<PAGE>
UAM Funds
Funds for the Informed Investor(SM)
MJI International Equity Portfolio
Semi-Annual Report October 31, 2000
[LOGO OF UAM]
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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TABLE OF CONTENTS
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Shareholders' Letter ........................................................ 1
Portfolio of Investments .................................................... 5
Statement of Assets and Liabilities ......................................... 10
Statement of Operations ..................................................... 11
Statement of Changes in Net Assets .......................................... 12
Financial Highlights ........................................................ 13
Notes to Financial Statements ............................................... 15
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
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October 31, 2000
Dear Shareholders:
Performance
We have seen a sharp correction in the international markets precipitated by the
runaway price of oil which at one point threatened to breach $40 per barrel. The
high level of global activity and demand drove the price increase at a time when
supply was tight. The rise had serious implications for markets and financial
assets. Most importantly, global liquidity deteriorated as more funds were
channeled to the oil producing nations. Secondly, as the price of oil rose, the
cost of feedstock and fuel supplies to industry increased, eroding margins and
hitting profitability and earnings. As manufacturers attempted to pass on the
higher costs to customers, the threat of inflation increased. The impact on
markets of these events was substantial. During the six months to October 31,
2000, the MSCI EAFE Index retreated by 9.01%. The portfolio under performed the
benchmark with a return of -12.02% (Institutional Class) and -12.16%
(Institutional Service Class), primarily due to weakness in Japan and the
Pacific Basin.
Economic and Market Commentary
Research examining the impact of the oil price increase and comparing it to
previous "shocks" has generally concluded that while global growth will be
slightly lower, the greater use of alternatives to oil and the improved
productivity/efficiency of industry mean that it should be easier to weather
this storm. On a positive note, OPEC member countries agreed to increase
production by 800,000 barrels per day from October. This may ease the immediate
pressure but with winter approaching, it is hard to see the price falling much
below current levels.
With the peaking of global activity, we have seen an increase in the number of
companies posting warnings on earnings. Highly rated technology companies were
particularly at risk, and cautious statements from manufacturers, including
Intel, late in the period, sent shudders through the entire sector. Although
activity and earnings remain positive, optimism was dented and companies from
telephone operators and infrastructure suppliers to component makers have seen
their share prices hit. The sell-off in the sector during September and October
was so rapid as to make the disposal of remaining holdings a pointless and
expensive exercise.
1
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
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Also in the background through this period was the continuing decline of the
Euro, caused by unusually large portfolio flows and direct investment in US
assets by companies in the Euro bloc. These flows were running at record levels
and caused a massive impact as Euros were sold for dollars. Through most of the
year, the European Central Bank remained calm about the decline, looking to the
comparative advantage which accrued from the lower currency versus the dollar,
in particular. Indeed, this has generated buoyant exports from the Euro zone.
However, concern mounted as the lower currency, combined with the high oil price
began to put pressure on inflation and there was intervention to support the
Euro in late September.
Against this background, the European markets were down 8.3% although this was
in part due to the currency impact. Whereas last year it was sectors within
markets which saw large corrections, this year the damage has been equally
severe across most sectors. Indeed, a feature of this period in Europe was
rotation: sectors, which were weak in one month, were often strong performers in
the next. Japan, where the portfolio is fully represented, corrected by 14.4%
during the period. However, the news on the Japanese economy has improved
through the year and it appears that a sustainable recovery is now underway.
Hong Kong and Singapore fared better during the period with property companies
responding well to the belief that interest rates had peaked.
Investment Strategy
While the managers have pursued a strategy of investing in "quality" companies
which have a sound earnings stream, in cases where results disappointed, even
marginally, the stocks were severely punished. Volatility of returns has
therefore increased. At times like this it is important to have a medium-term
strategy for investment in place and to stick to it. Having already reduced the
portfolio's exposure to telecommunication companies, during the period the only
other significant change implemented was to begin a modest switch from Europe
into Japan. This brought exposure to Japan towards an index weight from slightly
underweight, taking advantage of the weak prices experienced during the quarter.
The intention is to continue to build up the Japanese exposure with a view to
the recovery in the economy, which we believe is now established.
2
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
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Market Outlook
The year 2000 has been a year of substantial adjustment in the international
markets. Many of the fundamental variables have been stacked against strong
performance. There are signs however, that some of these are beginning to turn.
With agreement from the OPEC countries to lift production, the price of oil has
been reduced. This will ease pressure on costs and earnings while stability of
the Euro will help to re-establish confidence in Europe. Intervention has had an
initial impact on the currency but it will take time to gauge whether a reversal
to the weak trend can be achieved. What is clear is that the interest rate
outlook has improved so the focus of investors is likely to remain on earnings.
With a lot of "bad news" in share prices, we feel that the probability of a
rebound has become more likely as has the attractiveness of buying at these
levels.
/s/ Andrew Preston
Andrew Preston
Director,
Murray Johnstone International
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 MJI INTERNATIONAL EQUITY PORTFOLIO
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Definition of the Comparative Indices
-------------------------------------
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.
4
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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PORTFOLIO OF INVESTMENTS
FOREIGN COMMON STOCKS - 88.1%
Shares Value
------ ------------
AUSTRALIA -- 0.4%
Qantas Airways ...................................... 75,000 $ 150,796
------------
BELGIUM -- 0.9%
Fortis, Cl B ........................................ 11,178 342,028
------------
DENMARK -- 1.9%
Carlsberg, Cl B ..................................... 9,267 387,308
Novo-Nordisk, Cl B .................................. 1,450 307,137
------------
694,445
------------
FINLAND -- 0.6%
Sonera Oyj .......................................... 10,516 231,391
------------
FRANCE -- 8.7%
Alcatel ............................................. 5,272 321,289
BNP Paribas ......................................... 6,661 573,620
Cap Gemini .......................................... 4,710 750,533
Total Fina Elf ...................................... 5,714 816,561
Vivendi ............................................. 10,186 731,270
------------
3,193,273
------------
GERMANY -- 7.4%
Bayer ............................................... 19,500 844,591
Dresdner Bank ....................................... 11,749 487,466
Epcos* .............................................. 6,480 491,574
Siemens ............................................. 7,068 898,625
------------
2,722,256
------------
HONG KONG -- 2.6%
Cheung Kong Holdings ................................ 43,000 475,536
Sun Hung Kai Properties ............................. 57,000 471,401
------------
946,937
------------
IRELAND -- 2.1%
Allied Irish Banks .................................. 75,449 767,407
------------
The accompanying notes are an integral part of the financial statements.
5
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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FOREIGN COMMON STOCKS -- continued
Shares Value
------- -----------
ITALY -- 4.2%
ENI-Ente Nazionale Idrocarburi* ..................... 131,026 $ 708,548
Riunione Adriatica di Sicurta* ...................... 41,160 539,705
Telecom Italia* ..................................... 25,808 298,592
------------
1,546,845
------------
JAPAN -- 24.3%
Fuji Machine Manufacturing .......................... 10,200 278,377
Fuji Photo Film ..................................... 17,000 630,552
Kurita Water Industries ............................. 36,000 585,218
Matsumoto Kenko ..................................... 400 1,465
Matsushita Communication ............................ 5,000 654,822
Minebea ............................................. 75,000 748,695
Mitsui .............................................. 95,000 630,781
Murata Manufacturing ................................ 4,000 478,432
Nippon Telegraph & Telephone ........................ 66 600,220
Nomura Securities ................................... 26,000 551,241
NTT Docomo .......................................... 21 517,355
Omron ............................................... 26,000 640,535
Rohm ................................................ 2,100 529,087
Shin-Etsu Chemical .................................. 12,000 492,353
Sumitomo Bank ....................................... 57,000 691,684
Uni-Charm ........................................... 8,900 380,648
Yamanouchi Pharmaceutical ........................... 12,000 542,907
------------
8,954,372
------------
NETHERLANDS -- 7.5%
Aegon ............................................... 11,806 468,317
Elsevier ............................................ 35,021 446,741
Equant, NY Shares* .................................. 6,900 234,169
Fortis .............................................. 9,598 292,870
Koninklijke Philips Electronics ..................... 12,489 490,223
Unilever ............................................ 7,969 399,192
Vedior .............................................. 28,073 417,597
------------
2,749,109
------------
NEW ZEALAND -- 0.7%
Telecom of New Zealand .............................. 118,000 261,335
------------
The accompanying notes are an integral part of the financial statements.
6
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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FOREIGN COMMON STOCKS -- continued
Shares Value
-------- -----------
SINGAPORE -- 1.6%
Oversea-Chinese Banking ............................. 41,000 $ 261,578
Singapore Press Holdings ............................ 23,200 331,712
-----------
593,290
-----------
SPAIN -- 4.5%
Banco Bilbao Vizcaya Argentaria ..................... 1 13
Gas Natural ......................................... 24,278 415,676
Telefonica* ......................................... 35,269 671,718
Union Electrica Fenosa* ............................. 29,874 551,749
-----------
1,639,156
-----------
SWEDEN -- 2.7%
SKF ................................................. 26,053 386,115
LM Ericsson, Cl B ................................... 47,020 624,118
-----------
1,010,233
-----------
SWITZERLAND -- 4.1%
Novartis ............................................ 146 221,424
Roche Holding ....................................... 52 474,857
Zurich Financial Services ........................... 1,672 808,987
-----------
1,505,268
-----------
UNITED KINGDOM -- 13.9%
Abbey National ...................................... 24,000 331,427
Airtours ............................................ 67,400 190,849
Autonomy* ........................................... 3,700 185,000
Barclays ............................................ 7,500 214,766
BP Amoco ............................................ 26,100 221,524
British Telecommunications .......................... 36,000 422,387
EMI Group ........................................... 23,700 177,581
GKN ................................................. 22,000 252,375
Granada Media* ...................................... 24,000 139,750
Invensys ............................................ 88,000 210,206
J. Sainsbury ........................................ 51,600 290,160
Lloyds TSB Group .................................... 35,000 356,781
MAN Group ........................................... 35,000 251,068
Peninsular & Orient Steam Navigation ................ 48,300 199,187
Rio Tinto ........................................... 25,000 404,773
Shell Transport & Trading ........................... 27,000 217,401
The accompanying notes are an integral part of the financial statements.
7
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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FOREIGN COMMON STOCKS -- continued
Shares Value
------ ------------
UNITED KINGDOM -- continued
SmithKline Beecham .................................. 14,400 $ 186,101
TeleCity* ........................................... 11,200 122,790
Telewest Communications* ............................ 61,900 102,469
Vodafone Group ...................................... 150,000 624,584
------------
5,101,179
------------
TOTAL FOREIGN COMMON STOCKS
(Cost $33,702,273) ............................... 32,409,320
------------
FOREIGN PREFERRED STOCKS -- 3.2%
AUSTRALIA -- 1.2%
News ................................................ 51,000 457,208
------------
GERMANY -- 2.0%
MLP ................................................. 5,463 736,240
------------
TOTAL FOREIGN PREFERRED STOCKS
(Cost $961,672) .................................. 1,193,448
------------
SHORT-TERM INVESTMENT -- 5.5%
Face
Amount Value
------ ------------
REPURCHASE AGREEMENT -- 5.5%
Chase Securities, Inc. 6.35%, dated 10/31/00,
due 11/01/00, to be repurchased at $2,014,355,
collateralized by $1,508,534 of various
U.S. Treasury Obligations, valued at
$2,014,039 (Cost $2,014,000) .....................$2,014,000 $ 2,014,000
------------
TOTAL INVESTMENTS -- 96.8%
(Cost $36,677,945) (a) ........................... 35,616,768
------------
OTHER ASSETS AND LIABILITIES, NET -- 3.2% ........... 1,177,980
------------
TOTAL NET ASSETS -- 100.0% .......................... $36,794,748
============
* Non-income producing securities
ADR American Depositary Receipt
Cl Class
(a) The cost for federal income tax purposes was $36,677,945. At October 31,
2000, net unrealized depreciation for all securities based on tax cost was
$1,061,017. This consisted of aggregate unrealized appreciation for all
securities of $3,212,555 and aggregate gross unrealized depreciation for
all securities of $4,273,732.
The accompanying notes are an integral part of the financial statements.
8
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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At October 31, 2000, sector diversification of the Portfolio was as
follows:
% of Market
Sector Diversification Net Assets Value
---------------------- ---------- -----------
Automotive ............................................ 0.7% $ 252,375
Banks ................................................. 10.0 3,684,742
Broadcasting, Newspapers & Advertising ................ 2.5 918,203
Building & Construction ............................... -- 1,465
Chemicals ............................................. 3.6 1,336,944
Computers & Services .................................. 3.5 1,292,491
Consumer Services ..................................... 3.4 1,239,227
Diversified Operations ................................ 5.0 1,840,102
Electrical Components & Equipment ..................... 10.7 3,930,295
Financial Services .................................... 3.9 1,437,207
Food, Beverage & Tobacco .............................. 2.9 1,076,660
Insurance ............................................. 4.9 1,817,009
Leisure & Recreation .................................. 0.5 177,581
Machinery ............................................. 0.8 278,377
Medical Products & Services ........................... 4.7 1,732,425
Metals ................................................ 2.1 790,888
Paper & Paper Products ................................ 1.0 380,648
Petroleum & Fuel Services ............................. 6.5 2,379,711
Photographic Equipment & Supplies ..................... 1.7 630,552
Real Estate ........................................... 2.6 946,936
Telephones & Telecommunications ....................... 14.5 5,330,279
Transportation ........................................ 1.0 349,984
Utilities ............................................. 1.6 585,219
---------- -----------
Total Foreign Common Stocks ........................... 88.1 32,409,320
Total Foreign Preferred Stocks ........................ 3.2 1,193,448
Repurchase Agreement .................................. 5.5 2,014,000
---------- -----------
Total Investments ..................................... 96.8 35,616,768
Other Assets and Liabilities, Net ..................... 3.2 1,177,980
---------- -----------
Net Assets ............................................ 100.0% $36,794,748
========== ==-=========
The accompanying notes are an integral part of the financial statements.
9
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
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--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
Assets
Investments, at Cost ................................... $36,677,945
===========
Investments, at Value -- Note A ........................ $35,616,768
Receivable for Portfolio Shares Sold ................... 2,095,971
Foreign Cash (Cost $1,312,495) ......................... 1,313,133
Foreign Currency Contracts Receivable .................. 622,401
Receivable for Investments Sold ........................ 169,866
Foreign Withholding Tax Reclaim Receivable ............. 37,895
Dividends Receivable ................................... 22,196
Other Assets ........................................... 30,138
-----------
Total Assets ........................................ 39,908,368
-----------
Liabilities
Payable to Custodian Bank -- Note D .................... 1,789,064
Payable for Investments Purchased ...................... 642,048
Payable for Foreign Currency Contracts ................. 620,239
Payable for Investment Advisory Fees -- Note B ......... 21,353
Payable for Administrative Fees -- Note C .............. 8,881
Payable for Custodian Fees -- Note D ................... 5,758
Payable for Distribution and Service Fees -- Note E .... 1,398
Other Liabilities ...................................... 24,879
-----------
Total Liabilities ................................... 3,113,620
-----------
Net Assets ............................................. $36,794,748
===========
Net Assets Consist of:
Paid in Capital ........................................ 30,152,025
Undistributed Net Investment Income .................... 84,168
Accumulated Net Realized Gain .......................... 7,619,572
Unrealized Depreciation ................................ (1,061,017)
-----------
Net Assets ............................................. $36,794,748
===========
Institutional Class Shares
Net Assets ............................................. $34,742,315
===========
Net Asset Value, Offering and Redemption Price Per Share
2,775,403 shares outstanding (Unlimited authorization,
no par value) ....................................... $12.52
======
Institutional Service Class Shares
Net Assets ............................................. $ 2,052,433
===========
Net Asset Value, Offering and Redemption Price Per Share
165,165 shares outstanding (Unlimited authorization,
no par value) ....................................... $12.43
======
The accompanying notes are an integral part of the financial statements.
10
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
SIX MONTHS ENDED OCTOBER 31, 2000
(Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Investment Income
Dividends ........................................................ $ 353,196
Interest ......................................................... 30,922
Less: Foreign Taxes Withheld ..................................... (32,358)
-----------
Total Income .................................................. 351,760
-----------
Expenses
Investment Advisory Fees -- Note B ............................... 146,952
Administrative Fees -- Note C .................................... 69,996
Printing Fees .................................................... 20,832
Filing and Registration Fees ..................................... 13,539
Shareholder Servicing Fees -- Note G ............................. 12,851
Custodian Fees -- Note D ......................................... 11,565
Audit Fees ....................................................... 8,615
Distribution and Service Fees -- Note E .......................... 2,961
Trustees' Fees -- Note F ......................................... 1,283
Other Expenses ................................................... 8,428
Investment Advisory Fees Waived -- Note B ........................ (2,646)
-----------
Net Expenses ................................................. 294,376
-----------
Net Investment Income ............................................ 57,384
-----------
Net Realized Gain on:
Investments ................................................... 2,055,093
Foreign Currency Transactions ................................. 26,784
-----------
Net Realized Gain on Investments and Foreign Currency
Transactions .................................................. 2,081,877
-----------
Net Change in Unrealized Appreciation (Depreciation) on:
Investments ................................................... (7,029,334)
Foreign Currency Transactions ................................. 3,528
-----------
Net Change in Unrealized Appreciation (Depreciation) ............. (7,025,806)
-----------
Net Loss on Investments and Foreign Currency ..................... (4,943,929)
-----------
Net Decrease in Net Assets Resulting From Operations ............. $(4,886,545)
===========
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 (Loss) ............................ $ 57,384 $ (62,671)
Net Realized Gain ....................................... 2,081,877 8,689,228
Net Change in Unrealized Appreciation (Depreciation)
on Investments and Foreign Currency Transactions ...... (7,025,806) (2,806,065)
------------ ------------
Net Increase (Decrease) in Net Assets Resulting
from Operations ....................................... (4,886,545) 5,820,492
------------ ------------
Distributions:
Net Investment Income:
Institutional Class ................................... -- --
Institutional Service Class ........................... -- --
Net Realized Gain:
Institutional Class ................................... -- (2,207,890)
Institutional Service Class ........................... -- (714,992)
------------ ------------
Total Distributions ..................................... -- (2,922,882)
------------ ------------
Capital Share Transactions: (Note J)
Institutional Class:
Issued .................................................. 10,211,594 29,035,824
In Lieu of Cash Distributions ........................... -- 1,186,008
Redeemed ................................................ (9,149,509) (15,111,036)
------------ ------------
Net Increase from Institutional Class Shares ............ 1,062,085 15,110,796
------------ ------------
Institutional Service Class:
Issued .................................................. 241,937 2,156,580
In Lieu of Cash Distributions ........................... -- 714,992
Redeemed ................................................ (659,612) (11,240,266)
------------ ------------
Net Decrease from Institutional Service Class Shares..... (417,675) (8,368,694)
------------ ------------
Net Increase from Capital Share Transactions ............ 644,410 6,742,102
------------ ------------
Total Increase (Decrease) ............................. (4,242,135) 9,639,712
------------ ------------
Net Assets:
Beginning of Year ....................................... 41,036,883 31,397,171
------------ ------------
End of Period (including undistributed net investment
income of $84,168 and $0, respectively) ............... $ 36,794,748 $ 41,036,883
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
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FINANCIAL HIGHLIGHTS
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Institutional Class
-----------------------------------------------------------------------------
Six Months
Ended
October 31, Year Ended April 30,
2000 --------------------------------------------------------------
(Unaudited) 2000++ 1999++ 1998 1997 1996
----------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ... $ 14.23 $ 12.85 $ 12.29 $ 10.65 $ 10.27 $ 9.50
---------- ------- ------- ------- ------- ------
Income from Investment Operations
Net Investment Income (Loss) ........ 0.02 (0.01) 0.03 0.07 0.06 0.07
Net Realized and Unrealized
Gain (Loss) ....................... (1.73) 2.59 0.82 2.02 0.42 0.75
---------- ------- ------- ------- ------- ------
Total from Investment Operations .... (1.71) 2.58 0.85 2.09 0.48 0.82
---------- ------- ------- ------- ------- ------
Distributions
Net Investment Income ............... -- -- (0.07) (0.04) (0.01) --
In Excess of Net Investment
Income ............................ -- -- -- -- -- (0.03)
Net Realized Gain ................... -- (1.20) (0.22) (0.41) (0.09) (0.02)
---------- ------- ------- ------- ------- ------
Total Distributions ................. -- (1.20) (0.29) (0.45) (0.10) (0.05)
---------- ------- ------- ------- ------- ------
Net Asset Value, End of Period ......... $ 12.52 $ 14.23 $ 12.85 $ 12.29 $ 10.65 $10.27
========== ======= ======= ======= ======= ======
Total Return+ .......................... (12.02)%** 20.07 7.17% 20.39% 4.67% 8.67%
========== ======= ======= ======= ======= ======
Ratios and Supplemental Data
Net Assets, End of Period
(Thousands) ......................... $ 34,742 $38,270 $21,006 $32,296 $28,818 $8,592
Ratio of Expenses to Average
Net Assets .......................... 1.48%* 1.56% 1.50% 1.50% 1.50% 1.45%
Ratio of Net Investment Income (Loss)
to Average Net Assets ............... 0.30%* (0.11)% 0.21% 0.60% 0.68% 0.88%
Portfolio Turnover Rate ............... 39% 85% 48% 80% 47% 59%
</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.
++ Per share amounts are based on average outstanding shares.
The accompanying notes are an integral part of the financial statements.
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--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Selected Per Share Data & Ratios
For a Share Outstanding Throughout Each Period
Institutional Service Class
<TABLE>
<CAPTION>
--------------------------------------------------------------------
Six Months
Ended December 31,
October 31, 1996***
2000 Years Ended April 30, April 30, to
----------------------------------
(Unaudited) 2000++ 1999++ 1998 1997
----------- ------ ------ ------- ---------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period $ 14.15 $12.81 $ 12.26 $10.65 $10.53
------- ------ ------- ------- ------
Income from Investment Operations
Net Investment Income (Loss) 0.01 (0.07) (0.01) 0.04 0.01
Net Realized and Unrealized
Gain (Loss) (1.73) 2.61 0.82 2.02 0.11
-------- ------ ------- ------- ------
Total from Investment
Operations (1.72) 2.54 0.81 2.06 0.12
-------- ------ ------- ------- ------
Distributions
Net Investment Income -- -- (0.04) (0.04) --
Net Realized Gain -- (1.20) (0.22) (0.41) --
-------- ------ ------- ------- ------
Total Distributions -- (1.20) (0.26) (0.45) --
-------- ------ ------- ------- ------
Net Asset Value, End of Period $12.43 $14.15 $ 12.81 $12.26 $10.65
======= ====== ======= ======= ======
Total Return+ (12.16)%** 19.81% 6.90% 20.11% 1.14%**
======= ====== ======= ======= ======
Ratios and Supplemental Data
Net Assets, End of Period
(Thousands) $2,052 $2,767 $10,391 $7,251 $3,920
Ratio of Expenses to Average
Net Assets 1.73%* 1.83% 1.75% 1.75% 1.76%*
Ratio of Net Investment Income (Loss)
to Average Net Assets 0.15%* (0.48)% (0.12)% 0.29% 0.59%*
Portfolio Turnover Rate 39% 85% 48% 80% 47%
</TABLE>
* Annualized
** Not Annualized
*** Inception of Institutional Service Class Shares.
+ Total return would have been lower had certain fees not been waived and
expenses assumed by the Adviser during the periods indicated.
++ Per share amounts are based on average outstanding shares.
The accompanying notes are an integral part of the financial statements.
14
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
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 MJI International Equity Portfolio (the "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 Portfolio currently offers two separate classes of
shares-Institutional Class Shares and Institutional Service Class Shares
("Service Class Shares"). Both classes of shares have identical voting rights
(except Service Class shareholders have exclusive voting rights with respect to
matters relating to distribution and shareholder servicing of such shares),
dividend, liquidation and other rights. The objective of the Portfolio is to
provide maximum total return, including both capital appreciation and current
income, by investing primarily in the common stocks of companies based outside
of the United States.
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 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 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 upon 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
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
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
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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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
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 annually. 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 for foreign currency transactions, deferred
organization costs and 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.
7. 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,
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 or share class are apportioned among
17
<PAGE>
UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
the portfolios of the UAM Funds based on their relative net assets. Income,
expenses (other than class specific expenses) and realized and unrealized
gains or losses are allocated to each class of shares based upon their
relative net assets. Custodian fees for the Portfolio are shown gross of
expense offsets, if any, for custodian balance credits.
B. Investment Advisory Services: Under the terms of an investment advisory
agreement, Murray Johnstone International Ltd., (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 0.75% of
average daily net assets for the month. 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, excluding
interest expense and after the effect of expense offset arrangements, from
exceeding 1.50% and 1.75% of average daily net assets of the Portfolio's
Institutional Class Shares and Institutional Service Class Shares, respectively.
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") affiliate of UAM, to assist in providing certain services to
the Portfolio.
Pursuant to the Agreement, the Portfolio pays the Administrator 0.093% per
annum of the average daily net assets of the Portfolio, an annual base fee of
$94,250, and a fee based on the number of active shareholder accounts.
For the six months ended October 31, 2000, the Administrator was paid
$69,996, of which $26,043 was paid to SEI for their services, $13,765 to DST for
their services, and $6,124 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
18
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UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------
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.
The Portfolio has adopted Distribution and Service Plans (the "Plans") on
behalf of the Service Class Shares pursuant to Rule 12b-1 under the Investment
Company Act of 1940. Under the Plans, the Service Class Shares may not incur
distribution and service fees which exceed an annual rate of 0.75% of the net
assets of that class of shares, however, the Board has currently limited
aggregate payments under the Plans to 0.50% per annum of the Portfolio's net
assets. The Portfolio's Service Class Shares are not currently making payments
for distribution fees, however the Portfolio does pay service fees at an annual
rate of 0.25% of the average daily value of Service Class Shares owned by
clients of the Service Agents.
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
Portfolio made purchases of $15,893,054 and sales of $14,626,216 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.
19
<PAGE>
UAM FUNDS MJI INTERNATIONAL EQUITY PORTFOLIO
OCTOBER 31, 2000 (Unaudited)
--------------------------------------------------------------------------------
J. Capital Share Transactions: Transactions in capital shares for the
Portfolio, by class, were as follows:
<TABLE>
<CAPTION>
Institutional Institutional Service
Class Shares Class Shares
----------------------- -------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
October 31, April 30, October 31, April 30,
2000 2000 2000 2000
--------- ----------- -------- ---------
<S> <C> <C> <C> <C>
Shares Issued ..................... 784,044 2,068,798 17,896 153,469
In Lieu of Cash Distributions...... -- 83,229 -- 50,423
Shares Redeemed ................... (697,665) (1,098,314) (48,366) (819,733)
--------- ----------- -------- ---------
Net Increase (Decrease) from
Capital Share Transactions....... 86,379 1,053,713 (30,470) (615,841)
========= =========== ======== =========
</TABLE>
K. 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 class of shares was as follows:
No. of % Ownership
Shareholders of Share Class
------------ --------------
Institutional Class Shares ............. 2 59%
Service Class Shares ................... 3 100%
At October 31, 2000, the net assets of the Portfolio were substantially
comprised of foreign denominated securities and 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.
On December 14, 2000, the Board of Trustees of UAM Funds Trust approved the
investment advisory agreement between Murray Johnstone International Ltd. and
MJI International Equity Portfolio pending shareholder approval at a special
meeting of shareholders to be held on January 26, 2001. Such approvals were
necessitated by the change of control of MJI from Old Mutual Plc to Aberdeen
Asset Management Plc on November 30, 2000.
20
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UAM FUNDS MJI INTERNATIONAL EQUITY 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
Murray Johnstone International Ltd.
7 West Nile Street
Glasgow, Scotland G12PX
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 MJI International Portfolio.
The Semi 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.
2,500,985 506 95,107
3.To approve the proposed changes to the Fund's fundamental investment
restrictions.
a) Diversification of Investments:............... 2,501,260 -- 95,338
b) Borrowing:.................................... 2,501,260 -- 95,338
c) Issuing of Senior Securities:................. 2,501,260 -- 95,338
d) Underwriting:................................. 2,501,260 -- 95,338
e) Industry Concentration:....................... 2,501,260 -- 95,338
f) Investment in Real Estate:.................... 2,501,260 -- 95,338
g) Commodities:.................................. 2,501,260 -- 95,338
h) Lending:...................................... 2,501,260 -- 95,338
i) Illiquid Securities:.......................... 2,501,260 -- 95,338
j) Control or Management:........................ 2,501,260 -- 95,338
k) Unseasoned Issuers:........................... 2,501,260 -- 95,338
l) Borrowing exceeding 5%:....................... 2,501,260 -- 95,338
m) Pledging:..................................... 2,501,260 -- 95,338
n) Margin Purchases and Short Sales:............. 2,501,260 -- 95,338
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
For: Against: Abstain:
--------- -------- --------
<S> <C> <C> <C>
o) Directors' Ownership of Shares:............... 2,501,260 -- 95,338
p) Interest in Oil, Gas or Other Mineral
Exploration or Development Programs:.......... 2,501,260 -- 95,338
q) Futures and Options:.......................... 2,501,260 -- 95,338
4.To ratify the selection of PricewaterhouseCoopers LLP as the independent
auditors.
2,544,681 4 95,107
5.To approve an Interim Investment Advisory Agreement between each Fund and
its investment adviser.
2,544,454 231 95,107
</TABLE>
