<PAGE>
UAM Funds
Funds for the Informed Investor/sm/
Rice, Hall, James Portfolios
Annual Report October 31, 1999
[LOGO OF UAM]
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Shareholders'Letter ................................................... 1
Performance Comparison
Small Cap ......................................................... 6
Small/Mid Cap ..................................................... 7
Portfolios of Investments
Small Cap ......................................................... 8
Small/Mid Cap ..................................................... 12
Statements of Assets and Liabilities .................................. 15
Statements of Operations .............................................. 16
Statements of Changes in Net Assets
Small Cap ......................................................... 17
Small/Mid Cap ..................................................... 18
Financial Highlights
Small Cap ......................................................... 19
Small/Mid Cap ..................................................... 20
Notes to Financial Statements ......................................... 21
Report of Independent Accountants ..................................... 26
- --------------------------------------------------------------------------------
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- --------------------------------------------------------------------------------
November 9, 1999
Dear Shareholders,
Rice,Hall,James Small/Mid Cap Portfolio
The performance of the Rice, Hall, James (RHJ) Small/Mid Cap Portfolio as of
October 31, 1999 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
Composite Russell Index is the appropriate benchmark for the RHJ Small/Mid Cap
Portfolio. Returns are shown for the most recent month, latest 3 months,
calendar year-to-date, latest 12 months and inception to date.
Calendar Cumulative Annualized
Current Latest Year-to Latest Inception- Inception-
Month 3 Months Date 12 Months to-Date* to-Date*
----- -------- ---- --------- -------- --------
Small/Mid Cap
Portfolio 1.66% (4.52%) (11.71%) 1.31% 32.70% 9.89%
Composite 2.57% (2.43%) 4.21% 16.00% 44.26% 5.58%
50% Russell
Mid Cap 4.74% (1.56%) 5.63% 17.12% 57.55% 10.61%
50% Russell
2000 0.40% (3.29%) 2.79% 14.87% 30.97% 0.63%
Standard &
Poor's 500 6.33% 2.90% 12.03% 25.66% 102.54% 23.82%
*Inception as of November 1, 1996
The RHJ Small/Mid Cap Portfolio was down 4.52% for the quarter ended October 31,
1999 versus the blended benchmark's -2.43% return. The shortfall in performance
for all periods listed above is largely due to the most recent ten months. RHJ
uses a GARP (growth at a reasonable price) strategy, investing only in those
stocks where the price/earnings ratios are less than the projected three-year
earnings growth rates. This bottom-up fundamentally based discipline has led to
investment in the smaller end of our stock universe. The aggregate portfolio
capitalization is less than half that of the 50/50 Composite Russell Index. This
smaller capitalization bias has hurt the portfolio performance for the past
three years. Adding further damage to the portfolio, GARP oriented investing was
significantly out of favor for the calendar year-to-date period.
Momentum, at least in the short term, is still the place to be.
1
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- --------------------------------------------------------------------------------
The health care sector, down from its 15% portfolio weight last quarter to a 10%
weight this quarter, outperformed the benchmark sector but still fell short of
the overall benchmark return. The consumer-related sectors (retail, consumer
durables, and consumer non-durables) have collectively exceeded 20% of the
portfolio for quite some time and performed in line with the market in the
quarter ended October 31, 1999. The financial-related sectors (banks and
insurance) in the Portfolio dramatically under-performed the index, but
fortunately, were under-weighted by half. The technology stock returns in the
portfolio were up more than 25% for the quarter and 21% of the mix.
Consequently, the technology sector provided the only significant positive
return contribution in the quarter.
The RHJ Small/Mid Cap Portfolio is designed to replicate the RHJ core equity
style in which the overwhelming majority of RHJ separate accounts have been
successfully managed for many years. Our core equity style is to invest in
stocks of companies with price/earnings ratios that are lower than the company's
three to five year projected earnings growth rate. The net assets of the
Small/Mid Cap Portfolio were $20.2 million as of October 31, 1999. Capital
appreciation is the Portfolio's objective, dividend yield is not a consideration
in equity selection. No derivative investments are currently used.
Rice,Hall,James Small Cap Portfolio
The performance of the Rice, Hall, James (RHJ) Small Cap Portfolio as of October
31, 1999 is presented below:
Calendar Cumulative Annualized
Current Latest Year-to Latest Inception- Inception-
Month 3 Months Date 12 Months to-Date* to-Date*
------- -------- -------- --------- ---------- ----------
Small Cap
Portfolio (3.95%) (2.49%) 8.59% 24.21% 145.12% 18.28%
Russell 2000 0.40% (3.29%) 2.79% 14.87% 92.53% 13.06%
Standard &
Poor's 500 6.33% 2.90% 12.03% 25.66% 240.66% 25.84%
*Inception as of July 1, 1994
In marked contrast to the Small/Mid Cap portfolio, the performance of the RHJ
Small Cap Portfolio has been strong this year, beating the Russell 2000 by 80
basis points in the last quarter, by 580 basis points year-to-date and by
approximately 950 basis points for the last 12 months. The latest 12-month
portfolio return has almost kept up with the incredibly strong Standard & Poor's
500 return of 25.7%.
2
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- --------------------------------------------------------------------------------
We feel that stock selection has been exceptional in this Portfolio with
significant performance contributions from stocks in a wide variety of sectors.
The technology, service and consumer-related (retail, consumer non-durables and
consumer durables) sectors have dominated the Portfolio accounting for nearly
half of its value for most of this year.
Sector weightings do not drive our fundamentally based stock selection process
in either Portfolio and we do not expect any dramatic changes in sector
exposures this quarter. Maximum capital appreciation is the primary objective of
the Portfolio, current income generation is not a consideration and volatility
and turnover may be high. No derivative investments are used.
Economic Outlook
Economic expansion continues with no apparent end in sight. Unemployment is low,
corporate earnings are strong across most industries, the world economic
recovery continues strongly, inflation has yet to rear its ugly head, and the
Federal Reserve appears determined to keep it that way. While the Fed did not
raise rates in October, consensus view is they very well might in November,
negating the easing done a year ago in the face of economic peril. Only
continued steep declines in the equity indices will likely change the Fed's
stance. Interest rates have increased significantly from their bottom in October
1998. The 30-year Treasury has increased 35% from its low and the 5-year note
has experienced a similar rise. The effect on the market, though, through the
end of the third quarter has been negligible. Or has it? With the exception of a
handful of stocks this has been a nasty market. To quote Thomas Galvin of
Donaldson Lufkin & Jenrette Inc., "The average stock is now in a bear market,
with 3,700 NYSE and NASDAQ shares on average down more than 26% from their 52
week highs." In the last quarter, every sector but Technology and Energy showed
declines.
With market breadth deteriorating since mid-1998, the market has become
increasingly inefficient in valuing stocks. The leadership has narrowed
significantly since 1997 and once again since first quarter of this year. The
investment public is willing to "hide" more and more money in consistent large
capitalization growth stocks, especially technology. The continued acceptance of
Internet or Internet-related IPO's provides further evidence of the public's
complacency with the unprecedented success of technology stocks and the inherent
risk in such companies. This trend is at the expense of small to mid cap stocks,
many of which are being carelessly thrown away regardless of the longer-term
fundamentals. This trend has compro-
3
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- --------------------------------------------------------------------------------
mised the liquidity in the small to mid capitalization area and left huge
numbers of good quality companies trading at unconscionable levels.
Many investors believe that one has to be a fool not to have all their money in
large cap growth stocks. Diversification is something for extremely conservative
people or those that are not willing to see the obvious change in the nature of
the financial markets. The old valuation standards no longer apply, at least not
to the "Nifty-Fifty" and the Internet franchises. While it is difficult to
imagine further P/E expansion in this group, these individuals could be right.
If so, they will again have good solid returns from a collection of one-decision
stocks. But what if they are wrong? Is the downside exposure they face
acceptable? The "Nifty-Fifty" in the first half of the 70's fell some 75% from
their highs and it took some ten to twenty years for the majority of these
stocks to again make new highs. There was a tremendous absolute price paid for
complacency and lack of diversification, both in absolute levels and in
opportunity costs in the strong small cap years that followed. Did the
"Nifty-Fifty" disappoint on a fundamental basis? Not really, there was simply a
dramatic shift in market sentiment. High P/E to growth stocks are very
susceptible to changes in sentiment.
The mistake in the short run has been to stick to a valuation discipline and
ignore the momentum trend as RHJ has done. The mistake in the long run is to
mark this period as a New Paradigm and invest the way popular demand suggests
one should. Buying the expensive leadership and/or indexing carries with it the
comfort of low relative risk, but it also carries with it high absolute risk.
There have not been many times in market history when the way to achieve the
greatest success was to run with the herd. Valuation is not a timing tool but it
sure gives you the comfort of knowing tremendous upside potential exists. The
reward to risk in the small to mid capitalization GARP area is compelling. All
that is missing is a near term catalyst.
No investment approach works in every market environment. RHJ's approach, while
it has struggled this year, has proven to be remarkably consistent over time. We
have not chased momentum, we have not chased larger cap stocks; we have instead
stuck with bottom-up fundamental analysis and the conviction that the market
will return to fundamentally based valuation.
4
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- --------------------------------------------------------------------------------
Our area of focus will continue to be on fundamentally strong growth companies
with market capitalizations between $300 million and $2.5 billion for the
Small/Mid Cap Portfolio and capitalizations between $40 million and $500 million
in the Small Cap Portfolio. We will not try to time the market, but instead will
remain fully invested in the most attractively priced small and mid
capitalization growth stocks where positive change is present, regardless of the
industry or sector represented.
Sincerely,
Rice, Hall, James & Associates
The investment results presented in this report represent past performance and
should not be construed as a guarantee of future results. A portfolio's
performance assumes the reinvestment of all dividends and distributions. There
are no assurances that a portfolio will meet its stated objectives. 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 holdings are subject to change because it is actively
managed. Portfolio changes should not be considered recommendations for action
by individual investors.
Definition of Comparative Indices
---------------------------------
Russell 2000 Index is an unmanaged index composed of the 2,000 smallest stocks
in the Russell 3000 Index.
Russell Mid Cap Index is composed of the 800 smallest stocks in the Russell 1000
Index, with an average capitalization of $1.96 billion.
50/50 Composite Russell Index is a custom index created by averaging the returns
of the Russell 2000 and the Russell Mid Cap Indices.
Standard and Poor's 500 Index is an unmanaged index composed of 400 industrial
stocks, 40 financial stocks, 40 utility stocks and 20 transportation stocks.
The comparative indices assume reinvestment of dividends, unlike a portfolio's
returns, do not reflect any fees or expenses. If such fees were reflected in the
comparative indices'returns, the performance would have been lower. Please note
that one cannot invest directly in an unmanaged index.
5
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
- --------------------------------------------------------------------------------
Growth of a $10,000 Investment
- ---------------------------------
AVERAGE ANNUAL TOTAL RETURN**
FOR PERIOD ENDED OCTOBER 31, 1999
1 Year 5 Years Since
7/1/94*
- ---------------------------------
24.21% 17.08% 18.28%
- ---------------------------------
[GRAPH]
RHJ Russell
SMALL CAP 2000
PORTFOLIO INDEX
7/1/94 10,000 10,000
Nov-94 11,140 10,651
Nov-95 15,884 12,603
Nov-96 18,971 14,698
Nov-97 24,935 19,009
Nov-98 19,733 16,756
Nov-99 24,511 19,248
* Beginning of operations. Index comparisons begin on 6/30/94.
** If the adviser and/or portfolio service providers had not limited certain
expenses, the portfolio's total return would have been lower.
The investment results represent past performance 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.
The comparative index assumes reinvestment of dividends and, unlike a
portfolio's returns, does not reflect any fees or expenses. If such fees were
reflected in the comparative index's returns, the performance would have been
lower.
See definition of comparative index on page 5.
6
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
- --------------------------------------------------------------------------------
Growth of a $10,000 Investment
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN**
FOR PERIOD ENDED OCTOBER 31, 1999
Since
1 Year 11/1/96*
1.31% 9.89%
- --------------------------------------------------------------------------------
[LINE GRAPH]
RHJ Rus2000 RusMidCap 50/50
11/1/96 10000 10000 10000 10000
Nov-97 12676 12933 12877 12916
Nov-98 13098 11400 13453 12403
Nov-99 13270 13096 15756 14399
* Beginning of operations. Index comparisons begin on 10/31/96.
** If the adviser and/or portfolio service providers had not limited certain
expenses, the portfolio's total return would have been lower.
The investment results represent past performance 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.
The comparative indices assume reinvestment of dividends and, unlike a
portfolio's returns do not reflect any fees or expenses. If such fees were
reflected in the comparative indices'returns, the performance would have been
lower.
See definition of comparative indices on page 5.
7
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 93.8%
Shares Value
---------- -----------
BANKS -- 4.1%
AmeriCredit* ....................................... 30,000 $ 521,250
Bancshares ......................................... 40,000 745,000
Hamilton Bank* ..................................... 30,000 476,250
Willis Lease Finance* .............................. 50,000 246,875
-----------
1,989,375
-----------
BASIC INDUSTRIES -- 3.8%
ABC-Naco* .......................................... 50,000 537,500
Northwest Pipe* .................................... 30,000 397,500
Tetra Technologies* ................................ 107,000 889,437
-----------
1,824,437
-----------
CONSTRUCTION -- 2.6%
Insituform Technologies* ........................... 9,500 227,406
IONICS* ............................................ 20,000 590,000
IT Group* .......................................... 45,000 444,375
-----------
1,261,781
-----------
CONSUMER DURABLES -- 1.4%
Racing Champions* .................................. 140,000 691,250
-----------
CONSUMER NON-DURABLES -- 12.0%
Craig* ............................................. 35,000 210,000
Home Products International* ....................... 70,000 673,750
Lodgenet Entertainment* ............................ 50,000 915,625
O'Charleys* ........................................ 80,000 1,220,000
Peace Arch Entertainment Group Class B* ............ 40,000 145,000
PJ America* ........................................ 42,000 819,000
Schlotzsky's* ...................................... 105,000 754,687
Trump Hotels and Casino Resort* .................... 120,000 465,000
Vans* .............................................. 30,000 330,000
Vlasic Foods International* ........................ 35,000 269,062
-----------
5,802,124
-----------
ENERGY RELATED -- 8.8%
Basin Exploration* ................................. 35,000 568,751
Gulf Island Fabrication* ........................... 80,000 800,000
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
- --------------------------------------------------------------------------------
Shares Value
---------- -------------
ENERGY -- continued
Harken Energy* .................................... 395,800 $ 395,800
Prima Energy* ..................................... 20,000 437,500
The 3DO* .......................................... 135,000 1,012,500
Unit* ............................................. 160,000 1,040,000
------------
4,254,551
------------
HEALTH CARE -- 10.5%
Andrx* ............................................ 23,000 1,098,250
Brookdale Living Communities* ..................... 50,000 612,500
Catalytica* ....................................... 50,000 625,000
Cybear* ........................................... 40,000 270,000
Cygnus* ........................................... 50,000 487,500
First Consulting Group* ........................... 35,000 289,844
IGEN International* ............................... 25,000 612,500
Lifecell* ......................................... 75,000 323,437
Morrison Management Specialists ................... 33,000 705,375
National Research* ................................ 17,500 71,094
------------
5,095,500
------------
INSURANCE -- 4.9%
Argonaut Group .................................... 16,500 393,938
Gainsco ........................................... 200,000 1,137,500
Highlands Insurance Group* ........................ 80,000 630,000
Superior National Insurance Group* ................ 20,000 233,750
------------
2,395,188
------------
RETAIL -- 5.7%
Charlotte Russe Holding* .......................... 75,000 1,050,000
Factory 2-u Stores* ............................... 21,000 535,500
Stein Mart* ....................................... 85,000 552,500
Value City Department Stores* ..................... 40,000 615,000
------------
2,753,000
------------
SERVICES -- 12.9%
Butler International* ............................. 45,000 343,125
Charles River Associates* ......................... 20,000 505,000
Daisytek International* ........................... 44,000 734,250
e4L* .............................................. 65,000 170,625
Extended Systems* ................................. 95,000 712,500
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
- --------------------------------------------------------------------------------
Shares Value
---------- ----------
SERVICES -- continued
Group Maintenance America* ........................ 70,000 $ 673,750
Headway Corporate Resources* ...................... 20,000 97,500
Hoenig Group* ..................................... 60,000 615,000
Metro Information Services* ....................... 20,000 272,500
Personnel Group of America* ....................... 65,000 434,688
Quest Education* .................................. 90,000 731,250
Resortquest International* ........................ 50,000 384,375
Strayer Education ................................. 32,500 570,781
----------
6,245,344
----------
TECHNOLOGY -- 20.7%
ADAC Laboratories ................................. 20,000 172,500
Advanced Digital Information* ..................... 15,000 558,750
Aspen Technology* ................................. 25,000 307,812
Cognitronics* ..................................... 30,000 360,000
Deltek Systems* ................................... 45,000 517,500
Hall Kinion & Associates* ......................... 50,000 706,250
Interphase* ....................................... 20,000 350,000
JDA Software Group* ............................... 70,000 621,250
Learn2.com* ....................................... 265,824 805,779
Micro Linear* ..................................... 40,000 257,500
NetRadio* ......................................... 32,500 257,969
Newport ........................................... 50,000 968,750
Onesource Information Services* ................... 60,000 502,500
Phoenix International Ltd.* ....................... 170,000 584,375
Pomeroy Computer Resources* ....................... 40,000 410,000
Quicklogic* ....................................... 25,000 456,250
ShowCase* ......................................... 50,000 190,625
Symmetricom* ...................................... 60,000 457,500
Take-Two Interactive Software* .................... 40,000 415,000
Wave Systems Class A* ............................. 116,000 1,102,000
----------
10,002,310
----------
TELECOMMUNICATIONS -- 4.9%
Alpha Industries* ................................. 14,000 771,750
Datum* ............................................ 140,000 1,067,500
Microwave Power Devices* .......................... 45,000 540,000
----------
2,379,250
----------
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
- --------------------------------------------------------------------------------
Shares Value
---------- ---------
TRANSPORTATION -- 1.4%
Heartland Express*................................. 50,000 $ 675,000
-----------
UTILITIES -- 0.1%
Power Plug*........................................ 2,500 39,375
-----------
TOTAL COMMON STOCKS (Cost $45,614,340)............... 45,408,485
-----------
- --------------------------------------------------------------------------------
PREFERRED STOCKS -- 0.5%
- --------------------------------------------------------------------------------
CONSUMER NON-DURABLE -- 0.5%
Craig Corp.* (Cost $316,309)....................... 40,000 245,000
-----------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT -- 6.0%
- --------------------------------------------------------------------------------
Face
Amount
------
REPURCHASE AGREEMENT -- 6.0%
Chase Securities, Inc. 5.15%, dated 10/29/99,
due 11/01/99, to be repurchased at $2,898,243,
collateralized by $2,897,080 of various U.S.
Treasury Bills and U.S. Treasury Notes,
valued at $2,906,856
(Cost $2,897,000) ............................ $2,897,000 2,897,000
------------
TOTAL INVESTMENTS-- 100.3% (Cost $48,827,649) (a) ... 48,550,485
------------
OTHER ASSETS AND LIABILITIES, (NET) -- (0.3%) ....... (151,598)
------------
TOTAL NET ASSETS -- 100.0% .......................... $48,398,887
============
* Non-Income Producing Security
(a) The cost for federal income tax purposes was $48,827,649. At October 31,
1999, net unrealized depreciation for all securities based on tax cost was
$277,164. This consisted of aggregate gross unrealized appreciation for all
securities of $5,306,879, and gross unrealized depreciation for all
securities of $5,584,043.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 92.6%
- -------------------------------------------------------------------------------
Shares Value
------- -----------
BANKS -- 6.4%
Metris ............................................. 16,600 $ 571,662
Peoples Heritage Financial Group ................... 34,700 657,131
Texas Regional Bancshares, Class A ................. 2,500 69,687
-----------
1,298,480
-----------
BASIC INDUSTRIES -- 8.6%
Dexter ............................................. 18,000 631,125
OM Group ........................................... 17,000 637,500
SPX* ............................................... 5,459 462,650
-----------
1,731,275
-----------
CONSTRUCTION -- 4.2%
IONICS* ............................................ 17,700 522,150
Jacobs Engineering Group* .......................... 9,500 337,250
-----------
859,400
-----------
CONSUMER DURABLES -- 3.0%
Clayton Homes ..................................... 59,400 601,425
-----------
CONSUMER NON-DURABLES -- 11.0%
Cheesecake Factory (The)* ......................... 24,600 753,375
Suiza Foods* ...................................... 17,600 634,700
Valassis Communications* .......................... 19,350 832,050
-----------
2,220,125
-----------
ENERGY -- 2.2%
Tom Brown* ........................................ 32,300 436,050
-----------
HEALTH CARE -- 9.4%
Alza* ............................................. 13,200 565,125
Shire Pharmaceuticals Group ADR* .................. 19,500 616,688
Teva Pharmaceuticals Industries ADR ............... 15,000 722,812
-----------
1,904,625
-----------
MISCELLANEOUS -- 1.6%
Standard Register ................................. 15,000 328,125
-----------
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
- --------------------------------------------------------------------------------
Shares Value
------------- ------------
NATURAL RESOURCES -- 5.5%
Martin Marietta Materials .......................... 13,100 $ 510,081
Minerals Technologies ............................... 6,900 297,562
Potash of Saskatchewan .............................. 6,900 304,894
-----------
1,112,537
-----------
RETAIL -- 7.5%
Claire's Stores ..................................... 12,500 220,313
Kellwood ............................................ 4,500 79,594
Pep Boys-Manny, Moe & Jack .......................... 35,200 440,000
Zale* ............................................... 18,800 787,250
-----------
1,527,157
-----------
SERVICES -- 6.6%
F.Y.I.* ............................................. 14,200 470,375
Labor Ready* ........................................ 16,500 168,094
R.H. Donnelley ...................................... 36,600 690,825
-----------
1,329,294
-----------
TECHNOLOGY -- 20.3%
Activision* ......................................... 31,600 446,350
Checkpoint Software Technologies* ................... 10,500 1,214,062
Hutchinson Technology* .............................. 21,500 548,250
Hyperion Solutions* ................................. 22,200 539,738
MacDermid ........................................... 8,800 298,100
Midway Games* ....................................... 25,000 498,438
Nvidia* ............................................. 25,300 559,763
-----------
4,104,701
-----------
TELECOMMUNICATIONS -- 0.7%
Plantronics* .......................................... 2,500 146,406
-----------
TRANSPORTATION -- 2.2%
Dura Automotive Systems* .............................. 11,000 203,500
Interpool ............................................. 31,900 243,238
-----------
446,738
-----------
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS - continued
- --------------------------------------------------------------------------------
Shares Value
------- ----------
UTILITIES -- 3.4%
Avista ............................................. 38,100 $ 685,800
-----------
TOTAL COMMON STOCKS (Cost $16,327,171) ............. 18,732,138
-----------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT -- 4.6%
- --------------------------------------------------------------------------------
Face
Amount
------
REPURCHASE AGREEMENT -- 4.6%
Chase Securities, Inc. 5.15%, dated 10/29/99, due 11/01/99,
to be repurchased at $923,396, collateralized by
$923,025 of various U.S. Treasury Bills and U.S.
Treasury Notes, valued at $926,140
(Cost $923,000) ............................... $923,000 923,000
-----------
TOTAL INVESTMENTS -- 97.2%
(Cost $17,250,171) (a) ......................... 19,655,138
-----------
OTHER ASSETS AND LIABILITIES, NET-- 2.8% ........... 575,589
-----------
TOTAL NET ASSETS-- 100.0% .......................... $20,230,727
===========
* Non-Income Producing Security
ADR American Depositary Receipt
(a) The cost for federal income tax purposes was $17,250,171. At October 31,
1999, net unrealized appreciation for all securities based on tax cost was
$2,404,967. This consisted of aggregate gross unrealized appreciation for
all securities of $3,666,519, and gross unrealized depreciation for all
securities of $1,261,552.
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
UAM FUNDS RHJ PORTFOLIOS
OCTOBER 31, 1999
- -------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------------------------
Small Cap Small/Mid Cap
Portfolio Portfolio
------------ -------------
<S> <C> <C>
Assets
Investments, at Cost ........................................... $ 48,827,649 $ 17,250,171
============ ============
Investments, at Value - Note A ................................. $ 48,550,485 $ 19,655,138
Cash ........................................................... 269 31
Receivable for Investments Sold ................................ 1,788,721 907,610
Receivable for Portfolio Shares Sold ........................... 119,481 321
Dividends Receivable ........................................... -- 1,725
Interest Receivable ............................................ 1,243 396
Other Assets ................................................... 4,725 2,034
------------ ------------
Total Assets ................................................. 50,464,924 20,567,255
------------ ------------
Liabilities
Payable for Investments Purchased .............................. 1,996,933 299,454
Payable for Portfolio Shares Redeemed .......................... 307 --
Payable for Investment Advisory Fees - Note B .................. 27,036 3,546
Payable for Administrative Fees - Note C ....................... 14,392 11,789
Payable for Custodian Fees - Note D ............................ 2,205 1,091
Payable for Directors'Fees - Note G ............................ 666 632
Other Liabilities .............................................. 24,498 20,016
------------ ------------
Total Liabilities ............................................ 2,066,037 336,528
------------ ------------
Net Assets ..................................................... $ 48,398,887 $ 20,230,727
============ ============
Net Assets Consist of:
Paid in Capital ................................................ $ 40,721,362 $ 18,839,559
Accumulated Net Realized Gain (Loss) ........................... 7,954,689 (1,013,799)
Unrealized Appreciation/Depreciation ........................... (277,164) 2,404,967
------------ ------------
Net Assets ..................................................... $ 48,398,887 $ 20,230,727
============ ============
Institutional Class Shares
Shares Issued and Outstanding ($0.001 par value)
(Authorized 25,000,000) ..................................... 3,014,269 1,569,202
Net Asset Value, Offering and Redemption Price Per Share ....... $ 16.06 $ 12.89
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
FOR THE YEAR ENDED OCTOBER 31, 1999
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Small Cap Small/Mid Cap
Portfolio Portfolio
--------- -------------
<S> <C> <C>
Investment Income
Dividends ...................................................... $ 77,012 $ 107,016
Interest ....................................................... 204,918 64,615
---------- ----------
Total Income ................................................ 281,930 171,631
---------- ----------
Expenses
Investment Advisory Fees -- Note B ............................. 344,628 176,486
Administrative Fees -- Note C .................................. 134,377 106,997
Registration and Filing Fees ................................... 18,805 13,191
Custodian Fees -- Note D ....................................... 15,437 5,416
Audit Fees ..................................................... 14,097 13,750
Printing Fees .................................................. 12,209 12,103
Directors'Fees -- Note G ....................................... 3,247 2,823
Legal Fees ..................................................... 3,252 1,926
Other Expenses ................................................. 47,587 14,177
Account Services Fees -- Note F ................................ 50 1,061
Account Services Fees Waived -- Note F ......................... -- (1,061)
Investment Advisory Fees Waived -- Note B ...................... -- (71,187)
---------- ----------
Net Expenses Before Expense Offset .......................... 593,689 275,682
---------- ----------
Expense Offset -- Note A ....................................... (2,261) (14)
---------- ----------
Net Expenses After Expense Offset ........................... 591,428 275,668
---------- ----------
Net Investment Loss ............................................ (309,498) (104,037)
---------- ----------
Net Realized Gain (Loss) on Investments ........................ 8,745,947 1,013,801)
Net Change in Unrealized Appreciation/Depreciation
on Investments .............................................. 1,098,523 1,619,104
---------- ----------
Total Net Gain ................................................. 9,844,470 605,303
---------- ----------
Net Increase in Net Assets Resulting from Operations ........... $9,534,972 $ 501,266
========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, October 31,
1999 1998
----------- -----------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Loss ......................................... $ (309,498) $ (234,059)
Net Realized Gain (Loss) .................................... 8,745,947 (470,760)
Net Change in Unrealized Appreciation/Depreciation .......... 1,098,523 (10,327,282)
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from
Operations ............................................... 9,534,972 (11,032,101)
------------ ------------
Distributions:
Net Realized Gain ........................................... -- (5,978,687)
------------ ------------
Capital Share Transactions:(1)
Institutional Class:
Issued ...................................................... 24,763,306 43,148,322
In Lieu of Cash Distributions ............................... -- 5,699,557
Redeemed .................................................... (28,118,025) (41,390,608)
------------ ------------
Net Increase (Decrease) from Capital Share Transactions ..... (3,354,719) 7,457,271
------------ ------------
Total Increase (Decrease) ................................... 6,180,253 (9,553,517)
Net Assets:
Beginning of Period ......................................... 42,218,634 51,772,151
------------ ------------
End of Period (including undistributed net investment
income of $0 and $0, respectively) .......................... $ 48,398,887 $ 42,218,634
============ ============
(1) Shares Issued and Redeemed:
Issued ...................................................... 1,638,415 2,774,792
In Lieu of Cash Distributions ............................... -- 369,621
Redeemed .................................................... (1,887,156) (2,640,417)
------------ ----------
Net Increase (Decrease) in Shares Outstanding ............... (248,741) 503,996
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, October 31,
1999 1998
----------- -----------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Loss ......................................... $ (104,037) $ (24,006)
Net Realized Gain (Loss) .................................... (1,013,801) 327,208
Net Change in Unrealized Appreciation /Depreciation ......... 1,619,104 (86,200)
----------- -----------
Net Increase in Net Assets Resulting from Operations ........ 501,266 217,002
----------- -----------
Distributions:
Net Investment Income ....................................... -- (4,105)
Net Realized Gain ........................................... (320,930) (164,220)
----------- -----------
Total Distributions ......................................... (320,930) (168,325)
----------- -----------
Capital Share
Transactions:(1)
Institutional Class:
Issued ...................................................... 6,576,370 13,529,061
In Lieu of Cash Distributions ............................... 290,242 153,289
Redeemed .................................................... (8,596,347) (4,908,362)
----------- -----------
Net Increase (Decrease) from Capital Share Transactions ..... (1,729,735) 8,773,988
----------- -----------
Total Increase (Decrease) ................................... (1,549,399) 8,822,665
Net Assets:
Beginning of Period ......................................... 21,780,126 12,957,461
---------- -----------
End of Period (Including undistributed net investment
income of $0 and $0, respectively) .......................... $20,230,727 $21,780,126
=========== ===========
(1) Shares Issued and Redeemed:
Issued ...................................................... 484,183 1,032,302
In Lieu of Cash Distributions ............................... 21,774 12,422
Redeemed .................................................... (626,439) (380,344)
----------- -----------
Net Increase (Decrease) in Shares Outstanding .................. (120,482) 664,380
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
UAM FUNDS RHJ SMALL CAP PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
Years Ended October 31
----------------------------------------------------------------------------
1999 1998 1997 1996 1995
------ ------ ------- ------ ------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ....................... $ 12.94 $ 18.76 $ 15.73 $ 15.87 $ 11.14
------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Loss ....................... (0.03) (0.06) (0.08) (0.10) (0.07)
Net Realized and Unrealized Gain
(Loss) .................................. 3.15 (3.47) 4.59 2.73 4.81
------- ------- ------- ------- -------
Total from Investment Operations .......... 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 ......................... -- (2.29) (1.48) (2.77) --
------- ------- ------- ------- -------
Total Distributions ....................... -- (2.29) (1.48) (2.77) (0.01)
------- ------- ------- ------- -------
Net Asset Value, End of Period ............... $ 16.06 $ 12.94 $ 18.76 $ 15.73 $ 15.87
======= ======= ======= ======= =======
Total Return ................................. 24.21% (20.86)% 31.44 19.43% 42.59%+
======= ======= ======= ======= =======
Ratios and Supplemental Data
Net Assets, End of Period
(Thousands) ............................... $48,399 $42,219 $51,772 $33,488 $18,910
Ratio of Expenses to Average Net
Assets .................................... 1.29% 1.16% 1.21% 1.37% 1.40%
Ratio of Net Investment Loss
to Average Net Assets ..................... (0.67)% (0.48)% (0.53)% (0.78)% (0.63)%
Portfolio Turnover Rate ...................... 132% 120% 158% 181% 180%
</TABLE>
+ 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.
19
<PAGE>
UAM FUNDS RHJ SMALL/MID CAP PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
Year Year November 1,
Ended Ended 1996* to
October 31, October 31, October 31,
1999 1998 1997
----------- ----------- -----------
Net Asset Value, Beginning of Period ...... $ 12.89 $ 12.64 $ 10.00
-------- -------- --------
Income from Investment Operations:
Net Investment Income (Loss) ........... (0.05) (0.01) 0.03
Net Realized and Unrealized Gain ....... 0.22 0.42 2.64
-------- -------- --------
Total from Investment Operations ....... 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 ............ $ 12.89 $ 12.89 $ 12.64
======== ======== ========
Total Return .............................. 1.31%+ 3.33%+ 26.76%+
Ratios and Supplemental Data
Net Assets, End of Period (Thousands) ..... $ 20,231 $ 21,780 $ 12,957
Ratio of Expenses to Average Net Assets ... 1.25% 1.25% 1.25%
Ratio of Net Investment Income (Loss)
to Average Net Assets .................. (0.47)% (0.12)% 0.24%
Portfolio Turnover Rate ................... 78% 83% 56%
* 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.
20
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
UAM Funds, Inc., UAM Funds, Inc. II and UAM Funds Trust (collectively the
"UAM Funds") are registered under the Investment Company Act of 1940, as
amended. The 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 October 31, 1999, the
UAM Funds were comprised of 48 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 capital
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.
21
<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
agreements. 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 differences relating to shareholder distributions
resulted in reclassifications as follows:
Undistributed Accumulated
Net Investment Net Realized Paid in
Rice, Hall, James Portfolios Income Gain/Loss Capital
- -------------------------- --------------- ------------- -----------
Small Cap $309,498 $(290,526) $ (18,972)
Small/Mid Cap 104,037 (620) (103,417)
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.
22
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- --------------------------------------------------------------------------------
5. Other: Security transactions are accounted for on trade date, the
date the trade is executed. Costs used in determining realized gains or
losses on the sale of investment securities are based on the specific
identification method. Dividend income is recorded on the ex-dividend date.
Interest income is recognized on 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 Chase Global Funds Services Company ("CGFSC"), a corporate affiliate of The
Chase Manhattan Bank, 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 0.079% per
annum of its average daily net assets, an annual base fee of $87,500, and a fee
based on the number of active shareholder accounts.
For the year ended October 31, 1999, the Administrator earned the following
amounts from the Portfolios and paid the following to CGFSC, DST and UAMSSC for
their services:
<TABLE>
<CAPTION>
Administration Portion Paid Portion Paid Portion Paid
Rice, Hall, James Portfolios Fees to CGFSC to DST to UAMSSC
- -------------------------- -------------- ------------- -------- ------------------
<S> <C> <C> <C> <C>
Small Cap ..................... $134,377 $ 70,286 $ 20,196 $ 16,292
Small/Mid Cap ................. 106,997 60,849 16,002 12,701
</TABLE>
23
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- --------------------------------------------------------------------------------
Effective November 1, 1999, the UAM Funds'Board of Directors approved a
change in the Sub-Administrator from CGFSC 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. Account Services: Through January 1, 1999, the UAM Funds had contracted
with UAM Retirement Plan Services, Inc. (the "Service Provider"), a wholly-owned
subsidiary of UAM, to perform certain services for participants in a
self-directed, defined contribution plan, and for whom the Service Provider
provided participant recordkeeping. Pursuant to the terms of the agreement, the
Service Provider was entitled to receive, after the end of each month, a fee at
the annual rate of 0.15% of the average aggregate daily net asset value of
shares of the UAM Funds in the accounts for which it provided services. The
agreement was terminated effective January 1, 1999. The service provider had
voluntarily agreed to waive its fees in order to keep the Rice, Hall, James
Small Cap Portfolio and the Rice, Hall, James Small/Mid Cap Portfolio total
annual operating expenses, after the effect of expense offset arrangements, from
exceeding 1.40% and 1.25% of average daily net assets, respectively.
G. 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.
H. Purchases and Sales: For the year ended October 31, 1999, the Rice,
Hall, James Small Cap Portfolio and the Rice, Hall, James Small/Mid Cap
Portfolio made purchases of $55,612,053 and $15,929,285 and sales of $58,709,591
and $18,188,517 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.
24
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- --------------------------------------------------------------------------------
I. 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
October 31, 1999, the Portfolios had no borrowings under the agreement.
J. Other: At October 31, 1999, 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 40%
Small/Mid Cap ........................................... 1 32%
At October 31, 1999, the Rice, Hall, James Small/Mid Cap Portfolio had available
a capital loss carryover for Federal income tax purposes of $1,013,800 which
will expire on 10/31/2007.
25
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Directors of
UAM Funds, Inc. and Shareholders of
Rice, Hall, James Small Cap Portfolio
Rice, Hall, James Small/Mid Cap Portfolio
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of the Rice, Hall,
James Small Cap Portfolio and Rice, Hall, James Small/Mid Cap Portfolio (the
"Portfolios"), each a portfolio of the UAM Funds, Inc., at October 31, 1999, and
the results of each of their operations, the changes in each of their net assets
and the financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolios'management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 1999 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
PRICEWATERHOUSECOOPERS LLP
Boston, Massachusetts
December 17, 1999
26
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- --------------------------------------------------------------------------------
Federal Income Tax Information (Unaudited):
At October 31, 1999 Rice, Hall, James Small/Mid Cap Portfolio hereby designates
$320,931 as long-term capital gain dividends for the purpose of the dividend
paid deduction on its federal income tax return.
27
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
UAM FUNDS RHJ PORTFOLIOS
- --------------------------------------------------------------------------------
Officers and Directors
Norton H. Reamer Peter M. Whitman, Jr.
Director, President and Chairman Director
John T. Bennett, Jr. William H. Park
Director Vice President
Nancy J. Dunn Michael E. DeFao
Director Secretary
Philip D. English Gary L. French
Director Treasurer
William A. Humenuk Robert R. Flaherty
Director Assistant Treasurer
James P. Pappas Robert J. Della Croce
Director Assistant Treasurer
- --------------------------------------------------------------------------------
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.
------------------------------------
