<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND, EMERGING MARKETS SEMIANNUAL REPORT
EQUITY FUND AND ASIA PACIFIC GROWTH FUND
Dear Shareholder, June 15, 2000
We are pleased to present you with the semiannual reports for PaineWebber Global
Equity Fund, PaineWebber Emerging Markets Equity Fund and PaineWebber Asia
Pacific Growth Fund for the six-month period ended April 30, 2000.
PAINEWEBBER GLOBAL EQUITY FUND
--------------------------------------------------------------------------------
[GRAPHIC] MARKET REVIEW
The international equity markets reported mixed performance in U.S. dollar
terms for the six months ended April 30, 2000. The Fund's benchmark, the Morgan
Stanley Capital International (MSCI) World Index, gained 7.64%; the United
States, as measured by the S&P 500 Index, gained 7.18%; Japan, as measured by
the MSCI Japan Index, gained 3.39%; continental Europe, as measured by the MSCI
Europe ex-UK Index, gained 13.27%; and the emerging markets, as measured by the
MSCI Emerging Markets Free Index, gained 13.87%.
For most of the period, gains in telecommunications, media and technology
stocks drove markets around the world. The telecom industry benefited from
continuation of the wireless revolution, media from the increased value of
content and technology from strong spending in services, equipment and software.
Despite considerable volatility among U.S. technology stocks, the sector
remained attractive to investors. The NASDAQ Composite, an index heavily
weighted in technology companies, gained 30.14% for the six months ended April
30, 2000.
[SIDEBAR]
PAINEWEBBER GLOBAL
EQUITY FUND
INVESTMENT GOAL:
Long-term growth of
capital
PORTFOLIO
MANAGERS/SUBADVISERS:
ASSET ALLOCATOR
Kirk Barneby
Mitchell Hutchins Asset
Management Inc.
U.S. EQUITY MANAGER
Mark Tincher
Mitchell Hutchins Asset
Management Inc.
INTERNATIONAL EQUITY
MANAGERS
Scott Opsal
Kurtis Spieler
Invista Capital
Management, Inc.
COMMENCEMENT:
November 14, 1991 (Class A)
August 25, 1995 (Class B)
May 10, 1993 (Classes C and Y)
DIVIDEND PAYMENTS:
Annually, if any
1
<PAGE>
SEMIANNUAL REPORT
PAINEWEBBER GLOBAL EQUITY FUND - PORTFOLIO REVIEW
AVERAGE ANNUAL TOTAL RETURNS, PERIOD ENDED 4/30/00
<TABLE>
<CAPTION>
6 Months 1 Year 5 Years Inception(-)
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A* 11.87% 12.25% 11.06% 11.10%
Before Deducting CLASS B** 11.34 11.27 N/A 9.86
Maximum Sales Charge
CLASS C+ 11.45 11.38 10.20 10.21
CLASS Y++ 12.12 12.74 11.44 11.42
-------------------------------------------------------------------------------------------------------
CLASS A* 6.86 7.20 10.03 10.49
After Deducting
Maximum Sales Charge CLASS B** 6.61 6.54 N/A 9.56
CLASS C+ 10.50 10.43 10.20 10.21
-------------------------------------------------------------------------------------------------------
MSCI World Index 7.64 12.64 17.55 14.23
Lipper Global Funds Median 13.15 17.92 16.85 13.54
-------------------------------------------------------------------------------------------------------
</TABLE>
Past performance is no guarantee of future performance. The investment return
and 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. Returns for periods of one year or less are cumulative. The
performance data quoted assume reinvestment of all dividends and capital
gains. Lipper peer group data calculated by Lipper Inc.; used with
permission. The Lipper Median is the return of the fund that places in the
middle of the peer group.
(-) Inception: since commencement of issuance on November 14, 1991 for Class A
shares, August 25, 1995 for Class B shares and May 10, 1993 for
Classes C and Y shares.
* 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% and is
reduced to 0% after six years. Class B shares bear ongoing 12b-1
distribution and service fees.
+ Maximum contingent deferred sales charge for Class C shares is 1% and is
reduced to 0% after one year. Class C shares bear ongoing 12b-1
distribution and service fees.
++ 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 that may invest in PaineWebber mutual funds, as well as
the trustee of the PaineWebber 401(k) Plus Plan. Class Y shares do not bear
initial or contingent deferred sales charges or ongoing distribution and
service fees.
2
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND, EMERGING MARKETS SEMIANNUAL REPORT
EQUITY FUND AND ASIA PACIFIC GROWTH FUND
PORTFOLIO HIGHLIGHTS
ASSET ALLOCATION
As our economic outlook suggested continuing recovery in Europe, the Fund
began the reporting period with an allocation to U.S. equities of 33.5% and
an international allocation of 66.5%, versus its present benchmark weighting
of 40% U.S and 60% international stocks. Following somewhat better
performance by the MSCI Europe, Australasia and Far East (EAFE) Index, the
Fund's international allocation had returned to a near-benchmark weighting by
period-end. Future allocations will reflect expected relative growth and
inflation in overseas economies, as well as market valuations.
U.S. PORTION
During the period, the U.S. portion of the portfolio benefited from
renewed interest in the "old economy" stocks, i.e., basic industries, energy
and financial stocks. The valuation discrepancy between technology and the
rest of the market began to diminish. The portfolio was shielded from
negative impacts of the market as the air came out of the dot.com balloon due
to valuation concerns.
This portion of the portfolio continues to hold a moderate weight in the
consumer cyclicals, capital goods and energy sectors relative to the S&P 500
Index. Some basic materials, metals and forest and paper stocks have been
added, as we believe these stocks are poised to benefit from anticipated
global growth. Additions to the technology weighting were generally geared
toward some of the bigger, better-established names. We expect the better
established technology stocks to perform well as foreign sales support their
earnings. We continue to underweight consumer non-cyclicals and utilities,
sectors where we expect weak earnings growth.
NON-U.S. PORTION
Country selection, currency exposure and sector allocation each
contributed to positive performance for the period; however, security
selection made the largest contribution to performance. Holdings in three
sectors made the largest contributions to performance during the period.
The non-U.S. overweighting in the consumer cyclical sector made the
greatest contribution, mainly from exposure to strong performing stocks in
the media industry. Among the strongest contributors were Lagardere (0.2%)
and News Corp. (0.8%).* Lagardere is a conglomerate that is increasingly
becoming a pure media stock. It has a valuable franchise in consumer
magazines and a stake in T-Online, one of the largest Internet service
providers in Europe. News Corp. is a global media conglomerate with strong
content and distribution assets; for example, it owns Europe's leading
satellite TV company. Another top performer in the sector was Philips, an
electronic technology company benefiting from strong growth in its
semiconductor businesses and from its corporate restructuring.
* Weightings represent percentages of net assets as of April 30, 2000. The
Fund's portfolio is actively managed and its composition will vary over time.
3
<PAGE>
SEMIANNUAL REPORT
The information technology sector was the second largest contributor to
performance. Within this sector the Fund held top performer Ericsson, a
telecommunications equipment maker with an excellent growth outlook and strong
product line-up. The portfolio also registered strong performance in the
industrials sector.
OUTLOOK
UNITED STATES
The growth march continues in the United States--productivity continues to
expand, offsetting rising labor costs and consumer spending. Nonetheless, it is
likely that U.S. interest rates will stay high through the remainder of the
year. The key issue from a global perspective is, How vulnerable is global
growth to decelerating U.S. consumer demand? The current consensus is that
global growth is likely to withstand a moderate U.S. slowdown.
EUROPE
Analysis of global trade flows in Europe suggests that decelerating U.S.
consumer demand should not amount to a significant external shock. Europe
exports more to the emerging markets (33%) than it does to the U.S. (25%).
Resilient demand in emerging Europe and Asia should act to offset a slowdown in
U.S. demand. Moreover, consumer demand in Europe continues to accelerate,
increasing its impact on economic growth.
Japan
Of all components of the global economy, the Japanese recovery looks the most
vulnerable to a U.S. slowdown. Structural constraints in Japan--demographics,
restructuring and the particulars of financial intermediation--remain
challenging obstacles to a revival of consumer spending. Japan's tentative
recovery therefore depends on intermittent fiscal stimulus and export growth.
The U.S. is Japan's single largest export market, accounting for 32% of total
Japanese exports.
EMERGING MARKETS
Emerging market import growth will be a critical offset to slowing U.S.
demand throughout the world. Asia ex-Japan, emerging Europe and Latin America
have a 30% share of global imports, over 50% more than the United States. For
emerging markets to increase imports, emerging market growth must shift from
being export-led to CONSUMER-LED. We see this happening in Asia ex-Japan: nearly
six months ago export growth rates stabilized and consumption began booming
across Southeastern and Northern Asia (excluding China). Latin America and
emerging Europe are further behind in the recovery cycle than Asia; however, we
believe the demographics there also will support an expansion of consumer-led
growth.
4
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND, EMERGING MARKETS SEMIANNUAL REPORT
EQUITY FUND AND ASIA PACIFIC GROWTH FUND
PAINEWEBBER GLOBAL EQUITY FUND-PORTFOLIO STATISTICS
<TABLE>
<CAPTION>
CHARACTERISTICS* 4/30/00 10/31/99
--------------------------------------------------------------------------------------
<S> <C> <C>
Net Assets ($mm) $371.9 $349.0
Number of Securities 178 143
Stocks 91.9% 89.2%
Cash and other assets in excess of liabilities 8.1% 4.6%
U.S. Allocation 37.7% 33.5%
International Allocation 62.3% 66.5%
--------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE SECTORS* 4/30/00 10/31/99
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Technology 31.3% Financial Services 20.2%
Financial Services 14.6 Consumer Cyclical 18.8
Utilities 12.0 Technology 12.4
Consumer Cyclical 11.1 Utilities 10.0
Health Care 5.9 Capital Goods 7.4
--------------------------------------------------------------------------------------
Total 74.9 Total 68.8
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES* 4/30/00 10/31/99
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
United States 37.7% United States 33.5%
United Kingdom 14.4 Japan 9.5
Japan 8.2 United Kingdom 8.9
France 8.0 France 6.7
Netherlands 6.4 Netherlands 6.5
--------------------------------------------------------------------------------------
Total 74.7 Total 65.1
</TABLE>
<TABLE>
<CAPTION>
TOP TEN EQUITY HOLDINGS* 4/30/00 10/31/99
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Autonomy Corp. 2.3% Philips Electronics 1.6%
Cisco Systems 2.2 Ericsson 1.6
Philips Electronics 1.8 United News & Media 1.3
Ericsson 1.6 Hoechst 1.3
Nokia 1.5 Total Fina Elf 1.3
Alcatel 1.3 Sanwa Bank 1.3
Vodafone Airtouch 1.3 Diageo 1.3
Nordic Baltic Holding 1.2 Merita OYJ 1.3
BP Amoco 1.2 Applied Materials 1.2
Total Fina Elf 1.2 Amvescap 1.2
--------------------------------------------------------------------------------------
Total 15.6 Total 13.4
</TABLE>
* Weightings represent percentages of net assets as of the dates indicated. The
Fund's portfolio is actively managed and its composition will vary over time.
5
<PAGE>
SEMIANNUAL REPORT
PAINEWEBBER EMERGING MARKETS EQUITY FUND
--------------------------------------------------------------------------------
MARKET REVIEW
Emerging markets showed renewed strength for most of the six-month period
ended April 30, 2000. The Morgan Stanley Capital International Emerging
Markets Free Index gained 13.87% in U.S. dollar terms for the period,
outperforming developed markets as measured by the MSCI World Index, which
gained 7.64% in U.S. dollar terms for the period.
Balanced global growth, improving economies and corporate earnings helped
emerging markets offset the initial negative effect of rising interest rates
in the United States and other developed markets.
Asian markets performed well early in the period, but later suffered from
the global technology sell-off. Malaysia was the best performing market for
the period, benefiting from continuing economic recovery and resurgent
exports. India also was strong, thanks to higher than expected demand for
software development services. Taiwan performed strongly when it became clear
that relations with China would not worsen under Taiwan's new president, Chen
Shui-bian.
Latin America initially benefited from Mexican and Brazilian debt rating
upgrades, falling interest rates, reduced political risk and corporate
activity but later suffered from its high correlation to the NASDAQ. The main
event in the region was the upgrade of Mexico's sovereign debt by Moody's,
which paved the way for lower cost financing.
Eastern Europe produced some of the best returns for the six-month period,
spurred by improving economic fundamentals and corporate
restructuring--particularly among large telecommunications stocks. The
Russian stock market responded positively to Vladimir Putin's victory in the
presidential election, and to the prospects of political stability and
structural reform. Higher oil prices also helped by giving the government a
substantial current account surplus.
[SIDEBAR]
PAINEWEBBER EMERGING
MARKETS EQUITY FUND
INVESTMENT GOAL:
Long-term capital appreciation
PORTFOLIO
MANAGERS/SUBADVISERS:
John Troiano
Mark Bridgeman
Heather Crighton
Schroder Investment Management North America Inc.
COMMENCEMENT:
January 19, 1994 (Classes A, C and Y)
December 5, 1995 (Class B)
DIVIDEND PAYMENTS:
Annually, if any
6
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND, EMERGING SEMIANNUAL REPORT
MARKETS EQUITY FUND AND ASIA PACIFIC GROWTH FUND
PAINEWEBBER EMERGING MARKETS EQUITY FUND-PORTFOLIO REVIEW
AVERAGE ANNUAL TOTAL RETURNS, PERIOD ENDED 4/30/00
<TABLE>
<CAPTION>
6 Months 1 Year 5 Years Inception(-)
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS A* 11.26% 16.01% 1.10% -3.11%
Before Deducting CLASS B** 10.92 15.10 N/A 0.78
Maximum Sales Charge
CLASS C+ 10.91 14.86 0.26 -3.89
CLASS Y++ 11.36 16.20 1.30 -2.90
-------------------------------------------------------------------------------------------------------
CLASS A* 6.30 10.76 0.16 -3.82
After Deducting
Maximum Sales Charge CLASS B** 5.92 10.10 N/A 0.34
CLASS C+ 9.91 13.86 0.26 -3.89
-------------------------------------------------------------------------------------------------------
MSCI Emerging Markets Free Index 13.87 22.11 2.26 -1.12
Lipper Emerging Markets Funds Median 18.37 26.22 3.06 -3.11
-------------------------------------------------------------------------------------------------------
</TABLE>
Past performance is no guarantee of future performance. The investment return
and 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. Returns for periods of one year or less are cumulative. The
performance data quoted assume reinvestment of all dividends and capital
gains. Lipper peer group data calculated by Lipper Inc.; used with
permission. The Lipper Median is the return of the fund that places in the
middle of the peer group.
(-) Inception: since commencement of issuance on January 19, 1994 for
Classes A, C and Y shares and December 5, 1995 for Class B shares.
* 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% and is
reduced to 0% after six years. Class B shares bear ongoing 12b-1
distribution and service fees.
+ Maximum contingent deferred sales charge for Class C shares is 1% and is
reduced to 0% after one year. Class C shares bear ongoing 12b-1
distribution and service fees.
++ 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 that may invest in PaineWebber mutual funds, as well as the
trustee of the PaineWebber 401(k) Plus Plan. Class Y shares do not bear
initial or contingent deferred sales charges or ongoing distribution and
service fees.
7
<PAGE>
SEMIANNUAL REPORT
PORTFOLIO HIGHLIGHTS
For the six months ended April 30, 2000 the Fund underperformed its
benchmark and its Lipper peer group. Relative to the MSCI EMF Index, the Fund
benefited from positive country selection--notably the underweighting in
Greece--and from stock selection in technology-related stocks in markets such
as Taiwan. One major detractor from performance relative to the Index was the
fact that the Fund did not own Wipro, a small Indian software company that
was an extremely strong performer during the period.
The Fund remained modestly overweighted in Latin America as that region
benefited from economic recovery and earnings upgrades. Our preferred markets
within Latin America were Brazil and Mexico. We began to reduce exposure to
both countries, however, as they appeared vulnerable to the U.S. market and
economic shocks.
We increased the Fund's exposure to Asia through purchases in Taiwan,
Malaysia and China, partially in anticipation of changes to the benchmark
(see below) but also because of strong fundamentals. We reduced the Fund's
allocation to Korea because of concerns about rising inflation and interest
rates. Within Europe, the Middle East and Africa (EMEA), we maintained
underweightings in Greece and South Africa.
While the Fund was overweighted in technology and telecommunications, we
focused exposure on companies that we expect to benefit from high growth
potential and attractive margins. For example, rather than pure "new economy"
plays that seem more vulnerable to market corrections, we focused on such
companies as Taiwan Semiconductor, the world's first pure integrated-circuit
foundry company.
OUTLOOK
The outlook for the emerging markets appears positive: global growth
remains supportive, valuations are low relative to developed markets and we
believe that the economic recovery visible in most emerging countries is
likely to be reflected in upward earnings revisions.
Yet there are risks of external shocks. The recent global sell-off of
technology stocks and concerns over the impact of rising interest rates on
the U.S. economy are likely to impact the emerging markets. Nonetheless, we
believe that the emerging markets have sufficient positive momentum to
withstand all but the worst-case scenarios, and we believe conditions exist
to continue supporting solid performance relative to the developed markets.
Technical issues are likely to have a significant impact on Asia in the
coming months. On May 31, 2000, MSCI made several important changes to the
Emerging Markets Free Index: Malaysia re-entered the Index, and Index
weightings increased for Taiwan and China. Accordingly, weightings for other
markets will decrease. These index changes are likely to cause managers to
rebalance portfolios, which could significantly impact the affected markets.
8
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND, EMERGING MARKETS SEMIANNUAL REPORT
EQUITY FUND AND ASIA PACIFIC GROWTH FUND
PAINEWEBBER EMERGING MARKETS EQUITY FUND-PORTFOLIO STATISTICS
<TABLE>
<CAPTION>
CHARACTERISTICS* 4/30/00 10/31/99
--------------------------------------------------------------------------------------
<S> <C> <C>
Net Assets ($mm) $8.5 $8.5
Number of Securities 177 197
Stocks 98.8% 96.8%
Cash and other assets in excess of liabilities 1.2% 3.2%
--------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
REGIONAL ALLOCATION* 4/30/00 10/31/99
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Asia 44.2% Asia 43.3%
Europe/Africa/Middle East 28.8 Latin America 25.1
Latin America 25.8 Europe/Africa 28.4
Cash and Other 1.2 Cash and Other 3.2
--------------------------------------------------------------------------------------
Total 100.0 Total 100.0
</TABLE>
<TABLE>
<CAPTION>
TOP TEN COUNTRIES* 4/30/00 10/31/99
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Taiwan 15.1% Korea 13.7%
Korea 11.9 Taiwan 12.4
Mexico 11.7 Mexico 10.2
Brazil 10.1 Brazil 10.0
India 8.7 South Africa 8.3
South Africa 6.7 India 8.1
Turkey 6.1 Greece 4.8
Israel 5.3 Turkey 3.6
Malaysia 4.0 Israel 3.5
Russia 3.5 Thailand 2.9
--------------------------------------------------------------------------------------
Total 83.1 Total 77.5
</TABLE>
<TABLE>
<CAPTION>
TOP TEN EQUITY HOLDINGS* 4/30/00 10/31/99
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Samsung Electronics 4.7% Samsung Electronics 4.1%
United Micro Electric 4.4 Taiwan Semiconductor 3.6
Telefonos de Mexico 3.2 Telefonos de Mexico 2.5
Infosys Technologies 2.0 Korea Electric Power 1.9
Korea Electric Power 1.7 Alpha Credit Bank 1.6
Yapi ve Kredi Bankasi 1.6 Hellenic Telecommunications 1.5
Taiwan Semiconductor 1.5 Petroleo Brasileiros 1.3
Lukoil Holdings 1.4 Shinhan Bank 1.3
Carso Global Telecom 1.4 Hindustan Lever 1.2
Tenaga Nasional Berhad 1.4 Kookmin Bank 1.1
--------------------------------------------------------------------------------------
Total 23.3 Total 20.1
</TABLE>
* Weightings represent percentages of net assets as of the dates indicated. The
Fund's portfolio is actively managed and its composition will vary over time.
9
<PAGE>
SEMIANNUAL REPORT
PAINEWEBBER ASIA PACIFIC GROWTH FUND
--------------------------------------------------------------------------------
MARKET REVIEW
Asian markets were volatile for the six months ended April 30, 2000. Although
the markets finished the period slightly ahead, they relinquished some of their
earlier gains. The "new economy" stocks--technology, telecommunications and
media--outperformed for most of the period. The North Asian markets,
particularly Taiwan and Hong Kong, outperformed the South Asian emerging
markets. The emerging markets generally retreated following strong performance
toward the end of 1999. The Fund's benchmark, the Morgan Stanley Capital
International (MSCI) All Country Asia Pacific Free (ex-Japan) Index, gained
7.89% in U.S. dollar terms for the period.
Interest rate concerns hurt the Korean market. The Taiwan market was volatile
ahead of the presidential elections but rebounded when Chen Shui-bian of the
Democratic Progress Party was elected in May. The Hong Kong market continued to
favor new-economy stocks; economic growth in Hong Kong and China continued to
improve. Even though the economy remained supportive in Singapore, investors
favored Malaysia, where valuations were more attractive. Malaysia's strong
economic recovery and abundant liquidity bolstered its market.
PORTFOLIO REVIEW
AVERAGE ANNUAL TOTAL RETURN, PERIODS ENDED 4/30/00
<TABLE>
<CAPTION>
6 Months 1 Year Inception(-)
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A* 15.55% 24.53% -3.42%
Before Deducting CLASS B** 15.13 23.42 -4.15
Maximum Sales Charge
CLASS C+ 15.11 23.54 -4.12
CLASS Y++ 15.70 24.86 12.79
------------------------------------------------------------------------------------------
CLASS A* 10.32 18.98 -4.84
After Deducting
Maximum Sales Charge CLASS B** 10.13 18.42 -5.08
CLASS C+ 14.11 22.54 -4.12
------------------------------------------------------------------------------------------
MSCI All Country Asia Pacific 7.89 15.13 -4.15
Free (ex-Japan) Index
Lipper Pacific Ex-Japan 12.13 30.63 -4.12
Funds Median
------------------------------------------------------------------------------------------
</TABLE>
Past performance is no guarantee of future performance. The investment return
and 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. Returns for periods of one year or less are cumulative. The performance
data quoted assume reinvestment of all dividends and capital gains. Lipper peer
group data calculated by Lipper Inc.; used with permission. The Lipper Median is
the return of the fund that places in the middle of the peer group.
(-) Inception: since commencement of issuance on March 25, 1997 for
Classes A, B and C shares and March 13, 1998 for Class Y shares.
* 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% and is
reduced to 0% after six years. Class B shares bear ongoing 12b-1
distribution and service fees.
+ Maximum contingent deferred sales charge for Class C shares is 1% and is
reduced to 0% after one year. Class C shares bear ongoing 12b-1
distribution and service fees.
++ 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 that may invest in PaineWebber mutual funds, as well as the
trustee of the PaineWebber 401(k) Plus Plan. Class Y shares do not bear
initial or contingent deferred sales charges or ongoing distribution and
service fees.
[SIDEBAR]
PAINEWEBBER ASIA PACIFIC
GROWTH FUND
INVESTMENT GOAL:
Long-term capital appreciation
PORTFOLIO
MANAGERS/SUBADVISERS:
Louise Croset
Heather Crighton
Schroder Investment Management North America Inc.
COMMENCEMENT:
March 25, 1997 (Classes A, B and C)
March 13, 1998 (Class Y)
DIVIDEND PAYMENTS:
Annually, if any
10
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND, EMERGING SEMIANNUAL REPORT
MARKETS EQUITY FUND AND ASIA PACIFIC GROWTH FUND
PORTFOLIO HIGHLIGHTS
For the six months ended April 30, 2000, stock selection was the greatest
contributor to performance--especially in Hong Kong, Korea, Singapore and
Malaysia. Positions in those countries more than offset weakness in Indian stock
selection.
During the period, the Fund maintained a full weighting in Hong Kong.
However, we reduced positions in certain stocks that appeared to be fully
valued, including China Telecom and Hutchison Whampoa. At the end of the period
the Fund was overweighted in banks, real estate, Internet stocks and cellular
telecoms; and underweighted in utilities and fixed-line telecoms.
The Fund remained overweighted in Singapore, as positive economic data and
corporate restructuring continued. We concentrated the Fund's bank positions,
favoring DBS Group and selling United Overseas Bank. We increased the Fund's
technology exposure by purchasing contract manufacturers Natsteel Electronics
(0.4%) and Venture Manufacturing (0.6%).* We sold Singapore Telecommunications
because we expected early market deregulation to hurt the company's earnings.
The Fund also remained overweighted in Malaysia, although strong performance
toward the end of the period left valuations there looking somewhat stretched
compared with the rest of the region. We are still positive on Malaysia, as we
expect strong economic recovery to lead to earnings upgrades.
The Fund remained underweighted in Australia throughout the period.
Nonetheless, we selectively added to consumer stocks that we believe are
positioned to benefit from the Olympics and from favorable tax changes.
Within the emerging markets we raised the Fund's exposure to Korea and
Taiwan. Memory chip manufacturers such as Samsung Electronics outperformed as
the outlook for chip prices improved.
OUTLOOK
The longer-term outlook for the Asian markets remains positive. Economic
growth is running ahead of expectations, with private consumption and
investment, especially in Japan, providing upside surprises. We believe
admission to the World Trade Organization (WTO) is a long-term positive for
China that will benefit both trade and foreign direct investment.
There are risks to the markets--concerns that global growth may peak soon and
concerns that U.S. interest rates may impact Asian rates. Although we expect
global growth to peak this year, Asia is likely to continue to benefit from
rising global technology spending, particularly from Europe and Japan, as well
as the growing trend toward outsourcing of electronics manufacturing to the
region.
Despite our expectations of greater earnings, we think some of the
new-economy stocks are fully valued in Hong Kong and China. We believe these
markets may be vulnerable to any extended NASDAQ correction. Also, higher U.S.
interest rates could pressure rates higher in Hong Kong. We believe, however,
that rates in the other Asian markets will be less susceptible to this
pressure--strong export surpluses around the region are more likely to support
the local currencies.
* Weightings represent percentages of net assets as of April 30, 2000. The
Fund's portfolio is actively managed and its composition will vary over time.
11
<PAGE>
SEMIANNUAL REPORT
PAINEWEBBER ASIA PACIFIC GROWTH FUND-PORTFOLIO STATISTICS
<TABLE>
<CAPTION>
CHARACTERISTICS* 4/30/00 10/31/99
--------------------------------------------------------------------------------------
<S> <C> <C>
Net Assets ($mm) $36.5 $39.1
Number of Securities 100 114
Stocks 98.1% 93.3%
Cash and other assets in excess of liabilities 1.9% 6.7%
--------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TOP TEN COUNTRIES* 4/30/00 10/31/99
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Hong Kong 21.2% Hong Kong 21.3%
Australia 16.1 Australia 15.1
Taiwan 13.2 Korea 13.2
Korea 13.1 Taiwan 11.5
Singapore 10.0 Singapore 10.4
Malaysia 9.2 India 8.1
India 8.7 Malaysia 6.1
Thailand 2.7 Thailand 2.4
Indonesia 1.4 Indonesia 2.0
United States 1.0 China 1.4
--------------------------------------------------------------------------------------
Total 96.6 Total 91.5
</TABLE>
<TABLE>
<CAPTION>
TOP TEN EQUITY HOLDINGS* 4/30/00 10/31/99
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Samsung Electronics 6.2% Samsung Electronics 3.8%
Taiwan Semiconductor 6.0 Hutchison Whampoa 3.4
Hutchison Whampoa 4.3 Taiwan Semiconductor 3.1
Cheung Hong Holdings 3.6 Cheung Kong Holdings 2.7
News Corp 3.5 Pohang Iron and Steel 2.7
Na Yan Plastic 3.0 Dao Heng Bank Group 2.2
DBS Group Holdings 2.6 Sun Hung Kai Properties 2.1
Infosys Technology 2.5 Nan Ya Plastic 2.1
China Telecom 2.2 Korea Electric Power Corp. 2.1
Broken Hill Proprietary Co. 2.2 Telstra Corp. 2.0
--------------------------------------------------------------------------------------
Total 36.1 Total 26.2
</TABLE>
* Weightings represent percentages of net assets as of the dates indicated. The
Fund's portfolio is actively managed and its composition will vary over time.
12
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND, EMERGING MARKETS SEMIANNUAL REPORT
EQUITY FUND AND ASIA PACIFIC GROWTH FUND
Our ultimate objective in managing your investments is to help you
successfully meet your financial goals. We thank you for your continued support
and welcome any comments or questions you may have. For a QUARTERLY REVIEW on
PaineWebber Global Equity Fund, PaineWebber Emerging Markets Equity Fund,
PaineWebber Asia Pacific Growth Fund or another fund in the PaineWebber Family
of Funds(1), please contact your Financial Advisor.
Sincerely,
/s/ Margo Alexander
MARGO ALEXANDER
Chairman and
Chief Executive Officer
Mitchell Hutchins
Asset Management Inc.
/s/ Mark A. Tincher
MARK A. TINCHER
Managing Director and Chief
Investment Officer - Equities
Mitchell Hutchins Asset
Management Inc.
Portfolio Manager, PaineWebber
Global Equity Fund
/s/ John Troiano
JOHN TROIANO
Portfolio Manager, PaineWebber
Emerging Markets Equity Fund
/s/ Louise Croset
LOUISE CROSET
Portfolio Manager, PaineWebber
Asia Pacific Growth Fund
/s/ Brian Storms
BRIAN M. STORMS
President and
Chief Operating Officer
Mitchell Hutchins
Asset Management Inc.
/s/ Scott Opsal
SCOTT OPSAL
Portfolio Manager, PaineWebber
Global Equity Fund
/s/ Mark Bridgeman
MARK BRIDGEMAN
Portfolio Manager, PaineWebber
Emerging Markets Equity Fund
/s/ Kirkham Barneby
T. KIRKHAM BARNEBY
Managing Director and Chief
Investment Officer - Quantitative Investments
Mitchell Hutchins Asset
Management Inc.
Asset Allocator,
PaineWebber Global Equity Fund
/s/ Kurtis Spieler
KURTIS SPIELER
Portfolio Manager, PaineWebber
Global Equity Fund
/s/ Heather Crighton
HEATHER CRIGHTON
Portfolio Manager, PaineWebber
Emerging Markets Equity Fund,
PaineWebber Asia Pacific Growth Fund
This letter is intended to assist shareholders in understanding how the
funds performed during the six-month period ended April 30, 2000, and
reflects our views at the time of its writing. Of course, these views may
change in response to changing circumstances. We encourage you to consult
your Financial Advisor regarding your personal investment program.
(1) Mutual funds are sold by prospectus only. The prospectuses for the
funds contain more complete information regarding risks, charges and
expenses, and should be read carefully before investing.
13
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN(1)
----------------------------------------- ---------------------------------------------
12 MONTHS 6 MONTHS
04/30/00 10/31/99 04/30/99 ENDED 04/30/00 ENDED 04/30/00
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $17.21 $17.90 $ 17.84 12.25% 11.87%
-----------------------------------------------------------------------------------------------------------------------------
Class B Shares 15.91 16.81 16.82 11.27 11.34
-----------------------------------------------------------------------------------------------------------------------------
Class C Shares 15.96 16.84 16.85 11.38 11.45
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS A SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
----------------------- CAPITAL GAINS
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID TOTAL 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
-----------------------------------------------------------------------------------------------------------------------------
1998 16.14 17.15 0.8142 0.0185 11.61
-----------------------------------------------------------------------------------------------------------------------------
1999 17.15 17.42 2.7044 -- 18.19
-----------------------------------------------------------------------------------------------------------------------------
01/01/00-04/30/00 17.42 17.21 -- -- (1.21)
-----------------------------------------------------------------------------------------------------------------------------
Total: $8.7721 $0.0985
-----------------------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/00: 143.87%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS B SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
----------------------- CAPITAL GAINS
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID TOTAL 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
-----------------------------------------------------------------------------------------------------------------------------
1998 15.42 16.22 0.8142 -- 10.67
-----------------------------------------------------------------------------------------------------------------------------
1999 16.22 16.15 2.7044 -- 17.13
-----------------------------------------------------------------------------------------------------------------------------
01/01/00-04/30/00 16.15 15.91 -- -- (1.49)
-----------------------------------------------------------------------------------------------------------------------------
Total: $7.1481 $0.0000
-----------------------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/00: 55.42%
-----------------------------------------------------------------------------------------------------------------------------
</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. Total investment returns for periods of less than
one year have not been annualized.
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.
14
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
PERFORMANCE RESULTS (UNAUDITED)(CONCLUDED)
PERFORMANCE SUMMARY CLASS C SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
----------------------- CAPITAL GAINS
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID TOTAL 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
-----------------------------------------------------------------------------------------------------------------------------
1998 15.43 16.24 0.8142 -- 10.73
-----------------------------------------------------------------------------------------------------------------------------
1999 16.24 16.19 2.7044 -- 17.23
-----------------------------------------------------------------------------------------------------------------------------
01/01/00-04/30/00 16.19 15.96 -- -- (1.42)
-----------------------------------------------------------------------------------------------------------------------------
Total: $8.6111 $0.0000
-----------------------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/99: 97.15%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Figures assume reinvestment of all dividend 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. Total investment returns for periods of less than one year have
not been annualized.
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, one and five years ended April 30, 2000, and since inception, May 10,
1993, through April 30, 2000, Class Y shares had a total return of 12.12%,
12.74%, 71.87% and 112.74%, 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.
15
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN(1)
----------------------------------------- ---------------------------------------------
12 MONTHS SIX MONTHS
04/30/00 10/31/99 04/30/99 ENDED 04/30/00 ENDED 04/30/00
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $11.22 $ 9.71 $ 9.01 24.53% 15.55%
-----------------------------------------------------------------------------------------------------------------------------
Class B Shares 10.96 9.52 8.88 23.42 15.13
-----------------------------------------------------------------------------------------------------------------------------
Class C Shares 10.97 9.53 8.88 23.54 15.11
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS A SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
----------------------- CAPITAL GAINS
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID TOTAL RETURN(1)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
03/25/97-12/31/97 $12.50 $ 8.26 -- -- (33.92)%
-----------------------------------------------------------------------------------------------------------------------------
1998 8.26 7.29 -- -- (11.74)
-----------------------------------------------------------------------------------------------------------------------------
1999 7.29 12.20 -- -- 67.35
-----------------------------------------------------------------------------------------------------------------------------
01/01/00-04/30/00 12.20 11.22 -- -- (8.03)
-----------------------------------------------------------------------------------------------------------------------------
Total: $0.0000 $0.0000
-----------------------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/00: (10.24)%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS B SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
----------------------- CAPITAL GAINS
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID TOTAL RETURN(1)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
03/25/97-12/31/97 $12.50 $ 8.21 -- -- (34.32)%
-----------------------------------------------------------------------------------------------------------------------------
1998 8.21 7.20 -- -- (12.30)
-----------------------------------------------------------------------------------------------------------------------------
1999 7.20 11.95 -- -- 65.97
-----------------------------------------------------------------------------------------------------------------------------
01/01/00-04/30/00 11.95 10.96 -- -- (8.28)
-----------------------------------------------------------------------------------------------------------------------------
Total: $0.0000 $0.0000
-----------------------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/00: (12.32)%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS C SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
----------------------- CAPITAL GAINS
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID TOTAL RETURN(1)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
03/25/97-12/31/97 $12.50 $ 8.21 -- -- (34.32)%
-----------------------------------------------------------------------------------------------------------------------------
1998 8.21 7.20 -- -- (12.30)
-----------------------------------------------------------------------------------------------------------------------------
1999 7.20 11.96 -- -- 66.11
-----------------------------------------------------------------------------------------------------------------------------
01/01/00-04/30/00 11.96 10.97 -- -- (8.28)
-----------------------------------------------------------------------------------------------------------------------------
Total: $0.0000 $0.0000
-----------------------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/00: (12.24)%
-----------------------------------------------------------------------------------------------------------------------------
</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. Total investment returns for periods of less than one year have
not been annualized.
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 and
one year ended April 30, 2000 and since inception, March 13, 1998 through April
30, 2000, Class Y shares had a total return of 15.70%, 24.86% and 29.33%,
respectively. 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.
16
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
PERFORMANCE RESULTS (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET VALUE TOTAL RETURN(1)
----------------------------------------- ---------------------------------------------
12 MONTHS 6 MONTHS
04/30/00 10/31/99 04/30/99 ENDED 04/30/00 ENDED 04/30/00
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A Shares $9.78 $ 8.79 $ 8.43 16.01% 11.26%
-----------------------------------------------------------------------------------------------------------------------------
Class B Shares 9.45 8.52 8.21 15.10 10.92
-----------------------------------------------------------------------------------------------------------------------------
Class C Shares 9.35 8.43 8.14 14.86 10.91
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS A SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
----------------------- CAPITAL GAINS
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID TOTAL 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)
-----------------------------------------------------------------------------------------------------------------------------
1998 9.27 6.82 -- -- (26.43)
-----------------------------------------------------------------------------------------------------------------------------
1999 6.82 11.01 -- -- 61.44
-----------------------------------------------------------------------------------------------------------------------------
01/01/00-04/30/00 11.01 9.78 -- -- (11.17)
-----------------------------------------------------------------------------------------------------------------------------
Total: $0.0000 $ 0.0517
-----------------------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/00: (18.02)%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS B SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
----------------------- CAPITAL GAINS
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID TOTAL 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)
-----------------------------------------------------------------------------------------------------------------------------
1998 9.06 6.66 -- -- (26.49)
-----------------------------------------------------------------------------------------------------------------------------
1999 6.66 10.66 -- -- 60.06
-----------------------------------------------------------------------------------------------------------------------------
01/01/00-04/30/00 10.66 9.45 -- -- (11.35)
-----------------------------------------------------------------------------------------------------------------------------
Total: $0.0000 $0.0000
-----------------------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/00: 3.50%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
PERFORMANCE SUMMARY CLASS C SHARES
<TABLE>
<CAPTION>
NET ASSET VALUE
----------------------- CAPITAL GAINS
PERIOD COVERED BEGINNING ENDING DISTRIBUTED DIVIDENDS PAID TOTAL 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)
-----------------------------------------------------------------------------------------------------------------------------
1998 9.04 6.60 -- -- (26.99)
-----------------------------------------------------------------------------------------------------------------------------
1999 6.60 10.55 -- -- 59.85
-----------------------------------------------------------------------------------------------------------------------------
01/01/00-04/30/00 10.55 9.35 -- -- (11.37)
-----------------------------------------------------------------------------------------------------------------------------
Total: $0.0000 $0.0034
-----------------------------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN AS OF 04/30/00: (22.05)%
-----------------------------------------------------------------------------------------------------------------------------
</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. Total investment returns for periods of less than
one year have not been annualized.
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, one and five years ended April 30, 2000 and since inception, January 19,
1994 through April 30, 2000, Class Y shares had a total return of 11.36%,
16.20%, 6.68% and (16.87)%, 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.
17
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C>
COMMON STOCKS--91.45%
AUSTRALIA--1.83%
APPAREL, TEXTILES--0.09%
123,565 Pacifica Group Ltd. ..................................................... $ 320,399
------------
BANKS--0.46%
124,000 National Australia Bank, Ltd.(1) ........................................ 1,698,879
------------
COMPUTER SOFTWARE--0.26%
236,980 Computershare Ltd. ...................................................... 966,975
------------
MEDIA--0.99%
56,000 News Corp. Ltd. ADR(1) .................................................. 2,880,500
105,000 Publishing & Broadcasting Ltd. .......................................... 815,556
------------
3,696,056
------------
OIL SERVICES--0.03%
45,424 Spotless Group Ltd. ..................................................... 127,333
------------
Total Australia Common Stocks ......................................................... 6,809,642
------------
AUSTRIA--0.32%
BANKS--0.01%
869 Bank Austria AG ......................................................... 38,552
------------
ENERGY SOURCES--0.31%
13,900 OMV AG .................................................................. 1,141,707
------------
Total Austria Common Stocks ........................................................... 1,180,259
------------
BRITISH VIRGIN ISLANDS--0.20%
COMPUTER SOFTWARE--0.20%
8,899 Opentv Corp.(1) ......................................................... 728,606
------------
CANADA--1.75%
BANKS--0.60%
46,900 Royal Bank of Canada .................................................... 2,213,728
------------
DRUGS & MEDICINE--0.72%
56,280 Biovail Corp.(1) ........................................................ 2,683,852
------------
MINING & METALS--0.43%
29,900 Potash Corp. of Saskatchewan Inc. ....................................... 1,608,994
------------
Total Canada Common Stocks ............................................................ 6,506,574
------------
DENMARK--0.12%
Food & Household Products--0.12%
15,300 Danisco A/S ............................................................. 459,370
------------
FINLAND--4.89%
BANKS--1.24%
727,146 Nordic Baltic Holding ................................................... 4,600,897
------------
COMPUTER SOFTWARE--0.40%
65,260 Comptel PLC ............................................................. 1,474,891
------------
ELECTRICAL EQUIPMENT--1.52%
98,528 Nokia Ab OYJ ............................................................ 5,651,981
------------
ELECTRONIC COMPONENTS--1.09%
109,588 Perlos OYJ .............................................................. 4,059,778
------------
FINLAND--(CONCLUDED)
ELECTRONIC COMPONENTS & INSTRUMENTS--0.05%
22,223 PMJ Automec Corp. ....................................................... $ 179,806
------------
HOUSEHOLD PRODUCTS--0.26%
37,482 Teleste Corp ............................................................ 986,468
------------
MANUFACTURING-GENERAL--0.15%
17,341 Nokian Renkaat OYJ ...................................................... 567,529
------------
MANUFACTURING-HIGH TECHNOLOGY--0.18%
90,506 Jot Automation Group .................................................... 654,118
------------
Total Finland Common Stocks ........................................................... 18,175,468
------------
FRANCE--8.02%
AEROSPACE & MILITARY TECHNOLOGY--0.23%
12,900 Lagardere S.C.A. ........................................................ 873,691
------------
BANKS--0.48%
22,000 National Banque de Paris ................................................ 1,778,018
------------
BUILDING MATERIALS & COMPONENTS--0.39%
17,700 Lafarge ................................................................. 1,465,896
------------
CHEMICALS--0.38%
76,800 Rhodia Inc. S.A. ........................................................ 1,424,305
------------
COMPUTER-BUSINESS SERVICES--0.60%
11,300 Cap Gemini .............................................................. 2,218,931
------------
COMPUTER SOFTWARE--0.40%
11,082 Transiciel S.A. ......................................................... 1,478,958
------------
DRUGS & MEDICINE--1.18%
79,520 Aventis FP .............................................................. 4,388,102
------------
ENERGY SOURCES--1.19%
29,085 Total Fina Elf S.A.(1) .................................................. 4,413,032
------------
HEALTH & PERSONAL CARE--0.10%
6,900 Rhone Poulenc S.A* ...................................................... 379,504
------------
INDUSTRIAL SERVICES & SUPPLIES--0.67%
25,300 Vivendi ................................................................. 2,501,589
------------
INSURANCE--1.12%
28,000 AXA ..................................................................... 4,151,678
------------
WIRELESS TELECOMMUNICATIONS--1.28%
20,600 Alcatel ................................................................. 4,775,502
------------
Total France Common Stocks ............................................................ 29,849,206
------------
GERMANY--1.73%
BANKS--0.48%
26,900 Deutsche Bank AG ........................................................ 1,807,209
------------
BUSINESS & PUBLIC SERVICES--0.18%
16,950 GFK AG .................................................................. 678,777
------------
DIVERSIFIED INDUSTRIALS--0.88%
22,000 Siemens AG .............................................................. 3,260,033
------------
18
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C>
COMMON STOCKS--(CONTINUED)
GERMANY--(CONCLUDED)
SEMICONDUCTOR--0.19%
17,271 Elmos Semiconductor ..................................................... $ 698,697
------------
Total Germany Common Stocks ........................................................... 6,444,716
------------
GREECE--0.30%
WIRELESS TELECOMMUNICATIONS--0.30%
102,000 Hellenic Telecommunications ADR ......................................... 1,116,900
------------
HONG KONG--0.09%
HEALTH & PERSONAL CARE--0.09%
814,001 Quality Healthcare ...................................................... 334,412
------------
INDIA--1.05%
COMPUTER SOFTWARE--1.05%
54,800 Satyam Computer Services ................................................ 3,916,976
------------
IRELAND--0.62%
BANKS--0.62%
344,151 Bank of Ireland ......................................................... 2,321,476
------------
ISRAEL--2.78%
COMPUTER-BUSINESS SERVICES--0.78%
16,786 Check Point Software Tech Ltd. .......................................... 2,903,978
------------
COMPUTER SOFTWARE--0.59%
63,891 Tecnomatix Technologies Ltd.*(1) ........................................ 2,180,280
------------
ELECTRICAL EQUIPMENT--1.14%
49,658 Orbotech Ltd.* .......................................................... 4,233,345
------------
HOUSEHOLD PRODUCTS--0.27%
37,841 TTI Team Telecom International .......................................... 1,016,977
------------
Total Israel Common Stocks ............................................................ 10,334,580
------------
JAPAN--8.17%
APPAREL, RETAIL--0.29%
2,500 Fast Retailing Co ....................................................... 1,101,699
------------
BANKS--0.50%
192,000 Sanwa Bank(1) ........................................................... 1,855,742
------------
COMPUTER HARDWARE--2.06%
73,000 Canon Inc. .............................................................. 3,338,611
159,000 NEC Corp. ............................................................... 4,327,732
------------
7,666,343
------------
DRUGS & MEDICINE--0.22%
24,000 Taisho Pharmaceutical Co. ............................................... 804,333
------------
ELECTRICAL & ELECTRONICS--0.84%
5,000 Murata Manufacturing Co., Ltd. .......................................... 972,087
18,600 Sony Corp.(1) ........................................................... 2,144,730
------------
3,116,817
------------
JAPAN--(CONCLUDED)
ELECTRONIC COMPONENTS--1.46%
102,000 Fujitsu ................................................................. $ 2,889,599
262,000 Toshiba Corp. ........................................................... 2,542,017
------------
5,431,616
------------
FINANCIAL SERVICES--0.90%
142,000 Nikko Securities Co., Ltd. .............................................. 1,676,156
66,000 Nomura Securities Co. Ltd. .............................................. 1,661,991
------------
3,338,147
------------
HEALTH & PERSONAL CARE--0.36%
18,000 Takeda Chemical Industries .............................................. 1,184,835
5,000 Terumo Corp. ............................................................ 151,368
------------
1,336,203
------------
LONG DISTANCE & PHONE COMPANIES--0.43%
140 DDI Corp.(1) ............................................................ 1,607,184
------------
MERCHANDISING--0.46%
20,400 Yamada Denki Co. ........................................................ 1,699,764
------------
WIRELESS TELECOMMUNICATIONS--0.65%
73 NTT Mobile Communication(1) ............................................. 2,439,754
------------
Total Japan Common Stocks ............................................................. 30,397,602
------------
KOREA--0.72%
BANKS--0.20%
43,800 Housing and Commercial Bank ............................................. 749,899
------------
BUSINESS & PUBLIC SERVICES--0.00%
587 S1 Corp ................................................................. 7,881
------------
ELECTRICAL EQUIPMENT--0.28%
3,900 Samsung Electronics ..................................................... 1,054,291
------------
ELECTRONIC COMPONENTS--0.01%
2,574 Daeduck Electrics ....................................................... 22,499
------------
WIRELESS TELECOMMUNICATIONS--0.23%
24,800 Korea Telecom ........................................................... 855,600
------------
Total Korea Common Stocks ............................................................. 2,690,170
------------
NETHERLANDS--6.41%
BANKS--1.04%
71,100 ING Groep N.V. .......................................................... 3,879,513
------------
CABLE--0.21%
21,100 United Pan-Europe Communications
N.V. .................................................................... 767,856
------------
COMPUTER-BUSINESS SERVICES--0.91%
56,800 Getronics N.V. .......................................................... 3,387,379
------------
FOREST PRODUCTS, PAPER--0.58%
83,800 Buhrmann N.V.(1) ........................................................ 2,159,776
------------
HUMAN RESOURCES--0.26%
42,223 Unique International N.V. ............................................... 969,220
------------
19
<PAGE>
<CAPTION>
PAINEWEBBER GLOBAL EQUITY FUND
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C>
COMMON STOCKS--(CONTINUED)
NETHERLANDS--(CONCLUDED)
MULTI-INDUSTRY--0.10%
21,130 Aalberts Industries ..................................................... $ 385,146
------------
PUBLISHING--0.35%
23,900 Vnu N.V. ................................................................ 1,278,663
------------
SEMICONDUCTOR--1.80%
150,288 Koninklijke Philips Electronics N.V.(1) ................................. 6,704,278
------------
WIRELESS TELECOMMUNICATIONS--1.16%
42,600 Kon KPN N.V. ............................................................ 4,292,961
------------
Total Netherlands Common Stocks 23,824,792
------------
NEW ZEALAND--0.81%
WIRELESS TELECOMMUNICATIONS--0.81%
709,000 Telecom Corp. of New Zealand Ltd.(1) .................................... 2,995,327
------------
NORWAY--0.33%
OIL SERVICES--0.33%
79,400 Petroleum Geo Services ASA .............................................. 1,240,833
------------
PORTUGAL--0.49%
RAILROADS--0.49%
258,000 Brisa Auto Estrada ...................................................... 1,822,436
------------
SINGAPORE--0.10%
ELECTRONIC COMPONENTS & INSTRUMENTS--0.10%
250,000 IDT Holding Singapore Ltd. .............................................. 383,827
------------
SPAIN--1.56%
HOUSEHOLD PRODUCTS--1.03%
133,000 Indra Sistemas S.A. ..................................................... 3,146,086
13,301 Jazztel PLC(1) .......................................................... 691,652
------------
3,837,738
------------
WIRELESS TELECOMMUNICATIONS--0.53%
77,000 Telecomunicacoes De Sao Paulo ........................................... 1,944,250
------------
Total Spain Common Stocks ............................................................. 5,781,988
------------
SWEDEN--2.96%
FINANCIAL SERVICES--0.74%
195,000 Investor AB ............................................................. 2,740,352
------------
HOTELS--0.24%
86,000 Scandic Hotels AB ....................................................... 911,220
------------
TOBACCO--0.42%
519,600 Swedish Match AB(1) ..................................................... 1,547,326
------------
WIRELESS TELECOMMUNICATIONS--1.56%
65,362 Ericsson LM B Shares .................................................... 5,810,118
------------
Total Sweden Common Stocks 11,009,016
------------
SWITZERLAND--2.16%
BANKS--1.19%
451 Bank Sarasin & Cie ...................................................... 1,213,441
13,100 UBS AG .................................................................. 3,209,388
------------
4,422,829
------------
SWITZERLAND--(CONCLUDED)
CHEMICALS--0.39%
3,960 Clariant AG(1) .......................................................... $ 1,444,342
------------
HEALTH & PERSONAL CARE--0.58%
1,543 Novartis Ltd. ........................................................... 2,155,395
------------
Total Switzerland Common Stocks ....................................................... 8,022,566
------------
UNITED KINGDOM--14.37%
BEVERAGES & TOBACCO--0.97%
449,000 Diageo PLC .............................................................. 3,621,188
------------
BROADCASTING & PUBLISHING--0.58%
166,000 United News & Media PLC ................................................. 2,158,090
------------
BUILDING MATERIALS & COMPONENTS--0.30%
95,000 RMC Group ............................................................... 1,124,119
------------
COMPUTER SOFTWARE--3.42%
62,317 Autonomy Corp. Technologies PLC ......................................... 8,506,270
40,372 Baltimore Tech .......................................................... 4,074,405
354,265 Electronics Boutique .................................................... 150,304
------------
12,730,979
------------
DRUGS & MEDICINE--0.47%
56,000 Glaxo Wellcome PLC ...................................................... 1,730,707
------------
ELECTRONIC COMPONENTS--0.26%
53,000 Bowthorpe ............................................................... 977,843
------------
FINANCIAL SERVICES--0.72%
183,000 Amvescap PLC ............................................................ 2,678,267
------------
Food & Household Products--0.67%
240,500 Reckitt & Colman PLC .................................................... 2,474,156
------------
HEALTH & PERSONAL CARE--0.41%
36,436 Astrazeneca PLC(1) ...................................................... 1,521,892
------------
INSURANCE--0.67%
446,000 Royal & Sun Alliance .................................................... 2,499,840
------------
LEISURE & TOURISM--0.29%
90,000 Carlton Communications PLC .............................................. 1,090,878
------------
MEDIA--0.36%
488,000 Aegis Group ............................................................. 1,329,636
------------
MULTI INDUSTRY--0.40%
502,200 Cookson Group PLC ....................................................... 1,477,792
------------
OIL REFINING--1.19%
513,000 BP Amoco ................................................................ 4,428,879
------------
SEMICONDUCTOR--0.64%
21,619 Dialog Semiconductor .................................................... 2,378,114
------------
WIRELESS TELECOMMUNICATIONS--3.02%
177,000 British Telecommunications PLC .......................................... 3,169,174
202,276 Cable & Wireless PLC .................................................... 3,357,194
20
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C>
COMMON STOCKS--(CONTINUED)
UNITED KINGDOM--(CONCLUDED)
WIRELESS TELECOMMUNICATIONS--(CONCLUDED)
1,023,553 Vodafone Airtouch PLC ................................................... $ 4,685,248
------------
11,211,616
------------
Total United Kingdom Common Stocks .................................................... 53,433,996
------------
UNITED STATES--29.67%
BANKS--1.44%
46,800 Chase Manhattan Corp. ................................................... 3,372,525
33,500 Citigroup, Inc. ......................................................... 1,991,156
------------
5,363,681
------------
CHEMICALS--0.25%
8,200 Dow Chemical Co. ........................................................ 926,600
------------
COMPUTER HARDWARE--3.03%
117,000 Cisco Systems, Inc.* .................................................... 8,111,391
63,300 Dell Computer Corp.* .................................................... 3,172,912
------------
11,284,303
------------
COMPUTER SOFTWARE--2.70%
24,500 BMC Software, Inc.* ..................................................... 1,146,906
90,000 Cognizant Technology Solutions .......................................... 4,128,750
17,600 IBM Corp. ............................................................... 1,964,600
33,800 Microsoft Corp.* ........................................................ 2,357,550
18,500 Unisys Corp.* ........................................................... 428,969
------------
10,026,775
------------
CONSUMER DURABLES--0.27%
15,600 Whirlpool Corp. ......................................................... 1,015,950
------------
DEFENSE & AEROSPACE--0.44%
18,900 Boeing Co. .............................................................. 750,094
15,300 TRW Inc. ................................................................ 895,050
------------
1,645,144
------------
DIVERSIFIED RETAIL--1.50%
48,600 Federated Department Stores, Inc.* ...................................... 1,652,400
48,300 Target Corp. ............................................................ 3,214,969
12,700 Wal-Mart Stores, Inc. ................................................... 703,262
------------
5,570,631
------------
DRUGS & MEDICINE--1.48%
33,800 Amerisource Health Corp.*(1) ............................................ 676,000
57,800 Schering-Plough Corp. ................................................... 2,330,063
22,100 Warner Lambert Co. ...................................................... 2,515,256
------------
5,521,319
------------
ELECTRIC UTILITIES--0.20%
35,800 Energy East Corp. ....................................................... 747,325
------------
ELECTRICAL EQUIPMENT--1.30%
24,800 Honeywell, Inc. ......................................................... 1,388,800
12,543 Johnson Controls, Inc. .................................................. 794,129
UNITED STATES--(CONTINUED)
ELECTRICAL EQUIPMENT--(CONCLUDED)
22,400 Motorola, Inc. .......................................................... $ 2,667,000
------------
4,849,929
------------
ELECTRICAL POWER--0.22%
14,700 Emerson Electric Co. .................................................... 806,663
------------
ENERGY RESERVES & PRODUCTION--2.02%
20,600 Chevron Corp. ........................................................... 1,753,575
41,291 Exxon Mobil Corp. ....................................................... 3,207,795
44,600 Royal Dutch Petroleum Co. ADR ........................................... 2,558,925
------------
7,520,295
------------
ENTERTAINMENT--0.52%
35,300 Viacom, Inc., Class B* .................................................. 1,919,437
------------
FINANCIAL SERVICES--0.45%
37,800 MBNA Corp. .............................................................. 1,004,062
7,401 Providian Financial Corp. ............................................... 651,751
------------
1,655,813
------------
FOREST PRODUCTS, PAPER--0.97%
34,000 Champion International Corp. ............................................ 2,235,500
14,300 International Paper Co.(1) .............................................. 525,525
15,600 Weyerhaeuser Co. ........................................................ 833,625
------------
3,594,650
------------
GAS UTILITY--0.54%
15,200 Columbia Energy Group ................................................... 953,800
25,100 El Paso Energy Corp. .................................................... 1,066,750
------------
2,020,550
------------
INDUSTRIAL PARTS--2.15%
19,000 American Standard Companies Inc.* ....................................... 779,000
25,400 Ingersoll Rand Co. ...................................................... 1,192,212
78,800 Mettler-Toledo International Inc.* ADR .................................. 2,718,600
53,200 United Technologies Corp. ............................................... 3,308,375
------------
7,998,187
------------
INDUSTRIAL SERVICES & SUPPLIES--0.58%
15,700 Hertz Corp. ............................................................. 489,644
36,100 Tyco International Ltd. ADR ............................................. 1,658,343
------------
2,147,987
------------
LIFE INSURANCE--0.38%
25,300 American General Corp.(1) ............................................... 1,416,800
------------
LONG DISTANCE & PHONE COMPANIES--1.27%
48,300 BellSouth Corp. ......................................................... 2,351,606
52,300 MCI WorldCom, Inc.* ..................................................... 2,376,381
------------
4,727,987
------------
MEDIA--0.14%
13,200 Comcast Corp., Class A .................................................. 528,825
------------
MEDICAL PRODUCTS--0.26%
15,100 Baxter International, Inc. .............................................. 983,388
------------
21
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<CAPTION>
NUMBER OF
SHARES VALUE
----------- ------------
<S> <C>
COMMON STOCKS--(CONCLUDED)
UNITED STATES--(CONTINUED)
MINING & METALS--0.17%
9,700 Alcoa, Inc. ............................................................. $ 629,288
------------
MOTOR VEHICLES--1.09%
33,400 Borg Warner Automotive, Inc. ............................................ 1,396,538
48,300 Ford Motor Co. .......................................................... 2,641,406
------------
4,037,944
------------
OIL REFINING--0.33%
20,300 Conoco, Inc. ............................................................ 504,962
22,000 Tosco Corp. ............................................................. 705,375
------------
1,210,337
------------
OIL SERVICES--0.46%
38,800 Halliburton Co.(1) ...................................................... 1,714,475
------------
OTHER INSURANCE--0.93%
28,600 AMBAC Financial Group Inc. .............................................. 1,372,800
41,100 Radian Group Inc. ....................................................... 2,093,531
------------
3,466,331
------------
UNITED STATES--(CONCLUDED)
PUBLISHING--0.47%
35,900 Knight Ridder, Inc. ..................................................... $ 1,761,344
------------
SECURITIES & ASSET MANAGEMENT--0.84%
40,600 Morgan Stanley Dean Witter & Co. ........................................ 3,116,050
------------
SEMICONDUCTOR--3.08%
41,600 Applied Materials, Inc.* ................................................ 4,235,400
48,800 Atmel Corp.* ............................................................ 2,388,150
40,000 JDS Uniphase Corp.* ..................................................... 4,147,500
9,800 Vitesse Semiconductor Corp.* ............................................ 667,012
------------
11,438,062
------------
SPECIALTY RETAIL--0.19%
36,300 Staples, Inc.* .......................................................... 691,969
------------
Total United States Common Stocks ..................................................... 110,338,039
------------
Total Common Stocks (cost--$255,385,986) .............................................. 340,118,777
------------
NUMBER OF
RIGHTS
-----------
RIGHTS--0.01%
SWEDEN--0.01%
Tobacco--0.01%
667,500 Swedish Match ........................................................... 44,133
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES
----------- -------------- --------------
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--1.06%
$4,000 U.S. Treasury Bills ......................... 07/20/00 5.630% 3,949,955
------------
REPURCHASE AGREEMENTS--7.02%
16,355 Repurchase Agreement dated 04/28/00 with
Societe Generale, collaterized by $13,033,00
U.S. Treasury Bond, 8.875% due 08/15/17;
(value-$16,682,240); proceeds: $16,362,755 .. 05/01/00 5.690 16,355,000
22
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
----------- -------------- -------------- ------------
<S> <C> <C> <C>
Repurchase Agreements--(concluded)
$ 9,751 Repurchase Agreement dated 04/28/00 with SG
Warburg, collaterized by $9,812,000
U.S. Treasury Bond, 6.250% due 08/15/23;
(value-$9,946,915); proceeds: $9,755,632 .... 05/01/00 5.700% $ 9,751,000
------------
Total Repurchase Agreements (cost--$26,106,000) ....................................... 26,106,000
------------
Total Investments (cost--$285,441,942)--99.54% ........................................ 370,218,865
Other assets in excess of liabilities--0.46% .......................................... 1,717,926
------------
Net Assets--100.00% ................................................................... $371,936,791
============
</TABLE>
--------------
* Non-Income producing security.
ADR American Depository Receipt
(1) Security, or portion thereof, was on loan at April 30, 2000.
FUTURES CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
NUMBER OF IN EXPIRATION APPRECIATION
CONTRACTS OUTSTANDING FUTURES CONTRACTS EXCHANGE FOR DATE (DEPRECIATION)
------------ ---------------------------------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
8 CAC40 Ten Euro (France) .......... $ 472,362 May 2000 $ (4,327)
3 DAX Index (Germany) .............. 512,503 June 2000 (3,681)
12 FTSE Index (United Kingdom) ...... 1,186,098 June 2000 4,751
1 Hang Seng Index (Hong Kong) ...... 98,084 May 2000 1,348
2 IBEX Plus (Spain) ................ 214,039 May 2000 (4,036)
1 MIB 30 Index (Italy) ............. 211,756 June 2000 (4,036)
10 OMX Index (Sweden) ............... 167,884 May 2000 (5,441)
84 S & P 500 (United States) ........ 29,787,069 June 2000 872,931
2 SPI Futures (Australia) .......... 90,275 June 2000 1,285
6 Topix Index (Japan) .............. 902,287 June 2000 18,290
------------
$877,084
============
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
----------- --------
<S> <C>
COMMON STOCKS--98.08%
AUSTRALIA--16.12%
BANKS--3.13%
44,100 Commonwealth Bank of Austria ............................................ $ 671,674
34,300 National Australia Bank Ltd.(1) ......................................... 469,932
------------
1,141,606
------------
BREWERIES, PUBS, & RESTAURANTS--0.79%
113,100 Foster's Brewing Group Ltd. ............................................. 285,734
------------
COMPUTER SOFTWARE--0.79%
246,000 IBA Technologies Ltd.* .................................................. 182,453
35,800 Securenet* .............................................................. 106,627
------------
289,080
------------
DIVERSIFIED INDUSTRIALS--2.11%
71,439 Broken Hill Propriety Co. Ltd. .......................................... 769,323
------------
ELECTRICITY--0.82%
163,200 United Energy* .......................................................... 300,223
------------
LEISURE & HOTELS--0.62%
42,100 TABCORP Holdings Ltd. ................................................... 225,359
------------
MEDIA--3.53%
101,400 News Corp. Ltd. ......................................................... 1,287,746
------------
MINING--1.95%
14,700 Brambles Industries Ltd. ................................................ 413,787
20,000 Rio Tinto Ltd. .......................................................... 297,104
------------
710,891
------------
OIL EXPLORATION & PRODUCTION--0.89%
52,600 Woodside Petroleum Ltd. ................................................. 325,308
------------
REAL ESTATE--1.09%
36,500 Lend Lease Corp. Ltd. ................................................... 395,540
------------
TELECOMMUNICATIONS--0.40%
33,800 Telstra Corp. ........................................................... 144,886
------------
Total Australia Common Stocks ......................................................... 5,875,696
------------
HONG KONG--21.22%
BANKS--1.36%
61,000 Bank of East Asia ....................................................... 131,958
78,500 Dao Heng Bank Group ..................................................... 362,810
------------
494,768
------------
COMMUNICATIONS--4.28%
108,000 China Telecom* .......................................................... 772,994
320,000 E-New Media* ............................................................ 51,353
344,000 Global Technology Holdings .............................................. 393,057
145,800 Hong Kong Telecom Co. Ltd.* ............................................. 344,415
------------
1,561,819
------------
HONG KONG--(CONCLUDED)
ELECTRICAL APPLIANCES--2.28%
123,000 ASM Pacific Technology* ................................................. $ 435,834
60,000 Legend Holdings Inc.* ................................................... 69,327
539,000 TCl International* ...................................................... 325,232
------------
830,393
------------
REAL ESTATE--11.67%
111,000 Cheung Kong Holdings Ltd.* .............................................. 1,325,297
99,000 Henderson Land Developement Co. Ltd...................................... 433,408
108,000 Hutchison Whampoa Ltd.* ................................................. 1,566,785
90,000 Sun Hung Kai Properties Ltd.............................................. 704,822
678 Sunevision Holdings Inc.* ............................................... 883
109,000 Wharf Ltd.* ............................................................. 225,999
------------
4,257,194
------------
SERVICES--0.90%
48,000 Television Broadcasting Ltd. ............................................ 328,147
------------
WHOLESALE--0.73%
68,000 Li & Fung Ltd.* ......................................................... 265,393
------------
Total Hong Kong Common Stocks ......................................................... 7,737,714
------------
INDIA--8.72%
BUILDING MATERIALS/CONSTRUCTION--0.06%
7,000 Associated Cement Co.* .................................................. 23,879
------------
CHEMICALS--1.96%
90,000 Reliance Industries Ltd. ................................................ 715,258
------------
HOUSEHOLD GOODS & TEXTILES--0.90%
6,000 Hindustan Lever ......................................................... 329,196
------------
OIL EXPLORATION & PRODUCTION--0.08%
11,050 Hindustan Petroleum Corp. ............................................... 29,618
------------
OIL & GAS--0.33%
30,500 Bharat Petroleum Corp. .................................................. 122,035
------------
PHARMACEUTICALS--0.43%
11,050 Ranbaxy Laboratories Ltd. ............................................... 156,168
------------
SUPPORT SERVICES--3.06%
5,000 Infosys Technology Ltd. ................................................. 927,835
4,000 NIIT Ltd. ............................................................... 186,942
------------
1,114,777
------------
TELECOMMUNICATIONS--1.52%
62,900 MahanagarTelephone Nigam Ltd. ........................................... 324,299
7,500 Videsh Sanchar Nigam Ltd. ............................................... 228,522
------------
552,821
------------
TOBACCO--0.38%
10,500 ITC Ltd.* ............................................................... 137,113
------------
Total India Common Stocks ............................................................. 3,180,865
------------
24
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
<CAPTION>
NUMBER OF
SHARES VALUE
----------- --------
<S> <C>
COMMON STOCKS--(CONTINUED)
INDONESIA--1.35%
BANKS--0.15%
5,898,500 Bank International of Indonesia* ........................................ $ 55,999
------------
COMMUNICATIONS--0.58%
487,680 P.T.Telekomunikasi Indonesia ............................................ 212,974
------------
FOODS--0.38%
30,500 H.M. Sampoerna* ......................................................... 44,302
137,000 Indofoods Sukses Mak* ................................................... 93,646
------------
137,948
------------
MISCELLANEOUS MANUFACTURING--0.24%
55,000 P.T. Gudang Garam* ...................................................... 87,025
------------
Total Indonesia Common Stocks ......................................................... 493,946
------------
KOREA--13.06%
BANKS--1.89%
45,382 Kookmin Bank ............................................................ 490,727
20,500 Shinhan Bank ............................................................ 196,733
------------
687,460
------------
COMMUNICATIONS--2.55%
300 Korea Telecom ........................................................... 20,491
7,500 Korea Telecom ADR ....................................................... 258,750
1,620 SK Telecom .............................................................. 430,637
7,210 SK Telecom Ltd.ADS ...................................................... 219,905
------------
929,783
------------
ELECTRICAL APPLIANCES--6.16%
8,314 Samsung Electronic Corp. ................................................ 2,247,533
------------
ELECTRICITY & GAS--1.62%
20,200 Korea Electric Power Corp. .............................................. 591,575
------------
IRON & STEEL--0.84%
3,900 Pohang Iron & Steel Co. Ltd. ............................................ 305,042
------------
Total Korea Common Stocks ............................................................. 4,761,393
------------
MALAYSIA--9.24%
BANKS--1.46%
128,500 Malayan Banking Berhad .................................................. 534,289
------------
CHEMICALS--0.32%
62,000 Chemical Co. Malaysia Berhad ............................................ 115,842
------------
COMMUNICATIONS--0.49%
51,500 Telekom Malaysia Berhad* ................................................ 178,895
------------
CONSTRUCTION--1.42%
231,000 Gamuda Berhad ........................................................... 306,987
82,000 United Enigeers Ltd. Berhad* ............................................ 211,474
------------
518,461
------------
ELECTRICITY & GAS--1.54%
169,000 Tenaga National Berhad .................................................. 560,368
------------
MALAYSIA--(CONCLUDED)
MISCELLANEOUS FINANCIAL--0.92%
234,000 Arab Malaysian Finance Berhad* .......................................... $ 335,605
------------
MISCELLANEOUS MANUFACTURING--0.83%
27,000 Malaysian Pacific Industries Berhad ..................................... 301,974
-----------
REAL ESTATE--0.29%
113,000 Malaysian Resources Corp.* .............................................. 104,674
------------
SERVICES--1.97%
43,000 Genting Berhad* ......................................................... 173,132
168,000 Resorts World Berhad* ................................................... 543,789
------------
716,921
------------
Total Malaysia Common Stocks .......................................................... 3,367,029
------------
NEW ZEALAND--0.66%
COMMUNICATIONS--0.66%
57,300 Telecom Corp. of New Zealand Ltd.(1) .................................... 242,076
------------
PHILIPPINES--0.82%
BANKS--0.13%
8,200 Metropolitan Bank & Trust Co.* .......................................... 45,682
------------
COMMERCE/INDUSTRIAL--0.17%
265,900 Ayala Corp. ............................................................. 60,542
------------
COMMUNICATIONS--0.19%
3,900 Philippine Long Distance Telephone Co. .................................. 69,904
------------
ELECTRICITY & GAS--0.33%
67,800 Manila Electric Co. ..................................................... 121,526
------------
Total Philippines Common Stocks ....................................................... 297,654
------------
SINGAPORE--9.97%
BANKS--2.58%
68,339 DBS Group Holdings* ..................................................... 941,088
------------
COMMUNICATIONS--0.62%
30,000 Datacraft Asia ADR* ..................................................... 225,000
------------
ELECTRICAL APPLIANCES--0.07%
3,000 Chartered Semiconductors* ............................................... 25,842
------------
ELECTRONICS--0.44%
28,000 Natsteel Electronics*(1) ................................................ 160,797
------------
MISCELLANEOUS MANUFACTURING--1.42%
75,000 ST Assembly Test Services Ltd.*(1) ...................................... 316,437
17,000 Venture Manufacturing Ltd.* ............................................. 199,238
------------
515,675
------------
REAL ESTATE--1.46%
66,000 City Development Ltd.* .................................................. 299,736
165,000 DBS Land Ltd.* .......................................................... 233,988
------------
533,724
------------
SERVICES--1.70%
31,642 Singapore Press Holdings ................................................ 619,304
------------
25
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
<CAPTION>
NUMBER OF
SHARES VALUE
----------- --------
<S> <C>
COMMON STOCKS--(CONCLUDED)
SINGAPORE--(CONCLUDED)
SHIPPING--0.63%
88,000 Keppel Telecom & Transportation*(1) ..................................... $ 116,027
125,000 Neptune Orient Lines Ltd.* .............................................. 112,072
------------
228,099
------------
TRANSPORTATION--1.05%
37,000 Singapore International Airlines ........................................ 383,768
------------
Total Singapore Common Stocks ......................................................... 3,633,297
------------
TAIWAN--13.21%
CHEMICALS--3.08%
525,499 Nan Ya Plastic* ......................................................... 1,125,027
------------
COMMERCE/INDUSTRIAL--1.12%
36,854 Asustek Computer Inc.GDR* ............................................... 408,351
------------
ELECTRICAL APPLIANCES--9.01%
221,450 Acer Inc.* .............................................................. 463,239
80,000 Compeq Manufacturing Ltd.* .............................................. 441,902
65,000 Macronix International* ................................................. 196,519
338,920 Taiwan Semiconductor
Manufacturing Co. Ltd.* ................................................. 2,182,293
------------
3,283,953
------------
Total Taiwan Common Stocks ............................................................ 4,817,331
------------
THAILAND--2.70%
BANKS--0.89%
15,000 Bangkok Bank Public Co Ltd.* ............................................ 25,417
187,500 Siam Commercial Bank* ................................................... 150,237
142,000 Thai Farmers Bank PLC* .................................................. 149,218
------------
324,872
------------
THAILAND--(CONCLUDED)
COMMUNICATIONS--1.35%
8,000 Advanced Information Service PCL* ....................................... $ 93,734
257,500 Telecom Asia Corp. PCL* ................................................. 345,002
21,000 Total Access Communication* ............................................. 55,230
------------
493,966
------------
CONSTRUCTION--0.13%
2,000 Siam Cement Co.* ........................................................ 46,237
------------
ELECTRICITY & GAS--0.33%
99,000 Electricity Generating Public Co. Ltd.*(1) .............................. 120,288
------------
Total Thailand Common Stocks .......................................................... 985,363
------------
UNITED STATES--1.01%
ELECTRICAL APPLIANCES--1.01%
35 Acer Inc. 368,160
------------
Total Investments (cost--$27,655,169)--98.08% ......................................... 35,760,524
Other assets in excess of liabilities--1.92% .......................................... 698,954
------------
Net Assets--100.00% ................................................................... $ 36,459,478
============
</TABLE>
-----------
* Non-Income producing securities
ADR American Depositary Receipt
ADS American Depositary Shares
GDR Global Depositary Receipts
(1) Security, or portion thereof, was on loan at April 30, 2000.
26 See accompanying notes to financial statements.
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF
SHARES VALUE
----------- -----------
<S> <C>
COMMON STOCKS--88.07%
ARGENTINA--1.30%
BANKS--0.47%
1,909 Banco de Galicia Y Buenos Aires S.A.
de C.V. ADR* ............................................................ $ 33,049
2,427 IRSA Inversiones Y Representaciones
S.A. Class B ............................................................ 7,165
------------
40,214
------------
BEVERAGES--0.19%
1,700 Quilmes Industrial S.A. ADR* ............................................ 16,150
------------
COMPUTER SOFTWARE--0.05%
400 El Sitio Inc.* .......................................................... 4,300
------------
DIVERSIFIED INDUSTRIALS--0.11%
568 PC Holdings S.A.* ....................................................... 8,698
------------
TELECOMMUNICATIONS--0.48%
7,400 Telecom Argentina S.A. .................................................. 41,098
------------
Total Argentina Common Stocks ......................................................... 110,460
------------
BRAZIL--0.90%
BREWERIES, PUBS, & RESTAURANTS--0.37%
1,100 Companhia Brasileire de Distribuicao .................................... 31,350
------------
MEDIA--0.20%
900 Aracruz Celulose S.A. ADR ............................................... 16,819
------------
TELECOMMUNICATIONS--0.33%
300 Telecomunicacoes Brasileiras
S.A. ADR ................................................................ 4
600 Telecomunicacoes de Sao Paulo ........................................... 15,150
300 Telesp Celular Participacoes ............................................ 13,237
------------
28,391
------------
Total Brazil Common Stocks ............................................................ 76,560
------------
CHILE--2.07%
BANKS--0.27%
600 Banco de A Edwards* ..................................................... 9,863
660 Banco Santiago .......................................................... 13,035
------------
22,898
------------
BREWERIES, PUBS, & RESTAURANTS--0.45%
1,000 Compania Cervecerias Unidas
S.A. ADR ................................................................ 22,312
1,600 Embotelladora Andina S.A. ADR ........................................... 16,400
------------
38,712
------------
DIVERSIFIED INDUSTRIALS--0.26%
2,000 Quinenco S.A. ADR*+ ..................................................... 22,500
------------
ELECTRICITY--0.35%
1,600 Empresa Nacional de Electricidad
S.A. ADR* ............................................................... 18,400
600 Enersis S.A. ADR* ....................................................... 11,175
------------
29,575
------------
CHILE--(CONCLUDED)
RETAILERS, FOOD--0.18%
900 Distribucion Y Servicio D&S ............................................. $ 15,300
------------
TELECOMMUNICATIONS--0.56%
2,565 Compania de Telecomunicaciones
de Chile S.A. ADR* ...................................................... 47,452
------------
Total Chile Common Stocks ............................................................. 176,437
------------
CZECH REPUBLIC--0.56%
BANKS--0.00%
1 Komercni Banka AS GDR* .................................................. 7
------------
ELECTRICITY--0.18%
5,330 Ceske Energeticke Zavody AS* ............................................ 15,485
------------
TELECOMMUNICATIONS--0.38%
1,750 SPT Telecom A.S.* ....................................................... 32,466
------------
Total Czech Republic Common Stocks .................................................... 47,958
------------
EGYPT--0.39%
TELECOMMUNICATIONS--0.39%
910 Egypt Mobile Phone* ..................................................... 33,042
------------
GREECE--2.00%
BANKS--0.88%
810 Alpha Credit Bank ....................................................... 44,612
700 National Bank of Greece ................................................. 29,870
------------
74,482
------------
TELECOMMUNICATIONS--1.12%
4,250 Hellenic Telecommunications
Organization S.A. ....................................................... 95,675
------------
Total Greece Common Stocks ............................................................ 170,157
------------
HONG KONG--1.80%
COMMUNICATIONS--1.26%
15,000 China Telecom* ......................................................... 107,360
------------
ELECTRICAL APPLIANCES--0.26%
38,000 Founder Holdings Ltd. ................................................... 21,954
------------
SERVICES--0.28%
13,000 Pacific Century* ........................................................ 24,200
------------
Total Hong Kong Common Stocks ......................................................... 153,514
------------
HUNGARY--1.83%
BANKS--0.51%
977 OTP Bank Reg S GDR ...................................................... 43,281
------------
CHEMICALS--0.10%
240 Borsodchem RT GDR* ...................................................... 8,760
------------
OIL--0.19%
950 Moayar Olaj-Es Gazipare
Reszvnytaras AG GDR* .................................................... 16,625
------------
27
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<CAPTION>
NUMBER
OF
SHARES VALUE
----------- -----------
<S> <C>
COMMON STOCKS--(CONTINUED)
HUNGARY--(CONCLUDED)
UTILITIES--1.03%
2,520 Matav RT ADR* ........................................................... $ 87,728
------------
Total Hungary Common Stocks ........................................................... 156,394
------------
INDIA--8.68%
BANKS--0.70%
10,503 HDFC Bank ............................................................... 59,300
------------
BUILDING MATERIALS--0.18%
2,750 Associated Cement Co.* .................................................. 9,381
2,000 Associated Cement Co. Class A* .......................................... 6,369
------------
15,750
------------
DIVERSIFIED INDUSTRIALS--0.39%
4,000 Grasim Industries ....................................................... 32,990
------------
ELECTRICAL EQUIPMENT--0.11%
4,000 Bharat Heavy Electricals Ltd.* .......................................... 9,191
------------
HOUSEHOLD GOODS & TEXTILES--1.94%
2,050 Hindustan Lever ......................................................... 112,475
6,700 Reliance Industry ....................................................... 53,247
------------
165,722
------------
OIL EXPLORATION & PRODUCTION--0.34%
7,200 Bharat Petroleum Corp. Ltd. ............................................. 28,808
------------
OIL, INTEGRATED--0.06%
800 Castrol India Ltd. ...................................................... 5,535
------------
SUPPORT SERVICES--2.97%
900 Infosys Technologies Ltd. ............................................... 167,010
1,000 Pentamedia Graphics ..................................................... 14,559
1,000 Satyam Computer* ........................................................ 71,478
------------
253,047
------------
TELECOMMUNICATIONS--1.96%
17,200 Mahanagar Telephone Nigam Ltd. .......................................... 88,679
1,522 Videsh Sanchar Nigam Ltd. ............................................... 46,375
2,000 Zee Telefilms* .......................................................... 32,532
------------
167,586
------------
TOBACCO--0.03%
200 ITC Ltd.* ............................................................... 2,612
------------
Total India Common Stocks ............................................................. 740,541
------------
INDONESIA--0.31%
COMMUNICATIONS--0.31%
61,040 P.T. Telekomunikasi Indonesia ........................................... 26,657
------------
ISRAEL--5.32%
BANKS--2.11%
33,000 Bank Hapoalim Ltd. ...................................................... 100,462
37,000 Bank Leumi* ............................................................. 79,488
------------
179,950
------------
ISRAEL--(CONCLUDED)
COMPUTER HARDWARE--0.08%
600 Scitex Ltd.* ............................................................ $ 7,125
------------
COMPUTER SOFTWARE--1.32%
650 Check Point Software Tech Ltd.* ......................................... 112,450
------------
ELECTRONICS--0.24%
310 NICE-Systems Ltd. ADR* .................................................. 20,285
------------
FOOD & DRUG RETAILERS--0.18%
1,650 Blue Square Israel Ltd.ADR* ............................................. 15,366
------------
MACHINERY/ENGINE SERVICES--0.20%
200 Orbotech Ltd.* .......................................................... 17,050
------------
PHARMACEUTICALS--0.83%
1,600 Teva Pharmaceutical Industries
Ltd., ADS ............................................................... 70,400
------------
TELECOMMUNICATIONS--0.36%
310 Gilat Satellite Networks Ltd.* .......................................... 26,621
400 Partner Communication Co. Ltd* .......................................... 4,275
------------
30,896
------------
Total Israel Common Stocks 453,522
------------
KOREA--11.34%
BANKS--1.62%
5,062 Kookmin Bank ............................................................ 54,736
8,700 Shinhan Bank ............................................................ 83,492
------------
138,228
------------
ELECTRICAL APPLIANCES--6.54%
500 Haansoft* ............................................................... 8,831
200 Locus* .................................................................. 24,330
2,000 Samsung Co .............................................................. 22,708
1,474 Samsung Electronics Corp. ............................................... 398,468
1,000 Samsung Electronics Ltd. GDS ............................................ 80,750
1,509 Turbo Tek ............................................................... 22,912
------------
557,999
------------
ELECTRICITY & GAS--1.65%
4,800 Korea Electric Power Corp ............................................... 140,572
------------
HOLDING & OTHER INVESTMENT COMPANIES--0.35%
1,000 Serome Technology* ...................................................... 29,466
------------
OILS--0.88%
4,000 Yukong Ltd.* ............................................................ 75,513
------------
PHARMACEUTICALS--0.02%
99 Medidas Co.* ............................................................ 1,454
------------
TELECOMMUNICATIONS--0.28%
700 Korea Telecom Corp. ADR ................................................. 24,150
------------
Total Korea Common Stocks ............................................................. 967,382
------------
28
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<CAPTION>
NUMBER
OF
SHARES VALUE
----------- -----------
<S> <C>
COMMON STOCKS--(CONTINUED)
MALAYSIA--3.99%
COMMERCE/INDUSTRIAL--0.45%
10,000 AMMB Holdings Berhad* ................................................... $ 37,895
------------
COMMUNICATIONS--0.77%
19,000 Telekom Malaysia* ....................................................... 66,000
------------
CONSTRUCTION--0.76%
25,000 United Enigeers Malaysia Ltd.* .......................................... 64,474
------------
ELECTRICITY & GAS--1.36%
35,000 Tenaga Nasional Berhad .................................................. 116,052
------------
SERVICES--0.65%
9,000 Genting Berhad* ......................................................... 36,237
6,000 Resorts World Berhad .................................................... 19,421
------------
55,658
------------
Total Malaysia Common Stocks .......................................................... 340,079
------------
MEXICO--11.74%
ALCOHOLIC BEVERAGES--0.26%
10,500 Grupo Modelo S.A. de C.V. ............................................... 22,317
------------
BANKS--1.28%
18,700 Grupo Financiero Banamex* ............................................... 67,566
92,400 Grupo Financiero Bancomer* .............................................. 41,241
------------
108,807
------------
BREWERIES, PUBS, & RESTAURANTS--0.81%
17,500 Fomento Economico Mexicano,
S.A. de C.V. Series B* .................................................. 69,461
------------
BUILDING MATERIALS & MERCHANTS--0.93%
18,240 Cemex, S.A. de CV* ...................................................... 79,085
------------
BUILDING & CONSTRUCTION--0.59%
22,800 Consorcio Ara, S.A. de C.V.* ............................................ 28,252
9,800 Grupo Industrial Saltillo, S.A. de C.V. ................................. 21,766
------------
50,018
------------
MEDIA--1.66%
21,000 Grupo Televisa, S.A. de C.V.* ........................................... 65,165
1,200 Grupo Televisa, S.A. de C.V. GDS* ....................................... 76,125
------------
141,290
------------
PAPER, PACKAGING & PRINTING--0.60%
15,900 Kimberly Clark de Mexico
S.A. de C.V. ............................................................ 51,197
------------
RETAILERS, GENERAL--0.83%
33,400 Cifra, S.A. de C.V. Series C* ........................................... 71,166
------------
TELECOMMUNICATIONS--4.78%
44,800 Carso Global Telecom* ................................................... 120,927
1,000 Nuevo Gurpo Iusacell S.A. de C.V.* ...................................... 15,937
MEXICO--(CONCLUDED)
TELECOMMUNICATIONS--(CONCLUDED)
4,610 Telefonos de Mexico, S.A. de
C.V. ADR ................................................................ $ 271,126
------------
407,990
------------
Total Mexico Common Stocks ............................................................ 1,001,331
------------
PERU--0.67%
BANKS--0.37%
3,000 Credicorp Ltd. ADR ...................................................... 31,687
------------
BUILDING & CONSTRUCTION--0.00%
2 Cementos Norte Pacasmayo, S.A. .......................................... 1
------------
EXTRACTIVE INDUSTRIES--0.11%
560 Compania De Minas Buenaventura .......................................... 9,660
------------
TELECOMMUNICATIONS--0.19%
1,070 Telefonica Del Peru S.A. Class B ADS .................................... 16,184
------------
Total Peru Common Stocks .............................................................. 57,532
------------
PHILIPPINES--0.57%
COMMUNICATIONS--0.41%
1,931 Philippine Long Distance Telephone Co. .................................. 34,612
------------
ELECTRICITY & GAS--0.16%
7,861 Manila Electric Co. Class B ............................................. 14,090
------------
Total Philippines Common Stocks ....................................................... 48,702
------------
POLAND--1.60%
BANKS--0.20%
1,180 Bank Handlowy Warszawa* ................................................. 17,027
------------
DIVERSIFIED HOLDINGS COMPANIES--0.55%
3,720 Elektrim Spolka Akcyjna S.A.* ........................................... 46,604
------------
METALS & MINING--0.40%
2,370 Kghm Polska Miedz SA GDR* ............................................... 34,009
------------
UTILITIES--0.45%
5,110 Telekomunikacja Polska S.A.* ............................................ 38,836
------------
Total Poland Common Stocks ............................................................ 136,476
------------
RUSSIA--2.50%
ELECTRICITY--0.61%
2,540 Unified Energy System GDR* .............................................. 52,070
------------
OILS--1.73%
3,850 Gazprom ADR* ............................................................ 25,410
2,110 Lukoil Holdings ADR ..................................................... 122,380
------------
147,790
------------
TELECOMMUNICATIONS--0.16%
700 Rostelecom* ............................................................. 13,606
------------
Total Russia Common Stocks ............................................................ 213,466
------------
29
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<CAPTION>
NUMBER
OF
SHARES VALUE
----------- -----------
<S> <C>
COMMON STOCKS--(CONTINUED)
SOUTH AFRICA--6.66%
BANKS--0.90%
7,900 African Bank Investments* ............................................... $ 17,069
9,865 Amalgamated Banks of South Africa* ...................................... 34,918
6,780 Standard Bank Investment ................................................ 24,998
------------
76,985
------------
DIVERSIFIED INDUSTRIALS--0.69%
4,377 Barlow Ltd. ............................................................. 27,435
4,022 Rembrandt Group Ltd. .................................................... 31,201
------------
58,636
------------
ELECTRONIC & ELECTRICAL EQUIPMENT--0.91%
11,905 Dimension Data Holdings Ltd.* ........................................... 78,132
------------
FINANCIAL SERVICES--0.65%
46,850 First Rand Ltd. ......................................................... 55,276
------------
HOUSEHOLD GOODS & TEXTILES--0.19%
26,300 Profurn Ltd.* ........................................................... 15,903
------------
INSURANCE--0.42%
30,218 Sanlam Ltd. ............................................................. 35,876
------------
MINING--0.88%
2,100 Anglo American Platinum Corp. ........................................... 50,793
1,200 De Beers Centenary ...................................................... 24,600
------------
75,393
------------
OIL EXPLORATION & PRODUCTION--0.55%
7,975 Sasol Ltd. .............................................................. 46,811
------------
OTHER FINANCIAL--0.22%
3,400 Fedsure Holdings Ltd. ................................................... 18,854
------------
PAPER, PACKAGING & PRINTING--0.91%
16,100 Nampak Ltd. ............................................................. 37,516
5,700 Sappi ................................................................... 39,931
------------
77,447
------------
RETAILERS, GENERAL--0.34%
14,186 LA Retail Stores Ltd.* .................................................. 8,682
26,736 Metro Cash and Carry .................................................... 20,149
------------
28,831
------------
Total South Africa Common Stocks ...................................................... 568,144
------------
TAIWAN--15.11%
CHEMICALS--1.68%
33,540 Formosa Plastic* ........................................................ 69,612
34,272 Nan Ya Plastic Corp.* ................................................... 73,372
------------
142,984
------------
COMMERCE/INDUSTRIAL--0.91%
7,000 Asustek Computer* ....................................................... 77,562
------------
TAIWAN--(CONCLUDED)
ELECTRICAL APPLIANCES--8.90%
14,000 Compeq Manufactures* .................................................... $ 77,333
6,000 Cosmo Electronics* ...................................................... 35,300
15,000 Dialer & Business* ...................................................... 46,821
17,000 Macronix Intl* .......................................................... 51,397
1,000 Synnex Technologies* .................................................... 6,766
20,000 Taiwan Semiconductor
Manufacturing Company Ltd.* ............................................. 128,779
112,000 United Micro Electric* .................................................. 378,886
1,000 Via Technologies Inc.* .................................................. 16,669
3,000 Zinwell* ................................................................ 17,454
------------
759,405
------------
MACHINERY/ENGINE SERVICES--0.57%
11,200 Systex Corporation* ..................................................... 48,871
------------
MISCELLANEOUS FINANCIAL--0.81%
44,000 Yuan Ta Securities* ..................................................... 68,887
------------
MISCELLANEOUS MANUFACTURING--1.13%
4,000 Ambit Microsystems* ..................................................... 37,000
60,000 Pacific Electric Wire Co.* .............................................. 59,225
------------
96,225
------------
PRECISION MACHINEY--1.11%
16,000 Wintek Corp* ............................................................ 95,179
------------
Total Taiwan Common Stocks ............................................................ 1,289,113
------------
THAILAND--1.78%
BANKS--0.05%
4,200 Thai Farmers Bank PCL* .................................................. 4,414
------------
COMMUNICATIONS--1.30%
4,300 Advanced Information Service PLC* ....................................... 50,382
45,000 TelecomAsia Corporation PCL* ............................................ 60,292
------------
110,674
------------
CONSTRUCTION--0.43%
1,600 Siam Cement Co.* ........................................................ 36,989
------------
Total Thailand Common Stocks .......................................................... 152,077
------------
TURKEY--6.07%
BANKS--3.17%
1,833,889 Akbank .................................................................. 41,240
3,760,690 T Garanti Bankasi* ...................................................... 63,351
500,000 T Is Bankasi* ........................................................... 27,394
4,328,685 Yapi ve Kredi Bankasi A.S.* ............................................. 138,050
------------
270,035
------------
BEVERAGE/TOBACCO MANUFACTURING--0.25%
285,000 Erciyas Biracilik ve Malt* .............................................. 21,208
------------
BUILDING MATERIALS/CONSTRUCTION--0.12%
450,000 Akcansa Cimento Sa ...................................................... 9,936
------------
30
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
<CAPTION>
NUMBER
OF
SHARES VALUE
----------- -----------
<S> <C>
COMMON STOCKS--(CONCLUDED)
TURKEY--(CONCLUDED)
DIVERSIFIED INDUSTRIALS--0.65%
275,000 Arcelik* ................................................................ $ 23,387
158,900 Koc Holding AS* ......................................................... 31,835
------------
55,222
------------
ELECTRICAL EQUIPMENT--0.30%
68,000 Vestel Electronic Sanayi ve Ticaret* .................................... 25,579
------------
FINANCIAL INSTITUTIONS/SERVICES--0.56%
2,925,503 Haci Omer Sabanci ....................................................... 47,368
------------
MEDIA--0.24%
865,000 Dogan Yayin Holdings* ................................................... 20,867
------------
RETAIL--0.53%
66,990 Migros Turk T.A.S.* ..................................................... 45,468
------------
STEEL & OTHER MATERIALS--0.25%
396,000 Eregli Demir ve Celik Fabrik* ........................................... 21,696
------------
Total Turkey Common Stocks ............................................................ 517,379
------------
ZIMBABWE--0.88%
LEISURE & HOTELS--0.88%
204,600 Econet Wireless Holdings* ............................................... 74,789
------------
Total Common Stocks (cost--$7,000,496) ................................................ 7,511,712
------------
PREFERRED STOCKS--10.70%
BRAZIL--9.15%
BANKS--2.14%
11,039,994 Banco Bradesco S.A. ..................................................... 80,714
240,000 Banco Itau S.A. ......................................................... 17,945
3,400 Companhia Vale Do Rio Doce .............................................. 84,176
------------
182,835
------------
BREWERIES, PUBS, & RESTAURANTS--0.39%
46,000 Cia Cervejaria Brahma ................................................... 33,376
------------
BUILDING MATERIALS & MERCHANTS--0.19%
130,000 Companhia Cimento Portland
Itau (CIA) ............................................................. 15,985
------------
PREFERRED STOCKS--(CONCLUDED)
BRAZIL--(CONCLUDED)
ELECTRICITY--0.79%
3,000 Companhia Paranaense de ADR ............................................. $ 22,125
790,000 Eletropaulo Metropolitana--
Electricidade de Sao Paulo S.A. ......................................... 45,505
------------
67,630
------------
OIL EXPLORATION & PRODUCTION--1.29%
389,000 Petroleo Brasileiros S.A. (Petrobras) ................................... 92,666
1,900 Ultrapar Participacoes S. A. ............................................ 17,100
------------
109,766
------------
TELECOMMUNICATIONS--4.35%
5,100 Embratel Participacoes S.A. ADR ......................................... 114,750
6,000,000 Tele Centro Sul Part .................................................... 78,427
4,468 Tele Norte Leste Participacoes .......................................... 79,593
3,546,549 Telesp Celular Par S.A. ................................................. 63,643
1,396,927 Telesp Tel Sao Paulo .................................................... 34,809
------------
371,222
------------
Total Brazil Preferred Stock .......................................................... 780,814
------------
KOREA--0.52%
ELECTRICAL APPLIANCES--0.52%
330 Samsung Electronic ...................................................... 44,307
------------
RUSSIA--1.03%
OILS--1.03%
5,940 Surgutneftegaz ADR ...................................................... 87,615
------------
Total Preferred Stocks (cost--$743,983) ............................................... 912,736
------------
WARRANTS--0.00%
MEXICO--0.00%
BUILDING & CONSTRUCTION--0.00%
1,000 Cemex Appreciation ...................................................... 292
------------
Total Investments (cost--$7,744,825)--98.77% .......................................... 8,424,740
Other assets in excess of liabilities--1.23% .......................................... 104,977
------------
Net Assets--100.00% ................................................................... $ 8,529,717
============
</TABLE>
--------------
* Non-Income producing security.
+ 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.
ADR American Depositary Receipt
ADS American Depositary Shares
GDR Global Depositary Receipts
GDS Global Depositary Shares
FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
IN EXPIRATION UNREALIZED
CONTRACTS TO RECEIVE EXCHANGE FOR DATE DEPRECIATION
-------------------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Brazilian Real ..................... 25,524 USD 14,075 05/02/00 $(62)
=====
--------------
USD United States Dollars
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
PAINEWEBBER
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
GLOBAL ASIA EMERGING
EQUITY PACIFIC MARKETS
FUND GROWTH FUND EQUITY FUND
------------ ------------ -----------
<S> <C> <C> <C>
ASSETS
Investments, at value (cost--$285,441,942, $27,655,169 and $7,744,825, respectively) ....... $370,218,865 $35,760,524 $8,424,740
Investments of cash collateral received for securities loaned, at value (cost--$28,530,511,
$986,140 and $0, respectively) .......................................................... 28,530,511 986,140 --
Cash ....................................................................................... 1,131 -- 714
Cash denominated in foreign currencies, at value (cost--$213,560, $716,026 and $197,349,
respectively) ........................................................................... 212,950 714,610 196,995
Receivable for investments sold ............................................................ 8,225,719 673,325 77,018
Receivable for shares of beneficial interest sold .......................................... 70,545 28,608 17,500
Dividends and interest receivable .......................................................... 1,363,917 56,936 25,952
Deferred organizational expenses ........................................................... -- 57,342 --
Other assets ............................................................................... 228,330 5,782 70,135
------------ ---------- ----------
Total assets ............................................................................... 408,851,968 38,283,267 8,813,054
------------ ---------- ----------
LIABILITIES
Collateral for securities loaned ........................................................... 28,530,511 986,140 --
Due to custodian ........................................................................... -- 90,455 --
Payable for investments purchased .......................................................... 5,161,179 151,840 198,543
Payable for shares of beneficial interest repurchased ...................................... 1,380,448 319,060 --
Payable to affiliates ...................................................................... 358,828 61,870 3,807
Futures variation margin payable ........................................................... 258,939 -- --
Unrealized depreciation of foreign currency contracts ...................................... -- -- 62
Accrued expenses and other liabilities ..................................................... 1,225,272 214,424 80,925
------------ ---------- ----------
Total liabilities .......................................................................... 36,915,177 1,823,789 283,337
------------ ---------- ----------
NET ASSETS
Beneficial interest shares of $0.001 par value outstanding (unlimited number authorized) ... 244,883,783 54,548,173 25,916,487
Accumulated net investment loss ............................................................ (48,828) (383,806) (62,857)
Accumulated net realized gains (losses) from investments and foreign currency .............. 42,351,181 (25,735,337)(17,997,444)
Net unrealized appreciation of investments and other assets and liabilities denominated
in foreign currencies ................................................................... 84,750,655 8,030,448 673,531
------------ ---------- ----------
Net assets ................................................................................. $371,936,791 $36,459,478 $ 8,529,717
============ =========== ============
CLASS A:
Net assets ................................................................................. $273,396,883 $13,351,317 $ 4,545,477
------------ ---------- ----------
Shares outstanding ......................................................................... 15,881,553 1,189,829 464,937
------------ ---------- ----------
Net asset and redemption value per share ................................................... $ 17.21 $ 11.22 $ 9.78
============ =========== ============
Maximum offering price per share (net asset value plus sales charge of 4.50% of offering
price) ................................................................................. $ 18.02 $ 11.75 $ 10.24
============ =========== ============
CLASS B:
Net assets ................................................................................. $ 13,455,245 $15,068,977 $ 1,041,047
------------ ---------- ----------
Shares outstanding 845,785 1,374,625 110,206
------------ ---------- ----------
Net asset value and offering price per share ............................................... $ 15.91 $ 10.96 $ 9.45
============ =========== ============
CLASS C:
Net assets ................................................................................. $ 30,546,860 $ 7,794,208 $ 2,151,683
------------ ---------- ----------
Shares outstanding ......................................................................... 1,913,537 710,326 230,166
------------ ---------- ----------
Net asset value and offering price per share ............................................... $ 15.96 $ 10.97 $ 9.35
============ =========== ============
CLASS Y:
Net assets ................................................................................. $ 54,537,803 $ 244,976 $ 791,510
------------ ---------- ----------
Shares outstanding ......................................................................... 3,079,875 21,868 79,944
------------ ---------- ----------
Net asset value, offering price and redemption value per share ............................. $ 17.71 $ 11.20 $ 9.90
============ =========== ============
</TABLE>
See accompanying notes to financial statements
32
<PAGE>
PAINEWEBBER
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
---------------------------------------------------
GLOBAL EQUITY ASIA PACIFIC EMERGING MARKETS
FUND GROWTH FUND EQUITY FUND
------------- ------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $250,263, $24,091
and $8,138, respectively) ................................... $ 2,273,817 $ 283,559 $ 66,838
Interest ....................................................... 900,177 15,473 323
------------ --------- -----------
3,173,994 299,032 67,161
------------ --------- -----------
Expenses:
Investment advisory and administration ......................... 1,596,969 253,479 59,672
Service fees--Class A .......................................... 335,148 18,782 6,532
Service and distribution fees--Class B ......................... 99,866 83,951 4,274
Service and distribution fees--Class C ......................... 162,398 51,085 13,337
Custody and accounting ......................................... 481,266 59,862 18,452
Transfer agency and related services fees ...................... 181,710 31,356 11,566
Reports and notices to shareholders ............................ 84,046 13,812 13,349
Legal and audit ................................................ 69,274 32,990 31,768
State registration fees ........................................ 34,264 33,036 18,061
Trustees' fees ................................................. 7,875 7,875 7,875
Amortization of organizational expenses ........................ -- 15,113 --
Other expenses ................................................. 14,123 1,240 6,370
------------ --------- -----------
3,066,939 602,581 191,256
Less: Fee waivers and reimbursements from adviser .............. (6,439) (151) (61,238)
------------ --------- -----------
Net expenses ................................................... 3,060,500 602,430 130,018
------------ --------- -----------
Net investment income (loss) ................................... 113,494 (303,398) (62,857)
------------ --------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENT
TRANSACTIONS:
Net realized gains (losses) from:
Investments ................................................ 41,185,754 2,182,027 1,039,203
Foreign currency transactions .............................. (419,841) (49,263) (236,427)
Futures transactions ....................................... 4,350,081 -- --
Net change in unrealized appreciation/depreciation of:
Investments ................................................ 1,192,043 4,506,736 251,393
Futures .................................................... (1,012,795) -- --
Other assets and liabilities denominated in foreign
currencies .............................................. (878,557) 36,277 14,589
------------ --------- -----------
NET REALIZED AND UNREALIZED GAINS FROM INVESTMENT TRANSACTIONS . 44,416,685 6,675,777 1,068,758
------------ --------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........... $44,530,179 $6,372,379 $1,005,901
=========== ========== ==========
</TABLE>
See accompanying notes to financial statements
33
<PAGE>
PAINEWEBBER GLOBAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR
APRIL 30, 2000 ENDED
(UNAUDITED) OCTOBER 31, 1999
------------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income ................................................... $ 113,494 $ 1,214,949
Net realized gains (losses) from:
Investments ......................................................... 41,185,754 46,487,900
Foreign currency transactions ....................................... (419,841) (1,365,472)
Futures transactions ................................................ 4,350,081 5,084,466
Net change in unrealized appreciation/depreciation of:
Investments ......................................................... 1,192,043 7,994,891
Futures ............................................................. (1,012,795) (974,505)
Other assets and liabilities denominated in foreign currencies ...... (878,557) (134,422)
------------------- ----------------
Net increase in net assets resulting from operations .................... 44,530,179 58,307,807
------------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income Class A ........................................... -- (270,090)
Net investment income Class Y ........................................... -- (131,022)
Net realized gains from investment transactions--Class A ................ (34,539,223) (11,886,871)
Net realized gains from investment transactions--Class B ................ (3,680,562) (2,646,732)
Net realized gains from investment transactions--Class C ................ (4,988,411) (2,064,240)
Net realized gains from investment transactions--Class Y ................ (7,503,843) (2,546,029)
------------------- ----------------
(50,712,039) (19,544,984)
------------------- ----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares .................................... 109,106,015 536,072,491
Shares issued in connection with the reorganization involving
Global Small Cap Fund Inc. ............................................. 85,973,872 --
Cost of shares repurchased .............................................. (214,062,169) (640,967,908)
Proceeds from dividends reinvested ...................................... 48,073,171 18,643,467
------------------- ----------------
Net increase (decrease) in net assets from beneficial interest
transactions ........................................................... 29,090,889 (86,251,950)
------------------- ----------------
Net increase (decrease) in net assets ................................... 22,909,029 (47,489,127)
NET ASSETS:
Beginning of period ..................................................... 349,027,762 396,516,889
------------------- ----------------
End of period ........................................................... $ 371,936,791 $ 349,027,762
=================== ================
</TABLE>
See accompanying notes to financial statements
34
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR
APRIL 30, 2000 ENDED
(UNAUDITED) OCTOBER 31, 1999
------------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss ..................................................... $ (303,398) $ (355,336)
Net realized gains (losses) from:
Investments ......................................................... 2,182,027 656,105
Foreign currency transactions ....................................... (49,263) (63,531)
Net change in unrealized appreciation/depreciation of:
Investments ......................................................... 4,506,736 11,632,148
Other assets and liabilities denominated in foreign currencies ...... 36,277 (62,473)
------------------- ----------------
Net increase in net assets resulting from operations .................... 6,372,379 11,806,913
------------------- ----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares .................................... 22,664,366 21,653,386
Cost of shares repurchased .............................................. (31,640,417) (24,936,295)
------------------- ----------------
Net decrease in net assets from beneficial interest transactions ........ (8,976,051) (3,282,909)
------------------- ----------------
Net increase (decrease) in net assets ................................... (2,603,672) 8,524,004
NET ASSETS:
Beginning of period ..................................................... 39,063,150 30,539,146
------------------- ----------------
End of period ........................................................... $ 36,459,478 $ 39,063,150
=================== ================
</TABLE>
See accompanying notes to financial statements
35
<PAGE>
PAINEWEBBER EMERGING MARKETS EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED FOR THE YEAR
APRIL 30, 2000 ENDED
(UNAUDITED) OCTOBER 31, 1999
------------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss.................................................... $ (62,857) $ (45,188)
Net realized gains (losses) from:
Investments........................................................ 1,039,203 (394,899)
Foreign currency transactions...................................... (236,427) (4,458)
Net change in unrealized appreciation/depreciation of:
Investments........................................................ 251,393 2,873,966
Other assets and liabilities denominated in foreign currencies..... 14,589 (5,666)
------------------- ----------------
Net increase in net assets resulting from operations................... 1,005,901 2,423,755
------------------- ----------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares................................... 6,786,935 3,860,845
Cost of shares repurchased............................................. (7,742,824) (5,955,453)
------------------- ----------------
Net decrease in net assets from beneficial interest transactions....... (955,889) (2,094,608)
------------------- ----------------
Net increase in net assets............................................. 50,012 329,147
NET ASSETS:
Beginning of period.................................................... 8,479,705 8,150,558
------------------- ----------------
End of period.......................................................... $ 8,529,717 $ 8,479,705
=================== ================
</TABLE>
See accompanying notes to financial statements
36
<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 ("Investment Trust"), the PaineWebber
Asia Pacific Growth Fund ("Asia Pacific Growth Fund"), a diversified series of
PaineWebber Managed Investments Trust ("Managed Trust") and the PaineWebber
Emerging Markets Equity Fund ("Emerging Markets Equity Fund"), a diversified
series of PaineWebber Investment Trust II ("Investment Trust II") (each a
"Fund"), are registered with the Securities and Exchange Commission under the
Investment Company Act of 1940, as amended, as open-end management investment
companies. Global Equity Fund seeks long-term growth of capital by investing
primarily in U.S. and foreign equity securities. Asia Pacific Growth Fund seeks
long-term capital appreciation by investing primarily in equity securities of
companies in the Asia Pacific region, excluding Japan. Emerging Markets Equity
Fund seeks long-term capital appreciation by investing primarily in equity
securities of companies in emerging market countries. (Investment Trust,
Investment Trust II and Managed Trust are each sometimes referred to herein as a
"Trust.") Organizational costs have been deferred and are being (or, in the case
of Global Equity Fund and Emerging Markets Equity Fund, have been) amortized
using the straight-line method over a period not to exceed 60 months from the
date the Fund commenced operations.
Currently, 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--Each Fund calculates its net asset value based on
the current market value, where available, for its portfolio securities. The
Funds normally obtain market values for their securities from independent
pricing sources. Independent pricing sources may use reported last sale prices,
current market quotations or valuations from computerized "matrix" systems that
derive values based on comparable securities. Securities traded in the
over-the-counter ("OTC") market and listed on The Nasdaq Stock Market, Inc.
("Nasdaq") normally are valued at the last sale price on Nasdaq prior to
valuation. Other OTC securities are valued at the last bid price available prior
to valuation. Securities which are listed on U.S. and foreign stock exchanges
normally are valued at the last sale price on the day the securities are 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 valued
on the exchange designated as the primary market by Mitchell Hutchins Asset
Management Inc. ("Mitchell Hutchins"), a wholly owned asset management
subsidiary of PaineWebber Incorporated ("PaineWebber") and investment adviser
and administrator of the Funds, or by the Fund's sub-advisor. If a market value
is not available from an independent pricing source for a particular security,
that security is valued at fair value as determined in good faith by or under
the direction of the Trust's board of trustees (the "Board"). The amortized cost
method of valuation, which approximates market value, generally is used to value
short-term debt instruments with sixty days or less remaining to maturity,
unless the Board determines that this does
37
<PAGE>
not represent fair value. All investments quoted in foreign currencies will be
valued daily in U.S. dollars on the basis of the foreign currency exchange rates
prevailing at the time such valuation is determined by the Fund's custodian.
Foreign currency exchange rates are generally determined prior to the close
of regular 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 the NYSE, which will not
be reflected in the computation of the Fund's net asset value. If events
materially affecting the value of such securities or currency exchange rates
occur during such time periods, the securities will be valued at their fair
value as determined in good faith by or under the direction of the 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 reflected 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 obligations 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 the change in unrealized
appreciation/depreciation of other assets and liabilities denominated in foreign
currencies.
38
<PAGE>
FUTURES CONTRACTS--Using financial futures contracts involves various market
risks. The maximum amount at risk from the purchase of a futures contract is the
contract value. The Funds use financial futures contracts for hedging purposes,
and in the case of Global Equity Fund, to adjust Global Equity's exposure to
U.S. and foreign equity markets in connection with a reallocation of that Fund's
assets. However, imperfect correlations between futures contracts and the
related securities or markets, or market disruptions, do not normally permit
full control of these risks at all times.
Upon entering into a financial futures contract, a Fund is required to pledge
to a broker an amount equal to a certain percentage of the contract amount. This
amount is known as the "initial margin." Subsequent payments, known as
"variation margin," are made or received by the Fund each day, depending on the
daily fluctuations in the value of the underlying financial futures contracts.
Such variation margin is recorded for financial statement purposes on a daily
basis as an unrealized gain or loss until the financial futures contract is
closed, at which time the net gain or loss is reclassified to realized.
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 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 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. 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.
Mitchell Hutchins has entered into a contract with Invista Capital Management
LLC ("Invista") ("Invista Contract"), pursuant to which Invista serves as
investment sub-adviser for the foreign investments of Global Equity Fund.
Mitchell Hutchins allocates the Fund's investments between domestic and foreign
investments and is responsible
39
<PAGE>
for the day-to-day management of the Fund's domestic investments. Under the
Invista Contract, Mitchell Hutchins (not the Fund) is obligated to pay Invista
at the annual rate of 0.40% of the Fund's average daily net assets allocated to
Invista's management up to and including $100 million, 0.29% of the Fund's
average daily net assets allocated to Invista's management in excess of $100
million up to and including $300 million, and 0.26% of such assets in excess of
$300 million.
Under a contract with Mitchell Hutchins ("Sub-Advisory Contract"), Schroder
Investment Management North America Inc. ("Schroder") serves as the sub-adviser
to the Emerging Markets Equity 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 0.70% of the Fund's average daily net assets.
Under a 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.
At April 30, 2000 the Global Equity Fund, the Asia Pacific Growth Fund, and
the Emerging Markets Equity Fund owed Mitchell Hutchins $262,171, $38,457 and
$0, respectively, in investment advisory and administrative fees. Mitchell
Hutchins waived $56,826 of its management fee and reimbursed other expenses of
$1,242 for the Emerging Markets Equity Fund for the year ended April 30, 2000.
Mitchell Hutchins also waived a portion of its investment advisory and
administration fees in connection with each Fund's investment of cash collateral
from securities lending in the Mitchell Hutchins Private Money Market Fund LLC.
For the six months ended April 30, 2000, Mitchell Hutchins waived $6,439, $151,
and $0 for the Global Equity Fund, the Asia Pacific Growth Fund, and the
Emerging Markets Equity Fund, respectively.
For the six months ended April 30, 2000, the Global Equity Fund, the Asia
Pacific Growth Fund, and the Emerging Markets Equity Fund paid $8,935, $92,077
and $35,108 respectively, in brokerage commissions to PaineWebber for
transactions executed on behalf of the Funds.
SERVICING AGREEMENT
The board of Global Equity Fund approved a Servicing Agreement ("Servicing
Agreement") with Mitchell Hutchins and the Mitchell Hutchins Portfolios
(comprising, respectively, the Aggressive Portfolio, Moderate Portfolio and the
Conservative Portfolio) (each a "Portfolio") pursuant to an exemptive order from
the Securities and Exchange Commission that permitted the Fund to reimburse each
Portfolio for certain expenses to the extent a Fund realized savings from each
Portfolio. The savings to a Fund resulted from the elimination of separate
shareholder accounts for each Portfolio's investors, who otherwise might invest
directly in the Fund. For the year ended April 30, 2000, the Global Equity Fund
incurred $5,322, under the Servicing Agreement, which is included in other
expenses on the Statement of Operations. On March 28, 2000, the Portfolios were
liquidated, there were no reimbursements from that date on.
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
of 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
40
<PAGE>
average daily net assets of Class B and Class C shares. At April 30, 2000 the
Global Equity Fund, the Asia Pacific Growth Fund and the Emerging Markets Equity
Fund owed Mitchell Hutchins $93,466, $23,110 and $3,807, respectively, in
service and distribution fees. Mitchell Hutchins voluntarily waived $3,165 of
its service and distribution fees for the Emerging Markets Equity Fund for the
period ended April 30, 2000.
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 Asia Pacific Growth Fund and the Emerging Markets Equity Fund
that for the period ended April 30, 2000 it had earned $43,615, $89,707 and
$2,183, respectively, in sales charges.
REORGANIZATION INVOLVING GLOBAL SMALL CAP FUND INC.
Effective as of the close of business on January 28, 2000 (the
"Reorganization Date"), the Global Equity Fund acquired all of the assets and
assumed all of the liabilities of Global Small Cap Fund Inc. ("Global Small Cap
Fund"). The acquisition was accomplished by a tax-free exchange of 5,257,445
Class A shares of the Fund for 3,801,667 shares of Global Small Cap Fund
outstanding on the Reorganization Date. Global Small Cap Fund's net assets at
that date, valued at $85,973,872 including net unrealized appreciation of
investments of 35,296,466 were combined with those of the Fund. All shares were
exchanged at net asset value. Accordingly, no shareholder had any gain or loss
as a result of the exchange. The Fund's statement of operations and financial
highlights do not include the operations of Global Small Cap Fund prior to the
Reorganization Date.
SECURITY LENDING
Each Fund may lend securities 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, 2000 as follows:
<TABLE>
<S> <C>
Global Equity Fund ............................... $22,313
Asia Pacific Growth Fund ......................... $ 1,295
Emerging Markets Equity Fund ..................... $ 36
</TABLE>
At April 30, 2000, the Global Equity Fund, Asia Pacific Growth Fund and
Emerging Markets Equity Fund owed PaineWebber $3,191, $303 and $0, respectively,
in securities lending fees.
For the period ended April 30, 2000, each Fund earned compensation for
lending its securities as follows:
<TABLE>
<S> <C>
Global Equity Fund ............................... $64,404
Asia Pacific Growth Fund ......................... $ 3,817
Emerging Markets Equity Fund ..................... $ 167
</TABLE>
41
<PAGE>
As of April 30, 2000, Global Equity Fund and Asia Pacific Growth Fund held
cash and/or cash equivalents as collateral for securities loaned as follows:
<TABLE>
<CAPTION>
MARKET
COLLATERAL FOR VALUE OF
SECURITIES SECURITIES
LOANED LOANED
-------------- -----------
<S> <C> <C>
Global Equity Fund ......................... $28,530,511 $27,835,610
Asia Pacific Growth Fund ................... $ 986,140 $ 936,440
</TABLE>
As of April 30, 2000 Global Equity Fund and Asia Pacific Growth Fund invested
the collateral in the following money market funds:
<TABLE>
<CAPTION>
NUMBER OF
SHARES
(000)
--------
<S> <C> <C>
GLOBAL EQUITY FUND
9,029 Liquid Assets Portfolio........................................................ $ 9,028,983
19,472 Mitchell Hutchins Private Money Market Fund LLC................................ 19,472,256
29 Prime Portfolio................................................................ 29,272
-------------
Total investments of cash collateral received for securities on loan (cost--$28,530,511) $ 28,530,511
=============
ASIA PACIFIC GROWTH FUND
314 Liquid Assets Portfolio........................................................ $ 313,663
667 Mitchell Hutchins Private Money Market Fund LLC................................ 666,556
6 Prime Portfolio................................................................ 5,921
-------------
Total investments of cash collateral received for securities on loan (cost--$986,140) .... $ 986,140
=============
</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 effect at the time of borrowings. For the
six months ended April 30, 2000, the Funds did not borrow under the Facility.
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, 2000, PaineWebber received from PFPC, Inc., not the Funds,
approximately 50%, 50% and 43% of the total transfer agency and related services
fees collected by PFPC from the Global Equity Fund, Asia Pacific Growth Fund and
Emerging Markets Equity Fund, respectively.
42
<PAGE>
INVESTMENTS IN SECURITIES
For federal income tax purposes, the cost of securities owned at April 30,
2000 was substantially the same as the cost of securities for financial
statement purposes.
At April 30, 2000, the components of net unrealized appreciation were as
follows:
<TABLE>
<CAPTION>
GLOBAL ASIA PACIFIC EMERGING
EQUITY GROWTH MARKETS
FUND FUND EQUITY FUND
------------ ------------ -----------
<S> <C> <C> <C>
Gross appreciation (investments having an excess of value over cost) ... $ 99,665,216 $10,233,463 $ 1,518,242
Gross depreciation (investments having an excess of cost over value) ... (14,888,293) (2,128,108) (838,327)
------------ ------------ -----------
Net appreciation of investments ........................................ $ 84,776,923 $ 8,105,355 $ 679,915
============ ============ ===========
</TABLE>
For the six months ended April 30, 2000, total aggregate purchases and sales
of portfolio securities, excluding short term securities, were as follows:
<TABLE>
<CAPTION>
GLOBAL ASIA PACIFIC EMERGING
EQUITY GROWTH MARKETS
FUND FUND EQUITY FUND
------------ ------------ -----------
<S> <C> <C> <C>
Purchases .............................................................. $160,544,144 $11,590,924 $ 5,721,383
Sales .................................................................. $209,569,069 $18,949,633 $ 6,575,199
</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 April 30, 2000 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>
GLOBAL ASIA PACIFIC EMERGING
EQUITY GROWTH MARKETS
FISCAL YEAR ENDING FUND FUND EQUITY FUND
------------------ ------ ------------ -----------
<S> <C> <C> <C>
2002 ...................................................... -- -- $ 7,735,682
2003 ...................................................... -- -- 7,723,267
2005 ...................................................... -- $ 4,547,673 --
2006 ...................................................... -- 22,379,279 2,795,275
2007 ...................................................... -- -- 308,373
------ ------------ -----------
-- $ 26,926,952 $18,562,597
====== ============ ===========
</TABLE>
43
<PAGE>
SHARES OF BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value shares of beneficial
interest authorized. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
CLASS A CLASS B
--------------------------- ---------------------------
GLOBAL EQUITY FUND SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED
APRIL 30, 2000
Shares sold ....................... 5,041,952 $ 88,520,733 63,180 $ 1,044,177
Shares issued in
connection with the
reorganization
involving Global
Small Cap Fund Inc. ............. 5,257,445 85,973,872 -- --
Shares repurchased ................ (10,282,161) (179,246,834) (256,611) (4,220,202)
Shares converted from Class B to
Class A ........................... 761,648 13,477,096 (819,508) (13,477,096)
Dividend reinvested ............... 1,955,267 32,340,120 226,268 3,470,929
------------ ------------ ------------ ------------
Net increase (decrease) ........... 2,734,151$ 41,064,987 (786,673) $(13,182,192)
============ ============ ============ ============
FOR THE YEAR ENDED
OCTOBER 31, 1999
Shares sold ....................... 28,421,476 $494,825,105 122,855 $ 2,029,493
Shares repurchased ................ (32,560,467) (568,014,661) (869,246) (14,272,845)
Shares converted from Class B to
Class A ......................... 1,124,691 19,785,833 (1,193,678) (19,785,833)
Dividend reinvested ............... 697,012 11,514,629 157,538 2,459,166
------------ ------------ ------------ ------------
Net decrease ...................... (2,317,288) $(41,889,094) (1,782,531) $(29,570,019)
============ ============ ============ ============
<CAPTION>
CLASS A CLASS B
--------------------------- ---------------------------
ASIA PACIFIC GROWTH FUND SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED
APRIL 30, 2000
Shares sold ....................... 933,458 $ 10,811,381 160,715 $ 1,849,570
Shares repurchased ................ (1,230,094) (14,267,493) (297,706) (3,436,390)
Shares converted from Class B to
Class A ......................... 20,414 240,365 (20,828) (240,365)
------------ ------------ ------------ ------------
Net increase (decrease) ........... (276,222) $ (3,215,747) (157,819) $ (1,827,185)
============ ============ ============ ============
FOR THE YEAR ENDED
OCTOBER 31, 1999
Shares sold ....................... 1,036,280 $ 8,955,201 239,544 $ 2,161,071
Shares repurchased ................ (1,272,336) (10,989,257) (585,637) (4,734,916)
Shares converted from Class B to
Class A ......................... 12,506 111,461 (12,706) (111,461)
------------ ------------ ------------ ------------
Net increase (decrease) ........... (223,550) $ (1,922,595) (358,799) $ (2,685,306)
============ ============ ============ ============
<CAPTION>
CLASS C CLASS Y
--------------------------- ---------------------------
GLOBAL EQUITY FUND SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED
APRIL 30, 2000
Shares sold ....................... 943,193 $ 15,353,852 230,630 $ 4,187,253
Shares issued in
connection with the
reorganization
involving Global
Small Cap Fund Inc. ............. -- -- -- --
Shares repurchased ................ (1,295,213) (21,352,196) (503,899) (9,242,937)
Shares converted from Class B to
Class A ........................... -- -- -- --
Dividend reinvested ............... 310,907 4,781,751 440,281 7,480,370
------------ ------------ ------------ ------------
Net increase (decrease) ........... (41,113) $ (1,216,593) 167,011 $ 2,424,687
============ ============ ============ ============
FOR THE YEAR ENDED
OCTOBER 31, 1999
Shares sold ....................... 1,081,106 $ 17,855,027 1,215,474 $ 21,362,866
Shares repurchased ................ (1,914,606) (31,600,728) (1,536,448) (27,079,674)
Shares converted from Class B to
Class A ......................... -- -- -- --
Dividend reinvested ............... 127,935 1,999,640 158,271 2,670,032
------------ ------------ ------------ ------------
Net decrease ...................... (705,565) $(11,746,061) (162,703) $ (3,046,776)
============ ============ ============ ============
<CAPTION>
CLASS C CLASS Y
--------------------------- ---------------------------
ASIA PACIFIC GROWTH FUND SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED
APRIL 30, 2000
Shares sold ....................... 869,814 $ 9,949,847 4,653 $ 53,568
Shares repurchased ................ (1,214,635) (13,905,262) (2,678) (31,272)
Shares converted from Class B to
Class A ......................... -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) ........... (344,821) $ (3,955,415) 1,975 $ 22,296
============ ============ ============ ============
FOR THE YEAR ENDED
OCTOBER 31, 1999
Shares sold ....................... 1,136,400 $ 10,349,051 21,021 $ 188,063
Shares repurchased ................ (1,003,723) (9,137,522) (8,039) (74,600)
Shares converted from Class B to
Class A ......................... -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) ........... 132,677 $ 1,211,529 12,982 $ 113,463
============ ============ ============ ============
</TABLE>
44
<PAGE>
SHARES OF BENEFICIAL INTEREST(CONCLUDED)
There is an unlimited amount of $0.001 par value shares of beneficial
interest authorized. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
CLASS A CLASS B
--------------------------- ---------------------------
EMERGING MARKETS EQUITY FUND SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED
APRIL 30, 2000
Shares sold ....................... 23,050 $ 245,339 67,062 $ 706,548
Shares repurchased ................ (140,168) (1,417,681) (7,830) (84,170)
Shares converted from Class B
to Class A ...................... 2,815 30,833 (2,910) (30,833)
------------ ------------ ------------ ------------
Net increase (decrease) ........... (114,303) $ (1,141,509) 56,322 $ 591,545
============ ============ ============ ============
FOR THE YEAR ENDED
OCTOBER 31, 1999
Shares sold ....................... 148,096 $ 1,164,102 25,296 $ 195,455
Shares repurchased ................ (226,551) (1,668,885) (35,460) (270,936)
Shares converted from Class B
to Class A ........................ 8,142 61,851 (8,361) (61,851)
------------ ------------ ------------ ------------
Net decrease ...................... (70,313) $ (442,932) (18,525) $ (137,332)
============ ============ ============ ============
<CAPTION>
CLASS C CLASS Y
--------------------------- ---------------------------
EMERGING MARKETS EQUITY FUND SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED
APRIL 30, 2000
Shares sold ....................... 548,033 $ 5,751,424 8,959 $ 83,624
Shares repurchased ................ (569,941) (6,028,694) (19,486) (212,279)
Shares converted from Class B
to Class A ...................... -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) ........... (21,908) $ (277,270) (10,527) $ (128,655)
============ ============ ============ ============
FOR THE YEAR ENDED
OCTOBER 31, 1999
Shares sold ....................... 283,950 $ 2,392,088 13,275 $ 109,200
Shares repurchased ................ (439,625) (3,562,262) (56,046) (453,370)
Shares converted from Class B
to Class A ........................ -- -- -- --
------------ ------------ ------------ ------------
Net decrease ...................... (155,675) $ (1,170,174) (42,771) $ (344,170)
============ ============ ============ ============
</TABLE>
45
<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
SIX MONTHS FOR THE
ENDED FOR THE YEARS TWO MONTHS
APRIL 30, ENDED OCTOBER 31, ENDED
2000 --------------------------- OCTOBER 31,
(UNAUDITED) 1999 1998# 1997 1996
----------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................................... $ 17.90 $ 16.27 $ 18.37 $ 17.43 $ 16.81
--------- -------- --------- --------- --------
Net investment income (loss) ............................................ 0.01@ 0.08@ 0.03@ -- (0.02)
Net realized and unrealized gains (losses) from investments and foreign
currency ................................................................ 2.00@ 2.38@ 0.35@ 1.52 0.64
--------- -------- --------- --------- --------
Net increase (decrease) from investment operations ...................... 2.01 2.46 0.38 1.52 0.62
--------- -------- --------- --------- --------
Dividends from net investment income .................................... -- (0.02) -- -- --
Distributions from net realized gains from investment transactions ...... (2.70) (0.81) (2.48) (0.58) --
--------- -------- --------- --------- --------
Total dividends and distributions to shareholders ....................... (2.70) (0.83) (2.48) (0.58) --
--------- -------- --------- --------- --------
Net asset value, end of period .......................................... $ 17.21 $ 17.90 $ 16.27 $ 18.37 $ 17.43
========= ======== ========= ========= ========
Total investment return (1) ............................................. 11.87% 15.56% 2.53% 8.87% 3.69%
========= ======== ========= ========= ========
Ratios/Supplemental Data:
Net assets, end of period (000's) ....................................... $273,397 $235,341 $251,680 $294,878 $307,267
Expenses to average net assets, net of waivers from adviser (3) ......... 1.56%* 1.56% 1.55% 1.44% 1.53%*
Net investment income (loss) to average net assets, net of waivers
from adviser (3) ........................................................ 0.14%* 0.45% 0.17% 0.01% (0.80)%*
Portfolio turnover rate ................................................. 46% 72% 151% 86% 3%
-----------------------
</TABLE>
* Annualized
** Investment Advisory functions for the Fund were transferred from Kidder
Peabody Asset Management Inc. to Mitchell Hutchins on February 13, 1995.
# Effective October 1, 1998, Invista Capital Management, Inc. began
overseeing the day-to-day management of the foreign portion of the Fund's
assets and Mitchell Hutchins allocates the portfolio between domestic and
foreign investments and manages the domestic portion of the Fund's assets.
@ Calculated using the average monthly shares outstanding for the period.
++ 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
distributions 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 or program fees; results would be lower if sales
charges or program fees were included. Total investment return for periods
of less than one year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.06% and 0.00%
for Class A and Class B shares, respectively.
(3) During the six months ended April 30, 2000 and the year ended October 31,
1999 Mitchell Hutchins waived a portion of its advisory and administration
fees. The ratios excluding the waiver would be the same since the fee
waiver represents less than 0.005%.
46
<PAGE>
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------- ----------------------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE FOR THE PERIOD
ENDED TWO MONTHS YEAR AUGUST 25,
FOR THE YEARS APRIL 30, FOR THE YEARS ENDED ENDED 1995++
ENDED AUGUST 31, 2000 ENDED OCTOBER 31, OCTOBER 31, AUGUST 31, TO AUGUST 31,
------------------------- (UNAUDITED) ------------------------------ 1996 1996 1995**
1996 1995** ------------ 1999 1998# 1997 ----------- ----------- -------------
----------- ------------ ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 16.12 $ 16.98 $ 16.81 $ 15.43 $ 17.69 $ 16.93 $ 16.35 $ 15.82 $ 15.83
----------- ----------- ------------ ----------- ---------- ---------- ----------- ----------- --------------
0.02 0.02 (0.07)@ (0.06)@ (0.12)@ (0.21) (0.05) (0.12) 0.00
1.24 0.37 1.87@ 2.25@ 0.34@ 1.55 0.63 1.22 (0.01)
----------- ----------- ------------ ----------- ---------- ---------- ----------- ----------- --------------
1.26 0.39 1.80 2.19 0.22 1.34 0.58 1.10 (0.01)
----------- ----------- ------------ ----------- ---------- ---------- ----------- ----------- --------------
-- -- -- -- -- -- -- -- --
(0.57) (1.25) (2.70) (0.81) (2.48) (0.58) -- (0.57) --
----------- ----------- ------------ ----------- ---------- ---------- ----------- ----------- --------------
(0.57) (1.25) (2.70) (0.81) (2.48) (0.58) -- (0.57) --
----------- ----------- ------------ ----------- ---------- ---------- ----------- ----------- --------------
$ 16.81 $ 16.12 $ 15.91 $ 16.81 $ 15.43 $ 17.69 $ 16.93 $ 16.35 $ 15.82
=========== =========== ============ =========== ========== ========== =========== =========== ==============
8.06% 3.24% 11.34% 14.63% 1.62% 8.05% 3.55% 7.18% (0.06)%
=========== =========== ============ =========== ========== ========== =========== =========== ==============
$ 305,218 $ 360,652 $ 13,455 $ 27,435 $ 52,709 $ 87,104 $ 113,445 $ 113,235 $ 142,880
1.48% 1.71%(2) 2.55%* 2.42% 2.38% 2.26% 2.34%* 2.25% 2.17%*(2)
0.10% 0.09%(2) (0.91)%* (0.40)% (0.74)% (0.80)% (1.61)%* (0.68)% (1.92)%*(2)
33% 40% 46% 72% 151% 86% 3% 33% 40%
</TABLE>
47
<PAGE>
PAINEWEBBER GLOBAL 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 C
------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE
ENDED FOR THE YEARS ENDED TWO MONTHS
APRIL 30, OCTOBER 31, ENDED
2000 ------------------------ OCTOBER 31,
(UNAUDITED) 1999 1998# 1997 1996
----------- --------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................................ $ 16.84 $ 15.45 $ 17.69 $ 16.93 $ 16.35
----------- --------- -------- -------- -----------
Net investment income (loss) ........................................ (0.06)@ (0.05)@ (0.11)@ (0.23) (0.05)
Net realized and unrealized gains from investments and foreign
currency ............................................................ 1.88@ 2.25@ 0.35@ 1.57 0.63
----------- --------- -------- -------- -----------
Net increase from investment operations ............................. 1.82 2.20 0.24 1.34 0.58
----------- --------- -------- -------- -----------
Dividends from net investment income ................................ -- -- -- -- --
Distributions from net realized gains from investment transactions .. (2.70) (0.81) (2.48) (0.58) --
----------- --------- -------- -------- -----------
Total dividends and distributions to shareholders ................... (2.70) (0.81) (2.48) (0.58) (0.00)
----------- --------- -------- -------- -----------
Net asset value, end of period ...................................... $ 15.96 $ 16.84 $ 15.45 $ 17.69 $ 16.93
=========== ========= ======== ======== ===========
Total investment return (1) ......................................... 11.45% 14.67% 1.74% 8.05% 3.55%
=========== ========= ======== ======== ===========
Ratios/Supplemental Data:
Net assets, end of period (000's) ................................... $30,547 $32,917 $41,103 $54,510 $67,530
Expenses to average net assets, net of waivers from adviser (3) ..... 2.36%* 2.34% 2.32% 2.20% 2.30%*
Net investment income (loss) to average net assets, net of waivers
from adviser (3) .................................................... (0.76)%* (0.33)% (0.65)% (0.75)% (1.57)%*
Portfolio turnover rate ............................................. 46% 72% 151% 86% 3%
---------------------------------
</TABLE>
* Annualized
** Investment Advisory functions for the Fund were transferred from Kidder
Peabody Asset Management Inc. to Mitchell Hutchins on February 13, 1995.
# Effective October 1, 1998, Invista Capital Management, Inc. began
overseeing the day-to-day management of the foreign portion of the Fund's
assets and Mitchell Hutchins allocates the portfolio between domestic and
foreign investments and manages the domestic portion of the Fund's assets.
@ Calculated using the average monthly shares outstanding for the year.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
distributions 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 or program fees; results would be lower if sales
charges or program fees were included. Total investment return for periods
of less than one year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.06% and 0.06%
for Class C and Class Y shares, respectively.
(3) During the six months ended April 30, 2000 and the year ended October 31,
1999 Mitchell Hutchins waived a portion of its advisory and administration
fees. The ratios excluding the waiver would be the same since the fee
waiver represents less than 0.005%.
48
<PAGE>
<TABLE>
<CAPTION>
CLASS C CLASS Y
------------------------- -----------------------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE
FOR THE YEARS ENDED ENDED FOR THE YEARS ENDED TWO MONTHS FOR THE YEARS ENDED
AUGUST 31, APRIL 30, OCTOBER 31, ENDED AUGUST 31,
------------------------ 2000 ---------------------------------- OCTOBER 31, ----------------------
1996 1995** (UNAUDITED) 1999 1998# 1997 1996 1996 1995**
----------- ------------ -------------- ------------- ------------ ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 15.82 $ 16.81 $ 18.31 $ 16.59 $ 18.63 $ 17.60 $ 16.97 $ 16.22 $ 17.03
---------- ----------- -------------- ------------- ------------ ------------ ------------- ------------ -------------
(0.13) (0.11) 0.04@ 0.14@ 0.09@ 0.10 (0.01) 0.07 0.07
1.23 0.37 2.06@ 2.43@ 0.35@ 1.51 0.64 1.25 0.37
----------- ------------ -------------- ------------- ------------ ------------ ------------- ------------ -------------
1.10 0.26 2.10 2.57 0.44 1.61 0.63 1.32 0.44
----------- ------------ -------------- ------------- ------------ ------------ ------------- ------------ -------------
-- -- 0.00 (0.04) -- -- -- -- --
(0.57) (1.25) (2.70) (0.81) (2.48) (0.58) -- (0.57) (1.25)
----------- ------------ -------------- ------------- ------------ ------------ ------------- ------------ -------------
(0.57) 1.25) (2.70) (0.85) (2.48) (0.58) 0.00 (0.57) (1.25)
----------- ------------ -------------- ------------- ------------ ------------ ------------- ------------ -------------
$ 16.35 $ 15.82 $ 17.71 $ 18.31 $ 16.59 $ 18.63 $ 17.60 $ 16.97 $ 16.22
=========== ============ ============== ============= ============ ============ ============= ============ =============
7.18% 2.46% 12.12% 15.97% 2.86% 9.31% 3.71% 8.39% 3.54%
=========== ============ ============== ============= ============ ============ ============= ============ =============
$ 66,585 $ 83,485 $ 54,538 $ 53,334 $ 51,025 $ 57,683 $ 63,225 $ 61,736 $ 57,150
2.27% 2.48%(2) 1.22%* 1.23% 1.21% 1.10% 1.18%* 1.17% 1.46%(2)
(0.70)% (0.68)%(2) 0.47%* 0.79% 0.50% 0.36% (0.45)%* 0.46% 0.36%(2)
33% 40% 46% 72% 151% 86% 3% 33% 40%
</TABLE>
49
<PAGE>
PAINEWEBBER ASIA PACIFIC GROWTH 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
ENDED FOR THE YEARS ENDED TWO MONTHS
APRIL 30, OCTOBER 31, ENDED
2000 ------------------------ OCTOBER 31,
(UNAUDITED) 1999 1998 1997+
----------- --------- -------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............................. $ 9.71 $ 6.82 $ 8.96 $ 12.50
------------ --------- --------- -----------
Net investment income (loss) ..................................... (0.05)@ (0.05)@ -- 0.03
Net realized and unrealized gains (losses) from investments
and foreign currency ............................................. 1.56@ 2.94@ (2.14)@ (3.57)
------------ --------- --------- -----------
Net increase (decrease) from investment operations ............... 1.51 2.89 (2.14) (3.54)
------------ --------- --------- -----------
Net asset value, end of period ................................... $ 11.22 $ 9.71 $ 6.82 $ 8.96
============ ========= ========= ============
Total investment return (1) ...................................... 15.55% 42.38% (23.88)% (28.32)%
============ ========= ========= ============
Ratios/Supplemental Data:
Net assets, end of period (000's) ................................ $ 13,351 $ 14,229 $ 11,526 $ 21,466
Expenses to average net assets, net of waivers from adviser (2) .. 2.36%* 2.73% 2.88% 2.33%*
Net investment income (loss) to average net assets, net of waivers
from adviser (2) ................................................. (0.94)%* (0.53)% (0.02)% 0.37%*
Portfolio turnover rate .......................................... 28% 70% 59% 13%
-----------------------------
</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 October
31, 1998.
@ Calculated using the average monthly shares outstanding for the period.
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
distributions 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 or program fees; results would be lower if sales
charges or program fees were included. Total investment return for periods
of less than one year has not been annualized.
(2) During the six months ended April 30, 2000 and for the year ended
October 31, 1999 Mitchell Hutchins waived a portion of its advisory and
administration fees. The ratios excluding the waiver would be the same
since the fee waiver represents less than 0.005%.
50
<PAGE>
<TABLE>
<CAPTION>
CLASS B CLASS C CLASS Y
--------------------------------------------- --------------------------------------- ------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED FOR THE YEARS PERIOD ENDED FOR THE YEARS PERIOD ENDED FOR THE YEAR PERIOD
APRIL 30, ENDED OCTOBER 31, ENDED APRIL 30, ENDED OCTOBER 31, ENDED APRIL 30, ENDED ENDED
2000 ------------------- OCTOBER 31, 2000 ------------------- OCTOBER 31, 2000 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1999 1998 1997+ (UNAUDITED) 1999 1998 1997+ (UNAUDITED) 1999 1998++
-------------- -------- ---------- ---------- ---------- --------- -------- --------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9.52 $ 6.74 $ 8.92 $ 12.50 $ 9.53 $ 6.74 $ 8.92 $ 12.50 $ 9.68 $ 6.79 $ 8.66
---------- -------- ---------- ---------- ---------- --------- -------- --------- ---------- ---------- -----------
(0.10)@ (0.11)@ (0.06)@ (0.03) (0.10)@ (0.10)@ (0.06)@ (0.03) (0.03)@ -- 0.06@
1.54@ 2.89@ (2.12)@ (3.55) 1.54@ 2.89@ (2.12)@ (3.55) 1.55@ 2.89@ (1.93)@
---------- -------- ---------- ---------- ---------- --------- -------- --------- ---------- ---------- -----------
1.44 2.78 (2.18) (3.58) 1.44 2.79 (2.18) (3.58) 1.52 2.89 (1.87)
---------- -------- ---------- ---------- ---------- --------- -------- --------- ---------- ---------- -----------
$ 10.96 $ 9.52 $ 6.74 $ 8.92 $10.97 $ 9.53 $ 6.74 $ 8.92 $11.20 $ 9.68 $ 6.79
========== ======== ========== ========== ========== ========= ======== ========= ========== ========== ===========
15.13% 41.25% (24.44)% (28.64)% 15.11% 41.39% (24.44)% (28.64)% 15.70% 42.56% (21.59)%
========== ======== ========== ========== ========== ========= ======== ========= ========== ========== ===========
$15,069 $14,589 $12,746 $22,949 $7,794 $ 10,052 $6,220 $13,887 $ 245 $ 192 $ 47
3.14%* 3.52% 3.63% 3.12%* 3.09%* 3.45% 3.60% 3.10%* 2.04%* 2.34% 2.66%*
(1.72)%* (1.34)% (0.78)% (0.43)%* (1.70)%* (1.23)% (0.79)% (0.42)%* (0.61)%* (0.06)% (1.46)%*
28% 70% 59% 13% 28% 70% 59% 13% 28% 70% 59%
</TABLE>
51
<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
ENDED FOR THE YEARS ENDED FOUR MONTHS
APRIL 30, OCTOBER 31, ENDED
2000 ------------------------------------ OCTOBER 31,
(UNAUDITED) 1999 1998 1997*** 1996
----------- -------- -------- --------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $ 8.79 $ 6.52 $ 9.39 $ 9.46 $ 10.06
----------- -------- -------- --------- -----------
Net investment income (loss) ........................... (0.06)@ (0.02)@ (0.01)@ (0.06) (0.13)
Net realized and unrealized gains (losses) from
investments and foreign currency ..................... 1.05@ 2.29@ (2.86)@ (0.01) (0.47)
----------- -------- -------- --------- -----------
Net increase (decrease) from investment operations ..... 0.99 2.27 (2.87) (0.07) (0.60)
----------- -------- -------- --------- -----------
Dividends from net investment income ................... -- -- -- -- --
----------- -------- -------- --------- -----------
Net asset value, end of period ......................... $ 9.78 $ 8.79 $ 6.52 $ 9.39 $ 9.46
=========== ======== ======== ========= ===========
Total investment return (1) ............................ 11.26% 34.82% (30.56)% (0.74)% (5.96)%
=========== ======== ======== ========= ===========
Ratios/Supplemental Data:
Net assets, end of period (000's) ...................... $4,545 $5,090 $ 4,237 $9,222 $14,992
Expenses, net of fee waivers, to average net assets .... 2.44%* 2.44% 2.44% 2.44% 2.44%*
Expenses, before fee waivers, to average net assets .... 3.67%* 3.56% 3.71% 3.01% 3.48%*
Net investment loss, net of fee waivers, to average
net assets............................................ (1.07)%* (0.31)% (0.16)% (0.40)% (1.42)%*
Net investment loss, before fee waivers, to average
net assets............................................ (2.30)%* (1.43)% (1.43)% (0.97)% (2.46)%*
Portfolio turnover rate ................................ 63% 80% 64% 87% 22%
---------------------------------
</TABLE>
++ For the period December 5, 1995 (commencement of offering of shares) to
June 30, 1996.
@ Calculated using the average shares outstanding for the period.
* 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 Investment Management North
America 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 and
distributions 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 or program fees; results would be lower if sales
charges or program fees were included. Total investment return for
periods of less than one year has not been annualized.
52
<PAGE>
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------- -----------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE
FOR THE YEARS ENDED ENDED FOR THE YEARS ENDED FOUR MONTHS FOR THE
JUNE 30, APRIL 30, OCTOBER 31, ENDED PERIOD ENDED
------------------- 2000 ------------------------------- OCTOBER 31, JUNE 30,
1996 1995** (UNAUDITED) 1999 1998 1997*** 1996 1996++
-------- ---------- ----------- --------- --------- --------- ------------ ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 9.73 $ 10.79 $ 8.52 $ 6.37 $ 9.19 $ 9.32 $ 9.94 $ 9.13
-------- ---------- ----------- --------- --------- --------- ------------ --------------
(0.14) (0.04) (0.08)@ (0.08)@ (0.08)@ (0.10) (0.07) (0.01)
0.47 (0.97) 1.01@ 2.23@ (2.74)@ (0.03) (0.55) 0.82
-------- ---------- ----------- --------- --------- --------- ------------ --------------
0.33 (1.01) 0.93 2.15 (2.82) (0.13) (0.62) 0.81
-------- ---------- ----------- --------- --------- --------- ------------ --------------
-- (0.05) -- -- -- -- -- --
-------- ---------- ----------- --------- --------- --------- ------------ --------------
$ 10.06 $ 9.73 $ 9.45 $ 8.52 $ 6.37 $ 9.19 $ 9.32 $ 9.94
======== ========== =========== ========= ========= ========= ============ ==============
3.39% (9.29)% 10.92% 33.75% (30.69)% (1.39)% (6.24)% 8.87%
======== ========== =========== ========= ========= ========= ============ ==============
$20,680 $33,043 $ 1,041 $ 459 $ 461 $1,598 $ 879 $ 936
2.44% 2.44% 3.19%* 3.19% 3.19% 3.19% 3.19%* 3.19%*
3.42% 2.54% 4.49%* 4.50% 4.92% 3.82% 4.23%* 4.97%*
(0.52)% (0.76)% (1.68)%* (1.06)% (0.99)% (1.25)% (2.12)%* (0.21)%*
(1.50)% (0.86)% (2.99)%* (2.37)% (2.72)% (1.88)% (3.16)%* (1.99)%*
69% 76% 63% 80% 64% 87% 22% 69%
</TABLE>
53
<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 C
-------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE
ENDED FOR THE YEARS FOUR MONTHS
APRIL 30, ENDED OCTOBER 31, ENDED
2000 ------------------------------ OCTOBER 31,
(UNAUDITED) 1999 1998 1997*** 1996
----------- --------- -------- --------- ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period .................... $ 8.43 $ 6.32 $ 9.17 $ 9.32 $ 9.94
----------- --------- -------- --------- ------------
Net investment income (loss) ............................ (0.09)@ (0.08)@ (0.08)@ (0.14) (0.22)
Net realized and unrealized gains (losses) from
investments and foreign currency ...................... 1.01@ 2.19@ (2.77)@ (0.01) (0.40)
----------- --------- -------- --------- ------------
Net increase (decrease) from investment operations ...... 0.92 2.11 (2.85) (0.15) (0.62)
----------- --------- -------- --------- ------------
Dividends from net investment income .................... -- -- -- -- --
----------- --------- -------- --------- ------------
Net asset value, end of period .......................... $ 9.35 $ 8.43 $ 6.32 $ 9.17 $ 9.32
=========== ========= ======== ========= ============
Total investment return (1) ............................. 10.91% 33.39% (31.08)% (1.61)% (6.24)%
=========== ========= ======== ========= ============
Ratios/Supplemental Data:
Net assets, end of period (000's) ....................... $2,152 $2,126 $ 2,575 $5,345 $7,882
Expenses, net of fee waivers, to average net assets ..... 3.19%* 3.19% 3.19% 3.19% 3.19%*
Expenses, before fee waivers, to average net assets ..... 4.48%* 4.43% 4.42% 3.78% 4.23%*
Net investment loss, net of fee waivers, to average
net assets ............................................ (1.79)%* (1.06)% (0.96)% (1.18)% (2.16)%*
Net investment loss, before fee waivers, to average
net assets ............................................ (3.09)%* (2.30)% (2.19)% (1.77)% (3.20)%*
Portfolio turnover rate ................................. 63% 80% 64% 87% 22%
---------------------------------
</TABLE>
@ Calculated using the average shares outstanding for the period.
* 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 Investment Management North
America 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 and
distributions 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 or program fees; results would be lower if sales
charges or program fees were included. Total investment return for
periods of less than one year has not been annualized.
54
<PAGE>
<TABLE>
<CAPTION>
CLASS C CLASS Y
------------------ --------------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE YEARS
FOR THE YEARS ENDED FOR THE YEARS FOUR MONTHS ENDED
ENDED JUNE 30, APRIL 30, ENDED OCTOBER 31, ENDED JUNE 30
------------------ 2000 ------------------------------ OCTOBER 31, --------------------
1996 1995** (UNAUDITED) 1999 1998 1997*** 1996 1996 1995**
-------- --------- ----------- -------- ---------- ---------- ----------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 9.67 $ 10.75 $ 8.89 $ 6.58 $ 9.46 $ 9.51 $ 10.11 $ 9.75 $ 10.80
-------- --------- ----------- -------- ---------- ---------- ----------- ---------- ---------
(0.24) (0.17) (0.04)@ 0.00@ (0.01)@ (0.02) (0.05) (0.01) 0.01
0.51 (0.90) 1.05@ 2.31@ (2.87)@ (0.03) (0.55) 0.37 (0.99)
-------- --------- ----------- -------- ---------- ---------- ----------- ---------- ---------
0.27 (1.07) 1.01 8.89 (2.88) (0.05) (0.60) 0.36 (0.98)
-------- --------- ----------- -------- ---------- ---------- ----------- ---------- ---------
-- (0.01) -- -- -- -- -- -- (0.07)
-------- --------- ----------- -------- ---------- ---------- ----------- ---------- ---------
$ 9.94 $ 9.67 $ 9.90 $ 8.89 $ 6.58 $ 9.46 $ 9.51 $ 10.11 $ 9.75
======== ========= =========== ======== ========== ========== =========== ========== =========
2.79% (10.01)% 11.36% 35.11% (30.44)% (0.53)% (5.93)% 3.69% (9.03)%
======== ========= =========== ======== ========== ========== =========== ========== =========
$11,561 $18,551 $ 792 $ 804 $ 877 $10,053 $11,375 $12,979 $12,332
3.19% 3.19% 2.19%* 2.19% 2.19% 2.19% 2.19%* 2.19% 2.19%
4.17% 3.29% 3.48%* 3.46% 3.36% 2.69% 3.23%* 3.29% 2.29%
(1.28)% (1.50)% (0.83)%* (0.03)% (0.08)% (0.15)% (1.13)%* (0.15)% (0.51)%
(2.26)% (1.60)% (2.12)%* (1.31)% (1.25)% (0.65)% (2.17)%* (1.25)% (0.61)%
69% 76% 63% 80% 64% 87% 22% 69% 76%
</TABLE>
55
<PAGE>
--------------------------------------------------------------------------------
TRUSTEES
E. Garrett Bewkes, Jr. Meyer Feldberg
CHAIRMAN George W. Gowen
Margo N. Alexander Frederic V. Malek
Richard Q. Armstrong Carl W. Schafer
Richard R. Burt Brian M. Storms
Mary C. Farrell*
PRINCIPAL OFFICERS
Margo N. Alexander T. Kirkham Barneby
PRESIDENT VICE PRESIDENT
Dianne E. O'Donnell Mark A. Tincher
VICE PRESIDENT AND SECRETARY VICE PRESIDENT
Paul H. Schubert
VICE PRESIDENT AND TREASURER
INVESTMENT ADVISER,
ADMINISTRATOR AND DISTRIBUTOR
Mitchell Hutchins Asset Management Inc.
51 West 52nd Street
New York, New York 10019
INVESTMENT SUBADVISERS
Invista Capital Management Inc.
1800 Hub Tower
699 Walnut
Des Moines, Iowa 50309
Schroder Investment Management North America Inc.
1301 Avenue of the Americas
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 FINANCIAL ADVISOR OR
CORRESPONDENT FIRM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
* MS. FARRELL IS A TRUSTEE OF PAINEWEBBER INVESTMENT TRUST AND PAINEWEBBER
INVESTMENT TRUST II BUT NOT PAINEWEBBER MANAGED INVESTMENTS TRUST
<PAGE>
----
PaineWebber offers a family of 27 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
/ / Enhanced S&P 500 Fund
/ / Enhanced Nasdaq-100 Fund
/ / Financial Services Growth Fund
/ / Growth Fund
/ / Growth and Income Fund
/ / Mid Cap Fund
/ / Small Cap Fund
/ / S&P 500 Index Fund
/ / Strategy Fund
/ / Tax-Managed Equity 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
PAINEWEBBER MONEY MARKET FUND
PAINEWEBBER
-C-2000 PaineWebber Incorporated
All Rights Reserved
Member SIPC
PAINEWEBBER
---------------------------------------------
SEMIANNUAL REPORT
GLOBAL EQUITY
FUND
EMERGING
MARKETS
EQUITY FUND
ASIA PACIFIC
GROWTH FUND
APRIL 30, 2000
