<PAGE> PAGE 1
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010 C02AA01 NY
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011 B00AA01 8-16267
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012 A00AA01 PFPC, INC.
<PAGE> PAGE 2
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012 C01AA01 PHILADELPHIA
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012 C03AA01 19110
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013 B02AA01 NY
013 B03AA01 10172
014 A00AA01 PAINEWEBBER INC.
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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SIGNATURE PAUL SCHUBERT
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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FORM 10f-3 FUND: PW Growth
Record of Securities Purchased Under the Fund's Rule
10f-3 Procedures
1. Issuer: Alaska Arilines.
2. Date of Purchase: 12/10/97
3. Date offering commenced:12/16/97
4. Underwriters from whom purchased: Merrill
Lynch
5. "Affiliated Underwriter" managing or participating
in syndicate: PaineWebber
6. Aggregate principal amount of purchase:
$3,219,000
7. Aggregate principal amount of offering:
$111,000,000
8. Purchase price (net of fees and expenses): $37
9. Initial public offering price: $37
10. Commission, spread or profit: % $0.95
11. Have the following conditions been satisfied?
YES
NO
a. The securities are part of an issue registered
under the Securities Act of 1933 that is being
offered to the public.
X
b. The securities were purchased prior to the end
of the first day on which any sales are made
(or, if a rights offering, the securities were
purchased on or before the fourth day
preceding the day on which the offering
terminated.)
X
c. The securities were purchased at a price not
more than the price paid by each other
purchaser in the offering .
X
d. The underwriting was a firm commitment
underwriting.
X
e. The commission, spread or profit was
reasonable and fair in relation to that being
received by others for underwriting similar
securities during the same period.
X
f. e. The issuer of the securities and its
predecessor have been in continuous
operation for not less than three years.
X
g. The amount of such securities purchased by all
of the investment companies advised by
Mitchell Hutchins (or the Fund's sub-Advisor, if
applicable) did not exceed 25% of the principal
amount of the offering.
X
h. No Affiliated Underwriter was a direct or
indirect participant in or beneficiary of the sale.
X
Note: Refer to the Rule 10f-3 Procedures for the
definitions of the capitalized terms above. In particular,
"Affiliated Underwriter" is defined a PaineWebber Group
Inc. and any of its affiliates, including PaineWebber
Incorporated. In the case of a Fund advised by a Sub-
Adviser, "Affiliated Underwriter" shall also include any
brokerage affiliate of the Sub-Adviser.
Approved:Ellen Harris
Date:12/17/9
7
FORM 10f-3 FUND: PW
Growth
Record of Securities Purchased Under the Fund's Rule
10f-3 Procedures
1. Issuer: Young & Rubican
2. Date of Purchase: 5/12/98 3.
Date offering commenced: 5/12/98
4. Underwriters from whom purchased: DLJ
5. "Affiliated Underwriter" managing or participating
in syndicate: PaineWebber
6. Aggregate principal amount of purchase:
$475,000
7. Aggregate principal amount of offering:
$400,000,000
8. Purchase price (net of fees and expenses): $25
9. Initial public offering price: $25
10. Commission, spread or profit: % $0.825
11. Have the following conditions been satisfied?
YES
NO
a. The securities are part of an issue registered under the
Securities Act of 1933 which is being offered to the public or are
"municipal securities" as defined in Section 3(a)(29) of the
Securities Exchange Act of 1934.
X
___
b. The securities were purchased prior to the end of the first full
business day of the offering at not more than the initial offering
price (or, if a rights offering, the securities were purchased on or
before the fourth day preceding the day on which the offering
terminated.
X
___
c. The underwriting was a firm commitment underwriting.
X
___
d. The commission, spread or profit was reasonable and fair in
relation to that being received by others for underwriting similar
securities during the same period.
X
___
e. (1) If securities are registered under the Securities Act of 1933,
the issuer of the securities and its predecessor have been in
continuous operation for not less than three years.
X
___
(2) If securities are municipal securities, the issue of securities has
received an investment grade rating from a nationally
recognized statistical rating organization or, if the issuer or
entity supplying the revenues from which the issue is to be paid
shall have been in continuous operation for less than three
years (including any predecessor), the issue has received one
of the three highest ratings from at least one such rating
organization.
N/A
___
f. The amount of such securities purchased by all of the
investment companies advised by Mitchell Hutchins did not
exceed 4% of the principal amount of the offering or $500,000
in principal amount, whichever is greater, provided that in no
event did such amount exceed 10% of the principal amount of
the offering.
X
___
g. The purchase price was less than 3% of the Fund's total assets.
X
___
h. No Affiliated Underwriter was a direct or indirect participant in or
beneficiary of the sale or, with respect to municipal securities,
no purchases were designated as group sales or otherwise
allocated to the account of any Affiliated Underwriter.
X
___
Approved: Ellen Harris Date: 6/9/98
FORM 10f-3
Registered domestic Securities
FUND: PW Growth
1. Issuer: Republic Services
2. Date of Purchase: 6/30/98
3. Date offering commenced:7/7/98
4. Underwriters from whom purchased: Merrill
Lynch
5. "Affiliated Underwriter" managing or participating
in syndicate: PaineWebber
6. Aggregate principal amount of purchase:
$2,354,400
7. Aggregate principal amount of offering:
$1,320,000
8. Purchase price (net of fees and expenses): $24
9. Initial public offering price: $24
10. Commission, spread or profit: % $.73
11. Have the following conditions been satisfied?
YES
NO
a. The securities are part of an issue registered
under the Securities Act of 1933 that is being
offered to the public.
X
b. The securities were purchased prior to the end
of the first day on which any sales are made (or,
if a rights offering, the securities were
purchased on or before the fourth day preceding
the day on which the offering terminated.)
X
c. The securities were purchased at a price not
more than the price paid by each other
purchaser in the offering .
X
d. The underwriting was a firm commitment
underwriting.
X
e. The commission, spread or profit was
reasonable and fair in relation to that being
received by others for underwriting similar
securities during the same period.
X
f. e. The issuer of the securities and its
predecessor have been in continuous operation
for not less than three years.
X
g. The amount of such securities purchased by all
of the investment companies advised by Mitchell
Hutchins (or the Fund's sub-Advisor, if
applicable) did not exceed 25% of the principal
amount of the offering.
X
h. No Affiliated Underwriter was a direct or
indirect participant in or beneficiary of the sale.
X
Note: Refer to the Rule 10f-3 Procedures for the
definitions of the capitalized terms above. In particular,
"Affiliated Underwriter" is defined a PaineWebber Group
Inc. and any of its affiliates, including PaineWebber
Incorporated. In the case of a Fund advised by a Sub-
Adviser, "Affiliated Underwriter" shall also include any
brokerage affiliate of the Sub-Adviser.
Approved:Ellen Harris
Date:7/17/98
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For period ending August 31, 1998
File number 811-4180
ANNUAL SUPPLEMENT
Page 53 is to be filed only once each year at the end of
Registrant's fiscal year.
105. Fidelity bond(s) in effect at the end of the period:
A. ? Insurer Name: ICI Mutual Insurance
Co.
B. ? Second Insurer:
C. ? Aggregate face amount of coverage
for Registrant on all bonds on which
it is named as an insured ($000's
omitted) $50,000
106. A. ? Is the bond part of a joint fidelity
bond(s) shared with other investment companies
or other entities? Y
B. ? If the answer to 106A is "Y" (Yes),
how many other investment companies or other
entities are covered by the bond? 68
NOTE: Count each series as a
separate investment company.
107. A. ? Does the mandatory coverage of the
fidelity bond have a deductible? N
B. ? If the answer to 107A is "Y" (Yes),
what is the amount of the deductible? $______
108. A. ? Were any claims with respect to this
Registrant filed under the bond during
the period? N
B. ? If the answer to 108A is "Y" (Yes),
what was the total amount of such claim(s)? $______
109. A. ? Were any losses incurred with
respect to this Registrant that could have been filed
as a claim under the fidelity bond
but were not? N
B. ? If the answer to sub-item 109A is "Y"
(Yes), what was the total amount of such
losses? ($000's omitted) $______
110. A. ? Are Registrant's officers and
directors covered as officers and directors of
Registrant under any errors and
omissions insurance policy owned by the Registrant
or anyone else? Y
B. ? Were any claims filed under such
policy during the period with respect to
Registrant? N
Y/N
Report of Independent Auditors
To the Shareholders and Board of Trustees of
PaineWebber Growth Fund
In planning and performing our audit of the financial
statements of PaineWebber Growth Fund for the year
ended August 31, 1998, we considered its internal control,
including control activities for safeguarding securities, in
order to determine our auditing procedures for the purpose
of expressing our opinion on the financial statements and to
comply with the requirements of Form N-SAR, not to
provide assurance on the internal control.
The management of PaineWebber Growth Fund is
responsible for establishing and maintaining internal
control. In fulfilling this responsibility, estimates and
judgments by management are required to assess the
expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's
objective of preparing financial statements for external
purposes that are fairly presented in conformity with
generally accepted accounting principles. Those controls
include the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal control, errors or
fraud may occur and not be detected. Also, projection of
any evaluation of internal control to future periods is
subject to the risk that it may become inadequate because
of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control would not
necessarily disclose all matters in the internal control that
might be material weaknesses under standards established
by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or
operation of one or more of the internal control components
does not reduce to a relatively low level the risk that errors
or fraud in amounts that would be material in relation to the
financial statements being audited may occur and not be
detected within a timely period by employees in the normal
course of performing their assigned functions. However,
we noted no matters involving the internal control and its
operation, including controls for safeguarding securities,
that we consider to be material weaknesses as defined
above at August 31, 1998.
This report is intended solely for the information and use of
the board of trustees and management of PaineWebber
Growth Fund and the Securities and Exchange
Commission.
ER
NST & YOUNG LLP
October 16, 1998
