<PAGE>
UAM Funds
Funds for the Informed Investor/sm/
MJI International Equity Portfolio
Annual Report April 30, 2000
UAM(R)
<PAGE>
UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000
<TABLE>
-------------------------------------------------------------------------------
TABLE OF CONTENTS
-------------------------------------------------------------------------------
<S> <C>
Shareholders' Letter...................................................... 1
Portfolio of Investments.................................................. 6
Statement of Assets and Liabilities....................................... 11
Statement of Operations................................................... 12
Statement of Changes in Net Assets........................................ 13
Financial Highlights...................................................... 14
Notes to Financial Statements............................................. 16
Report of Independent Accountants......................................... 22
</TABLE>
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<PAGE>
UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
April 30, 2000
Dear Shareholders:
Performance
The year to April 2000 saw some spectacular returns generated in individual
stocks and markets. Those returns were driven by two key developments: the
continuation of better than expected growth in the US and the boom in "new
economy" and Internet related stocks. A further feature, which no doubt was also
significant, was the injection of liquidity into global financial markets in
late 1999, intended to tide them over Y2K. As it happened, the event passed
without incident and the additional liquidity was withdrawn in the early months
of 2000. This coincided with a general tightening of monetary conditions
stemming from the US and no doubt played its part in the market correction,
which then took place. The Fund weathered the year well and delivered a return
of 20.07% versus 13.89% for the benchmark MSCI EAFE Index.
Economic and Market Review
The virtue of strong growth in the US was that demand spilled into the
international markets, helping to lift several economies out of recession. This
was especially true for Europe which also benefited from the weak euro. The
depreciation of the euro throughout the year enhanced the competitive position
of European exports, which stimulated manufacturing in the core economies,
Germany, Italy, the Netherlands and Spain. Through 1999 growth projections were
increased and have continued to rise in the current year. The focus on "TMT"
(telecoms, media and technology) also came through in several of the European
markets. In Germany, Mannesmann, the telecoms group, was the subject of a
hostile bid from the UK mobile phone group, VodafoneAirTouch while there was
heavy demand for the handset makers, Nokia in Finland and Ericsson in Sweden.
With strong returns in Germany, Italy, the Netherlands and Spain the portfolio
outperformed the continental European portion of the MSCI EAFE Index with a
return of 21.9% versus 17.7%. With already vigorous growth and much higher
interest rates, the UK was the worst performing of the European markets with a
return of -6.5%. Stock selection underperformed this figure but the managers
were cautious on the market with only a half weight in the portfolio.
The theme in the Japanese market through the year was the anticipation of a
return to growth. The managers concurred with this view and from the outset, had
a full commitment to the area. As statistics supported the progress of recovery,
funds
1
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
underweight in Japan became heavy buyers, lifting stock prices and the currency
at the same time. Again, the focus was on technology and companies such as
Fujitsu, a leading supplier of networking products as well as computers and
Matsushita Communications, the dominant manufacturer of handsets. When the
government reported two quarters of declining GDP to the end of 1999 investors
became concerned that activity in the economy could not be sustained in the
absence of further heavy government support, a view recently reinforced by the
IMF. However, through the period to the end of April, Japan was one the best
performing EAFE markets with a return of 29.5%. With excellent stock selection,
the portfolio return in Japan was 66.9%.
The benchmark for the Far East excluding Japan returned 2.3% for the year.
Although the portfolio achieved strong returns in Hong Kong, all other areas
lagged their benchmarks due to the small number of holdings and the exceptional
volatility of individual stocks. By the end of the period, rising US interest
rates and the weakness in TMT had left their mark.
Investment Strategy
During the year the focus of the portfolio was on Japan and Continental Europe
and Japan was key to the portfolio return. We were early to close out the
underweight exposure to Japan and in the correct sectors of the market. In
Japan, TMT stocks led the way for most of the year, only coming off their peaks
in the final four months. It was important to be early into this market in 1999
to secure the benefit of both the stock appreciation and the rise in the
currency. Late in the year, progress was only modest. Europe was the mirror
image of Japan. Individual stocks performed throughout the year but the lift in
the core markets gathered strength in the later months in response to the lower
currency as much as the thirst for TMT. A substantial holding in Mannesmann
through the bid process boosted returns. The sale of the stock in the market
just prior to the closure of the bid was well timed. Both Mannesmann and
VodafoneAirtouch drifted off in the subsequent period.
Market Outlook
After the end of the Fund's fiscal year the correction to markets deepened. TMT
stocks were particularly severely hit on fears that persistent growth would lead
to yet higher interest rates and tighter monetary conditions. There was some
relief when data out of the US pointed to a moderating in the pace of growth,
indicating that the squeeze by the Federal Reserve Board (the Fed) is taking
effect. If growth is indeed slowing, the Fed may exercise little more in the way
of tightening and markets will be able to look forward to a "soft landing".
2
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
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Under these conditions we believe that markets will be able to achieve modest
progress through the remainder of the year. Two issues of concern are the rising
oil price, which acts as a tax on both manufacturers and consumers, and the rate
of growth in the Japanese economy. The OPEC meeting early in the year agreed to
increase output to ease the pressure on supply. This allowed the oil price to
fall to the mid $20s per barrel but recently it has crept up again to close to
$30. In Japan recovery appears to be as elusive as ever. Bankruptcies are still
common and consumer confidence is low. Although progress on corporate
restructuring is being made, the results will take time to come through. While
investors bought Japanese assets during 1999 in the hope of recovery, they may
need to see the fruits of that change in 2000 to commit additional assets to
this market.
The focus in the portfolio will therefore remain on Europe. It is clear that the
weakness of the Euro versus the US dollar through 1999 has helped to stimulate
exports and manufacturing and lifted growth. With the possibility that US growth
and the interest rate cycle may have peaked, the prospects of a recovery in the
value of the Euro have greatly improved, enhancing the potential returns of this
region. Meanwhile, rationalization and the focusing of operations in European
companies will continue to improve earnings. At the same time, the evolution of
the equity culture will help to ensure attractive investment opportunities in a
broader range of successful companies, including those in the "new economy".
/s/ Andrew Preston
Andrew Preston
Portfolio Manager
Murray Johnstone International
Ten Largest Equity Holdings
(as a percentage of the Portfolio)
1. Nokia (3.1%) 6. ENI (2.0%)
2. Vivendi (2.4%) 7. Novartis, Registered (2.0%)
3. Cap Gemini (2.2%) 8. Bayer (2.0%)
4. Telecom Italia (2.2%) 9. TDK (2.0%)
5. Siemens (2.0%) 10. Marschollek Lautenschlaeger, Preferred
(1.8%)
3
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
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 Indices
-------------------------------------
Morgan Stanley Capital International EAFE Index is an unmanaged index comprised
of over 900 securities listed on the stock exchanges of countries in Europe,
Australia and the Far East.
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 MJI INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
Growth of a $10,000 Investment
[CHART APPEARS HERE]
* Beginning of operations. Index comparisons begin on 9/30/94.
** If the adviser and/or portfolio service providers had not limited certain
expenses, the portfolio's total return would have been lower.
+ The graph presents the performance of the Institutional Class shares. The
performance of the Institutional Service Class shares will vary based upon
the different inception date and fees (including 12b-1 fees) assessed to that
class.
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.
5
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 88.2%
Shares Value
---------- ----------
Australia -- 0.6%
National Australia Bank ...................... 19,000 $ 259,998
----------
Belgium -- 0.7%
Fortis, Series B ............................. 11,178 282,755
----------
Denmark -- 0.7%
Novo-Nordisk, Series B ....................... 2,183 293,260
----------
Finland -- 4.1%
Nokia ........................................ 22,454 1,290,606
Sonera ....................................... 6,659 366,974
----------
1,657,580
----------
France -- 9.6%
Banque Nationale de Paris .................... 8,393 679,657
Cap Gemini ................................... 4,710 926,713
Equant ADR* .................................. 4,100 319,800
France Telecom ............................... 2,188 339,217
Total Fina Elf ............................... 4,468 679,267
Vivendi ...................................... 10,140 1,004,934
-----------
3,949,588
-----------
Germany -- 7.2%
Bayer ........................................ 19,500 809,084
Dresdner Bank ................................ 14,639 608,061
Epcos* ....................................... 4,960 702,559
Siemens ...................................... 5,674 838,839
-----------
2,958,543
-----------
Hong Kong -- 1.5%
Cheung Kong .................................. 50,000 597,026
-----------
Ireland -- 1.4%
Allied Irish Banks ........................... 59,062 590,450
-----------
Italy -- 6.9%
ENI .......................................... 167,844 836,303
RAS .......................................... 34,300 351,181
Telecom Italia ............................... 64,347 901,478
Telecom Italia Mobile ........................ 79,071 756,271
-----------
2,845,233
-----------
The accompanying notes are an integral part of the financial statements.
6
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
COMMON STOCKS - continued
Shares Value
---------- ----------
Japan-- 25.2%
Fuji Machine.......................................... 8,700 $ 604,524
Fuji Photo Film....................................... 15,000 600,944
Kurita Water Industries............................... 31,000 675,472
Matsumoto Kenko....................................... 400 1,813
Matsushita Communications............................. 4,000 626,943
Mitsui & Co........................................... 81,000 600,305
Nippon Comsys......................................... 34,000 657,476
NTT DoCoMo............................................ 18 601,221
Olympus Optical....................................... 41,000 672,206
Omron................................................. 22,000 598,446
Rohm.................................................. 1,700 569,393
Secom................................................. 7,000 586,788
Sharp................................................. 31,000 598,029
Sumitomo Bank......................................... 41,000 512,500
Takefuji.............................................. 3,800 401,869
TDK................................................... 6,000 803,294
Uni-Charm............................................. 8,900 602,776
Yamanouchi Pharmaceutical............................. 12,000 633,975
----------
10,347,974
----------
Netherlands-- 4.8%
Aegon................................................. 7,587 546,314
Elsevier.............................................. 35,698 347,935
Fortis................................................ 9,598 241,826
Philips Electronics................................... 7,220 322,719
Unilever.............................................. 10,798 491,401
-----------
1,950,195
-----------
New Zealand-- 1.7%
Carter Holt Harvey.................................... 218,000 184,011
Telecom Corporation of New Zealand.................... 118,000 498,011
-----------
682,022
-----------
Singapore-- 2.7%
City Developments..................................... 71,000 322,444
Natsteel Electronics.................................. 47,000 269,909
Overseas Chinese Banking.............................. 41,000 281,102
Singapore Press Holdings.............................. 11,200 219,209
-----------
1,092,664
-----------
The accompanying notes are an integral part of the financial statements.
7
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
COMMON STOCKS - continued
Shares Value
--------- ----------
Spain -- 2.8%
Banco Bilbao Vizcaya Argentaria....................... 42,896 $ 586,109
Union Electrica Fenosa................................ 29,874 573,362
----------
1,159,471
----------
Sweden -- 2.9%
Ericsson, Series B.................................... 7,217 644,563
SKF, Series B......................................... 26,053 560,543
----------
1,205,106
----------
Switzerland -- 5.0%
Novartis, Registered.................................. 584 818,177
Roche Holding......................................... 49 513,225
Zurich Allied, Registered............................. 1,672 712,751
----------
2,044,153
----------
United Kingdom -- 10.4%
Abbey National........................................ 9,600 109,077
Autonomy*............................................. 1,000 133,000
Barclays.............................................. 12,300 313,709
BP Amoco.............................................. 26,100 224,797
British Aerospace..................................... 39,900 244,185
British Telecommunications............................ 19,700 352,201
Energis*.............................................. 3,000 147,670
Freeserve*............................................ 11,100 62,069
GKN................................................... 16,800 231,724
Lloyds TSB Group...................................... 24,400 238,012
Man Group............................................. 21,900 168,893
Norwich Union......................................... 30,000 204,334
P&O................................................... 21,300 209,758
Rio Tinto............................................. 12,000 185,461
Sage Group............................................ 11,200 123,691
Shell Transport & Trading............................. 34,900 283,244
SmithKline Beecham.................................... 23,400 319,306
Telewest Communications*.............................. 19,100 115,778
Vodafone AirTouch..................................... 129,300 591,470
----------
4,258,379
----------
Total Common Stocks
(Cost $30,713,838)................................. 36,174,397
----------
The accompanying notes are an integral part of the financial statements.
8
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
PREFERRED STOCKS - 2.8%
Shares Value
---------- ----------
Australia -- 0.9%
News Corporation .................................... 35,000 $ 376,050
----------
Germany -- 1.9%
Marschollek Lautenschlaeger ......................... 1,436 761,287
----------
TOTAL PREFERRED STOCKS
(Cost $629,740) .................................. 1,137,337
----------
SHORT-TERMINVESTMENT -- 9.9%
<TABLE>
<CAPTION>
Face
Amount Value
------------ ------------
<S> <C> <C>
REPURCHASEAGREEMENT -- 9.9%
Chase Securities, Inc. 5.65%, dated 04/28/00,
due 05/01/00, to be repurchased at $4,079,920,
collateralized by $4,469,279 of a U.S. Treasury
Note valued at $4,078,090 (Cost $4,078,000) ...................... $ 4,078,000 $ 4,078,000
------------
Total Investments -- 100.9%
(Cost $35,421,578) (a) ........................................... 41,389,734
------------
Other Assets and Liabilities, Net-- (0.9%) .......................... (352,851)
------------
Total Net Assets -- 100.0% ........................................... $ 41,036,883
============
</TABLE>
* Non-Income Producing Securities
ADR American Depositary Receipt
(a) The cost for federal income tax purposes was $35,421,578. At April 30,
2000, net unrealized appreciation for all securities based on tax cost was
$5,968,156. This consisted of aggregate unrealized appreciation for all
securities of $7,272,109 and aggregate gross unrealized depreciation for
all securities of $1,303,953.
The accompanying notes are an integral part of the financial statements.
9
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
At April 30, 2000, sector diversification of the Portfolio was as follows:
% of Market
Sector Diversification (Unaudited) Net Assets Value
------------ ------------
Aerospace & Defense........................... 0.6% $ 244,185
Automotive.................................... 0.6 231,724
Banking....................................... 10.2 4,178,675
Chemicals..................................... 2.0 809,084
Commercial Services........................... 2.4 1,004,934
Computers..................................... 5.0 2,049,807
Distribution Services......................... 1.5 600,305
Electric Power................................ 1.4 573,362
Electronics................................... 7.5 3,078,449
Engineering................................... 1.6 657,476
Environmental Services........................ 1.6 675,472
Financial Services............................ 7.6 3,126,126
Food.......................................... 1.2 491,401
Insurance..................................... 4.4 1,814,581
Machinery..................................... 1.5 604,524
Manufacturing................................. 2.0 840,652
Media......................................... 2.6 1,058,972
Metals........................................ 1.5 560,543
Mining........................................ 0.5 185,461
Oil & Gas..................................... 4.9 2,023,611
Paper Products................................ 1.9 786,787
Pharmaceuticals............................... 5.0 2,064,718
Photographic Equipment........................ 3.1 1,273,150
Real Estate................................... 2.2 919,470
Semiconductors................................ 1.4 569,393
Software...................................... 0.8 318,760
Telecommunications............................ 15.5 6,360,354
Transportation................................ 0.5 209,758
------------ ------------
Total Investments............................. 91.0% $ 37,311,734
Repurchase Agreement.......................... 9.9 4,078,000
Other Assets and Liabilities.................. (0.9) (352,851)
------------ ------------
Net Assets.................................... 100.0% $ 41,036,883
============ ============
The accompanying notes are an integral part of the financial statements.
10
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
Assets
Investments, at Cost......................................... $35,421,578
===========
Investments, at Value -- Note A.............................. $41,389,734
Receivable for Portfolio Shares Sold......................... 92,337
Receivable for Investments Sold............................. 84,193
Dividends Receivable......................................... 76,710
Foreign Withholding Tax Reclaim Receivable................... 24,882
Other Assets................................................. 4,102
-----------
Total Assets............................................... 41,671,958
-----------
Liabilities
Payable to Custodian Bank -- Note D.......................... 346,225
Payable for Investments Purchased............................ 214,938
Payable for Investment Advisory Fees -- Note B............... 14,758
Payable for Custodian Fees -- Note D......................... 14,750
Payable for Administrative Fees -- Note C.................... 12,279
Payable for Portfolio Shares Redeemed........................ 2,111
Payable for Distribution and Service Fees -- Note E.......... 1,807
Payable for Trustees' Fees -- Note F......................... 150
Other Liabilities............................................ 28,057
-----------
Total Liabilities.......................................... 635,075
-----------
Net Assets................................................... $41,036,883
===========
Net Assets Consist of:
Paid in Capital.............................................. $29,507,615
Accumulated Net Realized Gain................................ 5,564,479
Unrealized Appreciation...................................... 5,964,789
-----------
Net Assets................................................... $41,036,883
===========
Institutional Class Shares
Net Assets................................................... $38,269,590
===========
Net Asset Value, Offering and Redemption Price Per Share
2,689,024 shares outstanding (Unlimited authorization,
no par value).............................................. $ 14.23
===========
Institutional Service Class Shares
Net Assets................................................... $ 2,767,293
===========
Net Asset Value, Offering and Redemption Price Per Share
195,635 shares outstanding (Unlimited authorization,
no par value).............................................. $ 14.15
===========
The accompanying notes are an integral part of the financial statements.
11
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
FOR THE YEAR ENDED APRIL 30, 2000
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Investment Income
Dividends........................................................ $ 375,437
Interest......................................................... 130,794
Less Foreign Taxes Withheld...................................... (31,114)
----------
Total Income................................................... 475,117
----------
Expenses
Investment Advisory Fees -- Note B............................... 253,648
Administrative Fees -- Note C.................................... 143,476
Custodian Fees -- Note D......................................... 46,694
Printing Fees.................................................... 32,306
Filing and Registration Fees..................................... 24,417
Distribution and Service Fees -- Note E.......................... 18,096
Audit Fees....................................................... 17,788
Trustees' Fees -- Note F......................................... 3,395
Legal Fees....................................................... 1,721
Amortization of Organization Expense -- Note A................... 737
Other Expenses................................................... 51,593
Investment Advisory Fees Waived -- Note B........................ (47,760)
----------
Net Expenses Before Expense Offset............................. 546,111
Expense Offset -- Note A......................................... (8,323)
----------
Net Expenses After Expense Offset.............................. 537,788
----------
Net Investment Loss.............................................. (62,671)
----------
Net Realized Gain (Loss) on:
Investments.................................................... 8,700,615
Foreign Currency Transactions.................................. (11,387)
----------
Net Realized Gain on Investments and Foreign Currency
Transactions.................................................... 8,689,228
----------
Net Change in Unrealized Appreciation (Depreciation) on:
Investments.................................................... (2,803,034)
Foreign Currency Translations.................................. (3,031)
----------
Net Change in Unrealized Appreciation (Depreciation)............. (2,806,065)
----------
Net Gain on Investments and Foreign Currency..................... 5,883,163
----------
Net Increase in Net Assets Resulting From Operations............. $ 5,820,492
==========
The accompanying notes are an integral part of the financial statements.
12
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Year
Ended Ended
April 30, April 30,
2000 1999
------------ -----------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income Gain (Loss)................................. $ (62,671) $ 27,713
Net Realized Gain................................................. 8,689,228 176,881
Net Change in Unrealized Appreciation (Depreciation).............. (2,806,065) 1,915,161
------------ ------------
Net Increase in Net Assets Resulting from Operations.............. 5,820,492 2,119,755
------------ ------------
Distributions:
Net Investment Income:
Institutional Class............................................. -- (112,247)
Institutional Service Class..................................... -- (64,417)
Net Realized Gain:
Institutional Class............................................. (2,207,890) (379,404)
Institutional Service Class..................................... (714,992) (328,833)
------------ ------------
Total Distributions............................................... (2,922,882) (884,901)
------------ ------------
Capital Share Transactions: (Note I)
Institutional Class:
Issued............................................................ 29,035,824 9,476,029
In Lieu of Cash Distributions..................................... 1,186,008 245,807
Redeemed.......................................................... (15,111,036) (21,920,546)
------------ ------------
Net Increase (Decrease) from Institutional Class Shares........... 15,110,796 (12,198,710)
------------ ------------
Institutional Service Class:
Issued............................................................ 2,156,580 12,724,045
In Lieu of Cash Distributions..................................... 714,992 393,250
Redeemed.......................................................... (11,240,266) (10,303,117)
------------ ------------
Net Increase (Decrease) from Institutional Service Class Shares... (8,368,694) 2,814,178
------------ ------------
Net Increase (Decrease) from Capital Share Transactions........... 6,742,102 (9,384,532)
------------ ------------
Total Increase (Decrease)....................................... 9,639,712 (8,149,678)
------------ ------------
Net Assets:
Beginning of Year................................................. 31,397,171 39,546,849
------------ ------------
End of Period (including undistributed net investment income (loss)
of $0 and $(33,224), respectively).............................. $ 41,036,883 $ 31,397,171
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
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--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Institutional Class
------------------------------------------------------------
Years Ended April 30,
------------------------------------------------------------
2000++ 1999++ 1998 1997 1996
--------- --------- --------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 12.85 $ 12.29 $ 10.65 $ 10.27 $ 9.50
---------- --------- --------- ---------- -----------
Income from Investment Operations
Net Investment Income (Loss)......... (0.01) 0.03 0.07 0.06 0.07
Net Realized and Unrealized
Gain............................... 2.59 0.82 2.02 0.42 0.75
---------- --------- --------- ---------- -----------
Total from Investment Operations..... 2.58 0.85 2.09 0.48 0.82
---------- --------- --------- ---------- -----------
Distributions
Net Investment Income................ -- (0.07) (0.04) (0.01) --
In Excess of Net Investment Income... -- -- -- -- (0.03)
Net Realized Gain.................... (1.20) (0.22) (0.41) (0.09) (0.02)
---------- --------- --------- ---------- -----------
Total Distributions.................. (1.20) (0.29) (0.45) (0.10) (0.05)
---------- --------- --------- ---------- -----------
Net Asset Value, End of Period.......... $ 14.23 $ 12.85 $ 12.29 $ 10.65 $ 10.27
========== ========= ========= ========== ===========
Total Return+........................... 20.07% 7.17% 20.39% 4.67% 8.67%
========== ========= ========= ========== ===========
Ratios and Supplemental Data
Net Assets, End of Period
(Thousands)........................ $ 38,270 $ 21,006 $ 32,296 $ 28,818 $ 8,592
Ratio of Expenses to Average
Net Assets......................... 1.56% 1.50% 1.50% 1.50% 1.45%
Ratio of Net Investment Income
(Loss) to Average Net Assets....... (0.11)% 0.21% 0.60% 0.68% 0.88%
Portfolio Turnover Rate.............. 85% 48% 80% 47% 59%
</TABLE>
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser during the periods indicated.
++ Per share amounts are based on average outstanding shares.
The accompanying notes are an integral part of the financial statements.
14
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--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Institutional Service Class
------------------------------------------------------------
December 31,
Years Ended April 30, 1996***
----------------------------------------- April 30, to
2000++ 1999++ 1998 1997
----------- ------------ --------- --------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period........................... $ 12.81 $ 12.26 $ 10.65 $ 10.53
----------- ------------ --------- --------------
Income from Investment Operations
Net Investment Income (Loss)........ (0.07) (0.01) 0.04 0.01
Net Realized and Unrealized
Gain.............................. 2.61 0.82 2.02 0.11
----------- ------------ --------- --------------
Total from Investment
Operations........................ 2.54 0.81 2.06 0.12
----------- ------------ --------- --------------
Distributions
Net Investment Income............... -- (0.04) (0.04) --
Net Realized Gain................... (1.20) (0.22) (0.41) --
----------- ------------ --------- --------------
Total Distributions................. (1.20) (0.26) (0.45) --
----------- ------------ --------- --------------
Net Asset Value, End of Period........ $ 14.15 $ 12.81 $ 12.26 $ 10.65
----------- ------------ --------- --------------
Total Return........................... 19.81%+ 6.90%+ 20.11%+ 1.14%**
----------- ------------ --------- --------------
Ratios and Supplemental Data
Net Assets, End of Period (Thousands).. $ 2,767 $ 10,391 $ 7,251 $ 3,920
Ratio of Expenses to Average Net Assets 1.83% 1.75% 1.75% 1.76%*
Ratio of Net Investment Income (Loss)
to Average Net Assets............... (0.48)% (0.12)% 0.29% 0.59%*
Portfolio Turnover Rate................ 85% 48% 80% 47%
</TABLE>
* Annualized
** Not Annualized
*** Inception of Institutional Service Class Shares.
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser during the periods indicated.
++ Per share amounts are based on average outstanding shares.
The accompanying notes are an integral part of the financial statements.
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UAM FUNDS MJI INTERNATIONAL EQUITY 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 MJI International Equity 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 Portfolio currently offers 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 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 maximum total return, including both capital appreciation and current
income, by investing primarily in the common stocks of companies based outside
of the United States.
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 sales 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 quoted on such day. Securities quoted in foreign currencies are
translated into U.S. dollars at the current exchange rate. The converted
value is based upon the bid price of the foreign currency against U.S.
dollars quoted by a pricing vendor. 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
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
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and to distribute all of its taxable income. Accordingly, no provision for
Federal income taxes is required in the financial statements.
The Portfolio may be subject to taxes imposed by countries in which it
invests. Such taxes are generally based on either income or gains earned or
repatriated. The Portfolio accrues and applies such taxes to net investment
income, net realized gains and net unrealized gains as income and/or
capital gains are earned.
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 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. Foreign Currency Translation: The books and records of the
Portfolio are maintained in U.S. dollars. Investment securities and other
assets and liabilities denominated in a foreign currency are translated
into U.S. dollars on the date of valuation. The Portfolio does not isolate
that portion of realized or unrealized gains and losses resulting from
changes in the foreign exchange rate from fluctuations arising from changes
in the market prices of the securities. These gains and losses are included
in net realized and unrealized gains and losses on investments on the
statement of operations. Net realized and unrealized gains and losses on
foreign currency transactions represent net foreign exchange gains or
losses from forward foreign currency exchange contracts, disposition of
foreign currencies, currency gains or losses realized between trade and
settlement dates on securities transactions and the difference between the
amount of the investment income and foreign withholding taxes receivable
recorded on the Portfolio's books and the U.S. dollar equivalent amounts
actually received or paid.
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
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5. Forward Foreign Currency Exchange Contracts: The Portfolio may
enter into forward foreign currency exchange contracts to hedge the value
of securities held and related receivables and payables against changes in
future foreign exchange rates. A forward currency contract is an agreement
between two parties to buy and sell currency at a set price on a future
date. The market value of the contract will fluctuate with changes in
currency exchange rates. The contract is marked-to-market daily using the
current forward rate and the change in market value is recorded by the
Portfolio as unrealized gain or loss. The Portfolio recognizes realized
gains or losses when the contract is closed, equal to the difference
between the value of the contract at the time it was opened and the value
at the time it was closed. Risks may arise from the unanticipated movements
in the value of a foreign currency relative to the U.S. dollar. Risks may
also arise upon entering into these contracts from the potential inability
of counterparties to meet the terms of their contracts and are generally
limited to the amount of unrealized gain on the contracts, if any, at the
date of default.
6. Distributions to Shareholders: The Portfolio will distribute
substantially all of its net investment income annually. 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 for
foreign currency transactions, deferred organization costs and the timing
of the recognition of gains or losses on investments.
Permanent book and tax differences, due to net operating losses and
realized exchange gain (loss), resulted in reclassifications of $95,895 to
increase undistributed net investment income and $95,895 to decrease
accumulated net investment gain.
Permanent book-tax differences, 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.
7. Organization Costs: Costs incurred by the Portfolio in
connection with its organization have been deferred and are being amortized
on a straight-line basis over a five-year period. Any costs incurred in the
organization of new funds are expensed as incurred.
8. 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
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
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of investment securities are based on the specific identification method.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities are recorded as soon as the Portfolio is
informed of the ex-dividend date. Interest income is recognized on the
accrual basis. Most expenses of the UAM Funds can be directly attributed to
a particular portfolio. Expenses that cannot be directly attributed to a
portfolio or share class 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 are shown gross of expense offsets, if
any, for custodian balance credits.
B. Investment Advisory Services: Under the terms of an investment
advisory agreement, Murray Johnstone International Ltd., (the "Adviser"), a
subsidiary of United Asset Management Corporation ("UAM"), provides investment
advisory services to the Portfolio at a fee calculated at an annual rate of
0.75% of average daily net assets for the month. The Adviser has voluntarily
agreed to waive a portion of its advisory fees and to assume expenses, if
necessary, in order to keep the Portfolio's total annual operating expenses,
excluding interest expense and after the effect of expense offset arrangements,
from exceeding 1.50% and 1.75% of average daily net assets of the Portfolio's
Institutional Class Shares and Institutional Service Class Shares, respectively.
C. 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 Serivces ("SEI"), a wholly-owned
subsidiary of SEI Investments Company, DST Systems, Inc. ("DST"), and UAM
Shareholder Service Center, ("UAMSSC") affiliate of UAM, to assist in providing
certain services to the Portfolio.
Pursuant to the Agreement, the Portfolio pays the Administrator 0.093% per
annum of the average daily net assets of the Portfolio, an annual base fee of
$94,250, and a fee based on the number of active shareholder accounts.
For the year ended April 30, 2000, the Administrator was paid $143,476, of
which $25,006 was paid to SEI for their services, $27,144 to DST for their
services, and $13,982 to UAMSSC for their services.
Prior to November 1, 1999, Chase Global Fund Serivces Company ("CGFSC")
served as the portfolio's sub-administrator. For its services CGFSC received
$36,166.
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
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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.
The Portfolio has adopted Distribution and Service Plans (the "Plans")
on behalf of the Service Class Shares pursuant to Rule 12b-1 under the
Investment Company Act of 1940. Under the Plans, the Service Class Shares may
not incur distribution and service fees which exceed an annual rate of 0.75% of
the net assets of that class of shares, however, the Board has currently limited
aggregate payments under the Plans to 0.50% per annum of the Portfolio's net
assets. The Portfolio's Service Class Shares are not currently making payments
for distribution fees, however the Portfolio does pay service fees at an annual
rate of 0.25% of the average daily value of Service Class Shares owned by
clients of the Service Agents.
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.
G. Purchases and Sales: For the year ended April 30, 2000, the Portfolio
made purchases of $28,095,724 and sales of $26,455,918 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. During the year ended April
30, 2000, the Portfolio had no borrowings under the agreement.
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
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I. Capital Share Transactions: Transactions in capital shares for the
Portfolio, by class, were as follows:
<TABLE>
<CAPTION>
Institutional Institutional Service
Class Shares Class Shares
------------------------ ------------------------
Year Year Year Year
Ended Ended Ended Ended
April 30, April 30, April 30, April 30,
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Shares Issued........................... 2,068,798 796,824 153,469 1,048,325
In Lieu of Cash Distributions........... 83,229 21,154 50,423 33,930
Shares Redeemed......................... (1,098,314) (1,811,036) (819,733) (862,454)
---------- ---------- ---------- ----------
Net Increase (Decrease) from
Capital Share Transactions............ 1,053,713 (993,058) (615,841) 219,801
========== ========== ========== ==========
</TABLE>
J. Other: At April 30, 2000 the percentage of total shares outstanding
held by record shareholders each owning 10% or greater of the aggregate total
shares outstanding for each class of shares was as follows:
No. of % Ownership
Shareholders of Share Class
------------ --------------
Institutional Class Shares............... 2 78%
Service Class Shares..................... 4 100%
At April 30, 2000, the net assets of the Portfolio were substantially
comprised of foreign denominated securities and currency. Changes in currency
exchange rates will affect the value of and investment income from such
securities and currency.
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of U.S. dollar
denominated transactions as a result of, among other factors, the possibly lower
level of governmental supervision and regulation of foreign securities markets
and the possibility of political or economic instability.
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
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REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees of
UAM Funds Trust and Shareholders of
MJI International Equity 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 MJI International Equity
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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Federal Income Tax Information: (Unaudited)
The MJI International Equity Portfolio hereby designates $1,871,326 as a
long-term capital gain dividend for the purpose of the dividend paid deduction
on its federal income tax return.
For the fiscal year ended April 30, 2000, gross income derived from sources
within foreign countries amounted to $376,375 for the Portfolio.
23
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
UAM FUNDS MJI International equity Portfolio
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
UAM Funds
P.O. Box 219081
Kansas City, MO 64121
(toll free)
1-877-UAM-LINK (826-5465)
www.uam.com
Investment Adviser
Murray Johnstone International Ltd.
7 West Nile Street
Glasgow, Scotland G12PX
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
-------------------------------
