UAM FUNDS
FUNDS FOR THE INFORMED INVESTOR SM
SUPPLEMENT DATED SEPTEMBER 26, 2000, TO THE
STATEMENT OF ADDITIONAL INFORMATION OF NWQ
SPECIAL EQUITY PORTFOLIO.
The "Brokerage Allocation and Other
Practices" - "Selection of Brokers" section
of the portfolio's statement of additional
information is hereby replaced in its
entirety with the following:
The Investment Advisory Agreement authorizes
the adviser to select the brokers or dealers
that will execute the purchases and sales of
investment securities for the portfolio. The
Investment Agreement also directs the adviser
to use its best efforts to obtain the best
execution with respect to all transactions
for the portfolio. The adviser may select
brokers based on research, statistical and
pricing services they provide to the adviser.
Information and research provided by a broker
will be in addition to, and not instead of,
the services the adviser is required to
perform under the Investment Advisory
Agreement. In so doing, the portfolio may
pay higher commission rates than the lowest
rate available when the adviser believes it
is reasonable to do so in light of the value
of the research, statistical, and pricing
services provided by the broker effecting the
transaction. Research services provided by
brokers through which the Fund effects
securities transactions may be used by the
portfolio's investment adviser in servicing
all of its accounts and not all of these
services may be used by the adviser in
connection with the portfolio. Such research
include research reports on particular
industries and companies, economic surveys and
analyses, recommendations as to specific
securities and other products or services
(e.g., quotation equipment and computer
related costs and expenses), advice concerning
the value of securities, the advisability of
investing in, purchasing or selling
securities, the availability of securities or
the purchasers or sellers of securities,
furnishing analyses and reports concerning
issuers, industries, securities, economic
factors and trends, portfolio strategy and
performance of accounts, effecting securities
transactions and performing functions
incidental thereto (such as clearance and
settlement) and providing lawful and
appropriate assistance to the adviser in the
performance of its decision-making
responsibilities.
During the fiscal year ended October 31,
1999, the adviser directed $854,915.02 of the
portfolio's brokerage transactions in
exchange for certain research services.
Commissions paid on those transactions were
$2,113.00. As of October 31, 1999, the
portfolio do not hold any securities of its
regular brokers or dealers, as that term is
defined in the Investment Company Act of
1940, as amended.
When allocating brokerage to brokers or
effecting principal transactions with
dealers, the investment adviser may also
consider the amount of portfolio shares a
broker-dealer has sold and the referral of
other clients by the broker to the adviser,
subject to the requirements of best execution
described above. In addition, the portfolio
may place trades with qualified broker-
dealers who recommend the portfolio or who
act as agents in the purchase of portfolio
shares for their clients.
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