<PAGE>
UAM Funds
Funds for the Informed Investor/SM/
Rice, Hall, James Portfolios
Semi-Annual Report April 30, 2000
[GRAPHIC]
UAM(R)
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
APRIL 30, 2000
--------------------------------------------------------------------------------
TABLE OF CONTENTS
--------------------------------------------------------------------------------
Shareholders' Letter ...................................................... 1
Portfolios of Investments
Small Cap .......................................................... 6
Small/Mid Cap ...................................................... 10
Statements of Assets and Liabilities ...................................... 13
Statements of Operations .................................................. 14
Statements of Changes in Net Assets
Small Cap .......................................................... 15
Small/Mid Cap ...................................................... 16
Financial Highlights
Small Cap .......................................................... 17
Small/Mid Cap ...................................................... 18
Notes to Financial Statements ............................................. 19
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UAM FUNDS RHJ PORTFOLIOS
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May 17, 2000
Dear Shareholders:
The performance of the UAM Rice, Hall, James Small/Mid Cap Portfolio as of April
30, 2000 is presented below. Two indices are provided for comparative purposes,
the Standard and Poor's 500 and a custom index created by averaging the returns
of the Russell 2000 and the Russell Mid Cap indices. This 50/50 Blended Russell
index is the appropriate benchmark for the RHJ Small/Mid Cap Portfolio. Returns
are shown as of April 30, 2000, for the most recent month, latest 3 months,
calendar year-to-date, latest 6 months, latest 12 months and since the
inception date of 11/1/96 to date.
<TABLE>
<CAPTION>
Inception
Current Latest Year to Latest Latest (11/1/96)
Month 3 Months Date 6 Months 12 Months to Date*
----- -------- ---- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Small/Mid Cap
Portfolio -2.61% 14.82% 18.30% 30.41% 23.24% 73.06%
Composite* -5.38% 5.61% 3.02% 18.40% 17.61% 70.79%
Russell
Mid Cap -4.73% 8.46% 4.88% 17.38% 16.01% 84.92%
Russell
2000 -6.02% 2.28% -0.64% 18.72% 18.42% 55.49%
Standard &
Poor's 500 -3.18% -2.64% -0.80% 7.20% 2.80% 102.38%
</TABLE>
* Composite is a 50/50 blend of the Russell Mid Cap Index and the Russell
2000 Index
The Rice Hall James Small/Mid Cap Portfolio was down 2.67% for the month ended
April 30, 2000, suffering about half the decline seen in the blended benchmark's
-5.38% return. The Portfolio's outperformance was even more dramatic for the
quarter ended April 30 as it exceeded the benchmark 5.61% return by over 9%.
The inception-to-date results, dating back to 11/1/96, still demonstrate that
investors faired best in large capitalization stocks for that entire period, but
recent experience suggests that we have seen a change in market sentiment. The
past year was decidedly small to mid cap biased. The blended small/mid cap
benchmark was up over 17% in the past twelve months versus a mere 2.8% rise in
the large cap proxy, the Standard & Poor's 500. One year does not make a
century, however the fundamental valuation picture suggests that such a
rotation is rational.
Believe it or not, the best performing sector in both the portfolio and the
benchmark index was not Technology this quarter: it was Energy (excluding the
Integrated
1
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UAM FUNDS RHJ PORTFOLIOS
--------------------------------------------------------------------------------
Oils). Energy carried a 6% weight in the portfolio, slightly greater than the
market's 4% weight and its 50%+ return exceeded that of the benchmark Energy
sector by over 20%.
The Technology sector was again a great performer but the portfolio was under-
weighted. Our 16% weight during the quarter was modestly up from last quarter,
while the weighting in the benchmark increased to nearly 29%. The good news is
that this Portfolio sector returned 48% versus 12% for the Technology sector in
the Russell 2000/Russell Midcap. The leading performers within the period
covered were Nvidia, Plantronics and Check Point Software*.
Stock selection in the Materials & Processing area was extremely good. While the
benchmark Materials & Processing sector posted a 1% return, we showed much
stronger results. The Portfolio's heavily over-weighted Materials & Processing
area (20% of the portfolio) finished up 17% within the period covered led by
Dexter Corp.*, OM Group and Martin Marietta Materials.
The UAM RHJ Small/Mid Cap portfolio is designed to replicate a similar Rice,
Hall, James core equity style in which RHJ has managed for many years. The
market value of the UAM RHJ Small/Mid Cap portfolio was $15.3 million as of
April 30, 2000. Sector weightings do not drive our fundamentally based stock
selection process and we do not expect any dramatic changes in sector exposures
this quarter. Maximum capital appreciation is the primary objective of this
portfolio, current income generation is not a consideration and volatility and
turnover may be high. No derivative investments are used.
The performance of the UAM Rice Hall James Small Cap portfolio as of April 30,
2000 is presented below:
<TABLE>
<CAPTION>
Since
Inception
Current Latest Year Latest Latest (7/1/94)
Month 3 Months to-Date 6 Months 12 Months to Date
----- -------- ------- -------- --------- -------
<S> <C> <C> <C> <C> <C> <C>
Small Cap
Portfolio -7.60% 3.49% 3.30% 19.60% 29.70% 193.17%
Russell 2000 -6.02% 2.28% 0.64% 18.72% 18.42% 128.58%
Standard &
Poor's 500 -3.18% -2.64% -0.80% 7.20% 2.80% 205.59%
</TABLE>
The portfolio exceeded the Russell 2000's increase of 2.28% by 1%, but more
importantly beat the small cap proxy by more than 11% over the last 12 months.
Since the
2
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UAM FUNDS RHJ PORTFOLIOS
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inception date of 7/1/94, 5 3/4 years, the portfolio has achieved a compound
annual rate of return of 20.2% versus 15.2% for the Russell 2000. Interestingly,
the portfolio has gained significant ground on the 21.4% annualized return of
the large caps as measured by the Standard & Poor's 500 over this same period.
Energy, Health Care and Technology had the greatest positive impact on the
portfolio this quarter. These three sectors accounted for 48% of the portfolio
and contributed greater than 100% of this quarter's return. Energy was the big
winner this quarter contributing a 30%+ gain. It carried a 10% weight in the
portfolio, triple the market weighting, and as such accounted for the lion's
share of the portfolio's 3.5% return.
Another top-performing sector was Health Care, which comprised approximately 12%
of the portfolio, returning 7% versus the Russell 2000's Health Care return of
-3%. Leaders in this sector were Morrison Management, a food service provider to
health care facilities; Andrx, a maker of controlled-release oral
pharmaceuticals; and Lifecell, a bioengineering company developing and marketing
tissue-regeneration and cell preservation products.
The portfolio's 25% weighted Technology sector, while battered in this difficult
Technology market, finished the quarter with a high single digit return. We
expect the volatility to continue in this market-weighted sector.
The market value of the UAM RHJ Small Cap portfolio was $58.7 million as of
April 30, 2000. Sector weightings do not drive our fundamentally based stock
selection process and we do not expect any dramatic changes in sector exposures
this quarter. Maximum capital appreciation is the primary objective of this
portfolio, current income generation is not a consideration and volatility and
turnover may be high. No derivative investments are used.
A rapid rise in a very narrow group of stocks commensurate with a huge increase
in interest rates was clearly not a healthy foundation for a strong stock
market. This combined with Microsoft's unfavorable ruling has proven, at least
in the short run, to be an event worthy of triggering a bear market. The Nasdaq
slid into its second bear market in two years with a 34% decline from March 10,
2000 to April 14, 2000 (prior bear was a drop of 30%, 7/20/98 to 10/8/98 --
Asian crisis). The index gave back 73% of its gain from the October 1999 bottom.
It is certainly showing some renewed energy since the April 14 low, but the
rapid fall and incredible volatility has shaken the confidence of many long-term
bulls. In mid-April the Russell Mid Cap and the Russell 2000 were down 16% and
25%, respectively, from their highs and are now struggling to recover lost
ground.
Fortunately, during this painful market environment, the money is not all going
to cash. We are seeing some rotation from momentum technology and biotech into
3
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UAM FUNDS RHJ PORTFOLIOS
--------------------------------------------------------------------------------
growth cyclicals and value stocks. Retail stocks have picked up significantly
after being decimated early in the first quarter. Financials are picking up. We
feel that overall market breadth has actually improved.
Assuming investors continue to turn away from many of the momentum growth names
that drove the market in 1999, we are hopeful that the more reasonably priced
stocks that represent the bulk of our Portfolio's will benefit. Consequently, we
believe that our portfolio is positioned favorably within the reward to risk
spectrum and may offer significant return potential if the markets continue to
broaden. Rice, Hall, James continues to employ its bottom-up fundamental
approach to investing, selecting what we believe to be the most attractively
valued growth stocks regardless of the sector represented.
Sincerely,
Rice, Hall, James & Associates
* All or part of this security position may have been sold prior to the close
of the period.
Rice, Hall, James Small Cap Portfolio
Ten Largest Equity Holdings
(27.0% of Portfolio)
1. Datum Inc. (4.4%) 6. Chieftan International (2.3%)
2. Unit Corp. (3.7%) 7. Lodgenet Entertainment (2.2%)
3. Tetra Technologies Inc. (3.2%) 8. Alpha Industries (2.1%)
4. Andrx Corp. (2.6%) 9. Wave Systems Corp., Cl A (2.0%)
5. Avant Corp. (2.6%) 10. Morrison Management Specialists (1.9%)
Rice, Hall, James Small/Mid Cap Portfolio
Ten Largest Equity Holdings
(33.3% of Portfolio)
1. Plantronics (4.0%) 6. Teva Pharmaceuticals ADR (3.3%)
2. OM Group Inc. (3.7%) 7. Jacobs Engineering (3.0%)
3. Noble Affiliates (3.6%) 8. Reynolds & Reynolds, Cl A (3.0%)
4. SPX Corp. (3.4%) 9. American National Can Group (3.0%)
5. Nvidia (3.3%) 10. Martin Marietta Materials (3.0%)
4
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UAM FUNDS RHJ PORTFOLIOS
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All performance presented in this report is historical and should not be
construed as a guarantee of future results. The investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
A portfolio's performance assumes the reinvestment of all dividends
and capital gains.
There are no assurances that a portfolio will
meet its stated objectives.
A portfolio's holdings and allocations are subject to change because it
is actively managed and should not be considered recommendations to
buy individual securities.
Definition of Comparative Indices
---------------------------------
50/50 Composite Russell Index is a custom index created by averaging the returns
of the Russell 2000 and the Russell Mid Cap Indices.
Russell 2000 Index is an unmanaged index comprised of 2,000 stocks of U.S. com-
panies with small market capitalization.
Russell Mid-Cap Index is an unmanaged comprised of 800 stocks of U.S. companies
with mid-market capitalization.
S&P 500 Index is an unmanaged index comprised of stocks representing major U.S.
market industries, including 400 industrial stocks, 40 financial stocks, 40
utility stocks and 20 transportation stocks.
Index returns assume reinvestment of dividends and, unlike a portfolio's
returns, do not reflect any fees or expenses. If such fees and expenses
were included in the index returns, the performance
would have been lower.
Please note that one cannot invest directly in an unmanaged index.
5
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UAM FUNDS RHJ SMALL CAP PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 93.9%
Shares Value
------ -----
BANKS -- 4.5%
Hamilton Bank* ...................... 50,000 $ 915,625
Itla Capital ........................ 60,000 821,250
Texas Regional Bancshares, Cl A ..... 3,000 85,688
Trico Bancshares .................... 40,000 635,000
Willis Lease Finance* ............... 20,000 145,000
----------
2,602,563
----------
BASIC INDUSTRY -- 6.6%
ABC-Naco* ........................... 50,000 559,375
Buckeye Technologies* ............... 25,000 478,125
General Semiconductor ............... 25,000 500,000
Northwest Pipe* ..................... 30,000 393,750
Tetra Technologies* ................. 130,000 1,852,500
----------
3,783,750
----------
CAPITAL CONSTRUCTION -- 2.3%
Insituform Technologies* ............ 25,000 839,062
IONICS* ............................. 20,000 470,000
----------
1,309,062
----------
CONSUMER NON-DURABLES -- 12.2%
Craig* .............................. 35,000 159,687
Dover Downs Entertainment ........... 50,000 612,500
Home Products International* ........ 70,000 546,875
Lodgenet Entertainment* ............. 50,000 1,284,375
O'Charleys* ......................... 80,000 1,010,000
Paxar* .............................. 50,500 514,469
Peace Arch Entertainment Group, Cl B* 40,000 135,000
PJ America* ......................... 96,000 1,080,000
Rockford* ........................... 30,000 330,000
Schlotzsky's* ....................... 95,000 605,625
Vans* ............................... 44,000 662,750
Vlasic Foods International* ......... 50,000 87,500
----------
7,028,781
----------
ENERGY RELATED -- 7.7%
Chieftan International* ............. 72,000 1,368,000
Prima Energy* ....................... 30,000 858,750
Unit* ............................... 195,000 2,181,562
----------
4,408,312
----------
The accompanying notes are an integral part of the financial statements.
6
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UAM FUNDS RHJ SMALL CAP PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS - continued
Shares Value
------ -----
HEALTH CARE -- 10.6%
Alterra Healthcare .............. 31,800 $ 103,350
Andrx* .......................... 30,000 1,533,750
Brookdale Living Communities* ... 50,000 637,500
Catalytica* ..................... 33,000 365,063
Cygnus* ......................... 45,000 559,688
IGEN International* ............. 25,000 400,000
Lifecell* ....................... 75,000 433,594
Morrison Management Specialists . 39,600 1,096,425
Quidel* ......................... 61,000 488,000
Scios* .......................... 67,000 330,812
Stressgen Biotechnologies* ...... 45,000 162,450
----------
6,110,632
----------
RETAIL -- 5.9%
Charlotte Russe Holding* ........ 75,000 815,625
Factory 2-U Stores* ............. 27,000 901,125
Stein Mart* ..................... 70,000 625,625
Value City Department Stores* ... 60,000 611,250
Wilsons Leather Experts* ........ 35,000 424,375
----------
3,378,000
----------
SERVICES -- 10.1%
Bright Horizons Family Solutions* 25,000 450,000
Butler International* ........... 45,000 371,250
Charles River Associates* ....... 25,000 489,063
Daisytek International* ......... 44,000 530,750
Encompass Services* ............. 50,000 346,875
Hoenig Group* ................... 60,000 540,000
ITT Educational Services* ....... 25,000 446,875
OneMain.com* .................... 72,000 459,000
Onyx Acceptance* ................ 102,500 486,875
Personnel Group of America* ..... 52,500 275,625
Quest Education* ................ 90,000 815,625
Steiner Leisure* ................ 31,000 623,875
----------
5,835,813
----------
The accompanying notes are an integral part of the financial statements.
7
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UAM FUNDS RHJ SMALL CAP PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS - continued
Shares Value
------ -----
TECHNOLOGY -- 21.8%
3DO* .......................... 135,000 $ 818,437
Advanced Digital Information* . 30,000 735,000
Avant* ........................ 85,000 1,530,000
Cognitronics* ................. 50,000 500,000
Digital River* ................ 25,000 375,000
ECCS* ......................... 20,000 120,625
Embarcadero Technologies* ..... 60,000 900,000
HMT Technology* ............... 135,000 305,859
Intranet Solutions* ........... 10,000 222,500
Learn2.com* ................... 300,000 843,750
Micro Linear* ................. 65,000 414,375
Netpliance* ................... 85,000 765,000
Park Electrochemical .......... 30,500 781,563
Phoenix International Ltd.* ... 175,000 525,000
Ramp Networks* ................ 20,000 400,000
SBS Technologies* ............. 20,000 690,000
Scansource* ................... 25,000 862,500
Symmetricom* .................. 50,000 575,000
Wave Systems, Cl A* ........... 60,000 1,147,500
-----------
12,512,109
-----------
TELECOMMUNICATIONS -- 9.4%
Alpha Industries* ............. 24,000 1,237,500
Cypress Communications* ....... 40,000 527,500
Datum* ........................ 129,000 2,563,875
Metromedia International Group* 139,100 695,500
Somera Communications* ........ 40,000 387,500
-----------
5,411,875
-----------
TRANSPORTATION -- 2.8%
Covenant Transportation, Cl A* 60,000 791,250
Heartland Express* ............ 50,000 834,375
-----------
1,625,625
-----------
TOTAL COMMON STOCKS
(Cost $50,002,385) ....... 54,006,522
-----------
The accompanying notes are an integral part of the financial statements.
8
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UAM FUNDS RHJ SMALL CAP PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
PREFERRED STOCK -- 0.3%
Shares Value
------ -----
Craig, Cl A* (Cost $316,309)......... 40,000 $177,500
-----------
SHORT-TERM INVESTMENT -- 7.9%
<TABLE>
<CAPTION>
Face
Amount
------
REPURCHASE AGREEMENT -- 7.9%
<S> <C> <C>
Chase Securities, Inc. 5.65%, dated 04/28/00, due 05/01/00,
to be repurchased at $4,538,136, collateralized by
$4,971,224 of a U.S. Treasury Note valued at $4,536,100
(Cost $4,536,000) ........................................................... $ 4,536,000 4,536,000
---------
TOTAL INVESTMENTS -- 102.1% (Cost $54,854,694) (a) .............................. 58,720,022
---------
OTHER ASSETS AND LIABILITIES, NET -- (2.1%) ..................................... (1,217,885)
---------
TOTAL NET ASSETS -- 100.0% ...................................................... $ 57,502,137
============
</TABLE>
* Non-Income Producing Security
Cl Class
Ltd. Limited
(a) The cost for federal income tax purposes was $54,854,694. At April 30,
2000, net unrealized appreciation for all securities based on tax cost was
$3,865,328. This consisted of aggregate gross unrealized appreciation for
all securities of $10,857,730 and aggregate gross unrealized depreciation
for all securities of $6,992,402.
The accompanying notes are an integral part of the financial statements.
9
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UAM FUNDS RHJ SMALL CAP PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 95.5%
Shares Value
------ -----
BANKS -- 3.9%
Metris ......................... 9,200 $ 345,000
Peoples Heritage Financial Group 19,700 256,100
----------
601,100
----------
BASIC INDUSTRY -- 15.3%
Engelhard ...................... 17,000 298,562
Houghton Mifflin ............... 11,000 457,188
OM Group ....................... 12,600 579,600
Reynolds & Reynolds, Cl A ...... 19,500 463,125
SPX* ........................... 4,900 538,387
----------
2,336,862
----------
CAPITAL CONSTRUCTION -- 4.7%
IONICS* ........................ 10,600 249,100
Jacobs Engineering Group* ...... 15,000 469,687
----------
718,787
----------
CONSUMER DURABLE -- 2.1%
Clayton Homes .................. 34,200 324,900
----------
CONSUMER NON-DURABLE -- 14.3%
American National Can Group .... 27,500 462,344
Hollinger International ........ 33,600 424,200
Polaroid ....................... 17,000 343,188
Suiza Foods* ................... 9,700 377,694
Valassis Communications* ....... 11,250 383,203
Wolverine World Wide ........... 16,200 194,400
----------
2,185,029
----------
ENERGY RELATED -- 6.0%
Noble Affiliates ............... 15,400 555,363
Tom Brown* ..................... 19,200 363,600
----------
918,963
----------
HEALTH CARE -- 6.7%
ICN Pharmaceuticals ............ 11,700 294,694
Shire Pharmaceuticals Group ADR* 5,400 217,350
Teva Pharmaceuticals ADR ....... 11,400 501,600
----------
1,013,644
----------
The accompanying notes are an integral part of the financial statements.
10
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UAM FUNDS RHJ SMALL CAP PORTFOLIO
APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS - continued
Shares Value
------ -----
NATURAL RESOURCES -- 5.6%
Martin Marietta Materials 8,700 $ 461,100
Minerals Technologies ... 8,400 388,500
----------
849,600
----------
RETAIL -- 5.2%
Claire's Stores ......... 17,700 326,344
Zale* ................... 11,100 457,875
----------
784,219
----------
SERVICES -- 12.5%
Covance* ................ 20,500 188,344
F.Y.I.* ................. 8,500 227,375
Labor Ready* ............ 20,500 185,781
Perot Systems, Cl A* .... 25,500 414,375
R.H. Donnelley .......... 22,300 446,000
United Stationers ....... 13,200 440,550
----------
1,902,425
----------
TECHNOLOGY -- 10.6%
3DO* .................... 30,900 189,262
Activision* ............. 17,500 108,828
Hyperion Solutions* ..... 9,600 290,400
Mentor Graphics* ........ 7,000 91,875
Nvidia* ................. 5,800 516,200
Thomas & Betts .......... 13,700 422,131
----------
1,618,696
----------
TELECOMMUNICATIONS -- 6.7%
Andrew* ................. 13,800 406,237
Plantronics* ............ 7,000 619,500
----------
1,025,737
----------
UTILITIES -- 1.9%
Avista .................. 9,800 289,713
----------
TOTAL COMMON STOCKS
(Cost $12,626,070) . 14,569,675
----------
The accompanying notes are an integral part of the financial statements.
11
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APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENT-- 6.9%
<TABLE>
<CAPTION>
Face
Amount Value
------ -----
REPURCHASE AGREEMENT-- 6.9%
<S> <C> <C>
Chase Securities, Inc. 5.65%, dated 04/28/00, due 05/01/00,
to be repurchased at $1,048,493, collateralized by
$1,148,554 a U.S. Treasury Note valued at $1,048,023
(Cost $1,048,000) ........................................................... $ 1,048,000 $1,048,000
----------
TOTAL INVESTMENTS-- 102.4% (Cost $13,674,070) (a) ............................... 15,617,675
----------
OTHER ASSETS AND LIABILITIES, NET-- (2.4%) ...................................... (361,515)
----------
TOTAL NET ASSETS-- 100.0% ....................................................... $ 15,256,160
============
</TABLE>
* Non-Income Producing Security
ADR American Depositary Receipt
Cl Class
(a) The cost for federal income tax purposes was $13,674,070. At April 30,
2000, net unrealized appreciation for all securities based on tax cost was
$1,943,605. This consisted of aggregate gross unrealized appreciation for
all securities of $2,806,779 and aggregate gross unrealized depreciation
for all securities of $863,174.
The accompanying notes are an integral part of the financial statements.
12
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APRIL 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Small Cap Small/Mid Cap
Portfolio Portfolio
------------ ------------
Assets
<S> <C> <C>
Investments, at Cost ................................... $ 54,854,694 $ 13,674,070
============ ============
Investments, at Value - Note A ......................... $ 58,720,022 $ 15,617,675
Cash ................................................... 473 311
Receivable for Investments Sold ........................ 261,867 --
Receivable for Portfolio Shares Sold ................... 20,883 20,000
Dividends and Interest Receivable ...................... 4,576 1,342
Other Assets ........................................... 7,452 1,657
------------ ------------
Total Assets ...................................... 59,015,273 15,640,985
------------ ------------
Liabilities
Payable for Investments Purchased ...................... 1,454,627 349,991
Payable for Investment Advisory Fees - Note B .......... 34,784 3,356
Payable for Administrative Fees - Note C ............... 6,656 4,139
Payable for Custodian Fees - Note D .................... 6,325 2,213
Payable for Directors' Fees - Note F ................... 582 417
Other Liabilities ...................................... 10,162 24,709
------------ ------------
Total Liabilities ................................. 1,513,136 384,825
------------ ------------
Net Assets ............................................. $ 57,502,137 $ 15,256,160
============ ============
Net Assets Consist of:
Paid in Capital ........................................ $ 48,167,170 $ 8,115,643
Net Investment Loss .................................... (165,270) (19,075)
Accumulated Net Realized Gain .......................... 5,634,909 5,215,987
Unrealized Appreciation ................................ 3,865,328 1,943,605
------------ ------------
Net Assets ............................................. $ 57,502,137 $ 15,256,160
============ ============
Institutional Class Shares
Shares Issued and Outstanding ($0.001 par value)
(Authorized 25,000,000) ............................. 3,529,914 907,742
Net Asset Value, Offering and Redemption Price Per Share $ 16.29 $ 16.81
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
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UAM FUNDS RHJ PORTFOLIOS
FOR THE SIX MONTHS ENDED
APRIL 30, 2000(Unaudited)
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Small Cap Small/Mid Cap
Portfolio Portfolio
--------- ---------
Investment Income
<S> <C> <C>
Dividends .......................................... $ 37,176 $ 72,212
Interest ........................................... 131,429 33,920
----------- -----------
Total Income ................................... 168,605 106,132
----------- -----------
Expenses
Investment Advisory Fees - Note B .................. 215,501 70,920
Administrative Fees - Note C ....................... 64,440 48,653
Custodian Fees - Note D ............................ 12,246 3,249
Registration and Filing Fees ....................... 8,154 12,219
Audit Fees ......................................... 7,029 6,881
Printing Fees ...................................... 5,449 5,396
Directors' Fees - Note F ........................... 1,620 1,407
Legal Fees ......................................... 1,314 830
Other Expenses ..................................... 23,447 12,553
Investment Advisory Fees Waived - Note B ........... -- (36,517)
----------- -----------
Net Expenses Before Expense Offset ............. 339,200 125,591
----------- -----------
Expense Offset - Note A ............................ (5,325) (384)
----------- -----------
Net Expenses After Expense Offset .............. 333,875 125,207
----------- -----------
Net Investment Loss ................................ (165,270) (19,075)
----------- -----------
Net Realized Gain on Investments ................... 5,635,266 6,229,786
Net Change in Unrealized Appreciation (Depreciation)
on Investments ................................. 4,142,492 (461,362)
----------- -----------
Net Gain on Investments ............................ 9,777,758 5,768,424
----------- -----------
Net Increase in Net Assets Resulting from Operations $ 9,612,488 $ 5,749,349
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, 2000 October 31,
(Unaudited) 1999
------------- -----------
Increase (Decrease) in Net Assets
Operations:
<S> <C> <C>
Net Investment Loss .................................... $ (165,270) $ (309,498)
Net Realized Gain ...................................... 5,635,266 8,745,947
Net Change in Unrealized Appreciation (Depreciation) ... 4,142,492 1,098,523
------------ ------------
Net Increase in Net Assets Resulting from
Operations ......................................... 9,612,488 9,534,972
------------ ------------
Distributions:
Net Realized Gain ...................................... (7,955,046) --
------------ ------------
Capital Share Transactions: (1)
Issued ................................................. 11,829,552 24,763,306
In Lieu of Cash Distributions .......................... 7,898,169 --
Redeemed ............................................... (12,281,913) (28,118,025)
------------ ------------
Net Increase (Decrease) from Capital Share Transactions 7,445,808 (3,354,719)
------------ ------------
Total Increase .......................................... 9,103,250 6,180,253
Net Assets:
Beginning of Period ..................................... 48,398,887 42,218,634
------------ ------------
End of Period (including net investment loss of $165,270
and $0, respectively) .............................. $ 57,502,137 $ 48,398,887
============ ============
(1) Shares Issued and Redeemed:
Issued .................................................. 708,505 1,638,415
In Lieu of Cash Distributions ........................... 529,013 --
Redeemed ................................................ (721,873) (1,887,156)
------------ ------------
Net Increase (Decrease) in Shares Outstanding ........... 515,645 (248,741)
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, 2000 October 31,
(Unaudited) 1999
-------------- ------------
Increase (Decrease) in Net Assets
Operations:
<S> <C> <C>
Net Investment Loss ................................... $ (19,075) $ (104,037)
Net Realized Gain (Loss) .............................. 6,229,786 (1,013,801)
Net Change in Unrealized Appreciation (Depreciation) .. (461,362) 1,619,104
------------ ------------
Net Increase in Net Assets Resulting from Operations ... 5,749,349 501,266
------------ ------------
Distributions:
Net Realized Gain ..................................... -- (320,930)
------------ ------------
Capital Share Transactions: (1)
Issued ................................................ 5,708,948 6,576,370
In Lieu of Cash Distributions ......................... -- 290,242
Redeemed .............................................. (16,432,864) (8,596,347)
------------ ------------
Net Decrease from Capital Share Transactions ........... (10,723,916) (1,729,735)
------------ ------------
Total Decrease ......................................... (4,974,567) (1,549,399)
Net Assets:
Beginning of Period ................................... 20,230,727 21,780,126
------------ ------------
End of Period (including net investment loss of $19,075
and $0, respectively) .............................. $ 15,256,160 $ 20,230,727
============ ============
(1) Shares Issued and Redeemed:
Issued ................................................ 344,465 484,183
In Lieu of Cash Distributions ......................... -- 21,774
Redeemed .............................................. (1,005,925) (626,439)
------------ ------------
Net Decrease in Shares Outstanding ..................... (661,460) (120,482)
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
Six Months
Ended
April 30, Years Ended October 31,
2000 -----------------------------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
----------- ---- ---- ---- ---- ----
Net Asset Value,
<S> <C> <C> <C> <C> <C> <C>
Beginning of Period ............... $ 16.06 $ 12.94 $ 18.76 $ 15.73 $ 15.87 $ 11.14
---------- ---------- ---------- ---------- ---------- ----------
Income from Investment Operations:
Net Investment Loss ............... (0.05) (0.03) (0.06) (0.08) (0.10) (0.07)
Net Realized and Unrealized Gain
(Loss) .......................... 2.95 3.15 (3.47) 4.59 2.73 4.81
---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Operations .. 2.90 3.12 (3.53) 4.51 2.63 4.74
---------- ---------- ---------- ---------- ---------- ----------
Distributions:
Net Investment Income ............. -- -- -- -- -- (0.01)
In Excess of Net Investment
Income .......................... -- -- -- -- -- 0.00@
Net Realized Gain ................. (2.67) -- (2.29) (1.48) (2.77) --
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions ............... (2.67) -- (2.29) (1.48) (2.77) (0.01)
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period ......... $ 16.29 $ 16.06 $ 12.94 $ 18.76 $ 15.73 $ 15.87
========== ========== ========== ========== ========== ==========
Total Return ........................... 19.60%** 24.21% (20.86)% 31.44% 19.43% 42.59%+
========== ========== ========== ========== ========== ==========
Ratios and Supplemental Data
Net Assets, End of Period (Thousands) .. $ 57,502 $ 48,399 $ 42,219 $ 51,772 $ 33,488 $ 18,910
Ratio of Expenses to Average
Net Assets ........................ 1.20%* 1.29% 1.16% 1.21% 1.37% 1.40%
Ratio of Net Investment Loss
to Average Net Assets ............. (0.59)%* (0.67)% (0.48)% (0.53)% (0.78) (0.63)%
Portfolio Turnover Rate ................ 72% 132% 120% 158% 181% 180%
</TABLE>
* Annualized
** Not Annualized
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser during the period indicated.
@ Value is less than $0.01 per share.
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
Six Months Year Year November 1,
Ended Ended Ended 1996*** to
April 30, 2000 October 31, October 31, October 31,
(Unaudited) 1999 1998 1997
--------------- ----------- ----------- -----------
Net Asset Value,
<S> <C> <C> <C> <C>
Beginning of Period ....................................... $ 12.89 $ 12.89 $ 12.64 $ 10.00
---------- ---------- ---------- ----------
Income from Investment Operations:
Net Investment Income (Loss) .............................. (0.02) (0.05) (0.01) 0.03
Net Realized and Unrealized Gain .......................... 3.94 0.22 0.42 2.64
---------- ---------- ---------- ----------
Total from Investment Operations .......................... 3.92 0.17 0.41 2.67
---------- ---------- ---------- ----------
Distributions:
Net Investment Income ..................................... -- -- (0.00)@ (0.03)
Net Realized Gain ......................................... -- (0.17) (0.16) --
---------- ---------- ---------- ----------
Total Distributions ....................................... -- (0.17) (0.16) (0.03)
---------- ---------- ---------- ----------
Net Asset Value, End of Period ................................. $ 16.81 $ 12.89 $ 12.89 $ 12.64
========== ========== ========== ==========
Total Return+ .................................................. 30.41%** 1.31% 3.33% 26.76%
========== ========== ========== ==========
Ratios and Supplemental Data
Net Assets, End of Period (Thousands) .......................... $ 15,256 $ 20,231 $ 21,780 $ 12,957
Ratio of Expenses to Average
Net Assets ................................................ 1.25%* 1.25% 1.25% 1.25%
Ratio of Net Investment Income (Loss)
to Average Net Assets ..................................... (0.19)%* (0.47)% (0.12)% 0.24%
Portfolio Turnover Rate ........................................ 55% 78% 83% 56%
</TABLE>
* Annualized
** Not Annualized
*** Commencement of Operations
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser during the periods indicated.
@ Value is less than $0.01 per share.
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
UAM Funds, Inc., UAM Funds, Inc. II and UAM Funds Trust (collectively the
"UAM Funds") are registered under the Investment Company Act of 1940, as
amended. The Rice, Hall, James Small Cap Portfolio and Rice, Hall, James
Small/Mid Cap Portfolio (the "Portfolios"), portfolios of UAM Funds, Inc., are
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 objectives of the
Portfolios are as follows:
Rice, Hall, James Small Cap Portfolio seeks to provide maximum capital
appreciation, consistent with reasonable risk to principal by investing
primarily in small market capitalization companies.
Rice, Hall, James Small/Mid Cap Portfolio seeks to provide maximum capi-
tal appreciation, consistent with reasonable risk to principal by investing
primarily in small/mid market capitalization 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
their financial statements. Generally accepted accounting principles may require
Management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results may differ from
those estimates.
1. Security Valuation: Investments for which market quotations are
readily available are stated at market value, which is determined using
the last reported sale price from the exchange where the security is
primarily traded. If no sales are reported, as in the case of some
securities traded over-the-counter, the market value is determined by using
the last reported bid price. Short-term investments with maturities of
sixty days or less at time of purchase are valued at amortized cost, if it
approximates market value. The value of other assets and securities for
which no quotations are readily available is determined in good faith at
fair value following procedures approved by the Board of Directors.
2. Federal Income Taxes: It is each Portfolio's intention to qualify
as a regulated investment company under Subchapter M of the Internal
Revenue Code and to distribute all of its taxable income. Accordingly, no
provision for Federal income taxes is required in the financial statements.
19
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
--------------------------------------------------------------------------------
3. Repurchase Agreements: 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 agree-
ments. This joint repurchase agreement is covered by the same collateral
requirements as discussed above.
4. Distributions to Shareholders: Each Portfolio will distribute
substantially all of its net investment income quarterly. Any realized
net capital gains will be distributed at least annually. All distributions
are recorded on ex-dividend date.
The amount and character of income and capital gain distributions to
be paid are determined in accordance with Federal income tax regulations,
which may differ from generally accepted accounting principles. These
differences are primarily due to differing book and tax treatments of net
operating losses.
Permanent book and tax basis differences 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.
5. Other: Security transactions are accounted for on trade date, the
date the trade is executed. Costs used in determining realized gains or
losses on the sale of investment securities are based on the specific
identification method.
20
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
--------------------------------------------------------------------------------
Dividend income is recorded on the ex-dividend date. Interest income is
recognized on the accrual basis. Most expenses of the UAM Funds can be
directly attributed to a particular portfolio. Expenses 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, Rice, Hall, James & Associates (the "Adviser"), a subsidiary of
United Asset Management Corporation ("UAM"), provides investment advisory
services to the Rice, Hall, James Small Cap Portfolio and the Rice, Hall, James
Small/Mid Cap Portfolio at a fee calculated at an annual rate of 0.75% and 0.80%
of the average daily net assets, 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 Rice, Hall, James Small Cap Portfolio's and the
Rice, Hall, James Small/Mid Cap Portfolio's total annual operating expenses,
after the effect of expense offset arrangements, from exceeding 1.40% and 1.25%
of average daily net assets, respectively.
C. Administrative Services: UAM Fund Services, Inc. (the "Administrator"),
a wholly-owned subsidiary of UAM, provides and oversees administrative, fund
accounting, dividend disbursing, shareholder servicing and transfer agent
services to the Portfolios 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 Portfolios.
Pursuant to the Agreement, each Portfolio pays the Administrator 0.073% per
annum of its average daily net assets, an annual base fee of $72,500, and a fee
based on the number of active shareholder accounts.
For the six months ended April 30, 2000, the Administrator earned the
following amounts from the Portfolios and paid the following to SEI, DST and
UAMSSC for their services:
<TABLE>
<CAPTION>
Administration Portion Paid Portion Paid Portion Paid
Rice, Hall, James Portfolios Fees to SEI to DST to UAMSSC
---------------------------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Small Cap ............. $64,440 $25,583 $10,070 $8,161
Small/Mid Cap ......... 48,653 21,543 7,979 6,334
</TABLE>
21
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
--------------------------------------------------------------------------------
Effective November 1, 1999, the UAM Funds' Board of Directors approved a
change in the Sub-Administrator from Chase Global Funds Service Company to SEI
Investments Mutual Funds Services.
D. Custodian: The Chase Manhattan Bank is custodian for the Portfolios'
assets held in accordance with the custodian agreement.
E. Distribution Services: UAM Fund Distributors, Inc. (the "Distributor"),
a wholly owned subsidiary of UAM, distributes the shares of the 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 portfolios of UAM Funds, plus a quarterly retainer of $150 for each
active portfolio of the UAM Funds.
G. Purchases and Sales: For the six months ended April 30, 2000, the Rice,
Hall, James Small Cap Portfolio and the Rice, Hall, James Small/Mid Cap
Portfolio made purchases of $37,412,016 and $9,768,404 and sales of $38,257,984
and $19,734,983 of investment securities other than long-term U.S. Government
and short-term securities, respectively. There were no purchases or sales of
long-term U.S. Government securities.
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. During the year ended April
30, 2000, the Portfolios had no borrowings under the agreement.
22
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
--------------------------------------------------------------------------------
I. Other: At April 30, 2000, the percentage of total shares outstanding
held by record shareholders owning 10% or greater of the aggregate total shares
outstanding for each Portfolio was as follows:
No. of %
Rice, Hall, James Portfolios Shareholders Ownership
---------------------------- ------------ ---------
Small Cap ............................. 1 43%
Small/Mid Cap ......................... 2 21%
23
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
UAM FUNDS RHJ 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
Rice, Hall, James & Associates
600 West Broadway, Suite 1000
San Diego, CA 92101
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.
