<PAGE>
================================================================================
MITCHELL HUTCHINS
PORTFOLIOS
o Aggressive Portfolio
o Moderate Portfolio
o Conservative Portfolio
SEMIANNUAL REPORT
NOVEMBER 30, 1999
<PAGE>
MITCHELL HUTCHINS PORTFOLIOS SEMIANNUAL REPORT
January 15, 2000
Dear Shareholder,
We are pleased to present you with the semiannual report for the Mitchell
Hutchins Portfolios for the six-month period ended November 30, 1999.
MARKET REVIEW
================================================================================
[GRAPHIC OMITTED]
All of the major equity markets gained during the period but none more than the
NASDAQ Composite, which, propelled by technology stocks, rocketed up by about
35%. The Dow Jones Industrial Average (Dow) and Standard and Poor's 500 Index
(S&P 500) saw modest gains of 3.9% and 7.4%, respectively. As in the first half
of the fiscal year, a relatively small number of stocks led the charge. During
the period, market breadth fell to a three-year low. In ever-greater numbers,
investors chased technology stocks, where earnings growth and positive earnings
surprises have been strong. This earnings momentum in technology is likely to
continue in 2000. Current valuations, however, may leave little room for
disappointment, and 1999's success will make for difficult earnings comparisons
in 2000.
The fixed income markets faced difficult conditions during the period. Interest
rates rose as the economy continued to expand more briskly than anticipated. The
Federal Reserve (the Fed) raised the Federal Funds rate twice during the period,
by 25 basis points each time (a basis point equals one one-hundredth of one
percent). On top of an earlier 25 bps increase, these increases completely
reversed the 75 bps rate reduction engineered in late 1998 to stave off the
global financial crisis. The 30-year Treasury bond's yield rose from 5.07% on
November 30, 1998 to 6.29% on November 30, 1999, one of its worst performances
ever.
MITCHELL HUTCHINS
PORTFOLIOS
Investment Goals:
Aggressive--long-term capital growth
Moderate--total return
Conservative--income; secondarily, capital growth
Portfolio Managers:
T. Kirkham Barneby,
Mark Tincher,
Dennis McCauley,
Mitchell Hutchins Asset
Management Inc.
Commencement:
February 24, 1998
Dividend Payments:
Quarterly
1
<PAGE>
SEMIANNUAL REPORT
PORTFOLIO REVIEW
================================================================================
PERFORMANCE--TOTAL PERCENT RETURNS FOR SIX MONTHS ENDED 11/30/99
Aggressive Portfolio Before Sales After Maximum
Charges Sales Charges
- --------------------------------------------------------------------------------
Class A Shares 4.06% -0.61%
Class B Shares 3.68 -1.32
Class C Shares 3.67 2.67
Class Y Shares 4.21 4.21
- --------------------------------------------------------------------------------
Moderate Portfolio Before Sales After Maximum
Charges Sales Charges
- --------------------------------------------------------------------------------
Class A Shares 3.98% -0.67%
Class B Shares 3.59 -1.41
Class C Shares 3.54 2.54
Class Y Shares 4.03 4.03
- --------------------------------------------------------------------------------
Conservative Portfolio Before Sales After Maximum
Charges Sales Charges
- --------------------------------------------------------------------------------
Class A Shares 1.50% 2.56%
Class B Shares 1.18 -3.78
Class C Shares 1.30 0.55
Class Y Shares 1.55 1.55
- --------------------------------------------------------------------------------
The Portfolios' total returns consist of the change in net asset value with any
dividends reinvested. For shareowners who purchased or redeemed Portfolio shares
during the period, total return may be lower because of applicable sales
charges. The investment return and the principal value of an investment in the
Portfolios will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Class Y shares are not subject to
sales charges.
UPCOMING LIQUIDATION OF THE PORTFOLIOS
The Board of Trustees of the Mitchell Hutchins Portfolios voted on November 11,
1999 to liquidate Mitchell Hutchins Aggressive Portfolio, Mitchell Hutchins
Moderate Portfolio and Mitchell Hutchins Conservative Portfolio. By the time you
receive this semiannual shareholder report, you should have received a separate
communication that outlines your options in connection with the upcoming
liquidation.
You may choose to exchange your Portfolio shares for another PaineWebber mutual
fund, redeem them or do nothing and receive the liquidation proceeds of the sale
of your shares on the last day of the Portfolios' existence. If you wish to
exchange or redeem your Portfolio shares you must do so by March 22, 2000. If
you do not, your shares automatically will be liquidated on or about
2
<PAGE>
MITCHELL HUTCHINS PORTFOLIOS SEMIANNUAL REPORT
March 28, 2000. Please read the shareholder letter outlining liquidation for
details on how to effect your choices.
The Portfolios began the fiscal period with slight overweightings in stocks. By
period-end the stock weightings for all three Portfolios had been reduced to
about their neutral weightings.
Portfolio Characteristics*
Aggressive Moderate Conservative
- --------------------------------------------------------------------------------
Net assets ($mm) $3.2 $7.0 $2.7
Stock Allocation 71.3% 51.7% 10.2%
Bond Allocation 28.7% 48.3% 89.8%
- --------------------------------------------------------------------------------
Underlying Investments*
<TABLE>
<CAPTION>
Fund Type Fund Name Aggressive Moderate Conservative
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Equity PaineWebber Growth Fund 5.2% 10.6% 0.0%
PaineWebber Growth and Income Fund 24.2 22.3 10.2
PaineWebber Small Cap Fund 26.7 8.3 0.0
Fixed Income PaineWebber Low Duration
U.S. Gov't Income Fund 0.0 0.0 25.0
PaineWebber U.S. Government
Income Fund 0.0 16.9 39.9
PaineWebber Investment Grade
Income Fund 7.9 17.0 15.0
PaineWebber High Income Fund 16.2 5.0 0.0
Global PaineWebber Global Equity Fund 15.2 10.5 0.0
PaineWebber Global Income Fund 4.6 9.4 9.9
Money Market Fund PaineWebber Cashfund Inc. 0.0 0.0 0.0
- -------------------------------------------------------------------------------------------
Total 100.0 100.0 100.0
</TABLE>
* Weightings represent percentages of portfolio assets as of November 30, 1999,
unless indicated otherwise. The Portfolios are actively managed and their
composition will vary over time.
3
<PAGE>
SEMIANNUAL REPORT
================================================================================
We launched the Mitchell Hutchins Portfolios in February 1998 to meet what
we then believed were investors' interest in such portfolios. Unfortunately, the
Portfolios have not achieved sufficient size to warrant their continuation.
Since we do not expect them to grow quickly in the foreseeable future, we
believe that it is now appropriate to liquidate the Portfolios.
Our ultimate objective in managing your investments is to help you
successfully meet your financial goals. We thank you for your continued support
and welcome any comments or questions you may have. For a Quarterly Review on
the Mitchell Hutchins Portfolios or another fund in the PaineWebber Family of
Funds,(1) please contact your Financial Advisor.
Sincerely,
/s/ Margo Alexander /s/ Brian M. Storms
MARGO ALEXANDER BRIAN M. STORMS
Chairman and Chief Executive President and Chief Operating Officer
Officer Mitchell Hutchins Asset Management Inc.
Mitchell Hutchins Asset
Management Inc.
/s/ T. Kirkham Barneby /s/ Dennis L. McCauley
T. KIRKHAM BARNEBY DENNIS L. MCCAULEY
Managing Director and Managing Director and
Chief Investment Officer-- Chief Investment Officer--Fixed Income
Quantitative Investments Mitchell Hutchins Asset Management Inc.
Mitchell Hutchins Asset Manager of the Portfolio
Management Inc.
Manager of the Portfolios
/s/ Mark A. Tincher
MARK A. TINCHER
Managing Director and
Chief Investment Officer--Equities
Mitchell Hutchins Asset Management Inc.
Manager of the Portfolios
This letter is intended to assist shareholders in understanding how the
Portfolios performed during the six-month period ended November 30, 1999, and
reflects our views at the time of its writing. Of course, these views may change
in response to changing circumstances. We encourage you to consult your
Financial Advisor regarding your personal investment program.
(1) Mutual funds are sold by prospectus only. The prospectuses for the funds
contain more complete information regarding risks, charges and expenses, and
should be read carefully before investing.
4
<PAGE>
MITCHELL HUTCHINS PORTFOLIOS
PERFORMANCE RESULTS (unaudited)
Aggressive Portfolio
<TABLE>
<CAPTION>
Net Asset Value Total Return(1)
---------------------------------------- --------------------------------------
12 Months 6 Months
11/30/99 05/31/99 11/30/98 Ended 11/30/99 Ended 11/30/99
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $13.08 $12.57 $12.35 7.65% 4.06%
- -------------------------------------------------------------------------------------------------------------------
Class B Shares 12.96 12.50 12.28 6.88 3.68
- -------------------------------------------------------------------------------------------------------------------
Class C Shares 12.98 12.52 12.28 6.88 3.67
</TABLE>
Performance Summary Class A Shares
<TABLE>
<CAPTION>
Net Asset Value
----------------------- Capital Gains Dividends Total
Period Covered Beginning Ending Distributed Paid(2) Return(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
02/24/98+ - 12/31/98 $12.50 $12.78 -- $0.2097 2.24%
- -------------------------------------------------------------------------------------------------------------------
01/01/99 - 11/30/99 12.78 13.08 -- -- 2.35
- -------------------------------------------------------------------------------------------------------------------
Total: -- $0.2097
- -------------------------------------------------------------------------------------------------------------------
Cumulative Total Return as of 11/30/99: 6.36%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Performance Summary Class B Shares
<TABLE>
<CAPTION>
Net Asset Value
----------------------- Capital Gains Dividends Total
Period Covered Beginning Ending Distributed Paid(2) Return(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
02/24/98+ - 12/31/98 $12.50 $12.75 -- $0.1627 2.00%
- -------------------------------------------------------------------------------------------------------------------
01/01/99 - 11/30/99 12.75 12.96 -- -- 1.65
- -------------------------------------------------------------------------------------------------------------------
Total: -- $0.1627
- -------------------------------------------------------------------------------------------------------------------
Cumulative Total Return as of 11/30/99: 5.00%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Performance Summary Class C Shares
<TABLE>
<CAPTION>
Net Asset Value
----------------------- Capital Gains Dividends Total
Period Covered Beginning Ending Distributed Paid(2) Return(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
02/24/98+ - 12/31/98 $12.50 $12.77 -- $0.1420 2.16%
- -------------------------------------------------------------------------------------------------------------------
01/01/99 - 11/30/99 12.77 12.98 -- -- 1.64
- -------------------------------------------------------------------------------------------------------------------
Total: -- $0.1420
- -------------------------------------------------------------------------------------------------------------------
Cumulative Total Return as of 11/30/99: 4.99%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Moderate Portfolio
<TABLE>
<CAPTION>
Net Asset Value Total Return(1)
----------------------------------------------------------------------------------
12 Months 6 Months
11/30/99 05/31/99 11/30/98 Ended 11/30/99 Ended 11/30/99
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $13.16 $12.81 $12.54 8.07% 3.98%
- -------------------------------------------------------------------------------------------------------------------
Class B Shares 13.12 12.77 12.51 7.22 3.59
- -------------------------------------------------------------------------------------------------------------------
Class C Shares 13.11 12.77 12.51 7.16 3.54
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Performance Summary Class A Shares
<TABLE>
<CAPTION>
Net Asset Value
----------------------- Capital Gains Dividends Total
Period Covered Beginning Ending Distributed Paid(2) Return(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
02/24/98+ - 12/31/98 $12.50 $12.99 -- $0.1804 5.00%
- -------------------------------------------------------------------------------------------------------------------
01/01/99 - 11/30/99 12.99 13.16 -- 0.4465 3.00
- -------------------------------------------------------------------------------------------------------------------
Total: -- $0.6269
- -------------------------------------------------------------------------------------------------------------------
Cumulative Total Return as of 11/30/99: 9.54%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Commencement of Operations.
1 Figures assume reinvestment of all dividends, capital gains and other
distributions at net asset value on the payable dates and do not include
sales charges; results for each class would be lower if sales charges were
included. Total investment return for periods of less than one year has
not been annualized.
2 Certain distributions may contain short-term capital gains.
The data above represents past performance of the Mitchell Hutchins Portfolios
shares, which is no guarantee of future results. The principal value of an
investment in the Mitchell Hutchins Portfolios will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost.
5
<PAGE>
MITCHELL HUTCHINS PORTFOLIOS
PERFORMANCE RESULTS (unaudited)
Moderate Portfolio (concluded)
Performance Summary Class B Shares
<TABLE>
<CAPTION>
Net Asset Value
----------------------- Capital Gains Dividends Total
Period Covered Beginning Ending Distributed Paid(2) Return(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
02/24/98+ - 12/31/98 $12.50 $12.97 -- $0.1476 4.55%
- -------------------------------------------------------------------------------------------------------------------
01/01/99 - 11/30/99 12.97 13.12 -- 0.3193 2.27
Total: -- $0.4669
- -------------------------------------------------------------------------------------------------------------------
Cumulative Total Return as of 11/30/99: 8.12%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Performance Summary Class C Shares
<TABLE>
<CAPTION>
Net Asset Value
----------------------- Capital Gains Dividends Total
Period Covered Beginning Ending Distributed Paid(2) Return(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
02/24/98+ - 12/31/98 $12.50 $12.97 -- $0.1446 4.53%
- -------------------------------------------------------------------------------------------------------------------
01/01/99 - 11/30/99 12.97 13.11 -- 0.3195 2.25
Total: -- $0.4641
- -------------------------------------------------------------------------------------------------------------------
Cumulative Total Return as of 11/30/99: 8.04%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Conservative Portfolio
<TABLE>
<CAPTION>
Net Asset Value Total Return(1)
------------------------------------------ --------------------------------------
12 Months 6 Months
11/30/99 05/31/99 11/30/98 Ended 11/30/99 Ended 11/30/99
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $12.88 $12.97 $13.08 3.09% 1.50%
- -------------------------------------------------------------------------------------------------------------------
Class B Shares 12.84 12.92 13.04 2.31 1.18
- -------------------------------------------------------------------------------------------------------------------
Class C Shares 12.86 12.94 13.05 2.62 1.30
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Performance Summary Class A Shares
<TABLE>
<CAPTION>
Net Asset Value
----------------------- Capital Gains Dividends Total
Period Covered Beginning Ending Distributed Paid(2) Return(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
02/24/98+ - 12/31/98 $12.50 $13.22 -- $0.4236 7.47%
- -------------------------------------------------------------------------------------------------------------------
01/01/99 - 11/30/99 13.22 12.88 -- 0.3781 0.33
- -------------------------------------------------------------------------------------------------------------------
Total: -- $0.8017
- -------------------------------------------------------------------------------------------------------------------
Cumulative Total Return as of 11/30/99: 9.61%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Performance Summary Class B Shares
<TABLE>
<CAPTION>
Net Asset Value
----------------------- Capital Gains Dividends Total
Period Covered Beginning Ending Distributed Paid(2) Return(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
02/24/98+ - 12/31/98 $12.50 $13.18 -- $0.3642 6.89%
- -------------------------------------------------------------------------------------------------------------------
01/01/99 - 11/30/99 13.18 12.84 -- 0.3074 (0.22)
- -------------------------------------------------------------------------------------------------------------------
Total: -- $0.6716
- -------------------------------------------------------------------------------------------------------------------
Cumulative Total Return as of 11/30/99: 8.20%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Performance Summary Class C Shares
<TABLE>
<CAPTION>
Net Asset Value
----------------------- Capital Gains Dividends Total
Period Covered Beginning Ending Distributed Paid(2) Return(1)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
02/24/98+ - 12/31/98 $12.50 $13.21 -- $0.3807 7.20%
- -------------------------------------------------------------------------------------------------------------------
01/01/99 - 11/30/99 13.21 12.86 -- 0.3291 (0.12)
- -------------------------------------------------------------------------------------------------------------------
Total: -- $0.7098
- -------------------------------------------------------------------------------------------------------------------
Cumulative Total Return as of 11/30/99: 8.68%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Commencement of Operations.
1 Figures assume reinvestment of all dividends, capital gains and other
distributions at net asset value on the payable dates and do not include
sales charges; results for each class would be lower if sales charges were
included. Total investment return for periods of less than one year has
not been annualized.
2 Certain distributions may contain short-term capital gains.
The data above represents past performance of the Mitchell Hutchins Portfolios
shares, which is no guarantee of future results. The principal value of an
investment in the Mitchell Hutchins Portfolios will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost.
6
<PAGE>
MITCHELL HUTCHINS PORTFOLIOS
PERFORMANCE RESULTS (unaudited) (concluded)
AVERAGE ANNUAL TOTAL RETURN(1)
Aggressive Portfolio
<TABLE>
<CAPTION>
% Return Without Deducting % Return After Deducting
Maximum Sales Charge Maximum Sales Charge
------------------------------------ --------------------------
Class A* B** C*** A* B** C***
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Twelve Months Ended 12/31/99 9.16% 8.33% 8.32% 4.26% 3.33% 7.32%
- -------------------------------------------------------------------------------------------------------------------
Commencement of Operations
Through 12/31/99+ 7.04 6.26 6.26 4.41 3.67 6.26
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Moderate Portfolio
<TABLE>
<CAPTION>
% Return Without Deducting % Return After Deducting
Maximum Sales Charge Maximum Sales Charge
------------------------------------ --------------------------
Class A* B** C*** A* B** C***
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Twelve Months Ended 12/31/99 8.09% 7.24% 7.27% 3.24% 2.24% 6.27%
- -------------------------------------------------------------------------------------------------------------------
Commencement of Operations
Through 12/31/99+ 7.82 7.01 7.00 5.17 4.44 7.00
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Conservative Portfolio
<TABLE>
<CAPTION>
% Return Without Deducting % Return After Deducting
Maximum Sales Charge Maximum Sales Charge
------------------------------------ --------------------------
Class A* B** C*** A* B** C***
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Twelve Months Ended 12/31/99 1.27% 0.66% 0.77% (2.77)% (4.04)% 0.07%
- -------------------------------------------------------------------------------------------------------------------
Commencement of Operations
Through 12/31/99+ 5.61 4.84 5.10 3.31 2.24 5.10
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Figures assume reinvestment of all dividends and other distributions at
net asset value on the payable dates.
* Maximum sales charge for Class A shares is 4.5% for the Aggressive
Portfolio and the Moderate Portfolio and 4% for the Conservative Portfolio
of the public offering price. Class A shares bear ongoing 12b-1 service
fees.
** Maximum contingent deferred sales charge for Class B shares is 5% and is
reduced to 0% after 6 years. Class B shares bear ongoing 12b-1
distribution and service fees.
*** Maximum contingent deferred sales charge for Class C shares is 1.00% for
the Aggressive Portfolio and the Moderate Portfolio and 0.75% for the
Conservative Protfolio and is reduced to 0% after 1 year. Class C shares
bear ongoing 12b-1 distribution and service fees.
+ Commencement of issuance date is February 24, 1998 for Class A, Class B
and Class C shares.
Note: The Mitchell Hutchins Portfolios offers Class Y shares to a limited group
of eligible investors, including participants in certain investment
programs that are sponsored by PaineWebber and may invest in PaineWebber
mutual funds. For the six months ended November 30, 1999, Aggressive
Portfolio, Moderate Portfolio and Conservative Portfolio Class Y shares
had a total return of 4.21%, 4.03% and 1.55%, respectively. Also, since
inception, February 24, 1998 through November 30, 1999, Aggressive
Portfolio, Moderate Portfolio and Conservative Portfolio Class Y shares
had a total return of 6.85%, 9.94% and 10.00%, respectively. For the
twelve months ended December 31, 1999, Aggressive Portfolio, Moderate
Portfolio, and Conservative Portfolio Class Y shares had an average annual
total return of 9.38%, 8.30%, and 1.10%, respectively. Also, since
inception, February 24, 1998 through December 31, 1999, Aggressive
Portfolio, Moderate Portfolio, and Conservative Portfolio Class Y shares
had an average annual total return of 7.30%, 8.03%, and 5.87%,
respectively. Class Y shares do not have initial or contingent deferred
sales charges or ongoing distribution and service fees.
The data above represents past performance of the Fund's shares, which is no
guarantee of future results. The principal value of an investment in the Fund
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than their original cost.
7
<PAGE>
MITCHELL HUTCHINS AGGRESSIVE PORTFOLIO
PORTFOLIO OF INVESTMENTS NOVEMBER 30, 1999 (unaudited)
Number of
Shares Value
- ---------- ------------
Stock Mutual Funds--69.10%
24,485 PaineWebber Global Equity Fund ....................... $467,907
22,588 PaineWebber Growth and Income Fund ................... 743,130
4,995 PaineWebber Growth Fund .............................. 157,738
76,407 PaineWebber Small Cap Fund ........................... 821,371
----------
2,190,146
----------
Bond Mutual Funds--27.86%
14,787 PaineWebber Global Income Fund ....................... 142,102
81,638 PaineWebber High Income Fund ......................... 498,809
24,319 PaineWebber Investment Grade Income Fund ............. 241,969
----------
882,880
----------
Total Investments (cost--$2,983,719)--96.96% .................... 3,073,026
Other assets in excess of liabilities--3.04% .................... 96,365
----------
Net Assets--100.00% ............................................. $3,169,391
==========
See accompanying notes to financial statements
8
<PAGE>
MITCHELL HUTCHINS MODERATE PORTFOLIO
PORTFOLIO OF INVESTMENTS NOVEMBER 30, 1999 (unaudited)
Number of
Shares Value
- ---------- ----------
Stock Mutual Funds--51.05%
37,887 PaineWebber Global Equity Fund ................... $ 724,029
47,041 PaineWebber Growth and Income Fund ............... 1,547,648
23,294 PaineWebber Growth Fund .......................... 735,615
53,601 PaineWebber Small Cap Fund ....................... 576,213
----------
3,583,505
----------
Bond Mutual Funds--47.67%
68,109 PaineWebber Global Income Fund ................... 654,525
57,021 PaineWebber High Income Fund ..................... 348,396
118,100 PaineWebber Investment Grade Income Fund ......... 1,175,095
137,521 PaineWebber U.S. Government Income Fund .......... 1,168,931
----------
3,346,947
----------
Total Investments (cost--$6,800,732)--98.72% ................... 6,930,452
Other assets in excess of liabilities--1.28% ................... 89,820
----------
Net Assets--100.00% ............................................ $7,020,272
==========
See accompanying notes to financial statements
9
<PAGE>
MITCHELL HUTCHINS CONSERVATIVE PORTFOLIO
PORTFOLIO OF INVESTMENTS NOVEMBER 30, 1999 (unaudited)
Number of
Shares Value
- ---------- ----------
Stock Mutual Fund--9.35%
7,564 PaineWebber Growth and Income Fund ................... $248,848
----------
Bond Mutual Funds--82.18%
25,050 PaineWebber Global Income Fund ....................... 240,728
36,810 PaineWebber Investment Grade Income Fund ............. 366,266
264,428 PaineWebber Low Duration U.S. Government Income Fund . 608,184
114,473 PaineWebber U.S. Government Income Fund .............. 973,025
----------
2,188,203
----------
Total Investments (cost--$2,459,269)--91.53% .................... 2,437,051
Other assets in excess of liabilities--8.47% .................... 225,554
----------
Net Assets--100.00% ............................................. $2,662,605
==========
See accompanying notes to financial statements
10
<PAGE>
MITCHELL HUTCHINS PORTFOLIOS
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1999 (unaudited)
<TABLE>
<CAPTION>
Aggressive Moderate Conservative
Portfolio Portfolio Portfolio
----------- ----------- -----------
<S> <C> <C> <C>
Assets
Investments in Underlying Funds, at value (cost--$2,983,719,
$6,800,732 and $2,459,269, respectively) ........................... $ 3,073,026 $ 6,930,452 $ 2,437,051
Cash ............................................................... 19,708 9,355 41,508
Receivable for investments sold .................................... 4,686 140,421 116,247
Receivable from affiliate .......................................... 37,706 53,701 39,752
Dividends receivable ............................................... 3,006 11,134 2,632
Deferred organizational expenses ................................... 58,287 58,287 58,287
Other assets ....................................................... 5,940 20,656 8,241
----------- ----------- -----------
Total assets ....................................................... 3,202,359 7,224,006 2,703,718
----------- ----------- -----------
Liabilities
Payable for investments purchased .................................. -- 136,136 --
Accrued expenses and other liabilities ............................. 32,968 67,598 41,113
----------- ----------- -----------
Total liabilities .................................................. 32,968 203,734 41,113
----------- ----------- -----------
Net Assets
Beneficial interest--$0.001 par value
(unlimited number authorized) .................................... 3,218,745 6,508,493 2,622,154
Undistributed net investment income ................................ 30,079 62,368 35,118
Accumulated net realized gains (losses)
from investment transactions ..................................... (168,740) 319,691 27,551
Net unrealized appreciation (depreciation) of investments .......... 89,307 129,720 (22,218)
----------- ----------- -----------
Net assets ......................................................... $ 3,169,391 $ 7,020,272 $ 2,662,605
=========== =========== ===========
Class A:
Net assets ......................................................... $ 638,842 $ 1,431,270 $ 495,026
----------- ----------- -----------
Shares outstanding ................................................. 48,846 108,789 38,432
----------- ----------- -----------
Net asset value and redemption price per share ..................... $13.08 $13.16 $12.88
====== ====== ======
Maximum offering price per share (net asset value plus sales charge
of 4.50%, 4.50% and 4.00% of offering price, respectively) .... $13.70 $13.78 $13.42
====== ====== ======
Class B:
Net assets ......................................................... $ 926,703 $ 2,734,058 $ 1,776,385
----------- ----------- -----------
Shares outstanding ................................................. 71,513 208,465 138,384
----------- ----------- -----------
Net asset value and offering price per share ....................... $12.96 $13.12 $12.84
====== ====== ======
Class C:
Net assets ......................................................... $ 1,593,164 $ 2,841,813 $ 385,690
----------- ----------- -----------
Shares outstanding ................................................. 122,724 216,719 29,989
----------- ----------- -----------
Net asset value and offering price per share ....................... $12.98 $13.11 $12.86
====== ====== ======
Class Y:
Net assets ......................................................... $ 10,682 $ 13,131 $ 5,504
----------- ----------- -----------
Shares outstanding ................................................. 814 998 427
----------- ----------- -----------
Net asset value, offering price and redemption value per share ..... $13.12 $13.16 $12.89
====== ====== ======
</TABLE>
See accompanying notes to financial statements
11
<PAGE>
MITCHELL HUTCHINS PORTFOLIOS
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For the Six Months Ended
November 30, 1999 (unaudited)
-------------------------------------
Aggressive Moderate Conservative
Portfolio Portfolio Portfolio
--------- --------- ---------
<S> <C> <C> <C>
Investment income:
Dividends from Underlying Funds .......................................... $ 52,012 $ 201,292 $ 103,082
--------- --------- ---------
Expenses:
Federal and state registration ........................................... 46,637 67,880 49,629
Legal and audit .......................................................... 20,750 22,078 20,290
Investment advisory and administration ................................... 9,935 24,697 7,727
Service fees--Class A .................................................... 1,706 2,554 868
Service and distribution fees--Class B ................................... 9,541 31,749 15,131
Service and distribution fees--Class C ................................... 12,001 28,539 2,587
Amortization of organizational expenses .................................. 9,026 9,026 9,026
Trustees' fees ........................................................... 5,250 5,250 5,250
Transfer agency and service fees ........................................ 4,500 6,693 4,500
Reports and notices to shareholders ...................................... 3,887 11,849 3,906
Custody and accounting ................................................... 853 2,117 662
Other expenses ........................................................... 7,564 10,410 19,953
--------- --------- ---------
131,650 222,842 139,529
Less: Fee waivers and expense reimbursements from
adviser/underlying funds ............................................... (108,402) (160,000) (120,943)
--------- --------- ---------
Net expenses ............................................................. 23,248 62,842 18,586
--------- --------- ---------
Net investment income .................................................... 28,764 138,450 84,496
--------- --------- ---------
Realized and unrealized gains (losses) from investment activities:
Net realized gains (losses) from investment transactions ................. 88,594 443,099 (31,464)
Net change in unrealized appreciation (depreciation) of investments ...... 96,684 (72,831) 9,644
--------- --------- ---------
Net realized and unrealized gains (losses) from investment activities .... 185,278 370,268 (21,820)
--------- --------- ---------
Net increase in net assets resulting from operations ..................... $ 214,042 $ 508,718 $ 62,676
========= ========= =========
</TABLE>
See accompanying notes to financial statements
12
<PAGE>
MITCHELL HUTCHINS AGGRESSIVE PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six
Months Ended For the Year
November 30, 1999 Ended
(unaudited) May 31, 1999
----------- -----------
<S> <C> <C>
From operations:
Net investment income ..................................................... $ 28,764 $ 64,703
Net realized gains (losses) from investment transactions and
distributions from Underlying Funds ..................................... 88,594 (249,501)
Net change in unrealized appreciation/depreciation of investments ......... 96,684 70,480
----------- -----------
Net increase (decrease) in net assets resulting from operations ........... 214,042 (114,318)
----------- -----------
Dividends and distributions to shareholders from:
Net investment income--Class A ............................................ -- (24,252)
Net investment income--Class B ............................................ -- (18,876)
Net investment income--Class C ............................................ -- (14,463)
Net investment income--Class Y ............................................ -- (137)
Net realized gains from investment transactions--Class A .................. -- (9,472)
Net realized gains from investment transactions--Class B .................. -- (10,711)
Net realized gains from investment transactions--Class C .................. -- (10,251)
Net realized gains from investment transactions--Class Y .................. -- (47)
----------- -----------
Total dividends and distributions to shareholders ......................... -- (88,209)
----------- -----------
From beneficial interest transactions:
Net proceeds from the sale of shares ...................................... 627,828 4,324,175
Cost of shares repurchased ................................................ (3,771,626) (3,224,665)
Proceeds from dividends reinvested ........................................ -- 81,900
----------- -----------
Net increase (decrease) in net assets from beneficial interest
transactions ............................................................ (3,143,798) 1,181,410
----------- -----------
Net increase (decrease) in net assets ..................................... (2,929,756) 978,883
Net assets:
Beginning of period ....................................................... 6,099,147 5,120,264
----------- -----------
End of period (including undistributed net investment income of
$30,079 and $1,315, respectively) ....................................... $ 3,169,391 $ 6,099,147
=========== ===========
</TABLE>
See accompanying notes to financial statements
13
<PAGE>
MITCHELL HUTCHINS MODERATE PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six
Months Ended For the Year
November 30, 1999 Ended
(unaudited) May 31, 1999
----------- ------------
<S> <C> <C>
From operations:
Net investment income ........................................... $ 138,450 $ 224,608
Net realized gains (losses) from investment transactions and
distributions from Underlying Funds ........................... 443,099 (103,419)
Net change in unrealized appreciation/depreciation of
investments ................................................... (72,831) 245,743
------------ ------------
Net increase in net assets resulting from operations ............ 508,718 366,932
------------ ------------
Dividends and distributions to shareholders from:
Net investment income--Class A .................................. (24,964) (45,533)
Net investment income--Class B .................................. (51,814) (91,733)
Net investment income--Class C .................................. (48,954) (63,927)
Net investment income--Class Y .................................. (168) (311)
Net realized gains from investment transactions--Class A ........ -- (8,309)
Net realized gains from investment transactions--Class B ........ -- (27,305)
Net realized gains from investment transactions--Class C ........ -- (17,244)
Net realized gains from investment transactions--Class Y ........ -- (54)
------------ ------------
Total dividends and distributions to shareholders ............... (125,900) (254,416)
------------ ------------
From beneficial interest transactions:
Net proceeds from the sale of shares ............................ 1,063,006 11,354,186
Cost of shares repurchased ...................................... (9,021,642) (4,683,813)
Proceeds from dividends reinvested .............................. 124,309 243,969
------------ ------------
Net increase (decrease) in net assets from beneficial
interest transactions ......................................... (7,834,327) 6,914,342
------------ ------------
Net increase (decrease) in net assets ........................... (7,451,509) 7,026,858
Net assets:
Beginning of period ............................................. 14,471,781 7,444,923
------------ ------------
End of period (including undistributed net investment income of
$62,368 and $49,818, respectively) ............................ $ 7,020,272 $ 14,471,781
============ ============
</TABLE>
See accompanying notes to financial statements
14
<PAGE>
MITCHELL HUTCHINS CONSERVATIVE PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Six
Months Ended For the Year
November 30, 1999 Ended
(unaudited) May 31, 1999
----------- -----------
<S> <C> <C>
From operations:
Net investment income ........................................... $ 84,496 $ 141,083
Net realized gains (losses) from investment transactions and
distributions from Underlying Funds ........................... (31,464) 68,090
Net change in unrealized appreciation/depreciation of
investments ................................................... 9,644 (31,919)
----------- -----------
Net increase in net assets resulting from operations ............ 62,676 177,254
----------- -----------
Dividends and distributions to shareholders from:
Net investment income--Class A .................................. (15,234) (22,766)
Net investment income--Class B .................................. (54,495) (79,913)
Net investment income--Class C .................................. (13,130) (21,245)
Net investment income--Class Y .................................. (124) (205)
Net realized gains from investment transactions--Class A ........ -- (2,184)
Net realized gains from investment transactions--Class B ........ -- (10,673)
Net realized gains from investment transactions--Class C ........ -- (2,522)
Net realized gains from investment transactions--Class Y ........ -- (19)
----------- -----------
Total dividends and distributions to shareholders ............... (82,983) (139,527)
----------- -----------
From beneficial interest transactions:
Net proceeds from the sale of shares ............................ 490,321 3,052,884
Cost of shares repurchased ...................................... (2,606,686) (1,137,196)
Proceeds from dividends reinvested .............................. 65,843 104,662
----------- -----------
Net increase (decrease) in net assets from beneficial
interest transactions ......................................... (2,050,522) 2,020,350
----------- -----------
Net increase (decrease) in net assets ........................... (2,070,829) 2,058,077
Net assets:
Beginning of period ............................................. 4,733,434 2,675,357
----------- -----------
End of period (including undistributed net investment income
of $35,118 and $33,605, respectively) ......................... $ 2,662,605 $ 4,733,434
=========== ===========
</TABLE>
See accompanying notes to financial statements
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Mitchell Hutchins Aggressive Portfolio ("Aggressive Portfolio"), Mitchell
Hutchins Moderate Portfolio ("Moderate Portfolio") and Mitchell Hutchins
Conservative Portfolio ("Conservative Portfolio") (collectively the
"Portfolios") are each a diversified series of Mitchell Hutchins Portfolios (the
"Trust"), an open-end management investment company organized as a Delaware
business trust on August 20, 1997. The Portfolios invest solely in shares of
other funds within the PaineWebber Group of Funds (the "Underlying Funds").
Costs incurred by the Portfolios in connection with their organization
have been deferred and are being amortized using the straight-line method over a
period not to exceed sixty months from the commencement of operations. If any
initial shares are redeemed by Mitchell Hutchins during the amortization period,
the redemption proceeds shall be reduced by the pro rata portion of unamortized
organizational expenses which the number of shares redeemed bears to the number
of initial shares then outstanding.
Currently, each Portfolio offers Class A, Class B, Class C and Class Y
shares. Each class represents interests in the assets of the applicable
Portfolio. The classes are identical except for differences in the sales charge
structures, ongoing service and distribution charges and certain transfer agency
and related expenses. In addition, Class B shares and all corresponding dividend
reinvested shares automatically convert to Class A shares approximately six
years after issuance. All classes of shares have equal voting privileges except
that Class A, Class B and Class C shares have exclusive voting rights with
respect to their service and/or distribution plan. There is no distribution plan
with respect to the Portfolios' Class Y shares.
The preparation of financial statements in accordance with generally
accepted accounting principles requires the Portfolios' management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates. The
following is a summary of significant accounting policies:
Valuation of Investments--The net asset value of a Portfolio's shares
fluctuates and is determined separately for each class as of the close of
regular trading on the New York Stock Exchange (currently 4:00 p.m., Eastern
time) each business day. Each Portfolio's net asset value per share is
determined by dividing the value of the Underlying Funds held plus any cash or
other assets, minus all liabilities, by the total number of Portfolio shares
outstanding. The value of each Underlying Fund will be its net asset value at
the time of computation.
Investment Transactions and Investment Income--Investment transactions are
recorded on the trade date. Realized gains and losses from investment
transactions are calculated using the identified cost method. Dividend income
and long term capital gain distributions from Underlying Funds are recorded on
the ex-dividend date. Short-term capital gains distributions from Underlying
Funds are recorded as dividend income. Long term capital gains distributions
from Underlying Funds are recorded as realized gains.
Income, expenses (excluding class-specific expenses) and
realized/unrealized gains/losses are allocated proportionately to each class of
shares based upon the relative net asset value of outstanding shares (or the
value of dividend-eligible shares, as appropriate) of each class at the
beginning of the day (after adjusting for current capital share activity of the
respective classes). Class specific expenses are charged directly to the
applicable class of shares.
Dividends and Distributions--Dividends and distributions to shareholders
are recorded on the ex-dividend date. Dividends from net investment income and
distributions from realized capital gains are determined in accordance with
federal income tax regulations which may differ from generally accepted
accounting principles. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
amounts are reclassified within the capital accounts based on the tax-basis
treatment; temporary differences do not require reclassification.
INVESTMENT RISK
All the Portfolios hold shares of Underlying Funds that invest in equity
securities, although the specific Underlying Funds and the percentage of a
Portfolio's assets invested in each Underlying Fund varies. Equity securities
historically have shown greater growth potential than other types of securities,
but they have also shown greater volatility.
All Portfolios hold shares of Underlying Funds that invest in bonds,
although the specific Underlying Funds and the percentage of a Portfolio's
assets invested in each Underlying Fund varies. Bonds are subject to interest
rate and credit risk. Interest rate risk is the risk that the interest rates
will rise and as a result bond prices will fall, lowering the value of the
Underlying Fund's investments. Credit risk is the risk that the issuer or
guarantor may be unable or unwilling to pay interest or repay principal on the
bond. Some Underlying Funds may invest in bonds rated below investment grade,
which are subject to greater risks of default or price fluctuation than
investment grade bonds and are considered predominantly speculative.
Some Underlying Funds are subject to the special risks of investing in
foreign equity securities or foreign bonds, which include possible adverse
political, social and economic developments abroad and differing characteristics
of foreign economics and markets. These risks are greater with respect to
securities of issuers located in emerging markets.
Each Underlying Fund (other than PaineWebber Cashfund, Inc.) may use
derivatives, such as options, futures contracts, foreign currency contracts,
swaps and similar instruments, in its investment activities. Each type of
derivative instrument presents its own special risks.
INVESTMENT ADVISER AND ADMINISTRATOR
The Trust's board of trustees has approved an Investment Advisory and
Administration Contract ("Advisory Contract") with Mitchell Hutchins Asset
Management Inc. ("Mitchell Hutchins"), the investment adviser and a wholly owned
asset management subsidiary of PaineWebber Incorporated ("PaineWebber"), under
which Mitchell Hutchins serves as investment adviser and administrator of the
Portfolios. In accordance with the Advisory Contract, each Portfolio pays
Mitchell Hutchins an investment advisory and administration fee, which is
computed and accrued daily and paid monthly, at the annual rate of 0.35% of each
Portfolio's average daily net assets. For the six months ended November 30,
1999, Mitchell Hutchins waived their entire fee. In addition, Mitchell Hutchins
reimbursed other expenses of $71,370, $96,788 and $107,052, to the Aggressive
Portfolio, Moderate Portfolio and Conservative Portfolio, respectively, for the
six months ended November 30, 1999. At November 30, 1999, Mitchell Hutchins owed
$27,712, $45,258 and $39,586, to the Aggressive Portfolio, Moderate Portfolio
and Conservative Portfolio, respectively, for the other expenses reimbursed.
SERVICING AGREEMENT
The Trust's board of trustees has approved a Servicing Agreement
("Servicing Agreement") with Mitchell Hutchins, under which the officers of the
Underlying Funds would determine monthly whether the expenses of a Portfolio
with respect to its investment in an Underlying Fund are greater than the
estimated savings to the Underlying Fund from the operation of the Portfolio. If
the aggregate financial benefits to the Underlying Fund equal or exceed the
administrative expenses of a Portfolio, there would be a reimbursement to the
Portfolio under the Servicing Agreement. The expenses of the Portfolios would be
passed through to the Underlying Funds in proportion to the average daily value
of each Underlying Fund's shares held by each Portfolio, provided further that
no Underlying Fund would bear such expenses in excess of the estimated savings
to it. For the six months ended November 30, 1999, the Underlying Funds incurred
$27,097, $38,515 and
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
$6,164, to the Aggressive Portfolio, Moderate Portfolio and Conservative
Portfolio, respectively, for the reimbursement of other expenses. At November
30, 1999, the Underlying Funds owed $13,385, $17,640 and $2,859, to the
Aggressive Portfolio, Moderate Portfolio and Conservative Portfolio,
respectively, for the reimbursement of other expenses.
DISTRIBUTION PLANS
Mitchell Hutchins is the distributor of each Portfolio's shares and has
appointed PaineWebber as the exclusive dealer for the sale of those shares.
Under separate plans of service and/or distribution pertaining to Class A, Class
B, and Class C shares, each Portfolio pays Mitchell Hutchins monthly service
fees at the annual rate of 0.25% of the average daily net assets of Class A,
Class B, and Class C shares. The Aggressive Portfolio and Moderate Portfolio
each pay Mitchell Hutchins monthly distribution fees at the annual rate of 0.75%
of the average daily net assets of Class B and Class C shares while the
Conservative Portfolio pays monthly distribution fees at the annual rate of
0.75% and 0.50% of the average daily net assets of Class B and Class C shares,
respectively. There is no distribution plan with respect to the Portfolios'
Class Y shares. At November 30, 1999, Aggressive Portfolio, Moderate Portfolio
and Conservative Portfolio owed Mitchell Hutchins $3,391, $9,197, and $2,693
respectively, in service and distribution fees.
Mitchell Hutchins also receives the proceeds of the initial sales charges
paid by the shareholders upon the purchase of Class A shares and the contingent
deferred sales charges paid by the shareholders upon certain redemptions of
Class A, Class B, and Class C shares. Mitchell Hutchins has informed each
Portfolio that for the six months ended November 30, 1999, it earned $45,790,
$109,405 and $54,918 in sales charges for the Aggressive Portfolio, Moderate
Portfolio and Conservative Portfolio, respectively.
TRANSFER AGENCY AND RELATED SERVICES FEES
PaineWebber provides transfer agency related services to each Portfolio
pursuant to a delegation of authority from PFPC, Inc., the Portfolios' transfer
agent, and is compensated for these services by PFPC, Inc. For the six months
ended November 30, 1999, PaineWebber received from PFPC, Inc., approximately
34%, 39% and 11% of the total transfer agency and related services fees
collected by PFPC, Inc. from the Aggressive Portfolio, Moderate Portfolio and
Conservative Portfolio, respectively.
INVESTMENTS IN SECURITIES
At November 30, 1999, the cost of securities owned for federal income tax
purposes for the Aggressive Portfolio, Moderate Portfolio and Conservative
Portfolio was substantially the same as the cost of securities for financial
statement purposes.
At November 30, 1999, the components of net unrealized
appreciation/(depreciation) for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
Aggressive Moderate Conservative
Portfolio Portfolio Portfolio
---------- --------- ------------
<S> <C> <C> <C>
Gross appreciation (investments having an excess of value over cost)...... $ 99,735 $ 207,342 $ 5,545
Gross depreciation (investments having an excess of cost over value)...... (10,428) (77,622) (27,763)
--------- --------- ---------
Net appreciation/(depreciation) of investments ........................... $ 89,307 $ 129,720 $ (22,218)
========= ========= =========
</TABLE>
For the six months ended November 30, 1999, total aggregate purchases and
sales of portfolio securities (Underlying Funds), excluding short-term
securities, were as follows:
Aggressive Moderate Conservative
Portfolio Portfolio Portfolio
----------- ----------- -----------
Purchases ............ $ 3,141,247 $ 8,849,226 $ 3,466,131
Sales ................ 5,936,161 15,922,634 5,094,528
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
FEDERAL INCOME TAX STATUS
Each Portfolio intends to distribute substantially all of its taxable
income and to comply with the other requirements of the Internal Revenue Code to
qualify for treatment as a regulated investment company. Accordingly, no
provision for federal income taxes is required. In addition, by distributing
during each calendar year, substantially all of its net investment income and
capital gains, if any, each Portfolio intends not to be subject to a federal
excise tax.
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
SHARES OF BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value shares of beneficial
interest authorized. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Class A Class B Class C Class Y
----------------------- ----------------------- ----------------------- -----------------
Shares Amount Shares Amount Shares Amount Shares Amount
------- ----------- ------- ----------- ------- ----------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aggressive Portfolio
For the Six Months Ended
November 30, 1999
Shares sold ............ 7,663 $ 97,715 17,623 $ 219,779 24,535 $ 310,334 -- $ --
Shares repurchased ..... (88,195) (1,140,958) (110,600) (1,427,619) (93,898) (1,203,049) -- --
------- ----------- ------- ----------- ------- ----------- ----- -----
Net decrease ........... (80,532) $(1,043,243) (92,977) $(1,207,840) (69,363) $ (892,715) -- $ --
======= =========== ======= =========== ======= =========== ===== =====
<CAPTION>
Class A Class B Class C Class Y
----------------------- ----------------------- ----------------------- -----------------
Shares Amount Shares Amount Shares Amount Shares Amount
------- ----------- ------- ----------- ------- ----------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aggressive Portfolio
For the Year Ended
May 31, 1999
Shares sold ........ 131,503 $ 1,648,007 112,207 $1,379,469 105,158 $1,296,688 1 $ 11
Shares repurchased . (129,313) (1,602,269) (61,026) (743,530) (73,010) (878,855) (1) (11)
Dividends reinvested 2,276 29,091 2,213 28,210 1,912 24,415 14 184
-------- ----------- ------- ---------- ------- ---------- ----- -----
Net increase ....... 4,466 $ 74,829 53,394 $ 664,149 34,060 $ 442,248 14 $ 184
======== =========== ======= ========== ======= ========== ===== =====
<CAPTION>
Class A Class B Class C Class Y
----------------------- ----------------------- ----------------------- -----------------
Shares Amount Shares Amount Shares Amount Shares Amount
------- ----------- ------- ----------- ------- ----------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Moderate Portfolio
For the Six Months Ended
November 30, 1999
Shares sold ............ 6,460 $ 83,342 39,134 $ 503,760 36,963 $ 475,904 -- $ --
Shares repurchased ..... (70,667) (923,130) (344,261) (4,500,589) (274,811) (3,597,923) -- --
Dividends reinvested ... 1,936 24,614 4,030 51,089 3,825 48,438 14 168
Shares converted from
Class B to Class A ... 1,808 22,966 (1,813) (22,966) -- -- -- --
------- ----------- -------- ----------- -------- ----------- ----- ------
Net increase (decrease) (60,463) $ (792,208) (302,910) $(3,968,706) (234,023) $(3,073,581) 14 $ 168
======= =========== ======== =========== ======== =========== ===== ======
<CAPTION>
Class A Class B Class C Class Y
----------------------- ----------------------- ----------------------- -----------------
Shares Amount Shares Amount Shares Amount Shares Amount
------- ----------- ------- ----------- ------- ----------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Moderate Portfolio
For the Year Ended
May 31, 1999
Shares sold ......... 201,283 $ 2,542,864 417,744 $ 5,149,164 288,401 $ 3,662,096 5 $ 62
Shares repurchased .. (167,947) (2,126,200) (142,121) (1,794,226) (61,129) (763,387) -- --
Dividends reinvested 3,981 49,989 8,999 113,772 6,338 79,905 24 303
Shares converted from
Class B to Class A 2,340 30,344 (2,345) (30,344) -- -- -- --
-------- ----------- -------- ----------- ------- ----------- ----- ------
Net increase ........ 39,657 $ 496,997 282,277 $ 3,438,366 233,610 $ 2,978,614 29 $ 365
======== =========== ======== =========== ======= =========== ===== ======
</TABLE>
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
SHARES OF BENEFICIAL INTEREST (concluded)
<TABLE>
<CAPTION>
Class A Class B Class C Class Y
----------------------- ----------------------- ----------------------- -----------------
Shares Amount Shares Amount Shares Amount Shares Amount
------- ----------- ------- ----------- ------- ----------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Conservative Portfolio
For the Six Months Ended
November 30, 1999
Shares sold ............ 2,617 $ 33,813 31,733 $ 405,178 3,987 $ 51,330 -- $ --
Shares repurchased ..... (20,265) (261,952) (143,590) (1,849,423) (38,385) (495,311) -- --
Dividends reinvested ... 809 10,308 3,519 44,775 835 10,635 10 125
------- ----------- -------- ----------- ------- ----------- ----- ------
Net increase (decrease) (16,839) $ (217,831) (108,338) $(1,399,470) (33,563) $ (433,346) 10 $ 125
======= =========== ======== =========== ======= =========== ===== ======
<CAPTION>
Class A Class B Class C Class Y
----------------------- ----------------------- ----------------------- -----------------
Shares Amount Shares Amount Shares Amount Shares Amount
------- ----------- ------- ----------- ------- ----------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Conservative Portfolio
For the Year Ended
May 31, 1999
Shares sold .......... 50,680 $ 662,574 138,571 $ 1,778,732 47,290 $ 611,578 -- $ --
Shares repurchased ... (38,633) (504,880) (26,123) (336,062) (22,943) (296,254) -- --
Dividends reinvested . 1,096 14,233 5,627 72,903 1,332 17,302 17 224
Shares converted from
Class B to Class A . 1,654 21,412 (1,660) (21,412) -- -- -- --
------- ----------- ------- ----------- ------- ----------- ----- ------
Net increase ......... 14,797 $ 193,339 116,415 $ 1,494,161 25,679 $ 332,626 17 $ 224
======= =========== ======= =========== ======= =========== ===== ======
</TABLE>
21
<PAGE>
MITCHELL HUTCHINS AGGRESSIVE PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
Class A Class B
----------------------------------------- -----------------------------------------
For the For the For the For the
Six Period Six Period
Months For the February 24, Months For the February 24,
Ended Year 1998+ Ended Year 1998+
November 30, Ended through November 30, Ended through
1999 May 31, May 31, 1999 May 31, May 31,
(unaudited) 1999 1998 (unaudited) 1999 1998
------------ --------- ------------ ------------ --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $12.57 $12.98 $12.50 $12.50 $12.96 $12.50
------ ------ ------ ------ ------ ------
Net investment income .................... 0.11@ 0.19 0.03 0.05@ 0.09 0.01
Net realized and unrealized gains
(losses) from investments .............. 0.40@ (0.39) 0.45 0.41@ (0.39) 0.45
------ ------ ------ ------ ------ ------
Net increase (decrease) from investment
operations ............................. 0.51 (0.20) 0.48 0.46 (0.30) 0.46
------ ------ ------ ------ ------ ------
Dividends from net investment income ..... -- (0.15) -- -- (0.10) --
Distributions from net realized gains
from investment transactions ........... -- (0.06) -- -- (0.06) --
------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders ........................ -- (0.21) -- -- (0.16) --
------ ------ ------ ------ ------ ------
Net asset value, end of period ........... $13.08 $12.57 $12.98 $12.96 $12.50 $12.96
====== ====== ====== ====== ====== ======
Total investment return(1) ............... 4.06% (1.57)% 3.84% 3.68% (2.32)% 3.68%
====== ====== ====== ====== ====== ======
Ratios/Supplemental data:
Net assets, end of period (000's) ........ $ 639 $1,626 $1,622 $ 927 $2,057 $1,440
Expenses to average net assets,
net of waivers and reimbursements
from adviser and Underlying Funds ...... 0.25%* 0.25% 0.25%* 1.00%* 1.00% 1.00%*
Expenses to average net assets,
before waivers and reimbursements
from adviser and Underlying Funds ...... 4.07%* 4.54% 3.98%* 4.82%* 5.29% 4.80%*
Net investment income to average
net assets, net of waivers and
reimbursements from adviser
and Underlying Funds ................... 1.58%* 1.65% 1.49%* 0.85%* 0.87% 0.70%*
Net investment loss to average
net assets, before waivers and
reimbursements from adviser
and Underlying Funds ................... (2.24)%* (2.64)% (2.24)%* (2.97)%* (3.42)% (3.10)%*
Portfolio turnover rate .................. 62% 104% 6% 62% 104% 6%
</TABLE>
- ----------
+ Commencement of issuance of shares.
* Annualized.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
distributions, if any, at net asset value on the payable dates and a sale
at net asset value on the last day of each period reported. The figures do
not include sales charges or program fees; results would be lower if sales
charges or program fees were included. Total investment return for periods
of less than one year have not been annualized.
@ Calculated using the average daily shares outstanding for the period.
22
<PAGE>
<TABLE>
<CAPTION>
Class C Class Y
---------------------------------------- -------------------------------------------
For the For the For the For the
Six Period Six Period
Months For the February 24, Months For the February 24,
Ended Year 1998+ Ended Year 1998+
November 30, Ended through November 30, Ended through
1999 May 31, May 31, 1999 May 31, May 31,
(unaudited) 1999 1998 (unaudited) 1999 1998
------------ -------- ------------ ------------ -------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .. $12.52 $12.96 $12.50 $12.59 $12.99 $12.50
------ ------ ------ ------ ------ ------
Net investment income ................. 0.05@ 0.10 0.01 0.12@ 0.23 0.05
Net realized and unrealized gains
(losses) from investments ........... 0.41@ (0.40) 0.45 0.41@ (0.40) 0.44
------ ------ ------ ------ ------ ------
Net increase (decrease) from investment
operations .......................... 0.46 (0.30) 0.46 0.53 (0.17) 0.49
------ ------ ------ ------ ------ ------
Dividends from net investment income .. -- (0.08) -- -- (0.17) --
Distributions from net realized gains
from investment transactions ........ -- (0.06) -- -- (0.06) --
------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders ..................... -- (0.14) -- -- (0.23) --
------ ------ ------ ------ ------ ------
Net asset value, end of period ........ $12.98 $12.52 $12.96 $13.12 $12.59 $12.99
====== ====== ====== ====== ====== ======
Total investment return(1) ............ 3.67% (2.32)% 3.68% 4.21% (1.33)% 3.92%
====== ====== ====== ====== ====== ======
Ratios/Supplemental data:
Net assets, end of period (000's) ..... $1,593 $2,406 $2,048 $ 11 $ 10 $ 10
Expenses to average net assets,
net of waivers and reimbursements
from adviser and Underlying Funds ... 1.00%* 1.00% 1.00%* 0.00%* 0.00% 0.00%*
Expenses to average net assets,
before waivers and reimbursements
from adviser and Underlying Funds ... 4.82%* 5.29% 4.55%* 3.82%* 4.29% 3.76%*
Net investment income to average
net assets, net of waivers and
reimbursements from adviser
and Underlying Funds ................ 0.82%* 0.81% 0.69%* 1.86%* 1.86% 1.57%*
Net investment loss to average
net assets, before waivers and
reimbursements from adviser
and Underlying Funds ................ (3.00)%* (3.48)% (2.86)%* (1.95)%* (2.43)% (2.19)%*
Portfolio turnover rate ............... 62% 104% 6% 62% 104% 6%
</TABLE>
23
<PAGE>
MITCHELL HUTCHINS MODERATE PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
Class A Class B
---------------------------------------- -----------------------------------------
For the For the For the For the
Six Period Six Period
Months For the February 24, Months For the February 24,
Ended Year 1998+ Ended Year 1998+
November 30, Ended through November 30, Ended through
1999 May 31, May 31, 1999 May 31, May 31,
(unaudited) 1999 1998 (unaudited) 1999 1998
------------ -------- ----------- ------------ ------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $12.81 $12.93 $12.50 $12.77 $12.90 $12.50
------ ------ ------ ------ ------ ------
Net investment income .................... 0.17@ 0.31 0.06 0.12@ 0.21 0.04
Net realized and unrealized gains
(losses) from investments .............. 0.33@ (0.08) 0.37 0.33@ (0.07) 0.36
------ ------ ------ ------ ------ ------
Total increase from investment
transactions ........................... 0.50 0.23 0.43 0.45 0.14 0.40
------ ------ ------ ------ ------ ------
Dividends from net investment income ..... (0.15) (0.29) -- (0.10) (0.21) --
Distributions from net realized gains from
investment transactions ................ -- (0.06) -- -- (0.06) --
------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders ........................ (0.15) (0.35) -- (0.10) (0.27) --
------ ------ ------ ------ ------ ------
Net asset value, end of period ........... $13.16 $12.81 $12.93 $13.12 $12.77 $12.90
====== ====== ====== ====== ====== ======
Total investment return(1) ............... 3.98% 1.85% 3.44% 3.59% 1.14% 3.20%
====== ====== ====== ====== ====== ======
Ratios/Supplemental data:
Net assets, end of period (000's) ........ $1,431 $2,169 $1,676 $2,734 $6,532 $2,956
Expenses to average net assets,
net of waivers and reimbursements
from adviser and Underlying Funds ...... 0.25%* 0.25% 0.25%* 1.00%* 1.00% 1.00%*
Expenses to average net assets,
before waivers and reimbursements
from adviser and Underlying Funds ...... 2.51%* 2.66% 2.78%* 3.27%* 3.41% 3.57%*
Net investment income to average
net assets, net of waivers and
reimbursements from adviser
and Underlying Funds ................... 2.61%* 2.61% 2.63%* 1.85%* 1.86% 1.87%*
Net investment income (loss) to average
net assets, before waivers and
reimbursements from adviser
and Underlying Funds ................... 0.35%* 0.20% 0.10%* (0.42)%* (0.55)% (0.70)%*
Portfolio turnover rate .................. 70% 88% 13% 70% 88% 13%
</TABLE>
- ----------
+ Commencement of issuance of shares.
* Annualized.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
distributions, if any, at net asset value on the payable dates and a sale
at net asset value on the last day of each period reported. The figures do
not include sales charges or program fees; results would be lower if sales
charges or program fees were included. Total investment return for periods
of less than one year have not been annualized.
@ Calculated using the average daily shares outstanding for the period.
24
<PAGE>
<TABLE>
<CAPTION>
Class C Class Y
--------------------------------------- -----------------------------------------
For the For the For the For the
Six Period Six Period
Months For the February 24, Months For the February 24,
Ended Year 1998+ Ended Year 1998+
November 30, Ended through November 30, Ended through
1999 May 31, May 31, 1999 May 31, May 31,
(unaudited) 1999 1998 (unaudited) 1999 1998
------------ -------- ------------ ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $12.77 $12.90 $12.50 $12.82 $12.94 $12.50
------ ------ ------ ------ ------ ------
Net investment income .................... 0.12@ 0.21 0.04 0.19@ 0.36 0.09
Net realized and unrealized gains
(losses) from investments .............. 0.33@ (0.07) 0.36 0.32@ (0.10) 0.35
------ ------ ------ ------ ------ ------
Total increase from investment
transactions ........................... 0.45 0.14 0.40 0.51 0.26 0.44
------ ------ ------ ------ ------ ------
Dividends from net investment income ..... (0.11) (0.21) -- (0.17) (0.32) --
Distributions from net realized gains from
investment transactions ................ -- (0.06) -- -- (0.06) --
------ ------ ------ ------ ------ ------
Total dividends and distributions
to shareholders ........................ (0.11) (0.27) -- (0.17) (0.38) --
------ ------ ------ ------ ------ ------
Net asset value, end of period ........... $13.11 $12.77 $12.90 $13.16 $12.82 $12.94
====== ====== ====== ====== ====== ======
Total investment return(1) ............... 3.54% 1.11% 3.20% 4.03% 2.08% 3.52%
====== ====== ====== ====== ====== ======
Ratios/Supplemental data:
Net assets, end of period (000's) ........ $2,842 $5,758 $2,801 $ 13 $ 13 $ 12
Expenses to average net assets,
net of waivers and reimbursements
from adviser and Underlying Funds ...... 1.00%* 1.00% 1.00%* 0.00%* 0.00% 0.00%*
Expenses to average net assets,
before waivers and reimbursements
from adviser and Underlying Funds ...... 3.27%* 3.41% 3.29%* 2.27%* 2.41% 2.59%*
Net investment income to average
net assets, net of waivers and
reimbursements from adviser
and Underlying Funds ................... 1.85%* 1.85% 1.92%* 2.88%* 2.88% 2.76%*
Net investment income (loss) to average
net assets, before waivers and
reimbursements from adviser
and Underlying Funds ................... (0.42)%* (0.56)% (0.37)%* 0.61%* 0.47% 0.17%*
Portfolio turnover rate .................. 70% 88% 13% 70% 88 13%
</TABLE>
25
<PAGE>
MITCHELL HUTCHINS CONSERVATIVE PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
Class A Class B
------------------------------------------- ------------------------------------------
For the For the For the For the
Six Period Six Period
Months For the February 24, Months For the February 24,
Ended Year 1998+ Ended Year 1998+
November 30, Ended through November 30, Ended through
1999 May 31, May 31, 1999 May 31, May 31,
(unaudited) 1999 1998 (unaudited) 1999 1998
------------ -------- ----------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $ 12.97 $12.81 $12.50 $ 12.92 $12.79 $12.50
-------- ------ ------ -------- ------ ------
Net investment income .................... 0.29@ 0.52 0.10 0.24@ 0.40 0.07
Net realized and unrealized gains (losses)
from investments ....................... (0.10)@ 0.16 0.21 (0.09)@ 0.17 0.22
-------- ------ ------ -------- ------ ------
Net increase from investment
operations ............................. 0.19 0.68 0.31 0.15 0.57 0.29
-------- ------ ------ -------- ------ ------
Dividends from net investment income ..... (0.28) (0.47) -- (0.23) (0.39) --
Distributions from net realized gains
from investment transactions ........... -- (0.05) -- -- (0.05) --
-------- ------ ------ -------- ------ ------
Total dividends and distributions
to shareholders ........................ (0.28) (0.52) -- (0.23) (0.44) --
-------- ------ ------ -------- ------ ------
Net asset value, end of period ........... $ 12.88 $12.97 $12.81 $ 12.84 $12.92 $12.79
======== ====== ====== ======== ====== ======
Total investment return(1) ............... 1.50% 5.38% 2.48% 1.18% 4.51% 2.32%
======== ====== ====== ======== ====== ======
Ratios/Supplemental data:
Net assets, end of period (000's) ........ $ 495 $ 717 $ 519 $ 1,776 $3,189 $1,667
Expenses to average net assets,
net of waivers and reimbursements
from adviser and Underlying Funds ...... 0.25%* 0.25% 0.25%* 1.00%* 1.00% 1.00%*
Expenses to average net assets,
before waivers and reimbursements
from adviser and Underlying Funds ...... 5.72%* 6.05% 6.43%* 6.48%* 6.80% 7.13%*
Net investment income to average
net assets, net of waivers and
reimbursements from adviser
and Underlying Funds ................... 4.43%* 4.11% 4.66%* 3.67%* 3.37% 3.92%*
Net investment loss to average
net assets, before waivers and
reimbursements from adviser
and Underlying Funds ................... (1.04)%* (1.69)% (1.52)%* (1.81)%* (2.43)% (2.21)%*
Portfolio turnover rate .................. 89% 83% 11% 89% 83% 11%
</TABLE>
- ----------
+ Commencement of issuance of shares.
* Annualized.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
distributions, if any, at net asset value on the payable dates and a sale
at net asset value on the last day of each period reported. The figures do
not include sales charges or program fees; results would be lower if sales
charges or program fees were included. Total investment return for periods
of less than one year have not been annualized.
@ Calculated using the average daily shares outstanding for the period.
26
<PAGE>
<TABLE>
<CAPTION>
Class C Class Y
------------------------------------------ -----------------------------------------
For the For the For the For the
Six Period Six Period
Months For the February 24, Months For the February 24,
Ended Year 1998+ Ended Year 1998+
November 30, Ended through November 30, Ended through
1999 May 31, May 31, 1999 May 31, May 31,
(unaudited) 1999 1998 (unaudited) 1999 1998
------------ -------- ------------ ------------ -------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $ 12.94 $ 12.80 $ 12.50 $ 12.98 $ 12.82 $ 12.50
------- ------- ------- ------- ------- -------
Net investment income .................... 0.25@ 0.44 0.08 0.30@ 0.56 0.16
Net realized and unrealized gains (losses)
from investments ....................... (0.09)@ 0.17 0.22 (0.09)@ 0.15 0.16
------- ------- ------- ------- ------- -------
Net increase from investment
operations ............................. 0.16 0.61 0.30 0.21 0.71 0.32
------- ------- ------- ------- ------- -------
Dividends from net investment income ..... (0.24) (0.42) -- (0.30) (0.50) --
Distributions from net realized gains
from investment transactions ........... -- (0.05) -- -- (0.05) --
------- ------- ------- ------- ------- -------
Total dividends and distributions
to shareholders ........................ (0.24) (0.47) -- (0.30) (0.55) --
------- ------- ------- ------- ------- -------
Net asset value, end of period ........... $ 12.86 $ 12.94 $ 12.80 $ 12.89 $ 12.98 $ 12.82
======= ======= ======= ======= ======= =======
Total investment return(1) ............... 1.30% 4.77% 2.40% 1.55% 5.61% 2.56%
======= ======= ======= ======= ======= =======
Ratios/Supplemental data:
Net assets, end of period (000's) ........ $ 386 $ 823 $ 485 $ 6 $ 5 $ 5
Expenses to average net assets,
net of waivers and reimbursements
from adviser and Underlying Funds ...... 0.75%* 0.75% 0.75%* 0.00%* 0.00% 0.00%*
Expenses to average net assets,
before waivers and reimbursements
from adviser and Underlying Funds ...... 6.23%* 6.55% 6.99%* 5.46%* 5.80% 6.19%*
Net investment income to average
net assets, net of waivers and
reimbursements from adviser
and Underlying Funds ................... 3.92%* 3.63% 4.23%* 4.63%* 4.40% 4.75%*
Net investment loss to average
net assets, before waivers and
reimbursements from adviser
and Underlying Funds ................... (1.56)%* (2.17)% (2.00)%* (0.83)%* (1.40)% (1.43)%*
Portfolio turnover rate .................. 89% 83% 11% 89% 83% 11%
</TABLE>
27
<PAGE>
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<PAGE>
[This Page Intentionally Left Blank]
<PAGE>
- --------------------------------------------------------------------------------
TRUSTEES
E. Garrett Bewkes, Jr. Meyer Feldberg
Chairman George W. Gowen
Margo N. Alexander Frederic V. Malek
Richard Q. Armstrong Carl W. Schafer
Richard R. Burt Brian M. Storms
Mary C. Farrell
PRINCIPAL OFFICERS
Margo N. Alexander T. Kirkham Barneby
President Vice President
Victoria E. Schonfeld Dennis McCauley
Vice President Vice President
Dianne E. O'Donnell Mark A. Tincher
Vice President and Secretary Vice President
Paul H. Schubert
Vice President and Treasurer
INVESTMENT ADVISER,
ADMINISTRATOR AND DISTRIBUTOR
Mitchell Hutchins Asset Management Inc.
51 West 52nd Street
New York, New York 10019
The financial information included herein is taken from the records of the
Portfolios without examination by independent auditors who do not express an
opinion thereof.
A prospectus containing more complete information for any of the funds listed on
the back cover can be obtained from a PaineWebber Financial Advisor or
corresponding firm. Read the prospectus carefully before investing.
<PAGE>
======
PaineWebber offers a family of 28 funds which encompass a diversified range of
investment goals.
BOND FUNDS
o High Income Fund
o Investment Grade Income Fund
o Low Duration U.S. Government Income Fund
o Strategic Income Fund
o U.S. Government Income Fund
TAX-FREE BOND FUNDS
o California Tax-Free Income Fund
o Municipal High Income Fund
o National Tax-Free Income Fund
o New York Tax-Free Income Fund
STOCK FUNDS
o Financial Services Growth Fund
o Growth Fund
o Growth and Income Fund
o Mid Cap Fund
o Small Cap Fund
o S&P 500 Index Fund
o Strategy Fund
o Tax-Managed Equity Fund
o Utility Income Fund
ASSET ALLOCATION FUNDS
o Balanced Fund
o Tactical Allocation Fund
GLOBAL FUNDS
o Asia Pacific Growth Fund
o Emerging Markets Equity Fund
o Global Equity Fund
o Global Income Fund
MITCHELL HUTCHINS PORTFOLIOS
o Aggressive Portfolio
o Moderate Portfolio
o Conservative Portfolio
PAINEWEBBER MONEY MARKET FUND
PaineWebber
(Copyright)2000 PaineWebber Incorporated
Member SIPC
All rights reserved
