<PAGE>
PAINEWEBBER
SHORT-TERM
U.S. GOVERNMENT
INCOME FUND
FOR CREDIT UNIONS
SEMI ANNUAL REPORT
MAY 31, 1995
<PAGE>
PAINEWEBBER SHORT-TERM U.S. GOVERNMENT INCOME FUND FOR CREDIT UNIONS
--------------------------------------------------------------------------------
Portfolio of Investments
May 31, 1995 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
------------ --------------------- --------------- ----------
<S> <C> <C> <C>
U.S. GOVERNMENT SECURITIES--94.00%
$4,000 United States Treasury
Notes....................... 03/31/97 to 11/15/97 6.625 to 7.375% $4,072,186
1,800 United States Treasury
Bills....................... 06/01/95 to 06/08/95 5.515 to 5.520 1,798,390
----------
Total U.S. Government Securities
(cost--$5,796,113).......................... 5,870,576
----------
REPURCHASE AGREEMENT--4.08%
255 Repurchase Agreement dated
05/31/95 with State Street
Bank & Trust Co.,
collateralized by $254,237
U.S. Treasury Notes, 6.875%
due 03/31/97; proceeds:
$255,039 (cost--$255,000)... 06/01/95 5.500 255,000
----------
Total Investments
(cost--$6,051,113)--98.08%.................. 6,125,576
Other assets in excess of
liabilities--1.92%.......................... 119,620
----------
Net Assets--100.00%......................... $6,245,196
----------
----------
</TABLE>
See accompanying notes to financial statements
1
<PAGE>
PAINEWEBBER SHORT-TERM U.S. GOVERNMENT INCOME FUND FOR CREDIT UNIONS
--------------------------------------------------------------------------------
Statement of Assets and Liabilities
May 31, 1995 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments in securities, at value
(cost--$6,051,113)........................... $6,125,576
Cash........................................... 3,043
Interest receivable............................ 37,114
Deferred organizational costs.................. 132,184
Receivable from affiliate...................... 29,713
Other assets................................... 7,750
----------
Total assets................................ 6,335,380
----------
LIABILITIES
Dividends payable.............................. 9,035
Payable to affiliate........................... 1,389
Accrued expenses and other liabilities......... 79,760
----------
Total liabilities........................... 90,184
----------
NET ASSETS
Beneficial interest--$0.001 par value;
(unlimited amount authorized)................ 6,918,257
Accumulated net realized losses from investment
transactions................................. (747,524)
Net unrealized appreciation of investments..... 74,463
----------
Net assets..................................... $6,245,196
----------
----------
CLASS A:
Net assets..................................... $5,926,363
----------
Shares outstanding............................. 603,909
----------
Net asset value and redemption value per
share........................................ $9.81
Maximum offering price per share (net asset
value plus sales charge
of 2.50% of offering price).................. $10.06
CLASS D:
Net assets..................................... $ 318,833
----------
Shares outstanding............................. 32,492
----------
Net asset value, offering price and redemption
value per share.............................. $9.81
</TABLE>
See accompanying notes to financial statements
2
<PAGE>
PAINEWEBBER SHORT-TERM U.S. GOVERNMENT INCOME FUND FOR CREDIT UNIONS
--------------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended May 31, 1995 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest....................................... $ 244,195
---------
EXPENSES:
Investment advisory and administration......... 10,927
Service fees--Class A.......................... 8,437
Service and distribution fees--Class D......... 1,341
Custody and accounting......................... 26,090
Amortization of organizational expenses........ 23,893
Legal and audit................................ 21,851
Reports and notices to shareholders............ 18,365
Federal and state registration................. 16,773
Transfer agency and service fees............... 4,781
Trustees' fees................................. 3,125
Other expenses................................. 7,419
---------
143,002
Less: Fee waivers and expense reimbursements... (40,758)
---------
Net expenses................................... 102,244
---------
NET INVESTMENT INCOME............................. 141,951
---------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM
INVESTMENT ACTIVITIES:
Net realized losses from investment
transactions................................. (155,684)
Net change in unrealized
appreciation/depreciation of investments..... 282,858
---------
NET REALIZED AND UNREALIZED GAINS FROM INVESTMENT
ACTIVITIES....................................... 127,174
---------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS....................................... $ 269,125
---------
---------
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
PAINEWEBBER SHORT-TERM U.S. GOVERNMENT INCOME FUND FOR CREDIT UNIONS
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For The Period
For The Six Months December 7, 1993
Ended (commencement
May 31, 1995 of operations)
(unaudited) to November 30, 1994
------------------ --------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income........... $ 141,951 $ 759,217
Net realized losses from
investment transactions....... (155,684) (591,840)
Net change in unrealized
appreciation/depreciation of
investments................... 282,858 (208,395)
------------ ------------
Net increase (decrease) in net
assets resulting from
operations.................... 269,125 (41,018)
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income--Class
A............................. (131,493) (632,410)
Net investment income--Class
D............................. (10,458) (126,807)
------------ ------------
(141,951) (759,217)
------------ ------------
FROM BENEFICIAL INTEREST
TRANSACTIONS:
Proceeds from the sale of
shares........................ -- 34,003,391
Cost of shares repurchased...... (5,663,975) (21,738,631)
Proceeds from dividends
reinvested.................... 20,064 297,388
------------- ------------
Net increase (decrease) in net
assets from beneficial
interest transactions......... (5,643,911) 12,562,148
------------ ------------
Net increase (decrease) in net
assets........................ (5,516,737) 11,761,913
NET ASSETS:
Beginning of period............. 11,761,933 20
------------ ------------
End of period................... $ 6,245,196 $ 11,761,933
------------ ------------
------------ ------------
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
PAINEWEBBER SHORT-TERM U.S. GOVERNMENT INCOME FUND FOR CREDIT UNIONS
--------------------------------------------------------------------------------
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 Short-Term U.S.
Government Income Fund for Credit Unions (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 Utility Income Fund. 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 Utility Income Fund 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
and 1 Class D share of the Fund to PaineWebber Incorporated ('PaineWebber').
Organization costs of $203,407 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.
On December 7, 1993 the Fund commenced operations for Classes A 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. Both 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 based upon market quotations, provided such
quotations adequately reflect, in the judgment of Mitchell Hutchins Asset
Management Inc. ('Mitchell Hutchins'), a wholly owned subsidiary of PaineWebber
and investment adviser and administrator of the Fund, 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.
The ability of the issuers of the debt securities held by the Fund to meet
their obligations may be affected by economic developments, including those
particular to a specific industry or region.
Investment 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. Discounts are accreted and premiums are amortized
as adjustments to interest income and the identified cost of investments.
5
<PAGE>
PAINEWEBBER SHORT-TERM U.S. GOVERNMENT INCOME FUND FOR CREDIT UNIONS
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
Income, expenses (excluding class-specific expenses) and
realized/unrealized gains/losses are allocated proportionately to each class of
shares 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.
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 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
$591,840. The loss carryforward is available as a reduction, to the extent
provided in the regulations, of future net realized capital gains and will
expire November 30, 2002.
Dividends--Dividends and distributions to shareholders are recorded on the
ex-dividend date. The Fund declares dividends on a daily basis from net
investment income. Dividends from net investment income and distributions from
realized gains from investment transactions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. Net capital gains, if any, will be distributed at least annually,
but the Fund may make more frequent distributions of such gains, if necessary,
to avoid income or excise taxes.
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 0.30% of the Fund's average daily net assets. For
the six months ended May 31, 1995, Mitchell Hutchins earned and waived $10,927
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,
6
<PAGE>
PAINEWEBBER SHORT-TERM U.S. GOVERNMENT INCOME FUND FOR CREDIT UNIONS
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
--------------------------------------------------------------------------------
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, $29,713 of
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 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 0.25% of the average daily net assets of Class D shares.
At May 31, 1995, the Fund owed Mitchell Hutchins $1,389 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. Mitchell Hutchins
has informed the Fund that for the six months ended May 31, 1995, it received no
sales charges on Class A shares.
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 and waived $120 of 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:
<TABLE>
<S> <C>
Gross appreciation (investments having an excess
of value over cost)............................. $74,463
Gross depreciation (investments having an excess
of cost over value)............................. --
-------
Net unrealized appreciation of investments........ $74,463
-------
-------
</TABLE>
For the six months ended May 31, 1995, total aggregate purchases and sales
of portfolio securities, excluding short-term securities, were as follows:
<TABLE>
<S> <C>
Purchases......................................... $ 3,997,578
Sales............................................. $11,518,262
</TABLE>
7
<PAGE>
PAINEWEBBER SHORT-TERM U.S. GOVERNMENT INCOME FUND FOR CREDIT UNIONS
--------------------------------------------------------------------------------
Notes to Financial Statements (concluded)
--------------------------------------------------------------------------------
SHARES OF BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value of beneficial interest
authorized. Transactions in shares of beneficial interest for the periods shown
were as follows:
<TABLE>
<CAPTION>
Class A Class D
For the Six Months Ended May -------------------------- -----------------------
31, 1995: Shares Amount Shares Amount
------------------------------ ---------- ------------ -------- -----------
<S> <C> <C> <C> <C>
Shares sold................... -- -- -- --
Shares repurchased............ (505,095) $ (4,826,404) (87,273) $ (837,571)
Dividends reinvested in 1,487 14,323 596 5,741
additional Fund shares......
---------- ------------ -------- -----------
Net decrease.................. (503,608) $ (4,812,081) (86,677) $ (831,830)
---------- ------------ -------- -----------
---------- ------------ -------- -----------
</TABLE>
<TABLE>
<CAPTION>
Class A Class D
For the Year Ended November -------------------------- -----------------------
30, 1994: Shares Amount Shares Amount
------------------------------ ---------- ------------ -------- -----------
<S> <C> <C> <C> <C>
Shares sold................... 2,754,298 $ 27,453,295 655,650 $ 6,550,096
Shares repurchased............ (1,667,949) (16,384,342) (545,459) (5,354,289)
Dividends reinvested in 21,167 208,929 8,977 88,459
additional Fund shares......
---------- ------------ -------- -----------
Net increase.................. 1,107,516 $ 11,277,882 119,168 $ 1,284,266
---------- ------------ -------- -----------
---------- ------------ -------- -----------
</TABLE>
SUBSEQUENT EVENT
Due to redemptions subsequent to May 31, 1995, the net assets of the Fund
have decreased to $316 at July 28, 1995.
8
<PAGE>
PAINEWEBBER SHORT-TERM U.S. GOVERNMENT INCOME FUND FOR CREDIT UNIONS
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout
each period is presented below:
<TABLE>
<CAPTION>
Class A Class D
--------------------------------- ---------------------------------
For the Period For the Period
For the Six December 7, 1993 For the Six December 7, 1993
Months Ended (commencement of Months Ended (commencement of
May 31, 1995 operations) to May 31, 1995 operations) to
(unaudited) November 30, 1994 (unaudited) November 30, 1994
------------ ----------------- ------------ -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 9.59 $ 10.00 $9.59 $10.00
------ ------- ----- ------
Net increase (decrease) from operations:
Net investment income........................... 0.18 0.40 0.18 0.37
Net realized and unrealized gains (losses) from
investment transactions...................... 0.22 (0.41) 0.22 (0.41)
------ ------- ----- ------
Net increase (decrease) in net asset value from
operations................................... 0.40 (0.01) 0.40 (0.04)
------ ------- ----- ------
Less distributions:
Dividends from net investment income............ (0.18) (0.40) (0.18) (0.37)
------ ------- ----- ------
Net asset value, end of period.................... $9.81 $ 9.59 $9.81 $ 9.59
------ ------- ----- ------
------ ------- ----- ------
Total investment return (1)....................... 4.28% (0.36)% 4.20% (0.59)%
------ ------- ----- ------
------ ------- ----- ------
Ratios/Supplemental Data:
Net assets, end of period (000's)............... $5,926 $10,619 $ 319 $1,143
Expenses to average net assets
(after expense waivers
and reimbursements).......................... 2.75%* 1.35%* 3.00%* 1.55%*
Net investment income to average net assets
(after expense waivers and reimbursements)... 3.90%* 4.13%* 3.65%* 3.89%*
Expenses to average net assets
(before expense waivers and
reimbursements).............................. 3.91%* 1.72%* 4.16%* 1.94%*
Net investment income to average net assets
(before expense waivers and
reimbursements).............................. 2.78%* 3.75%* 2.54%* 3.51%*
Portfolio turnover rate......................... 84.05% 570.73% 84.05% 570.73%
</TABLE>
---------------
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and capital
gains 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 would be lower if sales charges
were included. Total investment returns have not been annualized.
9
<PAGE>
------------------------------------
TRUSTEES
E. Garrett Bewkes, Jr., Chairman
Meyer Feldberg
George W. Gowen
Frederic V. Malek
Frank P.L. Minard
Judith Davidson Moyers
Thomas F. Murray
------------------------------------
PRINCIPAL OFFICERS
Margo N. Alexander
President
Victoria E. Schonfeld
Vice President
Dianne E. O'Donnell
Vice President and Secretary
Julian F. Sluyters
Vice President and Treasurer
------------------------------------
INVESTMENT ADVISER,
ADMINISTRATOR AND DISTRIBUTOR
Mitchell Hutchins Asset Management
Inc.
1285 Avenue of the Americas
New York, New York 10019
------------------------------------
This report is not be used in
connection with the offering of
shares of the Funds unless
accompanied or preceded by an
effective prospectus.
The financial information included
herein is taken from the records of
the Fund without examination by
independent auditors who do not
express an opinion therein.
RECYCLED PAPER
(Copyright)1995 PaineWebber
Incorporated
