UAM FUNDS TRUST, N-30D, 1997-11-13

UAM FUNDS TRUST
N-30D, 1997-11-13

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UAM FUNDS
FPA CRESCENT PORTFOLIO

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OFFICERS AND DIRECTORS

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

William H. Park

Vice President
John T. Bennett, Jr.

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

Assistant Treasurer
Charles H. Salisbury, Jr.

Trustee and
Executive Vice Gordon M. Shone
President Assistant Treasurer

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INVESTMENT ADVISER
First Pacific Advisors, Inc.
11400 West Olympic Boulevard
Suite 1200
Los Angeles, CA 90064

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

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

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

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INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
Boston, MA 02110

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DISTRIBUTOR
UAM Fund Distributors, Inc.
211 Congress Street Boston, MA 02110

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This report has been prepared for shareholders and may be distributed to
others only if preceded or accompanied by a current prospectus.

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LOGO UAM Funds

FPA CRESCENT PORTFOLIO

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SEMI-ANNUAL REPORT
SEPTEMBER 30, 1997
<PAGE>

UAM FUNDS FPA CRESCENT PORTFOLIO
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TABLE OF CONTENTS

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<TABLE>
<S> <C>
Shareholder's Letter........................................................ 1
Portfolio of Investments.................................................... 5
Statement of Assets and Liabilities......................................... 11
Statement of Operations..................................................... 12
Statement of Changes in Net Assets.......................................... 13
Financial Highlights........................................................ 14
Notes to Financial Statements............................................... 15
</TABLE>

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<PAGE>

FPA CRESCENT PORTFOLIO

October 19, 1997

Dear Fellow Shareholders:

Happy Anniversary. Ten years ago today the stock market plunged more than 20%
in one day, "Black Monday," October 19, 1987. For many of us this is but a
distant memory. For others, it is something that impacted somebody else; after
all, ten years ago U.S. equity funds had investments of "only" $211.6 billion.
Today that number has increased nine-fold to $1.9 trillion. Although fund
performance has certainly aided this increase, new contributions account for
well over $1 trillion. How much of this "new" money has seen a market
correction? Even in 1987, the stock market ended the calendar year in the plus
column. We must look back to 1977 to see a double-digit market decline for a
full calendar year. We do not wish to ruin the party with such negativism
while the bartender is still pouring. We want the party to proceed while we
continue to invest in inexpensive companies, and we want and want and. . . .
The issue as we see it is that we like to buy on bad news and there just is
not much of that around these days. As a result, we continue to preach
conservatism.

Small-capitalization companies picked up steam in the third quarter. Small
caps had been undervalued compared to large caps, but in this single quarter
that gap substantively dissolved. The predominantly large-cap S&P 500 index
increased 7.6% during this period, while the small-cap Russell 2000 index
increased almost twice as much at 14.9%.

The comparative returns for Crescent and its relevant benchmark indices are
shown below.

<TABLE>
<CAPTION>
BALANCED
FPA BENCHMARK LEHMAN
CRESCENT FPA CRESCENT 60% RUSSELL 2500/ BROTHERS
TIME PERIOD INSTITUTIONAL INSTITUTIONAL 40%LB GOV'T/ RUSSELL S&P
(CALENDAR YEAR) CLASS SERVICE CLASS GOV'T/CORP CORPORATE 2500 500
- --------------- ------------- ------------- ----------------- --------- ------- -----
<S> <C> <C> <C> <C> <C> <C>
Period Ended 9/30/97
Year-To-Date.......... 22.2% 20.7% 18.9 % 6.4 % 27.2 % 29.7%
Third Quarter......... 9.2% 9.0% 10.0 % 3.5 % 14.4 % 7.6%
Annual
1996.................. 22.9% -- 12.6 % 2.9 % 19.0 % 23.3%
1995.................. 26.0% -- 26.7 % 19.2 % 31.7 % 37.5%
1994.................. 4.3% -- (2.0)% (3.5)% (1.1)% 1.3%
From Inception*......... 19.5% 20.7% 14.5 % 6.7 % 19.6 % 21.7%
</TABLE>

* Inception is 6/2/93. Returns from inception are annualized. The annualized
performance of the Russell 2500, Lehman Brothers Government/Corporate, and
S&P 500 indices begins 6/1/93. The data quoted represents past performance
and is not indicative of future performance. An investment in the Portfolio
may fluctuate so that an investor's shares when redeemed may be worth more
or less than their original cost. All returns assume the reinvestment of
dividends and distributions. The table presents the performance of the
Institutional Class shares which have been in existence since Cresent's
inception. The performance of the Institutional Service Class shares will
vary based upon the different inception date and 12B-1 fees assessed to that
class.

People do not seem to think that the market will go down, just as in 1974 they
did not think it would go up. At that time, they thought that we were in an
economic and stock market Armageddon--with high inflation, a recession, and
declining stock prices. In contrast, we currently live in a world of low
inflation, low economic

1
<PAGE>

growth, and rapidly rising stock prices. We belong to the Equity Sect of
Buddhism and this is our Nirvana. We do not believe that business and economic
cycles have been abolished. We do know that we will continue to be here, as an
anchor in future choppy seas.

Our economy has experienced tremendous productivity improvements which have
allowed corporate margins to expand, and thus, more sales dollars to fall to
the bottom line. This has aided in keeping inflation at historically low
levels. We do, however, run the risk, as Morgan Stanley economist Stephen
Roach said, "that investors (due to productivity improvements) are initially
rewarded beyond their wildest dreams, but those rewards could eventually be
wiped out by the powerful reflex reaction of a worker." The recently resolved
United Parcel Service strike might be an early warning signal. Currently the
United States stands at full employment. According to Federal Reserve Chairman
Alan Greenspan, if the economy continues its growth path, that there will not
be "wage pressures . . . strains credibility. The law of supply and demand has
not been repealed."

We are not willing to assume risk for risk's sake. It is important to balance
the desire for excellent returns with the need to preserve principal. This is
a delicate balance. Proper investing requires seeking the upside, but not
forgetting about the downside. We have seen mistakes in both directions, i.e.,
investors so concerned about making a ton of money that they do not consider
the downside. Other investors have such fear of losing money that they forget
about the upside. Either way, mediocre returns will be the result. We view the
trade-off simplistically. We would not jump six feet from the roof of one 50-
story building to another (without our lives being threatened, that is). We
would, however, consider jumping from building to building at the first floor
level if there was a pot of gold on the other side and grass below. That would
be an intelligent risk. That is what we try to do and here are a couple of
examples.

During the quarter, we purchased a position in AMERCO. You probably are more
familiar with their largest subsidiary, U-Haul. AMERCO is the largest factor
in the "do-it-yourself," one-way and local moving business. With their fleet
of 89,000 trucks, they dominated their nearest competitor, who has a little
more than a third as many trucks. AMERCO is also our nation's second largest
manager of mini-storage facilities with 19.8 million square feet. Other assets
include a property and casualty insurance company, a life insurance company,
and a tremendous amount of net operating loss carryforwards (NOLs) that can
shelter future earning. The value of these assets, if sold in the private
market, would probably fetch something between $50 and $70 per share, and we
acquired our position at $27, a 55% discount from the mid-point of that range.
Furthermore, the company has the potential to earn $3.50 per share over the
next couple of years, a 7.7x price/earnings multiple. Finally, it trades near
book value. The management of this family-owned company has been pre-occupied
the past six years with in-fighting amongst family members, resulting in a
loss of focus and deteriorating profitability. In the past twelve months,
resolutions have finally been reached that currently allow the company to
refocus on its business. Our conclusion is that there is not much downside
with a lot of potential for upside.

Although, in recent years, investors appear to have come to believe that
stocks are safer than bonds, we continue to find excellent opportunities in
the fixed income arena. We reviewed the rationale for our investment in the
Charming Shoppes convertible bonds in our letter dated September 30, 1996. We
originally purchased the bonds at $100 (par) in July of 1996. We have
collected our 7.5% coupon while we have been waiting for their business to
improve and for the stock to appreciate. The turn has taken longer in coming
than originally thought and the stock has declined 16% from the level where it
had been trading when we purchased the bonds. Meanwhile, as of this writing,
the bonds are trading at $101, a 10.4% total return from our initial purchase
and 27 percentage points better performance when compared to the common stock.
Even though the stock has not performed as well as our original expectations,
we have still achieved an adequate return. We did analyze the risk and reward

2
<PAGE>

correctly and determined that the bonds were a better value. Furthermore, we
believe that the potential reward is still there and that we will capture 50%
of the upside of the stock from current levels. Therefore if the stock trades
at $10 per share in the next two years, these bonds should trade near $135.
Meanwhile, the credit risk remains minimal, we collect coupon interest and own
a bond in a company that has stockpiled enough cash to offset two thirds of
the debt on its balance sheet.

Crescent's portfolio characteristics reveal that we hold securities that are,
on average, much less expensive than the stock market.

<TABLE>
<CAPTION>
RATIOS LEHMAN BROS.
(WEIGHTED AVERAGE) CRESCENT RUSSELL 2500 S&P 500 GOV'T/CORP.
- ------------------ --------- ------------ ------- ------------
<S> <C> <C> <C> <C>
Stocks
Price/Earnings 1997 est. ........... 16.5x 21.8x 21.9x
Price/Earnings 1998 est. ........... 15.0x 19.0x 19.1x
Price/Book.......................... 2.4x 3.0x 4.0x
Dividend Yield...................... 1.1% 1.3% 1.6%
Bonds
Duration............................ 4.4 years 5.2 years
Maturity............................ 6.6 years 9.8 years
Yield............................... 8.2% 6.3%
</TABLE>

The median market capitalization of companies held by Crescent is $367
million. Listed below are Crescent's ten largest holdings, excluding short-
term investments, as of September 30, 1997. These investments account for
32.9% of the portfolio's net assets, an increase of 4.6 percentage points
since June 30. We view this positively in that we prefer to have a greater
concentration in our favorite investments. In the future, we would hope to see
this percentage increase even further.

COMMON STOCK
NCR Corporation3.8%
AMERCO3.8%
Storage Technology Corporation3.8%
Foremost Corporation of America3.5%
National R.V. Holdings, Inc.3.1%
Price Enterprises, Inc.2.7%
Reebok International Ltd.2.5%
Michaels Stores, Inc.2.5%

BONDS & NOTES
U.S. Treasury Inflation-Indexed Notes, 3.375%, 1/15/074.7%
Flagstar Corp. 10.875%, 12/01/02 Senior Notes2.5%

3
<PAGE>

Crescent had the following net asset composition at September 30, 1997:

<TABLE>
<S> <C>
Common Stocks, Long..................................................... 53.8 %
Common Stocks, Short.................................................... (2.8)%
Preferred Stocks........................................................ 4.5 %
Bonds & Notes........................................................... 23.7 %
Cash & Equivalents...................................................... 20.8 %
-------
Total................................................................. 100.0 %
=======
</TABLE>

The stock market continues its upward ascent. The perception that interest
rates will remain low allows for a sustainable level of valuation that is high
by historic standards. A rise in interest rates or a decline in corporate
earnings would certainly cause a stock market decline. I am not forecasting a
level of inflation that would drive interest rates higher, nor do I see a
recession on the horizon that would cause earnings to decline; however, we
have had neither in so many years that we will eventually get one or the
other. As the bumper sticker says, "Change is inevitable, except from a
vending machine." We will continue to invest, regardless of the outlook for
inflation or corporate earnings, as long as we continue to find opportunities
where we are "paid to play."

Respectfully,

LOGO

Steven Romick
Portfolio Manager,
FPA Crescent Portfolio

4
<PAGE>

FPA CRESCENT PORTFOLIO
PORTFOLIO OF INVESTMENTS
September 30, 1997 (Unaudited)

The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS (53.8%)
- -------------------------------------------------------------------------------
BANKS (1.4%)
*HF Bancorp, Inc......................................... 87,500 $ 1,443,750
Santa Barbara Bancorp.................................... 12,000 579,000
-----------
2,022,750
- -------------------------------------------------------------------------------
BEVERAGES, FOOD & TOBACCO (1.0%)
RJR Nabisco Holdings Corp................................ 42,000 1,443,750
- -------------------------------------------------------------------------------
BROADCASTING & PUBLISHING (1.4%)
Central Newspapers, Inc., Class A........................ 10,000 742,500
*Devon Group, Inc........................................ 22,000 902,000
News Corporation, Ltd., Spons. ADR, Pref. Ltd. Vtg. Ord.
Shares.................................................. 25,000 448,438
-----------
2,092,938
- -------------------------------------------------------------------------------
CHEMICALS (0.3%)
*Scotts Company, The..................................... 15,000 393,750
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CONSUMER DURABLES (0.5%)
Semi-Tech (Global) Ltd., Spons. ADR...................... 102,250 743,235
- -------------------------------------------------------------------------------
CONSUMER STAPLES (1.0%)
*Day Runner, Inc......................................... 15,000 577,500
*Guest Supply, Inc....................................... 59,100 916,050
-----------
1,493,550
- -------------------------------------------------------------------------------
FINANCIAL SERVICES (2.9%)
American Express Company................................. 5,000 409,375
*Dundee Bancorp Inc., Class A............................ 25,000 735,454
Green Tree Financial Corporation......................... 40,000 1,880,000
Ocean Financial Corp..................................... 16,000 568,000
Phoenix Duff & Phelps Corporation........................ 75,300 583,575
-----------
4,176,404
- -------------------------------------------------------------------------------
HEALTH CARE (0.6%)
*Medical Resources, Inc.................................. 45,000 871,875
- -------------------------------------------------------------------------------
INSURANCE (4.7%)
Centris Group, Inc., The................................. 80,000 1,695,000
Foremost Corporation of America.......................... 87,500 5,162,500
-----------
6,857,500
- -------------------------------------------------------------------------------
</TABLE>

5
<PAGE>

FPA CRESCENT PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
September 30, 1997 (Unaudited)

The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- --------------------------------------------------------------------------------
LODGING & RESTAURANTS (1.8%)
*IHOP Corp................................................ 75,000 $ 2,681,249
- --------------------------------------------------------------------------------
MANUFACTURING (6.0%)
Coachmen Industries, Inc.................................. 138,000 2,622,000
*Littelfuse, Inc.......................................... 17,000 592,875
*National R.V. Holdings, Inc.............................. 211,000 4,483,750
*Recoton Corporation...................................... 70,000 997,500
-----------
8,696,125
- --------------------------------------------------------------------------------
MULTI-INDUSTRY (3.8%)
*AMERCO................................................... 183,000 5,581,500
- --------------------------------------------------------------------------------
REAL ESTATE (5.3%)
Crown American Realty Trust............................... 325,000 3,148,437
Price Enterprises, Inc.................................... 203,000 3,895,063
Prime Retail, Inc. REIT................................... 50,000 781,250
-----------
7,824,750
- --------------------------------------------------------------------------------
RETAIL (9.5%)
*Good Guys, Inc., The..................................... 217,100 1,601,113
*Homebase, Inc............................................ 118,700 1,068,300
++Limited, Inc., The...................................... 76,000 1,857,250
*Mac Frugal's Bargains-Close-outs Inc..................... 60,000 1,830,000
*Maxim Group, Inc., The................................... 45,000 731,250
++@*Michaels Stores, Inc.................................. 117,200 3,581,925
*Payless ShoeSource, Inc.................................. 37,000 2,208,438
*PriceSmart, Inc.......................................... 50,750 926,187
-----------
13,804,463
- --------------------------------------------------------------------------------
SERVICES (1.8%)
*Pinkerton's, Inc......................................... 112,000 2,576,000
- --------------------------------------------------------------------------------
TECHNOLOGY (9.3%)
*Arrow Electronics, Inc................................... 43,000 2,494,000
*NCR Corporation.......................................... 160,000 5,590,000
*Storage Technology Corporation........................... 116,000 5,546,250
-----------
13,630,250
- --------------------------------------------------------------------------------
</TABLE>

6
<PAGE>

FPA CRESCENT PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
September 30, 1997 (Unaudited)

The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--(CONTINUED)
- -------------------------------------------------------------------------------
TEXTILES & APPAREL (2.5%)
*Reebok International Ltd............................. 75,500 $ 3,675,906
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS (COST $61,250,425).................. 78,565,995
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PREFERRED STOCKS (4.5%)
- -------------------------------------------------------------------------------
BEVERAGES, FOOD & TOBACCO (0.1%)
RJR Nabisco Holdings Corp., 10.00%, 12/31/44, Series
T.................................................... 6,450 164,072
- -------------------------------------------------------------------------------
ENTERTAINMENT & LEISURE TIME (0.4%)
AMC Entertainment, Inc., $1.75, 12/31/49 Cv........... 19,000 640,062
- -------------------------------------------------------------------------------
FINANCIAL SERVICES (2.7%)
Crown American Realty Trust 11.00%, 7/31/07, Series A. 56,600 3,028,100
GPA Group plc 10.00% Cv. ............................. 5,763 579,182
Phoenix Duff & Phelps Corporation, $1.50, 11/1/15, Se-
ries A Cv............................................ 9,730 266,359
-----------
3,873,641
- -------------------------------------------------------------------------------
REAL ESTATE (1.3%)
Prime Retail Inc., 8.50%, 3/31/99 Series B Cv. REIT... 24,300 589,275
Walden Residential Properties, Inc., 9.20%, 12/31/06.. 50,000 1,292,187
-----------
1,881,462
- -------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS (COST $6,247,675)................ 6,559,237
- -------------------------------------------------------------------------------
<CAPTION>
FACE
AMOUNT
- -------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS (19.0%)
- -------------------------------------------------------------------------------
BROADCASTING & PUBLISHING (0.9%)
Busse Broadcasting Corp., 11.625%, 10/15/00........... $ 427,000 457,958
Continental Cablevision, Inc., 11.00%, 6/1/07......... 800,000 897,593
-----------
1,355,551
- -------------------------------------------------------------------------------
CONSUMER STAPLES (0.1%)
Playtex Family Products Corp., 9.00%, 12/15/03........ 150,000 153,000
- -------------------------------------------------------------------------------
CONSUMER DURABLES (0.9%)
#International Semi-Tech Microelectrics, Inc., 0.00%,
8/15/03.............................................. 2,000,000 1,280,000
- -------------------------------------------------------------------------------
ENTERTAINMENT & LEISURE TIME (1.8%)
Trump Atlantic City Associates, 11.25%, 5/1/06........ 2,700,000 2,629,125
- -------------------------------------------------------------------------------
</TABLE>

7
<PAGE>

FPA CRESCENT PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
September 30, 1997 (Unaudited)

The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS--(CONTINUED)
- -------------------------------------------------------------------------------
FINANCIAL SERVICES (0.9%)
GPA Delaware, Inc., 8.75%, 12/15/98.................... $ 300,000 $ 306,000
Local Financial Corp., 11.00%, 9/8/04.................. 1,000,000 1,047,500
----------
1,353,500
- -------------------------------------------------------------------------------
HEALTH CARE (0.6%)
NovaCare, Inc., 5.50%, 1/15/00 Cv...................... 900,000 862,875
- -------------------------------------------------------------------------------
INDUSTRIAL (3.9%)
Flagstar Corp. Senior Notes, 10.875%, 12/1/02.......... 3,500,000 3,622,500
Flagstar Corp. Senior Notes, 10.75%, 9/15/01........... 600,000 618,750
Homestake Mining Company, 5.50%, 6/23/00 Cv............ 1,500,000 1,462,500
----------
5,703,750
- -------------------------------------------------------------------------------
MANUFACTURING (0.1%)
Triangle Pacific Corp., 10.50%, 8/1/03................. 140,000 150,500
- -------------------------------------------------------------------------------
REAL ESTATE (2.6%)
Alexander Haagen Properties, Inc., Series A, 7.50%,
1/15/01 Cv............................................ 975,000 975,000
Alexander Haagen Properties, Inc., Series B, 7.50%,
1/15/01 Cv............................................ 2,375,000 2,375,000
Rockefeller Center Properties, Inc., 0.00%, 12/31/00... 700,000 493,500
----------
3,843,500
- -------------------------------------------------------------------------------
RETAIL (4.1%)
Charming Shoppes, Inc., 7.50%, 7/15/06 Cv.............. 2,900,000 3,132,000
Genesco Inc., 10.375%, 2/1/03.......................... 350,000 364,438
Michaels Stores, Inc., 10.875%, 6/15/06................ 900,000 999,000
Sports Authority, Inc., The 5.25%, 9/15/01 Cv.......... 1,525,000 1,412,531
----------
5,907,969
- -------------------------------------------------------------------------------
SERVICES (0.7%)
EMCOR Group, Inc., Series C, 11.00%, 12/15/01.......... 223,900 236,214
Fleming Companies, Inc., 10.625%, 12/15/01............. 750,000 802,500
----------
1,038,714
- -------------------------------------------------------------------------------
TECHNOLOGY (1.0%)
Reptron Electronics, Inc., 6.75%, 8/1/04 Cv............ 1,500,000 1,445,625
- -------------------------------------------------------------------------------
</TABLE>

8
<PAGE>

FPA CRESCENT PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
September 30, 1997 (Unaudited)

The accompanying notes are an integral part of the financial statements.
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- -----------------------------------------------------
<S> <C> <C>
CORPORATE BONDS--(CONTIN-
UED)
- -----------------------------------------------------
TELECOMMUNICATIONS (1.4%)
Mobile Telecommunication
Technologies Corp.,
13.50%, 12/15/02........ $1,750,000 $ 1,999,375
- -----------------------------------------------------
TOTAL CORPORATE BONDS (COST
$26,659,295)................ 27,723,484
- -----------------------------------------------------
- -----------------------------------------------------
U.S. TREASURY OBLIGATION
(4.7%)
- -----------------------------------------------------
**U.S. Treasury
Inflation-Indexed Notes,
3.375%, 1/15/07
(Cost $6,959,940)......... 7,000,000 6,868,750
- -----------------------------------------------------
- -----------------------------------------------------
SHORT TERM INVESTMENTS
(18.8%)
- -----------------------------------------------------
COMMERCIAL PAPER
CIT Group Holdings, Inc.,
5.47%, 10/6/97.......... 5,000,000 4,996,201
Coca Cola Company, The,
5.43%, 10/6/97.......... 5,000,000 4,996,230
General Mills, Inc.,
5.47%, 10/24/97......... 5,000,000 4,982,526
Kimberly-Clark Corpora-
tion, 5.48%, 10/6/97.... 4,000,000 3,996,956
------------
18,971,913
- -----------------------------------------------------
REPURCHASE AGREEMENT
Chase Securities, Inc.,
5.85%, dated 9/30/97,
due 10/01/97, to be re-
purchased at $8,492,380,
collateralized by
$8,223,000 of various
U.S. Treasury Notes
5.625%-7.875%, due
2/28/01-3/31/02, valued
at $8,491,148........... 8,491,000 8,491,000
- -----------------------------------------------------
TOTAL SHORT TERM INVEST-
MENTS (18.8%) (COST
$27,462,913).............. 27,462,913
- -----------------------------------------------------
TOTAL INVESTMENTS (100.8%)
(COST $128,580,248)....... 147,180,379
- -----------------------------------------------------
OTHER ASSETS AND LIABILI-
TIES (NET) (-0.8%)........ (1,177,950)
- -----------------------------------------------------
NET ASSETS (100%).......... $146,002,429
- -----------------------------------------------------
- -----------------------------------------------------
<CAPTION>
NO. OF
CONTRACTS
- -----------------------------------------------------
<S> <C> <C>
WRITTEN CALL OPTIONS
Michaels Stores, Inc.,
expiring 12/20/97,
Strike Price $30........ 50 $ 17,813
Michaels Stores, Inc.,
expiring 12/20/97,
Strike Price $25........ 300 202,500
Michaels Stores, Inc.,
expiring 3/21/98, Strike
Price $30............... 50 25,000
------------
(Premiums Received
$128,161).............. $ 245,313
- -----------------------------------------------------
- -----------------------------------------------------
</TABLE>

9
<PAGE>

FPA CRESCENT PORTFOLIO
PORTFOLIO OF INVESTMENTS--(CONTINUED)
September 30, 1997 (Unaudited)

10
<PAGE>

FPA CRESCENT PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1997 (Unaudited)

The accompanying notes are an integral part of the financial statements.
<TABLE>
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at Cost............................................. $128,580,248
============
Investments, at Value (Including Repurchase Agreements of
$8,491,000) (Note A)............................................ $147,180,379
Cash............................................................. 154,388
Receivable for Securities Sold Short (Note A).................... 3,588,703
Receivable for Portfolio Shares Sold............................. 861,657
Deposits with Brokers for Securities Sold Short (Note A)......... 1,531,821
Dividends and Interest Receivable................................ 720,763
Other Assets..................................................... 51,726
- -------------------------------------------------------------------------------
Total Assets.................................................... 154,089,437
- -------------------------------------------------------------------------------
LIABILITIES
Securities Sold Short, at Value (Proceeds $3,588,702) (Note A)... 4,160,981
Payable for Investments Purchased................................ 3,444,451
Payable for Portfolio Shares Redeemed............................ 68,886
Payable for Investment Advisory Fees (Note B).................... 100,309
Payable for Administrative Fees (Note C)......................... 12,792
Payable for Custodian Fees (Note D).............................. 15,168
Payable for Trustees' Fees (Note G).............................. 713
Written Call Options at Value (Premium Received $128,161) (Note
A).............................................................. 245,313
Dividend Payable on Securities Sold Short (Note A)............... 15,064
Payable for Distribution and Service Fees (Note E)............... 7,939
Other Liabilities................................................ 15,392
- -------------------------------------------------------------------------------
Total Liabilities............................................... 8,087,008
- -------------------------------------------------------------------------------
NET ASSETS........................................................ $146,002,429
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in Capital.................................................. $125,128,617
Undistributed Net Investment Income.............................. 1,563,112
Accumulated Net Realized Gain.................................... 1,400,000
Unrealized Appreciation.......................................... 17,910,700
- -------------------------------------------------------------------------------
NET ASSETS........................................................ $146,002,429
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
Net Assets....................................................... $131,204,817
Net Asset Value, Offering and Redemption Price Per Share
8,325,228 shares outstanding (unlimited authorization, no par
value).......................................................... $ 15.76
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSTITUTIONAL SERVICE CLASS SHARES
Net Assets....................................................... $ 14,797,612
Net Asset Value, Offering and Redemption Price Per Share 942,485
shares outstanding (unlimited authorization, no par value)...... $ 15.70
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>

11
<PAGE>

FPA CRESCENT PORTFOLIO
STATEMENT OF OPERATIONS
For the Six Months Ended September 30, 1997 (Unaudited)

The accompanying notes are an integral part of the financial statements.
<TABLE>
- ---------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest........................................................... $ 1,768,353
Dividends.......................................................... 502,561
- ---------------------------------------------------------------------------------
Total Income...................................................... 2,270,914
- ---------------------------------------------------------------------------------
EXPENSES
Advisory Fees (Note B)............................................. 495,708
Administration Fees (Note C)....................................... 74,155
Custodian Fees (Note D)............................................ 10,168
Trustees' Fees (Note G)............................................ 7,064
Registration and Filing Fees....................................... 24,467
Auditing Fees...................................................... 7,006
Legal Fees......................................................... 14,426
Reports to Shareholders............................................ 17,482
Short Sale Dividend Expense (Note A)............................... 27,580
Distribution and Service Fees (Note E)............................. 8,091
Account Services Fees (Note F)..................................... 914
Miscellaneous...................................................... 19,456
- ---------------------------------------------------------------------------------
Net Expenses...................................................... 706,517
- ---------------------------------------------------------------------------------
NET INVESTMENT INCOME............................................... 1,564,397
- ---------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON:
Investments........................................................ 1,315,407
Securities Sold Short.............................................. 112,731
Written Options.................................................... (27,523)
- ---------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS, SECURITIES SOLD SHORT AND WRITTEN
OPTIONS............................................................ 1,400,615
- ---------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON:
Investments........................................................ 13,986,487
Securities Sold Short.............................................. (467,515)
Written Options.................................................... (131,341)
- ---------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION.................. 13,387,631
- ---------------------------------------------------------------------------------
NET GAIN ON INVESTMENTS, SECURITIES SOLD SHORT AND WRITTEN OPTIONS.. 14,788,246
- ---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $16,352,643
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>

12
<PAGE>

FPA CRESCENT PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS

The accompanying notes are an integral part of the financial statements.
<TABLE>
- ----------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, YEAR ENDED
1997 MARCH 31,
(UNAUDITED) 1997
- ----------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net Investment Income............................. $ 1,564,397 $ 852,987
Net Realized Gain................................. 1,400,615 2,104,855
Net Change in Appreciation/Depreciation........... 13,387,631 2,190,347
- ----------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Opera-
tions........................................... 16,352,643 5,148,189
- ----------------------------------------------------------------------------------
DISTRIBUTIONS:
NET INVESTMENT INCOME:
Institutional Class............................... (338,423) (676,369)
Institutional Service Class....................... (2,044) --
NET REALIZED GAIN:
Institutional Class............................... (401,652) (2,597,975)
Institutional Service Class....................... (2,484) --
- ----------------------------------------------------------------------------------
Total Distributions.............................. (744,603) (3,274,344)
- ----------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (A)
INSTITUTIONAL CLASS:
Issued............................................ 58,033,056 40,848,380
--In Lieu of Cash Distributions................. 659,391 3,165,120
Redeemed.......................................... (7,754,060) (2,293,356)
- ----------------------------------------------------------------------------------
Net Increase from Institutional Class Shares..... 50,938,387 41,720,144
- ----------------------------------------------------------------------------------
INSTITUTIONAL SERVICE CLASS:
Issued............................................ 14,282,634 31,597
--In Lieu of Cash Distributions ................ 4,504 --
Redeemed.......................................... (481,450) --
- ----------------------------------------------------------------------------------
Net Increase from Institutional Service Class
Shares.......................................... 13,805,688 31,597
- ----------------------------------------------------------------------------------
Net Increase from Capital Share Transactions..... 64,744,075 41,751,741
- ----------------------------------------------------------------------------------
Total Increase.................................... 80,352,115 43,625,586
NET ASSETS:
Beginning of Period............................... 65,650,314 22,024,728
- ----------------------------------------------------------------------------------
End of Period (including undistributed net
investment income of $1,563,112 and $339,182,
respectively).................................... $146,002,429 $65,650,314
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
(A) SHARES ISSUED AND REDEEMED:
INSTITUTIONAL CLASS
Shares Issued..................................... 3,933,020 3,063,181
In Lieu of Cash Distributions..................... 46,737 247,300
Shares Redeemed................................... (529,348) (174,536)
- ----------------------------------------------------------------------------------
Net Increase from Institutional Class Shares..... 3,450,409 3,135,945
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
INSTITUTIONAL SERVICE CLASS
Shares Issued..................................... 972,079 2,349
In Lieu of Cash Distributions..................... 322 --
Shares Redeemed................................... (32,265) --
- ----------------------------------------------------------------------------------
Net Increase from Institutional Service Class
Shares.......................................... 940,136 2,349
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
</TABLE>

13
<PAGE>

FPA CRESCENT 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 ENDED
SEPTEMBER 30, YEARS ENDED MARCH 31, JUNE 2, 1993+ SEPTEMBER 30, JANUARY 24, 1997+
1997 ------------------------- TO 1997 TO
(UNAUDITED) 1997 1996 1995 MARCH 31, 1994 (UNAUDITED) MARCH 31, 1997
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 13.46 $ 12.67 $ 11.23 $ 10.96 $ 10.00 $ 13.43 $ 13.12
- ------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income.. 0.16 0.31 0.40 0.21 0.13 0.16 0.03
Net Realized and
Unrealized Gain on
Investments........... 2.27 2.16 2.29 0.77 0.99 2.24 0.28
- ------------------------------------------------------------------------------------------------------------------
Total from Investment
Operations............ 2.43 2.47 2.69 0.98 1.12 2.40 0.31
- ------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income.. (0.06) (0.34) (0.37) (0.18) (0.10) (0.06) --
Net Realized Gain...... (0.07) (1.34) (0.88) (0.53) (0.06) (0.07) --
- ------------------------------------------------------------------------------------------------------------------
Total Distributions.... (0.13) (1.68) (1.25) (0.71) (0.16) (0.13) --
- ------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD................. $ 15.76 $ 13.46 $ 12.67 $ 11.23 $ 10.96 $ 15.70 $ 13.43
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN............ 18.13%** 20.61% 24.71% 9.35% 11.40%** 17.95%** 2.36%**
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL
DATA
Net Assets, End of
Period (Thousands)..... $131,205 $65,619 $22,025 $15,990 $10,174 $14,797 $ 32
Ratio of Expenses to
Average Net Assets:
Before Expense
Reimbursement......... 1.35%* 1.60% 1.59% 1.65% 1.86%* 1.60%* 1.85%*
After Expense
Reimbursement......... 1.35%* 1.57% 1.59% 1.65% 1.85%* 1.60%* 1.85%*
Ratio of Net Investment
Income to Average Net
Assets:
Before Expense
Reimbursement......... 3.18%* 2.77% 3.35% 2.16% 1.60%* 2.93%* 2.56%*
After Expense
Reimbursement......... 3.18%* 2.80% 3.35% 2.16% 1.61%* 2.93%* 2.56%*
Portfolio Turnover Rate. 9%** 45% 100% 101% 89%** 9%** 45%
Average Commission Rate
Paid#.................. $ 0.0559 $0.0521 N/A N/A N/A $0.0559 $0.0521
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Not Annualized.
+ Commencement of Operations.
# For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for security
trades on which commissions are charged.

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

14
<PAGE>

FPA CRESCENT 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 FPA
Crescent Portfolio (the "Portfolio"), a portfolio of UAM Funds Trust, is a
diversified, open-end management investment company. At September 30, 1997,
the UAM Funds were composed of 41 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 ("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 Portfolio is to provide a total return
consistent with reasonable investment risk through a combination of income and
capital appreciation by investing in a combination of equity securities and
fixed income obligations.

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: Equity securities listed on a securities exchange
for which market quotations are readily available are valued at the last
quoted sale price of the day. Price information on listed securities is
taken from the exchange where the security is primarily traded. Unlisted
equity securities and listed securities not traded on the valuation date
for which market quotations are readily available are valued neither
exceeding the current asked prices nor less than the current bid prices.
Quotations of foreign securities 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.

Bonds and other fixed income securities are valued according to the
broadest and most representative market, which will ordinarily be the over-
the-counter market. Bonds and other fixed income securities may be valued
on the basis of prices provided by a pricing service when such prices are
believed to reflect the fair market value of such securities. Securities
purchased with remaining maturities of 60 days or less 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 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.

The cost for federal income tax purposes was $128,580,248. At September 30,
1997, net unrealized appreciation for all securities based on tax cost was
$18,600,131. This consisted of aggregate gross unrealized appreciation for
all securities of $19,089,684 and aggregate gross unrealized depreciation
for all securities of $489,553.

15
<PAGE>

FPA CRESCENT PORTFOLIO

NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
3. DISTRIBUTIONS TO SHAREHOLDERS: The Portfolio will normally distribute
substantially all of its net investment income in June and December. 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.

Current year 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. 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.

5. SHORT SALES: The Portfolio may engage in short sales of securities. In a
short sale, the Portfolio sells stock which it does not own, making
delivery with securities "borrowed" from a broker. The Portfolio is then
obligated to replace the security borrowed by purchasing it at the market
price at the time of replacement. This price may or may not be less than
the price at which the security was sold by the Portfolio. Until the
security is replaced, the Portfolio is required to pay the lender any
dividends or interest which accrue during the period of the loan. In order
to borrow the security, the Portfolio may also have to pay fees which would
increase the cost of the security sold. The proceeds of the short sale will
be retained by the broker, to the extent necessary to meet margin
requirements, until the short position is closed out.

The Portfolio also must deposit in a segregated account an amount of cash
or liquid assets equal to the difference between (a) the market value of
the securities short at the time they were sold short and (b) the value of
the collateral deposited with the broker in connection with the short sale
(not including the proceeds from the short sale). While the short position
is open, the Portfolio must maintain daily the segregated account at such a
level that (1) the amount deposited in it plus the amount deposited with
the broker as collateral equals the current market value of the securities
sold short and (2) the amount deposited in it plus the amount deposited
with the broker as collateral is not less than the market value of the
securities at the time they were sold short.

16
<PAGE>

FPA CRESCENT PORTFOLIO

NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
The Portfolio will incur a loss as a result of the short sale if the price
of the security increases between the date of the short sale and date on
which the Portfolio replaces the borrowed security. The Portfolio will
realize a gain if the security declines in price between those dates. The
amount of any gain will be decreased and the amount of any loss will be
increased by any fees the Portfolio may be required to pay in connection
with the short sale.

6. OPTIONS AND FUTURES CONTRACTS: The Portfolio may use futures and options
contracts to hedge against changes in the values of securities the
Portfolio owns or expects to purchase. The Portfolio may also write covered
options on securities it owns or in which it may invest to increase its
current returns.

The potential risk to the Portfolio is that the change in value of futures
and options contracts may not correspond to the change in value of the
hedged instruments. In addition, losses may arise from changes in the value
of the underlying instruments, if there is an illiquid secondary market for
the contracts, or if the counterparty to the contract is unable to perform.

Futures contracts are valued at the quoted daily settlement prices
established by the exchange on which they trade. Exchange traded options
are valued at the last sale price, or if no sales are reported, the last
bid price for purchased options and the last ask price for written options.

During the six months ended September 30, 1997, the Portfolio participated
in writing covered call options. The Portfolio had option activity as
follows:

<TABLE>
<CAPTION>
NO. OF PREMIUMS
CONTRACTS (000)
--------- --------
<S> <C> <C>
Options outstanding at March 31, 1997.................... 20 $ 18,439
Options written during the period........................ 700 193,856
Options closed during the period......................... (320) (84,134)
---- --------
Options outstanding at September 30, 1997................ 400 $128,161
==== ========
</TABLE>

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.
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. Additionally, certain expenses 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.

17
<PAGE>

FPA CRESCENT PORTFOLIO

NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
B. ADVISORY SERVICES: Under the terms of an investment advisory agreement,
First Pacific Advisors, Inc. (the "Adviser"), an indirect 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 1.00% of average daily net assets. The Adviser has voluntarily agreed
to waive a portion of its advisory fees and to assume expenses if necessary,
in order to keep the Portfolio's total annual operating expenses from
exceeding 1.85% and 2.10% of average daily net assets of the Portfolio's
Institutional Class Shares and 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 Portfolio
under a Fund Administration Agreement (the "Agreement") with the UAM Funds.
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 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 September 30,
1997, UAM Fund Services, Inc. earned $74,155 from the Portfolio as
Administrator of which $48,964 was paid to CGFSC for their services as sub-
Administrator.

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.

The Portfolio has adopted a Distribution and Service Plan (the "Plan") on
behalf of the Service Class Shares pursuant to Rule 12b-1 under the Investment
Company Act of 1940. Under the Plan, the 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
Plan 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.

In addition, the Portfolio pays service fees at an annual rate of 0.25% of the
average daily value of Service Class Shares owned by clients of such Service
Organizations.

18
<PAGE>

FPA CRESCENT PORTFOLIO

NOTES TO FINANCIAL STATEMENTS--(CONTINUED)

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 Board meetings.

H. 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 1/8th of 1% 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 September 30, 1997, the Portfolio had no borrowings under the agreement.

I. PURCHASES AND SALES: For the six months ended September 30, 1997, the
Portfolio made purchases of approximately $63,725,894 and sales of
approximately $6,502,005 of investment securities other than long-term U.S.
Government and short-term securities.

J. OTHER: At September 30, 1997, 45% of total shares outstanding were held by
1 record shareholder owning more than 10% of the aggregate total shares
outstanding of the Institutional Class Shares.