<PAGE>
ATLAS GLOBAL GROWTH FUND
PAINEWEBBER
RECENT PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN/1/
-------------------------- -----------------------------
12 MONTHS 6 MONTHS
02/28/95 08/31/94 02/28/94 ENDED 02/28/95 ENDED 02/28/95
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $13.24 $16.33 $17.06 -19.96% -16.40%
- ------------------------------------------------------------------------
Class B Shares 12.92 16.01 16.80 -20.65 -16.68
- ------------------------------------------------------------------------
Class D Shares 13.00 16.10 16.89 -20.60 -16.70
- ------------------------------------------------------------------------
</TABLE>
Performance Summary Class A Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
12/30/83 - 12/31/84 $ 9.15 $ 8.47 -- $0.1825 -5.39%
- -----------------------------------------------------------------------------
1985 8.47 13.90 -- 0.1125 65.65
- -----------------------------------------------------------------------------
1986 13.90 15.95 $3.0402 0.0911 39.09
- -----------------------------------------------------------------------------
1987 15.95 12.85 3.7770 0.1914 6.60
- -----------------------------------------------------------------------------
1988 12.85 14.46 0.4815 0.4397 19.88
- -----------------------------------------------------------------------------
1989 14.46 15.50 1.6676 0.1138 19.96
- -----------------------------------------------------------------------------
1990 15.50 12.92 1.0440 0.3972 -7.60
- -----------------------------------------------------------------------------
1991 12.92 13.93 -- 0.1982 9.38
- -----------------------------------------------------------------------------
1992 13.93 12.72 -- -- -8.69
- -----------------------------------------------------------------------------
1993 12.72 17.34 0.5560 0.1649 42.12
- -----------------------------------------------------------------------------
1994 17.34 14.68 0.4487 -- -12.71
- -----------------------------------------------------------------------------
01/01/95 - 02/28/95 14.68 13.24 -- -- -9.81
- -----------------------------------------------------------------------------
Total: $11.0150 $1.8913
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
02/28/95: 245.05%
- -----------------------------------------------------------------------------
</TABLE>
Performance Summary Class B Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/01/91 - 12/31/91 $13.09 $13.91 -- $0.1659 7.55%
- -----------------------------------------------------------------------------
1992 13.91 12.61 -- -- -9.35
- -----------------------------------------------------------------------------
1993 12.61 17.09 $ 0.5560 0.1245 41.05
- -----------------------------------------------------------------------------
1994 17.09 14.34 0.4487 -- -13.42
- -----------------------------------------------------------------------------
01/01/95 - 02/28/95 14.34 12.92 -- -- -9.90
- -----------------------------------------------------------------------------
Total: $ 1.0047 $0.2904
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
02/28/95: 7.28%
- -----------------------------------------------------------------------------
</TABLE>
Performance Summary Class D Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/02/92 - 12/31/92 $13.51 $12.68 -- $ -- -6.14%
- -----------------------------------------------------------------------------
1993 12.68 17.18 $ 0.5560 0.1313 41.03
- -----------------------------------------------------------------------------
1994 17.18 14.43 0.4487 -- -13.35
- -----------------------------------------------------------------------------
01/01/95 - 02/28/95 14.43 13.00 -- -- -9.91
- -----------------------------------------------------------------------------
Total: $ 1.0047 $0.1313
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
02/28/95: 3.33%
- -----------------------------------------------------------------------------
</TABLE>
1
<PAGE>
ATLAS GLOBAL GROWTH FUND
PAINEWEBBER
RECENT PERFORMANCE RESULTS (UNAUDITED) (CONTINUED)
Average Annual Return
<TABLE>
<CAPTION>
% RETURN AFTER
% RETURN WITHOUT SALES DEDUCTING
CHARGE MAXIMUM SALES CHARGE
--------------------------- ----------------------------
CLASS CLASS
--------------------------- ----------------------------
A B D*** A* B** D
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Twelve Months
Ended 03/31/95 -11.97% -12.63% -12.63% -15.91% -17.63% -12.63%
- -------------------------------------------------------------------------------
Five Years
Ended 03/31/95 2.10 N/A N/A 1.17 N/A N/A
- -------------------------------------------------------------------------------
Commencement of
Operations+ Ended
03/31/95 11.68 2.02 1.37 --11.23 1.51 1.37
- -------------------------------------------------------------------------------
</TABLE>
/1Figures/assume reinvestment of all dividends and capital gains
distributions at net asset value on the payable, and do not include sales
charges; results would be lower if sales charge was included.
* Maximum sales charge for Class A shares is 4.5% of the public offering
price. Class A shares bear ongoing 12b-1 services fees.
** Maximum contingent deferred sales charge for Class B shares is 5.0% and is
reduced to 0% after 6 years. Class B shares bear ongoing 12b-1
distribution and service fees.
*** Class D shares are sold without initial or contingent deferred sales
charge but bear ongoing 12b-1 distribution and service fees.
+ Commencement of operations dates are December 30, 1983, July 1, 1991 and
July 2, 1992 for Class A, Class B and Class D shares, respectively.
NOTE: The Fund offers Class C shares to the Trustee of the PaineWebber Savings
Investment Plan. For the one year ended March 31, 1995, and since inception,
August 26, 1991 through March 31, 1995, Class C shares had an average annual
total return of 11.67% and 2.23%. Class C shares do not have initial or
contingent sales charges or ongoing distribution and service fees.
The investment return and 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.
2
<PAGE>
DIVIDEND GROWTH FUND
PAINEWEBBER
RECENT PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN/1/
-------------------------- -----------------------------
12 MONTHS 6 MONTHS
02/28/95 08/31/94 02/28/94 ENDED 02/28/95 ENDED 02/28/95
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $19.15 $20.43 $20.93 -1.13% 0.65%
- ------------------------------------------------------------------------
Class B Shares 19.10 20.37 20.86 -1.92 0.22
- ------------------------------------------------------------------------
Class D Shares 19.15 20.42 20.91 -1.87 0.26
- ------------------------------------------------------------------------
</TABLE>
Performance Summary Class A Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
12/20/83 - 12/31/84 $12.65 $13.21 -- $1.0800 13.72%
- -----------------------------------------------------------------------------
1985 13.21 14.97 $0.1950 0.8850 22.36
- -----------------------------------------------------------------------------
1986 14.97 15.04 1.1380 0.6830 12.68
- -----------------------------------------------------------------------------
1987 15.04 12.05 2.3027 0.7366 -3.16
- -----------------------------------------------------------------------------
1988 12.05 13.67 -- 0.5120 17.83
- -----------------------------------------------------------------------------
1989 13.67 16.32 0.1675 0.5178 24.59
- -----------------------------------------------------------------------------
1990 16.32 15.85 -- 0.3030 -1.01
- -----------------------------------------------------------------------------
1991 15.85 19.26 -- 0.0985 22.15
- -----------------------------------------------------------------------------
1992 19.26 21.74 -- 0.2432 3.90
- -----------------------------------------------------------------------------
1993 21.74 20.86 0.0310 0.2818 -2.59
- -----------------------------------------------------------------------------
1994 20.86 18.18 1.2111 0.2417 -6.62
- -----------------------------------------------------------------------------
01/01/95 - 02/28/95 18.18 19.15 -- -- 5.30
- -----------------------------------------------------------------------------
Total: $5.0453 $5.5826
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
02/28/95: 199.82%
- -----------------------------------------------------------------------------
</TABLE>
Performance Summary Class B Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/01/91 - 12/31/91 $18.04 $21.14 -- $0.1074 17.85%
- ----------------------------------------------------------------------------
1992 21.14 21.69 -- 0.0992 3.09
- ----------------------------------------------------------------------------
1993 21.69 20.78 $0.0310 0.1193 -3.94
- ----------------------------------------------------------------------------
1994 20.78 18.15 1.2111 0.0768 -1.94
- ----------------------------------------------------------------------------
01/01/95 - 02/28/95 18.15 19.10 -- -- 5.23
- ----------------------------------------------------------------------------
Total: $1.2421 $0.4027
- ----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
02/28/95: 15.43%
- ----------------------------------------------------------------------------
Performance Summary Class D Shares
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/02/92 - 12/31/92 $19.96 $21.75 -- $0.1160 9.58%
- ----------------------------------------------------------------------------
1993 21.75 20.83 $0.0310 0.1308 -3.93
- ----------------------------------------------------------------------------
1994 20.83 18.20 1.2111 0.0756 -1.94
- ----------------------------------------------------------------------------
01/01/95 - 02/28/95 18.20 19.15 -- -- 5.27
- ----------------------------------------------------------------------------
Total: $1.2421 $0.3224
- ----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
02/28/95: 4.18%
- ----------------------------------------------------------------------------
</TABLE>
3
<PAGE>
DIVIDEND GROWTH FUND
PAINEWEBBER
RECENT PERFORMANCE RESULTS (UNAUDITED) (CONTINUED)
Average Annual Return
<TABLE>
<CAPTION>
% RETURN AFTER
% RETURN WITHOUT DEDUCTING
SALES CHARGE MAXIMUM SALES CHARGE
-------------------------------- --------------------------------
CLASS CLASS
-------------------------------- --------------------------------
A B D*** A* B** D
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Twelve Months
Ended 03/31/95 7.14% 6.30% 6.33% 2.31% 1.30% 6.33%
- --------------------------------------------------------------------------------------------
Five Years
Ended 03/31/95 7.83 N/A N/A 6.84 N/A N/A
- --------------------------------------------------------------------------------------------
Commencement of
Operations+ Ended
03/31/95 10.52 4.74 2.63 10.07 4.27 2.63
- --------------------------------------------------------------------------------------------
</TABLE>
/1/Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the payable, and do not include sales
charges; results would be lower for Class A and Class B shares if sales
charge were included.
* Maximum sales charge for Class A shares is 4.5% of the public offering
price. Class A shares bear ongoing 12b-1 services fees.
** Maximum contingent deferred sales charge for Class B shares is 5.0% and
reduced to 0% after 6 years. Class B shares bear ongoing 12b-1 distribution
and service fees.
*** Class D shares are sold without initial or contingent deferred sales charge
but bear ongoing 12b-1 distribution and service fees.
+ Commencement of operations dates were December 30, 1983, July 1, 1991 and
July 2, 1992 for Class A, Class B and Class D shares, respectively.
NOTE The Fund offers Class C shares to the Trustee of the PaineWebber Savings
Investment Plan. For the one year ended March 31, 1995, and since inception,
February 12, 1991, through March 31, 1995, Class C shares had an average
annual total return of 7.50% and 1.75%. Class C shares do not have initial
or contingent sales charges or ongoing distribution and service fees.
The investment return and 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.
4
<PAGE>
GROWTH FUND
PAINEWEBBER
RECENT PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN/1/
-------------------------- -----------------------------
12 MONTHS 6 MONTHS
02/28/95 08/31/94 02/28/94 ENDED 02/28/95 ENDED 02/28/95
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $19.21 $20.04 $21.02 -8.48% -4.01%
- ------------------------------------------------------------------------
Class B Shares 18.65 19.53 20.56 -9.16 -4.37
- ------------------------------------------------------------------------
Class D Shares 18.78 19.67 20.70 -9.15 -4.39
- ------------------------------------------------------------------------
</TABLE>
Performance Summary Class A Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
03/18/85 - 12/31/85 $ 9.15 $10.55 -- $0.1275 16.87%
- -----------------------------------------------------------------------------
1986 10.55 10.86 $0.4063 0.1042 7.64
- -----------------------------------------------------------------------------
1987 10.86 9.81 1.4051 0.0847 4.34
- -----------------------------------------------------------------------------
1988 9.81 11.87 -- 0.1011 22.05
- -----------------------------------------------------------------------------
1989 11.87 14.79 1.1520 -- 34.27
- -----------------------------------------------------------------------------
1990 14.79 12.98 0.4625 0.1625 -7.72
- -----------------------------------------------------------------------------
1991 12.98 18.53 0.6003 0.0072 47.61
- -----------------------------------------------------------------------------
1992 18.53 18.66 0.6235 -- 4.15
- -----------------------------------------------------------------------------
1993 18.66 21.14 1.0734 -- 19.17
- -----------------------------------------------------------------------------
1994 21.14 18.81 0.0258 -- -10.90
- -----------------------------------------------------------------------------
01/01/95 - 02/28/95 18.81 19.21 -- -- 2.13
- -----------------------------------------------------------------------------
Total: $5.7489 $0.5872
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
02/28/95: 230.92%
- -----------------------------------------------------------------------------
</TABLE>
Performance Summary Class B Shares
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/01/91 - 12/31/91 $15.63 $18.47 $0.6003 $0.0037 22.18%
- -----------------------------------------------------------------------------
1992 18.47 18.44 0.6235 -- 3.30
- -----------------------------------------------------------------------------
1993 18.44 20.71 1.0734 -- 18.26
- -----------------------------------------------------------------------------
1994 20.71 18.28 0.0258 -- -11.61
- -----------------------------------------------------------------------------
01/01/95 - 02/28/95 18.28 18.65 -- -- 2.02
- -----------------------------------------------------------------------------
Total: $2.3230 $0.0037
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
02/28/95: 34.60%
- -----------------------------------------------------------------------------
Performance Summary Class D Shares
<CAPTION>
NET ASSET VALUE
---------------- CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/02/92 - 12/31/92 $17.04 $18.57 $0.6235 -- 12.73%
- -----------------------------------------------------------------------------
1993 18.57 20.85 1.0734 -- 18.19
- -----------------------------------------------------------------------------
1994 20.85 18.41 0.0258 -- -11.58
- -----------------------------------------------------------------------------
01/01/95 - 02/28/95 18.41 18.78 -- -- 2.01
- -----------------------------------------------------------------------------
Total: $1.7227 --
- -----------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF
02/28/95: 20.17%
- -----------------------------------------------------------------------------
</TABLE>
5
<PAGE>
GROWTH FUND
PAINEWEBBER
RECENT PERFORMANCE RESULTS (UNAUDITED) (CONTINUED)
Average Annual Return
<TABLE>
<CAPTION>
% RETURN AFTER
% RETURN WITHOUT DEDUCTING
SALES CHARGE MAXIMUM SALES CHARGE
---------------------------- ----------------------------
CLASS CLASS
---------------------------- ----------------------------
A B D*** A* B** D
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Twelve Months
Ended 03/31/95 0.75% -0.07% 0.04% -3.80% -5.07% 0.04%
- ----------------------------------------------------------------------------------
Five Years
Ended 03/31/95 10.37 N/A N/A 9.37 N/A N/A
- ----------------------------------------------------------------------------------
Commencement of
Operations+ Ended
03/31/95 12.99 9.05 8.02 12.47 8.20 8.02
- ----------------------------------------------------------------------------------
</TABLE>
assume reinvestment of all dividends and capital gains
distributions at net asset value on the payable, and do not include sales
charges; results would be lower for Class A and Class B shares if sales
charge were included.
* Maximum sales charge for Class A shares is 4.5% of the public offering
price. Class A shares bear ongoing 12b-1 services fees.
** Maximum contingent deferred sales charge for Class B shares is 5.0% and
reduced to 0% after 6 years. Class B shares bear ongoing 12b-1 distribution
and service fees.
*** Class D shares are sold without initial or contingent deferred sales charge
but bear ongoing 12b-1 distribution and service fees.
+ Commencement of operations dates were March 18, 1985, July 1, 1991 and July
2, 1992 for Class A, Class B and Class D shares, respectively.
Note: The Fund offers Class C shares to the Trustee of the PaineWebber Savings
Investment Plan. For the one year ended March 31, 1995, and since inception,
August 26, 1991 through March 31, 1995, Class C shares had an average annual
total return of 1.10% and 7.95%. Class C shares do not have initial or
contingent sales charges or ongoing distribution and service fees.
The investment return and 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.
6
<PAGE>
ATLAS GLOBAL GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS -- 95.86% FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - 82.45%
UNITED STATES - 27.67%
<S> <C>
Biotechnology - 2.77%
116,000 Amgen Inc.*........................................ $ 8,004,000
177,000 Liposome Inc....................................... 1,924,875
27,000 Genzyme Corp. Tissue............................... 108,000
------------
10,036,875
------------
Business Services - 1.19%
200,000 Ogden Corp......................................... 4,275,000
------------
Datacommunication - 2.54%
230,000 Digital Equipment Corp*............................ 7,705,000
300,000 Mitel Corporation.................................. 1,500,000
------------
9,205,000
------------
Electronics & Instrumentation - 6.98%
264,050 Analog Devices, Inc.*.............................. 6,634,256
400,000 National Semiconducter Corporation*................ 6,750,000
100,000 RF Monolithics Inc.*............................... 1,025,000
50,000 Texas Instruments, Inc............................. 3,937,500
853,700 Zenith Electronics Corp*........................... 6,936,313
------------
25,283,069
------------
Foods - 0.72%
209,900 Wholesome & Hearty Foods, Inc*..................... 2,623,750
------------
Investment Companies - 0.19%
16,000 ASA Limited........................................ 692,000
------------
Machine Tools - 1.45%
250,000 Cincinnati Milacron................................ 5,250,000
------------
Mining - 4.27%
400,000 Battle Mountain Gold Co............................ 3,800,000
80,000 Driefontein Consolidated Ltd Spsd ADR.............. 1,050,000
400,000 Hecla Mining Co*................................... 3,750,000
80,000 Kloof Gold Mining Ltd ADR.......................... 950,000
276,800 Minorco Sponsored ADR.............................. 5,916,600
------------
15,466,600
------------
Miscellaneous - 3.75%
280,000 General Division................................... 10,850,000
160,000 Giddings & Lewis, Inc.............................. 2,720,000
------------
13,570,000
------------
Oil & Gas Drilling - 3.81%
250,000 Baker Hughes....................................... 4,812,500
1,101,000 Global Marine Inc.................................. 4,541,625
904,600 Parker Drilling.................................... 4,409,925
------------
13,764,050
------------
Total United States Common Stocks................................ 100,166,344
------------
</TABLE>
7
<PAGE>
ATLAS GLOBAL GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
COMMON STOCKS - (CONTINUED)
ARGENTINA - 1.82%
<S> <C>
Infrastructure - 1.82%
3,730,300 Commercial Del Plata............................... $ 6,599,331
-----------
BRAZIL - 9.37%
Bank - 2.39%
1,100,133,221 Banco Bradeso SA................................... 8,655,936
-----------
Electric Utility - 3.12%
100,000,000 Copel On/Companhia Paranaense...................... 829,211
35,600,000 Electrobras ON..................................... 8,050,883
3,510,000 Iven SA............................................ 1,790,141
12,320,000 Paulista Forza Luz................................. 616,726
-----------
11,286,961
-----------
Food - 0.86%
222,000,000 Ceva/Ceval Alimentos SA............................ 3,098,587
-----------
Paper - 0.65%
194,800 Aracruz Celulose ADR............................... 2,337,600
-----------
Steel - 0.66%
930,000 Sider Tubarao PN B Shares.......................... 733,922
52,000 Tubarao Sponsors ADR 144A.......................... 1,641,458
-----------
2,375,380
-----------
Telephone - 1.42%
154,682,080 Telebras (ON)...................................... 3,716,743
20,590,000 Telecomunicacoes Do Rio............................ 1,428,446
-----------
5,145,189
-----------
Tobacco - 0.27%
153,900 Souza Cruz Ord. Registered......................... 1,015,124
-----------
Total Brazil Common Stocks........................................ 33,914,777
-----------
CANADA - 3.91%
Mining - 3.60%
100,000 Brascan Ltd Class A Conv........................... 1,327,831
83,100 Cameco Corp........................................ 2,027,920
207,100 Echo Bay Mines..................................... 1,863,900
300,000 Horsham Corp. ..................................... 3,750,000
200,000 Placer Dome Inc. .................................. 4,075,000
-----------
13,044,651
-----------
Technology - 0.31%
528,800 Battery Technologies*.............................. 1,123,700
-----------
Total Canada Common Stocks........................................ 14,168,351
-----------
</TABLE>
8
<PAGE>
ATLAS GLOBAL GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - (CONTINUED)
CHINA - 0.00%
<S> <C>
Infrastructure - 0.00%
16,000 Shanghai Jinqiao Export B Sh.*..................... $ 10,112
------------
FINLAND - 0.81%
Capital Goods - 0.67%
999,067 Tampella OY AB..................................... 2,425,475
------------
Printing & Publishing - 0.14%
28,000 Aamulehti Yhtymae.................................. 523,234
------------
Total Finland Common Stocks...................................... 2,948,709
------------
FRANCE - 5.19%
Capital Goods - 2.68%
54,050 Legris Industries*................................. 3,562,231
25,000 Lyonnaise Des Eaux................................. 2,125,378
80,000 Technip SA Compagnie Francaise..................... 4,055,767
------------
9,743,376
------------
Health & Personal Care - 0.06%
2,300 Boiron............................................. 201,813
------------
Industrial Holdings - 0.27%
39,250 Dynaction*......................................... 964,317
------------
Leisure - 1.13%
50,000 Club Mediterranee.................................. 4,075,266
------------
Utilities - 1.05%
31,000 Generale Des Eaux.................................. 2,871,210
15,100 Geophysique, Cie Generale.......................... 949,547
------------
3,820,757
------------
Total France Common Stocks....................................... 18,805,529
------------
GERMANY - 0.85%
Capital Goods - 0.85%
10,600 Mannesmann AG...................................... 3,086,177
------------
HONG KONG - 7.75%
Consumer Goods - 2.03%
52,105,200 China Aerospace*................................... 7,345,880
------------
Infrastructure - 4.20%
19,945,000 Hopewell Holdings.................................. 15,220,268
------------
Retailing - 1.52%
10,103,000 Dickson Concept International, Ltd................. 5,488,275
------------
Total Hong Kong Common Stocks.................................... 28,054,423
------------
</TABLE>
9
<PAGE>
ATLAS GLOBAL GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - (CONTINUED)
ITALY - 1.62%
<S> Chemicals - 1.62% <C>
8,000,000 Montedison SPA........................................ $ 5,857,999
------------
MALAYSIA - 1.54%
Conglomerate - 1.54%
3,509,000 Malaysia Mining Berhad................................ 5,581,406
------------
NORWAY - 2.22%
Machinery & Engineering - 0.96%
80,000 Kvaerner 'B'.......................................... 3,473,285
------------
Multi-Industry - 1.26%
356,900 Aker A/S B Shares..................................... 4,565,549
------------
Total Norway Common Stocks....................................... 8,038,834
------------
PAKISTAN - 0.31%
Banking - 0.31%
192,100 Bank Al Habib*........................................ 209,430
20,900 Bank of Pujab*........................................ 24,980
31,200 Prime Commercial Bank*................................ 29,983
766,810 Soneri Bank Limited*.................................. 848,373
2,800 Union Bank Limited*................................... 2,849
------------
1,115,615
------------
POLAND - 0.60%
Construction - 0.60%
360,000 Mostostal Export Bearer*.............................. 2,163,013
------------
SOUTH AFRICA - 8.62%
Infrastructure - 0.96%
191,800 Barlow Ltd............................................ 1,773,661
70,000 Murray & Roberts Holdings Ltd......................... 1,696,429
------------
3,470,090
------------
Mining - 4.10%
210,000 Driefontein Consolidated Ltd.......................... 2,705,357
200,000 Free State Cons Gold Mines Ord........................ 2,321,429
1,087,200 Gencor Ltd............................................ 3,466,837
90,000 Goldfields Industrial Corp............................ 2,043,367
200,000 Kloof Gold Mining Ltd, ADR............................ 2,321,429
280,000 Randfontein Estates Goldmine.......................... 1,982,143
------------
14,840,562
------------
</TABLE>
10
<PAGE>
ATLAS GLOBAL GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - (CONTINUED)
SOUTH AFRICA - (CONTINUED)
<S> <C>
Petroleum - 1.25%
530,000 Sasol Ltd............................................ $ 3,954,719
80,000 Sasol Ltd., Unsec Debt Stock Conv Shares............. 571,429
------------
4,526,148
------------
Steel - 1.32%
4,400,000 South African Iron & Steel/Iscor..................... 4,804,082
------------
Tobacco - 0.99%
534,950 Rembrandt Group Ltd. ORD............................. 3,582,254
------------
Total South Africa Common Stocks................................. 31,223,136
------------
SWEDEN - 0.88%
Mining - 0.88%
230,000 Trelleborg Ab B Free*................................ 3,184,732
SWITZERLAND - 2.26% ------------
Cement - 1.03%
5,000 Holderbank........................................... 3,714,668
------------
Pharmaceutical - 1.23%
7,000 Ciba Geigy........................................... 4,451,113
------------
Total Switzerland Common Stocks.................................. 8,165,781
------------
TURKEY - 2.78%
Banking - 1.67%
9,600,000 Akbank............................................... 2,198,650
835,400 Akbank Prom Notes.................................... 191,328
42,596,100 Yapi Kredi Bank...................................... 3,645,520
------------
6,035,498
------------
Conglomerate - 0.98%
4,000,000 Koc Holdings......................................... 2,314,368
2,133,000 Koc Yatirim.......................................... 1,259,848
------------
3,574,216
------------
Newspaper - 0.13%
14,833,880 Medya Holdings AS.................................... 455,959
------------
Total Turkey Common Stocks....................................... 10,065,673
------------
UNITED KINGDOM - 4.25%
Capital Goods - 1.22%
1,250,000 Weir Group........................................... 4,453,597
------------
Drugs - 1.01%
1,300,000 Medeva............................................... 3,643,636
------------
</TABLE>
11
<PAGE>
ATLAS GLOBAL GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - (CONTINUED)
UNITED KINGDOM - (CONTINUED)
<S> <C>
1,600,800 Lonrho Ord........................................ $ 3,675,560
------------
Mining - 1.00%
850,000 Antofagasta Holdings.............................. 3,634,135
------------
Total United Kingdom Common Stocks............................... 15,406,928
------------
Total Common Stocks (cost - $339,442,197)........................ 298,556,870
------------
PREFERRED STOCK - 13.12%
BRAZIL - 10.88%
Bank - 2.74%
149,052,000 Banco de Brasil Preferred Reg'd NV................ 1,931,180
10,000,000 Investimentos Itau................................ 4,711,425
12,140,000 Itaubanco Pfd Reg'd............................... 3,288,810
------------
9,931,415
------------
Beverage - 0.67%
7,930,000 Brahma............................................ 2,409,823
------------
Food - 0.42%
851,200,000 Perdigao Comercio E Indus Pfd..................... 1,533,965
------------
Machinery - 1.04%
11,415,000 Brasmotor Preferred Reg'd......................... 3,159,629
1,108,000 Weg Preferred Reg'd............................... 601,635
------------
3,761,264
------------
Mining - 1.82%
45,000,000 Vale Do Rio Doce Pfd Reg'd........................ 6,572,438
------------
Oil - 1.78%
63,000,000 Petrobras Preferred Reg........................... 6,419,470
------------
Paper - 0.32%
2,625,570 Melpaper SA Pfd................................... 1,175,167
------------
Retailing - 0.36%
61,780,000 Lojas Americanas Pfd Reg'd........................ 1,309,823
------------
Steel - 1.18%
28,190,000 Acesita Cia Acos Espec Itab....................... 1,892,615
47,300,000 Metalurg Gerdau Preferred......................... 2,362,214
------------
4,254,829
------------
Telephone - 0.18%
5,527 Telebras Pfd Reg'd................................ 163
262,396 Telecom Do Rio De Janero.......................... 11,744
2,700,000 Telepar Preferred Reg'd........................... 651,975
------------
663,882
------------
</TABLE>
12
<PAGE>
ATLAS GLOBAL GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
PREFERRED STOCK - (CONTINUED)
<S> <C>
Tools - 0.37%
2,480,000,000 Forjas Tauras Preferred Shares.................... $ 1,343,699
-----------
Total Brazil Preferred Stocks.................................... 39,375,775
-----------
GERMANY - 2.24%
Auto - 2.24%
18,500 Porsche AG Non Voting Preferred................... 8,130,194
-----------
Total Preferred Stocks (cost - $53,701,905)...................... 47,505,969
-----------
STOCK RIGHTS - 0.00%
BRAZIL - 0.00%
Telephone - 0.00%
81,666 Telebras ON Rights................................ 1,962
18,615 Telebras PN Rights................................ 550
-----------
Total Stock Rights (cost - $6,792)............................... 2,512
-----------
WARRANTS - 0.03%
HONG KONG - 0.03%
Aerospace - 0.03%
China Aero International Holding, expiring
8,728,320 12/31/95 (cost - $1,870,733)..................... 101,604
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES
---------- -------- --------
LONG-TERM DEBT SECURITIES - 0.24%
UNITED STATES - 0.24%
<S> <C> <C> <C>
$1,000,000 EKA Guntama Mandiri Con (cost -
$1,000,000)..................... 10/04/97 4.000% 870,000
REPURCHASE AGREEMENT - 0.02%
75 Repurchase Agreement dated
02/28/95 with Brown
Brothers Harriman & Co.
collateralized by $75,959
U.S. Treasury Notes, 8.500% due
08/15/95;
proceeds: $75,011 (cost -
$75,000)........................ 03/01/95 5.500 75,000
------------
Total Investments (cost - $396,096,627)-
95.86%....................................... 347,111,955
Other assets in excess of liabilities-4.14%.. 14,991,939
------------
Net Assets-100.00%........................... $362,103,894
============
</TABLE>
- -------
* Non-income producing security
ADR - American Depository Receipts
See accompanying notes to financial statements
13
<PAGE>
DIVIDEND GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - 97.32%
<S> <C>
Aerospace - 5.12%
90,900 General Dynamics Corporation.......................... $ 4,283,663
134,100 Loral Corporation..................................... 5,481,337
169,500 Martin Marietta Corporation New....................... 8,093,625
84,300 Raytheon Company...................................... 5,943,150
------------
23,801,775
------------
Air Transportation - 1.13%
63,900 AMR Corporation Delaware.............................. 3,905,888
23,000 Delta Airlines Incorporated........................... 1,334,000
------------
5,239,888
------------
Apparel - 1.21%
78,300 Nike Incorporated..................................... 5,627,813
------------
Automobiles - 1.60%
145,000 Donaldson Incorporated................................ 3,643,125
173,600 Fleetwood Enterprises Incorporated.................... 3,797,500
------------
7,440,625
------------
Banking - 4.14%
26,100 First Empire State Corporation........................ 4,319,550
348,900 Marshall and Ilsley Corporation....................... 7,239,685
153,600 NationsBank Corporation............................... 7,660,800
------------
19,220,035
------------
Business Services - 1.69%
47,900 Computer Associates International Incorporated........ 2,730,300
185,900 Reynolds & Reynolds Company, Class A.................. 5,135,488
------------
7,865,788
------------
Chemicals - 1.80%
19,400 Bordon Chemicals & Plastics Limited................... 339,500
166,700 Lubrizol Corporation.................................. 5,584,450
132,900 R.P.M. Incorporated Ohio.............................. 2,442,037
------------
8,365,987
------------
Computer - 5.61%
177,100 Bay Networks Incorporated............................. 5,556,512
55,700 BMC Software Incorporated............................. 3,578,725
137,400 Cisco Systems Incorporated............................ 4,637,250
59,300 Concord Efs Incorporated.............................. 2,468,650
85,400 International Business Machines Corporation........... 6,426,350
116,900 Legent Corporation.................................... 3,390,100
------------
26,057,587
------------
</TABLE>
14
<PAGE>
DIVIDEND GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - (CONTINUED)
<S> <C>
Conglomerates - 0.70%
42,400 General Electric Company.............................. $ 2,326,700
9,700 ITT Corporation....................................... 945,750
------------
3,272,450
------------
Cosmetics & Soaps - 1.66%
77,800 International Flavours................................ 3,744,125
60,000 Procter & Gamble Company.............................. 3,990,000
------------
7,734,125
------------
Drugs & Medical Products - 13.48%
108,900 Abbott Laboratories................................... 3,865,950
44,000 Allergan Incorporated................................. 1,270,500
75,000 American Home Products Corporation.................... 5,362,500
75,200 Amgen Inc. ........................................... 5,188,800
96,500 Becton Dickinson & Company............................ 5,066,250
67,300 Bristol Myer Squibb Company........................... 4,172,600
200,000 Johnson & Johnson..................................... 11,350,000
58,800 Lilly Eli & Company................................... 3,939,600
60,300 Medtronic, Incorporated............................... 3,618,000
122,500 Merck & Company....................................... 5,190,937
196,000 Mylan Labs Incorporated............................... 6,125,000
296,800 National Medical Enterprises Incorporated............. 4,600,400
136,600 Ventritex Incorporated................................ 2,868,600
------------
62,619,137
------------
Healthcare - 3.09%
101,200 Healthcare Compare Corporation........................ 3,213,100
102,800 Smithkline Beecham, PLC............................... 3,996,350
166,300 U.S. Healthcare, Inc. ................................ 7,150,900
------------
14,360,350
------------
Industrial & Electronic Products - 10.94%
28,600 AMP Incorporated ..................................... 2,145,000
148,200 Cadence Design Systems Incorporated................... 3,797,625
58,100 Diebold, Incorporated................................. 2,055,288
80,800 Dover Corporation..................................... 4,807,600
90,200 DSC Communications Corporation........................ 3,247,200
46,800 Eastman Kodak Company ................................ 2,386,800
262,900 E M C Corporation Massachusetts....................... 4,502,162
84,500 Emerson Electric Company.............................. 5,587,563
79,700 General Instruments Corporation*...................... 2,530,475
24,600 Hewlett-Packard Company............................... 2,829,000
146,400 Lam Research Corporation.............................. 5,856,000
70,900 Network Equipment Technologies ....................... 1,799,088
78,300 Newbridge Networks Corporation........................ 2,652,413
56,800 Tellabs Incorporated.................................. 2,953,600
68,045 United States Robotics Incorporated................... 3,674,430
------------
50,824,244
------------
</TABLE>
15
<PAGE>
DIVIDEND GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - (CONTINUED)
<S> <C>
Energy & Utilities - 2.77%
70,500 Consolidated Edison Company New York Incorporated..... $ 1,947,563
69,900 DPL Incorporated ..................................... 1,459,163
151,300 Duke Power Company.................................... 5,938,525
214,400 SCE Corporation....................................... 3,510,800
------------
12,856,051
------------
Environmental Services - 2.24%
394,300 WMX Technologies, Inc................................. 10,399,662
------------
Financial Services - 0.13%
14,600 Paychex............................................... 598,600
------------
Food & Agriculture - 5.44%
283,600 Archer Daniels Midland Company........................ 5,388,400
89,900 Campbell Soup Company................................. 4,079,212
149,600 Con Agra, Inc......................................... 4,899,400
96,000 Pepsico, Incorporated................................. 3,756,000
124,400 Potash Corporation of Saskatchewan Inc. .............. 4,447,300
103,000 Sara Lee Corporation.................................. 2,703,750
------------
25,274,062
------------
Gold - 0.55%
49,700 Barrick Gold Corporation.............................. 1,080,975
155,000 Battle Mtn Gold Company............................... 1,472,500
------------
2,553,475
------------
Insurance - 4.92%
112,600 AFLAC Incorporated.................................... 4,250,650
56,800 American International Group Inc...................... 5,893,000
100,600 Equitable of Iowa Companies........................... 3,344,950
115,700 St. Paul Companies, Incorporated...................... 5,625,912
97,000 The Progressive Corporation........................... 3,770,875
------------
22,885,387
------------
Machinery - Machine Tools - 0.88%
67,100 W.W. Grainger, Incorporated........................... 4,101,488
------------
Oil & Gas - 3.91%
131,900 Chevron Corporation................................... 6,265,250
60,500 Mobil Corporation..................................... 5,263,500
59,500 Placer Dome Incorporated.............................. 1,212,313
63,700 Texaco Incorporated................................... 4,060,875
48,500 Unocal Corporation.................................... 1,376,188
------------
18,178,126
------------
</TABLE>
16
<PAGE>
DIVIDEND GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - (CONTINUED)
<S> <C>
Paper & Forest Product - 4.28%
83,700 Champion International Corporation.................... $ 3,442,163
208,600 Louisiana Pacific Corporation......................... 5,892,950
139,400 Pentair Incorporated.................................. 5,985,488
234,200 Repap Enterprises Incorporated........................ 1,646,719
29,200 Scott Paper Company................................... 2,314,100
27,000 Stone Container Corporation........................... 631,125
------------
19,912,545
------------
Printing & Publishing - 1.38%
2,500 Banta Corporation..................................... 80,625
114,800 Gannett Company, Incorporated......................... 6,314,000
------------
6,394,625
------------
Producer Goods - 2.07%
100,000 Caterpillar Incorporated.............................. 5,162,500
153,300 Federal Signal Corporation............................ 3,142,650
73,500 Molten Metal Technologies Incorporated................ 1,304,625
------------
9,609,775
------------
Retail - 3.42%
123,100 American Stores Company............................... 3,015,950
347,600 Bruno's Incorporated.................................. 3,541,175
209,000 Rite Aid Corporation.................................. 5,172,750
84,600 Sears Roebuck and Company............................. 4,166,550
------------
15,896,425
------------
Retail Food Chains - 1.17%
176,300 Albertson's, Inc...................................... 5,421,225
------------
Specialty Chemicals - 0.69%
305,000 Methanex Corporation.................................. 3,202,500
------------
Specialty Retail - 4.48%
63,200 Dayton Hudson Corporation............................. 4,455,600
18,300 Leggett & Platt Inc................................... 748,013
80,400 Loctite Corporation .................................. 3,698,400
133,500 Nordstrom Inc......................................... 5,640,375
85,100 The Home Depot, Inc. ................................. 3,818,863
72,800 The Sherwin-Williams Company.......................... 2,447,900
------------
20,809,151
------------
</TABLE>
17
<PAGE>
DIVIDEND GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - (CONCLUDED)
<S> <C>
Steel - 2.68%
69,700 Inland Steel Industry Incorporated.................... $ 1,863,000
91,800 Nucor Corporation..................................... 5,152,275
269,450 Worthington Industries, Incorporation................. 5,422,667
------------
12,437,942
------------
Telephone Companies - 0.97%
99,300 Telephone & Data Systems Incorporated................. 4,530,562
------------
Tobacco - 2.86%
119,600 American Brands Incorporated.......................... 4,470,050
144,800 Philip Morris Companies Incorporated.................. 8,796,600
------------
13,266,650
------------
Travel & Recreation - 0.31%
34,000 American Express Company.............................. 1,147,500
9,400 Callaway Golf Company................................. 317,250
------------
1,464,750
------------
Total Common Stocks (cost - $437,679,045)........................ 452,222,805
------------
PREFERRED STOCKS -- 0.26%
Retail - 0.26%
19,600 Sears Roebuck and Company (cost - $1,152,676)......... 1,210,300
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES
--------- -------- --------
CONVERTIBLE BONDS - 0.48%
<S> <C> <C> <C> <C>
$2,400 Developers Diversified Realty
Corporation (cost - $2,400,000)... 08/15/99 7.000% 2,232,000
------------
REPURCHASE AGREEMENT - 1.60%
7,444 Repurchase Agreement dated 02/28/95
with State Street
Bank & Trust Co., collateralized
by $7,917,000
U.S. Treasury Notes, 7.250%, due
08/15/22;
proceeds: $7,445,247 (cost -
$7,444,000)...................... 03/01/95 6.030 7,444,000
------------
Total Investments (cost - $448,675,721) -
99.66%........................................ 463,109,105
Other assets in excess of liabilities-0.34%... 1,562,548
------------
Net Assets - 100.00%.......................... $464,671,653
============
</TABLE>
18
<PAGE>
GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - 81.40%
<S> <C>
Apparel & Footwear - 0.86%
149,000 Authentic Fitness Corporation*........................ $ 2,216,375
------------
Banking - 2.81%
84,350 KeyCorp............................................... 2,446,150
60,000 Marshall and Ilsley Corporation....................... 1,245,000
180,000 Synovus Financial Corp. .............................. 3,555,000
------------
7,246,150
------------
Beverages & Bottling - 1.60%
75,000 The Coca-Cola Company................................. 4,125,000
------------
Biotechnology - 0.44%
18,833 Chiron Corporation*................................... 1,144,105
------------
Broadcasting/Cable T.V. - 6.33%
80,000 British Sky Broadcasting Group, PLC*.................. 1,930,000
105,000 Comcast Corporation, Class A.......................... 1,680,000
112,500 Comcast Corporation, Class A Special.................. 1,771,875
185,000 International CableTel Incorporated*.................. 5,920,000
100,000 Tele-Communications, Inc., Class A*................... 2,275,000
60,615 Viacom Inc., Class B*................................. 2,712,521
------------
16,289,396
------------
Cellular & Paging Communications - 1.58%
125,000 Mobile Telecommunications Technologies Corp.*......... 2,765,625
50,000 Rogers Cantel Mobile Communications Inc., Class B*.... 1,293,750
------------
4,059,375
------------
Computer Software - 1.49%
75,000 EMC Corporation....................................... 1,284,375
340,000 Excalibur Technologies Corporation*................... 2,550,000
------------
3,834,375
------------
Conglomerates - 1.56%
430,000 Noel Group, Inc.*..................................... 2,418,750
75,000 PEC Israel Economic Corporation*...................... 1,603,125
------------
4,021,875
------------
Containers & Packaging - 1.14%
70,000 Sealed Air Corporation*............................... 2,931,250
------------
Drugs & Medical Products - 8.53%
32,244 Advanced Therapeutic Systems*......................... 894,771
97,500 Elan Corporation, plc ADS*............................ 3,436,875
</TABLE>
19
<PAGE>
GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - (CONTINUED)
Drugs & Medical Products - (continued)
<S> <C>
60,000 Forest Laboratories, Inc.*............................ $ 3,045,000
40,000 Ivax Corporation...................................... 865,000
100,000 R.P. Scherer Corporation*............................. 4,587,500
107,000 Teva Pharmaceutical Industries Ltd., ADS.............. 2,775,313
222,854 VISX, Incorporated*................................... 3,008,529
130,000 Watson Pharmaceuticals, Inc.*......................... 3,355,625
------------
21,968,613
------------
Electronics & Instrumentation - 1.54%
150,000 Lattice Semiconductor Corporation*.................... 3,956,250
------------
Fertilizers - 1.93%
100,000 Potash Corporation of Saskatchewan Inc. .............. 3,575,000
75,000 The Scotts Company, Class A*.......................... 1,387,500
------------
4,962,500
------------
Financial Services - 4.77%
157,500 Countrywide Credit Industries, Inc. .................. 2,559,375
45,000 Federal Home Loan Mortgage Corporation................ 2,610,000
40,000 Federal National Mortgage Association................. 3,085,000
75,000 First Data Corporation................................ 4,031,250
------------
12,285,625
------------
Foods - 0.16%
168,000 Lincoln Snacks Company*............................... 399,000
------------
Forest Products - 0.34%
125,000 Universal Forest Products Inc. ....................... 875,000
------------
Healthcare - 4.48%
100,000 Humana Inc. .......................................... 2,375,000
200,000 North American Vaccine Inc.*.......................... 1,600,000
20,000 PacifiCare Health Systems, Inc.*...................... 1,405,000
280,000 TDX Corporation*(1)................................... 315,000
70,000 United HealthCare Corporation*........................ 3,010,000
65,500 U.S. Healthcare, Inc. ................................ 2,816,500
------------
11,521,500
------------
Hotel, Motel or Lodging - 1.65%
150,000 Hospitality Franchise Systems, Inc.*.................. 4,256,250
------------
Household & Consumer Products - 5.16%
75,436 Belding Hemingway Co. ................................ 584,629
70,000 Duracell International Inc. .......................... 2,913,750
165,000 The Forschner Group, Inc.*............................ 1,773,750
80,000 Luxottica Group S.p.A. ADS............................ 3,110,000
150,000 Sunbeam-Oster Company, Inc. .......................... 3,656,250
80,000 Syratech Corporation*................................. 1,240,000
------------
13,278,379
------------
</TABLE>
20
<PAGE>
GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - (CONTINUED)
<S> <C>
Insurance - 0.93%
150,000 PennCorp Financial Group, Inc......................... $ 2,400,000
------------
Leisure & Entertainment - 5.83%
80,000 Bolle America, Inc.*.................................. 680,000
50,000 Cyrk Incorporated..................................... 1,200,000
275,000 Marker International*................................. 2,045,312
175,000 Norwood Promotional Products, Inc.*................... 2,143,750
300,000 Savoy Pictures Entertainment, Inc.*................... 2,081,250
250,000 Sports Club Incorporated.............................. 1,812,500
60,000 SweetWater, Inc.*..................................... 420,000
120,000 Time Warner Inc....................................... 4,635,000
------------
15,017,812
------------
Leisure: Gaming - 1.45%
105,000 Mirage Resorts, Incorporated*......................... 2,506,875
100,000 Rio Hotel & Casino, Inc.*............................. 1,237,500
------------
3,744,375
------------
Medical Equipment - 0.94%
70,000 Sunrise Medical Inc.*. ............................... 2,415,000
------------
Metals & Mining - 1.29%
140,000 Madeco S.A............................................ 3,325,000
------------
Oil & Gas - 0.88%
193,235 Garnet Resources Corporation*......................... 519,319
100,000 Louis Dreyfus Natural Gas Corp.*...................... 1,187,500
60,000 NUMAR Corporation*.................................... 555,000
------------
2,261,819
------------
Oil Services - 0.50%
70,000 Camco International Inc............................... 1,295,000
------------
Printing & Publishing - 0.61%
60,000 The News Corporation Limited.......................... 1,087,500
30,000 The News Corporation Limited ADR...................... 483,750
------------
1,571,250
------------
Rails - 3.17%
45,000 Burlington Northern Inc............................... 2,520,000
45,000 Conrail Inc. ......................................... 2,486,250
62,000 Johnstown America Industries, Inc.*................... 775,000
101,000 Railtex Inc.*......................................... 2,373,500
------------
8,154,750
------------
Services - 0.29%
150,000 Staffing Resources.................................... 742,500
------------
Specialty Retail - 9.22%
180,000 General Nutrition Companies, Inc.*.................... 4,320,000
50,000 The Home Depot, Inc. ................................. 2,243,750
229,500 Rawlings Sporting Goods Company, Inc.*................ 2,754,000
330,000 The Right Start, Inc.*(1)............................. 928,125
</TABLE>
21
<PAGE>
GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCKS - (CONCLUDED)
Specialty Retail - (continued)
<S> <C>
239,625 Staples, Inc.*........................................ $ 5,810,906
60,000 Toys 'R' Us, Inc.*.................................... 1,672,500
200,000 Viking Office Products, Inc.*......................... 6,000,000
------------
23,729,281
------------
Steel - 1.08%
220,000 Northwestern Steel and Wire Company*.................. 1,402,500
130,000 Olympic Steel, Inc.*.................................. 1,365,000
------------
2,767,500
------------
Telecommunications - 1.04%
150,000 Cable and Wireless plc, ADS........................... 2,681,250
------------
Telecommunications - Equipment - 3.75%
80,000 ANTEC Corporation*.................................... 1,740,000
185,000 Belden, Inc. ......................................... 3,885,000
70,000 Motorola, Inc......................................... 4,025,000
------------
9,650,000
------------
Telecommunications - Services - 3.40%
75,000 AT & T Corp........................................... 3,881,250
102,000 IntelCom Group, Inc.*................................. 1,275,000
44,000 MFS Communications Company, Inc.*..................... 1,529,000
71,000 TeleWest Communications, plc, ADS*.................... 2,076,750
------------
8,762,000
------------
Telephone Companies - 0.65%
90,000 Telefonica de Argentina, S.A., ADS.................... 1,676,250
------------
Total Common Stocks (cost - $163,486,889)........................ 209,564,805
------------
</TABLE>
22
<PAGE>
GROWTH FUND
PAINEWEBBER
PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- ------------
<S> <C> <C> <C>
CORPORATE BONDS - 0.85%
Oil & Gas - 0.28%
Garnet Resources
$ 1,500 Corporation............ 12/21/98 9.500% $ 732,900
------------
Telecommunications - Services - 0.57%
IntelCom Group, Inc.-
2,160 Convertible............ 09/17/98 8.000 1,471,176
------------
Total Corporate Bonds (cost -
$3,660,000)....................... 2,204,076
------------
U.S. GOVERNMENT OBLIGATIONS - 13.57%
U.S. Treasury Bills
35,000 (cost - $34,926,739)... 03/02/95 to 04/06/95 5.020 to 5.410 34,925,913
------------
REPURCHASE AGREEMENT - 4.08%
10,516 Repurchase agreement
dated 02/28/95 with
Salomon Brothers, Inc.,
collateralized by
$10,000,000
U.S. Treasury Notes,
8.750%, due 08/15/00;
proceeds: $10,517,761
(cost - $10,516,000)... 03/01/95 6.030 10,516,000
------------
Total Investments (cost -
$212,589,628) - 99.90%............ 257,210,794
Other assets in excess of
liabilities - 0.10%................ 234,008
------------
Net Assets - 100.00%............... $257,444,802
============
</TABLE>
- -------
* Non-income producing security
ADR--American Depository Receipts
ADS--American Depository Shares
(1) Investment in affiliated company-See notes to the financial statements.
See accompanying notes to financial statements
23
<PAGE>
PAINEWEBBER
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
ATLAS GLOBAL DIVIDEND
GROWTH GROWTH GROWTH
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
Assets
Investments at value (cost -
$396,096,627, $448,675,721 and
$212,589,628, respectively)......... $347,111,955 $463,109,105 $257,210,794
Cash................................. 406,097 592 98
Receivable for investments sold...... 36,767,827 21,981,758 3,008,317
Receivable for shares of beneficial
interest sold....................... 1,030,204 149,089 226,526
Dividends and interest receivable.... 681,022 1,239,837 236,366
Other assets......................... 103,120 60,689 61,681
------------ ------------ ------------
Total assets......................... 386,100,225 486,541,070 260,743,782
------------ ------------ ------------
Liabilities
Payable for investments purchased.... 17,704,435 16,761,725 591,000
Payable for shares of beneficial
interest repurchased................ 4,519,457 4,120,956 2,220,898
Payable to affiliates................ 397,885 510,228 263,609
Accrued expenses and other
liabilities......................... 1,374,554 476,508 223,473
------------ ------------ ------------
Total liabilities.................... 23,996,331 21,869,417 3,298,980
------------ ------------ ------------
Net Assets
Beneficial interest shares of $0.001
par value outstanding (unlimited
amount authorized).................. 407,395,064 448,788,925 213,743,193
Accumulated undistributed
(overdistributed) net investment
income (loss)....................... (699,690) 326,098 183,472
Accumulated net realized gains
(losses) from investments, futures
contracts and other assets and
liabilities denominated in foreign
currencies.......................... 4,435,841 1,123,246 (1,103,029)
Net unrealized appreciation
(depreciation) of investments, other
assets, liabilities and forward
contracts denominated in foreign
currencies.......................... (49,027,321) 14,433,384 44,621,166
------------ ------------ ------------
Net assets........................... $362,103,894 $464,671,653 $257,444,802
============ ============ ============
Class A:
Net assets........................... $155,965,070 $180,816,735 $120,933,807
------------ ------------ ------------
Shares outstanding................... 11,780,519 9,441,600 6,294,685
------------ ------------ ------------
Net asset value and redemption value
per share........................... $13.24 $19.15 $19.21
============ ============ ============
Maximum offering price per share (net
asset value plus sales charge of
4.50% of offering price)............ $13.86 $20.05 $20.12
============ ============ ============
Class B:
Net assets........................... $119,843,249 $239,383,165 $ 83,636,897
------------ ------------ ------------
Shares outstanding................... 9,276,566 12,533,576 4,485,279
------------ ------------ ------------
Net asset value and offering price
per share........................... $12.92 $19.10 $18.65
============ ============ ============
Class C:
Net assets........................... $ 32,992,059 $ 14,543,879 $ 29,937,919
------------ ------------ ------------
Shares outstanding................... 2,474,090 759,803 1,542,616
------------ ------------ ------------
Net asset value, offering price and
redemption value per share.......... $13.34 $19.14 $19.41
============ ============ ============
Class D:
Net assets........................... $ 53,303,516 $ 29,927,874 $ 22,936,179
------------ ------------ ------------
Shares outstanding................... 4,100,804 1,562,497 1,221,271
------------ ------------ ------------
Net asset value, offering price and
redemption value per share.......... $13.00 $19.15 $18.78
============ ============ ============
</TABLE>
See accompanying notes to financial statements
24
<PAGE>
PAINEWEBBER
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
ATLAS
GLOBAL DIVIDEND
GROWTH GROWTH GROWTH
FUND FUND FUND
------------ ------------ ------------
<S> <C> <C> <C>
Investment income:
Interest and dividends (net of foreign
withholding taxes)................... $ 3,435,570 $ 5,345,990 $ 2,234,793
------------ ------------ ------------
Expenses:
Investment advisory and administration
fees................................. 1,646,724 1,719,741 1,010,817
Distribution fees--Class A............ 207,254 221,203 142,528
Distribution fees--Class B............ 741,805 1,266,487 441,247
Distribution fees--Class D............ 334,528 160,442 124,963
Custody fees.......................... 624,975 88,983 64,926
Transfer agency and service fees...... 253,711 340,676 143,745
Reports and notices to shareholders... 78,662 125,092 36,443
Federal and state registration fees... 68,987 55,645 32,291
Legal and audit fees.................. 67,905 58,425 38,251
Trustees' fees........................ 11,412 10,668 4,029
Other expenses........................ 60,158 11,719 12,081
------------ ------------ ------------
4,096,121 4,059,081 2,051,321
------------ ------------ ------------
Net investment income (loss).......... (660,551) 1,286,909 183,472
------------ ------------ ------------
Realized and unrealized gains (losses)
from investment activities:
Net realized gains (losses) from:
Investment transactions.............. 7,832,344 8,385,502 (840,133)
Foreign currency transactions........ (1,127,101) -- --
Net change in unrealized
appreciation/depreciation on:
Investments.......................... (83,263,856) (11,300,725) (11,609,297)
Other assets, liabilities and forward
contracts denominated in foreign
currencies.......................... 35,142 -- --
------------ ------------ ------------
Net realized and unrealized losses
from investment activities........... (76,523,471) (2,915,223) (12,449,430)
------------ ------------ ------------
Net decrease in net assets resulting
from operations...................... $(77,184,022) $ (1,628,314) $(12,265,958)
============ ============ ============
</TABLE>
See accompanying notes to financial statements
25
<PAGE>
ATLAS GLOBAL GROWTH FUND
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR
FEBRUARY 28, 1995 ENDED
(UNAUDITED) AUGUST 31, 1994
------------------ ---------------
<S> <C> <C>
From operations:
Net investment loss........................ $ (660,551) $ (905,478)
Net realized gains from investment
transactions and forward currency
contracts................................. 7,832,344 46,878,125
Net realized losses from foreign currency
transactions.............................. (1,127,101) (26,960,620)
Net change in unrealized
appreciation/depreciation of investments.. (83,263,856) 100,618
Net change in unrealized
appreciation/depreciation of other assets,
liabilities and forward contracts
denominated in foreign currencies......... 35,142 1,495,014
------------ ------------
Net increase (decrease) in net assets
resulting from operations................. (77,184,022) 20,607,659
------------ ------------
Dividends and distributions to shareholders
from:
Net investment income--Class A............. -- (511,731)
Net investment income--Class B............. -- (31,390)
Net investment income--Class C............. -- (126,890)
Net investment income--Class D............. -- (37,463)
Net realized gains from foreign currency
transactions--Class A..................... -- (1,343,285)
Net realized gains from foreign currency
transactions--Class B..................... -- (728,746)
Net realized gains from foreign currency
transactions--Class C..................... -- (187,552)
Net realized gains from foreign currency
transactions--Class D..................... -- (376,145)
Net realized gains from investment
transactions--Class A..................... (5,518,829) (6,255,164)
Net realized gains from investment
transactions--Class B..................... (4,452,971) (3,393,492)
Net realized gains from investment
transactions--Class C..................... (1,032,339) (873,357)
Net realized gains from investment
transactions--Class D..................... (1,979,035) (1,751,563)
------------ ------------
(12,983,174) (15,616,778)
------------ ------------
From beneficial interest transactions:
Net proceeds from sale of shares........... 48,966,759 321,833,730
Cost of shares repurchased................. (92,195,428) (119,853,879)
Proceeds from dividends reinvested......... -- 14,704,209
------------ ------------
Net increase (decrease) in net assets
derived from beneficial interest
transactions.............................. (43,228,669) 216,684,060
------------ ------------
Net increase (decrease) in net assets...... (133,395,865) 221,674,941
Net assets:
Beginning of period........................ 495,499,759 273,824,818
------------ ------------
End of period.............................. $362,103,894 $495,499,759
============ ============
</TABLE>
See accompanying notes to financial statements
26
<PAGE>
DIVIDEND GROWTH FUND
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR
FEBRUARY 28, 1995 ENDED
(UNAUDITED) AUGUST 31, 1994
------------------ ---------------
<S> <C> <C>
From operations:
Net investment income....................... $ 1,286,909 $ 5,885,251
Net realized gains from investment
transactions............................... 8,385,502 39,114,080
Net change in unrealized
appreciation/(depreciation) of investments. (11,300,725) (55,515,214)
------------- -------------
Net decrease in net assets resulting from
operations................................. (1,628,314) (10,515,883)
------------- -------------
Dividends and distributions to shareholders
from:
Net investment income--Class A.............. (1,163,754) (3,856,398)
Net investment income--Class B.............. (457,553) (1,961,819)
Net investment income--Class C.............. (102,452) (252,881)
Net investment income--Class D.............. (53,897) (271,483)
Net realized gains from investment
transactions--Class A...................... (11,701,555) (465,992)
Net realized gains from investment
transactions--Class B...................... (15,518,597) (609,981)
Net realized gains from investment
transactions--Class C...................... (828,242) (23,298)
Net realized gains from investment
transactions--Class D...................... (1,953,255) (82,066)
------------- -------------
(31,779,305) (7,523,918)
------------- -------------
From beneficial interest transactions:
Net proceeds from the sale of shares........ 9,968,916 42,483,056
Cost of shares repurchased.................. (105,217,269) (367,026,971)
Proceeds from dividends reinvested.......... 29,628,162 6,947,309
------------- -------------
Net decrease in net assets derived from
beneficial interest transactions........... (65,620,191) (317,596,606)
------------- -------------
Net decrease in net assets.................. (99,027,810) (335,636,407)
Net assets:
Beginning of period......................... 563,699,463 899,335,870
------------- -------------
End of period (including undistributed net
investment income of $326,098 and $816,845
respectively).............................. $ 464,671,653 $ 563,699,463
============= =============
</TABLE>
See accompanying notes to financial statements
27
<PAGE>
GROWTH FUND
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS ENDED FOR THE
FEBRUARY 28, 1995 YEAR ENDED
(UNAUDITED) AUGUST 31, 1994
----------------- ---------------
<S> <C> <C>
From operations:
Net investment income (loss)................. $ 183,472 $ (533,971)
Net realized gains (losses) from investment
transactions................................ (840,133) 5,195,790
Net change in unrealized
appreciation/(depreciation) of investments.. (11,609,297) (2,125,984)
------------ ------------
Net increase (decrease) in net assets
resulting from operations................... (12,265,958) 2,535,835
------------ ------------
Distributions to shareholders from:
Net realized gains from investment
transactions--Class A....................... (170,322) (6,987,744)
Net realized gains from investment
transactions--Class B....................... (120,995) (3,876,826)
Net realized gains from investment
transactions--Class C....................... (37,136) (1,187,915)
Net realized gains from investment
transactions--Class D....................... (33,706) (1,156,865)
------------ ------------
(362,159) (13,209,350)
------------ ------------
From beneficial interest transactions:
Net proceeds from sale of shares............. 18,330,639 136,624,359
Cost of shares repurchased................... (46,299,805) (68,709,767)
Proceeds from dividends reinvested........... 345,390 12,642,821
------------ ------------
Net increase (decrease) in net assets derived
from beneficial interest transactions....... (27,623,776) 80,557,413
------------ ------------
Net increase (decrease) in net assets........ (40,251,893) 69,883,898
Net assets:
Beginning of period.......................... 297,696,695 227,812,797
------------ ------------
End of period (including undistributed net
investment income of $183,472 at February
28, 1995)................................... $257,444,802 $297,696,695
============ ============
</TABLE>
See accompanying notes to financial statements
28
<PAGE>
NOTES TO FINANCIAL STATEMENTS
PAINEWEBBER
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber Atlas Global Growth Fund ("Atlas Global Growth Fund"), PaineWebber
Dividend Growth Fund ("Dividend Growth Fund") and PaineWebber Growth Fund
("Growth Fund") (collectively, the "Funds") are diversified series of
PaineWebber Atlas Fund, PaineWebber America Fund and PaineWebber Olympus Fund
(the "Trusts"), respectively. PaineWebber Olympus Fund also includes
PaineWebber Communications & Technology Growth Fund of which the financial
statements are not included herein. The three Trusts were organized under
separate Declarations of Trust and are registered with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended ("1940
Act"), as diversified open-end investment companies. The trustees have
authority to issue an unlimited number of shares of beneficial interest of
separate series par value $0.001.
Prior to July 1, 1991, each Fund issued only Class A shares. Subsequent to that
date each Fund issued Class A and Class B shares. On August 25, 1991, Growth
Fund and Atlas Global Growth Fund and on February 12, 1992, Dividend Growth
Fund commenced issuing Class C Shares. Class C shares are available only to the
trustee of the PaineWebber Savings Investment Plan on behalf of that Plan. On
July 2, 1992, each Fund commenced issuing Class D shares. Each class represents
interests in the same assets of the applicable Fund and the classes are
identical except for differences in their sales charge structure, ongoing
distribution charges and transfer agency expenses. In addition, Class B shares,
along with their pro-rata reinvested dividends shares, automatically convert to
Class A shares approximately six years after initial issuance. All classes of
shares have equal rights as to voting privileges, except that each class has
exclusive voting rights with respect to its distribution plan.
Valuation of Investments - Securities which are listed on U.S. and foreign
stock exchanges are valued at the last sales price on the day the securities
are being valued or, lacking any sales on such day, at the last available bid
price. In cases where securities are traded on more than one exchange, the
securities are generally valued on the exchange designated by Mitchell Hutchins
Asset Management Inc. ("Mitchell Hutchins"), an affiliate and wholly owned
subsidiary of PaineWebber Incorporated ("PaineWebber") and investment adviser,
administrator and distributor of the Funds, and Mitchell Hutchins Institutional
Investors Inc., ("MHII") the Sub-Adviser to Dividend Growth Fund, as the
primary market. Securities traded in the over-the-counter ("OTC") market and
listed on the National Association of Securities Dealers Quotation System
("NASDAQ") are valued at the last trade price on NASDAQ prior to the time of
valuation; other OTC securities are valued at the last bid price available in
the OTC market prior to the time of valuation. The amortized cost method of
valuation is used to value short term debt instruments with sixty days or less
remaining to maturity. Securities and assets for which market quotations are
not readily available
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
PAINEWEBBER
(including restricted securities subject to limitations as to their sale) are
valued at fair value as determined in good faith by or under the direction of
each Trust's Board of Trustees. All investments quoted in foreign currencies
will be valued daily in U.S. dollars on the basis of the foreign currency
exchange rates prevailing at the time such valuation is determined by each
Fund's custodian.
Foreign currency exchange rates are generally determined prior to the close of
the New York Stock Exchange, Inc. ("NYSE"). Occasionally events affecting the
value of foreign investments and such exchange rates occur between the time at
which they are determined and the close of the NYSE, which in the case of Atlas
Global Growth Fund, would not be reflected in a computation of the Funds' net
asset value. If events materially affecting the value of such securities or
currency exchange rates occurred during such time period, the securities will
be valued at their fair value as determined in good faith by or under the
direction of the Trust's Board of Trustees.
Investment Transactions and Investment Income - Investment transactions are
recorded on the trade date. Realized gains and losses on sales of investments,
futures contracts and foreign exchange transactions are calculated using the
identified cost method. Interest income is recorded on an accrual basis and
dividend income is recorded on the ex-dividend date (except in the case of
Atlas Global Growth Fund, for certain foreign securities which are recorded as
soon after the ex-date as the Fund becomes aware of such dividend).
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.
Foreign Currency Translation - The books and records of Atlas Global Growth
Fund are maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars on the following basis:
(1) market value of investment securities, other assets and liabilities--at
the exchange rates prevailing at the end of the period.
(2) purchases and sales of investment securities, income and expenses--at
the rates of exchange prevailing on the respective dates of such
transactions.
Although the net assets and the market value of Atlas Global Growth Fund are
presented at the foreign exchange rates at the end of the period, Atlas Global
Growth Fund does not generally isolate the effect of unrealized fluctuations in
foreign exchange rates from the effect of the changes in market prices of
securities. However, Atlas Global Growth Fund does isolate the effect of
realized
30
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
PAINEWEBBER
fluctuations in foreign exchange rates when determining the realized gain or
loss upon the sale or maturity of foreign currency-denominated debt obligations
pursuant to federal income tax regulations. Foreign security and currency
transactions may involve certain considerations and risks not typically
associated with investing in U.S. companies and the U.S. Government. These
risks include re-evaluation of currencies and future adverse political and
economic developments, which could cause securities and their markets to be
less liquid and prices more volatile than those of comparable U.S. companies
and the U.S. Government.
Forward Foreign Currency Contracts - Atlas Global Growth Fund may enter into
forward foreign currency exchange contracts ("forward contracts") in connection
with planned purchases or sales of securities or to hedge the U.S. dollar value
of portfolio securities denominated in a particular currency.
Atlas Global Growth Fund has no specific limitation on the percentage of assets
which may be committed to such contracts. Atlas Global Growth Fund may enter
into forward contracts or maintain a net exposure to forward contracts only if
(1) the consummation of the contracts would not obligate Atlas Global Growth
Fund to deliver an amount of foreign currency in excess of the value of the
positions being hedged by such contracts or (2) Atlas Global Growth Fund
maintains cash, U.S. Government securities or liquid, high-grade debt
securities in a segregated account in an amount not less than the value of its
total assets committed to the consummation of the forward contracts.
Risks may arise upon entering into forward contracts from the potential
inability of counterparties to meet the terms of their forward contracts and
from unanticipated movements in the value of foreign currencies relative to the
U.S. dollar.
Futures Contracts - Each of the Funds is permitted to use financial futures
contracts to hedge its portfolio. Upon entering into a financial futures
contract, the Fund is required to pledge to the broker an amount of cash and/or
U.S. Government securities equal to a certain percentage of the contract
amount. This amount is known as the "initial margin." Subsequent payments,
known as "variation margin," are made or received by the Fund each day,
depending on the daily fluctuations in the value of the underlying financial
futures contract. Such variation margin is recorded for financial statement
purposes on a daily basis as unrealized gain or loss, until the financial
futures contract is closed, at which time the gain or loss is reclassified to
realized.
Using financial futures contracts involves various market risks. The Fund is
subject to a number of guidelines which reduce this risk by seeking to ensure
that financial futures contracts are used solely for hedging purposes and not
for leverage. However, imperfect correlations between financial futures and the
instruments being hedged or market disruptions do not normally permit full
control of these risks at all times. Financial futures contracts in which the
Fund invests does not represent exposure to default or other credit risk.
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
PAINEWEBBER
Option Writing - When a Fund writes a call or a put option, an amount equal to
the premium received by the Fund is included in the Fund's Statements of Assets
and Liabilities as an asset and as an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current market value
of the option written. If an option which the Fund has written either expires
on its stipulated expiration date or the Fund enters into a closing purchase
transaction, the Fund realizes a gain (or loss if the cost of a closing
purchase transaction exceeds the premium received when the option was written)
without regard to any unrealized gain or loss on the underlying security, and
the liability related to such option is extinguished. If a call option which
the Fund has written is exercised, the Fund realizes a capital gain or loss
(long-term or short-term, depending on the holding period of the underlying
security) from the sale of the underlying security and the proceeds from the
sale are increased by the premium originally received. If a put option which
the Fund has written is exercised, the amount of the premium originally
received reduces the cost of the security which the Fund purchases upon
exercise of the option.
Certain characteristics of the futures market might increase the risk that
movements in the prices of futures contracts or related options might not
correlate perfectly with movements in the prices of the investments being
hedged. For example, all participants in the futures and related options
markets are subject to daily variation margin calls and might be compelled to
liquidate futures or related options positions whose prices are moving
unfavorably to avoid being subject to further calls. These liquidations could
increase price volatility of the instruments and distort the normal price
relationship between the futures or options and the investments being hedged.
Also, because initial margin deposit requirements in the futures market are
less onerous than margin requirements in the securities markets, there might be
increased participation by speculators in the futures markets. This
participation also might cause temporary price distortions. In addition,
activities of large traders in both the futures and securities markets
involving arbitrage, "program trading" and other investment strategies might
result in temporary price distortions.
Repurchase Agreements - Each 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. Each Fund occasionally
participates in joint repurchase agreement transactions with other funds
managed by Mitchell Hutchins.
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
PAINEWEBBER
Federal Tax Status - Each 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, each Fund intends not to be subject to any
federal excise tax.
During the fiscal year ended August 31, 1994, Dividend Growth Fund utilized all
prior fiscal year's carryover losses of $11,391,318 to offset a portion of net
realized gains during the year.
Dividends - The Funds record dividends and distributions to their shareholders
on the ex-date. The amount of dividends and distributions from net investment
income and net 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 amounts are reclassified within the capital accounts based on their
federal tax-basis treatment; temporary differences do not require
reclassifications. Dividends and distributions which exceed net investment
income and net realized capital gains for financial reporting purposes but not
for tax purposes are reported as dividends in excess of net investment income
or distributions in excess of net realized capital gains. To the extent they
exceed net investment income and net realized capital gains for tax purposes,
they are reported as distributions of paid-in-capital.
INVESTMENT ADVISER AND ADMINISTRATOR
Each of the Funds has entered into an Investment Advisory and Administration
Contract ("Advisory Contract") with Mitchell Hutchins. In accordance with the
Advisory Contract each Fund pays Mitchell Hutchins an investment advisory and
administration fee, which is accrued daily and paid monthly, in accordance with
the following schedule:
<TABLE>
<CAPTION>
ATLAS
GLOBAL DIVIDEND
GROWTH FUND GROWTH FUND GROWTH FUND
----------- ----------- -----------
<S> <C> <C> <C>
As a % of Average Daily Net Assets.......... 0.750% 0.700% 0.750%
</TABLE>
At February 28, 1995, Atlas Global Growth Fund, Dividend Growth Fund and Growth
Fund owed Mitchell Hutchins $216,495, $251,294 and $149,898, respectively, in
investment advisory and administration fees.
For the six months ended February 28, 1995, Atlas Global Growth Fund paid
$22,956 and Dividend Growth Fund paid $27,485 in brokerage commissions to
PaineWebber for transactions executed on behalf of the Funds.
Under a separate contract Mitchell Hutchins (not the Fund) pays MHII, the Sub-
Adviser, a monthly fee, at an annual rate of 0.25% of the average daily net
assets.
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
PAINEWEBBER
In compliance with applicable state securities laws, Mitchell Hutchins will
reimburse the Funds if and to the extent that the aggregate operating expenses
in any fiscal year, exclusive of taxes, distribution fees, interest, brokerage
fees and extraordinary expenses, exceed limitations imposed by various state
regulations. Currently, the most restrictive limitation applicable to the Funds
is 2.5% of the first $30 million of average daily net assets, 2.0% of the next
$70 million and 1.5% of any excess over $100 million. For the six months ended
February 28, 1995, no reimbursements were required pursuant to the above
limitation for any of the Funds.
DISTRIBUTION PLANS
Mitchell Hutchins is the distributor of each Fund's shares and has appointed
PaineWebber as the exclusive dealer for the sale of those shares. Under
separate plans of distribution pertaining to the Class A, Class B and Class D
shares ("Class A Plan", "Class B Plan" and "Class D Plan", collectively
"Plans"), each class of shares of each Fund pays Mitchell Hutchins monthly
service fees at the annual rate of up to 0.25% of the average daily net assets
of Class A, Class B and Class D shares and monthly distribution fees at the
annual rate of up to 0.75% of the average daily net assets on Class B and Class
D shares. At February 28, 1995, Atlas Global Growth Fund, Dividend Growth Fund
and Growth Fund owed Mitchell Hutchins $166,376, $240,480 and $104,847,
respectively, in service and distribution fees.
Mitchell Hutchins also receives the proceeds of the initial sales charges paid
upon the purchase of Class A shares and the contingent deferred sales charges
paid upon certain redemptions of Class B shares. Mitchell Hutchins has informed
each Fund that for the six months ended February 28, 1995, it earned the
following amounts in sales charges:
<TABLE>
<CAPTION>
ATLAS GLOBAL DIVIDEND
GROWTH FUND GROWTH FUND GROWTH FUND
------------ ----------- -----------
<S> <C> <C> <C>
Initial sales charges--Class A............ $ 51,422 $ 24,829 $ 34,659
======== ======== ========
Contingent deferred sales charges--Class
B........................................ $444,841 $948,830 $277,750
======== ======== ========
</TABLE>
TRANSFER AGENCY SERVICE FEES
Each Fund pays PaineWebber an annual fee of $4.00 per active PaineWebber
shareholder account for certain services not provided by the Fund's transfer
agent. For these services during the six months ended February 28, 1995,
PaineWebber earned $94,132, $118,255 and $54,906 from Atlas Global Growth Fund,
Dividend
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
PAINEWEBBER
Growth Fund and Growth Fund, respectively. At February 28, 1995, PaineWebber
was owed $15,014, $18,454 and $8,864 by Atlas Global Growth Fund, Dividend
Growth Fund and Growth Fund, respectively, for transfer agency service fees.
TRANSACTION WITH AFFILIATED COMPANY
An affiliated company represents ownership of at least 5% of the voting
securities of the issuer during the period, as defined in the Investment
Company Act of 1940.
At February 28, 1995, Growth Fund owned 330,000 shares of common stock
representing 5.2% of The Right Start, Inc. with an original cost of $1,679,943
and a market value of $928,125. Additionally, Growth Fund owned 280,000 shares
of common stock representing 7.3% of TDX Corporation with an original cost of
$1,429,375 and a market value of $315,000 at February 28, 1995.
INVESTMENTS IN SECURITIES
For federal income tax purposes, the cost of securities owned at February 28,
1995, was substantially the same as the cost of securities for financial
statement purposes.
At February 28, 1995, the components of net unrealized appreciation of
investments were as follows:
<TABLE>
<CAPTION>
ATLAS GLOBAL DIVIDEND
GROWTH FUND GROWTH FUND GROWTH FUND
------------ ------------ ------------
<S> <C> <C> <C>
Gross appreciation (investments
having an excess of value over
cost)............................... $ 10,841,735 $ 32,058,072 $ 61,333,476
Gross depreciation (investments
having an excess of cost over
value).............................. (59,826,407) (17,624,688) (16,712,310)
------------ ------------ ------------
Net unrealized appreciation/
(depreciation) of investments....... $(48,984,672) $ 14,433,384 $ 44,621,166
============ ============ ============
</TABLE>
For the six months ended February 28, 1995, total aggregate purchases and sales
of portfolio securities, excluding short-term securities, were as follows:
<TABLE>
<CAPTION>
ATLAS GLOBAL DIVIDEND
GROWTH FUND GROWTH FUND GROWTH FUND
------------ ------------ ------------
<S> <C> <C> <C>
Purchases............................ $330,832,223 $305,985,790 $28,181,233
Sales................................ $390,019,452 $387,577,355 $55,720,348
</TABLE>
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
PAINEWEBBER
SHARES OF BENEFICIAL INTEREST
There is an unlimited amount $.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 D
------------------------ ------------------------ ------------------------ ------------------------
FOR THE SIX FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE
FEBRUARY 28, YEAR ENDED FEBRUARY 28, YEAR ENDED FEBRUARY 28, YEAR ENDED FEBRUARY 28, YEAR ENDED
1995 AUGUST 31, 1995 AUGUST 31, 1995 AUGUST 31, 1995 AUGUST 31,
(UNAUDITED) 1994 (UNAUDITED) 1994 (UNAUDITED) 1994 (UNAUDITED) 1994
------------ ---------- ------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Atlas Global Growth
Fund
Shares sold.......... 735,775 4,374,615 1,153,220 8,462,152 377,722 1,277,510 1,036,397 5,544,502
Shares repurchased... (2,116,464) (2,546,254) (2,155,110) (2,070,066) (274,663) (16,493) (1,728,096) (2,942,263)
Shares converted from
Class B to Class A.. 93,535 234,710 (95,618) (238,599) -- -- -- --
Dividends reinvested
resulting in sale of
Fund shares......... -- 447,367 -- 233,092 -- 69,872 -- 121,480
---------- ---------- ---------- ---------- -------- --------- ---------- ----------
Net increase
(decrease) in shares
outstanding......... (1,287,154) 2,510,438 (1,097,508) 6,386,579 103,059 1,330,889 (691,699) 2,723,719
========== ========== ========== ========== ======== ========= ========== ==========
Dividend Growth Fund
Shares sold.......... 119,765 484,780 267,431 1,075,994 80,718 165,180 51,828 355,387
Shares repurchased... (2,261,031) (7,207,269) (2,713,922) (8,992,340) (91,295) (274,997) (420,653) (1,515,548)
Shares converted from
Class B to Class A.. 42,586 199,102 (42,693) (199,711) -- -- -- --
Dividends reinvested
resulting in sale of
Fund shares......... 653,877 193,794 821,955 116,857 51,194 13,616 105,724 16,282
---------- ---------- ---------- ---------- -------- --------- ---------- ----------
Net increase
(decrease) in shares
outstanding......... (1,444,803) (6,329,593) (1,667,229) (7,999,200) 40,617 (96,201) (263,101) (1,143,879)
========== ========== ========== ========== ======== ========= ========== ==========
Growth Fund
Shares sold.......... 200,136 1,549,566 456,952 2,917,179 197,191 461,518 107,198 1,795,537
Shares repurchased... (1,010,912) (1,255,407) (911,698) (985,658) (166,096) (8,765) (339,758) (1,207,404)
Shares converted from
Class B to Class A.. 45,299 106,274 (46,582) (108,639) -- -- -- --
Dividends reinvested
resulting in sale of
Fund shares......... 8,698 322,249 6,276 180,416 1,975 57,056 1,793 55,665
---------- ---------- ---------- ---------- -------- --------- ---------- ----------
Net increase
(decrease) in shares
outstanding......... (756,779) 722,682 (495,052) 2,003,298 33,070 509,809 (230,767) 643,798
========== ========== ========== ========== ======== ========= ========== ==========
</TABLE>
36
<PAGE>
[This Page Intentionally Left Blank]
37
<PAGE>
ATLAS GLOBAL GROWTH FUND
PAINEWEBBER
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD IS PRESENTED BELOW:
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED CLASS A
FEBRUARY 28, FOR THE YEARS ENDED AUGUST 31,
1995 -------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 16.33 $ 15.57 $ 12.72 $ 13.62 $ 14.88 $ 16.02
-------- -------- -------- -------- -------- --------
Income (loss) from
investment operations:
Net investment income
(loss)................. 0.01 0.02 0.08 0.09 0.32 0.33
Net realized and
unrealized gains
(losses) from
investment
transactions........... (2.65) 1.47 2.77 (0.79) (0.13) 0.31
-------- -------- -------- -------- -------- --------
Total income (loss) from
investment operations.. (2.64) 1.49 2.85 (0.70) 0.19 0.64
-------- -------- -------- -------- -------- --------
Less dividends and
distributions from:
Net investment income... -- (0.05) -- (0.20) (0.45) (0.71)
Net realized gains on
investments and foreign
currency transactions.. (0.45) (0.68) -- -- (1.00) (1.07)
-------- -------- -------- -------- -------- --------
Total dividends and
distributions.......... (0.45) (0.73) -- (0.20) (1.45) (1.78)
-------- -------- -------- -------- -------- --------
Net asset value, end of
period................. $ 13.24 $ 16.33 $ 15.57 $ 12.72 $ 13.62 $ 14.88
======== ======== ======== ======== ======== ========
Total return(1)......... (16.40)% 9.34% 22.41% (5.25)% 1.46% 3.95%
======== ======== ======== ======== ======== ========
Ratios/Supplemental
Data:
Net assets, end of
period (000's)......... $155,965 $213,413 $164,378 $148,453 $208,161 $218,033
Expenses to average net
assets................. 1.50%* 1.39% 1.48% 1.72% 1.58% 1.49%
Net investment income
(loss) to average net
assets................. 0.06%* 0.11% 0.48% 0.44% 2.33% 2.21%
Portfolio turnover...... 77.87% 176.16% 258.05% 80.14% 47.34% 64.78%
</TABLE>
- -------------
* Annualized.
+ Commencement of offering of shares.
++ A per share breakdown for Class C shares has been omitted for the period
August 26, 1991 (Commencement of operations) to August 31, 1991 due to
immaterial amounts.
# Based on average number of shares outstanding at each month end.
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gain
distributions at net asset value on the payable date, and a sale at net
asset value on the last day of each period reported. The figures do not
include sales charges; results for Class A and Class B shares would be
lower if sales charges were included. Total return information for periods
less than one year is not annualized.
38
<PAGE>
ATLAS GLOBAL GROWTH FUND
PAINEWEBBER
<TABLE>
<CAPTION>
CLASS B CLASS C++
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS FOR THE YEARS PERIOD SIX MONTHS FOR THE YEARS SIX MONTHS
ENDED ENDED JULY 1, ENDED ENDED ENDED
FEBRUARY 28, AUGUST 31, 1991+ TO FEBRUARY 28, AUGUST 31, FEBRUARY 28,
1995 ---------------------------- AUGUST 31, 1995 ------------------------ 1995
(UNAUDITED) 1994 1993 1992 1991 (UNAUDITED) 1994 1993 1992 (UNAUDITED)
- ------------ -------- ------- ------- ---------- ------------ ------- ------- ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 16.01 $ 15.36 $ 12.64 $ 13.61 $13.09 $ 16.41 $ 15.64 $ 12.73 $13.62 $ 16.10
-------- -------- ------- ------- ------ ------- ------- ------- ------ -------
(0.09) (0.06) 0.09 0.00# (0.01) 0.08 0.04 0.09 0.19 (0.09)
(2.55) 1.40 2.63 (0.80) 0.53 (2.70) 1.49 2.82 (0.86) (2.56)
-------- -------- ------- ------- ------ ------- ------- ------- ------ -------
(2.64) 1.34 2.72 (0.80) 0.52 (2.62) 1.53 2.91 (0.67) (2.65)
-------- -------- ------- ------- ------ ------- ------- ------- ------ -------
-- (0.01) -- (0.17) -- -- (0.08) -- (0.22) --
(0.45) (0.68) -- -- -- (0.45) (0.68) -- -- (0.45)
-------- -------- ------- ------- ------ ------- ------- ------- ------ -------
(0.45) (0.69) -- (0.17) -- (0.45) (0.76) -- (0.22) (0.45)
-------- -------- ------- ------- ------ ------- ------- ------- ------ -------
$ 12.92 $ 16.01 $ 15.36 $ 12.64 $13.61 $13.34 $ 16.41 $ 15.64 $12.73 $13.00
======== ======== ======= ======= ====== ======= ======= ======= ====== =======
(16.68)% 8.48% 21.52% (6.00)% (0.51)% (16.20)% 9.59% 22.86% (5.10)% (16.70)%
======== ======== ======= ======= ====== ======= ======= ======= ====== =======
$119,843 $166,039 $61,231 $13,239 $3,164 $32,992 $38,912 $16,265 $6,327 $53,304
2.30%* 2.19% 2.13% 2.47% 2.51%* 1.21%* 1.13% 1.10% 1.45% 2.27%*
(0.74)%* (0.65)% (0.20)% (0.07)% (0.58)%* 0.35%* 0.40% 0.87% 0.93% (0.70)%*
77.87% 176.16% 258.05% 80.14% 47.34% 77.87% 176.16% 258.05% 80.14% 77.87%
<CAPTION>
CLASS D
FOR THE FOR THE
SIX MONTHS FOR THE YEARS PERIOD
ENDED ENDED JULY 2,
FEBRUARY 28, AUGUST 31, 1992+ TO
1995 ------------------ AUGUST 31,
(UNAUDITED) 1994 1993 1992
- ------------- --------- -------- -----------
<S> <C> <C> <C>
$ 16.01 $ 15.44 $ 12.70 $13.51
- ------------- --------- -------- -----------
(0.09) (0.09) 0.01 (0.02)
(2.55) 1.44 2.73 (0.79)
- ------------- --------- -------- -----------
(2.64) 1.35 2.74 (0.81)
- ------------- --------- -------- -----------
-- (0.01) -- --
(0.45) (0.68) -- --
- ------------- --------- -------- -----------
(0.45) (0.69) -- --
- ------------- --------- -------- -----------
$ 12.92 $ 16.10 $ 15.44 $12.70
============= ========= ======== ===========
(16.68)% 8.54% 21.57% (6.00)%
============= ========= ======== ===========
$119,843 $77,136 $31,952 $ 487
2.30%* 2.20% 1.90% 2.62%*
(0.74)%* (0.68)% 0.04% (1.18)%*
77.87% 176.16% 258.05% 80.14%
</TABLE>
39
<PAGE>
DIVIDEND GROWTH FUND
PAINEWEBBER
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD IS PRESENTED BELOW:
<TABLE>
<CAPTION>
CLASS A
FOR THE YEARS ENDED AUGUST 31,
------------------------------------------------
1994 1993 1992 1991 1990
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 20.43 $20.86 $20.48 $19.26 $15.87 $16.50
-------- -------- -------- -------- -------- -------
Income (loss) from
investment operations:
Net investment income... 0.10 0.28 0.28 0.24 0.19 0.51
Net realized and
unrealized gains
(losses) from
investment
transactions........... (0.05) (0.41) 0.37 1.25 3.50 (0.61)
-------- -------- -------- -------- -------- -------
Total income (loss) from
investment operations.. 0.05 (0.13) 0.65 1.49 3.69 (0.10)
-------- -------- -------- -------- -------- -------
Less dividends and
distributions from:
Net investment income... (0.12) (0.27) (0.27) (0.27) (0.30) (0.53)
Net realized gains on
investments............ (1.21) (0.03) -- -- -- --
-------- -------- -------- -------- -------- -------
Total dividends and
distributions.......... (1.33) (0.30) (0.27) (0.27) (0.30) (0.53)
-------- -------- -------- -------- -------- -------
Net asset value, end of
period................. $ 19.15 $20.43 $20.86 $20.48 $19.26 $15.87
======== ======== ======== ======== ======== =======
Total return(1)......... 0.65% (0.58)% 3.15% 7.78% 23.62% (0.72)%
======== ======== ======== ======== ======== =======
Ratios/Supplemental
Data:
Net assets, end of
period (000's)......... $180,817 $222,432 $359,073 $358,643 $232,555 $58,649
Expenses to average net
assets................. 1.21%* 1.20% 1.13% 1.22% 1.42% 1.41%
Net investment income to
average net assets..... 0.97%* 1.29% 1.33% 1.26% 1.79% 3.11%
Portfolio turnover...... 65.25% 94.32% 36.52% 15.57% 52.00% 32.10%
</TABLE>
- -------
* Annualized.
+ Commencement of offering of shares.
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gain
distributions at net asset value on the payable date, and a sale at net
asset value on the last day of each period reported. The figures do not
include sales charges; results for Class A and Class B shares would be
lower if sales charges were included. Total return information for periods
less than one year is not annualized.
40
<PAGE>
DIVIDEND GROWTH FUND
PAINEWEBBER
- ------------------------------------------------ ------------------------------
<TABLE>
<CAPTION>
CLASS B CLASS C
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS FOR THE YEARS PERIOD SIX MONTHS FOR THE YEARS PERIOD SIX MONTHS
ENDED ENDED JULY 1, ENDED ENDED FEBRUARY 12, ENDED
FEBRUARY 28, AUGUST 31, 1991+ TO FEBRUARY 28, AUGUST 31, 1992+ TO FEBRUARY 28,
1995 ----------------------------- AUGUST 31, 1995 ----------------- AUGUST 31, 1995
(UNAUDITED) 1994 1993 1992 1991 (UNAUDITED) 1994 1993 1992 (UNAUDITED)
- ------------ -------- -------- -------- ---------- ------------ ------- ------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 20.37 $ 20.78 $ 20.41 $19.23 $ 18.04 $ 20.42 $20.86 $20.48 $20.95 $ 20.42
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
0.02 0.10 0.12 0.13 0.02 0.13 0.33 0.33 0.16 0.02
(0.05) (0.37) 0.36 1.20 1.17 (0.05) (0.40) 0.37 (0.49) (0.05)
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
(0.03) (0.27) 0.48 1.33 1.19 0.08 (0.07) 0.70 (0.33) (0.03)
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
(0.03) (0.11) (0.11) (0.15) -- (0.15) (0.34) (0.32) (0.14) (0.03)
(1.21) (0.03) -- -- -- (1.21) (0.03) -- -- (1.21)
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
(1.24) (0.14) (0.11) (0.15) -- (1.36) (0.37) (0.32) (0.14) (1.24)
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
$ 19.10 $ 20.37 $ 20.78 $ 20.41 $ 19.23 $ 19.14 $20.42 $ 20.86 $ 20.48 $ 19.15
======== ======== ======== ======== ======= ======= ======= ======= ======= =======
0.22% (1.31)% 2.34% 6.99% 6.60% 0.81% (0.31)% 3.44% (1.15)% 0.26%
======== ======== ======== ======== ======= ======= ======= ======= ======= =======
$239,383 $289,290 $461,389 $386,275 $57,539 $14,544 $14,690 $17,005 $10,560 $29,928
1.99%* 1.97% 1.90% 1.97% 2.10%* 0.90%* 0.90% 0.86% 0.93%* 2.00%*
0.19%* 0.51% 0.57% 4.90% 1.18%* 1.29%* 1.60% 1.62% 1.56%* 0.18%*
65.25% 94.32% 36.52% 15.57% 52.00% 65.25% 94.32% 36.52% 15.57% 65.25%
<CAPTION>
CLASS D
FOR THE FOR THE
SIX MONTHS FOR THE YEARS PERIOD
ENDED ENDED JULY 2,
FEBRUARY 28, AUGUST 31, 1992+ TO
1995 ------------------ AUGUST 31,
(UNAUDITED) 1994 1993 1992
- ------------- --------- -------- -----------
<S> <C> <C> <C>
$ 20.37 $ 20.83 $ 20.47 $ 20.95
- ------------- --------- -------- -----------
0.02 0.11 0.11 0.02
(0.05) (0.38) 0.37 (0.44)
- ------------- --------- -------- -----------
(0.03) (0.27) 0.48 (0.42)
- ------------- --------- -------- -----------
(0.03) (0.11) (0.12) (0.06)
(1.21) (0.03) -- --
- ------------- --------- -------- -----------
(1.24) (0.14) (0.12) (0.06)
- ------------- --------- -------- -----------
$ 19.10 $ 20.42 $ 20.83 $ 20.47
============= ========= ======== ===========
0.22% (1.29)% 2.35% 2.85%
============= ========= ======== ===========
$239,383 $37,287 $61,869 $13,019
1.99%* 1.94% 1.87% 1.73%*
0.19%* 0.54% 0.61% 0.94%*
65.25% 94.32% 36.52% 15.57%
</TABLE>
41
<PAGE>
GROWTH FUND
PAINEWEBBER
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD IS PRESENTED BELOW:
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------
FOR THE
SIX MONTHS
ENDED
FEBRUARY 28, FOR THE YEARS ENDED AUGUST 31,
1995 ----------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
------------ -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 20.04 $ 20.60 $ 16.78 $ 17.50 $ 13.43 $ 15.57
-------- -------- -------- -------- ------- -------
Income (loss) from
investment operations:
Net investment income
(loss)................. 0.06 -- 0.07 -- 0.02 0.17
Net realized and
unrealized gains
(losses) from
investment
transactions........... (0.86) 0.51 4.37 (0.11) 4.68 (1.16)
-------- -------- -------- -------- ------- -------
Total income (loss) from
investment operations.. (0.80) 0.51 4.44 (0.11) 4.70 (0.99)
-------- -------- -------- -------- ------- -------
Less dividends and
distributions from:
Net investment income... -- -- -- (0.01) (0.17) --
Net realized gains on
investments............ (0.03) (1.07) (0.62) (0.60) (0.46) (1.15)
-------- -------- -------- -------- ------- -------
Total dividends and
distributions.......... (0.03) (1.07) (0.62) (0.61) (0.63) (1.15)
-------- -------- -------- -------- ------- -------
Net asset value, end of
period................. $ 19.21 $ 20.04 $ 20.60 $ 16.78 $ 17.50 $ 13.43
======== ======== ======== ======== ======= =======
Total return(1)......... (8.48)% 2.33% 26.97% (0.85)% 37.02% (7.05)%
======== ======== ======== ======== ======= =======
Ratios/Supplemental
Data:
Net assets, end of
period (000's)......... $120,934 $141,342 $130,353 $102,640 $96,796 $72,805
Expenses to average net
assets................. 1.23%* 1.21% 1.22% 1.43% 1.56% 1.59%
Net investment income
(loss) to average net
assets................. 0.43%* 0.06% 0.38% 0.00% 0.10% 2.96%
Portfolio turnover...... 12.44% 24.41% 35.81% 32.49% 28.59% 39.16%
</TABLE>
- -------
* Annualized
+ Commencement of offering of shares.
++ A per share breakdown for Class C shares has been omitted for the period
August 26, 1991 (commencement of operations) to August 31, 1991 due to
immaterial amounts.
(1) Total return is calculated assuming a $1,000 investment on the first day of
each period reported, reinvestment of all dividends and capital gain
distributions at net asset value on the payable date, and a sale at net
asset value on the last day of each period reported. The figures do not
include sales charges; results for Class A and Class B shares would be
lower if sales charges were included. Total return information for periods
less than one year is not annualized.
42
<PAGE>
GROWTH FUND
PAINEWEBBER
<TABLE>
<CAPTION>
CLASS B CLASS C++
- ----------------------------------------------------- -------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS FOR THE YEARS PERIOD SIX MONTHS FOR THE YEARS
ENDED ENDED JULY 1, ENDED ENDED
FEBRUARY AUGUST 31, 1991+ TO FEBRUARY AUGUST 31,
28, 1995 --------------------------- AUGUST 31, 28, 1995 -------------------------
(UNAUDITED) 1994 1993 1992 1991 (UNAUDITED) 1994 1993 1992
- ----------- ------- ------- ------- ---------- ----------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 19.53 $ 20.25 $ 16.64 $ 17.48 $15.63 $ 20.22 $ 20.71 $ 16.83 $ 17.50
------- ------- ------- ------- ------ ------- ------- ------- -------
(0.05) (0.06) (0.05) (0.06) (0.02) 0.06 0.03 0.08 0.05
(0.80) 0.41 4.28 (0.18) 1.87 (0.84) 0.55 4.42 (0.11)
------- ------- ------- ------- ------ ------- ------- ------- -------
(0.85) 0.35 4.23 (0.24) 1.85 (0.78) 0.58 4.50 (0.06)
------- ------- ------- ------- ------ ------- ------- ------- -------
-- -- -- -- -- -- -- -- (0.01)
(0.03) (1.07) (0.62) (0.60) -- (0.03) (1.07) (0.62) (0.60)
------- ------- ------- ------- ------ ------- ------- ------- -------
(0.03) (1.07) (0.62) (0.60) -- (0.03) (1.07) (0.62) (0.61)
------- ------- ------- ------- ------ ------- ------- ------- -------
$ 18.65 $ 19.53 $ 20.25 $ 16.64 $17.48 $ 19.41 $ 20.22 $ 20.71 $ 16.83
======= ======= ======= ======= ====== ======= ======= ======= =======
(9.16)% 1.55% 25.91% (1.58)% 11.84% (8.19)% 2.67% 27.26% (0.52)%
======= ======= ======= ======= ====== ======= ======= ======= =======
$83,637 $97,272 $60,280 $35,867 $3,804 $29,938 $30,521 $20,706 $11,581
2.01%* 2.00% 2.02% 2.20% 2.24%* 0.93%* 0.94% 0.95% 1.12%
(0.35)%* (0.66)% (0.46)% (0.70)% (0.81)%* 0.73%* 0.40% 0.60% 0.38%
12.44% 24.41% 35.81% 32.49% 28.59% 12.44% 24.41% 35.81% 32.49%
<CAPTION>
CLASS B CLASS D
- ------------------------------------------------------ --------------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS SIX MONTHS FOR THE YEARS PERIOD
ENDED ENDED ENDED JULY 2,
FEBRUARY FEBRUARY AUGUST 31, 1992+ TO
28, 1995 28, 1995 ------------------- AUGUST 31,
(UNAUDITED) (UNAUDITED) 1994 1993 1992
- ------------ ------------ --------- --------- -----------
<S> <C> <C> <C> <C>
$ 19.53 $ 19.67 $ 20.38 $ 16.75 $17.04
- ------------ ------------ --------- --------- -----------
(0.05) (0.06) (0.08) (0.06) (0.01)
(0.80) (0.80) 0.44 4.31 (0.28)
- ------------ ------------ --------- --------- -----------
(0.85) (0.86) 0.36 4.25 (0.29)
- ------------ ------------ --------- --------- -----------
-- -- -- -- --
(0.03) (0.03) (1.07) (0.62) --
- ------------ ------------ --------- --------- -----------
(0.03) (0.03) (1.07) (0.62) --
- ------------ ------------ --------- --------- -----------
$ 18.65 $ 18.78 $ 19.67 $ 20.38 $16.75
============ ============ ========= ========= ===========
(9.16)% (9.15)% 1.59% 25.86% (2.95)%
============ ============ ========= ========= ===========
$83,637 $22,936 $28,561 $16,474 $2,275
2.01%* 1.99%* 1.98% 2.06% 1.98%*
(0.35)%* (0.34)%* (0.65)% (0.69)% (0.65)%*
12.44% 12.44% 24.41% 35.81% 32.49%
</TABLE>
43
