..................................... 20,000 357,500
*Storage Technology Corp. .......................... 11,500 222,094
------------
579,594
------------
TELECOMMUNICATIONS - 13.0%
*Cellular Communications of Puerto Rico............. 20,000 475,000
*CoreComm, Inc. .................................... 22,000 1,025,750
*NTL, Inc. ......................................... 12,000 914,250
Telephone & Data Systems, Inc. ..................... 12,000 718,500
------------
3,133,500
------------
TOTAL COMMON STOCKS (Cost $17,925,924).......................... 21,685,935
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
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UAM FUNDS NWQ SPECIAL EQUITY PORTFOLIO
APRIL 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TERM INVESTMENT - 10.1%
Face
Amount Value+
----------- ------------
<S> <C> <C>
REPURCHASE AGREEMENT - 10.1%
Chase Securities, Inc. 4.87%, dated 4/30/99, due
5/3/99, to be repurchased at $2,450,994
collateralized by $2,265,742 of various U.S.
Treasury Notes, 5.50%-7.00%, due 5/15/06-5/15/08,
valued at $2,450,092 (Cost $2,450,000)........... $ 2,450,000 $ 2,450,000
------------
TOTAL INVESTMENTS - 100.0% (COST $20,375,924)(a).............. 24,135,935
------------
OTHER ASSETS AND LIABILITIES (NET) - 0.0%..................... (6,523)
------------
NET ASSETS - 100%............................................. $ 24,129,412
============
</TABLE>
+ See Note A to Financial Statements.
* Non-Income Producing Security
(a) The cost for Federal income tax purposes was $20,375,924. At April 30,
1999, net unrealized appreciation for all securities based on tax cost was
$3,760,011. This consisted of aggregate gross unrealized appreciation for
all securities of $4,794,052, and gross unrealized depreciation for all
securities of $1,034,041.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
UAM FUNDS THE NWQ PORTFOLIOS
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
NWQ NWQ
Balanced Special Equity
Portfolio Portfolio
----------- --------------
<S> <C> <C>
Assets
Investments, at Cost............................... $19,824,096 $20,375,924
=========== ===========
Investments, at Value (including Repurchase
Agreements of $485,000 and $2,450,000,
respectively)..................................... $21,737,115 $24,135,935
Cash............................................... 428 401
Interest Receivable................................ 280,321 331
Dividends Receivable............................... 9,350 22,001
Other Assets....................................... 2,277 117
----------- -----------
Total Assets...................................... 22,029,491 24,158,785
----------- -----------
Liabilities
Payable for Investments Purchased.................. 204,614 --
Payable for Investment Advisory Fees (Note B)...... 1,893 8,276
Payable for Administrative Fees (Note C)........... 9,522 8,009
Payable for Custodian Fees (Note D)................ -- 299
Payable for Distribution and Service Fees (Note
E)................................................ 10,029 1,928
Payable for Directors' Fees (Note G)............... 1,492 1,354
Other Liabilities.................................. 945 9,507
----------- -----------
Total Liabilities................................. 228,495 29,373
----------- -----------
Net Assets......................................... $21,800,996 $24,129,412
=========== ===========
Net Assets Consist of:
Paid in Capital.................................... $16,865,904 $20,687,826
Undistributed Net Investment Income................ 53,211 17,419
Accumulated Net Realized Gain (Loss)............... 2,968,862 (335,844)
Unrealized Appreciation............................ 1,913,019 3,760,011
----------- -----------
Net Assets......................................... $21,800,996 $24,129,412
=========== ===========
Institutional Class Shares:
Net Assets......................................... $ 1,704,286 $17,782,943
Shares Issued and Outstanding ($0.001 par value)
(Authorized 25,000,000)........................... 122,862 1,444,617
Net Asset Value, Offering and Redemption Price Per
Share............................................. $13.87 $12.31
====== ======
Institutional Service Class Shares:
Net Assets......................................... $20,096,710 $ 6,346,469
Shares Issued and Outstanding ($0.001 par value)
(Authorized 10,000,000)........................... 1,452,163 517,891
Net Asset Value, Offering and Redemption Price Per
Share............................................. $13.84 $12.25
====== ======
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
UAM FUNDS THE NWQ PORTFOLIOS
FOR THE SIX MONTHS ENDED
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
<S> <C> <C>
NWQ NWQ
Balanced Special Equity
Portfolio Portfolio
----------- --------------
Investment Income
Dividends........................................ $ 120,078 $ 123,409
Interest......................................... 517,900 32,026
----------- --------------
Total Income.................................... 637,978 155,435
----------- --------------
Expenses
Investment Advisory Fees (Note B)................ 114,927 87,728
Administrative Fees (Note C)..................... 69,051 51,777
Distribution and Service Plan Fees (Note E):
Institutional Service Class..................... 53,176 10,831
Registration and Filing Fees..................... 10,384 11,447
Audit Fees....................................... 8,585 6,544
Account Services Fees (Note F)................... 6,733 86
Printing Fees.................................... 6,468 6,787
Other Expenses................................... 4,975 2,741
Custodian Fees (Note D).......................... 2,940 1,054
Directors' Fees (Note G)......................... 2,438 2,092
Legal Fees....................................... 2,129 1,062
Shareholder Servicing Fees....................... 328 696
Account Services Fees Waived (Note F)............ (6,733) (86)
Investment Advisory Fees Waived (Note B)......... (54,523) (49,384)
----------- --------------
Net Expenses Before Expense Offset.............. 220,878 133,375
Expense Offset (Note A).......................... -- --
----------- --------------
Net Expenses After Expense Offset............... 220,878 133,375
----------- --------------
Net Investment Income............................ 417,100 22,060
----------- --------------
Net Realized Gain (Loss) on Investments.......... 2,969,400 (289,001)
Net Change in Unrealized
Appreciation/Depreciation on Investments........ (2,242,717) 4,851,302
----------- --------------
Total Net Gain on Investments.................... 726,683 4,562,301
----------- --------------
Net Increase in Net Assets Resulting From
Operations...................................... $ 1,143,783 $ 4,584,361
=========== ==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
UAM FUNDS NWQ BALANCED PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, 1999 October 31,
(Unaudited) 1998
-------------- -----------
<S> <C> <C>
Increase (Decrease) In Net Assets
Operations:
Net Investment Income............................ $ 417,100 $ 1,158,878
Net Realized Gain................................ 2,969,400 3,772,048
Net Change in Unrealized
Appreciation/Depreciation....................... (2,242,717) (3,774,818)
------------ -----------
Net Increase in Net Assets Resulting From
Operations...................................... 1,143,783 1,156,108
------------ -----------
Distributions:
Net Investment Income:
Institutional Class.............................. (114,141) (311,634)
Institutional Service Class...................... (399,187) (804,116)
Net Realized Gain:
Institutional Class.............................. (862,901) (427,967)
Institutional Service Class...................... (2,898,598) (1,286,672)
------------ -----------
Total Distributions.............................. (4,274,827) (2,830,389)
------------ -----------
Capital Share Transactions (Note J):
Institutional Class:
Issued........................................... 3,026,576 7,377,290
In Lieu of Cash Distributions.................... 977,042 738,269
Redeemed......................................... (15,566,048) (6,362,260)
------------ -----------
Net Increase (Decrease) from Institutional Class
Shares.......................................... (11,562,430) 1,753,299
------------ -----------
Institutional Service Class:
Issued........................................... 1,403,372 7,388,463
In Lieu of Cash Distributions.................... 3,297,785 2,090,788
Redeemed......................................... (23,899,782) (7,983,595)
------------ -----------
Net Increase (Decrease) from Institutional
Service Class Shares............................ (19,198,625) 1,495,656
------------ -----------
Net Increase (Decrease) from Capital Share
Transactions.................................... (30,761,055) 3,248,955
------------ -----------
Total Increase (Decrease)........................ (33,892,099) 1,574,674
Net Assets:
Beginning of Period.............................. 55,693,095 54,118,421
------------ -----------
End of Period (including undistributed net
investment income of $53,211 and $149,439,
respectively)................................... $ 21,800,996 $55,693,095
============ ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
UAM FUNDS NWQ SPECIAL EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
April 30, 1999 November 4,
Ended 1997* to
(Unaudited) October 31, 1998
-------------- ----------------
<S> <C> <C>
Increase (Decrease) In Net Assets
Operations:
Net Investment Income......................... $ 22,060 $ 21,108
Net Realized Gain (Loss)...................... (289,001) 52,129
Net Change in Unrealized
Appreciation/Depreciation.................... 4,851,302 (1,091,291)
----------- -----------
Net Increase (Decrease) in Net Assets
Resulting From Operations.................... 4,584,361 (1,018,054)
----------- -----------
Distributions:
Net Investment Income:
Institutional Class........................... (25,749) --
Institutional Service Class................... -- --
Net Realized Gain:
Institutional Class........................... (72,678) --
Institutional Service Class................... (26,294) --
----------- -----------
Total Distributions........................... (124,721) --
----------- -----------
Capital Share Transactions (Note J):
Institutional Class:
Issued........................................ 1,206,873 15,803,298
In Lieu of Cash Distributions................. 98,265
Redeemed...................................... (973,323) (370,338)
----------- -----------
Net Increase from Institutional Class Shares.. 331,815 15,432,960
----------- -----------
Institutional Service Class**:
Issued........................................ 354,185 5,204,484
In Lieu of Cash Distributions................. 26,240 --
Redeemed...................................... (210,338) (451,520)
----------- -----------
Net Increase from Institutional Service Class
Shares....................................... 170,087 4,752,964
----------- -----------
Net Increase from Capital Share Transactions.. 501,902 20,185,924
----------- -----------
Total Increase................................. 4,961,542 19,167,870
Net Assets:
Beginning of Period........................... 19,167,870 --
----------- -----------
End of Period (including undistributed net
investment income of $17,419 and $21,108,
respectively)................................ $24,129,412 $19,167,870
=========== ===========
</TABLE>
* Commencement of Operations
** Initial offering of Institutional Service Class Shares began on November 7,
1997.
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
UAM FUNDS NWQ BALANCED PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Institutional Class Shares
-----------------------------------------------------------------
Six Months
Ended Years Ended October 31, August 2,
April 30, 1999 -------------------------------- 1994** to
(Unaudited) 1998 1997 1996 1995 October 31, 1994
-------------- ------- ------- ------ ------ ----------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period.................. $14.40 $ 14.81 $ 12.39 $11.24 $ 9.84 $10.00
------ ------- ------- ------ ------ ------
Income From Investment
Operations
Net Investment Income...... 0.28 0.34 0.31 0.31 0.32 0.06
Net Realized and Unrealized
Gain (Loss) on
Investments............... 0.40 0.04 2.47 1.21 1.40 (0.19)
------ ------- ------- ------ ------ ------
Total from Investment
Operations................ 0.68 0.38 2.78 1.52 1.72 (0.13)
------ ------- ------- ------ ------ ------
Distributions
Net Investment Income...... (0.20) (0.33) (0.31) (0.30) (0.32) (0.03)
Net Realized Gain.......... (1.01) (0.46) (0.05) (0.07) -- --
------ ------- ------- ------ ------ ------
Total Distributions........ (1.21) (0.79) (0.36) (0.37) (0.32) (0.03)
------ ------- ------- ------ ------ ------
Net Asset Value, End of
Period..................... $13.87 $ 14.40 $ 14.81 $12.39 $11.24 $ 9.84
====== ======= ======= ====== ====== ======
Total Return+............... 5.33%++ 2.58% 22.82% 13.68% 17.80% (1.30)%++
====== ======= ======= ====== ====== ======
Ratios and Supplemental Data
Net Assets, End of Period
(Thousands)................ $1,704 $14,023 $12,697 $8,624 $5,334 $1,584
Ratio of Expenses to Average
Net Assets................. 1.01%* 1.00% 1.00% 1.01% 1.04% 1.00%*
Ratio of Net Investment
Income to Average Net
Assets..................... 2.92%* 2.36% 2.29% 2.79% 3.30% 3.59%*
Portfolio Turnover Rate..... 11% 28% 20% 31% 31% 1%
Ratio of Voluntarily Waived
Fees and Expenses Assumed
by Affiliates to Average
Net Assets................. 0.32%* 0.17% 0.22% 1.21% 2.63% 12.10%*
Ratio of Expenses to Average
Net Assets Including
Expense Offsets............ 1.01%* 1.00% 1.00% 1.00% 1.00% N/A
</TABLE>
* Annualized
** Commencement of Operations.
+ Total return would have been lower had Affiliates not waived and assumed
certain expenses during the periods.
++ Not Annualized
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
UAM FUNDS NWQ BALANCED PORTFOLIO
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Institutional Service Class Shares
-------------------------------------------------
Six Months Years Ended
Ended October 31, January 22,
April 30, 1999 ---------------- 1996*** to
(Unaudited) 1998 1997 October 31, 1996
-------------- ------- ------- ----------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period....................... $ 14.37 $ 14.80 $ 12.37 $ 11.57
------- ------- ------- -------
Income From Investment
Operations
Net Investment Income........ 0.17 0.29 0.26 0.21
Net Realized and Unrealized
Gain (Loss) on Investments.. 0.49 0.02 2.47 0.78
------- ------- ------- -------
Total from Investment
Operations.................. 0.66 0.31 2.73 0.99
------- ------- ------- -------
Distributions
Net Investment Income........ (0.18) (0.28) (0.25) (0.19)
Net Realized Gain............ (1.01) (0.46) (0.05) --
------- ------- ------- -------
Total Distributions.......... (1.19) (0.74) (0.30) (0.19)
------- ------- ------- -------
Net Asset Value, End of
Period....................... $ 13.84 $ 14.37 $ 14.80 $ 12.37
======= ======= ======= =======
Total Return+................. 5.15%++ 2.10% 22.39% 8.60%++
======= ======= ======= =======
Ratios and Supplemental Data
Net Assets, End of Period
(Thousands).................. $20,097 $41,670 $41,421 $19,999
Ratio of Expenses to Average
Net Assets................... 1.42%* 1.40% 1.40% 1.41%*
Ratio of Net Investment Income
to Average Net Assets........ 2.46%* 1.96% 1.89% 2.39%*
Portfolio Turnover Rate....... 11% 28% 20% 31%
Ratio of Voluntarily Waived
Fees and Expenses Assumed by
Affiliates to Average Net
Assets....................... 0.39%* 0.16% 0.22% 0.99%*
Ratio of Expenses to Average
Net Assets Including Expense
Offsets...................... 1.42%* 1.40% 1.40% 1.40%*
</TABLE>
* Annualized
*** Initial offering of Institutional Service Class shares.
+ Total return would have been lower had Affiliates not waived and assumed
certain expenses during the periods.
++ Not Annualized
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
UAM FUNDS NWQ SPECIAL EQUITY PORTFOLIO
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Institutional Institutional Service
Class Shares Class Shares
------------------------------------ -------------------------------
Six Months Six Months
Ended Ended November 7,
April 30, 1999 November 4, 1997** April 30, 1999 1997*** to
(Unaudited) to October 31, 1998 (Unaudited) October 31, 1998
-------------- --------------------- -------------- ----------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.01 $ 10.00 $ 9.96 $ 9.90
------- ------- ------ ------
Income From Investment
Operations
Net Investment Income
(Loss)................ 0.02 0.02 -- (0.01)
Net Realized and
Unrealized Gain (Loss)
on Investments........ 2.35 (0.01) 2.34 0.07
------- ------- ------ ------
Total from Investment
Operations............ 2.37 0.01 2.34 0.06
------- ------- ------ ------
Distributions
Net Investment Income.. (0.02) -- -- --
Net Realized Gain...... (0.05) -- (0.05) --
------- ------- ------ ------
Total Distributions.... (0.07) -- (0.05) --
------- ------- ------ ------
Net Asset Value, End of
Period................. $ 12.31 $ 10.01 $12.25 $ 9.96
======= ======= ====== ======
Total Return+........... 23.97%++ 0.10%++ 23.63%++ 0.61%++
======= ======= ====== ======
Ratios and Supplemental Data
Net Assets, End of
Period (Thousands)..... $17,783 $14,167 $6,346 $5,001
Ratio of Expenses to
Average Net Assets..... 1.19%* 1.16%* 1.59%* 1.56%*
Ratio of Net Investment
Income (Loss) to
Average Net Assets..... 0.32%* 0.42%* (0.08)%* (0.16)%*
Portfolio Turnover
Rate................... 14% 23% 14% 23%
Ratio of Voluntarily
Waived Fees and
Expenses Assumed by
Affiliates to Average
Net Assets............. 0.48%* 0.82%* 0.48%* 1.98%*
Ratio of Expenses to
Average Net Assets
Including Expense
Offsets................ 1.19%* 1.15%* 1.59%* 1.55%*
</TABLE>
* Annualized
** Commencement of Operations.
*** Initial offering of Institutional Service Class shares.
+ Total return would have been lower had Affiliates not waived and assumed
certain expenses during the periods.
++ Not Annualized
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
UAM FUNDS THE NWQ 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 NWQ Balanced
Portfolio and the NWQ Special Equity Portfolio (the "Portfolios"), portfolios
of UAM Funds Inc., are diversified, open-end management investment companies.
At April 30, 1999, the UAM Funds were composed of 44 active portfolios. The
information presented in the financial statements pertain only to the Portfo-
lios. The Portfolios currently offer two separate classes of shares--Institu-
tional Class Shares and Institutional Service Class Shares ("Service Class
Shares"). Both classes of shares have identical voting rights (except Service
Class shareholders have exclusive voting rights with respect to matters relat-
ing to distribution and shareholder servicing of such shares), dividend, liq-
uidation and other rights. The objectives of the Portfolios are as follows:
NWQ Balanced Portfolio seeks consistent, above-average returns with min-
imum risk to principal by investing primarily in a combination of invest-
ment grade fixed income securities and common stocks of companies with
above-average statistical value which are in fundamentally attractive in-
dustries and which, in the Adviser's opinion, are undervalued at the time
of purchase.
NWQ Special Equity Portfolio seeks long-term capital appreciation by in-
vesting primarily in the common stock and other equity securities of com-
panies which, in the Adviser's opinion, are undervalued at the time of
purchase and offer the potential for above-average capital appreciation.
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 valuations pro-
vided by brokers and/or a
19
<PAGE>
UAM FUNDS THE NWQ PORTFOLIOS
- -------------------------------------------------------------------------------
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 de-
termining 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 following procedures approved by the Board of Directors.
2. Federal Income Taxes: It is each 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 provi-
sion for Federal income taxes is required in the financial statements.
3. Repurchase Agreements: In connection with transactions involving re-
purchase agreements, the Portfolio's 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 annually. All distributions are recorded
on ex-dividend date. The Portfolio's distributions to shareholders may in-
clude a return of capital received from the REITs as well as returns of
capital attributed to distributions of other income for financial report-
ing purposes which is not subject to taxation.
20
<PAGE>
UAM FUNDS THE NWQ PORTFOLIOS
- -------------------------------------------------------------------------------
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.
Permanent book and tax basis differences relating to shareholder distri-
butions 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 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 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 that cannot be di-
rectly attributed to a portfolio or share class are apportioned among the
portfolios of the UAM Funds based on their relative net assets. Income,
expenses (other than class specific expenses) and realized and unrealized
gains and losses are allocated to each class of shares based upon their
relative net assets. Custodian fees for the Portfolios are shown gross of
expense offsets, if any, for custodian balance credits.
B. Investment Advisory Services: Under the terms of an investment advisory
agreement, NWQ Investment Management Company (the "Adviser"), a subsidiary of
United Asset Management Corporation ("UAM"), provides investment advisory
services to each Portfolio for a monthly fee calculated at an annual rate of
average daily net assets for the month as follows:
<TABLE>
<CAPTION>
NWQ Portfolios
--------------
<S> <C>
Balanced............................................................... 0.70%
Special Equity......................................................... 0.85
</TABLE>
21
<PAGE>
UAM FUNDS THE NWQ PORTFOLIOS
- -------------------------------------------------------------------------------
The Adviser has voluntarily agreed to waive a portion of its advisory fees
and to assume expenses, if necessary, in order to keep the total annual oper-
ating expenses, after the effect of expense offset arrangements, from exceed-
ing the following:
<TABLE>
<CAPTION>
Institutional Institutional
NWQ Portfolios Class Rate Service Class Rate
-------------- ------------- ------------------
<S> <C> <C>
Balanced.................................... 1.10% 1.50%
Special Equity.............................. 1.25 1.65
</TABLE>
Effective March 1, 1999, the Adviser increased the expense limitations of
the Portfolios'. Prior to March 1, 1999, the expense limitations were as fol-
lows:
<TABLE>
<CAPTION>
Institutional Institutional
NWQ Portfolios Class Rate Service Class Rate
-------------- ------------- ------------------
<S> <C> <C>
Balanced.................................... 1.00% 1.40%
Special Equity.............................. 1.15 1.55
</TABLE>
C. Administrative Services: UAM Fund Services, Inc. (the "Administrator"), a
wholly-owned subsidiary of UAM, provides and oversees administrative, fund ac-
counting, dividend disbursing and transfer agent services to the Portfolios
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 Sys-
tems, Inc. ("DST"), under which DST provides transfer agent and dividend-dis-
bursing 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 and $3,000 for each additional class.
--A portfolio-specific monthly fee of 0.06% and 0.04% per annum of the av-
erage daily net assets of the NWQ Balanced Portfolio and the NWQ Special
Equity Portfolio, respectively, which is retained by the Administrator.
--An annual base fee that the Administrator pays to CGFSC for its adminis-
trative and fund accounting services calculated at an annual rate of no
more
22
<PAGE>
UAM FUNDS THE NWQ PORTFOLIOS
- -------------------------------------------------------------------------------
than $52,500 for the first operational share class; $7,500 for each ad-
ditional 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 and $2,500 for each additional 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>
Administration Portion paid Portion paid
NWQ Portfolios Fees to CGFSC to UAMSSC
-------------- -------------- ------------ ------------
<S> <C> <C> <C>
Balanced............................ $69,051 $39,478 $5,756
Special Equity...................... $51,777 $28,878 $5,692
</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 any other compensation with respect to
the Portfolio.
The Portfolio has adopted a Distribution and Service Plan (the "Plan") on
behalf of the Service Class Shares pursuant to Rule 12b-1 under the Investment
Company Act of 1940. Under the Plan, the Service Class Shares may not incur
distribution and service fees which exceed an annual rate of 0.75% of net as-
sets of that class of shares, however, the Board has currently limited aggre-
gate payments under the Plans to 0.50% per annum of the Service Class Share's
net assets. Each Portfolio's Service Class Shares are currently making pay-
ments for distribution fees at 0.15% of average daily net assets.
In addition, the NWQ Portfolios' Service Class Shares pays service fees at
an annual rate of 0.25% of the average daily value of Service Class Shares
owned by clients of the Service Agents.
23
<PAGE>
UAM FUNDS THE NWQ PORTFOLIOS
- -------------------------------------------------------------------------------
F. Account Services: The UAM Funds have 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 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 was 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. The agreement was terminated effective January 1, 1999.
The Service Provider has voluntarily agreed to waive a portion of its fees,
if necessary, in order to keep the total annual operating expenses, after the
effect of expense offset arrangements, from exceeding the following:
<TABLE>
<CAPTION>
Institutional Service
NWQ Portfolios Class Rate Class Rate
-------------- ------------- ----------
<S> <C> <C>
Balanced............................................ 1.00% 1.40%
Special Equity...................................... 1.15 1.55
</TABLE>
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 ac-
tive portfolio of the UAM Funds.
H. Purchases and Sales: For the six months ended April 30, 1999, purchases
and sales of investment securities other than long-term U.S. Government secu-
rities and short-term securities were:
<TABLE>
<CAPTION>
NWQ Portfolios Purchases Sales
-------------- ---------- -----------
<S> <C> <C>
Balanced.............................................. $2,134,045 $24,418,133
Special Equity........................................ $2,811,241 $ 3,018,911
</TABLE>
Purchases and sales of long-term U.S. Government securities were approxi-
mately $1,058,500 and $7,062,188, respectively for NWQ Balanced Portfolio.
There were no purchases or sales of long-term U.S. Government securities for
NWQ Special Equity Portfolio.
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
24
<PAGE>
UAM FUNDS THE NWQ PORTFOLIOS
- -------------------------------------------------------------------------------
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 calendar quarter, is ac-
crued by each participating portfolio based on its average daily unused por-
tion of the line of credit. During the period ended April 30, 1999, the Port-
folios had no borrowings under the agreement.
J. Capital Share Transactions: Transactions in capital shares for the Port-
folios, by class, were as follows:
<TABLE>
<CAPTION>
Institutional Institutional Service
Class Shares Class Shares
------------------------ ------------------------
Six Months Six Months
Ended Year Ended Year
April 30, Ended April 30, Ended
1999 October 31, 1999 October 31,
(Unaudited) 1998 (Unaudited) 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
NWQ Balanced Portfolio:
Shares Issued............... 211,114 500,335 101,853 500,182
In Lieu of Cash
Distributions............. 74,741 50,645 252,436 144,446
Shares Redeemed............. (1,137,013) (434,062) (1,801,634) (543,887)
---------- -------- ---------- --------
Net Increase from Capital
Share Transactions........ (851,158) 116,918 (1,447,345) 100,741
========== ======== ========== ========
</TABLE>
<TABLE>
<CAPTION>
Institutional Institutional
Class Shares Service Class Shares
----------------------- -----------------------
Six Months Six Months
Ended November 4 Ended November 7,
April 30, 1997* to April 30, 1997** to
1999 October 31, 1999 October 31,
(Unaudited) 1998 (Unaudited) 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
NWQ Special Equity Portfolio:
Shares Issued................. 114,572 1,452,726 33,084 544,632
In Lieu of Cash
Distributions............... 9,749 2,611
Shares Redeemed............... (95,468) (36,962) (19,738) (42,698)
------- --------- ------- -------
Net Increase from Capital
Share Transactions.......... 28,853 1,415,764 15,957 501,934
======= ========= ======= =======
</TABLE>
* Commencement of operations.
** Initial offering of Institutional Service Class Shares.
25
<PAGE>
UAM FUNDS THE NWQ PORTFOLIOS
- -------------------------------------------------------------------------------
At April 30, 1999, the percentage of total shares outstanding held by record
shareholders each owning 10% or greater of the aggregate total shares out-
standing for each Portfolio was as follows:
<TABLE>
<CAPTION>
No. Of %
NWQ Portfolios Shareholders Ownership
-------------- ------------- ---------
<S> <C> <C>
Balanced-Institutional Class......................... 4 77%
Balanced-Institutional Service Class................. 4 98%
Special Equity Institutional Class................... 2 77%
Special Equity Institutional Service Class........... 3 86%
</TABLE>
26
<PAGE>
UAM FUNDS THE NWQ 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
NWQ Investment Management Company
2049 Century Park East, 4th Floor
Los Angeles, CA 90067
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.
