<PAGE>
UAM Funds
Funds for the Informed Investor/sm/
The McKee Portfolios
Semi-Annual Report April 30, 2000
UAM (R)
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
APRIL 30, 2000
TABLE OF CONTENTS
------------------------------------------------------------------
<TABLE>
<S> <C>
Shareholders' Letter.......................................... 1
Portfolios of Investments
U.S. Government.......................................... 11
Domestic Equity.......................................... 15
International Equity..................................... 20
Small Cap Equity......................................... 27
Statements of Assets and Liabilities.......................... 35
Statements of Operations...................................... 36
Statements of Changes in Net Assets
U.S. Government.......................................... 37
Domestic Equity.......................................... 38
International Equity..................................... 39
Small Cap Equity......................................... 40
Financial Highlights
U.S. Government.......................................... 41
Domestic Equity.......................................... 42
International Equity..................................... 43
Small Cap Equity......................................... 44
Notes to Financial Statements................................. 45
</TABLE>
------------------------------------------------------------------
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
April 30, 2000
Dear Shareholders:
McKee U.S. Government Bond Portfolio
It was bad news/good news during the six months ended April 30, 2000, the broad
market was buffeted, extending last year's bruising. But a strong Treasury rally
in February and March hinted that the market's punishment may be ending. The
McKee U.S. Government Bond Portfolio returned 0.73 percent for the period.
Economic and Market Perspective
The market experienced unusual volatility during the six months in response to a
variety of developments. The economy continued to grow at a blistering pace, an
annualized rate of 7.3 percent in the fourth quarter of 1999 and 5.4 percent in
the first quarter of 2000. Higher energy costs and rising employment costs
raised the possibility of increased inflation ahead. The Federal Reserve
increased short-term interest rates three times during the six months. Rising
corporate acquisition and stock margin debt also concerned investors, as did the
possibility of Fannie Mae and Freddie Mac mortgage securities losing their
implicit Government guarantee.
Following the Treasury Department's announcement of a buyback program for 30-
year bonds, the yield curve inverted dramatically, with yields on short and mid-
term Treasuries exceeding those on long-term bonds. The spreads between the
yields on Treasuries and other market sectors also widened substantially.
Corporate bond spreads, in particular, widened to levels not seen since January
1991, when the U.S. economy was in recession.
Performance
The benchmark Lehman Government Bond Index, benefiting from its high proportion
of Treasury bonds during February's powerful rally, returned 2.25 percent for
the six-month period. The Portfolio's lower return is principally attributable
to two factors. First, the Portfolio's more extensive holdings in non-Treasury
sectors hurt performance, although they position the Portfolio well for the
future. But for the six-month period, governments decisively outperformed all
other sectors. The Portfolio's holdings of corporate bonds took a particular
toll on performance. Second, the inversion of the yield curve hurt performance
compared to the benchmark index. The Portfolio's higher proportion of medium-
term Treasuries penalized results since they underperformed longer-term bonds in
the period.
Portfolio duration had only a small effect on relative results. In December, we
shortened duration slightly, essentially matching the duration of the benchmark
index. Likewise, security selection had only minimal effect on relative results
during the period.
1
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
Portfolio Structure
We seized opportunities presented by the substantial Treasury rally to take
advantage of some of the widest yield spreads in almost a decade. In April, we
increased investments in non-Treasury sectors, primarily corporate bonds and
mortgages. At period end, the Portfolio was composed of 41 percent Treasuries,
18 percent corporates, 13 percent mortgages, 23 percent government agency and
other non-Treasury securities, 2 percent asset-backed securities and 3 percent
cash.
Largest Holdings By Security
At April 30, 2000
Percent of Yield to
Issuer Coupon Maturity Portfolio Maturity
------ ---------- -------- --------- --------
US Treasury Note............ 5.875% 11/30/01 9.50% 6.72%
FNMA Benchmark Agency....... 6.625% 09/15/09 9.20% 7.37%
FNMA 30YR Pass-Through...... 7.500% 12/01/23 8.20% 7.77%
US Treasury Note............ 5.750% 04/30/03 7.70% 6.64%
US Treasury Strip........... 0.000% 05/15/17 7.20% 6.32%
FNMA Benchmark Agency....... 5.750% 02/15/08 6.10% 7.39%
FNMA Benchmark Agency....... 5.625% 03/15/01 5.50% 6.77%
US Treasury Bonds........... 8.500% 02/15/20 3.50% 6.32%
US Treasury Notes........... 4.875% 03/31/01 3.20% 6.62%
US Treasury Bonds........... 10.625% 08/15/15 3.10% 6.44%
Outlook
Given the pace of economic growth and heightened concerns about inflation, the
Federal Reserve is widely expected to increase short-term interest rates at
least once or twice more this year. We expect less than the full percentage
point aggregate increase that many foresee, since we anticipate some further
moderation of the economy's rate of growth later in the year.
In the absence of a continued, pronounced sell-off in the equity market, we
expect the inversion of two-year and 30-year Treasury yields to persist for the
remainder of the year. We do not believe, however, that the inversion will
become more severe. The yield curve should slowly revert to a more normal shape
as the Federal Reserve's interest rate hikes take effect and economic growth
moderates. These developments should be good news for the Portfolio and the
entire bond market.
McKee Domestic Equity Portfolio
The Portfolio returned 2.68 percent for the six months ended April 30, 2000, in
a volatile market that was quick to punish even industry leaders seen as not
meeting nervously high expectations.
Economic and Market Perspective
The period saw rapid economic growth, rising corporate earnings and a stronger
2
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
dollar, along with rising interest rates, a collapse in many of the more
aggressive technology stocks, and extreme market fluctuations.
The volatility was especially high after the New Year. April 2000 was the NASDAQ
exchange's most volatile month ever, surpassing even October 1987. January and
March 2000 also rank among the five most volatile months in NASDAQ history.
Despite widespread recent weakness in the technology sector, "new economy"
stocks still dramatically outperformed "old economy" issues. For example, in the
first four months of 2000, when technology shares suffered the most, the Lipper
Science & Technology Index returned 4.7 percent while the S&P 500 Index was
essentially flat and the Dow Jones Industrial Index had a negative return of
nearly 5 percent.
The divergence between "new economy" and "old economy" stocks is primarily
attributable to two factors--technology companies' faster earnings growth
(approximately 35 percent, on average in 1999, with a similar rate expected in
2000) and technology stocks' perceived immunity to the higher interest rates
that punished "old economy" stocks.
Performance
A large portion of the Portfolio's return for the period came from the
technology sector, which was modestly overweighted and generated strong relative
performance. Weaker performance in the consumer staples, financials and health
care sectors of the Portfolio, however, partially offset the strength in
technology. The Portfolio's return for the six months trailed the S&P 500 Index,
which returned 7.20 percent.
Several individual technology issues contributed substantially to performance.
Software developer, Oracle Corporation, exemplified the sector's power. As a
major provider of software for e-commerce, Oracle should continue to benefit
from the explosive growth in Internet use. The company is also positioned for a
shift to wireless Internet connections. Several other leading Internet and e-
commerce suppliers represented in the Portfolio also performed well. Network
systems provider Cisco Systems and chip maker Intel, for example, had notably
high returns for the period. On the other hand, the legal challenge to
Microsoft, one of the Portfolio's largest holdings during the period, had a
dramatically negative effect on the stock's price and highlighted the volatility
of the sector. Other sectors were not immune from volatility, however. Bristol
Myers Squibb, in health care, and Proctor and Gamble, in consumer staples,
suffered sharp price declines during the period.
Portfolio Structure
The Portfolio is broadly diversified. As of April 30, 2000, holdings in the
communications services, technology and health care sectors were modestly larger
than those of the benchmark index. The Portfolio was comparatively underweighted
in utilities, consumer cyclicals and consumer staples.
3
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
By industry, the Portfolio had more weight than the benchmark index in
diversified financial services, major pharmaceuticals and telephone services. It
was underweighted in the electricity, natural gas and data processing services
industries. At April 30, 2000 the Portfolio held 98 stocks.
Largest Holdings By Industry
Percent of Net Assets at April 30, 2000
Computers & Services............................................... 25.30%
Telephones & Telecommunication..................................... 9.50%
Pharmaceuticals.................................................... 9.30%
Retail............................................................. 6.70%
Financial Services................................................. 5.70%
Communications Equipment........................................... 5.00%
Consumer Durables.................................................. 4.70%
Insurance.......................................................... 4.00%
Banks.............................................................. 3.80%
Food, Beverage & Tobacco........................................... 3.20%
Largest Holdings By Company
Percent of Net Assets at April 30, 2000
General Electric................................................... 4.73%
Intel.............................................................. 4.70%
Cisco Systems...................................................... 4.46%
Microsoft.......................................................... 3.28%
Oracle............................................................. 2.75%
Wal-Mart........................................................... 2.49%
Exxon Mobil........................................................ 2.30%
Citigroup.......................................................... 2.24%
Merck.............................................................. 1.97%
EMC................................................................ 1.90%
Outlook
Although the next few months could bring substantial market volatility and sharp
industry rotation, we are anticipating a respectable, but not spectacular market
in the year ahead. Our forecast is based in large part on a still moderate
inflation rate, between 2 and 3 percent, and corporate earnings growth of at
least 12 to 15 percent this year. Such an environment is particularly supportive
of stocks with superior growth rates since they benefit both from their lower
cost of capital and a market setting in which earnings expansion is likely to be
richly rewarded.
McKee International Equity Portfolio
The Portfolio continued its record of strong performance, returning 11.33
percent for the six months ended April 30, 2000. The results were well ahead of
those for the benchmark EAFE Index.
4
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
Economic and Market Perspective
The global economy has been expanding at the fastest rate since 1988. Economic
growth in Europe and non-Japanese Asia has been better than expected, and Latin
America has begun to emerge from its recent crises. Japan, though, has remained
mired in a protracted recession. On the inflation side, results have generally
been excellent, and we expect inflation to remain under firm control in most
countries for the foreseeable future.
With the exception of Belgium, Austria and the U.K., European equity markets
performed well during the six-month period. Scandinavian markets were
exceptional performers. Latin American markets matched Europe's strong showing.
Asian markets, continuing their recovery from the financial crisis two years
ago, produced more modest returns. Even the Japanese market produced a positive
return for the period, despite ongoing economic weakness. A strengthening
dollar, reflecting the continued vigor of U.S. economic growth, reduced dollar-
denominated returns from both Europe and Japan.
Performance
The Portfolio's return of 11.33 percent for the six months ended April 30, 2000
was significantly higher than the EAFE Index, which returned 6.80 percent. The
principal reason for the difference was positive stock selection, although
country selection also contributed in a meaningful way.
The largest holding in the Portfolio, Nokia, which is based in Finland, was
responsible for the largest contribution to results. The world leader in
cellular telephone equipment, Nokia has both the preeminent brand and better
manufacturing capabilities than competitors. Moreover, the company is positioned
to benefit from cellular telephone's evolution to a wireless Internet device. In
addition, its substantial investment in next-generation technologies should
allow it to gain further market share.
Another large holding, Sweden's Ericsson, was also a top performer during the
period. Like Nokia, Ericsson should continue to benefit from the strong global
cellular telephone market. We expect improvements in the company's handset
business; and as the leader in wireless infrastructure equipment, we expect
Ericsson to be well positioned as the next-generation technologies are deployed.
Cost savings from a recent restructuring and an improving balance of business
lines should help Ericsson's competitive position.
Other major contributors to the Portfolio's performance during the period
include Philips Electronics, the Netherlands based consumer goods company, and
Alcatel, the French manufacturer of telephone equipment.
Not all companies in the telecom sector were gainers, though. Nippon Telephone &
Telegraph of Japan and Vodafone Airtouch of the U.K. were the Portfolio's
poorest performers. Holdings in the financial services sector also generally
underperformed, but we anticipate superior results from this group over the next
several years.
5
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
Portfolio Structure
The Portfolio continues to emphasize stocks with strong relative valuations and
the prospect for solid growth. We are focusing on companies showing upward
revisions in earnings estimates with the potential for high profitability and
reliable growth. This focus has resulted in an emphasis on technology,
telecommunications and media stocks compared to the benchmark index. We have
also recently made significant investments in health care and large
capitalization financial stocks. Utilities, basic industries and transportation
remain underweighted compared to the benchmark.
Europe and Japan accounted for approximately three-quarters of the Portfolio's
assets as of April 30, 2000. The Portfolio was widely diversified, including
investments in numerous other markets and a variety of industries. Compared to
the benchmark, the Portfolio was overweighted in Finland, Switzerland, and the
Netherlands at period end. It also held investments in Canada, Mexico, the
Philippines, Israel, and South Korea, countries that are not included in the
benchmark. The Portfolio was comparatively under-weighted in Asia and the
Pacific Basin. Although Japan and the U.K. represented the Portfolio's
individual largest country holdings, they were both underweighted compared to
the benchmark. At April 30, 2000, the Portfolio held stock in 116 companies,
representing 23 countries.
Largest Holdings By Country
Percent of Net Assets at April 30, 2000
Portfolio EAFE
--------- ----
Japan........................................... 22.60% 27.68%
United Kingdom.................................. 15.00% 20.19%
France.......................................... 12.20% 10.58%
Germany......................................... 9.30% 8.93%
Netherlands..................................... 7.70% 5.09%
Switzerland..................................... 6.60% 5.43%
Finland......................................... 5.00% 3.44%
Spain........................................... 3.40% 2.68%
Sweden.......................................... 3.30% 3.44%
Italy........................................... 2.00% 4.04%
Largest Holdings By Company
Percent of Net Assets at April 30, 2000
Nokia (Finland)................................................... 4.96%
Ericsson Series B (Sweden)........................................ 2.74%
Toyota Motor (Japan).............................................. 2.68%
Vodafone Airtouch (U.K.).......................................... 2.18%
BP Amoco (U.K.)................................................... 2.05%
Deutsche Telekom (Germany)........................................ 1.92%
Nippon Telephone & Telegraph (Japan).............................. 1.90%
Novartis, Registered (Switzerland)................................ 1.85%
Philips Electronics (Netherlands)................................. 1.67%
Axa (France)...................................................... 1.65%
6
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
Outlook
We believe that the performance potential for international investing is
decidedly positive. Long-term fundamentals are the healthiest in more than a
decade. Economic forecasts, already good, could improve for both Europe and non-
Japanese Asia, as well as for most of Latin America. Japan, still the weak link,
will probably remain in recession most of this year and may mount a modest
recovery in 2001. But a number of individual Japanese companies, particularly
world leaders in electronics and finance should have the potential to prosper
despite the local economic doldrums.
Strengthening global economic growth, coupled with sustained low inflation, has
produced an unusually attractive investment environment in which earnings
estimates are being raised on a widespread basis for both 2000 and 2001.
Corporate restructuring, stock buybacks and mergers and acquisitions may also
continue to support rising shareholder values in coming months.
McKee Small Cap Equity Portfolio
The Portfolio had a negative return of (5.91) percent for the six months ended
April 30, 2000, as investors continued to shun many segments of the small cap
marketplace.
Economic and Market Perspective
Concern about rising interest rates offset the benefit to investors of rapid
economic growth during the period. The market was extremely volatile, especially
in the latter half of the period. February was an excellent month, particularly
for technology and biotechnology stocks, but many of these issues suffered
massive declines in March.
Despite these declines, "new economy" stocks dramatically outperformed "old
economy" issues during the period. The divergence in performance is primarily
attributable to two factors--the faster growth of technology companies' earnings
(approximately 35 percent, on average in 1999, with a similar rate expected in
2000) and technology stocks' perceived immunity to the higher interest rates
that have punished "old economy" stocks.
Performance
Buoyed by "new economy" growth stocks, the broader small cap market rose
substantially. The benchmark Russell 2000 Index returned 18.72 percent for the
period, well ahead of the Portfolio and value-oriented stocks in general.
The producer durables and technology sectors produced the biggest contributions
to the Portfolio's performance, and a technology company, Project Software and
Development, made the largest individual contribution. The company, which
reported record revenues, provides software to industrial and Government clients
for streamlining management of maintenance, repair and operations. Cable Design
7
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
Technology, a Pittsburgh-based company that makes optical cables and connectors
increasingly demanded by the Internet's growth, also made a strong positive
contribution to results.
But technology, accounting for nearly a third of portfolio assets, was not an
automatic winner; approximately half of the companies in the sector hurt
returns. The weak performance of two of the Portfolio's most heavily represented
sectors during the period, financial services and consumer discretionary, offset
the gains from producer durables and technology. Lands' End, in the consumer
discretionary sector, was the weakest performer in the Portfolio for the period.
Electronics and computer services & software were the best performing
industries. Banks registered outside New York City had the weakest performance,
followed by the retail and biotechnology industries.
Portfolio Structure
Our small cap stock selection process continues to focus on issues with a
combination of low price-to-earnings ratios, upward earnings estimate revisions,
positive earnings surprises and improving profit margins.
Compared to the benchmark index, the Portfolio is overweighted in the technology
and producer durables sectors. It is underweighted in the materials & processing
and financial services sectors.
The Portfolio is widely diversified by industry, although it has an emphasis on
electronics, media, communications services and health care. Compared to the
benchmark, the Portfolio is underweighted in commercial services, medical
supplies, and retailing.
At April 30, 2000 the Portfolio held stocks in 205 companies.
Largest Holdings By Industry
Percent of Net Assets at April 30, 2000
Miscellaneous Business Services.................................... 14.40%
Semi-Conductors/Instruments........................................ 13.20%
Communications Equipment........................................... 8.10%
Pharmaceuticals.................................................... 5.90%
Banks.............................................................. 4.50%
Financial Services................................................. 4.40%
Insurance.......................................................... 4.00%
Machinery.......................................................... 4.00%
Testing Laboratories............................................... 4.00%
Telephones & Telecommunication..................................... 3.80%
8
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
Largest Holdings By Company
Percent of Net Assets at April 30, 2000
Mercury Interactive.................................................. 1.13%
Broadvision.......................................................... 1.06%
Amkor Technology..................................................... 1.02%
Millennium Pharmaceutical............................................ 1.02%
Cypress Semiconductor................................................ 1.01%
Flextronics International............................................ 0.97%
Sandisk.............................................................. 0.95%
LAM Research......................................................... 0.90%
Dallas Semiconductor................................................. 0.87%
Integrated Device Technology......................................... 0.83%
Outlook
Despite the likelihood of further volatility, our outlook is generally positive
for small cap stocks. We feel that this segment of the market is poised to
benefit from relatively attractive valuations and strong earnings growth in 2000
and 2001. While recent conditions have decidedly favored rapidly growing
technology companies, to the exclusion of most others, we believe investors will
return to fundamental considerations of value. The Portfolio is well positioned
to benefit from a broadening of the small cap market in the months ahead.
Yours truly,
/s/ James H. Hanes
James H. Hanes
Chairman and Chief Executive Officer
C.S. McKee & Company, Inc.
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.
9
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
Definition of the Comparative Indices
-------------------------------------
Lehman Government Bond Index is an unmanaged index of U.S. treasury bonds and
bonds issued by U.S. government agencies and quasi-federal corporation, and
corporate debt guaranteed by the U.S. government.
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.
NASDAQ Composite Index is a market capitalization, price only, unmanaged index
that tracks the performance of domestic common stocks traded on the regular
NASDAQ market as well as national market system traded foreign common stocks and
ADRs.
Russell 2000 Index is an unmanaged index comprised of 2,000 stocks of U.S.
companies with small 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.
10
<PAGE>
UAM FUNDS McKEE U.S. GOVERNMENT PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
CORPORATE OBLIGATIONS -- 17.9%
<TABLE>
<CAPTION>
Face
Amount Value
--------- ---------
<S> <C> <C>
AEROSPACE & DEFENSE -- 0.7%
Lockheed Martin
6.850%, 05/15/01.................................... $ 100,000 $ 98,875
---------
AUTOMOTIVE -- 0.7%
Delphi Auto Systems
6.500%, 05/01/09.................................... 105,000 92,137
---------
BANKS -- 0.5%
BankAmerica
5.875%, 02/15/09.................................... 65,000 57,281
First Union Institutional Capital
8.040%, 12/01/26.................................... 10,000 9,337
---------
66,618
---------
FINANCIAL SERVICES -- 5.6%
American Express Master Trust, Series 98-1 A
5.900%, 04/15/04.................................... 8,000 7,712
Associates Corporation of North America
6.250%, 11/01/08.................................... 151,000 135,900
Countrywide Capital I
8.000%, 12/15/26.................................... 200,000 182,000
EOP Operating LP
6.763%, 06/15/07.................................... 130,000 119,600
Ford Motor Credit
7.375%, 10/28/09.................................... 180,000 174,375
General Motors Acceptance Corporation
6.850%, 06/17/04.................................... 45,000 43,369
Lehman Brothers Holdings Senior Notes
7.375%, 05/15/04.................................... 16,000 15,640
Mellon Financial
6.875%, 03/01/03.................................... 60,000 58,800
---------
737,396
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
UAM FUNDS McKEE U.S. GOVERNMENT PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
CORPORATE OBLIGATIONS -- continued
<TABLE>
<CAPTION>
Face
Amount Value
--------- ---------
<S> <C> <C>
INDUSTRIAL -- 4.2%
News America Holdings
8.500%, 02/15/05.................................... $ 180,000 $ 180,450
Oakwood Mortgage Investors Series 1995-A, Class A2
6.500%, 09/15/20.................................... 843 829
Philip Morris
7.250%, 09/15/01.................................... 125,000 122,344
7.625%, 05/15/02.................................... 6,000 5,842
Phillips Petroleum
7.125%, 03/15/28.................................... 151,000 128,539
Xerox Capital Trust I
8.000%, 02/01/27.................................... 118,000 110,772
---------
548,776
---------
NATURAL RESOURCES -- 0.0%
USX
8.500%, 03/01/23.................................... 5,000 5,062
---------
REGIONAL AGENCIES -- 1.0%
Quebec Province
5.750%, 02/15/09.................................... 150,000 133,029
---------
RETAIL -- 1.8%
Penney (J.C.)
7.250%, 04/01/02.................................... 50,000 47,187
Raytheon
6.150%, 11/01/08.................................... 150,000 128,812
Tommy Hilfiger
6.500%, 06/01/03.................................... 80,000 63,900
---------
239,899
---------
UTILITIES -- 2.5%
Consolidated Edison, Series 97-B
6.450%, 12/01/07.................................... 331,000 304,934
Pacific Bell Telephone
6.250%, 03/01/05.................................... 10,000 9,490
Pacific Gas & Electric
5.875%, 10/01/05.................................... 10,000 9,125
Texas Utilities Electric
7.170%, 08/01/07.................................... 10,000 9,550
---------
333,099
---------
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
UAM FUNDS McKEE U.S. GOVERNMENT PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
CORPORATE OBLIGATIONS -- continued
<TABLE>
<CAPTION>
Face
Amount Value
----------- ----------
<S> <C> <C>
YANKEE BONDS -- 0.9%
Barrick Gold
7.500%, 05/01/07.................................. $ 110,000 $ 105,188
Province of Ontario
7.000%, 08/04/05.................................. 10,000 9,838
----------
115,026
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $2,549,646)................................. 2,369,917
----------
U.S.GOVERNMENT & AGENCY SECURITIES -- 76.1%
FEDERAL HOME LOAN MORTGAGE -- 1.2%
7.650%, 05/10/05.................................. 5,000 4,950
6.500%, 07/01/29.................................. 162,881 152,191
----------
157,141
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 31.5%
5.625%, 03/15/01.................................. 735,000 728,958
5.750%, 02/15/08.................................. 885,000 802,421
6.400%, 05/14/09.................................. 145,000 133,763
6.625%, 09/15/09.................................. 1,275,000 1,214,438
7.500%, 12/01/23.................................. 1,098,428 1,080,386
8.500%, 04/01/30.................................. 190,019 192,784
----------
4,152,750
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 2.5%
7.000%, 09/15/24.................................. 210,702 202,801
8.500%, 12/15/29.................................. 125,710 128,067
----------
330,868
----------
U.S.TREASURY BONDS -- 10.3%
10.750%, 08/15/05................................. 130,000 153,595
9.375%, 02/15/06.................................. 292,000 329,794
10.625%, 08/15/15................................. 290,000 410,292
8.500%, 02/15/20.................................. 373,000 465,288
----------
1,358,969
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
UAM FUNDS McKEE U.S. GOVERNMENT PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY SECURITIES -- continued
<TABLE>
<CAPTION>
Face
Amount Value
----------- -----------
<S> <C> <C>
U.S. TREASURY NOTES -- 23.3%
4.875%, 03/31/01........................................ $ 430,000 $ 423,860
5.875%, 11/30/01........................................ 1,258,000 1,242,577
5.750%, 04/30/03........................................ 1,050,000 1,025,525
5.625%, 05/15/08........................................ 405,000 385,001
-----------
3,076,963
-----------
U.S. TREASURY PRINCIPAL STRIPS -- 7.3%
(#)6.351%, 05/15/17....................................... 2,778,000 962,271
-----------
TOTAL U.S. GOVERNMENT & AGENCY SECURITIES
(Cost $10,317,073)...................................... 10,038,962
-----------
MORTGAGE OBLIGATIONS -- 2.2%
Advanta Mortgage Loan Trust, Series 94-1 A1
6.300%, 07/25/25........................................ 53,208 51,083
Contimortgage Home Equity Loan Trust Series 98-1 A5
6.430%, 04/15/16........................................ 9,000 8,657
Green Tree Financial Series 95-7 A4
6.700%, 10/15/26........................................ 1,465 1,464
World Financial Network Credit Card Series 96-B A
6.950%, 04/15/06........................................ 225,000 222,739
-----------
TOTAL MORTGAGE OBLIGATIONS
(Cost $287,541)......................................... 283,943
-----------
TOTAL INVESTMENTS -- 96.2%
(Cost $13,154,260) (a).................................. 12,692,822
-----------
OTHER ASSETS AND LIABILITIES, NET -- 3.8%................... 503,697
-----------
TOTAL NET ASSETS -- 100.0%.................................. $13,196,519
-----------
</TABLE>
# Effective yield as of April 30, 2000.
(a) The cost for federal income tax purposes was $13,154,260. At April 30, 2000,
net unrealized depreciation for all securities based on tax cost was
$461,438. This consisted of gross unrealized appreciation for all securities
of $17,807 and aggregate gross unrealized depreciation for all securities of
$479,245.
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
UAM FUNDS McKEE DOMESTIC EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS -- 99.7%
Shares Value
-------- ----------
AIR TRANSPORTATION -- 0.5%
FedEx*...................................... 4,450 $ 167,709
----------
AIRCRAFT -- 1.5%
Honeywell International..................... 4,400 246,400
United Technologies......................... 4,900 304,719
----------
551,119
----------
AUTOMOTIVE -- 1.4%
Ford Motor.................................. 4,450 243,359
General Motors.............................. 2,650 248,106
----------
491,465
----------
BANKS -- 3.8%
Bank of America............................. 9,200 450,800
Chase Manhattan............................. 4,250 306,266
FleetBoston Financial....................... 7,800 276,412
Wells Fargo................................. 8,050 330,553
----------
1,364,031
----------
BEAUTY PRODUCTS -- 0.7%
Procter & Gamble............................ 3,900 232,537
----------
CHEMICALS -- 1.0%
Dow Chemical................................ 1,450 163,850
E.I. DuPont de Nemours...................... 4,150 196,866
----------
360,716
----------
COMMUNICATIONS EQUIPMENT -- 5.0%
Lucent Technologies......................... 9,400 584,562
Motorola.................................... 2,250 267,891
Network Appliance*.......................... 1,600 118,300
Nortel Networks*............................ 4,650 526,612
Qualcomm*................................... 2,700 292,781
----------
1,790,146
----------
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
UAM FUNDS McKEE DOMESTIC EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
Shares Value
-------- ----------
COMPUTERS & SERVICES -- 25.3%
America Online*.............................. 8,200 $ 490,463
Cisco Systems*............................... 23,000 1,595,625
Dell Computer*............................... 8,050 403,506
EMC*......................................... 4,900 680,794
Hewlett-Packard.............................. 3,650 492,750
IBM.......................................... 6,200 692,075
Intel........................................ 13,250 1,680,266
Microsoft*................................... 16,800 1,171,800
Oracle*...................................... 12,300 982,462
Sun Microsystems*............................ 6,900 634,369
Yahoo!*...................................... 1,600 208,400
----------
9,032,510
----------
CONSUMER DURABLES -- 4.7%
General Electric............................. 10,750 1,690,437
----------
DIVERSIFIED -- 0.8%
Corning...................................... 1,450 286,375
----------
ELECTRICAL SERVICES -- 0.3%
Southern..................................... 4,800 119,700
----------
ENERGY -- 0.9%
Enron........................................ 1,000 69,688
FPL Group.................................... 2,650 119,747
Halliburton.................................. 2,850 125,934
----------
315,369
----------
ENTERTAINMENT -- 2.5%
AT&T Corp - Liberty Media Group*............. 1,950 97,378
Time Warner.................................. 4,200 377,737
Walt Disney.................................. 9,400 407,137
----------
882,252
----------
FINANCIAL SERVICES -- 5.7%
American Express............................. 2,000 300,125
AXA Financial................................ 3,000 97,875
Fannie Mae................................... 4,150 250,297
FMAC......................................... 4,050 186,047
Mellon Financial............................. 6,250 200,781
Merrill Lynch................................ 3,700 377,169
Morgan Stanley Dean Witter................... 5,850 448,987
PNC Bank..................................... 4,450 194,131
----------
2,055,412
----------
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
UAM FUNDS McKEE DOMESTIC EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
<TABLE>
<CAPTION>
Shares Value
--------- ------------
<S> <C> <C>
FOOD, BEVERAGE & TOBACCO -- 3.2%
Anheuser-Busch........................................ 3,550 $ 250,497
Coca-Cola............................................. 4,750 223,547
General Mills......................................... 3,500 127,312
Heinz (H.J)........................................... 3,000 102,000
PepsiCo............................................... 9,450 346,697
Sara Lee.............................................. 7,400 111,000
-----------
1,161,053
-----------
INSURANCE -- 4.0%
American International Group.......................... 5,750 630,703
Citigroup............................................. 13,450 799,434
-----------
1,430,137
-----------
MACHINERY -- 1.7%
Applied Materials*.................................... 4,200 427,613
Emerson Electric...................................... 3,000 164,625
-----------
592,238
-----------
MANUFACTURING -- 0.5%
Minnesota Mining & Manufacturing...................... 2,050 177,325
-----------
MEDIA-TV/RADIO/CABLE -- 0.5%
Comcast*.............................................. 4,800 192,300
-----------
MEDICAL PRODUCTS -- 1.9%
Johnson & Johnson..................................... 4,400 363,000
Medtronic............................................. 5,750 298,641
-----------
661,641
-----------
OIL & GAS -- 2.2%
Chevron............................................... 3,050 259,631
Royal Dutch Petroleum, New York Shares................ 6,250 358,594
Schlumberger.......................................... 2,000 153,125
-----------
771,350
-----------
PAPER & PAPER PRODUCTS -- 0.6%
Kimberly-Clark........................................ 1,800 104,513
Willamette Industries................................. 3,100 118,381
-----------
222,894
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
UAM FUNDS McKEE DOMESTIC EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
<TABLE>
<CAPTION>
Shares Value
--------- ---------
<S> <C> <C>
PETROLEUM REFINING -- 2.3%
Exxon Mobil.................................................. 10,600 $ 823,488
-----------
PHARMACEUTICAL -- 9.3%
Abbott Laboratories.......................................... 7,050 270,984
American Home Products....................................... 4,900 275,319
Biogen*...................................................... 1,200 70,500
Bristol-Myers Squibb......................................... 8,300 435,231
Eli Lilly.................................................... 5,000 386,562
Merck........................................................ 10,150 705,425
Pfizer....................................................... 15,900 669,787
Pharmacia.................................................... 4,600 229,713
Schering-Plough.............................................. 7,100 286,219
-----------
3,329,740
-----------
PRINTING & PUBLISHING -- 0.8%
Viacom*...................................................... 5,550 301,781
-----------
RETAIL -- 6.7%
Costco Wholesale*............................................ 2,700 145,969
Gap.......................................................... 4,975 182,831
Home Depot................................................... 8,700 487,744
Lowe's Companies............................................. 3,800 188,100
McDonald's................................................... 6,800 259,250
Tyco International........................................... 5,350 245,766
Wal-Mart Stores.............................................. 16,100 891,538
-----------
2,401,198
-----------
SEMI-CONDUCTORS/INSTRUMENTS -- 2.1%
E-Tek Dynamics*.............................................. 600 122,850
PMC-Sierra*.................................................. 700 134,313
Texas Instruments............................................ 3,000 488,625
-----------
745,788
-----------
STEEL & STEEL WORKS -- 0.3%
Alcoa........................................................ 1,350 87,581
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
UAM FUNDS McKEE DOMESTIC EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
<TABLE>
<CAPTION>
Shares Value
---------- ---------
<S> <C> <C>
TELEPHONES & TELECOMMUNICATION -- 9.5%
ALLTEL.................................................. 2,150 $ 143,244
AT&T.................................................... 10,875 507,727
Bell Atlantic........................................... 6,736 399,108
BellSouth............................................... 6,100 296,994
GTE..................................................... 4,050 274,388
MCI WorldCom*........................................... 8,850 402,122
Nextel Communications*.................................. 1,600 175,100
SBC Communications...................................... 13,031 570,921
Sprint.................................................. 4,500 276,750
Sprint PCS Group*....................................... 3,200 176,000
US West................................................. 2,500 177,969
-----------
3,400,323
-----------
TOTAL COMMON STOCKS
(Cost $32,026,116)................................. 35,638,615
-----------
</TABLE>
SHORT-TERM INVESTMENT -- 0.5%
<TABLE>
<CAPTION>
Face
Amount
------------
<S> <C> <C>
REPURCHASE AGREEMENT -- 0.5%
Chase Securities, Inc. 5.65%, dated 04/28/00, due 05/01/00,
to be repurchased at $195,092, collateralized by
$213,710 of a U.S. Treasury Note, valued at $195,004
(Cost $195,000)............................................... $ 195,000 195,000
----------
TOTAL INVESTMENTS -- 100.2%
(Cost $32,221,116) (a)........................................ 35,833,615
-----------
OTHER ASSETS AND LIABILITIES, NET -- (0.2%)............................. (75,891)
-----------
TOTAL NET ASSETS -- 100.0%.............................................. $35,757,724
===========
</TABLE>
* Non-Income Producing Security
(a) The cost for federal income tax purposes was appreciation for all
$32,221,116. At April 30, 2000, net unrealized securities based on tax cost
was $3,612,499. This appreciation for all consisted of aggregate gross
unrealized securities of $5,984,453 and aggregate gross of $2,371,954.
unrealized depreciation for all securities
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
UAM FUNDS McKEE INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS -- 98.2%
Shares Value
-------- ---------
AUSTRALIA -- 1.8%
News Corporation...................... 160,600 $ 2,037,102
Westpac Banking....................... 216,245 1,378,650
-----------
3,415,752
-----------
BELGIUM -- 0.5%
Fortis, Series B...................... 34,900 882,820
-----------
CANADA -- 1.9%
Alcan Aluminum........................ 27,266 887,867
Nortel Networks....................... 11,000 1,244,021
Seagram............................... 28,330 1,489,995
-----------
3,621,883
-----------
DENMARK -- 0.7%
Nordic Baltic Holdings................ 212,792 1,325,354
-----------
FINLAND -- 5.0%
Nokia................................. 163,420 9,393,020
-----------
FRANCE -- 12.3%
Alcatel............................... 12,521 2,908,372
Axa................................... 21,000 3,119,924
Banque National de Paris.............. 19,900 1,611,482
Canal Plus............................ 4,100 791,754
Cap Gemini............................ 3,100 609,939
Carrefour Supermarche................. 16,000 1,043,527
Coflexip.............................. 7,860 766,085
Equant*............................... 8,000 620,505
France Telecom........................ 12,800 1,984,450
ILOG ADR*............................. 6,400 230,400
L'Oreal............................... 1,800 1,223,157
LVMH.................................. 3,700 1,555,744
Sanofi-Synthelabo..................... 20,300 759,067
STMicroelectronics.................... 6,600 1,261,906
Total Fina Elf........................ 18,580 2,824,703
Vivendi............................... 18,400 1,823,549
-----------
23,134,564
-----------
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
UAM FUNDS McKEE INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
<TABLE>
<CAPTION>
Shares Value
--------- -----------
<S> <C> <C>
GERMANY -- 8.8%
Allianz................................................ 6,900 $ 2,661,786
BASF................................................... 16,900 731,995
Bayer.................................................. 47,350 1,964,622
Commerzbank............................................ 37,281 1,412,705
DaimlerChrysler........................................ 20,780 1,211,424
Deutsche Bank.......................................... 18,500 1,245,337
Deutsche Telekom....................................... 56,750 3,644,397
HypoVereinsbank........................................ 17,900 1,110,378
Siemens................................................ 18,600 2,749,807
------------
16,732,451
------------
HONG KONG -- 1.2%
HSBC Holdings.......................................... 199,600 2,229,566
------------
IRELAND -- 0.8%
Elan ADR*.............................................. 34,800 1,492,050
------------
ISRAEL -- 1.1%
M-Systems Flash Disk Pioneers*......................... 12,500 825,000
Teva Pharmaceuticals Industries ADR.................... 30,000 1,320,000
------------
2,145,000
------------
ITALY -- 2.0%
Enel*.................................................. 258,300 1,096,430
Telecom Italia......................................... 97,350 1,363,839
Telecom Italia Mobile.................................. 135,750 1,298,374
------------
3,758,643
------------
JAPAN -- 22.6%
Bank of Tokyo-Mitsubishi............................... 96,000 1,238,194
Canon.................................................. 21,000 959,845
Daiwa Bank............................................. 403,000 1,088,786
Daiwa Securities....................................... 80,000 1,221,318
East Japan Railway..................................... 200 1,184,308
Fujitsu................................................ 44,000 1,245,744
Hitachi................................................ 145,000 1,730,662
Ito-Yokado............................................. 38,000 2,774,056
Kao.................................................... 79,000 2,404,793
Matsushita Electric Industrial......................... 49,000 1,296,632
</TABLE>
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
UAM FUNDS McKEE INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
<TABLE>
<CAPTION>
Shares Value
-------- ---------
<S> <C> <C>
JAPAN -- continued
Mitsubishi............................................ 104,000 $ 904,515
Mitsui................................................ 59,000 437,259
Mitsui ADR*........................................... 3,900 575,250
Mitsui Marine and Fire Insurance...................... 140,000 615,285
NEC................................................... 64,000 1,740,933
Nintendo.............................................. 6,800 1,132,494
Nippon Telephone & Telegraph.......................... 290 3,595,485
Nomura Securities..................................... 69,000 1,736,492
NTT DoCoMo............................................ 20 668,024
Sanwa Bank............................................ 154,000 1,487,565
Softbank.............................................. 3,200 787,565
Softbank - New*....................................... 6,400 1,581,051
Sony.................................................. 12,000 1,377,868
Sony - New*........................................... 12,000 1,387,861
Sumitomo Bank......................................... 63,000 787,500
Takeda Chemical Industries............................ 24,000 1,578,831
Tokyo Electric Power.................................. 46,000 1,085,307
Toyota Motor.......................................... 102,000 5,067,913
Yamanouchi Pharmaceutical............................. 21,000 1,109,456
------------
42,800,992
------------
MEXICO -- 0.4%
Telefonos de Mexico ADR............................... 14,100 829,256
------------
NETHERLANDS -- 7.7%
Aegon................................................. 15,400 1,108,902
Ahold................................................. 28,800 672,900
Akzo Nobel............................................ 20,050 822,407
ASM Lithography Holding*.............................. 21,300 834,293
Heineken.............................................. 25,300 1,405,792
KPN................................................... 25,200 2,544,526
Philips Electronics................................... 70,680 3,159,245
Royal Dutch Petroleum ADR............................. 54,100 3,103,988
TNT Post Group........................................ 45,707 999,228
------------
14,651,281
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
UAM FUNDS McKEE INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
Shares Value
------ ---------
PHILIPPINES -- 0.4%
Philippine Long Distance Telephone............... 40,700 $ 729,956
----------
PORTUGAL -- 1.4%
Electricidade de Portugal........................ 39,000 692,739
Portugal Telecom................................. 178,000 1,989,460
----------
2,682,199
----------
SINGAPORE -- 0.5%
Singapore Airlines............................... 87,000 902,373
----------
SOUTH KOREA -- 0.5%
Samsung Electronic............................... 3,200 865,255
----------
SPAIN -- 3.4%
Banco Bilbao Vizcaya Argentaria.................. 128,700 1,758,492
Endesa........................................... 43,100 936,739
Repsol........................................... 48,415 992,278
Telefonica*...................................... 125,802 2,805,238
----------
6,492,747
----------
SWEDEN -- 3.3%
Ericsson, Series B............................... 58,100 5,189,011
Svenska Handlesbanken, Series A.................. 84,900 1,127,395
----------
6,316,406
----------
SWITZERLAND -- 6.6%
Nestle, Registered............................... 1,200 2,121,547
Novartis, Registered............................. 2,500 3,502,472
Roche Holding.................................... 150 1,571,096
Swiss Re......................................... 500 805,758
Swisscom......................................... 7,100 2,510,497
UBS.............................................. 8,200 2,014,830
----------
12,526,200
----------
TAIWAN -- 0.3%
Taiwan Semiconductor Manufacturing ADR*.......... 10,900 570,206
----------
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
UAM FUNDS McKEE INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
Shares Value
------ ----------
UNITED KINGDOM -- 15.0%
Arm Holdings*................................. 65,500 $ 666,395
Barclays...................................... 78,900 2,012,330
BP Amoco...................................... 451,100 3,885,290
British Sky Broadcasting...................... 55,400 1,355,312
British Telecommunications.................... 130,900 2,340,259
Cable & Wireless.............................. 34,000 561,386
Carlton Communications........................ 55,887 671,894
Diageo........................................ 173,017 1,396,122
Glaxo Wellcome................................ 89,600 2,757,030
Lloyds TSB Group.............................. 178,600 1,742,168
Marconi....................................... 102,600 1,277,321
Pearson....................................... 30,300 1,040,592
Psion......................................... 9,450 563,213
Reuters Group................................. 62,000 1,106,524
Scottish Power................................ 100,300 801,169
SmithKline Beecham............................ 152,000 2,074,122
Vodafone AirTouch............................. 903,912 4,134,857
-----------
28,385,984
-----------
TOTAL COMMON STOCKS
(Cost $157,876,432)...................... 185,883,958
-----------
PREFERRED STOCK -- 0.5%
GERMANY -- 0.5%
SAP* (Cost $1,261,582)........................ 1,680 990,112
-----------
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
UAM FUNDS McKEE INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WARRANT -- 0.0%
Shares Value
------ ---------
<S> <C> <C>
SINGAPORE -- 0.0%
Asia Pulp & Paper, expiring 07/07/00*
(Cost $0)....................................... 72,840 $ 12,519
------------
SHORT-TERM INVESTMENT -- 1.1%
<CAPTION>
Face
Amount
------
<S> <C> <C>
REPURCHASE AGREEMENT -- 1.1%
Chase Securities, Inc. 5.65%, dated 04/28/00, due 05/01/00,
to be repurchased at $2,003,943, collateralized by
$2,195,185 of a U.S. Treasury Note valued at
$2,003,044 (Cost $2,003,000)........................... $ 2,003,000 $ 2,003,000
------------
TOTAL INVESTMENTS -- 99.8%
(Cost $161,141,014) (a)................................ 188,889,589
------------
OTHER ASSETS AND LIABILITIES, NET -- 0.2%.................. 347,703
------------
TOTAL NET ASSETS -- 100.0%................................. $189,237,292
============
</TABLE>
* Non-Income Producing Security
ADR American Depositary Receipt
(a) The cost for federal income tax purposes was $161,141,014. At April 30,
2000, net unrealized appreciation for all securities based on tax cost
was $27,748,575. This consisted of aggregate gross unrealized
appreciation for all securities of $38,282,318 and aggregate gross
unrealized depreciation for all securities of $10,533,743.
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
UAM FUNDS McKEE INTERNATIONAL EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
At April 30, 2000 sector diversification of the Portfolio was as follows:
% of
Net
Sector Diversification (Unaudited) Assets Value
------ ------------
Airlines...................................... 0.5% $ 902,373
Automotive.................................... 3.3 6,279,337
Banking....................................... 12.4 23,570,533
Chemicals..................................... 1.8 3,519,024
Commercial Services........................... 1.0 1,823,549
Computers..................................... 2.5 4,698,894
Consumer Products............................. 1.9 3,627,949
Distribution/Wholesale........................ 1.0 1,917,025
Electrical Components & Equipment............. 2.4 4,612,385
Electronics................................... 4.0 7,496,095
Financial Services............................ 2.0 3,840,629
Food & Beverages.............................. 4.3 8,195,632
Forest Products & Paper....................... 0.0 12,519
Home Furnishings.............................. 2.1 4,062,361
Insurance..................................... 4.4 8,311,655
Manufacturing................................. 1.5 2,749,807
Media......................................... 4.5 8,493,173
Metals & Mining............................... 0.5 887,867
Office/Business Equipment..................... 0.5 959,845
Oil & Gas..................................... 6.1 11,572,343
Pharmaceuticals............................... 8.5 16,164,124
Retail........................................ 1.5 2,774,056
Semiconductors................................ 1.3 2,498,507
Software...................................... 1.9 3,589,128
Telecommunications............................ 14.1 26,674,385
Telephone..................................... 12.9 24,337,364
Toys/Games/Hobbies............................ 0.6 1,132,494
Transportation................................ 1.2 2,183,536
------ ------------
Total Investments........................ 98.7% $186,886,589
Repurchase Agreements......................... 1.1 2,003,000
Other Assets and Liabilities.................. 0.2 347,703
------ ------------
Net Assets............................... 100.0% $189,237,292
====== ============
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
UAM FUNDS McKEE SMALL CAP EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 99.5%
Shares Value
------ ---------
AIR TRANSPORTATION -- 0.3%
Alaska Airgroup*............................... 4,600 $ 132,250
---------
AIRCRAFT -- 0.2%
AAR............................................ 5,450 82,091
---------
AUTOMOTIVE -- 0.7%
SPX *.......................................... 1,300 142,837
TRW*........................................... 2,600 152,100
---------
294,937
BANKS -- 4.5%
AmSouth Bancorporation*........................ 16,420 239,116
Cullen/Frost Bankers........................... 11,700 288,844
Dime Bancorp*.................................. 12,100 226,875
MAF Bancorp*................................... 9,436 176,335
Peoples Heritage Financial Group*.............. 13,550 176,150
S&T Bancorp.................................... 11,550 202,125
UnionBanCal.................................... 9,400 260,262
Wilmington Trust............................... 5,550 255,994
---------
1,825,701
---------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 3.5%
Citadel Communications*........................ 4,850 189,453
Emmis Communications*.......................... 4,600 195,500
Entercom Communications*....................... 5,000 212,500
Getty Images*.................................. 4,900 148,838
Pegasus Communications*........................ 1,200 130,950
Price Communications*.......................... 10,100 204,525
True North Communications...................... 3,600 148,275
Westwood One*.................................. 5,950 210,481
---------
1,440,522
---------
BUILDING & CONSTRUCTION -- 1.0%
Cal Dive International*........................ 3,950 195,278
Toll Brothers*................................. 10,240 222,080
---------
417,358
---------
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
UAM FUNDS McKEE SMALL CAP EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
Shares Value
------ ---------
CAPITAL GOODS -- 0.3%
Ruddick.................................. 10,100 $ 115,519
---------
CHEMICALS -- 1.1%
Cytec Industries*........................ 4,900 147,612
Ferro*................................... 8,100 185,287
Solutia.................................. 9,800 133,525
---------
466,424
---------
COMMUNICATIONS EQUIPMENT -- 8.1%
Adaptive Broadband*...................... 4,000 130,000
Advanced Fibre Communications*........... 4,600 210,162
Anadigics*............................... 2,275 171,194
Andrew*.................................. 11,200 329,700
Aspect Communications*................... 5,100 181,050
C-Cube Microsystems*..................... 3,650 234,512
CTS...................................... 2,900 182,881
Digital Microwave*....................... 5,600 206,850
Harmonic*................................ 2,900 214,056
Nortel Networks*......................... 2,330 263,872
Polycom*................................. 2,600 205,725
Powertel*................................ 3,550 238,737
Sawtek*.................................. 4,300 205,594
Tekelec*................................. 3,100 108,500
Terayon Communication*................... 1,500 139,500
Titan*................................... 6,200 266,212
---------
3,288,545
---------
COMPUTERS & SERVICES -- 1.7%
Emulex*.................................. 2,500 113,437
SanDisk*................................. 4,200 384,825
Zebra Technologies*...................... 3,600 205,200
---------
703,462
---------
CONSUMER NON-DURABLES -- 0.3%
Valassis Communications*................. 3,200 109,000
---------
ELECTRICAL SERVICES -- 0.2%
Rare Medium Group*....................... 4,800 98,700
---------
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
UAM FUNDS McKEE SMALL CAP EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
Shares Value
------ ---------
ELECTRICAL TECHNOLOGY -- 1.2%
C&D Technologies*......................... 2,800 $ 180,425
KEMET*.................................... 4,100 305,450
---------
485,875
---------
ENERGY -- 2.9%
Energen*.................................. 14,600 267,362
New Jersey Resources...................... 6,200 249,550
Public Service Company of New Mexico...... 11,100 199,800
RGS Energy Group.......................... 13,700 321,950
Stone Energy*............................. 2,800 132,300
---------
1,170,962
---------
FINANCIAL SERVICES -- 4.4%
Federated Investors*...................... 9,950 281,087
First Ecom.com*........................... 17,100 228,712
Legg Mason*............................... 6,700 253,344
Metris.................................... 6,700 251,250
T. Rowe Price Associates.................. 5,500 209,687
The PMI Group............................. 6,400 310,000
Waddell & Reed Financial.................. 10,275 273,572
---------
1,807,652
---------
FOOD, BEVERAGE & TOBACCO -- 2.2%
Applebee's International.................. 6,400 233,200
Hain Food Group*.......................... 5,600 150,150
Quaker Oats............................... 4,600 299,862
Whole Foods Market*....................... 4,600 195,788
---------
879,000
---------
INDUSTRIAL -- 0.5%
Southdown*................................ 3,300 191,812
---------
INSURANCE -- 4.0%
Delphi Financial Group*................... 925 26,652
First American Financial.................. 14,350 221,528
Gallegher, Arthur J....................... 8,400 312,900
Horace Mann Educators..................... 13,700 199,506
MONY Group................................ 6,100 188,719
Nationwide Financial Services............. 6,800 189,550
Radian Group*............................. 6,350 323,453
Wellpoint Health Networks*................ 2,300 169,625
---------
1,631,933
---------
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
UAM FUNDS McKEE SMALL CAP EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
Shares Value
------ ---------
LUMBER & WOOD PRODUCTS -- 0.5%
Georgia-Pacific................................. 5,100 $ 187,425
---------
MACHINERY -- 4.0%
Applied Materials*.............................. 2,874 292,609
Black & Decker*................................. 6,300 264,994
Donaldson....................................... 4,100 95,325
Kulicke & Soffa Industries*..................... 3,300 258,431
Lam Research*................................... 7,950 364,706
Pentair......................................... 4,200 160,650
Varian Medical Systems*......................... 4,300 172,000
---------
1,608,715
---------
MANUFACTURING -- 1.1%
Cable Design Technologies*...................... 4,650 159,262
Mueller Industries*............................. 5,300 174,569
Simpson Manufacturing*.......................... 2,150 97,287
---------
431,118
---------
MEASURING DEVICES -- 2.3%
Credence Systems*............................... 800 114,200
Cymer*.......................................... 2,200 85,938
Kopin*.......................................... 3,600 278,775
LTX*............................................ 6,300 288,225
Waters*......................................... 1,800 170,550
---------
937,688
---------
MEDICAL PRODUCTS & SERVICES -- 1.6%
Coherent*....................................... 3,200 185,000
Human Genome Sciences*.......................... 3,150 241,172
Laser Vision Centers*........................... 12,400 50,375
LifePoint Hospitals*............................ 9,400 160,975
---------
637,522
---------
METALS -- 0.3%
RTI International Metals*....................... 10,500 110,906
---------
MISCELLANEOUS BUSINESS SERVICES -- 14.4%
Akamai Technologies*............................ 417 41,230
Allaire*........................................ 3,000 165,188
Artesyn Technologies*........................... 7,600 184,300
Aspect Development*............................. 3,050 210,831
BARRA*.......................................... 4,900 206,413
BroadVision*.................................... 9,800 430,588
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
UAM FUNDS McKEE SMALL CAP EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
Shares Value
------ ---------
Brooktrout*.................................... 8,100 $ 218,700
Cognex*........................................ 4,400 250,250
Documentum*.................................... 3,400 200,600
eLoyalty*...................................... 7,700 126,569
Factset Research Systems....................... 5,000 143,750
Go2Net*........................................ 2,250 133,875
HNC Software*.................................. 3,050 150,975
Hyperion Solutions*............................ 4,700 142,542
IDT*........................................... 9,700 306,763
InfoCure*...................................... 6,900 62,963
Informix*...................................... 20,700 227,700
ISS Group*..................................... 2,600 235,138
Mercator Software*............................. 1,100 40,494
Mercury Interactive*........................... 5,100 459,000
Micromuse*..................................... 2,400 235,500
MicroStrategy*................................. 3,600 93,150
Open Market*................................... 5,300 54,656
Peregrine Systems*............................. 3,900 93,844
Pilot Network Services*........................ 6,600 108,075
Proxicom*...................................... 4,600 157,263
RSA Security*.................................. 5,200 305,175
S1*............................................ 1,600 86,900
Sybase*........................................ 12,100 244,269
Verity*........................................ 5,000 162,188
VerticalNet*................................... 4,500 243,000
Wind River Systems*............................ 2,700 115,256
---------
5,837,145
---------
MISCELLANEOUS CONSUMER SERVICES -- 0.8%
Korn/Ferry International*...................... 5,000 132,500
Callaway Golf.................................. 12,600 209,475
---------
341,975
---------
MISCELLANEOUS MANUFACTURING -- 1.0%
Commscope*..................................... 5,500 261,250
Visual Networks*............................... 3,600 140,400
---------
401,650
---------
OFFICE FURNITURE & FIXTURES -- 0.4%
Lear*.......................................... 5,500 164,656
---------
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
UAM FUNDS McKEE SMALL CAP EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
Shares Value
------ ---------
OIL & GAS -- 2.9%
Apache......................................... 4,700 $ 227,656
Diamond Offshore Drilling...................... 5,600 225,750
Furniture Brands International*................ 8,200 153,238
Helmerich & Payne.............................. 9,000 281,813
Tosco.......................................... 8,500 272,531
---------
1,160,988
---------
PHARMACEUTICALS -- 5.9%
Alkermes*...................................... 2,000 106,500
Alpharma, Series A............................. 3,600 139,050
Andrx*......................................... 3,100 158,681
Biomatrix*..................................... 5,500 104,844
Biovail*....................................... 3,300 157,369
Gilead Sciences*............................... 4,400 238,425
IDEC Pharmaceuticals*.......................... 3,350 214,400
ImClone Systems*............................... 2,700 245,700
Ivax*.......................................... 5,650 154,669
Jones Pharma................................... 7,850 226,178
King Pharmaceuticals*.......................... 4,400 217,250
Medicis Pharmaceutical*........................ 4,650 203,437
Mylan Laboratories............................. 5,000 141,875
Owens & Minor Holding*......................... 8,550 102,600
---------
2,410,978
---------
PRINTING & PUBLISHING -- 0.3%
Scholastic*.................................... 2,550 119,053
---------
PRODUCER DURABLES -- 0.5%
Applied Power*................................. 7,200 206,100
---------
PROFESSIONAL SERVICES -- 0.6%
PerkinElmer.................................... 4,500 246,375
---------
RETAIL -- 2.9%
American Eagle Outfitters*..................... 6,400 108,800
BJ's Wholesale Club*........................... 4,190 148,483
Buffets*....................................... 11,600 113,825
La-Z-Boy....................................... 8,700 136,481
Lands' End*.................................... 2,855 120,802
Michaels Stores*............................... 2,400 94,650
Morton's Restaurant Group*..................... 5,250 99,750
Ross Stores.................................... 9,000 186,750
Wendy's International.......................... 7,600 170,050
---------
1,179,591
---------
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
UAM FUNDS McKEE SMALL CAP EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
Shares Value
------ ---------
SEMI-CONDUCTORS/INSTRUMENTS -- 13.2%
Alpha Industries*.................................. 5,800 $ 301,600
Amkor Technology*.................................. 6,800 416,075
ATMI*.............................................. 4,850 186,725
Burr-Brown*........................................ 4,800 327,000
Cree*.............................................. 2,100 305,550
Cypress Semiconductor*............................. 7,900 410,306
Dallas Semiconductor*.............................. 8,200 352,088
ESS Technology*.................................... 9,100 118,300
Flextronics International*......................... 5,635 395,859
Integrated Device Technology*...................... 7,000 336,438
International Rectifier*........................... 4,800 235,800
Lattice Semiconductor*............................. 3,100 208,863
Methode Electronics................................ 4,700 195,858
Micrel*............................................ 2,000 173,000
MRV Communications*................................ 2,300 158,556
QLogic*............................................ 1,750 175,547
Semtech*........................................... 4,300 293,206
TranSwitch*........................................ 2,950 259,784
TriQuint Semiconductor*............................ 3,200 329,000
Varian Semiconductor Equipment Associates*......... 2,700 181,575
---------
5,361,130
---------
SERVICES -- 0.9%
Bowne*............................................. 7,300 83,950
Dollar Thrifty Automotive*......................... 6,450 135,450
Modis Professional Services*....................... 10,250 77,516
Personnel Group of America*........................ 15,850 83,213
---------
380,129
---------
TELEPHONES & TELECOMMUNICATION -- 3.8%
Adelphia Business Solutions*....................... 4,100 143,500
ADTRAN*............................................ 3,200 216,200
Concentric Network*................................ 5,350 232,725
ITC Deltacom*...................................... 7,600 249,850
MastTec*........................................... 3,500 302,313
MGC Communications*................................ 4,900 240,100
RSL Communications*................................ 12,400 172,825
---------
1,557,513
---------
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
UAM FUNDS McKEE SMALL CAP EQUITY PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS -- continued
Shares Value
------ ---------
TESTING LABORATORIES -- 4.0%
Affymetrix*.................................... 1,400 $ 189,088
Celera Genomics*............................... 2,200 181,500
Celgene*....................................... 5,700 268,256
Cephalon*...................................... 4,600 258,750
Core Laboratories N.V.*........................ 6,750 191,531
Incyte Pharmaceuticals*........................ 600 46,200
Millennium Pharmaceutical*..................... 5,200 412,750
Transkaryotic Therapies*....................... 2,200 65,863
----------
1,613,938
----------
WHOLESALE -- 1.0%
W.W. Grainger*................................. 4,700 203,863
United Stationers *............................ 5,500 183,563
----------
387,426
----------
TOTAL COMMON STOCKS
(Cost $43,285,119)........................ 40,423,764
----------
SHORT-TERM INVESTMENT -- 0.6%
<TABLE>
<CAPTION>
Face
Amount
------
<S> <C> <C>
REPURCHASEAGREEMENT -- 0.6%
Chase Securities, Inc. 5.65%, dated 04/28/00, due 05/01/00,
to be repurchased at $234,110 collateralized by
$256,452 of a U.S. Treasury Note, valued at
$234,005 (Cost 234,000).................................. $ 234,000 234,000
-----------
TOTAL INVESTMENTS -- 100.1%
(Cost $43,519,119) (a)................................... 40,657,764
-----------
OTHER ASSETS AND LIABILITIES, NET -- (0.1%).................... (31,521)
-----------
TOTAL NET ASSETS -- 100.0%..................................... $40,626,243
</TABLE>
* Non-Income Producing Security
(a) The cost for federal income tax purposes was $43,519,119. At April 30,
2000, net unrealized depreciation for all securities based on tax cost
was $2,861,355. This consisted of aggregate gross unrealized
appreciation for all securities of $4,284,161 and aggregate gross
unrealized depreciation for all securities of $7,145,516.
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
McKee McKee McKee McKee
U.S. Domestic International Small Cap
Government Equity Equity Equity
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ------------- ------------
<S> <C> <C> <C> <C>
Assets
Investments, at Cost................................ $13,154,260 $32,221,116 $161,141,014 $ 43,519,119
=========== =========== ============= ============
Investments, at Value -- Note A..................... $12,692,822 $35,833,615 $188,889,589 $ 40,657,764
Cash................................................ -- 2,263 68,613 1,167
Receivable for Investments Sold..................... 398,672 140,370 31,222 198,440
Interest Receivable................................. 178,727 -- -- --
Foreign Withholding Tax Reclaim
Receivable........................................ -- -- 148,502 --
Dividends Receivable................................ -- 25,848 326,668 8,201
Receivable for Portfolio Shares Sold................ -- -- 3,517 --
Other Assets........................................ -- 1,765 -- --
----------- ----------- ------------- ------------
Total Assets...................................... 13,270,221 36,003,861 189,468,111 40,865,572
----------- ----------- ------------- ------------
Liabilities
Payable to Custodian Bank........................... 30,334 -- -- --
Payable for Custodian Fees -- Note D................ 14,941 4,301 50,537 4,914
Payable for Investment Advisory
Fees -- Note B.................................... 4,972 19,079 110,249 32,539
Payable for Administrative
Fees -- Note C.................................... 6,527 7,690 7,089 5,126
Payable for Directors' Fees -- Note F............... 461 767 3,026 1,085
Payable for Investments Purchased................... -- 214,300 -- 192,500
Payable for Portfolio Shares Redeemed............... -- -- 58,535 --
Other Liabilities................................... 16,467 -- 1,383 3,165
----------- ----------- ------------- ------------
Total Liabilities................................. 73,702 246,137 230,819 239,329
----------- ----------- ------------- ------------
Net Assets.......................................... $13,196,519 $35,757,724 $189,237,292 $ 40,626,243
=========== =========== ============= ============
Net Assets Consist of:
Paid in Capital..................................... 14,131,912 30,967,941 141,118,541 55,546,835
Undistributed Net Investment
Income (Loss)..................................... 61,956 10,133 (124,723) (103,328)
Accumulated Net Realized Gain (Loss)................ (535,911) 1,167,151 20,518,087 (11,955,909)
Unrealized Appreciation (Depreciation).............. (461,438) 3,612,499 27,725,387 (2,861,355)
----------- ----------- ------------- ------------
Net Assets.......................................... $13,196,519 $35,757,724 $189,237,292 $ 40,626,243
=========== =========== ============= ============
Institutional Class Shares:
Shares Issued and Outstanding ($0.001
par value) (Authorized 25,000,000)................ 1,378,725 3,254,553 13,498,731 5,106,554
Net Asset Value, Offering and Redemption
Price Per Share................................... $ 9.57 $ 10.99 $ 14.02 $ 7.96
=========== =========== ============= ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
McKee McKee McKee McKee
U.S. Domestic International Small Cap
Government Equity Equity Equity
Portfolio Portfolio Portfolio Portfolio
---------- ---------- ------------- -----------
<S> <C> <C> <C> <C>
Investment Income
Dividends.................................... $ -- $ 221,730 $ 1,118,921 $ 257,663
Interest..................................... 482,614 8,805 91,134 31,984
Less: Foreign Taxes Withheld................. -- -- (64,668) --
---------- ---------- ------------- -----------
Total Income............................... 482,614 230,535 1,145,387 289,647
---------- ---------- ------------- -----------
Expenses
Administrative Fees -- Note C................ 44,639 52,516 128,553 57,604
Investment Advisory Fees -- Note B........... 33,965 122,819 667,122 297,682
Custodian Fees -- Note D..................... 14,416 5,089 81,623 6,132
Audit Fees................................... 6,856 7,131 7,189 3,791
Registration and Filing Fees................. 6,681 6,982 21,267 12,602
Printing Fees................................ 3,595 3,647 4,144 5,891
Directors' Fees -- Note F.................... 1,365 1,640 4,126 1,958
Legal Fees................................... 451 706 1,616 2,923
Account Service Fees -- Note F............... -- 153 7,486 51
Other Expenses............................... 10,181 7,724 7,297 5,890
---------- ---------- ------------- -----------
Net Expenses Before Expense Offset 122,149 208,407 930,423 394,524
Expense Offset -- Note A..................... (213) (226) (1,625) (1,549)
---------- ---------- ------------- -----------
Net Expenses After Expense Offset.......... 121,936 208,181 928,798 392,975
---------- ---------- ------------- -----------
Net Investment Income (Loss)................. 360,678 22,354 216,589 (103,328)
---------- ---------- ------------- -----------
Net Realized Gain (Loss) on:
Investments................................ (417,440) 1,320,629 22,210,823 (2,934,740)
Foreign Exchange Transactions.............. -- -- (229,415) --
---------- ---------- ------------- -----------
Total Net Realized Gain (Loss) on
Investments and Foreign
Exchange Transactions...................... (417,440) 1,320,629 21,981,408 (2,934,740)
---------- ---------- ------------- -----------
Net Change in Unrealized
Appreciation (Depreciation) on:
Investments................................ 125,360 (288,943) (3,469,457) 1,078,785
Foreign Exchange Translations.............. -- -- (23,320) --
---------- ---------- ------------- -----------
Total Net Change in Unrealized
Appreciation (Depreciation)................ 125,360 (288,943) (3,492,777) 1,078,785
---------- ---------- ------------- -----------
Net Gain (Loss) on Investments and
Foreign Exchange Transactions.............. (292,080) 1,031,686 18,488,631 (1,855,955)
---------- ---------- ------------- -----------
Net Increase (Decrease) in Net Assets
Resulting from Operations.................. $ 68,598 $1,054,040 $18,705,220 $(1,959,283)
========== ========== ============= ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
UAM FUNDS McKEE U.S. GOVERNMENT PORTFOLIO
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year
April 30, Ended
2000 October 31,
(Unaudited) 1999
----------- ------------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income...................................... $ 360,678 $ 1,055,148
Net Realized Gain (Loss)................................... (417,440) 56,877
Net Change in Unrealized
Appreciation (Depreciation).............................. 125,360 (1,598,999)
----------- ------------
Net Increase (Decrease) in Net Assets Resulting
from Operations.......................................... 68,598 (486,974)
----------- ------------
Distributions:
Net Investment Income...................................... (425,615) (1,136,270)
Net Realized Gain.......................................... (169,786) (1,198,752)
----------- ------------
Total Distributions........................................ (595,401) (2,335,022)
----------- ------------
Capital Share Transactions:(1)
Issued..................................................... 1,124,946 44,476,684
In Lieu of Cash Distributions.............................. 558,473 2,272,326
Redeemed................................................... (6,434,546) (61,933,981)
----------- ------------
Net Decrease from Capital Share Transactions............... (4,751,127) (15,184,971)
----------- ------------
Total Decrease........................................... (5,277,930) (18,006,967)
Net Assets:
Beginning of Period........................................ 18,474,449 36,481,416
----------- ------------
End of Period (including undistributed
net investment income of
$61,956 and $126,893, respectively)...................... $13,196,519 $ 18,474,449
=========== ============
(1) Shares Issued and Redeemed:
Issued..................................................... 115,634 4,281,599
In Lieu of Cash Distributions.............................. 58,268 218,088
Redeemed................................................... (667,486) (5,965,511)
----------- ------------
Net Decrease in Shares Outstanding......................... (493,584) (1,465,824)
=========== ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
UAM FUNDS MCKEE DOMESTIC EQUITY PORTFOLIO
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year
April 30, Ended
2000 October 31,
(Unaudited) 1999
----------- -------------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income...................................... $ 22,354 $ 237,303
Net Realized Gain.......................................... 1,320,629 3,977,986
Net Change in Unrealized
Appreciation (Depreciation).............................. (288,943) 2,134,232
----------- -------------
Net Increase in Net Assets Resulting
from Operations.......................................... 1,054,040 6,349,521
----------- -------------
Distributions:
Net Investment Income...................................... (55,421) (215,684)
Net Realized Gain.......................................... (3,277,245) (19,716,343)
----------- -------------
Total Distributions........................................ (3,332,666) (19,932,027)
----------- -------------
Capital Share Transactions:(1)
Issued..................................................... 1,174,802 8,858,663
In Lieu of Cash Distributions.............................. 3,228,788 19,496,011
Redeemed................................................... (8,353,957) (22,172,949)
----------- -------------
Net Increase (Decrease) from Capital Share Transactions.... (3,950,367) 6,181,725
----------- -------------
Total Decrease........................................... (6,228,993) (7,400,781)
Net Assets:
Beginning of Period........................................ 41,986,717 49,387,498
----------- -------------
End of Period (including undistributed
net investment income of
$10,133 and $43,200, respectively)....................... $35,757,724 $ 41,986,717
=========== =============
(1) Shares Issued and Redeemed:
Issued..................................................... 105,123 635,193
In Lieu of Cash Distributions.............................. 293,260 1,846,546
Redeemed................................................... (751,866) (1,954,556)
----------- -------------
Net Increase (Decrease) in Shares
Outstanding.............................................. (353,483) 527,183
=========== =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
38
<PAGE>
UAM FUNDS MCKEE INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year
April 30, Ended
2000 October 31,
(Unaudited) 1999
-------------- ---------------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income........................................ $ 216,589 $ 1,582,368
Net Realized Gain............................................ 21,981,408 18,260,136
Net Change in Unrealized Appreciation
(Depreciation)............................................ (3,492,777) 21,624,763
------------ -------------
Net Increase in Net Assets Resulting from Operations......... 18,705,220 41,467,267
------------ -------------
Distributions:
Net Investment Income........................................ (826,097) (1,141,638)
Net Realized Gain............................................ (17,461,420) (4,907,462)
------------ -------------
Total Distributions.......................................... (18,287,517) (6,049,100)
------------ -------------
Capital Share Transactions:(1)
Issued....................................................... 37,667,903 222,007,586
In Lieu of Cash Distributions................................ 17,434,500 5,380,915
Redeemed..................................................... (38,309,490) (224,854,697)
------------ -------------
Net Increase from Capital Share Transactions................. 16,792,913 2,533,804
------------ -------------
Total Increase............................................ 17,210,616 37,951,971
------------ -------------
Net Assets:
Beginning of Period.......................................... 172,026,676 134,074,705
------------ -------------
End of Period (including net investment income (loss)
of $(124,723) and $714,199, respectively)................. $189,237,292 $ 172,026,676
============ =============
(1) Shares Issued and Redeemed:
Issued....................................................... 2,628,230 17,641,170
In Lieu of Cash Distributions................................ 1,272,045 475,647
Redeemed..................................................... (2,652,658) (17,808,365)
------------ -------------
Net Increase in Shares Outstanding........................... 1,247,617 308,452
============ =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
39
<PAGE>
UAM FUNDS MCKEE SMALL CAP EQUITY PORTFOLIO
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year
April 30, Ended
2000 October 31,
(Unaudited) 1999
--------------- -----------------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Loss....................................... $ (103,328) $ (149,369)
Net Realized Loss......................................... (2,934,740) (9,021,169)
Net Change in Unrealized Appreciation
(Depreciation).......................................... 1,078,785 9,695,047
------------- ------------
Net Increase (Decrease) in Net Assets Resulting from
Operations.............................................. (1,959,283) 524,509
------------- ------------
Distributions:
Net Realized Gain......................................... -- (653,862)
------------- ------------
Capital Share Transactions:(1)
Issued.................................................... 105,713 2,280,123
In Lieu of Cash Distributions............................. -- 641,141
Redeemed.................................................. (39,083,517) (2,679,727)
------------- ------------
Net Increase (Decrease) from
Capital Share Transactions.............................. (38,977,804) 241,537
------------- ------------
Total Increase (Decrease)............................... (40,937,087) 112,184
------------- ------------
Net Assets:
Beginning of Period....................................... 81,563,330 81,451,146
------------- ------------
End of Period (including net investment income (loss)
of $(103,328) and $0, respectively)..................... $ 40,626,243 $ 81,563,330
============= ============
(1) Shares Issued and Redeemed:
Issued.................................................... 12,107 259,781
In Lieu of Cash Distributions............................. -- 76,236
Redeemed.................................................. (4,549,024) (319,227)
------------- ------------
Net Increase (Decrease) in Shares Outstanding............. (4,536,917) 16,790
============= ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
40
<PAGE>
UAM FUNDS McKEE U.S. GOVERNMENT PORTFOLIO
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Six Months
Ended March 2,
April 30, Years Ended October 31 1995** (to)
2000 ------------------------------------------------ October 31,
(Unaudited) 1999 1998 1997 1996 1995
----------- ---------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.......... $ 9.87 $ 10.93 $ 10.84 $ 10.58 $ 10.76 $ 10.00
----------- -------- --------- --------- --------- -----------
Income from Investment
Operations
Net Investment Income.......... 0.25 0.47 0.62 0.54 0.46 0.28
Net Realized
and Unrealized
Gain (Loss).................. (0.18) (0.72) 0.16 0.25 (0.07)++ 0.71
----------- -------- --------- --------- --------- -----------
Total from Investment
Operations................... 0.07 (0.25) 0.78 0.79 0.39 0.99
----------- -------- --------- --------- --------- -----------
Distributions:
Net Investment Income........ (0.27) (0.46) (0.62) (0.53) (0.44) (0.23)
Net Realized Gain............ (0.10) (0.35) (0.07) -- -- --
In Excess of
Net Realized Gain......... -- -- -- -- (0.13) --
----------- -------- --------- --------- --------- -----------
Total Distributions....... (0.37) (0.81) (0.69) (0.53) (0.57) (0.23)
----------- -------- --------- --------- --------- -----------
Net Asset Value,
End of Period................ $ 9.57 $ 9.87 $ 10.93 $ 10.84 $ 10.58 $ 10.76
=========== ======== ========= ========= ========= ===========
Total Return................... 0.73%*** (2.44)% 7.35% 7.73% 3.77%+ 9.96%+***
=========== ======== ========= ========= ========= ===========
Ratios and Supplemental Data
Net Assets, End of Period
(Thousands).................. $ 13,197 $18,474 $ 36,481 $ 57,527 $ 23,118 $ 6,069
Ratio of Expenses to Average
Net Assets................... 1.62%* 1.22% 0.96% 0.94% 1.13% 0.89%*
Ratio of Net Investment Income
to Average Net Assets........ 4.77%* 4.63% 5.51% 5.67% 5.39% 5.39%*
Portfolio Turnover Rate........ 33% 87% 119% 124% 83% 104%
</TABLE>
* Annualized
** Commencement of Operations
*** Not Annualized
+ Total return would have had certain fees not been waived and expenses
assumed by been lower the Adviser during the periods indicated.
++ The amount shown for the year ended October 31, 1996 for a share outstanding
throughout the period does not accord with the aggregate net gains on
investments for that period because of the sales and repurchases of
Portfolio shares in the relation to fluctuating market value of investments
of the Portfolio.
The accompanying notes are an integral part of the financial statements.
41
<PAGE>
UAM FUNDS McKEE DOMESTIC EQUITY PORTFOLIO
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Six Months
Ended March 2,
April 30, Years Ended October 31 1995** to
------------------------------------------------------
2000 October 31,
(Unaudited) 1999 1998 1997 1996 1995
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ........... $ 11.64 $ 16.03 $ 16.86 $ 13.38 $ 11.44 $ 10.00
----------- ---------- ---------- ---------- ---------- ----------
Income from Investment
Operations
Net Investment Income .......... 0.01 0.06 0.08 0.10 0.10 0.08
Net Realized
and Unrealized
Gain ........................ 0.31 1.50 0.46 3.92 2.08 1.43
----------- ---------- ---------- ---------- ---------- ----------
Total from Investment
Operations .................. 0.32 1.56 0.54 4.02 2.18 1.51
----------- ---------- ---------- ---------- ---------- ----------
Distributions:
Net Investment Income .......... (0.02) (0.06) (0.08) (0.10) (0.09) (0.07)
Net Realized Gain .............. (0.95) (5.89) (1.29) (0.44) (0.15) --
----------- ---------- ---------- ---------- ---------- ----------
Total Distributions ......... (0.97) (5.95) (1.37) (0.54) (0.24) (0.07)
----------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period $ 10.99 $ 11.64 $ 16.03 $ 16.86 $ 13.38 $ 11.44
=========== ========== ========== ========== ========== ==========
Total Return ..................... 2.68%*** 13.76% 3.36% 30.96% 19.31%+ 15.13%+***
=========== ========== ========== ========== ========== ==========
Ratios and Supplemental Data
Net Assets, End of Period
(Thousands) .................... $ 35,758 $ 41,987 $ 49,387 $ 107,389 $ 62,170 $ 6,427
Ratio of Expenses to Average
Net Assets ..................... 1.10%* 1.05% 1.02% 0.94% 0.99% 1.08%*
Ratio of Net Investment Income
to Average Net Assets .......... 0.12%* 0.51% 0.46% 0.64% 0.93% 1.12%*
Portfolio Turnover Rate .......... 40% 93% 61% 47% 42% 27%
</TABLE>
* Annualized
** Commencement of Operations
*** Not Annualized
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser during the periods indicated.
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
UAM FUNDS McKEE INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Six Months
Ended March 2,
April 30, Years Ended October 31 1995** to
------------------------------------------------------
2000 October 31,
(Unaudited) 1999 1998 1997 1996 1995
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ......... $ 14.04 $ 11.23 $ 12.42 $ 10.55 $ 10.03 $ 10.40
----------- ---------- ---------- ---------- ---------- ----------
Income from Investment
Operations
Net Investment Income ....... 0.01 0.11 0.12 0.11 0.09 0.11
Net Realized
and Unrealized
Gain (Loss) ............... 1.51 3.20 (0.03) 2.01 0.73 (0.39)
----------- ---------- ---------- ---------- ---------- ----------
Total from Investment
Operations ................ 1.52 3.31 0.09 2.12 0.82 (0.28)
----------- ---------- ---------- ---------- ---------- ----------
Distributions:
Net Investment Income ....... (0.07) (0.09) (0.11) (0.11) (0.09 (0.09)
Net Realized Gain ........... (1.47) (0.41) (1.17) (0.14) (0.21) --
----------- ---------- ---------- ---------- ---------- ----------
Total Distributions ...... (1.54) (0.50) (1.28) (0.25) (0.30) (0.09)
----------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period $ 14.02 $ 14.04 $ 11.23 $ 12.42 $ 10.55 $ 10.03
=========== ========== ========== ========== ========== ==========
Total Return .................. 11.33%*** 30.33% 1.18% 20.31% 8.29% (2.69)%
=========== ========== ========== ========== ========== ==========
Ratios and Supplemental Data
Net Assets, End of
Period (Thousands) .......... $ 189,237 $ 172,027 $ 134,075 $ 103,050 $ 91,224 $ 74,893
Ratio of Expenses
to Average Net Assets ....... 0.97%* 1.02% 1.00% 0.98% 1.01% 0.97%
Ratio of Net Investment
Income to Average
Net Assets .................. 0.23%* 1.05% 1.08% 0.95% 0.92% 1.16%
Portfolio Turnover Rate ....... 46% 40% 20% 29% 9% 7%
</TABLE>
* Annualized
** Commencement of Operations
*** Not Annualized
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
UAM FUNDS McKEE SMALL CAP EQUITY PORTFOLIO
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
Six Months
Ended November 4
April 30, Year Ended 1997**to
2000 October 31, October 31,
(Unaudited) 1999 1998
----------- ----------- ------------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period .................................... $ 8.46 $ 8.46 $ 10.00
----------- ----------- ------------
Income from Investment
Operations
Net Investment Loss .................................... (0.01) (0.02) (0.01)
Net Realized and Unrealized Gain (Loss) ................ (0.49) 0.09 (1.52)
----------- ----------- ------------
Total from Investment Operations ......................... (0.50) 0.07 (1.53)
----------- ----------- ------------
Distributions:
Net Realized Gain ...................................... -- (0.07) (0.01)
----------- ----------- ------------
Net Asset Value, End of Period ......................... $ 7.96 $ 8.46 $ 8.46
=========== =========== ============
Total Return ............................................. (5.91)% *** 0.81% (15.36)%***
=========== =========== ============
Ratios and Supplemental Data
Net Assets, End of Period (Thousands) ................... $ 40,626 $ 81,563 $ 81,451
Ratio of Expenses to Average Net Assets .................. 1.32%* 1.26% 1.27%*
Ratio of Net Investment Loss to Average Net Assets ....... (0.35)%* (0.18)% (0.12)%*
Portfolio Turnover Rate .................................. 78% 53% 5%
</TABLE>
* Annualized
** Commencement of Operations
*** Not Annualized
The accompanying notes are an integral part of the financial statements.
44
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
NOTES TO THE 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 McKee U.S. Government Portfolio, McKee Domestic Equity Portfolio,
McKee International Equity Portfolio and McKee Small Cap Equity Portfolio (the
"Portfolios"), portfolios of UAM Funds, Inc., are diversified and non-
diversified, open-end management investment companies. At April 30, 2000, the
UAM Funds were comprised of 49 active portfolios. The information presented in
the financial statements pertains only to the Portfolios. The objective of the
McKee Portfolios is as follows:
McKee U.S. Government Portfolio seeks to achieve a high level of current
income consistent with preservation of capital by investing primarily in
U.S. Treasury and Government agency securities.
McKee Domestic Equity Portfolio seeks to achieve a superior long-term total
return over a market cycle by investing primarily in equity securities of
U.S. issuers.
McKee International Equity Portfolio seeks to achieve a superior long-term
total return over a market cycle by investing primarily in the equity of
non-U.S. issuers.
McKee Small Cap Equity Portfolio seeks to achieve a superior long-term
total return by investing primarily in the equity securities of small
companies.
A. Significant Accounting Policies: The following significant accounting
policies are in conformity with generally accepted accounting principles. Such
policies are consistently followed by the Portfolios in the preparation of 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. Fixed income securities are stated on the basis of valuation
provided by brokers and/or a pricing service which uses information with
respect to transactions in fixed income securities, quotations from
dealers, market transactions in comparable securities and various
relationships between securities in determining value. Securities quoted in
foreign currencies are translated into U.S. dollars at the
45
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
current exchange rate. 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 are stated at fair value
following procedures approved by the Board of Directors.
2. Federal Income Taxes: It is the Portfolios' intention to qualify as
a regulated investment company under Subchapter M of the Internal Revenue
Code and to distribute all of its taxable income. Accordingly, no provision
for Federal income taxes is required in the financial statements.
The McKee International Equity 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 McKee International
Equity 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 In
connection with transactions involving repurchase agreements, the
Portfolios' 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, each
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 McKee
International Equity 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
McKee International Equity 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
46
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
losses on foreign currency transactions represent net foreign exchange
gains or losses from forward foreign currency exchange contracts,
disposition of foreign currencies, currency gains or losses realized
between trade and settlement dates on securities transactions and the
difference between the amount of the investment income and foreign
withholding taxes recorded on the McKee International Equity Portfolio's
books and the U.S. dollar equivalent amounts actually received or paid.
5. Forward Foreign Currency Exchange Contracts: The McKee
International Equity Portfolio may enter into forward foreign currency
exchange contracts to protect the value of securities held and related
receivables and payables against changes in future foreign exchange rates.
A forward currency contract is an agreement between two parties to buy and
sell currency at a set price on a future date. The market value of the
contract will fluctuate with changes in currency exchange rates. The
contract is marked-to-market daily using the current forward rate and the
change in market value is recorded by the McKee International Equity
Portfolio as unrealized gain or loss. The McKee International Equity
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
t he 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: Each 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 and foreign
currency transactions.
Permanent book and tax differences relating to shareholder
distributions may result in reclassifications to undistributed net
investment income (loss), accumulated net realized 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.
47
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
7. 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 ex-dividend date,
except that certain dividends from foreign securities are recorded as soon
as the McKee International Equity Portfolio is informed of the ex-dividend
date. Interest income is recognized on the accrual basis. Discounts and
premiums on securities purchased are amortized using the effective yield
basis over their respective lives. Most expenses of the UAM Funds can be
directly attributed to a particular portfolio. Expenses which cannot be
directly attributed are apportioned among the portfolios of the UAM Funds
based on their relative net assets. Custodian fees for the Portfolios are
shown gross of expense offsets, if any, for custodian balance credits.
B. Investment Advisory Services: Under the terms of an investment advisory
agreement, C.S. McKee & Co., Inc. (the "Adviser"), a subsidiary of United Asset
Management Corporation ("UAM"), provides investment advisory services to each
Portfolio at a fee calculated at an annual rate of 0.45%, 0.65%, 0.70% and 1.00%
of average daily net assets for the McKee U.S. Government, McKee Domestic
Equity, McKee International Equity and McKee Small Cap Equity Portfolios,
respectively. The Adviser has voluntarily agreed to waive a portion of its
advisory fees and to assume expenses, if necessary, in order to keep the McKee
Small Cap Portfolio's total annual operating expenses, after the effects of
expense offset arrangements, from exceeding 1.75% of average daily net assets.
Effective May 10, 2000, the Board of Directors of the UAMfunds approved an
amendment to the McKee Small Cap Equity Portfolio's prospectus to permit the
Adviser to invest at least 65% of total assets of the portfolio in securities
with market capitalization of less than $1 billion or within the range of the
Russell 2000 Index, the portfolio's performance benchmark. Prior to that date,
the prospectus limited holdings in securities with market capitalization of less
than $1 billion to at least 65% of total assets. From January 19, 2000 through
May 10, 2000 the Adviser purchased securities in excess of such limitation in
the McKee Small Cap Equity Portfolio. Realized gains on such securities disposed
of during the period were $72,115. The cost of such securities held as of May
10, 2000 was $30,076,380 with a market value of $24,452,210. Subsequent to May
10, 2000, there were significant increases in the market value of such
securities. On June 27, 2000, at the request of the Board of Directors, the
Adviser agreed to waive fees with respect to such Portfolio in the amount of
$151,000.
C. Administrative Services: UAM Fund Services, Inc. (the "Administrator"),
48
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
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 0.093% for
International Equity, 0.073% for U.S. Government, Domestic Equity and Small Cap
Equity per annum of the average daily net assets of the Portfolios, an annual
base fee of $72,500, and a fee based on the number of active shareholder
accounts.
For the period ended April 30, 2000, the Administrator earned the following
amounts from the Portfolios and paid the following to SEI, UAMSSC and DST for
their services:
<TABLE>
<CAPTION>
Portion Portion Portion
Administrative Paid to Paid to Paid to
McKee Portfolios Fees SEI UAMSSC DST
---------------- -------------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
U.S. Government Portfolio...... $ 44,639 $20,690 $4,352 $6,630
Domestic Equity................ 52,516 23,561 4,423 6,685
International Equity........... 128,553 45,273 5,212 8,305
Small Cap Equity............... 57,604 23,550 4,676 6,871
</TABLE>
Prior to November 1, 1999, Chase Global Fund Services Company served as the
Portfolio's Sub-Administrator.
D. Custodian: The Chase Manhattan Bank is custodian for the Portfolios'
assets and the assets are held in accordance with the custodian agreement. As a
part of the custodian agreement, the custodian has a lien on the securities of
the Portfolios to cover any advances made by the custodian to the Portfolios.
E. Distribution Services: UAM Fund Distributors, Inc. (the "Distributor"),
a wholly-owned subsidiary of UAM, distributes the shares of the Portfolios. The
Distributor does not receive any fee or other compensation with respect to the
Portfolios.
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 port-
49
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
folios of UAM Funds, plus a quarterly retainer of $150 for each active portfolio
of the UAM Funds.
G. Purchases and Sales: For the period ended April 30, 2000, purchases and
sales of investment securities other than long-term U.S. Government and agency
securities and short-term securities were:
McKee Portfolios Purchases Sales
---------------- ------------ ----------
U.S. Government.................. $ 2,508,019 $ 2,193,065
Domestic Equity.................. 15,183,224 22,010,334
International Equity............. 91,911,517 85,403,274
Small Cap Equity................. 45,458,555 80,917,367
Purchases and sales of long-term U.S. Government securities were $2,409,300
and $7,628,054 respectively, for the McKee U.S. Government Portfolio. There were
no purchases or sales of long-term U.S. Government securities for the McKee
Domestic Equity, McKee International Equity or the McKee Small Cap Equity
Portfolios.
H. Line of Credit: The Portfolios, 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 the period ended April
30, 2000, the Portfolios had no borrowings under the agreement.
I. 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 Portfolio was as follows:
No.of %
McKee Portfolios Shareholders Ownership
---------------- ------------ -------------
U.S. Government.................. 1 32%
Domestic Equity.................. 2 32%
International Equity............. 2 27%
Small Cap Equity................. 3 50%
At April 30, 2000, the net assets of the McKee International Equity
Portfolio were substantially comprised of foreign denominated securities and/or
currency. Changes in currency exchange rates will affect the value of and
investment income from such securities and currency.
50
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
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.
Effective November 1, 1999, the Board of Directors of UAM Funds, Inc.
approved a 1.00% redemption fee on Institutional Class shares of the McKee Small
Cap Portfolio, the McKee International Equity Portfolio and the McKee U.S.
Government Portfolio.
51
<PAGE>
NOTES
<PAGE>
UAM FUNDS McKEE PORTFOLIOS
--------------------------------------------------------------------------------
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
C.S. McKee & Co., Inc.
One Gateway Center
Pittsburgh, PA 15222
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.
--------------------------------------
