<PAGE>
UAM Funds
Funds for the Informed Investor(SM)
Acadian Emerging Markets Portfolio
Semi-Annual Report April 30, 1999
[LOGO OF UAM FUNDS APPEARS HERE]
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999
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TABLE OF CONTENTS
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Shareholders' Letter........................................................ 1
Portfolio of Investments.................................................... 5
Statement of Assets and Liabilities......................................... 18
Statement of Operations..................................................... 19
Statement of Changes in Net Assets.......................................... 20
Financial Highlights........................................................ 21
Notes to Financial Statements............................................... 22
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
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May 21, 1999
Dear Shareholder:
We are pleased to present the semi-annual report for the Acadian Emerging Mar-
kets Portfolio. This commentary covers the six months from November 1, 1998 to
April 30, 1999, focusing on the portfolio's performance and some of the eco-
nomic and market conditions that impacted returns.
Portfolio Performance Review
For the six months ended April 30, 1999, the Acadian Emerging Markets Portfo-
lio returned 40.0%, versus 33.0% for the IFC Investable Index, a widely fol-
lowed emerging markets benchmark.
Economic and Market Conditions
The emerging markets rose sharply over the six-month period as a broad range
of markets recovered from the mid-1998 turmoil sparked by the devaluation of
the ruble. Latin American markets sank late in 1998 but rebounded during the
first few months of 1999, driven by strong returns in Brazil, Mexico and Co-
lombia. Investors were encouraged by economic gains in Mexico and the Brazil-
ian government's swift response to the currency crisis of 1998. Asian markets
were also robust, particularly Korea, which rose over 130% as the government
made strides toward resolving the nation's economic problems. Other strong
markets in Asia included the Philippines, Pakistan and Thailand. The Europe/
Middle East /Africa (EMEA) region saw more mixed results, from Russia's 100%+
return and double-digit gains in Greece and Turkey, to small declines in the
Czech Republic, Morocco and Portugal.
Investment Strategy Used During the Quarter
Acadian continues to pursue its highly structured and disciplined approach to
the emerging markets, using a database of information on over 60 emerging mar-
kets and 6000 stocks. Our emerging markets process emphasizes country selec-
tion but also examines a variety of factors at the stock level. As a result,
the portfolio was invested in 23 emerging equity markets, compared with 30 in
the benchmark. Key overweightings were Egypt, Pakistan, the Philippines, Rus-
sia, and Korea, while the portfolio was underweighted in Indonesia, India, Mo-
rocco, Portugal and Taiwan. The portfolio also retained a significant
overweighting in Malaysia, due to this market's removal from the benchmark in-
dex but the inability to sell out of the fund's holdings due to continued re-
strictions.
The resulting portfolio had what we believe to be very attractive valuation
characteristics, with a price/book value, price/sales ratio, and price-
/earnings ratio all
1
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
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significantly lower than the benchmark index. The portfolio also held stocks
that were on average somewhat smaller in capitalization size than those in the
IFC index, with relatively more assets in the mid-size $1-$5 billion capital-
ization range, and fewer assets in the larger-size range of $5-20 billion in
capitalization.
Commentary on the Fund's Investment Performance
As noted above, the Acadian Emerging Markets Portfolio returned 40.0% for the
six months ending April 30, 1999, versus a return of 33.0% for the IFC
Investable Index. Country allocations contributed 190 basis points of excess
return, while stock selection outperformed the index by 510 basis points. To-
tal value-added above the benchmark was 7.0%.
Helped Portfolio
The portfolio's performance during the period was enhanced by investments in:
. Turkey: A market overweighting led to 110 basis points of value added in
Turkey as this market soared over 89%. The market was driven by lower-
than-expected inflation, a positive outlook for company earnings, and
hopes that the long-term confrontation between the government and the
Kurds was approaching resolution. In addition, stock selection contrib-
uted value versus the benchmark, bringing the total outperformance to
160 basis points.
. Mexico: A small overweighting in Mexico added 20 basis points of value,
while stock selection outperformed by 120 basis points. Two of the
fund's larger holdings included the Mexican stocks Cemex and Telefonos
Mexico, which outperformed the index significantly over the last six
months. The Mexican economy was robust overall, with stronger than ex-
pected increases in economic growth.
. Russia: A small overweighting in Russia added 90 basis points of value.
The Russian market, after plunging in the late summer of 1998, returned
over 130% from the November through April time period. This strong re-
sult, driven by investors attracted to extremely undervalued assets,
meant that even a small overweighting in the market added significantly
to returns.
. Malaysia: The fund's weighting in Malaysia proved beneficial as this
market recovered strongly over the six months, part of a general im-
proved outlook on Asia and return to Asian markets by foreign investors.
The holdings added 190 basis points versus the benchmark.
. Other: Lack of holdings in Taiwan added 90 basis points relative to the
benchmark, while the underweightings in Morocco and Portugal added 60
basis points each.
2
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
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Hurt Portfolio
. South Africa: The portfolio saw 50 basis points of underperformance from
stock selection in South Africa. A troubled economic and social outlook
made for an unfavorable environment for the types of value-oriented
stocks favored by Acadian's investment process. Stocks in the consumer,
service, and financial arena saw most of the underperformance.
. Indonesia: The portfolio was underweighted in Indonesia, which appeared
to be in a highly volatile political and economic situation. The market
surged over 89% in the period, however, leading to a 70-basis-point
underperformance from the country weighting.
. Korea: The overweighting in Korea was successful, adding 50 basis points
to return. However, this was more than offset by stock selection, which
detracted 160 basis points as the portfolio's basket of stocks had a re-
turn lower than the index. The portfolio's Korean stocks returned over
100%, but even so could not quite match the extremely strong return of
the Korean market as a whole. Kepco (Korea Electric Power) was a signif-
icant portfolio holding whose returns lagged the index.
Current Outlook
The emerging markets appear poised for continued recovery, driven by compel-
ling valuations, falling volatility, improving global market liquidity, the
decline in risk premia, and the desire for diversification out of more-richly
valued U.S. and other developed market stocks among institutional investors.
Recent Acadian research has focused on the relationship between world market
volatility and emerging markets equity performance. Periods of high global
market volatility appear to be associated with troughs in emerging markets
performance, while declining volatility appears to support higher emerging
markets returns. 1999 to date has seen a moderating of volatility and an up-
surge in emerging markets performance--a trend we believe will continue.
If we can provide any further information, please contact me at (617) 946-
3500.
Sincerely,
[/S/CHURCHILL G. FRANKLIN]
Churchill G. Franklin
Senior Vice President
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.
3
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
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Definition of the Comparative Index
IFC Investable Index is an unmanaged index maintained by the International Fi-
nance Corporation. This index consists of 890 companies in 25 emerging equity
markets, and is designed to measure more precisely the returns portfolio man-
agers might receive from investment in emerging markets equity securities by
focusing on companies and markets that are legally and practically accessible
to foreign investors.
The comparative index assumes reinvestment of dividends and, unlike a
Portfolio's returns, does not reflect any fees or expenses. If such fees were
reflected in the comparative index's returns, the performance would have been
lower.
Please note that one cannot invest directly in an unmanaged index.
4
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
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<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 84.5%
Shares Value+
----------- ------------
<S> <C> <C>
ARGENTINA - 3.4%
Banco de Galicia y Buenos Aires S.A., Class B....... 142,932 $ 822,204
*Capex S.A., Class A................................ 8,500 37,841
Central Puerto S.A., Class B........................ 78,000 196,643
*Citicorp Equity Investments S.A., Class B.......... 30,567 102,443
Juan Minetti S.A. .................................. 33,292 94,922
Molinos Rio de la Plata S.A., Class B............... 56,583 99,062
Siderar S.A., Class A............................... 13,904 42,842
Siderca S.A., Class A............................... 347,600 598,123
Telecom Argentina S.A., Class B..................... 139,000 952,550
Telefonica de Argentina, Class B.................... 209,100 778,179
YPF S.A., Class D................................... 27,400 1,147,172
------------
4,871,981
------------
BRAZIL - 1.9%
Albarus S.A. ....................................... 203,000 110,127
Brahma.............................................. 172 62
Brasilit S.A. ...................................... 229,250 179,641
*Ceval Alimentos S.A. .............................. 22,091,911 33,291
Cia Siderurgica Nacional............................ 8,300,000 177,607
Companhia de Saneamento de Estado de Sao Paulo...... 9,700,000 812,660
*Embratel Participacoes S.A. ....................... 794 7
Ericsson Telecomunicacoes S.A. ..................... 40,800,000 836,166
Mineracao da Trindade-Samitri....................... 5,209,050 62,797
*Santista Alimentos S.A. ........................... 101,667 28,803
*Seara Alimentos S.A. .............................. 22,091,911 6,525
Serrana S.A. ....................................... 3,909 1
Sociedade de Participacoes Cimente.................. 131,000 188,722
Tele Celular Sul Participacoes S.A. ................ 794 1
Tele Centro Oeste Celular Participacoes S.A. ....... 794 1
*Tele Centro Sul Participacoes S.A. ................ 46,311,794 254,031
Tele Leste Celular Participacoes S.A. .............. 794 --
Tele Leste Celular Participacoes S.A. .............. 794 4
Tele Nordeste Celular Participacoes S.A. ........... 794 1
Tele Norte Celular Participacoes S.A. .............. 794 --
Tele Norte Leste Participacoes S.A.................. 794 8
Tele Sudeste Celular Participacoes S.A. ............ 794 3
Telemig Celular Participacoes S.A. ................. 794 1
Telesp Participacoes S.A. .......................... 794 11
------------
2,690,470
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
<TABLE>
<CAPTION>
Shares Value+
----------- ------------
<S> <C> <C>
CHILE - 5.1%
A.F.P. Provida S.A. ADR.............................. 14,900 $ 299,863
Banco Santander Chile ADR............................ 20,500 353,625
Banco Santiago S.A. ADR.............................. 5,500 97,625
Cia Cervecerias Unidas S.A. ADR...................... 22,600 555,112
Cia de Telecomunicaciones de Chile S.A. ADR ......... 56,300 1,488,431
Distribucion y Servicio D&S S.A. ADR................. 17,700 267,713
EmboteLiadora Andina S.A. ADR........................ 6,900 124,631
*Empressa Nacional de Electricidad S.A. ADR.......... 80,800 1,131,200
Enersis S.A. ADR..................................... 42,500 815,469
Gener S.A. ADR....................................... 31,600 632,000
Laboratorio Chile ADR................................ 10,700 191,263
Madeco S.A. ADR...................................... 17,100 158,175
Maderas y Sinteticos S.A. ADR........................ 30,300 291,638
Santa Isabel S.A. ADR................................ 6,700 67,000
Sociedad Quimica y Minera Chile S.A. ADR............. 14,100 519,937
Vina Concho y Tora S.A. ADR.......................... 9,100 295,181
------------
7,288,863
------------
CHINA - 2.2%
Guangdong Electric Power Development Co., Ltd., Class
B................................................... 315,120 116,282
Guangshen Railway Co., Ltd., Class H................. 1,960,000 257,945
*Jilin Chemical Industrial Co., Ltd., Class H........ 1,500,000 104,509
Maanshan Iron & Steel Co., Class H................... 2,540,000 122,895
Qingling Motors Co., Class H......................... 1,896,000 296,001
Shanghai Dazhong Taxi Co., Class B................... 762,610 239,460
Shanghai Jinqiao Export Processing Zone Development
Co., Ltd., Class B.................................. 365,300 47,489
Shanghai Petrochemical Co., Ltd., Class H............ 2,998,000 560,880
Shanghai Shangling Electric Appliances Co., Ltd.,
Class B............................................. 284,000 61,912
*Shanghai Tyre & Rubber Co., Ltd., Class B........... 550,000 50,600
*Shanghai Waigaoqiao Free Trade Zone Development Co.,
Ltd., Class B....................................... 353,360 65,018
Shenzhen China Bicycle Co., Ltd., Class B............ 294,801 16,736
Tsingtao Brewing Co., Ltd., Class H.................. 992,000 144,631
Yizheng Chemical Fibre Co., Ltd., Class H............ 5,010,000 723,979
Zhenhai Refining and Chemical Co., Ltd., Class H..... 1,638,000 359,280
------------
3,167,617
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
<TABLE>
<CAPTION>
Shares Value+
----------- ------------
<S> <C> <C>
CZECH REPUBLIC - 2.2%
*Ceska Sporitelna A.S. .............................. 87,870 $ 300,761
*Ceske Energeticke Zavody A.S. ...................... 363,459 512,982
*Komercni Banka A.S. ................................ 5,789 70,577
*SPT Telecom A.S. ................................... 142,857 2,083,716
Unipetrol A.S. ...................................... 206,205 225,433
------------
3,193,469
------------
EGYPT - 2.4%
Al-Ahram Beverages Co. S.A.E. ....................... 1,350 89,252
Alexandria National Iron & Steel Co. ................ 7,000 298,177
Commercial International Bank........................ 102,080 1,010,227
Eastern Co. for Tobacco & Cigarettes................. 8,600 220,802
Egypt American Bank.................................. 5,400 76,191
Egypt International Pharmaceutical Industries
Corp. .............................................. 1,700 85,930
Helwan Portland Cement Co. .......................... 21,800 373,351
Madinet NASR for Housing & Development............... 2,400 72,473
Middle & West Delta Flour Mills...................... 11,800 99,667
Misr Elgedida Heliopolis Housing..................... 1,600 81,225
Misr International Bank.............................. 7,300 170,088
National Societe Generale Bank....................... 8,250 144,444
Suez Cement Co. ..................................... 30,859 529,397
Toura Portland Cement Co. ........................... 8,500 169,851
Upper Egypt Flour Mills.............................. 5,110 55,163
------------
3,476,238
------------
GREECE - 4.8%
Alpha Credit Bank.................................... 17,988 1,284,732
Commercial Bank of Greece S.A. ...................... 18,028 3,154,593
Hellenic Bottling Co. S.A. .......................... 71,200 2,108,054
National Bank of Greece ............................. 2,532 172,661
Titan Cement Co. .................................... 3,200 247,249
------------
6,967,289
------------
HONG KONG - 1.4%
*China Shipping Development Co., Ltd., Class H....... 2,006,000 245,881
China Telecom (Hong Kong), Ltd. ..................... 793,200 1,811,450
------------
2,057,331
------------
HUNGARY - 0.1%
EGIS Rt.............................................. 5,900 119,696
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
<TABLE>
<CAPTION>
Shares Value+
----------- ------------
<S> <C> <C>
ISRAEL - 2.6%
Bank Hapoalim Ltd. .................................. 401,900 $ 961,215
Bank Leumi Le-Israel................................. 252,000 432,149
Clal (Israel) Ltd. .................................. 34,700 984,527
Elbit Medical Imaging Ltd. .......................... 27,700 240,179
Elbit Systems Ltd. .................................. 26,200 369,787
Elco Holdings Ltd. .................................. 23,200 135,225
Koor Industries Ltd. ................................ 5,800 628,628
Supersol Ltd. ....................................... 9,281 25,148
------------
3,776,858
------------
KOREA - 8.3%
Cheil Foods & Chemicals.............................. 13,017 690,276
Daewoo Corp. ........................................ 27,100 148,502
Daewoo Heavy Industries.............................. 44,000 194,444
Dongkuk Steel Mill Co. .............................. 24,700 177,765
Hana Bank............................................ 24,808 323,673
Hansol Paper Co. .................................... 36,400 612,795
Hyundai Motor Co. ................................... 4,107 68,623
Inchon Iron & Steel Co. ............................. 73,375 509,549
Keum Kang Development Industries Co. ................ 17,932 227,923
Korea Electric Power Corp. ADR....................... 109,000 3,137,879
Korea Iron & Steel Wire Ltd. ........................ 1,250 134,680
L.G. Chemical Ltd. .................................. 13,404 231,298
LG Information & Communication Ltd. ................. 9,982 470,532
Pacific Corp. ....................................... 17,000 379,209
Samsung Corp. ....................................... 16,000 224,916
Samsung Electric Devices............................. 847 43,491
Samsung Electro-Mechanics Co. ....................... 16,828 396,619
Samsung Electronics ................................. 21,465 1,651,432
Shinsegae Department Store Co. ...................... 4,000 138,047
SK Corp. ............................................ 53,405 1,123,843
Ssangyong Oil Refining Co., Ltd. .................... 51,780 1,046,061
------------
11,931,557
------------
(b)MALAYSIA - 6.5%
Austral Enterprises Bhd. ............................ 181,000 176,881
Bandar Raya Developments Bhd. ....................... 563,000 191,487
Berjaya Capital Bhd. ................................ 211,000 80,862
Berjaya Group Bhd. .................................. 394,000 84,462
Boustead Holdings Bhd. .............................. 132,000 103,703
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
<TABLE>
<CAPTION>
Shares Value+
----------- ------------
<S> <C> <C>
MALAYSIA - continued
Carlsberg Brewery Malaysia Bhd. ...................... 79,000 $ 234,635
Datuk Keramat Holdings Bhd. .......................... 171,000 39,320
Edaran Otomobil Nasional Bhd. ........................ 55,000 121,856
Genting Bhd. ......................................... 248,000 712,814
Golden Hope Plantations Bhd. ......................... 738,000 576,259
Guinness Anchor Bhd. ................................. 238,000 226,884
Guthrie Ropel Bhd. ................................... 79,000 63,578
Hicom Holdings Bhd. .................................. 88,000 36,043
Highlands & Lowlands Bhd. ............................ 160,000 104,623
Hong Leong Credit Bhd. ............................... 46,000 41,648
Hong Leong Properties Bhd. ........................... 172,000 39,962
IJM Corp. Bhd. ....................................... 650,000 395,449
IOI Corp. Bhd. ....................................... 596,000 344,038
IOI Properties Bhd. .................................. 67,000 77,672
Jaya Tiasa Holdings Bhd. ............................. 59,000 81,258
Kuala Lumpur Kepong Bhd. ............................. 427,000 542,060
Kulim (Malaysia) Bhd. ................................ 176,000 87,262
Malakoff Bhd. ........................................ 386,000 827,473
Malaysian Airline System Bhd. ........................ 285,000 204,790
Malaysian International Shipping Bhd. (Foreign)....... 149,000 214,132
Malaysian Oxygen Bhd. ................................ 17,000 33,084
Negara Properties (Malaysia) Bhd. .................... 36,000 31,904
Pelangi Bhd. ......................................... 197,000 66,060
Perlis Plantations Bhd. .............................. 61,750 67,740
Perusahaan Otomobil Nasional Bhd. .................... 66,000 122,515
Petronas Dagangan Bhd. ............................... 101,000 91,928
Petronas Gas Bhd. .................................... 147,000 311,605
PPB Oil Palms Bhd. ................................... 129,000 73,229
*Rashid Hussain Bhd. ................................. 169,000 124,676
Rothmans of Pall Mall Bhd. ........................... 39,000 256,886
Sime Darby Bhd. ...................................... 558,000 580,053
Tan Chong Motor Holdings Bhd. ........................ 302,000 115,013
Telekom Malaysia Bhd. ................................ 543,000 1,456,671
UMW Holdings Bhd. .................................... 292,000 381,174
*Westmont Industries Bhd. ............................ 481,000 --
------------
9,321,689
------------
MEXICO - 12.1%
ALFA, S.A. de C.V., Class A........................... 57,000 224,976
*Altos Hornos de Mexico S.A........................... 178,000 107,937
Cemex S.A. CPO........................................ 192,645 896,993
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
<TABLE>
<CAPTION>
Shares Value+
----------- ------------
<S> <C> <C>
MEXICO - continued
Cemex S.A., Class B................................... 294,837 $ 1,369,627
*Cifra S.A. de C.V., Class V.......................... 25,619 48,547
Controladora Comercial Mexicana S.A. de C.V. ......... 556,000 573,159
*Corporacion GEO, S.A. de C.V., Series B.............. 89,000 371,034
Empresas ICA Sociedad Controladora.................... 667,800 728,904
Fomento Economico Mexicano, S.A. de C.V. ............. 296,000 1,057,715
Grupo Carso S.A. de C.V., Series A1................... 91,000 438,988
Grupo Casa Autrey S.A. de C.V. ....................... 110,000 67,894
Grupo Celanese S.A., Class B1......................... 99,000 244,311
Grupo Continental, S.A. .............................. 69,000 240,585
*Grupo Financiero Banamex Accival S.A. de C.V. ....... 455,000 1,160,287
Grupo Financiero Inbursa S.A. de C.V., Class B........ 87,791 284,239
Grupo Herdez S.A., Series B........................... 301,000 101,691
Grupo Industrial Bimbo S.A. de C.V., Class A.......... 88,000 189,626
*Grupo Industrial Maseca, Class B..................... 239,000 165,631
Grupo Mexico S.A., Class B............................ 48,000 186,075
*Hylsamex S.A. ....................................... 93,000 268,879
Industrias Penoles S.A. .............................. 78,000 263,942
Telefonos de Mexico S.A. de C.V., Class L............. 1,639,300 6,248,333
Tubos de Acero de Mexico, S.A. ....................... 76,000 847,645
Vitro S.A., Series A ................................. 628,000 1,319,242
------------
17,406,260
------------
PAKISTAN - 2.2%
Engro Chemicals Pakistan Ltd. ........................ 18,600 31,178
Fauji Fertilizer Co. Ltd. ............................ 50,000 53,178
*Hub Power Co. ....................................... 3,146,500 1,046,750
ICI Pakistan.......................................... 2,316,000 436,981
Pakistan State Oil Co. Ltd. .......................... 23,400 41,479
Pakistan Telecom Corp., Class A....................... 3,830,000 1,555,581
Shell Pakistan Ltd. .................................. 25,500 83,565
------------
3,248,712
------------
PHILIPPINES - 3.9%
*C & P Homes, Inc. ................................... 7,961,700 252,085
*DMCI Holdings, Inc. ................................. 3,442,700 203,474
Equitable Banking Corp. .............................. 669,600 1,563,578
Far East Bank & Trust Co. ............................ 50,300 84,939
*JG Summit Holding, Inc. ............................. 1,079,626 123,915
Manila Electric Co. .................................. 166,944 638,704
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
<TABLE>
<CAPTION>
Shares Value+
----------- ------------
<S> <C> <C>
PHILIPPINES - continued
Metropolitan Bank & Trust Co. ........................ 98,684 $ 989,444
Petron Corp. ......................................... 2,160,600 262,236
Philippine Commercial International Bank.............. 72,800 480,211
Philippine Long Distance Telephone Co. ............... 29,500 957,388
San Miguel Corp., Class B............................. 10,900 23,295
SM Prime Holdings, Inc. .............................. 149,800 33,992
------------
5,613,261
------------
POLAND - 2.3%
*Bank Handlowy w Warszawie............................ 81,500 990,756
Bank Przemyslowo-Handlowy S.A. ....................... 4,200 214,866
Bank Rozwoju Eksportu S.A. ........................... 13,000 289,730
Bank Slaski S.A. ..................................... 6,700 303,736
BIG Bank Gdanski S.A. ................................ 204,100 359,249
Debica S.A. .......................................... 26,784 328,992
*Exbud S.A. .......................................... 32,700 244,308
*Okocimskie Zaklady Piwowarskie S.A. ................. 17,300 88,504
Stomil Olsztyn S.A. .................................. 46,800 219,273
Wielkopolski Bank Kredytowy S.A. ..................... 29,700 162,472
Zaklady Piwowarskie w Zywcu S.A. ..................... 900 93,909
------------
3,295,795
------------
PORTUGAL - 1.5%
Banco Pinto & Sotto Mayor S.A. ....................... 84,804 1,580,611
Corticeira Amorim S.A. ............................... 16,000 180,280
Empresa Fabril Maquinas Electricicas, S.A. ........... 31,200 275,768
Mota e Companhia S.A. ................................ 10,300 108,224
Somague-Sociedade Gestora de Participacoes S.A. ...... 13,700 44,848
------------
2,189,731
------------
RUSSIA - 2.8%
AO Tatneft ADR........................................ 61,700 161,963
Lukoil Holding ADR.................................... 45,110 1,672,679
*Rostelecom ADR....................................... 50,100 216,056
*Surgutneftegaz ADR................................... 157,300 1,202,558
Unified Energy Systems GDR............................ 148,470 742,350
------------
3,995,606
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
<TABLE>
<CAPTION>
Shares Value+
----------- ------------
<S> <C> <C>
SOUTH AFRICA - 8.9%
ABSA Group Ltd. ...................................... 290,100 $ 1,524,335
Adcock Ingram Ltd. ................................... 3,484 9,840
Allied Electronics Corp., Ltd. ....................... 40,600 48,000
Anglovaal Industries Ltd. ............................ 89,267 111,401
Anglovaal Mining Ltd. ................................ 19,200 108,769
Barlow Ltd. .......................................... 109,000 653,284
Beverage & Consumer Industry Holdings Ltd. ........... 4,545 88,960
C.G. Smith Foods Ltd. ................................ 20,400 186,246
Delta Electrical Industries Ltd. ..................... 81,900 316,035
Edgars Stores Ltd. ................................... 1,451 7,386
Ellerine Holdings Ltd. ............................... 17,510 69,724
Fedsure Holdings Ltd. ................................ 17,500 159,195
Gold Fields Ltd. ..................................... 1 6
*Imperial Holdings Ltd. .............................. 84,160 690,969
Johannesburg Consolidated............................. 34,000 218,571
Kersaf Investments Ltd. .............................. 24,385 85,688
Liberty Holdings Ltd. ................................ 4,500 172,906
Liberty Life Association of Africa Ltd. .............. 42,800 616,348
LibLife Strategic Investments Ltd. ................... 121,850 184,076
Metro Cash & Carry Ltd. .............................. 89,502 74,952
Murray & Roberts Holdings Ltd. ....................... 75,500 46,490
Nampak Ltd. .......................................... 358,200 755,808
Nedcor Ltd. .......................................... 74,137 1,619,084
Pepkor Ltd. .......................................... 61,300 271,773
Plate Glass & Shatterprufe Industries Ltd. ........... 35,700 204,879
Polfin Ltd. .......................................... 103,600 125,885
Premier Group (The) Ltd. ............................. 9,565 3,738
Rembrandt Controlling Invetments Ltd. ................ 119,700 540,517
Rembrandt Group Ltd. ................................. 61,300 465,538
Safmarine & Rennies Holdings Ltd. .................... 39,900 21,490
Sappi Ltd. ........................................... 36,100 260,821
Sasol Ltd. ........................................... 132,500 935,550
Siltek Ltd. .......................................... 92,800 115,505
South African Breweries Ltd. ......................... 27,368 229,190
*South African Breweries plc.......................... 1,637 13,709
South African Iron & Steel Industrial Corp., Ltd. .... 218,600 68,200
Standard Bank Investment Corp., Ltd. ................. 237,100 720,255
Sun International (South Africa) Ltd. ................ 43,421 7,059
Tiger Oats Ltd. ...................................... 101,500 908,333
Tongaat-Hulett Group Ltd. ............................ 26,981 187,405
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
<TABLE>
<CAPTION>
Shares Value+
----------- ------------
<S> <C> <C>
SOUTH AFRICA - continued
Toyota South Africa Ltd. ............................ 6,100 $ 15,525
Woolworths Holdings Ltd. ............................ 1,373 1,163
------------
12,844,608
------------
SRI LANKA - 0.2%
*Blue Diamond Jewelry World.......................... 103,890 2,052
Development Finance Corp. of Ceylon.................. 56,466 91,676
Hayleys Ltd. ........................................ 42,000 69,397
John Keells Holdings Ltd. ........................... 44,406 122,499
Sampath Bank Ltd. ................................... 105,000 67,134
------------
352,758
------------
THAILAND - 2.3%
*Bangkok Expressway Public Co., Ltd. (Foreign)....... 997,100 875,358
Ch. Harnchang Public Co., Ltd. (Foreign)............. 48,900 83,878
Compass East Industry Public Co., Ltd. (Foreign)..... 29,800 112,696
*First Bangkok City Bank Ltd. (Foreign).............. 272,600 --
*Nava Finance and Securities Public Co., Ltd.
(Foreign)........................................... 167,300 --
Siam Pulp & Paper Public Co., Ltd. (Foreign)......... 271,200 600,713
*TelecomAsia Corp. Public Co., Ltd. (Foreign)........ 467,200 403,846
*Thai Airways International Ltd. (Foreign)........... 660,700 1,231,450
*Thai Plastic & Chemical Public Co., Ltd. (Foreign).. 43,000 55,754
------------
3,363,695
------------
TURKEY - 4.2%
Akbank TAS........................................... 19,827,500 632,884
Arcelik AS........................................... 11,773,000 465,978
*Aselsan Elektronik Sanayi Ve Ticaret AS............. 5,098,000 146,453
*Cimentas AS......................................... 2,405,340 52,208
Dogan Sirketler Grubu Holding AS..................... 31,946,000 399,723
*Eregli Demir Ve Celik Fabrikalari TAS............... 15,760,000 289,758
Finans Bank AS....................................... 17,786,199 88,565
Hurriyet Gazetecilik Ve Matbaacilik AS............... 10,316,810 179,143
*Ihlas Holding AS.................................... 2,912,450 252,862
Netas Telekomunik.................................... 3,359,200 78,917
Tat Konserve Sanayii AS.............................. 1,655,496 66,582
*Tofas Turk Otomobil Fabrikasi AS.................... 46,837,700 603,995
*Turk Sise Ve Cam Fabrikalari AS..................... 3 --
Turkie Is Bankasi.................................... 21,743,000 1,068,800
*Turkiye Garanti Bankasi AS.......................... 23,475,500 1,064,043
*Vestel Elektronik Sanayi ve Ticaret AS.............. 4,509,000 483,588
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
<TABLE>
<CAPTION>
Shares Value+
----------- ------------
<S> <C> <C>
TURKEY - continued
Yapi ve Kredi Bankasi AS............................. 9,953,130 $ 238,910
*Yasarbank AS........................................ 2 --
------------
6,112,409
------------
VENEZUELA - 3.2%
Banco Provincial S.A. ............................... 83,000 78,613
Banco Venezolano de Credito.......................... 39,335 148,026
Corporacion Venezolana de Cementos, S.A.C.A. ........ 163,000 634,080
Electricidad de Caracas.............................. 7,939,647 3,303,430
Mavesa S.A. ......................................... 2,136,000 118,496
Siderurgica Venezolana Sivensa, Class A.............. 7,070,500 328,861
Siderurgica Venezolana Sivensa, Class B.............. 46 2
------------
4,611,508
------------
TOTAL COMMON STOCKS (Cost $118,881,971).......................... 121,897,401
------------
PREFERRED STOCKS - 10.4%
BRAZIL - 10.4%
Banco do Brasil S.A. (Preferred)..................... 7,100,000 44,723
Banco Itau S.A. ..................................... 5,100,000 2,705,244
Bombril S.A. ........................................ 177,420,000 636,316
Brahma............................................... 1,500,909 711,100
Centrais Geradoras do Sul do Brasil S.A. ............ 1,020 1
Cia Brasileira de Petroleo Ipiranga.................. 30,600,000 249,005
Cia Brasileira de Petroleo Ipiranga S.A. ............ 43,400,000 303,198
Cia Energetica de Sao Paulo.......................... 31,900,000 671,073
CIA Vale do Rio Doce................................. 19,960 --
*Companhia Brasileira de Distribuicao Grupo Pao de
Acucar ADR.......................................... 5,300,000 93,892
*Elektro-Eletricidade e Servicos S.A. ............... 14,648,638 79,468
*Embratel Participacoes S.A. Acucar ADR.............. 19,680,060 320,883
Gerdau Metalurgica S.A. Acucar ADR................... 8,821,960 212,706
Gerdau S.A. Acucar ADR............................... 29,216,866 449,084
Itausa Investimentos Itau S.A. ...................... 818,290 443,919
Petrobras Distribuidora S.A. ........................ 21,850,000 246,290
Petroleo Brasiliero S.A. ............................ 600,000 97,288
Refinaria de Petroleo Ipiranga....................... 16,800,000 121,519
*Serrana S.A. Acucar ADR............................. 4,661 1
Sider de Tubarao..................................... 719 6
Tele Celular Sul Participacoes S.A. Acucar ADR....... 60 --
Tele Centro Oeste Celular Participacoes S.A. Acucar
ADR................................................. 60 --
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
PREFERRED STOCKS - continued
<TABLE>
<CAPTION>
Shares Value+
----------- ------------
<S> <C> <C>
BRAZIL - continued
*Tele Centro Sul Participacoes S.A. Acucar ADR....... 19,680,060 $ 213,527
Tele Leste Celular Participacoes S.A. Acucar ADR..... 60 --
Tele Nordeste Celular Participacoes S.A. Acucar ADR.. 60 --
Tele Norte Celular Participacoes S.A. Acucar ADR..... 60 --
Tele Norte Leste Participacoes S.A. Acucar ADR....... 83,780,060 1,464,510
Tele Sudeste Celular Participacoes S.A. Acucar ADR... 19,680,060 112,102
Telemig Celular Participacoes S.A. Acucar ADR........ 60 --
Telepar S.A ......................................... 1,810,000 258,790
Telesp Celular S.A. ................................. 13,900,000 594,876
Telesp S.A. ......................................... 22,000,000 2,745,027
Telesp S.A. Acucar ADR............................... 19,680,060 195,733
Telesp S.A. Acucar ADR............................... 76,180,060 1,919,425
------------
14,889,706
------------
SOUTH AFRICA - 0.0%
*Allied Electronics Corp., Ltd. Acucar ADR........... 26,282 27,620
------------
TOTAL PREFERRED (Cost $14,583,461)............................... 14,917,326
------------
RIGHTS - 0.1%
<CAPTION>
No. of
Rights
-----------
<S> <C> <C>
BRAZIL - 0.0%
*Telesp S.A., expiring 5/25/99....................... 215,600 --
------------
CHILE - 0.0%
*Sociedad Quimica Y Minera Chile S.A., expiring
4/8/99.............................................. 815 12
------------
GREECE - 0.0%
*National Bank of Greece, expiring 4/27/99........... 253 7,807
------------
KOREA - 0.0%
*Hyundai Motor Co., Ltd., expiring 5/18/99........... 2,772 15,517
------------
TURKEY - 0.1%
*Eregli Demir Ve Celik Fabrikalari T.A.S., expiring
4/6/99.............................................. 3,152,000 38,635
------------
TOTAL RIGHTS (Cost $86,672)...................................... 61,971
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
SHORT-TERM INVESTMENT - 4.1%
<TABLE>
<CAPTION>
Face
Amount Value+
----------- ------------
<S> <C> <C>
REPURCHASE AGREEMENT - 4.1%
Chase Securities, Inc. 4.87%, dated 4/30/99, due
5/03/99, to be repurchased at $5,966,420,
collateralized by $5,515,463 of various U.S.
Treasury Notes, 5.50%-7.00%, due 5/15/06-5/15/08,
valued at $5,967,143 (Cost $5,964,000)............. $ 5,964,000 $ 5,964,000
------------
TOTAL INVESTMENTS - 99.1% (Cost $139,516,104)(a)................ 142,840,698
------------
OTHER ASSETS AND LIABILITIES (NET) - 0.9%....................... 1,357,259
------------
NET ASSETS--100%................................................ $144,197,957
============
</TABLE>
+ See Note A to Financial Statements.
* Non-Income Producing Security
ADR American Depositary Receipt
GDR Global Depositary Receipt
(a) The cost for federal income tax purposes was $139,516,104. At April 30,
1999, net unrealized appreciation for all securities based on tax cost
was $3,324,594. This consisted of aggregate gross unrealized appreciation
for all securities of $27,094,187 and aggregate gross unrealized
depreciation for all securities of $23,769,593.
(b) Effective September 1, 1998, Malaysia's central bank imposed currency
controls restricting foreign exchange transactions and the repatriation
of foreign currency for at least a one year period. The twelve month
holding period starts on the date of acquisition or September 1, 1998,
whichever is later. The proceeds of any sale of Malaysian securities
during that holding period must be held in Malaysian ringgits or
reinvested in Malaysian securities until the end of the holding period,
at the earliest September 1, 1999. The Manager has assessed the risks
inherent to these controls and has taken action to limit those risks.
Malaysian securities have been fair valued as described in Note A to the
financial statements.
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
At April 30, 1999, sector diversification of the Portfolio was as follows:
<TABLE>
<CAPTION>
% of Market
Industry Net Assets Value
- -------- ---------- ------------
<S> <C> <C>
Automotive............................................. 1.0% $ 1,469,172
Banks.................................................. 16.7 24,118,107
Basic Industries....................................... 0.4 572,676
Beverages, Food & Tobacco.............................. 5.2 7,505,043
Building Materials..................................... 1.1 1,545,591
Capital Equipment...................................... 0.4 539,710
Chemicals.............................................. 2.3 3,255,692
Construction........................................... 3.5 5,017,695
Consumer Cyclical...................................... 0.9 1,329,488
Electronics............................................ 4.9 7,060,444
Energy................................................. 4.7 6,738,169
Entertainment & Leisure................................ 0.7 984,704
Financial Services..................................... 4.0 5,834,280
Health Care............................................ 0.3 431,441
Holding Company........................................ 5.0 7,226,440
Home Furnishings & Appliances.......................... 0.5 732,769
Industrial............................................. 2.1 3,071,853
Insurance.............................................. 0.5 775,544
Iron and Steel......................................... 1.5 2,142,980
Manufacturing.......................................... 3.6 5,209,207
Metals................................................. 0.9 1,269,934
Mining................................................. 0.1 108,775
Multi-Industry......................................... 0.9 1,228,768
Oil & Gas.............................................. 4.6 6,666,905
Paper & Packaging...................................... 1.5 2,230,137
Pharmaceuticals........................................ 0.2 273,520
Real Estate............................................ 0.4 553,584
Repurchase Agreement................................... 4.1 5,964,000
Retail................................................. 1.1 1,535,891
Telecommunications..................................... 19.4 28,024,409
Transportation......................................... 2.3 3,269,016
Utilities.............................................. 4.3 6,154,754
----- ------------
Total Investments.................................... 99.1% $142,840,698
Other Assets and Liabilities (Net)..................... 0.9 1,357,259
----- ------------
Net Assets........................................... 100.0% $144,197,957
===== ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<S> <C>
Assets
Investments, at Cost........................................... $ 139,516,104
=============
Investments, at Value - Note A................................. $ 142,840,698
Cash........................................................... 49
Foreign Currency, at Value (Cost $546,111) - Note A............ 545,368
Receivable for Investments Sold................................ --
Dividends Receivable........................................... 566,315
Receivable for Portfolio Shares Sold........................... 424,368
Interest Receivable............................................ 807
Other Assets................................................... 628
-------------
Total Assets.................................................. 144,378,233
-------------
Liabilities
Payable for Shares Redeemed.................................... 18
Payable for Investment Advisory Fees - Note B.................. 108,199
Payable for Administrative Fees - Note C....................... 16,800
Payable for Custodian Fees - Note D............................ 41,354
Payable for Account Services Fees - Note F..................... 31
Payable for Directors' Fees - Note G........................... 1,468
Other Liabilities.............................................. 12,406
-------------
Total Liabilities............................................. 180,276
-------------
Net Assets..................................................... $ 144,197,957
=============
Net Assets Consist of:
Paid in Capital................................................ $ 156,865,774
Undistributed Net Investment Income............................ 506,360
Accumulated Net Realized Loss.................................. (16,488,252)
Unrealized Appreciation........................................ 3,314,075
-------------
Net Assets..................................................... $ 144,197,957
=============
Institutional Class Shares
Shares Issued and Outstanding ($0.001 par value) (Authorized
25,000,000)................................................... 15,458,840
Net Asset Value, Offering and Redemption Price Per Share....... $9.33
=====
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
FOR THE SIX MONTHS ENDED APRIL 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
<TABLE>
<S> <C>
Investment Income
Dividends........................................................... $ 1,626,285
Interest............................................................ 73,752
Less: Foreign Taxes Withheld........................................ (105,146)
-----------
Total Income....................................................... 1,594,891
-----------
Expenses
Investment Advisory Fees - Note B................................... 536,924
Custodian Fees - Note D............................................. 125,164
Administrative Fees - Note C........................................ 98,686
Printing Fees....................................................... 13,076
Registration and Filing Fees........................................ 9,309
Audit Fees.......................................................... 8,320
Legal Fees.......................................................... 4,428
Shareholder Servicing Fees.......................................... 3,437
Directors' Fees - Note G............................................ 2,734
Account Services Fees - Note F...................................... 22
Other Expenses...................................................... 7,002
-----------
Net Expenses Before Expense Offset................................. 809,102
Expense Offset - Note A............................................. (639)
-----------
Net Expenses After Expense Offset.................................. 808,463
-----------
Net Investment Income............................................... 786,428
-----------
Net Realized Loss on:
Investments........................................................ (3,487,512)
Foreign Exchange Transactions...................................... (579,725)
-----------
Total Net Realized Loss............................................. (4,067,237)
-----------
Net Change in Unrealized Appreciation/Depreciation on:
Investments........................................................ 42,160,522
Foreign Exchange Translations...................................... (12,290)
-----------
Total Net Change in Unrealized Appreciation/Depreciation............ 42,148,232
-----------
Net Gain............................................................ 38,080,995
-----------
Net Increase in Net Assets Resulting from Operations................ $38,867,423
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Year Ended
1999 October 31,
(Unaudited) 1998
------------ -----------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income.............................. $ 786,428 $ 1,296,261
Net Realized Loss.................................. (4,067,237) (12,578,798)
Net Change in Unrealized
Appreciation/Depreciation......................... 42,148,232 (28,207,691)
------------ -----------
Net Increase (Decrease) in Net Assets Resulting
from Operations................................... 38,867,423 (39,490,228)
------------ -----------
Distributions:
Net Investment Income.............................. (1,243,820) (991,001)
Net Realized Gain.................................. -- (3,581,762)
------------ -----------
Total Distributions................................ (1,243,820) (4,572,763)
------------ -----------
Capital Share Transactions: (1)
Issued............................................. 42,206,394 71,706,554
In Lieu of Cash Distributions...................... 1,215,148 4,432,628
Redemption Fees - Note J........................... -- 74,631
Redeemed........................................... (25,512,430) (23,705,162)
------------ -----------
Net Increase from Capital Share Transactions....... 17,909,112 52,508,651
------------ -----------
Total Increase..................................... 55,532,715 8,445,660
Net Assets:
Beginning of Period................................ 88,665,242 80,219,582
------------ -----------
End of Period (including undistributed net
investment income of $506,360 and $963,752,
respectively)..................................... $144,197,957 $88,665,242
============ ===========
(1) Shares Issued and Redeemed:
Shares Issued...................................... 5,599,602 8,446,393
In Lieu of Cash Distributions...................... 173,345 477,114
Shares Redeemed.................................... (3,456,863) (2,891,874)
------------ -----------
2,316,084 6,031,633
============ ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Years Ended October 31,
1999 ------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
----------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 6.75 $ 11.28 $ 12.12 $ 11.23 $ 14.00 $ 11.34
-------- ------- ------- ------- ------- -------
Income from Investment
Operations.............
Net Investment Income
(Loss)................ 0.05 0.11 0.16 0.13 0.05 (0.03)
Net Realized and
Unrealized
Gain (Loss)........... 2.62 (3.99)++ (0.85) 0.84 (2.82) 2.74
-------- ------- ------- ------- ------- -------
Total from Investment
Operations............ 2.67 (3.88) (0.69) 0.97 (2.77) 2.71
-------- ------- ------- ------- ------- -------
Distributions:
Net Investment Income.. (0.09) (0.14) (0.12) (0.02) -- --
Net Realized Gain...... -- (0.51) (0.03) (0.06) -- (0.05)
-------- ------- ------- ------- ------- -------
Total Distributions.... (0.09) (0.65) (0.15) (0.08) -- (0.05)
-------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period................. $ 9.33 $ 6.75 $ 11.28 $ 12.12 $ 11.23 $ 14.00
======== ======= ======= ======= ======= =======
Total Return............ 39.99%** (36.00)% (5.71)% 8.72% (19.79)%+ 23.97%+
======== ======= ======= ======= ======= =======
Ratios and Supplemental
Data
Net Assets, End of
Period (Thousands)..... $144,198 $88,665 $80,220 $69,649 $33,944 $5,558
Ratio of Expenses to
Average
Net Assets............. 1.50%* 1.61%@ 1.50% 1.79% 1.78% 2.07 %
Ratio of Net Investment
Income (Loss) to
Average Net Assets..... 1.46%* 1.60% 1.31% 1.29% 0.86% (0.25)%
Portfolio Turnover
Rate................... 15% 32% 28% 11% 21% 9 %
Ratio of Voluntarily
Waived Fees and
Expenses Assumed by
Affiliates to Average
Net Assets............. N/A N/A N/A N/A 0.40% 1.00 %
Ratio of Expenses to
Average Net Assets
Including Expense
Offsets................ 1.50%* 1.61% 1.50% 1.79% 1.77% N/A
</TABLE>
* Annualized
** Not Annualized
+ Total return would have been lower had certain fees not been waived by
Affiliates during the periods indicated.
++ The amount shown for the year ended October 31, 1998 for a share
outstanding throughout the period does not accord with the aggregate net
gains on investments for that period because of the sales and repurchases
of Portfolio shares in relation to fluctuating market value of the
investments of the Portfolio.
@ The annualized ratio of net operating expenses to average net assets,
excluding foreign tax expense, is 1.59%.
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
UAM Funds, Inc. and UAM Funds Trust (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The Acadian
Emerging Markets Portfolio (the "Portfolio"), a portfolio of UAM Funds, Inc.,
is a diversified open-end management investment company. At April 30, 1999,
the UAM Funds were comprised of 44 active portfolios. The information
presented in the financial statements pertains only to the Portfolio. The
objective of the Portfolio is to seek long-term capital appreciation by
investing primarily in common stocks of emerging country issuers.
A. Significant Accounting Policies: The following significant accounting
policies are in conformity with generally accepted accounting principles. Such
policies are consistently followed by the Portfolio in the preparation of its
financial statements. Generally accepted accounting principles may require
Management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results may differ from
those estimates.
1. Security Valuation: 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 last re-
ported bid price. 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 readily avail-
able is determined in good faith at fair value following procedures ap-
proved by the Board of Directors.
2. Federal Income Taxes: It is the Portfolio's intention to qualify as a
regulated investment company under Subchapter M of the Internal Revenue
Code and to distribute all of its taxable income. Accordingly, no provi-
sion for Federal income taxes is required in the financial statements.
The Portfolio may be subject to taxes imposed by countries in which it
invests. Such taxes are generally based on either income or gains earned
or repatriated. The Portfolio accrues and applies such taxes to net in-
vestment income, net realized gains and net unrealized gains as income
and/or capital gains are earned.
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
prin-
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
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cipal amount of the repurchase transaction, including accrued interest. To
the extent that any repurchase transaction exceeds one business day, the
value of the collateral is monitored on a daily basis to determine the ad-
equacy of the collateral. In the event of default on the obligation to re-
purchase, the Portfolio has the right to liquidate the collateral and ap-
ply the proceeds in satisfaction of the obligation. In the event of de-
fault or bankruptcy by the counterparty to the agreement, realization
and/or retention of the collateral or proceeds may be subject to legal
proceedings.
Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the UAM Funds may transfer their daily uninvested cash 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. Foreign Currency Translation: The books and records of the Portfolio
are maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars on the date of valuation. The Portfolio does not isolate that por-
tion of realized or unrealized gains and losses resulting from changes in
the foreign exchange rate from fluctuations arising from changes in the
market prices of the securities. These gains and losses are included in
net realized and unrealized gains and losses on investments on the state-
ment of operations. Net realized and unrealized gains and losses on for-
eign currency transactions represent net foreign exchange gains or losses
from forward foreign currency exchange contracts, disposition of foreign
currencies, currency gains or losses realized between trade and settlement
dates on securities transactions and the difference between the amount of
the investment income and foreign withholding taxes recorded on the Port-
folio's books and the U.S. dollar equivalent amounts actually received or
paid.
Effective September 30, 1998, the Valuation Committee fair valued the
Malaysian Ringgit currency at an exchange rate of MYR 4.175 to U.S. $1.
5. Forward Foreign Currency Exchange Contracts: The Portfolio may enter
into forward foreign currency exchange contracts to protect the value of
securities held and related receivables and payables against changes in
future foreign exchange rates. A forward currency contract is an agreement
between two parties to buy and sell currency at a set price on a future
date. The market value of the contract will fluctuate with changes in cur-
rency exchange rates. The contract is marked-to-market daily using the
current forward rate and the change in market value is recorded by the
Portfolio as unrealized
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
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gain or loss. The Portfolio recognizes realized gains or losses when the
contract is closed, equal to the difference between the value of the con-
tract at the time it was opened and the value at the time it was closed.
Risks may arise from the unanticipated movements in the value of a foreign
currency relative to the U.S. dollar. Risks may also arise upon entering
into these contracts from the potential inability of counterparties to
meet the terms of their contracts and are generally limited to the amount
of unrealized gain on the contracts, if any, at the date of default.
6. Distributions to Shareholders: The Portfolio will distribute substan-
tially all of its net investment income annually. Any realized net capital
gains will be distributed at least annually. All distributions are re-
corded 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 for for-
eign currency transactions.
Permanent book and tax basis differences relating to shareholder distri-
butions may result in reclassifications to undistributed net investment
income, accumulated net realized gain 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.
7. 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, except that certain dividends from foreign securities are recorded
as soon as the Portfolio is informed of the ex-dividend date. Interest in-
come is recognized on an accrual basis. Most expenses of the UAM Funds can
be directly attributed to a particular portfolio. Expenses that cannot be
directly attributed are apportioned among the portfolios of the UAM Funds
based on their relative net assets. Custodian fees for the Portfolio are
shown gross of expense offsets, if any, for custodian balance credits.
B. Investment Advisory Services: Under the terms of an investment advisory
agreement, Acadian Asset Management, Inc. (the "Adviser"), a subsidiary of
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
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United Asset Management Corporation ("UAM"), provides investment advisory
services to the Portfolio at a fee calculated at an annual rate of 1.00% of
the average daily net assets. The Adviser has voluntarily agreed to waive a
portion of its advisory fees and to assume expenses, if necessary, in order to
keep the Portfolio's total annual operating expenses, after the effect of ex-
pense offset arrangements, from exceeding 2.50% of average daily net assets.
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, the 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 the annual rate equal to $14,500 for the
first operational share class.
--A portfolio-specific fee to the Administrator of 0.06% per annum of the
average net assets of the Portfolio, which is retained by the Adminis-
trator.
--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.
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
- -------------------------------------------------------------------------------
The Portfolio also pays 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 $98,686
from the Portfolio as administrator of which $50,782 and $4,404 was paid to
CGFSC and UAMSSC, respectively, for their services.
D. Custodian: The Chase Manhattan Bank is custodian for the Portfolio's as-
sets held in accordance with the custodian agreement. As a part the custodian,
the custodian has a lien on the securities of the Portfolio to cover any ad-
vances made by the custodian to the Portfolio.
E. Distribution Services: UAM Fund Distributors, Inc. (the "Distributor"), a
wholly-owned subsidiary of UAM, distributes the shares of the Portfolio. The
Distributor does not receive any fee or other compensation with respect to the
Portfolio.
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 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 it provides
services. The Services Agreement has been terminated effective 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 Portfo-
lio made purchases of $31,441,536 and sales of $16,210,683 of investment secu-
rities other than long-term U.S. Government and short-term securities. There
were no purchase or sales of long-term U.S. Government securities.
I. Line of Credit: The Portfolio, along with certain other portfolios of UAM
Funds, collectively entered into an agreement which enables them to partici-
pate in a $100 million unsecured line of credit with several banks. Borrowings
will
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
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be made solely to temporarily finance the repurchase of capital shares. Inter-
est 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 com-
mitment fee of 0.08% per annum, payable at the end of each calendar quarter,
is accrued by each participating portfolio based on its average daily unused
portion of the line of credit. For the six month period ended April 31, 1999,
the Portfolio had no borrowings under the agreement.
J. Other: At April 30, 1999, 79.0% of total shares outstanding were held by
2 record shareholders owning 10% or greater of the aggregate total shares out-
standing.
The Portfolio retains a redemption fee of 1.00% on redemptions of capital
shares held for less than 90 days.
At April 30, 1999, the net assets of the Portfolio were substantially com-
prised of foreign denominated securities and/or currency. Changes in currency
exchange rates will affect the value of and investment income from such secu-
rities and currency.
Foreign security and currency transactions may involve certain considera-
tions and risks not typically associated with those of U.S. dollar denominated
transactions as a result of, among other factors, the possibly lower level of
governmental supervision and regulation of foreign securities markets and the
possibility of political or economic instability.
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UAM FUNDS ACADIAN EMERGING MARKETS PORTFOLIO
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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
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UAM Funds
P.O. Box 419081
Kansas City, MO 64141-6081
(toll free)
1-877-UAM-LINK (826-5465)
www.uam.com
Investment Adviser
Acadian Asset Management, Inc.
Two International Place
Boston, MA 02110
Distributor
UAM Fund Distributors, Inc.
211 Congress Street
Boston, MA 02110
This report has been prepared for
shareholders and may be distributed
to others only if preceded or
accompanied by a current prospectus.
<PAGE>
[LOGO OF UAM APPEARS HERE]
Supplement dated June 22, 1999, to the Acadian Emerging Markets Portfolio
Institutional and Institutional Service Class Prospectuses dated February 16,
1999
The information concerning derivatives in the portfolio's prospectus is hereby
replaced in its entirety by the following information:
The portfolio may use futures, options, foreign currency exchange contracts
and swaps (types of derivatives) based on securities it does not hold to
protect against a change in the price of an investment the portfolio owns or
anticipates buying in the future (a practice known as hedging). The portfolio
also may use derivatives to gain full exposure in a cost efficient method to
markets where it would otherwise have difficulty investing (speculation). Some
of the factors that might make it difficult for a portfolio to access a
particular market include limitations on direct foreign ownership of
securities and restrictions on repatriation of capital. Derivatives are often
more volatile than other investments and may magnify a portfolio's gains or
losses. A portfolio may lose money if the adviser:
. Fails to predict correctly the direction in which the underlying asset
or economic factor will move.
. Judges market conditions incorrectly.
. Employs a strategy that does not correlate well with the investments of
the portfolio.
[LOGO OF UAM APPEARS HERE]
(R)
