UAM FUNDS TRUST, N-30D, 1997-12-29

UAM FUNDS TRUST
N-30D, 1997-12-29

Previous: UAM FUNDS TRUST, NSAR-A/A, 1997-12-29

Next: CURRIE MARTIN BUSINESS TRUST, NSAR-A, 1997-12-29

<PAGE>

- -------------------------------------------------------------------------------

UAM FUNDS
IRC ENHANCED INDEXPORTFOLIO

- -------------------------------------------------------------------------------

OFFICERS AND TRUSTEES

Norton H. Reamer Peter M. Whitman, Jr.
Trustee, President and Chairman
Trustee

William H. Park
John T. Bennett, Jr.
Trustee Vice President

Nancy J. Dunn Michael E. DeFao
Trustee Secretary

Philip D. English Karl O. Hartmann
Trustee Assistant Secretary

William A. Humenuk Gary L. French
Trustee Treasurer

Robert R. Flaherty
Charles H. Salisbury, Jr.
Assistant Treasurer
Trustee and Executive

Vice President
Gordon M. Shone

Assistant Treasurer

- -------------------------------------------------------------------------------

INVESTMENT ADVISER
Investment Research Company
16236 San Dieguito Road
Suite 2-20
Rancho Santa Fe, CA 92067

- -------------------------------------------------------------------------------

ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street
Boston, MA 02110

- -------------------------------------------------------------------------------

CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, NY 11245

- -------------------------------------------------------------------------------

LEGAL COUNSEL
Stradley, Ronon, Stevens & Young LLP
2600 One Commerce Square Philadelphia, PA 19103

- -------------------------------------------------------------------------------

INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
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.

- -------------------------------------------------------------------------------

[LOGO OF UAM Funds]

IRC ENHANCED INDEXPORTFOLIO

- -------------------------------------------------------------------------------

SEMI-ANNUAL REPORT
OCTOBER 31, 1997
<PAGE>

Dear Shareholders:

The IRC Enhanced Index Portfolio (the "Portfolio") managed by Investment
Research Company ("IRC") returned 12.46% for the six-month period ended
October 31, 1997 relative to a return of 15.16% for the S&P 500 Index.
Beginning in May, the previously persistent dominance of large cap growth
stocks in the market was broken, with the S&P MidCap 400 out-performing the
S&P 500 by 2.65%. This reversal of relative fortunes for the mid-cap sector of
the market continued beyond May, with the S&P MidCap 400 rising 24.1% for the
six months ended October 31, 1997, beating the S&P 500 by nearly 9%. There was
a similar reversal of the dominance of growth stocks during this period, with
the S&P/BARRA Growth index rising 14.3% relative to the stronger 16.0%
increase in the S&P/BARRA Value index.

While the Portfolio reflects the weighted average capitalization and industry
composition of the S&P 500 Index benchmark, its median market capitalization
level is higher than that of the S&P 500, primarily as a result of the lower
level of assets under management. IRC's investment strategy favors companies
with higher dividends and lower price/earnings; i.e., there is a value bias to
the stock selection. While benefiting over this period from its value
orientation, the Portfolio's relative underperformance can be attributed to
the relatively greater significance of the performance-lagging larger cap
holdings in the Portfolio's composition and to the under-representation in the
better performing relatively smaller cap issues within the S&P 500. IRC
continues to invest in companies with solid fundamentals and relatively low
volatility which we believe represent the best opportunity for long term value
added.

OVERVIEW OF ECONOMIC AND MARKET CONDITIONS

The market during the first half of the six-month period ended October 31,
1997 accelerated along its growth path, with the S&P 500 rising 19.7%. The
unexpected continued strength of the economy and corporate profits contributed
greatly as did the Federal Reserve Board's decision not to stand in the
market's way, given that signs of growth-inspired inflation were mixed at
best. And investor concerns that the Fed might engage in a series of
preemptive interest rate hikes this year moderated, as evidenced by the
resumed influx of money into investment portfolios. The second half of this
period, however, saw the market sell off, as the S&P 500 fell 3.8%. While the
continued forbearance by the Fed and positive company earnings reports served
as a strong base for the market, concerns over high valuations and doubts
about the continued longevity of high corporate earnings contributed to a 5.6%
drop in the S&P 500 in August. The market recovered substantially in
September, as many investors were again encouraged by the concurrence of low
inflation, good corporate earnings reports, steady economic growth and a
Federal Reserve willing to leave well enough alone. However, the S&P 500
dropped 3.3% in October in reaction to falling international markets and
renewed nervousness about future corporate earnings.

INVESTMENT STRATEGIES AND TECHNIQUES APPLIED BY IRC DURING THE PERIOD

IRC's entire investment process is based on proprietary research and years of
hands on portfolio management by the firm's investment committee. Our approach
to valuation and portfolio management centers around diversified positions in
stable, fundamentally attractive securities. Since IRC makes no forecasts of
market or economic sector returns, market and sector timing are not used.
Portfolios are kept as fully invested as practicable and the economic sector
weights of all portfolios closely reflect the weights of the benchmark index.
While IRC's value added is independent of market direction, our performance
will be strongest when investors link securities' prices to underlying
fundamentals.

VALUATION

IRC adds value through systematically constructed positions in companies that
are fundamentally attractive on a risk-adjusted basis. Companies must pass
sector specific filters for earnings and dividends. All candidate

1
<PAGE>

securities must then pass through a volatility/momentum screen where the
capitalization weighted geometric return to the fundamentally attractive
stocks is maximized. This volatility/momentum screen ensures that we are
identifying companies with a stable or improving price pattern, eliminating
"value traps" which are companies that might appear to be fundamentally
attractive because their prices are falling faster than their earnings or
dividends.

Research performed at IRC in 1996 led to some modifications in our valuation
process. Originally, our valuation screens were applied uniformly across all
segments of the market. Based on observations of varying treatment of earnings
and dividends across various market sectors, filters were adjusted to reflect
market preferences in some sectors. For example, companies in the electronics
sector are no longer excluded as buy candidates if their dividend payout is
below average. However, these firms must have a P/E ratio which is below
average for electronics firms.

PORTFOLIO MANAGEMENT

All acceptable candidates across economic sectors form the new investable
universe used in the portfolio rebalance. This rebalance typically occurs on a
90 day cycle and the oldest one-third of each client's portfolio is re-
examined. This process, which is known as time diversification, helps us to
focus our buy and sell decisions on longer term fundamental attractiveness. By
segregating the holdings we minimize noise transactions caused by short term
price behavior, a prevalent problem which adversely affects quantitative
portfolio managers. Finally, IRC evaluates the aggregate portfolio to ensure
that it offers appropriate market capitalization, tracking error, and other
supplemental factors. Trading is performed on a best execution basis. We make
extensive use of electronic crossing networks and typically maintain a per
share trade cost below 2.5 cents per share.

CURRENT OUTLOOK

IRC does not attempt to overlay its quantitative stock selection models with
any type of predicted economic outlook. However, due to very high stock prices
relative to historical measures of value, IRC's models have positioned the
Portfolio with a distinct value bias. An integral component of IRC's strategy
is to control the risk of significant under-performance in the event of a
market downturn.

INVESTMENT RESEARCH COMPANY

DEFINITION OF THE COMPARATIVE INDEX
-----------------------------------

The S&P 500 Index is an unmanaged index composed of 400 industrial, 40
financial, 40 utilities and 20 transportation stocks.

Comparisons of performance assume reinvestment of dividends.

The investment results presented in the Adviser's letter represent past
performance and should not be construed as a guarantee of future results. If
the Adviser did not have temporary fee waivers and did not assume expenses on
behalf of the Portfolio, total return for the Portfolio would have been lower.
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.

Please note that one cannot invest in an unmanaged index.

2
<PAGE>

IRC ENHANCED INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (97.2%)
- -------------------------------------------------------------------------------
BASIC INDUSTRIES (0.4%)
USX-U.S. Steel Group, Inc. .................................. 300 $ 10,200
- -------------------------------------------------------------------------------
CAPITAL GOODS (4.3%)
Brunswick Corp. ............................................. 400 13,500
Caterpillar Inc. ............................................ 1,000 51,250
Deere & Co. ................................................. 700 36,838
---------
101,588
- -------------------------------------------------------------------------------
COMMUNICATIONS (7.8%)
Ameritech Corp. ............................................. 600 39,000
Bell Atlantic Corp. ......................................... 100 7,987
BellSouth Corp. ............................................. 300 14,194
GTE Corp. ................................................... 200 8,488
McGraw-Hill Cos., Inc. ...................................... 600 39,225
SBC Communications, Inc. .................................... 200 12,725
Sprint Corp. ................................................ 200 10,400
US West Communications Group................................. 1,300 51,756
---------
183,775
- -------------------------------------------------------------------------------
COMPUTERS & OFFICE EQUIPMENT (7.7%)
*Compaq Computer Corp........................................ 400 25,500
Hewlett-Packard Co. ......................................... 600 37,012
International Business Machines Corp......................... 800 78,450
Pitney Bowes, Inc............................................ 300 23,794
*Seagate Technology, Inc..................................... 100 2,713
*Sun Microsystems, Inc....................................... 400 13,675
---------
181,144
- -------------------------------------------------------------------------------
CONSTRUCTION (0.8%)
Masco Corp................................................... 200 8,775
Weyerhaeuser Co.............................................. 200 9,550
---------
18,325
- -------------------------------------------------------------------------------
CONSUMER DURABLES (2.8%)
Chrysler Corp................................................ 200 7,050
Ford Motor Co................................................ 900 39,319
General Motors Corp.......................................... 300 19,256
---------
65,625
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

3
<PAGE>

IRC ENHANCED INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
CONSUMER FOODS (7.8%)
Anheuser-Busch Cos., Inc. ................................... 500 $ 19,969
Brown-Forman Corp., Class B.................................. 500 24,594
CPC International, Inc. ..................................... 200 19,800
Fortune Brands, Inc. ........................................ 600 19,837
Philip Morris Cos., Inc. .................................... 1,700 67,362
Sara Lee Corp. .............................................. 600 30,675
---------
182,237
- -------------------------------------------------------------------------------
CONSUMER NON-DURABLES (6.2%)
Avon Products, Inc........................................... 300 19,650
Bemis Co., Inc............................................... 300 11,437
Clorox Co.................................................... 200 14,000
Colgate-Palmolive Co......................................... 100 6,475
International Paper Co. ..................................... 200 9,000
Kimberly-Clark Corp. ........................................ 300 15,581
Minnesota Mining & Manufacturing Co. ........................ 400 36,600
VF Corp...................................................... 100 8,938
Xerox Corp. ................................................. 300 23,794
---------
145,475
- -------------------------------------------------------------------------------
DEPOSITORY INSTITUTIONS (8.4%)
BankAmerica Corp............................................. 600 42,900
Bank of New York Co., Inc.................................... 500 23,531
Citicorp..................................................... 100 12,506
First Chicago NBD Corp. ..................................... 400 29,100
First Union Corp............................................. 200 9,813
National City Corp. ......................................... 200 11,950
NationsBank Corp............................................. 700 41,913
Norwest Corp................................................. 600 19,237
PNC Bank Corp................................................ 100 4,750
---------
195,700
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

4
<PAGE>

IRC ENHANCED INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

The accompanying notes are an integral part of the financial statements.

5
<PAGE>

IRC ENHANCED INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

The accompanying notes are an integral part of the financial statements.

6
<PAGE>

IRC ENHANCED INDEX PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

The accompanying notes are an integral part of the financial statements.

7
<PAGE>

IRC ENHANCED INDEX PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1997 (Unaudited)

<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at Cost.............................................. $2,189,063
==========
Investments, at Value............................................. $2,274,889
Cash.............................................................. 64,321
Receivable for Portfolio Shares Sold.............................. 11,114
Dividends Receivable.............................................. 4,738
Receivable from Investment Advisor--Note B........................ 7,995
Other Assets...................................................... 177
- -------------------------------------------------------------------------------
Total Assets..................................................... 2,363,234
- -------------------------------------------------------------------------------
LIABILITIES
Payable for Administrative Fees--Note C........................... 6,786
Payable for Trustees' Fees--Note G................................ 581
Other Liabilities................................................. 14,691
- -------------------------------------------------------------------------------
Total Liabilities................................................ 22,058
- -------------------------------------------------------------------------------
NET ASSETS......................................................... $2,341,176
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in Capital................................................... $ 292,579
Undistributed Net Investment Loss................................. (15,488)
Accumulated Net Realized Gain..................................... 1,978,259
Unrealized Appreciation........................................... 85,826
- -------------------------------------------------------------------------------
NET ASSETS......................................................... $2,341,176
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
Shares Issued and Outstanding (Unlimited authorization, no par
value)........................................................... 169,503
Net Asset Value, Offering and Redemption Price Per Share.......... $ 13.81
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

8
<PAGE>

IRC ENHANCED INDEX PORTFOLIO
STATEMENT OF OPERATIONS
For the Six Months Ended October 31, 1997 (Unaudited)

<TABLE>
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends................................................ $ 65,112
- --------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees--Note B
Basic Fees.............................................. $ 22,639
Less: Fees Waived....................................... (22,639) --
--------
Administrative Fees--Note C.............................. 38,288
Printing Fees............................................ 16,930
Filing and Registration Fees............................. 9,460
Audit Fees............................................... 6,108
Account Services Fees--Note F............................ 5,987
Custodian Fees--Note D................................... 3,666
Trustees' Fees--Note G................................... 1,225
Other Expenses........................................... 1,937
Fees Assumed by the Adviser--Note B...................... (370)
- --------------------------------------------------------------------------------
Total Expenses.......................................... 83,231
Expense Offset--Note A................................... (2,631)
- --------------------------------------------------------------------------------
Net Expenses............................................ 80,600
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS....................................... (15,488)
- --------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS.......................... 1,238,731
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON IN-
VESTMENTS................................................ (245,762)
- --------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS................................... 992,969
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...... $ 977,481
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

9
<PAGE>

IRC ENHANCED INDEX PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED
1997 APRIL 30,
(UNAUDITED) 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Loss.................................. $ (15,488) $ (7,928)
Net Realized Gain.................................... 1,238,731 825,307
Net Change in Unrealized Appreciation/Depreciation... (245,762) 172,032
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Opera-
tions.............................................. 977,481 989,411
- --------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income................................ -- (6,339)
Net Realized Gain.................................... -- (86,034)
- --------------------------------------------------------------------------------
Total Distributions................................. -- (92,373)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:(1)
Issued............................................... 1,226,169 3,610,570
In Lieu of Cash Distributions........................ -- 92,115
Redeemed............................................. (6,023,996) (2,370,940)
- --------------------------------------------------------------------------------
Net Increase (Decrease) from Capital Share Transac-
tions.............................................. (4,797,827) 1,331,745
- --------------------------------------------------------------------------------
Total Increase (Decrease)............................ (3,820,346) 2,228,783
Net Assets:
Beginning of Period.................................. 6,161,522 3,932,739
- --------------------------------------------------------------------------------
End of Period (including undistributed net investment
loss of $15,488 and $0, respectively)............... $ 2,341,176 $ 6,161,522
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(1)Shares Issued and Redeemed:
Shares Issued....................................... 90,761 329,667
In Lieu of Cash Distributions....................... -- 8,282
Redeemed............................................ (423,035) (217,949)
- --------------------------------------------------------------------------------
(332,274) 120,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

10
<PAGE>

IRC ENHANCED INDEX PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR JANUARY 23,
OCTOBER 31, ENDED 1996* TO
1997 APRIL 30, APRIL 30,
(UNAUDITED) 1997 1996
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 12.28 $ 10.30 $ 10.00
- -------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income (Loss)........... (0.09) (0.01) 0.02
Net Realized and Unrealized Gain on In-
vestments............................. 1.62 2.20 0.30
- -------------------------------------------------------------------------------
Total from Investment Operations...... 1.53 2.19 0.32
- -------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income.................. -- (0.02) (0.02)
Net Realized Gain...................... -- (0.19) --
- -------------------------------------------------------------------------------
Total Distributions................... -- (0.21) (0.02)
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.......... $ 13.81 $ 12.28 $ 10.30
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL RETURN+........................... 12.46%*** 21.48% 3.20%***
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (Thousands).. $ 2,341 $ 6,162 $ 3,933
Ratio of Expenses to Average Net As-
sets.................................. 2.58%** 2.56% 2.52%**
Ratio of Net Investment Income (Loss)
to Average Net Assets................. (0.48)%** (0.16)% 0.67%**
Portfolio Turnover Rate................ 83% 117% 31%
Average Commission Rate................ $0.0250 $0.0227 $0.0205
- -------------------------------------------------------------------------------
Voluntarily Waived Fees and Expenses
Assumed by the Adviser Per Share...... $ 0.14 $ 0.03 $ 0.03
Ratio of Expenses to Average Net Assets
Including Expense Offsets............. 2.50%** 2.50% 2.50%**
- -------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
** Annualized
*** Not Annualized
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser.

The accompanying notes are an integral part of the financial statements.

11
<PAGE>

IRC ENHANCED INDEX PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

UAM Funds Trust and UAM Funds, Inc. (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The IRC
Enhanced Index Portfolio (the "Portfolio"), a portfolio of UAM Funds Trust, is
a diversified, open-end management investment company. At October 31, 1997,
the UAM Funds were comprised of forty-two active portfolios. The financial
statements of the remaining portfolios are presented separately. The objective
of the IRC Enhanced Index Portfolio is to provide a total return exceeding
that of the S&P 500 Index.

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: Securities listed on a securities exchange for which
market quotations are readily available are valued at the last quoted sales
price as of the close of the exchange on the day the valuation is made or,
if no sale occurred on such day, at the bid price on such day. Price
information on listed securities is taken from the exchange where the
security is primarily traded. Over-the-counter and unlisted securities are
valued at the current bid price. 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 using methods determined by the Board of
Trustees.

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 provision
for Federal income taxes is required in the financial statements.

3. DISTRIBUTIONS TO SHAREHOLDERS: The Portfolio will normally distribute
substantially all of its net investment income quarterly. Any realized net
capital gains will be distributed annually. All distributions are recorded
on ex-dividend date.

Permanent book-tax differences, if any, are not included in ending
undistributed net investment income (loss) for the purpose of calculating
net investment income (loss) per share in the financial highlights.

4. OTHER: Security transactions are accounted for on trade date, the date
the trade was executed. Costs used in determining realized gains and losses
on the sale of investment securities are based on the specific
identification method. Dividend income is recorded on the ex-dividend date.
Most expenses of the UAM Funds can be directly attributed to a particular
portfolio. Expenses which cannot be directly attributed are apportioned
among the portfolios of the UAM Funds based on their relative net assets.
Custodian fees for the Portfolio have been increased to include expense
offsets, if any, for custodian balance credits.

B. ADVISORY SERVICES: Under the terms of an investment advisory agreement,
Investment Research Company (the "Adviser"), a wholly-owned subsidiary of
United Asset Management Corporation ("UAM"), provides investment advisory
services to the Portfolio at a monthly fee calculated at an annual rate of
0.70% of average

12
<PAGE>

IRC ENHANCED INDEX PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

daily net assets for the month. 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
expense offset arrangements, from exceeding 2.50% of average daily net assets.

C. ADMINISTRATION SERVICES: UAM Fund Services, Inc. (the "Administrator"), a
wholly-owned subsidiary of UAM, provides and oversees administrative, fund
accounting, dividend disbursing and transfer agent services to the UAM Funds
under a Fund Administration Agreement (the "Agreement"). Pursuant to the
Agreement, the Administrator is entitled to receive annual fees, computed
daily and payable monthly, of 0.19% of the first $200 million of the combined
aggregate net assets; plus 0.11% of the next $800 million of the combined
aggregate net assets; plus 0.07% of the next $2 billion of the combined
aggregate net assets; plus 0.05% of the combined aggregate net assets in
excess of $3 billion. The fees are allocated among the portfolios of the UAM
Funds on the basis of their relative net assets and are subject to a graduated
minimum fee schedule per portfolio which rises from $2,000 per month, upon
inception of a portfolio, to $70,000 annually after two years. For portfolios
with more than one class of shares, the minimum annual fee increases to
$90,000. In addition, the Administrator receives a Portfolio-specific monthly
fee at an annual rate of 0.04% of average daily net assets of the Portfolio.
The Administrator has entered into a Mutual Funds Service Agreement with Chase
Global Funds Services Company ("CGFSC"), an affiliate of The Chase Manhattan
Bank, under which CGFSC agrees to provide certain services, including but not
limited to, administration, fund accounting, dividend disbursing and transfer
agent services. Pursuant to the Mutual Funds Service Agreement, the
Administrator pays CGFSC a monthly fee. For the six months ended October 31,
1997, $36,995 was paid to CGFSC for its services.

D. CUSTODIAN: The Chase Manhattan Bank ("the Bank"), an affiliate of CGFSC, is
custodian for the Portfolio's assets 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 Portfolio. The
Distributor does not receive any fee or other compensation with respect to the
Portfolio.

F. ACCOUNT SERVICES: The UAM Funds entered into an Account Services Agreement
(the "Services Agreement") with UAM Retirement Plan Services, Inc. ("Service
Provider"), a wholly-owned subsidiary of UAM. Under the Services Agreement,
the Service Provider agrees to perform certain services for participants in a
self-directed, defined contribution plan, and for whom the Service Provider
provides participant recordkeeping. Pursuant to the Services Agreement, the
Service Provider is entitled to receive, after the end of each month, a fee at
the annual rate of 0.15% of the average aggregate daily net asset value of
shares of the UAM Funds in the accounts for which they provide services.

G. TRUSTEES' FEES: Each Trustee, who is not an officer or affiliated person,
receives $2,000 per meeting attended, 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, and reimbursement of expenses incurred in
attending Trustee meetings.

13
<PAGE>

IRC ENHANCED INDEX PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
H. PURCHASES AND SALES: For the six months ended October 31, 1997, the
Portfolio made purchases of $4,865,403 and sales of $9,192,021 of investment
securities other than long-term U.S. Government and short-term securities.
There were no purchases 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
participate in a $100 million unsecured line of credit with several banks.
Borrowings will be made solely to temporarily finance the repurchase of
Capital shares. Interest is charged to each participating Portfolio based on
its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%.
In addition, a commitment fee of 0.08% per annum, payable at the end of each
calendar quarter, is accrued by each participating Portfolio based on its
average daily unused portion of the line of credit. During the six months
ended October 31, 1997, the Portfolio had no borrowings under the agreement.

J. OTHER: At October 31, 1997, 96.8% of total shares outstanding were held by
3 record shareholders owning more than 10% of the aggregate total shares
outstanding.

14
<PAGE>

- -------------------------------------------------------------------------------

UAM FUNDS
BHM&S TOTAL RETURN BOND PORTFOLIO

- -------------------------------------------------------------------------------
OFFICERS AND TRUSTEES

Norton H. Reamer Peter M. Whitman, Jr.
Trustee, President Trustee
and Chairman
William H. Park
John T. Bennett, Jr. Vice President
Trustee
Michael E. DeFao
Nancy J. Dunn Secretary
Trustee
Karl O. Hartmann
Philip D. English Assistant Secretary
Trustee
Gary L. French
William A. Humenuk Treasurer
Trustee
Robert R. Flaherty
Charles H. Salisbury, Jr. Assistant Treasurer
Trustee and Executive
Vice President Gordon M. Shone
Assistant Treasurer
- -------------------------------------------------------------------------------
INVESTMENT ADVISER
Barrow, Hanley, Mewhinney & Strauss, Inc.
3232 McKinney Avenue, 15th Floor
Dallas, TX 75204
- -------------------------------------------------------------------------------
ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street
Boston, MA 02110
- -------------------------------------------------------------------------------
CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, NY 11245
- -------------------------------------------------------------------------------
LEGAL COUNSEL
Stradley, Ronon, Stevens & Young LLP
2600 One Commerce Square
Philadelphia, PA 19103
- -------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
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.

- -------------------------------------------------------------------------------

[LOGO OF UAM FUNDS APPEARS HERE]

BHM&S TOTAL
RETURN BOND
PORTFOLIO

- -------------------------------------------------------------------------------

SEMI-ANNUAL REPORT
OCTOBER 31, 1997
<PAGE>

Dear Shareholders:

The current fiscal year began May 1st with the long Treasury bond at 6.95% and
the market concerned about the next Federal Reserve move following the March
25th 25 basis point increase in the Fed Funds rate to 5.5%. Evidence of a
slower economy and surprisingly low inflation reports gradually changed market
sentiment and rates began to decline. Rates moved lower through the end of
July with the long Treasury bond at 6.27%. The market was jolted by a very
strong employment report at the first of August and rates moved back up to
6.68%.

Gradually the market sentiment turned positive again as low inflation
statistics continued to be impressive. We end October with the lowest
unemployment and inflation in three decades. The Federal Government has a
chance to run a balanced budget in fiscal 1998 and our currency proves its
worth as all market participants watch the Asian currency turmoil. Rates end
October with the long Treasury bond at 6.15%, but shorter term rates have
declined less as the Federal Reserve remains on inflation watch until the
economy slows. The following table reviews Treasury rates from short term to
the long bond.

TREASURY INTEREST RATES

<TABLE>
<CAPTION>
TREASURY 4/30/97 10/31/97 CHANGE
-------- ------- -------- ------
<S> <C> <C> <C>
3 Month 5.24 5.19 -0.05
6 Month 5.52 5.31 -0.21
2 Year 6.27 5.61 -0.66
3 Year 6.40 5.68 -0.72
5 Year 6.57 5.72 -0.85
10 Year 6.71 5.83 -0.88
30 Year 6.95 6.15 -0.80
</TABLE>
Source: Bloomberg

The consensus economic outlook appears to be changing with growth rates being
revised down due to "Asian Flu," although concerns remain about a gradual
uptick in wage/inflation pressures. Long rates have declined in reaction to
slower growth forecasts, foreign money flows into the U.S. dollar, and even
asset allocation flows out of stocks into bonds. Shorter term rates are
hostage to the Federal Reserve's actions which are on hold at the moment.

This market environment of sharply declining rates will not favor our
investment style although absolute bond returns have improved. We are a
"bottom-up value manager" focused not on market timing but on security and
sector selection. This process seeks to produce a yield in the portfolio
higher than the market benchmark with returns that are less volatile. Our
focus on the so-called "spread sectors"--investment grade corporates,
mortgages, and asset-backed securities offers higher return potential, but the
recent market volatility has caused Treasury bonds to outperform over the past
month. We continue to believe that yield over time, not market timing, creates
wealth. At October 31, 1997, the 30 day SEC yield for the Institutional Class
Shares was 6.12% and the 30 day SEC yield for the Institutional Service Class
Shares was 5.87%.

1
<PAGE>

Current Portfolio characteristics are as follows:

<TABLE>
<CAPTION>
10/31/97
BHM&S 10/31/97
TOTAL LEHMAN
RETURN AGGREGATE
BOND BOND
PORTFOLIO INDEX
--------- ---------
<S> <C> <C>
Superior Returns
Below Average Volatility
Yield to Maturity 6.4% 6.3%
Current Yield 7.0% 6.8%
Quality AA+ AAA
Average Maturity 7.5 Yrs. 8.7 Yrs.
Modified Duration 4.9 Yrs. 5.1 Yrs.
Sectors*
U.S. Treasury/Agency 30.8% 50.0%
Mortgage-Backed 23.3% 29.8%
Asset-Backed 4.9% 0.9%
Industrial 17.3% 6.9%
Utility 0.4% 3.1%
Finance 21.1% 5.3%
Yankee 0.0% 4.0%
Cash 2.2% N/A
</TABLE>
* Sector percentages are based on net assets.

BHM&S TOTAL RETURN BOND PORTFOLIO INVESTMENT STRATEGIES

. CORPORATES: While yield spreads of investment grade corporate issues versus
Treasuries have widened, the solid credit fundamentals which support
outperformance of the sector persist. Favorable economic conditions of
growth with modest inflation have supported corporate earnings. The dollar
value of upgrades continues at twice the pace of downgrades. Over the fiscal
year to date the following names have been upgraded or watch listed for
upgrade: Southern California Edison A2 to A1 (6/13/97); Halliburton A2/A
watch up (6/11/97); NationsBank A1/A watch up. U.S. West was placed on
watchlist with negative implications due to corporate restructuring of its
cable business; however, a positive development has been Microsoft's new
investment position and expressed interest in the U.S. West cable
operations. Our selection decisions continue to focus on companies we
believe offer the strongest prospects for material credit improvement.

. MORTGAGES: Interest rate volatility rekindled investor fear of prepayments
causing mortgages to underperform comparable duration Treasuries. The
psychologically important 6% yield level on the ten-year Treasury created
minor selling pressures and wider spreads. The prospects of a resurgence in
refinancing activity could further add to spread risk, though seasonal
factors favor a slowing in the pace of housing activity. We have been
underweighted in the sector, but are considering the current higher than
average yield spreads attractive. We will be a buyer of this sector if yield
spreads move out to their widest levels of the past 12 months.

. ASSET-BACKED SECURITIES: Record new issue supply and other technical
conditions created marginal spread widening in this sector. Over the
trailing 12 months this sector has outperformed similar duration Treasuries.
Investor attention is now squarely centered on the anticipation of a new
class of asset-backed securities resulting from the electric utility
industry's "stranded asset" securitization. New legislative action is

2
<PAGE>

establishing a statutory framework for utilities to issue an estimated $50
billion in bonds backed by "transition charges" which will enable the
companies to more rapidly recover their investments in expensive nuclear
plants.

. TREASURY YIELD CURVE: Our strategy continues to favor those issues with the
most attractive "roll-down" maturity which concentrate in 2000-01, 2004-05,
and 2015-19. The yield curve has flattened by 14 basis points as measured by
the two-thirty year differential of +54 basis points. If this flattening of
the yield curve continues, it will favor a more bulleted maturity structure
concentrating in 7-9 year maturities.

INVESTMENT PERFORMANCE

The Portfolio has two separate classes of shares, Institutional Class Shares
("Institutional Shares") and Institutional Service Class Shares ("Service
Shares"). For the six months ended October 31, 1997, the absolute performance
has improved for both classes of shares since the April 1997 Annual Report.
The total return, encompassing both price change and income, for the
INSTITUTIONAL SHARES WAS 6.50% and the total return for the SERVICE SHARES WAS
6.40%, compared to the Lehman Aggregate Bond Index return of 7.07%.

Since inception on November 1, 1995 through October 31, 1997 the INSTITUTIONAL
SHARES ANNUALIZED TOTAL RETURN IS 6.66% and the annualized total return of the
SERVICE SHARES IS 6.39%, compared to the Lehman Aggregate Bond Index return of
7.23%. The shortfall in performance for both classes of shares compared to the
market index is largely explained by fund expenses that are not included in
the market index's return.

We continue to work on improving the prospects for this mutual fund. Assets
have grown from $17.1 million to $31.4 million since April. The NASDAQ ticker
symbol for the Institutional Shares is BHMSX and for the Service Shares the
ticker is BHYYX. We hope this review answers your questions regarding the
portfolio's management.

BARROW, HANLEY, MEWHINNEY & STRAUSS

DEFINITION OF THE COMPARATIVE INDEX
-----------------------------------

Lehman Brothers Aggregate Bond Index--is a fixed income market value-weighted
index that combines the Lehman Brothers Government Corporate Bond Index and
the Lehman Brothers Mortgage-Backed Securities Index. It includes fixed rate
issues of investment grade (BBB) or higher, with maturities of at least one
year and outstanding par values of at least $100 million for U.S. Government
issues and $25 million for others.

Comparisons of performance assume reinvestment of dividends.

The investment results presented in the Adviser's letter represent past
performance and should not be construed as a guarantee of future results. If
the Adviser didn't have temporary fee waivers and didn't assume expenses on
behalf of the Portfolio, total return for the Portfolio would have been lower.
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.

Please note that one cannot invest in an unmanaged index.

3
<PAGE>

BHM&S TOTAL RETURN BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS & NOTES (37.6%)
- -------------------------------------------------------------------------------
BANKS (6.0%)
Banc One Corp.
7.60%, 05/01/07....................................... $ 450,000 $ 481,905
Chase Manhattan Corp.
8.625%, 05/01/02...................................... 400,000 436,412
Chemical NY Corp.
9.75%, 06/15/99....................................... 205,000 216,886
First Chicago Corp.
9.875%, 08/15/00...................................... 225,000 245,734
NationsBank Corp. Senior Notes
7.00%, 09/15/01....................................... 500,000 512,480
-----------
1,893,417
- -------------------------------------------------------------------------------
FINANCIAL SERVICES (13.6%)
Associates Corp. of North America,
Series G
8.35%, 12/09/99...................................... 400,000 418,872
Series I
6.57%, 10/04/99...................................... 200,000 202,628
Caterpillar Financial Services, Series F
6.32%, 09/01/00....................................... 825,000 830,156
Chrysler Financial Corp.
6.95%, 03/25/02....................................... 500,000 511,420
Countrywide Home Loan, Series F
6.38%, 10/08/02....................................... 900,000 897,570
Ford Motor Credit Corp.
6.375%, 09/15/99...................................... 200,000 201,010
6.80%, 04/23/01....................................... 300,000 305,106
General Motors Acceptance Corp.
6.15%, 09/20/99....................................... 350,000 350,620
Travelers Property Casualty Corp.
6.75%, 04/15/01....................................... 549,000 556,016
-----------
4,273,398
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

4
<PAGE>

BHM&S TOTAL RETURN BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS & NOTES--(CONTINUED)
- --------------------------------------------------------------------------------
INDUSTRIAL (12.4%)
Atlantic Richfield Co.
8.50%, 04/01/12........................................ $ 225,000 $ 261,319
9.875%, 03/01/16....................................... 300,000 394,680
Belo (A.H.) Corp.
7.25%, 09/15/27........................................ 340,000 344,593
Dresser Industries, Inc.
6.25%, 06/01/00........................................ 500,000 501,390
Halliburton Co., Series A
6.30%, 08/05/02........................................ 545,000 552,494
7.53%, 05/12/17........................................ 175,000 187,687
May Department Stores Co.
7.625%, 08/15/13....................................... 650,000 707,655
Potash Corp.
7.125%, 06/15/07....................................... 425,000 438,116
Texaco Capital Corp.
6.19%, 07/09/03........................................ 500,000 495,651
-----------
3,883,585
- --------------------------------------------------------------------------------
TRANSPORTATION (4.4%)
CSX Corp.
7.05%, 05/01/02........................................ 700,000 717,500
Federal Express Corp.
9.65%, 06/15/12........................................ 250,000 310,525
Norfolk Southern Corp.
7.80%, 05/15/27........................................ 330,000 358,400
-----------
1,386,425
- --------------------------------------------------------------------------------
UTILITIES (1.2%)
Southern California Edison Co.
8.25%, 02/01/00........................................ 115,000 120,231
U.S. West Capital Funding, Inc.
6.85%, 01/15/02........................................ 250,000 253,470
-----------
373,701
- --------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES (COST $11,579,369)......... 11,810,526
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

5
<PAGE>

BHM&S TOTAL RETURN BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT SECURITIES (29.9%)
- --------------------------------------------------------------------------------
U.S. TREASURY BONDS (11.7%)
7.00%, 07/15/06........................................ $ 410,000 $ 439,176
10.375%, 11/15/12...................................... 1,645,000 2,172,946
8.75%, 05/15/17........................................ 640,000 823,200
8.125%, 08/15/19....................................... 205,000 251,061
-----------
3,686,383
- --------------------------------------------------------------------------------
U.S. TREASURY NOTES (18.2%)
7.125%, 09/30/99....................................... 3,385,000 3,474,398
7.75%, 02/15/01........................................ 1,170,000 1,239,837
6.75%, 08/15/26........................................ 645,000 693,175
6.625%, 02/15/27....................................... 275,000 291,585
-----------
5,698,995
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES (COST $9,189,769)....... 9,385,378
- --------------------------------------------------------------------------------
AGENCY SECURITIES (22.6%)
- --------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. (9.1%)
Gold Pool #C00436
7.50%, 12/01/25........................................ 2,786,751 2,851,180
- --------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (11.8%)
Gold Pool #E20271
7.00%, 11/01/11........................................ 782,867 795,017
Pool #303972
7.00%, 07/01/03........................................ 176,296 178,292
Pool #349359
7.00%, 06/01/26........................................ 1,243,590 1,249,808
Pool #394444
7.00%, 07/01/27........................................ 1,480,533 1,485,153
-----------
3,708,270
- --------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (1.7%)
Pool #407633
7.50%, 07/15/25........................................ 513,893 525,774
- --------------------------------------------------------------------------------
TOTAL AGENCY SECURITIES (COST $6,907,482)................ 7,085,224
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

6
<PAGE>

BHM&S TOTAL RETURN BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
ASSET--BACKED SECURITIES (4.8%)
- -------------------------------------------------------------------------------
Chase Manhattan Auto Owner Trust
Series 1996-C A3
5.95%, 11/15/00...................................... $ 150,000 $ 149,906
Chase Manhattan Credit Card Master Trust
Series 1996-4, Class A
6.73%, 02/15/03...................................... 800,000 809,248
Green Tree Financial Corp.
Series 1997-2, Class A4
6.66%, 06/15/28...................................... 330,000 333,402
NationsBank Auto Owner Trust
Series 1996-A A3
6.375%, 07/15/00..................................... 200,000 201,080
- -------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES (COST $1,493,805)......... 1,493,636
- -------------------------------------------------------------------------------
SHORT-TERM INVESTMENT (2.0%)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT
Chase Securities, Inc. 5.60%, dated 10/31/97, due
11/03/97, to be repurchased at $624,291, collateral-
ized by $598,274 of various U.S. Treasury Notes,
5.50%-8.75%, due from 05/15/00-06/30/02, valued at
$624,352 (COST $624,000).............................. 624,000 624,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (96.9%) (COST $29,794,425)(a)......... 30,398,764
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET) (3.1%)............... 956,697
- -------------------------------------------------------------------------------
NET ASSETS (100%)....................................... $31,355,461
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
+ See Note A to Financial Statements.
(a) The cost for federal income tax purposes was $29,794,425. At October 31,
1997, net unrealized appreciation for all securities based on tax cost was
$604,339. This consisted of aggregate gross unrealized appreciation for
all securities of $611,513 and aggregate gross unrealized depreciation for
all securities of $7,174.

The accompanying notes are an integral part of the financial statements.

7
<PAGE>

BHM&S TOTAL RETURN BOND PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1997 (Unaudited)

<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at Cost.............................................. $29,794,425
===========
Investments, at Value............................................. $30,398,764
Cash.............................................................. 461
Interest Receivable............................................... 420,138
Receivable for Investments Sold................................... 344,437
Receivable for Portfolio Shares Sold.............................. 533,738
Receivable due from Investment Adviser--Note B.................... 10,786
Other Assets...................................................... 708
- -------------------------------------------------------------------------------
Total Assets..................................................... 31,709,032
- -------------------------------------------------------------------------------
LIABILITIES
Payable for Investments Purchased................................. 292,453
Payable for Portfolio Shares Redeemed............................. 25,348
Payable for Administrative Fees--Note C........................... 8,879
Payable for Distribution and Service Fees--Note E................. 3,208
Payable for Trustees' Fees--Note G................................ 609
Other Liabilities................................................. 23,074
- -------------------------------------------------------------------------------
Total Liabilities................................................ 353,571
- -------------------------------------------------------------------------------
NET ASSETS......................................................... $31,355,461
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in Capital................................................... $30,469,774
Undistributed Net Investment Income............................... 168,357
Accumulated Net Realized Gain..................................... 112,991
Unrealized Appreciation........................................... 604,339
- -------------------------------------------------------------------------------
NET ASSETS......................................................... $31,355,461
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
Net Assets........................................................ $16,323,507
Net Asset Value, Offering and Redemption Price Per Share
1,582,847 shares outstanding (Unlimited authorization, no par
value)........................................................... $ 10.31
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSTITUTIONAL SERVICE CLASS SHARES
Net Assets........................................................ $15,031,954
Net Asset Value, Offering and Redemption Price Per Share
1,458,587 shares outstanding (Unlimited authorization, no par
value)........................................................... $ 10.31
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

8
<PAGE>

BHM&S TOTAL RETURN BOND PORTFOLIO
STATEMENT OF OPERATIONS
For the Six Months Ended October 31, 1997 (Unaudited)

<TABLE>
- ---------------------------------------------------------------------------------
<S> <C> <C>
INTEREST INCOME
Interest.................................................. $ 849,677
- ---------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees--Note B
Basic Fees............................................... $ 46,607
Less: Fees Waived........................................ (46,607) --
--------
Administrative Fees--Note C............................... 52,736
Printing Fees............................................. 27,979
Filing and Registration Fees.............................. 14,354
Account Services Fees--Note F............................. 13,175
Distribution and Service Fees--Note E..................... 11,909
Audit Fees................................................ 7,574
Legal Fees................................................ 6,407
Custodian Fees--Note D.................................... 3,153
Trustees' Fees--Note G.................................... 1,293
Other Expenses............................................ 902
Fees Assumed by Adviser--Note B........................... (53,460)
- ---------------------------------------------------------------------------------
Total Expenses........................................... 86,022
Expense Offset--Note A.................................... (1,280)
- ---------------------------------------------------------------------------------
Net Expenses............................................. 84,742
- ---------------------------------------------------------------------------------
NET INVESTMENT INCOME...................................... 764,935
- ---------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS........................... 156,812
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON IN-
VESTMENTS................................................. 678,393
- ---------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS.................................... 835,205
- ---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....... $1,600,140
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

9
<PAGE>

BHM&S TOTAL RETURN BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
OCTOBER 31, ENDED
1997 APRIL 30,
(UNAUDITED) 1997
- ---------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Income................................. $ 764,935 $ 696,689
Net Realized Gain (Loss).............................. 156,812 (41,214)
Net Change in Unrealized Appreciation/Depreciation.... 678,393 61,915
- ---------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Opera-
tions.............................................. 1,600,140 717,390
- ---------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income:
Institutional Class.................................. (426,339) (462,628)
Institutional Service Class.......................... (287,341) (152,667)
- ---------------------------------------------------------------------------------
Total Distributions................................. (713,680) (615,295)
- ---------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE K):
Institutional Class:
Issued............................................... 11,537,101 10,616,111
In Lieu of Cash Distributions........................ 426,339 462,628
Redeemed............................................. (9,273,840) (532,897)
- ---------------------------------------------------------------------------------
Net Increase from Institutional Class Shares........ 2,689,600 10,545,842
- ---------------------------------------------------------------------------------
Institutional Service Class:
Issued............................................... 11,969,945 2,374,305
In Lieu of Cash Distributions........................ 279,748 152,667
Redeemed............................................. (1,577,252) (1,383,926)
- ---------------------------------------------------------------------------------
Net Increase from Institutional Service Class
Shares............................................. 10,672,441 1,143,046
- ---------------------------------------------------------------------------------
Net Increase from Capital Share Transactions........ 13,362,041 11,688,888
- ---------------------------------------------------------------------------------
Total Increase........................................ 14,248,501 11,790,983
Net Assets:
Beginning of Period................................... 17,106,960 5,315,977
- ---------------------------------------------------------------------------------
End of Period (including undistributed net investment
income of $168,357 and $117,102, respectively)....... $31,355,461 $17,106,960
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

10
<PAGE>

BHM&S TOTAL RETURN BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
INSTITUTIONAL CLASS INSTITUTIONAL SERVICE CLASS
---------------------------------- ----------------------------------
SIX MONTHS NOVEMBER 1, SIX MONTHS NOVEMBER 1,
ENDED YEAR 1995*** ENDED YEAR 1995***
OCTOBER 31, ENDED TO OCTOBER 31, ENDED TO
1997 APRIL 30, APRIL 30, 1997 APRIL 30, APRIL 30,
(UNAUDITED) 1997++ 1996++ (UNAUDITED) 1997++ 1996++
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 9.96 $ 9.85 $10.00 $ 9.95 $ 9.84 $10.00
- -------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income.. 0.32 0.60 0.28 0.26 0.57 0.27
Net Realized and
Unrealized Gain (Loss)
on Investments........ 0.32 0.05 (0.27) 0.37 0.05 (0.27)
- -------------------------------------------------------------------------------------------------
Total from Investment
Operations........... 0.64 0.65 0.01 0.63 0.62 --
- -------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income.. (0.29) (0.54) (0.16) (0.27) (0.51) (0.16)
- -------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD................. $ 10.31 $ 9.96 $ 9.85 $ 10.31 $ 9.95 $ 9.84
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
TOTAL RETURN+........... 6.50%** 6.75% 0.08%** 6.40%** 6.47% (0.07)%**
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL
DATA
Net Assets, End of
Period (Thousands)..... $16,324 $13,062 $2,445 $15,032 $4,045 $2,871
Ratio of Expenses to
Average Net Assets..... 0.56%* 0.57% 0.61%* 0.81%* 0.82% 0.83%*
Ratio of Net Investment
Income to Average Net
Assets................. 5.88%* 6.01% 5.53%* 5.62%* 5.78% 5.44%*
Portfolio Turnover Rate. 61% 151% 55% 61% 151% 55%
- -------------------------------------------------------------------------------------------------
Voluntarily Waived Fees
and Expenses Assumed by
the Adviser Per Share.. $ 0.04 $ 0.12 $ 0.23 $ 0.03 $ 0.14 $ 0.20
Ratio of Expenses to
Average Net Assets
Including Expense
Offsets................ 0.55%* 0.55% 0.55%* 0.80%* 0.80% 0.80%*
- -------------------------------------------------------------------------------------------------
</TABLE>
* Annualized
** Not Annualized
*** Commencement of Operations
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser during the period.
++ Per share amounts are based on average outstanding shares.

The accompanying notes are an integral part of the financial statements.

11
<PAGE>

BHM&S TOTAL RETURN BOND PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

UAM Funds Trust and UAM Funds, Inc. (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The BHM&S
Total Return Bond Portfolio (the "Portfolio"), a portfolio of UAM Funds Trust,
is a diversified, open-end management investment company. At October 31, 1997,
the UAM Funds were comprised of forty-two active portfolios. The financial
statements of the remaining portfolios are presented separately. The Portfolio
is authorized to offer two separate classes of shares--Institutional Class
Shares and Institutional Service Class Shares. Both classes of shares have
identical voting rights (except Institutional Service Class shareholders have
exclusive voting rights with respect to matters relating to distribution and
shareholder servicing of such shares), dividend, liquidation and other rights.
The objective of the BHM&S Total Return Bond Portfolio is to provide a maximum
long term total return consistent with reasonable risk to principal by
investing in investment grade fixed income securities of varying maturities.

1. SECURITY VALUATION: Fixed income securities are stated on the basis of
valuations provided by brokers and/or a pricing service which uses
information with respect to transactions in fixed income securities,
quotations from dealers, market transactions in comparable securities and
various relationships between securities in determining value. 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 using methods
determined by the Board of Trustees.

At April 30, 1997, the Portfolio had available a capital loss carryover for
federal income tax purposes of $34,317 which will expire on April 30, 2005.

3. REPURCHASE AGREEMENTS: In connection with transactions involving
repurchase agreements, the Portfolio's custodian bank takes possession of
the underlying securities, the value of which exceeds the principal 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 adequacy of the
collateral. In the event of default on the obligation to repurchase, the
Portfolio has the right to liquidate the collateral and apply the proceeds
in satisfaction of the obligation. In the event of default or bankruptcy by
the other party 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 balances
into a joint trading account which invests in one or more repurchase
agreements. This joint repurchase agreement is covered by the same
collateral requirements as discussed above.

12
<PAGE>

BHM&S TOTAL RETURN BOND PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

4. DISTRIBUTIONS TO SHAREHOLDERS: The Portfolio will normally distribute
substantially 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 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 differences
are primarily due to differing book and tax treatments for paydown gains
(losses), post-October capital losses and the timing of the recognition of
gains or losses on investments.

5. OTHER: Security transactions are accounted for on trade date, the date
the trade was executed. Costs used in determining realized gains and losses
on the sale of investment securities are based on the specific
identification method. 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 which
cannot be directly attributed 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 or losses are
allocated to each class of shares based upon their relative net assets.
Custodian fees for the Portfolio have been increased to include expense
offsets, if any, for custodian balance credits.

B. ADVISORY SERVICES: Under the terms of an investment advisory agreement,
Barrow, Hanley, Mewhinney, & Strauss, Inc. (the "Adviser"), a wholly-owned
subsidiary of United Asset Management Corporation ("UAM"), provides investment
advisory services to the Portfolio at a monthly fee calculated at an annual
rate of 0.35% of average daily net assets for the month. Through December
31,1997, 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 expense offset
arrangements, from exceeding 0.55% and 0.80% of average daily net assets of
the Portfolios' Institutional Class Shares and Service Class Shares,
respectively.

13
<PAGE>

BHM&S TOTAL RETURN BOND PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

services. Pursuant to the Mutual Funds Service Agreement, the Administrator
pays CGFSC a monthly fee. For the six months ended October 31, 1997, $47,446
was paid to CGFSC for its services.

D. CUSTODIAN: The Chase Manhattan Bank (the "Bank"), an affiliate of CGFSC, is
custodian for the Portfolio's assets 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 Portfolio. The
Portfolio has adopted Distribution and Service Plans (the "Plans") on behalf
of the Service Class Shares pursuant to Rule 12b-1 under the Investment
Company Act of 1940. Under the Plans, the Portfolio may not incur distribution
and service fees which exceed an annual rate of 0.75% of the Portfolio's net
assets, however, the Board has currently limited aggregate payments under the
Plans to 0.50% per annum of the Portfolio's net assets. The Portfolio's
Service Class Shares are not currently making payments for distribution fees,
however the Portfolio does pay 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.

G. TRUSTEES' FEES: Each Trustee, who is not an officer or affiliated person,
receives $2,000 per meeting attended, 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 and reimbursement of expenses incurred in
attending Trustee meetings.

H. PURCHASES AND SALES: For the six months ended October 31, 1997, the
Portfolio made purchases of $11,766,775 and sales of $3,160,131 of investment
securities other than long-term U.S. Government and short-term securities.
Purchases and sales of long-term U.S. Government securities total $15,589,100
and $11,703,735, respectively.

J. OTHER: At October 31, 1997, 81.1% and 58.4% of total shares outstanding
were held by 4 and 3 record shareholders of the Institutional Class Shares and
the Institutional Service Class Shares, respectively, owning more than 10% of
the aggregate total shares outstanding.

14
<PAGE>

BHM&S TOTAL RETURN BOND PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

K. CAPITAL SHARE TRANSACTIONS: Transactions in capital shares for the
Portfolios, by class, were as follows:

<TABLE>
<CAPTION>
INSTITUTIONAL CLASS INSTITUTIONAL SERVICE
SHARES CLASS SHARES
------------------------------- -------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, 1997 APRIL 30, 1997 OCTOBER 31, 1997 APRIL 30, 1997
---------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
Shares Issued........... 1,140,396 1,069,573 1,179,309 239,518
In Lieu of Cash
Distributions.......... 42,000 46,682 27,533 15,482
Shares Redeemed......... (910,684) (53,183) (154,918) (140,200)
--------- --------- --------- --------
Net Increase from
Capital Share
Transactions........... 271,712 1,063,072 1,051,924 114,800
========= ========= ========= ========
</TABLE>

15
<PAGE>

- -------------------------------------------------------------------------------

UAM FUNDS
MJI INTERNATIONAL EQUITY PORTFOLIO

- -------------------------------------------------------------------------------
OFFICERS AND TRUSTEES

Norton H. Reamer Peter M. Whitman, Jr.
Trustee, President Trustee
and Chairman William H. Park
John T. Bennett, Jr. Vice President
Trustee Michael E. DeFao
Nancy J. Dunn Secretary
Trustee Karl O. Hartman
Philip D. English Assistant Secretary
Trustee Gary L. French
William A. Humenuk Treasurer
Trustee Robert R. Flaherty
Charles H. Salisbury, Jr. Assistant Treasurer
Trustee and Executive Gordon M. Shone
Vice President Assistant Treasurer
- -------------------------------------------------------------------------------
INVESTMENT ADVISER
Murray Johnstone International Ltd.
John Hancock Center, Suite 3640
875 North Michigan Avenue, Chicago, IL 60611
- -------------------------------------------------------------------------------
ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street
Boston, MA 02110
- -------------------------------------------------------------------------------
CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center Brooklyn, NY 11245
- -------------------------------------------------------------------------------
LEGAL COUNSEL
Stradley, Ronon, Stevens & Young LLP
2600 One Commerce Square Philadelphia, PA 19103
- -------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
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.

- -------------------------------------------------------------------------------

[LOGO OF UAM Funds APPEARS HERE]

MJI INTERNATIONAL EQUITY PORTFOLIO

- -------------------------------------------------------------------------------

SEMI-ANNUAL REPORT
OCTOBER 31, 1997
<PAGE>

DEAR SHAREHOLDER,

MJI INTERNATIONAL EQUITY PORTFOLIO, SIX MONTHS ENDED OCTOBER 31, 1997

PERFORMANCE

During the six months ended October 31, 1997, the return for the Portfolio was
3.38% compared with 3.15% for the MSCI EAFE Index. For the same time period,
the Portfolio's Institutional Service Class Shares returned 3.19%. The period
was characterized by the stark difference between returns of markets in Asia,
which were dragged down by weak fundamentals and declining currencies, and the
relative resilience of markets in Europe which still enjoyed moderate growth.
Late in the period, however, all markets were impacted by events.

ECONOMIC AND MARKET REVIEW

The collapse in Asia began in Thailand and led to a domino effect on the
markets and currencies of neighboring countries. Malaysia, Indonesia and the
Philippines were worst hit but Singapore also came under pressure. Meanwhile,
the Japanese economy, which had shown some life early in the year, experienced
a weak second quarter. The European markets welcomed the stable interest rate
background and made steady progress. However, as intervention by the
International Monetary Fund (IMF) in Thailand and later in Malaysia and
Indonesia began to stabilize the situation, confidence began to return to the
region.

The European markets returned 12.3% for the period. Strong early in the year,
Germany's gloss began to fade when several large cash raising issues were
announced. In France, restructuring was seen as positive for the market. The
steady improvement in inflation in Italy, which allowed the government to
continue to reduce interest rates, led to a surge in the market of 20.3%. The
UK also saw a steady market on the back of slowing retail sales and moderate
inflationary pressure. Late in September, press reports that the government
would take part in the single European currency were welcomed, leading to a
surge in equities. The government has made moves to join the single currency
although the date of entry has yet to be confirmed. Assuming the rate at which
the pound goes in is appropriate, this will be a sound policy, given the high
percentage of trade which the UK conducts with Europe. The late move in UK
equity prices led to a return on the market of 14.0% for the period.

Figures released during the period made it clear that the Japanese economy had
faltered through the middle of the year. On top of this a setback to trade
with Southeast Asia, which constitutes a high proportion of Japan's overall
trade, can only make matters worse. Results from the September half year
should begin to give some impression of the depth of the problems but the
impact will be felt for some months to come. Clearly, with a weak domestic
economy the government has few options other than deregulation (streamlining
the bureaucracy and reducing the costs associated with red tape) and allowing
the currency to drift lower. Against a poor economic background, the Japanese
market ended the period down 5.5%.

The Southeast Asian governments have begun to address their problems and reach
agreements with the IMF. The problems of the region stem from over-development
in the early 1990's, a time of heavy capital flows into the region. This led
to the over-supply of property and infrastructure which could not cope.
Political leadership and control of the banking systems have also been shown
to be weak. The key to recovery will be the speed with which governments allow
the markets to correct imbalances in property prices and resist the temptation
to support poor quality financial institutions. The region will not escape
deflationary pressures over the coming months but a positive approach to the
issues will avoid the long road to recovery seen in Japan. Australia and

1
<PAGE>

New Zealand, which supply much of the raw materials for industry in Asia will
also be caught in the slowdown but the lower interest rate environment will
continue to support financial stocks in those markets.

The Latin American markets demonstrated their resilience in the face of the
problems in Asia early in the period but ultimately suffered when investors
sought to realize profits to offset losses in Asia. Chile ended the period
down 3.6%; Argentina fell 12.6% but Mexico, where earnings continued to exceed
expectations, saw the market up 12.6%.

INVESTMENT STRATEGY

Early in 1997 the Portfolio had been heavily overweight in the Asian markets,
but as the situation in the region deteriorated we reduced exposure, selling
all remaining holdings in Malaysia in early August. Since those sales were
completed the market fell a further 44.5% in dollars. The Portfolio was not
invested in Thailand, the Philippines or Indonesia. Investments in Singapore
were reduced but since this market still has the strongest economic
fundamentals of the region, we remain overweight versus the small percentage
which Singapore represents in the benchmark. Exposure to Australia was also
reduced. Holdings which remain in Australia are financial stocks which will be
beneficiaries of the easier interest rate background which we expect to see in
the country as economic activity slows.

The focus of the Portfolio has continued to be on the European markets,
however, within Europe we shifted the emphasis from Germany, taking profits in
Volkswagen, to Italy and France. Italy has been double weighted in the
portfolio compared with the index as the government's success in reducing
inflation and interest rates in addition to the restructuring program in
industry encouraged the market to be the best in Europe during the quarter.
The reductions to Germany and the Netherlands were also correct decisions
since those markets have begun to underperform Europe as a whole.

As the new government becomes established in the UK it is creating a
commendable record, helped by the moderating of the pace of the economy and
the beginnings of the shift towards integration of the pound with the single
European currency. While the Portfolio was underweight in the UK, these
policies should set the stage for a sound market over the next few months. We
have therefore begun to increase exposure and broaden investments to include
manufacturers and exporters which will benefit if the pound begins to ease
back in this process.

While we were becoming more optimistic on the prospects for Japan and had
begun to raise exposure to the market, the dramatic weakening of the economy
in the middle of the year and the expectations of a slow second half as a
result of the weakness in Southeast Asia have led us to put any further
investments on hold. While underweight in the market during the period, stock
selection has outperformed the market overall.

MARKET OUTLOOK

During the third quarter, investors' nerves were tested when the crisis in
markets in the Far East impacted all world markets. Interestingly, those
markets with strong fundamentals rebounded in September but volatility was a
feature of the period and this looks set to continue for some time.

In the coming months we see the two tier structure continuing: markets in the
Far East will remain weak until it is clear that measures to strengthen
economies and currencies are in place. Conversely, the European markets which
reflect stronger economies are enjoying progress which we expect to continue.
Developments which could

2
<PAGE>

potentially upset this scenario are twofold: either earnings will disappoint,
leaving current stock prices at too high a level, or the interest rate cycle
will turn, probably with the Fed and the Bundesbank making the first moves.
This will also emphasize the high prices currently being paid for stock and
could lead to a correction. We believe that while inflation in Germany has
been rising, albeit from very low levels, unemployment is also growing and
moves to raise rates will only make the employment situation worse. Although
the US economy continues to grow at a steady pace, we have seen no evidence of
inflation and if the Fed continues to focus on this statistic it will be able
to postpone any rise until late 1997 or early 1998. We will therefore continue
with the current investment stance: focus on Europe, and in particular, the
UK, maintaining an underweight exposure to South East Asia and a small
exposure to Latin America.

Murray Johnstone International Ltd.

DEFINITION OF THE COMPARATIVE INDEX

The Morgan Stanley Capital International EAFE Index is an unmanaged index
composed of arithmetic, market value weighted averages of the performance of
over 900 securities listed on the stock exchanges of countries in Europe,
Australia and the Far East.

Comparisons of performance assume reinvestment of dividends.

Please note that one cannot invest in an unmanaged index.

3
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (88.5%)
- --------------------------------------------------------------------------------
ARGENTINA (3.0%)
Banco Frances del Rio de la Plata S.A. ADR................. 8,050 $ 198,231
*Disco S.A. ADR............................................ 6,000 243,000
Telecom Argentina S.A. ADR................................. 14,200 359,438
YPF S.A. ADR............................................... 8,600 275,200
-----------
1,075,869
- --------------------------------------------------------------------------------
AUSTRALIA (1.9%)
Commonwealth Bank of Australia............................. 60,000 689,641
- --------------------------------------------------------------------------------
BELGIUM (3.1%)
Fortis AG.................................................. 3,840 729,265
UCB S.A. .................................................. 110 380,304
-----------
1,109,569
- --------------------------------------------------------------------------------
CHILE (3.2%)
Cia. de Telecomunicaciones de Chile S.A. ADR............... 25,000 693,750
Madeco S.A. ADR............................................ 7,500 158,438
Quimica y Minera Chile S.A. ADR............................ 6,200 321,625
-----------
1,173,813
- --------------------------------------------------------------------------------
FINLAND (2.6%)
Oy Nokia AB, Series A...................................... 10,990 959,584
- --------------------------------------------------------------------------------
FRANCE (7.2%)
Banque Nationale de Paris.................................. 3,590 158,737
Cap Gemini Sogeti S.A. .................................... 5,470 434,405
Cie Generale des Eaux...................................... 3,380 394,434
Lyonnaise des Eaux-Dumez................................... 1,034 107,396
Michelin, Class B.......................................... 6,270 321,703
*SGS-Thomson Microelectronics N.V. ........................ 5,400 384,370
Total S.A., Class B........................................ 7,300 810,113
-----------
2,611,158
- --------------------------------------------------------------------------------
GERMANY (4.6%)
Allianz AG................................................. 2,970 670,223
Linde AG................................................... 960 584,755
Mannesmann AG.............................................. 1,003 424,753
-----------
1,679,731
- --------------------------------------------------------------------------------
HONG KONG (3.9%)
Cheung Kong Holdings, Ltd. ................................ 80,000 556,274
Hong Kong Land Holdings, Ltd. ADR.......................... 150,000 342,000
</TABLE>

The accompanying notes are an integral part of the financial statements.

4
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- --------------------------------------------------------------------------------
HONG KONG--(CONTINUED)
Hutchison Whampoa, Ltd. ................................... 50,000 $ 346,054
Swire Pacific, Ltd., Class A............................... 35,000 186,999
-----------
1,431,327
- --------------------------------------------------------------------------------
IRELAND (1.7%)
Allied Irish Banks plc..................................... 44,143 371,709
Bank of Ireland............................................ 20,770 263,039
-----------
634,748
- --------------------------------------------------------------------------------
ITALY (3.9%)
ENI S.p.A. ................................................ 24,000 134,936
Telecom Italia Mobile S.p.A. .............................. 223,050 827,257
Telecom Italia S.p.A. ..................................... 73,650 461,495
-----------
1,423,688
- --------------------------------------------------------------------------------
JAPAN (13.0%)
Canon Sales Co., Inc. ..................................... 17,000 309,425
Dai-Ichi Kangyo Bank, Ltd.................................. 31,000 262,799
Fuji Machine Manufacturing Co.............................. 11,000 319,066
Fuji Photo Film Co......................................... 10,000 362,367
Fujitsu, Ltd. ............................................. 30,000 329,122
Hitachi, Ltd. ............................................. 36,000 276,762
JUSCO Co., Ltd. ........................................... 8,000 178,856
Matsumoto Kenko Co., Ltd................................... 400 2,606
Matsushita Communication Industrial........................ 9,000 317,902
Murata Manufacturing Co., Ltd. ............................ 9,000 365,027
Nippon Zeon Co., Ltd. ..................................... 83,000 300,765
Nissan Motor Co., Ltd. .................................... 33,000 175,806
Nitto Denko Corp........................................... 16,000 288,564
Ricoh Co., Ltd............................................. 24,000 309,176
Santen Pharmaceutical...................................... 1,000 17,703
Shin-Etsu Chemical Co., Ltd. .............................. 13,000 317,653
Shiseido Co., Ltd. ........................................ 20,000 272,606
Sumitomo Electric Industries............................... 26,000 343,584
-----------
4,749,789
- --------------------------------------------------------------------------------
MEXICO (2.1%)
Cifra S.A. de C.V. ADR Class B............................. 117,000 227,881
Grupo Imsa, S.A. de C.V. ADR............................... 9,000 214,312
</TABLE>

The accompanying notes are an integral part of the financial statements.

5
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- --------------------------------------------------------------------------------
MEXICO--(CONTINUED)
*Grupo Industrial Durango ADR.............................. 24,000 $ 312,000
-----------
754,193
- --------------------------------------------------------------------------------
NETHERLANDS (2.9%)
ING Groep N.V. ............................................ 7,160 300,639
Vendex International N.V. BDR.............................. 5,320 290,531
VNU........................................................ 20,040 474,930
-----------
1,066,100
- --------------------------------------------------------------------------------
NEW ZEALAND (2.0%)
Lion Nathan, Ltd. ......................................... 75,000 181,090
Telecom Corp. of New Zealand, Ltd. ........................ 110,000 532,564
-----------
713,654
- --------------------------------------------------------------------------------
PORTUGAL (2.1%)
Portugal Telecom S.A. (Registered)......................... 18,200 746,945
- --------------------------------------------------------------------------------
SINGAPORE (1.5%)
City Developments, Ltd..................................... 70,000 293,613
Wing Tai Holdings, Ltd..................................... 210,000 266,921
-----------
560,534
- --------------------------------------------------------------------------------
SOUTH AFRICA (2.1%)
Standard Bank Investment Corp., Ltd. ...................... 18,000 762,775
- --------------------------------------------------------------------------------
SPAIN (3.9%)
Banco Santander S.A. ...................................... 12,290 344,394
*Endesa S.A. .............................................. 27,280 514,009
Telefonica de Espana S.A. ................................. 20,330 555,014
-----------
1,413,417
- --------------------------------------------------------------------------------
SWITZERLAND (4.4%)
Novartis AG (Registered)................................... 371 580,938
Zurich Versicherungs (Registered).......................... 2,470 1,019,393
-----------
1,600,331
- --------------------------------------------------------------------------------
UNITED KINGDOM (19.4%)
Abbey National plc......................................... 32,200 512,037
British Aerospace plc...................................... 18,400 488,272
British Airport Authority plc.............................. 22,400 206,656
Burton Group plc........................................... 200,000 427,738
Cadbury Schweppes plc...................................... 39,300 395,531
</TABLE>

The accompanying notes are an integral part of the financial statements.

6
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
UNITED KINGDOM--(CONTINUED)
Carlton Communications plc............................. 48,500 $ 400,668
Grand Metropolitan plc................................. 36,900 333,001
*Halifax plc........................................... 42,000 475,544
Kingfisher plc......................................... 29,500 424,567
Ladbroke Group plc..................................... 89,800 402,184
Lloyds TSB Group plc................................... 38,020 475,122
*Norwich Union plc..................................... 76,400 435,722
Safeway plc............................................ 57,900 377,075
Shell Transport & Trading Co. plc...................... 63,300 448,874
SmithKline Beecham plc................................. 42,900 406,577
Williams Holdings plc.................................. 71,200 427,563
Wolseley plc........................................... 51,000 424,957
-----------
7,062,088
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $30,722,982).................. 32,218,954
- -------------------------------------------------------------------------------
<CAPTION>
NO. OF
WARRANTS
- -------------------------------------------------------------------------------
<S> <C> <C>
WARRANTS (0.0%)
- -------------------------------------------------------------------------------
FRANCE (0.0%)
*Cie Generale des Eaux, expiring 05/02/01 (COST $0).... 3,380 1,788
- -------------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT
- -------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT (9.8%)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT
Chase Securities, Inc. 5.60%, dated 10/31/97, due
11/03/97, to be repurchased at $3,585,673,
collateralized by $3,436,242 of various U.S. Treasury
Notes, 5.50%-8.75%, due from 05/15/00-06/30/02, valued
at $3,586,022 (COST $3,584,000)....................... $3,584,000 3,584,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (98.3%) (COST $34,306,982)(a)......... 35,804,742
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET) (1.7%)............... 603,736
- -------------------------------------------------------------------------------
NET ASSETS (100%)....................................... $36,408,478
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

7
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

+ See Note A to Financial Statements.
* Non-Income Producing Security
ADR--American Depositary Receipt
BDR--British Depositary Receipt
(a) The cost for federal income tax purposes was $34,306,982. At October 31,
1997, net unrealized appreciation for all securities based on tax cost was
$1,497,760. This consisted of aggregate gross unrealized appreciation for
all securities of $3,710,871 and aggregate gross unrealized depreciation
for all securities of $2,213,111.

The accompanying notes are an integral part of the financial statements.

8
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

At October 31, 1997 sector diversification of the Portfolio was as follows:

<TABLE>
<CAPTION>
% OF
NET
SECTOR DIVERSIFICATION ASSETS VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
Aerospace & Defense........................................ 1.3% $ 488,272
Agriculture................................................ 3.0 1,095,889
Automotive................................................. 0.5 175,806
Banks...................................................... 10.5 3,840,253
Beverages, Food & Tobacco.................................. 1.6 576,621
Broadcasting & Publishing.................................. 2.4 875,599
Building Materials......................................... 1.2 427,564
Capital Equipment.......................................... 1.2 424,753
Chemicals.................................................. 1.8 639,278
Commercial Services........................................ 1.3 475,544
Computers.................................................. 0.9 329,122
Construction............................................... 0.3 107,396
Consumer Durables.......................................... 0.9 333,001
Consumer Non-Durables...................................... 0.7 272,606
Electronics................................................ 4.9 1,781,607
Energy..................................................... 0.8 275,200
Entertainment & Leisure.................................... 1.1 402,184
Financial Services......................................... 3.1 1,113,574
Holding Company............................................ 0.7 266,921
Industrial................................................. 2.5 903,821
Insurance.................................................. 6.6 2,418,880
Manufacturing.............................................. 1.9 686,730
Metals..................................................... 0.4 158,438
Natural Resources.......................................... 1.2 427,563
Office Equipment........................................... 0.8 309,176
Oil & Gas.................................................. 3.8 1,393,922
Paper & Packaging.......................................... 0.9 312,000
Pharmaceuticals............................................ 2.2 804,584
Real Estate................................................ 3.3 1,191,887
Repurchase Agreement....................................... 9.8 3,584,000
Retail..................................................... 5.5 1,990,791
Services................................................... 2.0 743,830
Technology................................................. 1.0 362,367
Telecommunications......................................... 13.5 4,927,089
Transportation............................................. 1.1 393,655
Utilities.................................................. 3.6 1,293,031
Warrants................................................... 0.0 1,788
----- -----------
Total Investments.......................................... 98.3% $35,804,742
Other Assets and Liabilities............................... 1.7 603,736
----- -----------
Net Assets................................................. 100.0% $36,408,478
===== ===========
</TABLE>

The accompanying notes are an integral part of the financial statements.

9
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1997 (Unaudited)

<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at Cost.............................................. $34,306,982
===========
Investments, at Value............................................. $35,804,742
Cash.............................................................. 503
Foreign Currency (Cost $60,964)................................... 61,561
Receivable for Investments Sold................................... 513,871
Receivable for Portfolio Shares Sold.............................. 51,193
Dividends Receivable.............................................. 51,016
Foreign Withholding Tax Reclaim Receivable........................ 25,900
Deferred Organization Costs--Note A............................... 3,647
Interest Receivable............................................... 558
Other Assets...................................................... 942
- -------------------------------------------------------------------------------
Total Assets..................................................... 36,513,933
- -------------------------------------------------------------------------------
LIABILITIES
Payable for Investment Advisory Fees--Note B...................... 20,516
Payable for Administrative Fees--Note C........................... 11,578
Payable for Distribution and Service Fees--Note E................. 1,122
Payable for Trustees' Fees--Note G................................ 599
Other Liabilities................................................. 71,640
- -------------------------------------------------------------------------------
Total Liabilities................................................ 105,455
- -------------------------------------------------------------------------------
NET ASSETS......................................................... $36,408,478
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in Capital................................................... $33,435,442
Undistributed Net Investment Income............................... 159,715
Accumulated Net Realized Gain..................................... 1,312,655
Unrealized Appreciation........................................... 1,500,666
- -------------------------------------------------------------------------------
NET ASSETS......................................................... $36,408,478
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
Net Assets........................................................ $30,568,514
Net Asset Value, Offering and Redemption Price Per Share 2,777,376
shares outstanding (Unlimited authorization, no par value)....... $ 11.01
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSTITUTIONAL SERVICE CLASS SHARES
Net Assets........................................................ $ 5,839,964
Net Asset Value, Offering and Redemption Price Per Share 531,327
shares outstanding (Unlimited authorization, no par value)....... $ 10.99
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

10
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
For the Six Months Ended October 31, 1997 (Unaudited)

<TABLE>
- ---------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends................................................ $ 416,543
Interest................................................. 59,051
Less Foreign Taxes Withheld.............................. (40,599)
- ---------------------------------------------------------------------------------
Total Income............................................ 434,995
- ---------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees--Note B
Basic Fees.............................................. $ 144,461
Less: Fees Waived....................................... (30,409) 114,052
---------
Administrative Fees--Note C.............................. 65,171
Printing Fees............................................ 31,360
Custodian Fees--Note D................................... 24,490
Filing and Registration Fees............................. 13,720
Account Services Fees--Note F............................ 8,376
Audit Fees............................................... 8,107
Distribution and Service Fees--Institutional Service
Class Shares--Note E.................................... 6,958
Trustees' Fees--Note G................................... 1,432
Amortization of Organization Expense--Note A............. 981
Other Expenses........................................... 20,277
- ---------------------------------------------------------------------------------
Total Expenses.......................................... 294,924
Expense Offset--Note A................................... (519)
- ---------------------------------------------------------------------------------
Net Expenses............................................ 294,405
- ---------------------------------------------------------------------------------
NET INVESTMENT INCOME..................................... 140,590
- ---------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS):
Investments.............................................. 1,392,606
Foreign Currency Transactions............................ (26,353)
- ---------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS.................................... 1,366,253
- ---------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON:
Investments.............................................. (568,946)
Foreign Currency Translations............................ 4,464
- ---------------------------------------------------------------------------------
TOTAL NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION.. (564,482)
- ---------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS AND FOREIGN CURRENCY.............. 801,771
- ---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...... $ 942,361
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

11
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED
1997 APRIL 30,
(UNAUDITED) 1997
- ---------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Income................................. $ 140,590 $ 127,697
Net Realized Gain (Loss).............................. 1,366,253 (102,551)
Net Change in Unrealized Appreciation/Depreciation.... (564,482) 1,537,020
- ---------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Opera-
tions.............................................. 942,361 1,562,166
- ---------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income:
Institutional Class.................................. -- (23,511)
Net Realized Gain:
Institutional Class.................................. -- (203,657)
- ---------------------------------------------------------------------------------
Total Distributions................................. -- (227,168)
- ---------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE K):
Institutional Class:
Issued............................................... 5,128,741 25,675,829
In Lieu of Cash Distributions........................ -- 156,098
Redeemed............................................. (4,342,322) (6,848,127)
- ---------------------------------------------------------------------------------
Net Increase from Institutional Class Shares........ 786,419 18,983,800
- ---------------------------------------------------------------------------------
Institutional Service Class:
Issued............................................... 2,604,040 3,864,032
Redeemed............................................. (662,113) (37,097)
- ---------------------------------------------------------------------------------
Net Increase from Institutional Service Class
Shares............................................. 1,941,927 3,826,935
- ---------------------------------------------------------------------------------
Net Increase from Capital Share Transactions........ 2,728,346 22,810,735
- ---------------------------------------------------------------------------------
Total Increase....................................... 3,670,707 24,145,733
Net Assets:
Beginning of Period................................... 32,737,771 8,592,038
- ---------------------------------------------------------------------------------
End of Period (including undistributed net investment
income of $159,715 and $19,125, respectively)........ $36,408,478 $32,737,771
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

12
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
INSTITUTIONAL
INSTITUTIONAL CLASS SERVICE CLASS
--------------------------------------------- ---------------------------
SIX MONTHS SIX MONTHS
ENDED YEARS ENDED ENDED
OCTOBER 31, APRIL 30, SEPTEMBER 16, OCTOBER 31, DECEMBER 31,
1997 ---------------- 1994*** TO 1997 1996*** TO
(UNAUDITED) 1997 1996 APRIL 30, 1995 (UNAUDITED) APRIL 30, 1997
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.65 $ 10.27 $ 9.50 $10.00 $ 10.65 $ 10.53
- --------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income.. 0.05 0.06 0.07 0.04 0.02 0.01
Net Realized and
Unrealized Gain (Loss)
on Investments........ 0.31 0.42 0.75 (0.54)++ 0.32 0.11
- --------------------------------------------------------------------------------------------------
Total from Investment
Operations........... 0.36 0.48 0.82 (0.50) 0.34 0.12
- --------------------------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income.. -- (0.01) -- @ -- -- --
In Excess of Net
Investment Income..... -- -- (0.03) -- -- --
Net Realized Gain...... -- (0.09) (0.02) -- -- --
- --------------------------------------------------------------------------------------------------
Total Distributions... -- (0.10) (0.05) -- -- --
- --------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD................. $ 11.01 $ 10.65 $ 10.27 $ 9.50 $ 10.99 $ 10.65
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
TOTAL RETURN+........... 3.38%** 4.67% 8.67% (5.00)%** 3.19%** 1.14%**
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL
DATA
Net Assets, End of
Period (Thousands).... $30,569 $28,818 $ 8,592 $5,535 $ 5,840 $ 3,920
Ratio of Expenses to
Average Net Assets.... 1.50%* 1.50% 1.45% 1.00%* 1.75%* 1.76%*
Ratio of Net Investment
Income to Average Net
Assets................ 0.79%* 0.68% 0.88% 1.49%* 0.40%* 0.59%*
Portfolio Turnover
Rate.................. 39% 47% 59% 81% 39% 47%
Average Commission
Rate#................. $0.0257 $0.0323 $0.0316 N/A $0.0257 $0.0323
- --------------------------------------------------------------------------------------------------
Voluntarily Waived Fees
and Expenses Assumed
by the Adviser........ $ 0.01 $ 0.05 $ 0.13 $ 0.13 $ 0.01 $ 0.01
Ratio of Expenses to
Average Net Assets
Including Expense
Offsets............... 1.50%* 1.50% 1.43% 1.00%* 1.75%* 1.75%*
- --------------------------------------------------------------------------------------------------
</TABLE>
* Annualized
** Not Annualized
*** Commencement of Operations
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser during the periods indicated.
++ The amount shown for a share outstanding throughout the period does not
accord with the aggregate net gains on investments for that period because
of the timing of sales and repurchases of the Portfolio shares in relation
to fluctuating market value of the investments of the Portfolio.
# Beginning with fiscal year 1996, the portfolio is required to disclose the
average commission rate per share it paid for portfolio trades on which
commissions were charged.
@ Amount is less than $0.01 per share.

The accompanying notes are an integral part of the financial statements.

13
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

UAM Funds Trust and UAM Funds, Inc. (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The MJI
International Equity Portfolio (the "Portfolio"), a portfolio of UAM Funds
Trust, is a diversified, open-end management investment company. At October
31, 1997, the UAM Funds were comprised of forty-two active portfolios. The
financial statements of the remaining portfolios are presented separately. The
Portfolio is authorized to offer two separate classes of shares--Institutional
Class Shares and Institutional Service Class Shares. Both classes of shares
have identical voting rights (except Institutional Service Class shareholders
have exclusive voting rights with respect to matters relating to distribution
and shareholder servicing of such shares), dividend, liquidation and other
rights. The objective of the MJI International Equity Portfolio is to provide
maximum total return, including both capital appreciation and current income,
by investing primarily in the common stocks of companies based outside of the
United States.

1. SECURITY VALUATION: Securities listed on a securities exchange for which
market quotations are readily available are valued at the last quoted sales
price as of the close of the exchange on the day the valuation is made or,
if no sale occurred on such day, at the bid price on such day. Price
information on listed securities is taken from the exchange where the
security is primarily traded. Over-the-counter and unlisted securities are
valued at the current bid price. Quotations of foreign securities and other
assets in a foreign currency are converted to U.S. dollar equivalents. The
converted value is based upon the bid price of the foreign currency against
U.S. dollars quoted by any major bank or by a broker. 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 using methods
determined by the Board of Trustees.

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 such taxes when the related income or
gains are earned.

At April 30, 1997, the Portfolio had available a capital loss carryover for
Federal income tax purposes of approximately $45,000 which will expire on
April 30, 2005.

14
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
or bankruptcy by the other party to the agreement, realization and/or
retention of the collateral or proceeds may be subject to legal
proceedings.

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
portion 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 gain and loss on investments on the statement of
operations. Net realized and unrealized gains and losses on foreign
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
Portfolio's books and the U.S. dollar equivalent amounts actually received
or paid.

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
currency 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 gain or loss. The Portfolio recognizes realized
gain or loss when the contract is closed, equal to the difference between
the value of the contract at the time it was opened and the value at the
time it was closed. Risks may 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. Risks may also arise from the
unanticipated movements in the value of a foreign currency relative to the
U.S. dollar.

6. DISTRIBUTIONS TO SHAREHOLDERS: The Portfolio will normally distribute
substantially all of its net investment income annually. Any realized net
capital gains will be distributed annually. All distributions are recorded
on ex-dividend date.

The amount and character of income and capital gain distributions to be
paid are determined in accordance with Federal income tax regulations which
may differ from generally accepted accounting principles. These differences
are primarily due to differing book and tax treatments for foreign currency
transactions, deferred organization costs and the timing of the recognition
of gains or losses on investments.

7. ORGANIZATION COSTS: Costs incurred by the Portfolio in connection with
its organization have been deferred and are being amortized on a straight-
line basis over a five-year period.

15
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

8. OTHER: Security transactions are accounted for on trade date, the date
the trade was executed. Costs used in determining realized gains and 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 income is
recognized on the accrual basis. Most expenses of the UAM Funds can be
directly attributed to a particular portfolio. Expenses which cannot be
directly attributed 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 or losses are
allocated to each class of shares based upon their relative net assets.
Custodian fees for the Portfolio have been increased to include expense
offsets, if any, for custodian balance credits.

B. ADVISORY SERVICES: Under the terms of an investment advisory agreement,
Murray Johnstone International Ltd., (the "Adviser"), a subsidiary of United
Asset Management Corporation ("UAM"), provides investment advisory services to
the Portfolio at a monthly fee calculated at an annual rate of 0.75% of
average daily net assets for the month. 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 expense offset arrangements, from exceeding 1.50% and 1.75% of
average daily net assets of the Portfolio's Institutional Class Shares and
Institutional Service Class Shares, respectively.

C. ADMINISTRATION SERVICES: UAM Fund Services, Inc. (the "Administrator"), a
wholly-owned subsidiary of UAM, provides and oversees administrative, fund
accounting, dividend disbursing and transfer agent services to the UAM Funds
under a Fund Administration Agreement (the "Agreement"). Pursuant to the
Agreement, the Administrator is entitled to receive annual fees, computed
daily and payable monthly, of 0.19% of the first $200 million of the combined
aggregate net assets; plus 0.11% of the next $800 million of the combined
aggregate net assets; plus 0.07% of the next $2 billion of the combined
aggregate net assets; plus 0.05% of the combined aggregate net assets in
excess of $3 billion. The fees are allocated among the portfolios of the UAM
Funds on the basis of their relative net assets and are subject to a graduated
minimum fee schedule per portfolio which rises from $2,000 per month, upon
inception of a portfolio, to $70,000 annually after two years. For portfolios
with more than one class of shares, the minimum annual fee increases to
$90,000. In addition, the Administrator receives a Portfolio-specific monthly
fee at an annual rate of 0.06% of average daily net assets of the Portfolio.
The Administrator has entered into a Mutual Funds Service Agreement with Chase
Global Funds Services Company ("CGFSC"), an affiliate of The Chase Manhattan
Bank, under which CGFSC agrees to provide certain services, including but not
limited to, administration, fund accounting, dividend disbursing and transfer
agent services. Pursuant to the Mutual Funds Service Agreement, the
Administrator pays CGFSC a monthly fee. For the six months ended October 31,
1997, $53,681 was paid to CGFSC for its services.

D. CUSTODIAN: The Chase Manhattan Bank, an affiliate of CGFSC, is custodian
for the Portfolio's assets 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 Portfolio. The
Portfolio has adopted Distribution and Service Plans (the "Plans") on behalf
of the Service Class Shares pursuant to Rule 12b-1 under the Investment
Company Act of

16
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

1940. Under the Plans, the Portfolio may not incur distribution and service
fees which exceed an annual rate of 0.75% of the Portfolio's net assets,
however, the Board has currently limited aggregate payments under the Plans to
0.50% per annum of the Portfolio's net assets. The Portfolio's Service Class
Shares are not currently making payments for distribution fees, however the
Portfolio does pay 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.

G. TRUSTEES' FEES: Each Trustee, who is not an officer or affiliated person,
receives $2,000 per meeting attended, 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 and reimbursement of expenses incurred in
attending Trustee meetings.

H. PURCHASES AND SALES: For the six months ended October 31, 1997, the
Portfolio made purchases of $13,697,043 and sales of $13,741,268 of investment
securities other than long-term U.S. Government and short-term securities.
There were no purchases or sales of long-term U.S. Government securities.

J. OTHER: At October 31, 1997, 54.6% and 79.0% of total shares outstanding
were held by 3 and 3 record shareholders of the Institutional Class Shares and
the Institutional Service Class Shares, respectively, owning more than 10% of
the aggregate total shares outstanding.

At October 31, 1997, the net assets of the Portfolio were substantially
comprised of foreign denominated securities and currency. Changes in currency
exchange rates will affect the value of and investment income from such
securities and currency.

Foreign security and currency transactions may involve certain considerations
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.

17
<PAGE>

MJI INTERNATIONAL EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

K. CAPITAL SHARE TRANSACTIONS: Transactions in capital shares for the
Portfolios, by class, were as follows:

<TABLE>
<CAPTION>
INSTITUTIONAL CLASS INSTITUTIONAL SERVICE
SHARES CLASS SHARES
------------------------------- -------------------------------
SIX MONTHS YEAR SIX MONTHS DECEMBER 31,
ENDED ENDED ENDED 1996* TO
OCTOBER 31, 1997 APRIL 30, 1997 OCTOBER 31, 1997 APRIL 30, 1997
---------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
Shares Issued........... 440,825 2,516,858 219,905 371,710
In Lieu of Cash Distri-
butions................ -- 15,170 -- --
Shares Redeemed......... (368,582) (663,721) (56,777) (3,511)
-------- --------- ------- -------
Net Increase from
Capital Share
Transactions........... 72,243 1,868,307 163,128 368,199
======== ========= ======= =======
</TABLE>
* Commencement of Operations

18
<PAGE>

- -------------------------------------------------------------------------------
UAM FUNDS
HANSON EQUITY
PORTFOLIO

- -------------------------------------------------------------------------------
OFFICERS AND TRUSTEES

Norton H. Reamer Peter M. Whitman, Jr.
Trustee, President Trustee
and Chairman

William H. Park
John T. Bennett, Jr. Vice President
Trustee

Nancy J. Dunn Michael E. DeFao
Trustee Secretary

Philip D. English Karl O. Hartmann
Trustee Assistant Secretary

William A. Humenuk Gary L. French
Trustee Treasurer

Robert R. Flaherty
Charles H. Salisbury, Jr. Assistant Treasurer
Trustee and Executive
Vice President
Gordon M. Shone
Assistant Treasurer

- -------------------------------------------------------------------------------
INVESTMENT ADVISER
Hanson Investment Management Company
400 Civic Center Drive
Suite 200
San Rafael, CA 94903

- -------------------------------------------------------------------------------
ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street
Boston, MA 02110

- -------------------------------------------------------------------------------
CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center Brooklyn, NY 11245

- -------------------------------------------------------------------------------
LEGAL COUNSEL
Stradley, Ronon, Stevens & Young LLP
2600 One Commerce Square Philadelphia, PA 19103

- -------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
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.

- -------------------------------------------------------------------------------

[LOGO OF UAM FUNDS APPEARS HERE]

HANSON EQUITY
PORTFOLIO

- -------------------------------------------------------------------------------

SEMI-ANNUAL REPORT
OCTOBER 31, 1997
<PAGE>

HANSON EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
<S> <C> <C>

- -------------------------------------------------------------------------------
COMMON STOCKS (98.9%)
- -------------------------------------------------------------------------------
AEROSPACE & DEFENSE (2.6%)
AlliedSignal, Inc. .................................... 13,600 $ 489,600
- -------------------------------------------------------------------------------
AUTOMOTIVE (3.4%)
*Lear Corp............................................. 13,500 648,844
- -------------------------------------------------------------------------------
BANKS (3.1%)
Wells Fargo & Co....................................... 2,000 582,750
- -------------------------------------------------------------------------------
BEVERAGES, FOOD & TOBACCO (2.8%)
ConAgra, Inc. ......................................... 17,900 539,238
- -------------------------------------------------------------------------------
CAPITAL EQUIPMENT (2.6%)
Deere & Co. ........................................... 9,400 494,675
- -------------------------------------------------------------------------------
COMPUTERS (8.2%)
Hewlett-Packard Co..................................... 9,100 561,356
Intel Corp............................................. 6,200 477,594
International Business Machines Corp................... 5,300 519,731
-----------
1,558,681
- -------------------------------------------------------------------------------
CONSTRUCTION (5.4%)
*American Standard Companies, Inc. .................... 14,500 518,375
Clayton Homes, Inc..................................... 30,500 501,344
-----------
1,019,719
- -------------------------------------------------------------------------------
CONSUMER STAPLES (6.1%)
Colgate-Palmolive Co. ................................. 8,500 550,375
Kimberly-Clark Corp. .................................. 11,500 597,281
-----------
1,147,656
- -------------------------------------------------------------------------------
ELECTRONICS (6.4%)
Rockwell International Corp. .......................... 11,000 539,000
*Solectron Corp........................................ 16,900 663,325
-----------
1,202,325
- -------------------------------------------------------------------------------
ENERGY (9.6%)
British Petroleum Co. plc ADR.......................... 7,000 614,250
Enron Corp............................................. 13,000 494,000
Transocean Offshore Inc................................ 13,000 702,000
-----------
1,810,250
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

1
<PAGE>

HANSON EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
<S> <C> <C>

- -------------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
ENTERTAINMENT & LEISURE TIME (3.3%)
Carnival Corp., Class A................................ 12,800 $ 620,800
- -------------------------------------------------------------------------------
FINANCIAL SERVICES (6.5%)
Fannie Mae............................................. 12,400 600,625
Franklin Resources, Inc. .............................. 7,100 638,112
-----------
1,238,737
- -------------------------------------------------------------------------------
HOME FURNISHINGS & APPLIANCES (2.9%)
Newell Co. ............................................ 14,400 552,600
- -------------------------------------------------------------------------------
INDUSTRIAL (2.5%)
Dover Corp. ........................................... 7,000 472,500
- -------------------------------------------------------------------------------
INSURANCE (6.0%)
AFLAC Inc. ............................................ 10,700 544,362
American International Group, Inc. .................... 5,800 591,963
-----------
1,136,325
- -------------------------------------------------------------------------------
MANUFACTURING (2.9%)
General Electric Co. .................................. 8,500 548,781
- -------------------------------------------------------------------------------
MULTI-INDUSTRY (2.6%)
Raychem Corp. ......................................... 5,500 498,094
- -------------------------------------------------------------------------------
PHARMACEUTICALS (2.5%)
Johnson & Johnson...................................... 8,250 473,344
- -------------------------------------------------------------------------------
RETAIL (7.9%)
*OfficeMax, Inc. ...................................... 32,300 432,012
Walgreen Co. .......................................... 17,900 503,438
Wal-Mart Stores, Inc. ................................. 15,800 554,975
-----------
1,490,425
- -------------------------------------------------------------------------------
SERVICES (5.9%)
Manpower, Inc. ........................................ 14,500 556,437
Omnicom Group Inc. .................................... 7,900 557,938
-----------
1,114,375
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS (3.1%)
*AirTouch Communications, Inc. ........................ 15,000 579,375
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

2
<PAGE>

HANSON EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
<S> <C> <C>

- -------------------------------------------------------------------------------
SHORT-TERM INVESTMENT (3.7%)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT
Chase Securities, Inc. 5.60%, dated 10/31/97, due
11/03/97, to be repurchased at $695,324,
collateralized by $662,884 of various U.S. Treasury
Notes, 5.50%-8.75%, due from 05/15/00-06/30/02,
valued at $695,392 (COST $695,000)................... $695,000 695,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (102.6%) (COST $20,473,340) (a)...... 19,408,094
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET) (-2.6%)............. (485,707)
- -------------------------------------------------------------------------------
NET ASSETS (100%)...................................... $18,922,387
===============================================================================
</TABLE>

+ See Note A to Financial Statements.
* Non-Income Producing Security
ADR American Depositary Receipt
(a) The cost for federal income tax purposes was $20,473,340. At October 31,
1997, net unrealized depreciation for all securities based on tax cost
was $1,065,246. This consisted of aggregate gross unrealized appreciation
for all securities of $94,105 and aggregate gross unrealized depreciation
for all securities of $1,159,351.

The accompanying notes are an integral part of the financial statements.

3
<PAGE>

HANSON EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1997 (Unaudited)

INSTITUTIONAL CLASS SHARES
Shares Issued and Outstanding (Unlimited authorization, no par
value).......................................................... 2,002,168
Net Asset Value, Offering and Redemption Price Per Share......... $ 9.45
===============================================================================
</TABLE>

The accompanying notes are an integral part of the financial statements.

4
<PAGE>

HANSON EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
For the Period October 2, 1997* to October 31, 1997 (Unaudited)

<TABLE>
- ---------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest........................................................... $ 20,474
Dividends.......................................................... 7,728
- ---------------------------------------------------------------------------------
Total Income...................................................... 28,202
- ---------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees--Note B................................... 10,986
Brokerage Fees..................................................... 4,104
Administrative Fees--Note C........................................ 2,896
Filing and Registration Fees....................................... 2,556
Printing Fees...................................................... 2,326
Audit Fees......................................................... 2,052
Custodian Fees--Note D............................................. 397
Trustees' Fees--Note F............................................. 215
Other Expenses..................................................... 742
- ---------------------------------------------------------------------------------
Total Expenses.................................................... 26,274
Expense Offset--Note A............................................. --
- ---------------------------------------------------------------------------------
Net Expenses...................................................... 26,274
- ---------------------------------------------------------------------------------
NET INVESTMENT INCOME............................................... 1,928
- ---------------------------------------------------------------------------------
NET REALIZED LOSS ON INVESTMENTS.................................... (35,666)
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON INVESTMENTS... (1,065,246)
- ---------------------------------------------------------------------------------
NET LOSS ON INVESTMENTS............................................. (1,100,912)
- ---------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $(1,098,984)
=================================================================================
</TABLE>

* Commencement of Operations

The accompanying notes are an integral part of the financial statements.

5
<PAGE>

HANSON EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
OCTOBER 2,
1997* TO
OCTOBER 31,
1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Income............................................. $ 1,928
Net Realized Loss................................................. (35,666)
Net Change in Unrealized Appreciation/Depreciation................ (1,065,246)
- --------------------------------------------------------------------------------
Net Decrease in Net Assets Resulting from Operations............. (1,098,984)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (1)
Issued............................................................ 20,021,371
Redeemed.......................................................... --
- --------------------------------------------------------------------------------
Net Increase from Capital Share Transactions..................... 20,021,371
- --------------------------------------------------------------------------------
Total Increase.................................................... 18,922,387
Net Assets:
Beginning of Period............................................... --
- --------------------------------------------------------------------------------
End of Period (including undistributed net investment income of
$1,928).......................................................... $18,922,387
================================================================================
(1) Shares Issued and Redeemed:
Shares Issued.................................................... 2,002,168
Shares Redeemed.................................................. --
- --------------------------------------------------------------------------------
2,002,168
================================================================================
</TABLE>

* Commencement of Operations

The accompanying notes are an integral part of the financial statements.

6
<PAGE>

HANSON EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD

<TABLE>
<CAPTION>
OCTOBER 2,
1997* TO
OCTOBER 31,
1997
(UNAUDITED)
- -------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............................ $ 10.00
- -------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income.......................................... --
Net Realized and Unrealized Loss on Investments................ (0.55)
- -------------------------------------------------------------------------------
Total from Investment Operations.............................. (0.55)
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.................................. $ 9.45
===============================================================================
TOTAL RETURN.................................................... (5.50)%***
===============================================================================
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (Thousands)........................... $18,922
Ratio of Expenses to Average Net Assets......................... 1.68%**
Ratio of Net Investment Income to Average Net Assets............ 0.12%**
Portfolio Turnover Rate......................................... 2%
Average Commission Rate......................................... $0.0599
- -------------------------------------------------------------------------------
Ratio of Expenses to Average Net Assets Including Expense Off-
sets........................................................... 1.68%**
- -------------------------------------------------------------------------------
</TABLE>

* Commencement of Operations
** Annualized
*** Not Annualized

The accompanying notes are an integral part of the financial statements.

7
<PAGE>

HANSON EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

UAM Funds Trust and UAM Funds, Inc. (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The Hanson
Equity Portfolio (the "Portfolio"), a portfolio of UAM Funds Trust, is a
diversified, open-end management investment company. At October 31, 1997, the
UAM Funds were comprised of forty-two active portfolios. The financial
statements of the remaining portfolios are presented separately. The objective
of the Hanson Equity Portfolio is to achieve maximum long-term total return,
consistent with reasonable risk to principal, by investing in a diversified
portfolio of equity securities, primarily the common stock of large, U.S.-
based companies with outstanding financial characteristics and strong growth
prospects that can be purchased at reasonable valuations.

8
<PAGE>

HANSON EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
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.

5. OTHER: Security transactions are accounted for on trade date, the date
the trade was executed. Costs used in determining realized gains and 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. Most expenses of the
UAM Funds can be directly attributed to a particular portfolio. Expenses
which cannot be directly attributed are apportioned among the portfolios of
the UAM Funds based on their relative net assets. Custodian fees for the
Portfolio have been increased to include expense offsets, if any, for
custodian balance credits.

B. ADVISORY SERVICES: Under the terms of an investment advisory agreement,
Hanson Investment Management Company (the "Adviser"), a wholly-owned
subsidiary of United Asset Management Corporation ("UAM"), provides investment
advisory services to the Portfolio at a monthly fee calculated at an annual
rate of 0.70% of average daily net assets for the month.

C. ADMINISTRATION SERVICES: UAM Fund Services, Inc. (the "Administrator"), a
wholly-owned subsidiary of UAM, provides and oversees administrative, fund
accounting, dividend disbursing and transfer agent services to the UAM Funds
under a Fund Administration Agreement (the "Agreement"). Pursuant to the
Agreement, the Administrator is entitled to receive annual fees, computed
daily and payable monthly, of 0.19% of the first $200 million of the combined
aggregate net assets; plus 0.11% of the next $800 million of the combined
aggregate net assets; plus 0.07% of the next $2 billion of the combined
aggregate net assets; plus 0.05% of the combined aggregate net assets in
excess of $3 billion. The fees are allocated among the portfolios of the UAM
Funds on the basis of their relative net assets and are subject to a graduated
minimum fee schedule per portfolio which rises from $2,000 per month, upon
inception of a portfolio, to $70,000 annually after two years. For portfolios
with more than one class of shares, the minimum annual fee increases to
$90,000. In addition, the Administrator receives a Portfolio-specific monthly
fee at an annual rate of 0.04% of average daily net assets of the Portfolio.
The Administrator has entered into a Mutual Funds Service Agreement with Chase
Global Funds Services Company ("CGFSC"), an affiliate of The Chase Manhattan
Bank, under which CGFSC agrees to provide certain services, including but not
limited to, administration, fund accounting, dividend disbursing and transfer
agent services. Pursuant to the Mutual Funds Service Agreement, the
Administrator pays CGFSC a monthly fee. For the period October 2, 1997
(commencement of operations) to October 31, 1997, $2,268 was paid to CGFSC for
its services.

D. CUSTODIAN: The Chase Manhattan Bank ("the Bank"), an affiliate of CGFSC, is
custodian for the Portfolio's assets held in accordance with the custodian
agreement.

9
<PAGE>

HANSON EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

F. TRUSTEES' FEES: Each Trustee, who is not an officer or affiliated person,
receives $2,000 per meeting attended, 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, and reimbursement of expenses incurred in
attending Trustee meetings.

G. PURCHASES AND SALES: For the period October 2, 1997 (commencement of
operations) to October 31, 1997, the Portfolio made purchases of $20,130,911
and sales of $316,905 of investment securities other than long-term U.S.
Government and short-term securities. There were no purchases or sales of
long-term U.S. Government securities.

H. OTHER: At October 31, 1997, 100.0% of total shares outstanding were held by
one record shareholder.

10
<PAGE>

- -------------------------------------------------------------------------------

UAM FUNDS
CHICAGO ASSET MANAGEMENT COMPANY PORTFOLIOS

- -------------------------------------------------------------------------------
OFFICERS AND TRUSTEES

Norton H. Reamer Michael E. DeFao
Trustee, President Secretary
and Chairman
Karl O. Hartmann
John T. Bennett, Jr. Assistant Secretary
Trustee
Gary L. French
Philip D. English Treasurer
Trustee
Robert R. Flaherty
William A. Humenuk Assistant Treasurer
Trustee
Gordon M. Shone
Peter M. Whitman, Jr. Assistant Treasurer
Trustee

William H. Park
Vice President
- -------------------------------------------------------------------------------
INVESTMENT ADVISER
Chicago Asset Management Company
70 West Madison Street, 56th Floor
Chicago, IL 60602
- -------------------------------------------------------------------------------
ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street
Boston, MA 02110
- -------------------------------------------------------------------------------
CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, NY 11245
- -------------------------------------------------------------------------------
LEGAL COUNSEL
Stradley, Ronon, Stevens & Young LLP
2600 One Commerce Square
Philadelphia, PA 19103
- -------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
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.

- -------------------------------------------------------------------------------

[LOGO OF UAM FUNDS APPEARS HERE] UAM Funds

CHICAGO ASSET
MANAGEMENT
COMPANY
PORTFOLIOS

- -------------------------------------------------------------------------------

ANNUAL REPORT
APRIL 30, 1997

<PAGE>

Dear Shareholders:

October 31, 1997 is the end of the semi-annual reporting period for the
Chicago Asset Management Value/Contrarian Portfolio for equity investors and
the Intermediate Bond Portfolio for our fixed income clients. This letter will
review the investment environment, strategies and returns for the Portfolios.
We thank you for your confidence in our investment expertise and look forward
to maintaining a long-term relationship.

CHICAGO ASSET MANAGEMENT VALUE/CONTRARIAN PORTFOLIO

For the six months ended October 31, 1997, the equity market continued its
strong advance and produced a return of 15.16% as measured by the Standard and
Poor's 500 Index. This Portfolio modestly underperformed the Index in this
six-month period producing a rate of return of 13.68% net of expenses.

During this six-month period, the market experienced some meaningful
gyrations. In the early months, it appreciated on a continued bull market path
and even accelerated into July. In August, the market showed a sharp pullback
and notable rotation whereby some of the formerly strong performance of growth
issues faded, and the market showed some enhanced favoritism to the
value/contrarian types of issues held in this Portfolio.

During the past six months, we have been moderately active implementing our
disciplined approach. We have added issues, such as Amgen, Electronic Data
Systems, and Enron. Each had substantially underperformed the market prior to
our purchase. Each held unique characteristics which we viewed as offering
identifiable reasons for the past difficulties and potential for future
outperformance. We also sold current holdings in the Portfolio. Nordstrom was
sold in its entirety, having fully reached our objectives. After
underperforming earlier in the year, it went on to substantially outperform
the market before finally being sold. Apple Computer and Ethyl Corporation
were sold in their entirety due to a more clouded future outlook. However,
additional Apple shares had been purchased during a deep price decline in July
and then the entire holding was sold after a strong price rally in August.
This combination of rebalancing by buying into weakness and selling into
strength is part of our ongoing activity which offers the potential for
enhanced returns over time.

We have no way of knowing at this time whether the market rotation in the
direction of favoring our long-term value/contrarian style will continue in
the near future or is simply a blip along the way. In any event, we find this
style to be appropriate and valuable over time. The characteristics of the
Portfolio and the natural attractiveness of purchasing securities during times
of weakness and selling when they have returned to market leaders seems to
offer a common sense approach in addition to attractive, potential long-term
results.

We are committed to maintaining our careful discipline in seeking out
additional opportunities to purchase issues which in our view are undervalued.
We believe the inherent attractiveness of this strategy holds the additional
benefit of offering an ideal diversification strategy for individuals invested
in other funds with different styles.

CHICAGO ASSET MANAGEMENT INTERMEDIATE BOND PORTFOLIO

The six month period ended October 31, 1997 was favorable for fixed income
investors. The decline in interest rates produced capital appreciation along
with interest income. The Portfolio returned 5.10%.

As the Portfolio's fiscal year began, long-term Treasury yields approached 7%.
The market was anticipating further tightening by the Federal Open Market
Committee. The U.S. economy has enjoyed excellent growth

1
<PAGE>

coupled with expanding employment opportunities. America has continued to
benefit from low inflation and astonishing record U.S. Treasury receipts.
These developments laid the foundation for further declines in interest rates
and an excellent environment for investors in high quality U.S. domestic
corporate bonds.

During this period, the Federal Open Market Committee has maintained an
unchanged policy with Fed Funds at 5 1/2%.

Chicago Asset Management's objective is to look for continued opportunities to
add income to the Portfolio while maintaining safety and liquidity. Emphasis
is placed on U.S. Treasury and Agency Notes and obligations of large U.S.
corporations.

The Portfolio had the following characteristics relative to the Lehman
Brothers Intermediate Government/Corporate Index as of October 31, 1997:

<TABLE>
<CAPTION>
PORTFOLIO INDEX
---------- ----------
<S> <C> <C>
Average Maturity.................................... 5.41 Years 4.26 Years
Average Duration.................................... 3.34 Years 3.29 Years
Average Coupon...................................... 6.42% 6.78%
Yield to Maturity................................... 6.06% 5.92%
</TABLE>

For the six months ended October 31, 1997, the Portfolio produced a total rate
of return, net of expenses, of 5.10% versus the Index return of 5.66%.

CHICAGO ASSET MANAGEMENT COMPANY

DEFINITION OF THE COMPARATIVE INDICES
-------------------------------------

The S&P 500 Index is an unmanaged index composed of 400 industrial, 40
financial, 40 utilities and 20 transportation stocks.

The Lehman Brothers Intermediate Government/Corporate Index is an unmanaged
index composed of a combination of the Lehman Government Bond Intermediate and
Lehman Corporate Bond Intermediate Indices. All issues are investment grade
(BBB) or higher with maturities of one to ten years and an outstanding par
value of at least $100 million for U.S. Government issues and $25 million for
others. The Government Index includes public obligations of the U.S. Treasury,
issues of Government agencies, and corporate debt backed by the U.S.
government. The Corporate Bond Index includes fixed-rate nonconvertible
corporate debt. Also included are Yankee bonds and nonconvertible debt issued
by or guaranteed by foreign or international governments and agencies. 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.

Comparisons of performance assume reinvestment of dividends.

The investment results presented in the Adviser's letter represent past
performance and should not be construed as a guarantee of future results. If
the Adviser didn't have temporary fee waivers and didn't assume expenses on
behalf of the Portfolios, total returns would have been lower. 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 the original
cost.

Please note that one cannot invest in an unmanaged index.

2
<PAGE>

CHICAGO ASSET MANAGEMENT VALUE/CONTRARIAN PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
COMMON STOCKS (98.2%)
- --------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE & DEFENSE (3.1%)
Raytheon Co. ............................................... 10,425 $ 565,556
- --------------------------------------------------------------------------------
AUTOMOTIVE (6.1%)
Ford Motor Co. ............................................. 12,750 557,016
General Motors Corp. ....................................... 8,725 560,036
-----------
1,117,052
- --------------------------------------------------------------------------------
BANKS (6.2%)
Banc One Corp. ............................................. 10,875 566,859
BankAmerica Corp. .......................................... 7,950 568,425
-----------
1,135,284
- --------------------------------------------------------------------------------
BEVERAGES, FOOD & TOBACCO (6.7%)
IBP, Inc. .................................................. 27,375 634,758
Sysco Corp. ................................................ 15,200 608,000
-----------
1,242,758
- --------------------------------------------------------------------------------
BROADCASTING & PUBLISHING (3.3%)
Deluxe Corp. ............................................... 18,475 605,056
- --------------------------------------------------------------------------------
CHEMICALS (3.4%)
Dow Chemical Co............................................. 6,850 621,638
- --------------------------------------------------------------------------------
CONSUMER DURABLES (2.3%)
Goodyear Tire & Rubber Co................................... 6,775 424,284
- --------------------------------------------------------------------------------
ELECTRONICS (2.7%)
AMP, Inc. .................................................. 10,875 489,375
- --------------------------------------------------------------------------------
ENERGY (6.7%)
Enron Corp. ................................................ 16,900 642,200
Mobil Corp. ................................................ 8,100 589,781
-----------
1,231,981
- --------------------------------------------------------------------------------
HEALTH CARE (10.2%)
Aetna Inc. ................................................. 8,700 618,244
Columbia/HCA Healthcare Corp. .............................. 22,625 639,156
United Healthcare Corp. .................................... 13,450 622,903
-----------
1,880,303
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

3
<PAGE>

CHICAGO ASSET MANAGEMENT VALUE/CONTRARIAN PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- --------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE (3.1%)
Chubb Corp. ................................................ 8,625 $ 571,406
- --------------------------------------------------------------------------------
LODGING & RESTAURANTS (3.8%)
Darden Restaurants, Inc. ................................... 60,825 691,884
- --------------------------------------------------------------------------------
MANUFACTURING (10.1%)
Eastman Kodak Co. .......................................... 10,800 646,650
Tenneco, Inc. .............................................. 13,200 593,175
Whitman Corp. .............................................. 23,900 627,375
-----------
1,867,200
- --------------------------------------------------------------------------------
MINING (2.9%)
Newmont Mining Corp. ....................................... 15,500 542,500
- --------------------------------------------------------------------------------
PAPER & PACKAGING (5.4%)
International Paper Co. .................................... 9,825 442,125
Weyerhaeuser Co. ........................................... 11,375 543,156
-----------
985,281
- --------------------------------------------------------------------------------
PHARMACEUTICALS (5.4%)
Amgen, Inc. ................................................ 7,900 388,581
Pharmacia & Upjohn, Inc. ................................... 19,250 611,188
-----------
999,769
- --------------------------------------------------------------------------------
RETAIL (3.4%)
The Limited, Inc............................................ 26,600 626,763
- --------------------------------------------------------------------------------
TECHNOLOGY (7.3%)
Electronic Data Systems Corp................................ 18,500 715,719
International Business Machines Corp........................ 6,400 627,600
-----------
1,343,319
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS (6.1%)
AT&T Corp................................................... 11,500 562,781
Bell Atlantic Corp.......................................... 6,925 553,135
-----------
1,115,916
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $16,834,902)....................... 18,057,325
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

4
<PAGE>

CHICAGO ASSET MANAGEMENT VALUE/CONTRARIAN PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT (1.6%)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT
Chase Securities, Inc. 5.60%, dated 10/31/97, due
11/03/97, to be repurchased at $301,140, collateralized
by $288,591 of various U.S. Treasury Notes, 5.50%-8.75%,
due from 05/15/00-06/30/02, valued at $301,170 (COST
$301,000)............................................... $301,000 $ 301,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (99.8%) (COST $17,135,902)(a)........... 18,358,325
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET) (0.2%)................. 40,723
- -------------------------------------------------------------------------------
NET ASSETS (100%)......................................... $18,399,048
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
+ See Note A to Financial Statements.
(a) The cost for federal income tax purposes was $17,135,902. At October 31,
1997, net unrealized appreciation for all securities based on tax cost was
$1,222,423. This consisted of aggregate gross unrealized appreciation for
all securities of $1,903,216 and aggregate gross unrealized depreciation
for all securities of $680,793.

The accompanying notes are an integral part of the financial statements.

5
<PAGE>

CHICAGO ASSET MANAGEMENT INTERMEDIATE BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- -------------------------------------------------------------------------------
CORPORATE BONDS & NOTES (60.7%)
- -------------------------------------------------------------------------------
<S> <C> <C>
BANKS (13.1%)
BankAmerica Corp. 7.625%, 06/15/04....................... $250,000 $ 264,495
Northern Trust Co. 6.50%, 05/01/03....................... 250,000 250,537
Norwest Corp. 7.70%, 11/15/97............................ 250,000 249,998
State Street Boston Corp. 7.35%, 06/15/26................ 250,000 271,768
SunTrust Banks, Inc. 6.00%, 02/15/26..................... 275,000 266,835
Wachovia Corp. 6.625%, 11/15/06.......................... 100,000 100,969
-----------
1,404,602
- -------------------------------------------------------------------------------
FINANCIAL SERVICES (18.7%)
Associates Corp. of North America
6.50%, 10/15/02......................................... 150,000 151,092
7.75%, 02/15/05......................................... 250,000 272,007
Chrysler Financial Corp. 5.93%, 12/08/98................. 250,000 250,252
CIT Group Holdings, Inc. 6.25%, 10/25/99................. 200,000 200,482
Commercial Credit Corp. 6.125%, 03/01/00................. 250,000 249,595
Exxon Capital Corp. 6.625%, 08/15/02..................... 59,000 60,256
Ford Motor Credit Co.--Global Bond 6.25%, 11/08/00....... 250,000 250,135
General Motors Acceptance Corp. 5.75%, 01/05/00.......... 100,000 99,287
General Motors Acceptance Corp.--Global Bond 6.75%,
02/07/02................................................ 100,000 101,679
IBM Credit Corp. 6.375%, 11/01/97........................ 125,000 125,000
Sears Roebuck Acceptance Corp. 6.16%, 12/04/00........... 250,000 250,378
-----------
2,010,163
- -------------------------------------------------------------------------------
INDUSTRIAL (9.3%)
Hertz Corp. 8.30%, 02/02/98.............................. 250,000 251,400
PepsiCo, Inc. 6.25%, 09/01/99............................ 250,000 250,968
Shell Oil Co. 6.625%, 07/01/99........................... 250,000 252,773
WMX Technologies, Inc. 6.25%, 10/15/00................... 250,000 248,565
-----------
1,003,706
- -------------------------------------------------------------------------------
RETAIL (6.6%)
J.C. Penney & Co.
5.375%, 11/15/98........................................ 53,000 52,717
6.90%, 08/15/26......................................... 200,000 208,534
Motorola, Inc. 6.50%, 09/01/25........................... 300,000 304,050
Wal-Mart Stores, Inc. 6.375%, 03/01/03................... 140,000 141,043
-----------
706,344
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

6
<PAGE>

CHICAGO ASSET MANAGEMENT INTERMEDIATE BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- --------------------------------------------------------------------------------
CORPORATE BONDS & NOTES--(CONTINUED)
- --------------------------------------------------------------------------------
<S> <C> <C>
UTILITIES (13.0%)
Central Illinois Public Service Co. 6.68%, 03/15/00....... $250,000 $ 253,600
Florida Power & Light Co. 5.50%, 07/01/99................. 250,000 248,595
National Rural Utilities 5.95%, 01/15/03.................. 250,000 247,137
Pennsylvania Power & Light Co. 5.50%, 04/01/98............ 150,000 149,871
Potomac Electric Power Co. 6.25%, 10/15/07................ 250,000 252,168
Virginia Electric Power Co. 6.25%, 08/01/98............... 250,000 250,815
-----------
1,402,186
- --------------------------------------------------------------------------------
TOTAL CORPORATE BONDS & NOTES (COST $6,388,177)............ 6,527,001
- --------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES (23.5%)
- --------------------------------------------------------------------------------
U.S. TREASURY NOTES
5.875%, 02/28/99.......................................... 250,000 250,820
5.875%, 11/15/99.......................................... 150,000 150,633
7.75%, 01/31/00........................................... 500,000 521,485
5.875%, 06/30/00.......................................... 250,000 251,210
5.25%, 01/31/01........................................... 250,000 246,797
7.50%, 11/15/01........................................... 250,000 265,390
6.125%, 12/31/01.......................................... 300,000 303,891
7.50%, 05/15/02........................................... 50,000 53,430
5.875%, 11/15/05.......................................... 150,000 149,788
6.50%, 10/15/06........................................... 325,000 338,052
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT SECURITIES (COST $2,459,610)......... 2,531,496
- --------------------------------------------------------------------------------
AGENCY SECURITIES (6.5%)
- --------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION
5.37%, 02/07/01........................................... 250,000 246,173
6.40%, 09/27/05........................................... 200,000 202,468
5.875%, 02/02/06.......................................... 250,000 244,180
- --------------------------------------------------------------------------------
TOTAL AGENCY SECURITIES (COST $692,849).................... 692,821
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITY (0.8%)
- --------------------------------------------------------------------------------
Chase Manhattan Grantor Trust, Series 1995-B, Class A
5.90%, 11/15/01
(COST $88,340)............................................ 88,340 88,311
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

7
<PAGE>

CHICAGO ASSET MANAGEMENT INTERMEDIATE BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- ------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT (7.1%)
- ------------------------------------------------------------------------------
REPURCHASE AGREEMENT
Chase Securities, Inc. 5.60%, dated 10/31/97, due
11/03/97, to be repurchased at $764,357, collateralized
by $732,502 of various U.S. Treasury Notes, 5.50%-8.75%,
due from 05/15/00-06/30/02, valued at $764,431 (COST
$764,000)............................................... $764,000 $ 764,000
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS (98.6%) (COST $10,392,976)(a).......... 10,603,629
- ------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET) (1.4%)................ 155,430
- ------------------------------------------------------------------------------
NET ASSETS (100%)........................................ $10,759,059
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
</TABLE>
+ See Note A to Financial Statements.
(a) The cost for federal income tax purposes was $10,392,976. At October 31,
1997, net unrealized appreciation for all securities based on tax cost was
$210,653. This consisted of aggregate gross unrealized appreciation for
all securities of $233,232 and aggregate gross unrealized depreciation for
all securities of $22,579.

The accompanying notes are an integral part of the financial statements.

8
<PAGE>

CHICAGO ASSET MANAGEMENT COMPANY PORTFOLIOS
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
CHICAGO ASSET CHICAGO ASSET
MANAGEMENT MANAGEMENT
VALUE/ INTERMEDIATE
CONTRARIAN BOND
PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at Cost.............................. $17,135,902 $10,392,976
=========== ===========
Investments, at Value............................. $18,358,325 $10,603,629
Cash.............................................. 552 892
Deferred Organization Costs--Note A............... 9,751 9,643
Receivable due from Investment Adviser--Note B.... 3,265 6,237
Dividends Receivable.............................. 37,771 --
Receivable for Portfolio Shares Sold.............. 8,145 --
Interest Receivable............................... 47 162,240
Other Assets...................................... 464 245
- -------------------------------------------------------------------------------
Total Assets..................................... 18,418,320 10,782,886
- -------------------------------------------------------------------------------
LIABILITIES
Payable for Investments Purchased................. 4,753 --
Payable for Administrative Fees--Note C........... 7,442 7,616
Payable for Trustees' Fees--Note G................ 555 526
Other Liabilities................................. 6,522 15,685
- -------------------------------------------------------------------------------
Total Liabilities................................ 19,272 23,827
- -------------------------------------------------------------------------------
NET ASSETS......................................... $18,399,048 $10,759,059
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in Capital................................... $15,988,158 $10,476,330
Undistributed Net Investment Income............... 33,123 70,381
Accumulated Net Realized Gain..................... 1,155,344 1,695
Unrealized Appreciation........................... 1,222,423 210,653
- -------------------------------------------------------------------------------
NET ASSETS......................................... $18,399,048 $10,759,059
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
Shares Issued and Outstanding (Unlimited
authorization, no par value)..................... 1,245,744 1,022,119
Net Asset Value, Offering and Redemption Price Per
Share............................................ $ 14.77 $ 10.53
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

9
<PAGE>

CHICAGO ASSET MANAGEMENT COMPANY PORTFOLIOS
STATEMENT OF OPERATIONS
For the Six Months Ended October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
CHICAGO ASSET CHICAGO ASSET
MANAGEMENT MANAGEMENT
VALUE/ INTERMEDIATE
CONTRARIAN BOND
PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends....................... $ 192,029 $ --
Interest........................ 12,042 338,002
- ----------------------------------------------------------------------------------
Total Income................... 204,071 338,002
- ----------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees--Note B
Basic Fees..................... $ 55,874 $ 24,607
Less: Fees Waived.............. (55,874) -- (24,607) --
-------- --------
Administrative Fees--Note C..... 42,156 41,332
Custodian Fees--Note D.......... 2,045 441
Audit Fees...................... 6,445 6,525
Legal Fees...................... 4,171 3,361
Printing Fees................... 17,928 9,334
Account Services Fees--Note F... 293 809
Trustees' Fees--Note G.......... 1,243 1,196
Filing and Registration Fees.... 9,617 9,115
Amortization of Organization
Expense--Note A................ 1,950 2,611
Other Expenses.................. 5,554 739
Fees Assumed by Adviser--Note B. (4,782) (33,786)
- ----------------------------------------------------------------------------------
Total Expenses................. 86,620 41,677
Expense Offset--Note A.......... -- --
- ----------------------------------------------------------------------------------
Net Expenses.................... 86,620 41,677
- ----------------------------------------------------------------------------------
NET INVESTMENT INCOME............ 117,451 296,325
- ----------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS. 1,073,456 281
NET CHANGE IN UNREALIZED
APPRECIATION/DEPRECIATION OF
INVESTMENTS..................... 814,286 214,291
- ----------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS.......... 1,887,742 214,572
- ----------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....... $2,005,193 $510,897
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

10
<PAGE>

CHICAGO ASSET MANAGEMENT VALUE/CONTRARIAN PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED
1997 APRIL 30,
(UNAUDITED) 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Income................................ $ 117,451 $ 41,317
Net Realized Gain.................................... 1,073,456 126,824
Net Change in Unrealized Appreciation/Depreciation... 814,286 219,469
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from
Operations......................................... 2,005,193 387,610
- --------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income................................ (114,921) (20,547)
Net Realized Gain.................................... -- (80,161)
- --------------------------------------------------------------------------------
Total Distributions................................. (114,921) (100,708)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (1)
Issued............................................... 4,688,684 12,634,715
In Lieu of Cash Distributions........................ 114,906 96,713
Redeemed............................................. (2,099,220) (105,728)
- --------------------------------------------------------------------------------
Net Increase from Capital Share Transactions........ 2,704,370 12,625,700
- --------------------------------------------------------------------------------
Total Increase....................................... 4,594,642 12,912,602
Net Assets:
Beginning of Period.................................. 13,804,406 891,804
- --------------------------------------------------------------------------------
End of Period (including undistributed net investment
income of $33,123 and $30,593, respectively)........ $18,399,048 $13,804,406
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(1)Shares Issued and Redeemed:
Shares Issued....................................... 320,741 991,693
In Lieu of Cash Distributions....................... 7,604 7,527
Redeemed............................................ (138,732) (8,321)
- --------------------------------------------------------------------------------
189,613 990,899
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

11
<PAGE>

CHICAGO ASSET MANAGEMENT INTERMEDIATE BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED
1997 APRIL 30,
(UNAUDITED) 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Income................................ $ 296,325 $ 508,576
Net Realized Gain.................................... 281 8,536
Net Change in Unrealized Appreciation/Depreciation... 214,291 (57,181)
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from
Operations......................................... 510,897 459,931
- --------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income................................ (286,760) (506,282)
Net Realized Gain.................................... -- (22,948)
- --------------------------------------------------------------------------------
Total Distributions................................. (286,760) (529,230)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (1)
Issued............................................... 368,957 1,826,542
In Lieu of Cash Distributions........................ 286,692 528,662
Redeemed............................................. (164,904) (222,819)
- --------------------------------------------------------------------------------
Net Increase from Capital Share Transactions........ 490,745 2,132,385
- --------------------------------------------------------------------------------
Total Increase....................................... 714,882 2,063,086
Net Assets:
Beginning of Period.................................. 10,044,177 7,981,091
- --------------------------------------------------------------------------------
End of Period (including undistributed net investment
income of $70,381 and $60,816, respectively)........ $10,759,059 $10,044,177
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(1)Shares Issued and Redeemed:
Shares Issued....................................... 35,268 176,865
In Lieu of Cash Distributions....................... 27,571 51,334
Redeemed............................................ (15,850) (21,434)
- --------------------------------------------------------------------------------
46,989 206,765
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

12
<PAGE>

CHICAGO ASSET MANAGEMENT VALUE/CONTRARIAN PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
SIX MONTHS
ENDED DECEMBER 16,
OCTOBER 31, YEAR ENDED YEAR ENDED 1994*** TO
1997 APRIL 30, APRIL 30, APRIL 30,
(UNAUDITED) 1997 1996 1995
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD........................ $ 13.07 $ 13.67 $ 11.14 $10.00
- --------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income......... 0.09 0.18 0.19 0.05
Net Realized and Unrealized
Gain on Investments.......... 1.70 0.30 2.86 1.13
- --------------------------------------------------------------------------------
Total from Investment
Operations.................. 1.79 0.48 3.05 1.18
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income......... (0.09) (0.24) (0.23) (0.04)
Net Realized Gain............. -- (0.84) (0.29) --
- --------------------------------------------------------------------------------
Total Distributions.......... (0.09) (1.08) (0.52) (0.04)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD. $ 14.77 $ 13.07 $ 13.67 $11.14
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL RETURN+.................. 13.68%** 3.72% 28.00% 11.81%**
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period
(Thousands).................. $18,399 $13,804 $ 892 $ 696
Ratio of Expenses to Average
Net Assets................... 0.95%* 0.95% 1.06% 0.95%*
Ratio of Net Investment Income
to Average Net Assets........ 1.29%* 1.89% 1.51% 1.54%*
Portfolio Turnover Rate....... 28% 21% 33% 4%
Average Commission Rate#...... $0.0554 $0.0574 $0.0600 N/A
- --------------------------------------------------------------------------------
Voluntarily Waived Fees and
Expenses Assumed by the
Adviser Per Share............ $ 0.05 $ 0.60 $ 1.50 $ 0.58
Ratio of Expenses to Average
Net Assets Including Expense
Offsets...................... 0.95%* 0.95% 0.95% 0.95%*
- --------------------------------------------------------------------------------
</TABLE>
* Annualized
** Not Annualized
*** Commencement of Operations
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser during the periods indicated.
# Beginning with fiscal year 1996, the Portfolio is required to disclose the
average commission rate per share it paid for portfolio trades, on which
commissions were charged, during the period.

The accompanying notes are an integral part of the financial statements.

13
<PAGE>

CHICAGO ASSET MANAGEMENT INTERMEDIATE BOND PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
SIX MONTHS
ENDED JANUARY 24,
OCTOBER 31, YEAR ENDED YEAR ENDED 1995*** TO
1997 APRIL 30, APRIL 30, APRIL 30,
(UNAUDITED) 1997 1996 1995
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD......................... $ 10.30 $ 10.39 $10.33 $10.00
- -------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income.......... 0.30 0.61 0.64 0.17
Net Realized and Unrealized
Gain on Investments........... 0.22 (0.05) 0.14++ 0.26
- -------------------------------------------------------------------------------
Total from Investment
Operations................... 0.52 0.56 0.78 0.43
- -------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income.......... (0.29) (0.62) (0.64) (0.10)
Net Realized Gain.............. -- (0.03) (0.08) --
- -------------------------------------------------------------------------------
Total Distributions........... (0.29) (0.65) (0.72) (0.10)
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD.. $ 10.53 $ 10.30 $10.39 $10.33
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL RETURN+................... 5.10%** 5.53% 7.62% 4.31%**
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period
(Thousands)................... $10,759 $10,044 $7,981 $5,267
Ratio of Expenses to Average
Net Assets.................... 0.80%* 0.80% 0.84% 0.80%*
Ratio of Net Investment Income
to Average
Net Assets.................... 5.68%* 5.88% 6.17% 6.20%*
Portfolio Turnover Rate........ 18% 31% 24% 0%
- -------------------------------------------------------------------------------
Voluntarily Waived Fees and
Expenses Assumed by the
Adviser Per Share............. $ 0.06 $ 0.14 $ 0.12 $ 0.08
Ratio of Expenses to Average
Net Assets Including Expense
Offsets....................... 0.80%* 0.80% 0.80% 0.80%*
- -------------------------------------------------------------------------------
</TABLE>
* Annualized
** Not Annualized
*** Commencement of Operations
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser for the periods indicated.
++ The amount shown for a share outstanding throughout the year does not
accord with the aggregate net losses on investments for that year because
of the timing of sales and repurchases of the Portfolio shares in relation
to fluctuating market value of the investments of the Portfolio.

The accompanying notes are an integral part of the financial statements.

14
<PAGE>

CHICAGO ASSET MANAGEMENT COMPANY PORTFOLIOS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

UAM Funds Trust and UAM Funds, Inc. (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The Chicago
Asset Management Value/Contrarian Portfolio and Chicago Asset Management
Intermediate Bond Portfolio (the "Portfolios"), portfolios of UAM Funds Trust,
are diversified, open-end management investment companies. At October 31,
1997, the UAM Funds were comprised of forty-two active portfolios. The
financial statements of the remaining portfolios are presented separately. The
objective of the Chicago Asset Management Value/Contrarian Portfolio is to
provide capital appreciation by investing primarily in the common stock of
large companies. The objective of the Chicago Asset Management Intermediate
Bond Portfolio is to provide a high level of current income consistent with
moderate interest rate exposure by investing primarily in investment grade
bonds with an average weighted maturity between 3 and 10 years.

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
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: Securities listed on a securities exchange for which
market quotations are readily available are valued at the last quoted sales
price as of the close of the exchange on the day the valuation is made or,
if no sale occurred on such day, at the bid price on such day. Price
information on listed securities is taken from the exchange where the
security is primarily traded. Over-the-counter and unlisted securities are
valued at the current bid price. Fixed income securities are stated on the
basis of valuations provided by brokers and/or a pricing service which uses
information with respect to transactions in fixed income securities,
quotations from dealers, market transactions in comparable securities and
various relationships between securities in determining value. 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 using methods
determined by the Board of Trustees.

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 provision
for Federal income taxes is required in the financial statements.

3. REPURCHASE AGREEMENTS: In connection with transactions involving
repurchase agreements, the Portfolios' custodian bank takes possession of
the underlying securities, the value of which exceeds the principal 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 adequacy of the
collateral. In the event of default on the obligation to repurchase, the
Portfolios have the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. In the event of default or
bankruptcy by the other party to the agreement, realization and/or
retention of the collateral or proceeds may be subject to legal
proceedings.

15
<PAGE>

CHICAGO ASSET MANAGEMENT COMPANY PORTFOLIOS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
repurchase agreements. This joint repurchase agreement is covered by the
same collateral requirements as discussed above.

4. DISTRIBUTIONS TO SHAREHOLDERS: Each Portfolio will normally distribute
substantially 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 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 differences
are primarily due to differing book and tax treatments in the timing of the
recognition of gains or losses on investments and in-kind transactions.

5. ORGANIZATION COST: Costs incurred by each Portfolio in connection with
its organization have been deferred and are being amortized on a straight-
line basis over a five-year period.

6. OTHER: Security transactions are accounted for on trade date, the date
the trade was executed. Costs used in determining realized gains and 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 which cannot be directly
attributed are apportioned among the portfolios of the UAM Funds based on
their relative net assets. Custodian fees for the Portfolios have been
increased to include expense offsets, if any, for custodian balance
credits.

B. ADVISORY SERVICES: Under the terms of an investment advisory agreement,
Chicago Asset Management Company (the "Adviser"), a wholly-owned subsidiary of
United Asset Management Corporation ("UAM"), provides investment advisory
services to the Portfolios at a monthly fee calculated at an annual rate of
average daily net assets for the month, as follows:

<TABLE>
<CAPTION>
CHICAGO ASSET MANAGEMENT COMPANY PORTFOLIOS RATE
- ------------------------------------------- ------
<S> <C>
Value/Contrarian........................................................ 0.625%
Intermediate Bond....................................................... 0.48%
</TABLE>

Until further notice, the Adviser has voluntarily agreed to waive a portion of
its advisory fees and to assume expenses, if necessary, in order to keep the
Portfolios' total annual operating expenses (excluding interest, taxes and
extraordinary expenses), after the effect of expense offset arrangements, from
exceeding 0.95% and 0.80% of average daily net assets, respectively.

16
<PAGE>

CHICAGO ASSET MANAGEMENT COMPANY PORTFOLIOS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

million of the combined aggregate net assets; plus 0.11% of the next $800
million of the combined aggregate net assets; plus 0.07% of the next $2
billion of the combined aggregate net assets; plus 0.05% of the combined
aggregate net assets in excess of $3 billion. The fees are allocated among the
portfolios of the UAM Funds on the basis of their relative net assets and are
subject to a graduated minimum fee schedule per portfolio which rises from
$2,000 per month, upon inception of a portfolio, to $70,000 annually after two
years. For portfolios with more than one class of shares, the minimum annual
fee increases to $90,000. In addition, the Administrator receives a Portfolio-
specific monthly fee at an annual rate of 0.06% of average daily net assets of
the Chicago Asset Management Value/Contrarian Portfolio and 0.04% of average
daily net assets of the Chicago Asset Management Intermediate Bond Portfolio.
The Administrator has entered into a Mutual Funds Service Agreement with Chase
Global Funds Services Company ("CGFSC"), an affiliate of The Chase Manhattan
Bank, under which CGFSC agrees to provide certain services, including but not
limited to, administration, fund accounting, dividend disbursing and transfer
agent services. Pursuant to the Mutual Funds Service Agreement, the
Administrator pays CGFSC a monthly fee.

For the six months ended October 31, 1997, CGFSC was paid the following
amounts by the Administrator:

<TABLE>
<CAPTION>
CHICAGO ASSET MANAGEMENT COMPANY PORTFOLIOS
- -------------------------------------------
<S> <C>
Value/Contrarian...................................................... $36,797
Intermediate Bond..................................................... 39,281
</TABLE>

D. CUSTODIAN: The Chase Manhattan Bank ("the Bank"), an affiliate of CGFSC, is
custodian for the Portfolios' assets held in accordance with the custodian
agreement.

E. DISTRIBUTION SERVICES: UAM Fund Distributors, Inc. (the "Distributor"), a
wholly-owned subsidiary of UAM, distributes the shares of the Portfolios. The
Distributor does not receive any fee or other compensation with respect to the
Portfolios.

17
<PAGE>

CHICAGO ASSET MANAGEMENT COMPANY PORTFOLIOS

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

H. PURCHASES AND SALES: For the six months ended October 31, 1997, the
Portfolios' purchases and sales of investment securities other than long-term
U.S. Government securities and short-term securities were:

<TABLE>
<CAPTION>
CHICAGO ASSET MANAGEMENT COMPANY PORTFOLIOS PURCHASES SALES
- ------------------------------------------- ---------- ----------
<S> <C> <C>
Value/Contrarian........................................ $7,643,919 $4,801,233
Intermediate Bond....................................... 1,490,750 644,408
</TABLE>

Purchases and sales of long-term U.S. Government securities were $646,016 and
$1,049,492 respectively, for Chicago Asset Management Intermediate Bond
Portfolio. There were no purchases and sales of long-term U.S. Government
securities for Chicago Asset Management Value/Contrarian Portfolio.

I. LINE OF CREDIT: The Chicago Asset Management Intermediate Bond Portfolio,
along with certain other Portfolios of UAM Funds, collectively entered into an
agreement which enables them to participate in a $100 million unsecured line
of credit with several banks. Borrowings will be made solely to temporarily
finance the repurchase of Capital shares. Interest is charged to each
participating Portfolio based on its borrowings at a rate per annum equal to
the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.08% per
annum, payable at the end of each calendar quarter, is accrued by each
participating Portfolio based on its average daily unused portion of the line
of credit. During the six months ended October 31, 1997, the Chicago Asset
Management Intermediate Bond Portfolio had no borrowings under the agreement.

J. OTHER: At October 31, 1997, the percentage of total shares outstanding held
by record shareholders owning 10% or greater of the aggregate total shares
outstanding for each Portfolio was as follows:

<TABLE>
<CAPTION>
NO. OF %
CHICAGO ASSET MANAGEMENT COMPANY PORTFOLIOS SHAREHOLDERS OWNERSHIP
- ------------------------------------------- ------------ ---------
<S> <C> <C>
Value/Contrarian........................................ 1 88.2
Intermediate Bond....................................... 1 88.5
</TABLE>

18
<PAGE>

- -------------------------------------------------------------------------------

UAM FUNDS
JACOBS INTERNATIONALOCTAGON PORTFOLIO

- -------------------------------------------------------------------------------
OFFICERS AND TRUSTEES

Norton H. Reamer Peter M. Whitman, Jr.
Trustee, President Trustee
and Chairman

William H. Park
John T. Bennett, Jr. Vice President
Trustee

Nancy J. Dunn Michael E. DeFao
Trustee Secretary

Philip D. English Karl O. Hartmann
Trustee Assistant Secretary

William A. Humenuk Gary L. French
Trustee Treasurer

Robert R. Flaherty
Charles H. Salisbury, Jr. Assistant Treasurer
Trustee and Executive
Vice President

Gordon M. Shone
Assistant Treasurer

- -------------------------------------------------------------------------------
INVESTMENT ADVISER
Jacobs Asset Management
200 East Broward Boulevard
Suite 1920
Fort Lauderdale, FL 33301
- -------------------------------------------------------------------------------
ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street
Boston, MA 02110
- -------------------------------------------------------------------------------
CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center Brooklyn, NY 11245
- -------------------------------------------------------------------------------
LEGAL COUNSEL
Stradley, Ronon, Stevens & Young LLP
2600 One Commerce Square Philadelphia, PA 19103
- -------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
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.

- -------------------------------------------------------------------------------

[LOGO OF UAM FUNDS APPEARS HERE]

JACOBS
INTERNATIONAL
OCTAGON
PORTFOLIO

- -------------------------------------------------------------------------------

SEMI-ANNUAL REPORT
OCTOBER 31, 1997
<PAGE>

JACOBS ASSET MANAGEMENT
JACOBS INTERNATIONAL OCTAGON PORTFOLIO
OCTOBER 31, 1997 REVIEW

To the Shareholders:

The Jacobs International Octagon Portfolio (the "Portfolio") was started on
January 2, 1997 as part of the UAM Funds Trust. The Portfolio seeks to provide
long-term capital appreciation by investing in equity securities of companies
in developed and emerging markets. The Portfolio may invest across the market
capitalization spectrum, although it intends to emphasize smaller
capitalization stocks. As Investment Adviser of the Portfolio, we are pleased
to provide you with the following Management's Discussion and Analysis for the
six-month period ended October 31, 1997.

The six-month performance for the Portfolio was 4.47%, versus the MSCI EAFE
Index of 3.15%. For the period January 2, 1997 to October 31, 1997 (since
inception) the Portfolio returned 6.25%, net fees, versus the MSCI EAFE Index
of 2.17%.

ECONOMIC AND MARKET CONDITIONS

Europe

While economic growth in Europe is being artificially held back by fiscal
constraints in the lead up to EMU, there are increasing signs of an
improvement in economic outlook. The apparent improvement in consumer
confidence throughout the region is leading to the prospect of a sustained
acceleration in the recovery and a potential return to above trend growth in
many parts of Europe for the first time since 1994. GDP growth is expected to
be buoyant throughout the region in 1997 with growth forecasts ranging from
between +4% to 4.5% in the UK and Scandinavia to rates of +2.2 to 2.3% in
Germany and France.

Asia

The Asian currency turmoil continues and we expect to see near term economic
growth rates for the region to be downgraded, as the region enters into a
period of consolidation and economic adjustment, driven by a change in the
exchange rate regime. Political leadership and timely effective implementation
of necessary reforms will be key factors watched by investors.

Latin America

GDP forecasts for 1997 in the region have been revised up on the back of a
buoyant recovery in both Mexico and Argentina. Overall GDP growth in the
region is forecast at around +5% for 1997. Brazil is the only country with
diminishing short term economic prospects as the cost of defending the "Real"
with high interest rates could push the economy into recession. Inflationary
trends are also positive with the regional rate expected to improve to around
12% in 1997 and fall further to just over 10% in 1998 after being at over 21%
last year.

Jacobs continues to use our bottom-up value approach for investing this and
all of our portfolios. During the period our top five country holdings
included United Kingdom, France, Japan, Mexico, and Hong Kong. These five
holdings made up 40.0% of the total portfolio. The Portfolio was split
approximately 53.3% large cap issues and 36.3% small cap issues. We have
defined small cap to be companies with market capitalization less than $1
billion. The Portfolio reflected 56.7% developed markets and 22.0% emerging
markets. The balance of the Portfolio contains the cash position of 21.3%. The
cash position at the end of the period was unusually high as the portfolio had
received a large injection of new investment funds to take advantage of the
weakness in international markets. Subsequently, the funds were put to work
and now currently, as of the date of this letter, cash is now less than 10% of
the total portfolio.

CURRENT OUTLOOK

We continue to believe that there is better value outside the United States
than within and are on the margin finding more opportunities in smaller
companies rather than larger ones. This is particularly true in Europe where
the markets have done well but the small caps have lagged and are at least
several multiples less on a P/E basis than their large cap brethren. Regarding
emerging Europe, Russia has been one of the best performing markets

1
<PAGE>

in the world, up over 150% in 1997, and we continue to see on a long-term
basis a bright outlook, however there could be a pull-back at any time as the
market is ahead of itself. In eastern Europe it is very hard to find value at
the moment, as some of the countries are going through a retrenchment, such as
the Czech Republic, and to some degree, Poland.

In Latin America we continue to be overweighted and think that the prospects
will remain good and that there has been a fundamental change in the way that
business and governments operate in Latin America. However, they are still
emerging markets, and we do not believe that they should achieve the same
valuation level as developed markets. The Mexican economy is getting stronger,
which has been reflected in share prices, but we continue to have a strong
interest in Mexico. We are nervous about the short-term prospects for the
Brazilian market and have reduced our exposure.

Asia has been the trouble spot in 1997 particularly Southeast Asia. There
has been a melt-down in Thailand, Malaysia, Indonesia, Philippines, Singapore,
Korea and Hong Kong/China. We believe that it is too early in most of the
countries, however, we feel like we are getting close to having an investment
opportunity, particularly in Indonesia, where the Rupia has been depreciated
well below its fair value and we should see a rebound in currency at some
point in time. However, there will be a lot of pain caused by the devaluation
of the currencies in Southeast Asia and it will not be a v-shaped recovery. On
the margin we have been very underweighted in Southeast Asia, outside of Hong
Kong and China and we will be looking for opportunities to add. Thailand is
the one market where stocks have probably been beaten up about as much as they
are going to go. It is a difficult market in which to invest because Thailand
has a limited number of good companies. The biggest sector is financial, which
is still a question mark, regarding the bad debt situation. Hong Kong and
China have recently been very weak based on fears of a devaluation of the Hong
Kong dollar. We believe the currency will hold, but at the price of an
economic slowdown. The problem with Hong Kong reflects a period of loose money
and negative interest rates for a number of years, which created an over-
priced real-estate market. We expect real-estate prices to come off perhaps
20% which would impact the property sector and the financial sector, a big
part of the Hong Kong market. Although we are exposed in Hong Kong and China,
we view them as good long-term prospects. The short-term concern regarding
China, is the level of debt of state-owned companies to the state-owned
banking system which could force China to slow its economy to correct this
imbalance. In the long-term, China is the main growth engine of Asia. Our
total exposure in both markets is around 10%. Japan remains an underweight,
although we continue to look at the small caps with an increased intensity as
they have under-performed remarkably.

In general we think that there are many opportunities outside of the United
States, on a bottom up stock-picking basis, and are finding more value in the
smaller caps at this point in time.

In summary, we believe the Portfolio is well-positioned with good value
based ideas.

Thank you for your continued confidence in Jacobs Asset Management and the
Jacobs International Octagon Portfolio.

Sincerely,

/s/ Daniel L. Jacobs

Daniel L. Jacobs, CFA
President
Jacobs Asset Management

2
<PAGE>

DEFINITION OF THE COMPARATIVE INDEX

Comparisons of performance assume reinvestment of dividends.

Please note that one cannot invest in an unmanaged index.

3
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
<S> <C> <C>

- -------------------------------------------------------------------------------
COMMON STOCKS (84.9%)
- -------------------------------------------------------------------------------
ARGENTINA (2.4%)
Central Costanera S.A., Class B........................ 64,300 $ 148,625
Transportadora de Gas del Sur S.A. ADR................. 13,800 130,238
YPF S.A. ADR........................................... 46,000 1,472,000
-----------
1,750,863
- -------------------------------------------------------------------------------
AUSTRALIA (3.4%)
*Colonial Ltd.......................................... 404,000 1,124,683
News Corp., Ltd. ADR................................... 73,600 1,306,400
-----------
2,431,083
- -------------------------------------------------------------------------------
BRAZIL (2.8%)
Bompreco S.A. GDR...................................... 23,412 515,064
CELESC ADR, Class B.................................... 500 54,000
CELESC GDR............................................. 600 65,309
*COELBA................................................ 8,580,000 466,981
Companhia Brasileira de Distribuicao Grupo Pao de
Acucar ADR............................................ 1,100 20,350
Copel ADR.............................................. 15,500 175,744
Electrobras ADR........................................ 7,800 164,497
Telebras............................................... 2,810,000 249,775
Telebras ADR........................................... 1,400 142,100
Telepar................................................ 370,000 194,663
-----------
2,048,483
- -------------------------------------------------------------------------------
CHILE (0.8%)
*Supermercados Unimarc S.A. ADR........................ 38,200 573,000
- -------------------------------------------------------------------------------
CHINA (1.8%)
*China Southern Airlines Co. Ltd. ADR.................. 15,800 327,850
Guangdong Electric Power Development Co., Ltd. ........ 471,160 265,751
Shandong Huaneng Power Co., Ltd. ADR................... 96,100 714,744
-----------
1,308,345
- -------------------------------------------------------------------------------
CZECH REPUBLIC (0.8%)
*SPT Telecom A.S....................................... 5,000 576,474
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- ----------------------------------------------------------------------------
<S> <C> <C>

COMMON STOCKS--(CONTINUED)
- ----------------------------------------------------------------------------
DENMARK (2.5%)
Sydbank A/S......................................... 19,800 $ 1,026,360
Unidanmark A/S, Class A (Registered)................ 11,907 804,196
-----------
1,830,556
- ----------------------------------------------------------------------------
FINLAND (1.5%)
Enso Oy............................................. 118,520 1,110,402
- ----------------------------------------------------------------------------
FRANCE (9.6%)
Assurances Generales de France...................... 24,160 1,271,446
Compagnie Plastic-Omnium S.A........................ 7,782 873,048
*France Telecom S.A................................. 31,100 1,177,217
Ile de France Pharmaceutique........................ 1,105 228,009
Lafarge S.A......................................... 3,200 199,976
Lagardere S.C.A..................................... 40,000 1,150,665
Scor................................................ 24,285 1,128,115
Sylea............................................... 10,410 920,584
-----------
6,949,060
- ----------------------------------------------------------------------------
GERMANY (1.5%)
Volkswagen AG....................................... 1,786 1,059,913
- ----------------------------------------------------------------------------
GREECE (2.9%)
Hellenic Telecommunication Organization S.A......... 56,600 1,181,026
Sarantis S.A........................................ 77,377 939,227
-----------
2,120,253
- ----------------------------------------------------------------------------
HONG KONG (8.7%)
Cheung Kong Holdings, Ltd........................... 162,000 1,126,455
China Light and Power Co., Ltd...................... 129,500 681,844
Dah Sing Financial Group............................ 18,300 45,928
Guangdong Kelon Elec Holding, Class H............... 673,000 853,221
HSBC Holdings plc................................... 18,000 407,503
International Bank of Asia.......................... 1,445,100 673,009
Jardine Matheson Holdings Ltd. ADR.................. 108,800 696,320
JCG Holdings Ltd.................................... 628,000 278,254
Lippo China Resources Ltd. ADR...................... 1,520,000 398,189
Mandarin Oriental International Ltd. ADR............ 602,498 475,973
</TABLE>

The accompanying notes are an integral part of the financial statements.

5
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
<S> <C> <C>

- ----------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- ----------------------------------------------------------------------------
HONG KONG--(CONTINUED)
National Mutual Asia Ltd............................ 202,000 $ 182,924
Swire Pacific, Ltd., Class A........................ 20,000 106,856
Tingyi Holding Co................................... 2,524,000 424,476
-----------
6,350,952
- ----------------------------------------------------------------------------
INDONESIA (1.8%)
Bank Nisp (Foreign)................................. 1,456,100 365,039
Bimantara Citra (Foreign)........................... 168,000 154,429
Indosat ADR......................................... 31,600 748,525
PT Bank Tiara Asia (Foreign)........................ 319,500 53,398
-----------
1,321,391
- ----------------------------------------------------------------------------
IRELAND (1.4%)
Irish Life plc...................................... 196,880 1,046,499
- ----------------------------------------------------------------------------
ISRAEL (1.4%)
ECI Telecommunications Ltd. ADR..................... 36,500 1,008,312
- ----------------------------------------------------------------------------
ITALY (1.1%)
Fila Holding S.p.A. ADR............................. 3,250 81,656
Montedison S.p.A.................................... 900,000 730,312
-----------
811,968
- ----------------------------------------------------------------------------
JAPAN (6.7%)
Fuji Photo Film Co.................................. 28,000 1,014,628
Hitachi, Ltd........................................ 99,000 761,095
Laox................................................ 40,000 355,718
Marukyo............................................. 31,000 257,646
Matsumotokiyoshi.................................... 14,500 530,253
Nintendo Corp., Ltd................................. 600 51,862
Paris Miki, Inc..................................... 3,000 52,360
Sankyo Co., Ltd..................................... 23,000 758,893
Sony Corp........................................... 12,000 996,343
Sony Corp. ADR...................................... 700 59,063
-----------
4,837,861
- ----------------------------------------------------------------------------
KOREA (0.4%)
*Housing & Commercial Bank GDR...................... 36,528 315,054
- ----------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

6
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
<S> <C> <C>

- -----------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- -----------------------------------------------------------------------------
MEXICO (5.8%)
ALFA, S.A. de C.V., Class A.......................... 34,400 $ 253,777
*Banacci, Class B.................................... 217,900 432,669
*Empaques Ponderosa S.A., Class B.................... 845,800 638,149
Fomento Economico Mexicano S.A. de C.V., Class B..... 79,000 556,311
*Grupo Financiero Banorte S.A., Class B.............. 296,000 421,844
*Grupo Industrial Camesa S.A......................... 1,031,200 617,485
Hylsamex ADR......................................... 14,500 560,023
*Industrias CH, S.A., Series B....................... 108,000 556,168
Sistema Argos S.A., Class B.......................... 128,200 191,916
-----------
4,228,342
- -----------------------------------------------------------------------------
NETHERLANDS (4.4%)
Akzo Nobel N.V....................................... 5,175 912,090
Akzo Noble N.V. ADR.................................. 11,100 971,250
Apothekers Cooperatie OPG............................ 6,700 201,932
Polynorm N.V......................................... 10,565 1,115,830
-----------
3,201,102
- -----------------------------------------------------------------------------
NORWAY (4.2%)
Gresvig ASA.......................................... 20,210 288,006
Nycomed Amersham plc................................. 12,511 478,710
Nycomed ASA, Class B................................. 12,140 301,026
SAS Norske ASA, Class B.............................. 82,700 1,390,669
*Storebrand ASA...................................... 80,300 595,052
-----------
3,053,463
- -----------------------------------------------------------------------------
PERU (0.4%)
Telefonica del Peru S.A. ADR......................... 14,000 276,500
Telefonica del Peru S.A., Class B.................... 12,000 23,690
-----------
300,190
- -----------------------------------------------------------------------------
PHILIPPINES (0.3%)
*Bankard, Inc........................................ 1,608,400 109,976
*Marsman & Company, Inc., Class B.................... 1,171,500 80,103
-----------
190,079
- -----------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

7
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
<S> <C> <C>

- -------------------------------------------------------------------------------
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
POLAND (0.9%)
*Bank Handlowy W Warszawie............................. 51,000 $ 685,862
- -------------------------------------------------------------------------------
RUSSIA (1.4%)
*Vimpel-Communications ADR............................. 30,450 997,238
- -------------------------------------------------------------------------------
SPAIN (1.6%)
Banco de Valencia S.A.................................. 38,441 773,208
Banco Pastor S.A....................................... 1,800 134,301
Electricas Reunidas de Zaragoza, S.A................... 5,087 192,398
Gas y Electricidad, S.A................................ 500 34,383
-----------
1,134,290
- -------------------------------------------------------------------------------
SWEDEN (5.1%)
Althin Medical AB, Class B............................. 10,195 171,306
*Enator AB............................................. 31,000 491,952
Finnveden Invest AB, Class B........................... 16,300 358,662
*Frontec AB, Class B................................... 21,708 192,511
*Industrial & Financial Systems........................ 92,000 585,835
Investment AB Bure..................................... 35,100 428,294
Marieberg Tidnings, Class A Fria....................... 29,185 778,401
Pharmacia & Upjohn, Inc................................ 22,500 714,375
-----------
3,721,336
- -------------------------------------------------------------------------------
THAILAND (0.1%)
Dhipaya Insurance plc.................................. 100,100 58,595
- -------------------------------------------------------------------------------
UNITED KINGDOM (9.2%)
BTR plc................................................ 204,940 691,831
Glaxo Wellcome plc ADR................................. 17,730 759,066
National Power plc..................................... 45,255 377,277
National Westminster Bank plc.......................... 83,540 1,200,916
Premier Oil plc........................................ 1,139,000 917,069
Save Group plc......................................... 206,000 387,010
Somerfield plc......................................... 310,140 1,006,644
United Utilities plc................................... 111,680 1,364,715
-----------
6,704,528
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $62,357,432).................. 61,725,494
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

8
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
<S> <C> <C>

- -------------------------------------------------------------------------------
PREFERRED STOCKS (4.6%)
- -------------------------------------------------------------------------------
AUSTRIA (2.3%)
*Bank Austria AG...................................... 35,950 $ 1,641,634
- -------------------------------------------------------------------------------
BRAZIL (2.3%)
*Coelce, Class A...................................... 100,000,000 362,845
Companhia Brasileira de Distribuicao Grupo Pao de
Acucar............................................... 800,000 15,239
Confeccoes Guararapes S.A............................. 143,200 519,594
Itausa Investimentos Itau S.A......................... 469,000 319,077
Telepar............................................... 601,130 313,537
Telerj................................................ 1,600,000 152,395
-----------
1,682,687
- -------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS (COST $3,356,030)............... 3,324,321
- -------------------------------------------------------------------------------
<CAPTION>
NO. OF
RIGHTS
- -------------------------------------------------------------------------------
<S> <C> <C>
RIGHTS (0.0%)
- -------------------------------------------------------------------------------
BRAZIL (0.0%)
*Telepar.............................................. 18,056 --
*Telepar (Preferred).................................. 29,335 --
*Telerj (Preferred)................................... 62,080 --
- -------------------------------------------------------------------------------
TOTAL RIGHTS (COST $0)................................. --
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

9
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
<S> <C> <C>

- -------------------------------------------------------------------------------
SHORT-TERM INVESTMENT (24.3%)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT
Chase Securities, Inc. 5.60%, dated 10/31/97, due
11/03/97, to be repurchased at $17,653,234,
collateralized by $16,917,548 of various U.S.
Treasury Notes, 5.50%-8.75%, due from 05/15/00-
06/30/02, valued at $17,654,954 (COST $17,645,000).. $17,645,000 $17,645,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (113.8%) (COST $83,358,462) (a)..... 82,694,815
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET) (-13.8%)........... (10,056,179)
- -------------------------------------------------------------------------------
NET ASSETS (100%)..................................... $72,638,636
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</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 $83,358,462. At October 31,
1997, net unrealized depreciation for all securities based on tax cost was
$663,647. This consisted of aggregate gross unrealized appreciation for
all securities of $5,692,949 and aggregate gross unrealized depreciation
for all securities of $6,356,596.

The accompanying notes are an integral part of the financial statements.

10
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

At October 31, 1997 sector diversification of the Portfolio was as follows:
<TABLE>
<CAPTION>
% OF
NET
SECTOR DIVERSIFICATION ASSETS VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
Automotive................................................ 2.7% $ 1,980,497
Banks..................................................... 11.2 8,126,407
Beverages, Food & Tobacco................................. 1.0 748,227
Building Materials........................................ 0.3 199,976
Chemicals................................................. 1.3 912,090
Computers................................................. 1.8 1,270,298
Construction.............................................. 0.2 164,497
Consumer Durables......................................... 2.0 1,484,670
Consumer Non-Durables..................................... 1.3 939,227
Electronics............................................... 1.0 761,095
Financial Services........................................ 3.9 2,795,720
Food...................................................... 3.0 2,181,782
Holding Company........................................... 1.6 1,150,665
Industrial................................................ 1.6 1,173,653
Insurance................................................. 5.9 4,282,632
Lodging & Restaurants..................................... 0.7 475,973
Manufacturing............................................. 4.2 3,055,367
Metals.................................................... 0.5 358,662
Multi-Industry............................................ 4.2 3,039,111
Natural Resources......................................... 0.8 560,023
Oil & Gas................................................. 3.3 2,389,069
Paper & Packaging......................................... 2.4 1,748,551
Pharmaceuticals........................................... 5.2 3,745,779
Print and Publishing...................................... 1.1 778,402
Real Estate............................................... 2.9 2,134,768
Real Estate Investment Trusts............................. 0.5 398,189
Repurchase Agreement...................................... 24.3 17,645,000
Retail.................................................... 3.4 2,492,673
Technology................................................ 0.2 154,429
Telecommunications........................................ 10.1 7,339,540
Textiles & Apparel........................................ 0.8 601,250
Transportation............................................ 2.5 1,848,756
Utilities................................................. 7.9 5,757,837
----- ------------
Total Investments......................................... 113.8% $ 82,694,815
Other Assets and Liabilities.............................. (13.8) (10,056,179)
----- ------------
Net Assets................................................ 100.0% $ 72,638,636
===== ============
</TABLE>

The accompanying notes are an integral part of the financial statements.

<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1997 (Unaudited)

<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments (including repurchase agreement), at Cost............ $83,358,462
===========
Investments, at Value............................................ $65,049,815
Repurchase Agreement, at Value................................... 17,645,000
Cash............................................................. 710
Dividends Receivable............................................. 88,002
Receivable for Investments Sold.................................. 130,504
Foreign Withholding Tax Reclaim Receivable....................... 31,855
Interest Receivable.............................................. 2,745
Other Assets..................................................... 10,996
- -------------------------------------------------------------------------------
Total Assets.................................................... 82,959,627
- -------------------------------------------------------------------------------
LIABILITIES
Payable for Investments Purchased................................ 10,203,329
Payable for Investment Advisory Fees--Note B..................... 52,680
Payable for Administrative Fees--Note C.......................... 6,055
Payable for Trustees' Fees--Note G............................... 547
Other Liabilities................................................ 58,380
- -------------------------------------------------------------------------------
Total Liabilities............................................... 10,320,991
- -------------------------------------------------------------------------------
NET ASSETS........................................................ $72,638,636
===============================================================================
NET ASSETS CONSIST OF:
Paid in Capital.................................................. $72,198,677
Undistributed Net Investment Income.............................. 130,172
Accumulated Net Realized Gain.................................... 999,089
Unrealized Depreciation.......................................... (689,302)
- -------------------------------------------------------------------------------
NET ASSETS........................................................ $72,638,636
===============================================================================
INSTITUTIONAL CLASS SHARES
Shares Issued and Outstanding (Unlimited authorization, no par
value).......................................................... 6,879,061
Net Asset Value, Offering and Redemption Price Per Share......... $ 10.56
===============================================================================
</TABLE>

The accompanying notes are an integral part of the financial statements.

12
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO
STATEMENT OF OPERATIONS
For the Six Months Ended October 31,1997 (Unaudited)

<TABLE>
- ----------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends................................................. $ 576,073
Interest.................................................. 151,701
Less Foreign Taxes Withheld............................... (61,685)
- ----------------------------------------------------------------------------------
Total Income............................................. 666,089
- ----------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees--Note B
Basic Fees............................................... $277,585
Less: Fees Waived........................................ (48) 277,537
--------
Administrative Fees--Note C............................... 40,541
Custodian Fees--Note D.................................... 24,037
Printing Fees............................................. 16,388
Filing and Registration Fees.............................. 10,948
Audit Fees................................................ 6,104
Trustees' Fees--Note G.................................... 1,406
Account Services Fees--Note F............................. 387
Other Expenses............................................ 18,405
- ----------------------------------------------------------------------------------
Total Expenses........................................... 395,753
Expense Offset--Note A.................................... --
- ----------------------------------------------------------------------------------
Net Expenses............................................. 395,753
- ----------------------------------------------------------------------------------
NET INVESTMENT INCOME...................................... 270,336
- ----------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS):
Investments.............................................. 1,051,805
Foreign Currency Transactions............................ (32,208)
- ----------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS.............................................. 1,019,597
- ----------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON:
Investments.............................................. (564,157)
Foreign Currency Translations............................ (25,101)
- ----------------------------------------------------------------------------------
TOTAL NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION... (589,258)
- ----------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS AND FOREIGN CURRENCY............... 430,339
- ----------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....... $ 700,675
==================================================================================
</TABLE>

The accompanying notes are an integral part of the financial statements.

13
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS
ENDED JANUARY 2,
OCTOBER 31, 1997* TO
1997 APRIL 30,
(UNAUDITED) 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Income................................ $ 270,336 $ 218,770
Net Realized Gain (Loss)............................. 1,019,597 (45,962)
Net Change in Unrealized Appreciation/Depreciation... (589,258) (100,044)
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Opera-
tions.............................................. 700,675 72,764
- --------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income................................ (333,480) --
Net Realized Gain.................................... -- --
- --------------------------------------------------------------------------------
Total Distributions................................. (333,480) --
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (1)
Issued............................................... 37,740,063 35,936,680
In Lieu of Cash Distributions........................ 276,947 --
Redeemed............................................. (1,578,359) (176,654)
- --------------------------------------------------------------------------------
Net Increase from Capital Share Transactions........ 36,438,651 35,760,026
- --------------------------------------------------------------------------------
Total Increase....................................... 36,805,846 35,832,790
Net Assets:
Beginning of Period.................................. 35,832,790 --
- --------------------------------------------------------------------------------
End of Period (including undistributed net investment
income of $130,172 and $193,316, respectively)...... $72,638,636 $35,832,790
================================================================================
(1)Shares Issued and Redeemed:
Shares Issued....................................... 3,472,955 3,542,188
In Lieu of Cash Distributions....................... 24,244 --
Shares Redeemed..................................... (142,740) (17,586)
- --------------------------------------------------------------------------------
3,354,459 3,524,602
================================================================================
</TABLE>
* Commencement of Operations

The accompanying notes are an integral part of the financial statements.

14
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
SIX MONTHS
ENDED JANUARY 2,
OCTOBER 31, 1997* TO,
1997 APRIL 30,
(UNAUDITED) 1997
- -------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................ $ 10.17 $ 10.00
- -------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income.............................. 0.03 0.06
Net Realized and Unrealized Gain on Investments.... 0.43 0.11++
- -------------------------------------------------------------------------------
Total from Investment Operations.................. 0.46 0.17
- -------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income.............................. (0.07) --
Net Realized Gain.................................. -- --
- -------------------------------------------------------------------------------
Total Distributions............................... (0.07) --
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD...................... $ 10.56 $ 10.17
===============================================================================
TOTAL RETURN+....................................... 4.47%*** 1.70%***
===============================================================================
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period (Thousands)............... $72,639 $35,833
Ratio of Expenses to Average Net Assets............. 1.42%** 1.75%**
Ratio of Net Investment Income to Average Net As-
sets............................................... 0.97%** 3.67%**
Portfolio Turnover Rate............................. 16% 7%
Average Commission Rate............................. $0.0013 $0.0037
- -------------------------------------------------------------------------------
Voluntarily Waived Fees and Expenses Assumed by the
Adviser Per Share.................................. $ -- # $ 0.01
Ratio of Expenses to Average Net Assets Including
Expense Offsets.................................... 1.42%** 1.75%**
- -------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
** Annualized
*** Not Annualized
# Amount is less than $0.01 per share.
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser.
++ The amount shown for a share outstanding throughout the period does not
accord with the aggregate net loss on investments for that period because
of the timing of sales and repurchases of the Portfolio shares in relation
to fluctuating market value of the investments of the Portfolio.

The accompanying notes are an integral part of the financial statements.

15
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

UAM Funds Trust and UAM Funds, Inc. (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The Jacobs
International Octagon Portfolio (the "Portfolio"), a portfolio of UAM Funds
Trust, is a diversified, open-end management investment company. At October
31, 1997, the UAM Funds were comprised of forty-two active portfolios. The
financial statements of the remaining portfolios are presented separately. The
objective of the Jacobs International Octagon Portfolio is to provide long-
term capital appreciation by investing in equity securities of companies in
developed and emerging markets.

1. SECURITY VALUATION: Securities listed on a securities exchange for which
market quotations are readily available are valued at the last quoted sales
price as of the close of the exchange on the day the valuation is made or,
if no sale occurred on such day, at the bid price on such day. Price
information on listed securities is taken from the exchange where the
security is primarily traded. Over-the-counter and unlisted securities are
valued at the current bid price. Quotations of foreign securities and other
assets in a foreign currency are converted to U.S. dollar equivalents. The
converted value is based upon the bid price of the foreign currency against
U.S. dollars quoted by any major bank or by a broker. 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 using methods
determined by the Board of Trustees.

16
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
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
portion 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 gain and loss on investments on the statement of
operations. Net realized and unrealized gains and losses on foreign
currency transactions represent net foreign exchange gains or losses from
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 Portfolio's books and the U.S. dollar
equivalent amounts actually received or paid.

6. DISTRIBUTIONS TO SHAREHOLDERS: The Portfolio will normally distribute
substantially all of its net investment income quarterly. Any realized net
capital gains will be distributed annually. All distributions are recorded
on ex-dividend date.

7. OTHER: Security transactions are accounted for on trade date, the date
the trade was executed. Costs used in determining realized gains and 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 income is
recognized on the accrual basis. Most expenses of the UAM Funds can be
directly attributed to a particular portfolio. Expenses which cannot be
directly attributed are apportioned among the portfolios of the UAM Funds
based on their relative net assets. Custodian fees for the Portfolio have
been increased to include expense offsets, if any, for custodian balance
credits.

17
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

B. ADVISORY SERVICES: Under the terms of an investment advisory agreement,
Jacobs Asset Management (the "Adviser") provides investment advisory services
to the Portfolio at a monthly fee calculated at an annual rate of 1.00% of
average daily net assets for the month. 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 expense offset arrangements, from exceeding 1.75% of average daily
net assets. United Asset Management Corporation ("UAM") is a limited partner
of the Adviser.

D. CUSTODIAN: The Chase Manhattan Bank (the "Bank"), an affiliate of CGFSC, is
custodian for the Portfolio's assets held in accordance with the custodian
agreement.

G. TRUSTEES' FEES: Each Trustee, who is not an officer or affiliated person,
receives $2,000 per meeting attended, 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 and reimbursement of expenses incurred in
attending Trustee meetings.

18
<PAGE>

JACOBS INTERNATIONAL OCTAGON PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

H. PURCHASES AND SALES: For the six months ended October 31, 1997, the
Portfolio made purchases of $41,007,350 and sales of $8,168,453 of investment
securities other than long-term U.S. Government and short-term securities.
There were no purchases or sales of long-term U.S. Government securities.

J. OTHER: At October 31, 1997, 48.4% of total shares outstanding were held by
3 record shareholders owning more than 10% of the aggregate total shares
outstanding.

At October 31, 1997, the net assets of the Portfolio were substantially
comprised of foreign denominated securities. Changes in currency exchange
rates will affect the value of and investment income from such securities.

19
<PAGE>

- --------------------------------------------------------------------------------

UAM FUNDS
TJ CORE EQUITY
PORTFOLIO

- --------------------------------------------------------------------------------

OFFICERS AND TRUSTEES

INVESTMENT ADVISER
Tom Johnson Investment Management, Inc.
211 North Robinson, Suite 450
Oklahoma City, OK 73102

- --------------------------------------------------------------------------------

ADMINISTRATOR
UAM Fund Services, Inc.
211 Congress Street Boston, MA 02110

- --------------------------------------------------------------------------------

CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, NY 11245

- --------------------------------------------------------------------------------

LEGAL COUNSEL
Stradley, Ronon, Stevens & Young LLP
2600 One Commerce Square Philadelphia, PA 19103

- --------------------------------------------------------------------------------

INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
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.

- --------------------------------------------------------------------------------

[LOGO OF UAM FUNDS APPEARS HERE]

TJ CORE
EQUITY
PORTFOLIO

- --------------------------------------------------------------------------------

SEMI-ANNUAL REPORT
OCTOBER 31, 1997
<PAGE>

Dear Fellow Shareholders:

The equity markets experienced a strong bull market and a 10% correction for
the six month period ended October 31, 1997. As has been the pattern since the
crash of 1987, every 10% decline in the market is followed by a bargain-
hunting session of individual investors who don't want to miss the bull
market. Unlike ten years ago when the market crashed and institutions didn't
know if individuals would run for the exits, this time it was pretty clear
that individuals were running, for the entrances. The Dow Jones Industrial
Average and the S&P 500 Index posted gains of 7.12% and 15.16%, respectively,
while the TJ Core Equity Portfolio produced gains of 15.17%.

Market valuation levels continue to be stretched above and beyond historical
ranges, and assume that companies will continue to show good earnings
comparisons even as sales slow and internal expenses rise. As has been written
in the past, the Portfolio has been structured defensively to do better in a
choppier environment than one in which there is only smooth sailing. As a
result, the Portfolio's increasingly defensive portfolio outperformed the
broader market indices for the six months ended October 31, 1997.

The fiscal quarter ended October 31, 1997 showed more signs of increasing
volatility in the domestic equity and international markets and only a muted
response from the fixed income markets. The fixed income markets continue to
watch Federal Reserve Chairman Greenspan react to a strong economy with no
consumer inflation by doing nothing. Greenspan frets about wages rising but
also fears a tightening since the Southeast Asian countries' financial markets
are in a state of chaos and gold prices continue to decline to $300/oz.--both
highly deflationary indicators. Hence, Greenspan turns his attention to the
equity markets and worries that they are too exuberant. The markets are
slightly less exuberant after their fearful downdraft brought to us in living
color by CNBC with fears of a market meltdown. For the quarter ended October
31, 1997, the TJ Core Equity Portfolio outperformed the S&P 500 Index with a
decline of only 0.48% versus a decline of 3.75% in the S&P 500 and 9.09% in
the Dow Jones Industrial Average.

The Adviser has taken advantage of the increasing volatility and used this
opportunity to cut back some of the Portfolio's positions that had a
substantial move, eliminate positions we received in spin-offs and reinvest
the proceeds to increase current holdings or purchase new positions in more
attractively valued stocks. During the six months ended October 31, 1997, the
Portfolio reduced positions in USX-U.S. Steel Group, Ford Motor, Cooper
Industries, Union Camp, AT&T, Southwest Airlines, ITT Industries, H&R Block,
and Waste Management. The Portfolio eliminated spin-off holdings in Cognizant,
ACNielsen, and NCR Corporation. The proceeds from these sales were used to
purchase new positions in Allergan, Jostens, Raytheon, Limited, Union Pacific,
Johnson & Johnson, American Home Products, AMP, Boeing, and McDonald's.

The recent volatility in stock prices is expected to continue as momentum
investors jump from one market segment to another in search of the level of
performance enjoyed in recent years. In our view, returns similar to the
recent year's outstanding gains are not likely, as the economic outlook
becomes more uncertain and earnings advances become more difficult to
maintain. As a result, the Adviser will continue to emphasize the defensive
posture of the TJ Core Equity Portfolio and will use instances of increasing
volatility as opportunities to accumulate undervalued companies with favorable
long-term prospects.

TOM JOHNSON INVESTMENT MANAGEMENT, INC.

DEFINITION OF THE COMPARATIVE INDICES
-------------------------------------

The Dow Jones Industrial Average Index is a price weighted average of 30 blue-
chip stocks that are generally the leaders in their industry and are listed on
the New York Stock Exchange.

The S&P 500 Index is an unmanaged index composed of 400 industrial, 40
financial, 40 utilities and 20 transportation stocks.

Comparisons of performance assume reinvestment of dividends.

Please note that one cannot invest in an unmanaged index.

1
<PAGE>

TJ CORE EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (94.8%)
- -------------------------------------------------------------------------------
AEROSPACE & DEFENSE (3.6%)
Boeing Co.................................................... 1,000 $ 47,875
Raytheon Co.................................................. 4,700 254,975
---------
302,850
- -------------------------------------------------------------------------------
AUTOMOTIVE (1.3%)
Ford Motor Co. .............................................. 2,500 109,219
- -------------------------------------------------------------------------------
BANKS (5.0%)
First Union Corp. ........................................... 4,500 220,781
NationsBank Corp. ........................................... 3,400 203,575
---------
424,356
- -------------------------------------------------------------------------------
BEVERAGES, FOOD & TOBACCO (5.8%)
Anheuser-Busch Cos., Inc. ................................... 4,000 159,750
Heinz (H.J.) Co. ............................................ 2,500 116,094
Sara Lee Corp. .............................................. 4,200 214,725
---------
490,569
- -------------------------------------------------------------------------------
BROADCASTING & PUBLISHING (5.2%)
Dun & Bradstreet Corp. ...................................... 8,700 248,494
Gannett Co. ................................................. 2,000 105,125
McGraw-Hill Cos., Inc. ...................................... 1,400 91,525
---------
445,144
- -------------------------------------------------------------------------------
BUILDING MATERIALS (3.0%)
Foster Wheeler Corp. ........................................ 7,700 252,656
- -------------------------------------------------------------------------------
CHEMICALS (3.0%)
Mallinckrodt, Inc. .......................................... 6,800 255,000
- -------------------------------------------------------------------------------
CONSUMER DURABLES (2.1%)
Jostens, Inc. ............................................... 7,500 174,844
- -------------------------------------------------------------------------------
CONSUMER NON-DURABLES (1.6%)
AMP, Inc. ................................................... 3,100 139,500
- -------------------------------------------------------------------------------
ELECTRONICS (1.3%)
General Electric Co. ........................................ 1,700 109,756
- -------------------------------------------------------------------------------
ENERGY (7.1%)
Amoco Corp. ................................................. 2,200 201,712
Coastal Corp. ............................................... 1,500 90,188
Halliburton Co. ............................................. 2,400 143,100
Mobil Corp. ................................................. 2,300 167,469
---------
602,469
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.

2
<PAGE>

TJ CORE EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
FINANCIAL SERVICES (7.3%)
American Express Co. ........................................ 2,000 $ 156,000
Block, H&R Inc. ............................................. 5,800 214,600
Fannie Mae................................................... 4,000 193,750
Lehman Brothers Holdings, Inc. .............................. 1,200 56,475
---------
620,825
- -------------------------------------------------------------------------------
HEALTH CARE (4.3%)
Columbia/HCA Healthcare Corp. ............................... 7,000 197,750
United Healthcare Corp. ..................................... 3,700 171,356
---------
369,106
- -------------------------------------------------------------------------------
HOLDING COMPANY (2.0%)
Textron, Inc. ............................................... 2,900 167,656
- -------------------------------------------------------------------------------
INDUSTRIAL (2.9%)
Cooper Industries, Inc. ..................................... 4,700 244,987
- -------------------------------------------------------------------------------
INSURANCE (1.2%)
Hartford Financial Services Group Inc. ...................... 1,200 97,200
- -------------------------------------------------------------------------------
LODGING & RESTAURANTS (0.5%)
McDonald's Corp. ............................................ 1,000 44,812
- -------------------------------------------------------------------------------
MANUFACTURING (4.2%)
ITT Industries, Inc. ........................................ 7,200 227,250
Tyco International Ltd. ..................................... 3,400 128,350
---------
355,600
- -------------------------------------------------------------------------------
METALS (0.6%)
USX-U.S. Steel Group, Inc. .................................. 1,500 51,000
- -------------------------------------------------------------------------------
OFFICE EQUIPMENT (0.9%)
Pitney Bowes, Inc. .......................................... 1,000 79,313
- -------------------------------------------------------------------------------
PAPER & PACKAGING (0.5%)
Union Camp Corp. ............................................ 800 43,350
- -------------------------------------------------------------------------------
PHARMACEUTICALS (7.1%)
Allergan, Inc. .............................................. 6,700 220,681
American Home Products Corp. ................................ 600 44,475
Bristol-Myers Squibb Co. .................................... 1,000 87,750
Johnson & Johnson............................................ 2,800 160,650
Merck & Co., Inc. ........................................... 1,000 89,250
---------
602,806
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.

3
<PAGE>

TJ CORE EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
October 31, 1997 (Unaudited)

<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
RETAIL (4.7%)
Limited, Inc. ........................................... 8,000 $ 188,500
Wal-Mart Stores, Inc. ................................... 6,000 210,750
----------
399,250
- -------------------------------------------------------------------------------
SERVICES (1.5%)
Waste Management, Inc. .................................. 5,400 126,225
- -------------------------------------------------------------------------------
TECHNOLOGY (9.2%)
Avnet, Inc. ............................................. 4,800 302,100
*Compaq Computer Corp. .................................. 3,250 207,188
International Business Machines Corp. ................... 2,800 274,575
----------
783,863
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS (1.9%)
Lucent Technologies, Inc. ............................... 2,000 164,875
- -------------------------------------------------------------------------------
TRANSPORTATION (3.8%)
Southwest Airlines Co. .................................. 6,200 202,275
Union Pacific Corp. ..................................... 2,000 122,500
----------
324,775
- -------------------------------------------------------------------------------
UTILITIES (3.2%)
AT&T Corp. .............................................. 5,600 274,050
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $7,117,871)..................... 8,056,056
- -------------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT
- -------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT (5.5%)
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT
Chase Securities, Inc. 5.60%, dated 10/31/97, due
11/03/97, to be repurchased at $468,218, collateralized
by $448,706 of various U.S. Treasury Notes, 5.50%-8.75%,
due from 05/15/00-06/30/02, valued at $468,264
(COST $468,000)......................................... $468,000 468,000
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS (100.3%) (COST $7,585,871) (a).......... 8,524,056
- -------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (NET) (-0.3%)................ (25,484)
- -------------------------------------------------------------------------------
NET ASSETS (100%)......................................... $8,498,572
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
+ See Note A to Financial Statements.
* Non-Income Producing Security
(a) The cost for federal income tax purposes was $7,585,871. At October 31,
1997, net unrealized appreciation for all securities based on tax cost was
$938,185. This consisted of aggregate gross unrealized appreciation for
all securities of $1,170,363 and aggregate gross unrealized depreciation
for all securities of $232,178.

The accompanying notes are an integral part of the financial statements.

4
<PAGE>

TJ CORE EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1997 (Unaudited)

<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at Cost............................................... $7,585,871
==========
Investments, at Value.............................................. $8,524,056
Cash............................................................... 255
Receivable for Portfolio Shares Sold............................... 5,056
Receivable due from Investment Adviser--Note B..................... 6,732
Dividends Receivable............................................... 6,968
Other Assets....................................................... 253
- -------------------------------------------------------------------------------
Total Assets...................................................... 8,543,320
- -------------------------------------------------------------------------------
LIABILITIES
Payable for Investments Purchased.................................. 28,749
Payable for Distribution and Service Fees--Note E.................. 2,357
Payable for Portfolio Shares Redeemed.............................. 120
Payable for Trustees' Fees--Note G................................. 594
Other Liabilities.................................................. 12,928
- -------------------------------------------------------------------------------
Total Liabilities................................................. 44,748
- -------------------------------------------------------------------------------
NET ASSETS.......................................................... $8,498,572
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in Capital.................................................... $7,381,671
Undistributed Net Investment Income................................ 2,356
Accumulated Net Realized Gain...................................... 176,360
Unrealized Appreciation............................................ 938,185
- -------------------------------------------------------------------------------
NET ASSETS.......................................................... $8,498,572
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSTITUTIONAL SERVICE CLASS SHARES
Shares Issued and Outstanding (Unlimited authorization, no par val-
ue)............................................................... 567,841
Net Asset Value, Offering and Redemption Price Per Share........... $ 14.97
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

5
<PAGE>

TJ CORE EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
For the Six Months Ended October 31, 1997 (Unaudited)

<TABLE>
- ----------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends................................................... $ 49,884
Interest.................................................... 22,514
- ----------------------------------------------------------------------------------
Total Income............................................... 72,398
- ----------------------------------------------------------------------------------
EXPENSES
Investment Advisory Fees--Note B
Basic Fees................................................. $ 25,190
Less: Fees Waived.......................................... (25,190) --
--------
Administrative Fees--Note C................................. 30,135
Printing Fees............................................... 17,105
Distribution and Service Fees--Note E....................... 8,397
Audit Fees.................................................. 5,957
Registration and Filing Fees................................ 4,854
Account Services Fees--Note F............................... 3,546
Custodian Fees--Note D...................................... 1,189
Trustees' Fees--Note G...................................... 1,181
Other Expenses.............................................. 1,322
Expenses Assumed by the Adviser--Note B..................... (31,523)
- ----------------------------------------------------------------------------------
Total Expenses............................................. 42,163
Expense Offset--Note A...................................... --
- ----------------------------------------------------------------------------------
Net Expenses............................................... 42,163
- ----------------------------------------------------------------------------------
NET INVESTMENT INCOME........................................ 30,235
- ----------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS............................. 129,132
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION OF INVEST-
MENTS....................................................... 536,103
- ----------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS...................................... 665,235
- ----------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS......... $695,470
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

6
<PAGE>

TJ CORE EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
OCTOBER 31, ENDED
1997 APRIL 30,
(UNAUDITED) 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Income................................. $ 30,235 $ 20,486
Net Realized Gain..................................... 129,132 60,890
Net Change in Unrealized Appreciation/Depreciation.... 536,103 317,028
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations. 695,470 398,404
- --------------------------------------------------------------------------------
DISTRIBUTIONS:
Net Investment Income................................. (30,346) (18,293)
Net Realized Gain..................................... -- (16,792)
- --------------------------------------------------------------------------------
Total Distributions.................................. (30,346) (35,085)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (1)
Issued................................................ 5,898,240 1,596,878
In Lieu of Cash Distributions......................... 28,431 35,048
Redeemed.............................................. (981,581) (130,217)
- --------------------------------------------------------------------------------
Net Increase from Capital Share Transactions......... 4,945,090 1,501,709
- --------------------------------------------------------------------------------
Total Increase........................................ 5,610,214 1,865,028
Net Assets:
Beginning of Period................................... 2,888,358 1,023,330
- --------------------------------------------------------------------------------
End of Period (including undistributed net investment
income of $2,356 and $2,467, respectively)........... $8,498,572 $2,888,358
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(1)Shares Issued and Redeemed:
Shares Issued........................................ 410,163 136,745
In Lieu of Cash Distributions........................ 1,853 3,000
Shares Redeemed...................................... (65,467) (11,047)
- --------------------------------------------------------------------------------
346,549 128,698
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

7
<PAGE>

TJ CORE EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

<TABLE>
<CAPTION>
SIX MONTHS YEAR SEPTEMBER 28,
ENDED ENDED 1995* TO
OCTOBER 31, 1997 APRIL 30, APRIL 30,
(UNAUDITED) 1997 1996
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD. $ 13.05 $ 11.05 $ 10.00
- --------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income............... 0.05 0.12 0.06
Net Realized and Unrealized Gain on
Investments........................ 1.93 2.08 1.05
- --------------------------------------------------------------------------------
Total from Investment Operations... 1.98 2.20 1.11
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income............... (0.06) (0.11) (0.06)
Net Realized Gain................... -- (0.09) --
- --------------------------------------------------------------------------------
Total Distributions................ (0.06) (0.20) (0.06)
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD....... $ 14.97 $ 13.05 $ 11.05
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL RETURN+........................ 15.17%*** 20.14% 11.13%***
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL DATA
Net Assets, End of Period
(Thousands)........................ $ 8,499 $ 2,888 $ 1,023
Ratio of Expenses to Average Net
Assets............................. 1.25%** 1.26% 1.38%**
Ratio of Net Investment Income to
Average Net Assets................. 0.90%** 1.07% 1.06%**
Portfolio Turnover Rate............. 15% 27% 17%
Average Commission Rate............. $0.0600 $0.0600 $0.0600
- --------------------------------------------------------------------------------
Voluntarily Waived Fees and Expenses
Assumed by the Adviser Per Share.... $ 0.10 $ 0.60 $ 0.74
Ratio of Expenses to Average Net As-
sets Including Expense Offsets...... 1.25%** 1.25% 1.25%**
- --------------------------------------------------------------------------------
</TABLE>
* Commencement of Operations
** Annualized
*** Not Annualized
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser during the period.

The accompanying notes are an integral part of the financial statements.

8
<PAGE>

TJ CORE EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

UAM Funds Trust and UAM Funds, Inc. (collectively the "UAM Funds") are
registered under the Investment Company Act of 1940, as amended. The TJ Core
Equity Portfolio (the "Portfolio"), a portfolio of UAM Funds Trust, is a
diversified, open-end management investment company. At October 31, 1997, the
UAM Funds were comprised of forty-two active portfolios. The financial
statements of the remaining portfolios are presented separately. The objective
of the TJ Core Equity Portfolio is to provide maximum total return consistent
with reasonable risk to principal by investing in the common stock of quality
companies with lower valuations in sectors of the economy exhibiting strong,
or improving relative performance.

1. SECURITY VALUATION: Securities listed on a securities exchange for
which market quotations are readily available are valued at the last quoted
sales price as of the close of the exchange on the day the valuation is
made or, if no sale occurred on such day, at the bid price on such day.
Price information on listed securities is taken from the exchange where the
security is primarily traded. Over-the-counter and unlisted securities are
valued at the current bid price. 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 using methods determined by the Board of
Trustees.

9
<PAGE>

TJ CORE EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

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 differences
are primarily due to differing book and tax treatments in the timing of the
recognition of gains or losses on investments.

5. OTHER: Security transactions are accounted for on trade date, the date
the trade was executed. Costs used in determining realized gains and 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. Most expenses of the
UAM Funds can be directly attributed to a particular portfolio. Expenses
which cannot be directly attributed are apportioned among the portfolios of
the UAM Funds based on their relative net assets. Custodian fees for the
Portfolio have been increased to include expense offsets, if any, for
custodian balance credits.

B. ADVISORY SERVICES: Under the terms of an investment advisory agreement,
Tom Johnson Investment Management, Inc. (the "Adviser"), a wholly-owned
subsidiary of United Asset Management Corporation ("UAM"), provides investment
advisory services to the Portfolio at a monthly fee calculated at an annual
rate of 0.75% of average daily net assets for the month. Through January 1,
1999, 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 expense offset
arrangements, from exceeding 1.25% of average daily net assets.

D. CUSTODIAN: The Chase Manhattan Bank (the "Bank"), an affiliate of CGFSC,
is custodian for the Portfolio's assets held in accordance with the custodian
agreement.

10
<PAGE>

TJ CORE EQUITY PORTFOLIO

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)

E. DISTRIBUTION SERVICES: UAM Fund Distributors, Inc. (the "Distributor"), a
wholly-owned subsidiary of UAM, distributes the shares of the Portfolio. The
Porfolio has adopted Distribution and Service Plans (the "Plans") pursuant to
Rule 12b-1 under the Investment Company Act of 1940. Under the Plans, the
Portfolio may not incur distribution and service fees which exceed an annual
rate of 0.75% of the Portfolio's net assets, however, the Board has currently
limited aggregate payments under the Plans to 0.50% per annum of the
Portfolio's net assets. The Portfolio is not currently making payments for
distribution fees, however the Portfolio does pay service fees at an annual
rate of 0.25% of the average daily value of shares owned by clients of the
Service Agents.

F. ACCOUNT SERVICES: The UAM Funds entered into an Account Services
Agreement (the "Services Agreement") with UAM Retirement Plan Services, Inc.
("Service Provider"), a wholly-owned subsidiary of UAM. Under the Services
Agreement, the Service Provider agrees to perform certain services for
participants in a self-directed, defined contribution plan, and for whom the
Service Provider provides participant recordkeeping. Pursuant to the Services
Agreement, the Service Provider is entitled to receive, after the end of each
month, a fee at the annual rate of 0.15% of the average aggregate daily net
asset value of shares of the UAM Funds in the accounts for which they provide
services.

H. PURCHASES AND SALES: For the six months ended October 31, 1997, the
Portfolio made purchases of $5,470,659 and sales of $851,891 of investment
securities other than long-term U.S. Government and short-term securities.
There were no purchases 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
participate in a $100 million unsecured line of credit with several banks.
Borrowings will be made solely to temporarily finance the repurchase of
Capital shares. Interest is charged to each participating Portfolio based on
its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%.
In addition, a commitment fee of 0.08% per annum, payable at the end of each
calendar quarter is accrued by each participating Portfolio based on its
average daily unused portion of the line of credit. During the six months
ended October 31, 1997, the Portfolio had no borrowings under the agreement.

J. OTHER: At October 31, 1997, 62.5% of total shares outstanding were held
by 3 record shareholders owning more than 10% of the aggregate total shares
outstanding.