<PAGE>
PAINEWEBBER UTILITY INCOME FUND
RECENT PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN/1/
--------------------------------------- ----------------------------
12 MONTHS 6 MONTHS
5/31/95 11/30/94 5/31/94 ENDED 5/31/95 ENDED 5/31/95
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A
Shares $ 9.14 $8.31 $8.60 12.51% 12.95%
-------------------------------------------------------------------------------------
Class B
Shares 9.13 8.31 8.59 11.67% 12.42%
-------------------------------------------------------------------------------------
Class D
Shares 9.13 8.31 8.59 11.66% 12.40%
-------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS A SHARES
<CAPTION>
NET ASSET VALUE
------------------ CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/02/93 -
12/31/93 $10.00 $9.70 -- $0.2340 - 0.70%
-------------------------------------------------------------------------------------
1994 9.70 8.28 -- 0.4829 - 9.71
-------------------------------------------------------------------------------------
01/01/95 -
05/31/95 8.28 9.14 -- 0.1829 12.71
-------------------------------------------------------------------------------------
Total: $0.0000 $0.8998
-------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 5/31/95: 1.05%
-------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS B SHARES
<CAPTION>
NET ASSET VALUE
------------------ CAPITAL GAINS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID RETURN/1/
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
07/02/93 -
12/31/93 $10.00 $9.70 -- $0.2010 - 1.02%
-------------------------------------------------------------------------------------
1994 9.70 8.28 -- 0.4169 -10.40
-------------------------------------------------------------------------------------
01/01/95 -
05/31/95 8.28 9.13 -- 0.1587 12.28
-------------------------------------------------------------------------------------
Total: $0.0000 $0.7766
-------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 5/31/95: -0.43%
-------------------------------------------------------------------------------------
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>
07/02/93 -
12/31/93 $10.00 $9.70 -- $0.2020 - 1.01%
-------------------------------------------------------------------------------------
1994 9.70 8.28 -- 0.4158 -10.41
-------------------------------------------------------------------------------------
01/01/95 -
05/31/95 8.28 9.13 -- 0.1579 12.27
-------------------------------------------------------------------------------------
Total: $0.0000 $0.7757
-------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 5/31/95: -0.44%
-------------------------------------------------------------------------------------
</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.
1
<PAGE>
PAINEWEBBER UTILITY INCOME FUND
RECENT PERFORMANCE RESULTS (UNAUDITED) (CONCLUDED)
AVERAGE ANNUAL RETURN
<TABLE>
<CAPTION>
% RETURN AFTER
DEDUCTING
% RETURN WITHOUT MAXIMUM SALES
SALES CHARGE CHARGE
------------------- -------------------
CLASS CLASS
------------------- -------------------
A* B** D*** A* B** D
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Twelve Months Ended 06/30/95 14.31% 13.45% 13.57% 9.12% 8.45% 13.57%
----------------------------------------------------------------------------
Five Years Ended 06/30/95 N/A N/A N/A N/A N/A N/A
----------------------------------------------------------------------------
Commencement of Operations+ Ended
06/30/95 0.53 -0.19 -0.19 -1.76 -2.22 -0.19
----------------------------------------------------------------------------
</TABLE>
*Maximum sales charge for Class A shares is 4.5% of the public offering price.
Class A shares bear ongoing 12b-1 service fees.
**Maximum contingent deferred sales charge for Class B shares is 5.0% 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 was July 2, 1993 for Class A, Class B and Class D
shares.
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>
PAINEWEBBER UTILITY INCOME FUND
PORTFOLIO OF INVESTMENTS MAY 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- -------------- -----------
<C> <S> <C> <C> <C>
Corporate Bonds - 41.17%
$ 2,000 BankAmerica Corp. ...... 06/01/03 6.875% $ 1,985,212
Century Telephone
1,550 Enterprises, Inc. ..... 05/01/24 8.250 1,628,800
Commonwealth Edison
2,000 Co. ................... 04/15/23 8.000 1,976,602
3,000 Duquesne Light Co. ..... 06/15/04 6.625 2,886,648
2,000 Georgia Power Co. ...... 02/01/23 7.950 2,067,500
Houston Lighting & Power
1,000 Co. ................... 04/21/03 6.500 974,509
1,700 Hydro-Quebec............ 02/01/13 8.000 1,763,204
1,000 Illinois Power Co. ..... 08/01/03 6.500 964,153
Long Island Lighting
850 Co. ................... 07/01/24 9.625 869,449
MCI Communications
2,000 Corp. ................. 03/15/24 7.750 2,029,966
Philadelphia Electric
2,500 Co. ................... 05/01/23 7.750 2,490,625
Public Service Electric
2,000 and Gas Co. ........... 05/01/04 to 03/01/23 6.500 to 7.500 1,933,335
Tele-Communications,
3,150 Inc. .................. 01/15/03 to 02/15/23 8.250 to 8.750 3,098,346
Texas Utilities Electric
2,000 Co. ................... 06/01/02 8.000 2,110,392
-----------
Total
Corporate
Bonds
(cost -
$27,440,793). 26,778,741
-----------
<CAPTION>
NUMBER OF
SHARES
---------
<C> <S> <C>
Common Stocks - 57.21%
20,000 Ameritech Corporation........................................ 887,500
30,000 Bell Atlantic Corporation.................................... 1,672,500
50,000 BellSouth Corporation........................................ 3,068,750
100,000 DPL Inc. .................................................... 2,200,000
35,000 Duke Power Company........................................... 1,461,250
50,000 Eastern Utilities Associates................................. 1,156,250
50,000 FPL Group, Inc. ............................................. 1,962,500
100,000 General Public Utilities Corp. .............................. 3,000,000
120,000 IES Industries Inc. ......................................... 2,655,000
90,000 NIPSCO Industries Inc. ...................................... 3,105,000
50,000 NYNEX Corp. ................................................. 2,087,500
100,000 PECO Energy Co. ............................................. 2,812,500
50,000 Public Service Company of Colorado........................... 1,637,500
100,000 Public Service Enterprise Group Inc. ........................ 2,975,000
50,000 SBC Communications Inc. ..................................... 2,250,000
100,000 Southern Co. ................................................ 2,212,500
50,000 U.S. West Inc. .............................................. 2,062,500
-----------
Total Common Stocks (cost - $35,993,815)............................... 37,206,250
-----------
</TABLE>
3
<PAGE>
PAINEWEBBER UTILITY INCOME FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED) MAY 31, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
--------- ----------------- ----------- -----------
<C> <S> <C> <C> <C>
Repurchase Agreement - 1.11%
$ 725 Repurchase Agreement
dated 5/31/95 with
State Street Bank &
Trust Co.,
collateralized by
$722,829 U.S. Treasury
Notes, 6.875% due
03/31/97; proceeds
$725,111 (cost-
$725,000)............. 6/01/95 5.500% $ 725,000
-----------
Total Investments (cost -
$64,159,608) - 99.49%............ 64,709,991
Other assets in excess of
liabilities - 0.51%............... 332,200
-----------
Net Assets - 100.00%.............. $65,042,191
===========
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
PAINEWEBBER UTILITY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1995 (UNAUDITED)
<TABLE>
<S> <C>
Assets
Investments in securities, at value (cost $64,159,608)............ $64,709,991
Cash.............................................................. 4,297
Interest and dividends receivable................................. 779,666
Receivable for shares of beneficial interest sold................. 40,818
Deferred organizational expenses.................................. 87,103
Other assets...................................................... 52,243
-----------
Total assets...................................................... 65,674,118
-----------
Liabilities
Payable for shares of beneficial interest repurchased............. 338,172
Payable to affiliate.............................................. 86,622
Accrued expenses and other liabilities............................ 207,133
-----------
Total liabilities................................................. 631,927
-----------
Net Assets
Beneficial interest--$0.001 par value (unlimited amount
authorized)...................................................... 73,968,458
Undistributed net investment income............................... 42,502
Accumulated net realized losses from investment transactions...... (9,519,152)
Net unrealized appreciation of investments........................ 550,383
-----------
Net assets........................................................ $65,042,191
===========
Class A:
Net assets........................................................ $11,701,440
-----------
Shares outstanding................................................ 1,280,868
-----------
Net asset and redemption value per share.......................... $9.14
=====
Maximum offering price per share (net asset value plus sales
charge of 4.50% of offering price)............................... $9.57
=====
Class B:
Net assets........................................................ $39,749,720
-----------
Shares outstanding................................................ 4,352,918
-----------
Net asset value and offering price per share...................... $9.13
=====
Class D:
Net assets........................................................ $13,591,031
-----------
Shares outstanding................................................ 1,488,552
-----------
Net asset value, offering price and redemption value per share.... $9.13
=====
</TABLE>
See accompanying notes to financial statements
5
<PAGE>
PAINEWEBBER UTILITY INCOME FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)
<TABLE>
<S> <C>
Investment Income:
Interest.......................................................... $1,082,946
Dividends......................................................... 1,133,825
----------
2,216,771
----------
Expenses:
Investment advisory and administration............................ 222,614
Service fees--Class A............................................. 14,453
Service and distribution fees--Class B............................ 192,388
Service and distribution fees--Class D............................ 67,818
Reports and notices to shareholders............................... 44,855
Transfer agency and service fees.................................. 43,898
Custody and accounting............................................ 38,416
State registration fees........................................... 32,871
Legal and audit................................................... 25,132
Amortization of organizational expenses........................... 14,054
Trustees' fees.................................................... 3,116
Other expenses.................................................... 13,658
----------
713,273
----------
Net investment income............................................. 1,503,498
----------
Realized and unrealized gains (losses) from investment
transactions:
Net realized losses from investment transactions.................. (500,661)
Net change in unrealized appreciation/depreciation of investments. 6,457,560
----------
Net realized and unrealized gains from investment transactions ... 5,956,899
----------
Net increase in net assets resulting from operations.............. $7,460,397
==========
</TABLE>
See accompanying notes to financial statements
6
<PAGE>
PAINEWEBBER UTILITY INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS ENDED FOR THE
MAY 31, 1995 YEAR ENDED
(UNAUDITED) NOVEMBER 30, 1994
---------------- -----------------
<S> <C> <C>
From operations:
Net investment income....................... $ 1,503,498 $ 3,585,702
Net realized losses from investment
transactions............................... (500,661) (8,233,382)
Net change in unrealized
appreciation/depreciation of investments... 6,457,560 (2,985,242)
------------ -----------
Net increase (decrease) in net assets
resulting from operations.................. 7,460,397 (7,632,922)
------------ -----------
Dividends to shareholders from:
Net investment income - Class A............. (312,166) (878,315)
Net investment income - Class B............. (891,447) (2,146,859)
Net investment income - Class D............. (311,835) (838,829)
------------ -----------
(1,515,448) (3,864,003)
------------ -----------
From beneficial interest transactions:
Net proceeds from the sale of beneficial
interest................................... 8,020,755 31,602,333
Cost of beneficial interest repurchased..... (13,628,338) (38,779,290)
Proceeds from dividends reinvested.......... 1,095,116 2,811,517
------------ -----------
Net decrease in net assets from beneficial
interest transactions...................... (4,512,467) (4,365,440)
------------ -----------
Net increase (decrease) in net assets....... 1,432,482 (15,862,365)
Net assets:
Beginning of period......................... 63,609,709 79,472,074
------------ -----------
End of period (including undistributed net
investment income of $42,502 and $54,452,
respectively).............................. $ 65,042,191 $63,609,709
============ ===========
</TABLE>
See accompanying notes to financial statements
7
<PAGE>
PAINEWEBBER NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber Managed Investments Trust (the "Trust") was organized under
Massachusetts law by a Declaration of Trust dated November 21, 1986 and is
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940, as amended, as an open-end, diversified investment
company. The Trust is a series mutual fund with six funds: PaineWebber Utility
Income Fund (the "Fund"), PaineWebber U.S. Government Income Fund, PaineWebber
Investment Grade Income Fund, PaineWebber High Income Fund, PaineWebber Short-
Term U.S. Government Income Fund and PaineWebber Short-Term U.S. Government
Income Fund for Credit Unions. The financial statements for PaineWebber U.S.
Government Income Fund, PaineWebber Investment Grade Income Fund, PaineWebber
High Income Fund, PaineWebber Short-Term U.S. Government Income Fund and
PaineWebber Short-Term U.S. Government Income Fund for Credit Unions are not
included herein.
Organizational Matters - Prior to commencing its operations, the Fund had no
activities other than organizational matters and activities related to the
initial public offering and the issuance, at net asset value, of 1 Class A
share, 1 Class B share and 1 Class D share of the Fund to Mitchell Hutchins
Asset Management Inc. ("Mitchell Hutchins"), a wholly owned subsidiary of
PaineWebber Incorporated ("PaineWebber") and investment adviser and
administrator of the Fund. Organization costs aggregating $141,033, have been
deferred and are being amortized, using the straight-line method over a period
not to exceed five years from the commencement of operations of the Fund.
On July 2, 1993, the Fund commenced operations for Class A, B and D Shares.
Each class represents interests in the same assets of the Fund and the Classes
are identical except for differences in their sales charge structures, ongoing
distribution charges and certain transfer agency expenses. In addition, Class B
shares and all corresponding dividend reinvested shares automatically convert
to Class A shares approximately six years after issuance. All classes of shares
have equal voting privileges, except that each class has exclusive voting
rights with respect to its distribution plan.
Valuation of Investments - Where market quotations are readily available,
portfolio securities are valued thereon, provided such quotations adequately
reflect, in the judgment of Mitchell Hutchins, the fair value of the
securities. When market quotations are not readily available, securities are
valued based upon appraisals derived from information concerning those
securities or similar securities received from recognized dealers in those
securities. All other securities are valued at fair value as determined in good
faith by or under the direction of the Trust's board of trustees. The amortized
cost method of valuation, which approximates market value, is used to value
debt obligations with 60 days or less remaining to maturity, unless the Trust's
board of trustees determines that this does not represent fair value.
8
<PAGE>
PAINEWEBBER NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
The ability of the issuers of the debt securities held by the Fund to meet
their obligations may be affected by economic developments, including those
particular to a specific industry, country, or region.
Investment Transactions and Investment Income - Investment transactions are
recorded on the trade date. Realized gains and losses from investment
transactions are calculated using the identified cost method. Interest income
is recorded on an accrual basis. Dividend income is recorded for on the ex-
dividend date. Discounts are accreted and premiums are amortized as adjustments
to interest income and the identified costs of investments.
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.
Repurchase Agreements - The Fund's custodian takes possession of the collateral
pledged for investments in repurchase agreements. The underlying collateral is
valued daily on a mark-to-market basis to ensure that the value, including
accrued interest, is at least equal to the repurchase price. In the event of
default of the obligation to repurchase, the Fund has the right to liquidate
the collateral and apply the proceeds in satisfaction of the obligation. Under
certain circumstances, in the event of default or bankruptcy by the other party
to the agreement, realization and/or retention of the collateral may be subject
to legal proceedings. The Fund occasionally participates in joint repurchase
agreement transactions with other funds managed by Mitchell Hutchins.
Federal Tax Status - The Fund intends to distribute all of its taxable income
and to comply with the other requirements of the Internal Revenue Code
applicable to regulated investment companies. Accordingly, no provision for
federal income taxes is required. In addition, by distributing during each
calendar year substantially all of its net investment income, capital gains and
certain other amounts, if any, the Fund intends not to be subject to a federal
excise tax. At November 30, 1994, the Fund had a net capital loss carryforward
of $9,018,491. The loss carryforward is available as a reduction, to the extent
provided in the regulations, of future net realized capital gains, and will
expire between November 30, 2001 and November 30, 2002.
Dividends and Distributions to Shareholders - The Fund records dividends and
distributions to its shareholders on the ex-date. The Fund declares dividends
on a monthly basis from net investment income. 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
9
<PAGE>
PAINEWEBBER NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
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
The Trust's board of trustees has approved an Investment Advisory and
Administration Contract ("Advisory Contract") with Mitchell Hutchins, under
which Mitchell Hutchins serves as investment adviser and administrator of the
Fund. In accordance with the Advisory Contract, the Fund pays Mitchell Hutchins
an investment advisory and administration fee, which is accrued daily and paid
monthly, at the annual rate of 0.70% of the Fund's average daily net assets. At
May 31, 1995, the Fund owed Mitchell Hutchins $37,809 in investment advisory
and administration fees.
In compliance with applicable state securities laws, Mitchell Hutchins will
reimburse the Fund 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 Fund
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
May 31, 1995, no reimbursements were required pursuant to the above limitation
for the Fund.
DISTRIBUTION PLANS
Mitchell Hutchins is the distributor of the 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, the Fund pays Mitchell Hutchins monthly service fees at the annual rate
of 0.25% of the average daily net assets of each Class of shares and monthly
distribution fees at the annual rate of 0.75% of the average daily net assets
of Class B shares and Class D shares. At May 31, 1995, the Fund owed Mitchell
Hutchins $46,733 in service and distribution fees.
Mitchell Hutchins also receives the proceeds of the initial sales charges paid
by the shareholders upon the purchase of Class A shares and the contingent
deferred sales charges paid by the shareholders upon certain redemptions of
Class B shares. Mitchell Hutchins has informed the Fund that for the six months
ended May 31, 1995, it earned the following amounts in sales charges:
<TABLE>
<S> <C>
Initial sales charges - Class A....................................... $ 8,999
Contingent deferred sales charges - Class B........................... $128,257
</TABLE>
10
<PAGE>
PAINEWEBBER NOTES TO FINANCIAL STATEMENTS - (CONCLUDED)
TRANSFER AGENCY SERVICE FEES
The 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 for the six months ended May 31, 1995, PaineWebber
earned $12,862 and was owed $2,080 in shareholder service fees from the Fund.
INVESTMENTS IN SECURITIES
For federal income tax purposes, the cost of securities owned at May 31, 1995
was substantially the same as the cost of securities for financial statement
purposes.
At May 31, 1995, the components of the net unrealized appreciation of
investments were as follows:
Gross appreciation (investments having an excess of value over
cost). $ 3,208,215
Gross depreciation (investments having an excess of cost over
value). (2,657,832)
-----------
Net unrealized appreciation of investments...................... $ 550,383
===========
For the six months ended May 31, 1995, total aggregate purchases and sales of
portfolio securities, excluding short-term securities, were as follows:
Purchases............................................................ $ 0
Sales................................................................ $3,480,529
SHARES OF BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value shares of beneficial interest
authorized. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS D
----------------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ----------- ---------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Six months ended May 31,
1995:
Shares sold............. 133,114 $ 1,140,281 623,211 $5,373,151 175,242 $1,507,323
Shares repurchased...... (384,701) (3,267,321) (813,910) (7,016,923) (390,254) (3,344,095)
Dividends reinvested in
additional Fund shares. 25,314 219,464 72,856 631,713 28,161 243,939
---------- ----------- ---------- ----------- ---------- -----------
Net decrease............ (226,273) $(1,907,576) (117,843) $(1,012,059) (186,851) $(1,592,833)
========== =========== ========== =========== ========== ===========
Year ended November 30,
1994:
Shares sold............. 844,216 $ 7,523,292 1,553,212 $13,963,371 1,130,190 $10,115,670
Shares repurchased...... (1,087,232) (9,501,218) (1,959,760) (17,168,265) (1,378,485) (12,109,807)
Dividends reinvested in
additional Fund shares. 70,501 620,904 176,677 1,553,050 72,624 637,562
---------- ----------- ---------- ----------- ---------- -----------
Net decrease............ (172,515) $(1,357,022) (229,871) $(1,651,844) (175,671) $(1,356,575)
========== =========== ========== =========== ========== ===========
</TABLE>
11
<PAGE>
PAINEWEBBER UTILITY INCOME FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT EACH PERIOD IS PRESENTED BELOW:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS D
------------------------------- ------------------------------- -------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED YEAR JULY 2, ENDED YEAR JULY 2, ENDED YEAR JULY 2,
MAY 31, ENDED 1993# TO MAY 31, ENDED 1993# TO MAY 31, ENDED 1993# TO
1995 NOVEMBER NOVEMBER 1995 NOVEMBER NOVEMBER 1995 NOVEMBER NOVEMBER
(UNAUDITED) 30, 1994 30, 1993 (UNAUDITED) 30, 1994 30, 1993 (UNAUDITED) 30, 1994 30, 1993
----------- -------- -------- ----------- -------- -------- ----------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 8.31 $ 9.66 $ 10.00 $ 8.31 $ 9.65 $ 10.00 $ 8.31 $ 9.65 $ 10.00
------- ------- ------- ------- ------- ------- ------- ------- -------
Net increase (decrease)
from investment
operations:
Net investment income... 0.23 0.48 0.20 0.20 0.42 0.17 0.20 0.42 0.16
Net realized and
unrealized gains
(losses)
from investment
transactions........... 0.83 (1.31) (0.39) 0.82 (1.31) (0.39) 0.82 (1.31) (0.38)
------- ------- ------- ------- ------- ------- ------- ------- -------
Net decrease in net
asset value from
operations............. 1.06 (0.83) (0.19) 1.02 (0.89) (0.22) 1.02 (0.89) (0.22)
------- ------- ------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net
investment income...... (0.23) (0.52) (0.15) (0.20) (0.45) (0.13) (0.20) (0.45) (0.13)
------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value,
end of period.......... $ 9.14 $ 8.31 $ 9.66 $ 9.13 $ 8.31 $ 9.65 $ 9.13 $ 8.31 $ 9.65
======= ======= ======= ======= ======= ======= ======= ======= =======
Total investment
return(1).............. 12.95% (8.76)% (1.95)% 12.42% (9.35)% (2.29)% 12.40% (9.36)% (2.28)%
======= ======= ======= ======= ======= ======= ======= ======= =======
Ratios/Supplemental Data:
Net assets,
end of period
(000's omitted)........ $11,701 $12,532 $16,224 $39,750 $37,156 $45,382 $13,591 $13,922 $17,866
Ratio of expenses to
average net assets..... 1.63%* 1.58% 1.55%* 2.37%* 2.33% 2.29%* 2.39%* 2.32% 2.29%*
Ratio of net investment
income to average net
assets................. 5.34%* 5.49% 5.38%* 4.59%* 4.72% 4.67%* 4.59%* 4.69% 4.67%*
Portfolio turnover rate. 0% 91.60% 13.11% 0% 91.60% 13.11% 0% 91.60% 13.11%
</TABLE>
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# Commencement of offering of shares
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends at net
asset value on the payable dates, and a sale at net asset value on the last
day of each period reported. The figures do not include sales charges;
results for Class A and Class B would be lower if sales charges were
included. Total investment returns have not been annualized for periods of
less than one year.
12
