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UAM Funds
Funds for the Informed Investor(SM)
TS&W International Octagon Portfolio
Semi-Annual Report October 31, 2000
[LOGO OF UAM]
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UAM FUNDS TS&W INTERNATIONAL OCTAGON PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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TABLE OF CONTENTS
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Shareholders' Letter ................................................... 1
Portfolio of Investments ............................................... 4
Statement of Assets and Liabilities .................................... 8
Statement of Operations ................................................ 9
Statement of Changes in Net Assets ..................................... 10
Financial Highlights ................................................... 11
Notes to Financial Statements .......................................... 12
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UAM FUNDS TS&W INTERNATIONAL OCTAGON PORTFOLIO
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October 31, 2000
Dear Shareholders:
We are pleased to provide you with our semi-annual report for the period ended
October 31, 2000 on the UAM International Octagon Portfolio managed by Thompson,
Siegel & Walmsley, Inc. (TS&W).
The TSW International Octagon portfolio had total net assets of $11,250,472 on
October 31, 2000. Over the last twelve months the TSW International Octagon
Portfolio returned 0.64% versus the MSCI EAFE Index. For the six-month period
ending October 31, EAFE fell 9.01%, while the fund fell by 14.71%.
In Europe, rising oil prices together with a weakening Euro have led to
increasing fears of imported inflation. With headline inflationary pressures now
rising above the targeted 2% limit in core Europe, the European Central Bank has
followed an increasingly hawkish stance with the most recent rate hike raising
the short term repo rate to 4.75%. The combination of a slowing global economy,
a bottoming of the Euro versus the Dollar, and signs that the European economy
is also starting to slow, should lead to an increasing perception that we are
approaching the top of the interest rate cycle.
In Japan, the market has been less concerned with the direction of interest
rates and oil prices and rather is looking for signs that both the government
and the corporate sectors are making progress on restructuring and deregulation.
There are growing signs particularly in the corporate sector of that old style
bureaucracies are being dismantled with more emphasis being placed on
shareholder value and internal profitability targets. On the other hand
continued government intervention in failing sectors of the economy such as real
estate and construction, has led to complacency and the artificial support of
unviable industries. With a large proportion of the domestic economy still
showing anemic growth or no growth, the better performing corporations are
concentrated in the high growth export related sectors concentrated around the
electronics and technology industries. We are likely to remain under-weight in
Japan until there is more evidence that corporate restructuring and government
reforms are leading to a sustainable improvement in both the economic outlook
and levels of corporate profitability.
Overall, we believe that we are approaching the peak of the interest rate cycle
in both Europe and the U.S. We remain over-weight in technology and
telecommunications where the recent under-performance has lead to quality
companies in these sectors trading at levels well below their long-term
intrinsic value.
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Despite the recent volatility in global stock markets we believe that we are
close to a turning point in terms of investor sentiment. While economic growth
is slowing we feel that an outright recession is still a low probability.
Slowing growth brings with it an eventual fall in interest rates and enhanced
visibility for the long-term investor. We continue to look for quality companies
trading at significant discounts to their intrinsic value based on our long-term
fundamental outlook.
Respectfully Submitted,
/s/ Matthew G. Thompson
Matthew G. Thompson, CFA
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.
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UAM FUNDS TS&W INTERNATIONAL OCTAGON PORTFOLIO
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Definition of the Comparative Index
-----------------------------------
Morgan Stanley Capital International EAFE Index is an unmanaged index comprised
of over 900 securities listed on the stock exchanges of countries in Europe,
Australia and the Far East.
Index returns assume reinvestment of dividends and, unlike a portfolio's
returns, do not reflect any fees or expenses. If such fees and expenses were
included in the index returns, the performance would have been lower.
Please note that one cannot invest directly in an unmanaged index.
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UAM FUNDS TS&W INTERNATIONAL OCTAGON PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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PORTFOLIO OF INVESTMENTS
FOREIGN COMMON STOCKS - 80.4%
Shares Value
---------- ----------
BRAZIL -- 2.5%
Embratel Participacoes ADR .................. 8,900 $ 144,069
Tele Norte Leste Participacoes ADR .......... 5,998 132,706
----------
276,775
----------
FINLAND -- 1.4%
Metsa Serla Oyj, Cl B ....................... 24,500 153,670
----------
FRANCE -- 9.6%
Alstom ...................................... 9,904 217,421
Aventis ..................................... 2,195 158,141
Lagardere SCA ............................... 3,480 197,331
Pechiney, Cl A .............................. 4,671 174,202
Renault ..................................... 4,594 228,181
SCOR ........................................ 2,329 106,994
----------
1,082,270
----------
GERMANY -- 4.9%
Adidas-Salomon .............................. 3,300 151,742
Dresdner Bank ............................... 5,300 219,897
EON ......................................... 3,500 177,699
----------
549,338
----------
GREECE -- 0.0%
Hellenic Telecommunications Organization .... 1 17
Sarantis .................................... 1 6
----------
23
----------
HONG KONG -- 10.4%
Bank of East Asia ........................... 95,000 214,993
Cheung Kong Holdings ........................ 19,000 210,120
China Mobile* ............................... 34,500 222,285
Guoco Group ................................. 75,000 187,522
Li & Fung ................................... 94,000 174,764
Wing Hang Bank .............................. 52,000 158,685
----------
1,168,369
----------
ISRAEL -- 1.0%
ECI Telecom ................................. 4,700 111,037
----------
The accompanying notes are an integral part of the financial statements.
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UAM FUNDS TS&W INTERNATIONAL OCTAGON PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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FOREIGN COMMON STOCKS - continued
Shares Value
---------- ----------
JAPAN -- 10.5%
Fuji Heavy Industries ....................... 26,000 $ 180,969
Hitachi ..................................... 15,200 162,872
NEC ......................................... 10,000 190,494
Nippon Broadcasting Systems ................. 3,000 168,147
Nippon Telegraph & Telephone ................ 22 200,073
Nomura Securities ........................... 7,000 148,411
Orix ........................................ 1,300 136,322
----------
1,187,288
----------
MEXICO -- 3.2%
Grupo Financiero Banamex Accival, Ser O ..... 146,400 227,314
Grupo Televisa GDR* ......................... 2,500 135,313
----------
362,627
----------
NETHERLANDS -- 10.8%
Akzo Nobel .................................. 4,640 210,998
Getronics ................................... 15,900 178,568
ING Groep ................................... 2,400 164,611
PinkRoccade ................................. 2,800 155,450
Unique International ........................ 9,200 187,150
United Pan-Europe Communications ............ 8,900 155,776
Vedior ...................................... 10,800 160,654
----------
1,213,207
----------
SINGAPORE -- 1.7%
United Overseas Bank ........................ 26,212 194,108
----------
SOUTH KOREA -- 4.6%
Kookmin Credit Card* ........................ 8,920 194,476
Samsung Electronics GDR ..................... 2,800 207,200
SK Telecom ADR .............................. 4,800 120,300
----------
521,976
----------
SPAIN -- 3.9%
Mapfre Internacional de Rease* .............. 12,000 211,052
Telefonica* ................................. 11,749 223,766
----------
434,818
----------
The accompanying notes are an integral part of the financial statements.
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OCTOBER 31, 2000 (Unaudited)
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FOREIGN COMMON STOCKS - continued
Shares Value
---------- ----------
SWEDEN -- 5.2%
Autoliv ADR ................................... 10,800 $ 236,048
Investor ...................................... 14,800 194,970
LM Ericsson ADR ............................... 11,300 156,788
-----------
587,806
-----------
UNITED KINGDOM -- 10.7%
Amvescap ...................................... 7,200 161,009
AstraZeneca ................................... 3,200 149,996
BAE Systems ................................... 37,100 210,912
Colt Telecom Group ............................ 6,500 207,650
Invensys ...................................... 74,400 177,720
Misys ......................................... 8,100 84,451
Vodafone Group ................................ 50,169 208,899
-----------
1,200,637
-----------
TOTAL FOREIGN COMMON STOCKS
(Cost $9,141,165) .......................... 9,043,949
-----------
FOREIGN PREFERRED STOCK -- 1.4%
AUSTRALIA -- 1.4%
News (Cost $91,800) ........................... 4,300 155,606
-----------
TOTAL INVESTMENTS -- 81.8%
(Cost $9,232,965) (a) ...................... 9,199,555
-----------
OTHER ASSETS AND LIABILITIES, NET -- 18.2% .... 2,050,917
-----------
TOTAL NET ASSETS -- 100.0% .................... $11,250,472
===========
* Non-Income Producing Security
Cl Class
ADR American Depositary Receipt
GDR Global Depositary Receipt
Ser Series
(a) The cost for federal income tax purposes was $9,232,965. At October 31,
2000, net unrealized depreciation for all securities based on tax cost was
$33,410. This consisted of aggregate gross unrealized appreciation for all
securities of $922,935, and aggregate gross unrealized depreciation for all
securities of $956,345.
The accompanying notes are an integral part of the financial statements.
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UAM FUNDS TS&W INTERNATIONAL OCTAGON PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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At October 31, 2000 sector diversification of the Portfolio was as follows:
% of
Net
Sector Diversification Assets Value
---------------------- -------- ---------
Aerospace & Defense ............................. 1.9% $ 210,912
Automotive ...................................... 5.7 645,198
Banks ........................................... 9.0 1,014,996
Broadcasting, Newspapers & Advertising .......... 4.5 500,791
Chemicals ....................................... 1.9 210,998
Computers & Services ............................ 3.7 418,469
Consumer Services ............................... 4.5 508,819
Diversified Operations .......................... 4.8 542,941
Electrical Components & Equipment ............... 5.0 560,566
Financial Services .............................. 4.3 479,209
Insurance ....................................... 4.3 482,657
Investment Companies ............................ 1.7 194,970
Machinery ....................................... 1.9 217,421
Medical Products & Services ..................... 2.7 308,137
Metals .......................................... 1.5 174,202
Paper & Paper Products .......................... 1.4 153,670
Real Estate ..................................... 1.9 210,120
Retail .......................................... 1.3 151,742
Telephones & Telecommunications ................. 16.7 1,883,367
Wholesale ....................................... 1.7 174,764
------- -----------
Total Foreign Common Stocks ..................... 80.4 9,043,949
Foreign Preferred Stock ......................... 1.4 155,606
------- -----------
Total Investments ............................... 81.8 9,199,555
Other Assets and Liabilities, Net ............... 18.2 2,050,917
------- -----------
Net Assets ...................................... 100.0% 11,250,472
======= ===========
The accompanying notes are an integral part of the financial statements.
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UAM FUNDS TS&W INTERNATIONAL OCTAGON PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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STATEMENT OF ASSETS AND LIABILITIES
Assets
Investments, at Cost ......................................... $ 9,232,965
============
Investments, at Value -- Note A .............................. $ 9,199,555
Receivable for Portfolio Shares Sold ......................... 1,803,363
Receivable for Investments Sold .............................. 1,256,930
Foreign Withholding Tax Reclaim Receivable ................... 72,250
Receivable from Advisor -- Note B ............................ 13,331
Dividends Receivable ......................................... 5,586
------------
Total Assets .............................................. 12,351,015
------------
Liabilities
Payable to Custodian Bank (Cost $782,458) -- Note D .......... 782,505
Payable for Investments Purchased ............................ 223,827
Payable for Custodian Fees -- Note D ......................... 62,886
Payable for Administrative Fees -- Note C .................... 12,902
Other Liabilities ............................................ 18,423
------------
Total Liabilities ......................................... 1,100,543
------------
Net Assets ................................................... $ 11,250,472
============
Net Assets Consist of:
Paid in Capital .............................................. 12,130,150
Undistributed Net Investment Loss ............................ (278,527)
Accumulated Net Realized Loss ................................ (553,802)
Unrealized Depreciation ...................................... (47,349)
------------
Net Assets ................................................... $ 11,250,472
============
Institutional Class Shares
Shares Issued and Outstanding (unlimited
authorization, no par value) ............................. 1,066,794
Net Asset Value, Offering and Redemption Price Per Share ..... $10.55
======
The accompanying notes are an integral part of the financial statements.
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UAM FUNDS TS&W INTERNATIONAL OCTAGON PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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STATEMENT OF OPERATIONS
<TABLE>
<S> <C>
Investment Income
Dividends ...................................................................... $ 399,912
Interest ....................................................................... 62,715
Less: Foreign Taxes Withheld ................................................... (566)
-----------
Total Income ................................................................ 462,061
-----------
Expenses
Investment Advisory Fees -- Note B ............................................. 180,518
Administrative Fees -- Note C .................................................. 67,804
Custodian Fees -- Note D ....................................................... 57,195
Printing Fees .................................................................. 12,635
Shareholder Servicing Fees -- Note G ........................................... 10,155
Filing and Registration Fees ................................................... 9,511
Audit Fees ..................................................................... 7,763
Trustees' Fees -- Note F ....................................................... 1,663
Other Expenses ................................................................. 14,917
Investment Advisory Fees Waived -- Note B ...................................... (58,112)
-----------
Net Expenses Before Expense Offset .......................................... 304,049
-----------
Expense Offset -- Note A ....................................................... (52)
-----------
Net Expenses After Expense Offset ........................................... 303,997
-----------
Net Investment Income .......................................................... 158,064
-----------
Net Realized Gain (Loss) on:
Investments ................................................................. 5,897,361
Foreign Currency Transactions ............................................... (380,758)
-----------
Total Net Realized Gain on Investments and Foreign Currency Transactions ....... 5,516,603
-----------
Net Change in Unrealized Appreciation (Depreciation) on:
Investments ................................................................. (7,532,631)
Foreign Currency Transactions ............................................... 6,937
-----------
Total Net Change in Unrealized Appreciation (Depreciation) ..................... (7,525,694)
-----------
Net Loss on Investments and Foreign Currency ................................... (2,009,091)
-----------
Net Decrease in Net Assets Resulting From Operations ........................... $(1,851,027)
===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
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STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
October 31, 2000 April 30,
(Unaudited) 2000
---------------- ------------
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income .......................................... $ 158,064 $ 104,901
Net Realized Gain .............................................. 5,516,603 9,160,349
Net Change in Unrealized Appreciation (Depreciation)
on Investments and Foreign Currency Transactions ............. (7,525,694) 4,104,062
------------ ------------
Net Increase (Decrease) in Net Assets
Resulting from Operations .................................... (1,851,027) 13,369,312
------------ ------------
Distributions:
Net Investment Income .......................................... -- (536,059)
In Excess of Net Investment Income ............................. -- (440,728)
------------ ------------
Total Distributions ............................................ -- (976,787)
------------ ------------
Capital Share Transactions (1):
Issued ......................................................... 22,745,117 41,495,194
In Lieu of Cash Distributions .................................. -- 886,286
Redeemed ....................................................... (70,842,826) (66,627,410)
------------ ------------
Net Decrease from Capital Share Transactions ................... (48,097,709) (24,245,930)
------------ ------------
Total Decrease ............................................... (49,948,736) (11,853,405)
------------ ------------
Net Assets:
Beginning of Period ............................................ 61,199,208 73,052,613
------------ ------------
End of Period (including undistributed net investment
loss of $(278,527) and $(55,833), respectively) .............. $ 11,250,472 $ 61,199,208
============ ============
(1) Shares Issued and Redeemed:
Issued ......................................................... 1,977,726 3,597,944
In Lieu of Cash Distributions .................................. -- 74,975
Redeemed ....................................................... (5,859,759) (5,890,866)
------------ ------------
Net Decrease from Shares Issued and Redeemed ................... (3,882,033) (2,217,947)
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
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FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
------------------------------------------------------------------------
Six Months January 2,
Ended 1997***
October 31, Year Ended April 30, to
2000 ----------------------------------- April 30,
(Unaudited) 2000 1999 1998 1997
-------------- -------- -------- -------- --------------
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period .......... $ 12.37 $ 10.19 $ 11.85 $ 10.17 $ 10.00
-------- -------- -------- -------- --------
Income from Investment Operations
Net Investment Income ........ 0.11 0.01 0.11 0.10 0.06
Net Realized and
Unrealized Gain (Loss) ..... (1.93) 2.34 (1.49) 1.82 0.11++
-------- -------- -------- -------- --------
Total from Investment
Operations ................. (1.82) 2.35 (1.38) 1.92 0.17
-------- -------- -------- -------- --------
Distributions
Net Investment Income ........ -- (0.09) (0.08) (0.09) --
In Excess of
Net Investment Income ...... -- (0.08) -- -- --
Net Realized Gain ............ -- -- (0.20) (0.15) --
-------- -------- -------- -------- --------
Total Distributions .......... -- (0.17) (0.28) (0.24) --
-------- -------- -------- -------- --------
Net Asset Value, End of
Period ..................... $ 10.55 $ 12.37 $ 10.19 $ 11.85 $ 10.17
======== ======== ======== ======== ========
Total Return+ ................... (14.71)%** 12.12% (11.51)% 19.19% 1.70%**
======== ======== ======== ======== ========
Ratios and Supplemental Data
Net Assets, End of Period
(Thousands) ................ $ 11,250 $ 61,199 $ 73,053 $113,033 $ 35,833
Ratio of Expenses to Average
Net Assets ................. 1.68%* 1.61% 1.54% 1.49% 1.75%*
Ratio of Net Investment
Income to Average
Net Assets ................. 0.87%* 0.26% 0.97% 1.23% 3.67%*
Portfolio Turnover Rate ......... 33% 92% 108% 39% 7%
</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 period.
++ The amount shown for a share outstanding throughout the period does not
accord with the aggregate net loss on investments for that period because
of the timing of sales and repurchases of the Portfolio shares in relation
to fluctuating market value of the investments of the Portfolio.
The accompanying notes are an integral part of the financial statements.
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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 TS&W International Octagon Portfolio (the "Portfolio"), formerly
Jacobs International Octagon Portfolio, a portfolio of UAM Funds Trust, is a
diversified, open-end management investment company. At October 31, 2000, the
UAM Funds were comprised of 49 active portfolios. The information presented in
the financial statements pertains only to the Portfolio. The objective of the
Portfolio is to provide long-term capital appreciation by investing in equity
securities of companies in developed and emerging markets.
A. Significant Accounting Policies: The following significant accounting
policies are in conformity with accounting principles generally accepted in the
United States of America. Such policies are consistently followed by the
Portfolio in the preparation of its financial statements. Accounting principles
generally accepted in the United States of America 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 quoted on such day. Securities quoted in foreign currencies are
translated into U.S. dollars at the current exchange rate. The converted
value is based on the bid price of the foreign currency against U.S.
dollars quoted by a pricing vendor. Short-term investments with maturities
of sixty days or less at time of purchase are valued at amortized cost, if
it approximates market value. The value of other assets and securities for
which no quotations are readily available is determined in good faith at
fair value following procedures approved by the Board of Trustees.
2. Federal Income Taxes: It is the Portfolio's intention to qualify as
a regulated investment company under Subchapter M of the Internal Revenue
Code and to distribute all of its taxable income. Accordingly, no provision
for Federal income taxes is required in the financial statements.
The Portfolio may be subject to taxes imposed by countries in which it
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invests. Such taxes are generally based on either income or gains earned or
repatriated. The Portfolio accrues and applies such taxes to net investment
income, net realized gains and net unrealized gains as income and/or
capital gains are earned.
3. Repurchase Agreements: In connection with transactions involving
repurchase agreements, the Portfolio's custodian bank takes possession of
the underlying securities ("collateral"), the value of which exceeds the
principal amount of the repurchase transaction, including accrued interest.
To the extent that any repurchase transaction exceeds one business day, the
value of the collateral is monitored on a daily basis to determine the
adequacy of the collateral. In the event of default on the obligation to
repurchase, the Portfolio has the right to liquidate the collateral and
apply the proceeds in satisfaction of the obligation. In the event of
default or bankruptcy by the counterparty to the agreement, realization
and/or retention of the collateral or proceeds may be subject to legal
proceedings.
Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the UAM Funds may transfer their daily uninvested cash balances
into a joint trading account which invests in one or more repurchase
agreements. This joint repurchase agreement is covered by the same
collateral requirements as discussed above.
4. Foreign Currency Translation: The books and records of the Portfolio
are maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars on the date of valuation. The Portfolio does not isolate that
portion of realized or unrealized gains and losses resulting from changes
in the foreign exchange rate from fluctuations arising from changes in the
market prices of the securities. These gains and losses are included in net
realized and unrealized gains and losses on investments on the statement of
operations. Net realized and unrealized gains and losses on foreign
currency transactions represent net foreign exchange gains or losses from
forward foreign currency exchange contracts, disposition of foreign
currencies, currency gains or losses realized between trade and settlement
dates on securities transactions and the difference between the amount of
the investment income and foreign withholding taxes receivable recorded on
the Portfolio's books and the U.S. dollar equivalent amounts actually
received or paid.
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5. Forward Foreign Currency Exchange Contracts: The Portfolio may enter
into forward foreign currency exchange contracts to hedge the value of
securities held and related receivables and payables against changes in
future foreign exchange rates. A forward currency contract is an agreement
between two parties to buy and sell currency at a set price on a future
date. The market value of the contract will fluctuate with changes in
currency exchange rates. The contract is marked-to-market daily using the
current forward rate and the change in market value is recorded by the
Portfolio as unrealized gain or loss. The Portfolio recognizes realized
gains or losses when the contract is closed, equal to the difference
between the value of the contract at the time it was opened and the value
at the time it was closed. Risks may arise from the unanticipated movements
in the value of a foreign currency relative to the U.S. dollar. Risks may
also arise upon entering into these contracts from the potential inability
of counterparties to meet the terms of their contracts and are generally
limited to the amount of unrealized gain on the contracts, if any, at the
date of default.
6. Distributions to Shareholders: The Portfolio will distribute
substantially all of its net investment income 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 accounting principles generally accepted in the
United States of America.
Permanent book-tax differences are not included in ending undistributed
net investment income (loss) for the purpose of calculating net investment
income (loss) per share in the financial highlights.
7. Other: Security transactions are accounted for on trade date, the
date the trade is executed. Costs used in determining realized gains and
losses on the sale of investment securities are based on the specific
identification method. Dividend income is recorded on the ex-dividend date,
except that certain dividends from foreign securities are recorded as soon
as the Portfolio is informed of the ex-dividend date. Interest income is
recognized on the accrual basis. Most expenses of the UAM Funds can be
directly attributed to a particular portfolio. Expenses that cannot be
directly attributed to a portfolio are apportioned among the portfolios of
the UAM Funds based on their relative net assets. Custodian fees for the
Portfolio are shown gross of expense offsets, if any, for custodian balance
credits.
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B. Investment Advisory Services: Under the terms of an investment advisory
agreement, TS&W Asset Management (the "Adviser"), a subsidiary of United Asset
Management Corporation ("UAM"), provides investment advisory services to the
Portfolio at a fee calculated at an annual rate of 1.00% of average daily net
assets. The Adviser has voluntarily agreed to waive a portion of its advisory
fees and to assume expenses, if necessary, in order to keep the Portfolio's
total annual operating expenses, after the effect of expense offset
arrangements, from exceeding 1.75% of average daily net assets. Old Mutual, Plc.
gained control of United Asset Management on Sept. 26, 2000.
C. Administrative Services: UAM Fund Services, Inc. (the "Administrator"),
a wholly-owned subsidiary of UAM, provides and oversees administrative, fund
accounting, dividend disbursing, shareholder servicing and transfer agent
services to the Portfolio under a Fund Administration Agreement (the
"Agreement"). The Administrator has entered into separate Service Agreements
with SEI Investments Mutual Funds Services ("SEI"), a wholly-owned subsidiary of
SEI Investments Company, DST Systems, Inc. ("DST"), and UAM Shareholder Service
Center ("UAMSSC"), an affiliate of UAM, to assist in providing certain services
to the Portfolio.
Pursuant to the Agreement, the Portfolio pays the Administrator 0.073% per
annum of the average daily net assets of the Portfolio, an annual base fee of
$72,500, and a fee based on the number of active shareholder accounts.
For the period ended October 31, 2000, the Administrator was paid $67,804,
of which $23,059 was paid to SEI for their services, $12,562 to DST for their
services, and $14,591 to UAMSSC for their services.
D. Custodian: The Chase Manhattan Bank is custodian for the Portfolio's
assets held in accordance with the custodian agreement.
E. Distribution Services: UAM Fund Distributors, Inc. (the "Distributor"),
a wholly-owned subsidiary of UAM, distributes the shares of the Portfolio. The
Distributor does not receive any fee or other compensation with respect to the
Portfolio.
F. Trustees' Fees: Each Trustee, who is not an officer or affiliated
person, receives $3,000 per meeting attended plus reimbursement of expenses
incurred in attending Trustee meetings, which is allocated proportionally among
the active portfolios of UAM Funds, plus a quarterly retainer of $200 for each
active portfolio of the UAM Funds.
15
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UAM FUNDS TS&W INTERNATIONAL OCTAGON PORTFOLIO
--------------------------------------------------------------------------------
G. Shareholder Servicing Fees: Certain brokers, dealers, trust companies
and other financial representatives receive compensation from the UAM Funds for
providing a variety of services, including record keeping and transaction
processing. Such fees are based on the assets of the UAM Funds that are serviced
by the financial representative.
H. Purchases and Sales: For the six months ended October 31, 2000, the
Portfolio made purchases of $10,384,515 and sales of $57,773,103 of investment
securities other than long-term U.S. Government and short-term securities. There
were no purchases or sales of long term U.S. Government securities.
I. Line of Credit: The Portfolio, along with certain other Portfolios of
UAM Funds, collectively entered into an agreement which enables them to
participate in a $100 million unsecured line of credit with several banks.
Borrowings will be made solely to temporarily finance the repurchase of capital
shares. Interest is charged to each participating Portfolio based on its
borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In
addition, a commitment fee of 0.09% per annum, payable at the end of each
calendar quarter, is accrued by each participating Portfolio based on its
average daily unused portion of the line of credit. During the six months ended
October 31, 2000, The Portfolio had no borrowings under the agreement.
J. Other: At October 31, 2000, 23% of total shares outstanding were held
by 2 record shareholders owning 10% or greater of the aggregate total shares
outstanding.
At October 31, 2000, the net assets of the Portfolio were substantially
comprised of foreign denominated securities and/or currency. Changes in currency
exchange rates will affect the value of and investment income from such
securities and currency.
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of U.S. dollar
denominated transactions as a result of, among other factors, the possibly lower
level of governmental supervision and regulation of foreign securities markets
and the possibility of political or economic instability.
At April 30, 2000, the Portfolio had available a capital loss carryover for
Federal income tax purposes of approximately $6,385,172 which will expire on
April 30, 2007.
On September 13, 2000, the Board of Trustees of UAM Funds, Trust approved
the liquidation of TS&W International Octagon Portfolio pending shareholder
approval at a special meeting of Shareholders to be held on January 10, 2001.
16
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UAM FUNDS TS&W INTERNATIONAL OCTAGON PORTFOLIO
--------------------------------------------------------------------------------
Officers and Trustees
James F. Orr, III William H. Park
Trustee, President and Chairman Vice President
John T. Bennett, Jr. Gary L. French
Trustee Treasurer
Nancy J. Dunn Robert J. Della Croce
Trustee Assistant Treasurer
Philip D. English Linda T. Gibson, Esq.
Trustee Secretary
William A. Humenuk Martin J. Wolin, Esq.
Trustee Assistant Secretary
James P. Pappas Theresa DelVecchio
Vice President Assistant Secretary
--------------------------------------------------------------------------------
UAM Funds
P.O. Box 219081
Kansas City, MO 64121
(toll free)
1-877-UAM-LINK (826-5465)
www.uam.com
Investment Adviser
Thompson, Siegel & Walmsley, Inc.
500 Monument Avenue
Richmond, VA 23230-0883
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.
---------------------------------
<PAGE>
[LOGO OF UAM FUNDS]
Supplement dated October 27, 2000, to the Annual Report of the Financials for
the TS&W International Octagon Portfolio.
The Annual Report is hereby supplemented to reflect the following:
On October 27, 2000, there was a Special Meeting of Shareholders of the
Fund, at which the shareholders of the Portfolio voted on the listed
proposals. The following were the results of the vote:
<TABLE>
<CAPTION>
For: Against: Abstain:
---------- -------- --------
<S> <C> <C> <C>
1.To elect the Trustees/Directors.
01) John T. Bennett, Jr. ........................ 19,010,168 -- 451,579
02) Nancy J. Dunn................................ 19,032,354 -- 429,393
03) William A. Humenuk........................... 19,032,469 -- 429,278
04) Philip D. English............................ 19,032,469 -- 429,278
05) James F. Orr, III............................ 19,030,371 -- 431,371
2.To approve the proposed change of the investment objective of the Fund from
fundamental to non-fundamental.
1,559,064 18,032 6,146
3.To approve the proposed changes to the Fund's fundamental investment
restrictions.
a) Diversification of Investments:............... 1,569,389 261 13,592
b) Borrowing:.................................... 1,569,389 261 13,592
c) Issuing of Senior Securities:................. 1,568,911 740 13,591
d) Underwriting:................................. 1,568,911 740 13,591
e) Industry Concentration:....................... 1,569,389 740 13,592
f) Investment in Real Estate:.................... 1,569,389 261 13,592
g) Commodities:.................................. 1,569,389 261 13,592
h) Lending:...................................... 1,568,911 740 13,591
i) Illiquid Securities:.......................... 1,569,389 261 13,592
j) Control or Management:........................ 1,569,389 261 13,592
k) Unseasoned Issuers:........................... 1,569,389 261 13,592
l) Borrowing exceeding 5%:....................... 1,569,389 261 13,592
m) Pledging:..................................... 1,569,389 261 13,592
n) Margin Purchases and Short Sales:............. 1,569,389 261 13,592
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
For: Against: Abstain:
--------- -------- --------
<S> <C> <C> <C>
o) Directors' Ownership of Shares:............... 1,569,389 261 13,592
p) Interest in Oil, Gas or Other Mineral
Exploration or Development Programs:.......... 1,569,389 261 13,592
q) Futures and Options:.......................... 1,569,389 261 13,592
4.To ratify the selection of PricewaterhouseCoopers LLP as the independent
auditors.
1,842,328 682 5,988
5.To approve an Interim Investment Advisory Agreement between each Fund and
its investment adviser.
1,840,339 2,671 5,988
6.To approve an Investment Advisory Agreement between the Fund and its
investment adviser, subject to completion of the merger between United Asset
Management Corporation and Old Mutual Plc.
1,839,044 2,670 7,284
</TABLE>
[LOGO OF UAM FUNDS]
