UAM FUNDS
FPA CRESCENT PORTFOLIO
INSTITUTIONAL CLASS SHARES
Supplement dated September 30, 1997 to the
Prospectus dated July 10, 1997 as Supplemented August 6, 1997
The following information is added under the heading "OTHER
INVESTMENT POLICIES:"
Loan Participations. The Portfolio may invest up to 5%
of its total assets in loan participations in which the Portfolio
will purchase from a lender a portion of a larger loan which it
has made to a borrower. These instruments are typically
interests in floating or variable rate senior loans to U.S.
corporations, partnerships, and other entities. Generally such
loan participations trade at par value, are sold without
guarantee or recourse to the lending institution, and are subject
to the credit risks of both the borrower and the lending
institution. They may enable the Portfolio to acquire an
interest in a loan from a financially strong borrower which it
could not do directly. Some loan participations sell at a
discount and trade at discounts to par value because of the
borrower's credit problems. To the extent the borrower's credit
problems are resolved, the loan participations may appreciate in
value. Such loan participations, however, carry substantially
the same risk as that for defaulted debt obligations and may
cause loss of the entire investment. Many loan participations
are illiquid. Illiquid loan participations will be included in
the Portfolio's percentage limitation for illiquid securities.
Participations normally are made available only on a
nonrecourse basis by financial institutions, such as banks or
insurance companies, or by governmental institutions, or may
include supranational organizations. When the Portfolio
purchases a participation interest, it assumes the credit risk
associated with the bank or other financial intermediary as well
as the credit risk associated with the issuer of any underlying
debt instrument.
UAM FUNDS
FPA CRESCENT PORTFOLIO
INSTITUTIONAL SERVICE CLASS SHARES
Supplement dated September 30, 1997 to the
Prospectus dated July 10, 1997 as Supplemented August 6, 1997
The following information is added under the heading "OTHER
INVESTMENT POLICIES:"
Loan Participations. The Portfolio may invest up to 5%
of its total assets in loan participations in which the Portfolio
will purchase from a lender a portion of a larger loan which it
has made to a borrower. These instruments are typically
interests in floating or variable rate senior loans to U.S.
corporations, partnerships, and other entities. Generally such
loan participations trade at par value, are sold without
guarantee or recourse to the lending institution, and are subject
to the credit risks of both the borrower and the lending
institution. They may enable the Portfolio to acquire an
interest in a loan from a financially strong borrower which it
could not do directly. Some loan participations sell at a
discount and trade at discounts to par value because of the
borrower's credit problems. To the extent the borrower's credit
problems are resolved, the loan participations may appreciate in
value. Such loan participations, however, carry substantially
the same risk as that for defaulted debt obligations and may
cause loss of the entire investment. Many loan participations
are illiquid. Illiquid loan participations will be included in
the Portfolio's percentage limitation for illiquid securities.
Participations normally are made available only on a
nonrecourse basis by financial institutions, such as banks or
insurance companies, or by governmental institutions, or may
include supranational organizations. When the Portfolio
purchases a participation interest, it assumes the credit risk
associated with the bank or other financial intermediary as well
as the credit risk associated with the issuer of any underlying
debt instrument.
