<PAGE>
UAM Funds
Funds for the Informed Investor(SM)
Chicago Asset Management Company Portfolios
Semi-Annual Report October 31, 2000
[LOGO OF UAM]
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UAM FUNDS CHICAGO ASSET MANAGEMENT
COMPANY PORTFOLIOS
OCTOBER 31, 2000
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TABLE OF CONTENTS
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Shareholders' Letter ...................................................... 1
Portfolios of Investments
Value/Contrarian Portfolio .......................................... 5
Intermediate Bond Portfolio ......................................... 8
Statements of Assets and Liabilities ...................................... 12
Statements of Operations .................................................. 13
Statements of Changes in Net Assets
Value/Contrarian Portfolio .......................................... 14
Intermediate Bond Portfolio ......................................... 15
Financial Highlights
Value/Contrarian Portfolio .......................................... 16
Intermediate Bond Portfolio ......................................... 17
Notes to Financial Statements ............................................. 18
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UAM FUNDS CHICAGO ASSET MANAGEMENT
COMPANY PORTFOLIOS
--------------------------------------------------------------------------------
October 31, 2000
Dear Shareholders:
October 31, 2000 is the semi-annual reporting period for the Chicago Asset
Management Value/Contrarian Portfolio for equity investors and the Intermediate
Bond Portfolio for our fixed income clients. This letter will review the
investment environment for the last six months, the strategies and the returns
for the Portfolios. We would like to take this opportunity to thank you for your
continued confidence in Chicago Asset Management.
Chicago Asset Management Value/Contrarian Portfolio
The investment environment during the quarter and six months ended October 31,
2000 was characterized by ongoing significant market volatility and a notable
rotation away from Growth and returning to Value. This has been occurring for
some quarters now, and it has really come full force in this past six months. In
essence, we believe it's a market returning to normal following the exceptional
distortions which have been experienced over the past few years. These
distortions have substantially overvalued, on a temporary basis, a narrow group
of securities representing some of the more speculative Growth companies. In
contrast, many fine companies became undervalued. With this market rotation
toward normal value, the rate of return, net of fees, for the Fund for the six
months ended October 31st was -0.44% in comparison to the S&P 500 Composite
Index of -1.03%.
Of note here is the exceptional turn in the direction of market preference for
security type. Specifically, the move away from Growth and in favor of
Value/Contrarian issues is represented when the two quarters of the six months
are compared. In the July quarter, the Fund showed a return of -6.7% in
comparison to the S&P 500 Composite Index of -1.2%. In the October quarter, the
Fund showed a return of +6.7% in comparison to a return of +0.2% for the S&P 500
Composite Index. We view this reversal as significant and potentially decisive.
We have always maintained that purity of style and adherence to discipline
within the Value/Contrarian approach was mandatory in order to benefit from the
seemingly inevitable rotation of the equity market to more normal relative
valuations. Now this process seems to be at hand, and the portfolio of
Value/Contrarian securities is significantly benefiting the Fund in comparison
to popular market indices.
During this market rotation, we have continued to take advantage of our ongoing
discipline of active rebalancing. Securities which benefited the most, and
appreciated sharply, were sold in part or in total. The proceeds were reinvested
into issues which had not fully participated in this rotation, and which we
believe hold potential to outperform in the foreseeable future. In summary, the
long overdue market normalizing moves are now occurring and the Fund is reaping
the benefit.
1
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UAM FUNDS CHICAGO ASSET MANAGEMENT
COMPANY PORTFOLIOS
--------------------------------------------------------------------------------
Chicago Asset Management Intermediate Bond Portfolio
The six-month period ended October 31, 2000 was a favorable period for investors
in high quality fixed income portfolios.
As the period began, the market was focused on rapid economic expansion, fears
of inflation, and further Fed tightening. Indeed, on May 16th the Federal Open
Market Committee ("FOMC") did increase the Fed Funds rate for the sixth time in
the last year. This time it was the unusually aggressive rate boost of 50 basis
points, bringing the Fed Funds rate to 5.9375%.
Shortly afterward, economic reports started coming in which showed that higher
borrowing costs were starting to affect key sectors of the economy such as
housing, manufacturing, and employment. Even retail sales showed a surprising
decline of 2/10% in the May report. Payroll employment came in much lower than
expected in May and June.
Therefore, in June interest rates on Treasury securities began to modestly
decline. There was a shift in market psychology from continued Fed tightening to
a belief that the Fed was either done or almost done for the year. Market
participants were again willing to add to their fixed income holdings. This
trend which began in June was reinforced in July when the FOMC voted to leave
the Fed Funds rate unchanged at 7.125%. Another factor giving the market a
psychological boost were the Congressional Budget Office's updated projections
on the Federal Budget surplus. They revised up their estimated surplus for the
fiscal year ending September 30, 2000, to $232 billion from $179 billion. The
surplus for the next ten years is anticipated to go from $3.19 trillion to $4.56
trillion, a 43% jump. The Treasury may be buying back outstanding debt at a much
faster pace than previously anticipated.
Inflation has remained under control and, most importantly, productivity has
been excellent. While there have been mixed data on the economy, the U.S.
expansion remains on track. Our economy is resilient.
During this period, we significantly increased the portfolio's exposure to the
U.S. Treasury market.
For the six months, the Portfolio returned 4.82%, net of fees, versus the Lehman
Intermediate Government/Credit Index return of 5.34%.
The Portfolio had the following characteristics relative to the Lehman
Intermediate Government/Credit Index as of October 31, 2000:
Portfolio Index
--------- -----
Average Duration ..................... 3.46 Years 3.45 Years
Average Maturity ..................... 4.67 Years 4.42 Years
2
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UAM FUNDS CHICAGO ASSET MANAGEMENT
COMPANY PORTFOLIOS
--------------------------------------------------------------------------------
Chicago Asset Management Company
The investment results presented in the Adviser's letter represent past
performance and should not be construed as a guarantee of future results. If the
advisor didn't have temporary fee waivers and didn't assume expenses on behalf
of the Portfolios, total returns would have been lower. 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.
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.
3
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UAM FUNDS CHICAGO ASSET MANAGEMENT
COMPANY PORTFOLIOS
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Definition of Comparative Indices
---------------------------------
Lehman Intermediate Government/Credit Index is an unmanaged index of bonds with
intermediate-term durations, including U.S. treasury bonds and bonds issued by
U.S. government agencies and quasi-federal corporation, and corporate debt
guaranteed by the U.S. government.
S&P 500 Composite Index is an unmanaged index comprised of stocks representing
major U.S. market industries, including 400 industrial stocks, 40 financial
stocks, 40 utility stocks and 20 transportation stocks.
Index returns assume reinvestment of dividends and, unlike a portfolio's
returns, do not reflect any fees or expenses. If such fees and expenses were
included in the index returns, the performance would have been lower.
Please note that one cannot invest directly in an unmanaged index.
4
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UAM FUNDS CHICAGO ASSET MANAGEMENT
VALUE/CONTRARIAN PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
COMMON STOCKS - 98.9%
Shares Value
-------- ----------
AEROSPACE & DEFENSE -- 4.6%
Raytheon, Cl A ........................ 92,856 $2,971,392
----------
AUTOMOTIVE -- 5.4%
DaimlerChrysler ....................... 30,153 1,384,023
General Motors ........................ 33,525 2,082,740
----------
3,466,763
----------
BANKS -- 14.1%
Bank of America ....................... 44,633 2,145,173
Bank One .............................. 70,682 2,579,893
First Union ........................... 67,900 2,058,219
Wells Fargo ........................... 49,600 2,297,100
----------
9,080,385
----------
BEAUTY PRODUCTS -- 2.9%
Procter & Gamble ...................... 25,900 1,850,231
----------
CHEMICALS -- 3.6%
Dow Chemical .......................... 75,950 2,325,969
----------
COMMUNICATIONS EQUIPMENT -- 3.7%
Motorola .............................. 96,000 2,394,000
----------
COMPUTERS & SERVICES -- 3.3%
IBM ................................... 21,600 2,127,600
----------
CONSUMER DURABLES -- 3.2%
Goodyear Tire & Rubber ................ 112,675 2,084,487
----------
CONTAINERS & PACKAGING -- 2.1%
Crown Cork & Seal ..................... 148,800 1,357,800
----------
FINANCIAL SERVICES -- 2.3%
Deluxe ................................ 64,675 1,459,230
----------
FOOD, BEVERAGE & TOBACCO -- 3.8%
H.J. Heinz ............................ 57,700 2,419,794
----------
The accompanying notes are an integral part of the financial statements.
5
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UAM FUNDS CHICAGO ASSET MANAGEMENT
VALUE/CONTRARIAN PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
COMMON STOCKS - continued
Shares Value
---------- ----------
INSURANCE -- 8.0%
Aetna ..................................... 37,300 $2,156,406
Allstate .................................. 74,700 3,006,675
----------
5,163,081
----------
MEDICAL PRODUCTS & SERVICES -- 3.9%
Becton Dickinson .......................... 75,700 2,535,950
----------
MINING -- 1.9%
Newmont Mining ............................ 90,700 1,230,119
----------
PAPER & PAPER PRODUCTS -- 6.5%
International Paper ....................... 46,025 1,685,666
Weyerhaeuser .............................. 53,075 2,491,208
----------
4,176,874
----------
PETROLEUM REFINING -- 6.8%
Conoco .................................... 86,700 2,357,156
Sunoco .................................... 67,300 2,014,794
----------
4,371,950
----------
PHARMACEUTICALS -- 6.4%
Abbott Laboratories ....................... 45,900 2,424,094
Pharmacia ................................. 30,842 1,696,310
----------
4,120,404
----------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES -- 5.1%
Eastman Kodak ............................. 48,700 2,185,412
Xerox ..................................... 128,100 1,080,844
----------
3,266,256
----------
RETAIL -- 3.1%
Sears Roebuck ............................. 66,700 1,982,991
----------
TELEPHONES & TELECOMMUNICATION -- 8.2%
AT&T ...................................... 96,100 2,228,319
Verizon Communications .................... 53,050 3,066,953
----------
5,295,272
----------
TOTAL COMMON STOCKS
(Cost $69,730,913) ..................... 63,680,548
----------
The accompanying notes are an integral part of the financial statements.
6
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UAM FUNDS CHICAGO ASSET MANAGEMENT
VALUE/CONTRARIAN PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENT -- 1.1%
<TABLE>
<CAPTION>
Face
Amount Value
------------ -----------
<S> <C> <C>
REPURCHASE AGREEMENT -- 1.1%
Chase Securities, Inc. 6.35%, dated 10/31/00,
due 11/01/00, to be repurchased at $706,125,
collateralized by $528,811 of various
U.S. Treasury Obligations, valued at
$706,014 (Cost $706,000) ............................... $ 706,000 $ 706,000
-----------
TOTAL INVESTMENTS -- 100.0%
(Cost $70,436,913) (a) ................................. 64,386,548
-----------
OTHER ASSETS AND LIABILITIES, NET -- 0.0% ................. 31,415
-----------
TOTAL NET ASSETS -- 100.0% ................................ $64,417,963
===========
</TABLE>
Cl Class
(a) The cost for federal income tax purposes was $70,436,913. At October 31,
2000, net unrealized depreciation for all securities based on tax cost was
$6,050,365. This consisted of aggregate gross unrealized appreciation for
all securities of $5,053,711 and an aggregate gross unrealized depreciation
for all securities of $11,104,076.
The accompanying notes are an integral part of the financial statements.
7
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UAM FUNDS CHICAGO ASSET MANAGEMENT
INTERMEDIATE BOND PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
CORPORATE OBLIGATIONS -- 36.3%
Face
Amount Value
---------- ----------
AUTOMOTIVE -- 1.8%
General Motors
6.250%, 05/01/05 ....................... $ 250,000 $ 241,250
----------
BANKS -- 8.2%
BankAmerica
7.625%, 06/15/04 ....................... 250,000 254,062
Northern Trust
6.500%, 05/01/03 ....................... 250,000 247,812
State Street Boston
7.350%, 06/15/26 ....................... 250,000 256,562
SunTrust Banks
6.000%, 02/15/26 ....................... 275,000 258,156
Wachovia
6.625%, 11/15/06 ....................... 100,000 96,875
----------
1,113,467
----------
BEAUTY PRODUCTS -- 1.8%
Procter & Gamble
6.600%, 12/15/04 ....................... 250,000 248,990
----------
CHEMICALS -- 1.8%
E.I. DuPont de Nemours
6.750%, 10/15/04 ....................... 250,000 249,062
----------
FINANCIAL SERVICES -- 14.0%
Associates of North America
7.750%, 02/15/05 ....................... 250,000 256,562
6.500%, 10/15/02 ....................... 150,000 149,625
Ford Motor Credit
5.125%, 10/15/01 ....................... 250,000 245,937
General Electric Capital Services
7.500%, 05/15/05 ....................... 250,000 255,625
7.000%, 02/03/03 ....................... 250,000 251,875
General Motors Acceptance
6.750%, 02/07/02 ....................... 100,000 99,854
The accompanying notes are an integral part of the financial statements.
8
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UAM FUNDS CHICAGO ASSET MANAGEMENT
INTERMEDIATE BOND PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
CORPORATE OBLIGATIONS - continued
Face
Amount Value
---------- ----------
FINANCIAL SERVICES -- continued
Heller Financial
6.250%, 03/01/01 ....................... $ 250,000 $ 249,375
Sears Roebuck Acceptance
6.700%, 08/13/01 ....................... 150,000 150,000
6.160%, 12/04/00 ....................... 250,000 249,915
----------
1,908,768
----------
PETROLEUM REFINING -- 0.4%
Exxon Capital
6.625%, 08/15/02 ....................... 59,000 59,074
----------
RETAIL -- 2.8%
Wal-Mart Stores
6.375%, 03/01/03 ....................... 140,000 138,950
6.150%, 08/10/01 ....................... 250,000 249,063
----------
388,013
----------
TELEPHONES & Telecommunications -- 1.9%
Worldcom
7.875%, 05/15/03 ....................... 250,000 254,235
----------
UTILITIES -- 3.6%
National Rural Utilities
5.950%, 01/15/03 ....................... 250,000 245,938
5.140%, 10/22/01 ....................... 250,000 246,250
----------
492,188
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $4,945,375) ...................... 4,955,047
----------
U.S. TREASURY OBLIGATIONS -- 39.1%
U.S. Treasury Notes
5.750%, 11/15/00 ....................... 250,000 249,910
7.500%, 11/15/01 ....................... 250,000 252,920
6.000%, 09/30/02 ....................... 750,000 750,788
5.250%, 08/15/03 ....................... 750,000 737,588
6.750%, 05/15/05 ....................... 700,000 725,697
5.625%, 02/15/06 ....................... 450,000 445,991
The accompanying notes are an integral part of the financial statements.
9
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UAM FUNDS CHICAGO ASSET MANAGEMENT
INTERMEDIATE BOND PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - continued
<TABLE>
<CAPTION>
Face
Amount Value
---------- ----------
<S> <C> <C>
5.625%, 05/15/08 ............................. $ 500,000 $ 492,900
6.000%, 08/15/09 ............................. 675,000 682,007
5.750%, 08/15/10 ............................. 1,000,000 999,060
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,313,854) ............................ 5,336,861
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 13.3%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 1.9%
7.000%, 02/15/03 ............................. 250,000 252,813
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 11.4%
5.420%, 01/23/01 ............................. 50,000 49,883
7.125%, 02/15/05 ............................. 500,000 510,675
5.250%, 01/15/09 ............................. 250,000 227,415
6.400%, 05/14/09 ............................. 500,000 477,500
6.375%, 06/15/09 ............................. 300,000 293,478
----------
1,558,951
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,833,336) ............................ 1,811,764
----------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS -- 2.6%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 1.8%
5.500%, 05/01/13 ............................. 262,032 247,455
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.8%
7.000%, 12/01/07 ............................. 117,035 116,376
----------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(Cost $378,578) .............................. 363,831
----------
FOREIGN GOVERNMENT SECURITY -- 1.8%
Government of Canada
6.375%, 11/30/04 (Cost $249,105) ............. 250,000 248,438
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
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UAM FUNDS CHICAGO ASSET MANAGEMENT
INTERMEDIATE BOND PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
ASSET-BACKED SECURITY -- 1.8%
<TABLE>
<CAPTION>
Face
Amount Value
------------ -----------
<S> <C> <C>
Premier Auto Trust, Cl A4, Ser 2
5.590%, 02/09/04 (Cost $249,931) ........................ $ 250,000 $ 245,400
-----------
SHORT-TERM INVESTMENT -- 3.5%
REPURCHASE AGREEMENT -- 3.5%
Chase Securities, Inc. 6.35%, dated 10/31/00, due 11/01/00,
to be repurchased at $473,083, collateralized by $354,288
of various U.S. Treasury Obligations, valued at $473,009
(Cost $473,000) ......................................... 473,000 473,000
-----------
TOTAL INVESTMENTS -- 98.4%
(Cost $13,443,179) (a) .................................. 13,434,341
-----------
OTHER ASSETS AND LIABILITIES, NET -- 1.6% .................. 217,847
-----------
TOTAL NET ASSETS -- 100.0% ................................. $13,652,188
===========
</TABLE>
Cl Class
Ser Series
(a) The cost for federal income tax purposes was $13,443,179. At October 31,
2000, net unrealized depreciation for all securities based on tax cost was
$8,838. This consisted of aggregate gross unrealized appreciation for all
securities of $98,397 and an aggregate gross unrealized depreciation for
all securities of $107,235.
The accompanying notes are an integral part of the financial statements.
11
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UAM FUNDS CHICAGO ASSET MANAGEMENT
INTERMEDIATE BOND PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Chicago Asset Chicago Asset
Management Management
Value/ Intermediate
Contrarian Bond
Portfolio Portfolio
------------- -------------
<S> <C> <C>
Assets
Investments, at Cost ......................... $ 70,436,913 $ 13,443,179
============ ============
Investments, at Value -- Note A .............. $ 64,386,548 $ 13,434,341
Cash ......................................... -- 413
Receivable for Investments Sold .............. 432,791 --
Dividends Receivable ......................... 90,292 --
Interest Receivable .......................... -- 236,048
Receivable from Advisor -- Note B ............ -- 3,058
Receivable for Portfolio Shares Sold ......... -- 661
Other Assets ................................. 55,015 --
------------ ------------
Total Assets ................................. 64,964,646 13,674,521
------------ ------------
Liabilities
Payable for Investments Purchased ............ 283,383 --
Payable to Custodian Bank -- Note D .......... 199,789 --
Payable for Investment Advisory Fees -- Note B 32,607 --
Payable for Administrative Fees -- Note C .... 11,508 6,610
Payable for Custodian Fees -- Note D ......... 4,938 2,750
Other Liabilities ............................ 14,458 12,973
------------ ------------
Total Liabilities ......................... 546,683 22,333
------------ ------------
Net Assets ................................... $ 64,417,963 $ 13,652,188
============ ============
Net Assets Consist of:
Paid in Capital .............................. 65,529,695 13,757,926
Undistributed Net Investment Income .......... 15,706 67,039
Accumulated Net Realized Gain (Loss) ......... 4,922,927 (163,939)
Unrealized Depreciation ...................... (6,050,365) (8,838)
------------ ------------
Net Assets ................................... $ 64,417,963 $ 13,652,188
============ ============
Institutional Class Shares
Shares Issued and Outstanding
(unlimited authorization, no par value) ... 4,552,733 1,332,614
Net Asset Value, Offering and Redemption
Price Per Share ........................... $14.15 $10.24
====== ======
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
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UAM FUNDS CHICAGO ASSET MANAGEMENT COMPANY
PORTFOLIOS FOR THE SIX MONTHS
ENDED OCTOBER 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Chicago Asset Chicago Asset
Management Management
Value/ Intermediate
Contrarian Bond
Portfolio Portfolio
----------------- ---------------
<S> <C> <C>
Investment Income
Dividends .......................................... $ 925,012 $ --
Interest ........................................... 23,416 436,918
----------- -----------
Total Income .................................... 948,428 436,918
----------- -----------
Expenses
Investment Advisory Fees -- Note B ................. 201,215 32,390
Administrative Fees -- Note C ...................... 68,633 43,029
Shareholder Servicing Fees -- Note G ............... 34,896 127
Printing Fees ...................................... 10,396 6,615
Filing and Registration Fees ....................... 10,212 9,364
Audit Fees ......................................... 6,939 6,917
Custodian Fees -- Note D ........................... 3,404 2,313
Trustees' Fees -- Note F ........................... 1,295 1,190
Legal Fees ......................................... 1,266 524
Other Expenses ..................................... 2,019 2,930
Investment Advisory Fees Waived -- Note B .......... -- (32,390)
Expenses Assumed by the Adviser -- Note B .......... -- (18,940)
----------- -----------
Net Expenses Before Expense Offset .............. 340,275 54,069
----------- -----------
Expense Offset-- Note A ............................ (285) (85)
----------- -----------
Net Expenses After Expense Offset ............... 339,990 53,984
----------- -----------
Net Investment Income .............................. 608,438 382,934
----------- -----------
Net Realized Gain (Loss) on Investments ............ 3,482,479 (125,111)
Net Change in Unrealized Appreciation (Depreciation)
on Investments .................................. (4,276,219) 377,543
----------- -----------
Net Gain (Loss) on Investments ..................... (793,740) 252,432
----------- -----------
Net Increase (Decrease) in Net Assets Resulting from
Operations ...................................... $ (185,302) $ 635,366
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
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UAM FUNDS CHICAGO ASSET MANAGEMENT
VALUE/CONTRARIAN PORTFOLIO
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
October 31, 2000 April 30,
(Unaudited) 2000
----------------- ---------------
<S> <C> <C>
Increase (Decrease) In Net Assets
Operations:
Net Investment Income ......................................... $ 608,438 $ 478,896
Net Realized Gain ............................................. 3,482,479 3,514,103
Net Change in Unrealized Appreciation (Depreciation) .......... (4,276,219) (6,806,979)
------------ ------------
Net Decrease in Net Assets
Resulting from Operations ................................... (185,302) (2,813,980)
------------ ------------
Distributions:
Net Investment Income ......................................... (592,732) (491,532)
In Excess of Net Investment Income ............................ -- (8,541)
Net Realized Gain ............................................. -- (3,769,125)
------------ ------------
Total Distributions ........................................... (592,732) (4,269,198)
------------ ------------
Capital Share Transactions (1):
Issued ........................................................ 5,049,074 50,271,001
In Lieu of Cash Distributions ................................. 592,710 4,268,837
Redeemed ...................................................... (5,287,978) (9,466,878)
------------ ------------
Net Increase from Capital Share Transactions .................. 353,806 45,072,960
------------ ------------
Total Increase (Decrease) ................................... (424,228) 37,989,782
------------ ------------
Net Assets:
Beginning of Period ........................................... 64,842,191 26,852,409
------------ ------------
End of Period (including undistributed net investment income of
$15,706 and $0, respectively) ............................... $ 64,417,963 $ 64,842,191
============ ============
(1) Shares Issued and Redeemed:
Issued ........................................................ 367,159 3,328,094
In Lieu of Cash Distributions ................................. 43,374 305,313
Redeemed ...................................................... (378,033) (645,041)
------------ ------------
Net Increase from Shares Issued and Redeemed .................. 32,500 2,988,366
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
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UAM FUNDS CHICAGO ASSET MANAGEMENT
INTERMEDIATE BOND PORTFOLIO
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
October 31, 2000 April 30,
(Unaudited) 2000
---------------- ---------------
<S> <C> <C>
Increase (Decrease) In Net Assets
Operations:
Net Investment Income ......................................... $ 382,934 $ 765,582
Net Realized Loss ............................................. (125,111) (39,193)
Net Change in Unrealized Appreciation (Depreciation) .......... 377,543 (546,064)
------------ ------------
Net Increase in Net Assets Resulting from Operations .......... 635,366 180,325
------------ ------------
Distributions:
Net Investment Income ......................................... (379,141) (782,549)
Net Realized Gain ............................................. -- (15,930)
------------ ------------
Total Distributions ........................................... (379,141) (798,479)
------------ ------------
Capital Share Transactions (1):
Issued ........................................................ 14,203 1,644,182
In Lieu of Cash Distributions ................................. 379,140 798,478
Redeemed ...................................................... (174,266) (2,189,660)
------------ ------------
Net Increase from Capital Share Transactions .................. 219,077 253,000
------------ ------------
Total Increase (Decrease) ................................... 475,302 (365,154)
------------ ------------
Net Assets:
Beginning of Period ........................................... 13,176,886 13,542,040
------------ ------------
End of Period (including undistributed net investment income of
$67,039 and $63,246, respectively) .......................... $ 13,652,188 $ 13,176,886
============ ============
(1) Shares Issued and Redeemed:
Issued ........................................................ 1,398 161,220
In Lieu of Cash Distributions ................................. 37,428 78,744
Redeemed ...................................................... (17,020) (217,050)
------------ ------------
Net Increase from Shares Issued and Redeemed .................. 21,806 22,914
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
UAM FUNDS CHICAGO ASSET MANAGEMENT
VALUE/CONTRARIAN PORTFOLIO
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
Six Months
Ended
October 31, Years Ended April 30,
2000 ------------------------------------------------------------
Unaudited 2000 1999 1998 1997 1996
-------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ..... $ 14.34 $ 17.53 $ 15.96 $ 13.07 $ 13.67 $ 11.14
-------- -------- -------- -------- -------- --------
Income From Investment
Operations
Net Investment Income ...... 0.13 0.17 0.15 0.17 0.18 0.19
Net Realized and
Unrealized Gain (Loss) .. (0.19) (2.02) 2.98 3.84 0.30 2.86
-------- -------- -------- -------- -------- --------
Total from Investment
Operations .............. (0.06) (1.85) 3.13 4.01 0.48 3.05
-------- -------- -------- -------- -------- --------
Distributions
Net Investment Income ...... (0.13) (0.17) (0.16) (0.18) (0.24) (0.23)
In Excess of Net
Investment Income ....... -- (0.01) -- -- -- --
Net Realized Gain .......... -- (1.16) (1.40) (0.94) (0.84) (0.29)
-------- -------- -------- -------- -------- --------
Total Distributions ........ (0.13) (1.34) (1.56) (1.12) (1.08) (0.52)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period .................. $ 14.15 $ 14.34 $ 17.53 $ 15.96 $ 13.07 $ 13.67
======== ======== ======== ======== ======== ========
Total Return ............... (0.44)%* (10.24)%+ 21.68%+ 31.71%+ 3.72%+ 28.00%+
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data
Net Assets, End of Period
(Thousands) ............. $ 64,418 $ 64,842 $ 26,852 $ 22,552 $ 13,804 $ 892
Ratio of Expenses to Average
Net Assets .............. 1.05%* 1.19% 0.99% 0.95% 0.95% 1.06%
Ratio of Net Investment
Income to Average
Net Assets .............. 1.88%* 1.32% 0.97% 1.16% 1.89% 1.51%
Portfolio Turnover Rate .... 27% 48% 39% 55% 21% 33%
</TABLE>
* Annualized
** Not Annualized
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the advisor during the periods indicated.
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
UAM FUNDS CHICAGO ASSET MANAGEMENT
INTERMEDIATE BOND PORTFOLIO
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Six Months
Ended
October 31, Years Ended April 30,
2000 --------------------------------------------------------
Unaudited 2000 1999 1998 1997 1996
------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ..... $ 10.05 $ 10.51 $ 10.54 $ 10.30 $ 10.39 $ 10.33
-------- -------- -------- -------- -------- --------
Income From Investment
Operations
Net Investment Income ...... 0.29 0.55 0.56 0.57 0.61 0.64
Net Realized and
Unrealized Gain (Loss) .. 0.19 (0.44) 0.04 0.24 (0.05) 0.14++
-------- -------- -------- -------- -------- --------
Total from Investment
Operations .............. 0.48 0.11 0.60 0.81 0.56 0.78
-------- -------- -------- -------- -------- --------
Distributions
Net Investment Income ...... (0.29) (0.56) (0.57) (0.57) (0.62) (0.64)
Net Realized Gain .......... -- (0.01) (0.06) -- (0.03) (0.08)
-------- -------- -------- -------- -------- --------
Total Distributions ........ (0.29) (0.57) (0.63) (0.57) (0.65) (0.72)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period .................. $ 10.24 $ 10.05 $ 10.51 $ 10.54 $ 10.30 $ 10.39
======== ======== ======== ======== ======== ========
Total Return+ .............. 4.82%** 1.16% 5.72% 8.08% 5.53% 7.62%
======== ======== ======== ======== ======== ========
Ratios and Supplemental Data
Net Assets, End of Period
(Thousands) ............. $ 13,652 $ 13,177 $ 13,542 $ 13,261 $ 10,044 $ 7,981
Ratio of Expenses to Average
Net Assets .............. 0.80%* 0.81% 0.80% 0.80% 0.80% 0.84%
Ratio of Net Investment
Income to Average
Net Assets .............. 5.66%* 5.46% 5.29% 5.64% 5.88% 6.17%
Portfolio Turnover Rate .... 45% 61% 48% 40% 31% 24%
</TABLE>
* Annualized
** Not Annualized
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the adviser during the periods indicated.
++ The amount shown for a share outstanding throughout the year does not
accord with the aggregate net losses on investments for that year 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.
17
<PAGE>
UAM FUNDS CHICAGO ASSET MANAGEMENT
COMPANY PORTFOLIOS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
UAM Funds, Inc., UAM Funds, Inc. II and UAM Funds Trust (collectively the
"UAM Funds") are registered under the Investment Company Act of 1940, as
amended. The Chicago Asset Management Value/Contrarian Portfolio and Chicago
Asset Management Intermediate Bond Portfolio (collectively the "Portfolios"),
portfolios of UAM Funds Trust, are diversified, open-end management investment
companies. At October 31, 2000, the UAM Funds were comprised of 49 active
portfolios. The information presented in the financial statements pertains only
to the Portfolios. The objective of the Chicago Asset Management
Value/Contrarian Portfolio is to provide capital appreciation by investing
primarily in the common stock of large companies. The objective of the Chicago
Asset Management Intermediate Bond Portfolio is to provide a high level of
current income consistent with moderate interest rate exposure by investing
primarily in investment grade bonds with an average weighted maturity between 3
and 10 years.
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
Portfolios in the preparation of their 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 sales price from the exchange where the security is primarily
traded. If no sales are reported, as in the case of some securities traded
over-the-counter, the market value is determined by using the last reported
bid price. Fixed income securities are stated on the basis of valuations
provided by brokers and/or a pricing service which uses information with
respect to transactions in fixed income securities, quotations from
dealers, market transactions in comparable securities and various
relationships between securities in determining value. 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.
18
<PAGE>
UAM FUNDS CHICAGO ASSET MANAGEMENT
COMPANY PORTFOLIOS
--------------------------------------------------------------------------------
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.
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, the Portfolios have 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 accounting principles generally accepted in the United
States of America. These differences are primarily due to differing book
and tax treatments in the timing of the recognition of gains or losses on
investments.
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.
5. 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.
19
<PAGE>
UAM FUNDS CHICAGO ASSET MANAGEMENT
COMPANY PORTFOLIOS
--------------------------------------------------------------------------------
Dividend income is recorded on the ex-dividend date. Interest income is
recognized on the accrual basis. Discounts and premiums on securities
purchased are amortized using the scientific interest method, which
approximates the effective interest method. 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
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, Chicago Asset Management Company (the "Adviser"), a subsidiary of
United Asset Management Corporation ("UAM"), provides investment advisory
services to the Portfolios at a fee calculated at an annual rate of average
daily net assets, as follows:
Chicago Asset Management Company Portfolios Rate
------------------------------------------- ----
Value/Contrarian .................................................... 0.625%
Intermediate Bond ................................................... 0.480%
Until further notice, the Adviser has voluntarily agreed to waive a portion
of its advisory fees and to assume expenses, if necessary, in order to keep the
Portfolios' total annual operating expenses, after the effect of expense offset
arrangements, from exceeding 1.25% and 0.80% of average daily net assets,
respectively. On September 25, 2000 United Asset Management was acquired by Old
Mutual, plc.
C. Administrative Services: UAM Fund Services, Inc. (the "Administrator"),
a wholly-owned subsidiary of UAM, provides and oversees administrative, fund
accounting, dividend disbursing, shareholder servicing and transfer agent
services to the Portfolios under a Fund Administration Agreement (the
"Agreement"). The Administrator has entered into separate Service Agreements
with SEI Investments Mutual Funds Services ("SEI"), a wholly-owned subsidiary of
SEI Investments Company, DST Systems, Inc., ("DST") and UAM Shareholder Service
Center ("UAMSSC"), an affiliate of UAM, to assist in providing certain services
to the Portfolio.
Pursuant to the Agreement, the Value/Contrarian and Intermediate Bond
Portfolios pay the Administrator 0.093% and 0.073% respectively per annum of the
average daily net assets of each of the Portfolios, an annual base fee of
$72,500 per portfolio, and a fee based on the number of active shareholder
accounts.
20
<PAGE>
UAM FUNDS CHICAGO ASSET MANAGEMENT
COMPANY PORTFOLIOS
--------------------------------------------------------------------------------
For the six months ended October 31, 2000, UAM Funds Services, Inc. earned
the following amounts from each Portfolio as Administrator and paid the
following to SEI, DST and UAMSSC for its services:
<TABLE>
<CAPTION>
Chicago Asset Management Administration Portion Paid Portion Paid Portion Paid
Company Portfolios Fees to SEI to DST to UAMSSC
------------------------ --------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Value/Contrarian .......... $68,633 $ 27,302 $4,291 $6,928
Intermediate Bond ......... 43,029 19,668 4,054 6,576
</TABLE>
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. 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.
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
Portfolios' purchases and sales of investment securities other than long-term
U.S. Government and agency securities and short-term securities were:
Chicago Asset Management Company Portfolios Purchases Sales
------------------------------------------- ----------- -----------
Value/Contrarian ................................ $17,802,491 $17,032,143
Intermediate Bond ............................... 980,533 4,577,360
Purchases and sales of long-term U.S. Government securities were $4,622,061
and $1,159,053 respectively, for Chicago Asset Management Intermediate Bond
Portfolio. There were no purchases and sales of long-term U.S. Government
securities for Chicago Asset Management Value/Contrarian Portfolio.
21
<PAGE>
UAM FUNDS CHICAGO ASSET MANAGEMENT
COMPANY 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 0.09% 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 Chicago Asset Management Value/ Contrarian Portfolio and
the Chicago Asset Management Intermediate Bond Portfolio had no borrowings under
the agreement.
J. Other: At October 31, 2000, the percentage of total shares outstanding
held by record shareholders each owning 10% or greater of the aggregate total
shares outstanding for each Portfolio was as follows:
No. of %
Chicago Asset Management Company Portfolios Shareholders Ownership
------------------------------------------- ------------ ---------
Value/Contrarian ............................ 4 81%
Intermediate Bond ........................... 1 97%
At April 30, 2000, the Chicago Asset Management Intermediate Bond Portfolio
had available a capital loss carryover for federal income tax purposes of
approximately $5,115 which will expire on April 30, 2008.
At April 30, 2000, the Chicago Asset Management Intermediate Bond Portfolio
has elected to defer $33,714 of post-October capital losses for income tax
purposes. These losses will be available to offset realized capital gains for
the fiscal year ending April 30, 2001.
22
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
UAM FUNDS CHICAGO ASSET MANAGEMENT
COMPANY PORTFOLIOS
--------------------------------------------------------------------------------
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
Chicago Asset Management Company
70 West Madison Street, 56th Floor
Chicago, IL 60602
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]
Supplement dated October 27, 2000, to the Annual Report of the Financials for
the *** 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.
3.To approve the proposed changes to the Fund's fundamental investment
restrictions.
a) Diversification of Investments:...............
b) Borrowing:....................................
c) Issuing of Senior Securities:.................
d) Underwriting:.................................
e) Industry Concentration:.......................
f) Investment in Real Estate:....................
g) Commodities:..................................
h) Lending:......................................
i) Illiquid Securities:..........................
j) Control or Management:........................
k) Unseasoned Issuers:...........................
l) Borrowing exceeding 5%:.......................
m) Pledging:.....................................
n) Margin Purchases and Short Sales:.............
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
For: Against: Abstain:
---- -------- --------
<S> <C> <C> <C>
o) Directors' Ownership of Shares:....................
p) Interest in Oil, Gas or Other Mineral Exploration
or Development Programs:...........................
q) Futures and Options:...............................
</TABLE>
4.To ratify the selection of PricewaterhouseCoopers LLP as the independent
auditors.
5.To approve an Interim Investment Advisory Agreement between each Fund and
its investment adviser.
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.
