<PAGE>
UAM Funds
Funds for the Informed Investor/sm/
Pell Rudman
Mid-Cap Growth Portfolio
Annual Report April 30, 2000
UAM(R)
<PAGE>
UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
TABLE OF CONTENTS
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Shareholders' Letter....................................................... 1
Portfolio of Investments................................................... 5
Statement of Assets and Liabilities........................................ 10
Statement of Operations.................................................... 11
Statement of Changes in Net Assets......................................... 12
Financial Highlights....................................................... 13
Notes to Financial Statements.............................................. 14
Report of Independent Accountants.......................................... 18
--------------------------------------------------------------------------------
</TABLE>
<PAGE>
UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
--------------------------------------------------------------------------------
April 30, 2000
Dear Shareholder:
We welcome this opportunity to review the economic and market conditions that
have affected the Pell Rudman Mid-Cap Portfolio during the fiscal year ending
April 30, 2000 as well as the critical tenets of our investment philosophy.
Performance Summary
From May 1, 1999 through April 30, 2000, the Pell Rudman Mid-Cap Portfolio
produced a return of 49.49% versus the Russell Mid-Cap Growth Index of 53.03%
and the S&P return of 10.13%. A large portion of the return was generated in the
strong market rebound from October through December.
Overview of Economic and Market Conditions
Beginning late last year and continuing in the first quarter, small-cap and
mid-sized companies have appreciated more than large-cap companies. During
March, there were intermittent signs of a revival in "Old Economy" industrial
and consumer stocks, while parts of the technology marketplace experienced a
correction. A major question for the rest of the year is whether these sporadic
signs of a sector rotation turn into a sustainable trend.
During the course of 1999, the Federal Reserve raised interest rates four times
and bond yields generally rose by more than 150 basis points. Normally, such a
bear market for bonds would be problematic for the equity markets. However, 1999
was not a normal year. The S&P 500 Index rose more than 21% while
technology-heavy indices like the NASDAQ posted astounding gains.
Interest rate and inflation jitters gave stocks reason to pause, and even
correct, last summer. However, the continued superb performance of the economy
led to well-founded optimism on the earnings front. This, along with the
technology investment frenzy, propelled stock averages higher. Reality was not
quite as kind when one looked beyond those averages. As in 1998, a substantial
majority of stocks actually declined for the year left behind by investors'
seemingly singular demand for stocks with "momentum".
Aside from the prospect for higher than average volatility in the near term,
multi-year investment prospects remains bright. A synchronized global economic
expansion is gaining steam in 2000, which enhances export prospects for
multi-national companies. While the Fed is wise to guard against it, inflation
is likely to remain close to the low levels of the last several years.
1
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
--------------------------------------------------------------------------------
Investment Outlook and Philosophy
We believe the seemingly unstoppable U.S. economy poses some risks for the 2000
investment outlook. Though actual signs of inflation are hard to find, the
Federal Reserve wants to ensure against an outbreak of price acceleration by
tightening credit. It is quite likely that the Fed has not completed its course
of interest rate increases. As is often the case, uncertainty over the course of
monetary policy may make equity markets volatile in the weeks ahead. Later in
the year, this anti-inflation vigilance should soothe the bond market and allow
the equity markets to focus on continued favorable earnings trends. Our broadly
diversified portfolio seeks consistent above-average earning growth as its
unifying theme.
The current bifurcated market had shown unwillingness to reward companies that
consistently produce 15% to 20% earnings growth with superior returns on
investment and cash flow in sectors other than technology. We believe the market
will ultimately recognize the value in these franchises which in turn may help
the returns of our Portfolio. We have seen an improving breadth late in the
first quarter 2000 that helps to support our positive outlook.
Portfolio Analysis
Pell Rudman's quality-growth stock philosophy naturally leads us to own many
technology-oriented companies. After all, technology is the fastest-growing part
of our economy and one where the U.S. possesses a sustainable competitive
advantage. At the same time, diversification is also a core part of our
discipline. In recent months we have taken profits in several technology stocks
that had reached full valuations and deployed the proceeds into attractively
valued companies in other industries.
Pell Rudman Trust Company, N.A.
All performance presented in this report is historical and should not
be construed as a guarantee of future results. The investment return and
principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than
their original cost. A portfolio's performance assumes the
reinvestment of all dividends and capital gains.
There are no assurances that a portfolio will meet its stated objectives.
A portfolio's holdings and allocations are subject to change
because it is actively managed and should
not be considered recommendations to buy individual securities.
2
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
--------------------------------------------------------------------------------
Definition of the Comparative Index
-----------------------------------
Russell Mid-Cap Growth Index is an unmanaged index of U.S. companies with mid
market capitalization that exhibit higher price-to-book ratios and higher
forecasted growth values.
Russell Mid-Cap Index is an unmanaged index comprised of 800 stocks of U.S.
companies with mid-market capitalization.
S&P 500 Index is an unmanaged index comprised of stocks representing major U.S.
market industries, including 400 industrial stocks, 40 financial stocks, 40
utility stocks and 20 transportation stocks.
Index returns assume reinvestment of dividends and, unlike a portfolio's
returns, do not reflect any fees or expenses. If such fees and
expenses were included in the index returns, the performance
would have been lower.
Please note that one cannot invest directly in an unmanaged index.
3
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
--------------------------------------------------------------------------------
Growth of a $10,000 Investment
---------------------------------
AVERAGE ANNUAL TOTAL RETURN**
FOR PERIODS ENDED APRIL 30, 2000
---------------------------------
Since
1 Year 9/10/98*
---------------------------------
49.49% 48.24%
---------------------------------
[CHART APPEARS HERE]
* Beginning of operations. Index comparisons begin on 8/31/98.
** If the adviser and/or portfolio service providers had not limited certain
expenses, the portfolio's total return would have been lower.
All performance presented in this report is historical and should not be
construed as a guarantee of future results. The investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
A portfolio's performance assumes the reinvestment of all dividends and
capital gains.
Index returns assume reinvestment of dividends and, unlike a portfolio's
returns, do not reflect any fees or expenses. If such fees and expenses
were included in the index returns, the performance would have been
lower.
Please note that one cannot invest directly in an unmanaged index.
4
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 97.7%
Shares Value
---------- ----------
AUTOMOTIVE -- 0.9%
Harley-Davidson ............................... 3,950 $ 157,259
----------
BANKS -- 1.3%
Northern Trust ................................ 1,960 125,685
TCF Financial ................................. 4,335 101,331
----------
227,016
----------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 8.0%
Adelphia Communications, C1 A* ................ 2,075 102,583
AMFM* ......................................... 4,060 269,482
Charter Communications* ....................... 7,060 103,694
Doubleclick* .................................. 1,245 94,387
Entercom Communications* ...................... 3,280 139,400
New York Times, C1 A .......................... 3,020 124,386
NTL* .......................................... 3,398 259,947
UnitedGlobalCom, C1 A* ........................ 2,330 123,781
Young & Rubicam* .............................. 3,785 210,777
----------
1,428,437
----------
CHEMICALS -- 0.9%
Cambrex ....................................... 3,995 163,795
----------
COMMUNICATIONS EQUIPMENT -- 2.9%
Brocade Communications Systems* ............... 545 67,580
Ditech Communications* ........................ 813 69,003
Netro* ........................................ 890 38,381
Plantronics* .................................. 3,920 346,920
----------
521,884
----------
COMPUTERS & SERVICES -- 8.4%
Affiliated Computer Services, C1 A* ........... 5,050 167,281
Citrix Systems* ............................... 4,280 261,348
Clarent* ...................................... 600 40,800
Comverse Technology* .......................... 3,025 269,792
Exodus Communications* ........................ 3,310 292,314
Lexmark International Group, C1 A* ............ 3,855 454,890
----------
1,486,425
----------
The accompanying notes are an integral part of the financial statements.
5
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
COMMON STOCKS - continued
Shares Value
---------- ----------
COMPUTER SOFTWARE/SERVICES -- 3.4%
Inktomi* ...................................... 905 $ 139,257
Veritas Software* ............................. 4,308 462,033
----------
601,290
----------
ENTERTAINMENT -- 0.8%
SFX Entertainment, C1 A* ...................... 3,315 137,987
----------
FIBER OPTICS -- 4.9%
JDS Uniphase* ................................. 5,250 544,359
SDL* .......................................... 1,630 317,850
----------
862,209
----------
FINANCIAL SERVICES -- 3.6%
Bisys Group* .................................. 3,240 202,095
Capital One Financial ......................... 3,635 159,031
Fiserv* ....................................... 5,930 272,409
----------
633,535
----------
INSURANCE -- 1.6%
Aflac ......................................... 2,665 130,085
Ambac Financial Group ......................... 3,270 156,960
----------
287,045
----------
MACHINERY -- 1.2%
Danaher ....................................... 2,040 116,535
Donaldson ..................................... 3,925 91,256
----------
207,791
----------
MEDIA-TV/RADIO/CABLE -- 5.6%
Hispanic Broadcasting* ........................ 2,430 244,671
Time Warner Telecommunications, Class A* ...... 1,620 88,695
TV Guide * .................................... 3,345 99,723
Univision Communications* ..................... 2,470 269,847
USA Networks * ................................ 5,305 122,015
Westwood One* ................................. 4,700 166,263
----------
991,214
----------
The accompanying notes are an integral part of the financial statements.
6
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
COMMON STOCKS - continued
Shares Value
---------- ----------
MEDICAL PRODUCTS & SERVICES -- 6.1%
Lincare Holdings* ........................... 4,220 $ 128,710
Medquist* ................................... 6,905 244,696
Minimed* .................................... 3,470 426,376
Patterson Dental* ........................... 3,330 159,840
Sybron International* ....................... 3,995 124,344
----------
1,083,966
----------
MISCELLANEOUS BUSINESS SERVICES -- 6.4%
Avery Dennison .............................. 2,115 138,797
Concord EFS* ................................ 9,662 215,583
CSG Systems International* .................. 5,053 231,175
Nova* ....................................... 7,340 232,128
Paychex ..................................... 5,930 312,066
----------
1,129,749
----------
MISCELLANEOUS MANUFACTURING -- 4.2%
Blyth Industries* ........................... 6,055 179,758
Flextronics International* .................. 4,740 332,689
Sanmina* .................................... 3,920 235,200
----------
747,647
----------
PETROLEUM & FUEL PRODUCTS -- 1.4%
Grant Prideco Inc* .......................... 4,070 78,348
Weatherford International* .................. 4,070 165,344
----------
243,692
----------
PROFESSIONAL SERVICES -- 2.5%
Apollo Group, C1 A* ......................... 3,655 105,538
Devry* ...................................... 4,640 110,490
Millipore ................................... 3,200 229,400
----------
445,428
----------
RESTAURANTS -- 1.5%
Jack In The Box* ............................ 4,815 117,968
Papa John's International* .................. 5,235 143,635
----------
261,603
----------
The accompanying notes are an integral part of the financial statements.
7
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
COMMON STOCKS - continued
Shares Value
---------- ----------
RETAIL -- 6.0%
Bed Bath and Beyond* ........................ 7,275 $ 266,902
Dollar General .............................. 5,888 134,688
Dollar Tree Stores* ......................... 3,305 191,070
Ethan Allen Interiors ....................... 5,990 159,858
Men's Wearhouse* ............................ 4,265 90,898
Tandy ....................................... 1,895 108,015
TJX ......................................... 5,935 113,878
----------
1,065,309
----------
SEMI-CONDUCTORS/INSTRUMENTS -- 19.5%
Altera* ..................................... 5,745 587,067
Analog Devices* ............................. 4,760 365,628
Conexant Systems* ........................... 3,605 215,849
Lattice Semiconductor* ...................... 2,950 198,756
Linear Technology ........................... 5,080 290,195
Maxim Integrated Products* .................. 8,495 550,051
Microchip Technology* ....................... 6,507 403,434
Vitesse Semiconductor* ...................... 4,540 308,720
Xilinx* ..................................... 7,190 526,668
----------
3,446,368
----------
TELEPHONES & TELECOMMUNICATION -- 3.7%
American Tower Systems* ..................... 4,220 196,230
Crown Castle International* ................. 5,665 215,978
United States Cellular* ..................... 2,830 169,977
Voicestream Wireless* ....................... 775 76,677
----------
658,862
----------
TEXTILES & APPAREL -- 1.1%
Jones Apparel Group* ........................ 3,925 116,523
WestPoint Stevens* .......................... 4,220 79,125
----------
195,648
----------
WHOLESALE -- 1.8%
BJ's Wholesale Club* ........................ 5,645 $ 200,045
The accompanying notes are an integral part of the financial statements.
8
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
COMMON STOCKS - continued
Shares Value
------ -----
United Stationers ................................. 3,525 117,427
----------
317,472
----------
TOTAL COMMON STOCKS
(Cost $12,593,797) ............................. 17,301,631
----------
SHORT-TERM INVESTMENT - 2.5%
<TABLE>
<CAPTION>
Face
Amount Value
-------- -----------
<S> <C> <C>
REPURCHASE AGREEMENT -- 2.5%
Chase Securities, Inc. 5.65%, dated 04/28/00,
due 05/01/00, to be repurchased at $429,202,
collateralized by $470,162 of a U.S. Treasury Note
valued at $429,009 (Cost $429,000)....................... $429,000 $ 429,000
-----------
TOTAL INVESTMENTS -- 100.2%
(Cost $13,022,797) (a)................................... 17,730,631
-----------
OTHER ASSETS AND LIABILITIES, NET -- (0.2%)................... (28,054)
-----------
TOTAL NET ASSETS -- 100.0%.................................... $17,702,577
===========
</TABLE>
* Non-Income Producing Security
C1 Class
(a) The cost for federal income tax purposes was $13,022,861. At April 30,
2000, net unrealized appreciation for all securities based on tax cost was
$4,707,770. This consisted of aggregate gross unrealized appreciation for
all securities of $5,199,320 and aggregate gross unrealized depreciation
for all securities of $491,550.
The accompanying notes are an integral part of the financial statements.
9
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<S> <C>
Assets
Investments, at Cost ....................................................... $13,022,797
===========
Investments, at Value - Note A ............................................. $17,730,631
Cash ....................................................................... 841
Receivable for Investments Sold ............................................ 46,586
Receivable for Portfolio Shares Sold ....................................... 32,302
Receivable from Investments Advisor - Note B ............................... 2,948
Dividends and Interest Receivable .......................................... 1,493
Other Assets ............................................................... 2,284
-----------
Total Assets ............................................................ 17,817,085
-----------
Liabilities
Payable for Investment Securities Purchased ................................ 84,566
Payable for Administrative Fees - Note C ................................... 7,692
Payable for Custodian Fees - Note D ........................................ 4,500
Payable for Trustees' Fees - Note F ........................................ 150
Other Liabilities .......................................................... 17,600
-----------
Total Liabilities ....................................................... 114,508
-----------
Net Assets ................................................................. $17,702,577
===========
Net Assets Consist of:
Paid in Capital ............................................................ $12,215,862
Accumulated Net Realized Gain .............................................. 778,881
Unrealized Appreciation .................................................... 4,707,834
-----------
Net Assets ................................................................. $17,702,577
===========
Institutional Class Shares
Shares Issued and Outstanding (Unlimited authorization, no par value)....... 930,192
Net Asset Value, Offering and Redemption Price Per Share ................... $19.03
======
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO FOR
THE YEAR ENDED APRIL 30, 2000
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
<TABLE>
<S> <C>
Investment Income
Dividends ................................................................. $ 15,359
Interest .................................................................. 24,678
-----------
Total Income ........................................................... 40,037
-----------
Expenses
Investment Advisory Fees - Note B ......................................... 113,575
Administrative Fees - Note C .............................................. 92,612
Printing Expenses ......................................................... 14,164
Custodian Fees - Note D ................................................... 12,816
Audit Fees ................................................................ 12,623
Filing and Registration Fees .............................................. 12,436
Trustees' Fees - Note F ................................................... 2,279
Legal Fees ................................................................ 1,091
Other Expenses ............................................................ 19,476
Investment Advisory Fees Waived--Note B ................................... (113,575)
Expenses Assumed by the Adviser--Note B ................................... (18,804)
-----------
Net Expenses Before Expense Offset ..................................... 148,693
Expense Offset ............................................................ (919)
-----------
Net Expenses After Expense Offset ...................................... 147,774
-----------
Net Investment Loss ....................................................... (107,737)
-----------
Net Realized Gain on Investments .......................................... 957,137
Net Unrealized Appreciation (Depreciation) of Investment Securities........ 4,022,628
-----------
Net Realized and Unrealized Gain on Investments ........................... 4,979,765
-----------
Net Increase in Net Assets Resulting From Operations ...................... $ 4,872,028
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
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STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
September 10,
Year Ended 1998* to
April 30, April 30,
2000 1999
-------------- --------------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Loss ............................................... $ (107,737) $ (11,483)
Net Realized Gain (Loss) .......................................... 957,137 (56,002)
Net Change in Unrealized Appreciation (Depreciation) .............. 4,022,628 685,206
------------ ------------
Net Increase in Net Assets Resulting from Operations .............. 4,872,028 617,721
------------ ------------
Distributions:
Net Realized Gain ................................................. (19,797) --
------------ ------------
Capital Share Transactions: (1)
Issued ............................................................ 7,195,658 5,631,775
Issued in Lieu of Cash Distributions .............................. 17,674 --
Redeemed .......................................................... (547,587) (64,895)
------------ ------------
Net Increase from Capital Share Transactions ...................... 6,665,745 5,566,880
------------ ------------
Total Increase .................................................. 11,517,976 6,184,601
Net Assets:
Beginning of Period ............................................... 6,184,601 --
------------ ------------
End of Period (Including undistributed net investment
income of $0 and $5,280, respectively) ......................... $ 17,702,577 $ 6,184,601
============ ============
(1) Share Issued and Redeemed:
Shares Issued ..................................................... 480,012 489,956
In Lieu of Cash Distributions ..................................... 1,121 --
Shares Redeemed ................................................... (35,514) (5,383)
------------ ------------
Net Increase in Shares Outstanding ................................ 445,619 484,573
============ ============
</TABLE>
* Commencement of Operations
The accompanying notes are an integral part of the financial statements.
12
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
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FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
September 10,
Year 1998* to
Ended April 30,
April 30, 2000 1999
-------------- ---------------
<S> <C> <C>
Net Asset Value, Beginning of Period ............... $ 12.76 $ 10.00
-------- --------
Income from Investment Operations
Net Investment Loss ............................. (0.12) (0.02)
Net Realized and Unrealized Gain ................ 6.41 2.78
-------- --------
Total from Investment Operations ................ 6.29 2.76
-------- --------
Distributions:
Net Realized Gain .................................. (0.02) --
-------- --------
Net Asset Value, End of Period ..................... $ 19.03 $ 12.76
======== ========
Total Return + ..................................... 49.49% 27.50%***
======== ========
Ratios and Supplemental Data
Net Assets, End of Period (Thousands) .............. $ 17,703 $ 6,185
Ratio of Expenses to Average Net Assets............. 1.31% 1.30%**
Ratio of Net Investment Loss to Average
Net Assets ...................................... (0.95)% (0.68)%**
Portfolio Turnover Rate ............................ 42% 24%
</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.
13
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
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NOTES TO FINANCIAL STATEMENTS
UAM Funds, Inc., UAM Funds, Inc. II and UAM Funds Trust (collectively the
"UAM Funds") are registered under the Investment Company Act of 1940, as
amended. The Pell Rudman Mid-Cap Growth Portfolio (the "Portfolio"), a portfolio
of UAM Funds Trust, is a diversified, open-end management investment company. At
April 30, 2000, the UAM Funds were comprised of 49 active portfolios. The
information presented in the financial statements pertains only to the
Portfolio. The objective of the Portfolio is to provide capital appreciation by
investing primarily in quality growth companies with medium market
capitalizations (i.e., companies with market capitalizations that fall within
the range of the Russell Mid-Cap Growth Index at the time of investment).
A. Significant Accounting Policies: The following significant accounting
policies are in conformity with generally accepted accounting principles. Such
policies are consistently followed by the Portfolio in the preparation of its
financial statements. Generally accepted accounting principles may require
Management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results may differ from
those estimates.
1. Security Valuation: Investments for which market quotations are
readily available are stated at market value, which is determined using the
last reported sale price from the exchange where the security is primarily
traded. If no sales are reported, as in the case of some securities traded
over-the-counter, the market value is determined using the last reported
bid price. Short-term investments with 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 following
procedures approved 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. Repurchase Agreements: In connection with transactions involving
repurchase agreements, the Portfolio's custodian bank takes possession of
the underlying securities ("collateral"), 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.
14
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
--------------------------------------------------------------------------------
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 counterparty to the agreement, realization and/or retention of the
collateral or proceeds may be subject to legal proceedings.
Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the UAM Funds may transfer their daily uninvested cash 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.
4. Distributions to Shareholders: The Portfolio will distribute
substantially all of its net investment income quarterly. Any realized net
capital gains will be distributed at least 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 of net operating
losses.
Permanent book and tax basis differences resulted in reclassifications
of an increase of $102,457 to undistributed net investment income and a
decrease of $102,457 to accumulated net realized gain.
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.
5. Other: Security transactions are accounted for on trade date, the
date the trade is executed. Costs used in determining realized gains or
losses on the sale of investment securities are based on the specific
identification method. Dividend income is recorded on the ex-dividend date.
Interest income is recognized on an accrual basis. Most expenses of the UAM
Funds can be directly attributed to a particular portfolio. Expenses that
cannot be directly attributed to a portfolio are apportioned among the
portfolios of the UAM Funds based on their relative net assets. Custodian
fees for the Portfolio are shown gross of expense offsets, if any, for
custodian balance credits.
B. Investment Advisory Services: Under the terms of an investment advisory
agreement, Pell Rudman Trust Company, N.A., (the "Adviser"), a subsidiary of
United Asset Management Corporation ("UAM"), provides investment advisory
15
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
--------------------------------------------------------------------------------
services to the Portfolio at a 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 1.30% of average daily net
assets.
C. Administrative Services: UAM Fund Services, Inc. (the "Administrator"),
a wholly-owned subsidiary of UAM, provides and oversees administrative, fund
accounting, dividend disbursing, shareholder servicing and transfer agent
services to the Portfolio under a Fund Administration Agreement (the
"Agreement"). The Administrator has entered into separate Service Agreements
with SEI Investments Mutual Fund Services ("SEI"), a wholly owned subsidiary of
SEI Investments Company, DST Systems, Inc. ("DST), and UAM Shareholder Service
Center ("UAMSSC"), an affiliate of UAM, to assist in providing certain services
to the Portfolio.
Pursuant to the Agreement, the Portfolio pays the Administrator 0.073% per
annum of the average daily net assets of the Portfolio, an annual base fee of
$72,500, and a fee based on the number of active shareholder accounts.
For the year period ended April 30, 2000, the Administrator was paid
$86,694, of which $14,962 was paid to SEI for their services, $14,005 to DST for
their services, and $9,407 to UAMSSC for their services.
Prior to November 1, 1999, the Administrator was party to a separate
Sub-Administration Service Agreement with Chase Global Fund Services Company
("CGFSC"). For its services CGFSC received $27,802.
D. Custodian: The Chase Manhattan Bank 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. Trustees' Fees: Each Trustee, who is not an officer or affiliated
person, receives $2,000 per meeting attended plus reimbursement of expenses
incurred in attending Trustee meetings, which is allocated proportionally among
the active portfolios of UAM Funds, plus a quarterly retainer of $150 for each
active portfolio of the UAM Funds.
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
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G. Purchases and Sales: For the year ended April 30, 2000, the Portfolio
made purchases of $10,955,276 and sales of $4,663,294 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. 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. At April 30, 2000, the
Portfolio had no borrowings under the agreement.
I. Other: At April 30, 2000, 80% of total shares outstanding were held by 4
record shareholders, each owning more than 10% of the aggregate total shares
outstanding. UAM was the record shareholder of 35% of the aggregate total shares
outstanding.
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
--------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of
UAM Funds Trust and Shareholders of
Pell Rudman Mid-Cap Growth Portfolio
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Pell Rudman Mid-Cap Growth
Portfolio (one of the portfolios constituting UAM Funds Trust, hereafter
referred to as the "Fund") at April 30, 2000, and the results of its operations,
the changes in its net assets and the financial highlights for each of the
periods indicated, in conformity with accounting principles generally accepted
in the United States. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at April 30, 2000 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
June 14, 2000
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
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Federal Income Tax Information: (Unaudited)
For the year ended April 30, 2000, the percentage of dividends paid from
investment company taxable income that qualify for the 70% dividend received
deduction for corporate shareholders is 99.28% for the Pell Rudman Mid-Cap
Growth Portfolio.
Pell Rudman Mid-Cap Growth Portfolio hereby designates approximately $14,470 as
a 20% long-term capital gain dividend for the purpose of dividend paid deduction
on their federal income tax returns.
19
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NOTES
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NOTES
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UAM FUNDS PELL RUDMAN MID-CAP GROWTH PORTFOLIO
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Officers and Trustees
Norton H. Reamer William H. Park
Trustee, President and Chairman Vice President
John T. Bennett, Jr. Gary L. French
Trustee Treasurer
Nancy J. Dunn Robert R. Flaherty
Trustee Assistant Treasurer
Philip D. English Robert J. Della Croce
Trustee Assistant Treasurer
William A. Humenuk Martin J. Wolin, Esq.
Trustee Secretary
James P. Pappas Theresa DelVecchio
Trustee Assistant Secretary
Peter M. Whitman, Jr.
Trustee
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UAM Funds
P.O. Box 219081
Kansas City, MO 64121
(toll free)
1-877-UAM-LINK (826-5465)
www.uam.com
Investment Adviser
Pell Rudman Trust Company, N.A.
100 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.
---------------------------------
