<PAGE>
UAM Funds
Funds for the Informed Investor/SM/
C & B Equity Portfolio
for Taxable Investors
Semi-Annual Report April 30, 2000
[GRAPHIC]
UAM(R)
<PAGE>
UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
APRIL 30, 2000
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TABLE OF CONTENTS
--------------------------------------------------------------------------------
Shareholders' Letter ................................................... 1
Portfolio of Investments ............................................... 3
Statement of Assets and Liabilities .................................... 6
Statement of Operations ................................................ 7
Statement of Changes in Net Assets ..................................... 8
Financial Highlights ................................................... 9
Notes to Financial Statements .......................................... 10
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<PAGE>
UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
--------------------------------------------------------------------------------
May 17, 2000
Dear Shareholder:
The following report provides a detailed description of the securities held and
statement of operations for the C & B Equity Portfolio for Taxable Investors
for the six month period ended April 30, 2000.
For this six month period, the C & B Equity Portfolio for Taxable Investors
increased by 8.46% versus the S&P 500 Index being up 7.20%. Given Cooke &
Bieler's "high quality, low risk" approach, and the market's emphasis up until
March 10, 2000 (the peak of NASDAQ) on technology and disregard for valuations,
these results are not out of line with the expectations of the Cooke & Bieler
style nor inconsistent with the firm's philosophy.
As of April 30, 2000, common stocks represented 99% of the portfolio, with cash
reserves being 1%.
The first four months of this six month period ended April 30, 2000 were
particularly difficult for Cooke & Bieler's "relative value" style since the
S&P 500 Index's performance was dominated by growth stocks. However, most
recently in March and April, our style rebounded and the Portfolio significantly
outperformed the S&P 500 Index.
Cooke & Bieler continues to employ an investment process in which we seek to
produce above average, after tax, long-term results, in addition to
maintaining strong relative results in flat and down markets. We feel that the
strong fundamental characteristics of companies held in the C & B Equity
Portfolio for Taxable Investors should help to provide this downside protection.
The high quality characteristics that we seek, as compared to the S&P 500 Index,
include (1) balance sheet strength measured by a relatively low debt to
capital ratio, (2) high levels of return on equity and return on capital, (3)
consistent growth in earnings and dividends, and (4) use of excess cash flow to
repurchase stock.
Sincerely,
/s/ Samuel H. Ballam, III
Samuel H. Ballam, III
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UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
--------------------------------------------------------------------------------
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.
Definition of the Comparative Index
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.
2
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UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 99.7%
Shares Value
AEROSPACE & DEFENSE -- 1.1% ------ -----
Raytheon Company, Cl B ................. 1,200 $ 26,625
--------
AUTOMOTIVE -- 5.8%
Dana ................................... 2,900 88,087
Snap-On ................................ 2,000 52,875
--------
140,962
--------
BANKS -- 4.3%
State Street ........................... 1,100 106,563
--------
BEAUTY PRODUCTS -- 3.9%
Avon Products .......................... 2,300 95,450
--------
BUILDING & CONSTRUCTION -- 5.1%
Sherwin-Williams ....................... 5,000 124,375
--------
COMMUNICATIONS EQUIPMENT -- 1.5%
Motorola ............................... 300 35,719
--------
COMPUTERS & SERVICES -- 2.7%
International Business Machines ........ 600 66,975
--------
CONSUMER NON-DURABLES -- 7.3%
Hasbro ................................. 3,000 47,812
NIKE ................................... 3,000 130,312
--------
178,124
--------
ELECTRICAL TECHNOLOGY -- 0.6%
Energizer Holdings* .................... 833 14,213
--------
ENERGY -- 11.3%
Enron .................................. 1,000 69,687
Exxon Mobil ............................ 1,200 93,225
Royal Dutch Petroleum ADR .............. 2,000 114,750
--------
277,662
--------
FINANCIAL SERVICES -- 3.0%
MBIA ................................... 1,500 74,156
--------
3
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UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS - continued
Shares Value
------ -----
FOOD, BEVERAGE & TOBACCO -- 9.9%
Anheuser-Busch ...................................... 1,500 $105,844
Ralston Purina Group ................................ 2,500 44,219
Whitman ............................................. 8,000 91,500
--------
241,563
--------
INSURANCE -- 4.2%
AON ................................................. 2,700 73,069
UnumProvident ....................................... 1,700 28,900
--------
101,969
--------
INSURANCE COMPANIES -- 4.0%
Marsh & McLennan .................................... 1,000 98,563
--------
MACHINERY -- 4.6%
Dover ............................................... 2,200 111,787
--------
MEDICAL PRODUCTS -- 5.2%
Becton Dickinson .................................... 3,000 76,875
Dentsply International .............................. 1,700 49,406
--------
126,281
--------
MULTI-INDUSTRY -- 2.6%
National Service Industries ......................... 3,000 64,500
--------
OFFICE EQUIPMENT -- 4.7%
Pitney Bowes ........................................ 900 36,788
Xerox ............................................... 3,000 79,313
--------
116,101
--------
PHARMACEUTICALS -- 9.3%
Abbott Laboratories ................................. 1,400 53,812
Bristol-Myers Squibb ................................ 1,200 62,925
Merck ............................................... 1,600 111,200
--------
227,937
--------
RESTAURANTS -- 3.2%
Wendy's International ............................... 3,500 78,313
--------
SERVICES -- 5.4%
SYSCO ............................................... 3,500 131,688
--------
TOTAL COMMON STOCKS
(Cost $2,324,750) ................................... 2,439,526
--------
The accompanying notes are an integral part of the financial statements.
4
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UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENT - 0.6%
<TABLE>
<CAPTION>
Face
Amount Value
------ -----
REPURCHASE AGREEMENT -- 0.6%
<S> <C> <C>
Chase Securities, Inc. 5.65%, dated 04/28/00,
due 05/01/00, to be repurchased at $14,007,
collateralized by $15,343 of a U.S. Treasury Note
valued at $14,000 (Cost $14,000) ................... $ 14,000 $ 14,000
-----------
TOTAL INVESTMENTS -- 100.3% (Cost $2,338,750) (a) .. 2,453,526
-----------
OTHER ASSETS AND LIABILITIES, NET -- (0.3%) ........ (7,656)
-----------
TOTAL NET ASSETS -- 100.0% ......................... $ 2,445,870
-----------
</TABLE>
* Non-Income Producing Security
ADR American Depositary Receipt
Cl Class
(a) The cost for federal income tax purposes was $2,338,750. At April 30,
2000, net unrealized appreciation for all securities based on tax cost
was $114,776. This consisted of aggregate gross unrealized appreciation
for all securities of $457,830, and gross unrealized depreciation for all
securities of $343,054.
The accompanying notes are an integral part of the financial statements.
5
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UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Assets
<S> <C>
Investments, at Cost .................................................... $2,338,750
==========
Investments, at Value - Note A .......................................... $2,453,526
Cash .................................................................... 318
Receivable due from Investment Adviser - Note B ......................... 8,527
Dividends and Interest Receivable ....................................... 3,271
----------
Total Assets ....................................................... 2,465,642
----------
Liabilities
Payable for Administrative Fees - Note C ................................ 4,709
Payable for Custodian Fees - Note D ..................................... 1,175
Payable for Directors' Fees - Note F .................................... 455
Other Liabilities ....................................................... 13,433
----------
Total Liabilities .................................................. 19,772
----------
Net Assets .............................................................. $2,445,870
==========
Net Assets Consist of:
Paid in Capital ......................................................... 2,010,896
Undistributed Net Investment Income ..................................... 2,330
Accumulated Net Realized Gain ........................................... 317,868
Unrealized Appreciation ................................................. 114,776
----------
Net Assets .............................................................. $2,445,870
==========
Institutional Class Shares
Net Asset Value, Offering and Redemption Price Per Share 175,946
shares outstanding ($0.001 par value) (Authorized 25,000,000) ...... $ 13.90
==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
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UAM FUNDS C & B EQUITY PORTFOLIO FOR TAXABLE INVESTORS
FOR THE SIX MONTHS ENDED APRIL 30, 2000(Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Investment Income
<S> <C>
Dividends .............................................................. $ 25,982
Interest ............................................................... 1,439
---------
Total Income ....................................................... 27,421
---------
Expenses
Administrative Fees -- Note C .......................................... 38,332
Printing Fees .......................................................... 8,383
Investment Advisory Fees -- Note B ..................................... 7,474
Audit Fees ............................................................. 5,686
Registration and Filing Fees ........................................... 5,609
Directors' Fees -- Note F .............................................. 1,234
Custodian Fees -- Note D ............................................... 872
Legal .................................................................. 80
Other Expenses ......................................................... 3,900
Investment Advisory Fees Waived -- Note B .............................. (7,474)
Expenses Assumed by the Investment Adviser -- Note B ................... (49,117)
---------
Net Expenses Before Expense Offset ................................. 14,979
Expense Offset -- Note A ............................................... (37)
---------
Net Expenses After Expense Offset .................................. 14,942
---------
Net Investment Income .................................................. 12,479
---------
Net Realized Gain on Investments ....................................... 543,153
Net Change in Unrealized Appreciation (Depreciation) on Investments .... (345,052)
---------
Net Gain on Investments ................................................ 198,101
---------
Net Increase in Net Assets Resulting from Operations ................... $ 210,580
=========
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
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UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, 2000 October 31,
(Unaudited) 1999
----------- ----
Increase (Decrease) in Net Assets
Operations:
<S> <C> <C>
Net Investment Income ................................................................... $ 12,479 $ 36,335
Net Realized Gain (Loss) ................................................................ 543,153 (87,346)
Net Change in Unrealized Appreciation (Depreciation) .................................... (345,052) 261,738
----------- -----------
Net Increase in Net Assets Resulting from Operations ..................................... 210,580 210,727
----------- -----------
Distributions:
Net Investment Income ................................................................... (12,348) (35,275)
----------- -----------
Capital Share Transactions: (1)
Issued .................................................................................. -- 362,950
In Lieu of Cash Distributions ........................................................... 5,990 20,328
Redeemed ................................................................................ (1,392,204) (417,203)
----------- -----------
Net Decrease from Capital Share Transactions ............................................. (1,386,214) (33,925)
----------- -----------
Total Increase (Decrease) .............................................................. (1,187,982) 141,527
Net Assets:
Beginning of Period ..................................................................... 3,633,852 3,492,325
----------- -----------
End of Period (including undistributed net investment income of
$2,330 and $2,199, respectively) ........................................................ $ 2,445,870 $ 3,633,852
=========== ===========
(1) Shares Issued and Redeemed:
Shares Issued ........................................................................... -- 27,466
In Lieu of Cash Distributions ........................................................... 463 1,562
Shares Redeemed ......................................................................... (106,859) (32,167)
----------- -----------
Net Decrease in Shares Outstanding ....................................................... (106,396) (3,139)
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
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UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
Six Months February 12,
Ended Year Ended Year Ended 1997*** to
April 30, 2000 October 31, October 31, October 31,
(Unaudited) 1999 1998 1997
Net Asset Value,
<S> <C> <C> <C> <C>
Beginning of Period .......................... $ 12.87 $ 12.23 $ 11.45 $ 10.00
--------- --------- --------- ---------
Income from Investment Operations:
Net Investment Income ........................ 0.06 0.12 0.14 0.11
Net Realized and
Unrealized Gain .............................. 1.03 0.64 0.79@ 1.44
--------- --------- --------- ---------
Total from Investment Operations ............. 1.09 0.76 0.93 1.55
--------- --------- --------- ---------
Distributions:
Net Investment Income ........................ (0.06) (0.12) (0.15) (0.10)
--------- --------- --------- ---------
Net Asset Value, End of Period .................... $ 13.90 $ 12.87 $ 12.23 $ 11.45
--------- --------- --------- ---------
Total Return+ ..................................... 8.46%** 6.23% 8.16% 15.54%**
--------- --------- --------- ---------
Ratios and Supplemental Data
Net Assets, End of Period (Thousands) ............. $ 2,446 $ 3,634 $ 3,492 $ 993
Ratio of Expenses to Average Net Assets ........... 1.00%* 1.00% 1.01% 1.00%*
Ratio of Net Investment
Income to Average Net Assets ................. 0.83%* 0.96% 1.24% 1.57%*
Portfolio Turnover Rate ........................... 6% 20% 49% 3%
</TABLE>
* Annualized
** Not annualized
*** Commencement of Operations
+ Total Return would have been lower had certain fees not been waived and
expenses assumed by the Adviser during the periods indicated.
@ The amount shown for the year ended October 31, 1998 for a share
outstanding throughout the year does not agree with the amount of
aggregate net losses on investments for the year because of the timing of
sales and repurchases of the Portfolio shares in relation to fluctuating
market value of the investments in the Portfolio.
The accompanying notes are an integral part of the financial statements.
9
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UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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 C & B Equity Portfolio for Taxable Investors (the "Portfolio"), a
portfolio of UAM Funds, Inc., 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 maximum
long-term, after tax total return consistent with minimizing risk to principal.
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 by
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 Directors.
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. 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
10
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UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
--------------------------------------------------------------------------------
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 agreement. 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 annually. All distributions are
recorded on ex-dividend date.
The amount and character of income and capital gain distributions
to be paid are determined in accordance with Federal income tax
regulations, which may differ from generally accepted accounting
principles. These differences are primarily due to differing book and tax
treatments in the timing of the recognition of gains or losses on
investments.
Permanent book and tax basis differences relating to shareholder
distributions may result in reclassifications to undistributed net
investment income (loss), accumulated gain (loss) and paid in capital.
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
and losses on the sale of investment securities are based on the specific
identification method. Dividend income is recorded on the exdividend
date. Interest income is recognized on the accrual basis. Most expenses
of the UAM Funds can be directly attributed to a particular portfolio.
Expenses that cannot be directly attributed 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.
11
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UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
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B. Investment Advisory Services: Under the terms of an investment
advisory agreement, Cooke & Bieler, Inc. (the "Adviser"), a subsidiary of UAM,
provides investment advisory services to the Portfolio at a fee calculated at an
annual rate of 0.625% 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,
after the effect of expense offset arrangements, from exceeding 1.00% 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 Funds 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 no more than $72,500 and a fee based on the number of active shareholder
accounts.
For the six months ended April 30, 2000, the Administrator was paid
$38,332, of which $18,177 was paid to SEI for their services, $6,638 to DST for
their services, and $4,384 to UAMSSC for their services.
Effective November 1, 1999, the UAM Funds' Board of Directors approved a
change in the Sub-administrator from Chase Global Funds Service Company to SEI
Investments Mutual Funds Services.
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.
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UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
--------------------------------------------------------------------------------
F. Directors' Fees: Each Director, who is not an officer or affiliated
person, receives $2,000 per meeting attended plus reimbursement of expenses
incurred in attending Board 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.
G. Purchases and Sales: For the six months ended April 30, 2000, the
Portfolio made purchases of $168,349 and sales of $1,461,606 of investment secu-
rities 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. During the six months ended
April 30, 2000, the Portfolio had no borrowings under the agreement.
I. Other: At April 30, 2000, 75% of total shares outstanding were held by
4 record shareholders each owning 10% or greater of the aggregate total shares
outstanding.
The Portfolio retains a redemption fee of 1.00% on redemptions of capital
shares held for less than 1 year in the Portfolio. For the six months ended
April 30, 2000, there were no redemption fees.
13
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UAM FUNDS C & B EQUITY PORTFOLIO
FOR TAXABLE INVESTORS
--------------------------------------------------------------------------------
Officers and Directors
Norton H. Reamer William H. Park
Director, President and Chairman Vice President
John T. Bennett, Jr. Gary L. French
Director Treasurer
Nancy J. Dunn Robert R. Flaherty
Director Assistant Treasurer
Philip D. English Robert J. Della Croce
Director Assistant Treasurer
William A. Humenuk Martin J. Wolin, Esq.
Director Secretary
James P. Pappas Theresa DelVecchio
Director Assistant Secretary
Peter M. Whitman, Jr.
Director
--------------------------------------------------------------------------------
UAM Funds
P.O. Box 219081
Kansas City, MO 64121
(toll free)
1-877-UAM-LINK (826-5465)
www.uam.com
Investment Adviser
Cooke & Bieler, Inc.
1700 Market Street
Philadelphia, PA 19103
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.
