<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND, EMERGING MARKETS EQUITY SEMIANNUAL REPORT
FUND & ASIA PACIFIC GROWTH FUND
June 15, 1998
Dear Shareholder,
We are pleased to present you with the semiannual report for the PaineWebber
Global Equity Fund, the PaineWebber Emerging Markets Equity Fund and the
PaineWebber Asia Pacific Growth Fund for the six-month period ended April 30,
1998.
PAINEWEBBER GLOBAL EQUITY FUND
FUND PROFILE
GOAL:
Long-term growth of capital
PORTFOLIO MANAGERS/SUBADVISERS:
Ralph Layman and Michael Solecki, GE Investment Management
TOTAL NET ASSETS:
$514.8 million as of April 30, 1998
DIVIDEND PAYMENTS:
Annually, if any
GENERAL MARKET OVERVIEW
- ------------------------------------------------------------------------------
The world's stock markets -- except those of most Asian countries -- finished
1997 on a positive note. Europe and the United States soared during the first
three months of 1998. Spain, Italy, Finland and Portugal were the top
performers in Europe.
Emerging markets lagged developed markets in the early part of the
six-month period as a result of the sharp sell-off in October 1997. By the
end of the period, however, emerging markets had begun to outperform
developed markets. Latin American markets were mixed, with Brazil's being the
strongest. Japanese stocks made only modest gains after a promising start in
January -- government efforts to stimulate the economy have done little to
restore confidence.
The abrupt resignation of President Suharto eased Indonesia's political
tensions and boosted markets throughout Asia for the month of May. All Asian
markets except Indonesia and Korea posted gains on the day Suharto's
departure was announced. By mid-June, however, many Asian markets declined in
response to the falling value of the Japanese yen.
PAINEWEBBER GLOBAL EQUITY FUND
Top five industries as percent of net assets, April 30, 1998*
Electronics 8.9%
Banks 8.8%
Telecommunications 8.5%
Financial Services 7.0%
Computer Software and Services 6.4%
* Allocations are subject to change
PORTFOLIO REVIEWS
- ------------------------------------------------------------------------------
PAINEWEBBER GLOBAL EQUITY FUND
PERFORMANCE--
The Fund's total return (the net asset value change with dividends
reinvested) for the six-month period ended April 30, 1998, without deducting
any sales charges, was 20.81% for Class A shares, 20.25% for Class B shares,
20.38% for Class C shares and 20.97% for Class Y shares.
For shareowners who purchased or redeemed Fund shares during the period
the Fund's total return may be lower; for example, after deducting the
maximum applicable sales charges, Class A shares gained 15.34%, Class B
shares gained 15.25% and Class C shares gained 19.38%. (Class Y shares are
not subject to sales charges.)
PORTFOLIO HIGHLIGHTS--
The Fund benefited from its European and U.S. holdings as well as its
underweighting in Japan (vs. its benchmark, The Morgan Stanley World Index).
We remain underweighted in the United States (21.3% vs. 49.5% in the index on
April 30, 1998) in favor of Continental Europe (46.7% versus 23.5% in the
index on that date).
The Fund's large weighting in European financial stocks boosted
performance as consolidation and lower interest rates drove prices higher.
Oil and oil service stock prices fell as oil prices reached four-year lows.
During this weakness we added to the Fund's oil and oil service stock
positions in the belief that prices should rebound.
1
<PAGE>
SEMIANNUAL REPORT
PAINEWEBBER EMERGING MARKETS EQUITY FUND
FUND PROFILE
GOAL:
Long-term capital appreciation
PORTFOLIO MANAGER/SUBADVISER:
John Troiano, Schroder Capital Management International Inc.
TOTAL NET ASSETS:
$15.1 million as of April 30, 1998
DIVIDEND PAYMENTS:
Annually, if any
OUTLOOK--
The U.S. stock markets have reached historically high valuations, and may
become vulnerable to market corrections. Growth in Europe is slowly shifting
from an export-driven phase to one driven by domestic demand. Unemployment is
declining in France and Germany, and demand is robust in many of the smaller
European economies. Markets are likely to remain strong as the momentum from
Economic Monetary Union convergence continues. We intend to remain
overweighted in Europe, as its foundation for strong corporate earnings and
lower interest rates remains in place.
PAINEWEBBER EMERGING MARKETS EQUITY FUND
Top five countries as percent of net assets, April 30, 1998*
Brazil 17.2%
Mexico 12.6%
South Africa 8.4%
India 8.1%
Taiwan 4.3%
* Allocations are subject to change
- ------------------------------------------------------------------------------
PAINEWEBBER EMERGING MARKETS EQUITY FUND
PERFORMANCE--
The Fund's total return (the net asset value change with dividends
reinvested) for the six-month period ended April 30, 1998, without deducting
any sales charges, was 3.19% for Class A shares, 2.83% for Class B shares,
2.84% for Class C shares and 3.28% for Class Y shares.
For shareowners who purchased or redeemed Fund shares during the period
the Fund's total return may be lower; for example, after deducting the
maximum applicable sales charges, Class A shares lost 1.42% and Class B
shares lost 2.17%. Class C shares gained 1.84%. (Class Y shares are not
subject to sales charges.)
PORTFOLIO HIGHLIGHTS--
The Asian crisis has weakened commodity prices and brought economic
slowdown to Latin America, especially to Chile and Venezuela. Nonetheless,
the portfolio manager believes the region's economies are still reasonably
healthy, and remains positive on Brazil and Mexico. Brazil's privatization
program is on track. Telecomunicacones Brasileiras S.A., the Fund's top
holding (2.9% of net assets as of April 30, 1998) looks particularly cheap at
6.5 times projected earnings.
During the period we continued to overweight the emerging markets of
Europe, especially Portugal, Hungary and Poland. These markets benefit from
strong local economies and feature well managed companies with good
visibility of earnings. Examples include OTP Bank (0.5% of net assets on
April 30, 1998) in Hungary, which has a dominant position in the domestic
market, and Elektrim Spolka Akcyjna (0.8%) in Poland, which has a substantial
stake in the fast-growing local cellular phone market. The portfolio manager
intends to gradually reduce the Fund's overweighting in Portugal, now
classified as a developed market, by taking profits at times of market
strength.
OUTLOOK--
The Fund's strategy is unlikely to change over the next six months. The
portfolio manager remains particularly cautious about the Southeast Asian
markets, whose fates depend heavily on the success of economic restructuring.
The instability of Indonesia and Japan's economic weakness may continue to
depress the region's prospects. China offers attractive growth potential.
2
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND, EMERGING MARKETS EQUITY SEMIANNUAL REPORT
FUND & ASIA PACIFIC GROWTH FUND
PAINEWEBBER ASIA PACIFIC GROWTH FUND
FUND PROFILE
GOAL:
Long-term capital appreciation
PORTFOLIO MANAGERS/ SUBADVISERS:
Louise Croset and
Heather Crighton,
Schroder Capital
Management International Inc.
TOTAL NET ASSETS:
$44.5 million as of April 30, 1998
DIVIDEND PAYMENTS:
Annually, if any
- ------------------------------------------------------------------------------
PAINEWEBBER ASIA PACIFIC GROWTH FUND
PERFORMANCE--
For the six-month period ended April 30, 1998, Class A shares lost
9.15%, Class B shares lost 9.53% and Class C shares lost 9.53% without
deducting sales charges. Class Y shares were first issued on March 13, 1998;
from that date to April 30, 1998 these shares lost 6.12%.
Returns may be lower for shareowners who purchased or redeemed Fund
shares during the period. For example, after deducting the maximum applicable
sales charges, Class A shares lost 13.22%, Class B shares lost 14.05% and
Class C shares lost 10.43%. (Class Y shares are not subject to sales charges.)
PORTFOLIO HIGHLIGHTS--
Most Asian markets were volatile over the six months ended April 30,
1998 as investors reacted to rapidly unfolding developments across the
region. In late 1997, the portfolio manager's view was that currency
stability was key to restoring investor confidence in Asia, and that the
Asian markets would remain volatile as economies adjusted to slower growth.
The Fund therefore maintained its positions in defensive companies within
Hong Kong and Singapore despite falling interest rates, which favored
financial and real estate companies.
Through much of the period Australia seemed a safe haven in the region,
and represented the Fund's largest country weighting at period-end. The
Fund's investments there included the media conglomerate News Corporation
(1.1% of net assets on April 30, 1998) and the commercial services firm
Brambles (1.7%), both of which stand to benefit from overseas earnings --
particularly in the U.S.
South Korea was the portfolio manager's favored emerging market as it
worked with the International Monetary Fund to reschedule external debt and
stabilize its currency. During the period we reduced the number of South
Korean stocks in the portfolio but maintained the Fund's overall exposure to
the market (4.1% of net assets at April 30, 1998). We are now emphasizing
blue chip companies such as Samsung Electronics (1.0%).
Despite India's recent nuclear tests, we do not believe its stock market
will become appreciably riskier. Fund investments there -- such as Mahanagar
Telephone Nigam Ltd. (0.6% of net assets on April 30, 1998), the local phone
operator in Bombay and Delhi, and Hindustan Petroleum Corp. (1.0%), an oil
refiner with rising margins -- represent bottom-up picks that offer good
growth potential and limited vulnerability to sanctions.
OUTLOOK--
The portfolio manager is likely to maintain the Fund's current strategy
for the remainder of its fiscal year, with particular caution regarding
Southeast Asia. We believe, however, that the long-term prospects remain
solid for many of Asia's emerging markets. We continue to seek companies that
are best positioned to survive the recent market volatility -- those with
strong balance sheets, growing market share and franchise value.
PAINEWEBBER ASIA PACIFIC GROWTH FUND
Top five countries as percent of net assets, April 30, 1998*
Australia 27.0%
Hong Kong 25.4%
Singapore 12.2%
Malaysia 8.3%
India 6.3%
* Allocations are subject to change
3
<PAGE>
SEMIANNUAL REPORT
Our ultimate objective in managing your investments is to help you
successfully meet your financial goals. We thank you for your continued
support and welcome any comments or questions you may have.
For a quarterly FUND PROFILE on the PaineWebber Global Equity Fund, the
PaineWebber Emerging Markets Equity Fund, the PaineWebber Asia Pacific Growth
Fund or any other fund in the PaineWebber Family of Funds,(1) please contact
your investment executive.
Sincerely,
/s/ MARGO ALEXANDER /s/ RALPH LAYMAN /s/ MICHAEL SOLECKI
MARGO ALEXANDER RALPH LAYMAN MICHAEL SOLECKI
President Portfolio Manager, Portfolio Manager,
Mitchell Hutchins PaineWebber PaineWebber
Asset Management Inc. Global Equity Fund Global Equity Fund
/s/ JOHN TROIANO /s/ LOUISE CROSET /s/ HEATHER CRIGHTON
JOHN TROIANO LOUISE CROSET HEATHER CRIGHTON
Portfolio Manager, Portfolio Manager, Portfolio Manager,
PaineWebber Emerging PaineWebber Asia Pacific PaineWebber Asia Pacific
Markets Equity Fund Growth Fund Growth Fund
This letter is intended to assist shareholders in understanding how the Funds
performed during the six-month period ended April 30, 1998. It reflects the
views of the Funds' portfolio managers at the time we are writing this
report. Of course, these views may change in response to changing
circumstances. We encourage you to consult your investment executive
regarding your personal investment program.
(1) Mutual funds are sold by prospectus only. The prospectuses for the funds
contain more complete information regarding risks, charges and expenses, and
should be read carefully before investing.
4
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN(1)
---------------------------------------- -----------------------------------
12 MONTHS ENDED 6 MONTHS
04/30/98 10/31/97 04/30/97 04/30/98 ENDED 04/30/98
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Class A Shares $19.17 $18.37 $ 17.55 26.45% 20.81%
- ---------------------------------------------------------------------------------------------------------------
Class B Shares 18.26 17.69 16.97 25.36 20.25
- ---------------------------------------------------------------------------------------------------------------
Class C Shares 18.28 17.69 16.97 25.48 20.38
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS A SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
11/14/91-12/31/91 $12.00 $12.29 -- -- 2.42%
- ---------------------------------------------------------------------------------------------------------------
1992 12.29 12.45 $ 0.1610 $ 0.0800 3.26
- ---------------------------------------------------------------------------------------------------------------
1993 12.45 16.07 0.2100 -- 30.77
- ---------------------------------------------------------------------------------------------------------------
1994 16.07 14.43 1.2530 -- (2.38)
- ---------------------------------------------------------------------------------------------------------------
1995 14.43 15.81 0.5743 -- 13.54
- ---------------------------------------------------------------------------------------------------------------
1996 15.81 17.57 0.5784 -- 14.80
- ---------------------------------------------------------------------------------------------------------------
1997 17.57 16.14 2.4768 -- 6.34
- ---------------------------------------------------------------------------------------------------------------
01/01/98-04/30/98 16.14 19.17 -- -- 18.77
- ---------------------------------------------------------------------------------------------------------------
Total: $ 5.2535 $ 0.0800
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/98: 122.25%
- ---------------------------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS B SHARES
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
08/25/95-12/31/95 $15.83 $15.46 $ 0.5743 -- 1.29%
- ---------------------------------------------------------------------------------------------------------------
1996 15.46 17.03 0.5784 -- 13.91
- ---------------------------------------------------------------------------------------------------------------
1997 17.03 15.42 2.4768 -- 5.49
- ---------------------------------------------------------------------------------------------------------------
01/01/98-04/30/98 15.42 18.26 -- -- 18.42
- ---------------------------------------------------------------------------------------------------------------
Total: $ 3.6295 $ 0.0000
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/98: 44.11%
- ---------------------------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS C SHARES
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
05/10/93-12/31/93 $13.80 $15.99 $ 0.2100 -- 17.39%
- ---------------------------------------------------------------------------------------------------------------
1994 15.99 14.23 1.2530 -- (3.12)
- ---------------------------------------------------------------------------------------------------------------
1995 14.23 15.46 0.5743 -- 12.67
- ---------------------------------------------------------------------------------------------------------------
1996 15.46 17.03 0.5784 -- 13.91
- ---------------------------------------------------------------------------------------------------------------
1997 17.03 15.43 2.4768 -- 5.55
- ---------------------------------------------------------------------------------------------------------------
01/01/98-04/30/98 15.43 18.28 -- -- 18.47
- ---------------------------------------------------------------------------------------------------------------
Total: $ 5.0925 $ 0.0000
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/98: 82.52%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gain distributions,
if any, at net asset value on the payable dates and do not include sales
charges; results for each class would be lower if sales charges were
included.
Note: The Fund offers Class Y shares to a limited group of eligible investors,
including participants in certain investment programs that are sponsored by
PaineWebber and may invest in PaineWebber mutual funds. For the six months ended
April 30, 1998, and since inception, May 10, 1993, through April 30, 1998, Class
Y shares had a total return of 20.97% and 92.41%, respectively. Class Y shares
do not have initial or contingent deferred sales charges or ongoing distribution
and service fees.
The data above represents past performance of the Fund's shares, which is no
guarantee of future results. The principal value of an investment in the Fund
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than their original cost.
5
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
PERFORMANCE RESULTS (UNAUDITED) (CONCLUDED)
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
% RETURN WITHOUT DEDUCTING % RETURN AFTER DEDUCTING
MAXIMUM SALES CHARGE MAXIMUM SALES CHARGE
-------------------------------------- --------------------------------------
CLASS A* B** C*** A* B** C***
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
Twelve Months Ended 03/31/98 23.16% 22.07% 22.19% 17.59% 17.07% 21.19%
- -----------------------------------------------------------------------------------------------------------------
Five Years Ended 03/31/98 13.76 N/A N/A 12.72 N/A N/A
- -----------------------------------------------------------------------------------------------------------------
Commencement of Operations
Through 03/31/98+ 12.84 13.88 12.45 12.02 12.94 12.45
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
* 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.
*** Maximum contingent deferred sales charge for Class C shares is 1.0% and is
reduced to 0% after 1 year. Class C shares bear ongoing 12b-1 distribution
and service fees.
+ Commencement of operations was November 14, 1991, August 25, 1995 and May 10,
1993 for Class A, Class B and Class C shares, respectively.
Note: The Fund offers Class Y shares to a limited group of eligible investors,
including participants in certain investment programs that are sponsored by
PaineWebber and may invest in PaineWebber mutual funds. For the twelve months
ended March 31, 1998 and since inception, May 10, 1993 through March 31, 1998,
Class Y shares had an average annual total return of 23.52% and 13.65%,
respectively. Class Y shares do not have initial or contingent deferred sales
charges or ongoing distribution and service fees.
The data above represents past performance of the Fund's shares, which is no
guarantee of future results. The principal value of an investment in the Fund
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than their original cost.
6
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN(1)
---------------------------------------- ------------------------------------
12 MONTHS ENDED 6 MONTHS
04/30/98 10/31/97 04/30/97 04/30/98 ENDED 04/30/98
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
Class A Shares $ 9.69 $ 9.39 $ 10.46 (7.36)% 3.19%
- ----------------------------------------------------------------------------------------------------------------
Class B Shares 9.45 9.19 10.27 (7.98) 2.83
- ----------------------------------------------------------------------------------------------------------------
Class C Shares 9.43 9.17 10.26 (8.09) 2.84
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS A SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
01/19/94-12/31/94 $12.00 $10.49 -- -- (12.58)%
- ---------------------------------------------------------------------------------------------------------------
1995 10.49 9.26 -- $ 0.0517 (11.20)
- ---------------------------------------------------------------------------------------------------------------
1996 9.26 9.71 -- -- 4.86
- ---------------------------------------------------------------------------------------------------------------
1997 9.71 9.27 -- -- (4.53)
- ---------------------------------------------------------------------------------------------------------------
01/01/98-04/30/98 9.27 9.69 -- -- 4.53
- ---------------------------------------------------------------------------------------------------------------
Total: $ 0.0000 $ 0.0517
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/98: (18.77)%
- ---------------------------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS B SHARES
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
12/05/95-12/31/95 $ 9.13 $ 9.18 -- -- 0.55%
- ---------------------------------------------------------------------------------------------------------------
1996 9.18 9.56 -- -- 4.14
- ---------------------------------------------------------------------------------------------------------------
1997 9.56 9.06 -- -- (5.23)
- ---------------------------------------------------------------------------------------------------------------
01/01/98-04/30/98 9.06 9.45 -- -- 4.30
- ---------------------------------------------------------------------------------------------------------------
Total: $ 0.0000 $ 0.0000
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/98: 3.50%
- ---------------------------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS C SHARES
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
01/19/94-12/31/94 $12.00 $10.42 -- -- (13.17)%
- ---------------------------------------------------------------------------------------------------------------
1995 10.42 9.18 -- $ 0.0034 (11.87)
- ---------------------------------------------------------------------------------------------------------------
1996 9.18 9.55 -- -- 4.03
- ---------------------------------------------------------------------------------------------------------------
1997 9.55 9.04 -- -- (5.34)
- ---------------------------------------------------------------------------------------------------------------
01/01/98-04/30/98 9.04 9.43 -- -- 4.31
- ---------------------------------------------------------------------------------------------------------------
Total: $ 0.0000 $ 0.0034
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/98: (21.39)%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gain distributions,
if any, at net asset value on the payable dates and do not include sales
charges; results for each class would be lower if sales charges were
included.
Note: The Fund offers Class Y shares to a limited group of eligible investors
including participants in certain investment programs that are sponsored by
PaineWebber and may invest in PaineWebber mutual funds. For the six months ended
April 30, 1998 and since inception, January 19, 1994 through April 30, 1998,
Class Y shares had a total return of 3.28% and (17.96)%, respectively. Class Y
shares do not have initial or contingent deferred sales charges or ongoing
distribution and service fees.
The data above represents past performance of the Fund's shares, which is no
guarantee of future results. The principal value of an investment in the Fund
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than their original cost.
7
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
PERFORMANCE RESULTS (UNAUDITED) (CONCLUDED)
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
% RETURN WITHOUT DEDUCTING % RETURN AFTER DEDUCTING
MAXIMUM SALES CHARGE MAXIMUM SALES CHARGE
-------------------------------------- --------------------------------------
CLASS A* B** C*** A* B** C***
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
Twelve Months Ended 03/31/98 (8.04)% (8.76)% (8.87)% (12.16)% (13.33)% (9.78)%
- -----------------------------------------------------------------------------------------------------------------
Commencement of Operations
Through 03/31/98+ (5.02) 1.12 (5.76) (6.06) (0.16) (5.76)
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
* 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.
*** Maximum contingent deferred sales charge for Class C is 1.0% and is reduced
to 0% after 1 year. Class C shares bear ongoing 12b-1 distribution and
service fees.
+ Commencement of operations was January 19, 1994, December 5, 1995 and January
19, 1994 for Class A, Class B and Class C shares, respectively.
Note: The Fund offers Class Y shares to a limited group of eligible investors,
including participants in certain investment programs that are sponsored by
PaineWebber and may invest in PaineWebber mutual funds. For the twelve months
ended March 31, 1998 and since inception, January 19, 1994 through March 31,
1998, Class Y shares had an average annual total return of (7.98)% and (4.81)%,
respectively. Class Y shares do not have initial or contingent deferred sales
charges or ongoing distribution and service fees.
The data above represents past performance of the Fund's shares, which is no
guarantee of future results. The 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.
8
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
TOTAL RETURN(1)
NET ASSET VALUE -------------------------------
---------------------------------------- 12 MONTHS
ENDED SIX MONTHS
04/30/98 10/31/97 04/30/97 04/30/98 ENDED 04/30/98
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
Class A Shares $ 8.14 $ 8.96 $ 12.48 (34.78)% (9.15)%
- -----------------------------------------------------------------------------------------------------------
Class B Shares 8.07 8.92 12.47 (35.28) (9.53)
- -----------------------------------------------------------------------------------------------------------
Class C Shares 8.07 8.92 12.47 (35.28) (9.53)
- -----------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS A SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
03/25/97-12/31/97 $12.50 $ 8.26 -- -- (33.92)%
- ---------------------------------------------------------------------------------------------------------------
01/01/98-04/30/98 8.26 8.14 -- -- (1.45)
- ---------------------------------------------------------------------------------------------------------------
Total: $ 0.0000 $ 0.0000
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/98: (34.88)%
- ---------------------------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS B SHARES
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
03/25/97-12/31/97 $12.50 $ 8.21 -- -- (34.32)%
- ---------------------------------------------------------------------------------------------------------------
01/01/98-04/30/98 8.21 8.07 -- -- (1.71)
- ---------------------------------------------------------------------------------------------------------------
Total: $ 0.0000 $ 0.0000
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/98: (35.44)%
- ---------------------------------------------------------------------------------------------------------------
PERFORMANCE SUMMARY CLASS C SHARES
<CAPTION>
NET ASSET VALUE
---------------------- CAPITAL GAINS DIVIDENDS TOTAL
PERIOD COVERED BEGINNING ENDING DISTRIBUTED PAID RETURN(1)
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
03/25/97-12/31/97 $12.50 $ 8.21 -- -- (34.32)%
- ---------------------------------------------------------------------------------------------------------------
01/01/98-04/30/98 8.21 8.07 -- -- (1.71)
- ---------------------------------------------------------------------------------------------------------------
Total: $ 0.0000 $ 0.0000
- ---------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/98: (35.44)%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Figures assume reinvestment of all dividends and capital gain distributions,
if any, at net asset value on the payable dates and do not include sales
charges; results would be lower if sales charges were included. The Fund had
no Class Y shares outstanding during the period.
Note: The Fund offers Class Y shares to a limited group of eligible investors,
including participants in certain investment programs that are sponsored by
PaineWebber and may invest in PaineWebber mutual funds. Since inception, March
13, 1998 through April 30, 1998, Class Y shares had a total return of (6.12)%.
Class Y shares do not have initial or contingent deferred sales charges or
ongoing distribution and service fees.
The above data represents past performance of the Fund's shares, which is no
guarantee of future results. The principal value of an investment in the Fund
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
9
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
PERFORMANCE RESULTS (UNAUDITED) (CONCLUDED)
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
% RETURN WITHOUT DEDUCTING % RETURN AFTER DEDUCTING
MAXIMUM SALES CHARGE MAXIMUM SALES CHARGE
-------------------------------------- --------------------------------------
CLASS A* B** C*** A* B** C***
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
Twelve Months Ended 03/31/98 (30.64)% (31.12)% (31.12)% (33.77)% (34.56)% (31.81)%
- -----------------------------------------------------------------------------------------------------------------
Commencement of Operations
Through 03/31/98+ (30.16) (30.64) (30.64) (33.25) (33.36) (30.64)
- -----------------------------------------------------------------------------------------------------------------
</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 is
reduced to 0% after 6 years. Class B shares bear ongoing 12b-1 distribution
and service fees.
*** Maximum contingent deferred sales charge for Class C is 1.0% and is reduced
to 0% after 1 year. Class C shares bear ongoing 12b-1 distribution and
service fees.
+ Commencement of operations was March 25, 1997 for Class A, Class B and Class C
shares, respectively.
Note: The Fund offers Class Y shares to a limited group of eligible investors,
including participants in certain investment programs that are sponsored by
PaineWebber and may invest in PaineWebber mutual funds. Since inception, March
13, 1998 through March 31, 1998, Class Y shares had a total return of 0.12%.
Class Y shares do not have initial or contingent deferred sales charges or
ongoing distribution and service fees.
The data above represents past performance of the Fund's shares, which is no
guarantee of future results. The principal value of an investment in the Fund
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than their original cost.
10
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1998(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
COMMON STOCKS--95.15%
AUSTRALIA--0.79%
BEVERAGES--0.79%
529,456 Coca Cola Amatil Ltd. (1)..... $ 4,040,449
-------------
AUSTRIA--0.56%
ENGINEERING & CONSTRUCTION--0.56%
20,133 VA Technologie AG............. 2,894,024
-------------
BRAZIL--1.60%
BANKS--0.58%
75,507 Uniao de Banco Brasileiro S.A.
GDR......................... 3,001,403
-------------
TELECOMMUNICATIONS--1.02%
43,066 Telecomunicacoes Brasileiras
S.A. (Telebras) ADR......... 5,245,977
-------------
Total Brazil Common Stocks..................... 8,247,380
-------------
CROATIA--0.11%
PHARMACEUTICAL--0.11%
30,328 Pliva D.D. GDR................ 548,937
-------------
FINLAND--4.43%
ELECTRONIC EQUIPMENT--1.64%
126,032 Nokia AB Oy*.................. 8,469,084
-------------
FINANCIAL SERVICES--1.03%
788,310 Merita Ltd. (Series A)........ 5,282,803
-------------
MULTI-LINE INSURANCE--1.76%
200,865 Sampo Insurance Co. Ltd.* .... 9,072,227
-------------
Total Finland Common Stocks.................... 22,824,114
-------------
FRANCE--13.27%
AUTO PARTS--0.30%
24,286 Michelin (Class B)............ 1,530,854
-------------
AUTOMOBILES--0.71%
78,837 Renault S.A.*................. 3,659,212
-------------
BANKS--0.91%
22,522 Societe Generale*............. 4,690,991
-------------
COMPUTER SOFTWARE & SERVICES--1.68%
66,526 Cap Gemini S.A. .............. 8,643,621
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
FRANCE--(CONCLUDED)
<TABLE>
<C> <S> <C>
ELECTRONICS--1.44%
99,280 Schneider S.A. ............... $ 7,432,374
-------------
ENGINEERING & CONSTRUCTION--0.72%
21,899 Suez Lyonnaise des Eaux
S.A. ....................... 3,716,017
-------------
FOOD--0.84%
7,513 Carrefour S.A. ............... 4,305,820
-------------
HEALTHCARE--1.12%
118,201 Rhone Poulenc S.A.* .......... 5,783,216
-------------
MULTI-LINE INSURANCE--2.30%
100,658 AXA-UAP....................... 11,822,417
-------------
OIL--1.68%
72,704 Total S.A. (Class B).......... 8,648,039
-------------
OIL EQUIPMENT & SERVICES--1.57%
113,531 Coflexip S.A. ADR............. 8,089,084
-------------
Total France Common Stocks..................... 68,321,645
-------------
GERMANY--8.11%
AUTOMOBILES--1.84%
97,080 Daimler-Benz AG............... 9,477,817
-------------
BANKS--0.91%
61,697 Bayer Vereinsbank............. 4,692,898
-------------
CONGLOMERATES--1.37%
19,790 Preussag AG................... 7,035,758
-------------
INSURANCE--0.88%
9,932 Munchener Ruckvers............ 4,538,319
-------------
MACHINERY (DIVERSIFIED)--2.12%
13,731 Mannesmann AG................. 10,895,736
-------------
MEDICAL PRODUCTS & SUPPLIES--0.69%
52,590 Fresenius Medical Care AG*.... 3,578,189
-------------
STEEL--0.30%
14,690 SGL Carbon AG................. 1,547,953
-------------
Total Germany Common Stocks.................... 41,766,670
-------------
</TABLE>
11
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
<TABLE>
<C> <S> <C>
GREECE--0.05%
BANKS--0.05%
2,376 Alpha Credit Bank............. $ 250,576
-------------
HONG KONG--1.40%
ELECTRONICS--0.31%
473,000 Johnson Electric Holdings..... 1,602,924
-------------
FINANCIAL SERVICES--0.87%
157,452 HSBC Holdings PLC (1)......... 4,492,246
-------------
MANUFACTURED HOUSING--0.09%
180,000 Cheung Kong Infrastucture..... 456,623
-------------
RETAIL--0.13%
2,866,000 Giordano International
Ltd. ....................... 665,995
-------------
Total Hong Kong Common Stocks.................. 7,217,788
-------------
INDONESIA--0.07%
AUTOMOBILES--0.07%
1,767,500 PT Astra International
Inc. ....................... 347,977
-------------
ISRAEL--2.39%
COMPUTER SOFTWARE & SERVICES--0.27%
54,585 Tecnomatix Technologies
Ltd.*....................... 1,385,094
-------------
COMPUTER SYSTEMS--0.57%
61,911 Comverse Technology Inc.*..... 2,933,034
-------------
PHARMACEUTICAL--0.77%
93,058 Teva Pharmaceutical Industries
Ltd. ADR.................... 3,978,230
-------------
TELECOMMUNICATIONS--0.78%
130,971 ECI Telecommunications
Ltd. ....................... 3,994,615
-------------
Total Israel Common Stocks..................... 12,290,973
-------------
ITALY--4.16%
BANKS--1.14%
245,296 BCA Intesa SPA*............... 1,384,797
857,418 Credito Italiano.............. 4,506,485
-------------
5,891,282
-------------
CONGLOMERATES--0.79%
3,220,807 Montedison SPA*............... 4,063,852
-------------
HOUSEHOLD FURNITURE & APPLIANCES--1.05%
211,515 Industrie Natuzzi SPA ADR..... 5,433,291
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
ITALY--(CONCLUDED)
<TABLE>
<C> <S> <C>
OIL EQUIPMENT & SERVICES--0.31%
276,183 Saipem*....................... $ 1,588,791
-------------
TELECOMMUNICATIONS--0.87%
782,027 Telecom Italia Mobile SPA..... 4,459,013
-------------
Total Italy Common Stocks...................... 21,436,229
-------------
JAPAN--3.84%
AUTOMOBILES--0.30%
42,000 Honda Motor Co. .............. 1,523,349
-------------
COMPUTER SOFTWARE & SERVICES--0.67%
80 NTT Data Corp. (1)............ 3,457,760
-------------
ELECTRONICS--1.96%
125,000 Minebea Co. .................. 1,397,914
104,400 Sony Corp. ................... 8,685,538
-------------
10,083,452
-------------
PHOTOGRAPHY & IMAGING--0.91%
198,000 Canon Inc. ................... 4,682,938
-------------
Total Japan Common Stocks...................... 19,747,499
-------------
KOREA--0.89%
ELECTRONIC COMPONENTS & INSTRUMENTATION--0.33%
34,110 Samsung Display Devices....... 1,697,205
-------------
MACHINERY (DIVERSIFIED)--0.44%
71,192 Hyundai Heavy Industries...... 2,290,502
-------------
STEEL--0.12%
11,135 Pohang Iron & Steel Co. ...... 593,617
-------------
Total Korea Common Stocks...................... 4,581,324
-------------
MEXICO--1.54%
BANKS--0.63%
237,586 Grupo Financiero Bancomer S.A.
ADR+* (1)................... 3,237,109
-------------
FOOD--0.12%
271,589 Gruma S.A. de C.V. (Series
B)*......................... 623,886
-------------
TELECOMMUNICATIONS--0.79%
67,461 Grupo Carso S.A. de C.V.
(Series A).................. 424,813
297,003 Grupo Carso S.A. de C.V. ADR
(1)......................... 3,623,437
-------------
4,048,250
-------------
Total Mexico Common Stocks..................... 7,909,245
-------------
</TABLE>
12
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
<TABLE>
<C> <S> <C>
NETHERLANDS--6.18%
ELECTRONICS--1.06%
62,051 Philips Electronics........... $ 5,467,590
-------------
FINANCIAL SERVICES--2.78%
219,892 Internationale Nederlanden
Groep N.V. ................. 14,292,273
-------------
OIL EQUIPMENT & SERVICES--0.94%
83,123 IHC Caland N.V. .............. 4,839,000
-------------
STEEL--1.40%
256,685 Ispat International N.V.
(Class A)*.................. 7,187,180
-------------
Total Netherlands Common Stocks................ 31,786,043
-------------
NORWAY--0.59%
BANKS--0.23%
222,160 Den Norske Bank............... 1,167,923
-------------
OIL EQUIPMENT & SERVICES--0.36%
28,523 Petroleum Geo Services*....... 1,851,410
-------------
Total Norway Common Stocks..................... 3,019,333
-------------
PANAMA--1.33%
BANKS--0.36%
52,497 Banco Latinoamericano de
Exportaciones S.A. (Class
E).......................... 1,876,768
-------------
BEVERAGES--0.97%
124,715 Panamerican Beverages Inc. ... 4,973,010
-------------
Total Panama Common Stocks..................... 6,849,778
-------------
PERU--0.48%
TELECOMMUNICATIONS--0.48%
111,390 Telefonica Del Peru S.A.
ADR......................... 2,464,504
-------------
PHILIPPINES--0.48%
BANKS--0.24%
160,100 Metropolitan Bank & Trust Co.
(1)*........................ 1,246,108
-------------
BEVERAGES--0.24%
754,000 San Miguel Corp. (Class B)
(1)......................... 1,239,452
-------------
Total Philippines Common Stocks................ 2,485,560
-------------
PORTUGAL--1.53%
BANKS--0.93%
136,551 Banco Comercial Portugues
S.A. ....................... 4,787,265
-------------
RETAIL-- FOOD CHAINS--0.21%
22,627 Estabelecimentos Jeronimo
Martins & Filho, SGPS,
S.A. ....................... 1,057,854
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
PORTUGAL--(CONCLUDED)
<TABLE>
<C> <S> <C>
TELECOMMUNICATIONS--0.39%
11,318 Telecel-Comunicacoes
Pessoais S.A.*.............. $ 2,030,410
-------------
Total Portugal Common Stocks................... 7,875,529
-------------
SOUTH AFRICA--0.94%
COMPUTER SOFTWARE & SERVICES--0.94%
692,748 Dimension Data Holdings
Ltd.*....................... 4,811,131
-------------
SPAIN--2.63%
BANKS--0.92%
56,934 Argentaria Corp. BC........... 4,747,616
-------------
OIL--1.71%
160,753 Repsol S.A. .................. 8,813,445
-------------
Total Spain Common Stocks...................... 13,561,061
-------------
SWEDEN--2.09%
AUTO PARTS--0.84%
141,972 Autoliv Inc. SDR.............. 4,309,406
-------------
PHARMACEUTICAL--0.99%
121,198 Pharmacia & Upjohn Inc. ...... 5,097,891
-------------
TELECOMMUNICATIONS--0.26%
25,960 Ericsson LM................... 1,368,080
-------------
Total Sweden Common Stocks..................... 10,775,377
-------------
SWITZERLAND--3.14%
ELECTRICAL EQUIPMENT--1.08%
3,387 ABB AG........................ 5,552,829
-------------
MULTI-LINE INSURANCE--0.90%
7,605 Zurich Versicherungs.......... 4,632,436
-------------
PHARMACEUTICAL--1.16%
3,618 Novartis AG................... 5,979,767
-------------
Total Switzerland Common Stocks................ 16,165,032
-------------
TAIWAN--0.93%
ELECTRONICS--0.93%
1,111,000 Taiwan Semiconductor
Manufacturing Co. Ltd. ..... 4,801,210
-------------
UNITED KINGDOM--10.15%
AUTO PARTS--1.29%
1,489,478 LucasVarity PLC............... 6,658,398
-------------
</TABLE>
13
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
UNITED KINGDOM--(CONCLUDED)
<TABLE>
<C> <S> <C>
BANKS--0.58%
243,679 Bank of Scotland.............. $ 2,995,873
-------------
ENGINEERING & CONSTRUCTION--0.25%
355,312 Senior Engineering............ 1,307,526
-------------
LEISURE--2.39%
836,318 Airtours PLC.................. 7,326,784
287,177 Granada Group PLC............. 4,947,717
-------------
12,274,501
-------------
MACHINERY (DIVERSIFIED)--2.52%
579,299 Siebe PLC..................... 12,945,749
-------------
METALS--1.12%
566,301 Johnson Matthey PLC........... 5,740,344
-------------
MULTI-LINE INSURANCE--1.21%
120,736 Commercial Union PLC.......... 2,259,877
357,042 Royal & Sun Alliance Insurance
Group*...................... 3,989,456
-------------
6,249,333
-------------
PUBLISHING--0.38%
221,844 Reed International PLC........ 1,961,149
-------------
RAILROADS--0.41%
115,866 Railtrack Group PLC........... 2,117,363
-------------
Total United Kingdom Common Stocks............. 52,250,236
-------------
UNITED STATES--21.47%
BANKS--1.30%
44,501 Citicorp...................... 6,697,400
-------------
CHEMICALS--0.91%
22,497 Avery Dennison Corp. ......... 1,178,281
48,351 DuPont (E.I.) de Nemours & Co.
(1)*........................ 3,520,557
-------------
4,698,838
-------------
COMPUTER SOFTWARE & SERVICES--2.87%
109,083 EMC Corp.*.................... 5,031,454
189,166 First Data Corp. ............. 6,407,998
28,733 International Business
Machines.................... 3,329,436
-------------
14,768,888
-------------
COMPUTER SYSTEMS--0.25%
30,631 Sun Microsystems Inc.*........ 1,261,614
-------------
CONGLOMERATES--2.21%
259,188 Allied-Signal Inc. ........... 11,355,674
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
UNITED STATES--(CONCLUDED)
ELECTRICAL EQUIPMENT--1.04%
124,943 Harman International
Industries Inc. ............ $ 5,372,549
-------------
ELECTRONICS--3.17%
38,526 Intel Corp. .................. 3,113,382
52,574 Motorola Inc. ................ 2,924,429
387,972 Sensormatic Electronics Corp.
(1)......................... 6,062,063
105,534 Thermo Electron Corp.*........ 4,201,572
-------------
16,301,446
-------------
FINANCIAL SERVICES--2.28%
71,716 Morgan Stanley, Dean Witter,
Discover & Co. ............. 5,656,600
99,515 Travelers Group Inc. ......... 6,089,074
-------------
11,745,674
-------------
INDUSTRIAL SERVICES & SUPPLIES--0.62%
101,510 Ecolab Inc. .................. 3,216,598
-------------
OFFICE EQUIPMENT & SUPPLIES--0.54%
71,308 Zebra Technologies Corp.
(Class A)*.................. 2,763,185
-------------
OIL EQUIPMENT & SERVICES--0.78%
48,664 Schlumberger Ltd. ............ 4,033,029
-------------
PHARMACEUTICAL--1.48%
104,089 R.P. Scherer Corp.*........... 7,598,497
-------------
RETAIL--1.09%
94,434 Sears Roebuck & Co. .......... 5,601,117
-------------
TELECOMMUNICATIONS--2.93%
284,242 Airtouch Communications
Inc.*....................... 15,100,356
-------------
Total United States Common Stocks.............. 110,514,865
-------------
Total Common Stocks (cost--$381,546,262)....... 489,784,489
-------------
PREFERRED STOCKS--1.27%
BRAZIL--0.97%
TELECOMMUNICATIONS--0.97%
14,751,285 Telecomunicacoes de Sao Paolo
S.A. Telesp................. 5,017,488
-------------
GERMANY--0.30%
MEDICAL PRODUCTS & SUPPLIES--0.30%
27,982 Fresenius Medical Care AG*.... 1,531,210
-------------
Total Preferred Stocks (cost--$6,147,596)...... 6,548,698
-------------
</TABLE>
14
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
- --------------- -------- -------- -------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--3.04%
$ 15,660 Repurchase Agreement dated
04/30/98 with State Street
Bank & Trust Company,
collateralized by
$15,400,000 U.S. Treasury
Notes, 6.250% due 02/15/07
(value-$15,977,500);
proceeds: $15,662,340
(cost-$15,660,000).......... 05/01/98 5.380% $ 15,660,000
-------------
Total Investments (cost--$403,353,858)--99.46%....................... 511,993,187
Other assets in excess of liabilities--0.54%......................... 2,270,795
-------------
Net Assets--100.00%.................................................. $ 514,763,982
-------------
-------------
</TABLE>
- -----------------
* Non-income producing security.
ADR American Depository Receipts
GDR Global Depository Receipts
SDR Special Drawing Rights
(1) Security, or a portion thereof, was on loan at April 30, 1998.
See accompanying notes to financial statements
15
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1998(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
COMMON STOCKS--83.23%
ARGENTINA--4.13%
BANKS--0.64%
2,137 Banco De Galicia y Buenos
Aires S.A. de C.V. ADR...... $ 52,356
11,600 IRSA Inversiones y
Representaciones S.A. Class
B........................... 44,899
-------------
97,255
-------------
DIVERSIFIED INDUSTRIALS--0.53%
13,395 Perez Companc S.A. Class B.... 80,516
-------------
OIL EXPLORATION & PRODUCTION--1.30%
5,667 YPF Sociedad Anonima Series D
ADR......................... 197,636
-------------
PROPERTY--0.16%
1,200 Cresud S.A. C.I.F.yA. ADR*.... 23,850
-------------
RETAILERS, FOOD--0.11%
400 Disco S A ADR*................ 15,900
-------------
TELECOMMUNICATIONS--1.39%
10,800 Telecom Argentina S.A. ....... 77,771
3,430 Telefonica de Argentina S.A.
Class B ADR................. 132,270
-------------
210,041
-------------
Total Argentina Common Stocks.................. 625,198
-------------
BOTSWANA--0.59%
BREWERIES, PUBS, & RESTAURANTS--0.59%
56,700 Sechaba Breweries Ltd. ....... 89,234
-------------
BRAZIL--5.76%
ELECTRICITY--2.48%
1,240,000 Companhia Paulista de Forca e
Luz......................... 171,311
510,000 Light Servicos de Eletricidade
S.A. ....................... 205,133
-------------
376,444
-------------
TELECOMMUNICATIONS--3.28%
3,650,000 Telecomunicacones Brasileiras
S.A. (Telebras)............. 362,239
1,100 Telecomunicacones Brasileiras
S.A. (Telebras) ADR......... 133,994
-------------
496,233
-------------
Total Brazil Common Stocks..................... 872,677
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
CHILE--3.72%
BANKS--0.61%
3,700 Banco BHIF ADR................ $ 46,019
3,300 Banco Santander Chile Series A
ADS......................... 46,200
-------------
92,219
-------------
BREWERY--0.31%
1,700 Compania Cervecerias Unidas
S.A. ADR.................... 47,600
-------------
ELECTRICITY--1.19%
3,450 Chilectra S.A. ADR............ 97,014
3,747 Gener S.A. ADR................ 83,839
-------------
180,853
-------------
EXTRACTIVE INDUSTRIES--0.29%
1,000 Sociedad Quimica Y Minera de
Chile S.A. Series B ADR..... 43,437
-------------
RETAILERS, GENERAL--0.17%
1,529 Santa Isabel SA ADR........... 25,229
-------------
TELECOMMUNICATIONS--1.15%
6,925 Compania de Telecomunicaciones
de Chile S.A. ADR........... 173,558
-------------
Total Chile Common Stocks...................... 562,896
-------------
CHINA--0.66%
ELECTRICITY & GAS--0.48%
3,300 Huaneng Power International
Inc. ADR*................... 72,600
-------------
TRANSPORTATION--0.18%
64,000 Qingling Motors Co. Class H... 27,679
-------------
Total China Common Stocks...................... 100,279
-------------
CROATIA--0.48%
HEALTH/PERSONAL CARE--0.48%
3,980 Pliva dd GDR.................. 72,038
-------------
CZECH REPUBLIC--0.60%
TELECOMMUNICATIONS--0.60%
625 SPT Telecom A.S.*............. 90,899
-------------
EGYPT--0.61%
BANKS--0.61%
5,510 Commercial International Bank
GDR......................... 93,119
-------------
</TABLE>
16
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
<TABLE>
<C> <S> <C>
GREECE--3.20%
BANKS--0.75%
1,080 Alpha Credit Bank*............ $ 113,898
-------------
BEVERAGE & TOBACCO MANUFACTURING--1.40%
5,710 Hellenic Bottling Co. S.A. ... 212,497
-------------
TELECOMMUNICATIONS--1.05%
5,520 Greek Telecom................. 158,021
-------------
Total Greece Common Stocks..................... 484,416
-------------
HONG KONG--2.52%
COMMERCE/INDUSTRIAL--0.44%
110,000 Beijing Datang Power
Generation Company Ltd.*.... 44,733
7,000 Citic Pacific Ltd. ........... 21,508
-------------
66,241
-------------
COMMUNICATIONS--0.30%
24,000 China Telecom*................ 45,546
-------------
CONSTRUCTION--0.88%
121,000 Anhui Expressway Co. Ltd. .... 19,214
21,000 Cheung Kong Infrastucture..... 53,272
28,000 New World Infrastructure Ltd.
(1)*........................ 60,186
-------------
132,672
-------------
ELECTRICAL APPLIANCES--0.19%
18,000 Founder Hong Kong Ltd.*....... 14,988
34,000 Legend Holdings*.............. 14,595
-------------
29,583
-------------
FOODS--0.04%
7,000 NG Fung Hong Ltd. ............ 6,326
-------------
MINING--0.27%
158,000 Yanzhou Coal Mining Co.
Ltd.*....................... 41,305
-------------
REAL ESTATE--0.27%
77,000 China Resources Beijing*...... 40,756
-------------
SHIPPING--0.06%
13,000 Cosco Pacific Ltd. ........... 8,811
-------------
WHOLESALE--0.07%
16,000 Guangnan Holdings............. 10,328
-------------
Total Hong Kong Common Stocks.................. 381,568
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
HUNGARY--3.05%
BANKS--0.51%
1,600 OTP Bank National Savings &
Commerical Bank*............ $ 76,800
-------------
BUILDING MATERIALS/CONSTRUCTION--0.30%
1,082 Pannonplast Muanya RT......... 45,901
-------------
HEALTH/PERSONAL CARE--0.86%
460 EGIS Gyogyszergyar............ 23,984
1,000 Gedeon Richter RT GDR......... 106,500
-------------
130,484
-------------
MISCELLANEOUS MANUFACTURING--0.30%
1,200 Borsodchem RT GDR*+........... 45,600
-------------
OILS--0.55%
2,760 Magyar Olaj Es Gazipari KT*... 82,860
-------------
UTILITIES--0.53%
2,710 Matav Rt*..................... 79,945
-------------
Total Hungary Common Stocks.................... 461,590
-------------
INDIA--8.11%
BANKS, RETAIL--1.15%
24,000 State Bank of India........... 174,040
-------------
ELECTRICAL EQUIPMENT--0.52%
8,000 Bharat Heavy Electricals
Ltd. ....................... 79,164
-------------
ELECTRICITY & GAS--0.40%
22,000 Tata Power Co. ............... 60,989
-------------
ENGINEERING VEHICLES--0.27%
100 Bajaj Auto Ltd. .............. 1,500
5,450 Mahindra & Mahindra Ltd. ..... 39,673
-------------
41,173
-------------
HOUSEHOLD GOODS & TEXTILES--1.71%
1,500 Hindustan Lever............... 59,562
42,000 Reliance Industry............. 199,768
-------------
259,330
-------------
OIL, INTEGRATED--1.19%
10,700 Bharat Petroleum Corp.
Ltd. ....................... 107,768
7,100 Hindustan Petroleum Corp.
Ltd. ....................... 72,180
-------------
179,948
-------------
</TABLE>
17
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
INDIA--(CONCLUDED)
<TABLE>
<C> <S> <C>
PHARMACEUTICALS--0.44%
4,000 Ranbaxy Laboratories Ltd. .... $ 66,826
-------------
TELECOMMUNICATIONS--1.51%
24,200 Mahanagar Telephone Nigam..... 153,554
3,800 Videsh Sanchar Nigam Ltd. .... 74,153
-------------
227,707
-------------
TOBACCO--0.92%
7,000 ITC Ltd. ..................... 138,934
-------------
Total India Common Stocks...................... 1,228,111
-------------
INDONESIA--1.14%
COMMUNICATIONS--0.37%
18,000 Indosat....................... 26,325
77,000 Telekomunikasi Indonesia...... 30,319
-------------
56,644
-------------
FOODS--0.15%
52,000 Indofoods Sukses Makmur....... 22,100
-------------
MINING--0.10%
17,500 PT Tambang Timah.............. 14,601
-------------
MISCELLANEOUS MANUFACTURING--0.32%
11,000 P.T. Gudang Garam............. 13,131
54,000 PT H. M. Sampoerna............ 35,269
-------------
48,400
-------------
OILS--0.20%
2,000 Gulf Indonesia Resources
Ltd. ....................... 30,750
-------------
Total Indonesia Common Stocks.................. 172,495
-------------
ISRAEL--2.51%
BANKS--0.75%
62,000 Bank Leumi Le-Israel.......... 113,129
-------------
ELECTRONICS--0.25%
870 NICE-Systems Ltd.*............ 37,410
-------------
PHARMACEUTICALS--0.75%
2,660 Teva Pharmaceutical Industries
Ltd. ADS.................... 113,715
-------------
TELECOMMUNICATIONS--0.76%
3,780 ECI Telecommunications
Ltd.*....................... 115,290
-------------
Total Israel Common Stocks..................... 379,544
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
KOREA--3.63%
BANKS--0.45%
10,926 Kookmin Bank*................. $ 69,079
-------------
COMMUNICATIONS--0.37%
95 Korea Mobile Telecom Corp.*... 55,966
-------------
ELECTRICAL APPLIANCES--2.01%
9,310 L.G. Electronics Inc.*........ 110,759
1,500 L.G. Information &
Communication Ltd. ......... 45,567
343 Samsung Display Devices
Co. ........................ 17,066
2,360 Samsung Electronics Corp. .... 130,670
-------------
304,062
-------------
ELECTRICITY & GAS--0.31%
3,450 Korea Electric Power Corp.*... 46,981
-------------
MACHINERY/ENGINE SERVICES--0.33%
10,000 Daewoo Heavy Industrial....... 49,457
-------------
OILS--0.16%
3,310 Ssangyong Oil Refining Co.
Ltd. ....................... 23,872
-------------
Total Korea Common Stocks...................... 549,417
-------------
MALAYSIA--0.90%
COMMUNICATIONS--0.14%
7,000 Telekom Malaysia Berhad....... 21,019
-------------
ELECTRICITY & GAS--0.26%
20,000 Tenaga Nasional Berhad........ 39,946
-------------
SERVICES--0.50%
4,000 Berjaya Sports Toto Berhad.... 9,491
19,000 Magnum Corp. Berhad........... 12,735
11,000 Resorts World Berhad.......... 21,233
14,000 Tanjong PLC................... 31,903
-------------
75,362
-------------
Total Malaysia Common Stocks................... 136,327
-------------
MEXICO--12.58%
BANKS--0.79%
38,000 Grupo Financiero Banamex*..... 118,750
-------------
BREWERIES, PUBS, & RESTAURANTS--1.15%
23,500 Fomento Economico Mexicano,
S.A. de C.V. Series B....... 174,033
-------------
</TABLE>
18
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
MEXICO--(CONCLUDED)
<TABLE>
<C> <S> <C>
BUILDING MATERIALS & MERCHANTS--1.87%
56,500 Cemex, S.A. de C.V.*.......... $ 282,500
-------------
BUILDING & CONSTRUCTION--0.70%
21,300 Consorico Ara, S.A. de
C.V.*....................... 106,249
-------------
DIVERSIFIED INDUSTRIALS--1.54%
13,300 Desc--Sociedad de Fomento
Industrial, S.A. de C.V.
Series B*................... 92,535
33,000 Grupo Industrial Saltillo,
S.A. de C.V.*............... 140,872
-------------
233,407
-------------
FOOD PRODUCERS--0.66%
19,000 Grupo Industrial Bimbo, S.A.
de C.V...................... 47,724
46,000 Sistema Argos, S.A. de C.V.
Series B.................... 52,509
-------------
100,233
-------------
MEDIA--0.99%
5,500 Grupo Televisa, S.A. de
C.V.*....................... 112,854
2,000 TV Azteca, S.A. de C.V. ADR... 37,250
-------------
150,104
-------------
METALS--0.35%
2,900 Tubos De Acero de Mexico, S.A.
de C.V. ADR*................ 53,288
-------------
PAPER, PACKAGING & PRINTING--0.47%
14,600 Kimberly Clark de Mexico S.A.
de C.V. .................... 71,709
-------------
RETAIL--0.82%
100,000 Control Commerical Mexico..... 123,821
-------------
RETAILERS, GENERAL--1.13%
101,000 Cifra, S.A. de C.V. Series
C........................... 171,748
-------------
TELECOMMUNICATIONS--2.11%
5,640 Telefonos de Mexico, S.A. de
C.V. ADR.................... 319,365
-------------
Total Mexico Common Stocks..................... 1,905,207
-------------
PAKISTAN--0.61%
BANKS--0.00%
4 Bank of Punjab Ltd. .......... 1
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
PAKISTAN--(CONCLUDED)
<TABLE>
<C> <S> <C>
CHEMICALS--0.26%
9,899 Engro Chemicals Pakistan
Ltd.*....................... $ 22,057
9,000 Fauji Fertilizer Co. Ltd.*.... 17,747
-------------
39,804
-------------
ELECTRICITY--0.26%
39,000 Hub Power Co. ................ 39,735
-------------
OIL EXPLORATION & PRODUCTION--0.09%
2,552 Pakistan State Oil Company
Ltd.*....................... 12,879
-------------
Total Pakistan Common Stocks................... 92,419
-------------
PERU--0.44%
BUILDING & CONSTRUCTION--0.00%
1 Cementos Norte Pacasmayo,
S.A. ....................... 2
-------------
TELECOMMUNICATIONS--0.44%
3,000 Telefonica Del Peru S.A. Class
B ADS....................... 66,375
-------------
Total Peru Common Stocks....................... 66,377
-------------
PHILIPPINES--1.82%
BANKS--0.01%
1,000 Far East Bank & Trust......... 1,133
-------------
COMMUNICATIONS--1.07%
611,000 Digital Telecommunications
Philiphines, Inc.
(Digitel)*.................. 26,479
5,081 Philippine Long Distance
Telephone Co. .............. 136,042
-------------
162,521
-------------
ELECTRICITY & GAS--0.38%
20,361 Manila Electric Co. Class B... 57,812
-------------
REAL ESTATE--0.36%
138,104 Ayala Land Inc. .............. 54,175
-------------
Total Philippines Common Stocks................ 275,641
-------------
POLAND--2.54%
BANKS--1.02%
1,020 Bank Przemyslowo-Handlowy
S.A. ....................... 90,093
8,460 Bank Wielkopolski............. 65,508
-------------
155,601
-------------
BUILDING MATERIALS & CONSTRUCTION--0.24%
1,300 Gorazdze S.A. ................ 35,978
-------------
</TABLE>
19
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
POLAND--(CONCLUDED)
<TABLE>
<C> <S> <C>
DIVERSIFIED HOLDINGS COMPANIES--0.80%
8,500 Elektrim Spolka Akcyjna
S.A. ....................... $ 121,375
-------------
ELECTRICAL EQUIPMENT--0.48%
7,935 Bydgodsa Fabryka Kabli
S.A.*....................... 72,423
-------------
Total Poland Common Stocks..................... 385,377
-------------
PORTUGAL--4.25%
BANKS--0.58%
1,830 Banco Espirito Santo e
Comercial de Lisboa,
S.A. ....................... 87,546
-------------
BUILDING MATERIALS & CONSTRUCTION--0.53%
2,170 Cimpor-Cimento de Portugal.... 80,253
-------------
FORESTRY/PAPER PRODUCTS--0.50%
2,600 Semapa Sociedade de
Investimento e Gestao, SGPS,
S.A. ....................... 76,042
-------------
INSURANCE SERVICES--0.40%
1,780 Companhia de Seguros Mundial
Confianca S.A.*............. 61,253
-------------
RETAIL--0.89%
2,871 Estabelecimentos Jeronimo
Martins & Filho, SGPS,
S.A.*....................... 134,224
-------------
TELECOMMUNICATIONS--1.35%
2,240 Portugal Telecom S.A. ........ 120,372
465 Telecel Comunicacaoes Pessoais
S.A.*....................... 83,419
-------------
203,791
-------------
Total Portugal Common Stocks................... 643,109
-------------
RUSSIA--2.46%
ELECTRICITY--0.92%
4,180 Unified Energy System* GDR.... 140,030
-------------
OILS--1.54%
5,590 Gazprom ADR (1)............... 103,135
1,490 Lukoil Holdings............... 98,713
4,140 Surgutneftegaz ADR............ 31,050
-------------
232,898
-------------
Total Russia Common Stocks..................... 372,928
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
SOUTH AFRICA--8.43%
BANKS--1.37%
14,600 Amalg Banks of South Africa... $ 126,385
6,200 First National Bank Holding
Ltd. ....................... 80,966
-------------
207,351
-------------
BREWERIES, PUBS, & RESTAURANTS--0.99%
4,466 South African Brewery Ltd. ... 149,868
-------------
DIVERSIFIED INDUSTRIALS--1.47%
2,100 Anglo America Industrial Corp.
Ltd. ....................... 64,404
16,391 Barlow Ltd. .................. 158,429
-------------
222,833
-------------
ELECTRONIC & ELECTRICAL EQUIPMENT--0.21%
4,503 Dimension Data Holdings
Ltd.*....................... 31,273
-------------
EXTRACTIVE INDUSTRIES--1.13%
2,090 Anglo American Corporation of
South Africa Ltd. S.A. ..... 123,647
16,900 Billiton PLC*................. 47,817
-------------
171,464
-------------
OIL EXPLORATION & PRODUCTION--1.11%
16,715 Sasol Ltd. ................... 168,672
-------------
OTHER FINANCIAL--0.69%
6,300 Fedsure Holdings Ltd. ........ 105,333
-------------
PAPER, PACKAGING & PRINTING--0.74%
35,800 Malbak Ltd. .................. 34,001
18,100 Nampak Ltd. .................. 78,073
-------------
112,074
-------------
PHARMACEUTICALS--0.26%
7,000 South African Druggist
Ltd. ....................... 38,781
-------------
RETAILERS, GENERAL--0.46%
6,700 Ellerine Holdings Ltd. ....... 69,598
-------------
Total South Africa Common Stocks............... 1,277,247
-------------
TAIWAN--4.34%
COMMERCE/INDUSTRIAL--0.40%
4,981 Teco Electric & Machinery Ltd.
GDR......................... 61,640
-------------
ELECTRICAL APPLIANCES--2.80%
7,500 Acer Inc.*.................... 66,375
3,500 Asustek Computer Inc.*........ 71,750
</TABLE>
20
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
TAIWAN--(CONCLUDED)
ELECTRICAL APPLIANCES--(CONCLUDED)
<TABLE>
<C> <S> <C>
5,260 Siliconware Precision
Industries Company GDR*
(1)......................... $ 79,557
8,400 Taiwan Semiconductor
Manufacturing Company Ltd.*
(1) ........................ 206,325
-------------
424,007
-------------
INSURANCE--0.54%
4,000 Fubon Insurance Ltd. ......... 81,200
-------------
MISCELLANEOUS FINANCIAL--0.60%
5,500 R.O.C. Taiwan Fund............ 90,750
-------------
Total Taiwan Common Stocks..................... 657,597
-------------
THAILAND--1.40%
BANKS--0.50%
15,000 Bangkok Bank Public Co.
Ltd. ....................... 37,646
17,000 Thai Farmers Bank PLC......... 38,926
-------------
76,572
-------------
COMMUNICATIONS--0.28%
6,000 Advanced Information Service
PLC......................... 41,915
-------------
ELECTRICITY & GAS--0.18%
14,000 Electricity Generating Public
Company Ltd. ............... 27,167
-------------
OIL & GAS--0.44%
6,300 PTT Exploration & Production
Public Comany Ltd. ......... 66,504
-------------
Total Thailand Common Stocks................... 212,158
-------------
TURKEY--1.97%
BANKS--1.00%
739,810 Akbank........................ 62,896
1,800,000 Yapi ve Kredi Bankasi A.S. ... 88,218
-------------
151,114
-------------
HOUSEHOLD DURABLES & APPLIANCES--0.36%
1,095,423 Trakya Cam Sanayii A.S. ...... 54,782
-------------
RETAIL--0.39%
61,000 Migros Turk T.A.S. ........... 59,792
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
COMMON STOCKS--(CONCLUDED)
TURKEY--(CONCLUDED)
TELECOMMUNICATIONS EQUIPMENT--0.22%
90,000 Netas Northern Electric
Telekomunikasyon A.S.*...... $ 33,487
-------------
Total Turkey Common Stocks..................... 299,175
-------------
VENEZUELA--0.60%
ELECTRICITY--0.33%
81,837 Electricidad de Caracas....... 50,243
-------------
TELECOMMUNICATIONS--0.27%
1,200 Compania Anonima National
Telecom de Venezuela (CANTV)
ADR......................... 40,200
-------------
Total Venezuela Common Stocks.................. 90,443
-------------
ZIMBABWE--0.18%
OTHER FINANCIAL--0.18%
39,000 NMBZ Holdings................. 27,300
-------------
Total Common Stocks (cost--$11,860,217)........ 12,604,786
-------------
PREFERRED STOCKS--11.48%
BRAZIL--11.48%
BANKS--1.06%
6,076,655 Banco Bradesco S.A.*.......... 55,790
155,000 Banco Itau S.A.*.............. 104,359
-------------
160,149
-------------
BREWERIES, PUBS, & RESTAURANTS--0.53%
122,000 Cia Cervejaria Brahma......... 79,474
-------------
BUILDING MATERIALS & MERCHANTS--0.78%
520,000 Companhia Cimento Portland
Itau (CIA).................. 118,218
-------------
ELECTRICITY--2.65%
7,700,000 Centrais Electricas
Brasileiras S.A.
(Electrobras)............... 343,442
1,200,000 Companhia Energetica de Minas
Gerias (CEMIG).............. 58,235
-------------
401,677
-------------
ENGINEERING--0.35%
8,100 Usinas Siderurgicas de Minas
Gerais S.A. (Usiminas)*..... 53,119
-------------
</TABLE>
21
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
PREFERRED STOCKS--(CONTINUED)
BRAZIL--(CONCLUDED)
<TABLE>
<C> <S> <C>
MINING--1.15%
7,409 Companhia Vale do Rio Doce.... $ 174,704
-------------
OIL EXPLORATION & PRODUCTION--2.43%
1,452,000 Petroleo Brasileiros S.A.
(Petrobras)*................ 368,189
-------------
RETAILERS, GENERAL--0.01%
280,000 Empresa Nacional de Comercio
Redito e Participacoes
S.A. ....................... 764
-------------
TELECOMMUNICATIONS--2.52%
472,864 Telecomunicacoes de Sao Paulo
S.A. (Electrobras).......... 160,840
259,472 Telecomunicacoes do Parana
S.A. (Telepar).............. 148,153
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
PREFERRED STOCKS--(CONCLUDED)
BRAZIL--(CONCLUDED)
600,000 Telecomunicacones Brasileiras
S.A. (Telebras)............. $ 73,239
-------------
382,232
-------------
Total Preferred Stocks (cost--$1,725,181)...... 1,738,526
-------------
<CAPTION>
NUMBER OF
RIGHTS
- -------------
<C> <S> <C>
RIGHTS--0.02%
KOREA--0.02%
ELECTRICAL APPLIANCES--0.02%
187 Samsung Electronics Corp.,
(rights expiring 06/10/98)
(cost--$0).................. 3,610
</TABLE>
<TABLE>
<C> <S> <C>
-----------
Total Investments (cost--$13,585,398)--94.73%.......................................................... 14,346,922
798,706
Other assets in excess of liabilities--5.27%...........................................................
-----------
Net Assets--100.00%.................................................................................... $15,145,628
-----------
-----------
</TABLE>
- -------------
* Non-income producing security
+ Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from registration;
normally to qualified institutional buyers.
ADR American Depositary Receipts
ADS American Depositary Shares
GDR Global Depositary Receipts
(1) Security, or portion thereof, was loaned at April 30, 1998.
See accompanying notes to financial statements
22
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 1998(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
COMMON STOCKS--96.02%
AUSTRALIA--26.98%
BANKS--5.03%
147,300 Australia & New Zealand
Banking Group Ltd. ......... $ 1,028,306
41,000 St. George Bank Ltd. ......... 243,622
144,200 Westpac Bank Corp. ........... 968,761
-------------
2,240,689
-------------
BREWERIES, PUBS, & RESTAURANTS--2.00%
409,300 Foster's Brewing Group
Ltd. ....................... 891,667
-------------
BUILDING MATERIALS & MERCHANTS--0.81%
125,500 Pioneer International Ltd. ... 358,536
-------------
DIVERSIFIED INDUSTRIALS--4.15%
98,239 Broken Hill Propriety Co.
Ltd. ....................... 961,146
183,800 Pacific Dunlop Ltd. .......... 340,469
153,000 WMC Ltd. ..................... 544,877
-------------
1,846,492
-------------
ENGINEERING--1.39%
224,800 Pacific BBA Ltd. ............. 618,028
-------------
EXTRACTIVE INDUSTRIES--5.00%
36,300 Brambles Industries Ltd. ..... 748,420
314,000 Normandy Mining Ltd. ......... 350,219
63,000 Rio Tinto Ltd. ............... 873,693
558,000 Savage Resources.............. 254,769
-------------
2,227,101
-------------
INSURANCE--0.58%
55,800 QBE Insurance Group........... 256,225
-------------
LEISURE & HOTELS--1.55%
126,300 TABCORP Holdings Ltd. ........ 687,866
-------------
MEDIA--1.10%
72,900 News Corporation Ltd. ........ 488,804
-------------
OIL EXPLORATION & PRODUCTION--2.27%
154,100 Woodside Petroleum Ltd. ...... 1,008,133
-------------
PROPERTY--1.51%
29,300 Lend Lease Corp. Ltd. ........ 672,705
-------------
RETAILERS, GENERAL--0.95%
123,000 Woolworths Ltd. .............. 423,597
-------------
TELECOMMUNICATIONS--0.64%
122,000 Telstra Corp.*................ 286,468
-------------
Total Australia Common Stocks.................. 12,006,311
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
<TABLE>
<C> <S> <C>
HONG KONG--25.35%
BANKS--3.79%
46,800 HSBC Holdings PLC (1)......... $ 1,335,244
125,000 Wing Hang Bank Ltd............ 351,794
-------------
1,687,038
-------------
COMMERCE/INDUSTRIAL--1.64%
238,000 Citic Pacific Ltd. ........... 731,268
-------------
COMMUNICATIONS--0.76%
178,000 China Telecom*................ 337,800
-------------
CONSTRUCTION--1.75%
307,000 Cheung Kong Infrastucture
Holdings.................... 778,796
-------------
ELECTRICITY & GAS--3.87%
120,000 CLP Holdings.................. 576,298
346,300 Hong Kong & China Gas Ltd. ... 471,658
219,200 Hong Kong Electric Holdings... 673,504
-------------
1,721,460
-------------
REAL ESTATE--12.95%
166,000 Cheung Kong Holdings Ltd. .... 1,103,666
202,000 Henderson Land Development Co.
Ltd. ....................... 902,298
131,000 Hong Kong Land Holdings....... 184,710
178,000 Hutchison Whampoa Ltd. ....... 1,100,723
300,000 New World Development Ltd. ... 853,989
338,000 New World Infrastructure Ltd.*
(1)......................... 726,530
150,000 Sun Hung Kai Properties
Ltd. ....................... 890,782
-------------
5,762,698
-------------
SHIPPING--0.59%
384,000 Cosco Pacific Ltd. (1)........ 260,263
-------------
Total Hong Kong Common Stocks.................. 11,279,323
-------------
INDIA--6.25%
ELECTRICITY & GAS--0.22%
400 Tata Electric Companies GDR... 96,000
-------------
ELECTRONIC & ELECTRICAL EQUIPMENT--0.65%
29,000 Bharat Heavy Electricals
Ltd. ....................... 286,970
-------------
HOUSEHOLD GOODS & TEXTILES--1.07%
12,000 Hindustan Lever............... 476,495
-------------
OIL, INTEGRATED--0.96%
42,000 Hindustan Petroleum Corp. .... 426,980
-------------
PHARMACEUTICALS--0.49%
13,000 Ranbaxy Laboratories Ltd. .... 217,185
-------------
</TABLE>
23
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
INDIA--(CONCLUDED)
<TABLE>
<C> <S> <C>
TELECOMMUNICATIONS--1.27%
43,000 Mahanagar Telephone Nigam
Ltd. ....................... $ 272,844
15,000 Videsh Sanchar Nigam Ltd. .... 292,711
-------------
565,555
-------------
TEXTILES & APPAREL--0.97%
47,500 Reliance Industries Ltd.
(1)......................... 433,437
-------------
TOBACCO--0.62%
14,000 ITC Ltd. ..................... 277,867
-------------
Total India Common Stocks...................... 2,780,489
-------------
INDONESIA--0.35%
COMMUNICATIONS--0.35%
397,000 P.T. Telekomunikasi
Indonesia................... 156,319
-------------
KOREA--3.88%
BANKS--0.36%
25,076 Kook Min Bank*................ 158,543
-------------
COMMUNICATIONS--0.78%
587 SK Telecom Company Ltd.*...... 345,809
-------------
ELECTRICAL APPLIANCES--1.79%
31,100 L.G. Electronics Inc.*........ 369,989
7,685 Samsung Electronics Corp.*.... 425,507
-------------
795,496
-------------
ELECTRICITY & GAS--0.95%
31,200 Korea Electric Power Corp.*... 424,871
-------------
Total Korea Common Stocks...................... 1,724,719
-------------
MALAYSIA--8.28%
CHEMICALS--0.38%
128,000 Chem Co. Malaysia Berhad...... 170,895
-------------
COMMUNICATIONS--1.27%
187,500 Telekom Malaysia Berhad (1)... 563,003
-------------
CONSTRUCTION--0.68%
268,000 Gamuda Berhad (1)............. 303,206
-------------
ELECTRICITY & GAS--1.51%
40,000 Petronas Gas Berhad........... 96,515
288,000 Tenaga Nasional Berhad........ 575,228
-------------
671,743
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
MALAYSIA--(CONCLUDED)
<TABLE>
<C> <S> <C>
FOODS--1.67%
484,000 IOI Corp. Berhad (1).......... $ 363,324
241,000 KFC Holdings (Malaysia)
Berhad...................... 381,207
-------------
744,531
-------------
INSURANCE--0.69%
177,000 Malaysian Assurance Berhad*
(1)......................... 308,445
-------------
METALS--0.39%
105,000 Kian Joo Can Factory Berhad... 174,531
-------------
SERVICES--1.18%
488,000 Magnum Corp. Berhad (1)....... 327,078
101,000 Star Publications Berhad...... 143,512
23,000 Tanjong Berhad................ 52,413
-------------
523,003
-------------
SHIPPING--0.51%
130,000 Malaysia International
Shipping Berhad............. 226,541
-------------
Total Malaysia Common Stocks................... 3,685,898
-------------
NEW ZEALAND--2.81%
BUILDING & CONSTRUCTION--0.47%
103,000 Fletcher Challenge Building... 208,268
-------------
COMMUNICATIONS--1.39%
130,000 Telecom Corp. of New Zealand
Ltd. ....................... 617,438
-------------
PHARMACEUTICALS--0.95%
142,200 Fisher & Paykel............... 422,608
-------------
Total New Zealand Common Stocks................ 1,248,314
-------------
PHILIPPINES--2.08%
BANKS--0.00%
2,000 Far East Bank And Trust....... 2,267
-------------
COMMUNICATIONS--0.87%
14,400 Philippine Long Distance
Telephone Co. (1)........... 385,554
-------------
ELECTRICITY & GAS--0.48%
75,300 Manila Electric Co. (Class B)
(1)......................... 213,803
-------------
REAL ESTATE--0.73%
823,200 Ayala Land Inc. (Class B)..... 322,924
-------------
Total Philippines Common Stocks................ 924,548
-------------
</TABLE>
24
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
COMMON STOCKS--(CONTINUED)
<TABLE>
<C> <S> <C>
SINGAPORE--12.18%
BANKS--3.15%
82,500 Development Bank of Singapore
Ltd......................... $ 547,393
15,000 Development Bank Of Singapore
Ltd. Class A*............... 97,630
160,000 United Overseas Bank Ltd. .... 758,294
-------------
1,403,317
-------------
COMMUNICATIONS--0.49%
127,000 Singapore Telecomm (1)........ 218,287
-------------
IRON & STEEL--0.64%
217,000 Natsteel Ltd. ................ 285,220
-------------
MISCELLANEOUS MANUFACTURING--2.09%
256,000 Venture Manufacturing
(Singapore) Ltd. ........... 930,174
-------------
REAL ESTATE--1.48%
89,000 City Development Ltd.......... 385,245
229,000 Keppel Land Ltd. ............. 272,051
-------------
657,296
-------------
SERVICES--2.54%
102,080 Singapore Press Holdings
Ltd......................... 1,128,847
-------------
TEXTILES--0.20%
233,500 Courts Singapore.............. 90,744
-------------
TRANSPORTATION--1.02%
70,000 Singapore International
Airlines.................... 455,608
-------------
TRANSPORTATION EQUIPMENT--0.57%
94,000 Keppel Corp. ................. 253,043
-------------
Total Singapore Common Stocks.................. 5,422,536
-------------
TAIWAN--5.79%
COMMERCE/INDUSTRIAL--0.95%
20,700 Asustek Computer Inc.*........ 424,350
-------------
ELECTRICAL APPLIANCES--3.46%
57,500 Acer Inc.* (1)................ 508,875
25,000 Siliconware Precision
Industries Co. GDR* (1)+.... 378,125
26,500 Taiwan Semiconductor
Manufacturing Co. Ltd.*
(1)......................... 650,906
-------------
1,537,906
-------------
<CAPTION>
NUMBER OF
SHARES VALUE
- ------------- -------------
<C> <S> <C>
</TABLE>
TAIWAN--(CONCLUDED)
<TABLE>
<C> <S> <C>
MISCELLANEOUS FINANCIAL--0.57%
30,000 R.O.C. Taiwan Fund............ $ 255,000
-------------
MISCELLANEOUS MANUFACTURING--0.81%
29,201 Teco Electric & Machinery Ltd.
GDR* (1).................... 361,363
-------------
Total Taiwan Common Stocks..................... 2,578,619
-------------
THAILAND--2.07%
BANKS--0.64%
66,000 Bangkok Bank Public Co.
Ltd. ....................... 165,641
53,000 Thai Farmers Bank PLC (1)..... 121,358
-------------
286,999
-------------
ELECTRICITY & GAS--0.70%
160,000 Electricity Generating Public
Co. Ltd. (1)................ 310,478
-------------
MINING--0.73%
30,800 PTT Exploration & Production
PLC......................... 325,133
-------------
Total Thailand Common Stocks................... 922,610
-------------
Total Common Stocks (cost--$54,275,696)........ 42,729,686
-------------
WARRANTS--0.00%
<CAPTION>
NUMBER OF
WARRANTS
- -------------
<C> <S> <C>
HONG KONG--0.00%
ELECTRICITY & GAS--0.00%
18,650 Hong Kong & China Gas Ltd.,
warrants expiring 09/30/99;
exercise price
HKD 12.27 (cost--$0)........ 24
-------------
RIGHTS--0.03%
<CAPTION>
NUMBER OF
RIGHTS
- -------------
<C> <S> <C>
KOREA--0.03%
ELECTRICAL APPLIANCES--0.03%
611 Samsung Electronics Corp.,
rights expiring 06/10/98
(cost--$0).................. 11,795
-------------
</TABLE>
25
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------------- ------------- ------------- -------------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT--4.15%
$ 1,848 Repurchase Agreement dated
04/30/98 with State Street
Bank & Trust Company,
collateralized by $1,645,000
U.S. Treasury Bonds, 7.875%
due 11/15/04
(value-$1,888,952);
proceeds: $1,848,257
(cost-$1,848,000)........... 05/01/98 5.000% $ 1,848,000
-------------
Total Investments (cost--$56,123,696)--100.20%.................................... 44,589,505
Liabilities in excess of other assets--(0.20)%.................................... (87,072)
-------------
Net Assets--100.00%............................................................... $ 44,502,433
-------------
-------------
</TABLE>
- -----------------
* Non-income producing securities
+ Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be sold in transactions exempt from registration;
normally to qualified institutional buyers.
GDR Global Depositary Receipts
(1) Security, or portion thereof, was on loan at April 30, 1998.
See accompanying notes to financial statements
26
<PAGE>
PAINEWEBBER
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1998(UNAUDITED)
<TABLE>
<CAPTION>
EMERGING
GLOBAL EQUITY MARKETS ASIA PACIFIC
FUND EQUITY FUND GROWTH FUND
------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS
Investments, at value (cost--$403,353,858,
$13,585,398 and $56,123,696, respectively).... $ 511,993,187 $ 14,346,922 $ 44,589,505
Investments of collateral received for
securities loaned, at value................... 22,981,274 270,145 6,363,116
Cash............................................ 4,157 489,592 10,876
Cash denominated in foreign currencies, at value
(cost--$3,495,641, $159,150 and $146,891,
respectively)................................. 3,491,893 159,945 147,606
Receivable for investments sold................. 3,458,533 361,496 198,174
Receivable for shares of beneficial interest
sold.......................................... 557,554 14,708 32,753
Dividends and interest receivable............... 1,328,359 80,240 158,939
Deferred organizational expenses................ -- 37,544 117,918
Other assets.................................... 212,732 33,833 102,559
------------- --------------- ---------------
Total assets.................................... 544,027,689 15,794,425 51,721,446
------------- --------------- ---------------
LIABILITIES
Collateral for securities loaned................ 22,981,274 270,145 6,363,116
Payable for investments purchased............... 3,616,984 198,138 183,285
Payable for shares of beneficial interest
repurchased................................... 1,187,441 54,069 414,685
Payable to affiliates........................... 1,053,803 10,473 154,485
Accrued expenses and other liabilities.......... 424,205 115,972 103,442
------------- --------------- ---------------
Total liabilities............................... 29,263,707 648,797 7,219,013
------------- --------------- ---------------
NET ASSETS
Beneficial interest shares of $0.001 par value
outstanding (unlimited amount authorized)..... 385,374,801 31,579,513 73,687,676
Accumulated net investment loss................. (2,500,012) (62,337) (158,544)
Accumulated net realized gains (losses) from
investments and foreign currency.............. 23,289,761 (17,126,790) (17,477,192)
Net unrealized appreciation/depreciation of
investments and other assets and liabilities
denominated in foreign currencies............. 108,599,432 755,242 (11,549,507)
------------- --------------- ---------------
Net assets...................................... $ 514,763,982 $ 15,145,628 $ 44,502,433
------------- --------------- ---------------
------------- --------------- ---------------
CLASS A:
Net assets...................................... $ 319,586,499 $ 7,837,441 $ 16,630,919
------------- --------------- ---------------
Shares outstanding.............................. 16,668,147 808,517 2,043,621
------------- --------------- ---------------
Net asset and redemption value per share........ $19.17 $9.69 $8.14
------------- --------------- ---------------
------------- --------------- ---------------
Maximum offering price per share (net asset
value plus sales charge of 4.50% of offering
price)........................................ $20.07 $10.15 $8.52
----- ------ -----
----- ------ -----
CLASS B:
Net assets...................................... $ 75,077,711 $ 906,790 $ 18,781,143
------------- --------------- ---------------
Shares outstanding.............................. 4,110,870 95,936 2,327,033
------------- --------------- ---------------
Net asset value and offering price per share.... $18.26 $9.45 $8.07
------------- --------------- ---------------
------------- --------------- ---------------
CLASS C:
Net assets...................................... $ 54,892,873 $ 4,622,602 $ 9,080,373
------------- --------------- ---------------
Shares outstanding.............................. 3,003,102 490,118 1,124,757
------------- --------------- ---------------
Net asset value and offering price per share.... $18.28 $9.43 $8.07
------------- --------------- ---------------
------------- --------------- ---------------
CLASS Y:
Net assets...................................... $ 65,206,899 $ 1,778,795 $ 9,998
------------- --------------- ---------------
Shares outstanding.............................. 3,341,378 182,080 1,230
------------- --------------- ---------------
Net asset value, offering price and redemption $19.51 $9.77 $8.13
value per share............................... ------------- --------------- ---------------
------------- --------------- ---------------
</TABLE>
See accompanying notes to financial statements
27
<PAGE>
PAINEWEBBER
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 1998(UNAUDITED)
<TABLE>
<CAPTION>
GLOBAL EMERGING MARKETS ASIA PACIFIC
EQUITY FUND EQUITY FUND GROWTH FUND
------------ ---------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $223,477, $9,285 and $27,309,
respectively)................................................................... $ 2,692,411 $ 164,874 $ 506,849
Interest.......................................................................... 104,646 6,401 68,684
------------ ---------------- ------------
2,797,057 171,275 575,533
------------ ---------------- ------------
EXPENSES:
Investment advisory and administration............................................ 2,009,891 99,657 282,523
Service fees--Class A............................................................. 357,331 10,134 21,489
Service and distribution fees--Class B............................................ 383,660 5,230 98,574
Service and distribution fees--Class C............................................ 262,440 23,203 50,893
Custody and accounting............................................................ 597,347 30,396 84,888
Transfer agency and related service fees.......................................... 216,013 11,950 39,792
Reports and notices to shareholders............................................... 69,934 39,156 22,523
Legal and audit................................................................... 45,256 44,514 45,530
State registration fees........................................................... 26,165 13,830 67,248
Trustees' fees.................................................................... 7,810 7,810 6,942
Interest expense.................................................................. -- 4,525 --
Amortization of organizational expenses........................................... -- 28,274 14,989
Other expenses.................................................................... 727 2,525 618
------------ ---------------- ------------
3,976,574 321,204 736,009
Less: Fee waivers................................................................. -- (100,767) --
------------ ---------------- ------------
Net expenses...................................................................... 3,976,574 220,437 736,009
------------ ---------------- ------------
NET INVESTMENT LOSS............................................................... (1,179,517) (49,162) (160,476)
------------ ---------------- ------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENT TRANSACTIONS:
Net realized gains (losses) from:
Investments................................................................... 25,546,532 (1,446,010) (15,252,224)
Foreign currency transactions................................................. (610,455) (99,616) (82,602)
Net change in unrealized appreciation/depreciation of:
Investments................................................................... 69,279,920 1,642,761 10,568,434
Other assets and liabilities denominated in foreign currencies................ (79,628) (15,632) (13,590)
------------ ---------------- ------------
NET REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENT TRANSACTIONS........... 94,136,369 81,503 (4,779,982)
------------ ---------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................... $ 92,956,852 $ 32,341 $ (4,940,458)
------------ ---------------- ------------
------------ ---------------- ------------
</TABLE>
See accompanying notes to financial statements
28
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS
ENDED FOR THE YEAR
APRIL 30, 1998 ENDED
(UNAUDITED) OCTOBER 31, 1997
---------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss............................. $ (1,179,517) $ (1,080,165)
Net realized gains from investments............. 25,546,532 80,862,560
Net realized losses from foreign currency
transactions.................................. (610,455) (1,597,745)
Net changes in unrealized
appreciation/depreciation of:
Investments................................... 69,279,920 (26,841,519)
Other assets and liabilities denominated in
foreign currencies............................ (79,628) 161,247
---------------- ----------------
Net increase in net assets resulting from
operations.................................... 92,956,852 51,504,378
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gains from investment
transactions--Class A......................... (37,180,745) (10,195,197)
Net realized gains from investment
transactions--Class B......................... (11,285,760) (3,786,480)
Net realized gains from investment
transactions--Class C......................... (7,351,661) (2,275,485)
Net realized gains from investment
transactions--Class Y......................... (7,350,899) (2,076,082)
---------------- ----------------
(63,169,065) (18,333,244)
---------------- ----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares............ 273,499,579 354,354,793
Cost of shares repurchased...................... (342,537,763) (462,072,864)
Proceeds from dividends reinvested.............. 59,838,962 17,254,508
---------------- ----------------
Net decrease in net assets from beneficial
interest transactions......................... (9,199,222) (90,463,563)
---------------- ----------------
Net increase (decrease) in net assets........... 20,588,565 (57,292,429)
NET ASSETS:
Beginning of period............................. 494,175,417 551,467,846
---------------- ----------------
End of period................................... $514,763,982 $494,175,417
---------------- ----------------
---------------- ----------------
</TABLE>
See accompanying notes to financial statements
29
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS
ENDED FOR THE YEAR
APRIL 30, 1998 ENDED
(UNAUDITED) OCTOBER 31, 1997
---------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss............................. $ (49,162) $ (166,398)
Net realized gains (losses) from investments.... (1,446,010) 515,472
Net realized losses from foreign currency
transactions.................................. (99,616) (78,052)
Net change in unrealized
appreciation/depreciation of:
Investments................................... 1,642,761 47,391
Other assets and liabilities denominated in
foreign currencies............................ (15,632) 22,836
---------------- ----------------
Net increase in net assets resulting from
operations.................................... 32,341 341,249
---------------- ----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares............ 5,498,605 19,732,492
Cost of shares repurchased...................... (16,603,051) (28,983,261)
---------------- ----------------
Net decrease in net assets from beneficial
interest transactions......................... (11,104,446) (9,250,769)
---------------- ----------------
Net decrease in net assets...................... (11,072,105) (8,909,520)
NET ASSETS:
Beginning of period............................. 26,217,733 35,127,253
---------------- ----------------
End of period................................... $ 15,145,628 $ 26,217,733
---------------- ----------------
---------------- ----------------
</TABLE>
See accompanying notes to financial statements
30
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS FOR THE PERIOD
ENDED ENDED
APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997+
---------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss............................. $ (160,476) $ (49,631)
Net realized losses from investments............ (15,252,224) (2,142,366)
Net realized losses from foreign currency
transactions.................................. (82,602) (86,558)
Net unrealized appreciation/depreciation of:
Investments................................... 10,568,434 (22,102,625)
Other assets and liabilities denominated in
foreign currencies............................ (13,590) (1,726)
---------------- ----------------
Net decrease in net assets resulting from
operations.................................... (4,940,458) (24,382,906)
---------------- ----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares............ 12,959,504 104,360,162
Cost of shares repurchased...................... (21,818,232) (21,675,637)
---------------- ----------------
Net increase (decrease) in net assets from
beneficial interest transactions.............. (8,858,728) 82,684,525
---------------- ----------------
Net increase (decrease) in net assets........... (13,799,186) 58,301,619
NET ASSETS:
Beginning of period............................. 58,301,619 0
---------------- ----------------
End of period (including undistributed net
investment income of $1,932 at October 31,
1997)......................................... $ 44,502,433 $ 58,301,619
---------------- ----------------
---------------- ----------------
</TABLE>
- ---------------
+ For the period March 25, 1997 (commencement of operations) through October 31,
1997
See accompanying notes to financial statements
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The PaineWebber Global Equity Fund ("Global Equity Fund"), a diversified
series of PaineWebber Investment Trust, the PaineWebber Emerging Markets Equity
Fund ("Emerging Markets Equity Fund"), a diversified series of PaineWebber
Investment Trust II and the PaineWebber Asia Pacific Growth Fund (the "Asia
Pacific Growth Fund"), a diversified series of PaineWebber Managed Investments
Trust (the "Trust") (each a "Trust") are registered with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended, as
open-end management investment companies. Organizational costs have been
deferred and are being (or, in the case of Global Equity Fund, have been)
amortized using the straight-line method over a period not to exceed 60 months
from the date the Funds commenced operations.
Each Fund offers Class A, Class B, Class C and Class Y 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
service and distribution charges and certain transfer agency and related
expenses. In addition, Class B shares and all corresponding dividend reinvested
shares automatically convert to Class A shares approximately six years after
initial issuance. All classes of shares have equal voting privileges, except
that Class A, Class B and Class C shares have exclusive voting rights with
respect to their service and/or distribution plan.
The preparation of financial statements in accordance with generally accepted
accounting principles requires the Funds' management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is a
summary of significant accounting policies:
VALUATION OF INVESTMENTS--Securities which are listed on U.S. and foreign
stock exchanges are valued at the last sale 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 asset management subsidiary of
PaineWebber Incorporated ("PaineWebber") and investment adviser, administrator
and distributor of each Fund, or a Fund's sub-adviser, GE Investment Management
Incorporated ("GEIM"), for Global Equity Fund, or Schroder Capital Management
International Inc. ("Schroder"), for Emerging Markets Equity Fund and the Asia
Pacific Growth Fund, as the primary market. Securities traded in the
over-the-counter ("OTC") market and listed on the Nasdaq Stock Market, Inc.
("Nasdaq") are valued at the last trade price on Nasdaq prior to the time of
valuation. When market quotations are not readily available, securities are
valued based upon appraisals derived from information concerning those
securities or similar securities received from a recognized dealer in those
securities. The amortized cost method of valuation, which approximates market
value, is used to value short-term debt instruments with 60 days or less
remaining to maturity unless a Trusts' Board determines that this does not
represent fair value. Securities and assets for which market quotations are not
readily available (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 Trusts' Board.
All investments quoted in foreign currencies are 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, unless each Trusts' Board
determines that this does not represent fair value. Foreign currency exchange
rates are generally determined prior to the close of trading on the New York
Stock Exchange ("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 trading on
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
the NYSE, which will not be reflected in a computation of each Fund's net asset
value. If events materially affecting the value of such investments or currency
exchange rates occur during such time period, the investments will be valued at
their fair value as determined in good faith by or under the direction of a
Trust's Board.
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 Funds have 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 Funds occasionally
participate in joint repurchase agreement transactions with other funds managed
by Mitchell Hutchins.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are
recorded on the trade date. Realized gains and losses from investment and
foreign exchange transactions are calculated using the identified cost method.
Dividend income is recorded on the ex-dividend date ("ex-date") (except in the
case of certain foreign dividends which are recorded as soon after the
ex-dividend date as each Fund using reasonable diligence becomes aware of such
dividends). 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.
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 each Fund are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars as follows: (1) the foreign currency market value of investment
securities and other assets and liabilities stated in foreign currencies are
translated at the exchange rates prevailing at the end of the period; and (2)
purchases, sales, income and expenses are translated at the rate of exchange
prevailing on the respective dates of such transactions. The resulting exchange
gains and losses are included in the Statement of Operations.
Although the net assets and the market values of each Fund's securities are
presented at the foreign exchange rates at the end of the period, the Funds do
not generally isolate the effect of fluctuations in foreign exchange rates from
the effect of the changes in market prices of securities. However, the Funds do
isolate the effect of fluctuations in foreign exchange rates when determining
the realized gain or loss upon the sale or maturity of foreign currency
denominated debt obligation pursuant to federal income tax regulations. Certain
foreign exchange gains and losses included in realized and unrealized gains and
losses are included in or are a reduction of ordinary income in accordance with
federal income tax regulations. Net realized foreign currency gain (loss) is
treated as ordinary income for income tax reporting purposes. Gains/losses from
translating foreign currency denominated assets and liabilities at year-end
exchange rates are included in change in unrealized appreciation/depreciation of
other assets and liabilities denominated in foreign currencies.
DIVIDENDS AND DISTRIBUTIONS--Dividends and distributions to shareholders are
recorded on the ex-date. The amount of dividends and distributions are
determined in accordance with federal income tax regulations, which may differ
from
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification.
CONCENTRATION OF RISK
Investing in securities of foreign issuers and currency transactions may
involve certain considerations and risks not typically associated with
investments in the United States. These risks include revaluation of currencies,
adverse fluctuations in foreign currency values and possible adverse political,
social and economic developments, including those particular to a specific
industry, country or region, which could cause the securities and their markets
to be less liquid and prices more volatile than those of comparable U.S.
companies. These risks are greater with respect to securities of issuers located
in emerging market countries in which each of the Funds' invest. The ability of
the issuers of debt securities held by a Fund to meet their obligations may be
affected by economic and political developments in a specific industry, country
or region.
INVESTMENT ADVISER AND ADMINISTRATOR
Each Fund has 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 for the Global Equity Fund, Mitchell Hutchins receives
compensation from the Fund, computed daily and paid monthly, at an annual rate
of 0.85% of the Fund's average daily net assets up to and including $500
million, 0.83% of its average daily net assets over $500 million and up to and
including $1 billion and 0.805% of its average daily net assets over $1 billion.
In accordance with the Advisory Contract for the Emerging Markets Equity Fund,
Mitchell Hutchins receives compensation from the Fund, computed daily and paid
monthly, at a rate of 1.20% of its average daily net assets. In accordance with
the Advisory Contract for the Asia Pacific Growth Fund, Mitchell Hutchins
receives compensation from the Fund, computed daily and paid monthly, at an
annual rate of 1.20% of the Fund's average daily net assets up to and including
$100 million and 1.10% of its average daily net assets over $100 million.
Under a separate contract with Mitchell Hutchins ("Sub-Advisory Contract"),
GEIM serves as the sub-adviser to the Global Equity Fund. Under the Sub-Advisory
Contract, Mitchell Hutchins (not the Fund) pays GEIM a fee, computed daily and
paid monthly, at an annual rate of 0.31% of the Fund's average daily net assets
up to and including $500 million, 0.29% of the Fund's average daily net assets
over $500 million and up to and including $1 billion and 0.265% of the Fund's
average daily net assets over $1 billion.
Under a separate contract with Mitchell Hutchins ("Sub-Advisory Contract"),
Schroder serves as the sub-adviser to the Emerging Markets Equity Fund. Under a
Sub-Advisory Contract, Mitchell Hutchins (not the Fund) pays Schroder a fee,
computed daily and paid monthly, at an annual rate of 0.70% of the Fund's
average daily net assets.
Under a separate contract with Mitchell Hutchins ("Sub-Advisory Contract"),
Schroder serves as the sub-adviser to the Asia Pacific Growth Fund. Under the
Sub-Advisory Contract, Mitchell Hutchins (not the Fund) pays Schroder a fee,
computed daily and paid monthly, at an annual rate of 0.65% of the Fund's
average daily net assets up to and including $100 million and 0.55% of the
Fund's average daily net assets over $100 million.
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
At April 30, 1998 the Global Equity Fund, the Emerging Markets Equity Fund,
and the Asia Pacific Growth Fund owed Mitchell Hutchins $706,342, $3,136 and
$94,506, respectively, in investment advisory and administrative fees. Mitchell
Hutchins voluntarily waived $99,657 of its management fee for the Emerging
Markets Equity Fund for the six months ended April 30, 1998. Mitchell Hutchins
may discontinue this waiver at any time.
For the periods ended April 30, 1998, the Funds paid no brokerage commissions
to PaineWebber for transactions executed on behalf of the Funds.
DISTRIBUTION PLAN
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 service and/or distribution pertaining to Class A, Class B and Class C
shares, each Fund pays Mitchell Hutchins monthly service fees at the annual rate
0.25% of the average daily net assets of Class A, Class B and Class C shares and
monthly distribution fees at the annual rate of 0.75% of the average daily net
assets of Class B and Class C shares. At April 30, 1998 the Global Equity Fund,
the Emerging Markets Equity Fund and the Asia Pacific Growth Fund owed Mitchell
Hutchins $344,314, $7,049 and $57,004, respectively, in service and distribution
fees. Mitchell Hutchins voluntarily waived $1,110 of its service & distribution
fees for the Emerging Markets Equity Fund for the six months ended April 30,
1998.
Mitchell Hutchins also receives the proceeds of the initial sales charges paid
by shareholders upon the purchase of Class A shares and the contingent deferred
sales charges paid by the shareholders upon certain redemptions of Class A,
Class B and Class C shares. Mitchell Hutchins has informed the Global Equity
Fund, the Emerging Markets Equity Fund and the Asia Pacific Growth Fund that for
the six months ended April 30, 1998 it had earned $128,043, $7,297 and $214,393,
respectively, in sales charges.
SECURITY LENDING
Each Fund may lend up to 33 1/3% of its total assets to qualified
institutions. The loans are secured at all times by cash or U.S. government
securities in an amount at least equal to the market value of the securities
loaned, plus accrued interest and dividends, determined on a daily basis and
adjusted accordingly. Each Fund will regain record ownership of loaned
securities to exercise certain beneficial rights; however, each Fund may bear
the risk of delay in recovery of, or even loss of rights in, the securities
loaned should the borrower fail financially. Each Fund receives compensation,
which is included in interest income, for lending its securities from interest
earned on the cash or U.S. government securities held as collateral, net of fee
rebates paid to the borrower plus reasonable administrative and custody fees.
Each Fund's lending agent is PaineWebber, who received compensation from the
Funds for the six months ended April 30, 1998 as follows:
<TABLE>
<S> <C>
Global Equity Fund..................................................................... $ 19,293
Emerging Markets Equity Fund........................................................... $ 1,490
Asia Pacific Growth Fund............................................................... $ 16,589
</TABLE>
At April 30, 1998, the Global Equity Fund, Emerging Markets Equity Fund and
Asia Pacific Growth Fund owed PaineWebber $3,147, $288 and $2,975, respectively,
in security lending fees.
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
As of April 30, 1998, each Fund held cash and/or cash equivalents as
collateral for securities loaned as follows:
<TABLE>
<CAPTION>
COLLATERAL MARKET
FOR VALUES OF
SECURITIES SECURITIES
LOANED LOANED
------------ ------------
<S> <C> <C>
Global Equity Fund.............................................................. $22,981,274 $21,593,134
Emerging Markets Equity Fund.................................................... $ 270,145 $ 245,150
Asia Pacific Growth Fund........................................................ $6,363,116 $6,047,443
</TABLE>
As of April 30, 1998 the Funds invested the above collateral in the following
money market Funds and repurchase agreement:
GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
NUMBER OF
SHARES/
PRINCIPAL
AMOUNT
- ----------
<C> <S> <C>
22,433,734 Liquid Assets Portfolio........................................................... $22,433,734
461,447 Prime Portfolio................................................................... 461,447
85,530 TempCash Portfolio................................................................ 85,530
563 TempFund Portfolio................................................................ 563
-----------
$22,981,274
-----------
-----------
</TABLE>
EMERGING MARKETS EQUITY FUND
<TABLE>
<C> <S> <C>
247,411 Liquid Assets Portfolio................................................. $ 247,411
22,734 TempFund Portfolio...................................................... 22,734
----------
$ 270,145
----------
----------
</TABLE>
ASIA PACIFIC GROWTH FUND
<TABLE>
<C> <S> <C>
2,120,182 Liquid Assets Portfolio.................................................. $2,120,182
2,345,604 Prime Portfolio.......................................................... 2,343,604
55,275 TempCash Portfolio....................................................... 55,275
55 TempFund Portfolio....................................................... 55
1,844,000 Societe Generale Repurchase Agreement, (collateralized by $1,403,000 U.S.
Treasury Bonds, 8.750% due 08/15/20, value--$1,883,528) 5.520%, due
05/01/98................................................................ 1,844,000
---------
$6,363,116
---------
---------
</TABLE>
BANK LINE OF CREDIT
Each Fund may participate with other funds managed by Mitchell Hutchins in a
$200 million committed credit facility ("Facility") to be utilized for temporary
financing until settlement of sales or purchases of portfolio securities, the
repurchase or redemption of shares of each fund at the request of the
shareholders and other temporary or emergency purposes. In connection therewith,
each Fund has agreed to pay a commitment fee, pro rata, based on the relative
asset size of the funds in the Facility. Interest is charged to a fund at rates
based on prevailing market rates in
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
effect at the time of borrowings. For the six months ended April 30, 1998 the
Emerging Markets Equity Fund borrowed under the Facility and had an average
daily amount of borrowings of $5,500,000, over five days, with a weighted
average annualized interest rate of 5.94%.
TRANSFER AGENCY AND RELATED SERVICES FEES
PaineWebber provides transfer agency related services to each Fund pursuant to
a delegation of authority from PFPC Inc., the Funds' transfer agent, and is
compensated for these services by PFPC Inc., not the Funds. For the six months
ended April 30, 1998, PaineWebber received from PFPC, Inc., not the Funds,
approximately 56%, 54% and 56% of the total transfer agency and related services
fees collected by PFPC from the Global Equity Fund, Emerging Markets Equity Fund
and Asia Pacific Growth Fund, respectively.
INVESTMENTS IN SECURITIES
For federal income tax purposes, the cost of securities owned at April 30,
1998 was substantially the same as the cost of securities for financial
statement purposes.
At April 30, 1998, the components of net unrealized appreciation/depreciation
were as follows:
<TABLE>
<CAPTION>
EMERGING
GLOBAL EQUITY MARKETS ASIA PACIFIC
FUND EQUITY FUND GROWTH FUND
------------- ----------- ------------
<S> <C> <C> <C>
Gross appreciation (investments having an excess of value over
cost)............................................................ $ 122,737,101 $ 2,139,748 $ 1,899,569
Gross depreciation (investments having an excess of cost over
value)........................................................... (14,097,772) (1,378,224) (13,433,760)
------------- ----------- ------------
Net appreciation (depreciation) of investments.................... $ 108,639,329 $ 761,524 $(11,534,191)
------------- ----------- ------------
------------- ----------- ------------
</TABLE>
For the year ended April 30, 1998, total aggregate purchases and sales of
portfolio securities, excluding short term securities were as follows:
<TABLE>
<CAPTION>
EMERGING
GLOBAL EQUITY MARKETS ASIA PACIFIC
FUND EQUITY FUND GROWTH FUND
------------- ----------- ------------
<S> <C> <C> <C>
Purchases........................................................ $ 149,842,908 $ 5,252,631 $14,585,464
Sales............................................................ $ 223,921,266 $16,249,378 $23,862,250
</TABLE>
FEDERAL INCOME TAX STATUS
The Funds intend to distribute substantially all of their 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 their net investment income, capital gains and certain
other amounts, if any, the Funds intend not to be subject to a federal excise
tax.
At October 31, 1997 the Funds had the following net capital loss carryforwards
available as reductions, to the extent provided in the regulations, of future
net realized capital gains which expire as follows:
<TABLE>
<CAPTION>
EMERGING
GLOBAL EQUITY MARKETS ASIA PACIFIC
FISCAL YEAR ENDING FUND EQUITY FUND GROWTH FUND
- ------------------------------------------------------------------ --------------- ----------- ------------
<S> <C> <C> <C>
2002.............................................................. -- $ 7,735,682 --
2003.............................................................. -- 2,285,302 --
2004.............................................................. -- 5,437,965 --
2005.............................................................. -- -- $2,125,000
--- ----------- ------------
-- $15,458,949 $2,125,000
--- ----------- ------------
--- ----------- ------------
</TABLE>
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
SHARES OF BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value shares of benefical interest
authorized. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS Y
-------------------------- ------------------------- ------------------------- -------------------------
GLOBAL EQUITY FUND SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL
30, 1998
Shares sold........... 12,610,270 $ 221,838,304 82,256 $ 1,393,692 2,045,932 $ 33,716,386 918,673 $ 16,551,197
Shares repurchased.... (14,803,412) (262,717,525) (981,206) (16,289,524) (2,594,957) (43,113,669) (1,131,318) (20,417,045)
Shares converted from
Class B to Class A... 577,752 10,194,981 (604,241) (10,194,981) -- -- -- --
Dividend reinvested... 2,234,439 35,103,031 688,904 10,340,457 471,391 7,080,291 458,058 7,315,183
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
Net increase
(decrease)........... 619,049 $ 4,418,791 (814,287) $ (14,750,356) (77,634) $ (2,316,992) 245,413 $ 3,449,335
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
YEAR ENDED OCTOBER 31,
1997
Shares sold........... 13,610,390 $ 254,167,405 380,593 $ 6,769,009 3,594,429 $ 64,660,880 1,515,789 $ 28,757,499
Shares repurchased.... (16,445,507) (308,922,271) (1,626,421) (29,189,105) (4,630,809) (83,404,229) (2,127,743) (40,557,259)
Shares converted from
Class B to Class A... 709,755 13,463,891 (734,659) (13,463,891) -- -- -- --
Dividend reinvested... 543,143 9,521,294 205,495 3,491,361 128,017 2,175,015 116,573 2,066,838
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
Net decrease.......... (1,582,219) $ (31,769,681) (1,774,992) $ (32,392,626) (908,363) $ (16,568,334) (495,381) $ (9,732,922)
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
</TABLE>
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS Y
EMERGING MARKETS EQUITY -------------------------- --------------------- -------------------------- ------------------------
FUND SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL 30,
1998
Shares sold............... 74,335 $ 688,623 18,367 $ 165,966 507,251 $ 4,538,278 11,505 $ 105,738
Shares repurchased........ (248,402) (2,291,057) (96,297) (874,291) (600,320) (5,392,643) (892,664) (8,045,060)
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
Net increase (decrease)... (174,067) $ (1,602,434) (77,930) $ (708,325) 93,069 $ (854,365) (881,159) $ (7,939,322)
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
YEAR ENDED OCTOBER 31,
1997
Shares sold............... 142,149 $ 1,529,954 100,932 $ 1,104,923 1,555,080 $ 16,653,992 41,839 $ 443,623
Shares repurchased........ (744,379) (7,731,787) (21,351) (225,000) (1,817,955) (19,222,120) (174,464) (1,804,354)
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
Net increase (decrease)... (602,230) $ (6,201,833) 79,581 $ 879,923 (262,875) $ (2,568,128) (132,625) $ (1,360,731)
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
----------- ------------- -------- ----------- ----------- ------------- --------- -------------
</TABLE>
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
SHARES OF BENEFICIAL INTEREST (CONCLUDED)
There is an unlimited amount of $0.001 par value shares of benefical interest
authorized. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS Y*
ASIA PACIFIC GROWTH -------------------------- ------------------------- ------------------------- -------------------------
FUND SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
----------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED APRIL
30, 1998
Shares sold........... 423,286 $ 3,519,567 469,642 $ 3,867,373 683,439 $ 5,561,914 1,230 $ 10,650
Shares repurchased.... (790,645) (6,622,079) (701,970) (5,824,867) (1,115,975) (9,371,286) -- --
Shares converted from
Class B to Class A... 14,328 126,966 (14,415) (126,966) -- -- -- --
----------- ------------- ---------- ------------- ---------- ------------- ----- -------------
Net increase
(decrease)........... (353,031) $ (2,975,546) (246,743) $ (2,084,460) (432,536) $ (3,809,372) 1,230 $ 10,650
----------- ------------- ---------- ------------- ---------- ------------- ----- -------------
----------- ------------- ---------- ------------- ---------- ------------- ----- -------------
PERIOD ENDED OCTOBER
31, 1997+
Shares sold........... 3,053,522 $ 37,770,138 3,354,769 $ 41,970,877 2,006,187 $ 24,619,147 -- $ --
Shares repurchased.... (656,870) (7,384,924) (780,993) (9,358,215) (448,894) (4,932,498) -- --
----------- ------------- ---------- ------------- ---------- ------------- ----- -------------
Net increase.......... 2,396,652 $ 30,385,214 2,573,776 $ 32,612,662 1,557,293 $ 19,686,649 -- $ --
----------- ------------- ---------- ------------- ---------- ------------- ----- -------------
----------- ------------- ---------- ------------- ---------- ------------- ----- -------------
</TABLE>
- ---------------
+ For the period March 25, 1997 (commencement of operations) through October
31, 1997.
* For the period March 13, 1998 (commencement of offering) through April 30,
1998.
39
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding in each class
throughout each period is presented below:
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------------------
FOR THE FOR THE
SIX FOR THE TWO
MONTHS YEAR MONTHS
ENDED ENDED ENDED FOR THE YEARS ENDED
APRIL 30, OCTOBER OCTOBER AUGUST 31,
1998 31, 31, -----------------------------------------------------
(UNAUDITED) 1997 1996 1996 1995** 1994 1993
--------- -------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 18.37 $ 17.43 $ 16.81 $ 16.12 $ 16.98 $ 14.55 $ 12.87
--------- -------- -------- --------- --------- --------- ---------
Net investment income (loss)............ (0.03) 0.00 (0.02) 0.02 0.02 0.01 0.03
Net realized and unrealized gains
(losses) from investments and foreign
currency.............................. 3.31 1.52 0.64 1.24 0.37 2.63 1.89
--------- -------- -------- --------- --------- --------- ---------
Net increase (decrease) from investment
operations............................ 3.28 1.52 0.62 1.26 0.39 2.64 1.92
--------- -------- -------- --------- --------- --------- ---------
Dividends from net investment income.... -- -- -- -- -- -- (0.08)
Distributions from net realized gains... (2.48) (0.58) -- (0.57) (1.25) (0.21) (0.16)
--------- -------- -------- --------- --------- --------- ---------
Total dividends and distributions....... (2.48) (0.58) 0.00 (0.57) (1.25) (0.21) (0.24)
--------- -------- -------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 19.17 $ 18.37 $ 17.43 $ 16.81 $ 16.12 $ 16.98 $ 14.55
--------- -------- -------- --------- --------- --------- ---------
--------- -------- -------- --------- --------- --------- ---------
Total investment return (1)............. 20.81% 8.87% 3.69% 8.06% 3.24% 18.23% 15.24%
--------- -------- -------- --------- --------- --------- ---------
--------- -------- -------- --------- --------- --------- ---------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $319,586 $294,878 $307,267 $ 305,218 $ 360,652 $ 185,493 $156,451
Expenses to average net assets.......... 1.51%* 1.44% 1.53%* 1.48% 1.71%(2) 1.58% 1.53%
Net investment income (loss) to average
net assets............................ (0.31)%* 0.01% (0.80)%* 0.10% 0.09%(2) 0.07% 0.22%
Portfolio turnover rate................. 32% 86% 3% 33% 40% 51% 56%
Average commission rate paid (3)........ $0.0220 $0.0069 $0.0069 $ 0.0120 -- -- --
</TABLE>
- -----------------
* Annualized
** Investment Advisory functions for the Fund were transferred from Kidder
Peabody Asset Management Inc. to Mitchell Hutchins on February 13, 1995.
+ Commencement of offering of shares
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and other
distributions, if any, at net asset value on the payable dates and a sale at
net asset value on the last day of each period reported. The figures do not
include sales charges; results for each class would be lower if sales
charges were included. Total investment returns for periods of less than a
year have not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.06%, 0.00% and
0.06% for Class A, Class B and Class C shares, respectively.
(3) Effective for fiscal years beginning on or after September 1, 1995, the Fund
is required to disclose the average commission rate paid per share of common
stock investments purchased or sold.
40
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------
FOR THE
FOR THE PERIOD
SIX MONTHS FOR THE FOR THE AUGUST 25,
ENDED FOR THE TWO MONTHS YEAR 1995+
APRIL 30, YEAR ENDED ENDED ENDED TO AUGUST
1998 OCTOBER 31, OCTOBER 31, AUGUST 31, 31,
(UNAUDITED) 1997 1996 1996 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period...................... $ 17.69 $ 16.93 $ 16.35 $ 15.82 $ 15.83
----------- ----------- ----------- ----------- -----------
Net investment income
(loss)...................... (0.17) (0.21) (0.05) (0.12) 0.00
Net realized and unrealized
gains (losses) from
investments and foreign
currency.................... 3.22 1.55 0.63 1.22 (0.01)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) from
investment operations....... 3.05 1.34 0.58 1.10 (0.01)
----------- ----------- ----------- ----------- -----------
Dividends from net investment
income...................... -- -- -- -- --
Distributions from net
realized gains.............. (2.48) (0.58) -- (0.57) --
----------- ----------- ----------- ----------- -----------
Total dividends and
distributions............... (2.48) (0.58) 0.00 (0.57) 0.00
----------- ----------- ----------- ----------- -----------
Net asset value, end of
period...................... $ 18.26 $ 17.69 $ 16.93 $ 16.35 $ 15.82
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Total investment return (1)... 20.25% 8.05% 3.55% 7.18% (0.06)%
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Ratios/Supplemental Data:
Net assets, end of period
(000's)..................... $ 75,078 $ 87,104 $113,445 $113,235 $142,880
Expenses to average net
assets...................... 2.35%* 2.26% 2.34%* 2.25% 2.17%*(2)
Net investment income (loss)
to average net assets....... (1.19)%* (0.80)% (1.61)%* (0.68)% (1.92)%*(2)
Portfolio turnover rate....... 32% 86% 3% 33% 40%
Average commission rate paid
(3)......................... $ 0.0220 $ 0.0069 $ 0.0069 $ 0.0120 --
<CAPTION>
CLASS C
----------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX FOR THE TWO PERIOD
MONTHS YEAR MONTHS MAY 10,
ENDED ENDED ENDED FOR THE YEARS ENDED 1993+
APRIL 30, OCTOBER OCTOBER AUGUST 31, TO AUGUST
1998 31, 31, -------------------------------------- 31,
(UNAUDITED) 1997 1996 1996 1995** 1994 1993
--------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period...................... $ 17.69 $ 16.93 $ 16.35 $ 15.82 $ 16.81 $ 14.52 $ 13.80
--------- --------- --------- --------- --------- --------- ---------
Net investment income
(loss)...................... (0.11) (0.23) (0.05) (0.13) (0.11) (0.07) (0.02)
Net realized and unrealized
gains (losses) from
investments and foreign
currency.................... 3.18 1.57 0.63 1.23 0.37 2.57 0.74
--------- --------- --------- --------- --------- --------- ---------
Net increase (decrease) from
investment operations....... 3.07 1.34 0.58 1.10 0.26 2.50 0.72
--------- --------- --------- --------- --------- --------- ---------
Dividends from net investment
income...................... -- -- -- -- -- -- --
Distributions from net
realized gains.............. (2.48) (0.58) -- (0.57) (1.25) (0.21) --
--------- --------- --------- --------- --------- --------- ---------
Total dividends and
distributions............... (2.48) (0.58) 0.00 (0.57) (1.25) (0.21) 0.00
--------- --------- --------- --------- --------- --------- ---------
Net asset value, end of
period...................... $ 18.28 $ 17.69 $ 16.93 $ 16.35 $ 15.82 $ 16.81 $ 14.52
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
Total investment return (1)... 20.38% 8.05% 3.55% 7.18% 2.46% 17.29% 5.22%
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
Ratios/Supplemental Data:
Net assets, end of period
(000's)..................... $ 54,893 $ 54,510 $ 67,530 $ 66,585 $ 83,485 $ 31,837 $ 10,807
Expenses to average net
assets...................... 2.29%* 2.20% 2.30%* 2.27% 2.48%(2) 2.33% 2.28%
Net investment income (loss)
to average net assets....... (1.11)%* (0.75)% (1.57)%* (0.70)% (0.68)%(2) (0.68)% (0.53)%
Portfolio turnover rate....... 32% 86% 3% 33% 40% 51% 56%
Average commission rate paid
(3)......................... $ 0.0220 $ 0.0069 $ 0.0069 $ 0.0120 -- -- --
</TABLE>
41
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
FINANCIAL HIGHLIGHTS(CONCLUDED)
Selected data for a share of beneficial interest outstanding in each class
throughout the period is presented below:
<TABLE>
<CAPTION>
CLASS Y
----------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX FOR THE TWO PERIOD
MONTHS YEAR MONTHS MAY 10,
ENDED ENDED ENDED FOR THE YEARS ENDED 1993+
APRIL 30, OCTOBER OCTOBER AUGUST 31, TO AUGUST
1998 31, 31, ----------------------------------------- 31,
(UNAUDITED) 1997 1996 1996 1995** 1994 1993
--------- -------- -------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 18.63 $ 17.60 $ 16.97 $ 16.22 $ 17.03 $ 14.56 $ 13.80
--------- -------- -------- --------- --------- --------- ---------
Net investment income (loss)............ (0.02) 0.10 (0.01) 0.07 0.07 0.05 0.02
Net realized and unrealized gains
(losses) from investments
and foreign currency.................. 3.38 1.51 0.64 1.25 0.37 2.63 0.74
--------- -------- -------- --------- --------- --------- ---------
Net increase (decrease) from investment
operations............................ 3.36 1.61 0.63 1.32 0.44 2.68 0.76
--------- -------- -------- --------- --------- --------- ---------
Dividends from net investment income.... -- -- -- -- -- -- --
Distributions from net realized gains... (2.48) (0.58) -- (0.57) (1.25) (0.21) --
--------- -------- -------- --------- --------- --------- ---------
Total dividends and distributions....... (2.48) (0.58) 0.00 (0.57) (1.25) (0.21) 0.00
--------- -------- -------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 19.51 $ 18.63 $ 17.60 $ 16.97 $ 16.22 $ 17.03 $ 14.56
--------- -------- -------- --------- --------- --------- ---------
--------- -------- -------- --------- --------- --------- ---------
Total investment return (1)............. 20.97% 9.31% 3.71% 8.39% 3.54% 18.49% 5.51%
--------- -------- -------- --------- --------- --------- ---------
--------- -------- -------- --------- --------- --------- ---------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $65,207 $57,683 $63,225 $ 61,736 $ 57,150 $ 28,390 $ 19,098
Expenses to average net assets.......... 1.17%* 1.10% 1.18%* 1.17% 1.46%(2) 1.33% 1.28%*
Net investment income (loss) to average
net assets............................ 0.04%* 0.36% (0.45)%* 0.46% 0.36%(2) 0.32% 0.47%*
Portfolio turnover rate................. 32% 86% 3% 33% 40% 51% 56%
Average commission rate paid (3)........ $0.0220 $0.0069 $0.0069 $ 0.0120 -- -- --
</TABLE>
- -----------------
* Annualized
** Investment Advisory functions for the Fund were transferred from Kidder
Peabody Asset Management Inc. to Mitchell Hutchins on February 13, 1995.
+ Commencement of offering of shares
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and other
distributions, if any, at net asset value on the payable dates and a sale at
net asset value on the last day of each period reported. Total investment
returns for periods of less than a year have not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.06% for Class Y
shares.
(3) Effective for fiscal years beginning on or after September 1, 1995, the Fund
is required to disclose the average commission rate paid per share of common
stock investments purchased or sold.
42
<PAGE>
(This page has been left blank intentionally.)
43
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding in each class
throughout each period is presented below:
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE YEARS
ENDED FOR THE YEAR FOUR MONTHS ENDED FOR THE
APRIL 30, ENDED ENDED JUNE 30, PERIOD ENDED
1998 OCTOBER 31, OCTOBER 31, --------------------------- JUNE 30,
(UNAUDITED) 1997*** 1996 1996 1995** 1994+
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 9.39 $ 9.46 $ 10.06 $ 9.73 $ 10.79 $ 12.00
------------ ------------ ------------ ------------ ------------ ------------
Net investment income (loss)............ (0.01)@ (0.06) (0.13) (0.14) (0.04) 0.04
Net realized and unrealized gains
(losses) from investments and foreign
currency............................... 0.31@ (0.01) (0.47) 0.47 (0.97) (1.25)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) from investment
operations............................. 0.30 (0.07) (0.60) 0.33 (1.01) (1.21)
------------ ------------ ------------ ------------ ------------ ------------
Dividends from net investment income.... -- -- -- -- (0.05) --
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end of period.......... $ 9.69 $ 9.39 $ 9.46 $ 10.06 $ 9.73 $ 10.79
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Total investment return (1)............. 3.19% (0.74)% (5.96)% 3.39% (9.29)% (10.08)%
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 7,837 $ 9,222 $ 14,992 $ 20,680 $ 33,043 $ 46,758
Expenses, net of fee waivers, to average
net assets............................. 2.44%* 2.44% 2.44%* 2.44% 2.44% 2.47%*
Expenses, before fee waivers, to average
net assets............................. 3.66%* 3.01% 3.48%* 3.42% 2.54% 2.47%*
Net investment income (loss), net of fee
waivers, to average net assets......... (0.31)%* (0.40)% (1.42)%* (0.52)% (0.76)% 0.72%*
Net investment income (loss), before fee
waivers, to average net assets......... (1.53)%* (0.97)% (2.46)%* (1.50)% (0.86)% 0.72%*
Portfolio turnover rate................. 32% 87% 22% 69% 76% 8%
Average commission rate paid (2)........ $ 0.0029 $ 0.0009 $ 0.0024 -- -- --
</TABLE>
- ---------------
+ For the period January 19, 1994 (commencement of operations) to June 30,
1994.
++ For the period December 5, 1995 (commencement of offering of shares) to June
30, 1996.
@ Calculated using the average shares outstanding for the year.
* Annualized
** Investment Advisory functions for the Fund were transferred from Kidder
Peabody Asset Management Inc. to Mitchell Hutchins on February 13, 1995.
*** Investment Sub-Advisory functions for the Fund were transferred from
Emerging Markets Management to Schroder Capital Management International
Inc. effective February 25, 1997.
(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 each class would be lower if sales charges were included. Total
investment return for periods of less than one year have not been
annualized.
(2) Effective for fiscal years beginning on or after September 1, 1995, the Fund
is required to disclose the average commission rate paid per share of
common stock investments purchased or sold.
44
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------
FOR THE
SIX MONTHS
ENDED FOR THE FOR THE
APRIL 30, FOR THE YEAR FOUR MONTHS PERIOD ENDED
1998 ENDED OCTOBER ENDED OCTOBER JUNE 30,
(UNAUDITED) 31, 1997*** 31, 1996 1996++
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 9.19 $ 9.32 $ 9.94 $ 9.13
------------- ------------- ------------- -----
Net investment income (loss)............ (0.05)@ (0.10) (0.07) (0.01)
Net realized and unrealized gains
(losses) from investments and foreign
currency............................... 0.31@ (0.03) (0.55) 0.82
------------- ------------- ------------- -----
Net increase (decrease) from investment
operations............................. 0.26 (0.13) (0.62) 0.81
------------- ------------- ------------- -----
Dividends from net investment income.... -- -- -- --
------------- ------------- ------------- -----
Net asset value, end of period.......... $ 9.45 $ 9.19 $ 9.32 $ 9.94
------------- ------------- ------------- -----
------------- ------------- ------------- -----
Total investment return (1)............. 2.83% (1.39)% (6.24)% 8.87%
------------- ------------- ------------- -----
------------- ------------- ------------- -----
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 907 $1,598 $ 879 $ 936
Expenses, net of fee waivers, to average
net assets............................. 3.19%* 3.19% 3.19%* 3.19%*
Expenses, before fee waivers, to average
net assets............................. 4.50%* 3.82% 4.23%* 4.97%*
Net investment income (loss), net of fee
waivers, to average net assets......... (1.17)%* (1.25)% (2.12)%* (0.21)%*
Net investment income (loss), before fee
waivers, to average net assets......... (2.48)%* (1.88)% (3.16)%* (1.99)%*
Portfolio turnover rate................. 32% 87% 22% 69%
Average commission rate paid (2)........ $0.0029 $0.0009 $0.0024 --
<CAPTION>
CLASS C
---------------------------------------------------------------------
FOR THE
SIX FOR THE FOR THE
MONTHS YEAR FOUR FOR THE YEARS FOR THE
ENDED ENDED MONTHS ENDED PERIOD
APRIL 30, OCTOBER ENDED JUNE 30, ENDED
1998 31, OCTOBER --------------------- JUNE 30,
(UNAUDITED) 1997*** 31, 1996 1996 1995** 1994+
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 9.17 $ 9.32 $ 9.94 $ 9.67 $ 10.75 $ 12.00
--------- --------- --------- --------- --------- ---------
Net investment income (loss)............ (0.05)@ (0.14) (0.22) (0.24) (0.17) --
Net realized and unrealized gains
(losses) from investments and foreign
currency............................... 0.31@ (0.01) (0.40) 0.51 (0.90) (1.25)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) from investment
operations............................. 0.26 (0.15) (0.62) 0.27 (1.07) (1.25)
--------- --------- --------- --------- --------- ---------
Dividends from net investment income.... -- -- -- -- (0.01) --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 9.43 $ 9.17 $ 9.32 $ 9.94 $ 9.67 $ 10.75
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
Total investment return (1)............. 2.84% (1.61)% (6.24)% 2.79% (10.01)% (10.42)%
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 4,623 $ 5,345 $ 7,882 $ 11,561 $ 18,551 $26,721
Expenses, net of fee waivers, to average
net assets............................. 3.19%* 3.19% 3.19%* 3.19% 3.19% 3.22%*
Expenses, before fee waivers, to average
net assets............................. 4.44%* 3.78% 4.23%* 4.17% 3.29% 3.22%*
Net investment income (loss), net of fee
waivers, to average net assets......... (1.15)%* (1.18)% (2.16)%* (1.28)% (1.50)% (0.03)%*
Net investment income (loss), before fee
waivers, to average net assets......... (2.40)%* (1.77)% (3.20)%* (2.26)% (1.60)% (0.03)%*
Portfolio turnover rate................. 32% 87% 22% 69% 76% 8%
Average commission rate paid (2)........ $0.0029 $0.0009 $0.0024 -- -- --
</TABLE>
45
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
FINANCIAL HIGHLIGHTS(CONCLUDED)
Selected data for a share of beneficial interest outstanding in each class
throughout each period is presented below:
<TABLE>
<CAPTION>
CLASS Y
---------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE YEARS
ENDED FOR THE YEAR FOUR MONTHS ENDED FOR THE
APRIL 30, ENDED ENDED JUNE 30, PERIOD ENDED
1998 OCTOBER 31, OCTOBER 31, --------------------------- JUNE 30,
(UNAUDITED) 1997*** 1996 1996 1995** 1994+
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 9.46 $ 9.51 $ 10.11 $ 9.75 $ 10.80 $ 12.00
------------ ------------ ------------ ------------ ------------ ------------
Net investment income (loss)............ (0.01)@ (0.02) (0.05) (0.01) 0.01 0.05
Net realized and unrealized gains
(losses) from investments and foreign
currency............................... 0.32@ (0.03) (0.55) 0.37 (0.99) (1.25)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) from investment
operations............................. 0.31 (0.05) (0.60) 0.36 (0.98) (1.20)
------------ ------------ ------------ ------------ ------------ ------------
Dividends from net investment income.... -- -- -- -- (0.07) --
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end of period.......... $ 9.77 $ 9.46 $ 9.51 $ 10.11 $ 9.75 $ 10.80
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Total investment return (1)............. 3.28% (0.53)% (5.93)% 3.69% (9.03)% (10.00)%
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 1,779 $ 10,053 $ 11,375 $ 12,979 $ 12,332 $ 15,435
Expenses, net of fee waivers, to average
net assets............................. 2.19%* 2.19% 2.19%* 2.19% 2.19% 2.22%*
Expenses, before fee waivers, to average
net assets............................. 3.28%* 2.69% 3.23%* 3.29% 2.29% 2.22%*
Net investment income (loss), net of fee
waivers, to average net assets......... (0.25)%* (0.15)% (1.13)%* (0.15)% (0.51)% 0.97%*
Net investment income (loss), before fee
waivers, to average net assets......... (1.34)%* (0.65)% (2.17)%* (1.25)% (0.61)% 0.97%*
Portfolio turnover rate................. 32% 87% 22% 69% 76% 8%
Average commission rate paid (2)........ $ 0.0029 $ 0.0009 $ 0.0024 -- -- --
</TABLE>
- ---------------
+ For the period January 19, 1994 (commencement of operations) to June 30,
1994.
@ Calculated using the average shares outstanding for the year.
* Annualized
** Investment Advisory functions for the Fund were transferred from Kidder
Peabody Asset Management Inc. to Mitchell Hutchins on February 13, 1995.
*** Investment Sub-Advisory functions for the Fund were transferred from
Emerging Markets Management to Schroder Capital Management International
Inc. effective February 25, 1997.
(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. Total investment return for periods of less
than one year have not been annualized.
(2) Effective for fiscal years beginning on or after September 1, 1995, the Fund
is required to disclose the average commission rate paid per share of
common stock investments purchased or sold.
46
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding in each class
throughout the period is presented below:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS Y
-------------------------- -------------------------- -------------------------- -----------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE SIX MONTHS FOR THE PERIOD
ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
APRIL 30, ENDED APRIL 30, ENDED APRIL 30, ENDED APRIL 30,
1998 OCTOBER 31, 1998 OCTOBER 31, 1998 OCTOBER 31, 1998++
(UNAUDITED) 1997+ (UNAUDITED) 1997+ (UNAUDITED) 1997+ (UNAUDITED)
----------- ------------ ----------- ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period....................... $ 8.96 $ 12.50 $ 8.92 $ 12.50 $ 8.92 $ 12.50 $ 8.66
----------- ------------ ----------- ------------ ----------- ------------ -----------
Net investment income
(loss)....................... 0.00 0.03 (0.04) (0.03) (0.05) (0.03) 0.00
Net realized and unrealized
losses from investments and
foreign currency............. (0.82) (3.57) (0.81) (3.55) (0.80) (3.55) (0.53)
----------- ------------ ----------- ------------ ----------- ------------ -----------
Net decrease from investment
operations................... (0.82) (3.54) (0.85) (3.58) (0.85) (3.58) (0.53)
----------- ------------ ----------- ------------ ----------- ------------ -----------
Net asset value, end of
period....................... $ 8.14 $ 8.96 $ 8.07 $ 8.92 $ 8.07 $ 8.92 $ 8.13
----------- ------------ ----------- ------------ ----------- ------------ -----------
----------- ------------ ----------- ------------ ----------- ------------ -----------
Total investment return (1)... (9.15)% (28.32)% (9.53)% (28.64)% (9.53)% (28.64)% (6.12)%
----------- ------------ ----------- ------------ ----------- ------------ -----------
----------- ------------ ----------- ------------ ----------- ------------ -----------
Ratios/Supplemental Data:
Net assets, end of period
(000's)...................... $16,631 $21,466 $18,781 $22,949 $ 9,080 $13,887 $ 10
Expenses to average net
assets....................... 2.65%* 2.33%* 3.41%* 3.12%* 3.38%* 3.10%* 2.40%*
Net investment income (loss)
to average net assets........ (0.20)%* 0.37%* (0.96)%* (0.43)%* (0.95)%* (0.42)%* (0.28)%*
Portfolio turnover rate....... 31% 13% 31% 13% 31% 13% 31%
Average commission rate
paid......................... $0.0108 $0.0156 $0.0108 $0.0156 $0.0108 $0.0156 $0.0108
</TABLE>
- -----------------
* Annualized
+ For the period March 25, 1997 (commencement of operations) through October
31, 1997.
++ For the period March 13, 1998 (commencement of offering) through April 30,
1998.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and other
distributions, if any, at net asset value on the payable dates and a sale
at net asset value on the last day of each period reported. The figures do
not include sales charges; results for each class (except Class Y) would be
lower if sales charges were included. Total investment returns for periods
less than a year have not been annualized.
47
<PAGE>
TRUSTEES
E. Garrett Bewkes, Jr.
CHAIRMAN
Margo N. Alexander
Richard Q. Armstrong
Richard R. Burt
Mary C. Farrell
Meyer Feldberg
George W. Gowen
Frederic V. Malek
Carl W. Schafer
PRINCIPAL OFFICERS
Margo N. Alexander
PRESIDENT
Victoria E. Schonfeld
VICE PRESIDENT
Dianne E. O'Donnell
VICE PRESIDENT AND SECRETARY
Paul H. Schubert
VICE PRESIDENT AND TREASURER
INVESTMENT ADVISER,
ADMINISTRATOR AND DISTRIBUTOR
Mitchell Hutchins Asset Management Inc.
1285 Avenue of the Americas
New York, New York 10019
INVESTMENT SUBADVISERS
GEInvestment Management Incorporated
3003 Summer Street
Stamford, Connecticut 06904
Schroder Capital Management International Inc.
787 Seventh Avenue
New York, New York 10019
THIS REPORT IS NOT TO 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 FUNDS WITHOUT EXAMINATION BY INDEPENDENT AUDITORS WHO DO NOT
EXPRESS AN OPINION THEREON.
A PROSPECTUS CONTAINING MORE COMPLETE INFORMATION FOR ANY OF THE FUNDS LISTED
ON THE BACK COVER CAN BE OBTAINED FROM A PAINEWEBBER INVESTMENT EXECUTIVE OR
CORRESPONDENT FIRM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
<PAGE>
PaineWebber offers a family of 26 funds which
encompass a diversified range of investment goals.
BOND FUNDS
- -- High Income Fund
- -- Investment Grade Income Fund
- -- Low Duration U.S. Government Income Fund
- -- Strategic Income Fund
- -- U.S. Government Income Fund
TAX-FREE BOND FUNDS
- -- California Tax-Free Income Fund
- -- Municipal High Income Fund
- -- National Tax-Free Income Fund
- -- New York Tax-Free Income Fund
STOCK FUNDS
- -- Financial Services Growth Fund
- -- Growth Fund
- -- Growth and Income Fund
- -- Mid Cap Fund
- -- Small Cap Fund
- -- S&P 500 Index Fund
- -- Utility Income Fund
ASSET ALLOCATION FUNDS
- -- Balanced Fund
- -- Tactical Allocation Fund
GLOBAL FUNDS
- -- Asia Pacific Growth Fund
- -- Emerging Markets Equity Fund
- -- Global Equity Fund
- -- Global Income Fund
MITCHELL HUTCHINS PORTFOLIOS
- -- Aggressive Portfolio
- -- Moderate Portfolio
- -- Conservative Portfolio
PAINEWEBBER MONEY MARKET FUND
PAINEWEBBER
- -C-1998 PaineWebber Incorporated
Member SIPC
PAINEWEBBER
GLOBAL EQUITY FUND
EMERGING
MARKETS
EQUITY FUND
ASIA PACIFIC
GROWTH FUND
APRIL 30, 1998
SEMIANNUAL REPORT
