<PAGE>
PAINEWEBBER CASHFUND, INC. SEMIANNUAL REPORT
Dear Shareholder, November 15, 1999
We are pleased to present you with the semiannual report for the PaineWebber
Cashfund, Inc. (the "Fund") for the six-month period ended September 30, 1999.
MARKET REVIEW
- --------------------------------------------------------------------------------
[GRAPHIC]
During the six-month period, fears of higher inflation became the dominant theme
of the fixed income markets, and bond yields rose in response. Interest rates
rose as the markets reacted to improving economic prospects in Asia and Latin
America, rapidly growing U.S. demand, higher oil prices and fears that future
wage increases might not be offset by commodity deflation. By the end of the
semiannual period on September 30, 1999, the Federal Reserve had raised the
federal funds rate twice, by 0.25% each time, to 5.25%.
PORTFOLIO REVIEW
- --------------------------------------------------------------------------------
PERFORMANCE AND CHARACTERISTICS
<TABLE>
<CAPTION>
9/30/99 3/31/99
- --------------------------------------------------------------------------------
<S> <C> <C>
Seven-Day Yield(+) 4.79% 4.39%
Weighted Average Maturity 48 days 51 days
Total Net Assets $5.7 billion $6.1 billion
- --------------------------------------------------------------------------------
</TABLE>
(+) Yields will fluctuate
HIGHLIGHTS
We remained slightly bullish on the fixed income markets during the first
part of the period, expecting interest rates to remain unchanged. Since we did
not expect major changes in rates, we kept the Fund's weighted average maturity
slightly longer than the average of its peer group. During the last three months
of the period, we returned the Fund's maturity to the average of its peer group
in anticipation of rising interest rates. We maintained our focus on top-tier
credit quality instruments. Y2K remains a major focus for portfolio investments
as issuer supply dwindles toward year-end.
Sector Allocation*
<TABLE>
<CAPTION>
As of 9/30/99 As of 3/31/99
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Commercial Paper 64.5% Commercial Paper 56.1%
U.S. Gov't & Agency 24.5% U.S. Gov't & Agency 26.6%
Bank Notes 5.9% Short-Term Corporate 6.8%
Mutual Funds 3.1% Bank Notes 6.3%
Short-Term Corporate 1.1% Certificates of Deposit 3.9%
Certificates of Deposit 0.9% Repurchase Agreements 0.3%
- -------------------------------------------------------------------------------------------
Total 100.0% Total 100.0%
</TABLE>
* Weightings represent percentages of portfolio assets as of the dates
indicated. The Fund's portfolio is actively managed and its composition
will vary over time.
[SIDENOTE:]
PAINEWEBBER CASHFUND, INC.
PROFILE
as of September 30, 1999
INVESTMENT GOAL:
Principal stability and current
income
PORTFOLIO MANAGER:
Susan P. Ryan, Mitchell Hutchins
Asset Management Inc.
COMMENCEMENT:
January 20, 1978
DIVIDEND PAYMENTS:
Monthly
1
<PAGE>
SEMIANNUAL REPORT
OUTLOOK
- --------------------------------------------------------------------------------
We are closely monitoring the market as Y2K approaches. It is likely
that issues of new short-term debt will decrease toward year-end, limiting
supplies and potentially triggering price increases. Also, investors might
seek safety by reducing their exposure to corporate credits and increasing
their positions in U.S. government securities, precipitating a "flight to
quality." To provide sufficient liquidity at year-end, we expect to maintain
a position of about 20% in U.S. Government securities. However, this planned
defensive posture may change in response to changing market circumstances as
Y2K approaches.
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 of a 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 President and
Chief Executive Officer Chief Operating Officer
Mitchell Hutchins Mitchell Hutchins
Asset Management Inc. Asset Management Inc.
/s/ Dennis L. McCauley /s/ Susan P. Ryan
- ---------------------- -----------------
DENNIS L. McCAULEY SUSAN P. RYAN
Managing Director and Senior Vice President
Chief Investment Officer - Mitchell Hutchins
Fixed Income Asset Management Inc.
Mitchell Hutchins
Asset Management Inc.
This letter is intended to assist shareholders in understanding how the Fund
performed during the six-month period ended September 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.
2
<PAGE>
PAINEWEBBER CASHFUND, INC.
STATEMENT OF NET ASSETS SEPTEMBER 30, 1999(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- ---------------------- ----------------------- --------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--24.63%
$ 280,000 U.S. Treasury Bills................................... 10/14/99 to 07/20/00 3.850 to 4.870%@ $ 276,502,528
50,000 U.S. Treasury Notes................................... 01/31/00 5.375 50,015,886
15,000 Federal Farm Credit Bank.............................. 02/01/00 4.800 14,997,675
211,000 Federal Home Loan Bank................................ 10/28/99 to 06/02/00 5.000 to 5.625 211,032,476
173,000 Federal Home Loan Bank................................ 10/01/99 to 10/05/99 5.286 to 5.366* 172,966,078
130,000 Federal Home Loan Mortgage Association................ 12/10/99 to 02/04/00 5.110 to 5.510@ 127,959,789
40,000 Federal Home Loan Mortgage Corporation................ 10/05/99 5.356* 40,008,521
189,000 Federal National Mortgage Association................. 12/13/99 to 04/28/00 4.550 to 5.470 186,489,088
30,000 Federal National Mortgage Association................. 11/09/99 5.120* 29,987,172
295,350 Student Loan Marketing Association.................... 10/01/99 to 10/05/99 5.136 to 5.556* 295,297,140
--------------
Total U.S. Government and Agency Obligations
(cost--$1,405,256,353)......................................... 1,405,256,353
--------------
DOMESTIC BANK NOTES--5.95%
20,000 Comerica Bank N.A., Detroit........................... 10/04/99 5.255* 19,998,000
17,000 FCC National Bank..................................... 02/16/00 5.058 16,998,296
88,600 First Tennessee Bank N.A. Memphis..................... 01/14/00 to 03/08/00 5.100 to 5.280 88,595,966
65,000 First Tennessee Bank N.A. Memphis..................... 10/05/99 5.376 to 5.416* 65,000,000
73,000 Key Bank N.A.......................................... 04/25/00 to 06/26/00 5.650 to 5.750 73,040,260
50,000 LaSalle National Bank................................. 02/07/00 to 07/17/00 5.010 to 5.650 49,989,633
26,000 Nationsbank N.A....................................... 01/11/00 to 06/01/00 5.000 to 5.390 25,987,381
--------------
Total Domestic Bank Notes (cost--$339,609,536)................... 339,609,536
--------------
DOMESTIC CERTIFICATES OF DEPOSIT--0.88%
25,000 First Tennessee Bank N.A. Memphis..................... 03/06/00 5.280 25,000,000
25,000 Harris Trust & Savings Bank........................... 02/01/00 5.000 24,997,565
--------------
Total Domestic Certificates of Deposit (cost--$49,997,565)....... 49,997,565
--------------
COMMERCIAL [email protected]%
ASSET BACKED-BANKING--2.32%
135,000 Atlantis One Funding Corporation...................... 01/18/00 to 02/10/00 5.420 to 5.870 132,420,939
--------------
ASSET BACKED-FINANCE--0.23%
13,000 Beta Finance Incorporated............................. 10/25/99 4.820 12,958,227
--------------
ASSET BACKED-MISCELLANEOUS--14.37%
65,000 Asset Securitization Cooperative Corporation.......... 10/20/99 to 01/26/00 5.150 to 5.420 64,227,449
50,000 Asset Securitization Cooperative Corporation.......... 10/15/99 5.430* 50,000,000
5,022 Delaware Funding Corporation.......................... 10/26/99 5.370 5,003,272
85,573 Enterprise Funding Corporation........................ 10/06/99 to 10/27/99 5.160 to 5.350 85,363,914
130,380 Falcon Asset Securitization Corporation............... 10/08/99 to 01/27/00 5.170 to 5.900 129,805,124
40,752 Parthenon Receivables Funding LLC..................... 10/04/99 to 10/13/99 5.330 to 5.370 40,696,216
102,445 Preferred Receivables Funding Corporation............. 10/19/99 to 11/12/99 5.330 to 5.400 102,064,289
113,999 Quincy Capital Corporation............................ 10/06/99 to 10/25/99 5.170 to 5.350 113,768,871
12,026 Receivables Capital Corporation....................... 10/20/99 5.330 11,992,170
133,815 Triple-A One Funding.................................. 10/08/99 to 10/28/99 5.350 to 5.360 133,539,394
85,000 Variable Funding Capital Corporation.................. 01/10/00 to 01/19/00 5.780 to 5.870 83,552,312
--------------
820,013,011
--------------
</TABLE>
3
<PAGE>
PAINEWEBBER CASHFUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- ---------------------- ----------------------- --------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER@--(CONTINUED)
AUTO & TRUCK--6.69%
$ 53,000 BMW US Capital Incorporated........................... 10/20/99 to 10/21/99 5.280% $ 52,848,640
140,000 Daimler Chrysler N.A. Holding Corporation............. 10/15/99 to 10/25/99 5.170 to 5.320 139,564,911
130,000 Ford Motor Credit Corporation......................... 10/07/99 to 10/26/99 5.290 to 5.300 129,745,653
25,000 General Motors Acceptance Corporation................. 10/25/99 5.300 24,911,667
35,000 PACCAR Financial Corporation.......................... 12/20/99 5.320 34,586,222
--------------
381,657,093
--------------
BANKING--DOMESTIC 10.12%
50,000 ABN Amro North America Finance Incorporated........... 10/18/99 5.300 49,874,861
21,750 B.B.V. Finance (Delaware) Incorporated................ 10/18/99 5.310 21,695,462
45,000 BCI Funding Corporation............................... 10/04/99 to 10/12/99 5.300 44,944,792
25,000 Cariplo Finance Incorporated.......................... 10/07/99 5.300 24,977,917
95,000 Den Danske Corporation................................ 10/14/99 to 12/22/99 5.300 to 5.340 94,254,461
160,000 Fortis Funding LLC.................................... 10/25/99 to 12/28/99 5.330 to 5.400 158,475,133
89,000 Santander Finance (Delaware) Incorporated............. 10/13/99 to 12/16/99 5.300 to 5.375 88,473,569
65,000 Societe Generale North America, Incorporated.......... 10/28/99 5.290 64,742,113
30,000 Westpac Capital Corporation........................... 10/05/99 4.820 29,983,933
--------------
577,422,241
--------------
BROKER-DEALER--2.71%
40,000 Goldman Sachs Group Incorporated...................... 10/14/99 5.160 39,925,467
115,000 Morgan Stanley Dean Witter & Company.................. 10/01/99 5.460 to 5.560 115,000,000
--------------
154,925,467
--------------
BUSINESS SERVICES--1.31%
75,000 Electronic Data Systems............................... 10/06/99 to 10/07/99 5.290 to 5.300 74,941,153
--------------
CHEMICALS--0.37%
21,000 Henkel Corporation.................................... 10/13/99 5.270 20,963,110
--------------
CONSUMER PRODUCTS--1.47%
10,000 Clorox Company........................................ 10/18/99 5.280 9,975,067
74,200 Colgate Palmolive..................................... 10/13/99 to 10/14/99 5.280 74,063,996
--------------
84,039,063
--------------
DRUGS, HEALTH CARE--2.36%
43,210 American Home Products................................ 10/18/99 to 10/19/99 5.280 to 5.300 43,099,130
25,000 Glaxo Wellcome Incorporated........................... 10/21/99 5.280 24,926,666
66,750 Pfizer Incorporated................................... 10/08/99 to 10/19/99 5.270 to 5.280 66,614,162
--------------
134,639,958
--------------
ENERGY--1.57%
90,000 Exxon Imperial U.S. Incorporated...................... 10/12/99 to 10/19/99 5.280 89,829,133
--------------
FINANCE-AIRCRAFT--0.32%
18,052 International Lease Financing......................... 10/06/99 5.270 18,038,787
--------------
</TABLE>
4
<PAGE>
PAINEWEBBER CASHFUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- ---------------------- ----------------------- --------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER@--(CONTINUED)
FINANCE-CONDUIT--4.84%
$ 30,000 ANZ (Delaware) Incorporated........................... 12/21/99 5.325% $ 29,640,562
194,182 MetLife Funding Incorporated.......................... 10/07/99 to 10/22/99 5.280 to 5.290 193,804,665
28,000 Svenska Handelsbanken Incorporated.................... 10/15/99 5.160 27,943,813
25,000 UBS Finance (Delaware) LLC............................ 12/23/99 4.820 24,722,181
--------------
276,111,221
--------------
FINANCE-CONSUMER--0.44%
25,000 American General Finance Corporation.................. 10/20/99 5.310 24,929,938
--------------
FINANCE-DIVERSIFIED--1.78%
50,000 Associates Corporation of North America............... 10/20/99 5.300 49,860,139
51,750 Barclays U.S. Funding Corporation..................... 10/14/99 to 10/20/99 5.280 51,629,330
--------------
101,489,469
--------------
FINANCE-SUBSIDIARY--2.45%
110,000 Deutsche Bank Financial Incorporated.................. 10/12/99 to 10/26/99 5.300 109,749,722
30,000 Dresdner U.S. Finance................................. 10/20/99 5.300 29,916,084
--------------
139,665,806
--------------
FOOD & BEVERAGE--0.96%
20,000 Anheuser Busch Companies Incorporated................. 10/16/99 5.281* 19,991,621
35,000 General Mills Incorporated............................ 10/05/99 5.280 34,979,467
--------------
54,971,088
--------------
INSURANCE--1.99%
20,000 Prudential Funding Corporation........................ 10/07/99 5.310 19,982,300
10,000 St. Paul Companies Incorporated....................... 10/19/99 5.280 9,973,600
25,000 Teachers Insurance & Annuity Association of America... 10/08/99 5.320 24,974,139
58,639 USAA Capital Corporation.............................. 10/14/99 to 10/26/99 5.280 58,470,806
--------------
113,400,845
--------------
INSURANCE-PROPERTY/CASUALTY--0.84%
48,000 AIG Funding Incorporated.............................. 10/05/99 5.270 47,971,893
--------------
MANUFACTURING-DIVERSIFIED--0.44%
25,000 Minnesota Mining & Manufacturing...................... 10/20/99 5.270 24,930,465
--------------
METALS & MINING--1.45%
82,800 Rio Tinto America Incorporation....................... 10/18/99 to 10/25/99 5.300 to 5.320 82,569,446
--------------
OIL EQUIPMENT & SERVICES--0.48%
27,600 Colonial Pipeline Company............................. 10/21/99 5.300 27,518,733
--------------
PAPER & FOREST PRODUCTS--0.40%
23,000 Weyerhauser Real Estate Company....................... 10/08/99 5.280 22,976,387
--------------
</TABLE>
5
<PAGE>
PAINEWEBBER CASHFUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- ---------------------- ----------------------- --------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER@--(CONCLUDED)
PRINTING & PUBLISHING--0.87%
$ 25,000 Gannett Company....................................... 10/07/99 5.270% $ 24,978,042
25,000 Reed Elsevier (USA) Incorporated...................... 10/21/99 5.300 24,926,389
--------------
49,904,431
--------------
RETAIL-MERCHANDISE--2.24%
128,332 Wal Mart Stores Incorporated.......................... 10/05/99 to 10/26/99 5.280 to 5.300 127,937,242
--------------
TELECOMMUNICATIONS--0.79%
20,000 Bell Atlantic Network Funding Corporation............. 10/26/99 5.300 19,926,389
25,000 Lucent Technology Incorporated........................ 10/06/99 5.270 24,981,701
--------------
44,908,090
--------------
TRANSPORTATION--0.44%
25,000 United Parcel Service................................. 10/06/99 5.270 24,981,701
--------------
UTILITY-ELECTRIC--0.70%
40,000 Southern Company...................................... 10/13/99 5.320 39,929,067
--------------
Total Commercial Paper (cost--$3,706,044,004).................... 3,706,044,004
--------------
SHORT-TERM CORPORATE OBLIGATIONS--1.11%
BANKING--DOMESTIC 0.44%
25,000 Banc One Corporation.................................. 10/01/99 5.251* 25,000,000
--------------
FINANCE-DIVERSIFIED--0.67%
38,000 Associates Corporation of North America............... 10/29/99 5.309* 37,982,999
--------------
Total Short-Term Corporate Obligations (cost--$62,982,999)....... 62,982,999
--------------
MONEY MARKET FUNDS--3.17%
180,894 Aim Liquid Assets Portfolio (cost--$180,893,757)...... 10/01/99 5.440 180,893,757
--------------
Total Investments (cost--$5,744,784,214 which approximates cost
for federal income tax purposes)--100.69%...................... 5,744,784,214
Liabilities in excess of other assets --(0.69)%.................. (39,118,336)
--------------
Net Assets (applicable to 5,706,599,677 shares outstanding
at $1.00 per share)--100.00%................................... $5,705,665,878
==============
</TABLE>
- ---------------
* Variable rate securities--maturity date reflects earlier of reset date or
maturity date. The interest rates shown are the current rates as of
September 30, 1999 and reset periodically.
@ Interest rates shown are discount rates at date of purchase.
Weighted Average Maturity--48 Days
See accompanying notes to financial statements
6
<PAGE>
PAINEWEBBER CASHFUND, INC.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED
SEPTEMBER 30, 1999
(UNAUDITED)
-------------------
<S> <C>
Interest income............................................. $ 151,476,428
-------------
EXPENSES:
Investment advisory and administration...................... 10,555,138
Transfer agency and related services fees................... 4,483,264
Reports and notices to shareholders......................... 489,594
Custody and accounting...................................... 302,096
Legal and audit............................................. 177,558
Insurance................................................... 67,402
Federal and state registration.............................. 28,153
Directors' fees............................................. 5,250
Other expenses.............................................. 5,428
-------------
16,113,883
-------------
NET INVESTMENT INCOME....................................... 135,362,545
NET REALIZED GAIN FROM INVESTMENT TRANSACTIONS.............. 42,430
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $ 135,404,975
=============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR
SEPTEMBER 30, 1999 ENDED
(UNAUDITED) MARCH 31, 1999
------------------ ---------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income....................................... $ 135,362,545 $ 285,091,504
Net realized gains from investment transactions............. 42,430 401,710
--------------- ---------------
Net increase in net assets resulting from operations........ 135,404,975 285,493,214
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income....................................... (135,362,545) (285,091,504)
--------------- ---------------
Net increase (decrease) in net assets derived from capital
share transactions........................................ (406,935,452) 428,894,939
--------------- ---------------
Net increase (decrease) in net assets....................... (406,893,022) 429,296,649
NET ASSETS:
Beginning of period......................................... 6,112,558,900 5,683,262,251
--------------- ---------------
End of period............................................... $ 5,705,665,878 $ 6,112,558,900
=============== ===============
</TABLE>
See accompanying notes to financial statements
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber Cashfund, Inc. (the "Fund"), was organized under the laws of
Maryland on January 20, 1978 and is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, as amended, as an open-end
diversified management investment company.
The preparation of financial statements in accordance with generally accepted
accounting principles requires Fund 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 AND ACCOUNTING FOR INVESTMENTS--Investments are valued at amortized
cost which approximates market value. Investment transactions are accounted for
on the trade date. Realized gains and losses from investment transactions are
calculated using the identified cost method. Interest income is recorded on an
accrual basis. Premiums are amortized and discounts are accreted as adjustments
to interest income and the identified cost of investments.
REPURCHASE AGREEMENTS--The Fund's custodian takes possession of the collateral
pledged for investments in repurchase agreements. The underlying collateral is
valued daily on a mark-to-market basis to ensure that the value, including
accrued interest, is at least equal to the repurchase price. In the event of
default of the obligation to repurchase, the Fund has the right to liquidate the
collateral and apply the proceeds in satisfaction of the obligation. Under
certain circumstances, in the event of default or bankruptcy by the other party
to the agreement, realization and/or retention of the collateral may be subject
to legal proceedings. The Fund occasionally participates in joint repurchase
agreement transactions with other funds managed by Mitchell Hutchins.
DIVIDENDS AND DISTRIBUTIONS--Dividends and distributions to shareholders are
recorded on the ex-dividend date. The amount of dividends and distributions is
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 amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification.
CONCENTRATION OF RISK
The ability of the issuers of the debt securities held by the Fund to meet
their obligations may be affected by economic developments, including those
particular to a specific industry or region.
INVESTMENT ADVISER AND ADMINISTRATOR
The Fund's Board of Directors has approved an investment advisory and
administration contract ("Advisory Contract") with PaineWebber Incorporated
("PaineWebber"), under which PaineWebber serves as investment adviser and
administrator of the Fund. In accordance with the Advisory Contract, PaineWebber
receives compensation from the Fund, computed daily and paid monthly equivalent
to 0.500% per annum of the Fund's first $500 million of average daily net
assets; 0.425% of the next $500 million; 0.390% of the next $500 million; 0.380%
of the next $500 million; 0.350% of the next $500 million; 0.345% of the next
$1.0 billion; 0.325% of the next $500 million; 0.315% of the next $500 million;
0.300% of the next $500 million; 0.290% of the next $500 million; and 0.280% of
average daily net assets in excess of $5.5 billion. At September 30, 1999, the
Fund owed PaineWebber $1,697,585 in investment advisory and administration fees.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Mitchell Hutchins Asset Management Inc. ("Mitchell Hutchins"), a wholly owned
asset management subsidiary of PaineWebber, serves as sub-adviser to the Fund
pursuant to a Sub-Advisory Contract between PaineWebber and Mitchell Hutchins.
In accordance with the sub-advisory contract, PaineWebber (not the Fund) pays
Mitchell Hutchins for sub-advisory services provided.
TRANSFER AGENCY RELATED SERVICE FEES
PaineWebber provides transfer agency related services to the Fund pursuant to
a delegation of authority from PFPC Inc., the Fund's transfer agent, and is
compensated for these services by PFPC Inc., not the Fund. For the year ended
March 31, 1999, PaineWebber received from PFPC Inc., not the Fund, approximately
56% of the total transfer agency and related service fees collected by PFPC Inc.
from the Fund.
OTHER LIABILITIES
At September 30, 1999, the amounts payable for investments purchased and
dividends payable aggregated $49,777,815 and $7,481,541, respectively.
FEDERAL TAX STATUS
The Fund intends to distribute all of its taxable income and to comply with
the other requirements of the Internal Revenue Code applicable to regulated
investment companies. Accordingly, no provision for federal income taxes is
required. In addition, by distributing during each calendar year substantially
all of its net investment income, capital gains and certain other amounts, if
any, the Fund intends not to be subject to federal excise tax.
At March 31, 1999, the Fund had a net capital loss carryforward of $804,959.
This loss carryforward is available as a reduction, to the extent provided in
the regulations, of any future net realized gains, and will expire by March 31,
2003. To the extent that such losses are used to offset future capital gains, it
is probable that the gains so offset will not be distributed.
CAPITAL SHARE TRANSACTIONS
There are 20 billion shares of $0.001 par value authorized shares of common
stock. Transactions in capital shares, at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR
SEPTEMBER 30, 1999 ENDED
(UNAUDITED) MARCH 31, 1999
------------------ ---------------
<S> <C> <C>
Shares sold................................................. 10,677,248,464 21,758,169,027
Shares repurchased.......................................... (11,214,861,925) (21,606,489,535)
Dividends reinvested........................................ 130,678,009 277,215,447
--------------- ---------------
Net increase (decrease) in shares outstanding............... (406,935,452) 428,894,939
=============== ===============
</TABLE>
9
<PAGE>
PAINEWEBBER CASHFUND, INC.
FINANCIAL HIGHLIGHTS
Selected data for a share of common stock outstanding throughout each period is
presented below:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEARS ENDED MARCH 31,
SEPTEMBER 30, 1999 -------------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- ----------- -----------
Net investment income............. 0.0225 0.0487 0.0511 0.0482 0.0523 0.0433
Dividends from net investment
income.......................... (0.0225) (0.0487) (0.0511) (0.0482) (0.0523) (0.0433)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== =========== ===========
Total investment return(1)........ 2.29% 4.98% 5.23% 4.93% 5.36% 4.44%
=========== =========== =========== =========== =========== ===========
Ratios/Supplemental Data:
Net assets, end of period
(000's)......................... $ 5,705,666 $ 6,112,559 $ 5,683,262 $ 5,260,468 $ 5,308,558 $ 3,700,678
Expenses to average net assets.... 0.54%* 0.52% 0.56% 0.63% 0.60% 0.62%
Net investment income to average
net assets...................... 4.53%* 4.86% 5.11% 4.82% 5.24% 4.35%
</TABLE>
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* Annualized.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each year reported, reinvestment of all dividends at net asset
value on the payable dates and a sale at net asset value on the last day of
each year reported. Total investment return is not annualized for period of
less than a year.
10
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DIRECTORS
E. Garrett Bewkes, Jr. Meyer Feldberg
CHAIRMAN
Margo N. Alexander George W. Gowen
Richard Q. Armstrong Frederic V. Malek
Richard R. Burt Carl W. Schafer
Mary C. Farrell Brian M. Storms
PRINCIPAL OFFICERS
Margo N. Alexander Paul H. Schubert
PRESIDENT VICE PRESIDENT AND TREASURER
Victoria E. Schonfeld Dennis L. McCauley
VICE PRESIDENT VICE PRESIDENT
Dianne E. O'Donnell Susan P. Ryan
VICE PRESIDENT AND SECRETARY VICE PRESIDENT
ADMINISTRATOR AND DISTRIBUTOR
PaineWebber Incorporated
1285 Avenue of the Americas
New York, New York 10019
INVESTMENT ADVISERS
PaineWebber Incorporated
1285 Avenue of the Americas
New York, New York 10019
Mitchell Hutchins Asset Management Inc.
51 West 52nd Street
New York, New York 10019
THIS REPORT IS NOT TO BE USED IN CONNECTION WITH THE OFFERING OF SHARES OF
THE FUND UNLESS ACCOMPANIED OR PRECEDED BY AN EFFECTIVE PROSPECTUS.
THE FINANCIAL INFORMATION INCLUDED HEREIN IS TAKEN FROM THE RECORDS OF THE FUND
WITHOUT EXAMINATION BY INDEPENDENT AUDITORS WHO DO NOT EXPRESS AN OPINION
THEREON.
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PAINEWEBBER
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CASHFUND, INC.
SEMIANNUAL REPORT
SEPTEMBER 30, 1999
PAINEWEBBER
-C-1999 PaineWebber Incorporated
Member SIPC
All rights reserved.
